1 | 1 | | RBH No. 12208 |
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28 | 28 | | STATE OF OKLAHOMA |
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29 | 29 | | |
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30 | 30 | | 1st Session of the 60th Legislature (2025) |
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31 | 31 | | |
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32 | 32 | | HOUSE BILL 2116 By: Kannady |
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33 | 33 | | |
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34 | 34 | | |
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35 | 35 | | |
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36 | 36 | | |
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37 | 37 | | |
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38 | 38 | | AS INTRODUCED |
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39 | 39 | | |
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40 | 40 | | An Act relating to public retirement systems; |
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41 | 41 | | amending 62 O.S. 2021, Section 3103, as last amended |
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42 | 42 | | by Section 127, Chapter 452, O.S.L. 2 024 (62 O.S. |
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43 | 43 | | Supp. 2024, Section 3103), which relates to the |
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44 | 44 | | Oklahoma Pension Actuarial Analysis Act; modifying |
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45 | 45 | | term; amending 47 O.S. 2021, Section 2 -300, as last |
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46 | 46 | | amended by Section 1, Chapter 361, O.S.L. 2024 (47 |
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47 | 47 | | O.S. Supp. 2024, Section 2 -300), which relates to the |
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48 | 48 | | Oklahoma Law Enforcement Retirement System; modifying |
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49 | 49 | | term; providing for participation of certain new |
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50 | 50 | | employees of certain agency in the Oklahoma Law |
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51 | 51 | | Enforcement Retirement System; providing for |
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52 | 52 | | codification; and providing effective dates. |
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53 | 53 | | |
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61 | 61 | | |
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62 | 62 | | BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: |
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63 | 63 | | SECTION 1. AMENDATORY 62 O.S. 2021, Section 3103, as |
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64 | 64 | | last amended by Section 127, Chapter 452, O.S.L. 2024 (62 O.S. Supp. |
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65 | 65 | | 2024, Section 3103), is amended to read as follows: |
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66 | 66 | | Section 3103. As used in the Oklahoma Pension Legislation |
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67 | 67 | | Actuarial Analysis Act: RBH No. 12208 |
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68 | 68 | | |
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93 | 93 | | |
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94 | 94 | | 1. "Amendment" means any amendment including a substitute bill, |
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95 | 95 | | made to a retirement bill by any committee of the House or Senate, |
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96 | 96 | | any conference committee of t he House or Senate or by the House or |
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97 | 97 | | Senate; |
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98 | 98 | | 2. "RB number" means that number preceded by the letters "RB" |
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99 | 99 | | assigned to a retirement bill by the respective staffs of the |
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100 | 100 | | Oklahoma State Senate and the Oklahoma House of Representatives when |
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101 | 101 | | the respective staff office prepares a retirement bill for a member |
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102 | 102 | | of the Legislature; |
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103 | 103 | | 3. "Legislative Actuary" means the firm or entity that enters |
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104 | 104 | | into a contract with the Legislative Service Bureau pursuant to |
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105 | 105 | | Section 452.15 of Title 74 of the Oklahoma Statutes to pr ovide the |
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106 | 106 | | actuarial services and other duties provided for in the Oklahoma |
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107 | 107 | | Pension Legislation Actuarial Analysis Act; |
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108 | 108 | | 4. "Nonfiscal amendment" means an amendment to a retirement |
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109 | 109 | | bill having a fiscal impact, which amendment does not change any |
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110 | 110 | | factor of an actuarial investigation specified in subsection A of |
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111 | 111 | | Section 3109 of this ti tle; |
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112 | 112 | | 5. "Nonfiscal retirement bill " means a retirement bill: |
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113 | 113 | | a. which does not affect the cost or funding factors of a |
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114 | 114 | | retirement system, |
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115 | 115 | | b. which affects such factors only in a manner which does |
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116 | 116 | | not: RBH No. 12208 |
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142 | 142 | | |
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143 | 143 | | (1) grant a benefit increase under the retirement |
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144 | 144 | | system affected by the bill, |
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145 | 145 | | (2) create an actuarial accrued liability for or |
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146 | 146 | | increase the actuarial accrued liability of the |
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147 | 147 | | retirement system affected by the bill, or |
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148 | 148 | | (3) increase the normal cost of the retirement system |
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149 | 149 | | affected by the bill, |
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150 | 150 | | c. which authorizes the purchase by an active member of |
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151 | 151 | | the retirement system, at the actuarial cost for the |
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152 | 152 | | purchase as computed pursuant to the statute in effect |
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153 | 153 | | on the effective date of the measure allowing such |
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154 | 154 | | purchase, of years of service for purposes of reaching |
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155 | 155 | | a normal retirement date in the applicable retirement |
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156 | 156 | | system, but which cannot be used in order to compute |
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157 | 157 | | the number of years of service for purposes of |
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158 | 158 | | computing the retirement benefit for the member, |
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159 | 159 | | d. which provides for the computation of a service - |
