An Act
ENROLLED SENATE
BILL NO. 102 By: Garvin, Hamilton, and
Stephens of the Senate
and
Bashore, Sneed, Munson,
Provenzano, West (Josh),
Sterling, Schreiber,
Harris, Moore, Hays, and
Hefner of the House
An Act relating to the Oklahoma Police Pension and
Retirement System; amending 62 O.S. 2021, Section
3103, as last amended by Section 1 of Enrolled House
Bill No. 4051 of the 2nd Session of the 59th Oklahoma
Legislature, which relates to the Oklahoma Pension
Legislation Actuarial Analysis Act; modifyin g term;
amending 11 O.S. 2021, Sections 50 -101, as amended by
Section 2, Chapter 306, O.S.L. 2022, 50 -109, as
amended by Section 1, Chapter 53, O.S.L. 2023, 50 -
110, as last amended by Section 1 of Enrolled House
Bill No. 3858 of the 2 nd Session of the 59th Oklahoma
Legislature, and 50-111.1 (11 O.S. Supp. 2023,
Sections 50-101 and 50-109), which relate to
definitions, employee and employer contributions, and
termination of employment; modifying definitions;
increasing minimum employee contribution for certa in
members of System; increasing computation of certain
monthly benefits; providing for effective dates of
certain increase; increasing employer contribution;
updating statutory language; and providing effective
dates.
SUBJECT: Oklahoma Police Pension and Retirement System
ENR. S. B. NO. 102 Page 2
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 62 O.S. 2021, Section 3103, as
last amended by Section 1 of Enrolled House Bill No. 4051 of the 2nd
Session of the 59th Oklahoma Legislature, is amended to read as
follows:
Section 3103. As used in the Oklahoma Pension Legislation
Actuarial Analysis Act:
1. “Amendment” means any amendment, including a substitute
bill, made to a retirement bill by any committee of the House or
Senate, any conference committee of the House or Senate or by the
House or Senate;
2. “RB number” means that number preceded by the letters “RB”
assigned to a retirement bill by the respective staffs of the
Oklahoma State Senate and the Oklahoma House of R epresentatives when
the respective staff office prepares a retirement bill for a member
of the Legislature;
3. “Legislative Actuary” means the firm or entity that enters
into a contract with the Legislative Service Bureau pursuant to
Section 452.15 of Ti tle 74 of the Oklahoma Statutes to provide the
actuarial services and other duties provided for in the Oklahoma
Pension Legislation Actuarial Analysis Act;
4. “Nonfiscal amendment” means an amendment to a retirement
bill having a fiscal impact, which ame ndment does not change any
factor of an actuarial investigation specified in subsection A of
Section 3109 of this title;
5. “Nonfiscal retirement bill” means a retirement bill:
a. which does not affect the cost or funding factors of a
retirement system,
b. which affects such factors only in a manner which does
not:
(1) grant a benefit increase under the retirement
system affected by the bill,
ENR. S. B. NO. 102 Page 3
(2) create an actuarial accrued liability for or
increase the actuarial accrued liability of the
retirement system affected by the bill, or
(3) increase the normal cost of the retirement system
affected by the bill,
c. which authorizes the purchase by an active member of
the retirement system, at the actuarial cost for the
purchase as computed pursuant to the st atute in effect
on the effective date of the measure allowing such
purchase, of years of service for purposes of reaching
a normal retirement date in the applicable retirement
system, but which cannot be used in order to compute
the number of years of serv ice for purposes of
computing the retirement benefit for the member,
d. which provides for the computation of a service -
connected disability retirement benefit for members of
the Oklahoma Law Enforcement Retirement System
pursuant to Section 2 -305 of Title 47 of the Oklahoma
