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Oklahoma Legislature· SB 134Recommendation to the full committee; Do Pass Appropriations and Budget Finance Subcommittee

An act relating to the Oklahoma Public Employees 8 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.
RBS No. 1056

1                       STATE OF OKLAHOMA

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

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3 SENATE BILL 134               By: Frix
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7                               AS INTRODUCED

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8   An Act relating to the Oklahoma Public Employees

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

9   914, which relates to retirement provisions; updating

9   statutory reference; updating statutory language;

10  modifying separation period for employee prior to

10  rehiring with participating employer; and providing

11  an effective date.

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14 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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15  SECTION 1.     AMENDATORY   74 O.S. 2021, Section 914, is

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16 amended to read as follows:
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17  Section 914. A. The normal retirement date for a member of the

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18 Oklahoma Public Employees Retirement System shall be as defined in
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19 Section 902 of this title, provided members employed on or after
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20 January 1, 1983, shall have six (6) or more years of full-time-
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21 equivalent employment with a participating employer before receiving
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22 any retirement benefits or, if the member is a legislative session
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23 employee of the Legislature, shall have three (3) or more years of
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24 full-time-equivalent employment with a participating employer before
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    Req. No. 1056                                              Page 1
                                                          RBS No. 1056

1 receiving any retirement benefits. In no event shall a normal
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2 retirement date for a member be before six (6) months after the
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3 entry date of the participating employer by whom he or she is
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4 employed.
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5   B. A member may be employed beyond the normal retirement date

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6 by the appointing authority of the participating employer. However,
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7 the member may not receive retirement pay so long as the member
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8 continues employment under this act Section 901 et seq. of this
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9 title. Any member who has terminated employment with a
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10 participating employer prior to the month immediately preceding said
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11 the member's normal retirement date must elect a vested benefit
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12 pursuant to Section 917 of this title before receiving any
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13 retirement benefits.
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14  C. Notice for retirement shall be filed through the retirement

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15 coordinator for the participating employer in such form and manner
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16 as the Board Oklahoma Public Employees Retirement System Board of
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17 Trustees shall prescribe; provided, that such notice for retirement
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18 shall be filed with the office of the retirement system at least
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19 sixty (60) days prior to the date selected for the member's
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20 retirement; provided further, that the Executive Director may waive
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21 the sixty-day notice for good cause shown as defined by the Board.
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22  1. The participating employer shall provide the System with the

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23 following information for a retiring member, no later than the
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    Req. No. 1056                                              Page 2
                                                            RBS No. 1056

1 fifteenth day of the month of retirement: last day physically on
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2 the job; last day on payroll; and final unused sick leave balance.
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3   2. Failure to submit this information by the deadline, or

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4 errors in submitted information that result in a disqualification of
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5 retirement eligibility, shall be the responsibility of the
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6 participating employer. In cases where the error results in
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7 disqualification of retirement eligibility, it is the participating
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8 employer's responsibility to reemploy the member, or retain the
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9 member on the payroll, for time period required to reach
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10 eligibility, not exceeding two (2) months.
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11  D. No retirement benefits shall be payable to any member until

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12 the first day of the month following the termination of the member's
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13 employment with any participating employer. The type of retirement
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14 benefit selected by a member may not be changed on or after the
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15 effective date of the member's retirement. Receipt of workers'
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16 compensation benefits shall in no respect disqualify the retiree for
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17 benefits.
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18  E. If a retiree should be elected or appointed to any position

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19 or office for which compensation for service is paid from levies or
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20 taxes imposed by the state or any political subdivision thereof, the
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21 retiree shall not receive any retirement benefit for any month for
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22 which the retiree serves in such position or office after the
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23 retiree has received compensation in a sum equal to the amount
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24 allowable as wages or earnings by the Social Security Administration
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    Req. No. 1056                                             Page 3
                                                           RBS No. 1056

1 in any calendar year. This subsection shall not apply to service
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2 rendered by a retiree as a juror, as a witness in any legal
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3 proceeding or action, as an election board judge or clerk, or in any
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4 other office or position of a similar nature, or to an employer that
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5 is not a participating employer. Provided, further, that any
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6 participating employer who is employing such a retiree shall make
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7 proper written notification to the System informing it of the
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8 beginning date of such retiree's employment and the date such
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9 retiree reaches the maximum compensation allowed by this section in
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10 the calendar year. Any retiree returning to work for a
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11 participating employer shall make contributions to the System and
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12 the employer shall do likewise. All retirees who have returned to
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13 employment and participation in the System following retirement
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14 shall have post-retirement benefits calculated on one of the
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15 following methods:
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16  1. All service accumulated from date of reemployment shall be

