Oklahoma Legislature· HB 1237Referred to Actuary pursuant to the Oklahoma Pension Legislation Actuarial Analysis Act

An act relating to public retirement systems, the official text

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RBH No. 10046

1 STATE OF OKLAHOMA

2 1st Session of the 60th Legislature (2025)

3 HOUSE BILL 1237 By: Humphrey

6 AS INTRODUCED

7 An Act relating to public retirement systems;

amending 11 O.S. 2021, Section 49-113.2, which

8 relates to the Oklahoma Firefighters Pension and

Retirement System; amending 11 O.S. 2021, Section 50-

9 115.2, which relates to the Oklahoma Police Pension

and Retirement System; amending 20 O.S. 2021, Section

10 1103E, which relates to the Uniform Retirement System

for Justices and Judges; amending 47 O.S. 2021,

11 Section 2-306.3, which relates to the Oklahoma Law

Enforcement Retirement System; amending 70 O.S. 2021,

12 Section 17-105, as amended by Section 4, Chapter 300,

O.S.L. 2024 (70 O.S. Supp. 2024, Section 17-105),

13 which relates to the Teachers' Retirement System of

Oklahoma; amending 74 O.S. 2021, Section 916.1, which

14 relates to the Oklahoma Public Employees Retirement

System; modifying death benefit amount; and providing

15 an effective date.

18 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

19 SECTION 1. AMENDATORY 11 O.S. 2021, Section 49-113.2, is

20 amended to read as follows:

21 Section 49-113.2. A. Upon the death of an active or retired

22 member, the System shall pay to the surviving spouse of the member

23 if the surviving spouse has been married to the firefighter for

24 thirty (30) continuous months preceding the member's death provided

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1 a surviving spouse of a member who died while in, or as a

2 consequence of, the performance of the member's duty for a

3 participating municipality shall not be subject to the marriage

4 limitation for survivor benefits, or if there is no surviving spouse

5 or no surviving spouse meeting the requirements of this section, the

6 System shall pay to the designated recipient or recipients of the

7 member, or if there is no designated recipient or if the designated

8 recipient predeceases the member, to the estate of the member, the

9 sum of Four Thousand Dollars ($4,000.00) for those active or retired

10 members who died prior to July 1, 1999. For those active or retired

11 members who die on or after July 1, 1999 the effective date of this

12 act, the sum shall be Five Thousand Dollars ($5,000.00) Ten Thousand

13 Dollars ($10,000.00).

14 B. Upon the death of a member who dies leaving no living

15 designated recipient or having designated the member's estate as

16 recipient, the System may pay any applicable death benefit which may

17 be subject to probate, in an amount of Five Thousand Dollars

18 ($5,000.00) Ten Thousand Dollars ($10,000.00), to the heir or heirs

19 of the member without the intervention of a probate court or probate

20 procedures.

21 C. Before any applicable probate procedure may be waived, the

22 System must be in receipt of the member's proof of death and the

23 following documents from those persons claiming to be the legal

24 heirs of the deceased member:

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1 1. The member's last will and testament if available;

2 2. An affidavit or affidavits of heirship which must contain:

3 a. the names and signatures of all claiming heirs to the

4 deceased member's estate including the claiming heirs'

5 names, relationship to the deceased member, current

6 addresses and current telephone numbers,

7 b. a statement or statements by the claiming heirs that

8 no application or petition for the appointment of a

9 personal representative is pending or has been granted

10 in any jurisdiction,

11 c. a statement that the value of the deceased member's

12 entire probate estate, less liens and encumbrances,

13 does not exceed the dollar limit pursuant to Section

14 393 of Title 58 of the Oklahoma Statutes, including

15 the payment of benefits from the System, and

16 d. a statement by each individual claiming heir

17 identifying the amount of personal property that the

18 heir is claiming from the System or the amount the

19 heir agrees to be paid to another person, and that the

20 heir has been notified of, is aware of and consents to

21 the identified claims of all the other claiming heirs

22 of the deceased member pending with the System;

23 3. A written agreement or agreements signed by all claiming

24 heirs of the deceased member which provides that the claiming heirs

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1 release, discharge and hold harmless the System from any and all

2 liability, obligations and costs which it may incur as a result of

3 making a payment to any of the deceased member's heirs;

4 4. A corroborating affidavit from an individual other than a

5 claiming heir, who was familiar with the affairs of the deceased

6 member; and

7 5. Proof that funeral and burial expenses of the deceased

8 member have been paid or provided for.

9 D. The System shall retain complete discretion in determining

10 which requests for probate waiver may be granted or denied, for any

11 reason. Should the System have any questions as to the validity of

12 any document presented by the claiming heirs, or as to any statement

13 or assertion contained therein, the probate requirements provided

14 for in Section 1 et seq. of Title 58 of the Oklahoma Statutes shall

15 not be waived.

