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RBS No. 924
1 STATE OF OKLAHOMA
1
2 1st Session of the 60th Legislature (2025)
2
3 SENATE BILL 172 By: Bullard
3
4
4
5
5
6 AS INTRODUCED
6
7 An Act relating to retirement; amending 11 O.S. 2021,
7 Sections 49-100.9 and 50-105.4, which relate to the
8 Oklahoma Firefighters Pension and Retirement System
8 and the Oklahoma Police Pension and Retirement
9 System; allowing the Oklahoma Firefighters Pension
9 and Retirement Board and the Oklahoma Police Pension
10 and Retirement Board to approve cost-of-living
10 adjustment under certain circumstances; amending 20
11 O.S. 2021, Section 1108, which relates to the Uniform
11 Retirement System for Justices and Judges; allowing
12 the Board of Trustees of the Oklahoma Public
12 Employees Retirement System to approve cost-of-living
13 adjustment under certain circumstances; amending 47
13 O.S. 2021, Section 2-303.1, which relates to the
14 Oklahoma Law Enforcement Retirement System; allowing
14 the Oklahoma Law Enforcement Retirement Board to
15 approve cost-of-living adjustment under certain
15 circumstances; amending 70 O.S. 2021, Section 17-
16 106.1, which relates to the Teachers' Retirement
16 System of Oklahoma; allowing Board of Trustees of the
17 Teachers' Retirement System of Oklahoma to approve
17 cost-of-living adjustment under certain
18 circumstances; amending 74 O.S. 2021, Section 905,
18 which relates to the Oklahoma Public Employees
19 Retirement System; allowing Board of Trustees of the
19 Oklahoma Public Employees Retirement System to
20 approve cost-of-living adjustment under certain
20 circumstances; amending 62 O.S. 2021, Section 3103,
21 as last amended by Section 127, Chapter 452, O.S.L.
21 2024 (62 O.S. Supp. 2024, Section 3103), which
22 relates to the Oklahoma Pension Legislation Actuarial
22 Analysis Act; modifying definition; updating
23 statutory language; updating statutory references;
23 making language gender neutral; and providing
24 effective dates.
24
Req. No. 924 Page 1
RBS No. 924
1
1
2
2
3 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
3
4 SECTION 1. AMENDATORY 11 O.S. 2021, Section 49-100.9, is
4
5 amended to read as follows:
5
6 Section 49-100.9. A. The Oklahoma Firefighters Pension and
6
7 Retirement Board shall discharge their duties with respect to the
7
8 Oklahoma Firefighters Pension and Retirement System solely in the
8
9 interest of the participants and beneficiaries and:
9
10 1. For the exclusive purpose of:
10
11 a. providing benefits to participants and their
11
12 beneficiaries, and
12
13 b. defraying reasonable expenses of administering the
13
14 System;
14
15 2. With the care, skill, prudence, and diligence under the
15
16 circumstances then prevailing that a prudent person acting in a like
16
17 capacity and familiar with such matters would use in the conduct of
17
18 an enterprise of a like character and with like aims;
18
19 3. By diversifying the investments of the System so as to
19
20 minimize the risk of large losses, unless under the circumstances it
20
21 is clearly prudent not to do so; and
21
22 4. In accordance with the laws, documents and instruments
22
23 governing the System.
23
24
24
Req. No. 924 Page 2
RBS No. 924
1 B. The State Board may procure insurance indemnifying the
1
2 members of the State Board from personal loss or accountability from
2
3 liability resulting from a member's action or inaction as a member
3
4 of the State Board.
4
5 C. The State Board may establish an investment committee. The
5
6 investment committee shall be composed of not more than five (5)
6
7 members of the State Board appointed by the chairman of the State
7
8 Board. The committee shall make recommendations to the full State
8
9 Board on all matters related to the choice of custodians and
9
10 managers of the assets of the System, on the establishment of
10
11 investment and fund management guidelines, and in planning future
11
12 investment policy. The committee shall have no authority to act on
12
13 behalf of the State Board in any circumstances whatsoever. No
13
14 recommendation of the committee shall have effect as an action of
14
15 the State Board nor take effect without the approval of the State
15
16 Board as provided by law.
16
17 D. The Board shall retain qualified investment managers to
17
18 provide for the investment of the monies of the System. The
18
19 investment managers shall be chosen by a solicitation of proposals
19
20 on a competitive bid basis pursuant to standards set by the State
20
21 Board. Subject to the overall investment guidelines set by the
21
22 State Board, the investment managers shall have full discretion in
22
23 the management of those monies of the System allocated to the
23
24 investment managers. The State Board shall manage those monies not
24
Req. No. 924 Page 3
RBS No. 924
1 specifically allocated to the investment managers. The monies of
1
2 the System allocated to the investment managers shall be actively
2
3 managed by the investment managers, which may include selling
3
4 investments and realizing losses if such action is considered
4
5 advantageous to longer term return maximization. Because of the
5
6 total return objective, no distinction shall be made for management
6
7 and performance evaluation purposes between realized and unrealized
7
8 capital gains and losses.
8
9 E. Funds and revenues for investment by the investment managers
9
10 or the State Board shall be placed with a custodian selected by the
10
11 State Board. The custodian shall be a bank or trust company
11
12 offering pension fund master trustee and master custodial services
12
13 and any related custodial agreement or trust agreement is
13
14 incorporated herein by reference. The custodian shall be chosen by
14
15 a solicitation of proposals on a competitive bid basis pursuant to
15
16 standards set by the State Board. In compliance with the investment
16
17 policy guidelines of the State Board, the custodian bank or trust
17
18 company shall be contractually responsible for ensuring that all
18
19 monies of the System are invested in income-producing investment
19
20 vehicles at all times. If a custodian bank or trust company has not
20
21 received direction from the investment managers of the System as to
21
22 the investment of the monies of the System in specific investment
22
23 vehicles, the custodian bank or trust company shall be contractually
23
24 responsible to the State Board for investing the monies in
24
Req. No. 924 Page 4
RBS No. 924
1 appropriately collateralized short-term interest-bearing investment
1
2 vehicles. Any assets of the System may be invested in a collective
2
3 investment fund or group trust that satisfies the requirements of
3
4 Revenue Ruling 81-100, as further amended by Revenue Ruling 2004-67,
4
5 Revenue Ruling 2008-40, and Revenue Ruling 2011-1, and as
5
6 subsequently amended by future guidance. Each such collective
6
7 investment fund or group trust is adopted, with respect to any
7
8 monies invested therein, as part of the System, its trust, and
8
9 custodial account and each such declaration of trust or trust
9
10 agreement and related adoption, participation, investment
10
11 management, subtrust or other agreements, as amended from time to
11
12 time, with respect to any monies invested therein, are incorporated
12
13 by reference into the System, its trust agreement(s) or custodial
13
14 agreement(s), upon approval by the State Board.
14
15 F. By November 1, 1988, and prior to August 1 of each year
15
16 thereafter, the State Board shall develop a written investment plan
16
17 for the System.
17
18 G. The State Board shall compile a quarterly financial report
18
19 of all the funds of the System on a fiscal year basis. The report
19
20 shall be compiled pursuant to uniform reporting standards prescribed
20
21 by the Oklahoma State Pension Commission for all state retirement
21
22 systems. The report shall include several relevant measures of
22
23 investment value, including acquisition cost and current fair market
23
24 value with appropriate summaries of total holdings and returns. The
24
Req. No. 924 Page 5
RBS No. 924
1 report shall contain combined and individual rate of returns of the
1
2 investment managers by category of investment, over periods of time.
