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Oklahoma Legislature· HB 1334Second Reading referred to Rules

An act relating to public retirement systems, the official text

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RBH No. 10048

1                    STATE OF OKLAHOMA

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

3 HOUSE BILL 1334               By: Humphrey

4

5

6                    AS INTRODUCED

7   An Act relating to public retirement systems;

    amending 74 O.S. 2021, Sections 1316.2, as amended by

8   Section 5, Chapter 245, O.S.L. 2024, and 1316.3 (74

    O.S. Supp. 2024, Section 1316.2), which relate to

9   insurance benefits; modifying the monthly premium

    amount for health insurance; and providing an

10  effective date.

11

12

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

14  SECTION 1.      AMENDATORY  74 O.S. 2021, Section 1316.2, as

15 amended by Section 5, Chapter 245, O.S.L. 2024 (74 O.S. Supp. 2024,

16 Section 1316.2), is amended to read as follows:

17  Section 1316.2. A. Any employee, other than an education

18 employee, who retires pursuant to the provisions of the Oklahoma

19 Public Employees Retirement System or who has a vested benefit

20 pursuant to the provisions of the Oklahoma Public Employees

21 Retirement System may continue in force the health and dental

22 insurance benefits authorized by the provisions of the Oklahoma

23 Employees Insurance and Benefits Act, or other employer insurance

24 benefits if the employer does not participate in the plans offered

    Req. No. 10048                                                  Page 1
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 1 by the Office of Management and Enterprise Services, if such
 2 election to continue in force is made within thirty (30) days from
 3 the date of termination of service. Except as otherwise provided
 4 for in subsection H of this section, health and dental insurance
 5 coverage may not be reinstated at a later time if the election to
 6 continue in force is declined. Vested employees other than
 7 education employees who have terminated service and are not
 8 receiving benefits and effective July 1, 1996, nonvested persons who
 9 have terminated service with more than eight (8) years of
10 participating service with a participating employer, who within
11 thirty (30) days from the date of termination of service elect to
12 continue such coverage, shall pay the full cost of the insurance
13 premium at the rate and pursuant to the terms and conditions
14 established by the Office. Provided also, any employee other than
15 an education employee who commences employment with a participating
16 employer on or after September 1, 1991, who terminates service with
17 such employer on or after July 1, 1996, but who otherwise has
18 insufficient years of service to retire or terminate service with a
19 vested benefit pursuant to the provisions of the Oklahoma Public
20 Employees Retirement System or to elect to continue coverage as a
21 nonvested employee as provided in this section, but who, immediately
22 prior to employment with the participating employer, was covered as
23 a dependent on the health and dental insurance policy of a spouse
24 who was an active employee other than an education employee, may

Req. No. 10048  Page 2
                                                   RBH No. 10048

1 count as part of his or her credited service for the purpose of

2 determining eligibility to elect to continue coverage under this

3 section, the time during which the terminating employee was covered

4 as such a dependent.

5   B. 1. Health insurance benefit plans offered pursuant to this

6 section shall include:

7   a. indemnity plans offered through the Office,

8   b. managed care plans offered as alternatives to the

9   indemnity plans offered through the Office,

10  c. Medicare supplements offered pursuant to the Oklahoma

11  Employees Insurance and Benefits Act,

12  d. Medicare risk-sharing contracts offered as

13  alternatives to the Medicare supplements offered

14  through the Office. All Medicare risk-sharing

15  contracts shall be subject to a risk adjustment

16  factor, based on generally accepted actuarial

17  principles for adverse selection which may occur, and

18  e. for the Oklahoma Public Employees Retirement System,

19  other employer-provided health insurance benefit plans

20  if the employer does not participate in the plans

21  offered pursuant to the Oklahoma Employees Insurance

22  and Benefits Act.

