Oklahoma 2024 Regular Session

Oklahoma House Bill HB2996 Compare Versions

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Version 2 (New)

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33	28		ENGROSSED HOUSE
34	29		BILL NO. 2996 By: Lepak and Randleman of the
35	30		House
36	31
37	32		and
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39	34		Weaver of the Senate
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45	40		An Act relating to retirement; amending 47 O.S. 2021,
46	41		Sections 2-300, as amended by Section 8, Chapter 151,
47	42		O.S.L. 2023 (47 O.S. Supp. 202 3, Section 2-300), 2-
48	43		304, and 2-307.2, which relate to the Oklahoma Law
49	44		Enforcement Retirement System; defining term;
50	45		modifying terms; updating references; and declar ing
51	46		an emergency.
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57	54		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
58	55		SECTION 1. AMENDATORY 47 O.S. 2021, Section 2 -300, as
59	56		amended by Section 8, Chapter 151, O.S.L. 2023 (47 O.S. Supp. 2023,
60	57		Section 2-300), is amended to read as follows:
61	58		Section 2-300. As used in Section 2-300 et seq. of this title:
62	59		1. "System" means the Oklahoma Law Enforcement Retirement
63	60		System;
64	61		2. "Act" means Section 2-300 et seq. of this title;
65	62		3. "Board" means the Oklahoma Law Enforce ment Retirement Board
66	63		of the System;
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94	90		4. "Executive Director" means the managing officer of the
95	91		System employed by the Board;
96	92		5. "Fund" means the Oklahoma Law Enforcement Retir ement Fund;
97	93		6. "Participating Employer" means any Oklahoma entity with
98	94		employees that are members of the System pursuant to this act;
99	95		7. a. "Member" means:
100	96		(1) all commissioned law enforcement officers of the
101	97		Oklahoma Highway Patrol Division of the
102	98		Department of Public Safety who have obtained
103	99		certification from the Council on Law Enforcement
104	100		Education and Training, and all cadets of a
105	101		Patrol Academy of the Department of Public
106	102		Safety,
107	103		(2) law enforcement officers and criminalists of the
108	104		Oklahoma State Bureau of Investigation,
109	105		(3) law enforcement officers of the Oklahoma State
110	106		Bureau of Narcotics and Dangerous Drugs Contro l
111	107		designated to perform dut ies in the investigation
112	108		and prevention of crime and the enforcement of
113	109		the criminal laws of this st ate,
114	110		(4) law enforcement officers of the Alcoholic
115	111		Beverage Laws Enforcemen t Commission designated
116	112		to perform duties in the investigation and
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144	139		prevention of crime and the enforcemen t of the
145	140		criminal laws of this state,
146	141		(5) employees of the Communications Section of the
147	142		Oklahoma Highway Patrol Division, radio
148	143		technicians and tower technicians of the
149	144		Department of Public Saf ety, who are employed in
150	145		any such capacity as of June 30, 2008 , and who
151	146		remain employed on or after July 1, 2008, until a
152	147		termination of service, or until a termination of
153	148		service with an election of a vested bene fit from
154	149		the System, or until retirement. Effective July
155	150		1, 2008, a person employed for the first time a s
156	151		an employee of the Department of Public Safety in
157	152		the Communications Division as an information
158	153		systems telecommunication technician of the
159	154		Department of Public Safety shall not be a member
160	155		of the System,
161	156		(6) park rangers of the Oklahoma Tourism and
162	157		Recreation Department and any park manager or
163	158		park supervisor of the Oklahoma Tourism and
164	159		Recreation Department, who was employed in such a
165	160		position prior to July 1, 1985, and who elects on
166	161		or before September 1, 1996, to parti cipate in
167	162		the System, and
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195	189		(7) inspectors of the State Board of Pharmacy,
196	190		(8) police officers who are CLEET certified and
197	191		employed by the University of Oklahoma or
198	192		Oklahoma State University and who partic ipate in
199	193		this System pursuant to Section 2 -314 of this
200	194		title, and
201	195		(9) Lake Patrolmen or Dispatchers of the Grand River
202	196		Dam Authority and who participate in this System
203	197		pursuant to Section 2 -315 of this title.
204	198		b. Effective July 1, 1987, a member does not include a
205	199		"leased employee" as defined under Section 414(n)(2)
206	200		of the Internal Revenue Code of 1986, as amended.
