The bill RBH No. 15565 amends the Oklahoma Pension Legislation Actuarial Analysis Act and related statutes to transition public employees from defined contribution plans to defined benefit plans, effectively terminating the Retirement Freedom Act on November 1, 2026. Employees will cease contributions to their defined contribution accounts and begin contributing to the defined benefit plan, with a requirement to make an irrevocable election regarding their account balances within 120 days of the act's effective date. The bill also introduces new legal language that stipulates the provisions will take effect upon approval from the Internal Revenue Service regarding fund distributions, ensuring members are fully vested in their account balances as of the termination date.

Additionally, the bill modifies eligibility and contribution requirements for various classes of employees, including those in the Oklahoma Tax Commission and other public entities. It clarifies definitions related to "credited service" and establishes conditions for employees of specific organizations to retain membership in the retirement system. The bill also revises retirement benefits for public safety officers and elected officials, including changes to service credit for military service and survivor benefits for spouses of deceased officials. Overall, the amendments aim to streamline the retirement system, ensure compliance with federal regulations, and provide clarity on the transition process for employees.

Statutes affected:
Introduced: 62-3103, 74-902