RBS No. 3512
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SENATE FLOOR VERSION
February 20, 2024
COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 102 By: Garvin and Hamilton of the
Senate
and
Bashore of the House
An Act relating to the Oklahoma Police Pension and
Retirement System; amending 11 O.S. 2021, Sections
50-101, as amended by Section 2, Chapter 306, O.S.L.
2022, 50-109, as amended by Section 1, Chapter 53,
O.S.L. 2023, 50-110, as amended by Section 2, Chapter
53, O.S.L. 2023, and 50-111.1 (11 O.S. Supp. 202 3,
Sections 50-101, 50-109, and 50-110), which relate to
definitions, employee and employer contributions, and
termination of employment; modifying definitions;
increasing minimum employee contribution fo r certain
members of System; increasing computation of certain
monthly benefits; providing for effective dates of
certain increase; increasing employer contribution;
updating statutory language; making language gender
neutral; amending 62 O.S. 2021, Section 3103, as last
amended by Section 1, Chapter 306, O.S.L. 2022 (62
O.S. Supp. 2023, Section 3103), which relates to the
Oklahoma Pension Legislation Actuarial Analysis Act;
updating statutory language; u pdating statutory
references; modifying definition; providing effective
dates; and declaring an emergency .
BE IT ENACTED BY THE PEOPLE OF THE ST ATE OF OKLAHOMA: RBS No. 3512
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SECTION 1. AMENDATORY 11 O.S. 2021, Section 50 -101, as
amended by Section 2, Chapter 306, O.S.L. 2022 (11 O.S. Supp. 202 3,
Section 50-101), is amended to read as follows:
Section 50-101. As used in this article:
1. “System” means the Oklahoma Police Pe nsion and Retirement
System and all predecessor municipal Police Pension and Retirement
Systems police pension and retirement systems ;
2. “Article” means Article 50 of this title;
3. “State Board” means the Oklahoma Police Pension and
Retirement Board;
4. “Fund” means the Oklahoma Police Pension and Retirement
Fund;
5. “Officer” means any duly appointed and sworn full -time
officer of the regular police department of a municipality whose
duties are to preserve the public peace, protect life and property,
prevent crime, serve warrants, enforce all laws and municipal
ordinances of this state, an d any political subdivision thereof, and
who is authorized to bear arms in the execution of such duties;
6. “Member” means all eligible officers of a participating
municipality and any person hired by a participating municipality
who is undergoing police training to become a permanent p olice
officer of the municipality. Effective July 1, 1987, a member does
not include a “leased employee” as defined under Section 41 4(n)(2)
of the Internal Revenue Code of 1986, as amended. Effective July 1, RBS No. 3512
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1999, any individual who agrees with the participating munic ipality
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 governme ntal agency, or any
court of competent jurisdiction. A member shall include eligible
commissioned officers of the Oklahoma State Bur eau of Narcotics and
Dangerous Drugs Control, the Oklahoma State Bureau of Investigation,
and the Alcoholic Beverage Laws Enforcement Com mission who elect to
participate in the System pursuant to Section 50-111.5 of this
title;
7. “Normal retirement date ” means the date at which the member
is eligible to receive the unreduced payments of the member ’s
accrued retirement benefi t. Such date shall be the first day of the
month coinciding with or followi ng the date the member completes
twenty (20) years of cre dited service. If the member ’s employment
continues past the normal retirement date of the member, the actual
retirement date of the mem ber shall be the first day o f the month
after the member terminates employment with more than twenty (20)
years of credited service;
8. “Credited service” means the period of service used to
determine the eligibility for and the amount of be nefits payable to
a member. Credited service shall consist of the period du ring which
the member participated in the System or the p redecessor municipal RBS No. 3512
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systems as an active employee in an eligible membership
classification, plus any service prior to the establishment of the
predecessor municipal systems which was credited under the
predecessor municipal systems or credited service granted by the
State Board;
9. “Participating municipality ” means a municipality which is
making contributions to the System on behalf of its officers. The
Oklahoma State Bureau of Narcotics and Dange rous Drugs Control, the
Oklahoma State Bureau of Investig ation, and the Alcoholic Beverage
Laws Enforcement Commission shall be treated in the same manner as a
