RBH No. 9314
1 STATE OF OKLAHOMA
2 2nd Session of the 59th Legislature (2024)
3 HOUSE BILL 2996 By: Lepak
4
5
6 AS INTRODUCED
7 An Act relating to retirement; amending 47 O.S. 2021,
Sections 2-300, as amended by Section 8, Chapter 151,
8 O.S.L. 2023 (47 O.S. Supp. 2023, Section 2-300), 2-
304, and 2-307.2, which relate to the Oklahoma Law
9 Enforcement Retirement System; defining term;
modifying terms; updating references; and declaring
10 an emergency.
11
12
13
14
15 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
16 SECTION 1. AMENDATORY 47 O.S. 2021, Section 2-300, as
17 amended by Section 8, Chapter 151, O.S.L. 2023 (47 O.S. Supp. 2023,
18 Section 2-300), is amended to read as follows:
19 Section 2-300. As used in Section 2-300 et seq. of this title:
20 1. "System" means the Oklahoma Law Enforcement Retirement
21 System;
22 2. "Act" means Section 2-300 et seq. of this title;
23 3. "Board" means the Oklahoma Law Enforcement Retirement Board
24 of the System;
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1 4. "Executive Director" means the managing officer of the
2 System employed by the Board;
3 5. "Fund" means the Oklahoma Law Enforcement Retirement Fund;
4 6. "Participating Employer" means any Oklahoma entity with
5 employees that are members of the System pursuant to this act;
6 7. a. "Member" means:
7 (1) all commissioned law enforcement officers of the
8 Oklahoma Highway Patrol Division of the
9 Department of Public Safety who have obtained
10 certification from the Council on Law Enforcement
11 Education and Training, and all cadets of a
12 Patrol Academy of the Department of Public
13 Safety,
14 (2) law enforcement officers and criminalists of the
15 Oklahoma State Bureau of Investigation,
16 (3) law enforcement officers of the Oklahoma State
17 Bureau of Narcotics and Dangerous Drugs Control
18 designated to perform duties in the investigation
19 and prevention of crime and the enforcement of
20 the criminal laws of this state,
21 (4) law enforcement officers of the Alcoholic
22 Beverage Laws Enforcement Commission designated
23 to perform duties in the investigation and
24
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1 prevention of crime and the enforcement of the
2 criminal laws of this state,
3 (5) employees of the Communications Section of the
4 Oklahoma Highway Patrol Division, radio
5 technicians and tower technicians of the
6 Department of Public Safety, who are employed in
7 any such capacity as of June 30, 2008, and who
8 remain employed on or after July 1, 2008, until a
9 termination of service, or until a termination of
10 service with an election of a vested benefit from
11 the System, or until retirement. Effective July
12 1, 2008, a person employed for the first time as
13 an employee of the Department of Public Safety in
14 the Communications Division as an information
15 systems telecommunication technician of the
16 Department of Public Safety shall not be a member
17 of the System,
18 (6) park rangers of the Oklahoma Tourism and
19 Recreation Department and any park manager or
20 park supervisor of the Oklahoma Tourism and
21 Recreation Department, who was employed in such a
22 position prior to July 1, 1985, and who elects on
23 or before September 1, 1996, to participate in
24 the System, and
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1 (7) inspectors of the State Board of Pharmacy,
2 (8) police officers who are CLEET certified and
3 employed by the University of Oklahoma or
4 Oklahoma State University and who participate in
5 this System pursuant to Section 2-314 of this
6 title, and
7 (9) Lake Patrolmen or Dispatchers of the Grand River
8 Dam Authority and who participate in this System
9 pursuant to Section 2-315 of this title.
10 b. Effective July 1, 1987, a member does not include a
11 "leased employee" as defined under Section 414(n)(2)
12 of the Internal Revenue Code of 1986, as amended.
13 Effective July 1, 1999, any individual who agrees with
14 the participating employer Participating Employer that
15 the individual's services are to be performed as a
16 leased employee or an independent contractor shall not
17 be a member regardless of any classification as a
18 common-law employee by the Internal Revenue Service or
19 any other governmental agency, or any court of
20 competent jurisdiction.
