Oklahoma 2025 Regular Session

Oklahoma House Bill HB1334 Compare Versions

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2828 STATE OF OKLAHOMA
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3030 1st Session of the 60th Legislature (2025)
3131
3232 HOUSE BILL 1334 By: Humphrey
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3838 AS INTRODUCED
3939
4040 An Act relating to public retirement systems;
4141 amending 74 O.S. 2021, Sections 1316.2, as amended by
4242 Section 5, Chapter 245, O.S.L. 2024 , and 1316.3 (74
4343 O.S. Supp. 2024, Section 1316.2) , which relate to
4444 insurance benefits; modifying the monthly premium
4545 amount for health insurance; and providing an
4646 effective date.
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5252 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
5353 SECTION 1. AMENDATORY 74 O.S. 2021, Section 1316.2, as
5454 amended by Section 5, Chapter 245, O.S.L. 2024 (74 O.S. Supp. 2024,
5555 Section 1316.2), is amended to read as follows:
5656 Section 1316.2. A. Any employee, other than an education
5757 employee, who retires pursuant to the provisions of the Oklahoma
5858 Public Employees Retirement System or who has a vested benefit
5959 pursuant to the provisions of the Oklahoma Public Employees
6060 Retirement System may continue in force the health and dental
6161 insurance benefits authorized by the provisions of the Oklahoma
6262 Employees Insurance and Benefit s Act, or other employer insurance
6363 benefits if the employer does not participate in the plans offered RBH No. 10048
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9090 by the Office of Management and Enterprise Services, if such
9191 election to continue in force is made within thirty (30) days from
9292 the date of termination of service. Except as otherwise provided
9393 for in subsection H of this section, health and dental insurance
9494 coverage may not be reinstated at a later time if the election to
9595 continue in force is declined. Vested employees other than
9696 education employees who h ave terminated service and are not
9797 receiving benefits and effective July 1, 1996, nonvested persons who
9898 have terminated service with more than eight (8) years of
9999 participating service with a participating employer, who within
100100 thirty (30) days from the date of termination of service elect to
101101 continue such coverage, shall pay the full cost of the insurance
102102 premium at the rate and pursuant to the terms and conditions
103103 established by the Office. Provided also, any employee other than
104104 an education employee who c ommences employment with a participating
105105 employer on or after September 1, 1991, who terminates service with
106106 such employer on or after July 1, 1996, but who otherwise has
107107 insufficient years of service to retire or terminate service with a
108108 vested benefit pursuant to the provisions of the Oklahoma Public
109109 Employees Retirement System or to elect to continue coverage as a
110110 nonvested employee as provided in this section, but who, immedia tely
111111 prior to employment with the participating employer, was covered as
112112 a dependent on the health and dental insurance policy of a spouse
113113 who was an active employee other than an education employee, may RBH No. 10048
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140140 count as part of his or her credited service for the purpose of
141141 determining eligibility to elect to continue coverage under this
142142 section, the time during which the terminating employee was covered
143143 as such a dependent.
144144 B. 1. Health insurance benefit plans offered pursuant to this
145145 section shall include:
146146 a. indemnity plans offered through the Office,
147147 b. managed care plans offered as a lternatives to the
148148 indemnity plans offered through the Office,
149149 c. Medicare supplements offered pursuant to the Oklahoma
150150 Employees Insurance and Benefits Act,
151151 d. Medicare risk-sharing contracts offered as
152152 alternatives to the Medicare supplements offered
153153 through the Office. All Medicare risk -sharing
154154 contracts shall be subject to a risk adjustment
155155 factor, based on generally accepted actuarial
156156 principles for adverse selection which m ay occur, and
157157 e. for the Oklahoma Public Employees Retirement System,
158158 other employer-provided health insurance benefit plans
159159 if the employer does not participate in the plans
160160 offered pursuant to the Oklahoma Employees Insurance
161161 and Benefits Act.
