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An act relating to retirement, the official text

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RBH No. 11255

1                             STATE OF OKLAHOMA

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

3 HOUSE BILL 1245               By: Strom

4

5

6                             AS INTRODUCED

7   An Act relating to retirement; amending 74 O.S. 2021,

    Sections 902, as last amended by Section 1, Chapter

8   280, O.S.L. 2024 (74 O.S. Supp. 2024, Section 902),

    915, as amended by Section 2, Chapter 280, O.S.L.

9   2024 (74 O.S. Supp. 2024, Section 915), 916.3, as

    amended by Section 3, Chapter 280, O.S.L. 2024 (74

10  O.S. Supp. 2024, Section 916.3), 919.1, as amended by

    Section 4, Chapter 280, O.S.L. 2024 (74 O.S. Supp.

11  2024, Section 919.1), and 935.2, which relate to the

    Oklahoma Public Employees Retirement System; defining

12  term; modifying term; providing retirement benefit

    computation for certain members; modifying who shall

13  receive monthly pension; updating references;

    modifying employee contributions for certain

14  employees; providing an effective date; and declaring

    an emergency.

15

16

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

18  SECTION 1.      AMENDATORY  74 O.S. 2021, Section 902, as last

19 amended by Section 1, Chapter 280, O.S.L. 2024 (74 O.S. Supp. 2024,

20 Section 902), is amended to read as follows:

21  Section 902. As used in Section 901 et seq. of this title:

22  (1) "System" means the Oklahoma Public Employees Retirement

23 System as established by Section 901 et seq. of this title and as it

24 may hereafter be amended;

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1   (2) "Accumulated contributions" means the sum of all

2 contributions by a member to the System which shall be credited to

3 the member's account;

4   (3) "Act" means Sections 901 to 932, inclusive, of this title;

5   (4) "Actuarial equivalent" means a deferred income benefit of

6 equal value to the accumulated deposits or benefits when computed

7 upon the basis of the actuarial tables in use by the System;

8   (5) "Actuarial tables" means the actuarial tables approved and

9 in use by the Board at any given time;

10  (6) "Actuary" means the actuary or firm of actuaries employed

11 by the Board at any given time;

12  (7) "Beneficiary" means any person named by a member to receive

13 any benefits as provided for by Section 901 et seq. of this title.

14 If there is no beneficiary living at time of member employee's

15 death, the member's estate shall be the beneficiary;

16  (8) "Board" means the Oklahoma Public Employees Retirement

17 System Board of Trustees;

18  (9) "CLEET-certified law enforcement agent employed by the

19 Department of Human Services Office of Inspector General" means

20 those persons hired by the Department of Human Services Office of

21 Inspector General on or after June 1, 1993, who are certified by the

22 Council on Law Enforcement Education and Training or an equivalent

23 certifying entity for law enforcement personnel training and who

24

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1 perform law enforcement services as part of their regularly assigned

2 duties and responsibilities on a full-time basis;

3   (10) "Compensation" means all salary and wages, as defined by

4 the Board of Trustees, including amounts deferred under deferred

5 compensation agreements entered into between a member and a

6 participating employer, but exclusive of payment for overtime,

7 payable to a member of the System for personal services performed

8 for a participating employer but shall not include compensation or

9 reimbursement for traveling, or moving expenses, or any compensation

10 in excess of the maximum compensation level, provided:

11  (a) For compensation for service prior to January 1, 1988,

12  the maximum compensation level shall be Twenty-five

13  Thousand Dollars ($25,000.00) per annum.

14  For compensation for service on or after January 1,

15  1988, through June 30, 1994, the maximum compensation

16  level shall be Forty Thousand Dollars ($40,000.00) per

17  annum.

18  For compensation for service on or after July 1, 1994,

19  through June 30, 1995, the maximum compensation level

20  shall be Fifty Thousand Dollars ($50,000.00) per

21  annum; for compensation for service on or after July

22  1, 1995, through June 30, 1996, the maximum

23  compensation level shall be Sixty Thousand Dollars

24  ($60,000.00) per annum; for compensation for service

    Req. No. 11255                                                Page 3
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1   on or after July 1, 1996, through June 30, 1997, the

2   maximum compensation level shall be Seventy Thousand

3   Dollars ($70,000.00) per annum; and for compensation

4   for service on or after July 1, 1997, through June 30,

5   1998, the maximum compensation level shall be Eighty

6   Thousand Dollars ($80,000.00) per annum. For

7   compensation for services on or after July 1, 1998,

8   there shall be no maximum compensation level for

9   retirement purposes.

10  (b) Compensation for retirement purposes shall include any

11  amount of elective salary reduction under Section 457

12  of the Internal Revenue Code of 1986 and any amount of

13  nonelective salary reduction under Section 414(h) of

14  the Internal Revenue Code of 1986.

15  (c) Notwithstanding any provision to the contrary, the

16  compensation taken into account for any employee in

17  determining the contribution or benefit accruals for

18  any plan year is limited to the annual compensation

19  limit under Section 401(a)(17) of the federal Internal

20  Revenue Code.

21  (d) Current appointed members of the Oklahoma Tax

22  Commission whose salary is constitutionally limited

23  and is less than the highest salary allowed by law for

24  his or her position shall be allowed, within ninety

    Req. No. 11255                                     Page 4
                                                RBH No. 11255

1   (90) days from March 21, 2001, to make an election to

2   use the highest salary allowed by law for the position

3   to which the member was appointed for the purposes of

4   making contributions and determination of retirement

5   benefits. Such election shall be irrevocable and be

6   in writing. Reappointment to the same office shall

7   not permit a new election. Members appointed to the

8   Oklahoma Tax Commission after the March 21, 2001,

9   shall make such election, pursuant to this

10  subparagraph, within ninety (90) days of taking

11  office;

12  (10) (11) "Credited service" means the sum of participating

13 service, prior service and elected service;

14  (11) (12) "Dependent" means a parent, child, or spouse of a

15 member who is dependent upon the member for at least one-half (1/2)

16 of the member's support;

17  (12) (13) "Effective date" means the date upon which the System

18 becomes effective by operation of law;

19  (13) (14) "Eligible employer" means the state and any county,

20 county hospital, city or town, conservation districts, circuit

21 engineering districts and any public or private trust in which a

22 county, city or town participates and is the primary beneficiary, is

23 to be an eligible employer for the purpose of Section 901 et seq. of

24 this title only, whose employees are covered by Social Security and

    Req. No. 11255                                                 Page 5
                                               RBH No. 11255

1 are not covered by or eligible for another retirement plan

2 authorized under the laws of this state which is in operation on the

3 initial entry date. Emergency medical service districts may join

4 the System upon proper application to the Board. Provided,

5 affiliation by a county hospital shall be in the form of a

6 resolution adopted by the board of control.

7   (a) If a class or several classes of employees of any

8   above-defined employers are covered by Social Security

9   and are not covered by or eligible for and will not

10  become eligible for another retirement plan authorized

11  under the laws of this state, which is in operation on

12  the effective date, such employer shall be deemed an

13  eligible employer, but only with respect to that class

14  or those classes of employees as defined in this

15  section.

16  (b) A class or several classes of employees who are

17  covered by Social Security and are not covered by or

18  eligible for and will not become eligible for another

19  retirement plan authorized under the laws of this

20  state, which is in operation on the effective date,

21  and when the qualifications for employment in such

22  class or classes are set by state law; and when such

23  class or classes of employees are employed by a county

24  or municipal government pursuant to such

    Req. No. 11255                                            Page 6
                    RBH No. 11255

1   qualifications; and when the services provided by such

2   employees are of such nature that they qualify for

3   matching by or contributions from state or federal

4   funds administered by an agency of state government

5   which qualifies as a participating employer, then the

6   agency of state government administering the state or

7   federal funds shall be deemed an eligible employer,

8   but only with respect to that class or those classes

9   of employees as defined in this subsection; provided,

10  that the required contributions to the retirement plan

11  may be withheld from the contributions of state or

12  federal funds administered by the state agency and

13  transmitted to the System on the same basis as the

14  employee and employer contributions are transmitted

15  for the direct employees of the state agency. The

16  retirement or eligibility for retirement under the

17  provisions of law providing pensions for service as a

18  volunteer firefighter shall not render any person

19  ineligible for participation in the benefits provided

20  for in Section 901 et seq. of this title. An employee

21  of any public or private trust in which a county, city

22  or town participates and is the primary beneficiary

23  shall be deemed to be an eligible employee for the

24  purpose of Section 901 et seq. of this title only.

