The bill amends various sections of the Oklahoma Public Employees Retirement System (OPERS) to enhance the defined contribution retirement system. Key changes include increasing the minimum employee contribution rate from 4.5% to 5% and the employer contribution rate from 6% to 7% of compensation. The bill also eliminates the vesting schedule for employer matching contributions, allowing employees to be fully vested in these amounts immediately. Additionally, it mandates the Board of Trustees to provide individualized planning services and a standard investment menu for participants, which includes predetermined investment portfolios and diversified options.

Furthermore, the bill specifies that participants may receive distributions of their vested benefits upon reaching age 65 or after separating from eligible employment. The standard distribution form will be a lifetime annuity, with options for alternative forms such as lump-sum payments or periodic distributions. The bill aims to ensure that eligible employees can customize their retirement plans to meet personal needs and objectives, while also providing necessary information and investment options to facilitate informed decision-making. The effective date for these changes is set for November 1, 2026.

Statutes affected:
Introduced: 74-935.7