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STATE OF OKLAHOMA
2nd Session of the 60th Legislature (2026)
HOUSE BILL 3225 By: Humphrey
AS INTRODUCED
An Act relating to public retirement systems;
amending 62 O.S. 2021, Section 3103, as last amended
by Section 127 Chapter 452, O.S.L. 2024 (62 O.S.
Supp. 2025, Section 3103), which relates to the
Oklahoma Pension Legislation Actuarial Analysis Act;
modifying definitions; imposing conditions related to
approvals by the Internal Revenue Service; providing
for termination of provisions of the Retirement
Freedom Act; providing for cessation of certain
employee contributions; requiring employee
contributions pursuant to provisions of defined
benefit plan; providing for cessation of certain
employer contributions; requiring employer
contributions pursuant to provisions of defined
benefit plan; authorizing management of defined
contribution plan accounts for certain period of
time; requiring irrevocable election with regard to
defined contribution plan account balances; providing
for termination of effect of provisions of the
Retirement Freedom Act; providing exceptions;
providing for vesting treatment of defined
contribution plan account balances as of designated
date; providing for computation of service credit in
defined benefit plan based on purchase of service at
actuarial cost; amending 74 O.S. 2021, Sections 902,
as last amended by Section 1, Chapter 280, O.S.L.
2024, 913.4, 920, and 1707(74 O.S. Supp. 2025,
Section 902), which relates to the Oklahoma Public
Employees Retirement System and the Deferred Savings
Incentive Plan; modifying provisions related to
participation in defined contribution plan; providing
for participating service credit resulting from
purchase at actuarial cost; modifying provisions
related to membership of elected officials in defined
contribution plan; modifying provisions related to
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payment of employer contributions; modifying
provisions related to participation in deferred
compensation plan; providing for codification; and
providing 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 127, Chapter 452, 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:
1. "Amendment" means any amendment including a substitute bill,
made to a retirement bill by any committee of the House 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
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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:
(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
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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
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
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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
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
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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,
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,
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(5) Section 17-116.22 of Title 70 of the Oklahoma
Statutes, or
(6) Section 930.11 of Title 74 of the Oklahoma
Statutes,
i. which provides for the reinstatement of retirement
benefits for members of the Oklahoma Law Enforcement
Retirement System pursuant to Section 2-305 of Title
47 of the Oklahoma Statutes for those who were hired
on or after November 1, 2012, or May 24, 2013,
j. which authorizes the purchase of military service
credit as provided in Section 50-128 of Title 11,
Section 1102.2 of Title 20, Section 2-307.4 of Title
47, and Section 913.8 of Title 74 of the Oklahoma
Statutes,
k. which restores benefits pursuant to Sections 49-100.1,
49-101, 49-101.2, 49-106.1, 49-108, 49-117.1, and 49-
135 of Title 11 of the Oklahoma Statutes,
l. which modifies the computation of the line-of-duty
disability benefit pursuant to the provisions of this
act, or
m. which provides for the termination of the defined
contribution retirement plan created pursuant to
Section 935.1 et seq. of Title 74 of the Oklahoma
Statutes pursuant to the provisions of this act
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together with provisions for conversion of defined
contribution plan account balances into participating
service in the Oklahoma Public Employees System
defined benefit plan created pursuant to Section 901
et seq. of Title 74 of the Oklahoma Statutes or such
other disposition of defined contribution plan account
balances as may be authorized pursuant to the
provisions 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 Oklahoma Legislature which creates or amends any law directly
affecting a retirement system. A retirement bill shall not mean a
bill or resolution that impacts the revenue of any state tax in
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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 935.101 of Title 74, unless
there is created a duplication in numbering, reads as follows:
The provisions of this act shall be contingent upon final
approval by the Internal Revenue Service with respect to the
distribution of monies from member accounts in the defined
contribution plan established pursuant to Section 935.1 et seq. of
Title 74 of the Oklahoma Statutes. The Oklahoma Public Employees
Retirement System shall make such applications to the Internal
Revenue Service as may be required in order to implement the
provisions of this act.
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SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 935.102 of Title 74, unless
there is created a duplication in numbering, reads as follows:
A. Except as may be required by the provisions of this act, the
provisions of Section 935.1 et seq. of Title 74 of the Oklahoma
Statutes shall cease to have the force and effect of law on November
1, 2026.
B. Effective November 1, 2026, each member maintaining an
account established pursuant to the provisions of Section 935.1 et
seq. of Title 74 of the Oklahoma Statutes shall cease making
employee contributions to their account and shall begin
participating service in the defined benefit plan created pursuant
to the provisions of Section 902 et seq. of Title 74 of the Oklahoma
Statutes. Effective November 1, 2026, each member who maintains an
account established pursuant to the provisions of Section 935.1 et
seq. of Title 74 of the Oklahoma Statutes shall make employee
contributions to the defined benefit plan as required by Section
919.1 of Title 74 of the Oklahoma Statutes.
C. Employer contributions and matching amounts otherwise
required by the provisions of Section 935.5 of Title 74 of the
Oklahoma Statutes shall cease and employer contributions with
respect to employee compensation shall be made as provided by
Section 920 or 920A of Title 74 of the Oklahoma Statutes.
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D. Employees maintaining a plan account established pursuant to
the provisions of Section 935.1 et seq. of Title 74 of the Oklahoma
Statutes may continue to actively manage the plan account, including
any gains or losses resulting from such active management, until
final disposition of the plan account balance by acquisition of
service credit in the defined benefit plan created pursuant to the
provisions of Section 901 et seq. of Title 74 of the Oklahoma
Statutes, a transfer of the account balance to a tax-qualified
retirement plan or such other disposition as may be authorized
pursuant to the Internal Revenue Code of 1986, as amended, and rules
and regulations promulgated pursuant thereto.
E. Each person maintaining a plan account pursuant to the
provisions of Section 935.1 et seq. of Title 74 of the Oklahoma
Statutes shall make an election, which shall be irrevocable, within
one hundred twenty (120) days from the effective date of this act to
transfer the account balance to acquire participating service credit
in the defined benefit plan created pursuant to the provisions of
Section 901 et seq. of Title 74 of the Oklahoma Statutes using the
actuarial cost provisions of Section 913.5 of Title 74 of the
Oklahoma Statutes, to transfer the balance to a tax-qualified plan
or such other disposition as may be allowed pursuant to the Internal
Revenue Code of 1986, as amended, or any rules or regulations
promulgated pursuant thereto.
