Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB102 Compare Versions

Version 1 (Old)

Version 2 (New)

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2	2
3		-
4		-	An Act
5		-	ENROLLED SENATE
6		-	BILL NO. 102 By: Garvin, Hamilton, and
7		-	Stephens of the Senate
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	27	+
	28	+	ENGROSSED HOUSE AMENDME NT
	29	+	TO
	30	+	ENGROSSED SENATE BILL NO . 102 By: Garvin and Hamilton of the
	31	+	Senate
8	32
9	33		and
10	34
11		-	Bashore, Sneed, Munson,
12		-	Provenzano, West (Josh),
13		-	Sterling, Schreiber,
14		-	Harris, Moore, Hays, and
15		-	Hefner of the House
16		-
	35	+	Bashore of the House
17	36
18	37
19	38
20	39		An Act relating to the Oklahoma Police Pension and
21		-	Retirement System; amending 62 O.S. 2021, Section
22		-	3103, as last amended by Section 1 of Enrolled House
23		-	Bill No. 4051 of the 2nd Session of the 59th Oklahoma
24		-	Legislature, which relates to the Oklahoma Pension
25		-	Legislation Actuarial Analysis Act; modifyin g term;
26		-	amending 11 O.S. 2021, Sections 50 -101, as amended by
27		-	Section 2, Chapter 306, O.S.L. 2022, 50 -109, as
28		-	amended by Section 1, Chapter 53, O.S.L. 2023, 50 -
29		-	110, as last amended by Section 1 of Enrolled House
30		-	Bill No. 3858 of the 2 nd Session of the 59th Oklahoma
31		-	Legislature, and 50-111.1 (11 O.S. Supp. 2023,
32		-	Sections 50-101 and 50-109), which relate to
	40	+	Retirement System; amending 11 O.S. 2021, Sections
	41	+	50-101, as amended by Section 2, Chapter 306, O.S.L .
	42	+	2022, 50-109, as amended by Section 1, Chapter 53,
	43	+	O.S.L. 2023, 50-110, as amended by Section 2, Chapter
	44	+	53, O.S.L. 2023, and 50-111.1 (11 O.S. Supp. 202 3,
	45	+	Sections 50-101, 50-109, and 50-110), which relate to
33	46		definitions, employee and employer contribut ions, and
34	47		termination of employme nt; modifying definitions;
35	48		increasing minimum employee contribution fo r certain
36	49		members of System; increasing computation of certain
37	50		monthly benefits; providing for effective dates of
38	51		certain increase; increasing employer c ontribution;
39		-	updating statutory language; and providing effective
40		-	dates.
41		-
42		-
43		-
44		-
45		-	SUBJECT: Oklahoma Police Pension and Retirement System
46		-
47		-
48		-	ENR. S. B. NO. 102 Page 2
	52	+	updating statutory l anguage; making language gender
	53	+	neutral; amending 62 O.S. 2021, Section 3103, as last
	54	+	amended by Section 1, Chapter 306, O.S.L. 2022 (62
	55	+	O.S. Supp. 2023, Section 3103), which relates to the
	56	+	Oklahoma Pension Legislation Actu arial Analysis Act;
	57	+	updating statutory language; updating statutory
	58	+	references; modifying definition; p roviding effective
	59	+	dates; and declaring an emergency .
	60	+
	61	+
	62	+
	63	+
	64	+
	65	+
	66	+
	67	+
	68	+	AUTHOR: Add the following House Coauthor s: Sneed, Munson,
	69	+	Provenzano, West (Josh), Sterling, Schreiber, Harris,
	70	+	Moore, Hays, and Hefner
	71	+
	72	+	AMENDMENT NO. 1. Strike the title, enacting clause, and entire bill
	73	+	and insert:
	74	+
	75	+
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	101	+	"An Act relating to the Oklahoma Police Pension and
	102	+	Retirement System; amending 62 O.S. 2021, Se ction
	103	+	3103, as last amended by Section 1, Chapter 306,
	104	+	O.S.L. 2022 (62 O.S. Supp. 2023 , Section 3103), which
	105	+	relates to the Oklahoma Pension Legislation Act uarial
	106	+	Analysis Act; modifying term; amending 11 O.S. 2021,
	107	+	Sections 50-101, as amended by Section 2 , Chapter
	108	+	306, O.S.L. 2022, 50-109, as amended by Section 1,
	109	+	Chapter 53, O.S.L. 2023, 50-110, as amended by
	110	+	Section 2, Chapter 53, O.S.L. 2023, and 50-111.1 (11
	111	+	O.S. Supp. 2023, Sections 50-101, 50-109, and 50-
	112	+	110), which relate to definitions, employee an d
	113	+	employer contributions, and termination of
	114	+	employment; modifyin g definitions; increa sing minimum
	115	+	employee contribution fo r certain members of System;
	116	+	increasing computation of certain monthly benefits;
	117	+	providing for effective dates of certain increase;
	118	+	increasing employer contribution; updating statutory
	119	+	language; and providing effective dates.
	120	+
	121	+
	122	+
	123	+
	124	+
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	126	+
49	127		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
50		-
51	128		SECTION 1. AMENDATORY 62 O.S. 2021, Section 3103 , as
52		-	last amended by Section 1 of Enrolled House Bill No. 4051 of the 2nd
53		-	Session of the 59th Oklahoma Legislature, is amended to read as
54		-	follows:
55		-
	129	+	last amended by Section 1, Chapter 306, O.S.L. 2022 (62 O.S. Supp.
	130	+	2023, Section 3103), is amended to read as follows:
56	131		Section 3103. As used in the Oklahoma Pension Legislation
57	132		Actuarial Analysis Act:
58		-
59	133		1. “Amendment” means any amendment, including a substitute
60	134		bill, made to a retirement bill by any committee of the House or
61	135		Senate, any conference committee of the H ouse or Senate or by the
62	136		House or Senate;
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63	162
64	163		2. “RB number” means that number preceded by the letters “RB”
65	164		assigned to a retirement bill by the respective staffs of the
66	165		Oklahoma State Senate and the Oklahoma House of Representatives when
67	166		the respective staff office prepares a retirement bill for a member
68	167		of the Legislature;
69		-
70	168		3. “Legislative Actuary” means the firm or entity that enters
71	169		into a contract with the Legislative Service Bureau pursuant to
72	170		Section 452.15 of Title 74 of the Oklahoma Statutes to provid e the
73	171		actuarial services and other duties provided for in the Ok lahoma
74	172		Pension Legislation Actuarial Analysis Act;
75		-
76	173		4. “Nonfiscal amendment” means an amendment to a re tirement
77	174		bill having a fiscal impact, which am endment does not change any
78	175		factor of an actuarial investigation specified in subsection A of
79	176		Section 3109 of this title;
80		-
81	177		5. “Nonfiscal retirement bill” means a retirement bill:
82		-
83	178		a. which does not affect the co st or funding factors of a
84	179		retirement system,
85		-
86	180		b. which affects such factors only in a man ner which does
87	181		not:
88		-
89	182		(1) grant a benefit increase under the retir ement
90	183		system affected by the bill,
91		-
92		-	ENR. S. B. NO. 102 Page 3
93		-
94	184		(2) create an actuarial accrued liability for or
95	185		increase the actuarial accrued liability of the
96	186		retirement system affected by the bill, or
97	187
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98	213		(3) increase the normal cost of the retirement system
99	214		affected by the bill,
100		-
101	215		c. which authorizes the purchase by an active member of
102	216		the retirement system, at the actuarial cost for the
103	217		purchase as computed pursuant to the statute in effect
104	218		on the effective date of the meas ure allowing such
105	219		purchase, of years of service for purposes of reaching
106	220		a normal retirement date in the applicable retirement
107	221		system, but which cannot be used in orde r to compute
108	222		the number of years of service fo r purposes of
109	223		computing the retirement bene fit for the member,
110		-
111	224		d. which provides for the computation of a s ervice-
112	225		connected disability retirement benefit for members of
113	226		the Oklahoma Law Enforcement Retirement S ystem
114	227		pursuant to Section 2 -305 of Title 47 of the Oklahoma
115	228		Statutes if the members were unable to complete twenty
116	229		(20) years of service as a result of t he disability,
117		-
118	230		e. which requires membership in the defined benefit plan
119	231		authorized by Section 901 et se q. of Title 74 of the
120	232		Oklahoma Statutes for pe rsons whose first elected or
121	233		appointed service occurs on or after November 1, 2018,
122	234		if such persons had any prior service in the Oklahoma
123	235		Public Employees Retirement System prior to November
124	236		1, 2015,
125	237
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126	263		f. which provides for a one-time increase in retirement
127	264		benefits if the increase in retirement bene fits is not
128	265		a permanent increase in the gross annual retirement
129	266		benefit payable to a member or beneficiary, occurs
130	267		only once pursuant to a single statutory authorizati on
131	268		and does not exceed:
132		-
133	269		(1) the lesser of two percent (2%) of the gross
134	270		annual retirement benefit of the member or One
135		-
136		-	ENR. S. B. NO. 102 Page 4
137	271		Thousand Dollars ($1,000.00) and r equires that
138	272		the benefit may only be provided if the funded
139	273		ratio of the affected retirement system wou ld not
140	274		be less than sixty percent (60%) but no t greater
141	275		than eighty percent (80%) after t he benefit
142	276		increase is paid,
143		-
144	277		(2) the lesser of two percent (2%) of the gross
145	278		annual retirement benefit of the member or One
146	279		Thousand Two Hundred Dollars ($1,200.00) an d
147	280		requires that the benefit may only be provid ed if
148	281		the funded ratio of the affected reti rement
149	282		system would be greater than eighty percent (80%)
150	283		but not greater than one hundred percent (100%)
151	284		after the benefit increase is paid,
152		-
153	285		(3) the lesser of two perc ent (2%) of the gross
154	286		annual retirement benefi t of the member or One
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155	313		Thousand Four Hundre d Dollars ($1,400.00) and
156	314		requires that the benefit may only be provided if
157	315		the funded ratio of the affected retirement
158	316		system would be greater than one hundred percen t
159	317		(100%) after the benefit increase is paid, o r
160		-
161	318		(4) the greater of two percent (2%) of th e gross
162	319		annual retirement benefit of the volunteer
163	320		firefighter or One Hundred Dollars ($100.00) for
164	321		persons who retired from the Oklahoma
165	322		Firefighters Pension and Reti rement System as
166	323		volunteer firefighters and wh o did not retire
167	324		from the Oklahoma Firefigh ters Pension and
168	325		Retirement System as a paid firefighter.
169		-
170	326		As used in this subparagraph, “funded ratio” means the
171	327		figure derived by dividing the actuarial value of
172	328		assets of the applicable retirement system by the
173	329		actuarial accrued liability of the applicab le
174	330		retirement system,
175		-
176	331		g. which modifies the disability pension s tandard for
177	332		police officers who are members of the Oklahoma Police
178		-
179		-	ENR. S. B. NO. 102 Page 5
180		-	Pension and Retirement System as provided by Section
181		-	50-115 of Title 11 of the Oklahoma Statutes ,
182		-
	333	+	Pension and Retirement System as pro vided by Section 3
	334	+	50-115 of this act Title 11 of the Oklahoma Statutes,
183	335		h. which provides a cost-of-living benefit increase
184	336		pursuant to the provisions o f:
185	337
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186	363		(1) Section 49-143.7 of Title 11 of the Oklahoma
187	364		Statutes,
188		-
189	365		(2) Section 50-136.9 of Title 11 of the O klahoma
190	366		Statutes,
191		-
192	367		(3) Section 1104K of Title 2 0 of the Oklahoma
193	368		Statutes,
194		-
195	369		(4) Section 2-305.12 of Title 47 of the Oklahoma
196	370		Statutes,
197		-
198	371		(5) Section 17-116.22 of Title 70 of the Oklahoma
199	372		Statutes, or
200		-
201	373		(6) Section 930.11 of Title 74 of the Oklahoma
202		-	Statutes,
203		-
	374	+	Statutes, or
204	375		i. which modifies the computation of the line -of-duty
205		-	disability benefit pursuant to Sections 50-101 and 50-
206		-	115 of Title 11 of the Oklahoma Statutes, or
207		-
208		-	j. which allows the purchase of military prior service
209		-	credit pursuant to the provisions of this act ,
210		-
211		-	k. which increases the computation f actor used to
	376	+	disability benefit pursuant to the provisions of this
	377	+	act Sections 50-101 and 50-115 of Title 11 of the
	378	+	Oklahoma Statutes,
	379	+	j. which increases the computation factor used to
212	380		calculate the accrued retirem ent benefit and normal
213	381		disability benefit pursuant to Section 50-101 of Title
214	382		11 of the Oklahoma Statutes,
215		-
216		-	l. which increases the municipal contribution, employee
	383	+	k. which increases the municipal contribution, em ployee
217	384		contribution, or both for members of the Oklahoma
218	385		Police Pension and Retirement System pursu ant to
	386	+
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219	412		Sections 50-109 and 50-110 of Title 11 of the Oklahoma
220	413		Statutes, or
221		-
222		-
223		-	ENR. S. B. NO. 102 Page 6
224		-	m. which modifies the computation of a retirement annuity
	414	+	l. which modifies the computation of a retirement annuity
225	415		pursuant to Section 5 0-111.1 of Title 11 of the
226	416		Oklahoma Statutes.
