Oklahoma 2025 2025 Regular Session

Oklahoma House Bill HB1091 Amended / Bill

Filed 03/06/2025

                    RBH No. 13157 
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HOUSE OF REPRESENTATIVES - FLOOR VERSION 
 
STATE OF OKLAHOMA 
 
1st Session of the 60th Legislature (2025) 
 
COMMITTEE SUBSTITUTE 
FOR 
HOUSE BILL NO. 1091 	By: Kelley of the House 
 
   and 
 
  Gollihare of the Senate 
 
 
 
 
 
COMMITTEE SUBSTITUTE 
 
An Act relating to retirement; amending 11 O.S. 2021, 
Sections 49-100.1, as amended by Section 2, Chapter 
232, O.S.L. 2022 (11 O.S. Supp. 2024, Section 49 -
100.1), 49-113, 49-117.1, as amended by Section 7, 
Chapter 232, O.S.L. 2022 (11 O.S. Supp. 2024, Section 
49-117.1), 49-117.3, 49-138, as amended by Section 2, 
Chapter 247, O.S.L. 2024 (11 O.S. Supp. 2024, Section 
49-138), which relate to the Oklahoma Firefighters 
Pension and Retirement System; defining term; 
modifying provisions related to death benefits; 
specifying which contributions member is to be 
refunded; modifying provisions relating to repayment 
of contributions; authorizing member to make certain 
repayment; authorizing amortized payment if permitted 
by State Board; directing the State Board to 
promulgate rules or procedures; providing that member 
may purchase transferred credited services; providing 
procedures; providing limitations; providing 
exception; modifying how payments may be made; 
updating reference; providing limitation on purchase 
of military service credit; providing limitation on 
purchase of credited service; providing for purchase 
of military service credit; providing requirements to 
purchase such credit; providing restrictions; 
permitting volunteer members to purchase military 
service credit; requiring payment to be received  RBH No. 13157 
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prior to commencement of benefits; providing for 
codification; and declaring an emergency. 
 
 
 
