RBH No. 11255 Req. No. 11255 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 STATE OF OKLAHOMA 1st Session of the 60th Legislature (2025) HOUSE BILL 1245 By: Strom AS INTRODUCED An Act relating to retirement; amending 74 O.S. 2021, Sections 902, as last amended by Section 1, Chapter 280, O.S.L. 2024 (74 O.S. Supp. 2024, Section 902), 915, as amended by Section 2, Chapter 280, O.S.L. 2024 (74 O.S. Supp. 2024, Section 915), 916.3, as amended by Section 3, Chapter 280, O.S.L. 2024 (74 O.S. Supp. 2024, Section 916.3), 919.1, as amended by Section 4, Chapter 280, O.S.L. 2024 (74 O.S. Supp. 2024, Section 919.1), and 935.2, which relate to the Oklahoma Public Employees Retirement System; defining term; modifying term; providing retirement benefit computation for certain members; modifying who shall receive monthly pension; updating references; modifying employee contributions for certain employees; providing an effective date; and declaring an emergency. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 74 O.S. 2 021, Section 902, as last amended by Section 1, Chapter 280, O.S.L. 2024 (74 O .S. Supp. 2024, Section 902), is amended to read as follows: Section 902. As used in Section 901 et seq. of this title: (1) "System" means the Oklahoma Public Employees Retirem ent System as established by Section 901 et seq. of this title and as it may hereafter be amended; RBH No. 11255 Req. No. 11255 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (2) "Accumulated contributions " means the sum of all contributions by a member to the System which shall be credited to the member's account; (3) "Act" means Sections 901 to 932, inclusive, of this title; (4) "Actuarial equivalent " means a deferred income benefit of equal value to the accumulated deposits or benefits when computed upon the basis of the actuarial tables in use by the System; (5) "Actuarial tables" means the actuarial tables approved and in use by the Board at any given time; (6) "Actuary" means the actuary or firm of actuaries employed by the Board at any given time; (7) "Beneficiary" means any person named by a member to receive any benefits as provided for by Section 901 et seq. of this title. If there is no beneficiary living at time of member employee 's death, the member's estate shall be the beneficiary; (8) "Board" means the Oklahoma Public Employees Retirement System Board of Trust ees; (9) "CLEET-certified law enforcement agent employed by the Department of Human Services Office of Inspector General " means those persons hired by the Department of Human Services Office of Inspector General on or after June 1, 1993, who are certified by the Council on Law Enforcement Education and Training or an equivalent certifying entity for law enforcement personnel training and who RBH No. 11255 Req. No. 11255 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 perform law enforcement services as part of their regularly assigned duties and responsibilities on a full -time basis; (10) "Compensation" means all salary and wages, as defined by the Board of Trustees, including amounts deferred under deferred compensation agreements entered into between a member and a participating employer, but exclusive of payment for overtime, payable to a member of the System for personal services performed for a participating employer but shall not include compensation or reimbursement for traveling, or moving expenses, or any compensation in excess of the maximum compensation level, provided: (a) For compensation for service prior to January 1, 1988, the maximum compensation level shall be Twenty -five Thousand Dollars ($25,000.00) per annum. For compensation for service on or after January 1, 1988, through June 30, 1994, the maximum compensation level shall be Forty Thousand Dollars ($40,000.00) per annum. For compensation for service on or after July 1, 1994, through June 30, 1995, the maximum compensation level shall be Fifty Thousand Dollars ($50,000.00) per annum; for compensation for service on or after July 1, 1995, through June 30, 1996, the maximum compensation level shall be Sixty Thousand Dollars ($60,000.00) per annum; for compensation for service RBH No. 11255 Req. No. 11255 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 on or after July 1, 1996, through June 30, 1997, the maximum compensation level shall be S eventy Thousand Dollars ($70,000.00) per annum; and for compensation for service on or after July 1, 1997, through June 30, 1998, the maximum compensation level shall be Eighty Thousand Dollars ($80,000.00) per annum. For compensation for services on or a fter July 1, 1998, there shall be no maximum compensation level for retirement purposes. (b) Compensation for retirement purposes shall include any amount of elective salary reduction under Section 457 of the Internal Revenue Code of 1986 and any amount of nonelective salary reduction under Section 414(h) of the Internal Revenue Cod e of 1986. (c) Notwithstanding any provision to the contrary, the compensation taken into account for any employee in determining the contribution or benefit accruals for any plan year is limited to the annual compensation limit under Section 401(a)(17) of the federal Internal Revenue Code. (d) Current appointed members of the Oklahoma Tax Commission whose salary is constitutionally limited and is less than the highest salary allo wed by law for his or her position shall be allowed, within ninety RBH No. 11255 Req. No. 11255 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (90) days from March 21, 2001, to make an election to use the highest salary allowed by law for the position to which the member was appointed for the purposes of making contributions and d etermination of retirement benefits. Such election shall be irrevocable and be in writing. Reappointment to the same office shall not permit a new election. Members appointed to the Oklahoma Tax Commission after the March 21, 2001, shall make such elect ion, pursuant to this subparagraph, within ninety (90) days of taking office; (10) (11) "Credited service" means the sum of participating service, prior service and elected service; (11) (12) "Dependent" means a parent, child, or spouse of a member who is dependent upon the member for at least one -half (1/2) of the member's support; (12) (13) "Effective date" means the date upon which the System becomes effective by operation of law; (13) (14) "Eligible employer" means the state and any county, county hospital, city or town, conservation districts, circuit engineering districts a nd any public or private trust in which a county, city or town participates and is the primary beneficiary, is to be an eligible employer for the purpose of Section 901 et seq. o f this title only, whose employees are covered by Social Security and RBH No. 11255 Req. No. 11255 Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 are not covered by or eligible for another retirement plan authorized under the laws of this state which is in operation on the initial entry date. Emergency medical service districts m ay join the System upon proper application to the Board. Provided, affiliation by a county hospital shall be in the form of a resolution adopted by the board of control. (a) If a class or several classes of employees of any above-defined employers are cov ered by Social Security and are not covered by or eligible for and will not become eligible for another retirement plan authorized under the laws of this state, which is in operation on the effective date, such employer shall be deemed an eligible employer, but only with respect to that class or those classes of employees as defined in this section. (b) A class or several classes of employees who are covered by Social Security and are not covered by or eligible for and will not become eligible for another retirement plan authorized under the laws of this state, which is in operation on the effective date, and when the qualifications for employment in such class or classes are set by state law; and when such class or classes of employees are employed by a cou nty or municipal government pursuant to such RBH No. 11255 Req. No. 11255 Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 qualifications; and when the serv ices provided by such employees are of such nature that they qualify for matching by or contributions from state or federal funds administered by an agency of state government which qualifies as a participating employer, then the agency of state government administering the state or federal funds shall be deemed an eligible employer, but only with respect to that class or those classes of employees as defined in this subsection; p rovided, that the required contributions to the retirement plan may be withheld from the contributions of state or federal funds administered by the state agency and transmitted to the System on the same basis as the employee and employer contributions are transmitted for the direct employees of the state agency. The retirement or eligibility for retirement under the provisions of law providing pensions for service as a volunteer firefighter shall not render any person ineligible for participation in the b enefits provided for in Section 901 et seq. of this title. An employee of any public or private trust in which a county, city or town participates and is the primary beneficiary shall be deemed to be an eligible employee for the purpose of Section 901 et seq. of this title only. RBH No. 11255 Req. No. 11255 Page 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (c) All employees of the George Nigh Rehabilitation Institute who elected to retain membership in the System, pursuant to Section 913.7 of this title, shall continue to be