Oklahoma 2025 Regular Session

Oklahoma House Bill HB1027 Compare Versions

Version 1 (Old)

Version 2 (New)

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1	1		RBH No. 10296
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3		-	SENATE FLOOR VERSION - HB1027 SFLR Page 1
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	2	+	ENGR. H. B. NO. 1027 Page 1 1
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33	27		ENGROSSED HOUSE
34	28		BILL NO. 1027 By: Kelley of the House
35	29
36	30		and
37	31
38	32		Alvord of the Senate
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43	37		An Act relating to retirement; amending 47 O.S. 2021,
44	38		Sections 2-300, as last amended by Section 1, Chapter
45	39		361, O.S.L. 2024, 2-304, and 2-307.2 (47 O.S. Supp.
46	40		2024, Section 2-300), which relate to the Oklahoma
47	41		Law Enforcement Retirement System; modifying
48	42		definition; updating references; deleting list of
49	43		specified state agencies that contribute to certain
50	44		fund; updating purchase price calculation for service
51	45		credit related to certain leaves of absence; and
52	46		declaring an emergency.
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57	51		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
58	52		SECTION 1. AMENDATORY 47 O.S. 2021, Section 2 -300, as
59	53		last amended by Section 1, Chapter 361, O.S.L. 2024 (4 7 O.S. Supp.
60	54		2024, Section 2-300), is amended to read as follows:
61	55		Section 2-300. As used in Section 2 -300 et seq. of this title:
62	56		1. "System" means the Oklahoma Law Enforcement Retirement
63	57		System;
64	58		2. "Act" means Section 2-300 et seq. of this title;
65	59		3. "Board" means the Oklahoma Law Enforcement Retirement Board
66		-	of the System; ~~RBH No. 10296~~
67		-
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	60	+	of the System;
	61	+	4. "Executive Director" means the managing officer of the
	62	+	System employed by the Board; RBH No. 10296
	63	+	ENGR. H. B. NO. 1027 Page 2 1
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94		-	4. "Executive Director" means the managing officer of the
95		-	System employed by the Board;
96	88		5. "Fund" means the Oklahoma Law Enforcement Retirement Fund;
97	89		6. "Participating employer " means any Oklahoma entity with one
98	90		or more employees who are members of the System;
99	91		7. a. "Member" means:
100	92		(1) all commissioned law enforcement officers of the
101	93		Oklahoma Highway Patrol Division of the
102	94		Department of Public Safety who have obtained
103	95		certification from the Council on Law Enforcement
104	96		Education and Training, and all cadets of a
105	97		Patrol Academy of the Department of Public
106	98		Safety,
107	99		(2) law enforcement officers and criminalists of the
108	100		Oklahoma State Bureau of Investigation,
109	101		(3) law enforcement officers of the Oklahoma State
110	102		Bureau of Narcotics and Dangerous Drugs Control
111	103		designated to perform duties in the investigation
112	104		and prevention of crime and the enforcement of
113	105		the criminal laws of this state,
114	106		(4) law enforcement officers of the Alcoholic
115	107		Beverage Laws Enforcement Commission designated
116		-	to perform duties in the ~~in vestigation~~ and ~~RBH No. 10296~~
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	108	+	to perform duties in the inv estigation and
	109	+	prevention of crime and the enforcement of the
	110	+	criminal laws of this state, RBH No. 10296
	111	+	ENGR. H. B. NO. 1027 Page 3 1
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144		-	prevention of crime and the enforcement of the
145		-	criminal laws of this state,
146	136		(5) employees of the Communications Section of the
147	137		Oklahoma Highway Patrol Division, radio
148	138		technicians and tower technicians of the
149	139		Department of Public Safety, who are employed in
150	140		any such capacity as of June 30, 2008, and who
151	141		remain employed on or after July 1, 2008, until a
152	142		termination of service, or until a termination of
153	143		service with an election of a vested benefit from
154	144		the System, or until retirement. Effective July
155	145		1, 2008, a person employed for the first time as
156	146		an employee of the Department of Public Safety in
157	147		the Communications Division as an information
158	148		systems telecommunication technician of th e
159	149		Department of Public Safety shall not be a member
160	150		of the System,
161	151		(6) park rangers of the Oklahoma Tourism and
162	152		Recreation Department and any park manager or
163	153		park supervisor of the Oklahoma Tourism and
164	154		Recreation Department, who was employed in such a
165	155		position prior to July 1, 1985, and who elects on
166	156		or before September 1, 1996, to participate in
167		-	the System, RBH No. 10296
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	157	+	the System,
	158	+	(7) inspectors of the State Board of Pharmacy, and RBH No. 10296
	159	+	ENGR. H. B. NO. 1027 Page 4 1
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195		-	(7) inspectors of the State Board of Pharmacy, and
196	184		(8) active commissioned or CLEET -certified agents
197	185		hired by the Office of the Attorney General or
198	186		the Military Department of the State of Oklahoma
199		-	on or after the effective date of this act July
200		-	1, 2024,
	187	+	on or after July 1, 2024,
201	188		(9) police officers who are CLEET -certified and
202	189		employed by the University of Oklahoma or
203	190		Oklahoma State University and who participate in
204	191		the System, pursuant to Section 2 -314 of this
205	192		title, and
206	193		(10) lake patrolmen or dispatchers of the Grand Ri ver
207	194		Dam Authority who participate in the System,
208	195		pursuant to Section 2 -315 of this title.