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SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 935.103 of Title 74, unless
there is created a duplication in numbering, reads as follows:
A. Subject to the conditions imposed pursuant to this act, the
provisions of the Retirement Freedom Act, Section 935.1 et seq. of
Title 74 of the Oklahoma Statutes, shall cease to have the force and
effect of law upon November 1, 2026, or the last date required for
distribution of the plan account balances to acquire service credit
in the defined benefit plan created and maintained by the Oklahoma
Public Employees Retirement System pursuant to Section 901 et seq.
of Title 74 of the Oklahoma Statutes, transfer of the account
balances to a tax-qualified retirement plan as defined by the
Internal Revenue Code of 1986, as amended, or such other disposition
as may be required in order to terminate the defined contribution
plan and make final disposition of account balances created and
maintained pursuant to the provisions of Section 935.1 et seq. of
Title 74 of the Oklahoma Statutes, whichever date last occurs.
B. Effective November 1, 2026, notwithstanding the provisions
of Section 935.7 of Title 74 of the Oklahoma Statutes, a member
maintaining a defined contribution plan account pursuant to the
provisions of the Retirement Freedom Act shall be one hundred
percent (100%) vested in their account balance as of that date,
including employer matching amounts and any gains resulting from
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management of the account pursuant to the provisions of the
Retirement Freedom Act.
SECTION 5. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 935.104 of Title 74, unless
there is created a duplication in numbering, reads as follows:
Any service credit in the Oklahoma Public Employees Retirement
System as provided by Section 901 et seq. of Title 74 of the
Oklahoma Statutes acquired by transfer of an account balance
pursuant to the provisions of this act shall not exceed the total
period of participating service accrued by the member while a
participant in the defined contribution plan created by Section
935.1 et seq. of Title 74 of the Oklahoma Statutes.
SECTION 6. AMENDATORY 74 O.S. 2021, Section 902, as last
amended by Section 1, Chapter 280, O.S.L. 2024 (74 O.S. Supp. 2025,
Section 902), is amended to read as follows:
Section 902. As used in Section 901 et seq. of this title:
(1) "System" means the Oklahoma Public Employees Retirement
System as established by Section 901 et seq. of this title and as it
may hereafter be amended;
(2) "Accumulated contributions" means the sum of all
contributions by a member to the System which shall be credited to
the member's account;
(3) "Act" means Sections 901 to 932, inclusive, of this title;
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(4) "Actuarial equivalent" means a deferred income benefit of
equal value to the accumulated deposits or benefits when computed
upon the basis of the actuarial tables in use by the System;
(5) "Actuarial tables" means the actuarial tables approved and
in use by the Board at any given time;
(6) "Actuary" means the actuary or firm of actuaries employed
by the Board at any given time;
(7) "Beneficiary" means any person named by a member to receive
any benefits as provided for by Section 901 et seq. of this title.
If there is no beneficiary living at time of member employee's
death, the member's estate shall be the beneficiary;
(8) "Board" means the Oklahoma Public Employees Retirement
System Board of Trustees;
(9) "Compensation" means all salary and wages, as defined by
the Board of Trustees, including amounts deferred under deferred
compensation agreements entered into between a member and a
participating employer, but exclusive of payment for overtime,
payable to a member of the System for personal services performed
for a participating employer but shall not include compensation or
reimbursement for traveling, or moving expenses, or any compensation
in excess of the maximum compensation level, provided:
(a) For compensation for service prior to January 1, 1988,
the maximum compensation level shall be Twenty-five
Thousand Dollars ($25,000.00) per annum.
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For compensation for service on or after January 1,
1988, through June 30, 1994, the maximum compensation
level shall be Forty Thousand Dollars ($40,000.00) per
annum.
For compensation for service on or after July 1, 1994,
through June 30, 1995, the maximum compensation level
shall be Fifty Thousand Dollars ($50,000.00) per
annum; for compensation for service on or after July
1, 1995, through June 30, 1996, the maximum
compensation level shall be Sixty Thousand Dollars
($60,000.00) per annum; for compensation for service
on or after July 1, 1996, through June 30, 1997, the
maximum compensation level shall be Seventy Thousand
Dollars ($70,000.00) per annum; and for compensation
for service on or after July 1, 1997, through June 30,
1998, the maximum compensation level shall be Eighty
Thousand Dollars ($80,000.00) per annum. For
compensation for services on or after July 1, 1998,
there shall be no maximum compensation level for
retirement purposes.
(b) Compensation for retirement purposes shall include any
amount of elective salary reduction under Section 457
of the Internal Revenue Code of 1986 and any amount of
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nonelective salary reduction under Section 414(h) of
the Internal Revenue Code of 1986.
(c) Notwithstanding any provision to the contrary, the
compensation taken into account for any employee in
determining the contribution or benefit accruals for
any plan year is limited to the annual compensation
limit under Section 401(a)(17) of the federal Internal
Revenue Code.
(d) Current appointed members of the Oklahoma Tax
Commission whose salary is constitutionally limited
and is less than the highest salary allowed by law for
his or her position shall be allowed, within ninety
(90) days from March 21, 2001, to make an election to
use the highest salary allowed by law for the position
to which the member was appointed for the purposes of
making contributions and determination of retirement
benefits. Such election shall be irrevocable and be
in writing. Reappointment to the same office shall
not permit a new election. Members appointed to the
Oklahoma Tax Commission after the March 21, 2001,
shall make such election, pursuant to this
subparagraph, within ninety (90) days of taking
office;
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(10) "Credited service" means the sum of participating service,
prior service and elected service;
(11) "Dependent" means a parent, child, or spouse of a member
who is dependent upon the member for at least one-half (1/2) of the
member's support;
(12) "Effective date" means the date upon which the System
becomes effective by operation of law;
(13) "Eligible employer" means the state and any county, county
hospital, city or town, conservation districts, circuit engineering
districts and any public or private trust in which a county, city or
town participates and is the primary beneficiary, is to be an
eligible employer for the purpose of Section 901 et seq. of this
title only, whose employees are covered by Social Security and are
not covered by or eligible for another retirement plan authorized
under the laws of this state which is in operation on the initial
entry date. Emergency medical service districts may join the System
upon proper application to the Board. Provided, affiliation by a
county hospital shall be in the form of a resolution adopted by the
board of control.
