RBH No. 10889
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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
HOUSE BILL 1739 By: Moore
AS INTRODUCED
An Act relating to retirement; amending 47 O.S. 2021,
Sections 2-304 and 2-305, which relate to the
Oklahoma Law Enforcement Retirement Sy stem; modifying
employer contribution; modifying employee
contribution; modifying top base salary provisions;
modifying positions that receive certain benefit
computation; providing that certain provisions apply
to certain individuals; providing an effecti ve date;
and declaring an emergency .
BE IT ENACTED BY THE PEOPLE O F THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 47 O.S. 2021, Section 2 -304, is
amended to read as follows:
Section 2-304. A. The Department of Public Safety, the
Oklahoma State Bureau of Investigation, the Oklahoma State Bureau of
Narcotics and Dangerous Drugs Control, the Alcoholic Beverage
Control Board, the Oklahoma Tourism and Recreation Department and
the State Board of Pharmacy shall make contribu tions to the fund as
follows:
The Department of Public Safety, Oklahoma State Bureau of
Investigation, Oklahoma State Bureau of Narcotics and Dangerous RBH No. 10889
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Drugs Control, the Alcoholic Beverage Control Board, the Oklahoma
Tourism and Recreation Department and the State Board of Pharmacy
shall contribute to the fund an amount equal to eleven percent (11%)
of the actual paid base salary of each member.
Effective July 1, 2025, participating employers shall contribute
an amount equal to a percentage of the actual p aid base salary of
each member as follows:
July 1, 2025 through June 30, 2026 12.5%
July 1, 2026 through June 30, 2027 13.5%
July 1, 2027 through June 30, 2028 14.5%
July 1, 2028 through June 30, 2029 15.5%
July 1, 2029 through June 30, 2030 and
each year thereafter 16.5%
B. Each member of the System shall make contributions to the
fund in an amount equal to eight percent (8%) nine percent (9%) of
the actual paid base salary of the member.
Member contributions shall be deducted by each participating
employer for such benefits as the Board is by law authorized to
administer and shall be remitted monthly, or as the Board may
otherwise provide, for deposit in the fund.
C. Each employer shall pick up under the provisions of Section
414(h)(2) of the Internal Re venue Code of 1986 and pay the
contribution which the member is required by law to make to the
System for all compensation earned after December 31, 1989. RBH No. 10889
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Although the contributions so picked up are designated as member
contributions, such contributions s hall be treated as contributions
being paid by the employer in lieu of contrib utions 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 the memb er until such amounts are distributed or
made available to the member or the beneficiary of the member. The
member, by the terms of this System, shall not have any option to
choose to receive the contributions so picked up directly and the
picked up contributions must be paid by the employer to the System.
Member contributions whic h 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 shall
be included in gross salary for purposes of determining benefits and
contributions under the System.
The employer shall pay the member contributions from the same
source of funds used in paying s alary to the member, by effecting an
equal cash reduction in gross salary of t he member.
SECTION 2. AMENDATORY 47 O.S. 2021, Section 2 -305, as
last amended by Section 9, Chapter 151, O.S.L. 2023 (47 O.S. Supp.
2024, Section 2-305), is amended to read as follows:
Section 2-305. A. Except as otherwise provided in this title,
at any time after attaining normal retirement date, any member of RBH No. 10889
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the Oklahoma Law Enforcement Retirement System upon application for
unreduced retirement bene fits made and approved, may retire, and,
during the remainder of the member 's lifetime, receive annual
retirement pay, payable in equal monthly payments, equal to two and
one-half percent (2 1/2%) of the final average salary times years of
credited service. If such retired member is reemployed by a state
agency in a position which is not covered by the System, such
retired member shall continue to receive in -service distributions
from the System. Prior to September 19, 2002, if such retired
member was reemployed by a state agency in a position which is
covered by the System, such m ember shall continue to receive in -
service distributions from the System and shall not accrue any
further credited service. If such a member is reemployed by a state
agency in a position which is covered by the System on or after
September 19, 2002, such member 's monthly retirement payments shall
be suspended until such member retires and is not reemployed by a
state agency in a position which is covered by the System.
B. Beginning July 1, 1994, members who retired or were eligible
to retire prior to July 1, 1980, or their surviving spouses shall
receive annual retirement pay, payable in equal monthly payments,
equal to the greater of their current retirement pay, or two and
one-half percent (2 1/2%) of the actual paid gross salary being
currently paid to a highway patrol officer, at the time each such RBH No. 10889
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monthly retirement payment is made, multiplied by the retired
member's years of credited service.
