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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
HOUSE BILL 1237 By: Humphrey
AS INTRODUCED
An Act relating to public retirement systems;
amending 11 O.S. 2021, Section 49-113.2, which
relates to the Oklahoma Firefighters Pension and
Retirement System; amending 11 O.S. 2021, Section 50-
115.2, which relates to the Oklahoma Police Pension
and Retirement System; amending 20 O.S. 2021, Section
1103E, which relates to the Uniform Retirement System
for Justices and Judges; amending 47 O.S. 2021,
Section 2-306.3, which relates to the Oklahoma Law
Enforcement Retirement System; amending 70 O.S. 2021,
Section 17-105, as amended by Section 4, Chapter 300,
O.S.L. 2024 (70 O.S. Supp. 2024, Section 17-105),
which relates to the Teachers' Retirement System of
Oklahoma; amending 74 O.S. 2021, Section 916.1, which
relates to the Oklahoma Public Employees Retirement
System; modifying death benefit amount; and providing
an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 11 O.S. 2021, Section 49-113.2, is
amended to read as follows:
Section 49-113.2. A. Upon the death of an active or retired
member, the System shall pay to the surviving spouse of the member
if the surviving spouse has been married to the firefighter for
thirty (30) continuous months preceding the member's death provided
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a surviving spouse of a member who died while in, or as a
consequence of, the performance of the member's duty for a
participating municipality shall not be subject to the marriage
limitation for survivor benefits, or if there is no surviving spouse
or no surviving spouse meeting the requirements of this section, the
System shall pay to the designated recipient or recipients of the
member, or if there is no designated recipient or if the designated
recipient predeceases the member, to the estate of the member, the
sum of Four Thousand Dollars ($4,000.00) for those active or retired
members who died prior to July 1, 1999. For those active or retired
members who die on or after July 1, 1999 the effective date of this
act, the sum shall be Five Thousand Dollars ($5,000.00) Ten Thousand
Dollars ($10,000.00).
B. Upon the death of a member who dies leaving no living
designated recipient or having designated the member's estate as
recipient, the System may pay any applicable death benefit which may
be subject to probate, in an amount of Five Thousand Dollars
($5,000.00) Ten Thousand Dollars ($10,000.00), to the heir or heirs
of the member without the intervention of a probate court or probate
procedures.
C. Before any applicable probate procedure may be waived, the
System must be in receipt of the member's proof of death and the
following documents from those persons claiming to be the legal
heirs of the deceased member:
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1. The member's last will and testament if available;
2. An affidavit or affidavits of heirship which must contain:
a. the names and signatures of all claiming heirs to the
deceased member's estate including the claiming heirs'
names, relationship to the deceased member, current
addresses and current telephone numbers,
b. a statement or statements by the claiming heirs that
no application or petition for the appointment of a
personal representative is pending or has been granted
in any jurisdiction,
c. a statement that the value of the deceased member's
entire probate estate, less liens and encumbrances,
does not exceed the dollar limit pursuant to Section
393 of Title 58 of the Oklahoma Statutes, including
the payment of benefits from the System, and
d. a statement by each individual claiming heir
identifying the amount of personal property that the
heir is claiming from the System or the amount the
heir agrees to be paid to another person, and that the
heir has been notified of, is aware of and consents to
the identified claims of all the other claiming heirs
of the deceased member pending with the System;
3. A written agreement or agreements signed by all claiming
heirs of the deceased member which provides that the claiming heirs
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release, discharge and hold harmless the System from any and all
liability, obligations and costs which it may incur as a result of
making a payment to any of the deceased member's heirs;
4. A corroborating affidavit from an individual other than a
claiming heir, who was familiar with the affairs of the deceased
member; and
5. Proof that funeral and burial expenses of the deceased
member have been paid or provided for.
D. The System shall retain complete discretion in determining
which requests for probate waiver may be granted or denied, for any
reason. Should the System have any questions as to the validity of
any document presented by the claiming heirs, or as to any statement
or assertion contained therein, the probate requirements provided
for in Section 1 et seq. of Title 58 of the Oklahoma Statutes shall
not be waived.
E. After paying any death benefits to any claiming heirs as
provided pursuant to this section, the System is discharged and
released from any and all liability, obligation and costs to the
same extent as if the System had paid a personal representative
holding valid letters testamentary issued by a court of competent
jurisdiction. The System is not required to inquire into the truth
of any matter specified in this section or into the payment of any
estate tax liability.
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F. The provisions of this section shall not be subject to
qualified domestic orders as provided in subsection B of Section 49-
126 of this title.