23  2. Health insurance benefit plans offered pursuant to this

24 section shall provide prescription drug benefits, except for plans

    Req. No. 10048                                              Page 3
                       RBH No. 10048

1 designed pursuant to the Medicare Prescription Drug Improvement and

2 Modernization Act, pursuant to 42 USCA Section 1395w-101, et seq.,

3 for which provision of prescription drug benefits is optional, and

4 except for plans offered pursuant to subparagraph e of paragraph 1

5 of this subsection.

6   C. 1. Designated public retirement systems shall contribute a

7 monthly amount towards the health insurance premium of certain

8 individuals receiving benefits from the public retirement system as

9 follows:

10          a. a retired employee, other than an education employee

11          or an employee who participates in the defined

12          contribution system administered by the Oklahoma

13          Public Employees Retirement System on or after

14          November 1, 2015, who is receiving benefits from the

15          Oklahoma Public Employees Retirement System after

16          September 30, 1988, on the effective date of this act

17          shall have One Hundred Five Dollars ($105.00) Two

18          Hundred Ten Dollars ($210.00), or the premium rate of

19          the health insurance benefit plan, whichever is less,

20          paid by the Oklahoma Public Employees Retirement

21          System to the Board or to another insurance carrier or

22          other qualified benefits administrator of the employer

23          if the employer does not participate in the plans

24

    Req. No. 10048                                                Page 4
                                   RBH No. 10048

1   offered by the Office in the manner specified in

2   subsection G of this section,

3   b. a retired employee or surviving spouse other than an

4   education employee who is receiving benefits from the

5   Oklahoma Law Enforcement Retirement System after

6   September 30, 1988, on the effective date of this act

7   is under sixty-five (65) years of age and is not

8   otherwise eligible for Medicare shall have the premium

9   rate for the health insurance benefit plan or One

10  Hundred Five Dollars ($105.00) Two Hundred Ten Dollars

11  ($210.00), whichever is less, paid by the Oklahoma Law

12  Enforcement Retirement System to the Office in the

13  manner specified in subsection G of this section,

14  c. a retired employee other than an education employee

15  who is receiving benefits from the Oklahoma Law

16  Enforcement Retirement System after September 30,

17  1988, on the effective date of this act is sixty-five

18  (65) years of age or older or who is under sixty-five

19  (65) years of age and is eligible for Medicare shall

20  have One Hundred Five Dollars ($105.00) Two Hundred

21  Ten Dollars ($210.00), or the premium rate of the

22  health insurance benefit plan, whichever is less, paid

23  by the Oklahoma Law Enforcement Retirement System to

24

    Req. No. 10048                                     Page 5
                                         RBH No. 10048

1   the Office in the manner specified in subsection G of

2   this section, and

3   d. a retired employee other than an education employee

4   who is receiving benefits from the Uniform Retirement

5   System for Justices and Judges after September 30,

6   1988, on the effective date of this act shall have One

7   Hundred Five Dollars ($105.00) Two Hundred Ten Dollars

8   ($210.00), or the premium rate of the health insurance

9   plan, whichever is less, paid by the Uniform

10  Retirement System for Justices and Judges to the

11  Office in the manner specified in subsection G of this

12  section.

13  2. Premium payments made pursuant to this section shall be made

14 subject to the following conditions:

15  a. the health plan shall be authorized by the provisions

16  of the Oklahoma Employees Insurance and Benefits Act,

17  except that if an employer from which an employee

18  retired or with a vested benefit pursuant to the

19  provisions of the Oklahoma Public Employees Retirement

20  System does not participate in the plans authorized by

21  the provisions of the Oklahoma Employees Insurance and

22  Benefits Act, the health plan will be the health

23  insurance benefits of the employer from which the

24  individual retired or vested,

    Req. No. 10048                                     Page 6
                                   RBH No. 10048

1   b. for plans offered by the Oklahoma Employees Insurance

2   and Benefits Act, the amount to be paid shall be

3   determined pursuant to the provisions of this

4   subsection and shall first be applied in whole or in

5   part to the prescription drug coverage premium. Any

6   remaining amount shall be applied toward the medical

7   coverage premium,

8   c. for all plans, if the amount paid by the public

9   retirement system does not cover the full cost of the

10  elected coverage, the individual shall pay the

11  remaining premium amount, and

12  d. payment shall be made by the retirement systems in the

13  manner specified under subsection G of this section.