participating municipality only re garding those members who el ect to
participate in the System pursuant to Secti on 50-111.5 of this
title;
10. “Permanent total disability ” means incapacity due to
accidental injury or occupational disease , to earn any wages in the
employment for which the member is physically suited and reasonably
fitted through education, training or experience. Further, the
member must be declared one hundred percent (100%) impaired as
defined by the “American Medical Associa tion’s Guides to the
Evaluation of Permanent I mpairment” American Medical Associa tion
Guides to the Evaluation of Permanent Impairment on the basis of a
physical medical examination by a physician licensed to practice
medicine in this state, as selected by the State Board; RBS No. 3512
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11. “Permanent partial disability ” means permanent disability
which is less than permanen t total disability as defined in this
section. The member must be declared no greater than ninety -nine
percent (99%) impaired as defin ed by the “American Medical
Association’s Guides to the Evaluation of Permanent Impairment ”
American Medical Association Guides to the Evaluation of Permanent
Impairment on the basis of a physical medical examinatio n by a
physician licensed to practice medicine in this state, as selected
by the State Board;
12. “Permanent in-line disability” means when a police officer
serving in any capacity at a regular police dep artment of a
participating municipali ty becomes so physically or mentally
disabled, as determined by an independent medical examiner,
psychiatrist, or psychologist select ed by the State Board, while in,
and in consequence of, the performance of authorizing acti vities
while on duty as an officer that he or she is unable to perform the
required duties of a police officer;
13. “Beneficiary” means a member’s surviving spouse or any
surviving children, including biolog ical and adopted children, at
the time of the member’s death. The surviving spo use must have been
married to the member for the thirty (30) continuous months
immediately preceding the member ’s death, provided a s urviving
spouse of a member who died while in, and as a con sequence of, the
performance of the member’s duty for a participating municipa lity, RBS No. 3512
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shall not be subject t o the thirty-month marriage requiremen t for
survivor benefits. A surviving child of a member shall be a
beneficiary until reaching ei ghteen (18) years of age or twenty-two
(22) years of age if the child is enrolle d full time full-time and
regularly attending a public or private school or any institution of
higher education. Any child adopted b y a member after the member’s
retirement shall be a benefic iary only if the child is adopted by
the member for the thirty (30) continuous months pr eceding the
member’s death. Any child who is adopted by a member after the
member’s retirement and such member dies accidentally or as a
consequence of the performance of the member’s duty as a police
officer shall not be subject to the thir ty-month adoption
requirement. This definition of beneficiary shall be in addition to
any other requirement set forth in t his article;
14. “Executive Director” means the managing o fficer of the
System employed by the State Board;
15. “Eligible employer” means any municipality with a municipal
police department;
16. “Entry date” means the date as of which an eligible
employer joins the System. The first entry date pursuant to this
article shall be January 1, 1981;
17. “Final average salary ” means the average paid base salary
of the member for normally scheduled hours over the highest salaried
thirty (30) consecutive months of the last sixty (60) months of RBS No. 3512
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credited service. Effect ive July 1, 2016, the following s hall apply
in computing final average salary:
a. only paid base salary on which req uired contributions
have been made shall be used in computing a member ’s
final average salary,
b. for purposes of determinin g the normal disability
benefit only, final average salary shall be based on
the member’s total service if less than thirty (30)
months,
c. in addition to other applicable limitations, and
notwithstanding any othe r provision to the contrary,
for plan years beginning on or after July 1, 2002, the
annual compensation of each “Noneligible Member”
noneligible member taken into account under the System
shall not exceed the Economic Growth and Tax Relief
Reconciliation Act of 2001 (EGTRRA) annual
compensation limit. The EGTRRA annual compensation
limit is Two Hundred Thousand Dollars ($200,000.00),
as adjusted by the C ommissioner for increases in the
