RBH No. 10505
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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 3807 By: Burns
COMMITTEE SUBSTITUTE
An Act relating to retirement; authorizing certain
persons to become members in the Oklahoma Law
Enforcement Retirement System; directing certain
agencies to send notice; directing certain agencies
and members to make contributions 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 definitions;
modifying term; defining terms; 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 La w
Enforcement Retirement System for t heir employees who are law
enforcement officers certified by the Council on Law Enforcement
Education and Training (CLEET) and designated law enforcement RBH No. 10505
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support staff who directly support C LEET certified law enforcemen t
officers and are employed by a participating agency as defined in
Section 2-300 of Title 47 of the Oklahoma Statutes . 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 officers and allowable law enforcement support staff
who are hired on or af ter 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 officers and allowable
law enforcement support s taff employed prior to the date of the
election and who were participating in t he Oklahoma Public Employees
Retirement System or Pathfinder, may, within three (3) months of the
date of the election, make an ir revocable written election to
participate in the Oklahoma Law Enforcement Retirement System and
file the written election with the Oklahoma Public Employees
Retirement System or Pathfinder and the Oklahoma Law Enforcement
Retirement System. Such designated law enforcement officers and
allowable law enforcement support staff who make the election to
transfer shall be transferred to the Oklahoma Law Enforcement
Retirement System subject to the following: RBH No. 10505
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1. Upon the date of election of the law enforcement officers
and allowable law enforcement support s taff, the law enforcement
officers and allowable law enforcement support staff shall cease
accruing benefits in the Oklahom a Public Employees Retirement System
or Pathfinder and shall commence acc ruing benefits in the Oklahoma
Law Enforcement Retirement Sy stem;
2. Prior to the beginning of the month following receipt of the
designated law enforcement officers and allowable 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 co ntributions plus
accrued interest. The Oklahoma Public Employees Retirement System
or Pathfinder shall also sen d to the Oklahoma Law Enforcement
Retirement System the retirement records of the transferring law
enforcement officers and allowable law enforcement support staff;
3. To receive service credit accrued by such law enforcement
officers and allowable law enforcement support sta ff prior to the
election, or prior to the date as of whic h the person making the
election ceases to be a member of the Okla homa Public Employees
Retirement System or Pathfinder, whichever date occurs last, the
member shall pay the difference between the am ount transferred by
the Oklahoma Public Employees Retirem ent System or Pathfinder to the
Oklahoma Law Enforcement Retiremen t System in paragraph 2 of RBH No. 10505
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subsection C of this section and the amount determined by t he Board
of Trustees pursuant to Section 2 -307.5 of Title 47 of the Oklahoma
Statutes. The designated law enforcement officers and allowable law
enforcement support staf f shall elect 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 officers and allowable 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
officers and allowable law enforcement support st aff while a member
of the Oklahoma Public Employees Retirement System or Pathfinder
shall be treated as credited service fo r such transferring
designated law enforcement officers and allowable law enforcement
support staff in the Oklahoma Public Emp loyees Retirement System or
Pathfinder if the designated law enforcement officers and allowable
law enforcement support staff is not receiving or eligible to
receive service credit or benefits from said service in an y 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 RBH No. 10505
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further that only transferred credited service related to law
enforcement service or law enforcement support service with the
participating agencies shall be inc luded in the determination of a
law enforcement officer 's and allowable law enforcement support
staff's normal retirement date o r vesting date; and
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 cancelled.