16 E. After paying any death benefits to any claiming heirs as

17 provided pursuant to this section, the System is discharged and

18 released from any and all liability, obligation and costs to the

19 same extent as if the System had paid a personal representative

20 holding valid letters testamentary issued by a court of competent

21 jurisdiction. The System is not required to inquire into the truth

22 of any matter specified in this section or into the payment of any

23 estate tax liability.

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1 F. The provisions of this section shall not be subject to

2 qualified domestic orders as provided in subsection B of Section 49-

3 126 of this title.

4 G. 1. For purposes of this section, if a person makes a

5 qualified disclaimer with respect to the death benefit provided for

6 in subsection A of this section, this section shall apply with

7 respect to such death benefit as if the death benefit had never been

8 transferred to such person.

9 2. For purposes of this subsection, the term "qualified

10 disclaimer" means an irrevocable and unqualified refusal by a

11 person, including but not limited to the surviving spouse of the

12 deceased member, to accept an interest in the death benefit provided

13 for in subsection A of this section, but only if:

14 a. such refusal is in writing,

15 b. such writing is received by the System not later than

16 the date which is nine (9) months after the date of

17 death of the deceased member,

18 c. such person has not accepted the death benefit

19 provided for in subsection A of this section, and

20 d. as a result of such refusal, the death benefit

21 provided for in subsection A of this section passes

22 without any direction on the part of the person making

23 the disclaimer and passes first, to the organization

24 providing funeral and burial services for the deceased

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1 member or, if the cost of the funeral and burial

2 services for the deceased member has already been

3 paid, to the person or persons other than the person

4 making the disclaimer as further provided for in this

5 section.

6 SECTION 2. AMENDATORY 11 O.S. 2021, Section 50-115.2, is

7 amended to read as follows:

8 Section 50-115.2. Upon the death of an active or retired

9 member, the Oklahoma Police Pension and Retirement System shall pay

10 to the beneficiary of the member under paragraph 13 of Section 50-

11 101 of this title or if there is no such beneficiary or if such

12 beneficiary predeceases the member, to the member's estate or, if

13 properly designated by the member, to a trust, the sum of Four

14 Thousand Dollars ($4,000.00) as a death benefit for those active or

15 retired members who died prior to July 1, 1999. For those active or

16 retired members who die on or after July 1, 1999 the effective date

17 of this act, the sum shall be Five Thousand Dollars ($5,000.00) Ten

18 Thousand Dollars ($10,000.00).

19 SECTION 3. AMENDATORY 20 O.S. 2021, Section 1103E, is

20 amended to read as follows:

21 Section 1103E. Upon the death of a retired member, the Uniform

22 Retirement System for Justices and Judges shall pay to the

23 beneficiary of the member or if there is no beneficiary or if the

24 beneficiary predeceases the member, to the estate of the member, the

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1 sum of Four Thousand Dollars ($4,000.00) as a death benefit for

2 those retired members who died prior to July 1, 1999. For those

3 retired members who die on or after July 1, 1999 the effective date

4 of this act, the sum shall be Five Thousand Dollars ($5,000.00) Ten

5 Thousand Dollars ($10,000.00). The benefit payable pursuant to this

6 section shall be deemed, for purposes of federal income taxation, as

7 life insurance proceeds and not as a death benefit if the Internal

8 Revenue Service approves this provision pursuant to a private letter

9 ruling request which shall be submitted by the board of trustees of

10 the System for that purpose.

11 SECTION 4. AMENDATORY 47 O.S. 2021, Section 2-306.3, is

12 amended to read as follows:

13 Section 2-306.3. Upon the death of an active or retired member,

14 the Oklahoma Law Enforcement Retirement System shall pay to the

15 designated beneficiary of the member as defined in paragraph 17 of

16 Section 2-300 of this title or if there is no such designated

17 beneficiary or if such designated beneficiary predeceases the

18 member, to the estate of the member, the sum of Four Thousand

19 Dollars ($4,000.00) as a death benefit for those active or retired

20 members who died prior to July 1, 1999. For those active or retired

21 members who die on or after July 1, 1999 the effective date of this

22 act, the sum shall be Five Thousand Dollars ($5,000.00) Ten Thousand

23 Dollars ($10,000.00).

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1 SECTION 5. AMENDATORY 70 O.S. 2021, Section 17-105, as