G. 1. For purposes of this section, if a person makes a
qualified disclaimer with respect to the death benefit provided for
in subsection A of this section, this section shall apply with
respect to such death benefit as if the death benefit had never been
transferred to such person.
2. For purposes of this subsection, the term "qualified
disclaimer" means an irrevocable and unqualified refusal by a
person, including but not limited to the surviving spouse of the
deceased member, to accept an interest in the death benefit provided
for in subsection A of this section, but only if:
a. such refusal is in writing,
b. such writing is received by the System not later than
the date which is nine (9) months after the date of
death of the deceased member,
c. such person has not accepted the death benefit
provided for in subsection A of this section, and
d. as a result of such refusal, the death benefit
provided for in subsection A of this section passes
without any direction on the part of the person making
the disclaimer and passes first, to the organization
providing funeral and burial services for the deceased
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member or, if the cost of the funeral and burial
services for the deceased member has already been
paid, to the person or persons other than the person
making the disclaimer as further provided for in this
section.
SECTION 2. AMENDATORY 11 O.S. 2021, Section 50-115.2, is
amended to read as follows:
Section 50-115.2. Upon the death of an active or retired
member, the Oklahoma Police Pension and Retirement System shall pay
to the beneficiary of the member under paragraph 13 of Section 50-
101 of this title or if there is no such beneficiary or if such
beneficiary predeceases the member, to the member's estate or, if
properly designated by the member, to a trust, the sum of Four
Thousand Dollars ($4,000.00) as a death benefit for those active or
retired members who died prior to July 1, 1999. For those active or
retired members who die on or after July 1, 1999 the effective date
of this act, the sum shall be Five Thousand Dollars ($5,000.00) Ten
Thousand Dollars ($10,000.00).
SECTION 3. AMENDATORY 20 O.S. 2021, Section 1103E, is
amended to read as follows:
Section 1103E. Upon the death of a retired member, the Uniform
Retirement System for Justices and Judges shall pay to the
beneficiary of the member or if there is no beneficiary or if the
beneficiary predeceases the member, to the estate of the member, the
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sum of Four Thousand Dollars ($4,000.00) as a death benefit for
those retired members who died prior to July 1, 1999. For those
retired members who die on or after July 1, 1999 the effective date
of this act, the sum shall be Five Thousand Dollars ($5,000.00) Ten
Thousand Dollars ($10,000.00). The benefit payable pursuant to this
section shall be deemed, for purposes of federal income taxation, as
life insurance proceeds and not as a death benefit if the Internal
Revenue Service approves this provision pursuant to a private letter
ruling request which shall be submitted by the board of trustees of
the System for that purpose.
SECTION 4. AMENDATORY 47 O.S. 2021, Section 2-306.3, is
amended to read as follows:
Section 2-306.3. Upon the death of an active or retired member,
the Oklahoma Law Enforcement Retirement System shall pay to the
designated beneficiary of the member as defined in paragraph 17 of
Section 2-300 of this title or if there is no such designated
beneficiary or if such designated beneficiary predeceases the
member, to the estate of the member, the sum of Four Thousand
Dollars ($4,000.00) as a death benefit for those active or retired
members who died prior to July 1, 1999. For those active or retired
members who die on or after July 1, 1999 the effective date of this
act, the sum shall be Five Thousand Dollars ($5,000.00) Ten Thousand
Dollars ($10,000.00).
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SECTION 5. AMENDATORY 70 O.S. 2021, Section 17-105, as
amended by Section 4, Chapter 300, O.S.L. 2024 (70 O.S. Supp. 2024,
Section 17-105), is amended to read as follows:
Section 17-105. A. 1. Any member who has attained age fifty-
five (55) or who has completed thirty (30) years of creditable
service, as defined in Section 17-101 of this title, or for any
person who initially became a member prior to July 1, 1992,
regardless of whether there were breaks in service after July 1,
1992, whose age and number of years of creditable service total
eighty (80) may be retired upon proper application for retirement as
established by the Teachers’ Retirement System of Oklahoma. Such a
retirement date will also apply to any person who became a member of
the sending system as defined in Section 17-116.2 of this title,
prior to July 1, 1992, regardless of whether there were breaks in
service after July 1, 1992. Any person who became a member after
June 30, 1992, but prior to November 1, 2011, whose age and number
of years of creditable service total ninety (90) may be retired upon
proper application for retirement as established by the System. Any
person who becomes a member on or after November 1, 2011, who
attains the age of sixty-five (65) years or who reaches a normal
retirement date pursuant to subparagraph d of paragraph 22 of
Section 17-101 of this title having attained a minimum age of sixty
(60) years may be retired upon proper application for retirement as
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established by the System. The application shall be filed with the
System in a manner required by the Board of Trustees.