Statutes if the members were unable to complete twenty
(20) years of service as a result of the disability,
e. which requires membership in the defined benefit plan
authorized by Section 901 et seq. of Title 74 of the
Oklahoma Statutes for persons whose first elected or
appointed service occurs on or after November 1, 2018,
if such persons had any prior service in the Oklahoma
Public Employees Retirement System prior to November
1, 2015,
f. which provides for a one -time increase in retirement
benefits if the increase in retirement benefits is not
a permanent increase in the gross annual retirement
benefit payable to a member or beneficiary, occurs
only once pursuant to a single statutory authorization
and does not exceed:
(1) the lesser of two percent (2%) of the gross
annual retirement benefit of the member or One
ENR. S. B. NO. 102 Page 4
Thousand Dollars ($1,000.00) and requires that
the benefit may only be provided if the funded
ratio of the affected retirement system would not
be less than sixty percent (6 0%) but not greater
than eighty percent (80%) after the benefit
increase is paid,
(2) the lesser of two percent (2%) of the gross
annual retirement benefit of the member or One
Thousand Two Hundred Dollars ($1,200.00) and
requires that the benefit may onl y be provided if
the funded ratio of the affected retirement
system would be greater than eighty percent (80%)
but not greater than one hundred percent (100%)
after the benefit increase is paid,
(3) the lesser of two percent (2%) of the gross
annual retirement benefit of the member or One
Thousand Four Hundred Dollars ($1,400.00) and
requires that the benefit may only be provided if
the funded ratio of the affected retirement
system would be greater than one hundred percent
(100%) after the benefit increas e is paid, or
(4) the greater of two percent (2%) of the gross
annual retirement benefit of the volunteer
firefighter or One Hundred Dollars ($100.00) for
persons who retired from the Oklahoma
Firefighters Pension and Retirement System as
volunteer firefighters and who did not retire
from the Oklahoma Firefighters Pension and
Retirement System as a paid firefighter.
As used in this subparagraph, “funded ratio” means the
figure derived by dividing the actuarial value of
assets of the applicable retirement system by the
actuarial accrued liability of the applicable
retirement system,
g. which modifies the disability pension standard for
police officers who are members of the Oklahoma Police
ENR. S. B. NO. 102 Page 5
Pension and Retirement System as provided by Section
50-115 of Title 11 of the Oklahoma Statutes ,
h. which provides a cost -of-living benefit increase
pursuant to the provisions of:
(1) Section 49-143.7 of Title 11 of the Oklahoma
Statutes,
(2) Section 50-136.9 of Title 11 of the Oklahoma
Statutes,
(3) Section 1104K of Title 20 of the Oklahoma
Statutes,
(4) Section 2-305.12 of Title 47 of the Oklahoma
Statutes,
(5) Section 17-116.22 of Title 70 of the Oklahoma
Statutes, or
(6) Section 930.11 of Title 74 of the Oklahoma
Statutes,
i. which modifies the computation of the line-of-duty
disability benefit pursuant to Sections 50-101 and 50-
115 of Title 11 of the Oklahoma Statutes, or
j. which allows the purchase of military prior service
credit pursuant to the provisions of this act ,
k. which increases the computation f actor used to
calculate the accrued retirement benefit and normal
disability benefit pursuant to Section 50 -101 of Title
11 of the Oklahoma Statutes,
l. which increases the municipal contribution, employee
contribution, or both for members of the Oklahoma
Police Pension and Retirement System pursuant to
Sections 50-109 and 50-110 of Title 11 of the Oklahoma
Statutes, or
ENR. S. B. NO. 102 Page 6
m. which modifies the computation of a retirement annuity
pursuant to Section 50 -111.1 of Title 11 of the
Oklahoma Statutes.
