1| HOUSE OF REPRESENTATIVES - FLOOR VERSION | | | 2| STATE OF OKLAHOMA | | | 3| 1st Session of the 59th Legislature (2023) | | | 4|COMMITTEE SUBSTITUTE | |FOR | 5|HOUSE BILL NO. 2279 By: Echols and Fugate of the | | House | 6| | | and | 7| | | Montgomery of the Senate | 8| | | | 9| COMMITTEE SUBSTITUTE | | | 10| An Act relating to public retirement systems; | | amending 62 O.S. 2021, Section 3103, as amended by | 11| Section 1, Chapter 306, O.S.L. 2022 (62 O.S. Supp. | | 2022, Section 3103), which relates to the Oklahoma | 12| Pension Legislation Actuarial Analysis Act; modifying | | definitions; providing for retirement benefit | 13| increase based upon prescribed criteria for certain | | members of the Oklahoma Firefighters Pension and | 14| Retirement System, the Oklahoma Police Pension and | | Retirement System, the Uniform Retirement System for | 15| Justices and Judges, the Oklahoma Law Enforcement | | Retirement System, the Teachers' Retirement System of | 16| Oklahoma and the Oklahoma Public Employees Retirement | | System; prescribing conditions for retirement benefit | 17| increase; defining terms; providing for method to | | determine amount of benefit increase; providing for | 18| maximum increase amount; prohibiting retirement | | benefit increase based upon funded ratio of | 19| retirement system after grant of benefit; authorizing | | grant of benefit increase subject to limitation based | 20| upon funded ratio; imposing requirement related to | | rate of return on retirement system assets; imposing | 21| requirement related to duration of retirement; | | prescribing date for effect of benefit increases; | 22| providing for codification; and providing effective | | dates. | 23| | | | 24| | | | arsid14056004 HB2279 HFLR Page 1 ___________________________________________________________________________
1|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: | | | 2| SECTION 1. AMENDATORY 62 O.S. 2021, Section 3103, as | | | 3|amended by Section 1, Chapter 306, O.S.L. 2022 (62 O.S. Supp. 2022, | | | 4|Section 3103), is amended to read as follows: | | | 5| Section 3103. As used in the Oklahoma Pension Legislation | | | 6|Actuarial Analysis Act: | | | 7| 1. "Amendment" means any amendment, including a substitute | | | 8|bill, made to a retirement bill by any committee of the House or | | | 9|Senate, any conference committee of the House or Senate or by the | | | 10|House or Senate; | | | 11| 2. "RB number" means that number preceded by the letters "RB" | | | 12|assigned to a retirement bill by the respective staffs of the | | | 13|Oklahoma State Senate and the Oklahoma House of Representatives when | | | 14|the respective staff office prepares a retirement bill for a member | | | 15|of the Legislature; | | | 16| 3. "Legislative Actuary" means the firm or entity that enters | | | 17|into a contract with the Legislative Service Bureau pursuant to | | | 18|Section 452.15 of Title 74 of the Oklahoma Statutes to provide the | | | 19|actuarial services and other duties provided for in the Oklahoma | | | 20|Pension Legislation Actuarial Analysis Act; | | | 21| 4. "Nonfiscal amendment" means an amendment to a retirement | | | 22|bill having a fiscal impact, which amendment does not change any | | | 23|factor of an actuarial investigation specified in subsection A of | | | 24|Section 3109 of this title; | | | arsid14056004 HB2279 HFLR Page 2 ___________________________________________________________________________
1| 5. "Nonfiscal retirement bill" means a retirement bill: | | | 2| a. which does not affect the cost or funding factors of | | | 3| a retirement system, | | | 4| b. which affects such factors only in a manner which | | | 5| does not: | | | 6| (1) grant a benefit increase under the retirement | | | 7| system affected by the bill, | | | 8| (2) create an actuarial accrued liability for or | | | 9| increase the actuarial accrued liability of the | | | 10| retirement system affected by the bill, or | | | 11| (3) increase the normal cost of the retirement | | | 12| system affected by the bill, | | | 13| c. which authorizes the purchase by an active member of | | | 14| the retirement system, at the actuarial cost for the | | | 15| purchase as computed pursuant to the statute in effect | | | 16| on the effective date of the measure allowing such | | | 17| purchase, of years of service for purposes of reaching | | | 18| a normal retirement date in the applicable retirement | | | 19| system, but which cannot be used in order to compute | | | 20| the number of years of service for purposes of | | | 21| computing the retirement benefit for the member, | | | 22| d. which provides for the computation of a | | | 23| service-connected disability retirement benefit for | | | 24| members of the Oklahoma Law Enforcement Retirement | | | arsid14056004 HB2279 HFLR Page 3 ___________________________________________________________________________
1| System pursuant to Section 2-305 of Title 47 of the | | | 2| Oklahoma Statutes if the members were unable to | | | 3| complete twenty (20) years of service as a result of | | | 4| the disability, | | | 5| e. which requires membership in the defined benefit plan | | | 6| authorized by Section 901 et seq. of Title 74 of the | | | 7| Oklahoma Statutes for persons whose first elected or | | | 8| appointed service occurs on or after November 1, 2018, | | | 9| if such persons had any prior service in the Oklahoma | | | 10| Public Employees Retirement System prior to November | | | 11| 1, 2015, | | | 12| f. which provides for a one-time increase in retirement | | | 13| benefits if the increase in retirement benefits is not | | | 14| a permanent increase in the gross annual retirement | | | 15| benefit payable to a member or beneficiary, occurs | | | 16| only once pursuant to a single statutory authorization | | | 17| and does not exceed: | | | 18| (1) the lesser of two percent (2%) of the gross | | | 19| annual retirement benefit of the member or One | | | 20| Thousand Dollars ($1,000.00) and requires that | | | 21| the benefit may only be provided if the funded | | | 22| ratio of the affected retirement system would not | | | 23| be less than sixty percent (60%) but not greater | | | 24| | | | arsid14056004 HB2279 HFLR Page 4 ___________________________________________________________________________
1| than eighty percent (80%) after the benefit | | | 2| increase is paid, | | | 3| (2) the lesser of two percent (2%) of the gross | | | 4| annual retirement benefit of the member or One | | | 5| Thousand Two Hundred Dollars ($1,200.00) and | | | 6| requires that the benefit may only be provided if | | | 7| the funded ratio of the affected retirement | | | 8| system would be greater than eighty percent (80%) | | | 9| but not greater than one hundred percent (100%) | | | 10| after the benefit increase is paid, | | | 11| (3) the lesser of two percent (2%) of the gross | | | 12| annual retirement benefit of the member or One | | | 13| Thousand Four Hundred Dollars ($1,400.00) and | | | 14| requires that the benefit may only be provided if | | | 15| the funded ratio of the affected retirement | | | 16| system would be greater than one hundred percent | | | 17| (100%) after the benefit increase is paid, or | | | 18| (4) the greater of two percent (2%) of the gross | | | 19| annual retirement benefit of the volunteer | | | 20| firefighter or One Hundred Dollars ($100.00) for | | | 21| persons who retired from the Oklahoma | | | 22| Firefighters Pension and Retirement System as | | | 23| volunteer firefighters and who did not retire | | | 24| | | | arsid14056004 HB2279 HFLR Page 5 ___________________________________________________________________________
1| from the Oklahoma Firefighters Pension and | | | 2| Retirement System as a paid firefighter. | | | 3| As used in this subparagraph, "funded ratio" means the | | | 4| figure derived by dividing the actuarial value of | | | 5| assets of the applicable retirement system by the | | | 6| actuarial accrued liability of the applicable | | | 7| retirement system, | | | 8| g. which modifies the disability pension standard for | | | 9| police officers who are members of the Oklahoma Police | | | 10| Pension and Retirement System as provided by Section 3 | | | 11| of this act, | | | 12| h. which provides a cost-of-living benefit increase | | | 13| pursuant to the provisions of: | | | 14| (1) Section 49-143.7 of Title 11 of the Oklahoma | | | 15| Statutes, | | | 16| (2) Section 50-136.9 of Title 11 of the Oklahoma | | | 17| Statutes, | | | 18| (3) Section 1104K of Title 20 of the Oklahoma | | | 19| Statutes, | | | 20| (4) Section 2-305.12 of Title 47 of the Oklahoma | | | 21| Statutes, | | | 22| (5) Section 17-116.22 of Title 70 of the Oklahoma | | | 23| Statutes, | | | 24| | | | arsid14056004 HB2279 HFLR Page 6 ___________________________________________________________________________