209	196		b. Effective July 1, 1987, a member does not include a
210	197		"leased employee" as defined under Section 414(n )(2)
211	198		of the Internal Revenue Code of 1986, as amended.
212	199		Effective July 1, 1999, any individual who agrees with
213	200		the participating employer that the individual 's
214	201		services are to be performed as a leased employee or
215	202		an independent contractor shall not be a me mber
216	203		regardless of any classification as a common -law
217		-	employee by the Internal Revenue Service or any other ~~RBH No. 10296~~
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	204	+	employee by the Internal Revenue Service or any other
	205	+	governmental agency, or any court of competent
	206	+	jurisdiction. RBH No. 10296
	207	+	ENGR. H. B. NO. 1027 Page 5 1
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245		-	governmental agency, or any court of competent
246		-	jurisdiction.
247	232		c. All persons offered a position described in
248	233		subparagraph a of this paragraph shall p articipate in
249	234		the System only upon meeting the requisite post -offer-
250	235		pre-employment examination standards which shall be
251	236		subject to the following requirements:
252	237		(1) all such persons shall be of good moral
253	238		character, free from deformities, mental or
254	239		physical conditions, or disease and alcohol or
255	240		drug addiction which woul d prohibit the person
256	241		from performing the duties of a law enforcement
257	242		officer,
258	243		(2) the physical-medical examination shall pertain to
259	244		age, sight, hearing, agility and other conditions
260	245		the requirements of which shall be established by
261	246		the Board,
262	247		(3) the person shall be required to meet the
263	248		conditions of this subsection prior to the
264	249		beginning of actual employment but after an offer
265	250		of employment has been tendered by a
266	251		participating employer,
267	252		(4) the Board shall have authority to deny or revoke
268		-	membership of any person submitting false ~~RBH No. 10296~~
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	253	+	membership of any person submitting false
	254	+	information in such person 's membership
	255	+	application, and RBH No. 10296
	256	+	ENGR. H. B. NO. 1027 Page 6 1
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296		-	information in such person 's membership
297		-	application, and
298	281		(5) the Board shall have final authority in
299	282		determining eligibility for membership in the
300	283		System, pursuant to the provisions of this
301	284		subsection;
302	285		8. "Normal retirement date " means the date at which the member
303	286		is eligible to receive the unreduced payments of the member 's
304	287		accrued retirement benefit. Such date shall be the first day of the
305	288		month coinciding with or f ollowing the date the member:
306	289		a. completes twenty (20) years of vesting service, or
307	290		b. attains sixty-two (62) years of age with ten (10)
308	291		years of vesting service, or
309	292		c. attains sixty-two (62) years of age, if:
310	293		(1) the member has been transferred to this Sy stem
311	294		from the Oklahoma Public Employees Retirement
312	295		System on or after July 1, 1981, and
313	296		(2) the member would have been vested had the member
314	297		continued to be a member of the Oklahoma Public
315	298		Employees Retirement System.
316	299		With respect to distributions under th e System made for calendar
317	300		years beginning on or after January 1, 2005, the System shall apply
318	301		the minimum distribution incidental benefit requirements, incidental
319		-	benefit requirements, and minimum distribution requirements of ~~RBH No. 10296~~
320		-
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	302	+	benefit requirements, and minimum distribution requirements of
	303	+	Section 401(a)(9) of the Inte rnal Revenue Code of 1986, as amended,
	304	+	in accordance with the final regulations under Section 401(a)(9) of RBH No. 10296
	305	+	ENGR. H. B. NO. 1027 Page 7 1
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347		-	Section 401(a)(9) of the Internal Revenue Code of 1986, as amended,
348		-	in accordance with the final regulations under Section 401(a)(9) of
349	330		the Internal Revenue Code of 1986, as amended, including Treasury
350	331		Regulations Sections 1.401(a)(9) -1 through 1.401(a)(9) -9; provided,
351	332		that for individuals who attain seventy and one -half (70 1/2) years
352	333		of age after December 31, 2019, but before January 1, 2023, such
353	334		distributions shall take into account that "age 70 1/2" was stricken
354	335		and "age 72" was inserted in Sections 401(a)(9)(B)(iv)(I),
355	336		401(a)(9)(C)(i)(I) and 401(a)(9)(C)(ii)(I) of the Internal Revenue
356	337		Code of 1986, as amended, and, provided further, that for
357	338		individuals who attain seventy -two (72) years of age after December
358	339		31, 2022, such distributions shall take into account that "age 72"
359	340		was stricken and "the applicable age", as defined in Section
360	341		401(a)(9)(C)(v) of the Internal Revenue Code of 1986, as amended,
361	342		was inserted in Section 401(a)(9)(B)(iv)(I) of the Internal Revenue
362	343		Code of 1986, as amended (applicable to calendar year 2023) , Section
363	344		401(a)(9)(C)(i)(I) and Section 401(a)(9)(C)(ii)(I) of the Internal
364	345		Revenue Code of 1986, as amended, and that the further revision of
365	346		Section 401(a)(9)(B)(iv) of the Internal Revenue Code of 1986, as
366	347		amended, effective for calendar years after 2023 with respect to
367	348		certain distributions shall be taken into account, in all cases
368	349		notwithstanding any provision of the System to the contrary. With
369	350		respect to distributions under the System made for calendar years
370		-	beginning on or after January 1, 2001, through ~~December~~ 31, 2004, ~~RBH No. 10296~~
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	351	+	beginning on or after January 1, 2001, through D ecember 31, 2004,
	352	+	the System shall apply the minimum distribution requirements and
	353	+	incidental benefit requirements of Section 401(a)(9) of the Internal RBH No. 10296
	354	+	ENGR. H. B. NO. 1027 Page 8 1
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398		-	the System shall apply the minimum distribution requirements and
399		-	incidental benefit requirements of Section 401(a)(9) of the Internal
400	379		Revenue Code of 1986, as amended, in accordance with the regulations
401	380		under Section 401(a)(9) of the Inte rnal Revenue Code of 1986, as
402	381		amended, which were proposed in J anuary 2001, notwithstanding any
403	382		provision of the System to the contrary.