2 amended by Section 4, Chapter 300, O.S.L. 2024 (70 O.S. Supp. 2024,

3 Section 17-105), is amended to read as follows:

4 Section 17-105. A. 1. Any member who has attained age fifty-

5 five (55) or who has completed thirty (30) years of creditable

6 service, as defined in Section 17-101 of this title, or for any

7 person who initially became a member prior to July 1, 1992,

8 regardless of whether there were breaks in service after July 1,

9 1992, whose age and number of years of creditable service total

10 eighty (80) may be retired upon proper application for retirement as

11 established by the Teachers' Retirement System of Oklahoma. Such a

12 retirement date will also apply to any person who became a member of

13 the sending system as defined in Section 17-116.2 of this title,

14 prior to July 1, 1992, regardless of whether there were breaks in

15 service after July 1, 1992. Any person who became a member after

16 June 30, 1992, but prior to November 1, 2011, whose age and number

17 of years of creditable service total ninety (90) may be retired upon

18 proper application for retirement as established by the System. Any

19 person who becomes a member on or after November 1, 2011, who

20 attains the age of sixty-five (65) years or who reaches a normal

21 retirement date pursuant to subparagraph d of paragraph 22 of

22 Section 17-101 of this title having attained a minimum age of sixty

23 (60) years may be retired upon proper application for retirement as

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1 established by the System. The application shall be filed with the

2 System in a manner required by the Board of Trustees.

3 2. The employer shall provide the System with the following

4 information for a retiring member, no later than the fifteenth day

5 of the month of retirement: last day physically on the job; last

6 day on payroll; any regular compensation not already reported to the

7 System; and final unused sick leave balance.

8 3. Failure to submit this information by the deadline, or

9 errors in submitted information that result in a disqualification of

10 retirement eligibility, shall be the responsibility of the employer.

11 In cases where the error results in disqualification of retirement

12 eligibility, it is the employer's responsibility to reemploy the

13 member, or retain the member on the payroll, for the time period

14 required to reach eligibility, not exceeding two (2) months.

15 B. An individual who becomes a member of the Teachers'

16 Retirement System of Oklahoma after July 1, 1967, through October

17 31, 2017, shall be employed by the public schools, state colleges,

18 or universities of Oklahoma for a minimum of five (5) years and be a

19 contributing member of the Teachers' Retirement System of Oklahoma

20 for a minimum of five (5) years to qualify for monthly retirement

21 benefits from the Teachers' Retirement System of Oklahoma.

22 An individual who becomes a member of the Teachers' Retirement

23 System of Oklahoma on or after November 1, 2017, shall be employed

24 by the public schools, state colleges or universities of Oklahoma

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1 for a minimum of seven (7) years and be a contributing member of the

2 Teachers' Retirement System of Oklahoma for a minimum of seven (7)

3 years to qualify for monthly retirement benefits from the Teachers'

4 Retirement System of Oklahoma.

5 C. Individuals becoming members after July 1, 1967, through

6 October 31, 2017, with five (5) or more years of Oklahoma service

7 and whose accumulated contributions during such period have not been

8 withdrawn shall be given an indefinite extension of membership

9 beginning with the sixth year following the member's last

10 contributing membership.

11 Individuals becoming members on or after November 1, 2017, with

12 seven (7) or more years of Oklahoma service and whose accumulated

13 contributions during such period have not been withdrawn shall be

14 given an indefinite extension of membership beginning with the

15 eighth year following the member's last contributing membership.

16 D. Nonclassified optional personnel who have retired or who

17 retire at sixty-two (62) years of age or older or whose retirement

18 is because of disability shall have minimum retirement benefits

19 calculated on an average salary of Five Thousand Three Hundred Fifty

20 Dollars ($5,350.00) or, if a larger monthly allowance would result,

21 an amount arrived at pursuant to application of the formula

22 prescribed herein.

23 E. No member shall receive a lesser retirement benefit than the

24 member would have received under the law in effect at the time the

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1 member retired. Any individual under the Teachers' Retirement

2 System of Oklahoma, who through error in stating the title of the

3 position which the member held, may, at the discretion of the Board

4 of Trustees, be changed from the nonclassified optional group to the

5 classified group for the purpose of calculating retirement benefits.

6 F. The value of each year of prior service is the total monthly

7 retirement benefit divided by the number of years of creditable

8 service.

9 G. Upon application of a member who is actively engaged in

10 teaching in Oklahoma or upon application of the member's employer,

11 any member who has been a contributing member for ten (10) years may

12 be retired by the System subsequent to the execution and filing

13 thereof, on a disability retirement allowance, provided that it is

14 found by the Medical Board after medical examination of such member

15 by a duly qualified physician that such member is mentally or

16 physically incapacitated for further performance of duty, that such

17 incapacity is likely to be permanent, and that such member should be

18 retired. The System shall rely on and give full consideration to

19 the conclusions and recommendations in the certified written report

20 of the Medical Board of the Teachers' Retirement System of Oklahoma

21 regarding the disability application of such member. If the Medical

22 Board does not find that a member applying for disability retirement

23 is mentally or physically incapacitated for performance of duty or

24 otherwise eligible for a disability retirement, the application

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1 shall then be considered by the Board of Trustees. If a member is

2 determined to be eligible for disability benefits pursuant to the

3 Social Security System, then such determination shall entitle the

4 member to the authorized disability retirement benefits provided by

5 law. For members who are not eligible for disability benefits

6 pursuant to the Social Security Administration, the Board of

7 Trustees and the Medical Board shall apply the same standard for

8 which provision is made in the first two sentences of this

9 subsection for determining the eligibility of a person for such

10 disability benefits in making a determination of eligibility for

11 disability benefits as authorized by this subsection.

