Oklahoma 2024 2024 Regular Session

Oklahoma House Bill HB3807 Introduced / Bill

Filed 01/18/2024

                     
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STATE OF OKLAHOMA 
 
2nd Session of the 59th Legislature (2024) 
 
HOUSE BILL 3807 	By: Burns 
 
 
 
 
 
AS INTRODUCED 
 
An Act relating to retirement; authorizing certain 
persons to become members in the Oklahoma Law 
Enforcement Retirement System; directing the Oklahoma 
Law Enforcement Retirement System Board to make 
determination of eligibility; directing certa in 
agencies to send notice; directing certain agencies 
and members to make contribut ions if certain 
conditions are met; providing conditions on which 
certain members shall be transfer red to the System; 
amending 47 O.S. 2021, Section 2 -300, as amended by 
Section 8, Chapter 151, O.S.L. 2023 (47 O.S. Supp. 
2023, Section 2-300), which relates to definit ions; 
modifying term; providing term; providing for 
codification; and providing an effective date. 
 
 
 
 
 
 
 
 
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: 
SECTION 1.     NEW LAW     A new section of law to be codified 
in the Oklahoma Statutes as Section 2-309.9 of Title 47, unless 
there is created a duplication in numbering, reads as follows: 
A.  Participating agencies may make an irrevocable written 
election to become participating employers in the Oklahoma Law 
Enforcement Retirement System for t heir Board-designated law   
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enforcement support staff who directly support C LEET certified law 
enforcement officers and are employed by a participating employer as 
determined by the Board.  The Board shall determine the allowable 
law enforcement support staf f eligible for transfer and may ceas e 
new membership if it is determined that the support staff is no 
longer eligible.  The participating agencies shall send written 
notice of the election to the Oklahoma Law Enforcement Retirement 
System. 
B. Beginning the following month after the System r eceives the 
written notice, the participating agencies and all active designated 
law enforcement support staff who are hired on or after the date of 
the election shall participate in and make contributions to the 
System as other participating employers and members of the System. 
C. Upon election by the Board, pursuant to subsection A of this 
section, active designated law enforcement support staff employed 
prior to the date of the election and who were participating in t he 
Oklahoma Public Employees Retirem ent System or Pathfinder, m ay, 
within three (3) months of the date of the election, make an 
irrevocable written election to participate in the Oklahoma Law 
Enforcement Retirement System and file the written election with the 
Oklahoma Public Employees Retir ement System or Pathfinder and the 
Oklahoma Law Enforcement Retirement System.  Such designated law 
enforcement support staff who make the election to transfer shall be   
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transferred to the Oklahoma Law Enforcement Retirem ent System 
subject to the following: 
1. Upon the date of election of the law enforcement support 
staff, the law enforcement support staff shall cease accruing 
benefits in the Oklahoma Public Employees Retirement System or 
Pathfinder and shall commence acc ruing benefits in the Oklahoma Law 
Enforcement Retirement System; 
2. Prior to the beginning of the month following receipt of the 
designated law enforcement support staff 's election by Oklahoma 
Public Employees Retirement System, the Oklahoma Public Emplo yees 
Retirement System or Pathfinder shall transfer to the Oklahoma Law 
Enforcement Retirement System all employee contributions and 
employer contributions plus accrued interest. The Oklahoma Public 
Employees Retirement System or Pathfinder shall also sen d to the 
Oklahoma Law Enforcement Re tirement System the retirement records of 
the transferring law enforcement support staff; 
3. To receive service credit accrued by such law enforcement 
support staff prior to the election, or prior to the date as of 
which the person making the election cea ses to be a member of the 
Oklahoma Public Employees Retirement System or Pathfinder, whichever 
date occurs last, the member shall pay the difference between the 
amount transferred by the Oklahoma Public Employees Retirem ent 
System or Pathfinder to the Okla homa Law Enforcement Retirement 
System in paragraph 2 of subsection C of this section and the amount   
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determined by the Board of Trustees pursuant to Section 2 -307.5 of 
Title 47 of the Oklahoma Stat utes.  The designated law enforcement 
support staff shall e lect to either pay any difference to receive 
full credit for the years sought to be transferred or receive 
prorated service credit for only the amount received from the 
Oklahoma Public Employees Retirement System or Path finder pursuant 
to subsection C of this section.  Payments made by electing 
designated law enforcement support staff pursuant to paragraph 3 of 
subsection C of this section shall be made pursuant to subsection B 
of Section 2-307.5 of Title 47 of the Oklahoma Statutes; 
4. Service credit accrued by a designated law enforcement 
support staff while a mem ber of the Oklahoma Public Employees 
Retirement System or Pathfinder shall be treated as credited service 
for such transferring designated law enforcement supp ort staff in 
the Oklahoma Public Emp loyees Retirement System or Pathfinder if the 
designated law enforcement support staff is not receiving or 
eligible to receive service credit or benefits from said service in 
any other public retirement system and the me mber has not received 
service credit for the same years of service pursuant to Sections 2 -
307.1, 2-307.3, and 2-307.4 of Title 47 of the Oklahoma Statutes.  
Provided further that only transferred credited service related to 
law enforcement service with the participating agencies shall be 
included in the determination of a law enforcement support staff 's 
normal retirement date o r vesting date; and   
