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STATE OF OKLAHOMA
2nd Session of the 60th Legislature (2026)
HOUSE BILL 4231 By: Kannady
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. 2024 (62 O.S. Supp. 2025, Section 3103),
which relates to the Oklahoma Pension Legislation
Actuarial Analysis Act; modifying definition;
amending 11 O.S. 2021, Sections 49-100.1, as last
amended by Section 1, Chapter 142, O.S.L. 2025 (11
O.S. Supp. 2025, Section 49-100.1), 49-109, as
amended by Section 4, Chapter 151, O.S.L. 2023 (11
O.S. Supp. 2025, Section 49-109), 49-117.1, as last
amended by Section 3, Chapter 142, O.S.L. 2025 (11
O.S. Supp. 2025, Section 49-117.1), and 49-122, which
relate to the Oklahoma Firefighters Pension and
Retirement System; increasing computation factor used
to calculate accrued retirement benefit; increasing
computation factor used to calculate disability
retirement benefit; modifying computation for monthly
retirement annuity; increasing the municipal
contribution; providing effective dates; providing
for contingent effective dates based on outcome of
approval of the emergency clause; and declaring an
emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 62 O.S. 2021, Section 3103, as
last amended by Section 2, Chapter 361, O.S.L. 2024 (62 O.S. Supp.
2025, Section 3103), is amended to read as follows:
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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
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,
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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
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,
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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
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
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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
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
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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,
(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
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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
State of Oklahoma pursuant to Sections 3 2-309.9 and 4
2-309.10 of this act Title 47 of the Oklahoma
Statutes, or
k. which increases the computation factor used to
calculate the accrued retirement benefit and
disability retirement benefit pursuant to Sections 49-
100.1 and 49-109 of Title 11 of the Oklahoma Statutes,
modifies the computation of a retirement annuity
pursuant to Section 49-117.1 of Title 11 of the
Oklahoma Statute, and increases the municipal
contribution pursuant to Section 49-122 of Title 11 of
the Oklahoma Statutes.
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;
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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;
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 11 O.S. 2021, Section 49-100.1, as
last amended by Section 1, Chapter 142, O.S.L. 2025 (11 O.S. Supp.
2025, Section 49-100.1), is amended to read as follows:
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Section 49-100.1. As used in this article:
1. "System" means the Oklahoma Firefighters Pension and
Retirement System and all predecessor municipal firefighters pension
and retirement systems;
2. "Article" means Article 49 of this title;
3. "State Board" means the Oklahoma Firefighters Pension and
Retirement Board;
4. "Local board" means the local firefighters pension and
retirement boards;
5. "Fund" means the Oklahoma Firefighters Pension and
Retirement Fund;
6. "Member" means all eligible firefighters of a participating
municipality or a fire protection district who perform the essential
functions of fire suppression, prevention, and life safety duties in
a fire department. The term "member" shall include but not be
limited to the person serving as fire chief of any participating
municipality, provided that a person serving as fire chief of a
participating municipality shall meet the age, agility, physical and
other eligibility requirements required by law at the time said
person becomes a member of the System. Effective July 1, 1987, a
member does not include a "leased employee". The term "leased
employee" means any person (other than an employee of the recipient)
who pursuant to an agreement between the recipient and any other
person ("leasing organization") has performed services for the
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recipient (or for the recipient and related persons determined in
accordance with Section 414(n)(6) of the Internal Revenue Code of
1986, as amended) on a substantially full-time basis for a period of
at least one (1) year, and such services are performed under primary
direction or control by the recipient. Contributions or benefits
provided a leased employee by the leasing organization which are
attributable to services performed for the recipient employer shall
be treated as provided by the recipient employer. A leased employee
shall not be considered an employee of the recipient if the
requirements of the safe harbor provisions of Section 414(n)(5) of
the Internal Revenue Code of 1986, as amended, are satisfied.