12 H. 1. A member who at the time of retirement has been found to

13 be permanently physically or mentally incapacitated to perform the

14 necessary duties to continue in the member's current position shall

15 receive a minimum monthly retirement payment for life or until such

16 time as the member may be found to be recovered to the point where

17 the member may return to teaching. Any member retired before July

18 1, 1992, shall be eligible to receive the monthly retirement benefit

19 herein provided, but such payment shall not begin until the first

20 payment due to the member after July 1, 1992, and shall not be

21 retroactive. The Board of Trustees is empowered to make such rules

22 and regulations as it considers proper to preserve equity in

23 retirements under this provision, which shall include a provision to

24 protect the rights of the member's spouse.

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1 2. A member who has qualified for retirement benefits under

2 disability retirement shall have the total monthly payment deducted

3 from the member's accumulated contributions plus interest earned and

4 any money remaining in the member's account after the above

5 deductions at the death of the member shall be paid in a lump sum to

6 the beneficiary or to the estate of the member. Provided, if the

7 deceased disabled member had thirty (30) years or more of creditable

8 service and the death occurred after June 30, 1981, and death

9 occurred prior to the disabled member receiving twelve monthly

10 retirement payments, a surviving spouse may elect to receive the

11 retirement benefit to which the deceased member would have been

12 entitled at the time of death under the Option 2 Plan of Retirement

13 provided for in paragraph 2 of subsection K of this section in lieu

14 of the death benefit provided for in this paragraph and in

15 subsection Q of this section.

16 3. Once each year the System may require any disabled annuitant

17 who has not yet attained the age of sixty (60) years to undergo a

18 medical examination, such examination to be made at the place of

19 residence for the disabled annuitant or other place mutually agreed

20 upon by a physician or physicians designated by the System. Should

21 any disabled annuitant who has not yet attained the age of sixty

22 (60) years refuse to submit to at least one medical examination in

23 any such year by a physician or physicians designated by the System,

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1 the member's benefits may be discontinued until the member submits

2 to such examination.

3 4. Should the Medical Board report and certify to the Board of

4 Trustees that such disabled annuitant is engaged in or is able to

5 engage in a gainful occupation paying more than the difference

6 between the member's average final compensation and the annual

7 benefit amount, and should the Board of Trustees concur in such

8 report, then the amount of the member's annual benefit shall be

9 reduced to an amount which, added to the member's earnings from a

10 gainful occupation, shall equal the amount of the member's average

11 final compensation. Should the member's earning capacity be later

12 increased, the amount of the member's annual benefit may be further

13 reduced.

14 5. Should a disabled annuitant be restored to active service,

15 the member's disability retirement benefit shall cease and the

16 member shall again become an active member of the Teachers'

17 Retirement System of Oklahoma and shall make regular contributions

18 as required under this article. The unused portion of the member's

19 accumulated contributions shall be reestablished to the member's

20 credit in the Teachers' Savings Fund. Any such prior service

21 certificates on the basis of which the member's service was computed

22 at the time of the member's retirement shall be restored to full

23 force and effect.

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1 I. Should a member before retirement under Section 17-101 et

2 seq. of this title make application for withdrawal duly filed with

3 the System, not earlier than four (4) months after the date of

4 termination of employment with a participating employer within the

5 System, the contribution standing to the credit of the member's

6 individual account in the Teachers' Savings Fund shall be paid to

7 the member or, in the event of the member's death before retirement,

8 shall be paid to such person or persons as the member shall have

9 designated in a manner required by the Board of Trustees and filed

10 with the System; provided, however, if there is no designated

11 beneficiary surviving upon such death, such contributions shall be

12 paid to the member's administrators, executors, or assigns, together

13 with interest as hereinafter provided. Provided further, if there

14 is no designated beneficiary surviving upon such death, and the

15 contributions standing to the credit of such member do not exceed

16 Two Hundred Dollars ($200.00), no part of such contributions shall

17 be subject to the payment of any expense of the last illness or

18 funeral of the deceased member or any expense of administration of

19 the estate of such deceased and the System, upon satisfactory proof

20 of the death of such member and of the name or names of the person

21 or persons who would be entitled to receive such contributions under

22 the laws of descent and distribution of the state, may authorize the

23 payment of accumulated contributions to such person or persons. A

24 member terminating membership by withdrawal after June 30, 2003,

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1 shall have the interest computed at a rate of interest determined by