cost of living in accordance with Section
401(a)(17)(B) of the Internal Revenue Code of 1986, as
amended. The annual compensation limit in effect for
a calendar year applies to any period, n ot exceeding
twelve (12) months, over which compensation is RBS No. 3512
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determined (“determination period”) beginning in such
calendar year. If a determination period consists of
fewer than twelve (12) months, the EGTRRA annual
compensation limit will be multiplied by a fraction,
the numerator of which is the number of months in the
determination period, and the denominator of which is
twelve (12). For purposes of this section, a
“Noneligible Member” noneligible member is any member
who first became a member during a plan year
commencing on or after July 1, 1996,
d. for plan years beginning on or after July 1, 2002, any
reference in the System to the annual compensation
limit under Section 40 1(a)(17) of the Internal Revenue
Code of 1986, as amended, shall mean the EGTRRA annual
compensation limit set forth in this pro vision, and
e. effective January 1, 2008, back pay, within the
meaning of Section 1.4 15(c)-2(g)(8) of the Income Tax
Regulations, shall be treat ed as paid base salary for
the limitation year to which the back pay relates to
the extent the back pay represents wages and
compensation that would other wise be included in this
definition;
18. “Accrued retirement benefit ” means, for benefits computed
prior to the effective date of this act, two and one-half percent (2 RBS No. 3512
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1/2%) of the member’s final average salary mu ltiplied by the
member’s years of credited service not to exceed thirty (30) years .
For a member who retires on or after the effective date of t his
act, accrued retirement benef it shall mean:
a. for members who retire and te rminate employment at
least one year after the effective date of this act,
and have at least twenty -five (25) years of credited
service, two and three -quarters percent (2.75%) of the
member’s final average salary multiplied by the
member’s years of credited service, not to exceed
thirty (30) years,
b. for members who retire and terminate employment at
least two (2) years after the effective date of this
act, and have at least tw enty (20) years of credited
service, two and three-quarters percent (2.75%) of t he
member’s final average salary multiplied by the
member’s years of credited service, not to exceed
thirty (30) years,
c. for members who retire and terminate employment at
least five (5) years after the effective date of this
act, two and three-quarters percent (2.75%) of the
member’s final average salary multiplied by the
member’s years of credited service, not to exc eed
thirty (30) years, and RBS No. 3512
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d. for members who retire and te rminate employment on or
after the effective date of this act, but do not have
the minimum years of credited service to qualif y for
the benefit outlined i n subparagraphs a and b of this
paragraph, or retire and terminate employment prior to
the date outlined in subparagraph c of this paragraph,
two and one-half percent (2.5%) of the member ’s final
average salary multiplied by the member ’s years of
credited service, not to exceed thirty (30) years ;
19. “Normal disability benefit” means:
a. for benefits computed prior to the effective date of
this act, the greater of:
a. (1) two and one-half percent (2 1/2%) of the
member’s final average salary multiplied by
twenty (20) years, notwithstanding the years of
actual credited service, or
b. (2) two and one-half percent (2 1/2%) of the
member’s final average salary multiplied by the
years of credited service of the member, n ot to
exceed thirty (30) years, if the officer has more
than twenty (20) years of cre dited service,
b. for benefits computed on or after the eff ective date
of this act, the grea ter of: RBS No. 3512
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(1) two and three-quarters percent (2.7 5%) of the
member’s final average salary multi plied by
twenty (20) years, notwithstanding the years of
actual credited service, or
(2) two and three-quarters percent (2.75%) of the
member’s final average salary multiplied by the
years of credited service of the member, not to
exceed thirty (30) years, if the officer has more
than twenty (20) years of credited service ;
20. “Limitation year” means the year used in applying the
limitations of Section 415 of the I nternal Revenue Code of 1986, as
amended, which year shall be the calendar year;
21. “Paid base salary” means, effective July 1, 2016, any
compensation described in subparagraph a of this paragraph that is
not described in subparagraph b of this paragraph.