14  D. For any member of the Oklahoma Law Enforcement Retirement

15 System killed in the line of duty, whether the member was killed in

16 the line of duty prior to May 18, 2005, or on or after May 18, 2005,

17 or if the member was on a disability leave status at the time of

18 death, the surviving spouse or dependents of such deceased member of

19 the Oklahoma Law Enforcement Retirement System may elect to continue

20 or commence health and dental insurance benefits, provided the

21 dependents pay the full cost of such insurance, and for deaths

22 occurring on or after July 1, 2002, such election is made within

23 thirty (30) days of the date of death. The eligibility for the

24

    Req. No. 10048                                                 Page 7
                                                RBH No. 10048

1 benefits shall terminate for the surviving children when the

2 children cease to qualify as dependents.

3   E. Effective July 1, 2004, a retired member of the Oklahoma Law

4 Enforcement Retirement System who retired from the System by means

5 of a personal and traumatic injury of a catastrophic nature and in

6 the line of duty and any surviving spouse of such retired member and

7 any surviving spouse of a member who was killed in the line of duty

8 shall have one hundred percent (100%) of the retired member's or

9 surviving spouse's health care premium cost, whether the member or

10 surviving spouse elects coverage under the Medicare supplement or

11 Medicare risk-sharing contract, paid by the Oklahoma Law Enforcement

12 Retirement System to the Office in the manner specified in

13 subsection H of this section. For plans offered by the Office, such

14 contributions will first be applied in whole or in part to the

15 prescription drug coverage premium, if any.

16  F. Dependents of a deceased employee who was on active work

17 status or on a disability leave at the time of death or of a

18 participating retardant or of any person who has elected to receive

19 a vested benefit under the Oklahoma Public Employees Retirement

20 System, the Uniform Retirement System for Justices and Judges or the

21 Oklahoma Law Enforcement Retirement System may continue the health

22 and dental insurance benefits in force, provided the dependents pay

23 the full cost of such insurance and they were covered as eligible

24 dependents at the time of such death and such election is made

    Req. No. 10048                                                 Page 8
                                            RBH No. 10048

1 within thirty (30) days of date of death. The eligibility for the

2 benefits shall terminate for the surviving children when the

3 children cease to qualify as dependents.

4   G. The amounts required to be paid by the Oklahoma Public

5 Employees Retirement System, the Uniform Retirement System for

6 Justices and Judges and the Oklahoma Law Enforcement Retirement

7 System pursuant to this section shall be forwarded no later than the

8 tenth day of each month following the month for which payment is due

9 by the Oklahoma Public Employees Retirement System Board of Trustees

10 or the Oklahoma Law Enforcement Retirement Board to the Office for

11 deposit in the Health, Dental and Life Insurance Reserve Fund or to

12 another insurance carrier or other administrator of qualified

13 benefits of the employer as provided for in subsection H of Section

14 1315 of this title.

15  H. Upon retirement from employment of the Board of Regents of

16 the University of Oklahoma, any person who was or is employed at the

17 George Nigh Rehabilitation Institute and who transferred employment

18 pursuant to Section 3427 of Title 70 of the Oklahoma Statutes, any

19 person who was employed at the Medical Technology and Research

20 Authority and who transferred employment pursuant to Section 7068 of

21 this title and any person who is a member of the Oklahoma Law

22 Enforcement Retirement System pursuant to the authority of Section

23 2-314 of Title 47 of the Oklahoma Statutes may participate in the

24 benefits authorized by the provisions of the Oklahoma Employees

    Req. No. 10048                                                  Page 9
                                               RBH No. 10048

1 Insurance and Benefits Act for retired participants including

2 health, dental and life insurance benefits, if such election to

3 participate is made within thirty (30) days from the date of

4 termination of service. Life insurance benefits for any such person

5 who transferred employment shall not exceed the coverage the person

6 had at the time of such transfer. Retirees who transferred

7 employment and who participate pursuant to this paragraph shall pay

8 the premium for elected benefits less any amounts paid by a state

9 retirement system pursuant to this section.

