1 STATE OF OKLAHOMA
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2 1st Session of the 58th Legislature (2021)
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3 SENATE BILL 650 By: David
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6 AS INTRODUCED
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7 An Act relating to state employee benefits; amending
7 74 O.S. 2011, Section 1370, as last amended by
8 Section 4, Chapter 266, O.S.L. 2013 (74 O.S. Supp.
8 2020, Section 1370), which relates to flexible
9 benefit allowance; modifying benefit allowance for
9 state employees; providing for annual percentage
10 increase in benefit allowance amount; providing an
10 effective date; and providing an emergency.
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13 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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14 SECTION 1. AMENDATORY 74 O.S. 2011, Section 1370, as
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15 last amended by Section 4, Chapter 266, O.S.L. 2013 (74 O.S. Supp.
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16 2020, Section 1370), is amended to read as follows:
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17 Section 1370. A. Subject to the requirement that a participant
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18 must elect the default benefits, the basic plan, or is a person who
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19 has retired from a branch of the United States military and has been
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20 provided with health care through a federal plan, to the extent that
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21 it is consistent with federal law, or is an active employee who is
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22 eligible to participate and who is a participant who has opted out
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23 of the state’s basic plan according to the provisions of Section
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24 1308.3 of this title, and provides proof of this coverage, flexible
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 1 benefit dollars may be used to purchase any of the benefits offered
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2 by the Oklahoma State Employees Benefits Council under the flexible
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3 benefits plan. A participant who has opted out of the state’s basic
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4 plan and provided proof of other coverage as described in this
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5 subsection shall receive One Hundred Fifty Dollars ($150.00) in lieu
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6 of the flexible benefit monthly. A participant’s flexible benefit
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7 dollars for a plan year shall consist of the sum of (1) flexible
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8 benefit allowance credited to a participant by the participating
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9 employer, and (2) pay conversion dollars elected by a participant.
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10 B. Each participant shall be credited annually with a specified
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11 amount as a flexible benefit allowance which shall be available for
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12 the purchase of benefits. For participants on a biweekly payroll
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13 system the disbursement of the flexible benefit allowance shall be
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14 credited over twenty-four pay periods resulting in two pay periods
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15 that do not reflect a credit. The amount of the flexible benefit
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16 allowance credited to each participant shall be communicated to him
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17 or her prior to the enrollment period for each plan year.
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18 C. Except as provided in subsection D of this section, for the
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19 plan year beginning January 1, 2013, the benefit allowance shall not
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20 be less than the Plan Year 2012 benefit allowance amounts, and each
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21 plan year thereafter, the amount of a participant’s benefit
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22 allowance, which shall be the total amount the employer contributes
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23 for the payment of insurance premiums or other benefits, shall be:
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 1 1. The greater of the amount of benefit which the participant
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2 would have qualified for as of plan year 2012 Seven Hundred Seventy-
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3 eight Dollars and sixty-seven cents ($778.67), or an amount equal to
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4 the monthly premium of the HealthChoice High Option plan, the
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5 average monthly premiums of the dental plans, the monthly premium of
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6 the disability plan, and the monthly premium of the basic life
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7 insurance plan offered to state employees or the amount determined
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8 by the Council based on a formula for determining a participant’s
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9 benefit credits consistent with the requirements of 26 U.S.C.,
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10 Section 125(g)(2) and regulations thereunder; or
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11 2. The greater of the amount of benefit which the participant
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12 would have qualified for as of plan year 2012 Six Hundred Sixty-
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13 seven Dollars and thirty-two cents ($667.32) or an amount equal to
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14 the monthly premium of the HealthChoice High Option plan, the
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15 average monthly premiums of the dental plans, the monthly premium of
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16 the disability plan, and the monthly premium of the basic life
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17 insurance plan offered to state employees plus one of the additional
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18 amounts as follows for participants who elect to include one or more
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19 dependents:
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20 a. for a spouse, seventy-five percent (75%) of the
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21 HealthChoice High Option plan, available for coverage
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22 of a spouse,
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 1 b. for one child, seventy-five percent (75%) of the
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2 HealthChoice High Option plan, for coverage of one
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3 child,
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4 c. for two or more children, seventy-five percent (75%)
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5 of the HealthChoice High Option plan, for coverage of
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6 two or more children,
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7 d. for a spouse and one child, seventy-five percent (75%)
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8 of the HealthChoice High Option plan, for coverage of
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9 a spouse and one child, or
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10 e. for a spouse and two or more children, seventy-five
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11 percent (75%) of the HealthChoice High Option plan,
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12 for coverage of a spouse and two or more children.