D. Upon election by the Board, pursuant to subsection A of this
section, active law enforcement officer s and allowable 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 designated law enforcement officers and allowable law
enforcement support staff receives the law enforcement support
staff's written election, the participating agencies and the
electing designated law enforcement officers and allowable law
enforcement support staff shall participa te in and make
contributions to the System as other part icipating employers and
members of the System. RBH No. 10505
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SECTION 2. AMENDATORY 47 O.S. 2021, Section 2 -300, as
amended by Section 8, Chap ter 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 Law Enforcement Retirement
System;
2. "Act" means Section 2-300 et seq. of this title;
3. "Board" means the Oklahoma Law Enforcement 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 enforcem ent 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 RBH No. 10505
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designated to perform duties 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 Enforcement Commission designated
to perform duties in the investigation and
prevention of crime and the 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 June 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 ves ted benefit from
the System, or until retirement. Effective July
1, 2008, a person employed for the first time as
an employee of the Department 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, RBH No. 10505
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(6) park rangers of the Oklahoma Tourism and
Recreation Department an d any 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
(7) inspectors of the State Board of Pharmacy,
(8) law enforcement support staff of the
participating agencies, and
(9) Council on Law Enforcement Edu cation and Training
(CLEET) certified law enforcement game wardens of
the Oklahoma Department of Wildlife C onservation.
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 employer 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. RBH No. 10505
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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
physical conditions, or disease and alcohol 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 established 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 RBH No. 10505
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information in such person's membership
application, and
(5) the Board shall have final authority in
determining eligibility for membership in the
System, pursuant to the provis ions 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
accrued retirement benefit. Such date shall be the first day of the
month coinciding with or following t he 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 Public 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 System.
With respect to distributions under the System m ade 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 RBH No. 10505
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Section 401(a)(9) of the Internal Reven ue 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 and 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),
401(a)(9)(C)(i)(I) a nd 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 Decembe r
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 cases 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 requirements 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, RBH No. 10505
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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 contrary, in no event shall commencement of
distribution of the accrued retirement benef it of a member be
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 of age for a member who attains this age before
January 1, 2020, or, for a member w ho 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 reaches 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 retirement 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 benefit
commencement beyond the age of sixty-five (65).
Effective September 8, 2009, notwithstanding 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 RBH No. 10505
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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
not a member of the Oklahoma P ublic Employees 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 paragraph 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), Oklaho ma State Bureau of Investigation (OSBI),
Oklahoma State Bureau of Narcotics and Dangerous Drugs Control
(OBNDDC), Oklahoma Alcoholic Beverage Laws Enforcement (ABLE) RBH No. 10505
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Commission, Oklahoma Law Enforcement Retirement System (OLE RS), and
Oklahoma Department of Wildlife Conservation ( ODWC);
9. "Law enforcement support staff" means those employees of
participating agencies that directly supp ort CLEET law enforcement
officers and include chaplains, analysts, communications, and
employees of Oklahoma Law Enforcement Retirement System (OLERS);
10. "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. 11. "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
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 RBH No. 10505
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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
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. RBH No. 10505
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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.
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. RBH No. 10505
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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. 12. "Credited service" means the period of service used to
determine the amount of benefits payable 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
employee in an eligible membership class ification, plus any service
prior to the establishment of the predecessor 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 System 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 System 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 RBH No. 10505
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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 credited 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 a s of 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
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 Retirem ent 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, 1996, 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 RBH No. 10505
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include a period of absence pursuant to the Family and Medical Le ave
Act of 1993;
11. 13. "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;
12. 14. "Limitation year" means the year used in applyin g the
limitations of Section 41 5 of the Internal Revenue Code o f 1986,
which year shall be the calendar year;
13. 15. "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 service, 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; RBH No. 10505
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14. 16. "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. 17. "Catastrophic nature" means consequences of an injury
that permanently prevent an individual from performing an y gainful
work;
16. 18. "Traumatic injury" means a wound or a condition of the
body caused by external force including injuries inflicted by
bullets, explosives, sharp instruments, blunt objects or other
physical blows, chemicals, electricity, climatic cond itions,
infectious diseases, radiation and bacteria, but excluding stress
and strain; and
17. 19. "Beneficiary" means the individual designated by the
member on a beneficiary designation form supplied by the Oklahoma
Law Enforcement Retirement System, or, if there is no designated
beneficiary or if the designated 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.
59-2-10505 CMA 02/27/24