eligible employees for the purposes of Section 901 et seq. of this title. The George Nigh Rehabilitation Institute shall be considered a participating employer only for such employees. (d) All employees of CompSource Mutual Insurance Company who retain membership in the Oklahoma Public Employees Retirement System pursuant to Section 913.9 of this title shall continue to be eligible employees for the purposes of the Oklahoma Public Employees Retirement System. CompSource Mutual Insurance Company shall be considered a participating employer only for such employees. (e) All employees of a successor organization, as defined by Section 5-60.12 of Title 2 of the Oklahoma Statutes, who retain membership in the Oklahoma Public Employees Retirement System pursuant to Section 5 - 60.35 of Title 2 of the Oklahoma Statutes shal l continue to be eligible employees for the purposes of the Oklahoma Public Employees Retirement System. A successor organization shall be considered a participating employer only for such employees. RBH No. 11255 Req. No. 11255 Page 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (f) A participating employer of the Teachers ' Retirement System of Oklahoma, who has one or more employees who have made an election pursuant to enabling legislation to retain membership in the System as a result of change in administration, shall be considered a participating employer of the Oklahoma Public Employees Retirement System only for such employees; (14) (15) "Employee" means any officer or employee of a participating employer, whose employment is not seasonal or temporary and whose employment requires at least one thousand (1,000) hours of work per year and whose salary or wage is equal to the hourly rate of the monthly mini mum wage for state employees. For those eligible employers outlined in Section 910 of this title, the rate shall be equal to the hourly rate of the monthly minimum wage for that employer. Each employer, whose minimum wage is less than the state's minimum wage, shall inform the System of the minimum wage for that employer. This notification shall be by resolution of the governing body. (a) Any employee of the county extension ag ents who is not currently participating in the Teachers ' Retirement System of Oklahoma shall be a member of this System. (b) Eligibility shall not include any employee who is a contributing member of the United States Civil Service Retirement System. RBH No. 11255 Req. No. 11255 Page 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (c) It shall be mandatory for an officer, appointee or employee of the office of district attorney to become a member of this System if he or she is not currently participating in a county retirement system. Provided further, that if an officer, appointee or e mployee of the office of district attorney is currently participating in such county retirement system, he or she is ineligible for this System as long as he or she is eligible for such county retirement system. Any eligible officer, appointee or employee of the office of district attorney shall be given credit for prior service as defined in this section. The provisions outlined in Section 917 of this title shall apply to those employees who have previously withdrawn their contributions. (d) Eligibility shall also not include any officer or employee of the Oklahoma Employment Secu rity Commission, except for those officers and employees of the Commission electing to transfer to this System pursuant to the provisions of Section 910.1 of this title or any other class of officers or employees specifically exempted by the laws of this state, unless there be a consolidation as provided by Section 912 of this title. Employees of the Oklahoma RBH No. 11255 Req. No. 11255 Page 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Employment Security Commission who are ineligible for enrollment in the Oklahoma Employment Security Commission Retirement Plan, that was in effect o n January 1, 1964, shall become members of this System. (e) Any employee employed by the Legislative Service Bureau, Senate or House of Representatives for the full duration of a regular legislative session shall be eligible for membership in the System regardless of classification as a temporary employee and may participate in the System during the regular legislative session at the option of the employee. For purposes of this s ubparagraph, the determination of whether an employee is employed for the full duration of a regular legislative session shall be made by the Legislative Service Bureau if such employee is employed by the Legislative Service Bureau, the Senate if such empl oyee is employed by the Senate, or by the House of Representatives if such employee is employed by the House of Representatives. Each regular legislative session during which the legislative employee or an employee of the Legislative Service Bureau partic ipates full time shall be counted as six (6) months of full -time participating service. RBH No. 11255 Req. No. 11255 Page 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (i) Except as otherwise provided by this subparagraph, once a temporary session employee makes a choice to participate or not, the choice shall be binding for all futur e legislative sessions during which the employee is employed. (ii) Notwithstanding the provisions of division (i) of this subparagraph, any employee, who is eligible for membership in the System because of the provisions of this subparagraph and who was employed by the Senate or House of Representatives after January 1, 1989, may fi le an election, in a manner specified by the Board, to participate as a member of the System prior to September 1, 1989. (iii) Notwithstanding the provisions of division (i) of this subparagraph, a temporary legislative session employee who elected to become a member of the System may withdraw from the System effective the day such employee elected to participate in the System upon written request to the Board. Any such request m ust be received by the Board prior to October 1, 1990. All employee contributions made by the temporary legislative session employee shall be returned to the RBH No. 11255 Req. No. 11255 Page 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 employee without interest within four (4) months of receipt of the written request. (iv) A member of the System who did not initially elect to participate as a member of the System pursuant to this subparagraph shall be able to acquire service performed as a temporary legislative session employee for periods of service performed prior to the date upon which the person became a member of the System if: a. the member files an ele ction with the System not later than December 31, 2000, to purchase the prior service; and b. the member makes payment to the System of the actuarial cost of the service credit pursuant to subsection A of Section 913.5 of this title. The provisions of Section 913.5 of this title shall be applicable to the purchase of the service credit, including the provisions for determining service credit in the event of incomplete payment due to cessation of payments, death, termination of employment or retirement, but the payment may extend for a period not to exceed ninety-six (96) months; RBH No. 11255 Req. No. 11255 Page 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (15) (16) "Entry date" means the date on which an eligible employer joins the System. The first entry date pursuant to Section 901 et seq. of this title shall be January 1, 1964; (16) (17) "Executive Director" means the managing officer of the System employed by the Board under Section 901 et seq. of this title; (17) (18) "Federal Internal Revenue Code " means the federal Internal Revenue Code of 1954 or 1986, as amended and as ap plicable to a governmental plan as in effect on July 1, 1999; (18) (19) "Final average compensation " means the average annual compensation, including amounts deferred under defe rred compensation agreements entered into between a member and a participating employer, up to, but not exceeding the maximum compensation levels as provided in paragraph (9) of this section received during the highest three (3) of the last ten (10) years of participating service immediately preceding retirement or termination of employment and with respect to members whose first participating service occurs on or after July 1, 2013, the compensation received during the highest five (5) of the last ten (10) years of participating service immediately preceding retirement or termination of employment. Provided, no member shall retire with a final average compensation unless the member has made the required contributions on such compensation, as defined by the Board of Trustees; RBH No. 11255 Req. No. 11255 Page 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (19) (20) "Fiscal year" means the period commencing July 1 of any year and ending June 30 of the next year. The fiscal year is the plan year for purposes of the federal Internal Revenue Code; however, the calendar year is the limitati on year for purposes of Section 415 of the federal Internal Revenue Code; (20) (21) "Fund" means the Oklahoma Public Employees Retirement Fund as created by Section 901 et seq. of this title; (21) (22) "Leave of absence" means a period of absence from employment without pay, authorized and approved by the employer and acknowledged to the Board, and which after the effective date does not exceed two (2) years; (22) (23) "Member" means an eligible employee or elected official who is in the System and is ma king the required employee or elected official contributions, or any former employee or elected official who shall have made the required contributions to the System and shall have not received a refund or withdrawal; (23) (24) "Military service" means service in the Armed Forces of the United States by an honorably discharged pers on during the following time periods, as reflected on such person 's Defense Department Form 214, not to exceed five (5) years for combined participating and/or prior service, as follows: (a) during the following periods, including the beginning and ending dates, and only for the periods served, from: RBH No. 11255 Req. No. 11255 Page 16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (i) April 6, 1917, to November 11, 1918, commonly referred to as World War I, (ii) September 16, 1940, to December 7, 1941, as a member of the 45th Division, (iii) December 7, 1941, to December 31, 1946, common ly referred to as World War II, (iv) June 27, 1950, to January 31, 1955, commonly referred to as the Korean Conflict or the Korean War, (v) February 28, 1961, to May 7, 1975, com monly referred to as the Vietnam era, except that: a. 