162162 2. Health insurance benefit plans offered pursuant to this
163163 section shall provide prescription drug benefits, except for plans RBH No. 10048
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190190 designed pursuant to the Medicare Prescription Drug Improvement and
191191 Modernization Act, pursuant to 42 USCA Section 1395w -101, et seq.,
192192 for which provision of prescription drug benefits is optional, and
193193 except for plans offered pursuant to subparagraph e of paragraph 1
194194 of this subsection.
195195 C. 1. Designated public retirement systems shall contribute a
196196 monthly amount towards the health insuranc e premium of certain
197197 individuals receiving benefits from the public retirement system as
198198 follows:
199199 a. a retired employee, other than an education employee
200200 or an employee who participates in the defined
201201 contribution system administered by the Oklahoma
202202 Public Employees Retirement System on or after
203203 November 1, 2015, who is receiving be nefits from the
204204 Oklahoma Public Employees Retirement System after
205205 September 30, 1988, on the effective date of this act
206206 shall have One Hundred Five Dollars ($105.00) Two
207207 Hundred Ten Dollars ($210.00) , or the premium rate of
208208 the health insurance benefit plan, whichever is less,
209209 paid by the Oklahoma Public Employees Retirement
210210 System to the Board or to another insurance carrier or
211211 other qualified benefits administrator of the employ er
212212 if the employer does not participate in the plans RBH No. 10048
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239239 offered by the Office in the manner specified in
240240 subsection G of this section,
241241 b. a retired employee or surviving spouse other than an
242242 education employee who is receiving benefits from the
243243 Oklahoma Law Enforcement Retirement System after
244244 September 30, 1988, on the effective date of this act
245245 is under sixty-five (65) years of age and is not
246246 otherwise eligible for Medicare shall have the premium
247247 rate for the health insurance benefit plan or One
248248 Hundred Five Dollars ($105.00) Two Hundred Ten Dollars
249249 ($210.00), whichever is less, paid b y the Oklahoma Law
250250 Enforcement Retirement System to the Office in the
251251 manner specified in subsection G of this section,
252252 c. a retired employee other than an education employee
253253 who is receiving benefits from the Oklahoma Law
254254 Enforcement Retirement System after September 30,
255255 1988, on the effective date of this act is sixty-five
256256 (65) years of age or older or who is under sixty -five
257257 (65) years of age and is eligible for Medicare shall
258258 have One Hundred Five Dollars ($105.00) Two Hundred
259259 Ten Dollars ($210.00) , or the premium rate of the
260260 health insurance benefit plan, whichever is less, paid
261261 by the Oklahoma Law Enforcement Retirement System to RBH No. 10048
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288288 the Office in the manner specified in subsecti on G of
289289 this section, and
290290 d. a retired employee other than an education employee
291291 who is receiving benefits from the Uniform Retirement
292292 System for Justices and Judges after September 30,
293293 1988, on the effective date of this act shall have One
294294 Hundred Five Dollars ($105.00) Two Hundred Ten Dollars
295295 ($210.00), or the premium rate of the health insurance
296296 plan, whichever is less, paid by the Uniform
297297 Retirement System for Justices and Judges to the
298298 Office in the manner specified in subsection G of this
299299 section.
300300 2. Premium payments made pursuant to this section shall be made
301301 subject to the following conditions:
302302 a. the health plan shall be authorized by the provisions
303303 of the Oklahoma Employees Insurance and Benefits Act,
304304 except that if an employer from which an emplo yee
305305 retired or with a vested benefit pursuant to the
306306 provisions of the Oklahom a Public Employees Retirement
307307 System does not participate in the plans authorized by
308308 the provisions of the Oklahoma Employees Insurance and
309309 Benefits Act, the health plan will be the health
310310 insurance benefits of the employer from which the
311311 individual retired or vested, RBH No. 10048
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338338 b. for plans offered by the Oklahoma Employees Insurance
339339 and Benefits Act, the amount to be paid shall be
340340 determined pursuant to the provisions of this
341341 subsection and shall first be applied in whole or in
342342 part to the prescription drug coverage premium. Any
343343 remaining amount shall be applied toward the medical
344344 coverage premium,
345345 c. for all plans, if the amount paid by the public
346346 retirement system does not cover the full cost of the
347347 elected coverage, the individual shall pay the
348348 remaining premium amount, and
349349 d. payment shall be made by the retirement systems in the
350350 manner specified under subsection G of this section.