404	383		Effective July 1, 1989, notwithstanding any other provision
405	384		contained herein to the contrary, in no event shall commenc ement of
406	385		distribution of the accrued retirement benefit of a member be
407	386		delayed beyond April 1 of the calendar year following the later of:
408	387		(1) the calendar year in which the member reaches seventy and one -
409	388		half (70 1/2) years of age for a member who attain s this age before
410	389		January 1, 2020, or, for a member who attains this age on or after
411	390		January 1, 2020, but before January 1, 2023, the calendar year in
412	391		which the member reaches seventy -two (72) years of age, or effective
413	392		for distributions required to be mad e after December 31, 2022, the
414	393		calendar year in which the member reaches seventy -three (73) years
415	394		of age for an individual who attains age seventy -two (72) after
416	395		December 31, 2022, or "the applicable age", as defined in Section
417	396		401(a)(9)(C)(v) of the Inter nal Revenue Code of 1986, as amended, if
418	397		later; or (2) the actu al retirement date of the member. A member
419	398		electing to defer the commencement of retirement benefits pursuant
420	399		to Section 2-308.1 of this title may not defer the benefit
421		-	commencement beyond the age of sixty -five (65). ~~RBH No. 10296~~
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	400	+	commencement beyond the age of sixty-five (65).
	401	+	Effective September 8, 2009, notwithstanding anything to the
	402	+	contrary of the System, the System, which as a governmental plan RBH No. 10296
	403	+	ENGR. H. B. NO. 1027 Page 9 1
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449		-	Effective September 8, 2009, notwithstanding anything to the
450		-	contrary of the System, the System, which as a governmental plan
451	428		(within the meaning of Section 414(d) of the Internal Revenue Code
452	429		of 1986, as amended), is treated as ha ving complied with Section
453	430		401(a)(9) of the Internal Revenue Co de of 1986, as amended, for all
454	431		years to which Section 401(a)(9) of the Internal Revenue Code of
455	432		1986, as amended, applies to the System if the System complies with
456	433		a reasonable and good faith interpretation of Section 401(a)(9) of
457	434		the Internal Revenue Code of 1986, as amended.
458	435		A member who was required to join the System effective July 1,
459	436		1980, because of the transfer of the employing agency from the
460	437		Oklahoma Public Employees Retirement System to the System, and was
461	438		not a member of the Oklahoma Public Empl oyees Retirement System on
462	439		the date of such transfer shall be allowed to receive credit for
463	440		prior law enforcement service rendered to this state, if the member
464	441		is not receiving or eligible to r eceive retirement credit or
465	442		benefits for such service in any other public retirement system,
466	443		upon payment to the System of the employee contribution the member
467	444		would have been subject to had the member been a member of the
468	445		System at the time, plus five per cent (5%) interest. Service credit
469	446		received pursuant to this p aragraph shall be used in determining the
470	447		member's retirement benefit, and shall be used in determining years
471		-	of service for retirement or vesting purposes; ~~RBH No. 10296~~
472		-
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	448	+	of service for retirement or vesting purposes;
	449	+	9. "Actual paid base salary " means the salary received by a
	450	+	member, excluding payment for any accumulated leave or uniform RBH No. 10296
	451	+	ENGR. H. B. NO. 1027 Page 10 1
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499		-	9. "Actual paid base salary " means the salary received by a
500		-	member, excluding payment for any accumulated leave or uniform
501	476		allowance. Salary shall include any amount of nonelective salary
502	477		reduction under Section 414(h) of the Internal Revenue Code of 1986;
503	478		10. "Final average salary " means the average of the highest
504	479		thirty (30) consecutive complete mo nths of actual paid gross salary.
505	480		Gross salary shall include any amount of elective salary reduction
506	481		under Section 457 of the Internal Revenue Code of 1986, as amended,
507	482		and any amount of nonel ective salary reduction under Section 414(h)
508	483		of the Internal Revenue Code of 1986, as amended. Effective July 1,
509	484		1992, gross salary shall include any amount of elective salary
510	485		reduction under Section 125 of the Internal Revenue Code of 1986, as
511	486		amended. Effective July 1, 1998, gross salary shall include any
512	487		amount of elective salary reduction not includable in the gross
513	488		income of the member under Section 132(f)(4) of the Internal Revenue
514	489		Code of 1986, as amended. Effective July 1, 1998, for purposes of
515	490		determining a member's compensation, any contribution by the member
516	491		to reduce his or her regular cash remuneration under Section
517	492		132(f)(4) of the Internal Revenue Code of 1986, as amended, shall be
518	493		treated as if the member did not make such an election. On ly salary
519	494		on which required contributions have been made may be used in
520	495		computing the final average salary. Gross salary shall not include
521		-	severance pay. RBH No. 10296
522		-
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	496	+	severance pay.