21 c. All persons who shall be offered a position of a
22 commissioned law enforcement officer as an employee of
23 one of the agencies described in subparagraph a of
24 this paragraph shall participate in the System upon
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1 the person meeting the requisite post-offer-pre-
2 employment physical examination standards which shall
3 be subject to the following requirements:
4 (1) all such persons shall be of good moral
5 character, free from deformities, mental or
6 physical conditions, or disease and alcohol or
7 drug addiction which would prohibit the person
8 from performing the duties of a law enforcement
9 officer,
10 (2) the physical-medical examination shall pertain to
11 age, sight, hearing, agility and other conditions
12 the requirements of which shall be established by
13 the Board,
14 (3) the person shall be required to meet the
15 conditions of this subsection prior to the
16 beginning of actual employment but after an offer
17 of employment has been tendered by a
18 participating employer Participating Employer,
19 (4) the Board shall have authority to deny or revoke
20 membership of any person submitting false
21 information in such person's membership
22 application, and
23 (5) the Board shall have final authority in
24 determining eligibility for membership in the
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1 System, pursuant to the provisions of this
2 subsection;
3 7. 8. "Normal retirement date" means the date at which the
4 member is eligible to receive the unreduced payments of the member's
5 accrued retirement benefit. Such date shall be the first day of the
6 month coinciding with or following the date the member:
7 a. completes twenty (20) years of vesting service, or
8 b. attains sixty-two (62) years of age with ten (10)
9 years of vesting service, or
10 c. attains sixty-two (62) years of age, if:
11 (1) the member has been transferred to this System
12 from the Oklahoma Public Employees Retirement
13 System on or after July 1, 1981, and
14 (2) the member would have been vested had the member
15 continued to be a member of the Oklahoma Public
16 Employees Retirement System.
17 With respect to distributions under the System made for calendar
18 years beginning on or after January 1, 2005, the System shall apply
19 the minimum distribution incidental benefit requirements, incidental
20 benefit requirements, and minimum distribution requirements of
21 Section 401(a)(9) of the Internal Revenue Code of 1986, as amended,
22 in accordance with the final regulations under Section 401(a)(9) of
23 the Internal Revenue Code of 1986, as amended, including Treasury
24 Regulations Sections 1.401(a)(9)-1 through 1.401(a)(9)-9; provided,
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1 that for individuals who attain seventy and one-half (70 1/2) years
2 of age after December 31, 2019, but before January 1, 2023, such
3 distributions shall take into account that "age 70 1/2" was stricken
4 and "age 72" was inserted in Sections 401(a)(9)(B)(iv)(I),
5 401(a)(9)(C)(i)(I) and 401(a)(9)(C)(ii)(I) of the Internal Revenue
6 Code of 1986, as amended, and, provided further, that for
7 individuals who attain seventy-two (72) years of age after December
8 31, 2022, such distributions shall take into account that "age 72"
9 was stricken and "the applicable age", as defined in Section
10 401(a)(9)(C)(v) of the Internal Revenue Code of 1986, as amended,
11 was inserted in Section 401(a)(9)(B)(iv)(I) of the Internal Revenue
12 Code of 1986, as amended (applicable to calendar year 2023), Section
13 401(a)(9)(C)(i)(I) and Section 401(a)(9)(C)(ii)(I) of the Internal
14 Revenue Code of 1986, as amended, and that the further revision of
15 Section 401(a)(9)(B)(iv) of the Internal Revenue Code of 1986, as
16 amended, effective for calendar years after 2023 with respect to
17 certain distributions shall be taken into account, in all cases
18 notwithstanding any provision of the System to the contrary. With
19 respect to distributions under the System made for calendar years
20 beginning on or after January 1, 2001, through December 31, 2004,
21 the System shall apply the minimum distribution requirements and
22 incidental benefit requirements of Section 401(a)(9) of the Internal
23 Revenue Code of 1986, as amended, in accordance with the regulations
24 under Section 401(a)(9) of the Internal Revenue Code of 1986, as
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1 amended, which were proposed in January 2001, notwithstanding any
2 provision of the System to the contrary.