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160 | 160 | | connected disability retirement benefit for members of |
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161 | 161 | | the Oklahoma Law Enforcement Retirement System |
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162 | 162 | | pursuant to Section 2 -305 of Title 47 of the Oklahoma |
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163 | 163 | | Statutes if the members w ere unable to complete twenty |
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164 | 164 | | (20) years of service as a result of the disability, |
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165 | 165 | | e. which requires membership in the defined benefit plan |
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166 | 166 | | authorized by Section 901 et seq. of Title 74 of the RBH No. 12208 |
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192 | 192 | | |
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193 | 193 | | Oklahoma Statutes for persons whose first elected or |
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194 | 194 | | appointed service occurs on or after November 1, 2018, |
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195 | 195 | | if such persons had any prior ser vice in the Oklahoma |
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196 | 196 | | Public Employees Retirement System prior to November |
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197 | 197 | | 1, 2015, |
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198 | 198 | | f. which provides for a one -time increase in retirement |
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199 | 199 | | benefits if the increase in retirement benefits is not |
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200 | 200 | | a permanent increase in the gross annual retirement |
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201 | 201 | | benefit payable to a member or beneficiary, occurs |
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202 | 202 | | only once pursuant to a single statutory authorization |
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203 | 203 | | and does not exceed: |
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204 | 204 | | (1) the lesser of two percent (2%) of the gross |
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205 | 205 | | annual retirement benefit of the member or One |
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206 | 206 | | Thousand Dollars ($1,000.00) and requires th at |
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207 | 207 | | the benefit may only be provided if the funded |
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208 | 208 | | ratio of the affected retirement system would not |
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209 | 209 | | be less than sixty percent (60%) but not greater |
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210 | 210 | | than eighty percent (80%) aft er the benefit |
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211 | 211 | | increase is paid, |
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212 | 212 | | (2) the lesser of two percent (2%) of the gross |
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213 | 213 | | annual retirement benefit of the member or One |
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214 | 214 | | Thousand Two Hundred Dollars ($1,200.00) and |
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215 | 215 | | requires that the benefit may only be provided if |
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216 | 216 | | the funded ratio of the affected retirement RBH No. 12208 |
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243 | 243 | | system would be greater than eighty percent (80%) |
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244 | 244 | | but not greater than one hundred percent (100%) |
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245 | 245 | | after the benefit increase is paid, |
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246 | 246 | | (3) the lesser of two percent (2%) of the gross |
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247 | 247 | | annual retirement benefit of the member or One |
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248 | 248 | | Thousand Four Hundred Dollars ($1,400.00) and |
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249 | 249 | | requires that the benefit may only be provided if |
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250 | 250 | | the funded ratio of the affected retirement |
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251 | 251 | | system would be greater than one hundred percent |
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252 | 252 | | (100%) after the benefit increase is paid, or |
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253 | 253 | | (4) the greater of two percent (2%) o f the gross |
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254 | 254 | | annual retirement benefit of the volunteer |
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255 | 255 | | firefighter or One Hund red Dollars ($100.00) for |
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256 | 256 | | persons who retired from the Oklahoma |
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257 | 257 | | Firefighters Pension and Retirement System as |
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258 | 258 | | volunteer firefighters and who did not retire |
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259 | 259 | | from the Oklahoma Fire fighters Pension and |
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260 | 260 | | Retirement System as a paid firefighter. |
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261 | 261 | | As used in this subparagraph, "funded ratio" means the |
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262 | 262 | | figure derived by dividing the actuarial value of |
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263 | 263 | | assets of the applicable retirement system by the |
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264 | 264 | | actuarial accrued liability of the appl icable |
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265 | 265 | | retirement system, RBH No. 12208 |
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291 | 291 | | |
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292 | 292 | | g. which modifies the disability pension standard fo r |
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293 | 293 | | police officers who are members of the Oklahoma Police |
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294 | 294 | | Pension and Retirement System as provided by Section |
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295 | 295 | | 50-115 of Title 11 of the Oklahoma Statutes, |
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296 | 296 | | h. which provides a cos t-of-living benefit increase |
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297 | 297 | | pursuant to the provisions of: |
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298 | 298 | | (1) Section 49-143.7 of Title 11 of the Oklahoma |
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299 | 299 | | Statutes, |
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300 | 300 | | (2) Section 50-136.9 of Title 11 of the Oklahoma |
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301 | 301 | | Statutes, |
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302 | 302 | | (3) Section 1104K of Title 20 of the Oklahoma |
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303 | 303 | | Statutes, |
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304 | 304 | | (4) Section 2-305.12 of Title 47 of the Oklahoma |
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305 | 305 | | Statutes, |
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306 | 306 | | (5) Section 17-116.22 of Title 70 of the Oklahoma |
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307 | 307 | | Statutes, or |
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308 | 308 | | (6) Section 930.11 of Title 74 of the Oklahoma |
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309 | 309 | | Statutes, |
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310 | 310 | | i. which provides for the reinstatement of retirement |