207	201		Effective July 1, 1999, any individual who agrees with
208	202		the participating employe r Participating Employer that
209	203		the individual's services are to be performed as a
210	204		leased employee or an independent contractor shall not
211	205		be a member regardless of any classification as a
212	206		common-law employee by the Internal Revenue Service or
213	207		any other governmental agency, or any court of
214	208		competent jurisdiction.
215	209		c. All persons who shall be offered a position of a
216	210		commissioned law enforcement officer as an employee of
217	211		one of the agencies described in subparagraph a of
218	212		this paragraph shall participate in the System upon
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246	239		the person meeting the requisite post-offer-pre-
247	240		employment physical examination standards which shall
248	241		be subject to the following requiremen ts:
249	242		(1) all such persons shall be of good moral
250	243		character, free from deformitie s, mental or
251	244		physical conditions, or disease and a lcohol or
252	245		drug addiction which would prohibit the person
253	246		from performing the duties of a law enforcement
254	247		officer,
255	248		(2) the physical-medical examination shall pertain to
256	249		age, sight, hearing, agility and other conditions
257	250		the requirements of which shall be est ablished by
258	251		the Board,
259	252		(3) the person shall be required to meet the
260	253		conditions of this subsection prior to the
261	254		beginning of actual employment but after an offer
262	255		of employment has been tendered by a
263	256		participating employer Participating Employer ,
264	257		(4) the Board shall have authority to deny or revoke
265	258		membership of any person submitting false
266	259		information in such person's membership
267	260		application, and
268	261		(5) the Board shall have final authority in
269	262		determining eligibili ty for membership in th e
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297	289		System, pursuant to the provisions of this
298	290		subsection;
299	291		7. 8. "Normal retirement date" means the date at which the
300	292		member is eligible to receive the unreduced payments of the member's
301	293		accrued retirement benefit. Such date shall be th e first day of the
302	294		month coinciding with or following the date the member :
303	295		a. completes twenty (20) years of vesting service, or
304	296		b. attains sixty-two (62) years of age with ten (10)
305	297		years of vesting service, or
306	298		c. attains sixty-two (62) years of age, if:
307	299		(1) the member has been transferred to this System
308	300		from the Oklahoma Publi c Employees Retirement
309	301		System on or after July 1, 1981, and
310	302		(2) the member would have been vested had the member
311	303		continued to be a member of the Oklahoma Public
312	304		Employees Retirement S ystem.
313	305		With respect to distributions under the System made for calendar
314	306		years beginning on or after January 1, 2005, the System shall apply
315	307		the minimum distribution incidental benefit requirements, incidental
316	308		benefit requirements, and minimum distribution requirements of
317	309		Section 401(a)(9) of the Internal Revenue Code of 1986, as amended,
318	310		in accordance with the final regulations under Section 401(a)(9) of
319	311		the Internal Revenue Code of 1986, as amended, including Treasury
320	312		Regulations Sections 1.401(a)(9) -1 through 1.401(a)(9)-9; provided,
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348	339		that for individuals who attain seventy an d one-half (70 1/2) years
349	340		of age after December 31, 2019, but before January 1, 2023, such
350	341		distributions shall take into account that "age 70 1/2" was stricken
351	342		and "age 72" was inserted in Sections 401(a)(9)(B)(iv)(I),
352	343		401(a)(9)(C)(i)(I) and 401(a)( 9)(C)(ii)(I) of the Internal Revenue
353	344		Code of 1986, as amended, and, provided further, that for
354	345		individuals who attain seventy-two (72) years of age after December
355	346		31, 2022, such distributions shall take into account that "age 72"
356	347		was stricken and "the applicable age", as defined in Section
357	348		401(a)(9)(C)(v) of the Internal Revenue Code of 1986, as amended,
358	349		was inserted in Section 401(a)(9)(B)(iv)(I) of the Internal Revenue
359	350		Code of 1986, as amended (applicable to calend ar year 2023), Section
360	351		401(a)(9)(C)(i)(I) and Section 401(a)(9)(C)(ii)(I) of the Internal
361	352		Revenue Code of 1986, as amended, and that the further revis ion of
362	353		Section 401(a)(9)(B)(iv) of the Internal Revenue Code of 1986, as
363	354		amended, effective for c alendar years after 2023 with respect to
364	355		certain distributions shall be taken into account, in all cases
365	356		notwithstanding any provision of the System to the con trary. With
366	357		respect to distributions under the System made for calendar years
367	358		beginning on or after January 1, 2001, through December 31, 2004,
368	359		the System shall apply th e minimum distribution requ irements and
369	360		incidental benefit requirements of Section 401 (a)(9) of the Internal
370	361		Revenue Code of 1986, as amended, in accordance with the regulations
371	362		under Section 401(a)(9) of the Internal Revenue Code of 1986, as
372	363
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399	389		amended, which were proposed in January 2001, notwithstanding any
400	390		provision of the System to the co ntrary.