1| (6) Section 930.11 of Title 74 of the Oklahoma | | | 2| Statutes,or| | | 3|i. which modifies the computation of the line-of-duty | | | 4| disability benefit pursuant to the provisions of this | | | 5| act, or | | | 6| j. which authorizes the boards of trustees for the | | | 7| public retirement systems as described in Sections 2 | | | 8| through 7 of this act to provide retirement benefit | | | 9| increases according to the requirements and | | | 10| limitations of those sections. | | | 11|A nonfiscal retirement bill shall include any retirement bill that | | | 12|has as its sole purpose the appropriation or distribution or | | | 13|redistribution of monies in some manner to a retirement system for | | | 14|purposes of reducing the unfunded liability of such system or the | | | 15|earmarking of a portion of the revenue from a tax to a retirement | | | 16|system or increasing the percentage of the revenue earmarked from a | | | 17|tax to a retirement system; | | | 18| 6. "Reduction-in-cost amendment" means an amendment to a | | | 19|retirement bill having a fiscal impact which reduces the cost of the | | | 20|bill as such cost is determined by the actuarial investigation for | | | 21|the bill prepared pursuant to Section 3109 of this title; | | | 22| 7. "Retirement bill" means any bill or joint resolution | | | 23|introduced or any bill or joint resolution amended by a member of | | | 24|the Oklahoma Legislature which creates or amends any law directly | | | arsid14056004 HB2279 HFLR Page 7 ___________________________________________________________________________
1|affecting a retirement system. A retirement bill shall not mean a | | | 2|bill or resolution that impacts the revenue of any state tax in | | | 3|which a portion of the revenue generated from such tax is earmarked | | | 4|for the benefit of a retirement system; | | | 5| 8. "Retirement bill having a fiscal impact" means any | | | 6|retirement bill creating or establishing a retirement system and any | | | 7|other retirement bill other than a nonfiscal retirement bill; and | | | 8| 9. "Retirement system" means the Teachers' Retirement System of | | | 9|Oklahoma, the Oklahoma Public Employees Retirement System, the | | | 10|Uniform Retirement System for Justices and Judges, the Oklahoma | | | 11|Firefighters Pension and Retirement System, the Oklahoma Police | | | 12|Pension and Retirement System, the Oklahoma Law Enforcement | | | 13|Retirement System, or a retirement system established after January | | | 14|1, 2006. | | | 15| SECTION 2. NEW LAW A new section of law to be codified | | | 16|in the Oklahoma Statutes as Section 49-143.8 of Title 11, unless | | | 17|there is created a duplication in numbering, reads as follows: | | | 18| A. As used in this section: | | | 19| 1. "Beneficiary" means either a retired member of the | | | 20|retirement system or the survivor or other designated beneficiary of | | | 21|a retired member of the system; | | | 22| 2. "CPI-W" means the measure of inflation published by the | | | 23|United States Bureau of Labor Statistics for Urban Wage Earners and | | | 24|Clerical Workers; | | | arsid14056004 HB2279 HFLR Page 8 ___________________________________________________________________________
1| 3. "Funded ratio" means the figure derived by dividing the | | | 2|actuarial value of retirement system assets by the actuarial accrued | | | 3|liability amount of the retirement system using the information | | | 4|reported to the retirement system by its actuary in the annual | | | 5|valuation and which is computed as of a day certain; and | | | 6| 4. "Retirement system" means the Oklahoma Firefighters Pension | | | 7|and Retirement System. | | | 8| B. The board of trustees of the Oklahoma Firefighters Pension | | | 9|and Retirement System shall grant a retirement benefit increase to | | | 10|the retired members of the system or their beneficiaries