A nonfiscal retirement bill shall include any retirement bill that
has as its sole purpose the appropriation or distribution or
redistribution of monies in some manner to a retirement system for
purposes of reducing the unfunded liability of such system or the
earmarking of a portion of the revenue from a tax to a retirement
system or increasing the percentage of the revenue earmarked from a
tax to a retirement system;
6. “Reduction-in-cost amendment” means an amendment to a
retirement bill having a fiscal impact wh ich reduces the cost of the
bill as such cost is determined by the actuarial investigation for
the bill prepared pursuant to Section 3109 of this title;
7. “Retirement bill” means any bill or joint resolution
introduced or any bill or joint resolution am ended by a member of
the Oklahoma Legislature which creates or amends any law directly
affecting a retirement system. A retirement bill shall not mean a
bill or resolution that impacts the revenue of any state tax in
which a portion of the revenue generat ed from such tax is earmarked
for the benefit of a retirement system;
8. “Retirement bill having a fiscal impact” means any
retirement bill creating or establishing a retirement system and any
other retirement bill other than a nonfiscal retirement bill; and
9. “Retirement system” means the Teachers’ Retirement System of
Oklahoma, the Oklahoma Public Employees Retirement System, the
Uniform Retirement System for Justices and Judges, the Oklahoma
Firefighters Pension and Retirement System, the Oklahoma P olice
Pension and Retirement System, the Oklahoma Law Enforcement
Retirement System, or a retirement system established after January
1, 2006.
SECTION 2. AMENDATORY 11 O.S. 2021, Section 50 -101, as
amended by Section 2, Chapter 3 06, O.S.L. 2022 (11 O.S. Supp. 2023,
Section 50-101), is amended to read as follows:
Section 50-101. As used in this article:
ENR. S. B. NO. 102 Page 7
1. “System” means the Oklahoma Police Pension and Retirement
System and all predecessor municipal Police Pension and Retiremen t
Systems police pension and retirement systems ;
2. “Article” means Article 50 of this title;
3. “State Board” means the Oklahoma Police Pension and
Retirement Board;
4. “Fund” means the Oklahoma Police Pension and Retirement
Fund;
5. “Officer” means any duly appointed and sworn full -time
officer of the regular police department of a municipality whose
duties are to preserve the public peace, protect life and property,
prevent crime, serve warrants, enforce all laws and municipal
ordinances of this state, and any political subdivision thereof, and
who is authorized to bear arms in the execution of such duties;
6. “Member” means all eligible officers of a participating
municipality and any person hired by a participating municipality
who is undergoing police training to become a permanent police
officer of the municipality. Effective July 1, 1987, a member does
not include a “leased employee” as defined under Section 414(n)(2)
of the Internal Revenue Code of 1986, as amended. Effective July 1,
1999, any individual who agrees with the participating municipality
that the individual’s services are to be performed as a leased
employee or an independent contractor shall not be a member
regardless of any classification as a common law employee by the
Internal Revenue Service or any other governmental agency, or any
court of competent jurisdiction. A member shall include eligible
commissioned officers of the Oklahoma State Bureau of Narcotics and
Dangerous Drugs Control, the Oklahoma State Bureau of Invest igation,
and the Alcoholic Beverage Laws Enforcement Commission who elect to
participate in the System pursuant to Section 50 -111.5 of this
title;
7. “Normal retirement date” means the date at which the member
is eligible to receive the unreduced payment s of the member’s
accrued retirement benefit. Such date shall be the first day of the
month coinciding with or following the date the member completes
ENR. S. B. NO. 102 Page 8
twenty (20) years of credited service. If the member’s employment
continues past the normal retirement date of the member, the actual
retirement date of the member shall be the first day of the month
after the member terminates employment with more than twenty (20)
years of credited service;
8. “Credited service” means the period of service used to
determine the eligibility for and the amount of benefits payable to
a member. Credited service shall consist of the period during which
the member participated in the System or the predecessor municipal
systems as an active employee in an eligible membership
classification, plus any service prior to the establishment of the
predecessor municipal systems which was credited under the
predecessor municipal systems or credited service granted by the
State Board;
9. “Participating municipality” means a municipality which is
making contributions to the System on behalf of its officers. The
Oklahoma State Bureau of Narcotics and Dangerous Drugs Control, the
Oklahoma State Bureau of Investigation, and the Alcoholic Beverage
Laws Enforcement Commission shall be treated in the same manner as a
participating municipality only regarding those members who elect to
participate in the System pursuant to Section 50 -111.5 of this
title;
10. “Permanent total disability” means incapacity due to
accidental injury or occupational disease, to earn any wages in the
employment for which the member is physically suited and reasonably
fitted through education, training or experience. Further, the
member must be declared one hundred percent (100%) impaired as
defined by the “American Medical Association’s Guides to the
Evaluation of Permanent Impairment” American Medical Association