Effective July 1, 1999, any individual who agrees with the
participating municipality that the individual's services are to be
performed as a leased employee or an independent contractor shall
not be a member regardless of any classification as a common law
employee by the Internal Revenue Service or any other governmental
agency, or any court of competent jurisdiction;
7. "Normal retirement date" means the date at which the member
is eligible to receive the unreduced payments of the member's
accrued retirement benefit. Such date shall be the first day
following the date the member completes twenty (20) years of
credited service. If the member's employment continues past the
normal retirement date of the member, the actual retirement date of
the member shall be the first day following the date the member
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terminates employment with more than twenty (20) years of credited
service;
8. "Credited service" means the period of service used to
determine the eligibility for and the amount of benefits payable to
a member. Credited service shall consist of the period during which
the member participated in the System or the predecessor municipal
systems as an active employee in an eligible membership
classification, plus any service prior to the establishment of the
predecessor municipal systems which was credited under the
predecessor municipal systems; provided, however, "credited service"
for members from a fire protection district shall not begin accruing
before July 1, 1982;
9. "Participating municipality" means a municipality, county
fire department organized pursuant to subsection D of Section 351 of
Title 19 of the Oklahoma Statutes, or fire protection district which
is making contributions to the System on behalf of its firefighters.
All participating municipalities shall appoint a fire chief who
shall supervise and administer the fire department;
10. "Disability" means the complete inability of the
firefighter to perform any and every duty of the firefighter's
regular occupation; provided further, that once benefits have been
paid for twenty-four (24) months the provisions of Section 49-110 of
this title shall apply to the firefighter;
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11. "Executive Director" means the managing officer of the
System employed by the State Board;
12. "Eligible employer" means any municipality with a municipal
fire department, any county fire department organized pursuant to
subsection D of Section 351 of Title 19 of the Oklahoma Statutes or
any fire protection district with an organized fire department;
13. "Entry date" means the date as of which an eligible
employer joins the System. The first entry date pursuant to this
article shall be January 1, 1981;
14. "Final average salary" means the average paid gross salary
of the firefighter for normally scheduled hours over the highest
salaried thirty (30) consecutive months of the last sixty (60)
months of credited service. Gross salary shall not include payment
for accumulated sick or annual leave upon termination of employment,
any uniform allowances or any other compensation for reimbursement
of out-of-pocket expenses. Only salary on which the required
contributions have been made may be used in computing the final
average salary. Effective January 1, 1988, gross salary shall
include any amount of elective salary reduction under Section 125 of
the Internal Revenue Code of 1986, as amended. Gross salary shall
include any amount of elective salary reduction under Section 457 of
the Internal Revenue Code of 1986, as amended, and any amount of
nonelective salary reduction under Section 414(h) of the Internal
Revenue Code of 1986, as amended. Effective July 1, 1998, for
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purposes of determining a member's compensation, any contribution by
the member to reduce the member's regular cash remuneration under
Section 132(f)(4) of the Internal Revenue Code of 1986, as amended,
shall be treated as if the member did not make such an election.
Only salary on which required contributions have been made may be
used in computing final average salary.
In addition to other applicable limitations, and notwithstanding
any other provision to the contrary, for plan years beginning on or
after July 1, 2002, the annual gross salary of each "Noneligible
Member" taken into account under the System shall not exceed the
Economic Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA")
annual salary limit. The EGTRRA annual salary limit is Two Hundred
Thousand Dollars ($200,000.00), as adjusted by the Commissioner for
increases in the cost of living in accordance with Section
401(a)(17)(B) of the Internal Revenue Code of 1986, as amended. The
annual salary limit in effect for a calendar year applies to any
period, not exceeding twelve (12) months, over which salary is
determined ("determination period") beginning in such calendar year.
If a determination period consists of fewer than twelve (12) months,
the EGTRRA salary limit will be multiplied by a fraction, the
numerator of which is the number of months in the determination
period, and the denominator of which is twelve (12). For purposes
of this subsection, a "Noneligible Member" is any member who first
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became a member during a plan year commencing on or after July 1,
1996.
For plan years beginning on or after July 1, 2002, any reference
to the annual salary limit under Section 401(a)(17) of the Internal
Revenue Code of 1986, as amended, shall mean the EGTRRA salary limit
set forth in this subsection.
Effective June 9, 2010, gross salary shall also include gross
salary, as described above, for services, but paid by the later of
two and one-half (2 1/2) months after a firefighter's severance from
employment or the end of the calendar year that includes the date
the firefighter terminated employment, if it is a payment that,
absent a severance from employment, would have been paid to the
firefighter while the firefighter continued in employment with the
participating municipality.
Effective June 9, 2010, any payments not described above shall
not be considered gross salary if paid after severance from
employment, even if they are paid by the later of two and one-half
(2 1/2) months after the date of severance from employment or the
end of the calendar year that includes the date of severance from
employment, except payments to an individual who does not currently
perform services for the participating municipality by reason of
qualified military service within the meaning of Section 414(u)(5)
of the Internal Revenue Code of 1986, as amended, to the extent
these payments do not exceed the amounts the individual would have
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received if the individual had continued to perform services for the
participating municipality rather than entering qualified military
service.