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311 | 311 | | benefits for members of the Oklahoma Law Enfo rcement |
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312 | 312 | | Retirement System pursuant to Section 2 -305 of Title |
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313 | 313 | | 47 of the Oklahoma Statutes for those who were hired |
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314 | 314 | | on or after November 1, 2012, or May 24, 2013, RBH No. 12208 |
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341 | 341 | | j. which authorizes the purchase of military service |
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342 | 342 | | credit as provided in Section 50 -128 of Title 11, |
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343 | 343 | | Section 1102.2 of Title 20, Section 2 -307.4 of Title |
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344 | 344 | | 47, and Section 913.8 of Title 74 of the Oklahoma |
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345 | 345 | | Statutes, |
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346 | 346 | | k. which restores benefits pursuant to Sections 49 -100.1, |
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347 | 347 | | 49-101, 49-101.2, 49-106.1, 49-108, 49-117.1, and 49- |
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348 | 348 | | 135 of Title 11 of the O klahoma Statutes, |
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349 | 349 | | l. which modifies the computation of the line -of-duty |
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350 | 350 | | disability benefit pursuant to the provisions of this |
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351 | 351 | | act, and |
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352 | 352 | | m. which authorizes membership in the Oklahoma Law |
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353 | 353 | | Enforcement Retirement System for active commissioned |
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354 | 354 | | or CLEET-certified officers hired by the Office of the |
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355 | 355 | | State Fire Marshal pursuant to Sections 2 and 3 of |
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356 | 356 | | this act. |
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357 | 357 | | A nonfiscal retirement bill shall include any retirement bill that |
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358 | 358 | | has as its sole purpose the appropriation or distribution or |
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359 | 359 | | redistribution of monies in some manner to a retirement system for |
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360 | 360 | | purposes of reducing the unfunded liability of such system or the |
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361 | 361 | | earmarking of a portion of the revenue from a tax to a retirement |
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362 | 362 | | system or increasing the percentage of the revenue earmarked from a |
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363 | 363 | | tax to a retirement system; RBH No. 12208 |
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389 | 389 | | |
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390 | 390 | | 6. "Reduction-in-cost amendment" means an amendment to a |
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391 | 391 | | retirement bill having a fiscal impact which reduces the cost of the |
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392 | 392 | | bill as such cost is determined by the actuarial investigation for |
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393 | 393 | | the bill prepared pursuant to Section 3109 of this title; |
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394 | 394 | | 7. "Retirement bill" means any bill or joint resolution |
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395 | 395 | | introduced or any bill or joint resolution amended by a member of |
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396 | 396 | | the Oklahoma Legislature which creates or amends any law directly |
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397 | 397 | | affecting a retirement system. A retirement bill shall not mean a |
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398 | 398 | | bill or resolution that impacts the revenue of any state tax in |
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399 | 399 | | which a portion of the revenue generated from such tax is earmarked |
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400 | 400 | | for the benefit of a retirement system; |
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401 | 401 | | 8. "Retirement bill having a fiscal impact " means any |
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402 | 402 | | retirement bill creati ng or establishing a retirement system and any |
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403 | 403 | | other retirement bill other than a nonfiscal retirement bill; and |
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404 | 404 | | 9. "Retirement system" means the Teachers' Retirement System of |
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405 | 405 | | Oklahoma, the Oklahoma Public Employees Retirement System, the |
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406 | 406 | | Uniform Retirement System for Justices and Judges, the Oklahoma |
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407 | 407 | | Firefighters Pension and Reti rement System, the Oklahoma Police |
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408 | 408 | | Pension and Retirement System, the Oklahoma Law Enforcement |
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409 | 409 | | Retirement System, or a retirement system established after January |
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410 | 410 | | 1, 2006. |
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411 | 411 | | SECTION 2. AMENDATORY 47 O.S. 2021, Section 2 -300, as |
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412 | 412 | | last amended by Section 1, Chapter 361, O.S.L. 2024 (47 O.S. Supp. |
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413 | 413 | | 2024, Section 2-300), is amended to read as follows: RBH No. 12208 |
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414 | 414 | | |
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439 | 439 | | |
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440 | 440 | | Section 2-300. As used in Section 2 -300 et seq. of this title : |
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441 | 441 | | 1. "System" means the Oklahoma Law Enforcement Retirement |
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442 | 442 | | System; |
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443 | 443 | | 2. "Act" means Section 2-300 et seq. of this title; |
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444 | 444 | | 3. "Board" means the Oklahoma Law Enforcement Retirement Board |
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445 | 445 | | of the System; |
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446 | 446 | | 4. "Executive Director" means the managing officer of the |
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447 | 447 | | System employed by the Board; |
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448 | 448 | | 5. "Fund" means the Oklahoma Law Enforcement Retirement Fund; |
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449 | 449 | | 6. "Participating employer " means any Oklahoma entity with one |
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450 | 450 | | or more employees who are members of the System; |
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451 | 451 | | 7. a. "Member" means: |
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452 | 452 | | (1) all commissioned law enforcement officers of the |
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453 | 453 | | Oklahoma Highway Patrol Division of the |
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454 | 454 | | Department of Public Safety who have obtained |
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455 | 455 | | certification from the Council on Law Enforcement |
