1| STATE OF OKLAHOMA |
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2| 1st Session of the 59th Legislature (2023) |
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3|HOUSE BILL 1423 By: Hasenbeck |
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4| |
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5| |
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6| AS INTRODUCED |
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7| An Act relating to Teachers' Retirement System of |
| Oklahoma; amending 70 O.S. 2021, Section 17-105, |
8| which relates to retirement eligibility; modifying |
| required period of employment for participation in |
9| retirement benefits; and providing an effective date. |
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10| |
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11| |
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12|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: |
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13| SECTION 1. AMENDATORY 70 O.S. 2021, Section 17-105, is |
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14|amended to read as follows: |
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15| Section 17-105. (1) (a) Any member who has attained age |
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16|fifty-five (55) years of age or who has completed thirty (30) years |
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17|of creditable service, as defined in Section 17-101 of this title, |
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18|or for any person who initially became a member prior to July 1, |
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19|1992, regardless of whether there were breaks in service after July |
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20|1, 1992, whose age and number of years of creditable service total |
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21|eighty (80) may be retired upon proper application for retirement on |
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22|forms established by the System and executing a retirement contract. |
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23| Such a retirement date will also apply to any person who became a |
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24|member of the sending system as defined in this act, prior to July |
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1|1, 1992, regardless of whether there were breaks in service after |
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2|July 1, 1992. Any person who became a member after June 30, 1992, |
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3|but prior to November 1, 2011, whose age and number of years of |
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4|creditable service total ninety (90) may be retired upon proper |
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5|application for retirement and executing a retirement contract. Any |
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6|person who becomes a member on or after November 1, 2011, who |
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7|attains the age of sixty-five (65) years or who reaches a normal |
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8|retirement date pursuant to subparagraph (d) of paragraph (24) of |
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9|Section 17-101 of this title having attained a minimum age of sixty |
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10|(60) years may be retired upon proper application for retirement and |
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11|executing a retirement contract. The application shall be filed on |
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12|the form provided by the Board of Trustees for this purpose, not |
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13|less than sixty (60) days before the date of retirement, provided |
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14|that the Executive Director may waive the sixty-day deadline for |
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15|good cause shown as defined by the Board. |
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16| 1. The employer shall provide the System with the |
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17| following information for a retiring member, no later |
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18| than the fifteenth day of the month of retirement: |
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19| last day physically on the job; last day on payroll; |
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20| any regular compensation not already reported to the |
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21| System; and final unused sick leave balance. |
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22| 2. Failure to submit this information by the deadline, |
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23| or errors in submitted information that result in a |
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24| disqualification of retirement eligibility shall be |
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1| the responsibility of the employer. In cases where |
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2| the error results in disqualification of retirement |
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3| eligibility, it is the employer's responsibility to |
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4| reemploy the member, or retain the member on the |
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5| payroll, for the time period required to reach |
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6| eligibility, not exceeding two (2) months. |
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7| (b) An individual who becomes a member of the Teachers' |
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8|Retirement System on or after November 1, 2017, shall be employed by |
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9|the public schools, state colleges or universities of Oklahoma for a |
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10|minimum of seven (7) five (5) years and be a contributing member of |
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11|the Teachers' Retirement System of Oklahoma for a minimum of seven |
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12|(7) five (5) years to qualify for monthly retirement benefits from |
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13|the Teachers' Retirement System of Oklahoma. |
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14| (c) Any member with seven (7) five (5) or more years of |
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15|Oklahoma teaching service and whose accumulated contributions during |
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16|such period have not been withdrawn shall be given an indefinite |
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17|extension of membership beginning with the sixth year following his |
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18|or her last contributing membership and shall become eligible to |
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19|apply for retirement and be retired upon attaining age fifty-five |
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20|(55) years of age. |
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21| (2) An unclassified optional member who has retired or who |
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22|retires at sixty-two (62) years of age or older or whose retirement |
