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Oklahoma Legislature· HB 3236Second Reading referred to Rules

An act relating to retirement, the official text

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RBH No. 15238

1                           STATE OF OKLAHOMA

2   2nd Session of the 60th Legislature (2026)

3 HOUSE BILL 3236               By: Rosecrants

4

5

6                           AS INTRODUCED

7   An Act relating to retirement; amending 62 O.S. 2021,

    Section 3103, as last amended by Section 2, Chapter

8   361, O.S.L. 2024 (62 O.S. Supp. 2025, Section 3103),

    which relates to the Oklahoma Pension Legislation

9   Actuarial Analysis Act; modifying terms; defining

    terms; directing the Board of Trustees of the

10  Oklahoma Teachers' Retirement System to grant

    retirement benefit increase under certain

11  circumstances; providing condition; providing

    limitation on retirement benefit increase; directing

12  the System to provide annual report; directing the

    Legislative Office of Fiscal Transparency to conduct

13  review; providing for codification; providing

    effective dates; providing for contingent effective

14  dates based on outcome of approval of the emergency

    clause; and declaring an emergency.

15

16

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

18  SECTION 1.      AMENDATORY  62 O.S. 2021, Section 3103, as

19 last amended by Section 2, Chapter 361, O.S.L. 2024 (62 O.S. Supp.

20 2025, Section 3103), is amended to read as follows:

21  Section 3103. As used in the Oklahoma Pension Legislation

22 Actuarial Analysis Act:

23  1. "Amendment" means any amendment, including a substitute

24 bill, made to a retirement bill by any committee of the House of

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                                                     RBH No. 15238

1 Representatives or Senate, any conference committee of the House or

2 Senate or by the House or Senate;

3   2. "RB number" means that number preceded by the letters "RB"

4 assigned to a retirement bill by the respective staffs of the

5 Oklahoma State Senate and the Oklahoma House of Representatives when

6 the respective staff office prepares a retirement bill for a member

7 of the Legislature;

8   3. "Legislative Actuary" means the firm or entity that enters

9 into a contract with the Legislative Service Bureau pursuant to

10 Section 452.15 of Title 74 of the Oklahoma Statutes to provide the

11 actuarial services and other duties provided for in the Oklahoma

12 Pension Legislation Actuarial Analysis Act;

13  4. "Nonfiscal amendment" means an amendment to a retirement

14 bill having a fiscal impact, which amendment does not change any

15 factor of an actuarial investigation specified in subsection A of

16 Section 3109 of this title;

17  5. "Nonfiscal retirement bill" means a retirement bill:

18  a. which does not affect the cost or funding factors of a

19  retirement system,

20  b. which affects such factors only in a manner which does

21  not:

22  (1) grant a benefit increase under the retirement

23                     system affected by the bill,

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    Req. No. 15238                                                 Page 2
                                           RBH No. 15238

1   (2) create an actuarial accrued liability for or

2                   increase the actuarial accrued liability of the

3                   retirement system affected by the bill, or

4   (3) increase the normal cost of the retirement system

5                   affected by the bill,

6   c. which authorizes the purchase by an active member of

7   the retirement system, at the actuarial cost for the

8   purchase as computed pursuant to the statute in effect

9   on the effective date of the measure allowing such

10  purchase, of years of service for purposes of reaching

11  a normal retirement date in the applicable retirement

12  system, but which cannot be used in order to compute

13  the number of years of service for purposes of

14  computing the retirement benefit for the member,

15  d. which provides for the computation of a service-

16  connected disability retirement benefit for members of

17  the Oklahoma Law Enforcement Retirement System

18  pursuant to Section 2-305 of Title 47 of the Oklahoma

19  Statutes if the members were unable to complete twenty

20  (20) years of service as a result of the disability,

21  e. which requires membership in the defined benefit plan

22  authorized by Section 901 et seq. of Title 74 of the

23  Oklahoma Statutes for persons whose first elected or

24  appointed service occurs on or after November 1, 2018,

    Req. No. 15238                                              Page 3
                                       RBH No. 15238

