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RBH No. 16678
ENGR. H. B. NO. 1268 Page 1
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ENGROSSED HOUSE
BILL NO. 1268 By: Hays of the House
and
Weaver of the Senate
[ retirement - Oklahoma Pension Legislation Actuarial
Analysis Act – terms - Oklahoma Public Employees
Deferred Option Plan - creditable service -
requirements and specifications of plan - cessation
of employee contributions - employer contributions
- cost of living adjustments - payment - limit for
commencement of distribution – codification –
effective dates ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 62 O.S. 2021, Section 3103, as
last amended by Section 2, Chapter 361, O.S.L. 2024 (62 O.S. Supp.
2025, Section 3103), is amended to read as follows:
Section 3103. As used in the Oklahoma Pension Legislation
Actuarial Analysis Act:
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1. "Amendment" means any amendment, including a substitute
bill, made to a retirement bill by any committee of the House of
Representatives or Senate, any conference committee of the House or
Senate or by the House or Senate;
2. "RB number" means that number preceded by the letters "RB"
assigned to a retirement bill by the respective staffs of the
Oklahoma State Senate and the Oklahoma House of Representatives when
the respective staff office prepares a retirement bill for a member
of the Legislature;
3. "Legislative Actuary" means the firm or entity that enters
into a contract with the Legislative Service Bureau pursuant to
Section 452.15 of Title 74 of the Oklahoma Statutes to provide the
actuarial services and other duties provided for in the Oklahoma
Pension Legislation Actuarial Analysis Act;
4. "Nonfiscal amendment" means an amendment to a retirement
bill having a fiscal impact, which amendment does not change any
factor of an actuarial investigation specified in subsection A of
Section 3109 of this title;
5. "Nonfiscal retirement bill" means a retirement bill:
a. which does not affect the cost or funding factors of a
retirement system,
b. which affects such factors only in a manner which does
not:
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(1) grant a benefit increase under the retirement
system affected by the bill,
(2) create an actuarial accrued liability for or
increase the actuarial accrued liability of the
retirement system affected by the bill, or
(3) increase the normal cost of the retirement system
affected by the bill,
c. which authorizes the purchase by an active member of
the retirement system, at the actuarial cost for the
purchase as computed pursuant to the statute in effect
on the effective date of the measure allowing such
purchase, of years of service for purposes of reaching
a normal retirement date in the applicable retirement
system, but which cannot be used in order to compute
the number of years of service for purposes of
computing the retirement benefit for the member,
d. which provides for the computation of a service-
connected disability retirement benefit for members of
the Oklahoma Law Enforcement Retirement System
pursuant to Section 2-305 of Title 47 of the Oklahoma
Statutes if the members were unable to complete twenty
(20) years of service as a result of the disability,
e. which requires membership in the defined benefit plan
authorized by Section 901 et seq. of Title 74 of the
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Oklahoma Statutes for persons whose first elected or
appointed service occurs on or after November 1, 2018,
if such persons had any prior service in the Oklahoma
Public Employees Retirement System prior to November
1, 2015,
f. which provides for a one-time increase in retirement
benefits if the increase in retirement benefits is not
a permanent increase in the gross annual retirement
benefit payable to a member or beneficiary, occurs
only once pursuant to a single statutory authorization
and does not exceed:
(1) the lesser of two percent (2%) of the gross
annual retirement benefit of the member or One
Thousand Dollars ($1,000.00) and requires that
the benefit may only be provided if the funded
ratio of the affected retirement system would not
be less than sixty percent (60%) but not greater
than eighty percent (80%) after the benefit
increase is paid,
(2) the lesser of two percent (2%) of the gross
annual retirement benefit of the member or One
Thousand Two Hundred Dollars ($1,200.00) and
requires that the benefit may only be provided if
the funded ratio of the affected retirement
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system would be greater than eighty percent (80%)
but not greater than one hundred percent (100%)
after the benefit increase is paid,
(3) the lesser of two percent (2%) of the gross
annual retirement benefit of the member or One
Thousand Four Hundred Dollars ($1,400.00) and
requires that the benefit may only be provided if
the funded ratio of the affected retirement
system would be greater than one hundred percent
(100%) after the benefit increase is paid, or
(4) the greater of two percent (2%) of the gross
annual retirement benefit of the volunteer
firefighter or One Hundred Dollars ($100.00) for
persons who retired from the Oklahoma
Firefighters Pension and Retirement System as
volunteer firefighters and who did not retire
from the Oklahoma Firefighters Pension and
Retirement System as a paid firefighter.
As used in this subparagraph, "funded ratio" means the
figure derived by dividing the actuarial value of
assets of the applicable retirement system by the
actuarial accrued liability of the applicable
retirement system,
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g. which modifies the disability pension standard for
police officers who are members of the Oklahoma Police
Pension and Retirement System as provided by Section
50-115 of Title 11 of the Oklahoma Statutes,
h. which provides a cost-of-living benefit increase
pursuant to the provisions of:
(1) Section 49-143.7 of Title 11 of the Oklahoma
Statutes,
(2) Section 50-136.9 of Title 11 of the Oklahoma
Statutes,
(3) Section 1104K of Title 20 of the Oklahoma
Statutes,
(4) Section 2-305.12 of Title 47 of the Oklahoma
Statutes,
(5) Section 17-116.22 of Title 70 of the Oklahoma
Statutes,
(6) Section 930.11 of Title 74 of the Oklahoma
Statutes,
i. which modifies the computation of the line-of-duty
disability benefit pursuant to the provisions of this
section and Sections 50-101 and 50-115 of Title 11 of
the Oklahoma Statutes, or
j. which authorizes membership in the Oklahoma Law
Enforcement Retirement System for active commissioned
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or CLEET-certified agents of the Office of the
Attorney General or the Military Department of the
State of Oklahoma pursuant to Sections 3 2-309.9 and 4
2-309.10 of this act Title 47 of the Oklahoma
Statutes, or
k. which authorizes certain licensed emergency personnel
to participate in the Oklahoma Public Employees
Deferred Option Plan pursuant to Section 2 of this
act.