10  SECTION 2.      AMENDATORY  74 O.S. 2021, Section 1316.3, is

11 amended to read as follows:

12  Section 1316.3. A. Any person who retires pursuant to the

13 provisions of the Teachers' Retirement System of Oklahoma with at

14 least ten (10) years of creditable service or who has a vested

15 benefit with at least ten (10) years of creditable service, pursuant

16 to the provisions of the Teachers' Retirement System of Oklahoma may

17 continue in force the health and dental insurance benefits

18 authorized by the provisions of the Oklahoma Employees Insurance and

19 Benefits Act if such election to continue in force or begin is made

20 within thirty (30) days from the date of termination of service.

21 Except as provided in subsection E of Sections 5-117.5 and 14-108.1

22 of Title 70 of the Oklahoma Statutes and Section 840-2.27I of this

23 title and subsection K of this section, health and dental insurance

24 coverage may not be reinstated at a later time if the election to

    Req. No. 10048                                                 Page 10
                                                   RBH No. 10048

1 continue in force or begin coverage is declined. Vested persons who

2 have terminated service and are not receiving benefits and effective

3 July 1, 1996, nonvested persons who have terminated service with

4 more than ten (10) years of participating service with a qualifying

5 employer, who within thirty (30) days from the date of termination

6 of service, elect to continue such coverage, shall pay the full cost

7 of said insurance premium at the rate and pursuant to the terms and

8 conditions established by the Office of Management and Enterprise

9 Services.

10  B. 1. Health insurance benefit plans offered pursuant to this

11 section shall include:

12  a. indemnity plans offered through the Office,

13  b. managed care plans offered as alternatives to the

14           indemnity plans,

15  c. Medicare supplements offered through the Office,

16  d. Medicare risk-sharing contracts offered as

17           alternatives to the Medicare supplements offered

18           through the Office, and

19  e. any other employer-provided health insurance benefit

20           plans if the employer does not participate in the

21           plans offered pursuant to the Oklahoma Employees

22           Insurance and Benefits Act.

23  2. Health insurance benefit plans offered pursuant to this

24 section shall provide prescription drug benefits, except for plans

    Req. No. 10048                                             Page 11
                                               RBH No. 10048

1 designed pursuant to the Medicare Prescription Drug Improvement and

2 Modernization Act of 2003, which may or may not contain prescription

3 drug benefits, for which provision of prescription drug benefits is

4 optional, and except for plans offered pursuant to subparagraph e of

5 paragraph 1 of this subsection.

6   C. A retired person who:

7   1. Is receiving benefits from the Teachers' Retirement System

8 of Oklahoma after September 30, 1988, is under sixty-five (65) years

9 of age and is not otherwise eligible for Medicare and pursuant to

10 subsection A of this section elects to begin or to continue the

11 health insurance plan;

12  2. Is receiving benefits from the Teachers' Retirement System

13 of Oklahoma after June 30, 1993, is under sixty-five (65) years of

14 age and is not otherwise eligible for Medicare and participates in a

15 health insurance plan provided by a participating education employer

16 of the Teachers' Retirement System of Oklahoma other than a health

17 insurance plan offered pursuant to the Oklahoma Employees Insurance

18 and Benefits Act or an alternative health plan offered pursuant to

19 the Oklahoma State Employees Benefits Act;

