RBH No. 10048
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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
HOUSE BILL 1334 By: Humphrey
AS INTRODUCED
An Act relating to public retirement systems;
amending 74 O.S. 2021, Sections 1316.2, as amended by
Section 5, Chapter 245, O.S.L. 2024 , and 1316.3 (74
O.S. Supp. 2024, Section 1316.2) , which relate to
insurance benefits; modifying the monthly premium
amount for health insurance; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 74 O.S. 2021, Section 1316.2, as
amended by Section 5, Chapter 245, O.S.L. 2024 (74 O.S. Supp. 2024,
Section 1316.2), is amended to read as follows:
Section 1316.2. A. Any employee, other than an education
employee, who retires pursuant to the provisions of the Oklahoma
Public Employees Retirement System or who has a vested benefit
pursuant to the provisions of the Oklahoma Public Employees
Retirement System may continue in force the health and dental
insurance benefits authorized by the provisions of the Oklahoma
Employees Insurance and Benefit s Act, or other employer insurance
benefits if the employer does not participate in the plans offered RBH No. 10048
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by the Office of Management and Enterprise Services, if such
election to continue in force is made within thirty (30) days from
the date of termination of service. Except as otherwise provided
for in subsection H of this section, health and dental insurance
coverage may not be reinstated at a later time if the election to
continue in force is declined. Vested employees other than
education employees who h ave terminated service and are not
receiving benefits and effective July 1, 1996, nonvested persons who
have terminated service with more than eight (8) years of
participating service with a participating employer, who within
thirty (30) days from the date of termination of service elect to
continue such coverage, shall pay the full cost of the insurance
premium at the rate and pursuant to the terms and conditions
established by the Office. Provided also, any employee other than
an education employee who c ommences employment with a participating
employer on or after September 1, 1991, who terminates service with
such employer on or after July 1, 1996, but who otherwise has
insufficient years of service to retire or terminate service with a
vested benefit pursuant to the provisions of the Oklahoma Public
Employees Retirement System or to elect to continue coverage as a
nonvested employee as provided in this section, but who, immedia tely
prior to employment with the participating employer, was covered as
a dependent on the health and dental insurance policy of a spouse
who was an active employee other than an education employee, may RBH No. 10048
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count as part of his or her credited service for the purpose of
determining eligibility to elect to continue coverage under this
section, the time during which the terminating employee was covered
as such a dependent.
B. 1. Health insurance benefit plans offered pursuant to this
section shall include:
a. indemnity plans offered through the Office,
b. managed care plans offered as a lternatives to the
indemnity plans offered through the Office,
c. Medicare supplements offered pursuant to the Oklahoma
Employees Insurance and Benefits Act,
d. Medicare risk-sharing contracts offered as
alternatives to the Medicare supplements offered
through the Office. All Medicare risk -sharing
contracts shall be subject to a risk adjustment
factor, based on generally accepted actuarial
principles for adverse selection which m ay occur, and
e. for the Oklahoma Public Employees Retirement System,
other employer-provided health insurance benefit plans
if the employer does not participate in the plans
offered pursuant to the Oklahoma Employees Insurance
and Benefits Act.
2. Health insurance benefit plans offered pursuant to this
section shall provide prescription drug benefits, except for plans RBH No. 10048
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designed pursuant to the Medicare Prescription Drug Improvement and
Modernization Act, pursuant to 42 USCA Section 1395w -101, et seq.,
for which provision of prescription drug benefits is optional, and
except for plans offered pursuant to subparagraph e of paragraph 1
of this subsection.