1   if such persons had any prior service in the Oklahoma

2   Public Employees Retirement System prior to November

3   1, 2015,

4   f. which provides for a one-time increase in retirement

5   benefits if the increase in retirement benefits is not

6   a permanent increase in the gross annual retirement

7   benefit payable to a member or beneficiary, occurs

8   only once pursuant to a single statutory authorization

9   and does not exceed:

10  (1) the lesser of two percent (2%) of the gross

11                  annual retirement benefit of the member or One

12                  Thousand Dollars ($1,000.00) and requires that

13                  the benefit may only be provided if the funded

14                  ratio of the affected retirement system would not

15                  be less than sixty percent (60%) but not greater

16                  than eighty percent (80%) after the benefit

17                  increase is paid,

18  (2) the lesser of two percent (2%) of the gross

19                  annual retirement benefit of the member or One

20                  Thousand Two Hundred Dollars ($1,200.00) and

21                  requires that the benefit may only be provided if

22                  the funded ratio of the affected retirement

23                  system would be greater than eighty percent (80%)

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    Req. No. 15238                                                Page 4
                                                           RBH No. 15238

1                   but not greater than one hundred percent (100%)

2                   after the benefit increase is paid,

3   (3) the lesser of two percent (2%) of the gross

4                   annual retirement benefit of the member or One

5                   Thousand Four Hundred Dollars ($1,400.00) and

6                   requires that the benefit may only be provided if

7                   the funded ratio of the affected retirement

8                   system would be greater than one hundred percent

9                   (100%) after the benefit increase is paid, or

10  (4) the greater of two percent (2%) of the gross

11                  annual retirement benefit of the volunteer

12                  firefighter or One Hundred Dollars ($100.00) for

13                  persons who retired from the Oklahoma

14                  Firefighters Pension and Retirement System as

15                  volunteer firefighters and who did not retire

16                  from the Oklahoma Firefighters Pension and

17                  Retirement System as a paid firefighter.

18  As used in this subparagraph, "funded ratio" means the

19  figure derived by dividing the actuarial value of

20  assets of the applicable retirement system by the

21  actuarial accrued liability of the applicable

22  retirement system,

23  g. which modifies the disability pension standard for

24  police officers who are members of the Oklahoma Police

    Req. No. 15238                                               Page 5
                                    RBH No. 15238

1   Pension and Retirement System as provided by Section

2   50-115 of Title 11 of the Oklahoma Statutes,

3   h. which provides a cost-of-living benefit increase

4   pursuant to the provisions of:

5   (1) Section 49-143.7 of Title 11 of the Oklahoma

6                   Statutes,

7   (2) Section 50-136.9 of Title 11 of the Oklahoma

8                   Statutes,

9   (3) Section 1104K of Title 20 of the Oklahoma

10                  Statutes,

11  (4) Section 2-305.12 of Title 47 of the Oklahoma

12                  Statutes,

13  (5) Section 17-116.22 of Title 70 of the Oklahoma

14                  Statutes,

15  (6) Section 930.11 of Title 74 of the Oklahoma

16                  Statutes,

17  i. which modifies the computation of the line-of-duty

18  disability benefit pursuant to the provisions of this

19  section and Sections 50-101 and 50-115 of Title 11 of

20  the Oklahoma Statutes, or

21  j. which authorizes membership in the Oklahoma Law

22  Enforcement Retirement System for active commissioned

23  or CLEET-certified agents of the Office of the

24  Attorney General or the Military Department of the

    Req. No. 15238                                       Page 6
                                    RBH No. 15238

1   State of Oklahoma pursuant to Sections 3 2-309.9 and 4

2   2-309.10 of this act Title 47 of the Oklahoma

3   Statutes; or

4   k. which authorizes a retirement benefit increase

5   pursuant to the provisions of Section 2 of this act.