2. The employer shall provide the System with the following
information for a retiring member, no later than the fifteenth day
of the month of retirement: last day physically on the job; last
day on payroll; any regular compensation not already reported to the
System; and final unused sick leave balance.
3. Failure to submit this information by the deadline, or
errors in submitted information that result in a disqualification of
retirement eligibility, shall be the responsibility of the employer.
In cases where the error results in disqualification of retirement
eligibility, it is the employer’s responsibility to reemploy the
member, or retain the member on the payroll, for the time period
required to reach eligibility, not exceeding two (2) months.
B. An individual who becomes a member of the Teachers’
Retirement System of Oklahoma after July 1, 1967, through October
31, 2017, shall be employed by the public schools, state colleges,
or universities of Oklahoma for a minimum of five (5) years and be a
contributing member of the Teachers’ Retirement System of Oklahoma
for a minimum of five (5) years to qualify for monthly retirement
benefits from the Teachers’ Retirement System of Oklahoma.
An individual who becomes a member of the Teachers’ Retirement
System of Oklahoma on or after November 1, 2017, shall be employed
by the public schools, state colleges or universities of Oklahoma
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for a minimum of seven (7) years and be a contributing member of the
Teachers’ Retirement System of Oklahoma for a minimum of seven (7)
years to qualify for monthly retirement benefits from the Teachers’
Retirement System of Oklahoma.
C. Individuals becoming members after July 1, 1967, through
October 31, 2017, with five (5) or more years of Oklahoma service
and whose accumulated contributions during such period have not been
withdrawn shall be given an indefinite extension of membership
beginning with the sixth year following the member’s last
contributing membership.
Individuals becoming members on or after November 1, 2017, with
seven (7) or more years of Oklahoma service and whose accumulated
contributions during such period have not been withdrawn shall be
given an indefinite extension of membership beginning with the
eighth year following the member’s last contributing membership.
D. Nonclassified optional personnel who have retired or who
retire at sixty-two (62) years of age or older or whose retirement
is because of disability shall have minimum retirement benefits
calculated on an average salary of Five Thousand Three Hundred Fifty
Dollars ($5,350.00) or, if a larger monthly allowance would result,
an amount arrived at pursuant to application of the formula
prescribed herein.
E. No member shall receive a lesser retirement benefit than the
member would have received under the law in effect at the time the
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member retired. Any individual under the Teachers’ Retirement
System of Oklahoma, who through error in stating the title of the
position which the member held, may, at the discretion of the Board
of Trustees, be changed from the nonclassified optional group to the
classified group for the purpose of calculating retirement benefits.
F. The value of each year of prior service is the total monthly
retirement benefit divided by the number of years of creditable
service.
G. Upon application of a member who is actively engaged in
teaching in Oklahoma or upon application of the member’s employer,
any member who has been a contributing member for ten (10) years may
be retired by the System subsequent to the execution and filing
thereof, on a disability retirement allowance, provided that it is
found by the Medical Board after medical examination of such member
by a duly qualified physician that such member is mentally or
physically incapacitated for further performance of duty, that such
incapacity is likely to be permanent, and that such member should be
retired. The System shall rely on and give full consideration to
the conclusions and recommendations in the certified written report
of the Medical Board of the Teachers’ Retirement System of Oklahoma
regarding the disability application of such member. If the Medical
Board does not find that a member applying for disability retirement
is mentally or physically incapacitated for performance of duty or
otherwise eligible for a disability retirement, the application
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shall then be considered by the Board of Trustees. If a member is
determined to be eligible for disability benefits pursuant to the
Social Security System, then such determination shall entitle the
member to the authorized disability retirement benefits provided by
law. For members who are not eligible for disability benefits
pursuant to the Social Security Administration, the Board of
Trustees and the Medical Board shall apply the same standard for
which provision is made in the first two sentences of this
subsection for determining the eligibility of a person for such
disability benefits in making a determination of eligibility for
disability benefits as authorized by this subsection.
