RBS No. 382
1 STATE OF OKLAHOMA
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2 1st Session of the 59th Legislature (2023)
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3 SENATE BILL 102 By: Garvin
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6 AS INTRODUCED
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7 An Act relating to the Oklahoma Police Pension and
7 Retirement System; amending 11 O.S. 2021, Sections
8 50-101, as amended by Section 2, Chapter 306, O.S.L.
8 2022 (11 O.S. Supp. 2022, Section 50-101), 50-110,
9 and 50-111.1, which relate to definitions, employee
9 contributions, and termination of employment;
10 modifying definition; increasing minimum employee
10 contribution for certain members of System;
11 increasing computation of certain monthly benefits;
11 and updating statutory language.
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15 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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16 SECTION 1. AMENDATORY 11 O.S. 2021, Section 50-101, as
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17 amended by Section 2, Chapter 306, O.S.L. 2022 (11 O.S. Supp. 2022,
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18 Section 50-101), is amended to read as follows:
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19 Section 50-101. As used in this article:
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20 1. “System” means the Oklahoma Police Pension and Retirement
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21 System and all predecessor municipal Police Pension and Retirement
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22 Systems;
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23 2. “Article” means Article 50 of this title;
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1 3. “State Board” means the Oklahoma Police Pension and
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2 Retirement Board;
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3 4. “Fund” means the Oklahoma Police Pension and Retirement
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4 Fund;
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5 5. “Officer” means any duly appointed and sworn full-time
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6 officer of the regular police department of a municipality whose
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7 duties are to preserve the public peace, protect life and property,
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8 prevent crime, serve warrants, enforce all laws and municipal
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9 ordinances of this state, and any political subdivision thereof, and
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10 who is authorized to bear arms in the execution of such duties;
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11 6. “Member” means all eligible officers of a participating
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12 municipality and any person hired by a participating municipality
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13 who is undergoing police training to become a permanent police
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14 officer of the municipality. Effective July 1, 1987, a member does
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15 not include a “leased employee” as defined under Section 414(n)(2)
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16 of the Internal Revenue Code of 1986, as amended. Effective July 1,
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17 1999, any individual who agrees with the participating municipality
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18 that the individual’s services are to be performed as a leased
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19 employee or an independent contractor shall not be a member
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20 regardless of any classification as a common law employee by the
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21 Internal Revenue Service or any other governmental agency, or any
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22 court of competent jurisdiction. A member shall include eligible
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23 commissioned officers of the Oklahoma State Bureau of Narcotics and
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24 Dangerous Drugs Control, the Oklahoma State Bureau of Investigation,
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1 and the Alcoholic Beverage Laws Enforcement Commission who elect to
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2 participate in the System pursuant to Section 50-111.5 of this
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3 title;
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4 7. “Normal retirement date” means the date at which the member
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5 is eligible to receive the unreduced payments of the member’s
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6 accrued retirement benefit. Such date shall be the first day of the
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7 month coinciding with or following the date the member completes
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8 twenty (20) years of credited service. If the member’s employment
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9 continues past the normal retirement date of the member, the actual
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10 retirement date of the member shall be the first day of the month
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11 after the member terminates employment with more than twenty (20)
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12 years of credited service;
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13 8. “Credited service” means the period of service used to
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14 determine the eligibility for and the amount of benefits payable to
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15 a member. Credited service shall consist of the period during which
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16 the member participated in the System or the predecessor municipal
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17 systems as an active employee in an eligible membership
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18 classification, plus any service prior to the establishment of the
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19 predecessor municipal systems which was credited under the
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20 predecessor municipal systems or credited service granted by the
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21 State Board;
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22 9. “Participating municipality” means a municipality which is
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23 making contributions to the System on behalf of its officers. The
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24 Oklahoma State Bureau of Narcotics and Dangerous Drugs Control, the
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1 Oklahoma State Bureau of Investigation, and the Alcoholic Beverage
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2 Laws Enforcement Commission shall be treated in the same manner as a
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3 participating municipality only regarding those members who elect to
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4 participate in the System pursuant to Section 50-111.5 of this
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5 title;
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6 10. “Permanent total disability” means incapacity due to
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7 accidental injury or occupational disease, to earn any wages in the
