RBH No. 8603
1 STATE OF OKLAHOMA
2 2nd Session of the 59th Legislature (2024)
3 HOUSE BILL 2982 By: Kane
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6 AS INTRODUCED
7 An Act relating to retirement; amending 20 O.S. 2021,
Section 1102C, which relates to the Uniform
8 Retirement System for Justices and Judges; amending
74 O.S. 2021, Sections 918 and 935.7, which relate to
9 the Oklahoma Public Employees Retirement System;
modifying how retirement benefits shall be paid to
10 certain members; providing that spouse is not
required to consent in writing to election of certain
11 benefit by member; permitting System to use certain
funds as permitted by federal law; and providing an
12 effective date.
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15 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
16 SECTION 1. AMENDATORY 20 O.S. 2021, Section 1102C, is
17 amended to read as follows:
18 Section 1102C. A. Except as otherwise provided for in this
19 section and Section 1104.2 of this title, members who join the
20 Uniform Retirement System for Justices and Judges on September 1,
21 2005, or thereafter, may elect to have the retirement benefit paid
22 under one of the options provided in this section in lieu of having
23 it paid in the form stated in Section 1104 of this title. The
24 election of an option must be made prior to the member's retirement
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1 date or to receipt of a benefit after termination of service with a
2 vested benefit. A specific person must be designated as joint
3 annuitant at the time of the election of Option A or B. Election of
4 an option is available with respect to the vested benefit. All
5 retirement benefits of a married member shall be paid pursuant to
6 the Option A plan or Option B plan as provided for in this section
7 unless the spouse of a member consents in writing for the unreduced
8 benefits to be paid as provided for in Section 1104 of this title.
9 The spouse of the member is not required to consent in writing to
10 the election of the Option B plan by the member.
11 B. The amount of retirement benefit payable under an option
12 shall be based on the age and sex of the member and the age and sex
13 of the joint annuitant at the retirement date, and shall be such
14 amount as to be the actuarial equivalent of the retirement benefit
15 otherwise payable under Section 1104 of this title.
16 C. The retirement options are:
17 Option A. Joint and one-half to joint annuitant survivor. A
18 reduced retirement benefit is payable to the retiree during his or
19 her lifetime with one-half (1/2) of that amount continued to the
20 joint annuitant during such joint annuitant's remaining lifetime, if
21 any, after the death of the retiree. If the named joint annuitant
22 dies at any time after the member's retirement date, but before the
23 death of the retiree, the retiree shall return to the unreduced
24 retirement benefit, including any postretirement benefit increases,
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1 the member would have received had the member not selected Option A.
2 The benefit shall be determined at the date of death of the named
3 joint annuitant. This increase shall become effective the first day
4 of the month following the date of death of the named joint
5 annuitant, and shall be payable for the retiree's remaining
6 lifetime. The retiree shall notify the Uniform Retirement System
7 for Justices and Judges of the death of the named joint annuitant in
8 writing. In the absence of the written notice being filed by the
9 member notifying the Uniform Retirement System for Justices and
10 Judges of the death of the named joint annuitant within six (6)
11 months of the date of death, nothing in this subsection shall
12 require the Uniform Retirement System for Justices and Judges to pay
13 more than six (6) months of retrospective benefits increase.
14 Option B. Joint and survivor. A reduced retirement benefit is
15 payable to the retiree during his or her lifetime with that amount
16 continued to the joint annuitant during the joint annuitant's
17 remaining lifetime, if any, after the death of the retiree. If the
18 named joint annuitant dies at any time after the member's retirement
19 date, but before the death of the retiree, the retiree shall return
20 to the unreduced retirement benefit, including any postretirement
21 benefit increases, the member would have received had the member not
22 selected Option B. The benefit shall be determined at the date of
23 death of the named joint annuitant. This increase shall become
24 effective the first day of the month following the date of death of
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1 the named joint annuitant, and shall be payable for the retiree's
2 remaining lifetime. The retiree shall notify the Uniform Retirement
3 System for Justices and Judges of the death of the named joint
4 annuitant in writing. In the absence of such written notice being
5 filed by the member notifying the Uniform Retirement System for
6 Justices and Judges of the death of the named joint annuitant within
7 six (6) months of the date of death, nothing in this subsection
8 shall require the Uniform Retirement System for Justices and Judges
9 to pay more than six (6) months of retrospective benefits increase.