2
3 The State Board shall include in the quarterly reports all
3
4 commissions, fees or payments for investment services performed on
4
5 behalf of the State Board. The report shall be distributed to the
5
6 Governor, the Oklahoma State Pension Commission, the Legislative
6
7 Service Bureau, the Speaker of the House of Representatives and the
7
8 President Pro Tempore of the Senate.
8
9 H. After July 1 and before December 1 of each year, the State
9
10 Board shall publish widely an annual report presented in simple and
10
11 easily understood language pursuant to uniform reporting standards
11
12 prescribed by the Oklahoma State Pension Commission for all state
12
13 retirement systems. The report shall be submitted to the Governor,
13
14 the Speaker of the House of Representatives, the President Pro
14
15 Tempore of the Senate, the Oklahoma State Pension Commission and the
15
16 members of the System. The annual report shall cover the operation
16
17 of the System during the past fiscal year, including income,
17
18 disbursements, and the financial condition of the System at the end
18
19 of the fiscal year. The annual report shall also contain the
19
20 information issued in the quarterly reports required pursuant to
20
21 subsection G of this section as well as a summary of the results of
21
22 the most recent actuarial valuation to include total assets, total
22
23 liabilities, unfunded liability or over funded status, contributions
23
24 and any other information deemed relevant by the State Board. The
24
Req. No. 924 Page 6
RBS No. 924
1 annual report shall be written in such a manner as to permit a
1
2 readily understandable means for analyzing the financial condition
2
3 and performance of the System for the fiscal year.
3
4 I. Effective July 1, 2000, the State Board is hereby authorized
4
5 to do all acts and things necessary and proper to carry out the
5
6 purpose of the System and to make the least costly amendments and
6
7 changes, if any, as may be necessary to qualify the System under the
7
8 applicable sections of the Internal Revenue Code of 1986, as
8
9 amended.
9
10 J. 1. The Board may approve a two percent (2%) cost-of-living
10
11 adjustment, pursuant to the schedule prescribed by this subsection
11
12 for persons who have received benefits from the System for one or
12
13 more years. The Board may only approve a cost-of-living adjustment
13
14 when the System's funded ratio, according to the latest annual
14
15 actuarial valuation, exceeds a percentage as prescribed in paragraph
15
16 2 of this subsection. The funded ratio shall be maintained on a
16
17 rolling average for not less than three (3) years. Provided, a
17
18 cost-of-living adjustment shall not be granted if the adjustment
18
19 would cause the funding ratio of the System to drop below the
19
20 percentage which authorized the adjustment.
20
21 2. Except as provided in paragraph 1 of this subsection, a
21
22 cost-of-living adjustment may be approved by the Board if the funded
22
23 ratio of the System exceeds eighty percent (80%). Subsequent cost-
23
24 of-living adjustments may be approved each time thereafter that the
24
Req. No. 924 Page 7
RBS No. 924
1 System's funded ratio increases by two and one-half percent (2 1/2%)
1
2 from the percentage which authorized the previous cost-of-living
2
3 adjustment.
3
4 SECTION 2. AMENDATORY 11 O.S. 2021, Section 50-105.4, is
4
5 amended to read as follows:
5
6 Section 50-105.4. A. The Oklahoma Police Pension and
6
7 Retirement Board shall discharge their duties with respect to the
7
8 Oklahoma Police Pension and Retirement System solely in the interest
8
9 of the participants and beneficiaries and:
9
10 1. For the exclusive purpose of:
10
11 a. providing benefits to participants and their
11
12 beneficiaries, and
12
13 b. defraying reasonable expenses of administering the
13
14 System;
14
15 2. With the care, skill, prudence, and diligence under the
15
16 circumstances then prevailing that a prudent person acting in a like
16
17 capacity and familiar with such matters would use in the conduct of
17
18 an enterprise of a like character and with like aims;
18
19 3. By diversifying the investments of the System so as to
19
20 minimize the risk of large losses, unless under the circumstances it
20
21 is clearly prudent not to do so; and
21
22 4. In accordance with the laws, documents and instruments
22
23 governing the System.
23
24
24
Req. No. 924 Page 8
RBS No. 924
1 B. The State Board may procure insurance indemnifying the
1
2 members of the State Board from personal loss or accountability from
2
3 liability resulting from a member's action or inaction as a member
3
4 of the State Board.
4
5 C. The State Board may establish an investment committee. The
5
6 investment committee shall be composed of not more than five (5)
6
7 members of the State Board appointed by the chairman of the State
7
8 Board. The committee shall make recommendations to the full State
8
9 Board on all matters related to the choice of custodians and
9
10 managers of the assets of the System, on the establishment of
10
11 investment and fund management guidelines, and in planning future
11
12 investment policy. The committee shall have no authority to act on
12
13 behalf of the State Board in any circumstances whatsoever. No
13
14 recommendation of the committee shall have effect as an action of
14
15 the State Board nor take effect without the approval of the State
15
16 Board as provided by law.
16
17 D. The State Board shall retain qualified investment managers
17
18 to provide for the investment of the monies of the System. The
18
19 investment managers shall be chosen by a solicitation of proposals
19
20 on a competitive bid basis pursuant to standards set by the State
20
21 Board unless the State Board deems it necessary and prudent to do
21
22 otherwise to fulfill its fiduciary responsibility. Subject to the
22
23 overall investment guidelines set by the State Board, the investment
23
24 managers shall have full discretion in the management of those
24
Req. No. 924 Page 9
RBS No. 924
1 monies of the System allocated to the investment managers. The
1
2 State Board shall manage those monies not specifically allocated to
2
3 the investment managers. The monies of the System allocated to the
3
4 investment managers shall be actively managed by the investment
4
5 managers, which may include selling investments and realizing losses
5
6 if such action is considered advantageous to longer term return
6
7 maximization. Because of the total return objective, no distinction
7
8 shall be made for management and performance evaluation purposes
8
9 between realized and unrealized capital gains and losses.
9
10 E. Funds and revenues for investment by the investment managers
10
11 or the State Board shall be placed with a custodian selected by the
11
12 State Board. The custodian shall be a bank or trust company
12
13 offering pension fund master trustee and master custodial services
13
14 and any related custodial agreement or trust agreement is
14
15 incorporated herein by reference. The custodian shall be chosen by
15
16 a solicitation of proposals on a competitive basis pursuant to
16
17 standards set by the State Board. In compliance with the investment
17
18 policy guidelines of the State Board, the custodian bank or trust
18
19 company shall be contractually responsible for ensuring that all
19
20 monies of the System are invested in income-producing investment
20
21 vehicles at all times. If a custodian bank or trust company has not
21
22 received direction from the investment managers of the System as to
22
23 the investment of the monies of the System in specific investment
23
24 vehicles, the custodian bank or trust company shall be contractually
24
Req. No. 924 Page 10
RBS No. 924
1 responsible to the State Board for investing the monies in
1
2 appropriately collateralized short-term interest-bearing investment
2
3 vehicles. Any assets of the System may be invested in a collective
3
4 investment fund or in a group trust that satisfies the requirements
4
5 of Rev. Rul. Revenue Ruling 81-100, as further amended by Rev. Rul.
5
6 Revenue Ruling 2004-67, Rev. Rul. Revenue Ruling 2008-40, and Rev.
6
7 Rul. Revenue Ruling 2011-1, and as subsequently amended by future
7
8 guidance. Each such collective investment fund or group trust is
8
9 adopted, with respect to any monies invested therein, as part of the
9
10 System, its trust, and custodial account and each such declaration
10
11 of trust or trust agreement and related adoption, participation,
11
12 investment management, subtrust or other agreements, as amended from
12
13 time to time, with respect to any monies invested therein, are
13
14 incorporated by reference into the System, its trust agreement(s) or
14
15 custodial agreement(s), upon approval by the State Board.