20  3. Is receiving benefits from the Teachers' Retirement System

21 of Oklahoma after September 30, 1988, made contributions to the

22 system and is sixty-five (65) years of age or older, or who is under

23 sixty-five (65) years of age and is eligible for Medicare and is a

24 participant in the Oklahoma Employees Insurance and Benefits Act and

    Req. No. 10048                             Page 12
                                                   RBH No. 10048

1 elects coverage under the Medicare supplement offered by the Office;

2 or

3     4. Is receiving benefits from the Teachers' Retirement System

4 of Oklahoma after June 30, 1993, made contributions to the system

5 and is sixty-five (65) years of age or older, or who is under sixty-

6 five (65) years of age and is eligible for Medicare and participates

7 in a health insurance plan provided by a participating education

8 employer of the Teachers' Retirement System of Oklahoma other than a

9 health insurance plan offered pursuant to the Oklahoma Employees

10 Insurance and Benefits Act or an alternative health plan offered

11 pursuant to the Oklahoma State Employees Benefits Act and elects

12 coverage under the Medicare supplement offered by the Office,

13 shall have the amount determined pursuant to subsection E of this

14 section, or the premium rate of the health insurance benefit plan,

15 whichever is less, paid by the Teachers' Retirement System of

16 Oklahoma. If the amount paid by the Teachers' Retirement System of

17 Oklahoma does not cover the full cost of the health insurance

18 premium, the retired person shall pay the remaining amount if the

19 retired person wants to continue the coverage.

20    D. The Teachers' Retirement System shall pay the amount due

21 pursuant to the provisions of subsection C of this section as

22 follows:

23    1. For those individuals participating in plans provided

24 through the Oklahoma Employees Insurance and Benefits Act, payment

    Req. No. 10048                                                Page 13
                                                         RBH No. 10048

1 shall be made to the Office pursuant to the provisions of subsection

2 I of this section; or

3   2. For those individuals participating in plans provided

4 through a participating education employer of the Teachers'

5 Retirement System of Oklahoma other than a health insurance plan

6 offered pursuant to the Oklahoma Employees Insurance and Benefits

7 Act, payment shall be made to the education employer.

8   E. Beginning July 1, 2000 November 1, 2025, the maximum benefit

9 payable by the Teachers' Retirement System of Oklahoma on behalf of

10 a retired person toward said person's monthly premium for health

11 insurance shall be determined in accordance with the following

12 schedule:

13                                       LESS THAN

14                                       25 YEARS BUT          GREATER

15                           LESS THAN   GREATER THAN THAN 24.99

16  AVERAGE SALARY           15 YEARS OF 14.99 YEARS OF YEARS OF

17 USED FOR DETERMINING      CREDITABLE  CREDITABLE CREDITABLE

18 RETIREMENT ALLOWANCE      SERVICE     SERVICE               SERVICE

19 Less than $20,000.00      $103.00     $104.00               $105.00

20 Less than $30,000.00 but

21 greater than $19,999.99   $102.00     $103.00               $104.00

22 Less than $40,000.00 but

23 greater than $29,999.99   $101.00     $102.00               $103.00

24 $40,000.00 or greater     $100.00     $101.00               $102.00

    Req. No. 10048                                                 Page 14
                                                        RBH No. 10048

1                                         LESS THAN

2                                         25 YEARS BUT          GREATER

3                            LESS THAN    GREATER THAN THAN 24.99

4   AVERAGE SALARY           15 YEARS OF 14.99 YEARS OF YEARS OF

5 USED FOR DETERMINING       CREDITABLE   CREDITABLE CREDITABLE

6 RETIREMENT ALLOWANCE       SERVICE      SERVICE               SERVICE

7 Less than $20,000.00       $206.00      $208.00               $210.00

8 Less than $30,000.00 but

9 greater than $19,999.99    $204.00      $206.00               $208.00

10 Less than $40,000.00 but

11 greater than $29,999.99   $202.00      $204.00               $206.00

12  $40,000.00 or greater    $200.00      $202.00               $204.00

13  For plans offered by the Office, the amount paid pursuant to

14 this subsection shall first be applied to the prescription drug

15 coverage premium, if any. Any remaining amounts shall be applied

16 towards the medical coverage premium.