2 the Board of Trustees and paid to the member subject to the

3 following schedule:

4 1. If termination occurs within sixteen (16) years from the

5 date membership began, fifty percent (50%) of such interest

6 accumulations shall be paid;

7 2. With at least sixteen (16) but less than twenty-one (21)

8 years of membership, sixty percent (60%) of such interest

9 accumulations shall be paid;

10 3. With at least twenty-one (21) but less than twenty-six (26)

11 years of membership, seventy-five percent (75%) of such interest

12 accumulations shall be paid; and

13 4. With at least twenty-six (26) years of membership, ninety

14 percent (90%) of such interest accumulations shall be paid.

15 In case of death of an active member, the interest shall be

16 calculated and restored to the member's account and paid to the

17 member's beneficiary.

18 J. 1. In lieu of the Maximum Retirement Allowance payable

19 throughout life for such an amount as determined under this section,

20 the member may select a retirement allowance for a reduced amount

21 payable under any of the options listed in subsection K of this

22 section the present value of which is the actuarial equivalent

23 thereof.

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1 2. The first payment of any benefit selected shall be made on

2 the first day of the month following approval of the retirement by

3 the System. If the named joint annuitant under Option 2 or 3 dies

4 at any time after the member's retirement date, but before the death

5 of the member, the member shall return to the Maximum Plan of

6 Retirement, including any post-retirement benefit increases the

7 member would have received had the member not selected Option 2 or 3

8 pursuant to paragraph 2 or 3 of subsection K of this section. The

9 retirement allowance shall be determined at the date of death of the

10 joint annuitant. This increase shall become effective the first day

11 of the month following the date of death of the joint annuitant, and

12 shall be payable for the member's remaining lifetime. The member

13 shall notify the Teachers' Retirement System of Oklahoma of the

14 death of the joint annuitant by providing a copy of the joint

15 annuitant's death certificate. In the absence of the death

16 certificate being filed by the member notifying the Teachers'

17 Retirement System of Oklahoma of the death of the joint annuitant

18 within six (6) months of the date of death, nothing in this

19 subsection shall require the Teachers' Retirement System of Oklahoma

20 to pay more than six (6) months of retrospective benefits increase.

21 K. 1. Option 1. A member takes a slightly reduced retirement

22 allowance for life. If the member dies before receiving in annuity

23 payments the present value of the member's annuity as it was at the

24 time of retirement, the balance shall be paid to the member's

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1 beneficiary by designation filed with the System prior to the

2 member's death.

3 2. Option 2. A member takes a reduced retirement allowance for

4 life. Upon the death of the member the payments shall continue to

5 the member's joint annuitant for the life of the joint annuitant.

6 The designation of the joint annuitant must be filed with the System

7 at the time of the member's retirement and, except as provided in

8 paragraph 2 of subsection J of this section, cannot be changed after

9 the effective date of the member's retirement.

10 3. Option 3. A member receives a reduced retirement allowance

11 for life. Upon the death of the member one-half (1/2) of the

12 retirement allowance paid the member shall be continued throughout

13 the life of the member's joint annuitant. A designation of a joint

14 annuitant must be filed with the System at the time of the member's

15 retirement and, except as provided in paragraph 2 of subsection J of

16 this section, cannot be changed after the effective date of the

17 member's retirement.

18 4. Option 4. Provided, the System may establish other

19 retirement options if certified by the actuary to be of equivalent

20 actuarial value to the member's retirement allowance. Other

21 retirement options shall be presented to the Board of Trustees for

22 approval at its discretion. Such other benefit or benefits shall be

23 paid either to the member or, if applicable, to such joint annuitant

24 as the member shall nominate.

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1 L. Provided, the options listed in paragraphs 2 and 3 of

2 subsection K of this section shall not be available if the member's

3 expected benefit is less than fifty percent (50%) of the lump-sum

4 actuarial equivalent and the joint annuitant is not the spouse of

5 the member.

6 M. 1. A member who chose the Maximum Plan of Retirement at the

7 time of retirement may make a one-time election to choose either

8 Option 2 or 3 as prescribed in paragraph 2 or 3 of subsection K of

9 this section and name the member's spouse as joint annuitant if the

10 member marries after making the initial election. Such an election

11 shall be made within one (1) year of the date of marriage. The

12 member shall provide proof of a member's good health before the

13 System will permit a change to either Option 2 or 3 as prescribed in

14 paragraphs 2 and 3 of subsection K of this section and the naming of

15 a joint annuitant. A medical examination conducted by a licensed

16 physician is required for purposes of determining good health. Such

17 examination must be approved by the Medical Board. The member shall

18 be required to provide proof of age for the new joint annuitant.