15
16 F. By November 1, 1988, and prior to August 1 of each year
16
17 thereafter, the State Board shall develop a written investment plan
17
18 for the System.
18
19 G. After July 1 and before November 1 of each year, the State
19
20 Board shall publish widely an annual report presented in simple and
20
21 easily understood language pursuant to uniform reporting standards
21
22 prescribed by the Oklahoma State Pension Commission for all state
22
23 retirement systems. The report shall be submitted to the Governor,
23
24 the Speaker of the House of Representatives, the President Pro
24
Req. No. 924 Page 11
RBS No. 924
1 Tempore of the Senate, the Oklahoma State Pension Commission and the
1
2 members of the System. The annual report shall cover the operation
2
3 of the System during the past fiscal year, including income,
3
4 disbursements, and the financial condition of the System at the end
4
5 of the fiscal year. The annual report shall also contain a summary
5
6 of the results of the most recent actuarial valuation to include
6
7 total assets, total liabilities, unfunded liability or over funded
7
8 status, contributions and any other information deemed relevant by
8
9 the State Board. The annual report shall be written in such a
9
10 manner as to permit a readily understandable means for analyzing the
10
11 financial condition and performances of the System for the fiscal
11
12 year.
12
13 H. The State Board shall adopt a cost of living cost-of-living
13
14 adjustment actuarial assumption in its annual actuarial valuation
14
15 report.
15
16 I. 1. The Board may approve a two percent (2%) cost-of-living
16
17 adjustment, pursuant to the schedule prescribed by this subsection
17
18 for persons who have received benefits from the System for one or
18
19 more years. The Board may only approve a cost-of-living adjustment
19
20 when the System's funded ratio, according to the latest annual
20
21 actuarial valuation, exceeds a percentage as prescribed in paragraph
21
22 2 of this subsection. The funded ratio shall be maintained on a
22
23 rolling average for not less than three (3) years. Provided, a
23
24 cost-of-living adjustment shall not be granted if the adjustment
24
Req. No. 924 Page 12
RBS No. 924
1 would cause the funding ratio of the System to drop below the
1
2 percentage which authorized the adjustment.
2
3 2. Except as provided in paragraph 1 of this subsection, a
3
4 cost-of-living adjustment may be approved by the Board if the funded
4
5 ratio of the System exceeds eighty percent (80%). Subsequent cost-
5
6 of-living adjustments may be approved each time thereafter that the
6
7 System's funded ratio increases by two and one-half percent (2 1/2%)
7
8 from the percentage which authorized the previous cost-of-living
8
9 adjustment.
9
10 SECTION 3. AMENDATORY 20 O.S. 2021, Section 1108, is
10
11 amended to read as follows:
11
12 Section 1108. A. The Board of Trustees of the Oklahoma Public
12
13 Employees Retirement System shall have the responsibility for
13
14 management of the Uniform Retirement System for Justices and Judges
14
15 and the State Oklahoma Judicial Retirement Fund. All benefits
15
16 payable under The the Uniform Retirement System for Justices and
16
17 Judges, refunds of contributions and overpayments, purchases or
17
18 investments under the law, and all expenses in connection with the
18
19 System shall be paid from the Oklahoma Judicial Retirement Fund.
19
20 The State Oklahoma Judicial Retirement Fund shall be invested and
20
21 managed in the same manner as now or hereinafter provided by law for
21
22 the investment and management of funds belonging to the Oklahoma
22
23 Public Employees Retirement System. The Uniform Retirement System
23
24 for Justices and Judges shall be an instrumentality of the State of
24
Req. No. 924 Page 13
RBS No. 924
1 Oklahoma this state. The System shall be vested with the powers and
1
2 duties specified in this act Section 1101 et seq. of this title and
2
3 such other powers as may be necessary to enable it, its officers,
3
4 employees, and agents to carry out fully and effectively the
4
5 purposes and intent of this act Section 1101 et seq. of this title.
5
6 1. The Board shall distribute the corpus and income of the
6
7 System to the members and their beneficiaries in accordance with the
7
8 System's law. At no time prior to the satisfaction of all
8
9 liabilities with respect to members and their beneficiaries shall
9
10 any part of the corpus and income be used for, or diverted to,
10
11 purposes other than the exclusive benefit of the members and their
11
12 beneficiaries.
12
13 2. The Board may not engage in a transaction prohibited by
13
14 Section 503(b) of the federal Internal Revenue Code of 1986, as
14
15 amended.
15
16 3. The Board shall be responsible for the policies and rules
16
17 for the general administration of the System, subject to the
17
18 provisions of this act Section 1101 et seq. of this title. Except
18
19 as specifically provided in this act, the Uniform Retirement System
19
20 for Justices and Judges shall generally be managed in the same
20
21 manner as now or hereinafter provided by law or by rule for the
21
22 management of the Oklahoma Public Employees Retirement System.
22
23 4. The Board shall establish rules for the administration of
23
24 the System and for the transaction of its business consistent with
24
Req. No. 924 Page 14
RBS No. 924
1 law, which rules shall be promulgated in compliance with the
1
2 Administrative Procedures Act.
2
3 5. The Board may adopt all necessary actuarial tables to be
3
4 used in the operation of the System as recommended by the actuary
4
5 and may compile such additional data as may be necessary for
5
6 required actuarial valuation calculations.
6
7 6. All decisions of the Board as to questions of fact shall be
7
8 final and conclusive on all persons except for the right of review
8
9 as provided by law and except for fraud or such gross mistake of
9
10 fact as to have effect equivalent to fraud.
10
11 7. Any person who shall knowingly make any false statement, or
11
12 who shall falsify or permit to be falsified any record necessary for
12
13 carrying out the intent of this act Section 1101 et seq. of this
13
14 title for the purpose of committing fraud, shall be guilty of a
14
15 misdemeanor, and upon conviction shall be punished by a fine not
15
16 exceeding Five Hundred Dollars ($500.00) or by imprisonment for not
16
17 exceeding one (1) year. Should any error in any records of the
17
18 Uniform Retirement System for Justices and Judges result in any
18
19 member or beneficiary receiving more or less than he or she would
19
20 have been entitled to receive had the records been correct, the
20
21 Board shall correct such error, and, as far as practicable, make
21
22 future payments in such manner that the actuarial equivalent of the
22
23 benefit to which such member or beneficiary was entitled shall be
23
24 paid, and to this end, may recover any overpayments.
24
Req. No. 924 Page 15
RBS No. 924
1 B. The Board of Trustees of the Oklahoma Public Employees
1
2 Retirement System shall compile a quarterly financial report of all
2
3 the funds of the State Oklahoma Judicial Retirement Fund on a fiscal
3
4 year basis. The report shall be compiled pursuant to uniform
4
5 reporting standards prescribed by the Oklahoma State Pension
5
6 Commission for all state retirement systems. The report shall
6
7 include several relevant measures of investment value, including
7
8 acquisition cost and current fair market value with appropriate
8
9 summaries of total holdings and returns. The report shall contain
9
10 combined and individual rate of returns of the investment managers
10
11 by category of investment, over periods of time. The Board of
11
12 Trustees shall include in the quarterly reports all commissions,
12
13 fees or payments for investment services performed on behalf of the
13
14 Board of Trustees with respect to the State Oklahoma Judicial
14
15 Retirement Fund. The report shall be distributed to the Governor,
15
16 the Oklahoma State Pension Commission, the Legislative Service
16
17 Bureau, the Speaker of the House of Representatives and the
17
18 President Pro Tempore of the Senate. In lieu of compiling and
18
19 distributing the quarterly report, the Board may provide the Pension
19
20 Commission with direct access to the same data from the custodian
20
21 bank for the System.