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 b. for purposes of determining eligibility for education and training benefits, such period shall end on December 31, 1976, or (vi) 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 served on active du ty for training only, unless discharged from such active duty for a service-connected disability; RBH No. 11255 Req. No. 11255 Page 17 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (b) during a period of war or combat military operation other than a conflict, war or era listed in subparagraph (a) of this paragraph, beginning on the date of Congressional authorization, Congressional resolution, or Executive Order o f 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. An eligible member under this paragraph shall include only those persons who shall have served during the times or in the areas prescribed in this paragraph, and only if such person provides appropriate documentation in such time and manner as required by the System to establish s uch military service prescribed in this paragraph, or for service pursuant to subdivision a of division (v) RBH No. 11255 Req. No. 11255 Page 18 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 of subparagraph (a) of this paragraph those persons who were awarded service medals, as authorized by the United States Department of Defense as reflected in the veteran 's Defense Department Form 214, related to the Vietnam Conflict for service prior to August 5, 1964; (24) (25) "Normal retirement date " means the date on which a member may retire with full retirement benefits as provided in Section 901 et seq. of this title, such date being whichever occurs first: (a) the first day of the month coinciding with or following a member's: (1) sixty-second birthday with respect to members whose first participating service occurs prior to November 1, 2011, or (2) sixty-fifth birthday with respect to members whose first participating service occurs on or after November 1, 2011, or with respect to members whose first participating service occurs on or after November 1, 2011, who reach a minimum age of sixty (60) years and who also reach a normal retirement date pursuant to subparagraph c of this paragraph, (b) for any person who initially became a member prior to July 1, 1992, and who does not reach a normal retirement date pursuant to division (1) of RBH No. 11255 Req. No. 11255 Page 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 subparagraph (a) of this paragraph, the first day of the month coinciding with or following the date at which the sum of a member 's age and number of years of credited service total eighty (80); such a normal retirement date will also apply to any person who became a member of the sending system as defined in Section 901 et seq. of this titl e, prior to July 1, 1992, regardless of whether there were breaks in service after July 1, 1992, (c) for any person who became a member after June 30, 1992, but prior to November 1, 2011, and who does not reach a normal retirement date pursuant to division (1) of subparagraph (a) of this paragraph, the first day of the month coinciding with or following the date at which the sum of a member 's age and number of years of credited service total ninety (90), (d) in addition to subparagraphs (a), (b) and (c) of this paragraph, the first day of the month coinciding with or following a member 's completion of at least twenty (20) years of full-time-equivalent employment as: (i) a correctional or probation and parole officer with the Department of Corrections and at the time of retirement, the member was a correctional RBH No. 11255 Req. No. 11255 Page 20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 or probation and parole officer with the Department of Corrections, (ii) a correctional officer, probation and parole officer or fugitive apprehension agent with the Department of Corrections who is in such position on June 30, 2004, or who is hired after June 30, 2004, and who receives a promotion or change in job classification after June 30, 2004, to another position in the Department of Corrections, so long as such officer or agent has at least five (5) years of service as a correctional officer, probation and parole officer or fugitive apprehension agent with the Department, has twenty (20) years of full -time- equivalent employment with the Department and was employed by the Department at the time of retirement, (iii) a firefighter with the Military Department of the State of Oklahoma either employed for the first time on or after July 1, 2002, or who was employed prior to Ju ly 1, 2002, in such position and who makes the election authorized by division (2) of subparagraph b of paragraph (9) of subsection A of Section 915 of this title and at RBH No. 11255 Req. No. 11255 Page 21 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 the time of retirement, the member was a firefighter with the Military Department of t he State of Oklahoma, and such member has at least twenty (20) years of credit ed service upon which the two and one-half percent (2 1/2%) multiplier will be used in calculating the retirement benefit, (iv) a public safety officer employed by the Grand River Dam Authority for the first time on or after July 1, 2016, (v) a deputy sheriff or jailer employed by any county that is a participating employer in the System for the first time as a deputy sheriff or jailer on or after November 1, 2020, or (vi) beginning November 1, 2024, a deputy sheriff or jailer employed by any county that is a participating employer in the System for the first time as a deputy sheriff or jailer before November 1, 2020, including those who make the election authorized by division (2) of subparagraph b of paragraph (10) of subsection A of Section 915 of this title, and at the time of retirement, if the member was a deputy sheriff or jailer employed by the participating county, and RBH No. 11255 Req. No. 11255 Page 22 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 such member has at least twenty (20) years of credited service upon which the two and one -half percent (2 1/2%) multiplier will be us ed in calculating the retirement benefit, or (vii) a CLEET-certified law enforcement agent employed by the Department of Human Services Office of Inspector General who is employe d for the first time on or after July 1, 2025, or who was employed prior to July 1, 2025, as a CLEET - certified law enforcement agent and makes the election authorized by subparagraph (d) of paragraph (9) of subsection A of Section 915 of this title and, at the time of retirement, the member was a CLEET-certified law enforcement agent with the Department of Human Services Office of Inspector General, and such member has at least twenty (20) years of credited service, upon which the two and one -half percent (2 1/2%) multiplier will be used in calculating the retirement benefit, (e) for those fugitive apprehension agents who retire on or after July 1, 2002, the first day of the month coinciding with or following a member 's completion of at least twenty (20) yea rs of full-time-equivalent RBH No. 11255 Req. No. 11255 Page 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 employment as a fugitive apprehension agent with th e Department of Corrections and at the time of retirement, the member was a fugitive apprehension agent with the Department of Corrections, or (f) for any member who was continuo usly employed by an entity or institution within The Oklahoma State System of Higher Education and whose initial employment with such entity or institution was prior to July 1, 1992, and who without a break in service of more than thirty (30) days became employed by an employer participating in the Oklahoma Public Employees Retireme nt System, the first day of the month coinciding with or following the date at which the sum of the member 's age and number of years of credited service total eighty (80); (25) (26) "Participating employer " means an eligible employer who has agreed to make contributions to the System on behalf of its employees; (26) (27) "Participating service " means the period of employment after the entry date for which credit is granted a member. Provided, on or after the effective date of this act, military service credit purchased under Section 913.8 of this title shall only be considered "participating service " if such service is immediately preceded by a period of employment with a partic ipating RBH No. 11255 Req. No. 11255 Page 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 employer and followed by a return to service as an employee with the same or another participating employer