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RBS No. 1056
ENGR. S. B. NO. 134 Page 1
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ENGROSSED SENATE
BILL NO. 134 By: Frix of the Senate
and
Bashore of the House
[ Oklahoma Public Employees Retirement System -
retirement provisions - separation period - effective
date ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 74 O.S. 2021, Section 914, is
amended to read as follows:
Section 914. A. The normal retirement date for a member of the
Oklahoma Public Employees Retirement System shall be as defined in
Section 902 of this title, provided members employed on or after
January 1, 1983, shall have six (6) or more years of full-time-
equivalent employment with a participating employer before receiving
any retirement benefits or, if the member is a legislative session
employee of the Legislature, shall have three (3) or more years of
full-time-equivalent employment with a participating employer before
receiving any retirement benefits. In no event shall a normal
retirement date for a member be before six (6) months after the
entry date of the participating employer by whom he or she is
employed.
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B. A member may be employed beyond the normal retirement date
by the appointing authority of the participating employer. However,
the member may not receive retirement pay so long as the member
continues employment under this act Section 901 et seq. of this
title. Any member who has terminated employment with a
participating employer prior to the month immediately preceding said
the member’s normal retirement date must elect a vested benefit
pursuant to Section 917 of this title before receiving any
retirement benefits.
C. Notice for retirement shall be filed through the retirement
coordinator for the participating employer in such form and manner
as the Board Oklahoma Public Employees Retirement System Board of
Trustees shall prescribe; provided, that such notice for retirement
shall be filed with the office of the retirement system at least
sixty (60) days prior to the date selected for the member’s
retirement; provided further, that the Executive Director may waive
the sixty-day notice for good cause shown as defined by the Board.
1. The participating 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; and final unused sick leave balance.
2. 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
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participating employer. In cases where the error results in
disqualification of retirement eligibility, it is the participating
employer’s responsibility to reemploy the member, or retain the
member on the payroll, for time period required to reach
eligibility, not exceeding two (2) months.
D. No retirement benefits shall be payable to any member until
the first day of the month following the termination of the member’s
employment with any participating employer. The type of retirement
benefit selected by a member may not be changed on or after the
effective date of the member’s retirement. Receipt of workers’
compensation benefits shall in no respect disqualify the retiree for
benefits.
E. If a retiree should be elected or appointed to any position
or office for which compensation for service is paid from levies or
taxes imposed by the state or any political subdivision thereof, the
retiree shall not receive any retirement benefit for any month for
which the retiree serves in such position or office after the
retiree has received compensation in a sum equal to the amount
allowable as wages or earnings by the Social Security Administration
in any calendar year. This subsection shall not apply to service
rendered by a retiree as a juror, as a witness in any legal
proceeding or action, as an election board judge or clerk, or in any
other office or position of a similar nature, or to an employer that
is not a participating employer. Provided, further, that any
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participating employer who is employing such a retiree shall make
proper written notification to the System informing it of the
beginning date of such retiree’s employment and the date such
retiree reaches the maximum compensation allowed by this section in
the calendar year. Any retiree returning to work for a
participating employer shall make contributions to the System and
the employer shall do likewise. All retirees who have returned to
employment and participation in the System following retirement
shall have post-retirement benefits calculated on one of the
following methods:
1. All service accumulated from date of reemployment shall be
computed based on the benefit formula applicable at that time and
the additional benefits shall be added to the previous benefits.
Such additional benefits shall be calculated each year based upon
additional service accrued from July 1 to June 30 of the previous
year and the additional benefit, if any, will be added to the
retiree’s monthly benefit beginning January 1, 2000, and each
January 1 thereafter. However, the post-retirement service credit
shall be cumulative, beginning with service credit accrued after the
date of retirement, provided that the retiree has not received a
distribution of the post-retirement contributions.;
2. Any retiree who returns to employment with a participating
employer may elect not to receive any retirement benefits while so
reemployed. If such an election is made and reemployment is for a
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minimum period of thirty-six (36) consecutive months, all service
accumulated from date of reemployment shall be participating
service. For purposes of determining the retirement benefits of
such a member upon the termination of such reemployment all
creditable service of the member shall be computed based on the
benefit formula applicable at the time of termination of such
reemployment. Provided, a retiree who became reemployed prior to
July 1, 1982, and who is reemployed for a minimum of thirty-six (36)
consecutive months shall have all the creditable service of such
retiree computed based on the benefit formula applicable at the time
of termination of such reemployment if the retiree elects not to
receive retirement benefits prior to such termination of
reemployment. A retiree who has waived receipt of the monthly
benefit, but is not reemployed for the full thirty-six (36)
consecutive months, shall upon termination of such reemployment have
only the additional amount added to his or her benefit as if they
had not waived the benefit as provided in paragraph 1 of this
subsection.;
3. All post-retirement additional benefits shall be calculated
using actual hours worked as well as the actual compensation
received and upon which contributions are paid. Post-retirement
service is not subject to the partial year round-up provisions of
subsection C of Section 913 of this title.; or
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4. A retired member who returns to work for a participating
employer pursuant to this section shall be bound by the election
made pursuant to paragraph (2) of subsection A of Section 915 of
this title if the member had made such election prior to retirement.
If the member had not made such election prior to retirement, the
member may do so during the member’s reemployment with a
participating employer pursuant to this section. A retired member
may not be rehired by their former employer, nor may the retired
member be permitted to enter into an employment contract of any kind
with a former employer, for a period of one (1) year six months
after the retired member ended his or her employment with the former
employer unless the retired member waives his or her benefit under
paragraph 2 of this subsection and returns as a bona fide employee.
F. Except as otherwise provided by subsection G of this
section, any member may elect to retire before his or her normal
retirement date on the first day of any month coinciding with or
following the attainment of age fifty-five (55), provided such
member has completed ten (10) years of participating service, but in
no event before six (6) months after the entry date. Any member who
shall retire before the normal retirement date shall receive an
annual retirement benefit adjusted in accordance with the following
percentage schedule:
Percentage of Normal
Age Retirement Benefit
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62 100.00%
61 93.33%
60 86.67%
59 80.00%
58 73.33%
57 66.67%
56 63.33%
55 60.00%
G. Any member whose first participating service occurs on or
after November 1, 2011, may elect to retire before his or her normal
retirement date on the first day of any month coinciding with or
following the attainment of age sixty (60), provided such member has
completed ten (10) years of participating service, but in no event
before six (6) months after the entry date. Any member who shall
retire before the normal retirement date shall receive an annual
retirement benefit adjusted in accordance with the following
percentage schedule:
Percentage of Normal
Age Retirement Benefit
65 100.00%
64 93.33%
63 86.67%
62 80.00%
61 73.33%
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60 66.67%
SECTION 2. This act shall become effective November 1, 2026.
Passed the Senate the 25th day of March, 2026.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2026.
Presiding Officer of the House
of Representatives