401	391		Effective July 1, 1989, notwithstanding any other provision
402	392		contained herein to the contra ry, in no event shall commencement of
403	393		distribution of the accrued retire ment benefit of a member b e
404	394		delayed beyond April 1 of the calendar year following the later of:
405	395		(1) the calendar year in which the member reaches seventy and one-
406	396		half (70 1/2) years o f age for a member who attains this age before
407	397		January 1, 2020, or, for a member who attains this age on or after
408	398		January 1, 2020, but before January 1, 2023, the calendar year in
409	399		which the member reaches seventy-two (72) years of age, or effective
410	400		for distributions required to be made after December 31, 2022, the
411	401		calendar year in which the member reac hes seventy-three (73) years
412	402		of age for an individual who at tains age seventy-two (72) after
413	403		December 31, 2022, or "the applicable age", as defined in Section
414	404		401(a)(9)(C)(v) of the Internal Revenue Code of 1986, as amended, if
415	405		later; or (2) the actual ret irement date of the member. A member
416	406		electing to defer the commencement of retirement benefits pursuant
417	407		to Section 2-308.1 of this title may not defer the benef it
418	408		commencement beyond the age of sixty-five (65).
419	409		Effective September 8, 2009, notwithstandin g anything to the
420	410		contrary of the System, the System, which a s a governmental plan
421	411		(within the meaning of Section 414(d) of the Internal Revenue Code
422	412		of 1986, as amended), is treated as having complied with Section
423	413
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450	439		401(a)(9) of the Internal Revenue Code of 1986, as amended, for all
451	440		years to which Section 401(a)(9) o f the Internal Revenue Code of
452	441		1986, as amended, applies to the System if the System complies with
453	442		a reasonable and good faith interpretation of Section 401(a)(9) of
454	443		the Internal Revenue Code of 1986, as amended.
455	444		A member who was required to join the Syste m effective July 1,
456	445		1980, because of the transfer of the employing agency from the
457	446		Oklahoma Public Employees Retirement System to the System, and was
458	447		not a member of the Oklahoma Public Employee s Retirement System on
459	448		the date of such transfer shall be allo wed to receive credit for
460	449		prior law enforcement service rendered to this state, if the member
461	450		is not receiving or eligible to receive retirement credit or
462	451		benefits for such service in any other public retirement system,
463	452		upon payment to the System of the em ployee contribution the member
464	453		would have been subject to had the member been a member of the
465	454		System at the time, plus five percent (5%) interest. Service credit
466	455		received pursuant to this parag raph shall be used in determining the
467	456		member's retirement benefit, and shall be used in determining years
468	457		of service for retirement or vesting purposes;
469	458		8. 9. "Actual paid base salary" means the salary received by a
470	459		member, excluding payment for any accumul ated leave or uniform
471	460		allowance. Salary shall include any a mount of nonelective salary
472	461		reduction under Section 414(h) of the Internal Revenue Code of 1986;
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500	488		9. 10. "Final average salary" means the average of the highest
501	489		thirty (30) consecutive complete month s of actual paid gross salary.
502	490		Gross salary shall includ e any amount of elective salary reduction
503	491		under Section 457 of the Internal Revenue Code of 1986, as amended ,
504	492		and any amount of nonelective salary reduction under Section 414(h)
505	493		of the Internal Reven ue Code of 1986, as amended. Effective July 1,
506	494		1992, gross salary shall include any amount of elective salary
507	495		reduction under Section 125 of the Internal Revenue Co de of 1986, as
508	496		amended. Effective July 1, 1998, gross salary shall include any
509	497		amount of elective salary reduction not includable in the gross
510	498		income of the member under Section 132(f)(4) of the Internal Revenue
511	499		Code of 1986, as amended. Effective July 1 , 1998, for purposes of
512	500		determining a member's compensation, any contribution by the member
513	501		to reduce his or her regular cash remuneration under Sec tion
514	502		132(f)(4) of the Internal Revenue Code of 1986, as amended, shall be
515	503		treated as if the member did not m ake such an election. Only salary
516	504		on which required contribut ions have been made may be us ed in
517	505		computing the final average salary. Gross salary s hall not include
518	506		severance pay.