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5. All service credit with the Oklahoma Public Employees 
Retirement System or Pathfinder which is ineligible fo r transfer to 
the Oklahoma Law Enfor cement Retirement System shall be cance lled. 
D. Upon election by the Board, pursuant to subsection A of this 
section, active law enforcement support staff employed prior to the 
date of the election and who were not part icipating in the Oklahoma 
Public Employees Retirement System or Pathfinder, may, within three 
(3) months of the date of the election, make an irrevocable written 
election to participate in the Oklahoma Law Enforcement Retirement 
System and file the written election with the Oklahoma Law 
Enforcement Retirement System.  Beginning the following month afte r 
the System for such desi gnated law enforcement support staff 
receives the law enforcement support staff 's written election, the 
participating agencies and the electing designated law enforceme nt 
support staff shall participate in and make contributions to t he 
System as other part icipating employers and members of the System. 
SECTION 2.   AMENDATORY     47 O.S. 2021, Section 2 -300, as 
amended by Section 8, Chapter 151, O.S.L. 2023 (47 O.S. Supp. 2023, 
Section 2-300), is amended to read as follows: 
Section 2-300. As used in Section 2-300 et seq. of this title: 
1.  "System" means the Oklahoma La w Enforcement Retirement 
System; 
2.  "Act" means Section 2-300 et seq. of this title;   
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3.  "Board" means the Oklahoma Law Enforce ment Retirement Board 
of the System; 
4.  "Executive Director" means the managing officer of the 
System employed by the Board; 
5. "Fund" means the Oklahoma Law Enforcement Reti rement Fund; 
6. a. "Member" means: 
(1) all commissioned law enforcement officers of the 
Oklahoma Highway Patrol Division of the 
Department of Public Safety who have obtained 
certification from the Council on Law Enforcement 
Education and Training, and all cadets of a 
Patrol Academy of the Department of Public 
Safety, 
(2) law enforcement officers and criminalists of the 
Oklahoma State Bureau of Investigation, 
(3) law enforcement officers of the Oklahoma State 
Bureau of Narcotics and Dangerous Drugs Contro l 
designated to perform dut ies in the investigation 
and prevention of crime and the enforcement of 
the criminal laws of this state, 
(4) law enforcement officers of the Alcoholic 
Beverage Laws Enforcemen t Commission designated 
to perform duties in the investigation and   
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prevention of crime and th e enforcement of the 
criminal laws of this state, 
(5) employees of the Communications Section of the 
Oklahoma Highway Patrol Division, radio 
technicians and tower technicians of the 
Department of Public Saf ety, who are employed in 
any such capacity as of J une 30, 2008, and who 
remain employed on or after July 1, 2008, until a 
termination of service, or until a termination of 
service with an election of a vested bene fit from 
the System, or until retirement.  Effective July 
1, 2008, a person employed for the first time as 
an employee of the De partment of Public Safety in 
the Communications Division as an information 
systems telecommunication technician of the 
Department of Public Safety shall not be a member 
of the System, 
(6) park rangers of the Oklahoma Tour ism and 
Recreation Department and a ny park manager or 
park supervisor of the Oklahoma Tourism and 
Recreation Department, who was employed in such a 
position prior to July 1, 1985, and who elects on 
or before September 1, 1996, to participate in 
the System, and   
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(7) inspectors of the State Board of Pharmacy, and 
(8) law enforcement support staff of the 
participating agencies, as determined by the 
Board. 
b. Effective July 1, 1987, a member does not include a 
"leased employee" as defined under Section 414(n)(2) 
of the Internal Revenue Code of 1986, as amended.  
Effective July 1, 1999, any individual who agrees with 
the participating employe r that the individual's 
services are to be performed as a leased employee or 
an independent contractor shall not be a member 
regardless of any classification as a common-law 
employee by the Internal Revenue Service or any other 
governmental agency, or any court of competent 
jurisdiction. 
c. All persons who shall be offered a position of a 
commissioned law enforcement officer as an employee of 
one of the agencies described in subparagraph a of 
this paragraph shall participate in the System upon 
the person meeting the requisite post-offer-pre-
employment physical examination standards which shall 
be subject to the following require ments: 
(1) all such persons shall be of good moral 
character, free from deformities, mental or   
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physical conditions, or disease and a lcohol or 
drug addiction which would prohibit the person 
from performing the duties of a law enforcement 
officer, 
(2) the physical-medical examination shall pertain to 
age, sight, hearing, agility and other conditions 
the requirements of which shall be est ablished by 
the Board, 
(3) the person shall be required to meet the 
conditions of this subsection prior to the 
beginning of actual employment but after an offer 
of employment has been tendered by a 
participating employer, 
(4) the Board shall have authority to deny or revoke 
membership of any person submitting false 
information in such person's membership 
application, and 
(5) the Board shall have final authority in 
determining eligibili ty for membership in the 
System, pursuant to the provisions of this 
subsection; 
7.  "Normal retirement date" means the date at which the member 
is eligible to receive the unreduced payments of the member's   
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accrued retirement benefit.  Such date shall be th e first day of the 
month coinciding with or following the date the member : 
a. completes twenty (20) years of vesting service, or 
b. attains sixty-two (62) years of age with ten (10) 