227		-
228	417		A nonfiscal retirement bill shall include any retiremen t bill that
229	418		has as its sole purpose the appropriation or distrib ution or
230	419		redistribution of monies in some manner to a retirement system for
231	420		purposes of reducing the unfunded liability of such system or the
232	421		earmarking of a portion of the revenue from a tax to a retirement
233	422		system or increasing the percentage of the reven ue earmarked from a
234	423		tax to a retirement system;
235		-
236	424		6. “Reduction-in-cost amendment” means an amendment to a
237	425		retirement bill having a fiscal impact which reduces the cost of the
238	426		bill as such cost is determined by the actuarial investigation for
239	427		the bill prepared pursuant to Section 3109 of this title;
240		-
241	428		7. “Retirement bill” means any bill or joint res olution
242	429		introduced or any bill or joint resolution amended by a member of
243	430		the Oklahoma Legislature which creates or amends any law directly
244	431		affecting a retirement system. A retirement bill shall not mean a
245	432		bill or resolution that impacts the revenue of an y state tax in
246	433		which a portion of the revenue generated from such tax is earmarked
247	434		for the benefit of a retirement system;
248	435
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249	461		8. “Retirement bill having a fiscal imp act” means any
250	462		retirement bill creating or establishing a retirement system and any
251	463		other retirement bill other than a nonfiscal retirement bill; and
252		-
253	464		9. “Retirement system” means the Teachers’ Retirement System of
254	465		Oklahoma, the Oklahoma Public Employees R etirement System, the
255	466		Uniform Retirement System for Justices and Judges, the Oklahoma
256	467		Firefighters Pension and Retirement System, the Oklahoma Police
257	468		Pension and Retirement System, the Oklahom a Law Enforcement
258	469		Retirement System, or a retirement system esta blished after January
259	470		1, 2006.
260		-
261	471		SECTION 2. AMENDATORY 11 O.S. 2021, Section 50-101, as
262	472		amended by Section 2, Chapter 306, O.S.L. 2022 (11 O.S. Supp. 202 3,
263	473		Section 50-101), is amended to read as follows:
264		-
265	474		Section 50-101. As used in this article:
266		-
267		-	ENR. S. B. NO. 102 Page 7
268		-
269	475		1. “System” means the Oklahoma Police Pension and Retire ment
270	476		System and all predecessor municipal Police Pension and Retirement
271	477		Systems police pension and retirement systems ;
272		-
273	478		2. “Article” means Article 50 of thi s title;
274		-
275	479		3. “State Board” means the Oklahoma Police Pension and
276	480		Retirement Board;
277		-
278	481		4. “Fund” means the Oklahoma Police Pe nsion and Retirement
279	482		Fund;
280		-
281	483		5. “Officer” means any duly appointed and sworn full -time
282	484		officer of the regular police department of a municipality whos e
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283	511		duties are to preserve the public peace, protect life and property,
284	512		prevent crime, serve warrants, enforc e all laws and municipal
285	513		ordinances of this state, and any political subdivision thereof, and
286	514		who is authorized to bear arms in the ex ecution of such duties;
287		-
288	515		6. “Member” means all eligible officers of a participating
289	516		municipality and any person hired by a participating municipality
290	517		who is undergoing police training to become a permanent police
291	518		officer of the municipality. Effective July 1, 1987, a me mber does
292	519		not include a “leased employee” as defined under Section 414(n)(2)
293	520		of the Internal Revenue Code o f 1986, as amended. Effective July 1,
294	521		1999, any individual who agrees with the participating munic ipality
295	522		that the individual’s services are to be performed as a leased
296	523		employee or an independent contractor shall not be a member
297	524		regardless of any classifi cation as a common law employee by the
298	525		Internal Revenue Service or any other governmental agency, o r any
299	526		court of competent jurisdiction. A member s hall include eligible
300	527		commissioned officers of the Oklahoma State Bureau of Narcotics and
301	528		Dangerous Drugs Control, the Oklahoma State Bureau of Investigation,
302	529		and the Alcoholic Beverage Laws Enforcement Com mission who elect to
303	530		participate in the System pursuant to Section 50-111.5 of this
304	531		title;
305		-
306	532		7. “Normal retirement date ” means the date at which the member
307	533		is eligible to receive the unreduced payments of the member’s
308	534		accrued retirement benefit. Such date shall be the first day of the
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309	561		month coinciding wit h or following the date the member completes
310		-
311		-	ENR. S. B. NO. 102 Page 8
312	562		twenty (20) years of credited service. If the member’s employment
313	563		continues past the normal retirement date of the member, the actual
314	564		retirement date of the mem ber shall be the first day of the m onth
315	565		after the member terminates employment with more than twenty (20)
316	566		years of credited service;
317		-
318	567		8. “Credited service” means the period of service used to
319	568		determine the eligibility for and the amount of benefits payable to
320	569		a member. Credited service shall consist of t he period during which
321	570		the member participated in the System or the predecessor munic ipal
322	571		systems as an active employee in an eligible membership
323	572		classification, plus any service prior to the establishment of the
324	573		predecessor municipal system s which was credited under the
325	574		predecessor municipal systems or credited service granted by the
326	575		State Board;
327		-
328	576		9. “Participating municipality” means a municipality which is
329	577		making contributions to the System on behalf of i ts officers. The
330	578		Oklahoma State Bureau of Narcoti cs and Dangerous Drugs Control, the
331	579		Oklahoma State Bureau of Investigation, and the A lcoholic Beverage
332	580		Laws Enforcement Commission shall be treated in the same manner as a
333	581		participating municipality only re garding those members who elect to
334	582		participate in the System pursuant to Section 50-111.5 of this
335	583		title;
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336	609
337	610		10. “Permanent total disabili ty” means incapacity due to
338	611		accidental injury or occupational disease, to earn any wages in the
339	612		employment for which the member is physically suited and reasonably
340	613		fitted through education, training or experience. Further, the
341	614		member must be declared one hundred percent (100%) impaired as
342	615		defined by the “American Medical Association’s Guides to the
343	616		Evaluation of Permanent I mpairment” American Medical Associa tion
344	617		Guides to the Evaluation of Permanent Impairment on the basis of a
345	618		physical medical examination by a physician licens ed to practice
346	619		medicine in this state, as selected by the State Board;
347		-
348	620		11. “Permanent partial disa bility” means permanent disability
349	621		which is less than permanent total disability as defined in this
350	622		section. The member must be declar ed no greater than nin ety-nine
351	623		percent (99%) impaired as defined by the “American Medical
352	624		Association’s Guides to the Evaluation of Permanent Impairment ”
353	625		American Medical Association Guides to the Evaluation of Permanent
354		-
355		-	ENR. S. B. NO. 102 Page 9
356	626		Impairment on the basis of a physic al medical examination by a
357	627		physician licensed to practice medicine in this state, as selected
358	628		by the State Board;
359		-
360	629		12. “Permanent in-line disability” means when a police officer
361	630		serving in any capacity at a regular police department of a
362	631		participating municipality becomes so p hysically or mentally
363	632		disabled, as determined by an independent medical examiner,
364	633		psychiatrist, or psychologist selected by the State Board, while in,
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365	660		and in consequence of, the performance of authorizing activities
366	661		while on duty as an officer that he or s he is unable to perform the
367	662		required duties of a police officer;
368		-
369	663		13. “Beneficiary” means a member’s surviving spouse or any
370	664		surviving children, incl uding biological and adopted children, at
371	665		the time of the member ’s death. The surviv ing spouse must have b een
372	666		married to the member for the thirty (30) continuous months
373	667		immediately preceding the member ’s death, provided a surviving
374	668		spouse of a member who died while in, and as a consequence of, the
375	669		performance of the member ’s duty for a participating municipal ity,
376	670		shall not be subject to the thirty-month marriage requirement for
377	671		survivor benefits. A surviv ing child of a member shall be a
378	672		beneficiary until reaching eighteen (18) years of age or twenty-two
379	673		(22) years of age if the child is enrolled full time full-time and
380	674		regularly attending a public or private school or any institution of
381	675		higher education. Any child adopted by a member after the member’s
382	676		retirement shall be a beneficiary only if the child is adopted by
383	677		the member for the t hirty (30) continuous months preceding the
384	678		member’s death. Any child who is adopted by a member after the
385	679		member’s retirement and such member dies accidentally or as a
386	680		consequence of the performance of the member’s duty as a police
387	681		officer shall not be su bject to the thirty-month adoption
388	682		requirement. This definition of beneficiary shall be in addition to
389	683		any other requirement set forth in this article;
390	684
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391	710		14. “Executive Director” means the managing officer of the
392	711		System employed by the State Board;
393		-
394	712		15. “Eligible employer” means any municipality with a municipal
395	713		police department;
396		-
397		-
398		-	ENR. S. B. NO. 102 Page 10
399	714		16. “Entry date” means the date as of which an eligible
400	715		employer joins the System. The first entry date pursuant to this
401	716		article shall be January 1, 1981;
402		-
403	717		17. “Final average salary” means the average paid base salary
404	718		of the member for normally scheduled hours over the highest salaried
405	719		thirty (30) consecutive months of the last six ty (60) months of
406	720		credited service. Effective July 1, 2016, the following shall apply
407	721		in computing final average salary:
408		-
409	722		a. only paid base salary on which required contributions
410	723		have been made shall be used in computing a member’s
411	724		final average salary,
412		-
413	725		b. for purposes of determining the normal disability
414	726		benefit only, final average salary shall be based on
415	727		the member’s total service if less than thirty (30)
416	728		months,
417		-
418	729		c. in addition to other applicable limitations, and
419	730		notwithstanding any other provision to t he contrary,
420	731		for plan years beginning on or after July 1, 2002, the
421	732		annual compensation of each “Noneligible Member”
422	733		noneligible member taken into account under the System
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423	760		shall not exceed the Economic Growth and Tax Reli ef
424	761		Reconciliation Act of 2001 (EGTRRA) annual
425	762		compensation limit. The EGTRRA annual compensation
426	763		limit is Two Hundred Thousand Dollars ($200,000.00),
427	764		as adjusted by the Commissioner for increases in the
428	765		cost of living in accordance with Section
429	766		401(a)(17)(B) of the Internal Revenue Code of 1986, as
430	767		amended. The annual compensation limit in effect for
431	768		a calendar year applies to any perio d, not exceeding
432	769		twelve (12) months, over which compensation is
433	770		determined (“determination period ”) beginning in such
434	771		calendar year. If a determination period consists of
435	772		fewer than twelve (12) months, the EGTRRA annual
436	773		compensation limit will be multipli ed by a fraction,
437	774		the numerator of which is the number of months in the
438	775		determination period, and the denominator of whic h is
439	776		twelve (12). For purposes of this section, a
440	777		“Noneligible Member” noneligible member is any member
441		-
442		-	ENR. S. B. NO. 102 Page 11
443	778		who first became a member duri ng a plan year
444	779		commencing on or after July 1, 1996,
445		-
446	780		d. for plan years beginning on or after July 1, 2002, any
447	781		reference in the System to the annual compensation
448	782		limit under Section 401(a)(17) of the Internal Revenue
	783	+
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449	809		Code of 1986, as amended, shall mean the EGTRRA annual
450	810		compensation limit set forth in this provision, and
451		-
452	811		e. effective January 1, 2008, back pay, within the
453	812		meaning of Section 1.415(c) -2(g)(8) of the Income Tax
454	813		Regulations, shall be treated as paid base salary for
455	814		the limitation year to which t he back pay relates to
456	815		the extent the back pay represents wages and
457	816		compensation that would otherwise be included in this
458	817		definition;
459		-
460	818		18. “Accrued retirement benefit ” means, for benefits computed
461	819		prior to the effective date of this act, two and one-half percent (2
462	820		1/2%) of the member’s final average salary multiplied by the
463	821		member’s years of credited service not to exceed t hirty (30) years.