a. Paid base salary shall include only:
(1) normal compensation paid on a reg ularly scheduled
pay period including, but not limited to, regular
pay for holidays, paid time off, vacation or
annual leave, sick leave or comp ensatory time in
lieu of overtime, any lump sum payment paid in
lieu of a normal wage increase, provided such
lump sum payment is retroactively applied over
the prior twelve-month period ending with the RBS No. 3512
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payment date, compensation for bomb s quad pay,
education pay, incentive pay, K -9 pay,
negotiation pay, shift differential, snipe r pay,
SWAT team pay, emergency respo nse team pay, any
other special unit pay, and any incremental
increase in compensatio n which is not included by
the employer in a member ’s regular base pay for
salary increase purposes but is paid by the
employer to the memb er for group health benefits
based on an arrangement with a participating
municipality that was in place on December 31,
2015, so long as the arrangement contin ues
uninterrupted for a member employed by a
participating municipality on June 30, 2016, w ho
has not since terminated employmen t and been
rehired by such participating municipality,
(2) any amount of elective sal ary reduction under
Section 125 of the Internal Reve nue Code of 1986,
as amended, that would have been treated as paid
base salary but for the salary deferral reduction
agreement,
(3) any amount of elective salary reduction not
includable in the gross income of the member
under Section 132(f)(4) of the Internal Revenue RBS No. 3512
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Code of 1986, as amended, that would have been
treated as paid base salary but for the salary
deferral reduction agreement,
(4) any amount of elective salary reduction under
Section 457 of the Internal Revenue Code of 1986,
as amended, that would have been treated as paid
base salary but for the salary deferral reduction
agreement,
(5) any amount of elective salary reductio n under
Section 401(k) of th e Internal Revenue Code of
1986, as amended, that would have been treated as
paid base salary but for the salary deferral
reduction agreement,
(6) any amount of nonelective salary reduction under
Section 414(h) of the Internal Revenue Code of
1986, as amended,
(7) educational allowances paid to obt ain training
certification or pursue an advanced deg ree,
(8) longevity payments made to memb ers based upon a
standardized plan which recogn izes length of
service to the participating mu nicipality,
(9) paid base salary shall also include base salary,
as described in divisions (1) through (8) of this
subparagraph, for services, but paid by the later RBS No. 3512
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of two and one-half (2 1/2) months after a
member’s severance from employment or the end of
the calendar year that includes the date the
member terminated employm ent, if it is a payment
that, absent a severance from emplo yment, would
have been paid to th e member while the member
continued in employme nt with the participating
municipality,
(10) any payments not described in divisions (1)
through (9) of this subparagraph shall not be
considered paid base sala ry 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 year that includes the
date of severance from employment, except
payments to an individ ual who does not currently
perform services for the participating
municipality 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 RBS No. 3512
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the participating municipality rather than
entering qualified military service,
(11) back pay, within the meaning of Section 1.415(c)-
2(g)(8) of the Income T ax Regulations, shall be
treated as paid base salary for the limitation
year to which the back pay relates to the extent
the back pay represents wages and compensation
that would otherwise be included in this
definition, and
(12) paid base salary shall also include differential
wage payments under Section 414(u)(12) of the
Internal Revenue Code of 1986, as amended.
b. Notwithstanding anything to the contrary in this
section, paid base salary shall n ot include any:
(1) fringe benefits, reimbursements, or inc reases in
compensation due to rei mbursements to the extent
not specifically incl uded above in subparagraph a
of this paragraph,
(2) incremental increase i n compensation which is not
included by the employer in a member ’s regular
base pay for salary increase purposes but is paid
by the employer to the member for group health
benefits not otherwise included above in d ivision
(1) of subparagraph a of this paragraph, RBS No. 3512
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(3) insurance benefits, including an y reimbursements
thereof, or insurance proceeds of any type not
otherwise included above in division (1) of
subparagraph a of this paragrap h,
(4) bonuses, including signing bonuses, lum p-sum
payments or stipends m ade to the member not
otherwise included above in division (1) of
subparagraph a of th is paragraph,
(5) overtime compensation,
(6) payments whether prior to or upon termination of
employment for accumulated unused vacation or
unused annual leave, accumulated unused sick
leave, or accumulated unused paid time off or
other unused leave,
(7) payments made in error to a member,
(8) payments made by the participating municipality
for services rendered by the member, which
services are not part of the member ’s job duties
and responsibilities of his or her job position
with the participating munici pality,
(9) severance pay,
(10) unemployment payments, and
(11) uniform and equipment allowances; and RBS No. 3512
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22. “Actuarial equivalent ” means equality in value of the
aggregate amounts expected to be received based on i nterest rate and
mortality assumptions set by the State Boa rd, in a manner that
precludes employer discretion, and based upon recommendatio ns from
independent professional advisors, and which shall be published
annually in the actuarial report.