6 A nonfiscal retirement bill shall include any retirement bill that

7 has as its sole purpose the appropriation or distribution or

8 redistribution of monies in some manner to a retirement system for

9 purposes of reducing the unfunded liability of such system or the

10 earmarking of a portion of the revenue from a tax to a retirement

11 system or increasing the percentage of the revenue earmarked from a

12 tax to a retirement system;

13  6. "Reduction-in-cost amendment" means an amendment to a

14 retirement bill having a fiscal impact which reduces the cost of the

15 bill as such cost is determined by the actuarial investigation for

16 the bill prepared pursuant to Section 3109 of this title;

17  7. "Retirement bill" means any bill or joint resolution

18 introduced or any bill or joint resolution amended by a member of

19 the Legislature which creates or amends any law directly affecting a

20 retirement system. A retirement bill shall not mean a bill or

21 resolution that impacts the revenue of any state tax in which a

22 portion of the revenue generated from such tax is earmarked for the

23 benefit of a retirement system;

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                                                            RBH No. 15238

1   8. "Retirement bill having a fiscal impact" means any

2 retirement bill creating or establishing a retirement system and any

3 other retirement bill other than a nonfiscal retirement bill; and

4   9. "Retirement system" means the Teachers' Retirement System of

5 Oklahoma, the Oklahoma Public Employees Retirement System, the

6 Uniform Retirement System for Justices and Judges, the Oklahoma

7 Firefighters Pension and Retirement System, the Oklahoma Police

8 Pension and Retirement System, the Oklahoma Law Enforcement

9 Retirement System, or a retirement system established after January

10 1, 2006.

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

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

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

14  A. As used in this section:

15  1. "CPI-W" means the Consumer Price Index for urban wage

16 earners and clerical workers, as published by the Bureau of Labor

17 Statistics, U.S. Department of Labor. This is used as a measure of

18 price inflation for the development of the retirement benefit

19 increase described in subsection B of this section; and

20  2. "Funded ratio" means the figure derived by dividing the

21 actuarial value of retirement system assets by the actuarial accrued

22 liability amount of the retirement system using the information

23 reported to the retirement system by its actuary in the annual

24 valuation and which is computed as of a day certain.

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                                                           RBH No. 15238

1   B. The Board of Trustees of the Teachers' Retirement System of

2 Oklahoma shall grant a retirement benefit increase, adjusted due to

3 price inflation, if any, as measured by the CPI-W, effective July 1

4 each year to the retired members of the system or their

5 beneficiaries if the funded ratio of the retirement system will be

6 at least eighty percent (80%) after the benefit increase is provided

7 to the eligible retirees or beneficiaries. Provided, however, that

8 the retirement benefit increase shall be no more than two percent

9 (2%).

10  C. The System shall provide an annual report that contains an

11 actuarial certification to the Speaker of the Oklahoma House of

12 Representatives and the Pro Tempore of the Oklahoma Senate prior to

13 the granting of a retirement benefit increase pursuant to this

14 section.

15  D. The Legislative Office of Fiscal Transparency shall conduct

16 a review of the System every five (5) years to ensure compliance

17 with the provisions of this section.

18  SECTION 3. If the Emergency Clause is not approved pursuant to

19 the requirements of the Oklahoma Constitution as part of this

20 measure, the effective date of Section 1 of this act shall be

21 October 1, 2026.

22  SECTION 4. If the Emergency Clause is not approved pursuant to

23 the requirements of the Oklahoma Constitution as part of this

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                                           RBH No. 15238

1 measure, the effective date of Section 2 of this act shall be

2 November 1, 2026.

3   SECTION 5. Except as otherwise provided by Section 3 of this

4 act, Section 1 of this act shall become effective immediately upon

5 signature by the Governor or as otherwise provided by Section 58 of

6 Article V of the Oklahoma Constitution.

7   SECTION 6. Except as otherwise provided by Section 4 of this

8 act, Section 2 of this act shall become effective July 1, 2026.

9   SECTION 7. It being immediately necessary for the preservation

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

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

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

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THOMAS E. CUMMINS CONSULTING ACTUARY, INC.

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

January 6, 2026
Representative Rosecrants
Room 503

Re: RBH No. 15238
This bill would allow the Teachers Retirement System Board of
Trustees to grant a cost of living adjustment each year based on
changes in the CPI-W, provided the system is 80% funded after each
increase. The annual increase may not exceed 2%.
RBH No. 15238 is a non fiscal bill under OPLAAA as amended.
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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