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456 | 456 | | Education and Training, and all cadets of a |
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457 | 457 | | Patrol Academy of the Department of Public |
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458 | 458 | | Safety, |
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459 | 459 | | (2) law enforcement officers and criminalists of the |
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460 | 460 | | Oklahoma State Bureau of Investigation, |
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461 | 461 | | (3) law enforcement officers of the Oklahoma State |
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462 | 462 | | Bureau of Narcotics and Dangerous Drugs Control |
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463 | 463 | | designated to perform duties in the investigation RBH No. 12208 |
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464 | 464 | | |
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489 | 489 | | |
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490 | 490 | | and prevention of crime and the enforcement of |
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491 | 491 | | the criminal laws of this state, |
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492 | 492 | | (4) law enforcement officers of the Alcoholic |
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493 | 493 | | Beverage Laws Enforcement Commission designated |
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494 | 494 | | to perform duties in the investigation and |
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495 | 495 | | prevention of crime and the enforcement of the |
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496 | 496 | | criminal laws of this state, |
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497 | 497 | | (5) employees of the Communications Section of the |
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498 | 498 | | Oklahoma Highway Patrol Division, radio |
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499 | 499 | | technicians and tower technicians of the |
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500 | 500 | | Department of Public Safety, who are employed in |
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501 | 501 | | any such capacity as of June 30, 2008, and who |
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502 | 502 | | remain employed on or after July 1, 2008, until a |
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503 | 503 | | termination of service, or un til a termination of |
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504 | 504 | | service with an election of a vested benefit from |
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505 | 505 | | the System, or until retirement. Effective July |
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506 | 506 | | 1, 2008, a person employed for the first time as |
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507 | 507 | | an employee of the Department of Public Safety in |
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508 | 508 | | the Communications Division as an information |
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509 | 509 | | systems telecommunication technician of the |
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510 | 510 | | Department of Public Safety shall not be a member |
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511 | 511 | | of the System, |
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512 | 512 | | (6) park rangers of the Oklahoma Tourism and |
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513 | 513 | | Recreation Department and any park manager or RBH No. 12208 |
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514 | 514 | | |
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515 | 515 | | Req. No. 12208 Page 11 1 |
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539 | 539 | | |
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540 | 540 | | park supervisor of the Oklahoma Tourism and |
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541 | 541 | | Recreation Department, who was employed in such a |
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542 | 542 | | position prior to July 1, 1985, and who elects on |
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543 | 543 | | or before September 1, 1996, to participate in |
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544 | 544 | | the System, |
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545 | 545 | | (7) inspectors of the State Board of Pharmacy, and |
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546 | 546 | | (8) active commissioned or CLEET -certified agents |
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547 | 547 | | hired by the Office of the Attorney General or |
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548 | 548 | | the Military Department of the State of Oklahoma |
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549 | 549 | | on or after the effective date of this act July |
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550 | 550 | | 1, 2024, and |
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551 | 551 | | (9) active commissioned or CLEET-certified officers |
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552 | 552 | | hired by the Office of the State Fire Marshal |
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553 | 553 | | hired on or after the effective date of this act . |
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554 | 554 | | b. Effective July 1, 1987, a member does not include a |
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555 | 555 | | "leased employee" as defined under Section 414(n)(2) |
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556 | 556 | | of the Internal Reve nue Code of 1986, as amended. |
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557 | 557 | | Effective July 1, 1999, any individual who agrees with |
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558 | 558 | | the participating employer that the individual 's |
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559 | 559 | | services are to be performed as a leased employee or |
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560 | 560 | | an independent contractor shall not be a member |
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561 | 561 | | regardless of any cl assification as a common -law |
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562 | 562 | | employee by the Internal Revenue Service or any o ther RBH No. 12208 |
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563 | 563 | | |
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564 | 564 | | Req. No. 12208 Page 12 1 |
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588 | 588 | | |
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589 | 589 | | governmental agency, or any court of competent |
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590 | 590 | | jurisdiction. |
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591 | 591 | | c. All persons offered a position described in |
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592 | 592 | | subparagraph a of this paragraph shall participate in |
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593 | 593 | | the System only upon meeting the requisite post -offer- |
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594 | 594 | | pre-employment examination standards which shall be |
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595 | 595 | | subject to the following requirements: |
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596 | 596 | | (1) all such persons shall be of good moral |
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597 | 597 | | character, free from deformities, mental or |
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598 | 598 | | physical conditions, or disease an d alcohol or |
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599 | 599 | | drug addiction which would prohibit the person |
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600 | 600 | | from performing the duties of a law enforcement |