3 Effective July 1, 1989, notwithstanding any other provision
4 contained herein to the contrary, in no event shall commencement of
5 distribution of the accrued retirement benefit of a member be
6 delayed beyond April 1 of the calendar year following the later of:
7 (1) the calendar year in which the member reaches seventy and one-
8 half (70 1/2) years of age for a member who attains this age before
9 January 1, 2020, or, for a member who attains this age on or after
10 January 1, 2020, but before January 1, 2023, the calendar year in
11 which the member reaches seventy-two (72) years of age, or effective
12 for distributions required to be made after December 31, 2022, the
13 calendar year in which the member reaches seventy-three (73) years
14 of age for an individual who attains age seventy-two (72) after
15 December 31, 2022, or "the applicable age", as defined in Section
16 401(a)(9)(C)(v) of the Internal Revenue Code of 1986, as amended, if
17 later; or (2) the actual retirement date of the member. A member
18 electing to defer the commencement of retirement benefits pursuant
19 to Section 2-308.1 of this title may not defer the benefit
20 commencement beyond the age of sixty-five (65).
21 Effective September 8, 2009, notwithstanding anything to the
22 contrary of the System, the System, which as a governmental plan
23 (within the meaning of Section 414(d) of the Internal Revenue Code
24 of 1986, as amended), is treated as having complied with Section
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1 401(a)(9) of the Internal Revenue Code of 1986, as amended, for all
2 years to which Section 401(a)(9) of the Internal Revenue Code of
3 1986, as amended, applies to the System if the System complies with
4 a reasonable and good faith interpretation of Section 401(a)(9) of
5 the Internal Revenue Code of 1986, as amended.
6 A member who was required to join the System effective July 1,
7 1980, because of the transfer of the employing agency from the
8 Oklahoma Public Employees Retirement System to the System, and was
9 not a member of the Oklahoma Public Employees Retirement System on
10 the date of such transfer shall be allowed to receive credit for
11 prior law enforcement service rendered to this state, if the member
12 is not receiving or eligible to receive retirement credit or
13 benefits for such service in any other public retirement system,
14 upon payment to the System of the employee contribution the member
15 would have been subject to had the member been a member of the
16 System at the time, plus five percent (5%) interest. Service credit
17 received pursuant to this paragraph shall be used in determining the
18 member's retirement benefit, and shall be used in determining years
19 of service for retirement or vesting purposes;
20 8. 9. "Actual paid base salary" means the salary received by a
21 member, excluding payment for any accumulated leave or uniform
22 allowance. Salary shall include any amount of nonelective salary
23 reduction under Section 414(h) of the Internal Revenue Code of 1986;
24
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1 9. 10. "Final average salary" means the average of the highest
2 thirty (30) consecutive complete months of actual paid gross salary.
3 Gross salary shall include any amount of elective salary reduction
4 under Section 457 of the Internal Revenue Code of 1986, as amended,
5 and any amount of nonelective salary reduction under Section 414(h)
6 of the Internal Revenue Code of 1986, as amended. Effective July 1,
7 1992, gross salary shall include any amount of elective salary
8 reduction under Section 125 of the Internal Revenue Code of 1986, as
9 amended. Effective July 1, 1998, gross salary shall include any
10 amount of elective salary reduction not includable in the gross
11 income of the member under Section 132(f)(4) of the Internal Revenue
12 Code of 1986, as amended. Effective July 1, 1998, for purposes of
13 determining a member's compensation, any contribution by the member
14 to reduce his or her regular cash remuneration under Section
15 132(f)(4) of the Internal Revenue Code of 1986, as amended, shall be
16 treated as if the member did not make such an election. Only salary
17 on which required contributions have been made may be used in
18 computing the final average salary. Gross salary shall not include
19 severance pay.
20 In addition to other applicable limitations, and notwithstanding
21 any other provision to the contrary, for plan years beginning on or
22 after July 1, 2002, the annual gross salary of each "Noneligible
23 Member" taken into account under the System shall not exceed the
24 Economic Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA")
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1 annual salary limit. The EGTRRA annual salary limit is Two Hundred
2 Thousand Dollars ($200,000.00), as adjusted by the Commissioner for
3 increases in the cost of living in accordance with Section
4 401(a)(17)(B) of the Internal Revenue Code of 1986, as amended. The
5 annual salary limit in effect for a calendar year applies to any
6 period, not exceeding twelve (12) months, over which salary is
7 determined ("determination period") beginning in such calendar year.
8 If a determination period consists of fewer than twelve (12) months,
9 the EGTRRA salary limit will be multiplied by a