RBH No. 5691
1 STATE OF OKLAHOMA
2 1st Session of the 59th Legislature (2023)
3 HOUSE BILL 1391 By: Bashore
4
5
6 AS INTRODUCED
7 An Act relating to public retirement systems;
amending 62 O.S. 2022, Section 3103, as last amended
8 by Section 1, Chapter 306, O.S.L. 2022 (62 O.S. Supp.
2022, Section 3103), which relates to the Oklahoma
9 Pension Legislation Actuarial Analysis Act; modifying
definition; amending 74 O.S. 2021, Section 914, which
10 relates to retirement; modifying period of time
required with respect to post-retirement employment;
11 providing effective dates; providing for contingent
effective dates based on outcome of approval of the
12 emergency clause; and declaring an emergency.
13
14
15 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
16 SECTION 1. AMENDATORY 62 O.S 2022, Section 3103, as last
17 amended by Section 1, Chapter 306, O.S.L. 2022 (62 O.S. Supp. 2022,
18 Section 3103v4), is amended to read as follows:
19 Section 3103 As used in the Oklahoma Pension Legislation
20 Actuarial Analysis Act:
21 1. "Amendment" means any amendment, including a substitute
22 bill, made to a retirement bill by any committee of the House or
23 Senate, any conference committee of the House or Senate or by the
24 House or Senate;
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1 2. "RB number" means that number preceded by the letters "RB"
2 assigned to a retirement bill by the respective staffs of the
3 Oklahoma State Senate and the Oklahoma House of Representatives when
4 the respective staff office prepares a retirement bill for a member
5 of the Legislature;
6 3. "Legislative Actuary" means the firm or entity that enters
7 into a contract with the Legislative Service Bureau pursuant to
8 Section 452.15 of Title 74 of the Oklahoma Statutes to provide the
9 actuarial services and other duties provided for in the Oklahoma
10 Pension Legislation Actuarial Analysis Act;
11 4. "Nonfiscal amendment" means an amendment to a retirement
12 bill having a fiscal impact, which amendment does not change any
13 factor of an actuarial investigation specified in subsection A of
14 Section 3109 of this title;
15 5. "Nonfiscal retirement bill" means a retirement bill:
16 a. which does not affect the cost or funding factors of a
17 retirement system,
18 b. which affects such factors only in a manner which does
19 not:
20 (1) grant a benefit increase under the retirement
21 system affected by the bill,
22 (2) create an actuarial accrued liability for or
23 increase the actuarial accrued liability of the
24 retirement system affected by the bill, or
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1 (3) increase the normal cost of the retirement system
2 affected by the bill,
3 c. which authorizes the purchase by an active member of
4 the retirement system, at the actuarial cost for the
5 purchase as computed pursuant to the statute in effect
6 on the effective date of the measure allowing such
7 purchase, of years of service for purposes of reaching
8 a normal retirement date in the applicable retirement
9 system, but which cannot be used in order to compute
10 the number of years of service for purposes of
11 computing the retirement benefit for the member,
12 d. which provides for the computation of a service-
13 connected disability retirement benefit for members of
14 the Oklahoma Law Enforcement Retirement System
15 pursuant to Section 2-305 of Title 47 of the Oklahoma
16 Statutes if the members were unable to complete twenty
17 (20) years of service as a result of the disability,
18 e. which requires membership in the defined benefit plan
19 authorized by Section 901 et seq. of Title 74 of the
20 Oklahoma Statutes for persons whose first elected or
21 appointed service occurs on or after November 1, 2018,
22 if such persons had any prior service in the Oklahoma
23 Public Employees Retirement System prior to November
24 1, 2015,
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1 f. which provides for a one-time increase in retirement
2 benefits if the increase in retirement benefits is not
3 a permanent increase in the gross annual retirement
4 benefit payable to a member or beneficiary, occurs
5 only once pursuant to a single statutory authorization
6 and does not exceed:
7 (1) the lesser of two percent (2%) of the gross
8 annual retirement benefit of the member or One
9 Thousand Dollars ($1,000.00) and requires that
10 the benefit may only be provided if the funded
11 ratio of the affected retirement system would not
12 be less than sixty percent (60%) but not greater
13 than eighty percent (80%) after the benefit
14 increase is paid,
15 (2) the lesser of two percent (2%) of the gross
16 annual retirement benefit of the member or One
17 Thousand Two Hundred Dollars ($1,200.00) and
18 requires that the benefit may only be provided if
19 the funded ratio of the affected retirement
20 system would be greater than eighty percent (80%)
21 but not greater than one hundred percent (100%)
22 after the benefit increase is paid,
23 (3) the lesser of two percent (2%) of the gross
24 annual retirement benefit of the member or One
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1 Thousand Four Hundred Dollars ($1,400.00) and