464		-
465	822		For a member who retires on or after the effective date of this
466	823		act, accrued retirement benefit shall mean:
467		-
468	824		a. for members who retire and t erminate employment at
469	825		least one (1) year after the effective date of this
470	826		act, and have at least t wenty-five (25) years of
471	827		credited service, three percent (3%) of the member’s
472	828		final average salary multiplied by the me mber’s years
473	829		of credited service, not to exceed thirty (30) years,
474		-
475	830		b. for members who retire and terminate employment at
476	831		least two (2) years after the effective date of this
477	832		act, and have at least twent y (20) years of credited
	833	+
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478	859		service, three percent (3%) of the member’s final
479	860		average salary multiplied by the member’s years of
480	861		credited service, not to exceed thirty (30) years,
481		-
482	862		c. for members who retire and terminate employment at
483	863		least five (5) years afte r the effective date of this
484	864		act, three percent (3%) of the member’s final average
485		-
486		-	ENR. S. B. NO. 102 Page 12
487	865		salary multiplied by the member’s years of credited
488	866		service, not to exceed thirty (30) years, and
489		-
490	867		d. for members who retire and terminate employment on or
491	868		after the effective date of this act, but do not have
492	869		the minimum years of credited service to qualify for
493	870		the benefit outlined in subparagraphs a and b of this
494	871		paragraph, or retire and terminate employm ent prior to
495	872		the date outlined in subparagraph c of this paragraph,
496	873		two and one-half percent (2 1/2%) of the member’s
497	874		final average salary multiplied by the member ’s years
498	875		of credited service, not to exceed thirty (30) years;
499		-
500	876		19. “Normal disability benefit” means:
501		-
502	877		a. for benefits computed prior to the effective date of
503	878		this act, the greater of:
504		-
505	879		a.
506		-
507	880		(1) two and one-half percent (2 1/2%) of the member ’s
508	881		final average salary multiplied by twenty (20)
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509	908		years, notwithstanding the years of actual
510	909		credited service, or
511		-
512	910		b.
513		-
514	911		(2) two and one-half percent (2 1/2%) of the member ’s
515	912		final average salary multiplied by the years of
516	913		credited service of the member, not to exceed
517	914		thirty (30) years, if the officer has more than
518	915		twenty (20) years of credited service ,
519		-
520	916		b. for benefits computed on or after the effective date
521	917		of this act, the greater of:
522		-
523	918		(1) three percent (3%) of the member’s final average
524	919		salary multiplied by twenty (20) years,
525	920		notwithstanding the years of actual credited
526	921		service, or
527		-
528		-
529		-	ENR. S. B. NO. 102 Page 13
530	922		(2) three percent (3%) of the member’s final average
531	923		salary multiplied by the year s of credited
532	924		service of the member, not to exceed thirty (30)
533	925		years, if the officer has more than twenty (20)
534	926		years of credited service;
535		-
536	927		20. “Limitation year” means the year used in applying the
537	928		limitations of Section 415 of the Internal Revenue Code of 1986, as
538	929		amended, which year shall be the calendar year;
539	930
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540	956		21. “Paid base salary” means, effective July 1, 2016, any
541	957		compensation described in subparagraph a of this paragraph that is
542	958		not described in subparagraph b of this paragraph.
543		-
544	959		a. Paid base salary shall include only:
545		-
546	960		(1) normal compensation paid on a regularly scheduled
547	961		pay period including, but not limited to, re gular
548	962		pay for holidays, paid time off, vacation or
549	963		annual leave, sick leave or compensatory time in
550	964		lieu of overtime, any lump sum payment p aid in
551	965		lieu of a normal wage increase, provided such
552	966		lump sum payment is retroactively applied over
553	967		the prior twelve-month period ending with the
554	968		payment date, compensation for bomb squad pay,
555	969		education pay, incenti ve pay, K-9 pay,
556	970		negotiation pay, shift d ifferential, sniper pay,
557	971		SWAT team pay, emergency response team pay, any
558	972		other special unit pay, and any incremental
559	973		increase in compensation which is not included by
560	974		the employer in a member ’s regular base pay for
561	975		salary increase purposes but is paid by t he
562	976		employer to the membe r for group health benefits
563	977		based on an arrangement with a participating
564	978		municipality that was in place on December 31,
565	979		2015, so long as the arrangement continues
	980	+
	981	+	ENGR. H. A. to ENGR. S. B. NO. 102 Page 20 1
	982	+	2
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	988	+	8
	989	+	9
	990	+	10
	991	+	11
	992	+	12
	993	+	13
	994	+	14
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566	1006		uninterrupted for a member e mployed by a
567	1007		participating municipality o n June 30, 2016, who
568	1008		has not since terminated employment and been
569	1009		rehired by such participating municipality,
570		-
571		-
572		-	ENR. S. B. NO. 102 Page 14
573	1010		(2) any amount of elective salary reduction under
574	1011		Section 125 of the Internal Revenue Code of 1986,
575	1012		as amended, that would have been treated as pa id
576	1013		base salary but for t he salary deferral reduction
577	1014		agreement,
578		-
579	1015		(3) any amount of elective salary reduction not
580	1016		includable in the gross income of the member
581	1017		under Section 132(f)(4) of the Internal Revenue
582	1018		Code of 1986, as amended, that would have been
583	1019		treated as paid base salary but for the salary
584	1020		deferral reduction agreement,
585		-
586	1021		(4) any amount of elective salary reduction under
587	1022		Section 457 of the Internal Revenue Code of 1986,
588	1023		as amended, that would have been treated a s paid
589	1024		base salary but for the salary def erral reduction
590	1025		agreement,
591		-
592	1026		(5) any amount of elective salary reduction under
593	1027		Section 401(k) of the Internal Revenue Code of
594	1028		1986, as amended, that would have been treated as
	1029	+
	1030	+	ENGR. H. A. to ENGR. S. B. NO. 102 Page 21 1
	1031	+	2
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	1037	+	8
	1038	+	9
	1039	+	10
	1040	+	11
	1041	+	12
	1042	+	13
	1043	+	14
	1044	+	15
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	1047	+	18
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	1049	+	20
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	1054	+
595	1055		paid base salary but for the salary defer ral
596	1056		reduction agreement,
597		-
598	1057		(6) any amount of nonelective salary red uction under
599	1058		Section 414(h) of the Internal Revenue Code of
600	1059		1986, as amended,
601		-
602	1060		(7) educational allowances paid to obtain training
603	1061		certification or pursue an advanced degree,
604		-
605	1062		(8) longevity payments made to members based upon a
606	1063		standardized plan which recogni zes length of
607	1064		service to the participating municipality,
608		-
609	1065		(9) paid base salary shall also inc lude base salary,
610	1066		as described in divisions (1) through (8) of this
611	1067		subparagraph, for services, but paid by the later
612	1068		of two and one-half (2 1/2) months after a
613	1069		member’s severance from employment or the end of
614	1070		the calendar year that includes the date the
615		-
616		-	ENR. S. B. NO. 102 Page 15
617	1071		member terminated employment, if it is a payment
618	1072		that, absent a severance from employment, would
619	1073		have been paid to the member while the membe r
620	1074		continued in employmen t with the participating
621	1075		municipality,
622		-
	1076	+	(10) any payments not described in divisions (1)
	1077	+	through (9) of this subparagraph shall not be
	1078	+	considered paid base salary if paid after
	1079	+
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	1089	+	10
	1090	+	11
	1091	+	12
	1092	+	13
	1093	+	14
	1094	+	15
	1095	+	16
	1096	+	17
	1097	+	18
	1098	+	19
	1099	+	20
	1100	+	21
	1101	+	22
	1102	+	23
	1103	+	24
	1104	+
	1105	+	severance from employment, even if they are paid
	1106	+	by the later of two and one -half (2 1/2) months
	1107	+	after the date of severance from employment or
	1108	+	the end of the calendar year that includes the
	1109	+	date of severance from employment, except
	1110	+	payments to an individual who does not currently
	1111	+	perform services for the parti cipating
	1112	+	municipality by reason of qualified military
	1113	+	service within the meaning of Section 414(u)(5)
	1114	+	of the Internal Revenue Code of 1986, as amended,
	1115	+	to the extent these payments do not exceed the
	1116	+	amounts the individual would have received if the
	1117	+	individual had continued to per form services for
	1118	+	the participating municipality rather than
	1119	+	entering qualified military ser vice,
	1120	+	(11) back pay, within the meaning of Section 1.415(c)-
	1121	+	2(g)(8) of the Income Tax Regulations, shall be
	1122	+	treated as paid base salary for the limitation
	1123	+	year to which the back pay relates to the extent
	1124	+	the back pay represents wages and compensation
	1125	+	that would otherwise be included in this
	1126	+	definition, and
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	1153	+	(12) paid base salary shall also include differ ential
	1154	+	wage payments under Section 414(u) (12) of the
	1155	+	Internal Revenue Code of 1986, as amended.
	1156	+	b. Notwithstanding anything to the contrary in this
	1157	+	section, paid base salary shall not include any:
	1158	+	(1) fringe benefits, reimbursements, or increases in
	1159	+	compensation due to reimbursements to the exten t
	1160	+	not specifically inclu ded above in subparagraph a
	1161	+	of this paragraph,
	1162	+	(2) incremental increase in compensation whic h is not
	1163	+	included by the employer in a member’s regular
	1164	+	base pay for salary increase purposes but i s paid
	1165	+	by the employer to the member for group health
	1166	+	benefits not otherwise included above in division
	1167	+	(1) of subparagraph a of this paragraph,
	1168	+	(3) insurance benefits, including any reimbursements
	1169	+	thereof, or insurance proceeds of any type not
	1170	+	otherwise included above in division (1) of
	1171	+	subparagraph a of this paragraph ,
	1172	+	(4) bonuses, including signing bonuses, lump -sum
	1173	+	payments or stipends made to the member n ot
	1174	+	otherwise included above in division (1) of
	1175	+	subparagraph a of this paragraph,
	1176	+	(5) overtime compensation,
	1177	+
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	1202	+
	1203	+	(6) payments whether prior to or upon termination of
	1204	+	employment for accumulated unused vacation or
	1205	+	unused annual leave, accumulated unused sick
	1206	+	leave, or accumulated unused paid time off or
	1207	+	other unused leave,
	1208	+	(7) payments made in error to a membe r,
	1209	+	(8) payments made by the participating municipality
	1210	+	for services rendered by the member, which
	1211	+	services are not part of the member ’s job duties
	1212	+	and responsibilities of his or her job position
	1213	+	with the participating municipality,
	1214	+	(9) severance pay,
	1215	+	(10) unemployment payments, and
	1216	+	(11) uniform and equipment allowances; and
	1217	+	22. “Actuarial equivalent” means equality in value of the
	1218	+	aggregate amounts expected t o be received based on interest rate and
	1219	+	mortality assumptions set by the State Board, in a manner that
	1220	+	precludes employer discretion, and b ased upon recommendation s from
	1221	+	independent professional advisors, and which shall be published
	1222	+	annually in the actua rial report.
	1223	+	SECTION 3. AMENDATORY 11 O.S. 2021, Section 50 -109, as
	1224	+	amended by Section 1, Chapter 53, O.S.L. 2023 (11 O.S. Supp. 2023,
	1225	+	Section 50-109), is amended to read as follows:
	1226	+
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	1252	+	Section 50-109. Any municipality participating in the Oklahoma
	1253	+	Police Pension and Retirement System shall appropriate funds, for
	1254	+	the use and benefit of the System, as provided in the fol lowing
	1255	+	schedule:
	1256	+	1. Prior to July 1, 1991, a minimum of ten percent (10%) of the
	1257	+	actual paid base salary of each me mber of the System employed by the
	1258	+	municipality;
	1259	+	2. Beginning July 1, 1991, a minimum of ten and o ne-half
	1260	+	percent (10 1/2%) of the actual p aid base salary of each member of
	1261	+	the System employed by the municipality;
	1262	+	3. Beginning July 1, 1992, a minimum of eleven percent (11%) of
	1263	+	the actual paid base salary of each member of the System employed by
	1264	+	the municipality;
	1265	+	4. Beginning July 1, 1993, a minimum of eleven and o ne-half
	1266	+	percent (11 1/2%) of the actual paid base salary of each member of
	1267	+	the System employed by the municipality;
	1268	+	5. Beginning July 1, 1994, a minimum of twelve percent (12%) of
	1269	+	the actual paid base salary of each member of the S ystem employed by
	1270	+	the municipality;
	1271	+	6. Beginning July 1, 1995, a minimum of twelve and one -half
	1272	+	percent (12 1/2%) of the actual paid base salary of each member of
	1273	+	the System employed by the municipality; and
	1274	+
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	1300	+	7. Beginning July 1, 1996, a minimum of thirte en percent (13%)
	1301	+	of the actual paid base salary of each member of the System employed
	1302	+	by the municipality; and
	1303	+	8. Beginning on the effective date of this act, a minimum of
	1304	+	fourteen percent (14%) of the actual paid base salary of each member
	1305	+	of the System employed by the municipa lity.