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23|is because of disability shall have his or her minimum retirement |
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24|benefits calculated on an average salary of Five Thousand Three |
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1|Hundred Fifty Dollars ($5,350.00) or, if a larger monthly allowance |
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2|would result, an amount arrived at pursuant to application of the |
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3|formula prescribed herein. |
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4| (3) No member shall receive a lesser retirement benefit than he |
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5|or she would have received under the law in effect at the time he or |
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6|she retired. Any individual under the Teachers' Retirement System, |
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7|who through error in stating the title of the position which he or |
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8|she held, may, at the discretion of the Board of Trustees, be |
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9|changed from the nonclassified optional group to the classified |
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10|group for the purpose of calculating retirement benefits. |
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11| Any individual regardless of residence, who has a minimum of ten |
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12|(10) years of teaching in Oklahoma schools prior to July 1, 1943, or |
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13|who taught in Oklahoma schools prior to 1934 and thereafter taught a |
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14|minimum of ten (10) years and who does not qualify under the present |
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15|retirement System, or who has a minimum of thirty (30) years of |
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16|teaching in Oklahoma schools and has reached seventy (70) years of |
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17|age prior to July 1, 1984, and is not otherwise eligible to receive |
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18|any benefits from the retirement system shall receive a minimum of |
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19|One Hundred Fifty Dollars ($150.00) per month in retirement benefits |
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20|from the Teachers' Retirement System of Oklahoma plus any general |
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21|increase in benefits for annuitants as may be provided hereafter by |
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22|the Legislature. Each individual must apply to the Teachers' |
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23|Retirement System for such benefit and provide evidence to the |
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24|Teachers' Retirement System that the service was actually rendered. |
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1|The surviving spouse of any person who made application for the |
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2|benefit provided for by this paragraph during his or her lifetime |
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3|but did not receive the benefit may submit an application to the |
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4|System for payment of the benefit for those months during the |
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5|lifetime of the deceased person that he or she was eligible for but |
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6|did not receive the benefit. Upon approval of the application by |
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7|the Board of Trustees, the benefit shall be paid to the surviving |
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8|spouse in one lump sum. |
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9| (4) The value of each year of prior service is the total |
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10|monthly retirement benefit divided by the number of years of |
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11|creditable service. |
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12| (5) Upon application of a member who is actively engaged in |
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13|teaching in Oklahoma or his or her employer, any member who has been |
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14|a contributing member for ten (10) years may be retired by the |
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15|System subsequent to the execution and filing thereof, on a |
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16|disability retirement allowance, provided that it is found by the |
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17|Medical Board after medical examination of such member by a duly |
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18|qualified physician that such member is mentally or physically |
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19|incapacitated for further performance of duty, that such incapacity |
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20|is likely to be permanent, and that such member should be retired. |
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21|The System shall rely on and give full consideration to the |
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22|conclusions and recommendations in the certified written report of |
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23|the Medical Board of the Teachers' Retirement System regarding the |
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24|disability application of such member. If the Medical Board does |
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1|not find that a member applying for disability retirement is |
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2|mentally or physically incapacitated for performance of duty or |
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3|otherwise eligible for a disability retirement, the application |
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4|shall then be considered by the Board of Trustees. If a member is |
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5|determined to be eligible for disability benefits pursuant to the |
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6|Social Security System, then such determination shall entitle the |
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7|member to the authorized disability retirement allowance provided by |
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8|law. For members who are not eligible for disability benefits |
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9|pursuant to the Social Security System, the Board of Trustees and |
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10|the Medical Board shall apply the same standard for which provision |
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11|is made in the first two sentences of this subsection for |
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12|determining the eligibility of a person for such disability benefits |
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13|in making a determination of eligibility for disability benefits as |
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14|authorized by this subsection. |
