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Oklahoma Legislature· HB 1335Second Reading referred to Rules

An act relating to public retirement systems, the official text

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1                            STATE OF OKLAHOMA

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

3 HOUSE BILL 1335            By: Humphrey

4

5

6                            AS INTRODUCED

7   An Act relating to public retirement systems;

    defining term; authorizing grant of retirement

8   benefit increase for members of the Oklahoma

    Firefighters Pension and Retirement System, the

9   Oklahoma Police Pension and Retirement System, the

    Uniform Retirement System for Justices and Judges,

10  the Oklahoma Law Enforcement Retirement System, the

    Teachers' Retirement System of Oklahoma, and the

11  Oklahoma Public Employees Retirement System subject

    to limitation based upon funded ratio; prescribing

12  conditions for retirement benefit increase;

    authorizing grant of benefit increase; prescribing

13  date for effect of benefit increases; providing for

    offset; specifying amount of increase; providing for

14  certain comparison of benefit increases authorized by

    certain statutory provisions; providing for

15  codification; and providing an effective date.

16

17

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

19  SECTION 1.      NEW LAW  A new section of law to be codified

20 in the Oklahoma Statutes as Section 49-143.8 of Title 11, unless

21 there is created a duplication in numbering, reads as follows:

22  A. As used in this section, "funded ratio" means the figure

23 derived by dividing the actuarial value of retirement system assets

24 by the actuarial accrued liability amount of the retirement system

    Req. No. 10047                                                 Page 1
1 using the information reported to the retirement system by its

2 actuary in the annual valuation and which is computed as of a day

3 certain.

4   B. Except as provided in subsection D of this section and

5 except for persons receiving benefits pursuant to Section 49-101 of

6 Title 11 of the Oklahoma Statutes, effective November 1, 2025, the

7 board of trustees of the Oklahoma Firefighters Pension and

8 Retirement System shall grant a four percent (4%) retirement benefit

9 increase to the retired members of the system or their beneficiaries

10 if the funded ratio of the retirement system will be at least eighty

11 percent (80%) after the benefit increase is provided to the eligible

12 retirees or beneficiaries.

13  C. Except as provided in subsection D of this section and

14 except for persons receiving benefits pursuant to Section 49-101 of

15 Title 11 of the Oklahoma Statutes, effective November 1, 2025, if

16 the funded ratio of the retirement system will not be at least

17 eighty percent (80%) after the benefit increase prescribed in

18 subsection B of this section, the board of trustees shall grant a

19 two percent (2%) retirement benefit increase to the retired members

20 of the system or their beneficiaries.

21  D. Any increase in benefits a person is eligible to receive

22 pursuant to repealed Section 49-136 of Title 11 of the Oklahoma

23 Statutes after June 30, 2020, shall be used to offset the increase

24 of benefits provided in this section.

    Req. No. 10047                                                  Page 2
1   E. Effective November 1, 2025, any person receiving benefits

2 pursuant to Section 49-101 of Title 11 of the Oklahoma Statutes

3 shall each receive an increase in benefits of four percent (4%) if

4 the funded ratio of the retirement system will be at least eighty

5 percent (80%) after a benefit increase is provided to the eligible

6 retirees or beneficiaries to:

7   1. Seven Dollars and eighty-three cents ($7.83) per year of

8 credited service, not to exceed thirty (30) years of service if the

9 person's retirement benefit was not adjusted pursuant to the

10 provisions of Section 49-143.7 of Title 11 of the Oklahoma Statutes;

11  2. Seven Dollars and ninety-nine cents ($7.99) per year of

12 credited service, not to exceed thirty (30) years of service if the

13 person's retirement benefit was adjusted pursuant to Section 49-

14 143.7 of Title 11 of the Oklahoma Statutes from a base amount of

15 Seven Dollars and sixty-eight cents ($7.68); or

16  3. Eight Dollars and fourteen cents ($8.14) per year of

17 credited service, not to exceed thirty (30) years of service if the

18 person's retirement benefit was adjusted pursuant to Section 49-

19 143.7 of Title 11 of the Oklahoma Statutes from a base amount of

20 Seven Dollars and eighty-three cents ($7.83).

21  F. If the funded ratio of the retirement system will not be at

22 least eighty percent (80%) after the benefit increase prescribed in

23 subsection E of this section, effective November 1, 2025, any person

24 receiving benefits pursuant to Section 49-101 of Title 11 of the

    Req. No. 10047                                                 Page 3
1 Oklahoma Statutes shall each receive an increase in benefits of two