519	507		In addition to other applicable limitations, and notwithstanding
520	508		any other provision to the contrary, for plan years beginning on or
521	509		after July 1, 2002, the annual gr oss salary of each "Noneligible
522	510		Member" taken into account under the System shall not exceed the
523	511		Economic Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA")
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551	538		annual salary limit. The EGTRRA annual salary limit is Two Hu ndred
552	539		Thousand Dollars ($200 ,000.00), as adjusted by the Commissioner for
553	540		increases in the cost of living in accordance with Section
554	541		401(a)(17)(B) of the Internal Revenue Code of 1986, as amende d. The
555	542		annual salary limit in effect for a calendar year appl ies to any
556	543		period, not exceeding twelve (12) months, over which salary is
557	544		determined ("determination period") beginning in such calendar year.
558	545		If a determination period consists of fewer than t welve (12) months,
559	546		the EGTRRA salary limit will be multiplied by a fraction, the
560	547		numerator of which is the number of months in the determination
561	548		period, and the denominator of which is twelve (12). For purposes
562	549		of this section, a "Noneligible Member" is any member who first
563	550		became a member during a plan year commenc ing on or after July 1,
564	551		1996.
565	552		For plan years beginning on or after July 1, 2002, any r eference
566	553		in the System to the annual salary limit under Section 401(a)(17) of
567	554		the Internal Revenue Code of 1 986, as amended, shall mean the EGTRRA
568	555		salary limit set forth in this provision.
569	556		Effective January 1, 2008, gross salary for a plan year shall
570	557		also include gross salary, as described above, for services, but
571	558		paid by the later of two and one-half (2 1/2) months after a
572	559		member's severance from employment or the end of the calendar year
573	560		that includes the date the member terminated employment, if it is a
574	561		payment that, absent a severance from employment, would have been
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590	576		14
591	577		15
592	578		16
593	579		17
594	580		18
595	581		19
596	582		20
597	583		21
598	584		22
599	585		23
600	586		24
601	587
602	588		paid to the member while the member contin ued in employment with the
603	589		employer.
604	590		Effective January 1, 2008 , any payments not descri bed above
605	591		shall not be considered gross salary if paid after severance from
606	592		employment, even if they are paid by the later of two and one-half
607	593		(2 1/2) months after the d ate of severance from employment or the
608	594		end of the calendar ye ar that includes the date of severance from
609	595		employment, except payments to an individu al who does not currently
610	596		perform services for the employer by reason of qualified military
611	597		service within the meaning of Section 414(u)(5) of the Internal
612	598		Revenue Code of 1986, as amended, to th e extent these payments do
613	599		not exceed the amounts the individ ual would have received if the
614	600		individual had continued to perform services for the employer rather
615	601		than entering qualified military service.
616	602		Effective January 1, 2008, b ack pay, within the mean ing of
617	603		Section 1.415(c)-2(g)(8) of the Income Tax Regulations, shall be
618	604		treated as gross salary for the limitation year to which the back
619	605		pay relates to the extent the ba ck pay represents wages and
620	606		compensation that would otherwise be included in this defi nition.
621	607		Effective for years beginning a fter December 31, 2008, gross
622	608		salary shall also include differential wage payments under Section
623	609		414(u)(12) of the Internal Revenue Code of 1986, as amended;
624	610		10. 11. "Credited service" means the period of service used to
625	611		determine the amount of benefits payab le to a member. Credited
626	612
627		-	SENATE FLOOR VERSION - HB2996 SFLR Page 13
628		-	(Bold face denotes Committee Amendments) 1
	613	+	ENGR. H. B. NO. 2996 Page 13 1
629	614		2
630	615		3
631	616		4
632	617		5
633	618		6
634	619		7
635	620		8
636	621		9
637	622		10
638	623		11
639	624		12
640	625		13
641	626		14
642	627		15
643	628		16
644	629		17
645	630		18
646	631		19
647	632		20
648	633		21
649	634		22
650	635		23
651	636		24
652	637
653	638		service shall consist of the period during which the member
654	639		participated in the System or the predecessor Plan as an active
655	640		employee in an eligible membership clas sification, plus any servi ce