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601 | 601 | | officer, |
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602 | 602 | | (2) the physical-medical examination shall pertain to |
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603 | 603 | | age, sight, hearing, agility and other conditions |
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604 | 604 | | the requirements of which shall be established by |
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605 | 605 | | the Board, |
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606 | 606 | | (3) the person shall be required to meet the |
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607 | 607 | | conditions of this subsection prior to the |
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608 | 608 | | beginning of actual employment but after an offer |
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609 | 609 | | of employment has been tendered by a |
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610 | 610 | | participating employer, |
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611 | 611 | | (4) the Board shall have author ity to deny or revoke |
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612 | 612 | | membership of any person submitting false RBH No. 12208 |
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613 | 613 | | |
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614 | 614 | | Req. No. 12208 Page 13 1 |
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638 | 638 | | |
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639 | 639 | | information in such person's membership |
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640 | 640 | | application, and |
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641 | 641 | | (5) the Board shall have final authority in |
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642 | 642 | | determining eligibility for membership in the |
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643 | 643 | | System, pursuant to the provisions of this |
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644 | 644 | | subsection; |
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645 | 645 | | 8. "Normal retirement date " means the date at which the member |
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646 | 646 | | is eligible to receive the unreduced payments of the member 's |
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647 | 647 | | accrued retirement benefit. Such date shall be the first day of the |
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648 | 648 | | month coinciding with or following the date the mem ber: |
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649 | 649 | | a. completes twenty (20) years of vesting service, or |
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650 | 650 | | b. attains sixty-two (62) years of age with ten (10) |
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651 | 651 | | years of vesting service, or |
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652 | 652 | | c. attains sixty-two (62) years of age, if: |
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653 | 653 | | (1) the member has been transferred to this System |
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654 | 654 | | from the Oklahoma Pu blic Employees Retirement |
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655 | 655 | | System on or after July 1, 1981, and |
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656 | 656 | | (2) the member would have been vested had the member |
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657 | 657 | | continued to be a member of the Oklahoma Public |
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658 | 658 | | Employees Retirement System. |
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659 | 659 | | With respect to distributions under the System made for calenda r |
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660 | 660 | | years beginning on or after January 1, 2005, the System shall apply |
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661 | 661 | | the minimum distribution incidental benefit requirements, incidental |
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662 | 662 | | benefit requirements, and minimum distribution requirements of RBH No. 12208 |
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663 | 663 | | |
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664 | 664 | | Req. No. 12208 Page 14 1 |
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688 | 688 | | |
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689 | 689 | | Section 401(a)(9) of the Internal Revenue Code of 1986 , as amended, |
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690 | 690 | | in accordance with the final regulations under Section 401(a)(9) of |
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691 | 691 | | the Internal Revenue Code of 1986, as amended, including Treasury |
---|
692 | 692 | | Regulations Sections 1.401(a)(9) -1 through 1.401(a)(9) -9; provided, |
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693 | 693 | | that for individuals who attain seventy and one-half (70 1/2) years |
---|
694 | 694 | | of age after December 31, 2019, but before January 1, 2023, such |
---|
695 | 695 | | distributions shall take into account that "age 70 1/2" was stricken |
---|
696 | 696 | | and "age 72" was inserted in Sections 401(a)(9)(B)(iv)(I), |
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697 | 697 | | 401(a)(9)(C)(i)(I) and 401(a)(9)(C) (ii)(I) of the Internal Revenue |
---|
698 | 698 | | Code of 1986, as amended, and, provided further, that for |
---|
699 | 699 | | individuals who attain seventy -two (72) years of age after December |
---|
700 | 700 | | 31, 2022, such distributions shall take into account that "age 72" |
---|
701 | 701 | | was stricken and "the applicable age", as defined in Section |
---|
702 | 702 | | 401(a)(9)(C)(v) of the Internal Revenue Code of 1986, as amended, |
---|
703 | 703 | | was inserted in Section 401(a)(9)(B)(iv)(I), Section |
---|
704 | 704 | | 401(a)(9)(C)(i)(I) and Section 401(a)(9)(C)(ii)(I) of the Internal |
---|
705 | 705 | | Revenue Code of 1986, as amended, in all cases notwithstanding any |
---|
706 | 706 | | provision of the System to the contrary. With respect to |
---|
707 | 707 | | distributions under the System made for calendar years beginning on |
---|
708 | 708 | | or after January 1, 2001, through December 31, 2004, the System |
---|
709 | 709 | | shall apply the minimum distribution re quirements and incidental |
---|
710 | 710 | | benefit requirements of Section 401(a)(9) of the Int ernal Revenue |
---|
711 | 711 | | Code of 1986, as amended, in accordance with the regulations under |
---|
712 | 712 | | Section 401(a)(9) of the Internal Revenue Code of 1986, as amended, RBH No. 12208 |
---|
713 | 713 | | |
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714 | 714 | | Req. No. 12208 Page 15 1 |
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738 | 738 | | |
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739 | 739 | | which were proposed in Januar y 2001, notwithstanding any provision |
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740 | 740 | | of the System to the contrary. |
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741 | 741 | | Effective July 1, 1989, notwithstanding any other provision |
---|
742 | 742 | | contained herein to the contrary, in no event shall commencement of |
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743 | 743 | | distribution of the accrued retirement benefit of a member be |
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744 | 744 | | delayed beyond April 1 of the calendar year following the later of: |
---|
745 | 745 | | (1) the calendar year in which the member reaches seventy and one - |
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746 | 746 | | half (70 1/2) years of age for a member who attains this age before |
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747 | 747 | | January 1, 2020, or, for a member who attains this age on or after |
---|
748 | 748 | | January 1, 2020, but before January 1, 2023, the calendar year in |
---|
749 | 749 | | which the member reaches seventy -two (72) years of age, or effective |
---|