(a) If a class or several classes of employees of any
above-defined employers are covered by Social Security
and are not covered by or eligible for and will not
become eligible for another retirement plan authorized
under the laws of this state, which is in operation on
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the effective date, such employer shall be deemed an
eligible employer, but only with respect to that class
or those classes of employees as defined in this
section.
(b) A class or several classes of employees who are
covered by Social Security and are not covered by or
eligible for and will not become eligible for another
retirement plan authorized under the laws of this
state, which is in operation on the effective date,
and when the qualifications for employment in such
class or classes are set by state law; and when such
class or classes of employees are employed by a county
or municipal government pursuant to such
qualifications; and when the services provided by such
employees are of such nature that they qualify for
matching by or contributions from state or federal
funds administered by an agency of state government
which qualifies as a participating employer, then the
agency of state government administering the state or
federal funds shall be deemed an eligible employer,
but only with respect to that class or those classes
of employees as defined in this subsection; provided,
that the required contributions to the retirement plan
may be withheld from the contributions of state or
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federal funds administered by the state agency and
transmitted to the System on the same basis as the
employee and employer contributions are transmitted
for the direct employees of the state agency. The
retirement or eligibility for retirement under the
provisions of law providing pensions for service as a
volunteer firefighter shall not render any person
ineligible for participation in the benefits provided
for in Section 901 et seq. of this title. An employee
of any public or private trust in which a county, city
or town participates and is the primary beneficiary
shall be deemed to be an eligible employee for the
purpose of Section 901 et seq. of this title only.
(c) All employees of the George Nigh Rehabilitation
Institute who elected to retain membership in the
System, pursuant to Section 913.7 of this title, shall
continue to be eligible employees for the purposes of
Section 901 et seq. of this title. The George Nigh
Rehabilitation Institute shall be considered a
participating employer only for such employees.
(d) All employees of CompSource Mutual Insurance Company
who retain membership in the Oklahoma Public Employees
Retirement System pursuant to Section 913.9 of this
title shall continue to be eligible employees for the
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purposes of the Oklahoma Public Employees Retirement
System. CompSource Mutual Insurance Company shall be
considered a participating employer only for such
employees.
(e) All employees of a successor organization, as defined
by Section 5-60.12 of Title 2 of the Oklahoma
Statutes, who retain membership in the Oklahoma Public
Employees Retirement System pursuant to Section 5-
60.35 of Title 2 of the Oklahoma Statutes shall
continue to be eligible employees for the purposes of
the Oklahoma Public Employees Retirement System. A
successor organization shall be considered a
participating employer only for such employees.
(f) A participating employer of the Teachers' Retirement
System of Oklahoma, who has one or more employees who
have made an election pursuant to enabling legislation
to retain membership in the System as a result of
change in administration, shall be considered a
participating employer of the Oklahoma Public
Employees Retirement System only for such employees;
(14) "Employee" means any officer or employee of a
participating employer, whose employment is not seasonal or
temporary and whose employment requires at least one thousand
(1,000) hours of work per year and whose salary or wage is equal to
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the hourly rate of the monthly minimum wage for state employees.
For those eligible employers outlined in Section 910 of this title,
the rate shall be equal to the hourly rate of the monthly minimum
wage for that employer. Each employer, whose minimum wage is less
than the state's minimum wage, shall inform the System of the
minimum wage for that employer. This notification shall be by
resolution of the governing body.
(a) Any employee of the county extension agents who is not
currently participating in the Teachers' Retirement
System of Oklahoma shall be a member of this System.
(b) Eligibility shall not include any employee who is a
contributing member of the United States Civil Service
Retirement System.
(c) It shall be mandatory for an officer, appointee or
employee of the office of district attorney to become
a member of this System if he or she is not currently
participating in a county retirement system. Provided
further, that if an officer, appointee or employee of
the office of district attorney is currently
participating in such county retirement system, he or
she is ineligible for this System as long as he or she
is eligible for such county retirement system. Any
eligible officer, appointee or employee of the office
of district attorney shall be given credit for prior
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service as defined in this section. The provisions
outlined in Section 917 of this title shall apply to
those employees who have previously withdrawn their
contributions.
(d) Eligibility shall also not include any officer or
employee of the Oklahoma Employment Security
Commission, except for those officers and employees of
the Commission electing to transfer to this System
pursuant to the provisions of Section 910.1 of this
title or any other class of officers or employees
specifically exempted by the laws of this state,
unless there be a consolidation as provided by Section
912 of this title. Employees of the Oklahoma
Employment Security Commission who are ineligible for
enrollment in the Oklahoma Employment Security
Commission Retirement Plan, that was in effect on
January 1, 1964, shall become members of this System.
(e) Any employee employed by the Legislative Service
Bureau, Senate or House of Representatives for the
full duration of a regular legislative session shall
be eligible for membership in the System regardless of
classification as a temporary employee and may
participate in the System during the regular
legislative session at the option of the employee.
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For purposes of this subparagraph, the determination
of whether an employee is employed for the full
duration of a regular legislative session shall be
made by the Legislative Service Bureau if such
employee is employed by the Legislative Service
Bureau, the Senate if such employee is employed by the
Senate, or by the House of Representatives if such
employee is employed by the House of Representatives.
Each regular legislative session during which the
legislative employee or an employee of the Legislative
Service Bureau participates full time shall be counted
as six (6) months of full-time participating service.
(i) Except as otherwise provided by this
subparagraph, once a temporary session employee
makes a choice to participate or not, the choice
shall be binding for all future legislative
sessions during which the employee is employed.
(ii) Notwithstanding the provisions of division (i) of
this subparagraph, any employee, who is eligible
for membership in the System because of the
provisions of this subparagraph and who was
employed by the Senate or House of
Representatives after January 1, 1989, may file
an election, in a manner specified by the Board,
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to participate as a member of the System prior to
September 1, 1989.