H. 1. A member who at the time of retirement has been found to
be permanently physically or mentally incapacitated to perform the
necessary duties to continue in the member’s current position shall
receive a minimum monthly retirement payment for life or until such
time as the member may be found to be recovered to the point where
the member may return to teaching. Any member retired before July
1, 1992, shall be eligible to receive the monthly retirement benefit
herein provided, but such payment shall not begin until the first
payment due to the member after July 1, 1992, and shall not be
retroactive. The Board of Trustees is empowered to make such rules
and regulations as it considers proper to preserve equity in
retirements under this provision, which shall include a provision to
protect the rights of the member’s spouse.
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2. A member who has qualified for retirement benefits under
disability retirement shall have the total monthly payment deducted
from the member’s accumulated contributions plus interest earned and
any money remaining in the member’s account after the above
deductions at the death of the member shall be paid in a lump sum to
the beneficiary or to the estate of the member. Provided, if the
deceased disabled member had thirty (30) years or more of creditable
service and the death occurred after June 30, 1981, and death
occurred prior to the disabled member receiving twelve monthly
retirement payments, a surviving spouse may elect to receive the
retirement benefit to which the deceased member would have been
entitled at the time of death under the Option 2 Plan of Retirement
provided for in paragraph 2 of subsection K of this section in lieu
of the death benefit provided for in this paragraph and in
subsection Q of this section.
3. Once each year the System may require any disabled annuitant
who has not yet attained the age of sixty (60) years to undergo a
medical examination, such examination to be made at the place of
residence for the disabled annuitant or other place mutually agreed
upon by a physician or physicians designated by the System. Should
any disabled annuitant who has not yet attained the age of sixty
(60) years refuse to submit to at least one medical examination in
any such year by a physician or physicians designated by the System,
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the member’s benefits may be discontinued until the member submits
to such examination.
4. Should the Medical Board report and certify to the Board of
Trustees that such disabled annuitant is engaged in or is able to
engage in a gainful occupation paying more than the difference
between the member’s average final compensation and the annual
benefit amount, and should the Board of Trustees concur in such
report, then the amount of the member’s annual benefit shall be
reduced to an amount which, added to the member’s earnings from a
gainful occupation, shall equal the amount of the member’s average
final compensation. Should the member’s earning capacity be later
increased, the amount of the member’s annual benefit may be further
reduced.
5. Should a disabled annuitant be restored to active service,
the member’s disability retirement benefit shall cease and the
member shall again become an active member of the Teachers’
Retirement System of Oklahoma and shall make regular contributions
as required under this article. The unused portion of the member’s
accumulated contributions shall be reestablished to the member’s
credit in the Teachers’ Savings Fund. Any such prior service
certificates on the basis of which the member’s service was computed
at the time of the member’s retirement shall be restored to full
force and effect.
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I. Should a member before retirement under Section 17-101 et
seq. of this title make application for withdrawal duly filed with
the System, not earlier than four (4) months after the date of
termination of employment with a participating employer within the
System, the contribution standing to the credit of the member’s
individual account in the Teachers’ Savings Fund shall be paid to
the member or, in the event of the member’s death before retirement,
shall be paid to such person or persons as the member shall have
designated in a manner required by the Board of Trustees and filed
with the System; provided, however, if there is no designated
beneficiary surviving upon such death, such contributions shall be
paid to the member’s administrators, executors, or assigns, together
with interest as hereinafter provided. Provided further, if there
is no designated beneficiary surviving upon such death, and the
contributions standing to the credit of such member do not exceed
Two Hundred Dollars ($200.00), no part of such contributions shall
be subject to the payment of any expense of the last illness or
funeral of the deceased member or any expense of administration of
the estate of such deceased and the System, upon satisfactory proof
of the death of such member and of the name or names of the person
or persons who would be entitled to receive such contributions under
the laws of descent and distribution of the state, may authorize the
payment of accumulated contributions to such person or persons. A
member terminating membership by withdrawal after June 30, 2003,
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shall have the interest computed at a rate of interest determined by
the Board of Trustees and paid to the member subject to the
following schedule:
1. If termination occurs within sixteen (16) years from the
date membership began, fifty percent (50%) of such interest
accumulations shall be paid;
2. With at least sixteen (16) but less than twenty-one (21)
years of membership, sixty percent (60%) of such interest
accumulations shall be paid;
3. With at least twenty-one (21) but less than twenty-six (26)
years of membership, seventy-five percent (75%) of such interest
accumulations shall be paid; and
4. With at least twenty-six (26) years of membership, ninety
percent (90%) of such interest accumulations shall be paid.
In case of death of an active member, the interest shall be
calculated and restored to the member’s account and paid to the
member’s beneficiary.
J. 1. In lieu of the Maximum Retirement Allowance payable
throughout life for such an amount as determined under this section,
the member may select a retirement allowance for a reduced amount
payable under any of the options listed in subsection K of this
section the present value of which is the actuarial equivalent
thereof.