 
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: 
SECTION 1.     AMENDATORY     11 O.S. 2021, Sectio n 49-100.1, as 
amended by Section 2, Chapter 232, O.S.L. 2022 (11 O.S. Supp. 2024, 
Section 49-100.1), is amended to read as follows: 
Section 49-100.1.  As used in this article: 
1.  "System" means the Oklahoma Firefighters Pension and 
Retirement System and all predecessor municipal firefighters pension 
and retirement systems; 
2.  "Article" means Article 49 of this title; 
3.  "State Board" means the Oklahoma Firefighters Pension and 
Retirement Board; 
4.  "Local board" means the local firefighters pension and 
retirement boards; 
5.  "Fund" means the Oklahoma Firefighters Pension and 
Retirement Fund; 
6.  "Member" means all eligible firefighters of a participating 
municipality or a fire protection district who perform the essential 
functions of fire suppression, p revention, and life safety duties in 
a fire department.  The term "member" shall include but not be 
limited to the person serving as fire chief of any participating 
municipality, provided that a person serving as fire chief of a  RBH No. 13157 
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participating municipality shall meet the age, agility, physical and 
other eligibility requirements required by law at the time said 
person becomes a member of the System.  Effective July 1, 1987, a 
member does not include a "leased employee".  The term "leased 
employee" means any p erson (other than an employee of the recipient) 
who pursuant to an agreement between the recipient and any other 
person ("leasing organization") has performed services for the 
recipient (or for the recipient and related persons determined in 
accordance with Section 414(n)(6) of the Internal Revenue Code of 
1986, as amended) on a substantially full -time basis for a period of 
at least one (1) year, and such services are performed under primary 
direction or control by the recipient.  Contributions or benefits 
provided a leased employee by the leasing organization which are 
attributable to services performed for the recipient employer shall 
be treated as provided by the recipient employer.  A leased employee 
shall not be considered an employee of the recipient i f the 
requirements of the safe harbor provisions of Section 414(n)(5) of 
the Internal Revenue Code of 1986, as amended, are satisfied.  
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;  RBH No. 13157 
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7.  "Normal retirement date" means the date at which the member 
is eligible to receive the unreduced payments of the member's 
accrued retirement benefit.  Such date shall be the first day 
following the date the member completes 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 following the date 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 predeces sor 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; provided, however, "credited service" 
for members from a fire protection district shall not begin accruing 
before July 1, 1982; 
9.  "Participating municipality" means a municipality, county 
fire department organized pursuant to subsection D of Section 351 of 
Title 19 of the Oklahoma S tatutes, or fire protection district which 
is making contributions to the System on behalf of its firefighters.   RBH No. 13157 
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All participating municipalities shall appoint a fire chief who 
shall supervise and administer the fire department; 
10.  "Disability" means the complete inability of the 
firefighter to perform any and every duty of the firefighter's 
regular occupation; provided further, that once benefits have been 
paid for twenty-four (24) months the provisions of Section 49 -110 of 
this title shall apply to the firefighter; 
11.  "Executive Director" means the managing officer of the 
System employed by the State Board; 
12.  "Eligible employer" means any municipality with a municipal 
fire department, any county fire department organized pursuant to 
subsection D of Section 351 of Title 19 of the Oklahoma Statutes or 
any fire protection district with an organized fire department; 
13.  "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; 
14.  "Final average salary" means the average paid gross salary 
of the firefighter for normally scheduled hours over the highest 
salaried thirty (30) consecutive months of the last sixty (60) 
months of credited service.  Gross salary shall not include payment 
for accumulated sick or annual leave upon termination of employment, 
any uniform allowances or any other compensation for reimbursement 
of out-of-pocket expenses.  Only salary on which the required 
contributions have been made may be u sed in computing the final  RBH No. 13157 
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average salary.  Effective January 1, 1988, gross salary shall 
include any amount of elective salary reduction under Section 125 of 
the Internal Revenue Code of 1986, as amended.  Gross salary shall 
include any amount of elective salary reduction under Section 457 of 
the Internal Revenue Code of 1986, as amended, and any amount of 
nonelective salary reduction under Section 414(h) of the Internal 
Revenue Code of 1986, as amended.  Effective July 1, 1998, for 
purposes of determining a member's compensation, any contribution by 
the member to reduce the member's regular cash remuneration under 
Section 132(f)(4) of the Internal Revenue Code of 1986, as amended, 
shall be treated as if the member did not make such an election.  
Only salary on which required contributions have been made may be 
used in computing final average salary. 
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 ann ual gross salary of each "Noneligible 
Member" taken into account under the System shall not exceed the 
Economic Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA") 
annual salary limit.  The EGTRRA annual salary 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 salary limit in effect for a calendar year applies to any 
period, not exceeding twelve (12) months, over which salary is  RBH No. 13157 
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determined ("determination period") beginning in such calendar year.  
If a determination period consists of fewer than twelve (12) months, 
the EGTRRA salary limit will be multiplied by a fraction, the 
numerator of which is the number of months in the determination 
period, and the denominator of which is twelve (12).  For purposes 
of this subsection, a "Noneligible Member" is any member who first 
became a member during a plan year commencing on or after Jul y 1, 
1996. 
For plan years beginning on or after July 1, 2002, any reference 
to the annual salary limit under Section 401(a)(17) of the Internal 
Revenue Code of 1986, as amended, shall mean the EGTRRA salary limit 
set forth in this subsection. 
Effective June 9, 2010, gross salary shall also include gross 
salary, as described above, for services, but paid by the later of 
two and one-half (2 1/2) months after a firefighter's severance from 
employment or the end of the calendar year that includes the date 
the firefighter terminated employment, if it is a payment that, 
absent a severance from employment, would have been paid to the 
firefighter while the firefighter continued in employment with the 
participating municipality. 
Effective June 9, 2010, any payments n ot described above shall 