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15| (6) (a) A member who at the time of retirement has been found |
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16|to be permanently physically or mentally incapacitated to perform |
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17|the necessary duties to continue in his or her current position |
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18|shall receive a minimum monthly retirement payment for life or until |
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19|such time as the member may be found to be recovered to the point |
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20|where he or she may return to teaching. Any member retired before |
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21|July 1, 1992, shall be eligible to receive the monthly retirement |
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22|allowance herein provided, but such payment shall not begin until |
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23|the first payment due him or her after July 1, 1992, and shall not |
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24|be retroactive. The Board of Trustees is empowered to make such |
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1|rules and regulations as it considers proper to preserve equity in |
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2|retirements under this provision, which shall include a provision to |
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3|protect the rights of the member's spouse. |
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4| (b) A member who has qualified for retirement benefits under |
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5|disability retirement shall have the total monthly payment deducted |
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6|from his or her accumulated contributions plus interest earned and |
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7|any money remaining in the member's account after the above |
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8|deductions at the death of the member shall be paid in a lump sum to |
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9|the beneficiary or to the estate of the member. Provided, if the |
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10|deceased disabled member had thirty (30) years or more of creditable |
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11|service and the death occurred after June 30, 1981, and death |
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12|occurred prior to the disabled member receiving twelve monthly |
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13|retirement payments, a surviving spouse may elect to receive the |
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14|retirement benefit to which the deceased member would have been |
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15|entitled at the time of death under the Option 2 Plan of Retirement |
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16|provided for in subsection (8) of this section in lieu of the death |
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17|benefit provided for in this subsection and in subsection (12) of |
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18|this section. |
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19| (c) Once each year the System may require any disabled |
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20|annuitant who has not yet attained the age of sixty (60) years to |
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21|undergo a medical examination, such examination to be made at the |
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22|place of residence for the disabled annuitant or other place |
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23|mutually agreed upon by a physician or physicians designated by the |
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24|System. Should any disabled annuitant who has not yet attained the |
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1|age of sixty (60) years refuse to submit to at least one medical |
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2|examination in any such year by a physician or physicians designated |
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3|by the System his or her allowance may be discontinued until he or |
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4|she submits to such examination. |
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5| (d) Should the Medical Board report and certify to the Board of |
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6|Trustees that such disabled annuitant is engaged in or is able to |
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7|engage in a gainful occupation paying more than the difference |
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8|between his or her retirement allowance and the average final |
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9|compensation, and should the Board of Trustees concur in such report |
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10|then the amount of his or her pension shall be reduced to an amount |
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11|which, together with his or her retirement allowance and that amount |
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12|earnable by him or her, shall equal the amount of his or her average |
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13|final compensation. Should his or her earning capacity be later |
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14|increased, the amount of his or her pension may be further modified, |
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15|provided the new pension shall not exceed that amount of the pension |
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16|originally granted nor an amount, which when added to the amount |
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17|earnable by the member, together with his or her annuity, equals the |
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18|amount of his or her average final compensation. |
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19| (e) Should a disabled annuitant be restored to active service, |
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20|his or her disability retirement allowance shall cease and he or she |
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21|shall again become a member of the Teachers' Retirement System and |
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22|shall make regular contributions as required under this article. |
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23|The unused portion of his or her accumulated contributions shall be |
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24|reestablished to his or her credit in the Teachers' Savings Fund. |
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1|Any such prior service certificates on the basis of which his or her |
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2|service was computed at the time of his or her retirement shall be |
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3|restored to full force and effect. |
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4| (7) Should a member before retirement under Section 1-101 et |
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5|seq. of this title make application for withdrawal duly filed with |
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6|the System, not earlier than four (4) months after the date of |