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17 computed based on the benefit formula applicable at that time and
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18 the additional benefits shall be added to the previous benefits.
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19 Such additional benefits shall be calculated each year based upon
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20 additional service accrued from July 1 to June 30 of the previous
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21 year and the additional benefit, if any, will be added to the
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22 retiree's monthly benefit beginning January 1, 2000, and each
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23 January 1 thereafter. However, the post-retirement service credit
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24 shall be cumulative, beginning with service credit accrued after the
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    Req. No. 1056                                              Page 4
                                                             RBS No. 1056

1 date of retirement, provided that the retiree has not received a
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2 distribution of the post-retirement contributions.;
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3   2. Any retiree who returns to employment with a participating

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4 employer may elect not to receive any retirement benefits while so
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5 reemployed. If such an election is made and reemployment is for a
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6 minimum period of thirty-six (36) consecutive months, all service
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7 accumulated from date of reemployment shall be participating
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8 service. For purposes of determining the retirement benefits of
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9 such a member upon the termination of such reemployment all
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10 creditable service of the member shall be computed based on the
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11 benefit formula applicable at the time of termination of such
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12 reemployment. Provided, a retiree who became reemployed prior to
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13 July 1, 1982, and who is reemployed for a minimum of thirty-six (36)
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14 consecutive months shall have all the creditable service of such
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15 retiree computed based on the benefit formula applicable at the time
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16 of termination of such reemployment if the retiree elects not to
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17 receive retirement benefits prior to such termination of
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18 reemployment. A retiree who has waived receipt of the monthly
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19 benefit, but is not reemployed for the full thirty-six (36)
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20 consecutive months, shall upon termination of such reemployment have
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21 only the additional amount added to his or her benefit as if they
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22 had not waived the benefit as provided in paragraph 1 of this
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23 subsection.;
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    Req. No. 1056                                              Page 5
                                                             RBS No. 1056

1   3. All post-retirement additional benefits shall be calculated

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2 using actual hours worked as well as the actual compensation
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3 received and upon which contributions are paid. Post-retirement
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4 service is not subject to the partial year round-up provisions of
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5 subsection C of Section 913 of this title.; or
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6   4. A retired member who returns to work for a participating

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7 employer pursuant to this section shall be bound by the election
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8 made pursuant to paragraph (2) of subsection A of Section 915 of
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9 this title if the member had made such election prior to retirement.
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10 If the member had not made such election prior to retirement, the
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11 member may do so during the member's reemployment with a
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12 participating employer pursuant to this section. A retired member
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13 may not be rehired by their former employer, nor may the retired
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14 member be permitted to enter into an employment contract of any kind
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15 with a former employer, for a period of one (1) year six months
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16 after the retired member ended his or her employment with the former
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17 employer unless the retired member waives his or her benefit under
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18 paragraph 2 of this subsection and returns as a bona fide employee.
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19  F. Except as otherwise provided by subsection G of this

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20 section, any member may elect to retire before his or her normal
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21 retirement date on the first day of any month coinciding with or
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22 following the attainment of age fifty-five (55), provided such
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23 member has completed ten (10) years of participating service, but in
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24 no event before six (6) months after the entry date. Any member who
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    Req. No. 1056                                            Page 6
                         RBS No. 1056

1 shall retire before the normal retirement date shall receive an
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2 annual retirement benefit adjusted in accordance with the following
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3 percentage schedule:
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4                        Percentage of Normal

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5                  Age   Retirement Benefit

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6                  62    100.00%

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7                  61    93.33%

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8                  60    86.67%

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9                  59    80.00%

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10                 58    73.33%

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11                 57    66.67%

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12                 56    63.33%

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13                 55    60.00%

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14  G. Any member whose first participating service occurs on or

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15 after November 1, 2011, may elect to retire before his or her normal
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16 retirement date on the first day of any month coinciding with or
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17 following the attainment of age sixty (60), provided such member has
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18 completed ten (10) years of participating service, but in no event
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19 before six (6) months after the entry date. Any member who shall
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20 retire before the normal retirement date shall receive an annual
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21 retirement benefit adjusted in accordance with the following
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22 percentage schedule:
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23                       Percentage of Normal

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24                 Age   Retirement Benefit

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    Req. No. 1056        Page 7
                                                  RBS No. 1056

1                  65                             100.00%

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2                  64                             93.33%

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3                  63                             86.67%

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4                  62                             80.00%

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5                  61                             73.33%

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6                  60                             66.67%

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

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9   60-1-1056          RD  12/27/2024 1:43:13 PM

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    Req. No. 1056                                 Page 8
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