19 The System shall adjust the retirement allowance to the actuarially

20 equivalent amount based on the new joint annuitant's age. The Board

21 of Trustees shall promulgate rules to implement the provisions of

22 this subsection.

23 2. A member who retires after July 1, 2010, and has selected a

24 retirement allowance for a reduced amount payable under one of the

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1 options provided for in subsection K of this section may make a one-

2 time irrevocable election to select a different option within sixty

3 (60) days of the member's retirement date. The beneficiary or joint

4 annuitant designated by the member at the time of retirement shall

5 not be changed if the member makes the election provided for in this

6 paragraph.

7 3. Any individual who is eligible to be a beneficiary or joint

8 annuitant of a member under subsection J of this section, and who is

9 also a beneficiary of a trust created under the Oklahoma

10 Discretionary and Special Needs Trust Act, Section 175.81 et seq. of

11 Title 60 of the Oklahoma Statutes, or a comparable Trust Act created

12 under the laws of another state, hereinafter collectively referred

13 to as "Trust Acts", may be a beneficiary or joint annuitant under

14 subsection J of this section by having the trustee of the trust

15 established for the benefit of that individual named as the legal

16 beneficiary or joint annuitant under subsection J of this section.

17 The age of that beneficiary shall be used for calculating any

18 benefit payable to the trust under subsection J of this section.

19 The beneficiary of such a trust shall be treated as the beneficiary

20 or joint annuitant under subsection J of this section except that

21 payments of any benefits due under subsection J of this section

22 shall be payable to the lawfully appointed trustee of the trust.

23 The obligation of the System to pay the beneficiary or joint

24 annuitant under subsection J of this section shall be satisfied by

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1 payment to the trustee whom the System, in good faith, believes to

2 be the lawfully appointed trustee. Any conflict between the

3 statutes creating and governing the Teachers' Retirement System of

4 Oklahoma in Section 17-101 et seq. of this title and the provisions

5 of any Trust Act referred to above shall be resolved in favor of the

6 statutes governing the System. If an eligible beneficiary or joint

7 annuitant is named at the time of retirement, and becomes a

8 beneficiary of a trust under one of the Trust Acts described herein

9 after that time, the System will acknowledge the trust as the

10 beneficiary upon the submission of adequate documentation of the

11 existence of the trust. All other provisions of subsection J of

12 this section shall apply to these subsequently created trusts.

13 4. The Board of Trustees of the System may recognize other

14 trusts set up for the benefit of individuals otherwise eligible to

15 be named as a beneficiary or joint annuitant under subsection J of

16 this section by administrative rule if it can be done without undue

17 additional administrative expense of the System.

18 N. The governing board of any public school, as that term is

19 defined in Section 17-101 of this title, is hereby authorized and

20 empowered to pay additional retirement allowances or compensation to

21 any person who was in the employ of such public school for not less

22 than seven (7) school years preceding the date of the member's

23 retirement. Payments so made shall be a proper charge against the

24 current appropriation or appropriations of any such public school

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1 for salaries for the fiscal year in which such payments are made.

2 Such payments shall be made in regular monthly installments in such

3 amounts as the governing board of any such public school, in its

4 judgment, shall determine to be reasonable and appropriate in view

5 of the length and type of service rendered by any such person to

6 such public school by which such person was employed at the time of

7 retirement. All such additional payments shall be uniform, based

8 upon the length of service and the type of services performed, to

9 persons formerly employed by such public school who have retired or

10 been retired in accordance with the provisions of Section 17-101 et

11 seq. of this title.

12 The governing board of any such public school may adopt rules

13 and regulations of general application outlining the terms and

14 conditions under which such additional retirement benefits shall be

15 paid, and all decisions of such board shall be final.