not be considered gross 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  RBH No. 13157 
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end of the calendar year that 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 
service. 
Effective June 9, 2010, back pay, within the meaning of Section 
1.415(c)-2(g)(8) of the Income Tax Regulations, shall be treated as 
gross salary for the 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. 
Effective for years beginning after December 31, 2008, gross 
salary shall also include differential wage payments under Section 
414(u)(12) of the Internal Revenue Code of 1986, as amended; 
15.  "Accrued retirement bene fit" means two and one -half percent 
(2 1/2%) of the firefighter's final average salary multiplied by the 
member's years of credited service not to exceed thirty (30) years; 
16.  "Beneficiary" means a member's surviving spouse or any 
surviving children, inc luding biological and adopted children, at 
the time of the member's death.  The surviving spouse must have been 
married to the firefighter for the thirty (30) continuous months  RBH No. 13157 
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preceding the firefighter's death provided a surviving spouse of a 
member who died while in, or as a consequence of, the performance of 
the member's duty for a participating municipality, shall not be 
subject to the marriage limitation 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 and regularly attending a public 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 performanc e 
of the member's duty as a firefighter shall not be subject to the 
thirty-month adoption requirement.  This definition of beneficiary 
shall be in addition to any other requirement set forth in this 
article; 
17.  "Contributions" means payments remitted to the System 
pursuant to Section 49 -122 or subsection A of Section 49 -138 of this 
title.  Contributions shall not include payments made to repurchase 
credited service pursuant to Section 49 -117.1 of this title, 
payments made to transfer credited service from another retirement 
system pursuant to subsection A of Section 49 -117.2 or Section 49-
117.3 of this title, or payments made to purchase prior military  RBH No. 13157 
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service credit pursuant to subsection E of Section 49 -138 of this 
title; 
18. "Accumulated contributions" means the sum of all 
contributions made by a member to the System and includes both 
contributions deducted from the compensation of a member and 
contributions of a member picked up and paid by the participating 
municipality of the member.  Accumulated con tributions shall not 
include any interest on the contributions of the member, interest on 
any amount contributed by the municipality or state and any amount 
contributed by the municipality or state; and 
18. 19. "Limitation year" means the year used in app lying the 
limitations of Section 415 of the Internal Revenue Code of 1986, 
which year shall be the calendar year. 
SECTION 2.     AMENDATORY     11 O.S. 2021, Section 49 -113, is 
amended to read as follows: 
Section 49-113.  A.  1.  In the e vent of the death of a 
firefighter who at the time of the firefighter's death was drawing a 
pension, other than a disability pension, or who at the time of the 
firefighter's death (whether death occurred while on duty, but not 
in or in consequence of the p erformance of duty, or while on 
vacation or off duty) was eligible, upon written request, to retire 
and draw a pension, other than a disability pension, the beneficiary 
of such person shall be paid an amount not to exceed one hundred 
percent (100%) of said pension.  RBH No. 13157 
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2.  In the event of the death of a firefighter who at the time 
of the firefighter's death was drawing, or eligible to draw, a 
disability pension for a physical or mental disability that occurred 
while in, or in consequence of, the performance of the firefighter's 
duty, and which prevented the effective performance of the 
firefighter's duties, and which caused the State Board to retire the 
firefighter from active service, the beneficiary of such person 
shall be paid an amount not to exceed one hund red percent (100%) of 
the pension paid in accordance with subsection A of Section 49 -109 
of this title. 
3.  In the event of the death of a firefighter who at the time 
of the firefighter's death was drawing, or eligible to draw, a 
disability pension for a p hysical or mental disability from causes 
not arising in the line of duty and which prevented the effective 
performance of the firefighter's duties, the beneficiary of such 
person shall be paid an amount not to exceed one hundred percent 
(100%) of the pension paid in accordance with subsection C of 
Section 49-109 of this title. 
4.  Effective March 1, 1997, if If a firefighter, who does not 
have a surviving beneficiary, and to whom a retirement or disability 
benefit has been awarded, or who is eligible theref ore, dies or, if 
later, the last surviving beneficiary dies, prior to the date as of 
which the total amount of retirement or disability benefit paid 
equals the total amount of the employee contributions paid by or on  RBH No. 13157 
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behalf of the member and the member doe s not have a surviving 
beneficiary, the total benefits paid as of the date of the member's 
death shall be subtracted from the accumulated employee contribution 
amount and the balance, if greater than Zero Dollars ($0.00), shall 
be paid to the member's esta te receiving payments equal to or 
greater than the total contributions made by the employee, as 
defined in the next sentence, then a payment shall be made to the 
member's estate or, if applicable, the last surviving beneficiary's 
estate equal to the total contributions made by the employee minus 
the payments made including payments made, or to be made, from the 
Deferred Option Plan but excluding the death benefit pursuant to 
Section 49-113.2 of this title.  The total contributions made by the 
employee for purposes of the prior sentence shall mean the sum of: 
a. the member's accumulated contributions, 
b. payments made to repurchase credited service pursuant 
to Section 49-117.1 of this title, 
c. payments made to transfer credited service from 
another retirement system pursuant to subsection A of 
Section 49-117.2 or Section 49-117.3 of this title, 
and 
d. payments made to purchase prior military service 
credit pursuant to subsection E of Section 49 -138 of 
this title.  RBH No. 13157 
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Total contributions, as used in this paragraph , shall exclude 
interest earned or paid with respect to any contribution or payment 
described in subparagraphs a through d of this paragraph . 
5.  Any person eligible to receive a payment pursuant to this 
section may make an election to waive all or a porti on of monthly 
payments. 
B.  In the event of the death of the surviving spouse, the 
pension shall cease, and should there then be but one living child 
same shall receive an amount equal to one hundred percent (100%) of 
said pension, but if there then be mor e than one living child, one 
hundred percent (100%) of said pension shall be divided equally 
between the children until each child reaches the age of eighteen 