SECTION 2. AMENDATORY 11 O.S . 2021, Section 50-109, as
amended by Section 1, Chapter 53, O.S.L. 2023 (11 O.S. Supp. 2023,
Section 50-109), is amended to read as follows:
Section 50-109. Any municipality participating in the Oklahoma
Police Pension and Retirement System shall appropriate funds, for
the use and benefit of the S ystem, as provided in the following
schedule:
1. Prior to July 1, 1991, a minimum of ten percent (10%) of the
actual paid base salary of e ach member of the System employed by the
municipality;
2. Beginning July 1, 1991, a minimum of ten and one-half
percent (10 1/2%) of the actual paid base salary of each member of
the System employed by the municipa lity;
3. Beginning July 1, 1992, a minimum of eleven percent (11%) of
the actual paid base salary of each member of the System em ployed by
the municipality; RBS No. 3512
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4. Beginning July 1, 1993, a minimum of eleven and one -half
percent (11 1/2%) of the actual paid base salary of each member of
the System employed by the municipality;
5. Beginning July 1, 1994, a minimum of tw elve percent (12%) of
the actual paid base salary of each member of the System employed by
the municipality;
6. Beginning July 1, 1995, a min imum of twelve and one -half
percent (12 1/2%) of the actual paid base sal ary of each member of
the System employed by the municipa lity; and
7. Beginning July 1, 1996, a minimum of thirteen percent (13%)
of the actual paid base sa lary of each member of the System employed
by the municipality; and
8. Beginning on the effective date of this a ct, a minimum of
fourteen percent (14%) of the actual paid base salary of each member
of the System employed by the municipality .
The sum appropriated shall be paid online to the System within
ten (10) days following the payroll period on whi ch the contribution
is based.
The state shall make such a ppropriation as is necessary to
assure the retirement benefits provided by the article.
SECTION 3. AMENDATORY 11 O.S. 2021, Section 50 -110, as
amended by Section 2, Chapter 53, O.S.L. 2023 (11 O.S. Supp. 2023,
Section 50-110), is amended to read as follows: RBS No. 3512
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Section 50-110. A. Each member in the Oklahoma Police Pension
and Retirement System prior to the effective date of this act shall
contribute to the System a minimum of eight percent ( 8%) of the
member’s actual paid base salary . On or after the effective d ate of
this act, each member shall contribute to the System a minimum of
nine percent (9%).
At the option of the participating municipality, the
participating municipality may pay all or any part of the member ’s
required contribution. The sums contributed shall be paid online to
the System as provided in this article within ten (10) days
following the payroll period on which the contributions are based.
Amounts deducted from the sala ry of a member and not paid to the
System after thirty (30) days from eac h ending payroll date shall be
subject to a monthly late charge of one and one -half percent (1
1/2%) of the unpaid balance to be paid by the municipality to the
System. All funds received by a participating mu nicipality for
police retirement purposes shall be forwarded to the State Oklahoma
Police Pension and Retirement Board for credit to the Oklahoma
Police Pension and Retirement Fund.
B. Each municipality shall pick up under the p rovisions of
Section 414(h)(2) of the Inter nal Revenue Code of 1986 and p ay the
contribution which the member is required by law to make to the
System for all compensation earned after December 31, 1988.