16 O. In addition to the teachers' retirement herein provided,

17 teachers may voluntarily avail themselves of the federal Social

18 Security program upon a district basis.

19 P. Upon the death of an in-service member, the System shall pay

20 to the designated beneficiary of the member or, if there is no

21 designated beneficiary or if the designated beneficiary predeceases

22 the member, to the estate of the member, the sum of Eighteen

23 Thousand Dollars ($18,000.00) as a death benefit. Provided, if the

24 deceased member had ten (10) years or more of creditable service,

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1 the member's designated beneficiary may elect to receive the
2 retirement benefit to which the deceased member would have been
3 entitled at the time of death under the Option 2 plan of retirement
4 in lieu of the death benefit provided for in this subsection.
5 Provided further, the option provided in this subsection is only
6 available when the member has designated one individual as the
7 designated beneficiary. The beneficiary or beneficiaries of death
8 benefits in the amount not to exceed Eighteen Thousand Dollars
9 ($18,000.00), but exclusive of any retirement benefit received by an
10 electing beneficiary based upon creditable service performed by the
11 deceased member, which are provided pursuant to this subsection, may
12 elect to disclaim such death benefits in which case such benefits
13 will be transferred to a person licensed as a funeral director or to
14 a lawfully recognized business entity licensed as required by law to
15 provide funeral services for the deceased member. The qualified
16 disclaimer must be in writing and will be an irrevocable and an
17 unqualified refusal to accept all or a portion of the death benefit.
18 It must be received by the transferor no more than nine (9) months
19 after the later of the day the transfer creating the interest in the
20 disclaiming person is made or the day the disclaiming person attains
21 age twenty-one (21). The interest in the death benefits must pass
22 without direction by the disclaiming person to another person.
23 After paying death benefits to any beneficiary or the member's
24 estate pursuant to this subsection, the System is discharged and

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1 released from any and all liability, obligation, and costs. The

2 System is not required to inquire into the truth of any matter

3 specified in this subsection or into the payment of any estate tax

4 liability.

5 Q. Upon the death of a retired member who has contributed to

6 the System, the retirement system shall pay to the designated

7 beneficiary of the member or, if there is no designated beneficiary

8 or if the designated beneficiary predeceases the member, to the

9 estate of the member, the sum of Five Thousand Dollars ($5,000.00)

10 Ten Thousand Dollars ($10,000.00) as a death benefit. The

11 beneficiary or beneficiaries of benefits provided pursuant to this

12 subsection may elect to disclaim such death benefits in which case

13 such benefits will be transferred to a person licensed as a funeral

14 director or to a lawfully recognized business entity licensed as

15 required by law to provide funeral services for the deceased member.

16 The qualified disclaimer must be in writing and will be an

17 irrevocable and an unqualified refusal to accept all or a portion of

18 the death benefit. It must be received by the transferor no more

19 than nine (9) months after the later of the day the transfer

20 creating the interest in the disclaiming person is made or the day

21 the disclaiming person attains age twenty-one (21). The interest in

22 the death benefits must pass without direction by the disclaiming

23 person to another person. The benefit payable pursuant to this

24 subsection shall be deemed, for purposes of federal income taxation,

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1 as life insurance proceeds and not as a death benefit if the

2 Internal Revenue Service approves this provision pursuant to a

3 private letter ruling request which shall be submitted by the Board

4 of Trustees of the System for that purpose. After paying death

5 benefits to any beneficiary or the member's estate pursuant to this

6 subsection, the System is discharged and released from any and all

7 liability, obligation, and costs. The System is not required to

8 inquire into the truth of any matter specified in this subsection or

9 into the payment of any estate tax liability.

10 R. Upon the death of a member who dies leaving no living

11 beneficiary or having designated the member's estate as beneficiary,

12 or upon the death of any individual who may be entitled to a benefit

13 from the System, the System may pay any applicable death benefit,

14 unpaid contributions, or unpaid benefit which may be subject to

15 probate, in an amount of Twenty-five Thousand Dollars ($25,000.00)

16 or less, without the intervention of the probate court or probate

17 procedure pursuant to Section 1 et seq. of Title 58 of the Oklahoma

18 Statutes.

19 1. Before any applicable probate procedure may be waived, the

20 System must be in receipt of the decedent's death certificate and

21 the following documents from those persons claiming to be the legal

22 heirs of the deceased member:

23 a. the decedent's valid last will and testament, trust

24 documents or affidavit that a will does not exist,

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1 b. an affidavit or affidavits of heirship which must

2 state:

3 (1) the names and signatures of all claiming heirs to

4 the decedent's estate including the claiming

5 heirs' names, relationship to the deceased,

6 current addresses, tax ID numbers if known and

7 current telephone numbers,

8 (2) a statement or statements by the claiming heirs

9 that no application or petition for the

10 appointment of a personal representative is

11 pending or has been granted in any jurisdiction,

12 (3) a description of the personal property claimed,

13 (i.e., death benefit or unpaid contributions or

14 both) together with a statement that such

15 personal property is subject to probate,

16 (4) a statement by each individual claiming heir

17 identifying the amount of personal property that

18 the heir is claiming from the System, and that

19 the heir has been notified of, is aware of and

20 consents to the identified claims of all the

21 other claiming heirs of the decedent pending with

22 the System, and

23 (5) a statement by each individual claiming heir

24 affirming that all debts of the decedent,

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1 including payment of last sickness, hospital,

2 medical, death, funeral, and burial expenses have

3 been paid or provided for,

4 c. a written agreement or agreements signed by all

5 claiming heirs of the decedent which provide that the

6 claiming heirs release, discharge and hold harmless

7 the System from any and all liability, obligations and

8 costs which it may incur as a result of making a

9 payment to any of the decedent's heirs, and

10 d. a corroborating affidavit from an individual other

11 than a claiming heir, who was familiar with the

12 affairs of the decedent.