(18) years or until the age of twenty -two (22) years if the child is 
enrolled full time and regul arly attending a public or private 
school or any institution of higher education.  Provided, that in 
the event the State Board finds that such a child who is not married 
at the time of death of the member or the member's surviving spouse 
and who at the time the child attains or attained the age of 
eighteen (18) years is either physically or mentally disabled, the 
pension thereof shall continue so long as such disability remains; 
provided, that upon the death of the firefighter and surviving 
spouse, if any, said physically or mentally disabled child shall be 
entitled to have paid to the child's trustee of a trust, whether 
inter vivos or testamentary, which trust provides for the receipt of  RBH No. 13157 
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the pension benefits to be held and administered for the sole 
benefit of said physically or mentally disabled child, or if there 
is no trust, to the child's legally appointed guardian, an amount 
not to exceed one hundred percent (100%) of said pension.  The money 
so paid to the guardian or trustee shall be used solely for th e 
benefit of the disabled child and it shall be reported annually to 
the State Board.  A child shall not be considered disabled if the 
child is able to pursue a remunerative occupation, with the 
remuneration being reasonably substantial rather than merely 
nominal.  The payment so provided shall be calculated after payments 
have been made to all eligible children as provided in this section; 
provided further, that beneficiaries now receiving pensions under 
the provisions of Sections 49 -112 or 49-113 of this title shall, 
upon application to the State Board, thereafter be entitled to a 
pension equal to the amount which they would have received if this 
act were in effect at the time the right to said pension accrued. 
C.  In the event a surviving spouse of a memb er remarried prior 
to June 7, 1993, the surviving spouse shall be eligible to receive 
the pension benefits provided for in this section.  To receive the 
pension benefits provided for in this section the surviving spouse 
falling within this section shall su bmit a written request for such 
benefits to the Oklahoma Firefighters Pension and Retirement System.  
The Oklahoma Firefighters Pension and Retirement System shall 
approve requests by surviving spouses meeting the requirements of  RBH No. 13157 
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this section.  Upon approv al by the Oklahoma Firefighters Pension 
and Retirement System, the surviving spouse shall be entitled to the 
pension benefits provided for in this section beginning from the 
date of approval forward.  Pension benefits provided to surviving 
spouses falling within this section shall not apply to alter any 
amount of pension benefits paid or due prior to the Oklahoma 
Firefighters Pension and Retirement System's approval of the 
remarried surviving spouse's written request for benefits. 
D.  No surviving spouse sh all receive benefits from this 
section, Section 50-117 of this title, or Section 2 -306 of Title 47 
of the Oklahoma Statutes as the surviving spouse of more than one 
member of the Oklahoma Firefighters Pension and Retirement System, 
the Oklahoma Police Pens ion and Retirement System, or the Oklahoma 
Law Enforcement Retirement System.  The surviving spouse of more 
than one member shall elect which member's benefits he or she will 
receive. 
E.  Upon the death of a retired member, the benefit payment for 
the month in which the retired member died, if not previously paid, 
shall be made to the beneficiary of the member or to the member's 
estate if there is no beneficiary.  Such benefit payment shall be 
made in an amount equal to a full monthly benefit payment regard less 
of the day of the month in which the retired member died. 
F.  Upon the death of an unmarried firefighter, or a firefighter 
whose spouse does not meet the qualifications of beneficiary who has  RBH No. 13157 
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one or more children, said child or children shall receive pension 
benefits as provided in subsection B of this section as if the 
surviving spouse had died; provided, that upon the death of the 
firefighter, said child or children shall be entitled to have the 
System pay to the child's or children's trustee of a tr ust, whether 
inter vivos or testamentary, which trust provides for the receipt of 
the pension benefits to be held and administered for the sole 
benefit of said child, or if there is no trust, to the child's or 
children's legally appointed guardian, the pen sion benefits as 
provided in subsection B of this section in an amount not to exceed 
one hundred percent (100%) of said pension.  The money so paid to 
the guardian or trustee shall be used solely for the benefit of the 
child and it shall be reported annual ly to the State Board. 
SECTION 3.     AMENDATORY     11 O.S. 2021, Section 49 -117.1, as 
amended by Section 7, Chapter 232, O.S.L. 2022 (11 O.S. Supp. 2024, 
Section 49-117.1), is amended to read as follows: 
Section 49-117.1.  A.  A member who terminates service before 
normal retirement date, other than by death or disability shall, 
upon application filed with the State Board, be refunded from the 
Fund an amount equal to the accumulated sum of: 
1.  Accumulated contributions the member has ma de to the Fund, 
but excluding any interest or ; 
2.  Payments made to repurchase credited service pursuant to 
this section;  RBH No. 13157 
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3.  Payments made to transfer credited service from another 
retirement system pursuant to subsection A of Section 49 -117.2 or 
Section 49-117.3 of this title; and 
4.  Payments made to purchase prior military service credit 
pursuant to subsection E of Section 49 -138 of this title. 
A refund made pursuant to this paragraph shall exclude interest 
earned or paid with respect to any contributio n or payment described 
in subparagraphs 1 through 4 of this subsection, and any amount 
contributed by the municipality or state , and interest earned with 
respect to such contributed amount . 
B.  If a member has completed ten (10) years of credited service 
at the date of termination, the member may elect a vested benefit in 
lieu of receiving the member's accumulated contributions refund 
described in subsection A of this section . 
C.  If the member who has completed ten (10) or more years of 
credited service as prescribed by subsection B of this section 
elects 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 not to exceed thirty (30) years.   RBH No. 13157 
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The death benefits provided for in Section 49 -113.2 of this title 
shall not apply to any member retiring under the provisions of this 
section. 
D.  If a member who terminated employment and elected , or was 
eligible to elect, a vested benefit dies prior to being eligible to 
receive benefits, the member's beneficiary, as defined in paragraph 
16 of Section 49-100.1 of this title, shall be entitled to the 
member's normal monthly retirement benefit on th e date the deceased 
member would have been eligible to receive the benefit. 
E.  If a member terminates employment and withdraws the member's 
accumulated contributions and then subsequently rejoins the System, 