within ninety (90) days immediately following discharge from such military service; (27) (28) "Prior service" means the period of employmen t of a member by an eligible employer prior to the member 's entry date for which credit is granted a member under Section 901 et seq. of this title. Provided, on or after the effective date of this act, "prior service" shall also include service purchased under Section 913.8 of this title which does not meet the requirements of paragraph 26 of this section; (28) (29) "Retirant" or "retiree" means a member who has retired under the System; (29) (30) "Retirement benefit" means a monthly income with benefits accruing from the first day of the month coinciding with or following retirement and ending on the last day of the month in which death occurs or the actuarial equivalent thereof paid in such manner as specified by the member pursuant to Section 901 et s eq. of this title or as otherwise allowed to be paid at the discretion of the Board; (30) (31) "Retirement coordinator " means the individual designated by each participating employer through whom System transactions and communication shall be directed; (31) (32) "Social Security" means the old-age survivors and disability section of the federal Social Security Act; RBH No. 11255 Req. No. 11255 Page 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (32) (33) "Total disability" means a physical or mental disability accepted for disability benefits by the federal Social Security System; (33) (34) "Service-connected disability benefits " means military service benefits which are for a service -connected disability rated at twenty percent (20%) or more by the Veterans Administration or the Armed Forces of the United States; (34) (35) "Elected official" means a person elected to a state office in the legislative or exec utive branch of state government or a person elected to a county office for a definite number of years and shall include an individual who is appointed to fill the unexpired term of an elected state official; (35) (36) "Elected service" means the period of service as an elected official; (36) (37) "Limitation year" means the year used in applying the limitations of Section 415 of the Internal Revenue Code of 1986, which year shall be the calendar year; and (37) (38) "Public safety officers of the Grand R iver Dam Authority" means those persons hired by the Grand River Dam Authority on or after March 21, 2001, who are certified by the Council on Law Enforcement Education and Train ing or an equivalent certifying entity for law enforcement personnel training and who perform law enforcement functions as part of their regularly assigned duties and responsibilities on a full -time basis. With RBH No. 11255 Req. No. 11255 Page 26 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 respect to any public safety officer hired b y the Grand River Dam Authority on or after March 21, 2001, any earned benefit s or credits toward retirement benefits from previous participation within the Oklahoma Public Employees Retirement System or the Oklahoma Law Enforcement Retirement System shall remain within that system. SECTION 2. AMENDATORY 74 O.S. 2021, Section 915, as amended by Section 2, Chapter 280, O.S.L. 2024 (74 O.S. Supp. 2024, Section 915), is amended to read as follows: Section 915. A. (1) Except as othe rwise provided in this subsection and as provided for elected officials in Sec tion 913.4 of this title, any member who shall retire on or after the member 's normal retirement date shall be entitled to receive an annual retirement benefit equal to two perce nt (2%) of the member 's final average compensation as determined pursuant to paragraph (18) of Section 902 of this title, multiplied by the number of years of credited service that has been credited to the member in accordance with the provisions of Sectio n 913 of this title other than years credited pursuant to paragraph (2) of thi s subsection. (2) Effective January 1, 2004, except as otherwise provided for elected officials in Section 913.4 of this title and except for those members making contributions pursuant to paragraphs (c), (d), (e) and (f) of subsection (1) of Section 919.1 of this title, any member who shall retire shall be entitled to receive an annual retirement benefit equal to two and one -half percent (2 1/2%) of the RBH No. 11255 Req. No. 11255 Page 27 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 member's final average compensation as determined pursuant to paragraph (18) of Section 902 of this tit le, multiplied by the number of full years of participating service after January 1, 2004, that have been credited to the member in accordance with the provisions of Section 913 of this title and only for those full years of participating service for which contributions have been made pursuant to paragraph (g) of subsection (1) of Section 919.1 of this title. The two and one -half percent (2 1/2%) multiplier shall not apply to purchased service, purchased or granted military service or transferred service. In order to receive the two and one-half percent (2 1/2%) multiplier in computing retirement benefits, an active member shall make an irrevocable written election to pay the con tributions pursuant to paragraph (g) of subsection (1) of Section 919.1 of this title. The two and one -half percent (2 1/2%) multiplier pursuant to this paragraph shall not apply to additional years of service credit attributed to sick leave pursuant to paragraph 7 of subsection B of Section 913 of this title and fractional years p ursuant to subsection C of Section 913 of this title and shall be attributable only to the participating service credited after the election of the member. (3) The minimum final average compensation for any person who becomes a member of the System on or after July 1, 1995: a. and who had twenty (20) or more years of credited service within the System as of the member 's RBH No. 11255 Req. No. 11255 Page 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 retirement date shall be no less than Thirteen Thousand Eight Hundred Dollars ($13,800.00) per annum, b. and who had at least fifteen (15) but not more than nineteen (19) years of credited service within the System as of the member 's retirement date shall be no less than Six Thousand Nine Hundred Dollars ($6,900.00) per annum, c. and who had less than fifteen (15) years of credited service within the System as of the member 's retirement date shall not be eligible for any minimum amount of final average compensation and the member 's final average compensation shall b e the final average compensation as defined by paragraph (18) of Section 902 of this title. (4) Provided, further, any member who has elected a vested benefit pursuant to Section 917 of this title shall be entitled to receive benefits as outlined in this section except the percent factor and the member 's maximum compensation level in effect the date the member's employment was terminated with a participating employer shall be applicable. (5) Any member who is a correctional officer or a probation and parole officer employed by the Department of Corrections at the time of retirement and who retires on or before June 30, 2000, shall be entitled to receive an annual retirement benefit equal to two and RBH No. 11255 Req. No. 11255 Page 29 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 one-half percent (2 1/2%) of the final average compensatio n of the member not to exceed Twenty -five Thousand Dollars ($25,000.00) and two percent (2%) of the final average salary in excess of Twenty - five Thousand Dollars ($25,000.00) but not exceeding the maximum compensation level as provided in paragraph (9) of Section 902 of this title, multiplied by the number of years of service as a correctional officer or a probation and parole officer; provided, any years accrued prior to July 1, 1990, as a correctional officer or a probation and parole officer by a member who is employed as a correctional officer or a probation and parole officer on July 1, 1990, shall be calculated for retirement purposes at two and one - quarter percent (2 1/4%) of the final average compensation of the member not to exceed Twenty -five Thousand Dollars ($25,000.00) and two percent (2%) of the final average salary in excess of Twenty- five Thousand Dollars ($25,000.00) but not exceeding the maximum compensation level as provided in paragraph (9) of Section 902 of this title, multiplied by the number of years of such service and any years in excess of twenty (20) years as such an officer or years credited to the member in accordance with the provisions of Section 913 of this title shall be calculated for retirement purposes at two percent (2%) of the final average compensation of the member multiplied by the number of yea rs of such service. Any person who contributes to the System as a correctional officer or a probation and parole officer as provided in paragraph (b) or (c) of subsection RBH No. 11255 Req. No. 11255 Page 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (1) of Section 919.1 of this title, on or before June 30, 2000, but who does not make such contributions after June 30, 2000, and who does not qualify for normal retirement under subparagraph (c) of paragraph (24) of Section 902 of this title shall have retireme nt benefits for each year of full -time-equivalent participating service as a correctional or a probation and parole officer after July 1, 1990, computed on two and one -half percent (2 1/2%) of the final average compensation based upon those years as a corr ectional officer or a probation and parole officer. Provided, further, any fugitive apprehension agent shall be