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Oklahoma Legislature· HB 1458Approved by Governor 05/09/2025

An act relating to the Oklahoma Public Employees Retirement System, the official text

Shown verbatim: the complete text as captured from the official PDF posted by the Oklahoma Legislature, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
RBH No. 11377

1                   STATE OF OKLAHOMA

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

3 HOUSE BILL 1458               By: Kane

4

5

6                               AS INTRODUCED

7   An Act relating to the Oklahoma Public Employees

    Retirement System; amending 74 O.S. 2021, Section

8   916.1, which relates to death benefits; permitting

    beneficiaries to disclaim death benefits; providing

9   for transfer of death benefits; providing that

    disclaimer shall be in writing; providing time period

10  to be received by the transferor; discharging and

    releasing System from liability, obligation, and

11  costs; and providing an effective date.

12

13

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

15  SECTION 1.      AMENDATORY  74 O.S. 2021, Section 916.1, is

16 amended to read as follows:

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

18 Oklahoma Public Employees Retirement System shall pay to the

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

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

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

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

23 retired members who died on or after July 1, 1999, the sum shall be

24 Five Thousand Dollars ($5,000.00). The benefit payable pursuant to

    Req. No. 11377                                                  Page 1
                                                            RBH No. 11377

1 this subsection shall be deemed, for purposes of federal income

2 taxation, as life insurance proceeds and not as a death benefit if

3 the Internal Revenue Service approves this provision pursuant to a

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

5 of trustees of the System for that purpose.

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

7 beneficiary or having designated his estate as beneficiary, the

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

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

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

11 intervention of the probate court or probate procedure pursuant to

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

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

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

15 following documents from those persons claiming to be the legal

16 heirs of the deceased member:

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

18  documents or affidavit that a will does not exist,

19  b. an affidavit or affidavits of heirship which must

20  state:

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

22                  the deceased member's estate including the

23                  claiming heirs' names, relationship to the

24

    Req. No. 11377                                                  Page 2
                                              RBH No. 11377

1                   deceased, current addresses and current telephone

2                   numbers,

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

4                   that no application or petition for the

5                   appointment of a personal representative is

6                   pending or has been granted in any jurisdiction,

7   (3) a description of the personal property claimed

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

9                   both), together with a statement that such

10                  personal property is subject to probate, and

11  (4) a statement by each individual claiming heir

12                  identifying the amount of personal property that

13                  the heir is claiming from the System, and that

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

15                  consents to the identified claims of all the

16                  other claiming heirs of the deceased member

17                  pending with the System,

18  c. a written agreement or agreements signed by all

19  claiming heirs of the deceased member which provides

20  that the claiming heirs release, discharge and hold

21  harmless the System from any and all liability,

22  obligations and costs which it may incur as a result

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

24  heirs,

    Req. No. 11377                                                Page 3
                                         RBH No. 11377

1   d. a corroborating affidavit from an individual other

2   than a claiming heir, who was familiar with the

3   affairs of the deceased member, and

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

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

6   funeral and burial expenses have been paid or provided

7   for.

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

9 discretion in determining which requests for probate waiver may be

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

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

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

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

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

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

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

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

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

19 with a personal representative of the deceased member. The System

20 is not required to inquire into the truth of any matter specified in

21 this subsection or into the payment of any estate tax liability.

22  C. Death The beneficiary or beneficiaries of death benefits

23 provided pursuant to this section may be assigned by the beneficiary

24 elect to disclaim the death benefits, in which case such benefits

    Req. No. 11377                                                  Page 4
                                   RBH No. 11377

1 shall be transferred to a person licensed as a funeral director or

2 to a lawfully recognized business entity licensed as required by law

3 to provide funeral services for the deceased member. The qualified

4 disclaimer shall be in writing and shall be an irrevocable and

5 unqualified refusal to accept all or a portion of the death benefit.

6 It shall be received by the transferor no more than nine (9) months

7 after the later of the day the transfer creating the interest in the

8 disclaiming person is made or the day the disclaiming person attains

9 age twenty-one (21). The interest in the death benefits shall pass

10 without direction by the disclaiming person to another person.

11 After paying death benefits to any beneficiary or the member's

12 estate pursuant to this subsection, the System shall be discharged

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

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

15 specified in this subsection or into the payment of any tax

16 liability.

17  SECTION 2. This act shall become effective November 1, 2025.

18

19  60-1-11377      CMA  12/10/24

20

21

22

23

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    Req. No. 11377                                                 Page 5
THOMAS E. CUMMINS CONSULTING ACTUARY, INC.

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

December 27, 2024

Representative Kane
Room 432
Re: RBH No. 11377

RBH No 11377 is a clarification bill dealing with assignment of the
death benefit in Oklahoma Public Employees Retirement System.
RBS No. 11377is a non fiscal bill as defined 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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