(iii) Notwithstanding the provisions of division (i) of
this subparagraph, a temporary legislative
session employee who elected to become a member
of the System may withdraw from the System
effective the day such employee elected to
participate in the System upon written request to
the Board. Any such request must be received by
the Board prior to October 1, 1990. All employee
contributions made by the temporary legislative
session employee shall be returned to the
employee without interest within four (4) months
of receipt of the written request.
(iv) A member of the System who did not initially
elect to participate as a member of the System
pursuant to this subparagraph shall be able to
acquire service performed as a temporary
legislative session employee for periods of
service performed prior to the date upon which
the person became a member of the System if:
a. the member files an election with the System
not later than December 31, 2000, to
purchase the prior service; and
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b. the member makes payment to the System of
the actuarial cost of the service credit
pursuant to subsection A of Section 913.5 of
this title. The provisions of Section 913.5
of this title shall be applicable to the
purchase of the service credit, including
the provisions for determining service
credit in the event of incomplete payment
due to cessation of payments, death,
termination of employment or retirement, but
the payment may extend for a period not to
exceed ninety-six (96) months;
(15) "Entry date" means the date on which an eligible employer
joins the System. The first entry date pursuant to Section 901 et
seq. of this title shall be January 1, 1964;
(16) "Executive Director" means the managing officer of the
System employed by the Board under Section 901 et seq. of this
title;
(17) "Federal Internal Revenue Code" means the federal Internal
Revenue Code of 1954 or 1986, as amended and as applicable to a
governmental plan as in effect on July 1, 1999;
(18) "Final average compensation" means the average annual
compensation, including amounts deferred under deferred compensation
agreements entered into between a member and a participating
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employer, up to, but not exceeding the maximum compensation levels
as provided in paragraph (9) of this section received during the
highest three (3) of the last ten (10) years of participating
service immediately preceding retirement or termination of
employment and with respect to members whose first participating
service occurs on or after July 1, 2013, the compensation received
during the highest five (5) of the last ten (10) years of
participating service immediately preceding retirement or
termination of employment. Provided, no member shall retire with a
final average compensation unless the member has made the required
contributions on such compensation, as defined by the Board of
Trustees;
(19) "Fiscal year" means the period commencing July 1 of any
year and ending June 30 of the next year. The fiscal year is the
plan year for purposes of the federal Internal Revenue Code;
however, the calendar year is the limitation year for purposes of
Section 415 of the federal Internal Revenue Code;
(20) "Fund" means the Oklahoma Public Employees Retirement Fund
as created by Section 901 et seq. of this title;
(21) "Leave of absence" means a period of absence from
employment without pay, authorized and approved by the employer and
acknowledged to the Board, and which after the effective date does
not exceed two (2) years;
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(22) "Member" means an eligible employee or elected official
who is in the System and is making the required employee or elected
official contributions, or any former employee or elected official
who shall have made the required contributions to the System and
shall have not received a refund or withdrawal;
(23) "Military service" means service in the Armed Forces of
the United States by an honorably discharged person during the
following time periods, as reflected on such person's Defense
Department Form 214, not to exceed five (5) years for combined
participating and/or prior service, as follows:
(a) during the following periods, including the beginning
and ending dates, and only for the periods served,
from:
(i) April 6, 1917, to November 11, 1918, commonly
referred to as World War I,
(ii) September 16, 1940, to December 7, 1941, as a
member of the 45th Division,
(iii) December 7, 1941, to December 31, 1946, commonly
referred to as World War II,
(iv) June 27, 1950, to January 31, 1955, commonly
referred to as the Korean Conflict or the Korean
War,
(v) February 28, 1961, to May 7, 1975, commonly
referred to as the Vietnam era, except that:
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a. for the period from February 28, 1961, to
August 4, 1964, military service shall only
include service in the Republic of Vietnam
during that period, and
b. for purposes of determining eligibility for
education and training benefits, such period
shall end on December 31, 1976, or
(vi) August 1, 1990, to December 31, 1991, commonly
referred to as the Gulf War, the Persian Gulf
War, or Operation Desert Storm, but excluding any
person who served on active duty for training
only, unless discharged from such active duty for
a service-connected disability;
(b) during a period of war or combat military operation
other than a conflict, war or era listed in
subparagraph (a) of this paragraph, beginning on the
date of Congressional authorization, Congressional
resolution, or Executive Order of the President of the
United States, for the use of the Armed Forces of the
United States in a war or combat military operation,
if such war or combat military operation lasted for a
period of ninety (90) days or more, for a person who
served, and only for the period served, in the area of
responsibility of the war or combat military
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operation, but excluding a person who served on active
duty for training only, unless discharged from such
active duty for a service-connected disability, and
provided that the burden of proof of military service
during this period shall be with the member, who must
present appropriate documentation establishing such
service.