17  F. If a person retires and begins to receive benefits from the

18 Teachers' Retirement System of Oklahoma or terminates service and

19 has a vested benefit with the Teachers' Retirement System of

20 Oklahoma, the person may elect, in the manner provided in subsection

21 A of this section, to participate in the dental insurance plan

22 offered through the Oklahoma Employees Insurance and Benefits Act.

23 The person shall pay the full cost of the dental insurance.

24

    Req. No. 10048                                                 Page 15
                                        RBH No. 10048

1   G. Those persons who are receiving benefits from the Teachers'

2 Retirement System of Oklahoma and have health insurance coverage

3 which on the operative date of this section is being paid by the

4 education entity from which the person retired shall make the

5 election required in subsection A of this section within thirty (30)

6 days of the termination of said health insurance coverage. The

7 person making the election shall give the Office certified

8 documentation satisfactory to the Office of the termination date of

9 the other health insurance coverage.

10  H. Dependents of a deceased education employee who was on

11 active work status or on a disability leave at the time of death or

12 of a participating retirant or of any person who has elected to

13 receive a vested benefit under the Teachers' Retirement System of

14 Oklahoma may continue the health and dental insurance benefits in

15 force provided said dependents pay the full cost of such insurance

16 and they were covered as eligible dependents at the time of such

17 death and such election is made within thirty (30) days of date of

18 death. The eligibility for said benefits shall terminate for the

19 surviving children when said children cease to qualify as

20 dependents.

21  I. The amounts required to be paid by the Teachers' Retirement

22 System of Oklahoma pursuant to this section shall be forwarded no

23 later than the tenth day of each month following the month for which

24 payment is due by the Board of Trustees of the Teachers' Retirement

    Req. No. 10048                                               Page 16
                                           RBH No. 10048

1 System of Oklahoma to the Office for deposit in the Education

2 Employees Group Insurance Reserve Fund.

3   J. The Teachers' Retirement System of Oklahoma shall provide

4 the Office information concerning the employers of retired and

5 vested members necessary to allow the Office to track eligibility

6 for continued coverage.

7   K. Upon retirement from employment with the Board of Regents of

8 the University of Oklahoma, any person who is or was employed at the

9 George Nigh Rehabilitation Institute and who transferred employment

10 pursuant to Section 3427 of Title 70 of the Oklahoma Statutes, any

11 person who was employed at the Medical Technology and Research

12 Authority and who transferred employment pursuant to Section 7068 of

13 this title, and any person who is a member of the Oklahoma Law

14 Enforcement Retirement System pursuant to the authority of Section

15 2-314 of Title 47 of the Oklahoma Statutes may participate in the

16 benefits authorized by the provisions of the Oklahoma Employees

17 Insurance and Benefits Act for retired participants, including

18 health, dental and life insurance benefits, if such election to

19 participate is made within thirty (30) days from the date of

20 termination of employment. Life insurance benefits for any such

21 person who transferred employment shall not exceed the coverage the

22 person had at the time of such transfer. Retirees who are persons

23 transferred employment and who participate pursuant to this

24

    Req. No. 10048                                                 Page 17
                                   RBH No. 10048

1 paragraph shall pay the premium for elected benefits less any

2 amounts paid by the retirement system pursuant to this section.

3   SECTION 3. This act shall become effective November 1, 2025.

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5   60-1-10048      CMA  01/02/25

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    Req. No. 10048                                               Page 18
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 Humphrey
Room 301S

Re: RBH No. 10048
RBH No. 10048 doubles the medical supplement benefit for all the
State's retirement systems retired participants. Currently the
benefit is $105. 00 per month for most participants. Teachers have a
schedule of payment based on service and benefit.

RBH No. 10048 is a fiscal bill as defined by OPLAAA.
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
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