he may pay to the System the sum of the accumul ated contributions he 
has withdrawn plus five percent (5%) ten percent (10%) annual 
interest from the date of withdrawal to the date of repayment and 
shall receive the same benefits as if he had never withdrawn his 
contributions; however, effective January 1, 1991, the rate of 
interest provided herein shall be ten percent (10%) per annum . 
F.  Lump-sum payments for repayment of any amounts received 
because of a member's prior termination with interest may be repaid 
by a trustee-to-trustee transfer of non -Roth funds from a Code 
Section 403(b) annuity, a governmental Code Section 457 plan, and/or 
a Code Section 401(a) qualified plan Members may make the repayment 
described in subsection E of this section in cash by a trustee -to-
trustee transfer or direct rollov er of non-Roth funds from a Code  RBH No. 13157 
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Section 403(b) annuity or custodial account, an eligible deferred 
compensation plan described in Code Section 457(b) which is 
maintained by an eligible employer described in Code Section 
457(e)(1)(A), a Code Section 401(a) qualified plan, or a combination 
thereof, provided that after -tax funds in retirement plans shall not 
be used to make a repayment . 
G.  In the event the member does not pay the purchase price in 
whole or part pursuant to subsection F of this section, the St ate 
Board may permit the member to pay the remaining purchase price in 
cash by certified check, to amortize the remaining purchase price 
over a period not to exceed sixty (60) months, or other method 
approved by the State Board.  Any amortized payments und er this 
subsection shall be made by payroll deductions on an after -tax basis 
and shall not be picked up by the member's employer.  The amortized 
payments shall include interest at a rate not to exceed the 
actuarially assumed interest rate adopted by the St ate Board for 
investment earnings each year.  Any member who ceases to make 
payment, terminates, retires, or dies before completing the payments 
provided for in this subsection shall receive prorated service 
credit for only those payments made, not includi ng interest, unless 
the unpaid balance, including interest, is paid by the member, the 
member's surviving spouse, the member's beneficiary, or the member's 
estate or successor in interest within ninety (90) days after the 
first to occur of said member's te rmination, retirement, or death;  RBH No. 13157 
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provided that no retirement benefits shall be payable until the 
earliest of the date the unpaid balance is paid in full or ninety 
(90) days after the first to occur of the member's termination, 
retirement, or death. 
H. A firefighter shall not be permitted to withdraw from the 
System while employed as a firefighter in a participating 
municipality. 
I.  The State Board shall promulgate such rules or procedures as 
are necessary to implement the provisions of this section. 
SECTION 4.     AMENDATORY     11 O.S. 2021, Section 49 -117.3, is 
amended to read as follows: 
Section 49-117.3.  A.  The State Board shall adopt rules or 
procedures for computation of the purchase price for transferred 
credited service.  These rules or procedures shall base the purchase 
price for each year purchased on the actuarial cost of the 
incremental projected benefits to be purchased.  The purchase price 
shall represent the present value of the incremental projected 
benefits discounted ac cording to the member's age at the time of 
purchase.  Incremental projected benefits shall be the difference 
between the projected benefit said member would receive without 
purchasing the transferred credited service and the projected 
benefit after purchas e of the transferred credited service computed 
as of the earliest age at which the member would be able to retire.  
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using interest and mortality assumptions consistent with the 
actuarial assumptions adopted by the Board of Trustees for purposes 
of preparing the annual actuarial evaluation. 
B.  In the event that the member is unable to pay the purchase 
price provided for in this section by the due date, the State Board 
shall permit the member s to amortize the purchase price over a 
period not to exceed sixty (60) months.  Said payments shall be made 
by payroll deductions unless the State Board permits an alternate 
payment source.  The amortization shall include interest in an 
amount not to exceed the actuarially assumed interest rate adopted 
by the State Board for investment earnings each year.  Any member 
who ceases to make payment, terminates, retires or dies before 
completing the payments provided for in this section shall receive 
prorated service credit for only those payments made, unless the 
unpaid balance is paid by said member, his or her estate or 
successor in interest within six (6) months after said member's 
death, termination of employment or retirement, provided no 
retirement benefits shall be payable until the unpaid balance is 
paid, unless said member or beneficiary affirmatively waives the 
additional six-month period in which to pay the unpaid balance.  The 
State Board shall promulgate such rules as are necessary to 
implement the provisions of this subsection A member wishing to 
purchase transferred credited service from another retirement system 
must be an active paid member at the time of purchase and must have  RBH No. 13157 
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been an active paid member for a minimum of thirty (30) months so as 
to establish an adequate salary history for the computation of the 
purchase price of transferred credited service.  Upon application by 
an eligible member to purchase transferred credited service, the 
State Board shall provide the member with a computation of the 
purchase price for transferred credited service.  The computed 
purchase price shall be good for ninety (90) days from the date the 
computed purchase price is provided to the member and, except as 
otherwise provided in subsection F of this section, m ust be paid 
within such ninety-day period.  After the expiration of the ninety -
day period without payment by the member, or payment commencing as 
provided in subsection F of this section, the member must reapply to 
purchase transferred credited service, a new purchase price must be 
computed and provided to the member by the State Board, and a new 
ninety-day period shall commence. 
C.  Transferred credited service shall be taken into account 
only if payment is received prior to the commencement of benefits, 
except as otherwise provided in subsection F of this section . 
C. D. Members who pay the purchase price in cash by the due 
date described in subsection B of this section may make payment by: 
1.  A trustee-to-trustee transfer of non -Roth funds from a Code 
Section 403(b) annuity or custodial account, an eligible deferred 
compensation plan described in Code Section 457(b) which is 
maintained by an eligible employer described in Code Section  RBH No. 13157 
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457(e)(1)(A), and/or a Code Section 401(a) qualified plan , provided 
that after-tax funds in retirement plans shall not be used to 
purchase transferred credited service ; or 
2.  A direct rollover of tax -deferred funds from a Code Section 