An eligible member under this paragraph shall include only those
persons who shall have served during the times or in the areas
prescribed in this paragraph, and only if such person provides
appropriate documentation in such time and manner as required by the
System to establish such military service prescribed in this
paragraph, or for service pursuant to subdivision a of division (v)
of subparagraph (a) of this paragraph those persons who were awarded
service medals, as authorized by the United States Department of
Defense as reflected in the veteran's Defense Department Form 214,
related to the Vietnam Conflict for service prior to August 5, 1964;
(24) "Normal retirement date" means the date on which a member
may retire with full retirement benefits as provided in Section 901
et seq. of this title, such date being whichever occurs first:
(a) the first day of the month coinciding with or
following a member's:
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(1) sixty-second birthday with respect to members
whose first participating service occurs prior to
November 1, 2011, or
(2) sixty-fifth birthday with respect to members
whose first participating service occurs on or
after November 1, 2011, or with respect to
members whose first participating service occurs
on or after November 1, 2011, who reach a minimum
age of sixty (60) years and who also reach a
normal retirement date pursuant to subparagraph c
of this paragraph,
(b) for any person who initially became a member prior to
July 1, 1992, and who does not reach a normal
retirement date pursuant to division (1) of
subparagraph (a) of this paragraph, the first day of
the month coinciding with or following the date at
which the sum of a member's age and number of years of
credited service total eighty (80); such a normal
retirement date will also apply to any person who
became a member of the sending system as defined in
Section 901 et seq. of this title, prior to July 1,
1992, regardless of whether there were breaks in
service after July 1, 1992,
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(c) for any person who became a member after June 30,
1992, but prior to November 1, 2011, and who does not
reach a normal retirement date pursuant to division
(1) of subparagraph (a) of this paragraph, the first
day of the month coinciding with or following the date
at which the sum of a member's age and number of years
of credited service total ninety (90),
(d) in addition to subparagraphs (a), (b) and (c) of this
paragraph, the first day of the month coinciding with
or following a member's completion of at least twenty
(20) years of full-time-equivalent employment as:
(i) a correctional or probation and parole officer
with the Department of Corrections and at the
time of retirement, the member was a correctional
or probation and parole officer with the
Department of Corrections,
(ii) a correctional officer, probation and parole
officer or fugitive apprehension agent with the
Department of Corrections who is in such position
on June 30, 2004, or who is hired after June 30,
2004, and who receives a promotion or change in
job classification after June 30, 2004, to
another position in the Department of
Corrections, so long as such officer or agent has
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at least five (5) years of service as a
correctional officer, probation and parole
officer or fugitive apprehension agent with the
Department, has twenty (20) years of full-time-
equivalent employment with the Department and was
employed by the Department at the time of
retirement,
(iii) a firefighter with the Military Department of the
State of Oklahoma either employed for the first
time on or after July 1, 2002, or who was
employed prior to July 1, 2002, in such position
and who makes the election authorized by division
(2) of subparagraph b of paragraph (9) of
subsection A of Section 915 of this title and at
the time of retirement, the member was a
firefighter with the Military Department of the
State of Oklahoma, and such member has at least
twenty (20) years of credited service upon which
the two and one-half percent (2 1/2%) multiplier
will be used in calculating the retirement
benefit,
(iv) a public safety officer employed by the Grand
River Dam Authority for the first time on or
after July 1, 2016,
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(v) a deputy sheriff or jailer employed by any county
that is a participating employer in the System
for the first time as a deputy sheriff or jailer
on or after November 1, 2020, or
(vi) beginning November 1, 2024, a deputy sheriff or
jailer employed by any county that is a
participating employer in the System for the
first time as a deputy sheriff or jailer before
November 1, 2020, including those who make the
election authorized by division (2) of
subparagraph b of paragraph (10) of subsection A
of Section 915 of this title, and at the time of
retirement, if the member was a deputy sheriff or
jailer employed by the participating county, and
such member has at least twenty (20) years of
credited service upon which the two and one-half
percent (2 1/2%) multiplier will be used in
calculating the retirement benefit,
(e) for those fugitive apprehension agents who retire on
or after July 1, 2002, the first day of the month
coinciding with or following a member's completion of
at least twenty (20) years of full-time-equivalent
employment as a fugitive apprehension agent with the
Department of Corrections and at the time of
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retirement, the member was a fugitive apprehension
agent with the Department of Corrections, or
(f) for any member who was continuously employed by an
entity or institution within The Oklahoma State System
of Higher Education and whose initial employment with
such entity or institution was prior to July 1, 1992,
and who without a break in service of more than thirty
(30) days became employed by an employer participating
in the Oklahoma Public Employees Retirement System,
the first day of the month coinciding with or
following the date at which the sum of the member's
age and number of years of credited service total
eighty (80);
(25) "Participating employer" means an eligible employer who
has agreed to make contributions to the System on behalf of its
employees;
(26) "Participating service" means the period of employment
after the entry date for which credit is granted a member and for
purposes of this act shall include any period of service purchased
at actuarial cost according to the requirements of Section 913.5 of
this title as a result of an election made by a person having a
defined contribution plan account created pursuant to the provisions
of Section 935.1 et seq. of this title as provided by Section 3 of
this act. Provided, on or after the effective date of this act,
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military service credit purchased under Section 913.8 of this title
shall only be considered "participating service" if such service is
immediately preceded by a period of employment with a participating
employer and followed by a return to service as an employee with the
same or another participating employer within ninety (90) days
immediately following discharge from such military service;
(27) "Prior service" means the period of employment of a member
by an eligible employer prior to the member's entry date for which
credit is granted a member under Section 901 et seq. of this title.
Provided, on or after the effective date of this act, "prior
service" shall also include service purchased under Section 913.8 of
this title which does not meet the requirements of paragraph 26 of
this section;
(28) "Retirant" or "retiree" means a member who has retired
under the System;
(29) "Retirement benefit" means a monthly income with benefits
accruing from the first day of the month coinciding with or
following retirement and ending on the last day of the month in
which death occurs or the actuarial equivalent thereof paid in such
manner as specified by the member pursuant to Section 901 et seq. of
this title or as otherwise allowed to be paid at the discretion of
the Board;
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(30) "Retirement coordinator" means the individual designated
by each participating employer through whom System transactions and
communication shall be directed;
(31) "Social Security" means the old-age survivors and
disability section of the federal Social Security Act;
(32) "Total disability" means a physical or mental disability
accepted for disability benefits by the federal Social Security
System;
(33) "Service-connected disability benefits" means military
service benefits which are for a service-connected disability rated
at twenty percent (20%) or more by the Veterans Administration or
the Armed Forces of the United States;
(34) "Elected official" means a person elected to a state
office in the legislative or executive branch of state government or
a person elected to a county office for a definite number of years
and shall include an individual who is appointed to fill the
unexpired term of an elected state official;
(35) "Elected service" means the period of service as an
elected official;
(36) "Limitation year" means the year used in applying the
limitations of Section 415 of the Internal Revenue Code of 1986,
which year shall be the calendar year; and
(37) "Public safety officers of the Grand River Dam Authority"
means those persons hired by the Grand River Dam Authority on or
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after March 21, 2001, who are certified by the Council on Law
Enforcement Education and Training or an equivalent certifying
entity for law enforcement personnel training and who perform law
enforcement functions as part of their regularly assigned duties and
responsibilities on a full-time basis. With respect to any public
safety officer hired by the Grand River Dam Authority on or after
March 21, 2001, any earned benefits or credits toward retirement
benefits from previous participation within the Oklahoma Public
Employees Retirement System or the Oklahoma Law Enforcement
Retirement System shall remain within that system.