21
22 C. There is hereby created the Retirement Medical Benefit Fund.
22
23 The fund shall to be maintained as a subaccount of the State
23
24 Oklahoma Judicial Retirement Fund. The Retirement Medical Benefit
24
Req. No. 924 Page 16
RBS No. 924
1 Fund is composed of all assets which may be contributed to this
1
2 subaccount to pay the retirement system's portion of the monthly
2
3 retiree health insurance premium benefit described by Section 1316.2
3
4 of Title 74 of the Oklahoma Statutes. All such allocated assets and
4
5 any earnings thereon in the Retirement Medical Benefit Fund shall be
5
6 held for the exclusive purpose of providing retiree medical
6
7 benefits. The Retirement Medical Benefit Fund is to be administered
7
8 in accordance with the requirements of Section 401(h) of the
8
9 Internal Revenue Code of 1986, as amended, from time to time. The
9
10 Board of Trustees may promulgate such rules as are necessary to
10
11 implement the funding and administration of the fund pursuant to the
11
12 provisions of this subsection.
12
13 D. After July 1 and before December 1 of each year, the Board
13
14 of Trustees of the Oklahoma Public Employees Retirement System shall
14
15 publish widely an annual report presented in simple and easily
15
16 understood language pursuant to uniform reporting standards
16
17 prescribed by the Oklahoma State Pension Commission for all state
17
18 retirement systems. The report shall be submitted to the Governor,
18
19 the Speaker of the House of Representatives, the President Pro
19
20 Tempore of the Senate, the Oklahoma State Pension Commission and the
20
21 members of the System. The annual report shall cover the operation
21
22 of the System during the past fiscal year, including income,
22
23 disbursements, and the financial condition of the System at the end
23
24 of the fiscal year. The annual report shall also contain the
24
Req. No. 924 Page 17
RBS No. 924
1 information issued in the quarterly reports required pursuant to
1
2 subsection B of this section as well as a summary of the results of
2
3 the most recent actuarial valuation to include total assets, total
3
4 liabilities, unfunded liability or overfunded status, contributions
4
5 and any other information deemed relevant by the Board of Trustees.
5
6 The annual report shall be written in such a manner as to permit a
6
7 readily understandable means for analyzing the financial condition
7
8 and performance of the System for the fiscal year.
8
9 E. The Board shall adopt a cost of living cost-of-living
9
10 adjustment actuarial assumption in its annual actuarial valuation
10
11 report.
11
12 F. 1. The Board may approve a two percent (2%) cost-of-living
12
13 adjustment, pursuant to the schedule prescribed by this subsection
13
14 for persons who have received benefits from the System for one or
14
15 more years. The Board may only approve a cost-of-living adjustment
15
16 when the System's funded ratio, according to the latest annual
16
17 actuarial valuation, exceeds a percentage as prescribed in paragraph
17
18 2 of this subsection. The funded ratio shall be maintained on a
18
19 rolling average for not less than three (3) years. Provided, a
19
20 cost-of-living adjustment shall not be granted if the adjustment
20
21 would cause the funding ratio of the System to drop below the
21
22 percentage which authorized the adjustment.
22
23 2. Except as provided in paragraph 1 of this subsection, a
23
24 cost-of-living adjustment may be approved by the Board if the funded
24
Req. No. 924 Page 18
RBS No. 924
1 ratio of the System exceeds eighty percent (80%). Subsequent cost-
1
2 of-living adjustments may be approved each time thereafter that the
2
3 System's funded ratio increases by two and one-half percent (2 1/2%)
3
4 from the percentage which authorized the previous cost-of-living
4
5 adjustment.
5
6 SECTION 4. AMENDATORY 47 O.S. 2021, Section 2-303.1, is
6
7 amended to read as follows:
7
8 Section 2-303.1. A. The Oklahoma Law Enforcement Retirement
8
9 Board shall discharge its duties with respect to the Oklahoma Law
9
10 Enforcement Retirement System solely in the interest of the
10
11 participants and beneficiaries and:
11
12 1. For the exclusive purpose of:
12
13 a. providing benefits to participants and their
13
14 beneficiaries, and
14
15 b. defraying reasonable expenses of administering the
15
16 System;
16
17 2. With the care, skill, prudence, and diligence under the
17
18 circumstances then prevailing that a prudent person acting in a like
18
19 capacity and familiar with such matters would use in the conduct of
19
20 an enterprise of a like character and with like aims;
20
21 3. By diversifying the investments of the System so as to
21
22 minimize the risk of large losses, unless under the circumstances it
22
23 is clearly prudent not to do so; and
23
24
24
Req. No. 924 Page 19
RBS No. 924
1 4. In accordance with the laws, documents and instruments
1
2 governing the System.
2
3 B. The Board may procure insurance indemnifying the members of
3
4 the Board from personal loss or accountability from liability
4
5 resulting from a member's action or inaction as a member of the
5
6 Board.
6
7 C. The Board may establish an investment committee. The
7
8 investment committee shall be composed of not more than five (5)
8
9 members of the Board appointed by the president of the Board. The
9
10 committee shall make recommendations to the full Board on all
10
11 matters related to the choice of custodians and managers of the
11
12 assets of the System, on the establishment of investment and fund
12
13 management guidelines, and in planning future investment policy.
13
14 The committee shall have no authority to act on behalf of the Board
14
15 in any circumstances whatsoever. No recommendation of the committee
15
16 shall have effect as an action of the Board nor take effect without
16
17 the approval of the Board as provided by law.
17
18 D. The Board shall retain qualified investment managers to
18
19 provide for the investment of the monies of the System. The
19
20 investment managers shall be chosen by a solicitation of proposals
20
21 on a competitive bid basis pursuant to standards set by the Board.
21
22 Subject to the overall investment guidelines set by the Board, the
22
23 investment managers shall have full discretion in the management of
23
24 those monies of the System allocated to the investment managers.
24
Req. No. 924 Page 20
RBS No. 924
1 The Board shall manage those monies not specifically allocated to
1
2 the investment managers. The monies of the System allocated to the
2
3 investment managers shall be actively managed by the investment
3
4 managers, which may include selling investments and realizing losses
4
5 if such action is considered advantageous to longer term return
5
6 maximization. Because of the total return objective, no distinction
6
7 shall be made for management and performance evaluation purposes
7
8 between realized and unrealized capital gains and losses.
8
9 E. All assets of the System shall be held in trust for the
9
10 exclusive purpose of providing benefits for the members and
10
11 beneficiaries of the System, including defraying reasonable expenses
11
12 of administering the System, and shall not be encumbered for or
12
13 diverted to any other purposes. Funds and revenues for investment
13
14 by the investment managers or the Board shall be placed with a
14
15 custodian selected by the Board. The custodian shall be a bank or
15
16 trust company offering pension fund master trustee and master
16
17 custodial services, and any related custodial agreement or trust
17
18 agreement is incorporated herein by reference. The custodian shall
18
19 be chosen by a solicitation of proposals on a competitive bid basis
19
20 pursuant to standards set by the Board. In compliance with the
20
21 investment policy guidelines of the Board, the custodian bank or
21
22 trust company shall be contractually responsible for ensuring that
22
23 all monies of the System are invested in income-producing investment
23
24 vehicles at all times. If a custodian bank or trust company has not
24
Req. No. 924 Page 21
RBS No. 924
1 received direction from the investment managers of the System as to
1
2 the investment of the monies of the System in specific investment
2
3 vehicles, the custodian bank or trust company shall be contractually
3
4 responsible to the Board for investing the monies in appropriately
4
5 collateralized short-term interest-bearing investment vehicles. Any
5
6 assets of the System may be invested in a collective investment fund
6
7 or in a group trust provided the investment in such collective
7
8 investment fund or group trust is in compliance with the provisions
8
9 of Rev. Rul. Revenue Ruling 81-100, as further amended by Rev. Rul.