2 percent (2%) to:

3   1. Seven Dollars and sixty-eight cents ($7.68) per year of

4 credited service, not to exceed thirty (30) years of service if the

5 person's retirement benefit was not adjusted pursuant to the

6 provisions of Section 49-143.7 of Title 11 of the Oklahoma Statutes;

7   2. Seven Dollars and eighty-three cents ($7.83) per year of

8 credited service, not to exceed thirty (30) years of service if the

9 person's retirement benefit was adjusted pursuant to Section 49-

10 143.7 of Title 11 of the Oklahoma Statutes from a base amount of

11 Seven Dollars and sixty-eight cents ($7.68); or

12  3. Seven Dollars and ninety-nine cents ($7.99) per year of

13 credited service, not to exceed thirty (30) years of service if the

14 person's retirement benefit was adjusted pursuant to Section 49-

15 143.7 of Title 11 of the Oklahoma Statutes from a base amount of

16 Seven Dollars and eighty-three cents ($7.83).

17  SECTION 2.      NEW LAW  A new section of law to be codified

18 in the Oklahoma Statutes as Section 50-136.10 of Title 11, unless

19 there is created a duplication in numbering, reads as follows:

20  A. As used in this section, "funded ratio" means the figure

21 derived by dividing the actuarial value of retirement system assets

22 by the actuarial accrued liability amount of the retirement system

23 using the information reported to the retirement system by its

24

    Req. No. 10047                                                 Page 4
1 actuary in the annual valuation and which is computed as of a day

2 certain.

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

4 board of trustees of the Oklahoma Police Pension and Retirement

5 System shall grant a four percent (4%) retirement benefit increase

6 effective November 1, 2025, to the retired members of the system or

7 their beneficiaries if the funded ratio of the retirement system

8 will be at least eighty percent (80%) after the benefit increase is

9 provided to the eligible retirees or beneficiaries.

10  C. Except as provided in subsection D of this section, if the

11 funded ratio of the retirement system will not be at least eighty

12 percent (80%) after the benefit increase prescribed in subsection B

13 of this section, the board of trustees shall grant a two percent

14 (2%) retirement benefit increase effective November 1, 2025, to the

15 retired members of the system or their beneficiaries.

16  D. Any increase in benefits a person is eligible to receive

17 pursuant to repealed Section 50-120 of Title 11 of the Oklahoma

18 Statutes, after June 30, 2020, shall be offset by the increase

19 provided by this section.

20  SECTION 3.      NEW LAW   A new section of law to be codified

21 in the Oklahoma Statutes as Section 1104L of Title 20, unless there

22 is created a duplication in numbering, reads as follows:

23  A. As used in this section, "funded ratio" means the figure

24 derived by dividing the actuarial value of retirement system assets

    Req. No. 10047                                                  Page 5
1 by the actuarial accrued liability amount of the retirement system

2 using the information reported to the retirement system by its

3 actuary in the annual valuation and which is computed as of a day

4 certain.

5   B. The board of trustees of the Uniform Retirement System for

6 Justices and Judges shall grant a four percent (4%) retirement

7 benefit increase effective November 1, 2025, to the retired members

8 of the system or their beneficiaries if the funded ratio of the

9 retirement system will be at least eighty percent (80%) after the

10 benefit increase is provided to the eligible retirees or

11 beneficiaries.

12  C. If the funded ratio of the retirement system will not be at

13 least eighty percent (80%) after the benefit increase prescribed in

14 subsection B of this section, the board of trustees shall grant a

15 two percent (2%) retirement benefit increase effective November 1,

16 2025, to the retired members of the system or their beneficiaries.

17  SECTION 4.      NEW LAW  A new section of law to be codified

18 in the Oklahoma Statutes as Section 2-305.13 of Title 47, unless

19 there is created a duplication in numbering, reads as follows:

20  A. As used in this section, "funded ratio" means the figure

21 derived by dividing the actuarial value of retirement system assets

22 by the actuarial accrued liability amount of the retirement system

23 using the information reported to the retirement system by its

24

    Req. No. 10047                                                 Page 6
1 actuary in the annual valuation and which is computed as of a day

2 certain.