entitled to receive benefits as outlined in this act for service as a fugitive apprehension agent prior to July 1, 2002, only upon payment to t he System of the employee contributions which would have been paid if such fug itive apprehension agent had been covered by this section prior to the effective date of this act, plus interest of not to exceed ten percent (10%) as determined by the Board. T he Department of Corrections may make the employee contribution and interest payment on behalf of such member. (6) Any member who is a correctional officer, a probation and parole officer or a fugitive apprehension agent employed by the Department of Corrections at the time of retirement and who retires on or after July 1, 2002, sh all be entitled to receive an annual retirement benefit equal to two and one -half percent (2 1/2%) of the final average compensation of the member, but not exceeding the RBH No. 11255 Req. No. 11255 Page 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 maximum compensation level as provided in paragraph (18) of Section 902 of this title, multiplied by the number of years of service as a correctional officer, a probation and parole officer or a fugitive apprehension agent, and any years in excess of twenty (20) y ears as such an officer or agent, or years credited to the member in accordance with the provisions of Section 913 of this title, shall be calculated for retirement purposes at two percent (2%) of the final average compensation of the member multiplied by the number of years of such service. For purposes of this paragraph, "final average compensation " shall be determined by computing the average annual salary, in the manner prescribed by paragraph (18) of Section 902 of this title, for the highest three (3 ) years of the last ten (10) years of participating service immediately preced ing retirement or termination of employment for all years of service performed by such member, both for years of service performed as a correctional officer, probation and parole officer or fugitive apprehension agent, not in excess of twenty (20) years, and for years of service performed in excess of twenty (20) years, whether as a correctional officer, probation and parole officer, fugitive apprehension agent or other position unless the computation of benefits would result in a lower retirement benefit a mount than if final average compensation were to be computed as otherwise provided by this paragraph. "Final average compensation " shall be determined by computing the average annual salary for the highest five (5) of the last ten (10) years of RBH No. 11255 Req. No. 11255 Page 32 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 participating service immediately preceding retirement or termination of employment, with respect to members whose first participating service occurs on or after July 1, 2013. (7) Any member who is a correctional officer, a probation and parole officer or a fugitiv e apprehension agent who has at least five (5) years of service as a correctional officer, a probation and parole officer or a fugitive apprehension agent who is in such position on June 30, 2004, or who is hired after June 30, 2004, in such position, and who receives a promotion or change in job classification after June 30, 2004, to another position in the Department of Corrections, and who is employed by the Department of Corrections at the time of retirement and who retires on or after July 1, 2004, shall be entitled to receive an annual retirement benefit equal to two and one -half percent (2 1/2%) of the final average compensation of the member, but not exceeding the maximum compensation level as provided in paragraph (18) of Section 902 of this title, multiplied by the number of years of service with the Department of Corrections and any years in excess of twenty (20) years with the Department or years credited to the member i n accordance with the provisions of Section 913 of this title, shall be calculated for retirement purposes at two percent (2%) of the final average compensation of the member multiplied by the number of years of such service. For purposes of this paragrap h, "final average compensation " shall be determined by computing the average RBH No. 11255 Req. No. 11255 Page 33 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 annual salary, in the manner prescribed by paragraph (18) of Section 902 of this title, for the highest three (3) years of the last ten (10) years of participating service immedia tely preceding retirement or termination of employment for all years of servic e performed by such member with the Department. "Final average compensation " shall be determined by computing the average annual salary for the highest five (5) of the last ten (10) years of participating service immediately preceding retirement or termination of employment, with respect to members whose first participating service occurs on or after July 1, 2013. (8) Any person who contributed to the System as a correctional officer, a probation and parole officer or a fugitive apprehension agent as provided in paragraph (b) or (c) of subsection (1) of Section 919.1 of this title, and who retires under normal retirement or early retirement on or after January 1, 2004, under para graph (24) of Section 902 of this title, and any public safety officer described by paragraph (37) of Section 902 of this title hired on or after the effective date of this act by the Grand River Dam Authority and who retires on or after the effective date of this act, shall have retirement benefits for each year of full -time- equivalent participating service as a correctional officer, a probation and parole officer or a fugitive apprehension agent, or Grand River Dam public safety officer computed on two an d one-half percent (2 1/2%) of the final average compensation based upon those RBH No. 11255 Req. No. 11255 Page 34 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 years as a correctional officer, a probation and parole officer, a fugitive apprehension agent or a Grand River Dam public safety officer. For purposes of this paragraph, "final average compensation" shall be determined by computing the average annual salary, in the manner prescribed by paragraph (18) of Section 902 of this title, for the highest three (3) years of the last ten (10) years of participating service immediately pre ceding retirement or termination of employment for all years of service performed by such member, both for years of service performed as a correctional officer, probation and parole officer or fugitive apprehension agent, or years of service performed as a Grand River Dam public safety officer, not in excess of twenty (20) years, an d for years of service performed in excess of twenty (20) years, whether as a correctional officer, probation and parole officer, fugitive apprehension agent, Grand River Dam pub lic safety officer, or other position unless the computation of benefits would result in a lower retirement benefit amount than if final average compensation were to be computed as otherwise provided by this paragraph. "Final average compensation" shall be determined by computing the average annual salary for the highest five (5) o f the last ten (10) years of participating service immediately preceding retirement or termination of employment, with respect to members whose first participating service occurs on or after July 1, 2013, or with respect to Grand River Dam public safety officers whose first RBH No. 11255 Req. No. 11255 Page 35 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 participating service occurs on or after the effective date of this act. (9) Any member who is: a. initially on or after July 1, 2002, employed as a firefighter for the Oklahoma Military Department and who retires on or after the member 's normal retirement date shall be entitled to receive an annual retirement benefit equal to two and one -half percent (2 1/2%) of the final average compensation of the member multiplied by the number of years of service in such service, b. (1) a firefighter who performs firefighting services for the Oklahoma Military Department prior to July 1, 2002, and who makes an election in writing on a form prescribed for this purpose by the System not later than December 31, 2002, shall be entitled to receive a retir ement benefit based upon two and one -half percent (2 1/2%) of the final average compensation of the member multiplied by the number of years of service as a firefighter with the Oklahoma Military Department on or after July 1, 2002. The election authorized by this subdivision shall be RBH No. 11255 Req. No. 11255 Page 36 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 irrevocable once the election is filed with the System, (2) a firefighter who performs firefighting services for the Oklahoma Military Department p rior to July 1, 2002, and who makes the election in division (1) of this subpa ragraph may also make an election in writing on a form prescribed for this purpose by the System not later than December 31, 2002, to receive a retirement benefit based upon two and one-half percent (2 1/2%) of the final average compensation of the member multiplied by the number of years of service as a firefighter with the Oklahoma Military Department prior to July 1, 2002. The election authorized by this subdivision shall be irrevocable once the election is filed with the System. Retirement benefits sh all be calculated based upon the two and one -half percent (2 1/2%) multiplier upon payment being made pursuant to Section 913.5 of this title , c. initially on or after July 1, 20 25, employed as a CLEET-certified law enforcement agent for the Oklahoma Department