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2. The first payment of any benefit selected shall be made on
the first day of the month following approval of the retirement by
the System. If the named joint annuitant under Option 2 or 3 dies
at any time after the member’s retirement date, but before the death
of the member, the member shall return to the Maximum Plan of
Retirement, including any post-retirement benefit increases the
member would have received had the member not selected Option 2 or 3
pursuant to paragraph 2 or 3 of subsection K of this section. The
retirement allowance shall be determined at the date of death of the
joint annuitant. This increase shall become effective the first day
of the month following the date of death of the joint annuitant, and
shall be payable for the member’s remaining lifetime. The member
shall notify the Teachers’ Retirement System of Oklahoma of the
death of the joint annuitant by providing a copy of the joint
annuitant’s death certificate. In the absence of the death
certificate being filed by the member notifying the Teachers’
Retirement System of Oklahoma of the death of the joint annuitant
within six (6) months of the date of death, nothing in this
subsection shall require the Teachers’ Retirement System of Oklahoma
to pay more than six (6) months of retrospective benefits increase.
K. 1. Option 1. A member takes a slightly reduced retirement
allowance for life. If the member dies before receiving in annuity
payments the present value of the member’s annuity as it was at the
time of retirement, the balance shall be paid to the member’s
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beneficiary by designation filed with the System prior to the
member’s death.
2. Option 2. A member takes a reduced retirement allowance for
life. Upon the death of the member the payments shall continue to
the member’s joint annuitant for the life of the joint annuitant.
The designation of the joint annuitant must be filed with the System
at the time of the member’s retirement and, except as provided in
paragraph 2 of subsection J of this section, cannot be changed after
the effective date of the member’s retirement.
3. Option 3. A member receives a reduced retirement allowance
for life. Upon the death of the member one-half (1/2) of the
retirement allowance paid the member shall be continued throughout
the life of the member’s joint annuitant. A designation of a joint
annuitant must be filed with the System at the time of the member’s
retirement and, except as provided in paragraph 2 of subsection J of
this section, cannot be changed after the effective date of the
member’s retirement.
4. Option 4. Provided, the System may establish other
retirement options if certified by the actuary to be of equivalent
actuarial value to the member’s retirement allowance. Other
retirement options shall be presented to the Board of Trustees for
approval at its discretion. Such other benefit or benefits shall be
paid either to the member or, if applicable, to such joint annuitant
as the member shall nominate.
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L. Provided, the options listed in paragraphs 2 and 3 of
subsection K of this section shall not be available if the member’s
expected benefit is less than fifty percent (50%) of the lump-sum
actuarial equivalent and the joint annuitant is not the spouse of
the member.
M. 1. A member who chose the Maximum Plan of Retirement at the
time of retirement may make a one-time election to choose either
Option 2 or 3 as prescribed in paragraph 2 or 3 of subsection K of
this section and name the member’s spouse as joint annuitant if the
member marries after making the initial election. Such an election
shall be made within one (1) year of the date of marriage. The
member shall provide proof of a member’s good health before the
System will permit a change to either Option 2 or 3 as prescribed in
paragraphs 2 and 3 of subsection K of this section and the naming of
a joint annuitant. A medical examination conducted by a licensed
physician is required for purposes of determining good health. Such
examination must be approved by the Medical Board. The member shall
be required to provide proof of age for the new joint annuitant.
The System shall adjust the retirement allowance to the actuarially
equivalent amount based on the new joint annuitant’s age. The Board
of Trustees shall promulgate rules to implement the provisions of
this subsection.
2. A member who retires after July 1, 2010, and has selected a
retirement allowance for a reduced amount payable under one of the
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options provided for in subsection K of this section may make a one-
time irrevocable election to select a different option within sixty
(60) days of the member’s retirement date. The beneficiary or joint
annuitant designated by the member at the time of retirement shall
not be changed if the member makes the election provided for in this
paragraph.
3. Any individual who is eligible to be a beneficiary or joint
annuitant of a member under subsection J of this section, and who is
also a beneficiary of a trust created under the Oklahoma
Discretionary and Special Needs Trust Act, Section 175.81 et seq. of
Title 60 of the Oklahoma Statutes, or a comparable Trust Act created
under the laws of another state, hereinafter collectively referred
to as “Trust Acts”, may be a beneficiary or joint annuitant under
subsection J of this section by having the trustee of the trust
established for the benefit of that individual named as the legal
beneficiary or joint annuitant under subsection J of this section.