9
10 Revenue Ruling 2004-67, Rev. Rul. Revenue Ruling 2008-40, and Rev.
10
11 Rul. Revenue Ruling 2011-1, or any successor ruling, regulation, or
11
12 similar pronouncement. Each such collective investment fund or
12
13 group trust is adopted with respect to any monies invested therein,
13
14 as part of the System, its trust and custodial agreement, and the
14
15 provisions of such trust agreement or such declaration of trust and
15
16 related adoption, participation, investment management, subtrust or
16
17 other agreements, as amended from time to time, with respect to any
17
18 monies invested therein, are incorporated by reference into the
18
19 System, its trust agreement(s) or custodial agreement(s), upon
19
20 approval by the Board.
20
21 F. Prior to August 1 of each year, the Board shall develop a
21
22 written investment plan for the System.
22
23 G. The Board shall compile a quarterly financial report of all
23
24 the funds of the System on a fiscal year basis. The report shall be
24
Req. No. 924 Page 22
RBS No. 924
1 compiled pursuant to uniform reporting standards prescribed by the
1
2 Oklahoma State Pension Commission for all state retirement systems.
2
3 The report shall include several relevant measures of investment
3
4 value, including acquisition cost and current fair market value with
4
5 appropriate summaries of total holdings and returns. The report
5
6 shall contain combined and individual rate of returns of the
6
7 investment managers by category of investment, over periods of time.
7
8 The Board shall include in the quarterly reports all commissions,
8
9 fees or payments for investment services performed on behalf of the
9
10 Board. The report shall be distributed to the Governor, the
10
11 Oklahoma State Pension Commission, the Legislative Service Bureau,
11
12 the Speaker of the House of Representatives and the President Pro
12
13 Tempore of the Senate.
13
14 H. After July 1 and before October 31 of each year, the Board
14
15 shall publish widely an annual report presented in simple and easily
15
16 understood language pursuant to uniform reporting standards
16
17 prescribed by the Oklahoma State Pension Commission for all state
17
18 retirement systems. The report shall be submitted to the Governor,
18
19 the Speaker of the House of Representatives, the President Pro
19
20 Tempore of the Senate, the Oklahoma State Pension Commission and the
20
21 members of the System. The annual report shall cover the operation
21
22 of the System during the past fiscal year, including income,
22
23 disbursements, and the financial condition of the System at the end
23
24 of the fiscal year. The annual report shall also contain the
24
Req. No. 924 Page 23
RBS No. 924
1 information issued in the quarterly reports required pursuant to
1
2 subsection G of this section as well as a summary of the results of
2
3 the most recent actuarial valuation to include total assets, total
3
4 liabilities, unfunded liability or over funded status, contributions
4
5 and any other information deemed relevant by the Board. The annual
5
6 report shall be written in such a manner as to permit a readily
6
7 understandable means for analyzing the financial condition and
7
8 performance of the System for the fiscal year. The annual financial
8
9 statements must be audited and filed in accordance with the
9
10 requirements set forth for financial statement audits in Section
10
11 212A of Title 74 of the Oklahoma Statutes.
11
12 I. The Board may retain an attorney licensed to practice law in
12
13 this state. The attorney shall serve at the pleasure of the Board
13
14 for such compensation as set by the Board. The Attorney General
14
15 shall furnish such legal services as may be requested by the Board.
15
16 J. All information, documents and copies thereof contained in a
16
17 member's retirement file shall be given confidential treatment and
17
18 shall not be made public by the System without the prior written
18
19 consent of the member to which it pertains, but shall be subject
19
20 only to court order. Provided, the System, its employees or
20
21 attorneys, may use such records in defense of any action brought
21
22 against the System.
22
23 K. Effective July 1, 1999, the Board is hereby authorized to do
23
24 all acts and things necessary and proper to carry out the purpose of
24
Req. No. 924 Page 24
RBS No. 924
1 the System and to make the least costly amendments and changes, if
1
2 any, as may be necessary to qualify the System under the applicable
2
3 sections of the Internal Revenue Code of 1986, as amended.
3
4 L. The Executive Director and such employees of the System as
4
5 the Executive Director may designate are hereby authorized to
5
6 prepare certified copies of records of the System and every such
6
7 certified copy shall be admissible in any proceeding in any court in
7
8 like manner as the original thereof.
8
9 M. On or after July 1, 2011, the Board may permit, effective
9
10 for applicable notices, elections and consents provided or made for
10
11 a member, beneficiary, alternate payee or individual entitled to
11
12 benefits under the System, the use of electronic media to provide
12
13 applicable notices and make such elections and consents as described
13
14 in Section 1.401(a)-21 of the Income Tax Regulations.
14
15 N. The Board shall develop such procedures and may require such
15
16 information from the distributing plan as it deems necessary to
16
17 reasonably conclude that a potential rollover contribution is a
17
18 valid rollover contribution under Section 1.401(a)(31)-1, Q&A-
18
19 14(b)(2), of the Income Tax Regulations.
19
20 O. 1. The Board may approve a two percent (2%) cost-of-living
20
21 adjustment, pursuant to the schedule prescribed by this subsection
21
22 for persons who have received benefits from the System for one or
22
23 more years. The Board may only approve a cost-of-living adjustment
23
24 when the System's funded ratio, according to the latest annual
24
Req. No. 924 Page 25
RBS No. 924
1 actuarial valuation, exceeds a percentage as prescribed in paragraph
1
2 2 of this subsection. The funded ratio shall be maintained on a
2
3 rolling average for not less than three (3) years. Provided, a
3
4 cost-of-living adjustment shall not be granted if the adjustment
4
5 would cause the funding ratio of the System to drop below the
5
6 percentage which authorized the adjustment.
6
7 2. Except as provided in paragraph 1 of this subsection, a
7
8 cost-of-living adjustment may be approved by the Board if the funded
8
9 ratio of the System exceeds eighty percent (80%). Subsequent cost-
9
10 of-living adjustments may be approved each time thereafter that the
10
11 System's funded ratio increases by two and one-half percent (2 1/2%)
11
12 from the percentage which authorized the previous cost-of-living
12
13 adjustment.
13
14 SECTION 5. AMENDATORY 70 O.S. 2021, Section 17-106.1, is
14
15 amended to read as follows:
15
16 Section 17-106.1. A. The Board of Trustees of the Teachers'
16
17 Retirement System of Oklahoma shall discharge their duties with
17
18 respect to the System solely in the interest of the participants and
18
19 beneficiaries and:
19
20 1. For the exclusive purpose of:
20
21 a. providing benefits to participants and their
21
22 beneficiaries, and
22
23 b. defraying reasonable expenses of administering the
23
24 System;
24
Req. No. 924 Page 26
RBS No. 924
1 2. With the care, skill, prudence, and diligence under the
1
2 circumstances then prevailing that a prudent person acting in a like
2
3 capacity and familiar with such matters would use in the conduct of
3
4 an enterprise of a like character and with like aims;
4
5 3. By diversifying the investments of the System so as to
5
6 minimize the risk of large losses, unless under the circumstances it
6
7 is clearly prudent not to do so; and
7
8 4. In accordance with the laws, documents and instruments
8
9 governing the System.