of Human Services Office of Inspector General and who retires on or after the RBH No. 11255 Req. No. 11255 Page 37 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 member's normal retirement date shall be entitled to receive an annual retirement benefit equa l to two and one-half percent (2 1/2%) of the final average compensation of th e member multiplied by the number of years of service in such service , d. (1) a CLEET-certified law enforcement agent who performs law enforcement services for the Department of Human Services Office of Inspector General prior to July 1, 2025, and who makes an election in writing on a form prescribed for this purpose by the System not later than December 31, 2025, shall be entitled to receive a retirement benefit based upon two an d one-half percent (2 1/2%) of the final average compensation of the member multiplied by the number of years of service as a CLEET-certified law enforcement agent for the Department of Human Services Office of Inspector General on or after July 1, 2025. The election authorized by the subparagraph shall be irrevocable once the election is filed with the System, (2) a CLEET-certified law enforcement agent who performs law enforcement services for the Department of Human Services Office of Inspector RBH No. 11255 Req. No. 11255 Page 38 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 General prior to July 1, 2025, and who makes the election in subparagraph (1) of this paragraph may also make an election in writing on a form prescribed for this purpose by the System not later than December 31, 2025, to receive a retirement benefit based upon tw o and one-half percent (2 1/2%) of the final average compensation of the member multiplied by the number of years of service as a CLEET -certified law enforcement agent who performs law enforcement services for the Department of Human Services Office of Ins pector General prior to July 1, 2025. The election authorized by this subdivision shall be irrevocable once the election is filed with the System. Retirement benefits shall be calculated based upon the two and one-half percent (2 1/2%) multiplier upon payment being made pursuant to Section 913.5 of this title. (10) Any person who contributes to the System as a deputy sheriff or county jailer as provided in paragraph (f) of subsection (1) of Section 919.1 of this title, and who was: a. employed by a participating employer in the System for the first time as a deputy sheriff or jail er on RBH No. 11255 Req. No. 11255 Page 39 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 or after November 1, 2020, and who retires under normal retirement or early retirement under division (v) of subparagraph (d) of paragraph (24) of Section 902 of this title, shall have retirement benefits for each year of full-time-equivalent participating service as a deputy sheriff or county jailer computed on two and one-half percent (2 1/2%) of the final average compensation based upon those years as a deputy sheriff or county jailer, and any years in excess of twenty (20) years as a deputy sherif f or county jailer, or years credited to the member in accordance with the provisions of Section 913 of this title, shall be calculated for retirement purposes at two percent (2%) of the final average compensation of the member multiplied by the number of years of such service, or b. (1) employed by a participating employer in the System for the first time as a deputy sheriff or county jailer before November 1, 2020, and who retires under the normal retirement or early retirement under division (vi) of subp aragraph (d) of paragraph (24) of Section 902 of this title, shall be entitled to receive a retirement benefit based on two and one -half percent (2 RBH No. 11255 Req. No. 11255 Page 40 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1/2%) of the final average com pensation of the member multiplied based on the number of years of service as a deputy sheriff or county jailer with any county participating in the System on or after November 1, 2024, (2) employed by a participating employer in the System for the first t ime as a deputy sheriff or county jailer before November 1, 2020, and who retires under the normal retirement or early retirement under division (vi) of subparagraph (d) of paragraph (24) of Section 902 of this title, and who makes an election in writing n ot later than July 1, 2026, on a form prescribed for this purpose by the System, shall be entitled to a retirement benefit based upon two and one -half percent (2 1/2%) of the final average compensation of the member multiplied by the number of years of ser vice prior to November 1, 2024, as a deputy sheriff or county jailer employed by any county that is a participating employer in the System. The election authorized by this subparagraph shall be irrevocable once the election is filed with the System. Retirement benefits shall be calculated based RBH No. 11255 Req. No. 11255 Page 41 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 upon the two and one -half percent (2 1/2%) multiplier upon payment being made pursuant to Section 913.5 of this title. Any person otherwise qualifying under this subparagraph, but who is not employed as a deputy s heriff or county jailer on November 1, 2024, and who is reemployed as a deputy sheriff or county jailer with a county that is a participating employer in the System after November 1, 2024, shall have six (6) months from the initial date of reemployment to make the election authorized in this subparagraph. The actuarial purchase of any service credit accrued prior to November 1, 2024, as a deputy sheriff or county jailer employed by a county that is a participating employer in the System as set forth in thi s subparagraph shall cancel such corresponding service and shall not be used to compute the retirement benefit under any other provision except as provided in this subparagraph. In no event shall the service purchased under this subparagraph cause the member to receive a retirement benefit for the same service in any other plan. Any purchased service under this subparagraph shall comply with RBH No. 11255 Req. No. 11255 Page 42 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 the applicable provisions of the Internal Revenue Code and rules adopted by the Board of Trustees. c. For purposes of paragraph (10), "final average compensation" shall be determined by computi ng the average annual salary, in the manner prescribed by paragraph (18) of Section 902 of this title, both for years of service performed as a deputy sheriff or county jailer not in excess of twenty (20) years, and for years of service performed in excess of twenty (20) years, whether as a deputy sheriff or county jailer. (11) Upon death of a retiree, there shall be paid to his or her beneficiary an amount equal to the excess, i f any, of his or her accumulated contributions over the sum of all retirement benefit payments made. (12) Such annual retirement benefits shall be paid in equal monthly installments, except that the Board may provide for the payment of retirement benefits which total less than Two Hundred Forty Dollars ($240.00) a year on other than a monthly basis. (13) Pursuant to the rules established by the Board, a retiree receiving monthly benefits from the System may authorize warrant deductions for any products cu rrently offered to active state employees through the Employees Benefits Counc il, provided that product is offered to state retirees as a group and has a minimum RBH No. 11255 Req. No. 11255 Page 43 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 participation of five hundred state retirees. The System has no responsibility for the market ing, enrolling or administration of such products, but shall retain a processing fee of two percent (2%) of the gross deductions for the products. Retirement benefit deductions shall be made for membership dues for any statewide association for which payr oll deductions are authorized pursuant to subsection B of Section 34.70 of Tit le 62 of the Oklahoma Statutes for retired members of any state -supported retirement system, upon proper authorization given by the member to the board from which the member or beneficiary is currently receiving retirement benefits. B. A member shall be considered disabled if such member qualifies for the payment of Social Security disability benefits, or the payment of benefits pursuant to the Railroad Retirement Act of 1974, Section 231 et seq. of Title 45 of the United States Code, and shall be eligible for benefits hereunder upon proof of such disability, provided such member is an active regularly scheduled employee with a participating employer at the time of injury or inception of illness or disease resulting in subsequent certification of eligibility for Social Security disability benefits by reason of such injury, illness or disease, providing such disability is certified by the Social Security Administration within one (1) year after the last date physically on the job and after completion of at least eight (8) years of participating service or combined prior and participating service or resulting in subsequent RBH No. 11255 Req. No. 11255 Page 44 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 certification of eligibility of disability by the Railroad Retirement Board providing such certification is made by the Railroad Retirement Board within one (1) year after the last date physically on the job and after completion of at least eight (8) years of participating service or combined prior and participating service. The member shall submit to the Retirement System the Social Security Award Notice or the Railroad Retirement Award Notice