    Req. No. 11255                                     Page 7
                    RBH No. 11255

1   (c) All employees of the George Nigh Rehabilitation

2   Institute who elected to retain membership in the

3   System, pursuant to Section 913.7 of this title, shall

4   continue to be eligible employees for the purposes of

5   Section 901 et seq. of this title. The George Nigh

6   Rehabilitation Institute shall be considered a

7   participating employer only for such employees.

8   (d) All employees of CompSource Mutual Insurance Company

9   who retain membership in the Oklahoma Public Employees

10  Retirement System pursuant to Section 913.9 of this

11  title shall continue to be eligible employees for the

12  purposes of the Oklahoma Public Employees Retirement

13  System. CompSource Mutual Insurance Company shall be

14  considered a participating employer only for such

15  employees.

16  (e) All employees of a successor organization, as defined

17  by Section 5-60.12 of Title 2 of the Oklahoma

18  Statutes, who retain membership in the Oklahoma Public

19  Employees Retirement System pursuant to Section 5-

20  60.35 of Title 2 of the Oklahoma Statutes shall

21  continue to be eligible employees for the purposes of

22  the Oklahoma Public Employees Retirement System. A

23  successor organization shall be considered a

24  participating employer only for such employees.

    Req. No. 11255                                       Page 8
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1   (f) A participating employer of the Teachers' Retirement

2   System of Oklahoma, who has one or more employees who

3   have made an election pursuant to enabling legislation

4   to retain membership in the System as a result of

5   change in administration, shall be considered a

6   participating employer of the Oklahoma Public

7   Employees Retirement System only for such employees;

8   (14) (15) "Employee" means any officer or employee of a

9 participating employer, whose employment is not seasonal or

10 temporary and whose employment requires at least one thousand

11 (1,000) hours of work per year and whose salary or wage is equal to

12 the hourly rate of the monthly minimum wage for state employees.

13 For those eligible employers outlined in Section 910 of this title,

14 the rate shall be equal to the hourly rate of the monthly minimum

15 wage for that employer. Each employer, whose minimum wage is less

16 than the state's minimum wage, shall inform the System of the

17 minimum wage for that employer. This notification shall be by

18 resolution of the governing body.

19  (a) Any employee of the county extension agents who is not

20  currently participating in the Teachers' Retirement

21  System of Oklahoma shall be a member of this System.

22  (b) Eligibility shall not include any employee who is a

23  contributing member of the United States Civil Service

24  Retirement System.

    Req. No. 11255                                                Page 9
                    RBH No. 11255

1   (c) It shall be mandatory for an officer, appointee or

2   employee of the office of district attorney to become

3   a member of this System if he or she is not currently

4   participating in a county retirement system. Provided

5   further, that if an officer, appointee or employee of

6   the office of district attorney is currently

7   participating in such county retirement system, he or

8   she is ineligible for this System as long as he or she

9   is eligible for such county retirement system. Any

10  eligible officer, appointee or employee of the office

11  of district attorney shall be given credit for prior

12  service as defined in this section. The provisions

13  outlined in Section 917 of this title shall apply to

14  those employees who have previously withdrawn their

15  contributions.

16  (d) Eligibility shall also not include any officer or

17  employee of the Oklahoma Employment Security

18  Commission, except for those officers and employees of

19  the Commission electing to transfer to this System

20  pursuant to the provisions of Section 910.1 of this

21  title or any other class of officers or employees

22  specifically exempted by the laws of this state,

23  unless there be a consolidation as provided by Section

24  912 of this title. Employees of the Oklahoma

    Req. No. 11255                                    Page 10
                    RBH No. 11255

1   Employment Security Commission who are ineligible for

2   enrollment in the Oklahoma Employment Security

3   Commission Retirement Plan, that was in effect on

4   January 1, 1964, shall become members of this System.

5   (e) Any employee employed by the Legislative Service

6   Bureau, Senate or House of Representatives for the

7   full duration of a regular legislative session shall

8   be eligible for membership in the System regardless of

9   classification as a temporary employee and may

10  participate in the System during the regular

11  legislative session at the option of the employee.

12  For purposes of this subparagraph, the determination

13  of whether an employee is employed for the full

14  duration of a regular legislative session shall be

15  made by the Legislative Service Bureau if such

16  employee is employed by the Legislative Service

17  Bureau, the Senate if such employee is employed by the

18  Senate, or by the House of Representatives if such

19  employee is employed by the House of Representatives.

20  Each regular legislative session during which the

21  legislative employee or an employee of the Legislative

22  Service Bureau participates full time shall be counted

23  as six (6) months of full-time participating service.

24

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1   (i) Except as otherwise provided by this

2                   subparagraph, once a temporary session employee

3                   makes a choice to participate or not, the choice

4                   shall be binding for all future legislative

5                   sessions during which the employee is employed.

6   (ii) Notwithstanding the provisions of division (i) of

7                   this subparagraph, any employee, who is eligible

8                   for membership in the System because of the

9                   provisions of this subparagraph and who was

10                  employed by the Senate or House of

11                  Representatives after January 1, 1989, may file

12                  an election, in a manner specified by the Board,

13                  to participate as a member of the System prior to

14                  September 1, 1989.

15  (iii) Notwithstanding the provisions of division (i) of

16                  this subparagraph, a temporary legislative

17                  session employee who elected to become a member

18                  of the System may withdraw from the System

19                  effective the day such employee elected to

20                  participate in the System upon written request to

21                  the Board. Any such request must be received by

22                  the Board prior to October 1, 1990. All employee

23                  contributions made by the temporary legislative

24                  session employee shall be returned to the

    Req. No. 11255                                               Page 12
                                                        RBH No. 11255

1                   employee without interest within four (4) months

2                   of receipt of the written request.

3   (iv) A member of the System who did not initially

4                   elect to participate as a member of the System

5                   pursuant to this subparagraph shall be able to

6                   acquire service performed as a temporary

7                   legislative session employee for periods of

8                   service performed prior to the date upon which

9                   the person became a member of the System if:

10                  a. the member files an election with the System

11                  not later than December 31, 2000, to

12                  purchase the prior service; and

13                  b. the member makes payment to the System of

14                  the actuarial cost of the service credit

15                  pursuant to subsection A of Section 913.5 of

16                  this title. The provisions of Section 913.5

17                  of this title shall be applicable to the

18                  purchase of the service credit, including

19                  the provisions for determining service

20                  credit in the event of incomplete payment

21                  due to cessation of payments, death,

22                  termination of employment or retirement, but

23                  the payment may extend for a period not to

24                  exceed ninety-six (96) months;

    Req. No. 11255                                               Page 13
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1   (15) (16) "Entry date" means the date on which an eligible

2 employer joins the System. The first entry date pursuant to Section

3 901 et seq. of this title shall be January 1, 1964;

4   (16) (17) "Executive Director" means the managing officer of

5 the System employed by the Board under Section 901 et seq. of this

6 title;

7   (17) (18) "Federal Internal Revenue Code" means the federal

8 Internal Revenue Code of 1954 or 1986, as amended and as applicable

9 to a governmental plan as in effect on July 1, 1999;

10  (18) (19) "Final average compensation" means the average annual

11 compensation, including amounts deferred under deferred compensation

12 agreements entered into between a member and a participating

13 employer, up to, but not exceeding the maximum compensation levels

14 as provided in paragraph (9) of this section received during the

15 highest three (3) of the last ten (10) years of participating

16 service immediately preceding retirement or termination of

17 employment and with respect to members whose first participating

18 service occurs on or after July 1, 2013, the compensation received

19 during the highest five (5) of the last ten (10) years of

20 participating service immediately preceding retirement or

21 termination of employment. Provided, no member shall retire with a

22 final average compensation unless the member has made the required

23 contributions on such compensation, as defined by the Board of

24 Trustees;

    Req. No. 11255                                                Page 14
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1   (19) (20) "Fiscal year" means the period commencing July 1 of

2 any year and ending June 30 of the next year. The fiscal year is

3 the plan year for purposes of the federal Internal Revenue Code;

4 however, the calendar year is the limitation year for purposes of

5 Section 415 of the federal Internal Revenue Code;

6   (20) (21) "Fund" means the Oklahoma Public Employees Retirement

7 Fund as created by Section 901 et seq. of this title;

8   (21) (22) "Leave of absence" means a period of absence from

9 employment without pay, authorized and approved by the employer and

10 acknowledged to the Board, and which after the effective date does

11 not exceed two (2) years;

12  (22) (23) "Member" means an eligible employee or elected

13 official who is in the System and is making the required employee or

14 elected official contributions, or any former employee or elected

15 official who shall have made the required contributions to the

16 System and shall have not received a refund or withdrawal;

17  (23) (24) "Military service" means service in the Armed Forces

18 of the United States by an honorably discharged person during the

19 following time periods, as reflected on such person's Defense

20 Department Form 214, not to exceed five (5) years for combined

21 participating and/or prior service, as follows:

22  (a) during the following periods, including the beginning

23  and ending dates, and only for the periods served,

24  from:

    Req. No. 11255                                                 Page 15
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1   (i) April 6, 1917, to November 11, 1918, commonly

2                   referred to as World War I,

3   (ii) September 16, 1940, to December 7, 1941, as a

4                   member of the 45th Division,

5   (iii) December 7, 1941, to December 31, 1946, commonly

6                   referred to as World War II,

7   (iv) June 27, 1950, to January 31, 1955, commonly

8                   referred to as the Korean Conflict or the Korean

9                   War,

10  (v) February 28, 1961, to May 7, 1975, commonly

11                  referred to as the Vietnam era, except that:

12                  a. for the period from February 28, 1961, to

13                        August 4, 1964, military service shall only

14                        include service in the Republic of Vietnam

15                        during that period, and

16                  b. for purposes of determining eligibility for

17                        education and training benefits, such period

18                        shall end on December 31, 1976, or

19  (vi) August 1, 1990, to December 31, 1991, commonly

20                  referred to as the Gulf War, the Persian Gulf

21                  War, or Operation Desert Storm, but excluding any

22                  person who served on active duty for training

23                  only, unless discharged from such active duty for

24                  a service-connected disability;

    Req. No. 11255                                            Page 16
                    RBH No. 11255

1   (b) during a period of war or combat military operation

2   other than a conflict, war or era listed in

3   subparagraph (a) of this paragraph, beginning on the

4   date of Congressional authorization, Congressional

5   resolution, or Executive Order of the President of the

6   United States, for the use of the Armed Forces of the

7   United States in a war or combat military operation,

8   if such war or combat military operation lasted for a

9   period of ninety (90) days or more, for a person who

10  served, and only for the period served, in the area of

11  responsibility of the war or combat military

12  operation, but excluding a person who served on active

13  duty for training only, unless discharged from such

14  active duty for a service-connected disability, and

15  provided that the burden of proof of military service

16  during this period shall be with the member, who must

17  present appropriate documentation establishing such

18  service.

19 An eligible member under this paragraph shall include only those

20 persons who shall have served during the times or in the areas

21 prescribed in this paragraph, and only if such person provides

22 appropriate documentation in such time and manner as required by the

23 System to establish such military service prescribed in this

24 paragraph, or for service pursuant to subdivision a of division (v)

    Req. No. 11255                                                 Page 17
                                          RBH No. 11255

1 of subparagraph (a) of this paragraph those persons who were awarded

2 service medals, as authorized by the United States Department of

3 Defense as reflected in the veteran's Defense Department Form 214,

4 related to the Vietnam Conflict for service prior to August 5, 1964;

5   (24) (25) "Normal retirement date" means the date on which a

6 member may retire with full retirement benefits as provided in

7 Section 901 et seq. of this title, such date being whichever occurs

8 first:

9         (a) the first day of the month coinciding with or

10        following a member's:

11        (1) sixty-second birthday with respect to members

12                  whose first participating service occurs prior to

13                  November 1, 2011, or

14        (2) sixty-fifth birthday with respect to members

15                  whose first participating service occurs on or

16                  after November 1, 2011, or with respect to

17                  members whose first participating service occurs

18                  on or after November 1, 2011, who reach a minimum

19                  age of sixty (60) years and who also reach a

20                  normal retirement date pursuant to subparagraph c

21                  of this paragraph,

22        (b) for any person who initially became a member prior to

23        July 1, 1992, and who does not reach a normal

24        retirement date pursuant to division (1) of

    Req. No. 11255                                                Page 18
                                            RBH No. 11255

1   subparagraph (a) of this paragraph, the first day of

2   the month coinciding with or following the date at

3   which the sum of a member's age and number of years of

4   credited service total eighty (80); such a normal

5   retirement date will also apply to any person who

6   became a member of the sending system as defined in

7   Section 901 et seq. of this title, prior to July 1,

8   1992, regardless of whether there were breaks in

9   service after July 1, 1992,

10  (c) for any person who became a member after June 30,

11  1992, but prior to November 1, 2011, and who does not

12  reach a normal retirement date pursuant to division

13  (1) of subparagraph (a) of this paragraph, the first

14  day of the month coinciding with or following the date

15  at which the sum of a member's age and number of years

16  of credited service total ninety (90),

17  (d) in addition to subparagraphs (a), (b) and (c) of this

18  paragraph, the first day of the month coinciding with

19  or following a member's completion of at least twenty

20  (20) years of full-time-equivalent employment as:

21  (i) a correctional or probation and parole officer

22                  with the Department of Corrections and at the

23                  time of retirement, the member was a correctional

24

    Req. No. 11255                                    Page 19
                                                           RBH No. 11255

1                   or probation and parole officer with the

2                   Department of Corrections,

3   (ii) a correctional officer, probation and parole

4                   officer or fugitive apprehension agent with the

5                   Department of Corrections who is in such position

6                   on June 30, 2004, or who is hired after June 30,

7                   2004, and who receives a promotion or change in

8                   job classification after June 30, 2004, to

9                   another position in the Department of

10                  Corrections, so long as such officer or agent has

11                  at least five (5) years of service as a

12                  correctional officer, probation and parole

13                  officer or fugitive apprehension agent with the

14                  Department, has twenty (20) years of full-time-

15                  equivalent employment with the Department and was

16                  employed by the Department at the time of

17                  retirement,

18  (iii) a firefighter with the Military Department of the

19                  State of Oklahoma either employed for the first

20                  time on or after July 1, 2002, or who was

21                  employed prior to July 1, 2002, in such position

22                  and who makes the election authorized by division

23                  (2) of subparagraph b of paragraph (9) of

24                  subsection A of Section 915 of this title and at

    Req. No. 11255                                              Page 20
                                                      RBH No. 11255

1                   the time of retirement, the member was a

2                   firefighter with the Military Department of the

3                   State of Oklahoma, and such member has at least

4                   twenty (20) years of credited service upon which

5                   the two and one-half percent (2 1/2%) multiplier

6                   will be used in calculating the retirement

7                   benefit,

8   (iv) a public safety officer employed by the Grand

9                   River Dam Authority for the first time on or

10                  after July 1, 2016,

11  (v) a deputy sheriff or jailer employed by any county

12                  that is a participating employer in the System

13                  for the first time as a deputy sheriff or jailer

14                  on or after November 1, 2020, or

15  (vi) beginning November 1, 2024, a deputy sheriff or

16                  jailer employed by any county that is a

17                  participating employer in the System for the

18                  first time as a deputy sheriff or jailer before

19                  November 1, 2020, including those who make the

20                  election authorized by division (2) of

21                  subparagraph b of paragraph (10) of subsection A

22                  of Section 915 of this title, and at the time of

23                  retirement, if the member was a deputy sheriff or

24                  jailer employed by the participating county, and

    Req. No. 11255                                              Page 21
                                         RBH No. 11255

1                   such member has at least twenty (20) years of

2                   credited service upon which the two and one-half

3                   percent (2 1/2%) multiplier will be used in

4                   calculating the retirement benefit, or

5   (vii) a CLEET-certified law enforcement agent employed

6                   by the Department of Human Services Office of

7                   Inspector General who is employed for the first

8                   time on or after July 1, 2025, or who was

9                   employed prior to July 1, 2025, as a CLEET-

10                  certified law enforcement agent and makes the

11                  election authorized by subparagraph (d) of

12                  paragraph (9) of subsection A of Section 915 of

13                  this title and, at the time of retirement, the

14                  member was a CLEET-certified law enforcement

15                  agent with the Department of Human Services

16                  Office of Inspector General, and such member has

17                  at least twenty (20) years of credited service,

18                  upon which the two and one-half percent (2 1/2%)

19                  multiplier will be used in calculating the

20                  retirement benefit,

21  (e) for those fugitive apprehension agents who retire on

22  or after July 1, 2002, the first day of the month

23  coinciding with or following a member's completion of

24  at least twenty (20) years of full-time-equivalent

    Req. No. 11255                                               Page 22
                             RBH No. 11255

1              employment as a fugitive apprehension agent with the

2              Department of Corrections and at the time of

3              retirement, the member was a fugitive apprehension

4              agent with the Department of Corrections, or

5   (f) for any member who was continuously employed by an

6              entity or institution within The Oklahoma State System

7              of Higher Education and whose initial employment with

8              such entity or institution was prior to July 1, 1992,

9              and who without a break in service of more than thirty

10             (30) days became employed by an employer participating

11             in the Oklahoma Public Employees Retirement System,

12             the first day of the month coinciding with or

13             following the date at which the sum of the member's

14             age and number of years of credited service total

15             eighty (80);