	497	+	In addition to other applicable limitations, and notwithstanding
	498	+	any other provision to the contrary, for plan years beginning on or
	499	+	after July 1, 2002, the annual gross salary of each "Noneligible RBH No. 10296
	500	+	ENGR. H. B. NO. 1027 Page 11 1
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548	524
549		-	In addition to other applicable li mitations, and notwithstanding
550		-	any other provision to the contrary, for plan years beginning on or
551		-	after July 1, 2002, the annual gross salary of each "Noneligible
552	525		Member" taken into account under the System shall not exceed the
553	526		Economic Growth and Tax Relief Reconciliation Act of 2001 ( "EGTRRA")
554	527		annual salary limit. The EGTRRA annual salary limit is Two Hundred
555	528		Thousand Dollars ($2 00,000.00), as adjusted by the Commissioner for
556	529		increases in the cost of living in accordance with Section
557	530		401(a)(17)(B) of the Internal Revenue Code of 1986, as amended. The
558	531		annual salary limit in effect for a calendar year applies to any
559	532		period, not exceeding twelve (12) months, over which salary is
560	533		determined ("determination period ") beginning in such calendar year.
561	534		If a determination period consists of fewer than twelve (12) months,
562	535		the EGTRRA salary limit will be multiplied by a fraction, the
563	536		numerator of which is the number of months in the determination
564	537		period, and the denominator of which is twelve (12). For purposes
565	538		of this section, a "Noneligible Member" is any member who first
566	539		became a member during a plan year commencing on or after July 1,
567	540		1996.
568	541		For plan years beginning on or after July 1, 2002, any reference
569	542		in the System to the annual salary limit under Section 401(a)(17) of
570	543		the Internal Revenue Code of 1986, as amended, shall me an the EGTRRA
571		-	salary limit set forth in this provision. RBH No. 10296
572		-
573		-	SENATE FLOOR VERSION - HB1027 SFLR Page 12
574		-	(Bold face denotes Com mittee Amendments) 1
	544	+	salary limit set forth in this provision.
	545	+	Effective January 1, 2008, gross salary for a plan year shall
	546	+	also include gross salary, as described above, for services, but
	547	+	paid by the later of two and one -half (2 1/2) months after a
	548	+	member's severance from employment or the end of the calendar year RBH No. 10296
	549	+	ENGR. H. B. NO. 1027 Page 12 1
575	550		2
576	551		3
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593	568		20
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595	570		22
596	571		23
597	572		24
598	573
599		-	Effective January 1, 2008, gross salary for a plan year shall
600		-	also include gross salary, as described above, for services, but
601		-	paid by the later of two and one -half (2 1/2) months after a
602		-	member's severance from employment or the end of the calendar year
603	574		that includes the date the member terminated employment, if it is a
604	575		payment that, absent a severance from employment, would have been
605	576		paid to the member while the member continued in employment with th e
606	577		employer.
607	578		Effective January 1, 2008, any payments not describ ed above
608	579		shall not be considered gross salary if paid after severance from
609	580		employment, even if they are paid by the later of two and one -half
610	581		(2 1/2) months after the date of severance from emp loyment or the
611	582		end of the calendar year that includes the date of severance from
612	583		employment, except payments to an individual who does not currently
613	584		perform services for the employer by reason of qualified military
614	585		service within the meaning of Section 414 (u)(5) of the Internal
615	586		Revenue Code of 1986, as amended, to the extent these payments do
616	587		not exceed the amounts the individual would have received if the
617	588		individual had continued to perform services for the employer rather
618	589		than entering qualified military service.
619	590		Effective January 1, 2008, back pay, within the meaning of
620	591		Section 1.415(c)-2(g)(8) of the Income Tax Regulations, shall be
621		-	treated as gross salary for the limitation year to which the back RBH No. 10296
622		-
623		-	SENATE FLOOR VERSION - HB1027 SFLR Page 13
624		-	(Bold face denotes Com mittee Amendments) 1
	592	+	treated as gross salary for the limitation year to which the back
	593	+	pay relates to the extent the back pay represents wages a nd
	594	+	compensation that would otherwise be included in this defini tion.
	595	+	Effective for years beginning after December 31, 2008, gross
	596	+	salary shall also include differential wage payments under Section
	597	+	414(u)(12) of the Internal Revenue Code of 1986, as amended ; RBH No. 10296
	598	+	ENGR. H. B. NO. 1027 Page 13 1
625	599		2
626	600		3
627	601		4
628	602		5
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631	605		8
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642	616		19
643	617		20
644	618		21
645	619		22
646	620		23
647	621		24
648	622
649		-	pay relates to the extent the back pay represents wages and
650		-	compensation that would other wise be included in this definition.