C. 1. Designated public retirement systems shall contribute a
monthly amount towards the health insuranc e premium of certain
individuals receiving benefits from the public retirement system as
follows:
a. a retired employee, other than an education employee
or an employee who participates in the defined
contribution system administered by the Oklahoma
Public Employees Retirement System on or after
November 1, 2015, who is receiving be nefits from the
Oklahoma Public Employees Retirement System after
September 30, 1988, on the effective date of this act
shall have One Hundred Five Dollars ($105.00) Two
Hundred Ten Dollars ($210.00) , or the premium rate of
the health insurance benefit plan, whichever is less,
paid by the Oklahoma Public Employees Retirement
System to the Board or to another insurance carrier or
other qualified benefits administrator of the employ er
if the employer does not participate in the plans RBH No. 10048
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offered by the Office in the manner specified in
subsection G of this section,
b. a retired employee or surviving spouse other than an
education employee who is receiving benefits from the
Oklahoma Law Enforcement Retirement System after
September 30, 1988, on the effective date of this act
is under sixty-five (65) years of age and is not
otherwise eligible for Medicare shall have the premium
rate for the health insurance benefit plan or One
Hundred Five Dollars ($105.00) Two Hundred Ten Dollars
($210.00), whichever is less, paid b y the Oklahoma Law
Enforcement Retirement System to the Office in the
manner specified in subsection G of this section,
c. a retired employee other than an education employee
who is receiving benefits from the Oklahoma Law
Enforcement Retirement System after September 30,
1988, on the effective date of this act is sixty-five
(65) years of age or older or who is under sixty -five
(65) years of age and is eligible for Medicare shall
have One Hundred Five Dollars ($105.00) Two Hundred
Ten Dollars ($210.00) , or the premium rate of the
health insurance benefit plan, whichever is less, paid
by the Oklahoma Law Enforcement Retirement System to RBH No. 10048
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the Office in the manner specified in subsecti on G of
this section, and
d. a retired employee other than an education employee
who is receiving benefits from the Uniform Retirement
System for Justices and Judges after September 30,
1988, on the effective date of this act shall have One
Hundred Five Dollars ($105.00) Two Hundred Ten Dollars
($210.00), or the premium rate of the health insurance
plan, whichever is less, paid by the Uniform
Retirement System for Justices and Judges to the
Office in the manner specified in subsection G of this
section.
2. Premium payments made pursuant to this section shall be made
subject to the following conditions:
a. the health plan shall be authorized by the provisions
of the Oklahoma Employees Insurance and Benefits Act,
except that if an employer from which an emplo yee
retired or with a vested benefit pursuant to the
provisions of the Oklahom a Public Employees Retirement
System does not participate in the plans authorized by
the provisions of the Oklahoma Employees Insurance and
Benefits Act, the health plan will be the health
insurance benefits of the employer from which the
individual retired or vested, RBH No. 10048
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b. for plans offered by the Oklahoma Employees Insurance
and Benefits Act, the amount to be paid shall be
determined pursuant to the provisions of this
subsection and shall first be applied in whole or in
part to the prescription drug coverage premium. Any
remaining amount shall be applied toward the medical
coverage premium,
c. for all plans, if the amount paid by the public
retirement system does not cover the full cost of the
elected coverage, the individual shall pay the
remaining premium amount, and
d. payment shall be made by the retirement systems in the
manner specified under subsection G of this section.
D. For any member of the Oklahoma Law Enforcement Reti rement
System killed in the line of duty, whether the member was killed in
the line of duty prior to May 18, 2005, or on or after May 18, 2005,
or if the member was on a disability leave status at the time of
death, the surviving spouse or dependents of su ch deceased member of
the Oklahoma Law Enforcement Retirement System may elect to continue
or commence health and dental insurance benefits, provided the
dependents pay the full cost of such insurance, and for deaths
occurring on or after July 1, 2002, suc h election is made within
thirty (30) days of the date of death. The eligibil ity for the RBH No. 10048
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benefits shall terminate for the surviving children when the
children cease to qualify as dependents.
E. Effective July 1, 2004, a retired member of the Oklahoma Law
Enforcement Retirement System who retired from the System by means
of a personal and traumatic injury of a catastrophic nature and in
the line of duty and any surviving spouse of such retired member and
any surviving spouse of a member who was killed in t he line of duty
shall have one hundred percent (100%) of the retired member's or
surviving spouse's health care premium cost, whether the member or
surviving spouse elects coverage under the Medicare supplement or
Medicare risk-sharing contract, paid by th e Oklahoma Law Enforcement
Retirement System to the Office in the manner specified in
subsection H of this section. For plans offered by the Office, such
contributions will first be applied in whole or in part to the
prescription drug coverage premium, if any.