SECTION 7. AMENDATORY 74 O.S. 2021, Section 913.4, is
amended to read as follows:
Section 913.4. A. 1. Except as otherwise provided in this
subsection, an elected official may elect to participate in the
System and if he or she elects to do so shall have the option of
participating at any one of the computation factors set forth in
paragraph 3 or 4 of this subsection and will receive retirement
benefits in accordance with the computation factor chosen. The
election on participation in the System must be in writing, must
specify the computation factor chosen, and must be filed with the
System within ninety (90) days after the elected official takes
office. The election to participate and the election of a
computation factor shall be irrevocable. Reelection to the same
office will not permit new elections. Failure of an elected
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official to file such election form within the ninety-day period
shall be deemed an irrevocable election to participate in the System
at the maximum computation factor.
2. Contributions and benefits will be based upon the elected
official's annual compensation as defined in Section 902 of this
title. Employer and elected official contributions shall be
remitted at least monthly, or as the Board may otherwise provide, to
the System for deposit in the Oklahoma Public Employees Retirement
Fund. Effective July 1, 1994, and thereafter, the participating
employer shall contribute as provided in Section 920 of this title.
3. Except as provided in paragraph 4 of this subsection,
effective July 1, 1994, the computation factor selected and the
corresponding elected official contribution rate shall be as
follows:
Elected official Computation Alternate
Contribution Rate Factor Formula
4.5% 1.9% $12.50
6% 2.5% $20.00
7.5% 3.0% $25.00
8.5% 3.4% $27.50
9% 3.6% $30.00
10% 4.0% $40.00
4. Elected officials who are first elected or appointed to an
elected office on or after November 1, 2010, shall elect a
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computation factor of either 1.9% or 4%. The elected official
contribution rate for the 1.9% computation factor is currently 4.5%
and the contribution rate for the 4% computation factor is currently
10%. All other computation factors and contribution rates set forth
in paragraph 3 of this subsection shall not be available to any
person first elected or appointed to an elected office on or after
November 1, 2010.
5. The contribution rate for elected officials who are first
elected or appointed to an elected office on or after November 1,
2011, shall be in the amount specified in paragraph (a) of
subsection (1) of Section 919.1 of this title. The amount of the
retirement benefit for elected officials who are first elected or
appointed to an elected office on or after November 1, 2011, shall
be based on the provisions of paragraph (1) of subsection A of
Section 915 of this title.
6. The computation factors and corresponding elected official
contribution rates provided for in paragraphs 3 and 4 of this
subsection shall be based on the entire compensation as an elected
official subject to the definition and maximum compensation levels
as set forth in paragraph (9) of Section 902 of this title.
7. Elected officials who are first elected or appointed on or
after November 1, 2011, shall also be eligible to make the election
of an alternate multiplier and contribution rate pursuant to
paragraph 2 of subsection A of Section 915 of this title.
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8. A statewide elected official or legislator whose first
service as an elected official occurs on or after November 1, 2015,
shall become a participant in the defined contribution system
created by Sections 935.1 through 935.11 of this title and such
elected official shall not accrue any service credit in the defined
benefit plan of the Oklahoma Public Employees Retirement System
created pursuant to Section 901 et seq. of this title.
9. Notwithstanding the provisions of paragraph 8 of this
subsection, a statewide elected official or legislator who is first
elected or appointed on or after November 1, 2018, and who has
participating service in the defined benefit plan prior to November
1, 2015, shall be a member of the defined benefit plan.
B. The normal retirement date for an elected official shall be
the first day of the month coinciding with or following the
official's sixtieth birthday or the first day of the month
coinciding with or following the date at which the sum of the
elected official's age and number of years of credited service total
eighty (80). The normal retirement date for an elected official
first elected or appointed to an elected office on or after November
1, 2011, shall be the first day of the month coinciding with or
following the official's sixty-fifth birthday or the date upon which
the elected or appointed official attains the age of sixty-two (62)
and who has at least ten (10) years of elected or appointed service.
Any elected official first elected or appointed to an elected office
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before November 1, 2011, who has a minimum of ten (10) years'
participating service may retire under the early retirement
provisions of this act, including those electing a vested benefit
and shall receive an adjustment of annual benefits in accordance
with the following percentage schedule:
Percentage of Normal
Age Retirement Benefits
60 100%
59 94%
58 88%
57 82%
56 76%
55 70%
Any elected official first elected or appointed to an elected
office on or after November 1, 2011, who has a minimum of ten (10)
years' elected or appointed service may retire under the early
retirement provisions of this act, including those electing a vested
benefit and shall receive an adjustment of annual benefits in
accordance with the following percentage schedule:
Percentage of Normal
Age Retirement Benefits
62 100%
61 93.33%
60 86.67%
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C. 1. Any elected official shall receive annual benefits
computed based upon the computation factor selected multiplied by
the member's highest annual compensation received as an elected
official prior to retirement or termination of employment multiplied
by the number of years of credited service. No elected official
shall retire using such highest annual compensation unless the
elected official has made the required election and has paid the
required contributions on such salary.
2. The retirement benefit may be computed pursuant to the
provisions of paragraph (1) of subsection A of Section 915 of this
title if the benefit would be higher. Elected officials who have a
vested benefit prior to July 1, 1980, may elect to receive annual
benefits based on the alternate formula provided above. Such annual
benefits shall be paid in equal monthly installments.
3. Elected officials who become members of the Oklahoma Public
Employees Retirement System on or after August 22, 2008, will
receive retirement benefits in accordance with the computation
factor selected pursuant to subsection A of this section multiplied
by the member's highest annual compensation received as an elected
official and only for those years of credited service the member
served as an elected official. If such elected official has
participating service as a nonelected member, then such nonelected
service shall be computed separately pursuant to the provisions of
paragraph (1) of subsection A of Section 915 of this title with the
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final benefit result added to the final benefit result for elected
service. In no event shall the elected official be entitled to
apply the computation factor selected pursuant to subsection A of
this section or the compensation received as an elected official to
the computation of nonelected service.
4. Elected officials who are first elected or appointed to an
elected office on or after August 22, 2008, may not receive a
maximum benefit greater than their single highest annual
compensation received as a member of the Oklahoma Public Employees
Retirement System.