750 | 750 | | for distributions required to be made after December 31, 2022, the |
---|
751 | 751 | | calendar year in which the member rea ches seventy-three (73) years |
---|
752 | 752 | | of age for an individual who attains age seventy -two (72) after |
---|
753 | 753 | | December 31, 2022, or "the applicable age", as defined in Section |
---|
754 | 754 | | 401(a)(9)(C)(v) of the Internal Revenue Code of 1986, as amended, if |
---|
755 | 755 | | later; or (2) the actual re tirement date of the member. A member |
---|
756 | 756 | | electing to defer the commencement of retirement benefits pursuant |
---|
757 | 757 | | to Section 2-308.1 of this title may not defer the benefit |
---|
758 | 758 | | commencement beyond the age of sixty -five (65). |
---|
759 | 759 | | Effective September 8, 2009, notwithstandin g anything to the |
---|
760 | 760 | | contrary of the System, the System, which as a governmental plan |
---|
761 | 761 | | (within the meaning of Section 414(d) of the Internal Revenue Code |
---|
762 | 762 | | of 1986, as amended), is treated as having complied with Section RBH No. 12208 |
---|
763 | 763 | | |
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764 | 764 | | Req. No. 12208 Page 16 1 |
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788 | 788 | | |
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789 | 789 | | 401(a)(9) of the Internal Revenue Code of 1986, as amended, for all |
---|
790 | 790 | | years to which Section 401(a)(9) of the Internal Revenue Code of |
---|
791 | 791 | | 1986, as amended, applies to the System if the System complies with |
---|
792 | 792 | | a reasonable and good faith interpretation of Section 401(a)(9) of |
---|
793 | 793 | | the Internal Revenue Code of 1986, as amended. |
---|
794 | 794 | | A member who was required to join the System effective July 1, |
---|
795 | 795 | | 1980, because of the transfer of the employing agency from the |
---|
796 | 796 | | Oklahoma Public Employees Retirement System to the System, and was |
---|
797 | 797 | | not a member of the Oklahoma Public Employees Retirement System on |
---|
798 | 798 | | the date of such transfer shall be allowed to receive credit for |
---|
799 | 799 | | prior law enforcement service rendered to this state, if the member |
---|
800 | 800 | | is not receiving or eligible to receive retirement credit or |
---|
801 | 801 | | benefits for such service in any other p ublic retirement system, |
---|
802 | 802 | | upon payment to the System of the employee contributi on the member |
---|
803 | 803 | | would have been subject to had the member been a member of the |
---|
804 | 804 | | System at the time, plus five percent (5%) interest. Service credit |
---|
805 | 805 | | received pursuant to this paragr aph shall be used in determining the |
---|
806 | 806 | | member's retirement benefit, and shall be used in determining years |
---|
807 | 807 | | of service for retirement or vesting purposes; |
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808 | 808 | | 9. "Actual paid base salary " means the salary received by a |
---|
809 | 809 | | member, excluding payment for any accumulat ed leave or uniform |
---|
810 | 810 | | allowance. Salary shall include any amount of nonelective salary |
---|
811 | 811 | | reduction under Section 414(h) of the Internal Revenue Code of 1986; RBH No. 12208 |
---|
812 | 812 | | |
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813 | 813 | | Req. No. 12208 Page 17 1 |
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837 | 837 | | |
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838 | 838 | | 10. "Final average salary " means the average of the highest |
---|
839 | 839 | | thirty (30) consecutive complete months of actual paid gross salary. |
---|
840 | 840 | | Gross salary shall include any amount of elective salary reduction |
---|
841 | 841 | | under Section 457 of the Internal Revenue Code of 1986, as amended, |
---|
842 | 842 | | and any amount of nonelective salary reduction under Section 414(h) |
---|
843 | 843 | | of the Internal Revenue Code of 1986, as amended. Effective July 1, |
---|
844 | 844 | | 1992, gross salary shall include any amount of elective salary |
---|
845 | 845 | | reduction under Section 125 of the Internal Revenue Code of 1986, as |
---|
846 | 846 | | amended. Effective July 1, 1998, gross salary shall include any |
---|
847 | 847 | | amount of elective salary reduction not includable in the gross |
---|
848 | 848 | | income of the member under Section 132(f)(4) of the Internal Revenue |
---|
849 | 849 | | Code of 1986, as amended. Effective July 1, 1998, for purposes of |
---|
850 | 850 | | determining a member 's compensation, any contribution by the member |
---|
851 | 851 | | to reduce his or her regular cash remuneration under Section |
---|
852 | 852 | | 132(f)(4) of the Internal Revenue Code of 1986, as amended, shall be |
---|
853 | 853 | | treated as if the member did not make such an election. Only salary |
---|
854 | 854 | | on which required contributions have been made may be used in |
---|
855 | 855 | | computing the final average salary. Gross salary shall not include |
---|
856 | 856 | | severance pay. |
---|
857 | 857 | | In addition to other applicable limitations, and notwithstanding |
---|
858 | 858 | | any other provision to the contrary, for plan years beginning on or |
---|
859 | 859 | | after July 1, 2002, the annual gross salary of each "Noneligible |
---|
860 | 860 | | Member" taken into account under the System shall not exceed the |
---|
861 | 861 | | Economic Growth and Tax Relief Reconciliation Act of 2001 ( "EGTRRA") RBH No. 12208 |
---|
862 | 862 | | |
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863 | 863 | | Req. No. 12208 Page 18 1 |
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887 | 887 | | |
---|
888 | 888 | | annual salary limit. The EGTRRA annual salary limit is Two Hundred |
---|
889 | 889 | | Thousand Dollars ($200,00 0.00), as adjusted by the Commissioner for |
---|
890 | 890 | | increases in the cost of living in accordance with Section |
---|
891 | 891 | | 401(a)(17)(B) of the Internal Revenue Code of 1986, as amended. The |
---|
892 | 892 | | annual salary limit in effect for a calendar year applies to any |
---|
893 | 893 | | period, not exceedin g twelve (12) months, over which salary is |
---|
894 | 894 | | determined ("determination period ") beginning in such calendar year. |
---|
895 | 895 | | If a determination period consists of fewer than twelve (12) months, |
---|
896 | 896 | | the EGTRRA salary limit will be multiplied by a fraction, the |
---|
897 | 897 | | numerator of which is the number of months in the determination |
---|
898 | 898 | | period, and the denominator of which is twelve (12). For purposes |
---|
899 | 899 | | of this section, a "Noneligible Member" is any member who first |
---|
900 | 900 | | became a member during a plan year commencing on or after July 1, |
---|
901 | 901 | | 1996. |
---|
902 | 902 | | For plan years beginning on or after July 1, 2002, any reference |
---|
903 | 903 | | in the System to the annual salary limit under Section 401(a)(17) of |
---|
904 | 904 | | the Internal Revenue Code of 1986, as amended, shall mean the EGTRRA |
---|
905 | 905 | | salary limit set forth in this provision. |
---|
906 | 906 | | Effective January 1, 2008, gross salary for a plan year shall |
---|
907 | 907 | | also include gross salary, as described above, for services, but |
---|
908 | 908 | | paid by the later of two and one -half (2 1/2) months after a |
---|
909 | 909 | | member's severance from employment or the end of the calendar year |
---|
910 | 910 | | that includes the date the member terminated employment, if it is a |
---|
911 | 911 | | payment that, absent a severance from employment, would have been RBH No. 12208 |
---|
912 | 912 | | |
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913 | 913 | | Req. No. 12208 Page 19 1 |
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937 | 937 | | |
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938 | 938 | | paid to the member while the member continued in employment with the |
---|
939 | 939 | | employer. |
---|
940 | 940 | | Effective January 1, 2008, any payments not described ab ove |
---|
941 | 941 | | shall not be considered gross salary if paid after severance from |