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7|termination of such service as a teacher, the contribution standing |
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8|to the credit of his or her individual account in the Teachers' |
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9|Savings Fund shall be paid to him or her or, in the event of his or |
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10|her death before retirement, shall be paid to such person or persons |
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11|as he or she shall have nominated by written designation, duly |
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12|executed and filed with the System; provided, however, if there be |
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13|no designated beneficiary surviving upon such death, such |
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14|contributions shall be paid to his or her administrators, executors, |
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15|or assigns, together with interest as hereinafter provided. In lieu |
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16|of a lump-sum settlement at the death of the member, the amount of |
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17|money the member has on deposit in the Teachers' Savings Fund and |
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18|the money the member has on deposit in the Teachers' Deposit Fund |
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19|may be paid in monthly payments to a designated beneficiary, who |
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20|must be the spouse, under the Maximum or Option 1 Plan of Retirement |
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21|providing the monthly payment shall be not less than Twenty-five |
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22|Dollars ($25.00) per month. The monthly payment shall be the |
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23|actuarial equivalent of the amount becoming due at the member's |
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24|death based on the sex of the spouse and the age the spouse has |
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1|attained at the last birthday prior to the member's death. Provided |
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2|further, if there be no designated beneficiary surviving upon such |
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3|death, and the contributions standing to the credit of such member |
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4|do not exceed Two Hundred Dollars ($200.00), no part of such |
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5|contributions shall be subject to the payment of any expense of the |
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6|last illness or funeral of the deceased member or any expense of |
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7|administration of the estate of such deceased and the System, upon |
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8|satisfactory proof of the death of such member and of the name or |
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9|names of the person or persons who would be entitled to receive such |
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10|contributions under the laws of descent and distribution of the |
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11|state, may authorize the payment of accumulated contributions to |
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12|such person or persons. A member terminating his or her membership |
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13|by withdrawal after June 30, 2003, shall have the interest computed |
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14|at a rate of interest determined by the Board of Trustees and paid |
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15|to him or her subject to the following schedule: |
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16| (a) If termination occurs within sixteen (16) years from the |
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17|date membership began, fifty percent (50%) of such interest |
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18|accumulations shall be paid. |
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19| (b) With at least sixteen (16) but less than twenty-one (21) |
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20|years of membership, sixty percent (60%) of such interest |
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21|accumulations shall be paid. |
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22| (c) With at least twenty-one (21) but less than twenty-six (26) |
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23|years of membership, seventy-five percent (75%) of such interest |
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24|accumulations shall be paid. |
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1| (d) With at least twenty-six (26) years of membership, ninety |
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2|percent (90%) of such interest accumulations shall be paid. |
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3| In case of death of an active member, the interest shall be |
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4|calculated and restored to the member's account and paid to his or |
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5|her beneficiary. |
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6| (8) (a) In lieu of his or her retirement allowance payable |
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7|throughout life for such an amount as determined under this section, |
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8|the member may select a retirement allowance for a reduced amount |
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9|payable under any of the following options the present value of |
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10|which is the actuarial equivalent thereof. |
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11| (b) A member may select the option under which he or she |
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12|desires to retire at the end of the school year in which he or she |
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13|attains age seventy (70) years of age and the option shall be |
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14|binding and cannot be changed. Provided further that if a member |
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15|retires before age seventy (70) years of age, no election of an |
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16|option shall be effective in case an annuitant dies before the first |
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17|payment due under such option has been received. |
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18| (c) The first payment of any benefit selected shall be made on |
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19|the first day of the month following approval of the retirement by |
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20|the System. If the named designated joint annuitant under Option 2 |
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21|or 3 dies at any time after the member's retirement date, but before |
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22|the death of the member, the member shall return to the retirement |
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23|benefit, including any post retirement benefit increases the member |