651		-	Effective for years beginning after December 31, 2008, gross
652		-	salary shall also include differential wage payments under Section
653		-	414(u)(12) of the Internal Revenue Code of 1986, as amended;
654	623		11. "Credited service" means the period of service used to
655	624		determine the amount of benefits payable to a member. Credited
656	625		service shall consist of the period during which the member
657	626		participated in the System or the predecessor Plan as an active
658	627		employee in an eligible membership classification, plus any service
659	628		prior to the establishment of the predecessor Plan which was
660	629		credited under the predecessor Plan and for law enforcement officers
661	630		and criminalists of the Oklahoma State Bureau of Investigation a nd
662	631		the Oklahoma State Bureau of Narcotics and Dangerous Drugs Control
663	632		who became members of the System on July 1, 1980, any service
664	633		credited under the Oklahoma Public Employees Retirement System as of
665	634		June 30, 1980, and for members of the Communications an d Lake Patrol
666	635		Divisions of the Oklahoma Department of Public Sa fety, who became
667	636		members of the System on July 1, 1981, any service credited under
668	637		the predecessor Plan or the Oklahoma Public Employees Retirement
669	638		System as of June 30, 1981, and for law enfor cement officers of the
670	639		Alcoholic Beverage Laws Enforcement Commission who became members of
671	640		the System on July 1, 1982, any service credited under the Oklahoma
672		-	Public Employees Retirement S ystem as of June 30, 1982, and for park RBH No. 10296
673		-
674		-	SENATE FLOOR VERSION - HB1027 SFLR Page 14
675		-	(Bold face denotes Com mittee Amendments) 1
	641	+	Public Employees Retirement System as of June 30, 1982, and for park
	642	+	rangers of the Oklahoma Tou rism and Recreation Department who became
	643	+	members of the System on July 1, 1985, any service credited under
	644	+	the Oklahoma Public Employees Retirement System as of June 30, 1985,
	645	+	and for inspectors of the State Board of Pharmacy who became members
	646	+	of the System on July 1, 1986, any service credited under the RBH No. 10296
	647	+	ENGR. H. B. NO. 1027 Page 14 1
676	648		2
677	649		3
678	650		4
679	651		5
680	652		6
681	653		7
682	654		8
683	655		9
684	656		10
685	657		11
686	658		12
687	659		13
688	660		14
689	661		15
690	662		16
691	663		17
692	664		18
693	665		19
694	666		20
695	667		21
696	668		22
697	669		23
698	670		24
699	671
700		-	rangers of the Oklahoma Tourism and Recreation Department w ho became
701		-	members of the System on July 1, 1985, any service credited under
702		-	the Oklahoma Public Employees Retirement System as of June 30, 1985,
703		-	and for inspectors of the State Board of Pharmacy who became members
704		-	of the System on July 1, 1986, any service credited under the
705	672		Oklahoma Public Employees Retirement System as of June 30, 1986, for
706	673		law enforcement officers of the Oklahoma Capitol Patrol Division of
707	674		the Department of Public Safety who became members of the System
708	675		effective July 1, 1993, any service credited under the Oklahoma
709	676		Public Employees Retirement System as of June 30, 1993, and for all
710	677		commissioned officers in the Gunsmith/Ammunition Reloader Division
711	678		of the Department of Public Safety who became members of th e System
712	679		effective July 1, 1994, any service credited under the Oklahoma
713	680		Public Employees Retirement System as of June 30, 1994, and for the
714	681		park managers or park supervisors of the Oklahoma Tourism and
715	682		Recreation Department who were employed in such a pos ition prior to
716	683		July 1, 1985, and who elect to become members of the System
717	684		effective September 1, 1996, any service transferred pursuant to
718	685		subsection C of Section 2 -309.6 of this title and any service
719	686		purchased pursuant to subsection B of Section 2 -307.2 of this title.
720	687		Effective August 5, 1993, an authorized leave of absence shall
721	688		include a period of absence pursuant to the Family and Medical Leave
722		-	Act of 1993; RBH No. 10296
723		-
724		-	SENATE FLOOR VERSION - HB1027 SFLR Page 15
725		-	(Bold face denotes Com mittee Amendments) 1
	689	+	Act of 1993;
	690	+	12. "Disability" means a physical or mental condition which, in
	691	+	the judgment of the Board, tot ally and presumably permanently
	692	+	prevents the member from engagi ng in the usual and customary duties
	693	+	of the occupation of the member and thereafter prevents the member
	694	+	from performing the duties of any occupation or service for which
	695	+	the member is qualified by reason of training, education or RBH No. 10296
	696	+	ENGR. H. B. NO. 1027 Page 15 1
726	697		2
727	698		3
728	699		4
729	700		5
730	701		6
731	702		7
732	703		8
733	704		9
734	705		10
735	706		11
736	707		12
737	708		13
738	709		14
739	710		15
740	711		16
741	712		17
742	713		18
743	714		19
744	715		20
745	716		21
746	717		22
747	718		23
748	719		24
749	720
750		-	12. "Disability" means a physical or mental condition which, in
751		-	the judgment of the Board, totally and presumably permanently
752		-	prevents the member from engaging in the usual and customary duties
753		-	of the occupation of the member and thereafter prevents the member
754		-	from performing the du ties of any occupation or service for which
755		-	the member is qualified by reason of training, education or
756	721		experience. A person is not under a disability when capable of
757	722		performing a service to the employer, regardless of occupation,
758	723		providing the salary of the employee is not diminished thereby;
759	724		13. "Limitation year" means the year used in applying the
760	725		limitations of Section 415 of t he Internal Revenue Code of 1986,
761	726		which year shall be the calendar year;
762	727		14. "Line of duty" means any action which a member whose
763	728		primary function is crime control or reduction or enforcement of the
764	729		criminal law is obligated or authorized by rule, regulations,
765	730		condition of employment or service, or law to perform including
766	731		those social, ceremonial or athletic functions to which the member
767	732		is assigned, or for which the member is compensated, by the agency
768	733		the member serves;
769	734		15. "Personal injury" or "injury" means any traumatic injury as
770	735		well as diseases which are caused by or result from such an injury,
771	736		but not occupational diseases;
772	737		16. "Catastrophic nature" means consequences of an injury tha t
773		-	permanently prevent an individual from performing any gainful work; RBH No. 10296
774		-
775		-	SENATE FLOOR VERSION - HB1027 SFLR Page 16
776		-	(Bold face denotes Com mittee Amendments) 1
	738	+	permanently prevent an individual from performing any gainful work;
	739	+	17. "Traumatic injury" means a wound or a condition of the body
	740	+	caused by external force including injuries inflicted by bullets,
	741	+	explosives, sharp instruments, blunt objects or other p hysical
	742	+	blows, chemicals, electricity, climatic conditions, inf ectious
	743	+	diseases, radiation and bacteria, but excluding stress and strain;
	744	+	and RBH No. 10296
	745	+	ENGR. H. B. NO. 1027 Page 16 1
777	746		2
778	747		3
779	748		4
780	749		5
781	750		6
782	751		7
783	752		8
784	753		9
785	754		10
786	755		11
787	756		12
788	757		13
789	758		14
790	759		15
791	760		16
792	761		17
793	762		18
794	763		19
795	764		20
796	765		21
797	766		22
798	767		23
799	768		24
800	769
801		-	17. "Traumatic injury" means a wound or a condition of the body
802		-	caused by external force including injuries inflicted by bullets,
803		-	explosives, sharp instruments, blunt objects or other physical
804		-	blows, chemicals, electr icity, climatic conditions, infectious
805		-	diseases, radiation and bacteria, but excluding stress and strain;
806		-	and
807	770		18. "Beneficiary" means the individual designated by the member
808	771		on a beneficiary designation form supplied by the Oklahoma Law
809	772		Enforcement Retirement System, or, if there is no designated
810	773		beneficiary or if the designated beneficiary predeceases the member,
811	774		the estate of the member. If the member 's spouse is not designated
812	775		as the sole primary beneficiary, the member 's spouse must sign a
813	776		consent.