F. Dependents of a deceased employee who was on active work
status or on a disability leave at the time of death or of a
participating retardant or of any person who has elected to receive
a vested benefit under the Oklahoma Public Employees Retirem ent
System, the Uniform Retirement System for Justices and Judges or the
Oklahoma Law Enforcement Retirement System may continue the health
and dental insurance benefits in force, provided the dependents pay
the full cost of such insurance and they were co vered as eligible
dependents at the time of such death and such election is ma de RBH No. 10048
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within thirty (30) days of date of death. The eligibility for the
benefits shall terminate for the surviving children when the
children cease to qualify as dependents.
G. The amounts required to be paid by the Oklahoma Public
Employees Retirement System, the Uniform Retirement System for
Justices and Judges and the Oklahoma Law Enforcement Retirement
System pursuant to this section shall be forwarded no later than the
tenth day of each month following the month for which payment is due
by the Oklahoma Public Employees Retirement System Board of Trustees
or the Oklahoma Law Enforcement Retirement Board to the Office for
deposit in the Health, Dental and Life Insurance Reserve F und or to
another insurance carrier or other administrator of qualified
benefits of the employer as provided for in subsection H of Section
1315 of this title.
H. Upon retirement from employment of the Board of Regents of
the University of Oklahoma, any p erson who was or is employed at the
George Nigh Rehabilitation Institute and w ho transferred employment
pursuant to Section 3427 of Title 70 of the Oklahoma Statutes, any
person who was employed at the Medical Technology and Research
Authority and who tran sferred employment pursuant to Section 7068 of
this title and any person who is a member of the Oklahoma Law
Enforcement Retirement System pursuant to the authority of Section
2-314 of Title 47 of the Oklahoma Statutes may participate in the
benefits authorized by the provisions of the Oklahoma Employees RBH No. 10048
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Insurance and Benefits Act f or retired participants including
health, dental and life insurance benefits, if such election to
participate is made within thirty (30) days from the date of
termination of service. Life insurance benefits for any such person
who transferred employment shall not exceed the coverage the person
had at the time of such transfer. Retirees who transferred
employment and who participate pursuant to this paragraph shall pay
the premium for elected benefits less any amounts paid by a state
retirement system purs uant to this section.
SECTION 2. AMENDATORY 74 O.S. 2021, Section 1316.3, is
amended to read as follows:
Section 1316.3. A. Any person who retires pur suant to the
provisions of the Teachers ' Retirement System of Oklahoma with at
least ten (10) years of creditable service or who has a vested
benefit with at least ten (10) years of creditable service, pursuant
to the provisions of the Teachers ' Retirement System of Oklahoma may
continue in force the health and dental insurance bene fits
authorized by the provisions of the Oklahoma Employees Insurance and
Benefits Act if such election to continue in force or begin is made
within thirty (30) days from the dat e of termination of service.
Except as provided in subsection E of Sections 5 -117.5 and 14-108.1
of Title 70 of the Oklahoma Statutes and Section 840 -2.27I of this
title and subsection K of this section, health and dental insurance
coverage may not be rei nstated at a later time if the election to RBH No. 10048
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continue in force or begin coverage is declined. Vested persons who
have terminated service and are not receiving benefits and effective
July 1, 1996, nonvested persons who have terminated service with
more than ten (10) years of participating service with a qualifying
employer, who within thirty (30) days from the date of termination
of service, elect to continue such coverage, shall pay the full cost
of said insurance premium at the rate and pursuant to the term s and
conditions established by the Office of Management and Enterprise
Services.
B. 1. Health insurance benefit plans offered pursuant to this
section shall include:
a. indemnity plans offered through the Office,
b. managed care plans offered as alterna tives to the
indemnity plans,
c. Medicare supplements offered through the Office,
d. Medicare risk-sharing contracts offered as
alternatives to the Medicare supplements offered
through the Office, and
e. any other employer-provided health insurance benefit
plans if the employer does not participate in the
plans offered pursuant to t he Oklahoma Employees
Insurance and Benefits Act.