10 D. If a member who is eligible to retire in accordance with the
11 provisions of this section or Section 1104 of this title but is not
12 actually retired or is eligible to vest or has elected a vested
13 benefit dies, the member's spouse may elect to receive benefits as a
14 joint annuitant under Option B, calculated as if the member retired
15 on the date of death, in lieu of receiving the member's accumulated
16 contributions. However, no benefits shall be payable before the
17 date the deceased member would have met the requirements for a
18 normal or early retirement. The provisions of this paragraph shall
19 be applicable to a surviving spouse of a deceased member who died
20 prior to the effective date of this act, but only if no benefits or
21 distributions have been previously paid.
22 SECTION 2. AMENDATORY 74 O.S. 2021, Section 918, is
23 amended to read as follows:
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1 Section 918. (1) Except as otherwise provided for in this
2 section and Section 918.1 of this title, a member may elect to have
3 the retirement benefit paid under one of the options provided in
4 this section in lieu of having it paid in the form stated in Section
5 915 of this title. The election of an option must be made at any
6 time prior to retirement or prior to termination of service with a
7 vested benefit. A specific person must be designated as joint
8 annuitant at the time of election of Option A or B. Election of an
9 option is available with respect to the vested benefit. All
10 retirement benefits of a married member shall be paid pursuant to
11 the Option A plan or Option B plan as provided for in this section
12 unless the spouse of a member consents in writing for the benefits
13 to be paid as provided for in Section 915 of this title or pursuant
14 to Option C as provided for in this section. The spouse of the
15 member is not required to consent in writing to the election of the
16 Option B plan by the member.
17 (2) The amount of retirement benefit payable under an option
18 shall be based on the age and sex of the member and the age and sex
19 of the joint annuitant, and shall be such amount as to be the
20 actuarial equivalent of the retirement benefit otherwise payable
21 under Section 915 of this title.
22 (3) The retirement options are:
23 Option A. Joint and one-half to joint annuitant survivor. A
24 reduced retirement benefit is payable to the retiree during his or
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1 her lifetime with one-half (1/2) of that amount continued to the
2 joint annuitant during such joint annuitant's remaining lifetime, if
3 any, after the death of the retiree. If the named joint annuitant
4 dies at any time after the member's retirement date, but before the
5 death of the retiree, the retiree shall return to the retirement
6 benefit, including any post-retirement benefit increases the member
7 would have received had the member not selected Option A. The
8 benefit shall be determined at the date of death of the named joint
9 annuitant or July 1, 1994, whichever is later. This increase shall
10 become effective the first day of the month following the date of
11 death of the named joint annuitant or July 1, 1994, whichever is
12 later, and shall be payable for the retiree's remaining lifetime.
13 The retiree shall notify the Oklahoma Public Employees Retirement
14 System of the death of the named joint annuitant in writing. In the
15 absence of the written notice being filed by the member notifying
16 the Oklahoma Public Employees Retirement System of the death of the
17 named joint annuitant within six (6) months of the date of death,
18 nothing in this subsection shall require the Oklahoma Public
19 Employees Retirement System to pay more than six (6) months of
20 retrospective benefits increase.
21 Option B. Joint and survivor. A reduced retirement benefit is
22 payable to the retiree during his or her lifetime with that amount
23 continued to the joint annuitant during the joint annuitant's
24 remaining lifetime, if any, after the death of the retiree. If the
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1 named joint annuitant dies at any time after the member's retirement
2 date, but before the death of the retiree, the retiree shall return
3 to the retirement benefit, including any post retirement benefit
4 increases the member would have received had the member not selected
5 Option B. The benefit shall be determined at the date of death of
6 the named joint annuitant or July 1, 1994, whichever is later. This
7 increase shall become effective the first day of the month following
8 the date of death of the named joint annuitant or July 1, 1994,
9 whichever is later, and shall be payable for the retiree's remaining
10 lifetime. The retiree shall notify the Oklahoma Public Employees
11 Retirement System of the death of the named joint annuitant in
12 writing. In the absence of such written notice being filed by the
13 member notifying the Oklahoma Public Employees Retirement System of
14 the death of the named joint annuitant within six (6) months of the
15 date of death, nothing in this subsection shall require the Oklahoma
16 Public Employees Retirement System to pay more than six (6) months
17 of retrospective benefits increase.