Effective June 9, 2010, back pay, within the meaning of Section
1.415(c)-2(g)(8) of the Income Tax Regulations, shall be treated as
gross salary for the year to which the back pay relates to the
extent the back pay represents wages and compensation that would
otherwise be included in this definition.
Effective for years beginning after December 31, 2008, gross
salary shall also include differential wage payments under Section
414(u)(12) of the Internal Revenue Code of 1986, as amended;
15. "Accrued retirement benefit" means, for benefits computed
prior to the effective date of this act, two and one-half percent (2
1/2%) of the firefighter's final average salary multiplied by the
member's years of credited service not to exceed thirty (30) years.
For a member who retires on or after the effective date of this
act, accrued retirement benefit shall mean:
a. for members who retire and terminate employment at
least one (1) year after the effective date of this
act, and have at least twenty-five (25) years of
credited service, three percent (3%) of the member's
final average salary multiplied by the member's years
of credited service, not to exceed thirty (30) years,
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b. for members who retire and terminate employment at
least two (2) years after the effective date of this
act, and have at least twenty (20) years of credited
service, three percent (3%) of the member's final
average salary multiplied by the member's years of
credited service, not to exceed thirty (30) years,
c. for members who retire and terminate employment at
least five (5) years after the effective date of this
act, three percent (3%) of the member's final average
salary multiplied by the member's years of credited
service, not to exceed thirty (30) years, and
d. for members who retire and terminate employment on or
after the effective date of this act, but do not have
the minimum years of credited service to qualify for
the benefit outlined in subparagraphs a and b of this
paragraph, or retire and terminate employment prior to
the date outlined in subparagraph c of this paragraph,
two and one-half percent (2 1/2%) of the member's
final average salary multiplied by the member's years
of credited service, not to exceed thirty (30) years;
16. "Beneficiary" means a member's surviving spouse or any
surviving children, including biological and adopted children, at
the time of the member's death. The surviving spouse must have been
married to the firefighter for the thirty (30) continuous months
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preceding the firefighter's death provided a surviving spouse of a
member who died while in, or as a consequence of, the performance of
the member's duty for a participating municipality, shall not be
subject to the marriage limitation for survivor benefits. A
surviving child of a member shall be a beneficiary until reaching
eighteen (18) years of age or twenty-two (22) years of age if the
child is enrolled full time and regularly attending a public or
private school or any institution of higher education. Any child
adopted by a member after the member's retirement shall be a
beneficiary only if the child is adopted by the member for the
thirty (30) continuous months preceding the member's death. Any
child who is adopted by a member after the member's retirement and
such member dies accidentally or as a consequence of the performance
of the member's duty as a firefighter shall not be subject to the
thirty-month adoption requirement. This definition of beneficiary
shall be in addition to any other requirement set forth in this
article;
17. "Contributions" means payments remitted to the System
pursuant to Section 49-122 or subsection A of Section 49-138 of this
title. Contributions shall not include payments made to repurchase
credited service pursuant to Section 49-117.1 of this title,
payments made to transfer credited service from another retirement
system pursuant to subsection A of Section 49-117.2 or Section 49-
117.3 of this title, or payments made to purchase prior military
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service credit pursuant to subsection E of Section 49-138 of this
title;
18. "Accumulated contributions" means the sum of all
contributions made by a member to the System and includes both
contributions deducted from the compensation of a member and
contributions of a member picked up and paid by the participating
municipality of the member. Accumulated contributions shall not
include any interest on the contributions of the member, interest on
any amount contributed by the municipality or state and any amount
contributed by the municipality or state; and
19. "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.
SECTION 3. AMENDATORY 11 O.S. 2021, Section 49-109, as
amended by Section 4, Chapter 151, O.S.L. 2023 (11 O.S. Supp. 2025,
Section 49-109), is amended to read as follows:
Section 49-109. A. Whenever any firefighter serving in any
capacity in a regularly constituted fire department of a
municipality shall become so physically or mentally disabled while
in, or in consequence of, the performance of the firefighter's duty
as to prevent the effective performance of the firefighter's duties,
the State Board may, upon the firefighter's written request, or
without such request if the State Board deems it for the good of the
department, retire the firefighter from active service, and if so
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retired, shall direct that the firefighter be paid from the System a
monthly pension equal to the greater of:
1. Fifty percent (50%) of the average monthly salary which was
paid to the firefighter during the last thirty (30) months of the
firefighter's service; or
2. Two For benefits computed prior to the effective date of
this act, two and one-half percent (2 1/2%) of the firefighter's
final average salary multiplied by the member's years of credited
service, not to exceed thirty (30) years, provided such firefighter
has completed twenty (20) or more years of credited service; or
3. For benefits computed on or after the effective date of this
act, three percent (3%) of the firefighter's final average salary
multiplied by the member's years of credited service, not to exceed
thirty (30) years, provided such firefighter has completed twenty
(20) or more years of credited service.