403(b) annuity or custodial account, an eligible deferred 
compensation plan described in Co de Section 457(b) which is 
maintained by an eligible employer described in Code Section 
457(e)(1)(A), a Code Section 401(a) qualified plan, and/or a Code 
Section 408(a) or 408(b) traditional or conduit Individual 
Retirement Account or Annuity (IRA) ., provided that Roth accounts, 
after-tax funds in retirement plans or IRAs, and Coverdell Education 
Savings Accounts shall not be used to purchase transferred credited 
service; or 
3.  Certified check. 
A combination of payment methods described in paragraphs 1 thr ough 3 
of this subsection may be used . 
The State Board shall promulgate such rules or procedures as are 
necessary to implement the provisions of this subsection. 
D. E. Members amortizing the purchase price and making 
amortized payments by payroll deductio n on an after-tax basis, 
pursuant to subsection F of this section, shall have the option of 
making a cash lump-sum payment for the balance of the actuarial 
purchase price with interest due through the date of payment by:  RBH No. 13157 
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1.  A trustee-to-trustee transfer of non-Roth funds from a Code 
Section 403(b) annuity or custodial account, an eligible deferred 
compensation plan described in Code Section 457(b) which is 
maintained by an eligible employer described in Code Section 
457(e)(1)(A), and/or a Code Section 401( a) qualified plan, provided 
that after-tax funds in retirement plans shall not be used to 
purchase transferred credited service ; or 
2.  A direct rollover of tax -deferred funds from a Code Section 
403(b) annuity or custodial account, an eligible deferred 
compensation plan described in Code Section 457(b) which is 
maintained by an eligible employer described in Code Section 
457(e)(1)(A), a Code Section 401(a) qualified plan, and/or a Code 
Section 408(a) or 408(b) traditional or conduit Individual 
Retirement Account or Annuity (IRA) ., provided that Roth accounts, 
after-tax funds in retirement plans or IRAs, and Coverdell Education 
Savings Accounts shall not be used to purchase transferred credited 
service.; or 
3.  Certified check. 
A combination of payment metho ds described in paragraphs 1 through 3 
of this subsection may be used. 
F.  In the event that the member does not pay the purchase price 
provided for in this section by the due date established in 
subsection B of this section as provided for in subsection D of this 
section, the State Board may permit the member to amortize the  RBH No. 13157 
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purchase price over a period not to exceed sixty (60) months or 
other method approved by the State Board.  Such amortized payments 
shall be made by payroll deductions on an after -tax basis and shall 
not be picked up by the member's employer.  The amortized payments 
shall include interest at a rate not to exceed the actuarially 
assumed interest rate adopted by the State Board for investment 
earnings each year.  Any member who ceases to m ake payment, 
terminates, retires or dies before completing the payments provided 
for in this section shall receive transferred, credited service 
prorated for only those payments made, not including interest, 
unless the unpaid balance, including interest, i s paid by the 
member, the member's surviving spouse, the member's beneficiary, or 
the member's estate or successor in interest within ninety (90) days 
of the first to occur of said member's termination, retirement, or 
death; provided that no retirement ben efits shall be payable until 
the earliest of the date the unpaid balance is paid in full or 
ninety (90) days after the first to occur of the member's 
termination, retirement, or death. 
G. The State Board shall promulgate such rules or procedures as 
are necessary to implement the provisions of this subsection 
section. 
SECTION 5.     AMENDATORY     11 O.S. 2021, Section 49 -138, as 
amended by Section 2, Chapter 247, O.S.L. 2024 (11 O.S. Supp. 2024, 
Section 49-138), is amended to read as foll ows:  RBH No. 13157 
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Section 49-138.  A.  Any member of a regularly constituted fire 
department of any municipality who is now serving or may hereafter 
serve in the Armed Forces of the United States whether such service 
is voluntary or involuntary, who shall have been a m ember of such 
fire department at the time of entering such service, shall be 
entitled to have the whole of the time of such service applied under 
the provisions of Section 49 -106 of this title, so far as the same 
applies to a service pension; provided furt her, that the 
municipality shall continue its payment into said pension fund, to 
the same force and effect as though the member were in the actual 
service of such fire department; provided, that any person who is 
eligible for such service but who shall hav e volunteered for 
military or naval service for a period not to exceed five (5) years 
shall likewise be entitled to all of the benefits of Sections 49 -138 
through 49-142 of this title for the full period of such service or 
enlistment; provided further, tha t only one such period of voluntary 
service shall be considered hereunder.  If such person shall 
reenlist, unless required to do so by law, such person shall not 
thereafter be entitled to the provisions of this subsection.  The 
provisions of this subsectio n shall not apply where any such person 
dies during the period of said service or enlistment, and shall not 
entitle the surviving spouse or children to any benefits, and shall 
not apply to any member who shall have served on active duty  RBH No. 13157 
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(including initial active duty) for training purposes only and/or 
inactive duty training. 
B.  Effective February 1, 1997, credited service received 
pursuant to this section or credited service for wartime military 
service received as otherwise provided by law shall be used i n 
determining the member's retirement benefit but shall not be used in 
determining years of service for retirement, vesting purposes or 
eligibility for participation in the Oklahoma Firefighters Deferred 
Option Plan.  For a member of the System hired on or after July 1, 
2003, if the military service credit authorized by this section is 
used to compute the retirement benefit of the member and the member 
retires from the System, such military service credit shall not be 
used to compute the retirement benefit in any other retirement 
system created pursuant to the Oklahoma Statutes and the member may 
receive credit for such service only in the retirement system from 
which the member first retires. 
C.  A member who retires or elects to participate in the 
Oklahoma Firefighters Deferred Option Plan on or after July 1, 1998, 
shall be entitled to prior service credit, not to exceed five (5) 
years, for those periods of military service on active duty prior to 
membership in the Oklahoma Firefighters Pension and Retireme nt 
System. 
For purposes of this subsection, "military service" means 
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discharged persons during the following time periods, as reflected 
on such person's Defense Department Form 214, as follows: 
1.  During the following periods, including the beginning and 
ending dates, and only for the periods served, from: 