18 Option C. Life with ten (10) years certain. A reduced
19 retirement benefit is payable to the retiree during his or her
20 lifetime and if the retiree dies within the ten-year certain period,
21 measured from the commencement of retirement benefits payments, such
22 payments will be continued to the beneficiary during the balance of
23 the ten-year certain period. If the retiree dies within the ten-
24 year certain period, and there are no living designated
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1 beneficiaries, the person responsible for the estate of the retiree
2 may elect for the estate to be paid the benefits for the remainder
3 of the term or to receive the present value of the remaining benefit
4 payments according to rules adopted by the Board of Trustees of the
5 System. If the retiree predeceases a designated beneficiary within
6 the ten-year certain period, and the beneficiary dies after the
7 beneficiary has begun to receive benefits, the person responsible
8 for the estate of the beneficiary may elect for the estate to be
9 paid the benefits for the remainder of the term or to receive the
10 present value of the remaining benefit payments according to rules
11 adopted by the Board of Trustees of the System.
12 (4) If the selection of a joint annuitant would violate the
13 distribution requirements contained in Section 918.1 of this title,
14 such selection will not be permitted.
15 (5) If a member who is eligible to retire in accordance with
16 the provisions of Section 914 of this title but is not actually
17 retired or is eligible to vest or has elected a vested benefit dies,
18 the member's spouse may elect to receive benefits as a joint
19 annuitant under Option B calculated as if the member retired on the
20 date of death, in lieu of receiving the member's accumulated
21 contributions. However, no benefits shall be payable before the
22 date the deceased member would have met the requirements for a
23 normal or early retirement. The provisions of this paragraph shall
24 be applicable to a surviving spouse of a deceased member who died
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1 prior to the effective date of this act, but only if no benefits or
2 distributions have been previously paid.
3 (6) Benefits payable to a joint annuitant shall accrue from the
4 first day of the month following the death of a member or retiree
5 and, in the case of Option A and Option B, shall end on the last day
6 of the month in which the joint annuitant dies.
7 SECTION 3. AMENDATORY 74 O.S. 2021, Section 935.7, is
8 amended to read as follows:
9 Section 935.7 A. Participating employees shall at all times be
10 vested at one hundred percent (100%) of their accounts containing
11 solely their employee contributions, and the gains or losses on
12 these contributions. Participating employees will have investment
13 discretion over these accounts within the available options offered
14 by the Board.
15 B. Participating employees shall be vested with respect to the
16 employer matching amounts, and the gains or losses on these funds,
17 deposited into their defined contribution system account or accounts
18 according to the following schedule based on years of participating
19 service:
20 Year 1 20%
21 Year 2 40%
22 Year 3 60%
23 Year 4 80%
24 Year 5 and thereafter 100%
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1 C. Participating employees will have investment discretion over
2 all employer contributions.
3 D. For purposes of determining a participating employee's right
4 to withdraw employer matching contributions and any investment gains
5 upon such employer contribution matching amounts, the vesting
6 percentages apply at the end of each full year of service as
7 described in subsection B of this section.
8 E. For participating employees who do not select any investment
9 options, the OPERS Board will establish default investment options
10 for the contributions received from participating employees and
11 default investment options for matching employer contributions.
12 F. To the extent that participants leave employment and have
13 not vested in all of the employer contributions, the nonvested
14 employer contributions, including any gains or losses, shall be
15 immediately forfeited to the 401(a) plan and may be used to offset
16 costs of administering the plan or as permitted by federal law.
17 Upon reemployment with an employer and satisfying the eligibility
18 requirements to become a participant, the reemployed participant
19 shall receive credit for previous service and be vested at the same
20 percentage the participant was vested when service was previously
21 terminated. However, under no circumstances shall the participant
22 be entitled to any previously forfeited employer contributions.
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1 SECTION 4. This act shall become effective November 1, 2024.
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3 59-2-8603 CMA 01/03/24
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THOMAS E. CUMMINS CONSULTING ACTUARY, INC.
2512 E. 71st Street , Suite D ∙ Tulsa, Oklahoma 74136
(918) 492-9658 ∙ (918) 492- 9659
January 4, 2024
Representative Kane
Room 202.2
Re: RBH No. 86