Guides to the Evaluation of Permanent Impairment on the basis of a
physical medical examination by a physician licensed to practice
medicine in this state, as selected by the State Board;
11. “Permanent partial disability” means permanent disability
which is less than permanent total disability as defined in this
section. The member must be declared no greater than ninety -nine
percent (99%) impaired as def ined by the “American Medical
Association’s Guides to the Evaluation of Permanent Impairment”
American Medical Association Guides to the Evaluation of Permanent
ENR. S. B. NO. 102 Page 9
Impairment on the basis of a physical medical examination by a
physician licensed to practice m edicine in this state, as selected
by the State Board;
12. “Permanent in-line disability” means when a police officer
serving in any capacity at a regular police department of a
participating municipality becomes so physically or mentally
disabled, as determined by an independent medical examiner,
psychiatrist, or psychologist selected by the State Board, while in,
and in consequence of, the performance of authorizing activities
while on duty as an officer that he or she is unable to perform the
required duties of a police officer;
13. “Beneficiary” means a member’s surviving spouse or any
surviving children, including biological and adopted children, at
the time of the member’s death. The surviving spouse must have been
married to the member for the th irty (30) continuous months
immediately preceding the member’s death, provided a surviving
spouse of a member who died while in, and as a consequence of, the
performance of the member’s duty for a participating municipality,
shall not be subject to the thi rty-month marriage requirement for
survivor benefits. A surviving child of a member shall be a
beneficiary until reaching eighteen (18) years of age or twenty -two
(22) years of age if the child is enrolled full time full-time and
regularly attending a pub lic or private school or any institution of
higher education. Any child adopted by a member after the member’s
retirement shall be a beneficiary only if the child is adopted by
the member for the thirty (30) continuous months preceding the
member’s death. Any child who is adopted by a member after the
member’s retirement and such member dies accidentally or as a
consequence of the performance of the member’s duty as a police
officer shall not be subject to the thirty -month adoption
requirement. This defi nition of beneficiary shall be in addition to
any other requirement set forth in this article;
14. “Executive Director” means the managing officer of the
System employed by the State Board;
15. “Eligible employer” means any municipality with a municipa l
police department;
ENR. S. B. NO. 102 Page 10
16. “Entry date” means the date as of which an eligible
employer joins the System. The first entry date pursuant to this
article shall be January 1, 1981;
17. “Final average salary” means the average paid base salary
of the member for normally scheduled hours over the highest salaried
thirty (30) consecutive months of the last sixty (60) months of
credited service. Effective July 1, 2016, the following shall apply
in computing final average salary:
a. only paid base salary on whi ch required contributions
have been made shall be used in computing a member’s
final average salary,
b. for purposes of determining the normal disability
benefit only, final average salary shall be based on
the member’s total service if less than thirty ( 30)
months,
c. in addition to other applicable limitations, and
notwithstanding any other provision to the contrary,
for plan years beginning on or after July 1, 2002, the
annual compensation of each “Noneligible Member”
noneligible member taken into account under the System
shall not exceed the Economic Growth and Tax Relief
Reconciliation Act of 2001 (EGTRRA) annual
compensation limit. The EGTRRA annual compensation
limit is Two Hundred Thousand Dollars ($200,000.00),
as adjusted by the Commissioner for increases in the
cost of living in accordance with Section
401(a)(17)(B) of the Internal Revenue Code of 1986, as
amended. The annual compensation limit in effect for
a calendar year applies to any period, not exceeding
twelve (12) months, over which com pensation is
determined (“determination period”) beginning in such
calendar year. If a determination period consists of
fewer than twelve (12) months, the EGTRRA annual
compensation limit will be multiplied by a fraction,
the numerator of which is the num ber of months in the
determination period, and the denominator of which is
twelve (12). For purposes of this section, a
“Noneligible Member” noneligible member is any member
ENR. S. B. NO. 102 Page 11
who first became a member during a plan year
commencing on or after July 1, 1996,
d. for plan years beginning on or after July 1, 2002, any
reference in the System to the annual compensation
limit under Section 401(a)(17) of the Internal Revenue
Code of 1986, as amended, shall mean the EGTRRA annual
compensation limit set forth in thi s provision, and
e. effective January 1, 2008, back pay, within the
meaning of Section 1.415(c) -2(g)(8) of the Income Tax
Regulations, shall be treated as paid base salary for
the limitation year to which the back pay relates to
the extent the back pay re presents wages and
compensation that would otherwise be included in this
definition;
18. “Accrued retirement benefit” means , for benefits computed
prior to the effective date of this act, two and one-half percent (2
1/2%) of the member’s final average sa lary multiplied by the
member’s years of credited service not to exceed thirty (30) years .