16  (25) (26) "Participating employer" means an eligible employer

17 who has agreed to make contributions to the System on behalf of its

18 employees;

19  (26) (27) "Participating service" means the period of

20 employment after the entry date for which credit is granted a

21 member. Provided, on or after the effective date of this act,

22 military service credit purchased under Section 913.8 of this title

23 shall only be considered "participating service" if such service is

24 immediately preceded by a period of employment with a participating

    Req. No. 11255                                                Page 23
                                                           RBH No. 11255

1 employer and followed by a return to service as an employee with the

2 same or another participating employer within ninety (90) days

3 immediately following discharge from such military service;

4   (27) (28) "Prior service" means the period of employment of a

5 member by an eligible employer prior to the member's entry date for

6 which credit is granted a member under Section 901 et seq. of this

7 title. Provided, on or after the effective date of this act, "prior

8 service" shall also include service purchased under Section 913.8 of

9 this title which does not meet the requirements of paragraph 26 of

10 this section;

11  (28) (29) "Retirant" or "retiree" means a member who has

12 retired under the System;

13  (29) (30) "Retirement benefit" means a monthly income with

14 benefits accruing from the first day of the month coinciding with or

15 following retirement and ending on the last day of the month in

16 which death occurs or the actuarial equivalent thereof paid in such

17 manner as specified by the member pursuant to Section 901 et seq. of

18 this title or as otherwise allowed to be paid at the discretion of

19 the Board;

20  (30) (31) "Retirement coordinator" means the individual

21 designated by each participating employer through whom System

22 transactions and communication shall be directed;

23  (31) (32) "Social Security" means the old-age survivors and

24 disability section of the federal Social Security Act;

    Req. No. 11255                                                Page 24
                                                            RBH No. 11255

1   (32) (33) "Total disability" means a physical or mental

2 disability accepted for disability benefits by the federal Social

3 Security System;

4   (33) (34) "Service-connected disability benefits" means

5 military service benefits which are for a service-connected

6 disability rated at twenty percent (20%) or more by the Veterans

7 Administration or the Armed Forces of the United States;

8   (34) (35) "Elected official" means a person elected to a state

9 office in the legislative or executive branch of state government or

10 a person elected to a county office for a definite number of years

11 and shall include an individual who is appointed to fill the

12 unexpired term of an elected state official;

13  (35) (36) "Elected service" means the period of service as an

14 elected official;

15  (36) (37) "Limitation year" means the year used in applying the

16 limitations of Section 415 of the Internal Revenue Code of 1986,

17 which year shall be the calendar year; and

18  (37) (38) "Public safety officers of the Grand River Dam

19 Authority" means those persons hired by the Grand River Dam

20 Authority on or after March 21, 2001, who are certified by the

21 Council on Law Enforcement Education and Training or an equivalent

22 certifying entity for law enforcement personnel training and who

23 perform law enforcement functions as part of their regularly

24 assigned duties and responsibilities on a full-time basis. With

    Req. No. 11255                                                 Page 25
                                                           RBH No. 11255

1 respect to any public safety officer hired by the Grand River Dam

2 Authority on or after March 21, 2001, any earned benefits or credits

3 toward retirement benefits from previous participation within the

4 Oklahoma Public Employees Retirement System or the Oklahoma Law

5 Enforcement Retirement System shall remain within that system.

6   SECTION 2.      AMENDATORY  74 O.S. 2021, Section 915, as

7 amended by Section 2, Chapter 280, O.S.L. 2024 (74 O.S. Supp. 2024,

8 Section 915), is amended to read as follows:

9   Section 915. A. (1) Except as otherwise provided in this

10 subsection and as provided for elected officials in Section 913.4 of

11 this title, any member who shall retire on or after the member's

12 normal retirement date shall be entitled to receive an annual

13 retirement benefit equal to two percent (2%) of the member's final

14 average compensation as determined pursuant to paragraph (18) of

15 Section 902 of this title, multiplied by the number of years of

16 credited service that has been credited to the member in accordance

17 with the provisions of Section 913 of this title other than years

18 credited pursuant to paragraph (2) of this subsection.

19  (2) Effective January 1, 2004, except as otherwise provided for

20 elected officials in Section 913.4 of this title and except for

21 those members making contributions pursuant to paragraphs (c), (d),

22 (e) and (f) of subsection (1) of Section 919.1 of this title, any

23 member who shall retire shall be entitled to receive an annual

24 retirement benefit equal to two and one-half percent (2 1/2%) of the

    Req. No. 11255                                                 Page 26
                                                             RBH No. 11255

1 member's final average compensation as determined pursuant to

2 paragraph (18) of Section 902 of this title, multiplied by the

3 number of full years of participating service after January 1, 2004,

4 that have been credited to the member in accordance with the

5 provisions of Section 913 of this title and only for those full

6 years of participating service for which contributions have been

7 made pursuant to paragraph (g) of subsection (1) of Section 919.1 of

8 this title. The two and one-half percent (2 1/2%) multiplier shall

9 not apply to purchased service, purchased or granted military

10 service or transferred service. In order to receive the two and

11 one-half percent (2 1/2%) multiplier in computing retirement

12 benefits, an active member shall make an irrevocable written

13 election to pay the contributions pursuant to paragraph (g) of

14 subsection (1) of Section 919.1 of this title. The two and one-half

15 percent (2 1/2%) multiplier pursuant to this paragraph shall not

16 apply to additional years of service credit attributed to sick leave

17 pursuant to paragraph 7 of subsection B of Section 913 of this title

18 and fractional years pursuant to subsection C of Section 913 of this

19 title and shall be attributable only to the participating service

20 credited after the election of the member.

21  (3) The minimum final average compensation for any person who

22 becomes a member of the System on or after July 1, 1995:

23  a. and who had twenty (20) or more years of credited

24  service within the System as of the member's

    Req. No. 11255                                                 Page 27
                                  RBH No. 11255

1   retirement date shall be no less than Thirteen

2   Thousand Eight Hundred Dollars ($13,800.00) per annum,

3   b. and who had at least fifteen (15) but not more than

4   nineteen (19) years of credited service within the

5   System as of the member's retirement date shall be no

6   less than Six Thousand Nine Hundred Dollars

7   ($6,900.00) per annum,

8   c. and who had less than fifteen (15) years of credited

9   service within the System as of the member's

10  retirement date shall not be eligible for any minimum

11  amount of final average compensation and the member's

12  final average compensation shall be the final average

13  compensation as defined by paragraph (18) of Section

14  902 of this title.

15  (4) Provided, further, any member who has elected a vested

16 benefit pursuant to Section 917 of this title shall be entitled to

17 receive benefits as outlined in this section except the percent

18 factor and the member's maximum compensation level in effect the

19 date the member's employment was terminated with a participating

20 employer shall be applicable.

21  (5) Any member who is a correctional officer or a probation and

22 parole officer employed by the Department of Corrections at the time

23 of retirement and who retires on or before June 30, 2000, shall be

24 entitled to receive an annual retirement benefit equal to two and

    Req. No. 11255                                  Page 28
                                                                                                             RBH No. 11255

 1 one-half percent (2 1/2%) of the final average compensation of the
 2 member not to exceed Twenty-five Thousand Dollars ($25,000.00) and
 3 two percent (2%) of the final average salary in excess of Twenty-
 4 five Thousand Dollars ($25,000.00) but not exceeding the maximum
 5 compensation level as provided in paragraph (9) of Section 902 of
 6 this title, multiplied by the number of years of service as a
 7 correctional officer or a probation and parole officer; provided,
 8 any years accrued prior to July 1, 1990, as a correctional officer
 9 or a probation and parole officer by a member who is employed as a
10 correctional officer or a probation and parole officer on July 1,
11 1990, shall be calculated for retirement purposes at two and one-
12 quarter percent (2 1/4%) of the final average compensation of the
13 member not to exceed Twenty-five Thousand Dollars ($25,000.00) and
14 two percent (2%) of the final average salary in excess of Twenty-
15 five Thousand Dollars ($25,000.00) but not exceeding the maximum
16 compensation level as provided in paragraph (9) of Section 902 of
17 this title, multiplied by the number of years of such service and
18 any years in excess of twenty (20) years as such an officer or years
19 credited to the member in accordance with the provisions of Section
20 913 of this title shall be calculated for retirement purposes at two
21 percent (2%) of the final average compensation of the member
22 multiplied by the number of years of such service. Any person who
23 contributes to the System as a correctional officer or a probation
24 and parole officer as provided in paragraph (b) or (c) of subsection

Req. No. 11255  Page 29
                              RBH No. 11255

1 (1) of Section 919.1 of this title, on or before June 30, 2000, but

2 who does not make such contributions after June 30, 2000, and who

3 does not qualify for normal retirement under subparagraph (c) of

4 paragraph (24) of Section 902 of this title shall have retirement

5 benefits for each year of full-time-equivalent participating service

6 as a correctional or a probation and parole officer after July 1,

7 1990, computed on two and one-half percent (2 1/2%) of the final

8 average compensation based upon those years as a correctional

9 officer or a probation and parole officer. Provided, further, any

10 fugitive apprehension agent shall be entitled to receive benefits as

11 outlined in this act for service as a fugitive apprehension agent

12 prior to July 1, 2002, only upon payment to the System of the

13 employee contributions which would have been paid if such fugitive

14 apprehension agent had been covered by this section prior to the

15 effective date of this act, plus interest of not to exceed ten

16 percent (10%) as determined by the Board. The Department of

17 Corrections may make the employee contribution and interest payment

18 on behalf of such member.