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24|would have received had the member not selected Option 2 or 3 of |
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1|this subsection. The benefit shall be determined at the date of |
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2|death of the designated joint annuitant. This increase shall become |
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3|effective the first day of the month following the date of death of |
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4|the designated joint annuitant, and shall be payable for the |
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5|member's remaining lifetime. The member shall notify the Teachers' |
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6|Retirement System of Oklahoma of the death of the designated joint |
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7|annuitant in writing. In the absence of the written notice being |
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8|filed by the member notifying the Teachers' Retirement System of |
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9|Oklahoma of the death of the designated joint annuitant within six |
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10|(6) months of the date of death, nothing in this subsection shall |
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11|require the Teachers' Retirement System of Oklahoma to pay more than |
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12|six (6) months of retrospective benefits increase. |
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13| Option 1. If he or she dies before he or she has received in |
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14|annuity payments the present value of his or her annuity as it was |
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15|at the time of his or her retirement, the balance shall be paid to |
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16|his or her legal representatives or to such person as he or she |
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17|shall nominate by written designation duly acknowledged and filed |
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18|with the System at the time of his or her retirement; or |
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19| Option 2. A member takes a reduced retirement allowance for |
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20|life. Upon the death of the member the payments shall continue to |
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21|the member's designated joint annuitant for the life of the joint |
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22|annuitant. The written designation of the joint annuitant must be |
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23|duly acknowledged and filed with the System at the time of the |
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24|member's retirement and, except as provided in paragraph (e) of this |
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1|subsection, cannot be changed after the effective date of the |
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2|member's retirement; or |
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3| Option 3. A member receives a reduced retirement allowance for |
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4|life. Upon the death of the member one-half (1/2) of the retirement |
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5|allowance paid the member shall be continued throughout the life of |
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6|the designated joint annuitant. A written designation of a joint |
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7|annuitant must be duly acknowledged and filed with the System at the |
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8|time of the member's retirement and, except as provided in paragraph |
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9|(e) of this subsection, cannot be changed after the effective date |
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10|of the member's retirement; or |
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11| Option 4. Some other benefit or benefits shall be paid either |
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12|to the member or to such joint annuitant as he or she shall |
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13|nominate, provided such other benefit or benefits, together with the |
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14|reduced retirement allowance, shall be certified by the actuary to |
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15|be of equivalent actuarial value to his or her retirement allowance |
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16|and shall be approved by the System. |
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17| (d) Provided that Option 2 and Option 3 shall not be available |
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18|if the member's expected benefit is less than fifty percent (50%) of |
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19|the lump-sum actuarial equivalent and the designated joint annuitant |
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20|is not the spouse of the member. |
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21| (e) A member who chose the maximum retirement benefit plan at |
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22|the time of retirement may make a one-time election to choose either |
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23|Option 2 or 3 and name the member's spouse as designated joint |
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24|annuitant if the member marries after making the initial election. |
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1|Such an election shall be made within one (1) year of the date of |
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2|marriage. The member shall provide proof of a member's good health |
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3|before the System will permit a change to either Option 2 or 3 and |
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4|the naming of a designated joint annuitant. A medical examination |
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5|conducted by a licensed physician is required for purposes of |
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6|determining good health. Such examination must be approved by the |
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7|Medical Board. The member shall be required to provide proof of age |
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8|for the new joint annuitant. The System shall adjust the monthly |
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9|benefit to the actuarially equivalent amount based on the new |
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10|designated joint annuitant's age. The Board of Trustees shall |
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11|promulgate rules to implement the provisions of this subsection. |
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12| (f) A member who retires after the effective date of this act |
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13|and has selected a retirement allowance for a reduced amount payable |
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14|under one of the options provided for in this subsection may make a |
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15|one-time irrevocable election to select a different option within |