656	641		prior to the establishment of the pred ecessor Plan which was
657	642		credited under the predecessor Plan and for law enforcement officers
658	643		and criminalists of the Oklahoma State Bureau of Investigation and
659	644		the Oklahoma State Bureau of N arcotics and Dangerous Dru gs Control
660	645		who became members of the Syst em on July 1, 1980, any service
661	646		credited under the Oklahoma Public Employees Retirement System as of
662	647		June 30, 1980, and for members of the Communications and Lake Patrol
663	648		Divisions of the Oklahoma Department of Publi c Safety, who became
664	649		members of the Syste m on July 1, 1981, any service credited under
665	650		the predecessor Plan or the Oklahoma Public Employees Retirement
666	651		System as of June 30 , 1981, and for law enforcement officers of the
667	652		Alcoholic Beverage Laws Enforcement Commission who became members of
668	653		the System on July 1, 1982, any service credited under the Oklahoma
669	654		Public Employees Retirement System as of June 30, 1982, and for park
670	655		rangers of the Oklahoma Tourism and Recreation Department wh o became
671	656		members of the System on July 1, 1985, any service credite d under
672	657		the Oklahoma Public Employees Retirement System as of June 30, 1985,
673	658		and for inspectors of the State Board of Pharmacy who became members
674	659		of the System on July 1, 1986, any service credited under the
675	660		Oklahoma Public Employees Retirement System as o f June 30, 1986, for
676	661		law enforcement officers of the Oklahoma Capitol Patrol Division of
677	662
678		-	SENATE FLOOR VERSION - HB2996 SFLR Page 14
679		-	(Bold face denotes Committee Amendments) 1
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680	664		2
681	665		3
682	666		4
683	667		5
684	668		6
685	669		7
686	670		8
687	671		9
688	672		10
689	673		11
690	674		12
691	675		13
692	676		14
693	677		15
694	678		16
695	679		17
696	680		18
697	681		19
698	682		20
699	683		21
700	684		22
701	685		23
702	686		24
703	687
704	688		the Department of Public Safety w ho became members of the System
705	689		effective July 1, 1993, any service credited under the Oklaho ma
706	690		Public Employees Retirement System as of June 30, 1993, and for all
707	691		commissioned officers in the Gunsmith/Ammunition Reloader Division
708	692		of the Department of Publ ic Safety who became members of the System
709	693		effective July 1, 1994, any service credited under the Oklahoma
710	694		Public Employees Retirement System as of June 30, 1994, and for the
711	695		park managers or park supervisors of the Oklahoma Tourism and
712	696		Recreation Department who were employed in such a position prior to
713	697		July 1, 1985, and who elect to become member s of the System
714	698		effective September 1, 19 96, any service transferred pursuant to
715	699		subsection C of Section 2-309.6 of this title and any service
716	700		purchased pursuant t o subsection B of Section 2-307.2 of this title.
717	701		Effective August 5, 1993, an authorized lea ve of absence shall
718	702		include a period of a bsence pursuant to the Family and Medical Leave
719	703		Act of 1993;
720	704		11. 12. "Disability" means a physical or mental condition
721	705		which, in the judgment of the Board, totally and presumably
722	706		permanently prevents the member from e ngaging in the usual and
723	707		customary duties of the occupation of the member and thereafter
724	708		prevents the member from performing the duties of any occupation or
725	709		service for which the member is qualified by reason of training,
726	710		education or experience. A person is not under a disability when
727	711		capable of performing a service to the employer, regardless of
728	712
729		-	SENATE FLOOR VERSION - HB2996 SFLR Page 15
730		-	(Bold face denotes Committee Amendments) 1
	713	+	ENGR. H. B. NO. 2996 Page 15 1
731	714		2
732	715		3
733	716		4
734	717		5
735	718		6
736	719		7
737	720		8
738	721		9
739	722		10
740	723		11
741	724		12
742	725		13
743	726		14
744	727		15
745	728		16
746	729		17
747	730		18
748	731		19
749	732		20
750	733		21
751	734		22
752	735		23
753	736		24
754	737
755	738		occupation, providing the salary of the employee is not diminished
756	739		thereby;
757	740		12. 13. "Limitation year" means the year used in applyi ng the
758	741		limitations of Section 41 5 of the Internal Revenue Code of 1986,
759	742		which year shall be the calendar year;
760	743		13. 14. "Line of duty" means any action which a member whose
761	744		primary function is crime co ntrol or reduction or enforcement of the
762	745		criminal law is obligated or authorized by rule, regulations,