	1306	+	The sum appropriated shall be paid online to the System within
	1307	+	ten (10) days following the payroll period on which the contribution
	1308	+	is based.
	1309	+	The state shall make such appropriation as is necessary to
	1310	+	assure the retirement ben efits provided by the ar ticle.
	1311	+	SECTION 4. AMENDATORY 11 O.S. 2021, Section 50 -110, as
	1312	+	amended by Section 2, Chapter 53, O.S.L. 2023 (11 O.S. Supp. 2023,
	1313	+	Section 50-110), is amended to read as follows:
	1314	+	Section 50-110. A. Each member in the Oklahoma Police Pension
	1315	+	and Retirement System prior to the effective date of this act shall
	1316	+	contribute to the System a minimum of eight percent (8%) of the
	1317	+	member’s actual paid base salary . On or after the effective date of
	1318	+	this act, each membe r shall contribute to th e System a minimum of
	1319	+	nine percent (9%).
	1320	+	At the option of the participating municipality, th e
	1321	+	participating municipality may pay all or any part of the member’s
	1322	+	required contribution. The su ms contributed shall be paid online to
	1323	+	the System as provided in this article within ten (10) days
	1324	+
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	1350	+	following the payroll period on which the contributions ar e based.
	1351	+	Amounts deducted from the salary of a member and not paid to the
	1352	+	System after thirty (30) days from each ending payroll date shall be
	1353	+	subject to a monthly late charge of one and one-half percent (1
	1354	+	1/2%) of the unpaid balance to be paid by the mu nicipality to the
	1355	+	System. All funds received by a participating municipality for
	1356	+	police retirement purposes shall be forwarded to the State Oklahoma
	1357	+	Police Pension and Retirement Board for credit to the Oklahoma
	1358	+	Police Pension and Retirement Fund.
	1359	+	B. Each municipality shall pick up under the provisions of
	1360	+	Section 414(h)(2) of the Internal Revenue Code of 1986 and pay the
	1361	+	contribution which t he member is required by law to make to the
	1362	+	System for all compensation earned after December 31, 1988.
	1363	+	Although the contributions so picked up are designated as member
	1364	+	contributions, such contributions shall be tr eated as contributions
	1365	+	being paid by the municipality in lieu of contributions by the
	1366	+	member in determining tax treatment under the Internal Revenue Code
	1367	+	of 1986 and such picked up picked-up contributions shall not be
	1368	+	includable in the gross income of the member until such amounts are
	1369	+	distributed or made available to th e member or the beneficiary of
	1370	+	the member. The member, by the terms of this System, shall n ot have
	1371	+	any option to choose to receive the contributions so picked up
	1372	+	directly and the picked up picked-up contributions must be paid by
	1373	+	the municipality to the Sy stem.
	1374	+
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	1400	+	Member contributions which are picked up shall be treated in the
	1401	+	same manner and to th e same extent as member contributions made
	1402	+	prior to the date on which member contributions were pic ked up by
	1403	+	the municipality. Member contr ibutions so picked up sh all be
	1404	+	included in gross salary for purposes of determining benefits and
	1405	+	contributions under the System.
	1406	+	The municipality shall pay the member contributions from the
	1407	+	same source of funds used in paying salary to the member, by
	1408	+	effecting an equal cash reduc tion in gross salary of the member.
	1409	+	SECTION 5. AMENDATORY 11 O.S. 2021, Section 50-111.1, is
	1410	+	amended to read as follows:
	1411	+	Section 50-111.1. A. A member who terminat es service before
	1412	+	normal retirement date, other than by death or disability, shall,
	1413	+	upon application filed with the State Oklahoma Police Pension and
	1414	+	Retirement Board, be refunded from the Oklahoma Police Pension and
	1415	+	Retirement Fund an amount equal to the accumulated contributions the
	1416	+	member has made to the Fund fund, but excluding any interest or any
	1417	+	amount contributed by the municipality or state. If a memb er
	1418	+	withdraws the member’s accumulated contributions, such member shall
	1419	+	not have any recourse agains t the System for any type of additional
	1420	+	benefits including, but n ot limited to, disability benefits. If a
	1421	+	member has completed ten (10) years of credited se rvice at the date
	1422	+	of termination, the member may elect a vested benefit in lieu of
	1423	+	receiving the member’s accumulated contributions.
	1424	+
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	1450	+	If the member who has completed ten (10) or more years of
	1451	+	credited service elects the vested benefit, the member shall be
	1452	+	entitled to a monthly retirement annuity commencing on the date the
	1453	+	member reaches fifty (50) years of age or the date the member would
	1454	+	have had twenty (20) years of credited service had the member’s
	1455	+	employment continued uninterrupted, whichever is later. The annual
	1456	+	amount of such retirement annuity shall be equal to two and one-half
	1457	+	percent (2 1/2%) of the annualized final average salary mult iplied
	1458	+	by the number of years of credited service. For a monthly
	1459	+	retirement annuity commencing on or after the effe ctive date of this
	1460	+	act, the annual amount of such retirement annuity shall be computed
	1461	+	pursuant to the annualized final average salary as de fined pursuant
	1462	+	to paragraph 17 of Section 50-101 of this title multiplied by the
	1463	+	number of years of credited service .
	1464	+	If a terminated member has elected a vested benefit and
	1465	+	subsequently returns to work as a police officer of a participating
	1466	+	municipality, their his or her vested benefit will be set aside and
	1467	+	prior credited service will be reinstated.
	1468	+	B. If a member who terminates employment and elects a vested
	1469	+	benefit dies prior to being eligible to receive benefits , the
	1470	+	member’s beneficiary shall be entit led to the member’s normal
	1471	+	monthly accrued retirement benefits on the date the deceased member
	1472	+	would have been eligi ble to receive the benefit.
	1473	+
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	1498	+
	1499	+	C. Whenever a member has terminated or hereafter terminates
	1500	+	covered employment and has withdrawn or hereafter w ithdraws the
	1501	+	member’s accumulated contributions and has rejoined or hereafter
	1502	+	rejoins the System, the member, upon p roper application and approval
	1503	+	by the Board, may pay to the System the sum of the accumulated
	1504	+	contributions the member has withdrawn or here after withdraws plus
	1505	+	ten percent (10%) annual interest from the date of withdrawal and
	1506	+	shall receive the same benefi ts as if the member had never withdrawn
	1507	+	the contributions. A lump-sum payment for repayment of any amounts
	1508	+	received because of a member ’s prior termination may be repaid by
	1509	+	trustee-to-trustee transfers of non -Roth funds from a Section 403(b)
	1510	+	annuity, an eligible Section 457(b) plan, and/or a Section 401(a)
	1511	+	qualified plan. Those members who at the time of termination of
	1512	+	employment could not w ithdraw any of their acc umulated contributions
	1513	+	shall receive credited service for the time employed as an officer
	1514	+	prior to any such termination upon proper application and approval
	1515	+	by the Board. To receive credit f or such service, all required
	1516	+	contributions and interest shall be paid within ninety (90) days of
	1517	+	Board approval of the application. The provisions of this
	1518	+	subsection shall not apply to any member who is receiving benefits
	1519	+	from the System as of July 1, 19 87.
	1520	+	D. If an active member dies and does not leave a surviving
	1521	+	beneficiary under paragraph 13 of Section 50-101 of this title, the
	1522	+	accumulated contributions made to the System by the member shall be
	1523	+
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	1548	+
	1549	+	paid to the member’s estate or, if properly designated b y the
	1550	+	member, a trust.
	1551	+	SECTION 6. Section 1 of this act shall become eff ective June 1,
	1552	+	2025.
	1553	+	SECTION 7. Sections 2 through 5 of this act shall become
	1554	+	effective July 1, 2025."
	1555	+	Passed the House of Representatives the 15th day of April, 2024.
	1556	+
	1557	+
	1558	+
	1559	+
	1560	+
	1561	+	Presiding Officer of the House of
	1562	+	Representatives
	1563	+
	1564	+
	1565	+	Passed the Senate the ____ day of _______ ___, 2024.
	1566	+
	1567	+
	1568	+
	1569	+
	1570	+
	1571	+	Presiding Officer of the Senate
	1572	+	RBS No. 3512
	1573	+
	1574	+	ENGR. S. B. NO. 102 Page 1 1
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	1598	+
	1599	+	ENGROSSED SENATE
	1600	+	BILL NO. 102 By: Garvin and Hamilton of the
	1601	+	Senate
	1602	+
	1603	+	and
	1604	+
	1605	+	Bashore of the House
	1606	+
	1607	+
	1608	+
	1609	+	An Act relating to the Oklahoma Police Pension and
	1610	+	Retirement System; amending 11 O.S. 2021, Sections
	1611	+	50-101, as amended by Section 2, Chapter 306, O.S.L .
	1612	+	2022, 50-109, as amended by Section 1, Chapter 53,
	1613	+	O.S.L. 2023, 50-110, as amended by Section 2, Chapter
	1614	+	53, O.S.L. 2023, and 50-111.1 (11 O.S. Supp. 202 3,
	1615	+	Sections 50-101, 50-109, and 50-110), which relate to
	1616	+	definitions, employee and employer contribut ions, and
	1617	+	termination of employment; modifying definitions;
	1618	+	increasing minimum employee contribution for certain
	1619	+	members of System; increasing computation of certain
	1620	+	monthly benefits; providing for effective dates of
	1621	+	certain increase; increasing employer c ontribution;
	1622	+	updating statutory language; making language gender
	1623	+	neutral; amending 62 O.S. 2021, Section 3103, as last
	1624	+	amended by Section 1, Chapter 306, O.S.L. 2022 (62
	1625	+	O.S. Supp. 2023, Section 3103), which relates to the
	1626	+	Oklahoma Pension Legislation Actu arial Analysis Act;
	1627	+	updating statutory language; updating statutory
	1628	+	references; modifying definition; providing effective
	1629	+	dates; and declaring an emergency .