C. Except as otherwise provided by this subsection, members of
the System whose salary is set by statute who have retired after
completion of the mandatory twenty (20) years of service, and those
members with statutory salaries who retire after reaching the
mandatory twenty-year retirement shall receive an annual retirement
pay, payable in equal monthly installments, based upon the greater
of either:
1. The top base salary currently paid to the highest
nonsupervisory position in the participating agency at the time each
such monthly retirement payment is made, limited to the annual
salary limit of the Economic Gr owth and Tax Relief Reconciliation
Act of 2001, as described in paragraph 9 of Section 2 -300 of this
title, multiplied by two and one -half percent (2 1/2%), multiplied
by the number of years of credited service and fraction thereof for
the following positions:
a. Oklahoma Highway Patrolman,
b. Communications Dispatcher,
c. Capitol Patrolman,
d. Lake Patrolman, and
e. Oklahoma State Bureau of Investigation - Special Agent
or Criminalist; or RBH No. 10889
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2. The member's final average salary as set forth in paragraph
9 of Section 2-300 of this title, multiplied by two and one -half
percent (2 1/2%), and multiplied by the number of years of credited
service and fraction thereof.
No member of the System retired prior to July 1, 2002, shall
receive a benefit less than the amount the member is receiving as of
June 30, 2002.
The provisions of paragraph 1 of this subsection shall not be
applicable to any member whose first participating service with the
System occurs on or after November 1, 2012, except for those members
who died in the performance of their duties pursuant to Section 2 -
306 of this title
The provisions of paragraph 1 of this subsection shall include
those members who died in the performanc e of their duties pursuant
to Section 2-306 of this title.
D. Other members of the System whose retirement benefit is not
otherwise prescribed by this section who have retired after
completion of the mandatory twenty (20) years of service, and those
members who retire after reaching the mandatory twenty -year
retirement shall receiv e an annual retirement pay, payable in equal
monthly payments, based upon the greater of either:
1. The actual average salary currently paid to the highest
nonsupervisory positi on in the participating agency at the time each
such monthly payment is made, limited to the annual salary limit of RBH No. 10889
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the Economic Growth and Tax Relief Reconciliation Act of 2001, as
described in paragraph 9 of Section 2 -300 of this title, multiplied
by two and one-half percent (2 1/2%), multiplied by the number of
years of credited service and fraction thereof for the following
positions:
a. Alcoholic Beverage Laws Enforcement Commission - ABLE
Commission Agent III,
b. Oklahoma State Bureau of Narcotics and Dangerous Drugs
Control - Narcotics Agent III,
c. Oklahoma Tourism and Recreation Department - Park
Ranger II,
d. State Board of Pharmacy - Pharmacy Inspector,
e. University of Oklahoma - Police Officer, and
f. Oklahoma State University - Police Officer,
g. Attorney General Agent, and
h. Military Department Police Officer ; or
2. The other member's final average salary as set forth in
paragraph 9 of Section 2 -300 of this title, multiplied by two and
one-half percent (2 1/2%), multiplied by the number of ye ars of
credited service and fraction thereof.
No member of the System retired prior to July 1, 2002, shall
receive a benefit less than the amount the member is receiving as of
June 30, 2002. The participating employer must certify to the
System in writing the actual average gross salary currently paid to RBH No. 10889
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the highest nonsupervisory position. The Board of Trustees shall
promulgate such rules as are necessary to implement the provisions
of this section.
The provisions of paragraph 1 of this subsection shall not be
applicable to any member whose first participating service with the
System occurs on or after May 24, 2013, except for those members who
died in the performance of their duties pursuant to Section 2 -306 of
this title
The provisions of paragraph 1 of this subsection shall include
those members who died in the performance of th eir duties pursuant
to Section 2-306 of this title.