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8 employment for which the member is physically suited and reasonably
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9 fitted through education, training or experience. Further, the
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10 member must be declared one hundred percent (100%) impaired as
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11 defined by the “American Medical Association’s Guides to the
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12 Evaluation of Permanent Impairment” on the basis of a physical
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13 medical examination by a physician licensed to practice medicine in
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14 this state, as selected by the State Board;
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15 11. “Permanent partial disability” means permanent disability
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16 which is less than permanent total disability as defined in this
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17 section. The member must be declared no greater than ninety-nine
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18 percent (99%) impaired as defined by the “American Medical
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19 Association’s Guides to the Evaluation of Permanent Impairment” on
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20 the basis of a physical medical examination by a physician licensed
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21 to practice medicine in this state, as selected by the State Board;
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22 12. “Permanent in-line disability” means when a police officer
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23 serving in any capacity at a regular police department of a
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24 participating municipality becomes so physically or mentally
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1 disabled, as determined by an independent medical examiner,
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2 psychiatrist, or psychologist selected by the State Board, while in,
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3 and in consequence of, the performance of authorizing activities
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4 while on duty as an officer that he or she is unable to perform the
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5 required duties of a police officer;
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6 13. “Beneficiary” means a member’s surviving spouse or any
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7 surviving children, including biological and adopted children, at
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8 the time of the member’s death. The surviving spouse must have been
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9 married to the member for the thirty (30) continuous months
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10 immediately preceding the member’s death, provided a surviving
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11 spouse of a member who died while in, and as a consequence of, the
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12 performance of the member’s duty for a participating municipality,
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13 shall not be subject to the thirty-month marriage requirement for
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14 survivor benefits. A surviving child of a member shall be a
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15 beneficiary until reaching eighteen (18) years of age or twenty-two
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16 (22) years of age if the child is enrolled full time and regularly
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17 attending a public or private school or any institution of higher
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18 education. Any child adopted by a member after the member’s
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19 retirement shall be a beneficiary only if the child is adopted by
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20 the member for the thirty (30) continuous months preceding the
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21 member’s death. Any child who is adopted by a member after the
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22 member’s retirement and such member dies accidentally or as a
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23 consequence of the performance of the member’s duty as a police
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24 officer shall not be subject to the thirty-month adoption
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1 requirement. This definition of beneficiary shall be in addition to
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2 any other requirement set forth in this article;
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3 14. “Executive Director” means the managing officer of the
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4 System employed by the State Board;
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5 15. “Eligible employer” means any municipality with a municipal
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6 police department;
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7 16. “Entry date” means the date as of which an eligible
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8 employer joins the System. The first entry date pursuant to this
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9 article shall be January 1, 1981;
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10 17. “Final average salary” means the average paid base salary
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11 of the member for normally scheduled hours over the highest salaried
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12 thirty (30) consecutive months of the last sixty (60) months of
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13 credited service. Effective July 1, 2016, the following shall apply
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14 in computing final average salary:
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15 a. only paid base salary on which required contributions
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16 have been made shall be used in computing a member’s
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17 final average salary,
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18 b. for purposes of determining the normal disability
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19 benefit only, final average salary shall be based on
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20 the member’s total service if less than thirty (30)
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21 months,
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22 c. in addition to other applicable limitations, and
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23 notwithstanding any other provision to the contrary,
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24 for plan years beginning on or after July 1, 2002, the
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1 annual compensation of each “Noneligible Member” taken
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2 into account under the System shall not exceed the
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3 Economic Growth and Tax Relief Reconciliation Act of
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4 2001 (EGTRRA) annual compensation limit. The EGTRRA
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5 annual compensation limit is Two Hundred Thousand
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6 Dollars ($200,000.00), as adjusted by the Commissioner