For a member who retires on or after the effective date of this
act, accrued retirement benefit shall mean:
a. for members who retire and terminate employment at
least one (1) year after the effective date of this
act, and have at least twenty -five (25) years of
credited service, three percent (3%) of the member’s
final average salary multiplied by the member’s years
of credited service, not to exceed thirty (30) ye ars,
b. for members who retire and terminate employment at
least two (2) years after the effective date of this
act, and have at least twenty (20) years of credited
service, three percent (3%) of the member’s final
average salary multiplied by the member’ s years of
credited service, not to exceed thirty (30) years,
c. for members who retire and terminate employment at
least five (5) years after the effective date of this
act, three percent (3%) of the member’s final average
ENR. S. B. NO. 102 Page 12
salary multiplied by the member ’s years of credited
service, not to exceed thirty (30) years, and
d. for members who retire and terminate employment on or
after the effective date of this act, but do not have
the minimum years of credited service to qualify for
the benefit outlined in subparagraphs a and b of this
paragraph, or retire and terminate employment prior to
the date outlined in subparagraph c of this paragraph,
two and one-half percent (2 1/2%) of the member’s
final average salary multiplied by the member’s years
of credited service, not to exceed thirty (30) years ;
19. “Normal disability benefit” means :
a. for benefits computed prior to the effective date of
this act, the greater of:
a.
(1) two and one-half percent (2 1/2%) of the member’s
final average salary multiplied by twenty (20)
years, notwithstanding the years of actual
credited service, or
b.
(2) two and one-half percent (2 1/2%) of the member’s
final average salary multiplied by the years of
credited service of the member, not to exceed
thirty (30) years, if the officer has more than
twenty (20) years of credited service ,
b. for benefits computed on or after the effective date
of this act, the greater of:
(1) three percent (3%) of the member’s final average
salary multiplied by twenty (20) years,
notwithstanding the years of actual credited
service, or
ENR. S. B. NO. 102 Page 13
(2) three percent (3%) of the member’s final average
salary multiplied by the years of credited
service of the member, not to exceed thirty (30)
years, if the officer has more than twenty (20)
years of credited se rvice;
20. “Limitation year” means the year used in applying the
limitations of Section 415 of the Internal Revenue Code of 1986, as
amended, which year shall be the calendar year;
21. “Paid base salary” means, effective July 1, 2016, any
compensation described in subparagraph a of this paragraph that is
not described in subparagraph b of this paragraph.