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16|sixty (60) days of the member's retirement date. The beneficiary or |
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17|joint annuitant designated by the member at the time of retirement |
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18|shall not be changed if the member makes the election provided for |
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19|in this paragraph. |
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20| (g) Any individual who is eligible to be a beneficiary or joint |
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21|annuitant of a member under this subsection, and who is also a |
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22|beneficiary of a trust created under the Oklahoma Discretionary and |
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23|Special Needs Trust Act, Section 175.81 et seq. of Title 60 of the |
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24|Oklahoma Statutes, or a comparable Trust Act created under the laws |
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1|of another state, hereinafter collectively referred to as "Trust |
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2|Acts", may be a beneficiary or joint annuitant under this subsection |
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3|by having the trustee of the trust established for the benefit of |
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4|that individual named as the legal beneficiary or joint annuitant |
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5|under this subsection. The age of that beneficiary shall be used |
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6|for calculating any benefit payable to the trust under this |
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7|subsection. The beneficiary of such a trust shall be treated as the |
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8|beneficiary or joint annuitant under this subsection except that |
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9|payments of any benefits due under this subsection shall be payable |
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10|to the lawfully appointed trustee of the trust. The obligation of |
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11|the System to pay the beneficiary or joint annuitant under this |
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12|subsection shall be satisfied by payment to the trustee whom the |
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13|System, in good faith, believes to be the lawfully appointed |
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14|trustee. Any conflict between the statutes creating and governing |
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15|the Teachers' Retirement System in Section 17-101 et seq. of this |
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16|title and the provisions of any Trust Act referred to above shall be |
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17|resolved in favor of the statutes governing the System. If an |
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18|eligible beneficiary or joint annuitant is named at the time of |
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19|retirement, and becomes a beneficiary of a trust under one of the |
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20|Trust Acts described herein after that time, the System will |
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21|acknowledge the trust as the beneficiary upon the submission of |
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22|adequate documentation of the existence of the trust. All other |
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23|provisions of this subsection shall apply to these subsequently |
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24|created trusts. |
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1| (h) The Board of Trustees of the System may recognize other |
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2|trusts set up for the benefit of individuals otherwise eligible to |
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3|be named as a beneficiary or joint annuitant under this subsection |
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4|by administrative rule if it can be done without undue additional |
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5|administrative expense of the System. |
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6| (9) The governing board of any "public school", as that term is |
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7|defined in Section 17-101 of this title, is hereby authorized and |
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8|empowered to pay additional retirement allowances or compensation to |
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9|any person who was in the employ of such public school for not less |
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10|than seven (7) five (5) school years preceding the date of his or |
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11|her retirement. Payments so made shall be a proper charge against |
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12|the current appropriation or appropriations of any such public |
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13|school for salaries for the fiscal year in which such payments are |
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14|made. Such payments shall be made in regular monthly installments |
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15|in such amounts as the governing board of any such public school, in |
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16|its judgment, shall determine to be reasonable and appropriate in |
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17|view of the length and type of service rendered by any such person |
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18|to such public school by which such person was employed at the time |
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19|of retirement. All such additional payments shall be uniform, based |
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20|upon the length of service and the type of services performed, to |
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21|persons formerly employed by such public school who have retired or |
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22|been retired in accordance with the provisions of Section 17-101 et |
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23|seq. of this title. |
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24| |
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Req. No. 5173 Page 16
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1| The governing board of any such public school may adopt rules |
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2|and regulations of general application outlining the terms and |
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3|conditions under which such additional retirement benefits shall be |
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4|paid, and all decisions of such board shall be final. |
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5| (10) In addition to the teachers' retirement herein provided, |
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6|teachers may voluntarily avail themselves of the Federal Social |
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7|Security Program upon a district basis. |
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8| (11) Upon the death of an in-service member, the System shall |