814	777		SECTION 2. AMENDATORY 47 O.S. 2021, Section 2 -304, is
815	778		amended to read as follows:
816	779		Section 2-304. A. The Department of Public Safety, the
817	780		Oklahoma State Bureau of Investigation, the Oklahoma State B ureau of
818	781		Narcotics and Dangerous Drugs Control, the Alcoholic Beverage
819	782		Control Board, the Oklahoma Tourism and Recreation Department and
820	783		the State Board of Pharmacy shall make contributions to the fund as
821	784		follows:
822	785		The Department of Public Safety, Oklahoma State Bureau of
823	786		Investigation, Oklahoma State Bureau of Narcoti cs and Dangerous
824		-	Drugs Control, the Alcoholic Beverage Control Board, the Oklahoma RBH No. 10296
825		-
826		-	SENATE FLOOR VERSION - HB1027 SFLR Page 17
827		-	(Bold face denotes Com mittee Amendments) 1
	787	+	Drugs Control, the Alcoholic Beverage Control Board, the Oklahoma
	788	+	Tourism and Recreation Department and the State Board of Pharmacy
	789	+	Participating employers shall contribute to the fund an amount equal
	790	+	to eleven percent (11%) of the actual paid base salary of each
	791	+	member. RBH No. 10296
	792	+	ENGR. H. B. NO. 1027 Page 17 1
828	793		2
829	794		3
830	795		4
831	796		5
832	797		6
833	798		7
834	799		8
835	800		9
836	801		10
837	802		11
838	803		12
839	804		13
840	805		14
841	806		15
842	807		16
843	808		17
844	809		18
845	810		19
846	811		20
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848	813		22
849	814		23
850	815		24
851	816
852		-	Tourism and Recreation Department and the S tate Board of Pharmacy
853		-	Participating employers shall contribute to the fund an amount equal
854		-	to eleven percent (11%) of the actual paid base salary of each
855		-	member.
856	817		B. Each member of the System shall make contributions to the
857	818		fund in an amount equal to eight percent (8%) of the actual paid
858	819		base salary of the member.
859	820		Member contributions shall be deducted by each participating
860	821		employer for such benefits as the Board is by law authorized to
861	822		administer and shall be remitted monthly, or as the Board may
862	823		otherwise provide, for deposit in the fund.
863	824		C. Each employer shall pick up under the provisions of Section
864	825		414(h)(2) of the Internal Revenue Code of 1986 and pay the
865	826		contribution which the member is required by law to make to the
866	827		System for all compensation earned after December 31, 1989.
867	828		Although the contributions so picked up are designated as member
868	829		contributions, such contributions sha ll be treated as contributions
869	830		being paid by the employer in lieu of contributions by the member in
870	831		determining tax treatment under the Internal Revenue Code of 1986
871	832		and such picked up contribu tions shall not be includable in the
872	833		gross income of the member until such amounts are distributed or
873	834		made available to the member or the beneficiary of the member. The
874		-	member, by the terms of this System, shall not have any option to RBH No. 10296
875		-
876		-	SENATE FLOOR VERSION - HB1027 SFLR Page 18
877		-	(Bold face denotes Com mittee Amendments) 1
	835	+	member, by the terms of this System, shall not have any option to
	836	+	choose to receive th e contributions so picked up directly and the
	837	+	picked up contributions must be paid by the employer to the System.
	838	+	Member contributions which are picked up shall be treated in the
	839	+	same manner and to the same extent as member contributions made
	840	+	prior to the date on which member contributions were picked up by RBH No. 10296
	841	+	ENGR. H. B. NO. 1027 Page 18 1
878	842		2
879	843		3
880	844		4
881	845		5
882	846		6
883	847		7
884	848		8
885	849		9
886	850		10
887	851		11
888	852		12
889	853		13
890	854		14
891	855		15
892	856		16
893	857		17
894	858		18
895	859		19
896	860		20
897	861		21
898	862		22
899	863		23
900	864		24
901	865
902		-	choose to receive the contributions so picked up dir ectly and the
903		-	picked up contributions must be paid by the employer to the System.