351351 D. For any member of the Oklahoma Law Enforcement Reti rement
352352 System killed in the line of duty, whether the member was killed in
353353 the line of duty prior to May 18, 2005, or on or after May 18, 2005,
354354 or if the member was on a disability leave status at the time of
355355 death, the surviving spouse or dependents of su ch deceased member of
356356 the Oklahoma Law Enforcement Retirement System may elect to continue
357357 or commence health and dental insurance benefits, provided the
358358 dependents pay the full cost of such insurance, and for deaths
359359 occurring on or after July 1, 2002, suc h election is made within
360360 thirty (30) days of the date of death. The eligibil ity for the RBH No. 10048
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387387 benefits shall terminate for the surviving children when the
388388 children cease to qualify as dependents.
389389 E. Effective July 1, 2004, a retired member of the Oklahoma Law
390390 Enforcement Retirement System who retired from the System by means
391391 of a personal and traumatic injury of a catastrophic nature and in
392392 the line of duty and any surviving spouse of such retired member and
393393 any surviving spouse of a member who was killed in t he line of duty
394394 shall have one hundred percent (100%) of the retired member's or
395395 surviving spouse's health care premium cost, whether the member or
396396 surviving spouse elects coverage under the Medicare supplement or
397397 Medicare risk-sharing contract, paid by th e Oklahoma Law Enforcement
398398 Retirement System to the Office in the manner specified in
399399 subsection H of this section. For plans offered by the Office, such
400400 contributions will first be applied in whole or in part to the
401401 prescription drug coverage premium, if any.
402402 F. Dependents of a deceased employee who was on active work
403403 status or on a disability leave at the time of death or of a
404404 participating retardant or of any person who has elected to receive
405405 a vested benefit under the Oklahoma Public Employees Retirem ent
406406 System, the Uniform Retirement System for Justices and Judges or the
407407 Oklahoma Law Enforcement Retirement System may continue the health
408408 and dental insurance benefits in force, provided the dependents pay
409409 the full cost of such insurance and they were co vered as eligible
410410 dependents at the time of such death and such election is ma de RBH No. 10048
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437437 within thirty (30) days of date of death. The eligibility for the
438438 benefits shall terminate for the surviving children when the
439439 children cease to qualify as dependents.
440440 G. The amounts required to be paid by the Oklahoma Public
441441 Employees Retirement System, the Uniform Retirement System for
442442 Justices and Judges and the Oklahoma Law Enforcement Retirement
443443 System pursuant to this section shall be forwarded no later than the
444444 tenth day of each month following the month for which payment is due
445445 by the Oklahoma Public Employees Retirement System Board of Trustees
446446 or the Oklahoma Law Enforcement Retirement Board to the Office for
447447 deposit in the Health, Dental and Life Insurance Reserve F und or to
448448 another insurance carrier or other administrator of qualified
449449 benefits of the employer as provided for in subsection H of Section
450450 1315 of this title.
451451 H. Upon retirement from employment of the Board of Regents of
452452 the University of Oklahoma, any p erson who was or is employed at the
453453 George Nigh Rehabilitation Institute and w ho transferred employment
454454 pursuant to Section 3427 of Title 70 of the Oklahoma Statutes, any
455455 person who was employed at the Medical Technology and Research
456456 Authority and who tran sferred employment pursuant to Section 7068 of
457457 this title and any person who is a member of the Oklahoma Law
458458 Enforcement Retirement System pursuant to the authority of Section
459459 2-314 of Title 47 of the Oklahoma Statutes may participate in the
460460 benefits authorized by the provisions of the Oklahoma Employees RBH No. 10048
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487487 Insurance and Benefits Act f or retired participants including
488488 health, dental and life insurance benefits, if such election to
489489 participate is made within thirty (30) days from the date of
490490 termination of service. Life insurance benefits for any such person
491491 who transferred employment shall not exceed the coverage the person
492492 had at the time of such transfer. Retirees who transferred
493493 employment and who participate pursuant to this paragraph shall pay
494494 the premium for elected benefits less any amounts paid by a state
495495 retirement system purs uant to this section.