9
10 B. The Board of Trustees of the Teachers' Retirement System of
10
11 Oklahoma may invest the assets of the System in real property owned
11
12 or to be acquired by the State of Oklahoma state. It is further
12
13 authorized to acquire, exchange, and grant any real property under
13
14 its jurisdiction as is necessary to carry out the investment in the
14
15 real property. The Board of Trustees of the Teachers' Retirement
15
16 System of Oklahoma is authorized to invest not more than ten percent
16
17 (10%) of the total value of assets of the System in connection with
17
18 such investments. Limitations on investment of the assets of the
18
19 System provided herein shall be determined as of the date of its
19
20 making or acquisition.
20
21 C. The Board of Trustees may procure insurance indemnifying the
21
22 members of the Board of Trustees from personal loss or
22
23 accountability from liability resulting from a member's action or
23
24 inaction as a member of the Board.
24
Req. No. 924 Page 27
RBS No. 924
1 D. The Board of Trustees may establish an investment committee.
1
2 The investment committee shall be composed of not more than five (5)
2
3 members of the Board of Trustees appointed by the chairman of the
3
4 Board of Trustees. The committee shall make recommendations to the
4
5 full Board of Trustees on all matters related to the choice of
5
6 custodians and managers of the assets of the System, on the
6
7 establishment of investment and fund management guidelines, and in
7
8 planning future investment policy. The committee shall have no
8
9 authority to act on behalf of the Board of Trustees in any
9
10 circumstances whatsoever. No recommendation of the committee shall
10
11 have effect as an action of the Board of Trustees nor take effect
11
12 without the approval of the Board of Trustees as provided by law.
12
13 E. The Board of Trustees may retain qualified investment
13
14 managers to provide for the investment of the monies of the System.
14
15 The investment managers shall be chosen by a solicitation of
15
16 proposals on a competitive bid basis pursuant to standards set by
16
17 the Board of Trustees. Subject to the overall investment guidelines
17
18 set by the Board of Trustees, the investment managers shall have
18
19 full discretion in the management of those monies of the System
19
20 allocated to the investment managers. The Board of Trustees shall
20
21 manage those monies not specifically allocated to the investment
21
22 managers. The monies of the System allocated to the investment
22
23 managers shall be actively managed by the investment managers, which
23
24 may include selling investments and realizing losses if such action
24
Req. No. 924 Page 28
RBS No. 924
1 is considered advantageous to longer term return maximization.
1
2 Because of the total return objective, no distinction shall be made
2
3 for management and performance evaluation purposes between realized
3
4 and unrealized capital gains and losses.
4
5 F. Funds and revenues for investment by the investment managers
5
6 or the Board of Trustees shall be placed with a custodian selected
6
7 by the Board of Trustees. The custodian shall be a bank or trust
7
8 company offering pension fund master trustee and master custodial
8
9 services. The custodian shall be chosen by a solicitation of
9
10 proposals on a competitive bid basis pursuant to standards set by
10
11 the Board of Trustees. In compliance with the investment policy
11
12 guidelines of the Board of Trustees, the custodian bank or trust
12
13 company shall be contractually responsible for ensuring that all
13
14 monies of the System are invested in income-producing investment
14
15 vehicles at all times. If a custodian bank or trust company has not
15
16 received direction from the investment managers of the System as to
16
17 the investment of the monies of the System in specific investment
17
18 vehicles, the custodian bank or trust company shall be contractually
18
19 responsible to the Board of Trustees for investing the monies in
19
20 appropriately collateralized short-term interest-bearing investment
20
21 vehicles.
21
22 G. By November 1, 1988, and prior to August 1 of each year
22
23 thereafter, the Board of Trustees shall develop a written investment
23
24 plan for the System.
24
Req. No. 924 Page 29
RBS No. 924
1 H. The Board of Trustees shall compile a quarterly financial
1
2 report of all the funds of the System on a fiscal year basis. The
2
3 report shall be compiled pursuant to uniform reporting standards
3
4 prescribed by the Oklahoma State Pension Commission for all state
4
5 retirement systems. The report shall include several relevant
5
6 measures of investment value, including acquisition cost and current
6
7 fair market value with appropriate summaries of total holdings and
7
8 returns. The report shall contain combined and individual rate of
8
9 returns of the investment managers by category of investment, over
9
10 periods of time. The Board of Trustees shall include in the
10
11 quarterly reports all commissions, fees or payments for investment
11
12 services performed on behalf of the Board. The report shall be
12
13 distributed to the Governor, the Oklahoma State Pension Commission,
13
14 the Legislative Service Bureau, the Speaker of the House of
14
15 Representatives and the President Pro Tempore of the Senate. In
15
16 lieu of compiling and distributing the quarterly report, the Board
16
17 may provide the Oklahoma State Pension Commission with direct access
17
18 to the same data from the custodian bank for the System.
18
19 I. After July 1 and before December 1 of each year, the Board
19
20 of Trustees shall publish widely an annual report presented in
20
21 simple and easily understood language pursuant to uniform reporting
21
22 standards prescribed by the Oklahoma State Pension Commission for
22
23 all state retirement systems. The report shall be submitted to the
23
24 Governor, the Speaker of the House of Representatives, the President
24
Req. No. 924 Page 30
RBS No. 924
1 Pro Tempore of the Senate, the Oklahoma State Pension Commission and
1
2 the members of the System. The annual report shall cover the
2
3 operation of the System during the past fiscal year, including
3
4 income, disbursements, and the financial condition of the System at
4
5 the end of the fiscal year. The annual report shall also contain
5
6 the information issued in the quarterly reports required pursuant to
6
7 subsection H of this section as well as a summary of the results of
7
8 the most recent actuarial valuation to include total assets, total
8
9 liabilities, unfunded liability or over funded status, contributions
9
10 and any other information deemed relevant by the Board of Trustees.
10
11 The annual report shall be written in such a manner as to permit a
11
12 readily understandable means for analyzing the financial condition
12
13 and performance of the System for the fiscal year.
13
14 J. 1. The Board of Trustees may approve a two percent (2%)
14
15 cost-of-living adjustment, pursuant to the schedule prescribed by
15
16 this subsection for persons who have received benefits from the
16
17 System for one or more years. The Board of Trustees may only
17
18 approve a cost-of-living adjustment when the System's funded ratio,
18
19 according to the latest annual actuarial valuation, exceeds a
19
20 percentage as prescribed in paragraph 2 of this subsection. The
20
21 funded ratio shall be maintained on a rolling average for not less
21
22 than three (3) years. Provided, a cost-of-living adjustment shall
22
23 not be granted if the adjustment would cause the funding ratio of
23
24
24
Req. No. 924 Page 31
RBS No. 924
1 the System to drop below the percentage which authorized the
1
2 adjustment.
2
3 2. Except as provided in paragraph 1 of this subsection, a
3
4 cost-of-living adjustment may be approved by the Board of Trustees
4
5 if the funded ratio of the System exceeds eighty percent (80%).
5
6 Subsequent cost-of-living adjustments may be approved each time
6
7 thereafter that the System's funded ratio increases by two and one-
7
8 half percent (2 1/2%) from the percentage which authorized the
8
9 previous cost-of-living adjustment.