a. April 6, 1917, to November 11, 1918, commonly referred 
to as World War I, 
b. September 16, 1940, to December 7, 1941, for members 
of the 45th Division, 
c. December 7, 1941, to December 31, 1946, commonly 
referred to as World War II, 
d. June 27, 1950, to January 31, 1955, commonly referred 
to as the Korean Conflict or the Korean War, 
e. February 28, 1961, to May 7, 1975, commonly referred 
to as the Vietnam era, except that: 
(1) for the period from February 28, 1961, to August 
4, 1964, military service shall only include 
service in the Republic of Vietnam during that 
period, and 
(2) for purposes of determining eligibility for 
education and training benefits, such period 
shall end on December 31, 1976, or 
f. August 1, 1990, to December 31, 1991, commonly 
referred to as the Gulf War, the Persian Gulf War, or 
Operation Desert Storm, but excluding any person who  RBH No. 13157 
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served on active duty for training on ly, unless 
discharged from such active duty for a service -
connected disability; 
2.  During a period of war or combat military operation other 
than a conflict, war or era listed in paragraph 1 of this 
subsection, beginning on the date of Congressional autho rization, 
Congressional resolution, or Executive Order of the President of the 
United States, for the use of the Armed Forces of the United States 
in a war or combat military operation, if such war or combat 
military operation lasted for a period of ninety (90) days or more, 
for a person who served, and only for the period served, in the area 
of responsibility of the war or combat military operation, but 
excluding a person who served on active duty for training only, 
unless discharged from such active duty for a service-connected 
disability, and provided that the burden of proof of military 
service during this period shall be with the member, who must 
present appropriate documentation establishing such service. 
D.  An eligible member pursuant to subsection C of this section 
shall include only those persons who shall have served during the 
times or in the areas prescribed in subsection C of this section, 
and only if such person provides appropriate documentation in such 
time and manner as required by the Syste m to establish such military 
service prescribed in this section, or for service pursuant to 
division (1) of subparagraph e of paragraph 1 of subsection C of  RBH No. 13157 
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this section, those persons who were awarded service medals, as 
authorized by the United States Dep artment of Defense as reflected 
in the veteran's Defense Department Form 214, related to the Vietnam 
Conflict for service prior to August 5, 1964.  The provisions of 
subsection C of this section shall include military retirees, whose 
retirement was based o nly on active service, that have been rated as 
having twenty percent (20%) or greater service -connected disability 
by the Veterans Administration or the Armed Forces of the United 
States.  The provisions of subsection C of this section shall not 
apply to any person who shall have served on active duty for 
training purposes only unless discharged from active duty for a 
service-connected disability. 
E.  A member of the System who served in the Armed Forces of the 
United States, or any component thereof, who w as honorably 
discharged from full -time active military service prior to becoming 
a member of the System and whose full -time active duty military 
service does not otherwise meet the qualifications for prior service 
credit pursuant to subsections B through D of this section may 
purchase up to five (5) years of full -time active duty military 
prior service credit at the actuarial cost of service credit as 
determined by the Oklahoma Firefighters Pension and Retirement 
System Board, pursuant to Section 49-117.3 Section 7 of this title 
act.  RBH No. 13157 
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The service credit provided by this subsection shall be 
administered pursuant to subsections B through D of this section, 
including, but not limited to, only full -time active duty military 
service not for training -only purposes, unless discharged from 
active duty for a service -connected disability, as reflected on the 
member's Defense Department Form 214, shall be considered for prior 
service credit, and such prior service credit shall only be used in 
determining the member's ret irement benefit but shall not be used in 
determining years of service for retirement, vesting purposes, or 
eligibility for participation in the Oklahoma Firefighters Deferred 
Option Plan. 
F.  Notwithstanding any provision herein to the contrary: 
1.  Contributions, benefits and service credit with respect to 
qualified military service shall be provided in accordance with 
Section 414(u) of the Internal Revenue Code of 1986, as amended, 
which is in accordance with the Uniformed Services Employment and 
Reemployment Rights Act of 1994, as amended (USERRA); and 
2.  Effective January 1, 2007, if any member dies while 
performing qualified military service (as defined in Section 414(u) 
of the Internal Revenue Code of 1986, as amended), the survivors of 
the member are entitled to any additional benefits (other than 
benefits accruals relating to the period of qualified military 
service) provided under the System had the member resumed and then 
terminated employment on account of death.  RBH No. 13157 
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G.  Members or beneficiaries shall make application to the 
System for credited service related to wartime military service.  
Interest on additional benefits related to wartime military service 
owed by the System to a retired member or beneficiary as provided by 
law shall cease accruing one (1) year after the effective date the 
additional benefits are payable by the System or July 1, 2000, 
whichever is later, if the member has not applied to the System for 
credited service related to such wartime military service. 
H.  The purchase of prior m ilitary service credit pursuant to 
subsections B, C, D, and G shall not, in the aggregate, exceed five 
(5) years of service credit. 
SECTION 6.     NEW LAW     A new section of law to be codified 
in the Oklahoma Statutes as Section 49 -117.4 of Title 11, unless 
there is created a duplication in numbering, reads as follows: 
Notwithstanding any other provision in 49 -100.1 et seq. of Title 
11 of the Oklahoma Statutes, the maximum number of years of credited 
service taken into account under the Sy stem shall not exceed thirty 
(30) years. 
SECTION 7.     NEW LAW     A new section of law to be codified 
in the Oklahoma Statutes as Section 49 -138.1 of Title 11, unless 
there is created a duplication in numbering, reads as follows: 
A.  The State Board shall adopt rules or procedures for 
computation of the purchase price for prior military service credit 
provided for in subsection E of Section 49 -138 of Title 11 of the  RBH No. 13157 
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Oklahoma Statutes.  These rules or procedures shall base the 
purchase price for each year purchased on the actuarial cost of the 
incremental projected benefits to be purchased.  The purchase price 
shall represent the present value of the incremental projected 
benefits discounted according to the member's age at the time of 