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13 For the plan year beginning January 1, 2023, and every year
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14 thereafter, the amount of a participant’s benefit allowance shall
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15 increase by two percent (2%) from the amount provided in the
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16 previous plan year.
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17 D. To the extent that it is consistent with federal laws and
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18 regulations, and in particular the regulations set forth by the
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19 Secretary of Defense in 32 C.F.R. Section 199.8(d)(6), a benefit may
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20 be provided to an employee who is an eligible TRICARE beneficiary
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21 whereby he or she may purchase a group TRICARE Supplemental product
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22 under a qualifying cafeteria plan consistent with the requirements
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23 of 26 U.S.C., Section 125, provided that:
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 1 1. The state, as employer may not provide any payment for nor
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2 receive any consideration or compensation for offering the benefit;
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3 2. The employer’s only involvement is in providing the
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4 administrative support for the benefit under the cafeteria plan; and
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5 3. The employee’s participation in the plan is completely
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6 voluntary.
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7 The benefit allowance under paragraph 2 of subsection C of this
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8 section of an employee whose plan participation includes a group
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9 TRICARE Supplemental benefit shall not include any allowance or
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10 portion thereof for such TRICARE Supplemental benefit.
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11 E. This section shall not prohibit payments for supplemental
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12 health insurance coverage made pursuant to Section 1314.4 of this
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13 title or payments for the cost of providing health insurance
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14 coverage for dependents of employees of the Grand River Dam
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15 Authority.
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16 F. If a participant desires to buy benefits whose sum total of
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17 benefit prices is in excess of his or her flexible benefit
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18 allowance, the participant may elect to use pay conversion dollars
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19 to purchase such excess benefits. Pay conversion dollars may be
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20 elected through a salary reduction agreement made pursuant to the
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21 election procedures of Section 1371 of this title. The elected
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22 amount shall be deducted from the participant’s compensation in
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23 equal amounts each pay period, with the exception of participants on
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24 a biweekly payroll system, where such deduction shall occur over
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 1 twenty-four pay periods over the plan year. On termination of
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2 employment during a plan year, a participant shall have no
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3 obligation to pay the participating employer any pay conversion
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4 dollars allocated to the portion of the plan year after the
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5 participant’s termination of employment.
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6 G. If a participant elects benefits whose sum total of benefit
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7 prices is less than his or her flexible benefit allowance, he or she
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8 shall receive any excess flexible benefit allowance as taxable
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9 compensation. Such taxable compensation will be paid in
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10 substantially equal amounts each pay period, with the exception of
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11 participants on a biweekly payroll system, where such deduction
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12 shall occur over twenty-four pay periods over the plan year. On
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13 termination during a plan year, a participant shall have no right to
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14 receive any such taxable cash compensation allocated to the portion
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15 of the plan year after the participant’s termination. Nothing
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16 herein shall affect a participant’s obligation to elect the minimum
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17 benefits or to accept the default benefits of the plan with
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18 corresponding reduction in the sum of his or her flexible benefit
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19 allowance equal to the sum total benefit price of such minimum
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20 benefits or default benefits.
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21 SECTION 2. This act shall become effective July 1, 2021.
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22 SECTION 3. It being immediately necessary for the preservation
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23 of the public peace, health or safety, an emergency is hereby
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 1 declared to exist, by reason whereof this act shall take effect and
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2 be in full force from and after its passage and approval.
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4 58-1-319 CB 1/21/2021 9:54:34 AM
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Statutes affected:
Introduced: 74-1370
Senate Committee Substitute: 74-1370
Floor (House): 74-1370
Floor (Senate): 74-1370
Engrossed: 74-1370
Amended And Engrossed: 74-1370
Senate Conference Committee Substitute: 74-1370
Enrolled (final version): 74-1370