The age of that beneficiary shall be used for calculating any
benefit payable to the trust under subsection J of this section.
The beneficiary of such a trust shall be treated as the beneficiary
or joint annuitant under subsection J of this section except that
payments of any benefits due under subsection J of this section
shall be payable to the lawfully appointed trustee of the trust.
The obligation of the System to pay the beneficiary or joint
annuitant under subsection J of this section shall be satisfied by
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payment to the trustee whom the System, in good faith, believes to
be the lawfully appointed trustee. Any conflict between the
statutes creating and governing the Teachers’ Retirement System of
Oklahoma in Section 17-101 et seq. of this title and the provisions
of any Trust Act referred to above shall be resolved in favor of the
statutes governing the System. If an eligible beneficiary or joint
annuitant is named at the time of retirement, and becomes a
beneficiary of a trust under one of the Trust Acts described herein
after that time, the System will acknowledge the trust as the
beneficiary upon the submission of adequate documentation of the
existence of the trust. All other provisions of subsection J of
this section shall apply to these subsequently created trusts.
4. The Board of Trustees of the System may recognize other
trusts set up for the benefit of individuals otherwise eligible to
be named as a beneficiary or joint annuitant under subsection J of
this section by administrative rule if it can be done without undue
additional administrative expense of the System.
N. The governing board of any public school, as that term is
defined in Section 17-101 of this title, is hereby authorized and
empowered to pay additional retirement allowances or compensation to
any person who was in the employ of such public school for not less
than seven (7) school years preceding the date of the member’s
retirement. Payments so made shall be a proper charge against the
current appropriation or appropriations of any such public school
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for salaries for the fiscal year in which such payments are made.
Such payments shall be made in regular monthly installments in such
amounts as the governing board of any such public school, in its
judgment, shall determine to be reasonable and appropriate in view
of the length and type of service rendered by any such person to
such public school by which such person was employed at the time of
retirement. All such additional payments shall be uniform, based
upon the length of service and the type of services performed, to
persons formerly employed by such public school who have retired or
been retired in accordance with the provisions of Section 17-101 et
seq. of this title.
The governing board of any such public school may adopt rules
and regulations of general application outlining the terms and
conditions under which such additional retirement benefits shall be
paid, and all decisions of such board shall be final.
O. In addition to the teachers’ retirement herein provided,
teachers may voluntarily avail themselves of the federal Social
Security program upon a district basis.
P. Upon the death of an in-service member, the System shall pay
to the designated beneficiary of the member or, if there is no
designated beneficiary or if the designated beneficiary predeceases
the member, to the estate of the member, the sum of Eighteen
Thousand Dollars ($18,000.00) as a death benefit. Provided, if the
deceased member had ten (10) years or more of creditable service,
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the member’s designated beneficiary may elect to receive the
retirement benefit to which the deceased member would have been
entitled at the time of death under the Option 2 plan of retirement
in lieu of the death benefit provided for in this subsection.
Provided further, the option provided in this subsection is only
available when the member has designated one individual as the
designated beneficiary. The beneficiary or beneficiaries of death
benefits in the amount not to exceed Eighteen Thousand Dollars
($18,000.00), but exclusive of any retirement benefit received by an
electing beneficiary based upon creditable service performed by the
deceased member, which are provided pursuant to this subsection, may
elect to disclaim such death benefits in which case such benefits
will be transferred to a person licensed as a funeral director or to
a lawfully recognized business entity licensed as required by law to
provide funeral services for the deceased member. The qualified
disclaimer must be in writing and will be an irrevocable and an
unqualified refusal to accept all or a portion of the death benefit.
It must be received by the transferor no more than nine (9) months
after the later of the day the transfer creating the interest in the
disclaiming person is made or the day the disclaiming person attains
age twenty-one (21). The interest in the death benefits must pass
without direction by the disclaiming person to another person.
After paying death benefits to any beneficiary or the member’s
estate pursuant to this subsection, the System is discharged and
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released from any and all liability, obligation, and costs. The
System is not required to inquire into the truth of any matter
specified in this subsection or into the payment of any estate tax
liability.
Q. Upon the death of a retired member who has contributed to
the System, the retirement system shall pay to the designated
beneficiary of the member or, if there is no designated beneficiary
or if the designated beneficiary predeceases the member, to the
estate of the member, the sum of Five Thousand Dollars ($5,000.00)
Ten Thousand Dollars ($10,000.00) as a death benefit. The
beneficiary or beneficiaries of benefits provided pursuant to this
subsection may elect to disclaim such death benefits in which case
such benefits will be transferred to a person licensed as a funeral
director or to a lawfully recognized business entity licensed as
required by law to provide funeral services for the deceased member.