763	746		condition of employment or serv ice, or law to perform including
764	747		those social, ceremonial or athletic functions to which the member
765	748		is assigned, or for wh ich the member is compensated, by the agency
766	749		the member serves;
767	750		14. 15. "Personal injury" or "injury" means any traumatic
768	751		injury as well as diseases which are caused by or result from such
769	752		an injury, but not occupational diseases;
770	753		15. 16. "Catastrophic nature" means consequences of an injury
771	754		that permanently prevent an individual from performing an y gainful
772	755		work;
773	756		16. 17. "Traumatic injury" means a wound or a condition of the
774	757		body caused by external force including injuries inflicted by
775	758		bullets, explosives, sharp ins truments, blunt objects or other
776	759		physical blows, chemicals, electricity, climatic condi tions,
777	760		infectious diseases, radiation and bacteria, but excluding stress
778	761		and strain; and
779	762
780		-	SENATE FLOOR VERSION - HB2996 SFLR Page 16
781		-	(Bold face denotes Committee Amendments) 1
	763	+	ENGR. H. B. NO. 2996 Page 16 1
782	764		2
783	765		3
784	766		4
785	767		5
786	768		6
787	769		7
788	770		8
789	771		9
790	772		10
791	773		11
792	774		12
793	775		13
794	776		14
795	777		15
796	778		16
797	779		17
798	780		18
799	781		19
800	782		20
801	783		21
802	784		22
803	785		23
804	786		24
805	787
806	788		17. 18. "Beneficiary" means the individual designated by the
807	789		member on a beneficiar y designation form supplied by the Oklahoma
808	790		Law Enforcement Retirement System, or, if there is no designated
809	791		beneficiary or if the designated beneficiary predeceases the member,
810	792		the estate of the member. If the member's spouse is not designated
811	793		as the sole primary beneficiary, the member's spouse must sign a
812	794		consent.
813	795		SECTION 2. AMENDATORY 47 O.S. 2021, Section 2-304, is
814	796		amended to read as follows:
815	797		Section 2-304. A. The Department of Public Safety, the
816	798		Oklahoma State Bureau of Investigation, the Oklahoma State Bureau of
817	799		Narcotics and Dangerous Drugs Control, the Alcoholic Beverage
818	800		Control Board, the Ok lahoma Tourism and Recreation Department and
819	801		the State Board of Pharmacy shall make contributions to the fund as
820	802		follows:
821	803		The Department of Public Safety, Oklahoma State Bureau of
822	804		Investigation, Oklahoma State Bureau of Narcotics and Dangerous
823	805		Drugs Control, the Alcoholic Beverage Control Board, the Oklahoma
824	806		Tourism and Recreation Department and the State Board of Pharmacy
825	807		Participating Employers shall contribute to the fu nd an amount equal
826	808		to eleven percent (11%) of the actual paid base sal ary of each
827	809		member.
828	810
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	811	+	ENGR. H. B. NO. 2996 Page 17 1
831	812		2
832	813		3
833	814		4
834	815		5
835	816		6
836	817		7
837	818		8
838	819		9
839	820		10
840	821		11
841	822		12
842	823		13
843	824		14
844	825		15
845	826		16
846	827		17
847	828		18
848	829		19
849	830		20
850	831		21
851	832		22
852	833		23
853	834		24
854	835
855	836		B. Each member of the System shall make contributions to the
856	837		fund in an amount equal to eight percent (8%) of the actual paid
857	838		base salary of the member.
858	839		Member contributions shall be dedu cted by each participating
859	840		employer Participating Employer for such benefits as the Board is by
860	841		law authorized to administer and shall be remitted monthly, or as
861	842		the Board may otherwise provide, for deposit in the fund.
862	843		C. Each employer Participating Employer shall pick up under the
863	844		provisions of Section 414(h)(2) of the Internal Revenue Code of 1986
864	845		and pay the contribution which the member is required by law to make
865	846		to the System for all compensation earned after December 31, 1989.
866	847		Although the contribu tions so picked up are designated as member
867	848		contributions, such contributions shall be treated as contributions
868	849		being paid by the employer in lieu of contributions by the member in
869	850		determining tax treatment under the Internal Revenue Code of 1986
870	851		and such picked up contributions shall not be includable in the
871	852		gross income of the member until such amounts are distributed or
872	853		made available to the member or the beneficiary of the member. The
873	854		member, by the terms of this System, shall not have any option to
874	855		choose to receive the contributions so picked up directly and the
875	856		picked up contributions must be paid by the employer to the System.