Although the contribution s so picked up are designated as member RBS No. 3512
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contributions, such contributions shall be treated as contributions
being paid by the municipality in lieu of contr ibutions by the
member in determining tax treatment under the Internal Revenue C ode
of 1986 and such picked up picked-up contributions shall not be
includable in the gros s income of the member until such amount s are
distributed or made available to the member or the beneficiary of
the member. The member, by the terms of this System, shall not have
any option to choose to receive the contributions so picked up
directly and the picked up picked-up contributions must be paid by
the municipality to the System.
Member contributions which are picked up shall be treated in the
same manner and to the same extent as member contributi ons made
prior to the date on which member contri butions were picked up by
the municipality. Member contributions so picked up shall be
included in gross salary for purposes of determining benefits and
contributions under the System.
The municipality shall pay the member contributions fr om the
same source of funds used in payin g salary to the member, by
effecting an equal c ash reduction in gross salary of t he member.
SECTION 4. AMENDATORY 11 O.S. 2021, Section 50 -111.1, is
amended to read as follows:
Section 50-111.1. A. A member who terminates service before
normal retirement date, other than by death or disability , shall,
upon application filed with the State Oklahoma Police Pension and RBS No. 3512
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Retirement Board, be refunded fr om the Oklahoma Police Pension and
Retirement Fund an amount equal to the accumulate d contributions the
member has made to the Fund fund, but excluding any interest or an y
amount contributed by the municipality or state. If a member
withdraws the member ’s accumulated contributions, such member shall
not have any recourse against the System for any type of additional
benefits including, but not limited to, d isability benefits. If a
member has completed ten (10) years of credited service at the date
of termination, the member may elect a vested ben efit in lieu of
receiving the member ’s accumulated contributions.
If the member who has comple ted ten (10) or more years of
credited service elects the vested benefit, the member shall be
entitled to a monthly retirement annuity commencing on the date the
member reaches fifty (50) years of age or the date the member would
have had twenty (20) years of credited servic e had the member’s
employment continued uninterrupted, whichever is later. The annual
amount of such retirement annuity shall be equal to two and one-half
percent (2 1/2%) of the annualized final average salary multiplied
by the number of years of credited service. For a monthly
retirement annuity commencing on or after the effective date of this
act, the annual amoun t of such retirement annuity shall be compu ted
pursuant to the annualized final average salary as defined pursuant
to paragraph 17 of Section 50-101 of this title multiplied by the
number of years of credited service. RBS No. 3512
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If a terminated member has e lected a vested benefit and
subsequently returns to work as a police officer of a pa rticipating
municipality, their his or her vested benefit will be set aside and
prior credited service will be reinstated.
B. If a member who terminates employment and elects a vest ed
benefit dies prior to being eligible to receive benefits, the
member’s beneficiary shall be entitled to the member ’s normal
monthly accrued retirement benefits on the date the deceased member
would have been eligible to receive the benefit.
C. Whenever a member has terminated or hereafter terminates
covered employment and ha s withdrawn or hereafter withdraws the
member’s accumulated contributions and has rejoined or hereafter
rejoins the System, the member, upon proper application and approval
by the Board, may pay to the System the sum of the a ccumulated
contributions the member has withdrawn or hereafter withdraws plus
ten percent (10%) annual interest from the date of withdrawal and
shall receive the same benefits as if the member had neve r withdrawn
the contributions. A lump -sum payment for repayment of any amounts
received because of a member’s prior termination may be rep aid by
trustee-to-trustee transfers of non-Roth funds from a Section 403(b)
annuity, an eligible Section 457(b) plan, and/or a Se ction 401(a)
qualified plan. Those members who at the time of termination of
employment could not withdraw any of their accumulat ed contributions
shall receive credited service for the time employed as an officer RBS No. 3512
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prior to any such termination upon proper application and approval
by the Board. To receive credit for such service , all required
contributions and interest shall be pa id within ninety (90) days o f
Board approval of the application. The provisions of this
subsection shall not apply to any member who is receiving benefits
from the System as of July 1, 1987.