13 2. The Executive Director of the System shall retain complete

14 discretion in determining which requests for probate waiver may be

15 granted or denied, for any reason. Should the System have any

16 question as to the validity of any document presented by the

17 claiming heirs, or as to any statement or assertion contained

18 therein, the probate requirement provided for in Section 1 et seq.

19 of Title 58 of the Oklahoma Statutes shall not be waived.

20 3. After paying any death benefits or unpaid contributions to

21 any claiming heirs as provided pursuant to this subsection, the

22 System is discharged and released from any and all liability,

23 obligation and costs to the same extent as if the System had dealt

24 with a personal representative of the decedent. The System is not

Req. No. 10046 Page 27
RBH No. 10046

1 required to inquire into the truth of any matter specified in this

2 subsection or into the payment of any estate tax liability.

3 S. Upon the death of a retired member, the benefit payment for

4 the month in which the retired member died, if not previously paid,

5 shall be made to the joint annuitant if still living, to the

6 beneficiary of the member if the joint annuitant is deceased, or to

7 the member's estate if there is no surviving joint annuitant or

8 beneficiary. Such benefit payment shall be made in an amount equal

9 to a full monthly benefit payment regardless of the day of the month

10 in which the retired member died. Upon the death of a joint

11 annuitant receiving monthly benefit payments as prescribed herein,

12 the benefit payment for the month in which the joint annuitant died,

13 if not previously paid, shall be made to the joint annuitant's

14 estate in an amount equal to the full monthly benefit payment

15 regardless of the day of the month on which the joint annuitant

16 died.

17 T. The Board of Trustees may adopt such other rules and

18 regulations as are necessary to administer the benefits enumerated

19 herein.

20 SECTION 6. AMENDATORY 74 O.S. 2021, Section 916.1, is

21 amended to read as follows:

22 Section 916.1. A. Upon the death of a retired member, the

23 Oklahoma Public Employees Retirement System shall pay to the

24 beneficiary of the member or if there is no beneficiary or if the

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RBH No. 10046

1 beneficiary predeceases the member, to the estate of the member, the

2 sum of Four Thousand Dollars ($4,000.00) as a death benefit for

3 those retired members who died prior to July 1, 1999. For those

4 retired members who died on or after July 1, 1999 the effective date

5 of this act, the sum shall be Five Thousand Dollars ($5,000.00) Ten

6 Thousand Dollars ($10,000.00). The benefit payable pursuant to this

7 subsection shall be deemed, for purposes of federal income taxation,

8 as life insurance proceeds and not as a death benefit if the

9 Internal Revenue Service approves this provision pursuant to a

10 private letter ruling request which shall be submitted by the board

11 of trustees of the System for that purpose.

12 B. Upon the death of a member who dies leaving no living

13 beneficiary or having designated his estate as beneficiary, the

14 System may pay any applicable death benefit, unpaid contributions,

15 or unpaid benefit which may be subject to probate, in an amount of

16 Twenty-five Thousand Dollars ($25,000.00) or less, without the

17 intervention of the probate court or probate procedure pursuant to

18 Section 1 et seq. of Title 58 of the Oklahoma Statutes.

19 1. Before any applicable probate procedure may be waived, the

20 System must be in receipt of the member's proof of death and the

21 following documents from those persons claiming to be the legal

22 heirs of the deceased member:

23 a. the member's valid last will and testament, trust

24 documents or affidavit that a will does not exist,

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1 b. an affidavit or affidavits of heirship which must

2 state:

3 (1) the names and signatures of all claiming heirs to

4 the deceased member's estate including the

5 claiming heirs' names, relationship to the

6 deceased, current addresses and current telephone

7 numbers,

8 (2) a statement or statements by the claiming heirs

9 that no application or petition for the

10 appointment of a personal representative is

11 pending or has been granted in any jurisdiction,

12 (3) a description of the personal property claimed

13 (i.e., death benefit or unpaid contributions or

14 both), together with a statement that such

15 personal property is subject to probate, and

16 (4) a statement by each individual claiming heir

17 identifying the amount of personal property that

18 the heir is claiming from the System, and that

19 the heir has been notified of, is aware of and

20 consents to the identified claims of all the

21 other claiming heirs of the deceased member

22 pending with the System,

23 c. a written agreement or agreements signed by all

24 claiming heirs of the deceased member which provides

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1 that the claiming heirs release, discharge and hold

2 harmless the System from any and all liability,

3 obligations and costs which it may incur as a result

4 of making a payment to any of the deceased member's

5 heirs,

6 d. a corroborating affidavit from an individual other

7 than a claiming heir, who was familiar with the

8 affairs of the deceased member, and

9 e. proof that all debts of the deceased member, including

10 payment of last sickness, hospital, medical, death,

11 funeral and burial expenses have been paid or provided

12 for.