The qualified disclaimer must be in writing and will be an
irrevocable and an unqualified refusal to accept all or a portion of
the death benefit. It must be received by the transferor no more
than nine (9) months after the later of the day the transfer
creating the interest in the disclaiming person is made or the day
the disclaiming person attains age twenty-one (21). The interest in
the death benefits must pass without direction by the disclaiming
person to another person. The benefit payable pursuant to this
subsection shall be deemed, for purposes of federal income taxation,
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as life insurance proceeds and not as a death benefit if the
Internal Revenue Service approves this provision pursuant to a
private letter ruling request which shall be submitted by the Board
of Trustees of the System for that purpose. After paying death
benefits to any beneficiary or the member’s estate pursuant to this
subsection, the System is discharged and released from any and all
liability, obligation, and costs. The System is not required to
inquire into the truth of any matter specified in this subsection or
into the payment of any estate tax liability.
R. Upon the death of a member who dies leaving no living
beneficiary or having designated the member’s estate as beneficiary,
or upon the death of any individual who may be entitled to a benefit
from the System, the System may pay any applicable death benefit,
unpaid contributions, or unpaid benefit which may be subject to
probate, in an amount of Twenty-five Thousand Dollars ($25,000.00)
or less, without the intervention of the probate court or probate
procedure pursuant to Section 1 et seq. of Title 58 of the Oklahoma
Statutes.
1. Before any applicable probate procedure may be waived, the
System must be in receipt of the decedent’s death certificate and
the following documents from those persons claiming to be the legal
heirs of the deceased member:
a. the decedent’s valid last will and testament, trust
documents or affidavit that a will does not exist,
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b. an affidavit or affidavits of heirship which must
state:
(1) the names and signatures of all claiming heirs to
the decedent’s estate including the claiming
heirs’ names, relationship to the deceased,
current addresses, tax ID numbers if known and
current telephone numbers,
(2) a statement or statements by the claiming heirs
that no application or petition for the
appointment of a personal representative is
pending or has been granted in any jurisdiction,
(3) a description of the personal property claimed,
(i.e., death benefit or unpaid contributions or
both) together with a statement that such
personal property is subject to probate,
(4) a statement by each individual claiming heir
identifying the amount of personal property that
the heir is claiming from the System, and that
the heir has been notified of, is aware of and
consents to the identified claims of all the
other claiming heirs of the decedent pending with
the System, and
(5) a statement by each individual claiming heir
affirming that all debts of the decedent,
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including payment of last sickness, hospital,
medical, death, funeral, and burial expenses have
been paid or provided for,
c. a written agreement or agreements signed by all
claiming heirs of the decedent which provide that the
claiming heirs release, discharge and hold harmless
the System from any and all liability, obligations and
costs which it may incur as a result of making a
payment to any of the decedent’s heirs, and
d. a corroborating affidavit from an individual other
than a claiming heir, who was familiar with the
affairs of the decedent.
2. The Executive Director of the System shall retain complete
discretion in determining which requests for probate waiver may be
granted or denied, for any reason. Should the System have any
question as to the validity of any document presented by the
claiming heirs, or as to any statement or assertion contained
therein, the probate requirement provided for in Section 1 et seq.
of Title 58 of the Oklahoma Statutes shall not be waived.
3. After paying any death benefits or unpaid contributions to
any claiming heirs as provided pursuant to this subsection, the
System is discharged and released from any and all liability,
obligation and costs to the same extent as if the System had dealt
with a personal representative of the decedent. The System is not
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required to inquire into the truth of any matter specified in this
subsection or into the payment of any estate tax liability.
S. Upon the death of a retired member, the benefit payment for
the month in which the retired member died, if not previously paid,
shall be made to the joint annuitant if still living, to the
beneficiary of the member if the joint annuitant is deceased, or to
the member’s estate if there is no surviving joint annuitant or
beneficiary. Such benefit payment shall be made in an amount equal
to a full monthly benefit payment regardless of the day of the month
in which the retired member died. Upon the death of a joint
annuitant receiving monthly benefit payments as prescribed herein,
the benefit payment for the month in which the joint annuitant died,
if not previously paid, shall be made to the joint annuitant’s
estate in an amount equal to the full monthly benefit payment
regardless of the day of the month on which the joint annuitant
died.