	1630	+
	1631	+
	1632	+
	1633	+
	1634	+
	1635	+	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
	1636	+	SECTION 8. AMENDATORY 11 O.S. 2021, Section 50 -101, as
	1637	+	amended by Section 2, Chapter 306, O.S.L. 2022 (11 O.S. Supp. 2023,
	1638	+	Section 50-101), is amended to read as follows:
	1639	+	Section 50-101. As used in this article: RBS No. 3512
	1640	+
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	1665	+
	1666	+	1. “System” means the Oklahoma Police Pension and Retire ment
	1667	+	System and all predecessor municipal Police Pension and Retirement
	1668	+	Systems police pension and retirement systems ;
	1669	+	2. “Article” means Article 50 of thi s title;
	1670	+	3. “State Board” means the Oklahoma Police Pension and
	1671	+	Retirement Board;
	1672	+	4. “Fund” means the Oklahoma Police Pension and Retirement
	1673	+	Fund;
	1674	+	5. “Officer” means any duly appointed and sworn full-time
	1675	+	officer of the regular police department of a municipality whose
	1676	+	duties are to preserve the public peace, protect life and property,
	1677	+	prevent crime, serve warrants, enforce all laws and municipal
	1678	+	ordinances of this state, and any politi cal subdivision thereof, and
	1679	+	who is authorized to bear arms in the ex ecution of such duties;
	1680	+	6. “Member” means all eligible officers of a participating
	1681	+	municipality and any person hired by a participating municipality
	1682	+	who is undergoing police training to become a permanent police
	1683	+	officer of the municipality. Effective July 1, 1987, a member does
	1684	+	not include a “leased employee” as defined under Section 414(n)(2)
	1685	+	of the Internal Revenue Code of 1986, as amended. Effective July 1,
	1686	+	1999, any individual who a grees with the participating municipality
	1687	+	that the individual’s services are to be performed as a leased
	1688	+	employee or an independent contractor shall not be a member
	1689	+	regardless of any classification as a common law employee by the RBS No. 3512
	1690	+
	1691	+	ENGR. S. B. NO. 102 Page 3 1
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	1715	+
	1716	+	Internal Revenue Service o r any other governmental agency, or any
	1717	+	court of competent jurisdiction. A member shall include eligible
	1718	+	commissioned officers of the Oklahoma State Bureau of Narcotics and
	1719	+	Dangerous Drugs Control, the Oklahoma State Bureau of Investigation,
	1720	+	and the Alcoholic Beverage Laws Enforcement Commission who elect to
	1721	+	participate in the System pursuant to Section 50 -111.5 of this
	1722	+	title;
	1723	+	7. “Normal retirement date ” means the date at which the member
	1724	+	is eligible to receive the unreduced payments of the member ’s
	1725	+	accrued retirement benefit. Such date shall be the first day of the
	1726	+	month coinciding with or following the date the member completes
	1727	+	twenty (20) years of credited service. If the member’s employment
	1728	+	continues past the normal retirement date of the member, the actual
	1729	+	retirement date of the member shall be the first day of the m onth
	1730	+	after the member terminates employment with more than twenty (20)
	1731	+	years of credited service;
	1732	+	8. “Credited service” means the period of service used to
	1733	+	determine the eligibility for and the amount of benefits payable to
	1734	+	a member. Credited service shall consist of the period during which
	1735	+	the member participated in the System or the predecessor munic ipal
	1736	+	systems as an active employee in an eligible membership
	1737	+	classification, plus any s ervice prior to the establishment of the
	1738	+	predecessor municipal system s which was credited under the RBS No. 3512
	1739	+
	1740	+	ENGR. S. B. NO. 102 Page 4 1
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	1764	+
	1765	+	predecessor municipal systems or credited service granted by the
	1766	+	State Board;
	1767	+	9. “Participating municipality ” means a municipality which is
	1768	+	making contributions to the System on behalf of its officers. The
	1769	+	Oklahoma State Bureau of Narcotics and Dangerous Drugs Control, the
	1770	+	Oklahoma State Bureau of Investigation, and the A lcoholic Beverage
	1771	+	Laws Enforcement Commission shall be treated in the same manner as a
	1772	+	participating municipality only regarding those members who elect to
	1773	+	participate in the System pursuant to Section 50 -111.5 of this
	1774	+	title;
	1775	+	10. “Permanent total disabili ty” means incapacity due to
	1776	+	accidental injury or occupational disease , to earn any wages in the
	1777	+	employment for which the member is physically suited and reasonably
	1778	+	fitted through education, training or experience. Further, the
	1779	+	member must be declared one hundred percent (100%) impaired as
	1780	+	defined by the “American Medical Association ’s Guides to the
	1781	+	Evaluation of Permanent Impairment ” American Medical Associa tion
	1782	+	Guides to the Evaluation of Permanent Impairment on the basis of a
	1783	+	physical medical examination by a physician licensed to practice
	1784	+	medicine in this state, as selected by the State B oard;
	1785	+	11. “Permanent partial disability ” means permanent disability
	1786	+	which is less than permanent total disability as defined in this
	1787	+	section. The member must be declar ed no greater than ninety -nine
	1788	+	percent (99%) impaired as defined by the “American Medical RBS No. 3512
	1789	+
	1790	+	ENGR. S. B. NO. 102 Page 5 1
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	1814	+
	1815	+	Association’s Guides to the Evaluation of Permanent Impairment ”
	1816	+	American Medical Association Guides to the Evaluation of Permanent
	1817	+	Impairment on the basis of a physic al medical examination by a
	1818	+	physician licensed to practice medicine in this state, as s elected
	1819	+	by the State Board;
	1820	+	12. “Permanent in-line disability” means when a police officer
	1821	+	serving in any capacity at a regular police department of a
	1822	+	participating municipality becomes so physically or mentally
	1823	+	disabled, as determined by an independent m edical examiner,
	1824	+	psychiatrist, or psychologist selected by the State Board, while in,
	1825	+	and in consequence of, the performance of authorizing activities
	1826	+	while on duty as an officer that he or she is unable to perform the
	1827	+	required duties of a police officer;
	1828	+	13. “Beneficiary” means a member’s surviving spouse or any
	1829	+	surviving children, including biological and adopted children, at
	1830	+	the time of the member ’s death. The surviv ing spouse must have been
	1831	+	married to the member for the thirty (30) continuous months
	1832	+	immediately preceding the member ’s death, provided a surviving
	1833	+	spouse of a member who died while in, and as a consequence of, the
	1834	+	performance of the member ’s duty for a participating municipality,
	1835	+	shall not be subject to the thirty -month marriage requiremen t for
	1836	+	survivor benefits. A surviving child of a member shall be a
	1837	+	beneficiary until reaching eighteen (18) years of age or twenty -two
	1838	+	(22) years of age if the child is enrolled full time full-time and RBS No. 3512
	1839	+
	1840	+	ENGR. S. B. NO. 102 Page 6 1
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	1864	+
	1865	+	regularly attending a public or private school or any institution of
	1866	+	higher education. Any child adopted by a member after the member’s
	1867	+	retirement shall be a beneficiary only if the child is adopted by
	1868	+	the member for the t hirty (30) continuous months preceding the
	1869	+	member’s death. Any child who is adopted by a member after the
	1870	+	member’s retirement and such member dies accidentally or as a
	1871	+	consequence of the performance of the member ’s duty as a police
	1872	+	officer shall not be su bject to the thirty-month adoption
	1873	+	requirement. This definition of beneficiary shall b e in addition to
	1874	+	any other requirement set forth in this article;
	1875	+	14. “Executive Director” means the managing officer of the
	1876	+	System employed by the State Board;
	1877	+	15. “Eligible employer” means any municipality with a municipal
	1878	+	police department;
	1879	+	16. “Entry date” means the date as of which an eligible
	1880	+	employer joins the System. The first entry date pursuant to this
	1881	+	article shall be January 1, 1981;
	1882	+	17. “Final average salary” means the average paid base salary
	1883	+	of the member for normally scheduled hours ove r the highest salaried
	1884	+	thirty (30) consecutive months of the last six ty (60) months of
	1885	+	credited service. Effective July 1, 2016, the following shall apply
	1886	+	in computing final average salary: RBS No. 3512
	1887	+
	1888	+	ENGR. S. B. NO. 102 Page 7 1
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	1911	+	24
	1912	+
	1913	+	a. only paid base salary on which required contributions
	1914	+	have been made shall be used in computing a member ’s
	1915	+	final average salary,
	1916	+	b. for purposes of determining the normal disability
	1917	+	benefit only, final average salary shall be based on
	1918	+	the member’s total service if less than thirty (30)
	1919	+	months,
	1920	+	c. in addition to other applicable limitations, and
	1921	+	notwithstanding any other provision to t he contrary,
	1922	+	for plan years beginning on or after July 1, 2002, the
	1923	+	annual compensation of each “Noneligible Member”
	1924	+	noneligible member taken into account under the System
	1925	+	shall not exceed the Economic Growth and Tax Relief
	1926	+	Reconciliation Act of 2001 (EGTRRA) annual
	1927	+	compensation limit. The EGTRRA annual compensation
	1928	+	limit is Two Hundred Thousand Dollars ($200,000.00),
	1929	+	as adjusted by the Commissioner for increases in the
	1930	+	cost of living in accordance with Section
	1931	+	401(a)(17)(B) of the Internal Revenue Code of 1986, as
	1932	+	amended. The annual compensation limit in effect for
	1933	+	a calendar year applies to any perio d, not exceeding
	1934	+	twelve (12) months, over which compensation is
	1935	+	determined (“determination period”) beginning in such
	1936	+	calendar year. If a determination period consists of RBS No. 3512
	1937	+
	1938	+	ENGR. S. B. NO. 102 Page 8 1
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	1962	+
	1963	+	fewer than twelve (12) months, the EGTRRA annual
	1964	+	compensation limit will be multipli ed by a fraction,
	1965	+	the numerator of which is the number of months in the
	1966	+	determination period, and the denominator of which is
	1967	+	twelve (12). For purposes of this section, a
	1968	+	“Noneligible Member” noneligible member is any member
	1969	+	who first became a member duri ng a plan year
	1970	+	commencing on or after July 1, 1996,
	1971	+	d. for plan years beginning on or a fter July 1, 2002, any
	1972	+	reference in the System to the annual compensation
	1973	+	limit under Section 401(a)(17) of the Internal Revenue
	1974	+	Code of 1986, as amended, shall mean the EGTRRA annual
	1975	+	compensation limit set forth in this provision, and
	1976	+	e. effective January 1, 2008, back pay, within the
	1977	+	meaning of Section 1.415(c) -2(g)(8) of the Income Tax
	1978	+	Regulations, shall be treated as paid base salary for
	1979	+	the limitation year to which t he back pay relates to
	1980	+	the extent the back pay represents wages and
	1981	+	compensation that would otherwise be included in this
	1982	+	definition;
	1983	+	18. “Accrued retirement benefit ” means, for benefits computed
	1984	+	prior to the effective date of this act, two and one-half percent (2
	1985	+	1/2%) of the member’s final average salary multiplied by the
	1986	+	member’s years of credited service not to exceed thirty (30) years . RBS No. 3512
	1987	+
	1988	+	ENGR. S. B. NO. 102 Page 9 1
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	2011	+	24
	2012	+
	2013	+	For a member who retires on or after the effective date of this
	2014	+	act, accrued retirement benefit shall mean:
	2015	+	a. for members who retire and terminate employment at
	2016	+	least one year after the effective date of this act,
	2017	+	and have at least twenty -five (25) years of credited
	2018	+	service, two and three -quarters percent (2.75%) of the
	2019	+	member’s final average salary multiplied by the
	2020	+	member’s years of credited service, not to exceed
	2021	+	thirty (30) years,
	2022	+	b. for members who retire and terminate employment at
	2023	+	least two (2) years after the effec tive date of this
	2024	+	act, and have at least twenty (20) years of credited
	2025	+	service, two and three -quarters percent (2.75%) of the
	2026	+	member’s final average salary multiplied by the
	2027	+	member’s years of credited service, not to exceed
	2028	+	thirty (30) years,
	2029	+	c. for members who retire and terminate employment at
	2030	+	least five (5) years after the effective date of this
	2031	+	act, two and three-quarters percent (2.75%) of the
	2032	+	member’s final average salary multiplied by the
	2033	+	member’s years of credited service, not to exceed
	2034	+	thirty (30) years, and
	2035	+	d. for members who retire and terminate employment on or
	2036	+	after the effective date of this act, but do not have RBS No. 3512
	2037	+
	2038	+	ENGR. S. B. NO. 102 Page 10 1
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	2062	+
	2063	+	the minimum years of credited service to qualify for
	2064	+	the benefit outlined in subparagraphs a and b of this
	2065	+	paragraph, or retire and terminate employment prior to
	2066	+	the date outlined in subparagraph c of this paragraph,
	2067	+	two and one-half percent (2.5%) of the member ’s final
	2068	+	average salary multiplied by the member ’s years of
	2069	+	credited service, not to exceed thirty (30) years ;
	2070	+	19. “Normal disability benefit” means:
	2071	+	a. for benefits computed prior to the effective date of
	2072	+	this act, the greater of:
	2073	+	a. (1) two and one-half percent (2 1/2%) of the
	2074	+	member’s final average salary mult iplied by
	2075	+	twenty (20) years, notwithstanding the years of
	2076	+	actual credited service, or
	2077	+	b. (2) two and one-half percent (2 1/2%) of the
	2078	+	member’s final average salary multi plied by the
	2079	+	years of credited service of the member, not to
	2080	+	exceed thirty (30) years, if the officer has more
	2081	+	than twenty (20) years of credited service ,
	2082	+	b. for benefits computed on or after the effective date
	2083	+	of this act, the greater of:
	2084	+	(1) two and three-quarters percent (2.75%) of the
	2085	+	member’s final average salary multiplied by RBS No. 3512
	2086	+
	2087	+	ENGR. S. B. NO. 102 Page 11 1
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	2111	+
	2112	+	twenty (20) years, notwithstanding the years of
	2113	+	actual credited service, or
	2114	+	(2) two and three-quarters percent (2.75%) of the
	2115	+	member’s final average salary multiplied by the
	2116	+	years of credited service of the member, not to
	2117	+	exceed thirty (30) years, if the officer ha s more
	2118	+	than twenty (20) years of credited service ;
	2119	+	20. “Limitation year” means the year used in applying the
	2120	+	limitations of Section 415 of the Internal Revenue Code of 1986, as
	2121	+	amended, which year shall be the calendar year;
	2122	+	21. “Paid base salary” means, effective July 1, 2016, any
	2123	+	compensation described in subparagraph a of this paragraph that is
	2124	+	not described in subparagraph b of this paragraph.