9
10 SECTION 6. AMENDATORY 74 O.S. 2021, Section 905, is
10
11 amended to read as follows:
11
12 Section 905. (1) A. There shall be a Board of Trustees of the
12
13 Oklahoma Public Employees Retirement System which shall consist of
13
14 fourteen (14) members as follows and all appointees shall serve
14
15 their terms at the pleasure of the appointing authority and may be
15
16 removed or replaced without cause: a member of the Corporation
16
17 Commission or the Commission's designee selected by the Corporation
17
18 Commission, the Director of the Office of Management and Enterprise
18
19 Services or the Director's designee, the State Insurance
19
20 Commissioner or the Commissioner's designee, the Director of Human
20
21 Capital Management of the Office of Management and Enterprise
21
22 Services, a member of the Oklahoma Tax Commission selected by the
22
23 Tax Commission, the State Treasurer or the Treasurer's designee,
23
24 three members appointed by the Governor, one member appointed by the
24
Req. No. 924 Page 32
RBS No. 924
1 Supreme Court, two members appointed by the Speaker of the House of
1
2 Representatives and two members appointed by the President Pro
2
3 Tempore of the State Senate. One member appointed by the Governor
3
4 shall be an active member of the System. One member appointed by
4
5 the Speaker shall be an active member of the System. One member
5
6 appointed by the President Pro Tempore shall be a retired member of
6
7 the System.
7
8 (2) B. The member of the Board of Trustees on July 1, 1988, who
8
9 was appointed by the Supreme Court shall complete the term of office
9
10 for which the member was appointed. The members thereafter
10
11 appointed by the Supreme Court shall serve terms of office of four
11
12 (4) years.
12
13 (3) C. Members of the Board of Trustees on July 1, 1988, who
13
14 were appointed by the Speaker of the House of Representatives or by
14
15 the President Pro Tempore of the Senate shall complete their term of
15
16 office for which they were appointed. The initial term of office of
16
17 members appointed thereafter shall expire on January 8, 1991. The
17
18 members thereafter appointed by the Speaker of the House of
18
19 Representatives and by the President Pro Tempore of the Senate shall
19
20 serve terms of office of four (4) years.
20
21 (4) D. The initial term of office of the members appointed by
21
22 the Governor shall expire on January 14, 1991. The members
22
23 thereafter appointed by the Governor shall serve a term of office of
23
24
24
Req. No. 924 Page 33
RBS No. 924
1 four (4) years which is coterminous with the term of office of the
1
2 office of the appointing authority.
2
3 (5) E. One of the members appointed to the Board by the
3
4 Speaker of the House of Representatives and by the President Pro
4
5 Tempore of the Senate and two members appointed to the Board by the
5
6 Governor shall:
6
7 (a) have 1. Have demonstrated professional experience in
7
8 investment or funds management, public funds management, public or
8
9 private pension fund management or retirement system management,;
9
10 (b) have 2. Have demonstrated experience in the banking
10
11 profession and have demonstrated professional experience in
11
12 investment or funds management,;
12
13 (c) be 3. Be licensed to practice law in this state and have
13
14 demonstrated professional experience in commercial matters,; or
14
15 (d) be 4. Be licensed by the Oklahoma Accountancy Board to
15
16 practice in this state as a public accountant or a certified public
16
17 accountant.
17
18 The appointing authorities, in making appointments that conform
18
19 to the requirements of this subsection, shall give due consideration
19
20 to balancing the appointments among the criteria specified in
20
21 paragraphs (a) 1 through (d) 4 of this subsection.
21
22 (6) F. No member of the Board of Trustees shall be a lobbyist
22
23 registered in this state as provided by law.
23
24
24
Req. No. 924 Page 34
RBS No. 924
1 (7) G. Any vacancy that occurs on the Board of Trustees shall
1
2 be filled for the unexpired term in the same manner as the office
2
3 was previously filled.
3
4 (8) H. Notwithstanding any of the provisions of this section to
4
5 the contrary, any person serving as an appointed member of the Board
5
6 on July 1, 1988, shall be eligible for reappointment when the term
6
7 of office of the member expires.
7
8 (9) I. The Board shall elect one of its members as Chairman
8
9 chair of the Board at its annual meeting. He or she shall preside
9
10 over meetings of the Board and perform such other duties as may be
10
11 required by the Board.
11
12 (10) J. The Board shall also elect another member to serve as
12
13 Vice Chairman vice chair, and the Vice Chairman vice chair shall
13
14 perform duties of Chairman chair in the absence of the latter or
14
15 upon his or her inability or refusal to act.
15
16 K. 1. The Board may approve a two percent (2%) cost-of-living
16
17 adjustment, pursuant to the schedule prescribed by this subsection
17
18 for persons who have received benefits from the System for one or
18
19 more years. The Board may only approve a cost-of-living adjustment
19
20 when the System's funded ratio, according to the latest annual
20
21 actuarial valuation, exceeds a percentage as prescribed in paragraph
21
22 2 of this subsection. The funded ratio shall be maintained on a
22
23 rolling average for not less than three (3) years. Provided, a
23
24 cost-of-living adjustment shall not be granted if the adjustment
24
Req. No. 924 Page 35
RBS No. 924
1 would cause the funding ratio of the System to drop below the
1
2 percentage which authorized the adjustment.
2
3 2. Except as provided in paragraph 1 of this subsection, a
3
4 cost-of-living adjustment may be approved by the Board if the funded
4
5 ratio of the System exceeds eighty percent (80%). Subsequent cost-
5
6 of-living adjustments may be approved each time thereafter that the
6
7 System's funded ratio increases by two and one-half percent (2 1/2%)
7
8 from the percentage which authorized the previous cost-of-living
8
9 adjustment.
9
10 SECTION 7. AMENDATORY 62 O.S. 2021, Section 3103, as
10
11 last amended by Section 127, Chapter 452, O.S.L. 2024 (62 O.S. Supp.