B. If the disability ceases within two (2) years from the date
of the firefighter's disability retirement and before the
firefighter's normal retirement date, the formerly disabled person
shall be restored to active service at the salary attached to the
rank the firefighter held at the time of the firefighter's
disability retirement provided the firefighter is capable of
performing the duties of a firefighter. Whenever such disability
shall cease, such disability pension provided pursuant to paragraph
1 of subsection A of this section shall cease. If a firefighter
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participates in the Oklahoma Firefighters Deferred Option Plan
pursuant to Section 49-106.1 of this title, the firefighter's
disability pension provided pursuant to this subsection shall be
reduced to account for the firefighter's participation in the
Oklahoma Firefighters Deferred Option Plan.
C. Whenever any firefighter, who has served in any capacity in
a regularly constituted fire department of a municipality of the
state, and who has served less than the firefighter's normal
retirement date, shall become so physically or mentally disabled
from causes not arising in the line of duty as to prevent the
effective performance of the firefighter's duties, the firefighter
shall be entitled to a pension during the continuance of such
disability based upon the firefighter's service period which shall
be fifty percent (50%) of the average monthly salary which was paid
to the firefighter during the last sixty (60) months of the
firefighter's service.
D. No firefighter shall accrue additional service time while
receiving a disability pension; provided further, that nothing
herein contained shall affect the eligibility of any firefighter to
apply for and receive a retirement pension after the firefighter's
normal retirement date; provided further, that no firefighter shall
receive retirement benefits from the System during the time the
firefighter is receiving disability benefits from the System. Any
member or beneficiary eligible to receive a monthly benefit pursuant
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to this section may make an election to waive all or a portion of
monthly benefits.
E. If the requirements of Section 49-106.5 of this title are
satisfied, a member who, by reason of disability, is separated from
service as a public safety officer with the member's participating
municipality, may elect to have payment made directly to the
provider for qualified health insurance premiums by deduction from
his or her monthly disability benefit, after December 31, 2006, in
accordance with Section 402(l) of the Internal Revenue Code of 1986,
as amended. For distributions made after December 29, 2022, the
election provided for under Section 402(l) of the Internal Revenue
Code of 1986, as amended, may be made whether payment of the
premiums is made directly to the provider of the accident or health
plan or qualified long-term care insurance contract by deduction
from a distribution from the System or is made to the member.
SECTION 4. AMENDATORY 11 O.S. 2021, Section 49-117.1, as
last amended by Section 3, Chapter 142, O.S.L. 2025 (11 O.S. Supp.
2025, Section 49-117.1), is amended to read as follows:
Section 49-117.1. A. A member who terminates service before
normal retirement date, other than by death or disability shall,
upon application filed with the State Board, be refunded from the
Fund an amount equal to the sum of:
1. Accumulated contributions the member has made to the Fund;
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2. Payments made to repurchase credited service pursuant to
this section;
3. Payments made to transfer credited service from another
retirement system pursuant to subsection A of Section 49-117.2 or
Section 49-117.3 of this title; and
4. Payments made to purchase prior military service credit
pursuant to subsection E of Section 49-138 of this title.
A refund made pursuant to this paragraph shall exclude interest
earned or paid with respect to any contribution or payment described
in subparagraphs 1 through 4 of this subsection, and any amount
contributed by the municipality or state, and interest earned with
respect to such contributed amount.
B. If a member has completed ten (10) years of credited service
at the date of termination, the member may elect a vested benefit in
lieu of receiving the refund described in subsection A of this
section.
C. If the member who has completed ten (10) or more years of
credited service as prescribed by subsection B of this section
elects the vested benefit, the member shall be entitled to a monthly
retirement annuity commencing on the date the member reaches fifty
(50) years of age or the date the member would have had twenty (20)
years of credited service had the member's employment continued
uninterrupted, whichever is later. The annual amount of such
retirement annuity shall be equal to two and one-half percent (2
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1/2%) of the annualized final average salary multiplied by the
number of years of credited service not to exceed thirty (30) years.