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9|pay to the designated beneficiary of the member or, if there is no |
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10|designated beneficiary or if the designated beneficiary predeceases |
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11|the member, to the estate of the member, the sum of Eighteen |
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12|Thousand Dollars ($18,000.00) as a death benefit. Provided, if the |
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13|deceased member had ten (10) years or more of creditable service, |
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14|the member's designated beneficiary may elect to receive the |
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15|retirement benefit to which the deceased member would have been |
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16|entitled at the time of death under the Option 2 plan of retirement |
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17|in lieu of the death benefit provided for in this subsection. |
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18|Provided further, the option provided in this subsection is only |
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19|available when the member has designated one individual as the |
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20|designated beneficiary. The beneficiary or beneficiaries of death |
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21|benefits in the amount not to exceed Eighteen Thousand Dollars |
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22|($18,000.00), but exclusive of any retirement benefit received by an |
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23|electing beneficiary based upon creditable service performed by the |
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24|deceased member, which are provided pursuant to this subsection may |
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Req. No. 5173 Page 17
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1|elect to disclaim such death benefits in which case such benefits |
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2|will be transferred to a person licensed as a funeral director or to |
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3|a lawfully recognized business entity licensed as required by law to |
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4|provide funeral services for the deceased member. The qualified |
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5|disclaimer must be in writing and will be an irrevocable and an |
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6|unqualified refusal to accept all or a portion of the death benefit. |
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7| It must be received by the transferor no more than nine (9) months |
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8|after the later of the day the transfer creating the interest in the |
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9|disclaiming person is made or the day the disclaiming person attains |
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10|age twenty-one (21) years of age. The interest in the death |
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11|benefits must pass without direction by the disclaiming person to |
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12|another person. |
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13| (12) Upon the death of a retired member who has contributed to |
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14|the System, the retirement system shall pay to the designated |
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15|beneficiary of the member or, if there is no designated beneficiary |
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16|or if the designated beneficiary predeceases the member, to the |
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17|estate of the member, the sum of Five Thousand Dollars ($5,000.00) |
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18|as a death benefit. The beneficiary or beneficiaries of benefits |
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19|provided pursuant to this subsection may elect to disclaim such |
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20|death benefits in which case such benefits will be transferred to a |
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21|person licensed as a funeral director or to a lawfully recognized |
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22|business entity licensed as required by law to provide funeral |
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23|services for the deceased member. The qualified disclaimer must be |
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24|in writing and will be an irrevocable and an unqualified refusal to |
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Req. No. 5173 Page 18
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1|accept all or a portion of the death benefit. It must be received |
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2|by the transferor no more than nine (9) months after the later of |
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3|the day the transfer creating the interest in the disclaiming person |
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4|is made or the day the disclaiming person attains age twenty-one |
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5|(21) years of age. The interest in the death benefits must pass |
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6|without direction by the disclaiming person to another person. The |
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7|benefit payable pursuant to this subsection shall be deemed, for |
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8|purposes of federal income taxation, as life insurance proceeds and |
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9|not as a death benefit if the Internal Revenue Service approves this |
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10|provision pursuant to a private letter ruling request which shall be |
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11|submitted by the Board of Trustees of the System for that purpose. |
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12| (13) Upon the death of a member who dies leaving no living |
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13|beneficiary or having designated his or her estate as beneficiary, |
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14|the System may pay any applicable death benefit, unpaid |
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15|contributions, or unpaid benefit which may be subject to probate, in |
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16|an amount of Twenty-five Thousand Dollars ($25,000.00) or less, |
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17|without the intervention of the probate court or probate procedure |
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18|pursuant to Section 1 et seq. of Title 58 of the Oklahoma Statutes. |
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19| (a) Before any applicable probate procedure may be waived, the |
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20|System must be in receipt of the member's proof of death and the |
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21|following documents from those persons claiming to be the legal |
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22|heirs of the deceased member: |