2 requires that the benefit may only be provided if
3 the funded ratio of the affected retirement
4 system would be greater than one hundred percent
5 (100%) after the benefit increase is paid, or
6 (4) the greater of two percent (2%) of the gross
7 annual retirement benefit of the volunteer
8 firefighter or One Hundred Dollars ($100.00) for
9 persons who retired from the Oklahoma
10 Firefighters Pension and Retirement System as
11 volunteer firefighters and who did not retire
12 from the Oklahoma Firefighters Pension and
13 Retirement System as a paid firefighter.
14 As used in this subparagraph, "funded ratio" means the
15 figure derived by dividing the actuarial value of
16 assets of the applicable retirement system by the
17 actuarial accrued liability of the applicable
18 retirement system,
19 g. which modifies the disability pension standard for
20 police officers who are members of the Oklahoma Police
21 Pension and Retirement System as provided by Section 3
22 of this act,
23 h. which provides a cost-of-living benefit increase
24 pursuant to the provisions of:
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1 (1) Section 49-143.7 of Title 11 of the Oklahoma
2 Statutes,
3 (2) Section 50-136.9 of Title 11 of the Oklahoma
4 Statutes,
5 (3) Section 1104K of Title 20 of the Oklahoma
6 Statutes,
7 (4) Section 2-305.12 of Title 47 of the Oklahoma
8 Statutes,
9 (5) Section 17-116.22 of Title 70 of the Oklahoma
10 Statutes,
11 (6) Section 930.11 of Title 74 of the Oklahoma
12 Statutes, or
13 i. which modifies the computation of the line-of-duty
14 disability benefit pursuant to the provisions of this
15 act, or
16 j. which modifies the provisions related to post-
17 retirement employment for the Oklahoma Public
18 Employees Retirement System as provided by Section 2
19 of this act.
20 A nonfiscal retirement bill shall include any retirement bill that
21 has as its sole purpose the appropriation or distribution or
22 redistribution of monies in some manner to a retirement system for
23 purposes of reducing the unfunded liability of such system or the
24 earmarking of a portion of the revenue from a tax to a retirement
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1 system or increasing the percentage of the revenue earmarked from a
2 tax to a retirement system;
3 6. "Reduction-in-cost amendment" means an amendment to a
4 retirement bill having a fiscal impact which reduces the cost of the
5 bill as such cost is determined by the actuarial investigation for
6 the bill prepared pursuant to Section 3109 of this title;
7 7. "Retirement bill" means any bill or joint resolution
8 introduced or any bill or joint resolution amended by a member of
9 the Oklahoma Legislature which creates or amends any law directly
10 affecting a retirement system. A retirement bill shall not mean a
11 bill or resolution that impacts the revenue of any state tax in
12 which a portion of the revenue generated from such tax is earmarked
13 for the benefit of a retirement system;
14 8. "Retirement bill having a fiscal impact" means any
15 retirement bill creating or establishing a retirement system and any
16 other retirement bill other than a nonfiscal retirement bill; and
17 9. "Retirement system" means the Teachers' Retirement System of
18 Oklahoma, the Oklahoma Public Employees Retirement System, the
19 Uniform Retirement System for Justices and Judges, the Oklahoma
20 Firefighters Pension and Retirement System, the Oklahoma Police
21 Pension and Retirement System, the Oklahoma Law Enforcement
22 Retirement System, or a retirement system established after January
23 1, 2006.