a. Paid base salary shall include only:
(1) normal compensation paid on a regularly scheduled
pay period including, but not limited to, regular
pay for holidays, paid time off, vacation or
annual leave, sick leave or compensatory time in
lieu of overtime, any lump sum payment paid in
lieu of a normal wage increase, provided such
lump sum payment is retroactively applied over
the prior twelve-month period ending with the
payment date, compensation for bomb squad pay,
education pay, incentive pay, K -9 pay,
negotiation pay, shift differential, sniper pay,
SWAT team pay, emergency response team pay, any
other special unit pay, and any incremental
increase in compensation which is not included by
the employer in a member’s regular base pay for
salary increase purposes but is paid by the
employer to the member for group health benefits
based on an arrangement with a participating
municipality that was in place on December 31,
2015, so long as the arrangement continues
uninterrupted for a member employed by a
participating municipality on June 30, 2016, who
has not since terminated employment and been
rehired by such participating municipality,
ENR. S. B. NO. 102 Page 14
(2) any amount of elective salary reduction under
Section 125 of the Internal Revenue Code of 1986,
as amended, that would have been treated as paid
base salary but for the salary deferral reduction
agreement,
(3) any amount of elective salary reduction not
includable in the gross income of the member
under Section 132(f)(4) of the Internal Revenue
Code of 1986, as amended, that would have been
treated as paid base salary but for the salary
deferral reduction agreement,
(4) any amount of elective salary reduction under
Section 457 of the Internal Revenue Code of 1986,
as amended, that would have been treated as paid
base salary but for the salary deferral reduction
agreement,
(5) any amount of elective salary reduction under
Section 401(k) of the Internal Revenue Code of
1986, as amended, that would have been treated as
paid base salary but for the salary deferral
reduction agreement,
(6) any amount of nonelective salary reduction under
Section 414(h) of the Internal Revenue Code of
1986, as amended,
(7) educational allowances paid to obtain training
certification or pursue an advanced degree,
(8) longevity payments made to members based upon a
standardized plan which recognizes length of
service to the participating municipality,
(9) paid base salary shall also includ e base salary,
as described in divisions (1) through (8) of this
subparagraph, for services, but paid by the later
of two and one-half (2 1/2) months after a
member’s severance from employment or the end of
the calendar year that includes the date the
ENR. S. B. NO. 102 Page 15
member terminated employment, if it is a payment
that, absent a severance from employment, would
have been paid to the member while the member
continued in employment with the participating
municipality,
(10) any payments not described in divisions (1)
through (9) of this subparagraph shall not be
considered paid base salary if paid after
severance from employment, even if they are paid
by the later of two and one -half (2 1/2) months
after the date of severance from employment or
the end of the calendar year t hat includes the
date of severance from employment, except
payments to an individual who does not currently
perform services for the participating
municipality by reason of qualified military
service within the meaning of Section 414(u)(5)
of the Internal Revenue Code of 1986, as amended,
to the extent these payments do not exceed the
amounts the individual would have received if the
individual had continued to perform services for
the participating municipality rather than
entering qualified military servi ce,
(11) back pay, within the meaning of Section 1.415(c) -
2(g)(8) of the Income Tax Regulations, shall be
treated as paid base salary for the limitation
year to which the back pay relates to the extent
the back pay represents wages and compensation
that would otherwise be included in this
definition, and
(12) paid base salary shall also include differential
wage payments under Section 414(u)(12) of the
Internal Revenue Code of 1986, as amended.
b. Notwithstanding anything to the contrary in this
section, paid base salary shall not include any:
(1) fringe benefits, reimbursements, or increases in
compensation due to reimbursements to the extent
ENR. S. B. NO. 102 Page 16
not specifically included above in subparagraph a
of this paragraph,
(2) incremental increase in compensation w hich is not
included by the employer in a member’s regular
base pay for salary increase purposes but is paid
by the employer to the member for group health
benefits not otherwise included above in division
(1) of subparagraph a of this paragraph,
(3) insurance benefits, including any reimbursements
thereof, or insurance proceeds of any type not
otherwise included above in division (1) of
subparagraph a of this paragraph,
(4) bonuses, including signing bonuses, lump -sum
payments or stipends made to the mem ber not
otherwise included above in division (1) of
subparagraph a of this paragraph,
(5) overtime compensation,
(6) payments whether prior to or upon termination of
employment for accumulated unused vacation or
unused annual leave, accumulated unused si ck
leave, or accumulated unused paid time off or
other unused leave,
(7) payments made in error to a member,
(8) payments made by the participating municipality
for services rendered by the member, which
services are not part of the member’s job duties
and responsibilities of his or her job position
with the participating municipality,
(9) severance pay,
(10) unemployment payments, and
(11) uniform and equipment allowances; and
ENR. S. B. NO. 102 Page 17
22. “Actuarial equivalent” means equality in value of the
aggregate amounts expected to be received based on interest rate and
mortality assumptions set by the State Board, in a manner that
precludes employer discretion, and based upon recommendations from
independent professional advisors, and which shall be published
annually in the actuarial report.