according | | | 11|to the requirements of this section. | | | 12| C. The benefit increase may only be implemented if the Consumer | | | 13|Price Index-Wage and Clerical Workers (CPI-W) for the calendar year | | | 14|preceding the year during which the benefit increase is to be | | | 15|granted reflects a positive rate of increase, but the retirement | | | 16|benefit increase shall not exceed four percent (4.0%). | | | 17| D. The funded ratio of the retirement system must be at least | | | 18|seventy-five percent (75%) after the benefit increase is provided to | | | 19|the eligible retirees or beneficiaries. If the grant of a | | | 20|retirement benefit increase based on the full amount of the increase | | | 21|in CPI-W for the applicable year would cause the retirement system | | | 22|funded ratio to be less than the figure prescribed by this section, | | | 23|the board of trustees shall provide a retirement benefit increase in | | | 24|such lesser amount as possible without causing a reduction of the | | | arsid14056004 HB2279 HFLR Page 9 ___________________________________________________________________________
1|funded ratio for the system to be less than the amount prescribed by | | | 2|this section. | | | 3| E. For the plan year ending June 30 or July 1, as applicable, | | | 4|immediately prior to the effective date of the retirement benefit | | | 5|increase otherwise authorized by this section, the rate of return | | | 6|for the retirement system assets must have been equal to or in | | | 7|excess of the actuarial assumption for the rate of return on system | | | 8|assets in effect at the beginning of such plan year. | | | 9| F. Only those persons who have been retired for at least one | | | 10|(1) year prior to the effective date of the retirement benefit | | | 11|increase shall be eligible for the benefit increase. | | | 12| G. If otherwise authorized pursuant to the provisions of this | | | 13|section, the retirement benefit increase shall be effective July 1 | | | 14|each year. | | | 15| SECTION 3. NEW LAW A new section of law to be codified | | | 16|in the Oklahoma Statutes as Section 50-136.10 of Title 11, unless | | | 17|there is created a duplication in numbering, reads as follows: | | | 18| A. As used in this section: | | | 19| 1. "Beneficiary" means either a retired member of the | | | 20|retirement system or the survivor or other designated beneficiary of | | | 21|a retired member of the system; | | | 22| 2. "CPI-W" means the measure of inflation published by the | | | 23|United States Bureau of Labor Statistics for Urban Wage Earners and | | | 24|Clerical Workers; | | | arsid14056004 HB2279 HFLR Page 10 ___________________________________________________________________________
1| 3. "Funded ratio" means the figure derived by dividing the | | | 2|actuarial value of retirement system assets by the actuarial accrued | | | 3|liability amount of the retirement system using the information | | | 4|reported to the retirement system by its actuary in the annual | | | 5|valuation and which is computed as of a day certain; and | | | 6| 4. "Retirement system" means the Oklahoma Police Pension and | | | 7|Retirement System. | | | 8| B. The board of trustees of the Oklahoma Police Pension and | | | 9|Retirement System shall grant a retirement benefit increase to the | | | 10|retired members of the system or their beneficiaries according to | | | 11|the requirements of this section. | | | 12| C. The benefit increase may only be implemented if the Consumer | | | 13|Price Index-Wage Earners and Clerical Workers (CPI-W) for the | | | 14|calendar year preceding the year during which the benefit increase | | | 15|is to be granted reflects a positive rate of increase, but the | | | 16|retirement benefit increase shall not exceed four percent (4.0%). | | | 17| D. The funded ratio of the retirement system must be at least | | | 18|ninety percent (90%) after the benefit increase is provided to the | | | 19|eligible retirees or beneficiaries. If the grant of a retirement | | | 20|benefit increase based on the full amount of the increase in CPI-W | | | 21|for the applicable year would cause the retirement system funded | | | 22|ratio to be less than the figure prescribed by this section, the | | | 23|board of trustees shall provide a retirement benefit increase in | | | 24|such lesser amount as possible without causing a reduction of the | | | arsid14056004 HB2279 HFLR Page 11 ___________________________________________________________________________