D. If an active member dies and does not leave a surviving
beneficiary under paragraph 13 of Section 50 -101 of this title, the
accumulated contributions made to the System by the mem ber shall be
paid to the member’s estate or, if properly designated by the
member, a trust.
SECTION 5. AMENDATORY 62 O.S. 2021, Section 3103, as
last amended by Section 1, Chapter 306, O.S.L. 2022 (62 O.S. Supp.
2023, Section 3103), is amen ded to read as follows:
Section 3103. As used in the Oklahoma Pension Legislation
Actuarial Analysis Act:
1. “Amendment” means any amendment, including a substitute
bill, made to a retirement bill by any committee of the House of
Representatives or Senate, any conference committee of the House or
Senate or by the House or Senate;
2. “RB number” means that number preceded by the letters “RB”
assigned to a retirement bill by the respective staffs of the
Oklahoma State Senate and the Oklahoma House of Representatives when RBS No. 3512
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the respective staff office prepares a retirement bill for a member
of the Legislature;
3. “Legislative Actuary” means the firm or entity that enters
into a contract with the Legislative Service Bureau pursuant to
Section 452.15 of Title 74 of the Oklahoma Statutes to provide the
actuarial services and other duties provided for in the Oklahoma
Pension Legislation Actuarial Analysis Act;
4. “Nonfiscal amendment” means an amendment to a retirement
bill having a fiscal impact, which amendment does not change any
factor of an actuarial investigation specified in subsection A of
Section 3109 of this title;
5. “Nonfiscal retirement bill” means a retirement bill:
a. which does not affect the cost or funding factors of a
retirement system,
b. which affects such factors only in a manner which does
not:
(1) grant a benefit increase under th e retirement
system affected by the bill,
(2) create an actuarial accrued liability for or
increase the actuarial accrued liability of the
retirement system affected by the bill, or
(3) increase the normal cost of the retirement system
affected by the bill, RBS No. 3512
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c. which authorizes the purchase by an active member of
the retirement system, at the actuarial cost for the
purchase as computed pursuant to the statute in effect
on the effective date of the measure allowing such
purchase, of years of service for purpo ses of reaching
a normal retirement date in the applicable retirement
system, but which cannot be used in order to compute
the number of years of service for purposes of
computing the retirement benefit for the member,
d. which provides for the computation of a service -
connected disability retirement benefit for members of
the Oklahoma Law Enforcement Retirement System
pursuant to Section 2-305 of Title 47 of the Oklahoma
Statutes if the members were unable to complete twenty
(20) years of service as a resu lt of the disability,
e. which requires membership in the defined benefit plan
authorized by Section 901 et seq. of Title 74 of the
Oklahoma Statutes for persons whose first elected or
appointed service occurs on or after November 1, 2018,
if such persons had any prior service in t he Oklahoma
Public Employees Retirement System prior to November
1, 2015,
f. which provides for a one-time increase in retirement
benefits if the increase in retirement benefits is not RBS No. 3512
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a permanent increase in the gross annual reti rement
benefit payable to a member or beneficiary, occurs
only once pursuant to a single statutory authorization
and does not exceed:
(1) the lesser of two percent (2%) of the gross
annual retirement benefit of the member or One
Thousand Dollars ($1,000.00) and requires that
the benefit may only be provided if the funded
ratio of the affected retirement system would not
be less than sixty percent (60%) but not greater
than eighty percent (80%) after the benefit
increase is paid,
(2) the lesser of two percen t (2%) of the gross
annual retirement benefit of the member or One
Thousand Two Hundred Dollars ($1,200.00) and
requires that the benefit may only be provided if
the funded ratio of the affected retirement
system would be greater than eighty percent (80%)
but not greater than one h undred percent (100%)
after the benefit increase is paid,
(3) the lesser of two percent (2%) of the gross
annual retirement benefit of the member or One
Thousand Four Hundred Dollars ($1,400.00) and
requires that the benefit may o nly be provided if RBS No. 3512
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the funded ratio of the affected retirement
system would be greater than one hundred percent
(100%) after the benefit increase is paid, or
(4) the greater of two percent (2%) of the gross
annual retirement benefit of the volunteer
firefighter or One Hundred Dolla rs ($100.00) for
persons who retired from the Oklahoma
Firefighters Pension and Retirement System as
volunteer firefighters and who did not retire
from the Oklahoma Firefighters Pension and
Retirement System as a paid firefighter.
