RBH No. 11377
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SENATE FLOOR VERSION
April 15, 2025
ENGROSSED HOUSE
BILL NO. 1458 By: Kane of the House
and
Daniels of the Senate
An Act relating to the Oklahoma Public Employees
Retirement System; amending 74 O.S. 2021, Section
916.1, which relates to death benefits; permitting
beneficiaries to disclaim death benefits; providing
for transfer of death benefits; providing that
disclaimer shall be in writing; providing time period
disclaimer is to be received by the transferor;
discharging and releasing System f rom liability,
obligation, and costs; and providing an effective
date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 74 O.S. 2021, Section 916.1, is
amended to read as follows:
Section 916.1. A. Upon the death of a retired member, the
Oklahoma Public Employees Retirement System shall pay to the
beneficiary of the member or if there is no beneficiary or if the
beneficiary predeceases the member, to the estate of the member, the
sum of Four Thousand Dollars ($4,000.00) as a death benefit for
those retired members who died prior to July 1, 1999. For those
retired members who died on or after July 1, 1999, the sum shall be RBH No. 11377
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Five Thousand Dollars ($5,000.00). The benefit payable pursuant to
this subsection shall be deemed, for purposes of federal income
taxation, as life insurance proceeds and not as a death benefit if
the Internal Revenue Service approves this provision pursuant to a
private letter ruling request which shall be submitted by the board
of trustees of the System for that purpose.
B. Upon the death of a me mber who dies leaving no living
beneficiary or having designated his estate as beneficiary, the
System may pay any applicable death benefit, unpaid contributions,
or unpaid benefit which may be subject to probate, in an amount of
Twenty-five Thousand Dollars ($25,000.00) or less, without the
intervention of the probate court or probate procedure pursuant to
Section 1 et seq. of Title 58 of the Oklahoma Statutes.
1. Before any applicable probate procedure may be waived, the
System must be in receipt of the member's proof of death and the
following documents from those persons claiming to be the legal
heirs of the deceased member:
a. the member's valid last will and testament, trust
documents or affidavit that a will does not exist,
b. an affidavit or affidavits of heirship which must
state:
(1) the names and signatures of all claiming heirs to
the deceased member's estate including the
claiming heirs' names, relationship to the RBH No. 11377
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deceased, current addresses and current telephone
numbers,
(2) a statement or statements by the claiming heirs
that no application or petition for the
appointment of a personal representative is
pending or has been granted in any jurisdiction,
(3) a description of the personal property claimed
(i.e., death benefit or unpaid contributions or
both), together with a statement that such
personal property is subject to probate, and
(4) a statement by each individual claiming heir
identifying the amount of personal property that
the heir is claiming from the System, and that
the heir has been notified of, is aware of and
consents to the identified claims of all the
other claiming heirs of the deceased member
pending with the System,
c. a written agreement or agreements signed by all
claiming heirs of the deceased member which provides
that the claiming heirs release, discharge and hold
harmless the System from any and all liability,
obligations and costs which it may incur as a result
of making a payment to any of the deceased member's
heirs, RBH No. 11377
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d. a corroborating affidavit from an individual other
than a claiming heir, who was familiar with the
affairs of the deceased member, and
e. proof that all debts of the deceased member, including
payment of last sickness, hospital, medical , death,
funeral and burial expenses have been paid or provided
for.
2. The Executive Director of the System shall retain complete
discretion in determining which requests for probate waiver may be
granted or denied, for any reason. Should the System hav e any
question as to the validity of any document presented by the
claiming heirs, or as to any statement or assertion contained
therein, the probate requirement provided for in Section 1 et seq.
of Title 58 of the Oklahoma Statutes shall not be waived.
3. After paying any death benefits or unpaid contributions to
any claiming heirs as provided pursuant to this subsection, the
System is discharged and released from any and all liability,
obligation and costs to the same extent as if the System had dealt
with a personal representative of the deceased member. The System
is not required to inquire into the truth of any matter specified in
this subsection or into the payment of any estate tax liability.
C. Death The beneficiary or beneficiaries of death benefits
provided pursuant to this section may be assigned by the beneficiary
elect to disclaim the death benefits, in which case such benefits RBH No. 11377
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shall be transferred to a person licensed as a funeral director or
to a lawfully recognized business entity licensed as required by law
to provide funeral services for the deceased member . The qualified
disclaimer shall be in writing and shall be an irrevocable and
unqualified refusal to accept all or a portion of the death benefit.
It shall be received by the transfer or no more than nine (9) months
after the later of the day the transfer creating the interest in the
disclaiming person is made or the day the disclaiming person attains
age twenty-one (21). The interest in the death benefits shall pass
without direction by the disclaiming person to another person.
After paying death benef its to any beneficiary or the member 's
estate pursuant to this subsection, the System shall be discharged
and released from any and all liability, obligation, and costs. The
System is not required to inquire into the truth of any matter
specified in this subsection or into the payment of any tax
liability.
SECTION 2. This act shall become effective November 1, 2025.
COMMITTEE REPORT BY: COMMITTEE ON RETIREMENT AND GOVERN MENT
RESOURCES
April 15, 2025 - DO PASS