A nonfiscal retirement bill shall include any retirement bill that
has as its sole purpose the appropriation or distribution or
redistribution of monies in some manner to a retirement system for
purposes of reducing the unfunded liability of such system or the
earmarking of a portion of the revenue from a tax to a retirement
system or increasing the percentage of the revenue earmarked from a
tax to a retirement system;
6. "Reduction-in-cost amendment" means an amendment to a
retirement bill having a fiscal impact which reduces the cost of the
bill as such cost is determined by the actuarial investigation for
the bill prepared pursuant to Section 3109 of this title;
7. "Retirement bill" means any bill or joint resolution
introduced or any bill or joint resolution amended by a member of
the Legislature which creates or amends any law directly affecting a
retirement system. A retirement bill shall not mean a bill or
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resolution that impacts the revenue of any state tax in which a
portion of the revenue generated from such tax is earmarked for the
benefit of a retirement system;
8. "Retirement bill having a fiscal impact" means any
retirement bill creating or establishing a retirement system and any
other retirement bill other than a nonfiscal retirement bill; and
9. "Retirement system" means the Teachers' Retirement System of
Oklahoma, the Oklahoma Public Employees Retirement System, the
Uniform Retirement System for Justices and Judges, the Oklahoma
Firefighters Pension and Retirement System, the Oklahoma Police
Pension and Retirement System, the Oklahoma Law Enforcement
Retirement System, or a retirement system established after January
1, 2006.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 914.1 of Title 74, unless there
is created a duplication in numbering, reads as follows:
A. In lieu of terminating employment and accepting a service
retirement pension pursuant to Section 914 of this title, licensed
emergency medical personnel, as defined pursuant to Section 1-2503
of Title 63 of the Oklahoma Statutes, holding a license issued by
the State Department of Health pursuant to Section 1-2505 of Title
63 of the Oklahoma Statutes, including emergency medical responders,
emergency medical technicians, intermediate emergency medical
technicians, advanced emergency medical technicians, and paramedics
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employed by any participating employer of the Oklahoma Public
Employees Retirement System as a licensed emergency medical
personnel and deputy sheriffs and county jailers employed by any
county that is a participating employer of the Oklahoma Public
Employees Retirement System who has not less than twenty (20) years
of creditable service and who is eligible to receive a service
retirement pension may make an irrevocable election to participate
in the Oklahoma Public Employees Deferred Option Plan and defer the
receipts of benefits in accordance with the provisions of this
section.
B. For purposes of this section, creditable service shall
include service credit reciprocally recognized pursuant to Section
901 et seq. of this title but for eligibility purposes only.
C. The duration of participation in the Oklahoma Public
Employees Deferred Option Plan for a member shall not exceed five
(5) years. Participation in the Oklahoma Public Employees Deferred
Option Plan must begin the first day of a month and end on the last
day of a month. At the conclusion of a member's participation in
the Oklahoma Public Employees Deferred Option Plan, the member shall
terminate employment with all participating employers or
participating municipalities, and shall start receiving the member's
accrued monthly retirement benefit from the System. Such a member
may receive in-service distributions of such member's accrued
monthly retirement benefit from the System if such member is
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reemployed by a participating employer only if such reemployment is
in a position not covered under the System.
D. When a member begins participation in the Oklahoma Public
Employees Deferred Option Plan, the contribution of the employee
shall cease. The employer contributions shall continue to be paid
in accordance with Section 920 or 920A of this title. Municipal
contributions for employees who elect the Oklahoma Public Employees
Deferred Option Plan shall be credited equally to the Oklahoma
Public Employees Retirement System and to the Oklahoma Public
Employees Deferred Option Plan. The monthly retirement benefits
that would have been payable had the member elected to cease
employment and receive a service retirement shall be paid into the
Oklahoma Public Employees Deferred Option Plan account.
E. A member who participates in this plan shall be eligible to
receive cost of living increases.
F. A participant in the Oklahoma Public Employees Deferred
Option Plan shall receive, at the option of the participant:
1. A lump sum payment from the account equal to the option
account balance of the participant, payable to the participant;
2. A lump sum payment from the account equal to the option
account balance of the participant, payable to the annuity provider
which shall be selected by the participant as a result of the
research and investigation of the participant; or
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3. Any other method of payment if approved by the Oklahoma
Public Employees Retirement System Board of Trustees.
Notwithstanding any other provision contained herein to the
contrary, commencement of distributions under the Oklahoma Public
Employees Deferred Option Plan shall be no later than the actual
retirement date of the member.
G. If the participant dies during the period of participation
in the Oklahoma Public Employees Deferred Option Plan, a lump sum
payment equal to the account balance of the participant shall be
paid to the recipients, which may include a trust, properly
designated in writing by the participant or, if none, to the
surviving spouse who was married to the participant for the thirty
(30) continuous months immediately preceding the death of the
participant; provided, a surviving spouse of a participant who died
in, and as a consequence of, the performance of the participant's
duty for a participating municipality shall not be subject to the
thirty-month marriage requirement for survivor benefits or, if no
surviving spouse, to the estate of the participant.
SECTION 3. Section 1 of this act shall become effective October
1, 2026.
SECTION 4. Section 2 of this act shall become effective
November 1, 2026.
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Passed the House of Representatives the 24th day of March, 2026.
Presiding Officer of the House
of Representatives
Passed the Senate the ______ day of __________, 2026.
Presiding Officer of the Senate