	2125	+	a. Paid base salary shall include only:
	2126	+	(1) normal compensation paid on a regularly scheduled
	2127	+	pay period including, but not limited to, regular
	2128	+	pay for holidays, paid time off, v acation or
	2129	+	annual leave, sick leave or compensatory time in
	2130	+	lieu of overtime, any lump sum payment p aid in
	2131	+	lieu of a normal wage increase, provided such
	2132	+	lump sum payment is retroactively applied over
	2133	+	the prior twelve-month period ending with the
	2134	+	payment date, compensation for bomb squad pay,
	2135	+	education pay, incentive pay, K -9 pay, RBS No. 3512
	2136	+
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	2160	+	24
	2161	+
	2162	+	negotiation pay, shift d ifferential, sniper pay,
	2163	+	SWAT team pay, emergency response team pay, any
	2164	+	other special unit pay, and any incremental
	2165	+	increase in compensation which is not i ncluded by
	2166	+	the employer in a member ’s regular base pay for
	2167	+	salary increase purposes but is paid by t he
	2168	+	employer to the member for group health benefits
	2169	+	based on an arrangement with a part icipating
	2170	+	municipality that was in place on December 31,
	2171	+	2015, so long as the arrangement continues
	2172	+	uninterrupted for a member employed by a
	2173	+	participating municipality o n June 30, 2016, who
	2174	+	has not since terminated employment and been
	2175	+	rehired by such parti cipating municipality,
	2176	+	(2) any amount of elective salary reduction un der
	2177	+	Section 125 of the Internal Revenue Code of 1986,
	2178	+	as amended, that would have been treated as pa id
	2179	+	base salary but for the salary deferral reduction
	2180	+	agreement,
	2181	+	(3) any amount of elective salary reduction not
	2182	+	includable in the gross income of the member
	2183	+	under Section 132(f)(4) of the Internal Revenue
	2184	+	Code of 1986, as amended, that would have been RBS No. 3512
	2185	+
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	2192	+	7
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	2202	+	17
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	2209	+	24
	2210	+
	2211	+	treated as paid base salary but for the salary
	2212	+	deferral reduction agreement,
	2213	+	(4) any amount of elective salary reduction under
	2214	+	Section 457 of the Internal Reven ue Code of 1986,
	2215	+	as amended, that would have been treated as paid
	2216	+	base salary but for the salary def erral reduction
	2217	+	agreement,
	2218	+	(5) any amount of elective salary reduction under
	2219	+	Section 401(k) of the Internal Revenue Code of
	2220	+	1986, as amended, that would have been treated as
	2221	+	paid base salary but for the salary deferral
	2222	+	reduction agreement,
	2223	+	(6) any amount of nonelective salary reduction under
	2224	+	Section 414(h) of the Internal Revenue Code of
	2225	+	1986, as amended,
	2226	+	(7) educational allowances paid to obtain training
	2227	+	certification or pursue an advanced degree,
	2228	+	(8) longevity payments made to members based upon a
	2229	+	standardized plan which recognizes length of
	2230	+	service to the participating municipality,
	2231	+	(9) paid base salary shall also include base salary,
	2232	+	as described in divisions (1) through (8) of this
	2233	+	subparagraph, for services, but paid by the later
	2234	+	of two and one-half (2 1/2) months after a RBS No. 3512
	2235	+
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	2260	+
	2261	+	member’s severance from employment or the end of
	2262	+	the calendar year that includes the date the
	2263	+	member terminated employment, if it is a payment
	2264	+	that, absent a severance from employment, would
	2265	+	have been paid to the member while the membe r
	2266	+	continued in employment with the participating
	2267	+	municipality,
623	2268		(10) any payments not described in divisions (1)
624	2269		through (9) of this subparagraph shall not be
625	2270		considered paid base salary if paid after
626	2271		severance from employment, even if they are paid
627	2272		by the later of two and one -half (2 1/2) months
628	2273		after the date of severance from employment or
629	2274		the end of the calendar year that includes the
630	2275		date of severance fro m employment, except
631	2276		payments to an individual who does not currently
632	2277		perform services for the parti cipating
633	2278		municipality by reason of qualified military
634	2279		service within the meaning of Sec tion 414(u)(5)
635	2280		of the Internal Revenue Code of 1986, as amended,
636	2281		to the extent these payments do not exceed the
637	2282		amounts the individual would have received if the
638		-	individual had continued to perform services for
	2283	+	individual had continued to perform services for RBS No. 3512
	2284	+
	2285	+	ENGR. S. B. NO. 102 Page 15 1
	2286	+	2
	2287	+	3
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	2289	+	5
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	2309	+
639	2310		the participating municipality rather than
640	2311		entering qualified military service,
641		-
642	2312		(11) back pay, within the meaning of Section 1.415(c)-
643	2313		2(g)(8) of the Income Tax Regulations, shall be
644	2314		treated as paid base salary for the limitation
645	2315		year to which the back pay relates to the extent
646	2316		the back pay represents wages and compensation
647	2317		that would otherwise be included in this
648	2318		definition, and
649		-
650	2319		(12) paid base salary shall also include differential
651	2320		wage payments under Section 414(u) (12) of the
652	2321		Internal Revenue Code of 1986, as amended.
653		-
654	2322		b. Notwithstanding anything to t he contrary in this
655	2323		section, paid base salary shall not include any:
656		-
657	2324		(1) fringe benefits, reimbursements, or increases in
658	2325		compensation due to reimbursements to the exten t
659		-
660		-	ENR. S. B. NO. 102 Page 16
661	2326		not specifically included above in subparagraph a
662	2327		of this paragraph,
663		-
664	2328		(2) incremental increase in compensation which is not
665	2329		included by the employer in a member ’s regular
666	2330		base pay for salary increase purposes but is paid
667	2331		by the employer to the member for group health
668	2332		benefits not otherwise included above in division
669		-	(1) of subparagraph a of this paragraph,
	2333	+	(1) of subparagraph a of this paragraph, RBS No. 3512
	2334	+
	2335	+	ENGR. S. B. NO. 102 Page 16 1
	2336	+	2
	2337	+	3
	2338	+	4
	2339	+	5
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	2341	+	7
	2342	+	8
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	2354	+	20
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	2356	+	22
	2357	+	23
	2358	+	24
670	2359
671	2360		(3) insurance benefits, including any reimbursements
672	2361		thereof, or insurance proceeds of any type not
673	2362		otherwise included above in division (1) of
674	2363		subparagraph a of this paragraph,
675		-
676	2364		(4) bonuses, including signing bonuses, lump -sum
677	2365		payments or stipends made to the member not
678	2366		otherwise included above in division (1) of
679	2367		subparagraph a of this paragraph,
680		-
681	2368		(5) overtime compensation,
682		-
683	2369		(6) payments whether prior to or upon termination of
684	2370		employment for accumulated unused vacation or
685	2371		unused annual leave, accumulated unused sick
686	2372		leave, or accumulated unused paid time off o r
687	2373		other unused leave,
688		-
689	2374		(7) payments made in error to a member,
690		-
691	2375		(8) payments made by the participating municipality
692	2376		for services rendered by the member, which
693	2377		services are not part of the m ember’s job duties
694	2378		and responsibilities of his or her job position
695	2379		with the participating municipality,
696		-
697	2380		(9) severance pay,
698		-
699	2381		(10) unemployment payments, and
700		-
701		-	(11) uniform and equipment allowances; and
702		-
703		-
704		-	ENR. S. B. NO. 102 Page 17
	2382	+	(11) uniform and equipment allowances; and RBS No. 3512
	2383	+
	2384	+	ENGR. S. B. NO. 102 Page 17 1
	2385	+	2
	2386	+	3
	2387	+	4
	2388	+	5
	2389	+	6
	2390	+	7
	2391	+	8
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	2404	+	21
	2405	+	22
	2406	+	23
	2407	+	24
	2408	+
705	2409		22. “Actuarial equivalent ” means equality in value of the
706	2410		aggregate amounts expected to be received based on interest rate and
707	2411		mortality assumptions set by the State Board, in a manner that
708	2412		precludes employer discretion, and b ased upon recommendations from
709	2413		independent professional advisors, and which shall be pu blished
710	2414		annually in the actuarial report.
711		-
712		-	SECTION 3. AMENDATORY 11 O.S. 2021, Section 50 -109, as
	2415	+	SECTION 9. AMENDATORY 11 O.S. 2021, Section 50 -109, as
713	2416		amended by Section 1, Chapter 53, O.S.L. 2023 (11 O.S. Supp. 2023,
714	2417		Section 50-109), is amended to read as follows:
715		-
716	2418		Section 50-109. Any municipality participating in the Oklahoma
717	2419		Police Pension and Reti rement System shall appropriate funds, for
718	2420		the use and benefit of the System, as provided in the fol lowing
719	2421		schedule:
720		-
721	2422		1. Prior to July 1, 1991, a minimum of ten percent (10%) of the
722	2423		actual paid base salary of each member of the System employed by the
723	2424		municipality;
724		-
725	2425		2. Beginning July 1, 1991, a minimum of ten and one -half
726	2426		percent (10 1/2%) of the actual p aid base salary of each member of
727	2427		the System employed by the municipality;
728		-
729	2428		3. Beginning July 1, 1992, a minimum of eleven percent (11%) of
730	2429		the actual paid base salary of each member of the System employed by
731		-	the municipality;
	2430	+	the municipality; RBS No. 3512
	2431	+
	2432	+	ENGR. S. B. NO. 102 Page 18 1
	2433	+	2
	2434	+	3
	2435	+	4
	2436	+	5
	2437	+	6
	2438	+	7
	2439	+	8
	2440	+	9
	2441	+	10
	2442	+	11
	2443	+	12
	2444	+	13
	2445	+	14
	2446	+	15
	2447	+	16
	2448	+	17
	2449	+	18
	2450	+	19
	2451	+	20
	2452	+	21
	2453	+	22
	2454	+	23
	2455	+	24
732	2456
733	2457		4. Beginning July 1, 1993, a minimum of eleven and one -half
734	2458		percent (11 1/2%) of the actual paid base salary of eac h member of
735	2459		the System employed by the municipality;
736		-
737	2460		5. Beginning July 1, 1994, a minimum of twelve percent (12%) of
738	2461		the actual paid base salary of each member of the S ystem employed by
739	2462		the municipality;
740		-
741	2463		6. Beginning July 1, 1995, a minimum of twelve and one-half
742	2464		percent (12 1/2%) of the actual paid base salary of each me mber of
743	2465		the System employed by the municipality; and
744		-
745		-
746		-	ENR. S. B. NO. 102 Page 18
747	2466		7. Beginning July 1, 1996, a minimum of thirte en percent (13%)
748	2467		of the actual paid base salary of each member of the System employed
749	2468		by the municipality; and
750		-
751	2469		8. Beginning on the effective date of this act, a minimum of
752	2470		fourteen percent (14%) of the actual paid base salary of each member
753	2471		of the System employed by the municipality .
754		-
755	2472		The sum appropriated shall be paid online to the System within
756	2473		ten (10) days following the payroll period on which the contrib ution
757	2474		is based.
758		-
759	2475		The state shall make such appropriation as is necessary to
760	2476		assure the retirement ben efits provided by the article.
761		-
762		-	SECTION 4. AMENDATORY 11 O.S. 202 1, Section 50-110, as
763		-	last amended by Section 1 of Enrolled House Bill No. 3858 of the 2nd
764		-	Session of the 59th Oklahoma Legislature , is amended to read as
765		-	follows:
	2477	+	SECTION 10. AMENDATORY 11 O.S. 2021, Section 50-110, as
	2478	+	amended by Section 2, Chapter 53, O.S.L. 2023 (11 O.S. Supp. 2023,
	2479	+	Section 50-110), is amended to read as follows: RBS No. 3512
	2480	+
	2481	+	ENGR. S. B. NO. 102 Page 19 1
	2482	+	2
	2483	+	3
	2484	+	4
	2485	+	5
	2486	+	6
	2487	+	7
	2488	+	8
	2489	+	9
	2490	+	10
	2491	+	11
	2492	+	12
	2493	+	13
	2494	+	14
	2495	+	15
	2496	+	16
	2497	+	17
	2498	+	18
	2499	+	19
	2500	+	20
	2501	+	21
	2502	+	22
	2503	+	23
	2504	+	24
766	2505
767	2506		Section 50-110. A. Each member in the Oklahoma Police Pension
768	2507		and Retirement System prior to the effective date of this act shall
769	2508		contribute to the System a minimum of eight percent ( 8%) of the
770	2509		member’s actual paid base salary . On or after the effective date of
771	2510		this act, each membe r shall contribute to the System a minimum of
772	2511		nine percent (9%).