D. Any elected official making an election to participate at a
computation factor less than the maximum and later selecting a
higher computation factor shall contribute to the System a sum equal
to the amount which the elected official would have contributed if
the elected official had made such election at the time the elected
official first became eligible, plus interest as determined by the
Board, in order to receive the additional benefits for all service
as an elected official; otherwise, the additional benefits shall be
applicable only to service for which the elected official pays the
appropriate percent of contributions to the System.
E. The surviving spouse of a deceased elected official who was
first elected or appointed to an elected office before November 1,
2011, and who has at least six (6) years of participating service
and the surviving spouse of a deceased elected official who was
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first elected or appointed to an elected office on or after November
1, 2011, and who has at least eight (8) years of participating
service shall be entitled to receive survivor benefits in the amount
herein prescribed, if married to the decedent continuously for a
period of at least three (3) years immediately preceding the elected
official's death. Provided the elected official had met the service
requirements, survivor benefits shall be payable when the deceased
member would have met the requirements for normal or early
retirement. The amount of the benefits the surviving spouse may
receive shall be fifty percent (50%) of the amount of benefits the
deceased elected official was receiving or will be eligible to
receive. Elected officials may elect a retirement option as
provided in Section 918 of this title in lieu of the survivors
benefit provided above.
F. Any elected official who served in the Armed Forces of the
United States, as defined in paragraph (23) of Section 902 of this
title, prior to membership in the Oklahoma Public Employees
Retirement System shall be granted credited service of not to exceed
five (5) years for those periods of active military service during
which the elected official was a war veteran.
G. Anyone appointed or elected to an elected position after
July 1, 1990, shall not be eligible to receive benefits as provided
in this section until such person has participated as an elected
official for six (6) years. Anyone appointed or elected to an
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elected position on or after November 1, 2011, shall not be eligible
to receive benefits as provided in this section until such person
has participated as an elected official for eight (8) years.
H. Elected officials who terminate participation in the System
and who have a minimum of six (6) years of participating service
shall be entitled to elect a vested benefit and shall be entitled to
the retirement options as provided in Section 918 of this title in
lieu of the survivors benefit provided in subsection E of this
section. Elected officials, first elected or appointed to an
elected office on or after November 1, 2011, who terminate
participation in the System and who have a minimum of eight (8)
years of participating service shall be entitled to elect a vested
benefit and shall be entitled to retirement options as provided in
Section 918 of this title in lieu of the survivors benefits provided
in subsection E of this section.
I. In determining the number of years of credited service, a
fractional year of six (6) months or more shall be considered as one
(1) year, and less than six (6) months or more shall be disregarded.
For members who joined the System on or after November 1, 2011, the
number of years of credited service shall be based on actual years
and months of credited service without rounding up or down.
SECTION 8. AMENDATORY 74 O.S. 2021, Section 920, is
amended to read as follows:
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Section 920. (1) Effective July 1, 1994, every state agency
which is a participating employer shall contribute to the System an
amount equal to eleven and one-half percent (11 1/2%) of the monthly
compensation of each member, but not in excess of Forty Thousand
Dollars ($40,000.00).
(2) Effective July 1, 1995, every state agency which is a
participating employer shall contribute to the System an amount
equal to eleven and one-half percent (11 1/2%) of the monthly
compensation of each member, not to exceed the allowable annual
compensation as defined in paragraph (9) of Section 902 of this
title.
(3) Effective July 1, 1996, every state agency which is a
participating employer shall contribute to the System an amount
equal to twelve percent (12%) of the monthly compensation of each
member, not to exceed the allowable annual compensation defined in
paragraph (9) of Section 902 of this title.
(4) Effective July 1, 1999, and through the fiscal year ending
June 30, 2005, every state agency which is a participating employer
shall contribute to the System an amount equal to ten percent (10%)
of the monthly compensation of each member, not to exceed the
allowable annual compensation defined in paragraph (9) of Section
902 of this title.
(5) Effective July 1, 2005, except as otherwise provided by
subsection (11) of this section, every state agency which is a
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participating employer shall contribute an amount to the System
equal to a percentage of monthly compensation of each member, not to
exceed the allowable annual compensation defined in paragraph (9) of
Section 902 of this title as follows:
July 1, 2005 – June 30, 2006 11 1/2%
July 1, 2006 – June 30, 2007 12 1/2%
July 1, 2007 – June 30, 2008 13 1/2%
July 1, 2008 – June 30, 2009 14 1/2%
July 1, 2009 – June 30, 2011 15 1/2%
July 1, 2011 – June 30, 2012
and each year thereafter 16 1/2%
(6) The Board shall certify, on or before November 1 of each
year, to the Office of Management and Enterprise Services an
actuarially determined estimate of the rate of contribution which
will be required, together with all accumulated contributions and
other assets of the System, to be paid by each participating
employer to pay all liabilities which shall exist or accrue under
the System, including amortization of the past service cost over a
period of not to exceed forty (40) years from June 30, 1987, and the
cost of administration of the System, as determined by the Board,
upon recommendation of the actuary.
(7) The Office of Management and Enterprise Services and the
Governor shall include in the budget and in the budget request for
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appropriations the sum required to satisfy the state's obligation
under this section as certified by the Board and shall present the
same to the Legislature for allowance and appropriation.
(8) Each other participating employer shall appropriate and pay
to the System a sum sufficient to satisfy the obligation under this
section as certified by the Board.
(9) Each participating employer is hereby authorized to pay the
employer's contribution from the same fund that the compensation for
which said contribution is paid from or from any other funds
available to it for such purpose.
(10) Forfeitures arising from severance of employment, death or
for any other reason may not be applied to increase the benefits any
member would otherwise receive under the System's law. However,
forfeitures may be used to reduce an employer's contribution.
(11) Effective November 1, 2015, an employer shall be required
to make payment to the Oklahoma Public Employees Retirement System
of the amount described by subsection A of Section 10 of this act
with respect to any employee who is a participant in the defined
contribution system created pursuant to the provisions of Sections 1
through 11 of this act. The employer shall be required to make the
required matching contribution amount for all employees that
participate in the defined contribution system and to remit the
difference between such amount and the amount the employer would
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otherwise have paid pursuant to the provisions of this section to
the Oklahoma Public Employees Retirement System.