19  (6) Any member who is a correctional officer, a probation and

20 parole officer or a fugitive apprehension agent employed by the

21 Department of Corrections at the time of retirement and who retires

22 on or after July 1, 2002, shall be entitled to receive an annual

23 retirement benefit equal to two and one-half percent (2 1/2%) of the

24 final average compensation of the member, but not exceeding the

    Req. No. 11255                                                 Page 30
                                                                                                             RBH No. 11255

 1 maximum compensation level as provided in paragraph (18) of Section
 2 902 of this title, multiplied by the number of years of service as a
 3 correctional officer, a probation and parole officer or a fugitive
 4 apprehension agent, and any years in excess of twenty (20) years as
 5 such an officer or agent, or years credited to the member in
 6 accordance with the provisions of Section 913 of this title, shall
 7 be calculated for retirement purposes at two percent (2%) of the
 8 final average compensation of the member multiplied by the number of
 9 years of such service. For purposes of this paragraph, "final
10 average compensation" shall be determined by computing the average
11 annual salary, in the manner prescribed by paragraph (18) of Section
12 902 of this title, for the highest three (3) years of the last ten
13 (10) years of participating service immediately preceding retirement
14 or termination of employment for all years of service performed by
15 such member, both for years of service performed as a correctional
16 officer, probation and parole officer or fugitive apprehension
17 agent, not in excess of twenty (20) years, and for years of service
18 performed in excess of twenty (20) years, whether as a correctional
19 officer, probation and parole officer, fugitive apprehension agent
20 or other position unless the computation of benefits would result in
21 a lower retirement benefit amount than if final average compensation
22 were to be computed as otherwise provided by this paragraph. "Final
23 average compensation" shall be determined by computing the average
24 annual salary for the highest five (5) of the last ten (10) years of

Req. No. 11255  Page 31
                                                          RBH No. 11255

1 participating service immediately preceding retirement or

2 termination of employment, with respect to members whose first

3 participating service occurs on or after July 1, 2013.

4  (7) Any member who is a correctional officer, a probation and

5 parole officer or a fugitive apprehension agent who has at least

6 five (5) years of service as a correctional officer, a probation and

7 parole officer or a fugitive apprehension agent who is in such

8 position on June 30, 2004, or who is hired after June 30, 2004, in

9 such position, and who receives a promotion or change in job

10 classification after June 30, 2004, to another position in the

11 Department of Corrections, and who is employed by the Department of

12 Corrections at the time of retirement and who retires on or after

13 July 1, 2004, shall be entitled to receive an annual retirement

14 benefit equal to two and one-half percent (2 1/2%) of the final

15 average compensation of the member, but not exceeding the maximum

16 compensation level as provided in paragraph (18) of Section 902 of

17 this title, multiplied by the number of years of service with the

18 Department of Corrections and any years in excess of twenty (20)

19 years with the Department or years credited to the member in

20 accordance with the provisions of Section 913 of this title, shall

21 be calculated for retirement purposes at two percent (2%) of the

22 final average compensation of the member multiplied by the number of

23 years of such service. For purposes of this paragraph, "final

24 average compensation" shall be determined by computing the average

   Req. No. 11255                                                  Page 32
                        RBH No. 11255

1 annual salary, in the manner prescribed by paragraph (18) of Section

2 902 of this title, for the highest three (3) years of the last ten

3 (10) years of participating service immediately preceding retirement

4 or termination of employment for all years of service performed by

5 such member with the Department. "Final average compensation" shall

6 be determined by computing the average annual salary for the highest

7 five (5) of the last ten (10) years of participating service

8 immediately preceding retirement or termination of employment, with

9 respect to members whose first participating service occurs on or

10 after July 1, 2013.

11  (8) Any person who contributed to the System as a correctional

12 officer, a probation and parole officer or a fugitive apprehension

13 agent as provided in paragraph (b) or (c) of subsection (1) of

14 Section 919.1 of this title, and who retires under normal retirement

15 or early retirement on or after January 1, 2004, under paragraph

16 (24) of Section 902 of this title, and any public safety officer

17 described by paragraph (37) of Section 902 of this title hired on or

18 after the effective date of this act by the Grand River Dam

19 Authority and who retires on or after the effective date of this

20 act, shall have retirement benefits for each year of full-time-

21 equivalent participating service as a correctional officer, a

22 probation and parole officer or a fugitive apprehension agent, or

23 Grand River Dam public safety officer computed on two and one-half

24 percent (2 1/2%) of the final average compensation based upon those

    Req. No. 11255                                                 Page 33
                                                                                                             RBH No. 11255

 1 years as a correctional officer, a probation and parole officer, a
 2 fugitive apprehension agent or a Grand River Dam public safety
 3 officer. For purposes of this paragraph, "final average
 4 compensation" shall be determined by computing the average annual
 5 salary, in the manner prescribed by paragraph (18) of Section 902 of
 6 this title, for the highest three (3) years of the last ten (10)
 7 years of participating service immediately preceding retirement or
 8 termination of employment for all years of service performed by such
 9 member, both for years of service performed as a correctional
10 officer, probation and parole officer or fugitive apprehension
11 agent, or years of service performed as a Grand River Dam public
12 safety officer, not in excess of twenty (20) years, and for years of
13 service performed in excess of twenty (20) years, whether as a
14 correctional officer, probation and parole officer, fugitive
15 apprehension agent, Grand River Dam public safety officer, or other
16 position unless the computation of benefits would result in a lower
17 retirement benefit amount than if final average compensation were to
18 be computed as otherwise provided by this paragraph. "Final average
19 compensation" shall be determined by computing the average annual
20 salary for the highest five (5) of the last ten (10) years of
21 participating service immediately preceding retirement or
22 termination of employment, with respect to members whose first
23 participating service occurs on or after July 1, 2013, or with
24 respect to Grand River Dam public safety officers whose first

Req. No. 11255  Page 34
                            RBH No. 11255

1 participating service occurs on or after the effective date of this

2 act.

3   (9) Any member who is:

4       a. initially on or after July 1, 2002, employed as a

5       firefighter for the Oklahoma Military Department and

6       who retires on or after the member's normal retirement

7       date shall be entitled to receive an annual retirement

8       benefit equal to two and one-half percent (2 1/2%) of

9       the final average compensation of the member

10      multiplied by the number of years of service in such

11      service,

12      b. (1) a firefighter who performs firefighting services

13                  for the Oklahoma Military Department prior to

14                  July 1, 2002, and who makes an election in

15                  writing on a form prescribed for this purpose by

16                  the System not later than December 31, 2002,

17                  shall be entitled to receive a retirement benefit

18                  based upon two and one-half percent (2 1/2%) of

19                  the final average compensation of the member

20                  multiplied by the number of years of service as a

21                  firefighter with the Oklahoma Military Department

22                  on or after July 1, 2002. The election

23                  authorized by this subdivision shall be

24

    Req. No. 11255                                              Page 35
                                                  RBH No. 11255

1                   irrevocable once the election is filed with the

2                   System,

3   (2) a firefighter who performs firefighting services

4                   for the Oklahoma Military Department prior to

5                   July 1, 2002, and who makes the election in

6                   division (1) of this subparagraph may also make

7                   an election in writing on a form prescribed for

8                   this purpose by the System not later than

9                   December 31, 2002, to receive a retirement

10                  benefit based upon two and one-half percent (2

11                  1/2%) of the final average compensation of the

12                  member multiplied by the number of years of

13                  service as a firefighter with the Oklahoma

14                  Military Department prior to July 1, 2002. The

15                  election authorized by this subdivision shall be

16                  irrevocable once the election is filed with the

17                  System. Retirement benefits shall be calculated

18                  based upon the two and one-half percent (2 1/2%)

19                  multiplier upon payment being made pursuant to

20                  Section 913.5 of this title,

21  c. initially on or after July 1, 2025, employed as a

22                  CLEET-certified law enforcement agent for the

23                  Oklahoma Department of Human Services Office of

24                  Inspector General and who retires on or after the

    Req. No. 11255                                               Page 36
                                 RBH No. 11255

1                   member's normal retirement date shall be entitled

2                   to receive an annual retirement benefit equal to

3                   two and one-half percent (2 1/2%) of the final

4                   average compensation of the member multiplied by

5                   the number of years of service in such service,

6   d. (1) a CLEET-certified law enforcement agent who

7                   performs law enforcement services for the

8                   Department of Human Services Office of Inspector

9                   General prior to July 1, 2025, and who makes an

10                  election in writing on a form prescribed for this

11                  purpose by the System not later than December 31,

12                  2025, shall be entitled to receive a retirement

13                  benefit based upon two and one-half percent (2

14                  1/2%) of the final average compensation of the

15                  member multiplied by the number of years of

16                  service as a CLEET-certified law enforcement

17                  agent for the Department of Human Services Office

18                  of Inspector General on or after July 1, 2025.