2. Health insurance benefit plans offered pursuant to this
section shall provide prescription drug benefits, except for plans RBH No. 10048
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designed pursuant to the Medicare Prescription Drug Improvement and
Modernization Act of 2003, which may or may not contain prescription
drug benefits, for which provision of prescription drug benefits is
optional, and except for plans offered pursuant to s ubparagraph e of
paragraph 1 of this subsection.
C. A retired person who:
1. Is receiving benefits from the Teachers ' Retirement System
of Oklahoma after September 30, 1988, is under sixty -five (65) years
of age and is not otherwise eligible for Medicare and pursuant to
subsection A of this section elects to begin or to continue the
health insurance plan;
2. Is receiving benefits from the Teachers ' Retirement System
of Oklahoma after June 30, 1993, is under sixty -five (65) years of
age and is not otherwi se eligible for Medicare and participates in a
health insurance plan provided by a participating education employer
of the Teachers' Retirement System of Oklahoma other than a health
insurance plan offered pursuant to the Oklahoma Employees Insurance
and Benefits Act or an alternative health plan offered pursuant to
the Oklahoma State Employees Benefits Act;
3. Is receiving benefits from the Teachers ' Retirement System
of Oklahoma after September 30, 1988, made contributions to the
system and is sixty-five (65) years of age or older, or who is under
sixty-five (65) years of age and is eligible for Medicare and is a
participant in the Oklahoma Employees Insurance and Benefits Act and RBH No. 10048
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elects coverage under the Medicare supplement offered by the Office;
or
4. Is receiving benefits from the Teachers ' Retirement System
of Oklahoma after June 30, 1993, made contributions to the system
and is sixty-five (65) years of age or older, or who is under sixty -
five (65) years of age and is eligible for Medicare and partic ipates
in a health insurance plan provided by a participating education
employer of the Teachers' Retirement System of Oklahoma other than a
health insurance plan offered pursuant to the Oklahoma Employees
Insurance and Benefits Act or an alternative healt h plan offered
pursuant to the Oklahoma State Employees Benefits Act and elects
coverage under the Medicare supplement offered by the Office,
shall have the amount determined pursuant to subsection E of this
section, or the premium rate of the health insur ance benefit plan,
whichever is less, paid by the Teachers ' Retirement System of
Oklahoma. If the amount paid by the Teachers ' Retirement System of
Oklahoma does not cover the full cost of the health insurance
premium, the retired person shall pay the rem aining amount if the
retired person wants to continue the coverage.
D. The Teachers' Retirement System shall pay the amount due
pursuant to the provisions of subsection C of this section as
follows:
1. For those individuals participating in plans provide d
through the Oklahoma Employees Insurance and Benefits Act, payment RBH No. 10048
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shall be made to the Office pursuant to the provisions of subsection
I of this section; or
2. For those individuals participating in plans provided
through a participating education empl oyer of the Teachers '
Retirement System of Oklahoma other than a health insurance plan
offered pursuant to the Oklahoma Employees Insurance and Benefits
Act, payment shall be made to the education employer.
E. Beginning July 1, 2000 November 1, 2025, the maximum benefit
payable by the Teachers ' Retirement System of Oklahoma on beha lf of
a retired person toward said person 's monthly premium for health
insurance shall be determined in accordance with the following
schedule:
LESS THAN
25 YEARS BUT GREATER
LESS THAN GREATER THAN THAN 24.99
AVERAGE SALARY 15 YEARS OF 14.99 YEARS OF YEARS OF
USED FOR DETERMINING CREDITABLE CREDITABLE CREDITABLE
RETIREMENT ALLOWANCE SERVICE SERVICE SERVICE
Less than $20,000.00 $103.00 $104.00 $105.00
Less than $30,000.00 b ut
greater than $19,999.99 $102.00 $103.00 $104.00
Less than $40,000.00 but
greater than $29,999.99 $101.00 $102.00 $103.00
$40,000.00 or greater $100.00 $101.00 $102.00 RBH No. 10048
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LESS THAN
25 YEARS BUT GREATER
LESS THAN GREATER THAN THAN 24.99
AVERAGE SALARY 15 YEARS OF 14.99 YEARS OF YEARS OF
USED FOR DETERMINING CREDITABLE CREDITABLE CREDITABLE
RETIREMENT ALLOWANCE SERVICE SERVICE SERVICE
Less than $20,000.00 $206.00 $208.00 $210.00
Less than $30,000.00 but
greater than $19,999.99 $204.00 $206.00 $208.00
Less than $40,000.00 but
greater than $29,999.99 $202.00 $204.00 $206.00
$40,000.00 or greater $200.00 $202.00 $204.00
For plans offered by the Office, the amount paid pursuant to
this subsection shall first be applied to the prescription drug
coverage premium, if any. Any remaining amounts shall be applied
towards the medical coverage premium.