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

4 board of trustees of the Oklahoma Law Enforcement Retirement System

5 shall grant a four percent (4%) retirement benefit increase

6 effective November 1, 2025, to the retired members of the system or

7 their beneficiaries if the funded ratio of the retirement system

8 will be at least eighty percent (80%) after the benefit increase is

9 provided to the eligible retirees or beneficiaries.

10  C. If the funded ratio of the retirement system will not be at

11 least eighty percent (80%) after the benefit increase prescribed in

12 subsection B of this section, the board of trustees shall grant a

13 two percent (2%) retirement benefit increase effective November 1,

14 2025, to the retired members of the system or their beneficiaries.

15  D. Any increase in benefits a person is eligible to receive

16 pursuant to subsection B, C, or D of Section 2-305 of Title 47 of

17 the Oklahoma Statutes, after October 31, 2025, shall be offset by

18 the increase in benefits provided by this section.

19  SECTION 5.      NEW LAW  A new section of law to be codified

20 in the Oklahoma Statutes as Section 17-116.23 of Title 70, unless

21 there is created a duplication in numbering, reads as follows:

22  A. As used in this section, "funded ratio" means the figure

23 derived by dividing the actuarial value of retirement system assets

24 by the actuarial accrued liability amount of the retirement system

    Req. No. 10047                                                 Page 7
1 using the information reported to the retirement system by its

2 actuary in the annual valuation and which is computed as of a day

3 certain.

4   B. The board of trustees of the Teachers' Retirement System of

5 Oklahoma shall grant a four percent (4%) retirement benefit increase

6 effective November 1, 2025, to the retired members of the system or

7 their beneficiaries if the funded ratio of the retirement system

8 will be at least eighty percent (80%) after the benefit increase is

9 provided to the eligible retirees or beneficiaries.

10  C. If the funded ratio of the retirement system will not be at

11 least eighty percent (80%) after the benefit increase prescribed in

12 subsection B of this section, the board of trustees shall grant a

13 two percent (2%) retirement benefit increase effective November 1,

14 2025, to the retired members of the system or their beneficiaries.

15  SECTION 6.      NEW LAW  A new section of law to be codified

16 in the Oklahoma Statutes as Section 930.12 of Title 74, unless there

17 is created a duplication in numbering, reads as follows:

18  A. As used in this section, "funded ratio" means the figure

19 derived by dividing the actuarial value of retirement system assets

20 by the actuarial accrued liability amount of the retirement system

21 using the information reported to the retirement system by its

22 actuary in the annual valuation and which is computed as of a day

23 certain.

24

    Req. No. 10047                                                 Page 8
1   B. The board of trustees of the Oklahoma Public Employees

2 Retirement System shall grant a four percent (4%) retirement benefit

3 increase effective November 1, 2025, to the retired members of the

4 system or their beneficiaries if the funded ratio of the retirement

5 system will be at least eighty percent (80%) after the benefit

6 increase is provided to the eligible retirees or beneficiaries.

7   C. If the funded ratio of the retirement system will not be at

8 least eighty percent (80%) after the benefit increase prescribed in

9 subsection B of this section, the board of trustees shall grant a

10 two percent (2%) retirement benefit increase effective November 1,

11 2025, to the retired members of the system or their beneficiaries.

12  SECTION 7. This act shall become effective November 1, 2025.

13

14  60-1-10047      CMA  10/02/24

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    Req. No. 10047                                                 Page 9
THOMAS E. CUMMINS CONSULTING ACTUARY, INC.

2512 E. 71st Street , Suite D  Tulsa, Oklahoma 74136
(918) 492-9658  (918) 492- 9659

January 7, 2025

Representative Humphrey
Room 301S

Re: RBH No. 10047
RBH No. 10047 provides a benefit increase for the retired members of
each of the State's retirement systems. The amount of the increase
is 4 % if the funded ratio will be 80% after the increase, otherwise
the benefit increase will be 2% .
RBH No. 10047 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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