19                  The election authorized by the subparagraph shall

20                  be irrevocable once the election is filed with

21                  the System,

22  (2) a CLEET-certified law enforcement agent who

23                  performs law enforcement services for the

24                  Department of Human Services Office of Inspector

    Req. No. 11255                                               Page 37
                                                           RBH No. 11255

1                   General prior to July 1, 2025, and who makes the

2                   election in subparagraph (1) of this paragraph

3                   may also make an election in writing on a form

4                   prescribed for this purpose by the System not

5                   later than December 31, 2025, to receive a

6                   retirement benefit based upon two and one-half

7                   percent (2 1/2%) of the final average

8                   compensation of the member multiplied by the

9                   number of years of service as a CLEET-certified

10                  law enforcement agent who performs law

11                  enforcement services for the Department of Human

12                  Services Office of Inspector General prior to

13                  July 1, 2025. The election authorized by this

14                  subdivision shall be irrevocable once the

15                  election is filed with the System. Retirement

16                  benefits shall be calculated based upon the two

17                  and one-half percent (2 1/2%) multiplier upon

18                  payment being made pursuant to Section 913.5 of

19                  this title.

20  (10) Any person who contributes to the System as a deputy

21 sheriff or county jailer as provided in paragraph (f) of subsection

22 (1) of Section 919.1 of this title, and who was:

23  a. employed by a participating employer in the System

24                  for the first time as a deputy sheriff or jailer on

    Req. No. 11255                                              Page 38
                                 RBH No. 11255

1                   or after November 1, 2020, and who retires under

2                   normal retirement or early retirement under division

3                   (v) of subparagraph (d) of paragraph (24) of Section

4                   902 of this title, shall have retirement benefits for

5                   each year of full-time-equivalent participating

6                   service as a deputy sheriff or county jailer computed

7                   on two and one-half percent (2 1/2%) of the final

8                   average compensation based upon those years as a

9                   deputy sheriff or county jailer, and any years in

10                  excess of twenty (20) years as a deputy sheriff or

11                  county jailer, or years credited to the member in

12                  accordance with the provisions of Section 913 of this

13                  title, shall be calculated for retirement purposes at

14                  two percent (2%) of the final average compensation of

15                  the member multiplied by the number of years of such

16                  service, or

17  b. (1) employed by a participating employer in the

18                  System for the first time as a deputy sheriff or

19                  county jailer before November 1, 2020, and who

20                  retires under the normal retirement or early

21                  retirement under division (vi) of subparagraph

22                  (d) of paragraph (24) of Section 902 of this

23                  title, shall be entitled to receive a retirement

24                  benefit based on two and one-half percent (2

    Req. No. 11255                                                   Page 39
                                                           RBH No. 11255

1                   1/2%) of the final average compensation of the

2                   member multiplied based on the number of years of

3                   service as a deputy sheriff or county jailer with

4                   any county participating in the System on or

5                   after November 1, 2024,

6   (2) employed by a participating employer in the

7                   System for the first time as a deputy sheriff or

8                   county jailer before November 1, 2020, and who

9                   retires under the normal retirement or early

10                  retirement under division (vi) of subparagraph

11                  (d) of paragraph (24) of Section 902 of this

12                  title, and who makes an election in writing not

13                  later than July 1, 2026, on a form prescribed for

14                  this purpose by the System, shall be entitled to

15                  a retirement benefit based upon two and one-half

16                  percent (2 1/2%) of the final average

17                  compensation of the member multiplied by the

18                  number of years of service prior to November 1,

19                  2024, as a deputy sheriff or county jailer

20                  employed by any county that is a participating

21                  employer in the System. The election authorized

22                  by this subparagraph shall be irrevocable once

23                  the election is filed with the System.

24                  Retirement benefits shall be calculated based

    Req. No. 11255                                              Page 40
                                                          RBH No. 11255

1                   upon the two and one-half percent (2 1/2%)

2                   multiplier upon payment being made pursuant to

3                   Section 913.5 of this title. Any person

4                   otherwise qualifying under this subparagraph, but

5                   who is not employed as a deputy sheriff or county

6                   jailer on November 1, 2024, and who is reemployed

7                   as a deputy sheriff or county jailer with a

8                   county that is a participating employer in the

9                   System after November 1, 2024, shall have six (6)

10                  months from the initial date of reemployment to

11                  make the election authorized in this

12                  subparagraph. The actuarial purchase of any

13                  service credit accrued prior to November 1, 2024,

14                  as a deputy sheriff or county jailer employed by

15                  a county that is a participating employer in the

16                  System as set forth in this subparagraph shall

17                  cancel such corresponding service and shall not

18                  be used to compute the retirement benefit under

19                  any other provision except as provided in this

20                  subparagraph. In no event shall the service

21                  purchased under this subparagraph cause the

22                  member to receive a retirement benefit for the

23                  same service in any other plan. Any purchased

24                  service under this subparagraph shall comply with

    Req. No. 11255                                               Page 41
                    RBH No. 11255

1                   the applicable provisions of the Internal Revenue

2                   Code and rules adopted by the Board of Trustees.

3   c. For purposes of paragraph (10), "final average

4   compensation" shall be determined by computing the

5   average annual salary, in the manner prescribed by

6   paragraph (18) of Section 902 of this title, both for

7   years of service performed as a deputy sheriff or

8   county jailer not in excess of twenty (20) years, and

9   for years of service performed in excess of twenty

10  (20) years, whether as a deputy sheriff or county

11  jailer.

12  (11) Upon death of a retiree, there shall be paid to his or her

13 beneficiary an amount equal to the excess, if any, of his or her

14 accumulated contributions over the sum of all retirement benefit

15 payments made.

16  (12) Such annual retirement benefits shall be paid in equal

17 monthly installments, except that the Board may provide for the

18 payment of retirement benefits which total less than Two Hundred

19 Forty Dollars ($240.00) a year on other than a monthly basis.

20  (13) Pursuant to the rules established by the Board, a retiree

21 receiving monthly benefits from the System may authorize warrant

22 deductions for any products currently offered to active state

23 employees through the Employees Benefits Council, provided that

24 product is offered to state retirees as a group and has a minimum

    Req. No. 11255                                                Page 42
                                                            RBH No. 11255

1 participation of five hundred state retirees. The System has no

2 responsibility for the marketing, enrolling or administration of

3 such products, but shall retain a processing fee of two percent (2%)

4 of the gross deductions for the products. Retirement benefit

5 deductions shall be made for membership dues for any statewide

6 association for which payroll deductions are authorized pursuant to

7 subsection B of Section 34.70 of Title 62 of the Oklahoma Statutes

8 for retired members of any state-supported retirement system, upon

9 proper authorization given by the member to the board from which the

10 member or beneficiary is currently receiving retirement benefits.