E. A member who meets the definition of disability as defined
in paragraph 11 of Section 2 -300 of this title by direct reason of
the performance of the member 's duties as an officer shall receive a
monthly benefit equal to:
1. Two and one-half percent (2 1/2%);
2. Multiplied by:
a. twenty (20) years of credited service, if the member
had performed less than twenty (20) years o f credited
service, notwithstanding the actual number of years of
credited service performed by the member prior to the
date of disability, or
b. the actual number of years of credited service and
fraction thereof performed by the member prior to the RBH No. 10889
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date of disability, if the member had performed twenty
(20) or more years of credited service;
3. Multiplied by the greater of subparagraph a of this
paragraph and division 1 of subparagraph b of this paragraph or
division 2 of subparagraph b of this paragraph , as applicable:
a. the final average salary of the member, as set forth
in paragraph 9 of Section 2 -300 of this title, and
b. (1) the top base salary currently paid to the highest
nonsupervisory position in the participating
agency of the member at the ti me each monthly
payment is made, limited to the annual salary
limit of the Economic Growth and Tax Relief
Reconciliation Act of 2001 described in paragraph
9 of Section 2-300 of this title, for the
following positions:
(a) Oklahoma Highway Patrolman,
(b) Communications Dispatcher,
(c) Capitol Patrolman,
(d) Lake Patrolman, and
(e) Oklahoma State Bureau of Investigation -
Special Agent or Criminalist,
Provided, the participating employer must certify to the System
in writing the top base salary currently pai d to the highest RBH No. 10889
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nonsupervisory position for division (1) of subparagraph b of this
paragraph, or
(2) the actual average salary currently paid to the
highest nonsupervisory position in the
participating agency of the member at the time
each monthly payment is made, limited to the
annual salary limit of the Economic Growth and
Tax Relief Reconciliation Act of 2001, described
in paragraph 9 of Section 2 -300 of this title,
for the following positions:
(a) Alcoholic Beverage Laws Enforcement (ABLE)
Commission - ABLE Commission Agent III,
(b) Oklahoma State Bureau of Narcotics and
Dangerous Drugs Control - Narcotics Agent
III,
(c) Oklahoma Tourism and Recreation Department -
Park Ranger II,
(d) State Board of Pharmacy - Pharmacy
Inspector,
(e) University of Oklahoma - Police Officer, and
(f) Oklahoma State University - Police Officer,
(g) Attorney General Agent , and
(h) Military Department Police Officer, RBH No. 10889
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Provided, the participating employer must certify to the System
in writing the actual average gross salary cur rently paid to the
highest nonsupervisory position for division (2) of subparagraph b
of this paragraph;
4. No member of the System receiving benefits prescribed by
this subsection who retired prior to July 1, 2002, shall receive a
benefit of less than th e amount the member was receiving as of June
30, 2002;
5. The Board of Truste es shall promulgate rules as necessary to
implement the provisions of this subsection; and
6. If such member participates in the Oklahoma Law Enforcement
Deferred Option Plan pu rsuant to Section 2-305.2 of this title, then
such member's disability pension provided pursuant to this
subsection shall be reduced to account for such member 's
participation in the Oklahoma Law Enforcement Deferred Option Plan.
F. A member who meets the definition of disability as defined
in paragraph 11 of Section 2 -300 of this title and whose disability
is by means of personal and traumatic injury of a catastrophic
nature and in the line of duty, shall receive a monthly benefit
equal to:
1. Two and one-half percent (2 1/2%);
2. Multiplied by:
a. twenty (20) years of service, regardless of the actual
number of years of credited service performed by the RBH No. 10889
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member prior to the date of disability, if the member
had performed less than twenty (20) years of se rvice,
or
b. the actual number of years of service performed by the
member if the member had performed twenty (20) or more
years of service;
3. Multiplied by a final average salary equal to:
a. the salary which the member would have received
pursuant to statutory salary schedules in effect upon
the date of the disability for twenty (20) years of
service prior to disability. The final average salary
for a member who performed less than twenty (20) years
of service prior to disability shall be computed
assuming that the member was paid the highest salary
allowable pursuant to the law in effect at the time of
the member's disability based upon twenty (20) years
of service and with an assumption that the member was
eligible for any and all increases in pay bas ed upon
rank during the entire period. If the salary of a
member is not prescribed by a specific salary schedule
upon the date of the member 's disability, the final
average salary for the member shall be computed by the
member's actual final average salar y or the highest
median salary amount for a member whose salary was RBH No. 10889
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prescribed by a specific salary schedule upon the date
of the member's disability, whichever final average
salary amount would be greater, or
b. the actual final average salary of the memb er if the
member had performed twenty (20) or more years of
service prior to disability.
If such member participates in the Oklahoma Law Enforcement
Deferred Option Plan pursuant to Section 2 -305.2 of this title, such
member's disability pension provided p ursuant to this subsection
shall be adjusted as provided in Section 2 -305.2 of this title to
account for such member 's participation in the Oklahoma Law
Enforcement Deferred Option Plan.
G. A member who meets the definition of disability as defined
in Section 2-300 of this title and whose disability occurred prior
to the member's normal retirement date but after completing three
(3) years of vesting service and not by reason of the performance of
the member's duties or as a result of the member 's willful
negligence shall receive a monthly benefit equal to two and one -half
percent (2 1/2%) of final average salary multiplied by the number of
years of the member's credited service.
H. Payment of a disability pension shall commence as of the
first day of the month coinciding or next following the date of
retirement and shall continue as long as the member meets the RBH No. 10889
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definition of total and permanent disability provided in this
section.