As used in this subparagraph, “funded ratio” means the
figure derived by dividing the actuarial value of
assets of the applicable retirement system by the
actuarial accrued liability of the applicable
retirement system,
g. which modifies the disability pension standard for
police officers who are members of the Oklahoma Police
Pension and Retirement System as provi ded by Section 3
50-115 of this act Title 11 of the Oklahoma Statutes ,
h. which provides a cost-of-living benefit increase
pursuant to the provisions of:
(1) Section 49-143.7 of Title 11 of the Oklahoma
Statutes, RBS No. 3512
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(2) Section 50-136.9 of Title 11 of the Oklahoma
Statutes,
(3) Section 1104K of Title 20 of the Oklahoma
Statutes,
(4) Section 2-305.12 of Title 47 of the Oklahoma
Statutes,
(5) Section 17-116.22 of Title 70 of the O klahoma
Statutes, or
(6) Section 930.11 of Title 74 of the Oklahoma
Statutes, or
i. which modifies the computation of the line-of-duty
disability benefit pursuant to the provisions of this
act this section and Sections 50-101 and 50-115 of
Title 11 of the Oklahoma Statutes,
j. which increases the computation factor used to
calculate the accrued retirement benefit and normal
disability benefit under paragraphs 18 and 19 of
Section 50-101 of Title 11 of the Oklahoma Statutes,
or
k. which increases the municipal contribution, employee
contribution, or both for members of the Oklahoma
Police Pension and Retirement System pursuant to
paragraph 8 of Section 50 -109 of Title 11 of the RBS No. 3512
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Oklahoma Statutes or subsection A of Section 50 -110 of
Title 11 of the Oklahoma Statutes .
A nonfiscal retirement bill shall include any retirement bill th at
has as its sole purpose the appropriation or distribution or
redistribution of monies in some manner to a retirement system for
purposes of reducing the unfunded liability of such syste m or the
earmarking of a portion of the revenue from a tax to a reti rement
system or increasing the percentage of the revenue earmarked from a
tax to a retirement system;
6. “Reduction-in-cost amendment” means an amendment to a
retirement bill having a fisc al impact which reduces the cost of the
bill as such cost is deter mined by the actuarial investigation for
the bill prepared pursuant to Section 3109 of this title;
7. “Retirement bill” means any bill or joint resolution
introduced or any bill or joint resolution amended by a member of
the Oklahoma Legislature which cre ates or amends any law directly
affecting a retirement system. A retirement bill shall not mean a
bill or resolution that impacts the revenue of any state tax in
which a portion of the reve nue generated from such tax is earmarked
for the benefit of a reti rement system;
8. “Retirement bill having a fiscal impact” means any
retirement bill creating or establishing a retirement system and any
other retirement bill other than a nonfiscal reti rement bill; and RBS No. 3512
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9. “Retirement system” means the Teachers’ Retirement System of
Oklahoma, the Oklahoma Public Employees Retirement System, the
Uniform Retirement System for Justices and Judges, the Oklahoma
Firefighters Pension and Retirement System, the O klahoma Police
Pension and Retirement System, the Oklahoma Law Enf orcement
Retirement System, or a retirement system established after January
1, 2006.
SECTION 6. Sections 1 through 4 of this act shall become
effective in accordance with the provisions of Section 58 of Article
V of the Oklahoma Constitution.
SECTION 7. Section 5 of this act shall become effective July 1,
2024.
SECTION 8. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason w hereof this act shall take effect and
be in full force from and after its passage and approval.
COMMITTEE REPORT BY: COMMITTEE ON RETIREMENT AND INSURANCE
February 20, 2024 - DO PASS AS AMENDED BY CS