773		-
774	2512		At the option of the p articipating municipality, the
775	2513		participating municipality may pay all or any part of the member ’s
776	2514		required contribution. The sums contributed shall be paid online to
777	2515		the System as provided in this article within ten (10) days
778	2516		following the payroll period on which the contributions are based.
779	2517		Amounts deducted from the sala ry of a member and not paid to the
780	2518		System after thirty (30) days from each ending payroll date shall be
781		-	subject to a monthly late charge of five percent (5%) of the unpaid
782		-	balance to be paid by the municipality to the System. All funds
783		-	received by a participating municipality for police retirement
784		-	purposes shall be forwarded to the State Oklahoma Police Pension and
785		-	Retirement Board for credit to the Oklahoma Police Pension and
786		-	Retirement Fund.
787		-
788		-
789		-	ENR. S. B. NO. 102 Page 19
	2519	+	subject to a monthly late charge of one and one -half percent (1
	2520	+	1/2%) of the unpaid balance to be paid by the municipality to the
	2521	+	System. All funds received by a participating municipality for
	2522	+	police retirement purposes shall be forwarded to the State Oklahoma
	2523	+	Police Pension and Retirement Board for credit to the Oklahoma
	2524	+	Police Pension and Retirement Fund.
790	2525		B. Each municipality shall pick up under the p rovisions of
791	2526		Section 414(h)(2) of the Internal Revenue Code of 1986 and pay the
792	2527		contribution which t he member is required by law to make to the
793	2528		System for all compensation earned after De cember 31, 1988.
794		-	Although the contributions so picked up are designated as member
	2529	+	Although the contributions so picked up are designated as member RBS No. 3512
	2530	+
	2531	+	ENGR. S. B. NO. 102 Page 20 1
	2532	+	2
	2533	+	3
	2534	+	4
	2535	+	5
	2536	+	6
	2537	+	7
	2538	+	8
	2539	+	9
	2540	+	10
	2541	+	11
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	2554	+	24
	2555	+
795	2556		contributions, such contributions shall be treated as contributions
796	2557		being paid by the municipality in lieu of contributions by the
797	2558		member in determining tax treatment under the Internal Revenue Code
798	2559		of 1986 and such picked up picked-up contributions shall not be
799	2560		includable in the gross income of the member until such amounts are
800	2561		distributed or made available to the member or the beneficiary of
801	2562		the member. The member, by the terms of this System, shall not have
802	2563		any option to choose to receive the contributions so picked up
803	2564		directly and the picked up picked-up contributions must be paid by
804	2565		the municipality to the System.
805		-
806	2566		Member contributions which are picked up shall be treated in the
807	2567		same manner and to the same extent as member contributions ma de
808	2568		prior to the date on which member contributions were picked up by
809	2569		the municipality. Member contr ibutions so picked up shall be
810	2570		included in gross salary for purposes of determining ben efits and
811	2571		contributions under the System.
812		-
813	2572		The municipality shall pay the member contributions from the
814	2573		same source of funds used in paying salary to the member, by
815	2574		effecting an equal cash reduction in gross salary of the member.
816		-
817		-	SECTION 5. AMENDATORY 11 O.S. 2021, Section 50 -111.1, is
818		-	amended to read as follows:
819		-
	2575	+	SECTION 11. AMENDATORY 11 O.S. 2021, Section 50 -111.1,
	2576	+	is amended to read as follows:
820	2577		Section 50-111.1. A. A member who terminates service before
821	2578		normal retirement date, other than by death or disability , shall,
822		-	upon application filed with t he State Oklahoma Police Pension and
	2579	+	upon application filed with the State Oklahoma Police Pension and RBS No. 3512
	2580	+
	2581	+	ENGR. S. B. NO. 102 Page 21 1
	2582	+	2
	2583	+	3
	2584	+	4
	2585	+	5
	2586	+	6
	2587	+	7
	2588	+	8
	2589	+	9
	2590	+	10
	2591	+	11
	2592	+	12
	2593	+	13
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	2600	+	20
	2601	+	21
	2602	+	22
	2603	+	23
	2604	+	24
	2605	+
823	2606		Retirement Board, be refunded from the Oklahoma Police Pension and
824	2607		Retirement Fund an amount equal to the accumulated contributions the
825	2608		member has made to the Fund fund, but excluding any interest or any
826	2609		amount contributed by the muni cipality or state. If a member
827	2610		withdraws the member ’s accumulated contributions, such member shall
828	2611		not have any recourse against the System for any type of additional
829	2612		benefits including, but not limited to, disability benefits. If a
830	2613		member has completed ten (10) years of credited service at the date
831		-
832		-	ENR. S. B. NO. 102 Page 20
833	2614		of termination, the member may elect a vested benefit in lieu of
834	2615		receiving the member ’s accumulated contributions.
835		-
836	2616		If the member who has completed ten (10) or more years of
837	2617		credited service elects the vested b enefit, the member shall be
838	2618		entitled to a monthly retirement annuity commencing on the date the
839	2619		member reaches fifty (50) years of age or the date the member would
840	2620		have had twenty (20) years of credited service had the member ’s
841	2621		employment continued uninter rupted, whichever is later. The annual
842	2622		amount of such retirement annuity shall be equal to two and one -half
843	2623		percent (2 1/2%) of the annualized final average salary mult iplied
844	2624		by the number of years of credited service. For a monthly
845	2625		retirement annuity co mmencing on or after the effective date of this
846	2626		act, the annual amoun t of such retirement annuity shall be computed
847	2627		pursuant to the annualized final average salary as de fined pursuant
848	2628		to paragraph 17 of Section 50-101 of this title multiplied by the
849		-	number of years of credited service.
	2629	+	number of years of credited service. RBS No. 3512
	2630	+
	2631	+	ENGR. S. B. NO. 102 Page 22 1
	2632	+	2
	2633	+	3
	2634	+	4
	2635	+	5
	2636	+	6
	2637	+	7
	2638	+	8
	2639	+	9
	2640	+	10
	2641	+	11
	2642	+	12
	2643	+	13
	2644	+	14
	2645	+	15
	2646	+	16
	2647	+	17
	2648	+	18
	2649	+	19
	2650	+	20
	2651	+	21
	2652	+	22
	2653	+	23
	2654	+	24
850	2655
851	2656		If a terminated member has elected a vested benefit and
852	2657		subsequently returns to work as a police officer of a participating
853	2658		municipality, their his or her vested benefit will be set aside and
854	2659		prior credited service will be re instated.
855		-
856	2660		B. If a member who terminates employment and elects a vest ed
857	2661		benefit dies prior to being eligible to receive benefits, the
858	2662		member’s beneficiary shall be entit led to the member’s normal
859	2663		monthly accrued retirement benefits on the date the deceased member
860	2664		would have been eligible to receive the benefit.
861		-
862	2665		C. Whenever a member has terminated or hereafter terminates
863	2666		covered employment and has withdrawn or hereafter w ithdraws the
864	2667		member’s accumulated contributions and has rejoined or hereafter
865	2668		rejoins the System, the member, upon proper application and approval
866	2669		by the Board, may pay to the System the sum of the accumulated
867	2670		contributions the member has withdrawn or here after withdraws plus
868	2671		ten percent (10%) annual interest from the date of withdrawal and
869	2672		shall receive the same benefits as if the member had never withdrawn
870	2673		the contributions. A lump -sum payment for repayment of any amounts
871	2674		received because of a member ’s prior termination may be repaid by
872	2675		trustee-to-trustee transfers of non -Roth funds from a Section 403(b)
873	2676		annuity, an eligible Section 457(b) plan, and/or a Se ction 401(a)
874	2677		qualified plan. Those members who at the time of termination of
875		-
876		-	ENR. S. B. NO. 102 Page 21
877	2678		employment could not w ithdraw any of their accumulated contributions
878		-	shall receive credite d service for the time employed as an officer
	2679	+	shall receive credited service for the t ime employed as an officer RBS No. 3512
	2680	+
	2681	+	ENGR. S. B. NO. 102 Page 23 1
	2682	+	2
	2683	+	3
	2684	+	4
	2685	+	5
	2686	+	6
	2687	+	7
	2688	+	8
	2689	+	9
	2690	+	10
	2691	+	11
	2692	+	12
	2693	+	13
	2694	+	14
	2695	+	15
	2696	+	16
	2697	+	17
	2698	+	18
	2699	+	19
	2700	+	20
	2701	+	21
	2702	+	22
	2703	+	23
	2704	+	24
	2705	+
879	2706		prior to any such termination upon proper application and approval
880	2707		by the Board. To receive credit for such service, all required
881	2708		contributions and interest shall be paid within ninety (90) days of
882	2709		Board approval of the applicat ion. The provisions of this
883	2710		subsection shall not apply to any member who is receiving benefits
884	2711		from the System as of July 1, 1987.
885		-
886	2712		D. If an active member dies and does not leave a surviving
887	2713		beneficiary under paragraph 13 of Section 50 -101 of this title, the
888	2714		accumulated contributions made to the System by the member shall be
889	2715		paid to the member’s estate or, if properly designated by the
890	2716		member, a trust.
891		-
892		-	SECTION 6. Section 1 of this act shall become effective June 1,
893		-	2025.
894		-
895		-	SECTION 7. Sections 2 through 5 of this act shall become
896		-	effective July 1, 2025.
897		-
898		-
899		-	ENR. S. B. NO. 102 Page 22
900		-	Passed the Senate the 14th day of May, 2024.
	2717	+	SECTION 12. AMENDATORY 62 O.S. 2021, Section 3103, as
	2718	+	last amended by Section 1, Chapter 306, O.S.L. 2022 (62 O.S. Supp.