1|funded ratio for the system to be less than the amount prescribed by | | | 2|this section. | | | 3| E. For the plan year ending June 30 or July 1, as applicable, | | | 4|immediately prior to the effective date of the retirement benefit | | | 5|increase otherwise authorized by this section, the rate of return | | | 6|for the retirement system assets must have been equal to or in | | | 7|excess of the actuarial assumption for the rate of return on system | | | 8|assets in effect at the beginning of such plan year. | | | 9| F. Only those persons who have been retired for at least one | | | 10|(1) year prior to the effective date of the retirement benefit | | | 11|increase shall be eligible for the benefit increase. | | | 12| G. If otherwise authorized pursuant to the provisions of this | | | 13|section, the retirement benefit increase shall be effective July 1 | | | 14|each year. | | | 15| SECTION 4. NEW LAW A new section of law to be codified | | | 16|in the Oklahoma Statutes as Section 1104L of Title 20, unless there | | | 17|is created a duplication in numbering, reads as follows: | | | 18| A. As used in this section: | | | 19| 1. "Beneficiary" means either a retired member of the | | | 20|retirement system or the survivor or other designated beneficiary of | | | 21|a retired member of the system; | | | 22| 2. "CPI-W" means the measure of inflation published by the | | | 23|United States Bureau of Labor Statistics for Urban Wage Earners and | | | 24|Clerical Workers; | | | arsid14056004 HB2279 HFLR Page 12 ___________________________________________________________________________
1| 3. "Funded ratio" means the figure derived by dividing the | | | 2|actuarial value of retirement system assets by the actuarial accrued | | | 3|liability amount of the retirement system using the information | | | 4|reported to the retirement system by its actuary in the annual | | | 5|valuation and which is computed as of a day certain; and | | | 6| 4. "Retirement system" means the Uniform Retirement System for | | | 7|Justices and Judges. | | | 8| B. The board of trustees of the Uniform Retirement System for | | | 9|Justices and Judges shall grant a retirement benefit increase to the | | | 10|retired members of the system or their beneficiaries according to | | | 11|the requirements of this section. | | | 12| C. The benefit increase may only be implemented if the Consumer | | | 13|Price Index-Wage and Clerical Workers (CPI-W) for the calendar year | | | 14|preceding the year during which the benefit increase is to be | | | 15|granted reflects a positive rate of increase, but the retirement | | | 16|benefit increase shall not exceed four percent (4.0%). | | | 17| D. The funded ratio of the retirement system must be at least | | | 18|ninety percent (90%) after the benefit increase is provided to the | | | 19|eligible retirees or beneficiaries. If the grant of a retirement | | | 20|benefit increase based on the full amount of the increase in CPI-W | | | 21|for the applicable year would cause the retirement system funded | | | 22|ratio to be less than the figure prescribed by this section, the | | | 23|board of trustees shall provide a retirement benefit increase in | | | 24|such lesser amount as possible without causing a reduction of the | | | arsid14056004 HB2279 HFLR Page 13 ___________________________________________________________________________