For a monthly retirement annuity commencing on or after the
effective date of this act, the annual amount of such retirement
annuity shall be computed pursuant to the annualized final average
salary as defined pursuant to paragraph 14 of Section 49-100.1 of
this title multiplied by the number of years of credited service.
The death benefits provided for in Section 49-113.2 of this title
shall not apply to any member retiring under the provisions of this
section.
D. If a member who terminated employment and elected, or was
eligible to elect, a vested benefit dies prior to being eligible to
receive benefits, the member's beneficiary, as defined in paragraph
16 of Section 49-100.1 of this title, shall be entitled to the
member's normal monthly retirement benefit on the date the deceased
member would have been eligible to receive the benefit.
E. If a member terminates employment and withdraws the member's
accumulated contributions and then subsequently rejoins the System,
he may pay to the System the sum of the accumulated contributions he
has withdrawn plus ten percent (10%) annual interest from the date
of withdrawal to the date of repayment and shall receive the same
benefits as if he had never withdrawn his contributions.
F. Members may make the repayment described in subsection E of
this section in cash by a trustee-to-trustee transfer or direct
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rollover of non-Roth funds from a Code Section 403(b) annuity or
custodial account, an eligible deferred compensation plan described
in Code Section 457(b) which is maintained by an eligible employer
described in Code Section 457(e)(1)(A), a Code Section 401(a)
qualified plan, or a combination thereof, provided that after-tax
funds in retirement plans shall not be used to make a repayment.
G. In the event the member does not pay the purchase price in
whole or part pursuant to subsection F of this section, the State
Board may permit the member to pay the remaining purchase price in
cash by certified check, to amortize the remaining purchase price
over a period not to exceed sixty (60) months, or other method
approved by the State Board. Any amortized payments under this
subsection shall be made by payroll deductions on an after-tax basis
and shall not be picked up by the member's employer. The amortized
payments shall include interest at a rate not to exceed the
actuarially assumed interest rate adopted by the State Board for
investment earnings each year. Any member who ceases to make
payment, terminates, retires, or dies before completing the payments
provided for in this subsection shall receive prorated service
credit for only those payments made, not including interest, unless
the unpaid balance, including interest, is paid by the member, the
member's surviving spouse, the member's beneficiary, or the member's
estate or successor in interest within ninety (90) days after the
first to occur of said member's termination, retirement, or death;
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provided that no retirement benefits shall be payable until the
earliest of the date the unpaid balance is paid in full or ninety
(90) days after the first to occur of the member's termination,
retirement, or death.
H. A firefighter shall not be permitted to withdraw from the
System while employed as a firefighter in a participating
municipality.
I. The State Board shall promulgate such rules or procedures as
are necessary to implement the provisions of this section.
SECTION 5. AMENDATORY 11 O.S. 2021, Section 49-122, is
amended to read as follows:
Section 49-122. A. Each municipality having a paid member of a
fire department shall deduct monthly from the salary of each member
of the fire department of such municipality an amount equal to nine
percent (9%) of the actual paid gross salary of each member of the
fire department. The deduction shall be considered the minimum
deduction. At the option of the municipality, the municipality may
pay all or any part of the member's required contribution. The
treasurer of each municipality shall deduct the authorized
deductions from the salary of each paid member of the fire
department. The treasurer of the municipality shall deposit within
ten (10) days from each ending payroll date in the System the amount
deducted from the salary of each member of the fire department.
Amounts deducted from the salary of a member and not paid to the
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System after thirty (30) days from each ending payroll date shall be
subject to a monthly late charge of one and one-half percent (1
1/2%) of the unpaid balance to be paid by the municipality to the
System.
Each municipality shall pick up under the provisions of Section
414(h)(2) of the Internal Revenue Code of 1986, as amended, and pay
the contribution which the member is required by law to make to the
System for all compensation earned after December 31, 1988.
Although the contributions so picked up are designated as member
contributions, such contributions shall be treated as contributions
being paid by the municipality in lieu of contributions by the
member in determining tax treatment under the Internal Revenue Code
of 1986, as amended, and such picked up contributions shall not be
includable in the gross income of the member until such amounts are
distributed or made available to the member or the beneficiary of
the member. The member, by the terms of this System, shall not have
any option to choose to receive the contributions so picked up
directly and the picked up contributions must be paid by the
municipality to the System.
Member contributions which are picked up shall be treated in the
same manner and to the same extent as member contributions made
prior to the date on which member contributions were picked up by
the municipality. Member contributions so picked up shall be
included in salary for purposes of the System.