SECTION 3. AMENDATORY 11 O.S. 2021, Section 50 -109, as
amended by Section 1, Chapter 53, O.S.L. 2023 (11 O.S. Supp. 2023,
Section 50-109), is amended to read as follows:
Section 50-109. Any municipalit y participating in the Oklahoma
Police Pension and Retirement System shall appropriate funds, for
the use and benefit of the System, as provided in the following
schedule:
1. Prior to July 1, 1991, a minimum of ten percent (10%) of the
actual paid base salary of each member of the System employed by the
municipality;
2. Beginning July 1, 1991, a minimum of ten and one -half
percent (10 1/2%) of the actual paid base salary of each member of
the System employed by the municipality;
3. Beginning July 1, 1 992, a minimum of eleven percent (11%) of
the actual paid base salary of each member of the System employed by
the municipality;
4. Beginning July 1, 1993, a minimum of eleven and one -half
percent (11 1/2%) of the actual paid base salary of each member o f
the System employed by the municipality;
5. Beginning July 1, 1994, a minimum of twelve percent (12%) of
the actual paid base salary of each member of the System employed by
the municipality;
6. Beginning July 1, 1995, a minimum of twelve and one -half
percent (12 1/2%) of the actual paid base salary of each member of
the System employed by the municipality; and
ENR. S. B. NO. 102 Page 18
7. Beginning July 1, 1996, a minimum of thirteen percent (13%)
of the actual paid base salary of each member of the System employed
by the municipality; and
8. Beginning on the effective date of this act, a minimum of
fourteen percent (14%) of the actual paid base salary of each member
of the System employed by the municipality .
The sum appropriated shall be paid online to the System within
ten (10) days following the payroll period on which the contribution
is based.
The state shall make such appropriation as is necessary to
assure the retirement benefits provided by the article.
SECTION 4. AMENDATORY 11 O.S. 202 1, Section 50-110, as
last amended by Section 1 of Enrolled House Bill No. 3858 of the 2nd
Session of the 59th Oklahoma Legislature , is amended to read as
follows:
Section 50-110. A. Each member in the Oklahoma Police Pension
and Retirement System prior to the effective date of this act shall
contribute to the System a minimum of eight percent (8%) of the
member’s actual paid base salary . On or after the effective date of
this act, each member shall contribute to the System a minimum of
nine percent (9%).
At the option of the participating municipality, the
participating municipality may pay all or any part of the member’s
required contribution. The sums contributed shall be paid online to
the System as provided in this article within ten (10) days
following the payroll period on which the contributions are based.
Amounts deducted from the salary of a member and not paid to the
System after thirty (30) days from each ending payroll date shall be
subject to a monthly late charge of five percent (5%) of the unpaid
balance to be paid by the municipality to the System. All funds
received by a participating municipality for police retirement
purposes shall be forwarded to the State Oklahoma Police Pension and
Retirement Board for credit to the Oklahoma Police Pension and
Retirement Fund.
ENR. S. B. NO. 102 Page 19
B. Each municipality shall pick up under the provisions of
Section 414(h)(2) of the Internal Revenue Code of 1986 and pay the
contribution which the member is required by law to make to the
System for all compensation earn ed after December 31, 1988.
Although the contributions so picked up are designated as member
contributions, such contributions shall be treated as contributions
being paid by the municipality in lieu of contributions by the
member in determining tax treat ment under the Internal Revenue Code
of 1986 and such picked up picked-up contributions shall not be
includable in the gross income of the member until such amounts are
distributed or made available to the member or the beneficiary of
the member. The memb er, by the terms of this System, shall not have
any option to choose to receive the contributions so picked up
directly and the picked up picked-up contributions must be paid by
the municipality to the System.
Member contributions which are picked up shal l be treated in the
same manner and to the same extent as member contributions made
prior to the date on which member contributions were picked up by
the municipality. Member contributions so picked up shall be
included in gross salary for purposes of det ermining benefits and
contributions under the System.