I. For the purpose of determining the member 's disability under
subsection E, F or G of this section, the member shall be required
by the Board to be exam ined by a minimum of two recognized
physicians selected by the Board to determine the extent of the
member's injury or illness. The examining physicians shall furnish
the Board a detailed written report of the injury or illness of the
examined member establishing the extent of disability and the
possibilities of the disabled member being returned to his or her
regular duties or an alternate occupation or service covered by the
System after a normal recuperation period. The Board shall require
all retired disabled members who have not attained their normal
retirement date to submit to a physical examination once each year
for a minimum of three (3) years following retirement. The Board
shall select a minimum of two physicians to examine the retired
members and pay for their services from the fund. Any retired
disabled member found no longer disabled by the examining physicians
to perform the occupation of the member or an alterna te occupation
or service covered by the System shall be required to return to duty
and complete twenty (20) years of service as provided in subsection
A of this section, or forfeit all his or her rights and claims under
Section 2-300 et seq. of this title. RBH No. 10889
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J. The disability benefit under this section shall be for the
lifetime of the member unless such member is found no longer
disabled pursuant to subsection I of this section. Such member
shall not be entitled to the retirement benefit pursuant to
subsection A of this section unless such member returns to active
duty and is eligible for a retirement benefit as provided in
subsection A of this section.
K. At the postoffer, preemployment physical examination
required under paragraph 6 of Section 2 -300 of this title, the
physician selected by the Board shall determine the extent to which
a new member is disabled. If a member is determined to be partially
disabled, the physician shall assign a percentage of disability to
such partial disability. If such memb er then becomes entitled to a
disability benefit under either subsection E or subsection G of this
section, the benefit payable shall be reduced by the percentage
which such member was determined to be disabled at the postoffer,
preemployment physical unle ss the Board makes a determination that
the initially determined percentage of disability at the
preemployment physical examination is unrelated to the reason for
the disability currently sought pursuant to subsection E or
subsection G of this section. Up on employment, the member shall
disclose to the Board any disability payments received from any
source. The amount of disability to be paid to any member cannot
exceed one hundred percent (100%) disability from all sources. The RBH No. 10889
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provisions of this subsect ion shall apply only to members whose
effective date of membership is on or after July 1, 2000.
L. In addition to the pension provided for under subsection F
of this section, if the member has one or more children under the
age of eighteen (18) years or u nder 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 from the Fund
for the support of each surviving child to the member or person
having the care and custody of such children 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 public or private school or any institution of
higher education.
M. Notwithstanding any other provisions in Section 2 -300
through 2-315 of this title, in order to be eligible to receive
disability benefits, a member who meets the definition of disability
as defined in paragraph 11 of Section 2 -300 of this title shall file
the member's completed application for disability benefits with the
System before such member 's date of termination from service and
provide such additional information that the System 's rules require
within six (6) months of the System 's receipt of such applicati on.
If the member's completed application for disability benefits is not
filed with the System before the member 's date of termination from RBH No. 10889
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service or such additional informatio n as is required under the
System's rules is not provided within six (6) months of the System 's
receipt of such application, such member shall be eligible only for
such other benefits as are available to members of the System and
shall not be eligible to r eceive any disability benefits. For good
cause shown, the Board of Trustees m ay waive the requirement that
the disability application be filed before the member 's date of
termination from service. In no event shall a member be eligible to
receive any disability benefit if the member 's completed application
is filed more than six (6) months after the member 's date of
termination from service.
N. If the requirements of Section 2 -305.1C of this title are
satisfied, a member who, by reason of disability or a ttainment of
normal retirement date or age, is separated from service as a pub lic
safety officer with the member 's participating employer may elect to
have payment made directly to the provider for qualified health
insurance premiums by deduction from his or her monthly disability
benefit or monthly retirement payment, after December 31, 2006, in
accordance with Section 402(l) of the Internal Revenue Code of 1986,
as amended. For distributions made after December 29, 2022, the
election provided for under S ection 402(l) of the Internal Revenue
Code of 1986, as amended, may be made wh ether payment of the
premiums is made directly to the provider of the accident or health RBH No. 10889
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plan or qualified long -term care insurance contract by deduction
from a distribution from the System or is made to the member.
SECTION 3. This act shall become effective July 1, 2025.
SECTION 4. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
60-1-10889 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 9, 2025
Representative Moore
Room 406S
Re: RBH No. 10889
RBH No. 10889 increases the participating employers’ contribution
rates to
7/01/2025: 12,5%
7/01/2026: 13.5%
7/01/2027: 14.5%
7/01/2018: 15.5 %
Participant contribution rate increases to 9% from 8%.
Attorney General Agents and Military Department police are included
in the base pay minimum retirement provision.
RBH No. 10889 is a fiscal bill as defined by OPLAAA. Including
Attorney General Agents and Military Department police in the base
pay minimum retirement benefit increases the Normal Cost and Accrued
Actuarial 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