11  B. A member shall be considered disabled if such member

12 qualifies for the payment of Social Security disability benefits, or

13 the payment of benefits pursuant to the Railroad Retirement Act of

14 1974, Section 231 et seq. of Title 45 of the United States Code, and

15 shall be eligible for benefits hereunder upon proof of such

16 disability, provided such member is an active regularly scheduled

17 employee with a participating employer at the time of injury or

18 inception of illness or disease resulting in subsequent

19 certification of eligibility for Social Security disability benefits

20 by reason of such injury, illness or disease, providing such

21 disability is certified by the Social Security Administration within

22 one (1) year after the last date physically on the job and after

23 completion of at least eight (8) years of participating service or

24 combined prior and participating service or resulting in subsequent

    Req. No. 11255                                                Page 43
                                                                                                             RBH No. 11255

 1 certification of eligibility of disability by the Railroad
 2 Retirement Board providing such certification is made by the
 3 Railroad Retirement Board within one (1) year after the last date
 4 physically on the job and after completion of at least eight (8)
 5 years of participating service or combined prior and participating
 6 service. The member shall submit to the Retirement System the
 7 Social Security Award Notice or the Railroad Retirement Award Notice
 8 certifying the date of entitlement for disability benefits, as
 9 issued by the Social Security Administration, Department of Health
10 and Human Services or the Railroad Retirement Board. Disability
11 benefits shall become effective on the date of entitlement as
12 established by the Social Security Administration or the Railroad
13 Retirement Board, but not before the first day of the month
14 following removal from the payroll, whichever is later, and final
15 approval by the Retirement System. Benefits shall be based upon
16 length of service and compensation as of the date of disability,
17 without actuarial reduction because of commencement prior to the
18 normal retirement date. The only optional form of benefit payment
19 available for disability benefits is Option A as provided for in
20 Section 918 of this title. Option A must be elected in accordance
21 with the provisions of Section 918 of this title. Benefit payments
22 shall cease upon the member's recovery from disability prior to the
23 normal retirement date. Future benefits, if any, shall be paid
24 based upon length of service and compensation as of the date of

Req. No. 11255  Page 44
                                              RBH No. 11255

1 disability. In the event that disability ceases and the member

2 returns to employment within the System credited service to the date

3 of disability shall be restored, and future benefits shall be

4 determined accordingly.

5   C. A member who incurred a disability pursuant to subsection B

6 of this section on or after July 1, 1999, and who has retired from

7 the System with an early retirement benefit pending certification

8 from the Social Security Administration or the Railroad Retirement

9 Board shall receive a retirement benefit not less than the

10 disability retirement benefit provided by subsection B of this

11 section once the System receives a Social Security Award Notice or a

12 Railroad Retirement Award Notice pursuant to subsection B of this

13 section and a completed Application for Disability Benefits. In

14 addition, such member shall receive the difference, if any, between

15 the early retirement benefit and the disability benefit from the

16 date the Social Security Administration or the Railroad Retirement

17 Board establishes disability entitlement.

18  D. Any actively participating member of the System on or after

19 July 1, 1998, except for those employees provided in subparagraph

20 (e) of paragraph (14) of Section 902 of this title, whose employment

21 is less than full-time, shall have his or her final average

22 compensation calculated on an annualized basis using his or her

23 hourly wage subject to the maximum compensation limits; provided,

24 however, any such member whose first participating service occurred

    Req. No. 11255                                                 Page 45
                                                           RBH No. 11255

1 before July 1, 2013, and who has at least three (3) years of full-

2 time employment during the last ten (10) years immediately preceding

3 termination or retirement shall not be eligible for the

4 annualization provisions contained herein; and provided further, any

5 such member whose first participating service occurred on or after

6 July 1, 2013, and who has at least five (5) years of full-time

7 employment during the last ten (10) years immediately preceding

8 termination or retirement shall not be eligible for the

9 annualization provisions contained herein. The Board of Trustees

10 shall promulgate such administrative rules as are necessary to

11 implement the provisions of this subsection.

12  SECTION 3.      AMENDATORY  74 O.S. 2021, Section 916.3, as

13 amended by Section 3, Chapter 280, O.S.L. 2024 (74 O.S. Supp. 2024,

14 Section 916.3), is amended to read as follows:

15  Section 916.3. A. Notwithstanding the provisions of Sections

16 901 through 932 of this title, a monthly pension, as provided in

17 subsection B of this section, shall be paid on behalf of any member

18 who is a:

19  1. Correctional officer or probation and parole officer of the

20 Department of Corrections and who is killed or mortally wounded on

21 or after January 1, 2000, during the performance of the member's

22 duties for the Department or any employee of the Department of

23 Corrections who is killed or mortally wounded after June 30, 2004,

24 during the performance of the member's duties for the Department;

    Req. No. 11255                                                 Page 46
                                                           RBH No. 11255

1      2. Deputy sheriff or county jailer first hired on or after

2 November 1, 2020, by any county that is a participating member in

3 the System, and who is killed or mortally wounded during the

4 performance of the member's duties as a deputy sheriff or jailer;

5 and

6      3. Deputy sheriff or county jailer first hired before November

7 1, 2020, by any county that is a participating employer in the

8 System, and who is killed or mortally wounded during the performance

9 of the member's duties for the participating county on or after

10 November 1, 2024; and

11     4. CLEET-certified law enforcement agent employed by the

12 Department of Human Services Office of Inspector General and who is

13 killed or mortally wounded on or after July 1, 2025, during the

14 performance of the member's duties for the Department.

15     B. The monthly benefit shall be equal to:

16     1. Two and one-half percent (2 1/2%);

17     2. Multiplied by twenty (20) years of service, regardless of

18 the actual number of years of credited service performed by the

19 member prior to death, if the member had performed less than twenty

20 (20) years of credited service, or the actual number of years of

21 credited service of the member if greater than twenty (20) years;

22     3. Multiplied by the member's final average compensation; and

23     4. Divided by 12.

24

    Req. No. 11255                                                Page 47
                                 RBH No. 11255

1   C. The pension provided for in subsection A of this section

2 shall be paid:

3   1. Except as provided in subsection D of this section, to the

4 surviving spouse for life; or

5   2. If there is no surviving spouse or upon the death of the

6 surviving spouse:

7   a. to the surviving child or children of said member or

8   legal guardian of such child or children for such time

9   as such child or children are under the age of

10  eighteen (18) years, or

11  b. to the surviving child or children between the age of

12  eighteen (18) and twenty-two (22) years if the child

13  is enrolled full time in and is regularly attending a

14  public or private school or any institution of higher

15  education.

16  D. No surviving spouse shall receive benefits from this

17 section, Section 49-113 of Title 11 of the Oklahoma Statutes,

18 Section 50-117 of Title 11 of the Oklahoma Statutes, or Section 2-

19 306 of Title 47 of the Oklahoma Statutes as the surviving spouse of

20 more than one member of the Oklahoma Firefighters Pension and

21 Retirement System, the Oklahoma Police Pension and Retirement

22 System, the Oklahoma Law Enforcement Retirement System, or the

23 Oklahoma Public Employees Retirement System. The surviving spouse

24

    Req. No. 11255                                                 Page 48
                                RBH No. 11255

1 of more than one member shall elect which member's benefits he or

2 she will receive.

3   E. In addition to the pension above provided for, if said

4 member leaves one or more children under the age of eighteen (18)

5 years or under the age of twenty-two (22) years if the child is

6 enrolled full-time in and is regularly attending a public or private

7 school or any institution of higher education, Four Hundred Dollars

8 ($400.00) a month shall be paid to the surviving spouse or to the

9 person having the care and custody of such children if there is no

10 surviving spouse or if the surviving spouse dies and until each

11 child reaches the age of eighteen (18) years or reaches the age of

12 twenty-two (22) years if the child is enrolled full-time in and is

13 regularly attending a public or private school or any institution of

14 higher education.

15  F. The pension benefit provided in this section shall be made

16 prospectively only from the effective date of this act. The

17 benefits shall be payable beginning the later of the first day of

18 the month following the date that such employee was killed or dies

19 from a mortal wound, as provided in this section, or the effective

20 date of this act.

21  G. The Board of the Oklahoma Public Employees Retirement System

22 shall promulgate such rules as are necessary to implement the

23 provisions of this section.

24

    Req. No. 11255                                                Page 49
                                                   RBH No. 11255

1      SECTION 4.   AMENDATORY         74 O.S. 2021, Section 919.1, as

2 amended by Section 4, Chapter 280, O.S.L. 2024 (74 O.S. Supp. 2024,

3 Section 919.1), is amended to read as follows:

4      Section 919.1. (1) Employee contributions to the System shall

5 be:

6      (a) for employees except as otherwise provided in

7                  paragraphs (b), (c), (d), (e), (f) and, (g), and (h)

8                  of this subsection: beginning July 1, 2006, and

9                  thereafter, three and one-half percent (3.5%) of

10                 allowable annual compensation;

11     (b) for correctional officers and probation and parole

12                 officers employed by the Department of Corrections:

13                 beginning July 1, 1998, and thereafter, and for

14                 correctional officers or probation and parole officers

15                 who are in such position on June 30, 2004, or who are

16                 hired after June 30, 2004, and who receive a promotion

17                 or change in job classification after June 30, 2004,

18                 to another position in the Department of Corrections,

19                 so long as such officers have at least five (5) years

20                 of service as a correctional officer or probation and

21                 parole officer, eight percent (8%) of allowable

22                 compensation as provided in paragraph (9) of Section

23                 902 of this title;

24

    Req. No. 11255                                                   Page 50
                                RBH No. 11255