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7 for increases in the cost of living in accordance with
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8 Section 401(a)(17)(B) of the Internal Revenue Code of
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9 1986, as amended. The annual compensation limit in
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10 effect for a calendar year applies to any period, not
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11 exceeding twelve (12) months, over which compensation
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12 is determined (“determination period”) beginning in
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13 such calendar year. If a determination period
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14 consists of fewer than twelve (12) months, the EGTRRA
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15 annual compensation limit will be multiplied by a
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16 fraction, the numerator of which is the number of
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17 months in the determination period, and the
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18 denominator of which is twelve (12). For purposes of
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19 this section, a “Noneligible Member” is any member who
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20 first became a member during a plan year commencing on
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21 or after July 1, 1996,
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22 d. for plan years beginning on or after July 1, 2002, any
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23 reference in the System to the annual compensation
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24 limit under Section 401(a)(17) of the Internal Revenue
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1 Code of 1986, as amended, shall mean the EGTRRA annual
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2 compensation limit set forth in this provision, and
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3 e. effective January 1, 2008, back pay, within the
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4 meaning of Section 1.415(c)-2(g)(8) of the Income Tax
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5 Regulations, shall be treated as paid base salary for
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6 the limitation year to which the back pay relates to
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7 the extent the back pay represents wages and
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8 compensation that would otherwise be included in this
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9 definition;
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10 18. “Accrued retirement benefit” means, for benefits computed
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11 prior to the effective date of this act, two and one-half percent (2
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12 1/2%) of the member’s final average salary multiplied by the
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13 member’s years of credited service not to exceed thirty (30) years.
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14 For a member who retires on or after the effective date of this act,
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15 “accrued retirement benefit” shall mean three percent (3%) of the
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16 member’s final average salary multiplied by the member’s years of
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17 credited service not to exceed thirty (30) years;
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18 19. “Normal disability benefit” means:
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19 a. for benefits computed prior to the effective date of
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20 this act, the greater of:
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21 a. (1) two and one-half percent (2 1/2%) of the
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22 member’s final average salary multiplied by
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23 twenty (20) years, notwithstanding the years of
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24 actual credited service, or
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1 b. (2) two and one-half percent (2 1/2%) of the
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2 member’s final average salary multiplied by the
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3 years of credited service of the member, not to
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4 exceed thirty (30) years, if the officer has more
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5 than twenty (20) years of credited service,
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6 b. for benefits computed on or after the effective date
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7 of this act, the greater of:
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8 (1) three percent (3%) of the member’s final average
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9 salary multiplied by twenty (20) years,
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10 notwithstanding the years of actual credited
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11 service, or
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12 (2) three percent (3%) of the member’s final average
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13 salary multiplied by the years of credited
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14 service of the member, not to exceed thirty (30)
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15 years, if the officer has more than twenty (20)
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16 years of credited service;
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17 20. “Limitation year” means the year used in applying the
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18 limitations of Section 415 of the Internal Revenue Code of 1986, as
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19 amended, which year shall be the calendar year;
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20 21. “Paid base salary” means, effective July 1, 2016, any
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21 compensation described in subparagraph a of this paragraph that is
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22 not described in subparagraph b of this paragraph.
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23 a. Paid base salary shall include only:
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1 (1) normal compensation paid on a regularly scheduled
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2 pay period including, but not limited to, regular
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3 pay for holidays, paid time off, vacation or
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4 annual leave, sick leave or compensatory time in
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5 lieu of overtime, any lump sum payment paid in
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6 lieu of a normal wage increase, provided such
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7 lump sum payment is retroactively applied over
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8 the prior twelve-month period ending with the
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9 payment date, compensation for bomb squad pay,
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10 education pay, incentive pay, K-9 pay,
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11 negotiation pay, shift differential, sniper pay,
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12 SWAT team pay, emergency response team pay, any
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