496496 SECTION 2. AMENDATORY 74 O.S. 2021, Section 1316.3, is
497497 amended to read as follows:
498498 Section 1316.3. A. Any person who retires pur suant to the
499499 provisions of the Teachers ' Retirement System of Oklahoma with at
500500 least ten (10) years of creditable service or who has a vested
501501 benefit with at least ten (10) years of creditable service, pursuant
502502 to the provisions of the Teachers ' Retirement System of Oklahoma may
503503 continue in force the health and dental insurance bene fits
504504 authorized by the provisions of the Oklahoma Employees Insurance and
505505 Benefits Act if such election to continue in force or begin is made
506506 within thirty (30) days from the dat e of termination of service.
507507 Except as provided in subsection E of Sections 5 -117.5 and 14-108.1
508508 of Title 70 of the Oklahoma Statutes and Section 840 -2.27I of this
509509 title and subsection K of this section, health and dental insurance
510510 coverage may not be rei nstated at a later time if the election to RBH No. 10048
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537537 continue in force or begin coverage is declined. Vested persons who
538538 have terminated service and are not receiving benefits and effective
539539 July 1, 1996, nonvested persons who have terminated service with
540540 more than ten (10) years of participating service with a qualifying
541541 employer, who within thirty (30) days from the date of termination
542542 of service, elect to continue such coverage, shall pay the full cost
543543 of said insurance premium at the rate and pursuant to the term s and
544544 conditions established by the Office of Management and Enterprise
545545 Services.
546546 B. 1. Health insurance benefit plans offered pursuant to this
547547 section shall include:
548548 a. indemnity plans offered through the Office,
549549 b. managed care plans offered as alterna tives to the
550550 indemnity plans,
551551 c. Medicare supplements offered through the Office,
552552 d. Medicare risk-sharing contracts offered as
553553 alternatives to the Medicare supplements offered
554554 through the Office, and
555555 e. any other employer-provided health insurance benefit
556556 plans if the employer does not participate in the
557557 plans offered pursuant to t he Oklahoma Employees
558558 Insurance and Benefits Act.
559559 2. Health insurance benefit plans offered pursuant to this
560560 section shall provide prescription drug benefits, except for plans RBH No. 10048
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587587 designed pursuant to the Medicare Prescription Drug Improvement and
588588 Modernization Act of 2003, which may or may not contain prescription
589589 drug benefits, for which provision of prescription drug benefits is
590590 optional, and except for plans offered pursuant to s ubparagraph e of
591591 paragraph 1 of this subsection.
592592 C. A retired person who:
593593 1. Is receiving benefits from the Teachers ' Retirement System
594594 of Oklahoma after September 30, 1988, is under sixty -five (65) years
595595 of age and is not otherwise eligible for Medicare and pursuant to
596596 subsection A of this section elects to begin or to continue the
597597 health insurance plan;
598598 2. Is receiving benefits from the Teachers ' Retirement System
599599 of Oklahoma after June 30, 1993, is under sixty -five (65) years of
600600 age and is not otherwi se eligible for Medicare and participates in a
601601 health insurance plan provided by a participating education employer
602602 of the Teachers' Retirement System of Oklahoma other than a health
603603 insurance plan offered pursuant to the Oklahoma Employees Insurance
604604 and Benefits Act or an alternative health plan offered pursuant to
605605 the Oklahoma State Employees Benefits Act;
606606 3. Is receiving benefits from the Teachers ' Retirement System
607607 of Oklahoma after September 30, 1988, made contributions to the
608608 system and is sixty-five (65) years of age or older, or who is under
609609 sixty-five (65) years of age and is eligible for Medicare and is a
610610 participant in the Oklahoma Employees Insurance and Benefits Act and RBH No. 10048
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637637 elects coverage under the Medicare supplement offered by the Office;
638638 or
639639 4. Is receiving benefits from the Teachers ' Retirement System
640640 of Oklahoma after June 30, 1993, made contributions to the system
641641 and is sixty-five (65) years of age or older, or who is under sixty -
642642 five (65) years of age and is eligible for Medicare and partic ipates
643643 in a health insurance plan provided by a participating education
644644 employer of the Teachers' Retirement System of Oklahoma other than a
645645 health insurance plan offered pursuant to the Oklahoma Employees
646646 Insurance and Benefits Act or an alternative healt h plan offered
647647 pursuant to the Oklahoma State Employees Benefits Act and elects
648648 coverage under the Medicare supplement offered by the Office,
649649 shall have the amount determined pursuant to subsection E of this
650650 section, or the premium rate of the health insur ance benefit plan,
651651 whichever is less, paid by the Teachers ' Retirement System of
652652 Oklahoma. If the amount paid by the Teachers ' Retirement System of
653653 Oklahoma does not cover the full cost of the health insurance
654654 premium, the retired person shall pay the rem aining amount if the
655655 retired person wants to continue the coverage.