876	857		Member contributions which are picked up shall be treated in the
877	858		same manner and to the same extent as member contributions made
878	859		prior to the date on which member contributions were picked up by
879	860
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882	862		2
883	863		3
884	864		4
885	865		5
886	866		6
887	867		7
888	868		8
889	869		9
890	870		10
891	871		11
892	872		12
893	873		13
894	874		14
895	875		15
896	876		16
897	877		17
898	878		18
899	879		19
900	880		20
901	881		21
902	882		22
903	883		23
904	884		24
905	885
906	886		the participating employer Participating Employer. Member
907	887		contributions so picked up shall be included in gross salary for
908	888		purposes of determining benefits and co ntributions under the System.
909	889		The employer Participating Employer shall pay the member
910	890		contributions from the same source of funds used in paying salary to
911	891		the member, by effecting an equal cash reduction in gross salary of
912	892		the member.
913	893		SECTION 3. AMENDATORY 47 O.S. 2021, Section 2 -307.2, is
914	894		amended to read as follo ws:
915	895		Section 2-307.2 A. The total service credit of a member who
916	896		retires, elects a Deferred Option Plan or terminates emplo yment and
917	897		elects a vested benefit shall includ e not to exceed one hundred
918	898		thirty (130) days of unused sick leave accumulated while a member of
919	899		the System. Effective July 1, 2008, a member who retires, elects a
920	900		Deferred Option Plan or terminates employment and elects a vested
921	901		benefit shall include not to exceed two hundred forty (240) days of
922	902		unused sick leave accumulated while a membe r of the System. Such
923	903		credit shall be added in terms of whole months. Twenty (20) days of
924	904		unused sick leave shall equal on e (1) month for purposes of service
925	905		credit. If unused sick leave entitles a member to an additional
926	906		year or fraction thereof of ser vice credit, the member's employer
927	907		shall reimburse the System for the cost of funding the additional
928	908		reserve by paying the a mount determined by the Board pursuant to
929	909		Section 25 of this act. Each employer shall provide the System with
930	910
931		-	SENATE FLOOR VERSION - HB2996 SFLR Page 19
932		-	(Bold face denotes Committee Amendments) 1
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933	912		2
934	913		3
935	914		4
936	915		5
937	916		6
938	917		7
939	918		8
940	919		9
941	920		10
942	921		11
943	922		12
944	923		13
945	924		14
946	925		15
947	926		16
948	927		17
949	928		18
950	929		19
951	930		20
952	931		21
953	932		22
954	933		23
955	934		24
956	935
957	936		adequate and timely i nformation necessary to determine additional
958	937		benefits and its cost under this section. This section shall apply
959	938		to members retiring or vesting on or after July 1, 1985, and shall
960	939		not be retroactive. The amount of accrued sick leave available for
961	940		determination of a member's monthly benefit for purposes of the
962	941		deferred option election shall be limited to the accrued sick leave
963	942		available as of the effective date of the defe rred option election,
964	943		but not to exceed two hundred forty (240) days. The member 's
965	944		monthly benefit determined as of the effective date of the deferred
966	945		option election shall not be adjusted for additional accru ed sick
967	946		leave earned by the member after the d eferred option election.
968	947		B. Whenever any member is unable to perform the member 's duties
969	948		because of sickness or temporary disability caused or sustained
970	949		while in the discharge of the member 's duty as a member, is
971	950		receiving a temporary total disability ben efit under Section 1 et
972	951		seq. of Title 85A of the Oklahoma Statutes, and does not purch ase
973	952		service credit as described below, such member shall only receive
974	953		prorated service credit based on the contributions mad e by the
975	954		member and the member 's employer while the member is receiving a
976	955		temporary total disability benefit under Section 1 et seq. of Title
977	956		85A of the Oklahoma Statutes. Whenever any member is unable to
978	957		perform the member's duties because of sickness or temporary
979	958		disability caused or sustained whil e in the discharge of the
980	959		member's duty as a member and is receiving a temporary disab ility
981	960
982		-	SENATE FLOOR VERSION - HB2996 SFLR Page 20
983		-	(Bold face denotes Committee Amendments) 1
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984	962		2
985	963		3
986	964		4
987	965		5
988	966		6
989	967		7
990	968		8
991	969		9
992	970		10
993	971		11
994	972		12
995	973		13
996	974		14
997	975		15
998	976		16
999	977		17
1000	978		18
1001	979		19
1002	980		20
1003	981		21
1004	982		22
1005	983		23
1006	984		24
1007	985
1008	986		benefit under Section 1 et seq. of Title 85A of the Oklahoma
1009	987		Statutes, such member shall have the option to purchase s ervice
1010	988		credit for the time related to such lea ve of absence for such
1011	989		sickness or temporary disability.
1012	990		1. The payment for such purc hase must be completed no later
1013	991		than three (3) years from the date the member commenced receipt of a
1014	992		temporary total disabil ity benefit.