years of vesting service, or 
c. attains sixty-two (62) years of age, if: 
(1) the member has been transferred to this System 
from the Oklahoma Publi c Employees Retirement 
System on or after July 1, 1981, and 
(2) the member would have been vested had the member 
continued to be a member of the Oklahoma Public 
Employees Retirement S ystem. 
With respect to distributions under the System made for calendar 
years beginning on or after January 1, 2005, the System shall apply 
the minimum distribution incidental benefit requirements, incidental 
benefit requirements, and minimum distribution requirements of 
Section 401(a)(9) of the Internal Revenue Code of 1986, as amended, 
in accordance with the final regulations under Section 401(a)(9) of 
the Internal Revenue Code of 1986, as amended , including Treasury 
Regulations Sections 1.401(a)(9) -1 through 1.401(a)(9)-9; provided, 
that for individuals who attain seventy an d one-half (70 1/2) years 
of age after December 31, 2019, but before January 1, 2023, such 
distributions shall take into account that "age 70 1/2" was stricken 
and "age 72" was inserted in Sections 401(a)(9)(B)(iv)(I),   
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401(a)(9)(C)(i)(I) and 401(a)( 9)(C)(ii)(I) of the Internal Revenue 
Code of 1986, as amended, and, provided further, that for 
individuals who attain seventy-two (72) years of age after December 
31, 2022, such distributions shall take into account that "age 72" 
was stricken and "the applicable age", as defined in Section 
401(a)(9)(C)(v) of the Internal Revenue Code of 1986, as amended, 
was inserted in Section 401(a)(9)(B)(iv)(I), Section 
401(a)(9)(C)(i)(I) and Section 401(a)(9)(C)(ii)(I) of the Internal 
Revenue Code of 1986, as amended, in all c ases notwithstanding any 
provision of the System to the contrary.  With respect to 
distributions under the System made for calendar years beginning on 
or after January 1, 2001, through December 31, 2004, the System 
shall apply the minimum distribution requ irements and incidental 
benefit requirements of Section 401(a)(9) of the Internal Revenue 
Code of 1986, as amended, in accordance with the regulations under 
Section 401(a)(9) of the Internal Revenue Code of 1986, as amended, 
which were proposed in January 2001, notwithstanding any provision 
of the System to the contrary. 
Effective July 1, 1989, notwithstanding any other provision 
contained herein to the contra ry, in no event shall commencement of 
distribution of the accrued retirement benefit of a member b e 
delayed beyond April 1 of the calendar year following the later of:  
(1) the calendar year in which the member reaches seventy and one-
half (70 1/2) years o f age for a member who attains this age before   
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January 1, 2020, or, for a member who attains this age on or after 
January 1, 2020, but before January 1, 2023, the calendar year in 
which the member reaches seventy-two (72) years of age, or effective 
for distributions required to be made after December 31, 2022, the 
calendar year in which the member reac hes seventy-three (73) years 
of age for an individual who attains age seventy -two (72) after 
December 31, 2022, or "the applicable age", as defined in Section 
401(a)(9)(C)(v) of the Internal Revenue Code of 1986, as amended, if 
later; or (2) the actual ret irement date of the member. A member 
electing to defer the commencement of retirem ent benefits pursuant 
to Section 2-308.1 of this title may not defer the benef it 
commencement beyond the age of sixty-five (65). 
Effective September 8, 2009, notwithstandin g anything to the 
contrary of the System, the System, which as a governmental plan 
(within the meaning of Section 414(d) of the Internal Revenue Code 
of 1986, as amended), is treated as having complied with Section 
401(a)(9) of the Internal Revenue Code of 1986, as amended, for all 
years to which Section 401(a)(9) of the Internal Revenue Code of 
1986, as amended, applies to the System if the System complies with 
a reasonable and good faith interpretation of Section 401(a)(9) of 
the Internal Revenue Code of 1986, as amended. 
A member who was required to join the System effective July 1, 
1980, because of the transfer of the employing agency from the 
Oklahoma Public Employees Retirement System to the System, and was   
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not a member of the Oklahoma Public Employee s Retirement System on 
the date of such transfer shall be allowed to receive credit f or 
prior law enforcement service rendered to this state, if the member 
is not receiving or eligible to receive retirement credit or 
benefits for such service in any other public retirement system, 
upon payment to the System of the employee contribution the member 
would have been subject to had the member been a member of the 
System at the time, plus five percent (5%) interest. Service credit 
received pursuant to this parag raph shall be used in determining the 
member's retirement benefit, and shall be used in determining years 
of service for retirement or vesting purposes; 
8. "Participating agencies" means the Oklahoma Department of 
Public Safety (DPS), Oklahoma State Bureau of Investigation (OSBI), 
Oklahoma State Bureau of Narcotics and Dangerous Drugs Control 
(OBNDDC), Oklahoma Alcoholic Beverage Laws Enforcement (ABLE) 
Commission, Oklahoma Law Enforcement Retirement System (OLE RS), and 
any other agency as determined by the Board; 
9. "Actual paid base salary" means the salary received by a 
member, excluding payment for any accumulated leave or uniform 
allowance.  Salary shall include any amount of nonelective salar y 
reduction under Section 414(h) of the Internal Revenue Code of 1986; 
9. 10.  "Final average salary" means the average of the highest 
thirty (30) consecutive complete month s of actual paid gross salary.  
Gross salary shall include any amount of elective salar y reduction   
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under Section 457 of the Internal Revenue Code of 1986, as amended, 
and any amount of nonelective salary reduction under Section 414(h) 