656656 D. The Teachers' Retirement System shall pay the amount due
657657 pursuant to the provisions of subsection C of this section as
658658 follows:
659659 1. For those individuals participating in plans provide d
660660 through the Oklahoma Employees Insurance and Benefits Act, payment RBH No. 10048
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687687 shall be made to the Office pursuant to the provisions of subsection
688688 I of this section; or
689689 2. For those individuals participating in plans provided
690690 through a participating education empl oyer of the Teachers '
691691 Retirement System of Oklahoma other than a health insurance plan
692692 offered pursuant to the Oklahoma Employees Insurance and Benefits
693693 Act, payment shall be made to the education employer.
694694 E. Beginning July 1, 2000 November 1, 2025, the maximum benefit
695695 payable by the Teachers ' Retirement System of Oklahoma on beha lf of
696696 a retired person toward said person 's monthly premium for health
697697 insurance shall be determined in accordance with the following
698698 schedule:
699699 LESS THAN
700700 25 YEARS BUT GREATER
701701 LESS THAN GREATER THAN THAN 24.99
702702 AVERAGE SALARY 15 YEARS OF 14.99 YEARS OF YEARS OF
703703 USED FOR DETERMINING CREDITABLE CREDITABLE CREDITABLE
704704 RETIREMENT ALLOWANCE SERVICE SERVICE SERVICE
705705 Less than $20,000.00 $103.00 $104.00 $105.00
706706 Less than $30,000.00 b ut
707707 greater than $19,999.99 $102.00 $103.00 $104.00
708708 Less than $40,000.00 but
709709 greater than $29,999.99 $101.00 $102.00 $103.00
710710 $40,000.00 or greater $100.00 $101.00 $102.00 RBH No. 10048
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737737 LESS THAN
738738 25 YEARS BUT GREATER
739739 LESS THAN GREATER THAN THAN 24.99
740740 AVERAGE SALARY 15 YEARS OF 14.99 YEARS OF YEARS OF
741741 USED FOR DETERMINING CREDITABLE CREDITABLE CREDITABLE
742742 RETIREMENT ALLOWANCE SERVICE SERVICE SERVICE
743743 Less than $20,000.00 $206.00 $208.00 $210.00
744744 Less than $30,000.00 but
745745 greater than $19,999.99 $204.00 $206.00 $208.00
746746 Less than $40,000.00 but
747747 greater than $29,999.99 $202.00 $204.00 $206.00
748748 $40,000.00 or greater $200.00 $202.00 $204.00
749749 For plans offered by the Office, the amount paid pursuant to
750750 this subsection shall first be applied to the prescription drug
751751 coverage premium, if any. Any remaining amounts shall be applied
752752 towards the medical coverage premium.
753753 F. If a person retires and begins to receive benefits from the
754754 Teachers' Retirement System of Oklahoma or terminates service and
755755 has a vested benefit with the Teach ers' Retirement System of
756756 Oklahoma, the person may elect, in the manner provid ed in subsection
757757 A of this section, to participate in the dental insurance plan
758758 offered through the Oklahoma Employees Insurance and Benefits Act.