1015	993		2. The purchase price shall be:
1016	994		a. the actual paid base salary that the member was
1017	995		entitled to immediately prior to th e member's sickness
1018	996		or temporary disability minus any vacation or sick
1019	997		leave payments received by the member during such
1020	998		sickness or temporary disability, multiplied by,
1021	999		b. the following percent:
1022	1000		(1) eighteen percent (18%) the combined employer and
1023	1001		member contribution percentages pursuant to
1024	1002		Section 2-304 of this title for members who are
1025	1003		suspended without pay, or
1026	1004		(2) eight percent (8%) the member contributions
1027	1005		percentage pursuant to Section 2 -304 of this
1028	1006		title for members who are not suspended without
1029	1007		pay.
1030	1008		If such member has not been suspended without pay, the employer
1031	1009		shall contribute, within three (3) months of the completion of the
1032	1010
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1035	1012		2
1036	1013		3
1037	1014		4
1038	1015		5
1039	1016		6
1040	1017		7
1041	1018		8
1042	1019		9
1043	1020		10
1044	1021		11
1045	1022		12
1046	1023		13
1047	1024		14
1048	1025		15
1049	1026		16
1050	1027		17
1051	1028		18
1052	1029		19
1053	1030		20
1054	1031		21
1055	1032		22
1056	1033		23
1057	1034		24
1058	1035
1059	1036		member's purchase of service credit, ten percent (10%) the employer
1060	1037		contribution percentage pursuant to Section 2 -304 of this title of
1061	1038		the actual paid base salary that the member was entitled to
1062	1039		immediately prior to the member 's sickness or temporary disability
1063	1040		minus any vacation or sick leave payments received by the member
1064	1041		during such sickness or temporary disability.
1065	1042		3. The member may purchase such service credit through:
1066	1043		a. a cash lump-sum payment,
1067	1044		b. a trustee-to-trustee transfer of non -Roth funds from a
1068	1045		Code Section 403(b) annuity or cus todial account, an
1069	1046		eligible deferred compensation plan described in Code
1070	1047		Section 457(b) which is maintained by an eligible
1071	1048		employer described in Code Section 457(e)(1)(A),
1072	1049		and/or a Code Section 401(a) qua lified plan,
1073	1050		c. a direct rollover of tax -deferred funds from a Code
1074	1051		Section 403(b) annuity or custodial account, an
1075	1052		eligible deferred comp ensation plan described in Code
1076	1053		Section 457(b) which is maintained by an eligible
1077	1054		employer described in Code Section 4 57(e)(1)(A), a
1078	1055		Code Section 401(a) qualified plan, a nd/or a Code
1079	1056		Section 408(a) or 408(b) traditional or conduit
1080	1057		Individual Retirement Acc ount or Annuity (IRA). Roth
1081	1058		accounts, Coverdell Education Savings Accounts and
1082	1059
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1084		-	(Bold face denotes Committee Amendments) 1
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1085	1061		2
1086	1062		3
1087	1063		4
1088	1064		5
1089	1065		6
1090	1066		7
1091	1067		8
1092	1068		9
1093	1069		10
1094	1070		11
1095	1071		12
1096	1072		13
1097	1073		14
1098	1074		15
1099	1075		16
1100	1076		17
1101	1077		18
1102	1078		19
1103	1079		20
1104	1080		21
1105	1081		22
1106	1082		23
1107	1083		24
1108	1084
1109	1085		after-tax contributions shall not be u sed to purchase
1110	1086		such service credit, or
1111	1087		d. any combination of the above methods of payment.
1112	1088		SECTION 4. It being immediate ly necessary for the preservation
1113	1089		of the public peace, health or safety, an emergency is hereby
1114	1090		declared to exist, by reason whereof this act shall take effect and
1115	1091		be in full force from and after its passage an d approval.
1116		-	COMMITTEE REPORT BY: COMMITTEE ON RETIREMENT AND INSURANCE
1117		-	March 26, 2024 - DO PASS
	1092	+	Passed the House of Representatives the 11th day of March, 2024.
	1093	+
	1094	+
	1095	+
	1096	+
	1097	+	Presiding Officer of the House
	1098	+	of Representatives
	1099	+
	1100	+
	1101	+
	1102	+	Passed the Senate the ___ day of __________, 2024.
	1103	+
	1104	+
	1105	+
	1106	+
	1107	+	Presiding Officer of the Senate
	1108	+
	1109	+