of the Internal Reven ue Code of 1986, as amended.  Effective July 1, 
1992, gross salary shall include any am ount of elective salary 
reduction under Section 125 of the Internal Revenue Code of 1986, as 
amended.  Effective July 1, 1998, gross salary s hall include any 
amount of elective salary reduction not includable in the gross 
income of the member under Section 132(f)(4) of the Internal Revenue 
Code of 1986, as amended.  Effective July 1, 1998, for purposes of 
determining a member's compensation, any contribution by the member 
to reduce his or her regular cash remuneration under Section 
132(f)(4) of the Internal Revenue Code of 1986, as amended, shall be 
treated as if the member did not make such an election. Only salary 
on which required contributi ons have been made may be us ed in 
computing the final average salary.  Gross salary shall not include 
severance pay. 
In addition to other applicable limitations, and notwithstanding 
any other provision to the contrary, for plan years beginning on or 
after July 1, 2002, the annual gr oss salary of each "Noneligible 
Member" taken into account under the System shall not ex ceed the 
Economic Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA") 
annual salary limit.  The EGTRRA annual salary limit is Two Hun dred 
Thousand Dollars ($200 ,000.00), as adjusted by the Commissioner for 
increases in the cost of living in accorda nce with Section   
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401(a)(17)(B) of the Internal Revenue Code of 1986, as amended.  The 
annual salary limit in effect for a calendar year appli es to any 
period, not exceeding twelve (12) months, over which salary is 
determined ("determination period ") beginning in such calendar year.  
If a determination period consists of fewer than twelve (12) months, 
the EGTRRA salary limit will be multiplied b y a fraction, the 
numerator of which is the number of months in the determination 
period, and the denominator of wh ich is twelve (12).  For purposes 
of this section, a "Noneligible Member" is any member who first 
became a member during a plan year commenci ng on or after July 1, 
1996. 
For plan years beginning on or after July 1, 2002, any reference 
in the System to the annual salary limit under Section 401(a)(17) of 
the Internal Revenue Code of 1986, as amended, shall mean the EGTRRA 
salary limit set forth i n this provision. 
Effective January 1, 2008, gross salary for a plan year shall 
also include gross salary, as descr ibed above, for services, but 
paid by the later of two and one-half (2 1/2) months after a 
member's severance from employment or the end of t he calendar year 
that includes the date the member terminated employment, if it is a 
payment that, absent a severan ce from employment, would have been 
paid to the member while the member continued in employment with the 
employer.   
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Effective January 1, 2008, any payments not described above 
shall not be considered gross salary if paid after severance from 
employment, even if they are paid by the later of two and one-half 
(2 1/2) months after the date of severance from employment or the 
end of the calendar yea r that includes the date of severance from 
employment, except payments to an individual who does not currently 
perform services for the employer by reason of qualified military 
service within the meaning of Section 414(u)(5) of the Internal 
Revenue Code of 1986, as amended, to the extent these payments do 
not exceed the amounts the individual would have received if the 
individual had continued to perform services for the employer rather 
than entering qualified military service. 
Effective January 1, 2008, ba ck pay, within the meaning of 
Section 1.415(c)-2(g)(8) of the Income Tax Regulations, shall be 
treated as gross sal ary for the limitation year to which the back 
pay relates to the extent the back pay represents wages and 
compensation that would otherwise b e included in this definition. 
Effective for years beginning a fter December 31, 2008, gross 
salary shall also inclu de differential wage payments under Section 
414(u)(12) of the Internal Revenue Code of 1986, as amended; 
10. 11. "Credited service" means the period of service used to 
determine the amount of benefits payab le to a member.  Credited 
service shall consist of th e period during which the member 
participated in the System or the predecessor Plan as an active   
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employee in an eligible membership class ification, plus any service 
prior to the establishment of the pred ecessor Plan which was 
credited under the predecessor Plan and for law enforcement officers 
and criminalists of the Oklahoma State Bureau of Investigation and 
the Oklahoma State Bureau of Na rcotics and Dangerous Drugs Control 
who became members of the Syst em on July 1, 1980, any service 
credited under the Ok lahoma Public Employees Retirement System as of 
June 30, 1980, and for members of the Communications and Lake Patrol 
Divisions of the Okl ahoma Department of Public Safety, who became 
members of the Syste m on July 1, 1981, any service credited under 
the predecessor Plan or the Oklahoma Public Employees Retirement 
System as of June 30, 1981, and for law enforcement officers of the 
Alcoholic Beverage Laws Enforcement Commission who became members of 
the System on July 1, 1982, any service credited under the Ok lahoma 
Public Employees Retirement System as of June 30, 1982, and for park 
rangers of the Oklahoma Tourism and Recreation Department who became 
members of the System on July 1, 1985, any service credite d under 
the Oklahoma Public Employees Retirement Syst em as of June 30, 1985, 
and for inspectors of the State Board of Pharmacy who became members 
of the System on July 1, 1986, any service c redited under the 
Oklahoma Public Employees Retirement System as o f June 30, 1986, for 
law enforcement officer s of the Oklahoma Capitol Patrol Division of 
the Department of Public Safety who became members of the System 
effective July 1, 1993, any service credited under the Oklahoma   
RBH No. 9475 
 