24
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1 SECTION 2. AMENDATORY 74 O.S. 2021, Section 914, is
2 amended to read as follows:
3 Section 914. A. The normal retirement date for a member of the
4 Oklahoma Public Employees Retirement System shall be as defined in
5 Section 902 of this title, provided members employed on or after
6 January 1, 1983, shall have six (6) or more years of full-time-
7 equivalent employment with a participating employer before receiving
8 any retirement benefits or if the member is a legislative session
9 employee of the Legislature, shall have three (3) or more years of
10 full-time-equivalent employment with a participating employer before
11 receiving any retirement benefits. In no event shall a normal
12 retirement date for a member be before six (6) months after the
13 entry date of the participating employer by whom he or she is
14 employed.
15 B. A member may be employed beyond the normal retirement date
16 by the appointing authority of the participating employer. However,
17 the member may not receive retirement pay so long as the member
18 continues employment under this act. Any member who has terminated
19 employment with a participating employer prior to the month
20 immediately preceding said member's normal retirement date must
21 elect a vested benefit pursuant to Section 917 of this title before
22 receiving any retirement benefits.
23 C. Notice for retirement shall be filed through the retirement
24 coordinator for the participating employer in such form and manner
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1 as the Board shall prescribe; provided, that such notice for
2 retirement shall be filed with the office of the retirement system
3 at least sixty (60) days prior to the date selected for the member's
4 retirement; provided further, that the Executive Director may waive
5 the sixty-day notice for good cause shown as defined by the Board.
6 1. The participating employer shall provide the System with the
7 following information for a retiring member, no later than the
8 fifteenth day of the month of retirement: last day physically on
9 the job; last day on payroll; and final unused sick leave balance.
10 2. Failure to submit this information by the deadline, or
11 errors in submitted information that result in a disqualification of
12 retirement eligibility shall be the responsibility of the
13 participating employer. In cases where the error results in
14 disqualification of retirement eligibility, it is the participating
15 employer's responsibility to reemploy the member, or retain the
16 member on the payroll, for time period required to reach
17 eligibility, not exceeding two (2) months.
18 D. No retirement benefits shall be payable to any member until
19 the first day of the month following the termination of the member's
20 employment with any participating employer. The type of retirement
21 benefit selected by a member may not be changed on or after the
22 effective date of the member's retirement. Receipt of workers'
23 compensation benefits shall in no respect disqualify the retiree for
24 benefits.
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1 E. If a retiree should be elected or appointed to any position
2 or office for which compensation for service is paid from levies or
3 taxes imposed by the state or any political subdivision thereof, the
4 retiree shall not receive any retirement benefit for any month for
5 which the retiree serves in such position or office after the
6 retiree has received compensation in a sum equal to the amount
7 allowable as wages or earnings by the Social Security Administration
8 in any calendar year. This subsection shall not apply to service
9 rendered by a retiree as a juror, as a witness in any legal
10 proceeding or action, as an election board judge or clerk, or in any
11 other office or position of a similar nature, or to an employer that
12 is not a participating employer. Provided, further, that any
13 participating employer who is employing such a retiree shall make
14 proper written notification to the System informing it of the
15 beginning date of such retiree's employment and the date such
16 retiree reaches the maximum compensation allowed by this section in
17 the calendar year. Any retiree returning to work for a
18 participating employer shall make contributions to the System and
19 the employer shall do likewise. All retirees who have returned to
20 employment and participation in the System following retirement
21 shall have post-retirement benefits calculated on one of the
22 following methods:
23 1. All service accumulated from date of reemployment shall be
24 computed based on the benefit formula applicable at that time and
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1 the additional benefits shall be added to the previous benefits.
2 Such additional benefits shall be calculated each year based upon
3 additional service accrued from July 1 to June 30 of the previous
4 year and the additional benefit, if any, will be added to the
5 retiree's monthly benefit beginning January 1, 2000, and each
6 January 1 thereafter. However, the post-retirement service credit
7 shall be cumulative, beginning with service credit accrued after the
8 date of retirement, provided that the retiree has not received a
9 distribution of the post-retirement contributions.
10 2. Any retiree who returns to employment with a participating
11 employer may elect not to receive any retirement benefits while so