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STATE OF OKLAHOMA
2nd Session of the 60th Legislature (2026)
HOUSE BILL 4152 By: Hasenbeck
AS INTRODUCED
An Act relating to retirement; amending 62 O.S. 2021,
Section 3103, as last amended by Section 2, Chapter
361, O.S.L. 2025 (62 O.S. Supp. 2025, Section 3103),
which relates to the Oklahoma Pension Legislation
Actuarial Analysis Act; modifying terms; amending 70
O.S. 2021, Section 17-105, as amended by Section 4,
Chapter 300, O.S.L. 2025 (70 O.S. Supp. 2025, Section
17-105), which relates to the Teachers' Retirement
System of Oklahoma; modifying number of years an
individual shall be employed before qualifying to
receive monthly retirement benefits; 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 2, Chapter 361, O.S.L. 2025 (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 of
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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:
(1) grant a benefit increase under the retirement
system affected by the bill,
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(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
Oklahoma Statutes for persons whose first elected or
appointed service occurs on or after November 1, 2018,
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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
system would be greater than eighty percent (80%)
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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,
g. which modifies the disability pension standard for
police officers who are members of the Oklahoma Police
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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
or CLEET-certified agents of the Office of the
Attorney General or the Military Department of the
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State of Oklahoma pursuant to Sections 3 and 4 of this
act 2-309.9 and 2-309.10 of Title 47 of the Oklahoma
Statutes; or
k. which modifies the number of years an individual shall
be employed before qualifying to receive monthly
retirement benefits 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
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;
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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. AMENDATORY 70 O.S. 2021, Section 17-105, as
amended by Section 4, Chapter 300, O.S.L. 2025 (70 O.S. Supp. 2025,
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
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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
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.
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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
for a minimum of seven (7) five (5) years and be a contributing
member of the Teachers' Retirement System of Oklahoma for a minimum
of seven (7) five (5) 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
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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
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
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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
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
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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.
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
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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,
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.
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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.
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
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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,
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.
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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.
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
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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
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
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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.
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
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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
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
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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
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
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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
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.
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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,
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
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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
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)
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
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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, 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)
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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,
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,
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(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,
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
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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
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
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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 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.
60-2-14443 CMA 12/19/25
THOMAS E. CUMMINS CONSULTING ACTUARY, INC.
2512 E. 71st Street , Suite D ∙ Tulsa, Oklahoma 74136
(918) 492-9658 ∙ (918) 492- 9659
January 13, 2026
Representative Hasenbeck
Room 244
Re: RBH No. 14443
RBH No. 14443 reduces the service requirement for vesting to 5 years
from 7 years in Oklahoma Teachers Retirement System.
RBH No. 14443 also amends OPLAAA to define the above change to non
fiscal.
RBH No. 14443 is a non fiscal bill as defined by OPLAAA as amended.
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