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Public Employees Retirement System as of June 30, 1993, and for all 
commissioned officers in the Gunsmith/Ammunition Reloader Division 
of the Department of Public Safety who became members of the System 
effective July 1, 1994, a ny service credited under the Oklahoma 
Public Employees Retirement System as of June 30, 1994, and for the 
park managers or park supervisors of the Oklahoma Tourism and 
Recreation Department who were employed in such a position prior to 
July 1, 1985, and who elect to become members of the System 
effective September 1, 19 96, any service transferred pursuant to 
subsection C of Section 2-309.6 of this title and any service 
purchased pursuant to subsection B of Section 2-307.2 of this title.  
Effective August 5, 1993, an authorized leave of absence shall 
include a period of a bsence pursuant to the Family and Medical Le ave 
Act of 1993; 
11. 12. "Disability" means a physical or mental condition 
which, in the judgment of the Board, totally and presumably 
permanently prevents the member from e ngaging in the usual and 
customary duties of the occupation of the member and thereaft er 
prevents the member from performing the duties of any occupation or 
service for which the member is qualified by reason of training, 
education or experience.  A person is not under a disability when 
capable of performing a service to the employer, regar dless of 
occupation, providing the salary of the employee is not diminished 
thereby;   
RBH No. 9475 
 
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12. 13. "Limitation year" means the year used in applyin g the 
limitations of Section 41 5 of the Internal Revenue Code of 1986, 
which year shall be the calendar year; 
13. 14. "Line of duty" means any action which a member whose 
primary function is crime control or reduction or enforcement of the 
criminal law is obligated or authorized by rule, regulations, 
condition of employment or serv ice, or law to perform including 
those social, ceremonial or athletic functions to which the member 
is assigned, or for which the member is compensated, by the agency 
the member serves; 
14. 15. "Personal injury" or "injury" means any traumatic 
injury as well as diseases which are caused by or result f rom such 
an injury, but not occupational diseases; 
15. 16.  "Catastrophic nature" means consequences of an injury 
that permanently prevent an individual from performing an y gainful 
work; 
16. 17. "Traumatic injury" means a wound or a condition of the 
body caused by external force including injuries inflicted by 
bullets, explosives, sharp ins truments, blunt objects or other 
physical blows, chemicals, electricity, climatic cond itions, 
infectious diseases, radiation and bacte ria, but excluding stress 
and strain; and 
17. 18. "Beneficiary" means the individual designated by the 
member on a beneficiar y designation form supplied by the Oklahoma   
RBH No. 9475 
 