certifying the date of entitlement for disability benefits, as issued by the Social Security Administration, Department of H ealth and Human Services or the Railroad Retirement Board. Disability benefits shall become effective on the date of entitlement as established by the Social Security Administration or the Railroad Retirement Board, but not before the first day of the mon th following removal from the payroll, whichever is later, and final approval by the Retirement System. Benefits shall be based upon length of service and compensation as of the date of disability, without actuarial reduction because of commencement prior to the normal retirement date. The only optional form of benefit payment available for disability benefits is Option A as provided for in Section 918 of this title. Option A must be elected in accordance with the provisions of Section 918 of this title. Benefit payments shall cease upon the member 's recovery from disability prio r to the normal retirement date. Future benefits, if any, shall be paid based upon length of service and compensation as of the date of RBH No. 11255 Req. No. 11255 Page 45 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 disability. In the event that disability ceases and the member returns to employment within the System credited service to the date of disability shall be restored, and future benefits shall be determined accordingly. C. A member who incurred a disability pursuant to subsection B of this section on or after July 1, 1999, and who has retired from the System with an early retirement benefit pending certification from the Social Security Administration or the Railroad Retirement Board shall receive a retirement benefit not less than the disability retirement benefit provided by subsection B of this section once the System receives a Social Security Award Notice or a Railroad Retirement Award Notice pursuant to subsection B of this section and a completed Application for Disability Benefits. In addition, such member shall receive the difference, if any, between the early retirement benefit and the disability benefit from the date the Social Security Administration or the Railroad Retirement Board establishes disability entitlement. D. Any actively participating member of the System on or after July 1, 1998, except for those employees provided in subparagraph (e) of paragraph (14) of Section 902 of this title, whose employment is less than full-time, shall have his or her final average compensation calculated on an annualized basis using his or her hourly wage subject to the ma ximum compensation limits; provided, however, any such member whose first participating service occurred RBH No. 11255 Req. No. 11255 Page 46 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 before July 1, 2013, and who has at least three (3) years of full - time employment during the last ten (10) years immediately preceding termination or retirement shall not be eligible for the annualization provisions contained herein; and provided further, any such member whose first participating service occurred on or after July 1, 2013, and who has at least five (5) years of full -time employment during the last ten (10) years immediately preceding termination or retirement shall not be eligible for the annualization provisions contained herein. The Board of Trustees shall promulgate such administrative rules as are necessary to implement the provisions of this subsection. SECTION 3. AMENDATORY 74 O.S. 2021, Section 916.3, as amended by Section 3, Chapter 280, O.S.L. 2024 (74 O.S. Supp. 2024, Section 916.3), is amended to read as follows: Section 916.3. A. Notwithstanding the provisions of Sections 901 through 932 of this title, a monthly pension, as provided in subsection B of this section, shall be paid on behalf of any member who is a: 1. Correctional officer or probation and parole officer of the Department of Corrections and who is killed or mortally wounded on or after January 1, 2000, during the performance of the member 's duties for the Department or any employee of the Department of Corrections who is killed or mortally wounded after June 30, 2004, during the performan ce of the member's duties for the Department; RBH No. 11255 Req. No. 11255 Page 47 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. Deputy sheriff or county jailer first hired on or after November 1, 2020, by any county that is a participating member in the System, and who is killed or mortally wounded during the performance of the member 's duties as a deputy sheriff or jailer; and 3. Deputy sheriff or county jailer first hired before November 1, 2020, by any county that is a participating employer in the System, and who is killed or mortally wounded during the performance of the member's duties for the participating county on or after November 1, 2024; and 4. CLEET-certified law enforcement agent employed by the Department of Human Services Office of Inspecto r General and who is killed or mortally wounded on or after July 1, 2025, during the performance of the member 's duties for the Department . B. The monthly benefit shall be equal to: 1. Two and one-half percent (2 1/2%); 2. Multiplied by twenty (20) year s of service, regardless of the actual number of years of credited service per formed by the member prior to death, if the member had performed less than twenty (20) years of credited service, or the actual number of years of credited service of the member if greater than twenty (20) years; 3. Multiplied by the member 's final average compensation; and 4. Divided by 12. RBH No. 11255 Req. No. 11255 Page 48 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 C. The pension provided for in subsection A of this section shall be paid: 1. Except as provided in subsection D of this section, to the surviving spouse for life; or 2. If there is no surviving spouse or upon the death of the surviving spouse: a. to the surviving child or children of said member or legal guardian of such child or children for such time as such child or children are under the age of eighteen (18) years, or b. to the surviving child or children between the age of eighteen (18) and twenty -two (22) years if the child is enrolled full time in and is regularly attending a public or private school or any institution of higher education. D. No surviving spouse shall receive benefits from this section, Section 49-113 of Title 11 of the Oklahoma Statutes, Section 50-117 of Title 11 of the Oklahoma Statutes, or Section 2 - 306 of Title 47 of the Oklahoma Statutes as the surviving spous e of more than one member of the Oklahoma Firefighters Pension and Retirement System, the Oklahoma Police Pension and Retirement System, the Oklahoma Law Enforcement Retirement System, or the Oklahoma Public Employees Retirement System. The surviving spou se RBH No. 11255 Req. No. 11255 Page 49 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 of more than one member shall elect which member 's benefits he or she will receive. E. In addition to the pension above provided for, if said member leaves one or more children under the age of eighteen (18) years or under the age of twenty -two (22) years if the child is enrolled full-time in and is regularly attending a public or private school or any institution of higher education, Four Hundred Dollars ($400.00) a month shall be paid to the surviving spouse or to the person having the care and custod y of such children if there is no surviving spouse or if the surviving spouse dies and until each child reaches the age of eighteen (18) years or reaches the age of twenty-two (22) years if the child is enrolled full -time in and is regularly attending a pu blic or private school or any institution of higher education. F. The pension benefit provided in this section shall be made prospectively only from the effective date of this act. The benefits shall be payable beginning the later of the first day of the month following the date that such employee was killed or dies from a mortal wound, as provided in this section, or the effective date of this act. G. The Board of the Oklahoma Public Employees Retirement System shall promulgate such rules as are necessa ry to implement the provisions of this section. RBH No. 11255 Req. No. 11255 Page 50 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SECTION 4. AMENDATORY 74 O.S. 2021, Section 919.1, as amended by Section 4, Chapter 280, O.S.L. 2024 (74 O.S. Supp. 2024, Section 919.1), is amended to read as follows: Section 919.1. (1) Employee contributions to the System shall be: (a) for employees except as otherwise provided in paragraphs (b), (c), (d), (e), (f) and, (g), and (h) of this subsection: beginning July 1, 2006, and thereafter, three and one -half percent (3.5%) of allowable annual compensation; (b) for correctional officers and probation and parole officers employed by the Department of Corrections: beginning July 1, 1998, and thereafter, and for correctional officers or probation and parole officers who are in such position on June 30, 2004, or who are hired after June 30, 2004, and who rece ive a promotion or change in job classification after June 30, 2004, to another position in the Department of Corrections, so long as such officers have at least five (5) years of service as a correctional officer or probation and parole officer, eight percent (8%) of allowable compensation as provided in paragraph (9) of Section 902 of this title; RBH No. 11255 Req. No. 11255 Page 51 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (c) for fugitive apprehension agents who are employed with the Department of Correc tions on or after July 1, 2002, and for fugitive apprehension agents who are i n such