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The municipality shall pay the member contributions from the
same source of funds used in paying salary to the member, by
effecting an equal cash reduction in gross salary of the member, or
by an offset against future salary increases, or by a combination of
reduction in gross salary and offset against future salary
increases.
The treasurer of each municipality shall deduct the picked up
contributions from the salary of each paid member of the fire
department. The treasurer of the municipality shall deposit monthly
in the System the amount picked up from the salary of each member of
the fire department.
B. Each municipality having a paid member of a fire department
shall deposit monthly with the State Board an amount equal to the
following:
1. Prior to July 1, 1991, ten percent (10%) of the total actual
paid gross salaries of the members of the fire department;
2. Beginning July 1, 1991 through June 30, 1992, ten and one-
half percent (10 1/2%) of the total actual paid gross salaries of
the members of the fire department;
3. Beginning July 1, 1992 through June 30, 1993, eleven percent
(11%) of the total actual paid gross salaries of the members of the
fire department;
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4. Beginning July 1, 1993 through June 30, 1994, eleven and
one-half percent (11 1/2%) of the total actual paid gross salaries
of the members of the fire department;
5. Beginning July 1, 1994 through June 30, 1995, twelve percent
(12%) of the total actual paid gross salaries of the members of the
fire department;
6. Beginning July 1, 1995 through June 30, 1996, twelve and
one-half percent (12 1/2%) of the total actual paid gross salaries
of the members of the fire department;
7. Beginning July 1, 1996, thirteen percent (13%) of the total
actual paid gross salaries of the members of the fire department;
and
8. Beginning November 1, 2013, fourteen percent (14%) of the
total actual paid gross salaries of the members of the fire
department; and
9. Beginning on the effective date of this act, a minimum of
fourteen percent (14%) of the actual paid base salary of each member
of the System employed by the municipality.
C. Each county or municipality having a volunteer member of a
fire department shall deposit yearly with the State Board Sixty
Dollars ($60.00) for each volunteer member of the department.
Provided, the above-mentioned volunteer county or municipal
contributions shall be reevaluated by the next scheduled actuarial
study and the amounts adjusted so that in a nine-year period of
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time, the amounts would reflect the actuarial recommendations at
that time. Any county or municipality with an income of less than
Twenty-five Thousand Dollars ($25,000.00) to its general fund during
a fiscal year shall be exempt from the provisions of this
subsection.
Any municipality that fails to comply with the provisions of
this section shall not be entitled to its proportionate share of the
Motor Fuel Excise Tax which is received through the Oklahoma Tax
Commission. Any county or municipality may exceed the amount of
contribution required by this section.
The provisions of this section shall supersede any city charter
provision in direct conflict with this section.
SECTION 6. If the Emergency Clause is not approved pursuant to
the requirements of the Oklahoma Constitution as part of this
measure, the effective date of Section 1 of this act shall be
October 1, 2026.
SECTION 7. If the Emergency Clause is not approved pursuant to
the requirements of the Oklahoma Constitution as part of this
measure, the effective date of Sections 2 through 5 of this act
shall be November 1, 2026.
SECTION 8. Except as otherwise provided by Section 6 of this
act, Section 1 of this act shall become effective immediately upon
signature by the Governor or as otherwise provided by Section 58 of
Article V of the Oklahoma Constitution.
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SECTION 9. Except as otherwise provided by Section 7 of this
act, Sections 2 through 5 of this act shall become effective July 1,
2026.
SECTION 10. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
60-2-15342 CMA 01/08/26
THOMAS E. CUMMINS CONSULTING ACTUARY, INC.
2512 E. 71st Street , Suite D ∙ Tulsa, Oklahoma 74136
(918) 492-9658 ∙ (918) 492- 9659
January 14, 2026
Representative Kannady
Room 240
Re: RBH No. 15342
RBH No. 15342 would increase benefits for firefighters.
If a firefighter retires 1 year after the effective date of
this bill the benefit multiplier is 3% per year provided the
firefighter has at least 25 years of credited service.
If a firefighter retires 2 years after the effective date of
this bill the benefit multiplier is 3% per year provided the
firefighter has at least 20 years of credited service.
If a firefighter retires 5 years after the effective date of
this bill the benefit multiplier is 3% per year.
If a firefighter retires without the minimum of 20 years of
service the multiplier is 2.5% per year pf service.
OPLAAA is amended to define the above change to non fiscal.
RBH No. 15342 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