RBS No. 1873
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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
ENGROSSED SENATE
BILL NO. 632 By: Montgomery of the Senate
and
Lepak of the House
An Act relating to the Oklahoma Public Employees
Retirement System; amending 74 O.S. 2021, Section
935.5, which relates to employer contribution amount;
increasing employer matching amount for certain
contributions; updating statutory language; updating
statutory reference; and further increasing employer
match requirement under certain circumstances .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF O KLAHOMA:
SECTION 1. AMENDATORY 74 O.S. 2021, Section 935.5, is
amended to read as follows:
Section 935.5. A. Except as otherwise provided by s ubsection B
of this section, employers of employees who become participants in
the defined contribution retirement system shall match the employee
contribution paid on a monthly or more freq uent basis at the rate of
six percent (6.0%) eight percent (8%) based on the same compensation
amount used to compute the employee contribution amount.
B. If an employee selects a contribution rate of seven percent
(7.0%) eight percent (8%) or more, but not higher than allowed
pursuant to the maximum annual contribution limit prescribed by RBS No. 1873
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Section 415 of the Internal Revenue Code of 1986, as amended, the
employer matching amount shall be seven percent (7.0%) ten percent
(10%).
C. The initial four and five -tenths percent (4.5%) employee
contribution shall be th e only mandatory contribution of an employee
participating in the defined contribution retire ment system created
by this act Section 935.1 et seq. of this title . These funds shall
be placed by the Oklahoma Public Emplo yees Retirement System in
either a 401(a) plan or a 457(b) plan, to be determined by the Board
of Trustees to maintain the plan consistent with the Internal
Revenue Code. Any employee contributions eligible to be m atched
under this section over the four and five-tenths percent (4.5%)
initial contribution shall be considered voluntary deferrals of
compensation and placed in a 457(b) plan. All employer matching
funds shall be placed in a 401(a) plan.
Any contribution rate that is more than the four and five-tenths
percent (4.5%) rate can be chosen by the participating employe e upon
the employee’s initial participation, and can be changed once per
month. The employee contribution rate chosen shall continue until
the employee elects to change the contribution rate or terminates
service or retires.
D. The employer match as set forth in subsection A of this
section may be increas ed at any time by the Legislature without
affecting the then-existing rights of participating employees and RBS No. 1873
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beneficiaries in order to encourage participating employees to
accumulate deferred income reserv es for themselves and their
dependents. The employe r match may be decreased at any time by the
Legislature without affecting the then -existing rights of
participating employees and beneficiaries in order to provide
funding as may be needed to reduce the u nfunded liabilities of the
defined benefit plan as s et forth in Section 901 et seq. of this
title, but shall not be less than six percent (6.0%) (6%) for any
year during which the defined contribution plan is maintained.
COMMITTEE REPORT BY: COMMITTEE ON BANKING, FINANCIAL SERVICES AND
PENSIONS, dated 04/10/2023 - DO PASS.