	2719	+	2023, Section 3103), is amen ded to read as follows:
	2720	+	Section 3103. As used in the Oklahoma Pension Legislation
	2721	+	Actuarial Analysis Act:
	2722	+	1. “Amendment” means any amendment, including a substitute
	2723	+	bill, made to a reti rement bill by any committee of the House of
	2724	+	Representatives or Senate, any conference committee of the House or
	2725	+	Senate or by the House or Senate;
	2726	+	2. “RB number” means that number preceded by the letters “RB”
	2727	+	assigned to a retirement bill by the respectiv e staffs of the
	2728	+	Oklahoma State Senate and the Oklahoma House of Representatives when RBS No. 3512
	2729	+
	2730	+	ENGR. S. B. NO. 102 Page 24 1
	2731	+	2
	2732	+	3
	2733	+	4
	2734	+	5
	2735	+	6
	2736	+	7
	2737	+	8
	2738	+	9
	2739	+	10
	2740	+	11
	2741	+	12
	2742	+	13
	2743	+	14
	2744	+	15
	2745	+	16
	2746	+	17
	2747	+	18
	2748	+	19
	2749	+	20
	2750	+	21
	2751	+	22
	2752	+	23
	2753	+	24
	2754	+
	2755	+	the respective staff office prepares a retirement bill for a member
	2756	+	of the Legislature;
	2757	+	3. “Legislative Actuary” means the firm or entity that enters
	2758	+	into a contract with the Legislative Service Bureau pursuant to
	2759	+	Section 452.15 of Title 74 of the Oklahoma Statutes to provide the
	2760	+	actuarial services and other duties provided for in the Ok lahoma
	2761	+	Pension Legislation Actuarial Analysis Act;
	2762	+	4. “Nonfiscal amendment” means an amendment to a retirement
	2763	+	bill having a fiscal impact, which amendment does not change any
	2764	+	factor of an actuarial investigation specified in subsection A of
	2765	+	Section 3109 of this title;
	2766	+	5. “Nonfiscal retirement bill ” means a retirement bill:
	2767	+	a. which does not affect the cost or funding factors of a
	2768	+	retirement system,
	2769	+	b. which affects such factors only in a manner which does
	2770	+	not:
	2771	+	(1) grant a benefit increase under the retir ement
	2772	+	system affected by the bill,
	2773	+	(2) create an actuarial accrued liability for or
	2774	+	increase the actuarial accrued liability of the
	2775	+	retirement system affect ed by the bill, or
	2776	+	(3) increase the normal cost of the retirement system
	2777	+	affected by the bill, RBS No. 3512
	2778	+
	2779	+	ENGR. S. B. NO. 102 Page 25 1
	2780	+	2
	2781	+	3
	2782	+	4
	2783	+	5
	2784	+	6
	2785	+	7
	2786	+	8
	2787	+	9
	2788	+	10
	2789	+	11
	2790	+	12
	2791	+	13
	2792	+	14
	2793	+	15
	2794	+	16
	2795	+	17
	2796	+	18
	2797	+	19
	2798	+	20
	2799	+	21
	2800	+	22
	2801	+	23
	2802	+	24
	2803	+
	2804	+	c. which authorizes the purchase by an active member of
	2805	+	the retirement system, at the actuar ial cost for the
	2806	+	purchase as computed pursuant to the statute in effect
	2807	+	on the effective date of the measure allowing such
	2808	+	purchase, of years of service for purposes of reaching
	2809	+	a normal retirement date in the applicable retirement
	2810	+	system, but which cannot be used in order to compute
	2811	+	the number of years of service for purpo ses of
	2812	+	computing the retirement benefit for the member,
	2813	+	d. which provides for the computation of a s ervice-
	2814	+	connected disability retirement benefit for members of
	2815	+	the Oklahoma Law Enforcem ent Retirement System
	2816	+	pursuant to Section 2 -305 of Title 47 of the Oklahoma
	2817	+	Statutes if the members were unable to complete twenty
	2818	+	(20) years of service as a result of t he disability,
	2819	+	e. which requires membership in the defined benefit plan
	2820	+	authorized by Section 901 et seq. of Title 74 of the
	2821	+	Oklahoma Statutes for persons w hose first elected or
	2822	+	appointed service occurs on or after November 1, 2018,
	2823	+	if such persons had any prior service in the Oklahoma
	2824	+	Public Employees Retirement System prior to November
	2825	+	1, 2015,
	2826	+	f. which provides for a one -time increase in retirement
	2827	+	benefits if the increase in retirement benefits is not RBS No. 3512
	2828	+
	2829	+	ENGR. S. B. NO. 102 Page 26 1
	2830	+	2
	2831	+	3
	2832	+	4
	2833	+	5
	2834	+	6
	2835	+	7
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	2848	+	20
	2849	+	21
	2850	+	22
	2851	+	23
	2852	+	24
	2853	+
	2854	+	a permanent increase in the gross annual retirement
	2855	+	benefit payable to a member or beneficiary, occurs
	2856	+	only once pursuant to a single statu tory authorization
	2857	+	and does not exceed:
	2858	+	(1) the lesser of two percent (2%) of the gross
	2859	+	annual retirement benefit of the member or One
	2860	+	Thousand Dollars ($1,000.00) and r equires that
	2861	+	the benefit may only be provided if the funded
	2862	+	ratio of the affected retir ement system would not
	2863	+	be less than sixty percent (60%) but not greater
	2864	+	than eighty percent (80%) after the benefit
	2865	+	increase is paid,
	2866	+	(2) the lesser of two percent (2%) of the gross
	2867	+	annual retirement benefit of the member or One
	2868	+	Thousand Two Hundred Dollar s ($1,200.00) and
	2869	+	requires that the benefit may only be provided if
	2870	+	the funded ratio of the affected retirement
	2871	+	system would be greater than eighty percent (80%)
	2872	+	but not greater than one hundred percent (100%)
	2873	+	after the benefit increase is paid,
	2874	+	(3) the lesser of two percent (2%) of the gross
	2875	+	annual retirement benefit of the member or One
	2876	+	Thousand Four Hundred Dollars ($1,400.00) and
	2877	+	requires that the benefit may only be provided if RBS No. 3512
	2878	+
	2879	+	ENGR. S. B. NO. 102 Page 27 1
	2880	+	2
	2881	+	3
	2882	+	4
	2883	+	5
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	2887	+	9
	2888	+	10
	2889	+	11
	2890	+	12
	2891	+	13
	2892	+	14
	2893	+	15
	2894	+	16
	2895	+	17
	2896	+	18
	2897	+	19
	2898	+	20
	2899	+	21
	2900	+	22
	2901	+	23
	2902	+	24
	2903	+
	2904	+	the funded ratio of the affected retirement
	2905	+	system would be greater than on e hundred percent
	2906	+	(100%) after the benefit increase is paid, or
	2907	+	(4) the greater of two percent (2%) of the gross
	2908	+	annual retirement benefit of the volunteer
	2909	+	firefighter or One Hundred Dollars ($100.00) for
	2910	+	persons who retired from the Oklahoma
	2911	+	Firefighters Pension and Retirement System as
	2912	+	volunteer firefighters and who did not retire
	2913	+	from the Oklahoma Firefighters Pension and
	2914	+	Retirement System as a paid firefighter.
	2915	+	As used in this subparagraph, “funded ratio” means the
	2916	+	figure derived by dividing the actuari al value of
	2917	+	assets of the applicable retirement system by the
	2918	+	actuarial accrued liability of the applicable
	2919	+	retirement system,
	2920	+	g. which modifies the disability pension s tandard for
	2921	+	police officers who are members of the Oklahoma Police
	2922	+	Pension and Retireme nt System as provided by Section 3
	2923	+	50-115 of this act Title 11 of the Oklahoma Statutes ,
	2924	+	h. which provides a cost -of-living benefit increase
	2925	+	pursuant to the provisions o f:
	2926	+	(1) Section 49-143.7 of Title 11 of the Oklahoma
	2927	+	Statutes, RBS No. 3512
	2928	+
	2929	+	ENGR. S. B. NO. 102 Page 28 1
	2930	+	2
	2931	+	3
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	2948	+	20
	2949	+	21
	2950	+	22
	2951	+	23
	2952	+	24
	2953	+
	2954	+	(2) Section 50-136.9 of Title 11 of the Oklahoma
	2955	+	Statutes,
	2956	+	(3) Section 1104K of Title 20 of th e Oklahoma
	2957	+	Statutes,
	2958	+	(4) Section 2-305.12 of Title 47 of the Oklahoma
	2959	+	Statutes,
	2960	+	(5) Section 17-116.22 of Title 70 of the Oklahoma
	2961	+	Statutes, or
	2962	+	(6) Section 930.11 of Title 74 of the Oklaho ma
	2963	+	Statutes, or
	2964	+	i. which modifies the computation of the line -of-duty
	2965	+	disability benefit pursuant to the provisions of this
	2966	+	act this section and Sections 50-101 and 50-115 of
	2967	+	Title 11 of the Oklahoma Statutes ,
	2968	+	j. which increases the computation factor used to
	2969	+	calculate the accrued retirement benefit and normal
	2970	+	disability benefit under paragraphs 18 and 19 of
	2971	+	Section 50-101 of Title 11 of the Oklahoma Statutes,
	2972	+	or
	2973	+	k. which increases the municipal contribution, employee
	2974	+	contribution, or both for members of th e Oklahoma
	2975	+	Police Pension and Retirement System pursuant to
	2976	+	paragraph 8 of Section 50 -109 of Title 11 of the RBS No. 3512
	2977	+
	2978	+	ENGR. S. B. NO. 102 Page 29 1
	2979	+	2
	2980	+	3
	2981	+	4
	2982	+	5
	2983	+	6
	2984	+	7
	2985	+	8
	2986	+	9
	2987	+	10
	2988	+	11
	2989	+	12
	2990	+	13
	2991	+	14
	2992	+	15
	2993	+	16
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	3000	+	23
	3001	+	24
	3002	+
	3003	+	Oklahoma Statutes or subsection A of Section 50 -110 of
	3004	+	Title 11 of the Oklahoma Statutes .
	3005	+	A nonfiscal retirement bill shall include any retirement bill that
	3006	+	has as its sole purpose the appropriation or distribution o r
	3007	+	redistribution of monies in some manner to a retirement system for
	3008	+	purposes of reducing the unfund ed liability of such system or the
	3009	+	earmarking of a portion of the revenue from a tax to a retirement
	3010	+	system or increasing the percentage of the revenue earmarked from a
	3011	+	tax to a retirement system;
	3012	+	6. “Reduction-in-cost amendment” means an amendment to a
	3013	+	retirement bill having a fiscal impact which reduces the cost of the
	3014	+	bill as such cost is determined by the actuarial investigation for
	3015	+	the bill prepared pur suant to Section 3109 of this title;
	3016	+	7. “Retirement bill” means any bill or joint resolution
	3017	+	introduced or any bill or joint resolution amended by a member of
	3018	+	the Oklahoma Legislature which creates or amends any law directly
	3019	+	affecting a retirement system. A retirement bill shall not mean a
	3020	+	bill or resolution that impacts the revenue of any state tax in
	3021	+	which a portion of the revenue generated from such tax is earmarked
	3022	+	for the benefit of a retirement system;
	3023	+	8. “Retirement bill having a fiscal impact ” means any
	3024	+	retirement bill creating or establishing a retirement system and any
	3025	+	other retirement bill o ther than a nonfiscal retirement bill; and RBS No. 3512
	3026	+
	3027	+	ENGR. S. B. NO. 102 Page 30 1
	3028	+	2
	3029	+	3
	3030	+	4
	3031	+	5
	3032	+	6
	3033	+	7
	3034	+	8
	3035	+	9
	3036	+	10
	3037	+	11
	3038	+	12
	3039	+	13
	3040	+	14
	3041	+	15
	3042	+	16
	3043	+	17
	3044	+	18
	3045	+	19
	3046	+	20
	3047	+	21
	3048	+	22
	3049	+	23
	3050	+	24
	3051	+
	3052	+	9. “Retirement system” means the Teachers’ Retirement System of
	3053	+	Oklahoma, the Oklahoma Public Employees Retirement System, the
	3054	+	Uniform Retirement System for Justices and Judges, the Oklahoma
	3055	+	Firefighters Pension and Retirement System, the Oklahoma Police
	3056	+	Pension and Retirement System, the Oklahoma Law Enforcement
	3057	+	Retirement System, or a retirement system established after January
	3058	+	1, 2006.
	3059	+	SECTION 13. Sections 1 through 4 of this act shall become
	3060	+	effective in accordance with the provisions of Section 58 of Article
	3061	+	V of the Oklahoma Co nstitution.
	3062	+	SECTION 14. Section 5 of this act shall become effective July
	3063	+	1, 2024.
	3064	+	SECTION 15. It being immediately necessary for the p reservation
	3065	+	of the public peace, health or safety, an emergency is hereby
	3066	+	declared to exist, by reason whereof this act shall take effect and
	3067	+	be in full force from and after its passage and approval. RBS No. 3512
	3068	+
	3069	+	ENGR. S. B. NO. 102 Page 31 1
	3070	+	2
	3071	+	3
	3072	+	4
	3073	+	5
	3074	+	6
	3075	+	7
	3076	+	8
	3077	+	9
	3078	+	10
	3079	+	11
	3080	+	12
	3081	+	13
	3082	+	14
	3083	+	15
	3084	+	16
	3085	+	17
	3086	+	18
	3087	+	19
	3088	+	20
	3089	+	21
	3090	+	22
	3091	+	23
	3092	+	24
	3093	+
	3094	+	Passed the Senate the 1 4th day of March, 2024.
901	3095
902	3096
903	3097
904	3098		Presiding Officer of the Senate
905	3099
906	3100
907		-	Passed the House of Representatives the 15th day of April, 2024.
	3101	+	Passed the House of Representatives the ____ day of _____ _____,
	3102	+	2024.
908	3103
909	3104
910	3105
911	3106		Presiding Officer of the House
912	3107		of Representatives
913	3108
914		-	OFFICE OF THE GOVERNOR
915		-	Received by the Office of the Governor this _______ _____________
916		-	day of _________________ __, 20_______, at _______ o'clock _______ M.
917		-	By: _________________________________
918		-	Approved by the Governor of the State of Oklahoma this _______ __
919		-	day of _________________ __, 20_______, at _______ o'clock _______ M.
920		-
921		-	_________________________________
922		-	Governor of the State of Oklahoma
923		-
924		-
925		-	OFFICE OF THE SECRETARY OF STATE
926		-	Received by the Office of the Secretary of State this _______ ___
927		-	day of _________________ _, 20 _______, at _______ o'clock _______ M.
928		-	By: _________________________________
	3109	+