11
12 2024, Section 3103), is amended to read as follows:
12
13 Section 3103. As used in the Oklahoma Pension Legislation
13
14 Actuarial Analysis Act:
14
15 1. "Amendment" means any amendment including a substitute bill,
15
16 made to a retirement bill by any committee of the House of
16
17 Representatives or Senate, any conference committee of the House or
17
18 Senate or by the House or Senate;
18
19 2. "RB number" means that number preceded by the letters "RB"
19
20 assigned to a retirement bill by the respective staffs of the
20
21 Oklahoma State Senate and the Oklahoma House of Representatives when
21
22 the respective staff office prepares a retirement bill for a member
22
23 of the Legislature;
23
24
24
Req. No. 924 Page 36
RBS No. 924
1 3. "Legislative Actuary" means the firm or entity that enters
1
2 into a contract with the Legislative Service Bureau pursuant to
2
3 Section 452.15 of Title 74 of the Oklahoma Statutes to provide the
3
4 actuarial services and other duties provided for in the Oklahoma
4
5 Pension Legislation Actuarial Analysis Act;
5
6 4. "Nonfiscal amendment" means an amendment to a retirement
6
7 bill having a fiscal impact, which amendment does not change any
7
8 factor of an actuarial investigation specified in subsection A of
8
9 Section 3109 of this title;
9
10 5. "Nonfiscal retirement bill" means a retirement bill:
10
11 a. which does not affect the cost or funding factors of a
11
12 retirement system,
12
13 b. which affects such factors only in a manner which does
13
14 not:
14
15 (1) grant a benefit increase under the retirement
15
16 system affected by the bill,
16
17 (2) create an actuarial accrued liability for or
17
18 increase the actuarial accrued liability of the
18
19 retirement system affected by the bill, or
19
20 (3) increase the normal cost of the retirement system
20
21 affected by the bill,
21
22 c. which authorizes the purchase by an active member of
22
23 the retirement system, at the actuarial cost for the
23
24 purchase as computed pursuant to the statute in effect
24
Req. No. 924 Page 37
RBS No. 924
1 on the effective date of the measure allowing such
1
2 purchase, of years of service for purposes of reaching
2
3 a normal retirement date in the applicable retirement
3
4 system, but which cannot be used in order to compute
4
5 the number of years of service for purposes of
5
6 computing the retirement benefit for the member,
6
7 d. which provides for the computation of a service-
7
8 connected disability retirement benefit for members of
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9 the Oklahoma Law Enforcement Retirement System
9
10 pursuant to Section 2-305 of Title 47 of the Oklahoma
10
11 Statutes if the members were unable to complete twenty
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12 (20) years of service as a result of the disability,
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13 e. which requires membership in the defined benefit plan
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14 authorized by Section 901 et seq. of Title 74 of the
14
15 Oklahoma Statutes for persons whose first elected or
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16 appointed service occurs on or after November 1, 2018,
16
17 if such persons had any prior service in the Oklahoma
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18 Public Employees Retirement System prior to November
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19 1, 2015,
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20 f. which provides for a one-time increase in retirement
20
21 benefits if the increase in retirement benefits is not
21
22 a permanent increase in the gross annual retirement
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23 benefit payable to a member or beneficiary, occurs
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RBS No. 924
1 only once pursuant to a single statutory authorization
1
2 and does not exceed:
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3 (1) the lesser of two percent (2%) of the gross
3
4 annual retirement benefit of the member or One
4
5 Thousand Dollars ($1,000.00) and requires that
5
6 the benefit may only be provided if the funded
6
7 ratio of the affected retirement system would not
7
8 be less than sixty percent (60%) but not greater
8
9 than eighty percent (80%) after the benefit
9
10 increase is paid,
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11 (2) the lesser of two percent (2%) of the gross
11
12 annual retirement benefit of the member or One
12
13 Thousand Two Hundred Dollars ($1,200.00) and
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14 requires that the benefit may only be provided if
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15 the funded ratio of the affected retirement
15
16 system would be greater than eighty percent (80%)
16
17 but not greater than one hundred percent (100%)
17
18 after the benefit increase is paid,
18
19 (3) the lesser of two percent (2%) of the gross
19
20 annual retirement benefit of the member or One
20
21 Thousand Four Hundred Dollars ($1,400.00) and
21
22 requires that the benefit may only be provided if
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23 the funded ratio of the affected retirement
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24
24
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RBS No. 924
1 system would be greater than one hundred percent
1
2 (100%) after the benefit increase is paid, or
2
3 (4) the greater of two percent (2%) of the gross
3
4 annual retirement benefit of the volunteer
4
5 firefighter or One Hundred Dollars ($100.00) for
5
6 persons who retired from the Oklahoma
6
7 Firefighters Pension and Retirement System as
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8 volunteer firefighters and who did not retire
8
9 from the Oklahoma Firefighters Pension and
9
10 Retirement System as a paid firefighter.
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11 As used in this subparagraph, "funded ratio" means the
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12 figure derived by dividing the actuarial value of
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13 assets of the applicable retirement system by the
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14 actuarial accrued liability of the applicable
14
15 retirement system,
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16 g. which modifies the disability pension standard for
16
17 police officers who are members of the Oklahoma Police
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18 Pension and Retirement System as provided by Section
18
19 50-115 of Title 11 of the Oklahoma Statutes,
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20 h. which provides a cost-of-living benefit increase
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21 pursuant to the provisions of:
21
22 (1) Section 49-143.7 of Title 11 of the Oklahoma
22
23 Statutes,
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24
24
Req. No. 924 Page 40
RBS No. 924
1 (2) Section 50-136.9 of Title 11 of the Oklahoma
1
2 Statutes,
2
3 (3) Section 1104K of Title 20 of the Oklahoma
3
4 Statutes,
4
5 (4) Section 2-305.12 of Title 47 of the Oklahoma
5
6 Statutes,
6
7 (5) Section 17-116.22 of Title 70 of the Oklahoma
7
8 Statutes, or
8
9 (6) Section 930.11 of Title 74 of the Oklahoma
9
10 Statutes,
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11 i. which provides for the reinstatement of retirement
11
12 benefits for members of the Oklahoma Law Enforcement
12
13 Retirement System pursuant to Section 2-305 of Title
13
14 47 of the Oklahoma Statutes for those who were hired
14
15 on or after November 1, 2012, or May 24, 2013,
15
16 j. which authorizes the purchase of military service
16
17 credit as provided in Section 50-128 of Title 11,
17
18 Section 1102.2 of Title 20, Section 2-307.4 of Title
18
19 47, and Section 913.8 of Title 74 of the Oklahoma
19
20 Statutes,
20
21 k. which restores benefits pursuant to Sections 49-100.1,
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22 49-101, 49-101.2, 49-106.1, 49-108, 49-117.1, and 49-
22
23 135 of Title 11 of the Oklahoma Statutes,
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24
24
Req. No. 924 Page 41
RBS No. 924
1 l. which modifies the computation of the line-of-duty
1
2 disability benefit pursuant to the provisions of this
2
3 act Sections 50-101 and 50-115 of Title 11 of the
3
4 Oklahoma Statutes, or
4
5 m. which provides a mechanism for boards of Oklahoma
5
6 retirement systems to approve cost-of-living
6
7 adjustments under certain circumstances.
7
8 A nonfiscal retirement bill shall include any retirement bill that
8
9 has as its sole purpose the appropriation or distribution or
9
10 redistribution of monies in some manner to a retirement system for
10
11 purposes of reducing the unfunded liability of such system or the
11
12 earmarking of a portion of the revenue from a tax to a retirement
12
13 system or increasing the percentage of the revenue earmarked from a
13
14 tax to a retirement system;
14
15 6. "Reduction-in-cost amendment" means an amendment to a
15
16 retirement bill having a fiscal impact which reduces the cost of the
16
17 bill as such cost is determined by the actuarial investigation for
17
18 the bill prepared pursuant to Section 3109 of this title;
18
19 7. "Retirement bill" means any bill or joint resolution
19
20 introduced or any bill or joint resolution amended by a member of
20
21 the Oklahoma Legislature which creates or amends any law directly
21
22 affecting a retirement system. A retirement bill shall not mean a
22
23 bill or resolution that impacts the revenue of any state tax in
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24
24
Req. No. 924 Page 42
RBS No. 924
1 which a portion of the revenue generated from such tax is earmarked
1
2 for the benefit of a retirement system;
2
3 8. "Retirement bill having a fiscal impact" means any
3
4 retirement bill creating or establishing a retirement system and any
4
5 other retirement bill other than a nonfiscal retirement bill; and
5
6 9. "Retirement system" means the Teachers' Retirement System of
6
7 Oklahoma, the Oklahoma Public Employees Retirement System, the
7
8 Uniform Retirement System for Justices and Judges, the Oklahoma
8
9 Firefighters Pension and Retirement System, the Oklahoma Police
9
10 Pension and Retirement System, the Oklahoma Law Enforcement
10
11 Retirement System, or a retirement system established after January
11
12 1, 2006.
12
13 SECTION 8. Sections 1 through 6 of this act shall become
13
14 effective November 1, 2025.
14
15 SECTION 9. Section 7 of this act shall become effective in
15
16 accordance with the provisions of Section 58 of Article V of the
16
17 Oklahoma Constitution.
17
18
18
19 60-1-924 RD 12/30/2024 12:37:19 PM
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Req. No. 924 Page 43Every fact on this page links to its source, starting with the official bill record.