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23| 1. The member's valid last will and testament, trust |
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24| documents or affidavit that a will does not exist; |
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Req. No. 5173 Page 19
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1| 2. An affidavit or affidavits of heirship which must |
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2| state: |
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3| a. the names and signatures of all claiming heirs to |
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4| the deceased member's estate including the |
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5| claiming heirs' names, relationship to the |
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6| deceased, current addresses, tax I.D. numbers if |
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7| known and current telephone numbers, |
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8| b. a statement or statements by the claiming heirs |
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9| that no application or petition for the |
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10| appointment of a personal representative is |
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11| pending or has been granted in any jurisdiction, |
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12| c. a description of the personal property claimed, |
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13| (i.e., death benefit or unpaid contributions or |
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14| both) together with a statement that such |
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15| personal property is subject to probate, |
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16| d. a statement by each individual claiming heir |
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17| identifying the amount of personal property that |
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18| the heir is claiming from the System, and that |
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19| the heir has been notified of, is aware of and |
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20| consents to the identified claims of all the |
| |
21| other claiming heirs of the deceased member |
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22| pending with the System; |
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23| 3. A written agreement or agreements signed by all |
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24| claiming heirs of the deceased member which provides |
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Req. No. 5173 Page 20
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1| that the claiming heirs release, discharge and hold |
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2| harmless the System from any and all liability, |
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3| obligations and costs which it may incur as a result |
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4| of making a payment to any of the deceased member's |
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5| heirs; |
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6| 4. A corroborating affidavit from an individual other |
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7| than a claiming heir, who was familiar with the |
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8| affairs of the deceased member; |
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9| 5. Proof that all debts of the deceased member, including |
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10| payment of last sickness, hospital, medical, death, |
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11| funeral and burial expenses have been paid or provided |
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12| for. |
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13| (b) The Executive Director of the System shall retain complete |
| |
14|discretion in determining which requests for probate waiver may be |
| |
15|granted or denied, for any reason. Should the System have any |
| |
16|question as to the validity of any document presented by the |
| |
17|claiming heirs, or as to any statement or assertion contained |
| |
18|therein, the probate requirement provided for in Section 1 et seq. |
| |
19|of Title 58 of the Oklahoma Statutes shall not be waived. |
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20| (c) After paying any death benefits or unpaid contributions to |
| |
21|any claiming heirs as provided pursuant to this subsection, the |
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22|System is discharged and released from any and all liability, |
| |
23|obligation and costs to the same extent as if the System had dealt |
| |
24|with a personal representative of the deceased member. The System |
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Req. No. 5173 Page 21
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1|is not required to inquire into the truth of any matter specified in |
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2|this subsection or into the payment of any estate tax liability. |
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3| (14) Upon the death of a retired member, the benefit payment |
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4|for the month in which the retired member died, if not previously |
| |
5|paid, shall be made to the joint annuitant if still living, to the |
| |
6|beneficiary of the member if the joint annuitant is deceased, or to |
| |
7|the member's estate if there is no surviving joint annuitant or |
| |
8|beneficiary. Such benefit payment shall be made in an amount equal |
| |
9|to a full monthly benefit payment regardless of the day of the month |
| |
10|in which the retired member died. |
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11|SECTION 2. This act shall become effective November 1, 2023. |
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12| |
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13|59-1-5173 EK11/07/22THOMAS E. |
|CUMMINS CONSULTING ACTUARY, INC. |
14|2512 E. 71st Street , Suite D 'b7 Tulsa, Oklahoma 74136 |
| (918) 492-9658 'b7 (918) 492- 9659 |
15| |
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16| |
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17|January 6, 2023 |
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18| |
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19|Representative Toni Hasenbeck |
|Room 244 |
20| |
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21|Re: RBH No. 5173 |
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22| |
|RBH No. 5173 reduces the length of service to be vested to 5 years |
23|from 7 years for OTRS participants entering the system after |
|10/31/2017. |
24| |
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Page 22
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1|Participants who entered prior to 11/01/2017 the length of service |
|was already 5 years. |
2| |
|RBH No. 5173 is a fiscal bill as defined by OPLAAA. |
3| |
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4| |
|I am a member of the American Academy of Actuaries and meet the |
5|Qualification Standards of the American Academy of Actuaries to |
|render the actuarial opinion herein. |
6| |
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7|Thomas E. Cummins |
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8|Thomas E. Cummins, MAAA |
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