The municipality shall pay the member contributions from the
same source of funds used in paying salary to the member, by
effecting an equal cash reduction in gross salary of the member.
SECTION 5. AMENDATORY 11 O.S. 2021, Section 50 -111.1, is
amended to read as follows:
Section 50-111.1. A. A member who terminates service before
normal retirement date, other than by death or disability , shall,
upon application filed with t he State Oklahoma Police Pension and
Retirement Board, be refunded from the Oklahoma Police Pension and
Retirement Fund an amount equal to the accumulated contributions the
member has made to the Fund fund, but excluding any interest or any
amount contributed by the municipality or state. If a member
withdraws the member’s accumulated contributions, such member shall
not have any recourse against the System for any type of additional
benefits including, but not limited to, disability benefits. If a
member has completed ten (10) years of credited service at the date
ENR. S. B. NO. 102 Page 20
of termination, the member may elect a vested benefit in lieu of
receiving the member’s accumulated contributions.
If the member who has completed ten (10) or more years of
credited service ele cts the vested benefit, the member shall be
entitled to a monthly retirement annuity commencing on the date the
member reaches fifty (50) years of age or the date the member would
have had twenty (20) years of credited service had the member’s
employment continued uninterrupted, whichever is later. The annual
amount of such retirement annuity shall be equal to two and one -half
percent (2 1/2%) of the annualized final average salary multiplied
by the number of years of credited service. For a monthly
retirement annuity commencing on or after the effective date of this
act, the annual amount of such retirement annuity shall be computed
pursuant to the annualized final average salary as defined pursuant
to paragraph 17 of Section 50 -101 of this title multipli ed by the
number of years of credited service.
If a terminated member has elected a vested benefit and
subsequently returns to work as a police officer of a participating
municipality, their his or her vested benefit will be set aside and
prior credited service will be reinstated.
B. If a member who terminates employment and elects a vested
benefit dies prior to being eligible to receive benefits, the
member’s beneficiary shall be entitled to the member’s normal
monthly accrued retirement benefits on the date the deceased member
would have been eligible to receive the benefit.
C. Whenever a member has terminated or hereafter terminates
covered employment and has withdrawn or hereafter withdraws the
member’s accumulated contributions and has rejoined or hereafter
rejoins the System, the member, upon proper application and approval
by the Board, may pay to the System the sum of the accumulated
contributions the member has withdrawn or hereafter withdraws plus
ten percent (10%) annual interest from the date of withdrawal and
shall receive the same benefits as if the member had never withdrawn
the contributions. A lump -sum payment for repayment of any amounts
received because of a member’s prior termination may be repaid by
trustee-to-trustee transfers of no n-Roth funds from a Section 403(b)
annuity, an eligible Section 457(b) plan, and/or a Section 401(a)
qualified plan. Those members who at the time of termination of
ENR. S. B. NO. 102 Page 21
employment could not withdraw any of their accumulated contributions
shall receive credite d service for the time employed as an officer
prior to any such termination upon proper application and approval
by the Board. To receive credit for such service, all required
contributions and interest shall be paid within ninety (90) days of
Board approval of the application. The provisions of this
subsection shall not apply to any member who is receiving benefits
from the System as of July 1, 1987.
D. If an active member dies and does not leave a surviving
beneficiary under paragraph 13 of Section 50 -101 of this title, the
accumulated contributions made to the System by the member shall be
paid to the member’s estate or, if properly designated by the
member, a trust.
SECTION 6. Section 1 of this act shall become effective June 1,
2025.
SECTION 7. Sections 2 through 5 of this act shall become
effective July 1, 2025.
ENR. S. B. NO. 102 Page 22
Passed the Senate the 14th day of May, 2024.
Presiding Officer of the Senate
Passed the House of Representatives the 15th day of April, 2024.
Presiding Officer of the House
of Representatives
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this _______ _____________
day of _________________ __, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _______ __
day of _________________ __, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this _______ ___
day of _________________ _, 20 _______, at _______ o'clock _______ M.
By: _________________________________