position on June 30, 2004, or who are hired after June 30, 2004, and who receive a promotion or change in job classification after June 30, 2004, to another position in the Department of Corrections, so long as such agents have at least five (5) years of service as a fugitive apprehension agent, eight percent (8%) of allowable compensation as provided in paragraph (9) of Section 902 of this title; (d) for firefighters of th e Oklahoma Military Department first employed beginning July 1, 2002, and ther eafter, and such firefighters who performed service prior to July 1, 2002, for the Oklahoma Military Department and who make the election authorized by division (1) of subparagraph b of paragraph (9) of subsection A of Section 915 of this title who perform service on or after July 1, 2002, in such capacity, eight percent (8%) of allowable compensation as provided in subsection (9) of Section 902 of this title; (e) for all public safety officers of the Grand River Dam Authority as defined by paragraph (37) o f Section 902 of this title, eight percent (8%) of allowable RBH No. 11255 Req. No. 11255 Page 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 compensation as provided in paragraph (9) of Section 902 of this title; (f) for deputy sheriffs and county jailers em ployed by any county that is a participating employer in the System for the first time as a deputy sheriff or jailer on or after November 1, 2020, or beginning November 1, 2024, those deputy sheriffs and county jailers employed by any county that is a part icipating employer in the System for the first time as a deputy sheriff or county jailer before November 1, 2020, eight percent (8%) of allowable compensation as provided in paragraph (9) of Section 902 of this title; and (g) for all CLEET-certified law enforcement agents of the Department of Human Services Office of Inspector General as defined by paragraph (38) of Section 902 of this title, eight percent (8%) of allowable compensation as provided in paragraph (9) of Section 902 of this title; and (g) (h) for all employees except those who make contributions pursuant to paragraphs ( b), (c), (d), (e) and, (f), and (g) of this subsection who make an irrevocable written election pursuant to paragraph (2) of subsection A of Section 915 of this title: six and RBH No. 11255 Req. No. 11255 Page 53 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 forty-one one-hundredths percent (6.41%) of allowable annual compensation. The contributions required by paragraphs (b), (c), (e), and (f) of this subsection shall be made by a member for not more than twenty (20) years and thereafter shall be as provided i n paragraph (a) of this subsection. (2) Contributions shall be deducted by ea ch state agency by the participating employer for such benefits as the Board is authorized to administer as provided for by law. Employee and employer contributions shall be rem itted monthly, or as the Board may otherwise provide, to the Executive Director for deposit in the Oklahoma Public Employees Retirement Fund. (3) Each participating employer shall pick up under the provisions of Section 414(h)(2) of the Internal Revenue C ode of 1986 and pay the contribution which the member is required by law to ma ke to the System for all compensation earned after December 31, 1988. Although the contributions so picked up are designated as member contributions, such contributions shall be treated as contributions being paid by the participating employer in lieu of contributions by the member in determining tax treatment under the Internal Revenue Code of 1986 and such picked up contributions shall not be includable in the gross income of t he member until such amounts are distributed or made available to the member o r the beneficiary of the member. The member, by the terms of this System, shall not have RBH No. 11255 Req. No. 11255 Page 54 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 any option to choose to receive the contributions so picked up directly and the picked u p contributions must be paid by the participating employer to the System. Member contributions which are picked up shall be treated in the same manner and to the same extent as member contributions made prior to the date on which member contributions were picked up by the participating employer. Member contributions so picked up sh all be included in gross salary for purposes of determining benefits and contributions under the System. The participating employer shall pay the member contributions from the same source of funds used in paying salary to the member, by effecting an equal cash reduction in gross salary of the member. (4) By September 1, 1989, the System shall refund the accumulated employee contributions of any member who elects to retain the member's membership in the Teachers ' Retirement System of Oklahoma, in accordance with Section 17-104 of Title 70 of the Oklahoma Statutes, to such member. Upon the refund of the accumulated employee contributions referred to in this subsection, all benefits and rights accrued to such member are terminated. SECTION 5. AMENDATORY 74 O.S. 2021, Section 935.2, is amended to read as follows: Section 935.2. A. The Oklahoma Public Employees Retirement System (System) shall establish a de fined contribution system for those persons who first become employed in a ful l-time equivalent RBH No. 11255 Req. No. 11255 Page 55 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 position or a position which is less than full -time but more than half-time position and which qualifies for employee benefits, including but not limited to, he alth insurance and leave time by any participating employer of the System, as defined by paragraph (25) of Section 902 of this title, on or after November 1, 2015. Any person first licensed by the Department of Rehabilitation Services as a vending stand o perator or managing operator on or after November 1, 2015, as defined by Secti on 929 of this title, shall be eligible for participation in the defined contribution system. B. The provisions of subsection A of this section and the provisions of this act sh all not be applicable to employees who are initially employed in the positions described in division (i), (ii), (iii), or (iv), or (vii) of subparagraph (d) of paragraph (24) of Section 902 of this title, district attorneys, assistant district attorneys or other employees of the district attorney 's office, and any employees of a cou nty, county elected officials, county hospital, city or town, conservation district, circuit engineering district, and any public or private trust in which a county, city or town participates and is the primary beneficiary. C. An employee described by subsection A of this section shall become a participant in the defined contribution system and the employee shall not accrue any service credit in the Oklahoma Public Employees Retirement System as established pursuant to Section 901 et seq. of this title. RBH No. 11255 Req. No. 11255 Page 56 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 D. Employees who participate in the defined contribution system shall be deemed to begin service in the defined contribution system on the first day of the month following employm ent. E. An employee who begins participating in the defined benefit plan on or after November 1, 2015, in one of the positions described in subsection B of this section, shall continue to participate in the defined benefit plan only as long as he or she c ontinues to be employed in a position described in subsection B of this sectio n. F. Any employee employed on or after November 1, 2015, by the Legislative Service Bureau, State Senate or House of Representatives for the full duration of a regular legislat ive session shall be eligible for membership only in the defined contribution system regardless of classification as a temporary employee. The temporary session employee may participate in the defined contribution system during the regular legislative ses sion at the option of the employee. Once the temporary session employee makes a choice to participate, the choice shall be binding for all future legislative sessions during which the temporary session employee is employed. For purposes of this subparagr aph, the determination of whether an employee is employed for the full duration of a regular legislative session shall be made by the employer. SECTION 6. This act shall become effective July 1, 2025. SECTION 7. It being immediately necessary for the preservation of the public peace, health or safet y, an emergency is hereby RBH No. 11255 Req. No. 11255 Page 57 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 declared to exist, by reason whereof this act shall take effect and be in full force from and after its pas sage and approval. 60-1-11255 CMA 12/27/24 THOMAS E. CUMMINS CONSULTING ACTUARY, INC. 2512 E. 71 st Street , Suite D ∙ Tulsa, Oklahoma 74136 (918) 492-9658 ∙ (918) 492- 9659 January 13, 2025 Representative Strom Room 455N Re: RBH No. 11255 RBH No. 11255 would make CLEET active commissioned agents and CLEET certified agents of the Department Human Services who were hired on or after 7/01/2025 participants in the Oklahoma Law Enforcement Retirement System. Those agents hired prior to 7/01/2025 have the option of purchasing service prior to 7/01/2025 or have the 2. 5% retirement benefit based service after 6/30/2025 plus 2% on service prior to 7/01/2025. RBH No. 11255 is a fiscal bill as defined by OPLAAA because it will increase the Actuarial Accrued Liability. I am a member of the American Academy of Actuaries and meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion herein. Thomas E. Cummins Thomas E. Cummins, MAAA