---|
942 | 942 | | employment, even if they are paid by the later of two and one -half |
---|
943 | 943 | | (2 1/2) months after the date of severance from employment or the |
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944 | 944 | | end of the calendar year that includes the date of se verance from |
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945 | 945 | | employment, except payments to an individual who does not current ly |
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946 | 946 | | perform services for the employer by reason of qualified military |
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947 | 947 | | service within the meaning of Section 414(u)(5) of the Internal |
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948 | 948 | | Revenue Code of 1986, as amended, to the exte nt these payments do |
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949 | 949 | | not exceed the amounts the individual would have received if the |
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950 | 950 | | individual had continued to perform services for the employer rather |
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951 | 951 | | than entering qualified military service. |
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952 | 952 | | Effective January 1, 2008, back pay, within the meaning of |
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953 | 953 | | Section 1.415(c)-2(g)(8) of the Income Tax Regulations, shall be |
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954 | 954 | | treated as gross salary for the limitation year to which the back |
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955 | 955 | | pay relates to the extent the back pay represents wages and |
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956 | 956 | | compensation that would otherwise be included in this definition. |
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957 | 957 | | Effective for years beginning after December 31, 2008, gross |
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958 | 958 | | salary shall also include differential wage payments under Section |
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959 | 959 | | 414(u)(12) of the Internal Revenue Code of 1986, as amended; |
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960 | 960 | | 11. "Credited service" means the period of service used to |
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961 | 961 | | determine the amount of benefits payable to a member. Credited RBH No. 12208 |
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962 | 962 | | |
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963 | 963 | | Req. No. 12208 Page 20 1 |
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987 | 987 | | |
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988 | 988 | | service shall consis t of the period during which the member |
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989 | 989 | | participated in the System or the predecessor Plan as an active |
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990 | 990 | | employee in an eligible membership classification, plus any service |
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991 | 991 | | prior to the establishment of the predecessor Plan which was |
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992 | 992 | | credited under the predecessor Plan and for law enforcement officers |
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993 | 993 | | and criminalists of the Oklahoma State Bureau of Investigation and |
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994 | 994 | | the Oklahoma State Bureau of Narcotics and Dangerous Drugs Contro l |
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995 | 995 | | who became members of the System on July 1, 1980, any service |
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996 | 996 | | credited under the Oklahoma Public Employees Retirement System as of |
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997 | 997 | | June 30, 1980, and for members of the Communications and Lake Patrol |
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998 | 998 | | Divisions of the Oklahoma Department of Public Safety, who became |
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999 | 999 | | members of the System on July 1, 1981, any service credited under |
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1000 | 1000 | | the predecessor Plan or the Oklahoma Public Employees Retirement |
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1001 | 1001 | | System as of June 30, 1981, and for law enforcement officers of the |
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1002 | 1002 | | Alcoholic Beverage Laws Enforcement Commissio n who became members of |
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1003 | 1003 | | the System on July 1, 1982, any service credited under the Oklahoma |
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1004 | 1004 | | Public Employees Retirement System as of June 30, 1982, and for park |
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1005 | 1005 | | rangers of the Oklahoma Tourism and Recreation Department who became |
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1006 | 1006 | | members of the System on J uly 1, 1985, any service credited under |
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1007 | 1007 | | the Oklahoma Public Employees Retirement System as of June 30, 1985, |
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1008 | 1008 | | and for inspectors of the State Board of Pharmacy who became members |
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1009 | 1009 | | of the System on July 1, 1986, any service credited under the |
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1010 | 1010 | | Oklahoma Public Employees Retirement System as of June 30, 1986, for |
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1011 | 1011 | | law enforcement officers of the Oklahoma Capitol Patrol Division of RBH No. 12208 |
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1012 | 1012 | | |
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1013 | 1013 | | Req. No. 12208 Page 21 1 |
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1036 | 1036 | | 24 |
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1037 | 1037 | | |
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1038 | 1038 | | the Department of Public Safety who became members of the System |
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1039 | 1039 | | effective July 1, 1993, any service credited under the Oklahoma |
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1040 | 1040 | | Public Employees Retirement System as of June 30, 1993, and for all |
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1041 | 1041 | | commissioned officers in the Gunsmith/Ammunition Reloader Division |
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1042 | 1042 | | of the Department of Public Safety who became members of the System |
---|
1043 | 1043 | | effective July 1, 1994, any service credited under the Okla homa |
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1044 | 1044 | | Public Employees Retirement System as of June 30, 1994, and for the |
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1045 | 1045 | | park managers or park supervisors of the Oklahoma Tourism and |
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1046 | 1046 | | Recreation Department who were employed in such a position prior to |
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1047 | 1047 | | July 1, 1985, and who elect to become members of the System |
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1048 | 1048 | | effective September 1, 1996, any service transferred pursuant to |
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1049 | 1049 | | subsection C of Section 2 -309.6 of this title and any service |
---|
1050 | 1050 | | purchased pursuant to subsection B of Section 2 -307.2 of this title. |
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1051 | 1051 | | Effective August 5, 1993, an authorized leave of abs ence shall |
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1052 | 1052 | | include a period of absence pursuant to the Family and Medical Leav e |