904		-	Member contributions which are picked up shall be treated in the
905		-	same manner and to the same extent as member contributions made
906		-	prior to the date on which member contributions were picked up by
907	866		the participating employer. Member contributions so picked up shall
908	867		be included in gross salary for purposes of determining benefits and
909	868		contributions under the System.
910	869		The employer shall pay the member contributions from the same
911	870		source of funds used in paying sal ary to the member, by effecting an
912	871		equal cash reduction in gross salary of the member.
913	872		SECTION 3. AMENDATORY 47 O.S. 2021, Section 2 -307.2, is
914	873		amended to read as follo ws:
915	874		Section 2-307.2. A. The total service credit of a member who
916	875		retires, elects a Deferred Option Plan or terminates employment and
917	876		elects a vested benefit shall include not to exceed one hundred
918	877		thirty (130) days of unused sick leave accumulated while a member of
919	878		the System. Effective July 1, 2008, a member who r etires, elects a
920	879		Deferred Option Plan or terminates employment and elects a vested
921	880		benefit shall include not to exceed two hundred forty (240) days of
922	881		unused sick leave accumulated while a memb er of the System. Such
923	882		credit shall be added in terms of whole months. Twenty (20) days of
924	883		unused sick leave shall equal one (1) month for purposes of service
925		-	credit. If unused sick leav e entitles a member to an additional RBH No. 10296
926		-
927		-	SENATE FLOOR VERSION - HB1027 SFLR Page 19
928		-	(Bold face denotes Com mittee Amendments) 1
	884	+	credit. If unused sick leave entitles a member to an additional
	885	+	year or fraction thereof of se rvice credit, the member 's employer
	886	+	shall reimburse the System for the cost of funding the additional
	887	+	reserve by paying the amount determined by the Board pursuant to
	888	+	Section 25 of this act. Each employer shall provide the System with
	889	+	adequate and timely information necessary to determine additional RBH No. 10296
	890	+	ENGR. H. B. NO. 1027 Page 19 1
929	891		2
930	892		3
931	893		4
932	894		5
933	895		6
934	896		7
935	897		8
936	898		9
937	899		10
938	900		11
939	901		12
940	902		13
941	903		14
942	904		15
943	905		16
944	906		17
945	907		18
946	908		19
947	909		20
948	910		21
949	911		22
950	912		23
951	913		24
952	914
953		-	year or fraction thereof of service credit, the member 's employer
954		-	shall reimburse the System for the cost of funding the additional
955		-	reserve by paying the amount determined by the Board pursuant to
956		-	Section 25 of this act . Each employer shall provide the System with
957		-	adequate and timely information necessary to determine additional
958	915		benefits and its cost under this section. This section shall apply
959	916		to members retiring or vesting on or after July 1, 1985, and shall
960	917		not be retroactive. The amount of accrued sick leave available for
961	918		determination of a member's monthly benefit for purposes of the
962	919		deferred option election shall be limited to the accrued sick leave
963	920		available as of the effective date of the deferred option election,
964	921		but not to exceed two hundred forty (240) days. The member 's
965	922		monthly benefit determined as of the effective date of the deferred
966	923		option election shall not be adjusted for additional accrued sick
967	924		leave earned by the member after the deferred option election.
968	925		B. Whenever any member is unable to perform the member 's duties
969	926		because of sickness or temporary disability caused or sust ained
970	927		while in the discharge of the member 's duty as a member, is
971	928		receiving a temporary total disability benefit under Section 1 et
972	929		seq. of Title 85A of the Oklahoma Statutes, and does not purc hase
973	930		service credit as described below, such member shall only receive
974	931		prorated service credit based on the contributions made by the
975	932		member and the member 's employer while the member is receiving a
976		-	temporary total disability benefit under Section 1 et seq. of Title RBH No. 10296
977		-
978		-	SENATE FLOOR VERSION - HB1027 SFLR Page 20
979		-	(Bold face denotes Com mittee Amendments) 1
	933	+	temporary total disability benefit under Section 1 et seq . of Title
	934	+	85A of the Oklahoma Statutes. Whenever any member i s unable to
	935	+	perform the member's duties because of sickness or temporary
	936	+	disability caused or sustained while in the discharge of the
	937	+	member's duty as a member and is receiving a temporary disa bility
	938	+	benefit under Section 1 et seq. of Title 85A of the Oklahoma RBH No. 10296
	939	+	ENGR. H. B. NO. 1027 Page 20 1
980	940		2
981	941		3
982	942		4
983	943		5
984	944		6
985	945		7
986	946		8
987	947		9
988	948		10
989	949		11
990	950		12
991	951		13
992	952		14
993	953		15
994	954		16
995	955		17
996	956		18
997	957		19
998	958		20
999	959		21
1000	960		22
1001	961		23
1002	962		24
1003	963
1004		-	85A of the Oklahoma S tatutes. Whenever any member is unable to
1005		-	perform the member's duties because of sickness or temporary
1006		-	disability caused or sustained while in the discharge of the
1007		-	member's duty as a member and is receiving a temporary disability
1008		-	benefit under Section 1 et seq. of Title 85A of the Oklahoma
1009	964		Statutes, such member shall have the option to purchase service
1010	965		credit for the time related to such leave of absence for such
1011	966		sickness or temporary disability.
1012	967		1. The payment for such pur chase must be completed no later
1013	968		than three (3) years from the date the member commenced receipt of a
1014	969		temporary total disability benefit.
