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RBH No. 17080
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ENGROSSED HOUSE
BILL NO. 4263 By: Johns of the House
and
Frix of the Senate
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 definition; amending 70 O.S. 2021, Section
17-103, as amended by Section 2, Chapter 300, O.S.L.
2024 (70 O.S. Supp. 2025, Section 17-103), which
relates to membership; modifying provisions related
to certain employees of the Department of Career and
Technology Education; 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;
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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,
(2) create an actuarial accrued liability for or
increase the actuarial accrued liability of the
retirement system affected by the bill, or
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(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,
if such persons had any prior service in the Oklahoma
Public Employees Retirement System prior to November
1, 2015,
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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%)
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
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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
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:
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(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, 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,
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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, and
m. which authorizes an election for certain retired
members of the Teachers' Retirement System of Oklahoma
pursuant to the provisions of 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 Oklahoma Legislature which creates or amends any law directly
affecting a retirement system. A retirement bill shall not mean a
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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 70 O.S. 2021, Section 17-103, as
amended by Section 2, Chapter 300, O.S.L. 2024 (70 O.S. Supp. 2025,
Section 17-103), is amended to read as follows:
Section 17-103. Except as provided in the Alternate Retirement
Plan for Comprehensive Universities Act, the membership of the
retirement system shall consist of the following:
A. All classified personnel shall become members of the
retirement system as a condition of their employment.
B. For the period from August 2, 1969, to June 30, 2021, all
full-time nonclassified optional personnel regularly employed for
more than one (1) year may join the Teachers' Retirement System of
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Oklahoma subject to the rules and regulations adopted pursuant to
the Teachers' Retirement System of Oklahoma. On or after July 1,
2021, all nonclassified optional personnel regularly employed for
twenty (20) hours or more per week may join the System upon hiring
or eligibility, subject to the provisions of subsection C of this
section and the rules and regulations adopted by the System pursuant
to Section 17-101 et seq. of this title.
C. 1. Nonclassified optional personnel shall have thirty (30)
days from the initial date of hire or eligibility to make a one-time
irrevocable election to opt out of participation in the System, in a
manner required by the Board of Trustees. If an eligible employee
fails to make an election within the thirty-day period, the eligible
employee shall be deemed to participate in the System.
2. If an eligible employee elects to opt out of participation
in the System, the employee shall not make any required employee
contributions to the System and the employee's employer shall not
make any required employer contributions to the System.
3. If an eligible nonclassified optional employee does not
timely opt out of participation in the System, such an employee
shall make employee contributions to the System pursuant to Section
17-116.2 of this title and the employer shall make employer
contributions to the System pursuant to Section 17-108.1 of this
title. Nothing in this subsection shall be construed to prohibit
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the employer from making the contribution of the employee to the
System on behalf of the employee.
4. Nonclassified optional personnel who opt out of
participation in the System shall be ineligible for future
participation in the System; provided, however, that if such an
employee is hired for a classified position, he or she shall become
a member of the System pursuant to subsection A of this section but
shall not be eligible for prior service credit for service performed
while employed in a nonclassified position during which the employee
opted out of participation in the System.
D. The Board of Trustees may, in its discretion, deny the right
to become members to any class of members whose compensation is only
partly paid by the state, or who is serving on a temporary or other
than per annum basis, and it also may, in its discretion, make the
individual entrance into the retirement system for members in any
such class optional.
E. Should any non-vested member, in any period of six (6)
consecutive years after becoming a member, be absent from service
more than five (5) years, withdraw his or her contributions, retire
or die, he or she shall thereupon cease to be a member. The
provisions of this subsection shall not apply to any member of the
Teachers' Retirement System of Oklahoma who has been a member of
such classes of military services as may be approved by the Board of
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Trustees, until a period of one and one-half (1 1/2) years from date
of termination of such service shall have elapsed.
F. Effective November 1, 2019 2026, a retired member of the
Teachers' Retirement System of Oklahoma who becomes employed by the
State Department of Education or by the Oklahoma Department of
Career and Technology Education, for the first time on or after
November 1, 2019 2026, shall have the option to remain a member of
the Teachers' Retirement System of Oklahoma subject to any
applicable limitations placed on retired members returning to work
or may choose to participate as an active member in the Oklahoma
Public Employees Retirement System defined benefit plan or the
Oklahoma Public Employees Retirement System defined contribution
system, whichever is applicable under the laws and rules governing
those systems.
SECTION 3. Section 1 of this act shall become effective October
1, 2026.
SECTION 4. Section 2 of this act shall become effective
November 1, 2026.
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Passed the House of Representatives the 24th day of March, 2026.
Presiding Officer of the House
of Representatives
Passed the Senate the _____ day of __________, 2026.
Presiding Officer of the Senate