F. If a person retires and begins to receive benefits from the
Teachers' Retirement System of Oklahoma or terminates service and
has a vested benefit with the Teach ers' Retirement System of
Oklahoma, the person may elect, in the manner provid ed in subsection
A of this section, to participate in the dental insurance plan
offered through the Oklahoma Employees Insurance and Benefits Act.
The person shall pay the full cost of the dental insurance. RBH No. 10048
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G. Those persons who are receiving benefits from the Teachers '
Retirement System of Oklahoma and have health insurance coverage
which on the operative date of this section is being paid by the
education entity from which the person retired shall make the
election required in subsection A of this secti on within thirty (30)
days of the termination of said health insurance coverage. The
person making the election shall give the Office certified
documentation satisfactory to the Office of the termination date of
the other health insurance coverage.
H. Dependents of a deceased education employee who was on
active work status or on a disability leave at the time of death or
of a participating retirant or of any person who has elec ted to
receive a vested benefit under the Teachers ' Retirement System of
Oklahoma may continue the health and dental insurance benefits in
force provided said dependents pay the full cost of such insurance
and they were covered as eligible dependents at th e time of such
death and such election is made within thirty (30) days of date of
death. The eligibility for said benefits shall terminate for the
surviving children when said children cease to qualify as
dependents.
I. The amounts required to be paid by the Teachers' Retirement
System of Oklahoma pursuant to this section shall be forwarded no
later than the tenth day of each month following the month for which
payment is due by the Board of Trustees of the Teachers ' Retirement RBH No. 10048
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System of Oklahoma to the O ffice for deposit in the Education
Employees Group Insurance Reserve Fund.
J. The Teachers' Retirement System of Oklahoma shall provide
the Office information concerning the employers of retired and
vested members necessary to allow the Office to track el igibility
for continued coverage.
K. Upon retirement from employment with the Board of Regents of
the University of Oklahoma, any person who is or was employed at the
George Nigh Rehabilitation Institute and who transferred employment
pursuant to Section 3427 of Title 70 of the Oklahoma Statutes, any
person who was employed at the Medical Technology and Research
Authority and who transferred employment pursuant to Section 7068 of
this title, and any person who is a member of the Oklahoma Law
Enforcement Retirement System pursuant to the authority of Section
2-314 of Title 47 of the Oklahoma Statutes may participate in the
benefits authorized by the provisions of the Oklahoma Employees
Insurance and Benefits Act for retired participants, including
health, dental and life insurance benefits, if such election to
participate is made within thirty (30) days from the date of
termination of employment. Life insurance benefits for any such
person who transferred employment shall not exceed the coverage the
person had at the time of such transfer. Retirees who are persons
transferred employment and who participate pursuant to this RBH No. 10048
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paragraph shall pay the premium for elected benefits less any
amounts paid by the retirement system pursuant to this section.
SECTION 3. This act shall become effective November 1, 2025.
60-1-10048 CMA 01/02/25
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 Humphrey
Room 301S
Re: RBH No. 10048
RBH No. 10048 doubles the medical supplement benefit for all the
State’s retirement systems retired participants. Currently the
benefit is $105. 00 per month for most participants. Teachers have a
schedule of payment based on service and benefit.
RBH No. 10048 is a fiscal bill as defined by OPLAAA.
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