1015	970		2. The purchase price shall be:
1016	971		a. the actual paid base salary that the member was
1017	972		entitled to immediately prior to t he member's sickness
1018	973		or temporary disability minus any vacation or sick
1019	974		leave payments received by the member during such
1020	975		sickness or temporary disability, multiplied by,
1021	976		b. the following percent, as applicable:
1022	977		(1) eighteen percent (18%) the combined employer and
1023	978		member contribution percentages, pursuant to
1024	979		Section 2-304 of this title, for members who are
1025	980		suspended without pay, or
1026	981		(2) eight percent (8%) the member contribution
1027		-	percentage, pursuant to Section 2 -304 of this RBH No. 10296
1028		-
1029		-	SENATE FLOOR VERSION - HB1027 SFLR Page 21
1030		-	(Bold face denotes Com mittee Amendments) 1
	982	+	percentage, pursuant to Section 2 -304 of this
	983	+	title, for members who are not sus pended without
	984	+	pay.
	985	+	If such member has not been suspended without pay, the employer
	986	+	shall contribute, within three (3) months of the completion of the
	987	+	member's purchase of service credit, ten percent (10%) of the RBH No. 10296
	988	+	ENGR. H. B. NO. 1027 Page 21 1
1031	989		2
1032	990		3
1033	991		4
1034	992		5
1035	993		6
1036	994		7
1037	995		8
1038	996		9
1039	997		10
1040	998		11
1041	999		12
1042	1000		13
1043	1001		14
1044	1002		15
1045	1003		16
1046	1004		17
1047	1005		18
1048	1006		19
1049	1007		20
1050	1008		21
1051	1009		22
1052	1010		23
1053	1011		24
1054	1012
1055		-	title, for members who are not suspended without
1056		-	pay.
1057		-	If such member has not been suspended without pay, the employer
1058		-	shall contribute, within three (3) months of the completion of the
1059		-	member's purchase of service credit, ten percent (10%) of the
1060	1013		employer contribution percentage, pursuant to Section 2-304 of this
1061	1014		title, times the actual paid base sala ry that the member was
1062	1015		entitled to immediately prior to the member 's sickness or temporary
1063	1016		disability minus any vacation or sick leave payments received by the
1064	1017		member during such sickness or te mporary disability.
1065	1018		3. The member may purchase such service credit through:
1066	1019		a. a cash lump-sum payment,
1067	1020		b. a trustee-to-trustee transfer of non -Roth funds from a
1068	1021		Code Section 403(b) annuity or custodial account, an
1069	1022		eligible deferred compensation plan desc ribed in Code
1070	1023		Section 457(b) which is maintained by an eligible
1071	1024		employer described in Code Section 457(e)(1)(A),
1072	1025		and/or a Code Section 401(a) qualified plan,
1073	1026		c. a direct rollover of tax -deferred funds from a Code
1074	1027		Section 403(b) annuity or custodial account , an
1075	1028		eligible deferred compensation plan described in Code
1076	1029		Section 457(b) which is maintained by an eligible
1077	1030		employer described in Code Section 457(e)(1)(A), a
1078		-	Code Section 401(a) qualified plan, and/or a Code RBH No. 10296
1079		-
1080		-	SENATE FLOOR VERSION - HB1027 SFLR Page 22
1081		-	(Bold face denotes Com mittee Amendments) 1
	1031	+	Code Section 401(a) qualified plan, and/or a Code
	1032	+	Section 408(a) or 408(b) traditional or condui t
	1033	+	Individual Retirement Account or Annuity (IRA). Roth
	1034	+	accounts, Coverdell Education Savings Accounts and
	1035	+	after-tax contributions shall not be used to purchase
	1036	+	such service credit, or RBH No. 10296
	1037	+	ENGR. H. B. NO. 1027 Page 22 1
1082	1038		2
1083	1039		3
1084	1040		4
1085	1041		5
1086	1042		6
1087	1043		7
1088	1044		8
1089	1045		9
1090	1046		10
1091	1047		11
1092	1048		12
1093	1049		13
1094	1050		14
1095	1051		15
1096	1052		16
1097	1053		17
1098	1054		18
1099	1055		19
1100	1056		20
1101	1057		21
1102	1058		22
1103	1059		23
1104	1060		24
1105	1061
1106		-	Section 408(a) or 408(b) traditional or conduit
1107		-	Individual Retirement Account or Annuity (IRA). Roth
1108		-	accounts, Coverdell Education Savings Accounts and
1109		-	after-tax contributions shall not be used to purchase
1110		-	such service credit, or
1111	1062		d. any combination of the above methods of payment.
1112	1063		SECTION 4. It being immediately necessary for the preservation
1113	1064		of the public peace, health or safety, an emergency is hereby
1114	1065		declared to exist, by reason whereof this act shall take effect and
1115	1066		be in full force from and after its passage and approval.
1116		-	COMMITTEE REPORT BY: COMMITTEE ON RETIR EMENT AND GOVERNMENT
1117		-	RESOURCES
1118		-	April 8, 2025 - DO PASS
	1067	+	Passed the House of Representatives the 13th day of March, 2025.
	1068	+
	1069	+
	1070	+
	1071	+
	1072	+	Presiding Officer of the House
	1073	+	of Representatives
	1074	+
	1075	+
	1076	+	Passed the Senate the ____ day of __________, 2025.
	1077	+
	1078	+
	1079	+
	1080	+
	1081	+	Presiding Officer of the Senate
	1082	+
	1083	+