SECTION 9. AMENDATORY 74 O.S. 2021, Section 1707, is
amended to read as follows:
Section 1707. A. Effective January 1, 1998, for each qualified
participant as defined in this section who is a state employee as
defined in this section, the Oklahoma Public Employees Retirement
System shall pay each month from funds appropriated or deposited to
the Oklahoma State Employees Deferred Savings Incentive Plan Fund
created pursuant to this section the sum of Twenty-five Dollars
($25.00) to a plan established pursuant to the Internal Revenue
Code, Section 401(a), for the benefit of the employee; provided, if
monies in the fund are insufficient to fully fund the contributions
in any month, payments shall be suspended until such time as
sufficient monies are available. Employees receiving payroll other
than monthly shall have an amount contributed which is equivalent to
Twenty-five Dollars ($25.00) per month.
B. For the purposes of this section, "qualified participant"
means a state employee as defined in this section who is an active
participant in the Oklahoma State Employees Deferred Compensation
Plan making deferrals of at least Twenty-five Dollars ($25.00) per
month. A qualified participant shall not include an employee who
participates in the defined contribution system administered by the
Oklahoma Public Employees Retirement System on or after November 1,
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2015. Effective July 1, 2000, each qualified participant shall be
eligible for a contribution of Twenty-five Dollars ($25.00) to the
Oklahoma State Employees Deferred Savings Incentive Plan beginning
with the first employee deferral into the Oklahoma State Employees
Deferred Compensation Plan. The Director of the Office of
Management and Enterprise Services shall be responsible for the
provision of such information and assistance as may be necessary to
determine which employees are qualified participants and shall
provide for appropriate payroll transactions to accomplish
contributions to the Oklahoma State Employees Deferred Savings
Incentive Plan and the Oklahoma State Employees Deferred
Compensation Plan. The Oklahoma Public Employees Retirement System
shall be responsible for establishing rules and plan documents for
administration of such contributions. Funds so credited shall be
held and invested in the same manner as the Oklahoma State Employees
Deferred Compensation Plan, as provided in Section 1701 of this
title.
C. For the purposes of this section, "state employee" means any
officer or employee of the executive, legislative, or judicial
branches of the government of this state who is an active member of
a public retirement system of this state, but does not include:
1. Employees of the public elementary, secondary, or area
vocational school districts;
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2. Employees of The Oklahoma State System of Higher Education
except employees of the Oklahoma State Regents of Higher Education,
employees of the governing boards and employees of the Board of
Regents of the University of Oklahoma who are participating members
of the Oklahoma Public Employees Retirement System;
3. Persons on temporary, student, internship, or other limited-
term appointments except for Executive Fellows in the Carl Albert
Public Internship Program created in Section 840-3.4 of this title;
or
4. Persons employed pursuant to Section 1.6a of Title 53 of the
Oklahoma Statutes.
D. No public official shall be able to make contributions to
the Section 401(a) plan described by this section during a term of
office which commenced prior to July 1, 1997. A public official may
make contributions to the Section 401(a) plan described by this
section during a term of office which commences after July 1, 1997.
No legislator shall be eligible to make contributions to the Section
401(a) plan described by this section until such contributions have
been approved by the Board on Legislative Compensation. The
provisions of this subsection shall be applicable only in the event
that the Plan permits employee contributions.
E. There is hereby created in the State Treasury a revolving
fund to be designated the "Oklahoma State Employees Deferred Savings
Incentive Plan Fund". The fund shall be a continuing fund, not
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subject to fiscal year limitations, and shall consist of any monies
the Legislature may appropriate or transfer to the fund and any
monies contributed for the fund from any other sources, public or
private. All monies accruing to the credit of said fund are hereby
appropriated and may be budgeted and expended by the Oklahoma Public
Employees Retirement System for the matching of deferred
compensation contributions pursuant to this section and in
accordance with rules promulgated by the Oklahoma Public Employees
Retirement System and for reimbursement of expenses for
administration of the Deferred Savings Incentive Plan and the
Oklahoma State Employees Deferred Compensation Plan. Expenditures
from the fund shall be made by warrants issued by the State
Treasurer against claims filed as prescribed by law with the
Director of the Office of Management and Enterprise Services for
approval and payment.
F. Effective July 1, 2000, every employer which has state
employees participating in the Oklahoma State Employees Deferred
Savings Incentive Plan shall pay to the Fund an amount equal to
Twenty-five Dollars ($25.00) each month for each qualified
participant as defined in this section, along with an amount to
reimburse the cost of administration of the Oklahoma State Employees
Deferred Savings Incentive Plan and the Oklahoma State Employees
Deferred Compensation Plan for each qualified participant, as
determined by the Board.
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1. The Board shall certify each year to the Office of
Management and Enterprise Services the determined amount for the
administrative cost of the Oklahoma State Deferred Savings Incentive
Plan and the Oklahoma State Employees Deferred Compensation Plan
which will be required to be paid for each qualified participant.
The Board of Trustees shall promulgate such rules as are necessary
to implement the provisions of this subsection and provide the
methodology for the determination.
2. Each employer shall pay at least monthly to the Fund the sum
sufficient to satisfy the obligation under this section as certified
by the Board.
3. Each employer is hereby authorized to pay the employer's
contribution from the same fund that the compensation for which said
contribution is paid from or from any other funds available to it
for such purpose.
SECTION 10. Section 1 of this act shall become effective
October 1, 2026.
SECTION 11. Sections 2 through 9 of this act shall become
effective November 1, 2026.
60-2-15565 MAH 01/05/26
THOMAS E. CUMMINS CONSULTING ACTUARY, INC.
2512 E. 71st Street , Suite D ∙ Tulsa, Oklahoma 74136
(918) 492-9658 ∙ (918) 492- 9659
January 6, 2026
Representative Humphrey
Room 301
Re: RBH No. 15565
This bill would terminate the existing defined contribution plan for
public employees. The former participants of the defined
contribution plan would become participants of existing defined
benefit plan. The participants of the defined contribution plan
would have the option to convert their account balance into service
credits in the defined benefit plan using actuarial factors approved
by the board of trustees.
RBH No. 15565 is a non fiscal bill under 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