purchase.  Incremental projected benefits shall be the difference 
between the projected benefit said member would receive without 
purchasing the prior military service credit and the projected 
benefit after purchase of the prior military service credit computed 
as of the earliest age at which the member would be able to retire.  
Said computation shall assume an unreduced benefit and be computed 
using interest and mortality assumptions consistent with the 
actuarial assumptions adopted by the Board of Trustees for purposes 
of preparing the annual actuarial evaluation. 
B.  A member wishing to purchase prior military service credit 
must be an active paid member for a minimum of thirty (30) months so 
as to establish an adequate salary history for the computation of 
the purchase price of prior military service credit.  Upon 
application by an eligible member to purchase prior military service 
credit, the State Board shall provide the member with a computation 
of the purchase price for prior military service credit.  The 
computed purchase price shall be good for ninety (90) days from the 
date the computed purchase price is provided to the member and, 
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be paid within such ninety (90) day period.  After the ex piration of 
the ninety (90) day period without payment by the member, or payment 
commencing as provided in subsection G of this section, the member 
must reapply to purchase prior military service credit, a new 
purchase price must be computed and provided t o the member by the 
State Board, and a new ninety (90) day period shall commence. 
C.  An active volunteer member may request to purchase volunteer 
prior military service credit in accordance with the second, third, 
and fourth sentences of subsection B of t his section.  A volunteer 
member who purchases volunteer prior military service credit and 
later becomes a paid member may purchase paid prior military service 
credit in accordance with all of subsection B of this section, 
including the requirement that th e member be an active paid member 
for a minimum of thirty (30) months so as to establish an adequate 
salary history for the computation of the purchase price of prior 
military service credit.  Any amount paid to purchase volunteer 
prior military service cr edit, excluding interest, shall reduce the 
purchase price for the paid prior military service credit, and the 
purchased volunteer prior military service credit shall be 
disregarded. 
D.  Purchased prior military service credit shall be taken into 
account only if payment is received prior to the commencement of 
benefits, except as otherwise provided in subsection G of this 
section.  RBH No. 13157 
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E.  Members who pay the purchase price in cash by the due date 
described in subsection B of this section may make payment by: 
1.  A trustee-to-trustee transfer of non -Roth funds from a Code 
Section 403(b) annuity or custodial account, an eligible deferred 
compensation plan described in Code Section 457(b) which is 
maintained by an eligible employer described in Code Section 
457(e)(1)(A), and/or a Code Section 401(a) qualified plan, provided 
that after-tax funds in retirement plans shall not be used to 
purchase military service credit; 
2.  A direct rollover of tax -deferred funds from a Code Section 
403(b) annuity or custodial account, an eligible deferred 
compensation plan described in Code Section 457(b) which is 
maintained by an eligible employer described in Code Section 
457(e)(1)(A), a Code Section 401(a) qualified plan, and/or a Code 
Section 408(a) or 408(b) traditional or conduit Individual 
Retirement Account or Annuity (IRA), provided that Roth accounts, 
after-tax funds in retirement plans or IRAs, and Coverdell Education 
Savings Accounts shall not be used to purchase military service 
credit; or 
3.  Certified check. 
A combination of payment methods described in paragraphs 1 through 3 
of this subsection may be used. 
F.  Members amortizing the purchase price and making amortized 
payments by payroll deduction on an after -tax basis, as described in  RBH No. 13157 
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subsection G of this section, shall have the option of making a cash 
payment for the balance of the actuarial purchase price with 
interest due through the date of payment by: 
1.  A trustee-to-trustee transfer of non -Roth funds from a Code 
Section 403(b) annuity or custodial account, an eligi ble deferred 
compensation plan described in Code Section 457(b) which is 
maintained by an eligible employer described in Code Section 
457(e)(1)(A), and/or a Code Section 401(a) qualified plan, provided 
that after-tax funds in retirement plans shall not be used to 
purchase military service credit; 
2.  A direct rollover of tax -deferred funds from a Code Section 
403(b) annuity or custodial account, an eligible deferred 
compensation plan described in Code Section 457(b) which is 
maintained by an eligible employ er described in Code Section 
457(e)(1)(A), a Code Section 401(a) qualified plan, and a Code 
Section 408(a) or 408(b) traditional or conduit Individual 
Retirement Account or Annuity (IRA), provided that Roth accounts, 
after-tax funds in retirement plans and IRAs, and Coverdell 
Education Savings Accounts shall not be used to purchase military 
service credit; or 
3.  Certified check. 
A combination of payment methods described in paragraphs 1 through 3 
of this subsection may be used.  RBH No. 13157 
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G.  In the event that the me mber does not pay the purchase price 
provided for in this section by the due date established in 
subsection B of this section as provided for in subsection E of this 
section, the State Board may permit the member to amortize the 
purchase price over a perio d not to exceed sixty (60) months or 
other method approved by the State Board.  Such amortized payments 
shall be made by payroll deductions on an after -tax basis and shall 
not be picked up by the member's employer.  The amortized payments 
shall include interest at a rate not to exceed the actuarially 
assumed interest rate adopted by the State Board for investment 
earnings each year.  Any member who ceases to make payment, 
terminates, retires, or dies before completing the payments provided 
for in this section shall receive prior military service credit 
prorated for only those payments made, not including interest, 
unless the unpaid balance, including interest, is paid by the 
member, the member's surviving spouse, the member's beneficiary, or 
the member's estate or successor in interest within ninety (90) days 
of the first to occur of said member's termination, retirement, or 
death; provided that no retirement benefits shall be payable until 
the earliest of the date the unpaid balance is paid in full or 
ninety (90) days after the first to occur of the member's 
termination, retirement, or death. 
H.  The State Board shall promulgate such rules or procedures as 
are necessary to implement the provisions of this section.  RBH No. 13157 
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SECTION 8.  It being immediat ely 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 passage and approval. 
 
COMMITTEE REPORT BY: COMMITTEE ON GOVERNMENT OVERSIGHT, dated 
03/05/2025 - DO PASS, As Amended.