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Law Enforcement Retirement System, or, if there is no designated 
beneficiary or if the des ignated beneficiary predeceases the member, 
the estate of the member.  If the member's spouse is not designated 
as the sole primary beneficiary, the member's spouse must sign a 
consent. 
SECTION 3.  This act shall become effective November 1, 2024. 
 
59-2-9475 CMA 01/10/24  
 
THOMAS E. CUMMINS  CONSULTING ACTUARY, INC. 
2512 E. 71
st 
Street ,  Suite D ∙  Tulsa, Oklahoma 74136                           
(918) 492-9658  ∙ (918) 492- 9659 
 
 
 
 
January 15, 2024 
 
 
 
Representative Burns 
Room 300.4  
 
 
Re: RBH No. 9475 
 
RBH No. 9475 would allow a participating agency to make an election 
to permit support staff of CLEET certified law enforcement officer 
to become participants of OLERS. 
New hires would automatically become OLERS participants. Existing 
participants of OPERS and Pathfinder may elect to become 
participants of OLERS. Past service cr edit to be purchased at 
actuarial cost. 
 
RBH No. 9475 is a fiscal bill as defi ned by OPLAAA. 
 
 
 
 
I am a member of the American Academy of Actuaries and meet the 
Qualification Standards of the American Academy of Actuaries to 
render the actuarial opinion herein. 
 
 
Thomas E. Cummins 
 
Thomas E. Cummins, MAAA