T. The Board of Trustees may adopt such other rules and
regulations as are necessary to administer the benefits enumerated
herein.
SECTION 6. AMENDATORY 74 O.S. 2021, Section 916.1, is
amended to read as follows:
Section 916.1. A. Upon the death of a retired member, the
Oklahoma Public Employees Retirement System shall pay to the
beneficiary of the member or if there is no beneficiary or if the
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beneficiary predeceases the member, to the estate of the member, the
sum of Four Thousand Dollars ($4,000.00) as a death benefit for
those retired members who died prior to July 1, 1999. For those
retired members who died on or after July 1, 1999 the effective date
of this act, the sum shall be Five Thousand Dollars ($5,000.00) Ten
Thousand Dollars ($10,000.00). The benefit payable pursuant to this
subsection shall be deemed, for purposes of federal income taxation,
as life insurance proceeds and not as a death benefit if the
Internal Revenue Service approves this provision pursuant to a
private letter ruling request which shall be submitted by the board
of trustees of the System for that purpose.
B. Upon the death of a member who dies leaving no living
beneficiary or having designated his estate as beneficiary, the
System may pay any applicable death benefit, unpaid contributions,
or unpaid benefit which may be subject to probate, in an amount of
Twenty-five Thousand Dollars ($25,000.00) or less, without the
intervention of the probate court or probate procedure pursuant to
Section 1 et seq. of Title 58 of the Oklahoma Statutes.
1. Before any applicable probate procedure may be waived, the
System must be in receipt of the member's proof of death and the
following documents from those persons claiming to be the legal
heirs of the deceased member:
a. the member's valid last will and testament, trust
documents or affidavit that a will does not exist,
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b. an affidavit or affidavits of heirship which must
state:
(1) the names and signatures of all claiming heirs to
the deceased member's estate including the
claiming heirs' names, relationship to the
deceased, current addresses and current telephone
numbers,
(2) a statement or statements by the claiming heirs
that no application or petition for the
appointment of a personal representative is
pending or has been granted in any jurisdiction,
(3) a description of the personal property claimed
(i.e., death benefit or unpaid contributions or
both), together with a statement that such
personal property is subject to probate, and
(4) a statement by each individual claiming heir
identifying the amount of personal property that
the heir is claiming from the System, and that
the heir has been notified of, is aware of and
consents to the identified claims of all the
other claiming heirs of the deceased member
pending with the System,
c. a written agreement or agreements signed by all
claiming heirs of the deceased member which provides
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that the claiming heirs release, discharge and hold
harmless the System from any and all liability,
obligations and costs which it may incur as a result
of making a payment to any of the deceased member's
heirs,
d. a corroborating affidavit from an individual other
than a claiming heir, who was familiar with the
affairs of the deceased member, and
e. proof that all debts of the deceased member, including
payment of last sickness, hospital, medical, death,
funeral and burial expenses have been paid or provided
for.
2. The Executive Director of the System shall retain complete
discretion in determining which requests for probate waiver may be
granted or denied, for any reason. Should the System have any
question as to the validity of any document presented by the
claiming heirs, or as to any statement or assertion contained
therein, the probate requirement provided for in Section 1 et seq.
of Title 58 of the Oklahoma Statutes shall not be waived.
3. After paying any death benefits or unpaid contributions to
any claiming heirs as provided pursuant to this subsection, the
System is discharged and released from any and all liability,
obligation and costs to the same extent as if the System had dealt
with a personal representative of the deceased member. The System
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is not required to inquire into the truth of any matter specified in
this subsection or into the payment of any estate tax liability.
C. Death benefits provided pursuant to this section may be
assigned by the beneficiary to a person licensed as a funeral
director or to a lawfully recognized business entity licensed as
required by law to provide funeral services for the deceased member.
SECTION 7. This act shall become effective November 1, 2025.
60-1-10046 CMA 01/02/25
THOMAS E. CUMMINS CONSULTING ACTUARY, INC.
2512 E. 71st Street , Suite D ∙ Tulsa, Oklahoma 74136
(918) 492-9658 ∙ (918) 492- 9659
January 13, 2025
Representative Humphrey
Room 301S
Re: RBH No. 10046
RBH No. 10046 increases the death benefit for retired participants
of all the State’s retirement systems to $10,000 from $5,000.
RBH No. 10046 is a fiscal bill as defined by OPLAAA.
I am a member of the American Academy of Actuaries and meet the
Qualification Standards of the American Academy of Actuaries to
render the actuarial opinion herein.
Thomas E. Cummins
Thomas E. Cummins, MAAA