759759 The person shall pay the full cost of the dental insurance. RBH No. 10048
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786786 G. Those persons who are receiving benefits from the Teachers '
787787 Retirement System of Oklahoma and have health insurance coverage
788788 which on the operative date of this section is being paid by the
789789 education entity from which the person retired shall make the
790790 election required in subsection A of this secti on within thirty (30)
791791 days of the termination of said health insurance coverage. The
792792 person making the election shall give the Office certified
793793 documentation satisfactory to the Office of the termination date of
794794 the other health insurance coverage.
795795 H. Dependents of a deceased education employee who was on
796796 active work status or on a disability leave at the time of death or
797797 of a participating retirant or of any person who has elec ted to
798798 receive a vested benefit under the Teachers ' Retirement System of
799799 Oklahoma may continue the health and dental insurance benefits in
800800 force provided said dependents pay the full cost of such insurance
801801 and they were covered as eligible dependents at th e time of such
802802 death and such election is made within thirty (30) days of date of
803803 death. The eligibility for said benefits shall terminate for the
804804 surviving children when said children cease to qualify as
805805 dependents.
806806 I. The amounts required to be paid by the Teachers' Retirement
807807 System of Oklahoma pursuant to this section shall be forwarded no
808808 later than the tenth day of each month following the month for which
809809 payment is due by the Board of Trustees of the Teachers ' Retirement RBH No. 10048
810810
811811 Req. No. 10048 Page 17 1
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836836 System of Oklahoma to the O ffice for deposit in the Education
837837 Employees Group Insurance Reserve Fund.
838838 J. The Teachers' Retirement System of Oklahoma shall provide
839839 the Office information concerning the employers of retired and
840840 vested members necessary to allow the Office to track el igibility
841841 for continued coverage.
842842 K. Upon retirement from employment with the Board of Regents of
843843 the University of Oklahoma, any person who is or was employed at the
844844 George Nigh Rehabilitation Institute and who transferred employment
845845 pursuant to Section 3427 of Title 70 of the Oklahoma Statutes, any
846846 person who was employed at the Medical Technology and Research
847847 Authority and who transferred employment pursuant to Section 7068 of
848848 this title, and any person who is a member of the Oklahoma Law
849849 Enforcement Retirement System pursuant to the authority of Section
850850 2-314 of Title 47 of the Oklahoma Statutes may participate in the
851851 benefits authorized by the provisions of the Oklahoma Employees
852852 Insurance and Benefits Act for retired participants, including
853853 health, dental and life insurance benefits, if such election to
854854 participate is made within thirty (30) days from the date of
855855 termination of employment. Life insurance benefits for any such
856856 person who transferred employment shall not exceed the coverage the
857857 person had at the time of such transfer. Retirees who are persons
858858 transferred employment and who participate pursuant to this RBH No. 10048
859859
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885885 paragraph shall pay the premium for elected benefits less any
886886 amounts paid by the retirement system pursuant to this section.
887887 SECTION 3. This act shall become effective November 1, 2025.
888888
889889 60-1-10048 CMA 01/02/25
890890
891891 THOMAS E. CUMMINS CONSULTING ACTUARY, INC.
892892 2512 E. 71
893893 st
894894 Street , Suite D ∙ Tulsa, Oklahoma 74136
895895 (918) 492-9658 ∙ (918) 492- 9659
896896
897897
898898
899899
900900 January 13, 2025
901901
902902
903903
904904 Representative Humphrey
905905 Room 301S
906906
907907
908908 Re: RBH No. 10048
909909
910910 RBH No. 10048 doubles the medical supplement benefit for all the
911911 State’s retirement systems retired participants. Currently the
912912 benefit is $105. 00 per month for most participants. Teachers have a
913913 schedule of payment based on service and benefit.
914914
915915
916916
917917 RBH No. 10048 is a fiscal bill as defined by OPLAAA.
918918
919919 I am a member of the American Academy of Actuaries and meet the
920920 Qualification Standards of the American Academy of Actuaries to
921921 render the actuarial opinion herein.
922922
923923
924924 Thomas E. Cummins
925925
926926 Thomas E. Cummins, MAAA
927927
928928