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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
SENATE BILL 1443 By: Rader
AS INTRODUCED
An Act relating to state fiscal affairs; creating the
Oklahoma Pension Legacy Fund; providing sources of
funds; requiring the State Treasurer to appoint
investment managers; establishing investment
guidelines; authorizing realization of losses under
certain circumstance; requiring income and returns to
accrue to the balance of the fund; prov iding for
appropriations of funds for certain purp ose;
providing for transfer amount upon insufficient
liquidity; requiring manag ers to maintain certain
proportion of liquidit y in the fund; requiring
appropriation of monies transferred from the fund to
certain state retirement syst ems; providing for
calculation of appropriation; making appropriation to
the Office of the State Treasurer; requiring deposit
in certain fund; providing for codification;
providing an effective date; and declaring an
emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law t o be codified
in the Oklahoma Statutes as Section 34.601 of Title 62, unless there
is created a duplication in numbering, rea ds as follows:
A. There is hereby created in the St ate Treasury a fund to be
known and designated as the “Oklahoma Pension Legacy Fund”. The
fund shall be a continuing fund, not subject to fiscal year
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limitations, and shall consist of surplus monies and savings
appropriated by the Legislature.
B. The State Treasurer shall appoint qualified investment
managers to provide for the inv estment of the monies of the fund.
The investments shall be consistent with the manner in which state
retirement funds are invested. The risk of large losses shall be
minimized by diversifying the investments in the fund, unless, under
the circumstances, it is clearly p rudent not to do so, which shall
include the length of time of the investment. The investment
managers may sell investments and realize losses if such action is
considered advantageous to lon ger-term return maximization.
C. The fund principal shall consist of monies which are
deposited to the fund. Notwithstanding any other provisi ons of law,
income and investment return on fund principal shall accru e to the
fund.
D. For each fiscal year, the Treasurer shall make available a
report on its website detailing the present value of the investments
and assets in the Oklahoma Pension Legacy Fund and the increase in
value from the previous fiscal year .
E. Except as provided for in subsections F and G of this
section, upon a determination by the Treasurer, through the report
provided pursuant to subsection D of this section , that the increase
in the value of the Oklahoma Pension Legacy Fund, from the previous
fiscal year, exceeds One Hundred Million Dollars ($100,000,000.00)
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or any additional whole increment s of One Hundred Million Dollars
($100,000,000.00), a transfer to the General Revenue fund , solely
for the purpose of funding pensions in this state, as provided for
in subsection H of this section, shall be made on January 1 of each
subsequent calendar year in an amount equal to the high est whole
one-hundred-million-dollar increment, as determined by the
Treasurer.
F. Except as provided for in subsection G of this se ction, upon
a subsequent determination by the Treasurer, through the report
provided pursuant to subsection D of this section , that the Oklahoma
Pension Legacy Fund increased in value by any whole increments of
One Hundred Million Dollars ($100,000,000.00) greater than the most
recent January 1 transfer to the General Revenue Fund made pursuant
to the provisions of this section, each subsequent January 1
transfer shall be made in an amount equal to the highest whole one-
hundred-million-dollar increment that the Oklahoma Pension Legacy
Fund increased in value, as determined by the Treasurer.
G. Investment managers appointed pursuant to subsection B of
this section shall maintain a reasonable proportion of liquid assets
in the Oklahoma Pension Legacy Fund in order to facilitate any
expected transfers required pursuant to subsections E a nd F of this
section. If the balance of the Oklahoma Pension Legacy Fund is
insufficient or the cash available in the fund is insufficient due
to lack of liquid assets to make the transfers required pursuant to
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subsections E and F of this section, the entire balance availabl e
for transfer shall be transferred to the fund.
H. The Legislature shall appropriate monies transferred from
this fund to state retirement systems that have actuarial value
funded ratios of less than one hundred percent (100%).
Appropriations to each of those state retirement systems that have
actuarial value funded ratios of less than one hundred percent
(100%) shall be in a proportion equal to the ratio that the state
retirement system’s dollar difference between its actuarial value of
assets and actuarial accr ued liabilities bears to those combined
state retirement system s’ dollar difference between its actuarial
value of assets and actuarial accrued liab ilities.
SECTION 2. There is hereby appropriated to the Office of the
State Treasurer for deposit in the Oklahoma Pension Legacy Fund,
from any monies not otherwise appropriated from the Genera l Revenue
Fund of the State Treasury for the f iscal year ending June 30, 202 1,
the sum of One Hundred Forty-five Million Eight Hundred Eighteen
Thousand Six Hundred One Dollars ( $145,818,601.00).
SECTION 3. There is hereby appropriated to the Office of the
State Treasurer for deposit in the Oklahoma Pension Legacy Fund,
from any monies not otherwise appropriated from the General Revenue
Fund of the State Treasury for the fiscal year ending June 30, 202 2,
the sum of Sixty-four Million Two Hundred Fifty Thousand Two Hundred
Ninety-nine Dollars ($64,250,299.00).
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SECTION 4. There is hereby appropriated to the Office of the
State Treasurer for deposit in the Oklahoma Pension Legacy Fund,
from any monies not otherwise appropriated from the Ge neral Revenue
Fund of the State Tr easury for the fiscal year ending June 30, 2023,
the sum of One Billion Eight Hundred Forty-five Million Two Hundred
Fifty-three Thousand Seven Hundred Thirteen Dollars
($1,845,253,713.00).
SECTION 5. This act shall become effective July 1 , 2024.
SECTION 6. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its pa ssage and approval.
59-2-3025 QD 12/15/2023 5:08:43 PM