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1053 | 1053 | | Act of 1993; |
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1054 | 1054 | | 12. "Disability" means a physical or mental condition which, in |
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1055 | 1055 | | the judgment of the Board, totally and presumably permanently |
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1056 | 1056 | | prevents the member from engaging in the usual and customary duties |
---|
1057 | 1057 | | of the occupation of the member and thereafter prevents the member |
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1058 | 1058 | | from performing the duties of any occupation or service for which |
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1059 | 1059 | | the member is qualified by reason of training, education or |
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1060 | 1060 | | experience. A person is not un der a disability when capable of RBH No. 12208 |
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1061 | 1061 | | |
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1062 | 1062 | | Req. No. 12208 Page 22 1 |
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1085 | 1085 | | 24 |
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1086 | 1086 | | |
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1087 | 1087 | | performing a service to the employer, regardl ess of occupation, |
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1088 | 1088 | | providing the salary of the employee is not diminished thereby; |
---|
1089 | 1089 | | 13. "Limitation year" means the year used in applying the |
---|
1090 | 1090 | | limitations of Section 415 of the In ternal Revenue Code of 1986, |
---|
1091 | 1091 | | which year shall be the calendar year; |
---|
1092 | 1092 | | 14. "Line of duty" means any action which a member whose |
---|
1093 | 1093 | | primary function is crime control or reduction or enforcement of the |
---|
1094 | 1094 | | criminal law is obligated or authorized by rule, regulations, |
---|
1095 | 1095 | | condition of employment or service, or law to perform including |
---|
1096 | 1096 | | those social, ceremonial or athletic functions to which the member |
---|
1097 | 1097 | | is assigned, or for which the member is compensated, by the agency |
---|
1098 | 1098 | | the member serves; |
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1099 | 1099 | | 15. "Personal injury" or "injury" means any traumatic injury as |
---|
1100 | 1100 | | well as diseases which are caused by or result from such an injury, |
---|
1101 | 1101 | | but not occupational diseases; |
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1102 | 1102 | | 16. "Catastrophic nature" means consequences of an injury that |
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1103 | 1103 | | permanently prevent an individual from performing any gainful work ; |
---|
1104 | 1104 | | 17. "Traumatic injury" means a wound or a condition of the body |
---|
1105 | 1105 | | caused by external force including injuries inflicted by bullets, |
---|
1106 | 1106 | | explosives, sharp instruments, blunt objects or other physical |
---|
1107 | 1107 | | blows, chemicals, electricity, climatic conditions, infectio us |
---|
1108 | 1108 | | diseases, radiation and bacteria, but excluding stress and strain; |
---|
1109 | 1109 | | and RBH No. 12208 |
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1110 | 1110 | | |
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1111 | 1111 | | Req. No. 12208 Page 23 1 |
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1112 | 1112 | | 2 |
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1113 | 1113 | | 3 |
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1133 | 1133 | | 23 |
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1134 | 1134 | | 24 |
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1135 | 1135 | | |
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1136 | 1136 | | 18. "Beneficiary" means the individual designated by the member |
---|
1137 | 1137 | | on a beneficiary designation form supplied by the Oklahoma Law |
---|
1138 | 1138 | | Enforcement Retirement System, or, if there is no desi gnated |
---|
1139 | 1139 | | beneficiary or if the designated beneficiary predeceases the member, |
---|
1140 | 1140 | | the estate of the member. If the member 's spouse is not designated |
---|
1141 | 1141 | | as the sole primary beneficiary, the member 's spouse must sign a |
---|
1142 | 1142 | | consent. |
---|
1143 | 1143 | | SECTION 3. NEW LAW A new section of law to be codified |
---|
1144 | 1144 | | in the Oklahoma Statutes as Section 2 -309.11 of Title 47, unless |
---|
1145 | 1145 | | there is created a duplication in numbering, reads as follows: |
---|
1146 | 1146 | | Commissioned or CLEET -certified officers of the Office of the |
---|
1147 | 1147 | | State Fire Marshal who ar e hired on or after November 1, 2025, shall |
---|
1148 | 1148 | | participate in and make contributions to the Oklahoma Law |
---|
1149 | 1149 | | Enforcement Retirement System as other participating employers and |
---|
1150 | 1150 | | members of the System. Such employees shall not make contributions |
---|
1151 | 1151 | | to any plan offered by the Oklahoma Public Employees Retirement |
---|
1152 | 1152 | | System, other than the Oklahoma State Employees Deferred |
---|
1153 | 1153 | | Compensation Plan and the Oklahoma State Employees Deferred Savings |
---|
1154 | 1154 | | Incentive Plan. The Office of the State Fire Marshal shall be a |
---|
1155 | 1155 | | participating employer in the Oklahoma Law Enforcement Retirement |
---|
1156 | 1156 | | System for all Office of the State Fire Marshal commissioned or |
---|
1157 | 1157 | | CLEET-certified officers who participate in the Oklahoma Law |
---|
1158 | 1158 | | Enforcement Retirement System pursuant to the provisions of this |
---|
1159 | 1159 | | section. RBH No. 12208 |
---|
1160 | 1160 | | |
---|
1161 | 1161 | | Req. No. 12208 Page 24 1 |
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1182 | 1182 | | 22 |
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1183 | 1183 | | 23 |
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1184 | 1184 | | 24 |
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1185 | 1185 | | |
---|
1186 | 1186 | | SECTION 4. Section 1 of this act shall become effective October |
---|
1187 | 1187 | | 1, 2025. |
---|
1188 | 1188 | | SECTION 5. Sections 2 and 3 of this act shall become effective |
---|
1189 | 1189 | | November 1, 2025. |
---|
1190 | 1190 | | |
---|
1191 | 1191 | | 60-1-12208 CMA 01/15/25 |
---|
1192 | 1192 | | |
---|
1193 | 1193 | | THOMAS E. CUMMINS CONSULTING ACTUARY, INC. |
---|
1194 | 1194 | | 2512 E. 71 |
---|
1195 | 1195 | | st |
---|
1196 | 1196 | | Street , Suite D ∙ Tulsa, Oklahoma 74136 |
---|
1197 | 1197 | | (918) 492-9658 ∙ (918) 492- 9659 |
---|
1198 | 1198 | | |
---|
1199 | 1199 | | |
---|
1200 | 1200 | | |
---|
1201 | 1201 | | |
---|
1202 | 1202 | | January 16, 2025 |
---|
1203 | 1203 | | |
---|
1204 | 1204 | | |
---|
1205 | 1205 | | |
---|
1206 | 1206 | | Representative Kannady |
---|
1207 | 1207 | | Room 240N |
---|
1208 | 1208 | | |
---|
1209 | 1209 | | |
---|
1210 | 1210 | | Re: RBH No. 12208 |
---|
1211 | 1211 | | |
---|
1212 | 1212 | | RBH No. 12208 would make new CLEET active commissioned agents and |
---|
1213 | 1213 | | CLEET certified agents of the State Fire Marshall’s office |
---|
1214 | 1214 | | participants in the Oklahoma Law Enforcement Retirement System. |
---|
1215 | 1215 | | |
---|
1216 | 1216 | | This act also amends OPLAAA definition of non fiscal to include the |
---|
1217 | 1217 | | above change. |
---|
1218 | 1218 | | |
---|
1219 | 1219 | | |
---|
1220 | 1220 | | |
---|
1221 | 1221 | | RBH No. 122081 is a non fiscal bill as defined by O PLAAA. |
---|
1222 | 1222 | | |
---|
1223 | 1223 | | I am a member of the American Academy of Actuaries and meet the |
---|
1224 | 1224 | | Qualification Standards of the American Academy of Actuaries to |
---|
1225 | 1225 | | render the actuarial opinion herein. |
---|
1226 | 1226 | | |
---|
1227 | 1227 | | |
---|
1228 | 1228 | | Thomas E. Cummins |
---|
1229 | 1229 | | |
---|
1230 | 1230 | | Thomas E. Cummins, MAAA |
---|
1231 | 1231 | | |
---|
1232 | 1232 | | |
---|