1   (c) for fugitive apprehension agents who are employed with

2   the Department of Corrections on or after July 1,

3   2002, and for fugitive apprehension agents who are in

4   such position on June 30, 2004, or who are hired after

5   June 30, 2004, and who receive a promotion or change

6   in job classification after June 30, 2004, to another

7   position in the Department of Corrections, so long as

8   such agents have at least five (5) years of service as

9   a fugitive apprehension agent, eight percent (8%) of

10  allowable compensation as provided in paragraph (9) of

11  Section 902 of this title;

12  (d) for firefighters of the Oklahoma Military Department

13  first employed beginning July 1, 2002, and thereafter,

14  and such firefighters who performed service prior to

15  July 1, 2002, for the Oklahoma Military Department and

16  who make the election authorized by division (1) of

17  subparagraph b of paragraph (9) of subsection A of

18  Section 915 of this title who perform service on or

19  after July 1, 2002, in such capacity, eight percent

20  (8%) of allowable compensation as provided in

21  subsection (9) of Section 902 of this title;

22  (e) for all public safety officers of the Grand River Dam

23  Authority as defined by paragraph (37) of Section 902

24  of this title, eight percent (8%) of allowable

    Req. No. 11255                                  Page 51
                                 RBH No. 11255

1        compensation as provided in paragraph (9) of Section

2        902 of this title;

3   (f) for deputy sheriffs and county jailers employed by any

4        county that is a participating employer in the System

5        for the first time as a deputy sheriff or jailer on or

6        after November 1, 2020, or beginning November 1, 2024,

7        those deputy sheriffs and county jailers employed by

8        any county that is a participating employer in the

9        System for the first time as a deputy sheriff or

10       county jailer before November 1, 2020, eight percent

11       (8%) of allowable compensation as provided in

12       paragraph (9) of Section 902 of this title; and

13  (g) for all CLEET-certified law enforcement agents of the

14       Department of Human Services Office of Inspector

15       General as defined by paragraph (38) of Section 902 of

16       this title, eight percent (8%) of allowable

17       compensation as provided in paragraph (9) of Section

18       902 of this title; and

19  (g)

20  (h) for all employees except those who make contributions

21       pursuant to paragraphs (b), (c), (d), (e) and, (f),

22       and (g) of this subsection who make an irrevocable

23       written election pursuant to paragraph (2) of

24       subsection A of Section 915 of this title: six and

    Req. No. 11255                                         Page 52
                                               RBH No. 11255

1   forty-one one-hundredths percent (6.41%) of allowable

2   annual compensation.

3   The contributions required by paragraphs (b), (c), (e), and (f)

4 of this subsection shall be made by a member for not more than

5 twenty (20) years and thereafter shall be as provided in paragraph

6 (a) of this subsection.

7   (2) Contributions shall be deducted by each state agency by the

8 participating employer for such benefits as the Board is authorized

9 to administer as provided for by law. Employee and employer

10 contributions shall be remitted monthly, or as the Board may

11 otherwise provide, to the Executive Director for deposit in the

12 Oklahoma Public Employees Retirement Fund.

13  (3) Each participating employer shall pick up under the

14 provisions of Section 414(h)(2) of the Internal Revenue Code of 1986

15 and pay the contribution which the member is required by law to make

16 to the System for all compensation earned after December 31, 1988.

17 Although the contributions so picked up are designated as member

18 contributions, such contributions shall be treated as contributions

19 being paid by the participating employer in lieu of contributions by

20 the member in determining tax treatment under the Internal Revenue

21 Code of 1986 and such picked up contributions shall not be

22 includable in the gross income of the member until such amounts are

23 distributed or made available to the member or the beneficiary of

24 the member. The member, by the terms of this System, shall not have

    Req. No. 11255                                                Page 53
                                         RBH No. 11255

1 any option to choose to receive the contributions so picked up

2 directly and the picked up contributions must be paid by the

3 participating employer to the System.

4   Member contributions which are picked up shall be treated in the

5 same manner and to the same extent as member contributions made

6 prior to the date on which member contributions were picked up by

7 the participating employer. Member contributions so picked up shall

8 be included in gross salary for purposes of determining benefits and

9 contributions under the System.

10  The participating employer shall pay the member contributions

11 from the same source of funds used in paying salary to the member,

12 by effecting an equal cash reduction in gross salary of the member.

13  (4) By September 1, 1989, the System shall refund the

14 accumulated employee contributions of any member who elects to

15 retain the member's membership in the Teachers' Retirement System of

16 Oklahoma, in accordance with Section 17-104 of Title 70 of the

17 Oklahoma Statutes, to such member. Upon the refund of the

18 accumulated employee contributions referred to in this subsection,

19 all benefits and rights accrued to such member are terminated.

20  SECTION 5.      AMENDATORY     74 O.S. 2021, Section 935.2, is

21 amended to read as follows:

22  Section 935.2. A. The Oklahoma Public Employees Retirement

23 System (System) shall establish a defined contribution system for

24 those persons who first become employed in a full-time equivalent

    Req. No. 11255                                                 Page 54
                                                      RBH No. 11255

1 position or a position which is less than full-time but more than

2 half-time position and which qualifies for employee benefits,

3 including but not limited to, health insurance and leave time by any

4 participating employer of the System, as defined by paragraph (25)

5 of Section 902 of this title, on or after November 1, 2015. Any

6 person first licensed by the Department of Rehabilitation Services

7 as a vending stand operator or managing operator on or after

8 November 1, 2015, as defined by Section 929 of this title, shall be

9 eligible for participation in the defined contribution system.

10  B. The provisions of subsection A of this section and the

11 provisions of this act shall not be applicable to employees who are

12 initially employed in the positions described in division (i), (ii),

13 (iii), or (iv), or (vii) of subparagraph (d) of paragraph (24) of

14 Section 902 of this title, district attorneys, assistant district

15 attorneys or other employees of the district attorney's office, and

16 any employees of a county, county elected officials, county

17 hospital, city or town, conservation district, circuit engineering

18 district, and any public or private trust in which a county, city or

19 town participates and is the primary beneficiary.

20  C. An employee described by subsection A of this section shall

21 become a participant in the defined contribution system and the

22 employee shall not accrue any service credit in the Oklahoma Public

23 Employees Retirement System as established pursuant to Section 901

24 et seq. of this title.

    Req. No. 11255                                                Page 55
                                                       RBH No. 11255

1   D. Employees who participate in the defined contribution system

2 shall be deemed to begin service in the defined contribution system

3 on the first day of the month following employment.

4   E. An employee who begins participating in the defined benefit

5 plan on or after November 1, 2015, in one of the positions described

6 in subsection B of this section, shall continue to participate in

7 the defined benefit plan only as long as he or she continues to be

8 employed in a position described in subsection B of this section.

9   F. Any employee employed on or after November 1, 2015, by the

10 Legislative Service Bureau, State Senate or House of Representatives

11 for the full duration of a regular legislative session shall be

12 eligible for membership only in the defined contribution system

13 regardless of classification as a temporary employee. The temporary

14 session employee may participate in the defined contribution system

15 during the regular legislative session at the option of the

16 employee. Once the temporary session employee makes a choice to

17 participate, the choice shall be binding for all future legislative

18 sessions during which the temporary session employee is employed.

19 For purposes of this subparagraph, the determination of whether an

20 employee is employed for the full duration of a regular legislative

21 session shall be made by the employer.

22  SECTION 6. This act shall become effective July 1, 2025.

23  SECTION 7. It being immediately necessary for the preservation

24 of the public peace, health or safety, an emergency is hereby

    Req. No. 11255                                                Page 56
                                   RBH No. 11255

1 declared to exist, by reason whereof this act shall take effect and

2 be in full force from and after its passage and approval.

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4   60-1-11255      CMA  12/27/24

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    Req. No. 11255                                           Page 57
THOMAS E. CUMMINS CONSULTING ACTUARY, INC.
2512 E. 71st Street , Suite D  Tulsa, Oklahoma 74136
(918) 492-9658  (918) 492- 9659

January 13, 2025

Representative Strom
Room 455N

Re: RBH No. 11255
RBH No. 11255 would make CLEET active commissioned agents and CLEET
certified agents of the Department Human Services who were hired on
or after 7/01/2025 participants in the Oklahoma Law Enforcement
Retirement System.
Those agents hired prior to 7/01/2025 have the option of purchasing
service prior to 7/01/2025 or have the 2.5% retirement benefit based
service after 6/30/2025 plus 2% on service prior to 7/01/2025.

RBH No. 11255 is a fiscal bill as defined by OPLAAA because it will
increase the Actuarial Accrued Liability.
I am a member of the American Academy of Actuaries and meet the
Qualification Standards of the American Academy of Actuaries to
render the actuarial opinion herein.

Thomas E. Cummins

Thomas E. Cummins, MAAA
Every fact on this page links to its source, starting with the official bill record.