1|funded ratio for the system to be less than the amount prescribed by | | | 2|this section. | | | 3| E. For the plan year ending June 30 or July 1, as applicable, | | | 4|immediately prior to the effective date of the retirement benefit | | | 5|increase otherwise authorized by this section, the rate of return | | | 6|for the retirement system assets must have been equal to or in | | | 7|excess of the actuarial assumption for the rate of return on system | | | 8|assets in effect at the beginning of such plan year. | | | 9| F. Only those persons who have been retired for at least one | | | 10|(1) year prior to the effective date of the retirement benefit | | | 11|increase shall be eligible for the benefit increase. | | | 12| G. If otherwise authorized pursuant to the provisions of this | | | 13|section, the retirement benefit increase shall be effective July 1 | | | 14|each year. | | | 15| SECTION 5. NEW LAW A new section of law to be codified | | | 16|in the Oklahoma Statutes as Section 2-305.13 of Title 47, unless | | | 17|there is created a duplication in numbering, reads as follows: | | | 18| A. As used in this section: | | | 19| 1. "Beneficiary" means either a retired member of the | | | 20|retirement system or the survivor or other designated beneficiary of | | | 21|a retired member of the system; | | | 22| 2. "CPI-W" means the measure of inflation published by the | | | 23|United States Bureau of Labor Statistics for Urban Wage Earners and | | | 24|Clerical Workers; | | | arsid14056004 HB2279 HFLR Page 14 ___________________________________________________________________________
1| 3. "Funded ratio" means the figure derived by dividing the | | | 2|actuarial value of retirement system assets by the actuarial accrued | | | 3|liability amount of the retirement system using the information | | | 4|reported to the retirement system by its actuary in the annual | | | 5|valuation and which is computed as of a day certain; and | | | 6| 4. "Retirement system" means the Oklahoma Law Enforcement | | | 7|Retirement System. | | | 8| B. The board of trustees of the Oklahoma Law Enforcement | | | 9|Retirement System shall grant a retirement benefit increase to the | | | 10|retired members of the system or their beneficiaries according to | | | 11|the requirements of this section. | | | 12| C. The benefit increase may only be implemented if the Consumer | | | 13|Price Index-Wage and Clerical Workers (CPI-W) for the calendar year | | | 14|preceding the year during which the benefit increase is to be | | | 15|granted reflects a positive rate of increase, but the retirement | | | 16|benefit increase shall not exceed four percent (4.0%). | | | 17| D. The funded ratio of the retirement system must be at least | | | 18|ninety percent (90%) after the benefit increase is provided to the | | | 19|eligible retirees or beneficiaries. If the grant of a retirement | | | 20|benefit increase based on the full amount of the increase in CPI-W | | | 21|for the applicable year would cause the retirement system funded | | | 22|ratio to be less than the figure prescribed by this section, the | | | 23|board of trustees shall provide a retirement benefit increase in | | | 24|such lesser amount as possible without causing a reduction of the | | | arsid14056004 HB2279 HFLR Page 15 ___________________________________________________________________________
1|funded ratio for the system to be less than the amount prescribed by | | | 2|this section. | | | 3| E. For the plan year ending June 30 or July 1, as applicable, | | | 4|immediately prior to the effective date of the retirement benefit | | | 5|increase otherwise authorized by this section, the rate of return | | | 6|for the retirement system assets must have been equal to or in | | | 7|excess of the actuarial assumption for the rate of return on system | | | 8|assets in effect at the beginning of such plan year. | | | 9| F. Only those persons who have been retired for at least one | | | 10|(1) year prior to the effective date of the retirement benefit | | | 11|increase shall be eligible for the benefit increase. | | | 12| G. If otherwise authorized pursuant to the provisions of this | | | 13|section, the retirement benefit increase shall be effective July 1 | | | 14|each year. | | | 15| SECTION 6. NEW LAW A new section of law to be codified | | | 16|in the Oklahoma Statutes as Section 17-116.23 of Title 70, unless | | | 17|there is created a duplication in numbering, reads as follows: | | | 18| A. As used in this section: | | | 19| 1. "Beneficiary" means either a retired member of the | | | 20|retirement system or the survivor or other designated beneficiary of | | | 21|a retired member of the system; | | | 22| 2. "CPI-W" means the measure of inflation published by the | | | 23|United States Bureau of Labor Statistics for Urban Wage Earners and | | | 24|Clerical Workers; | | | arsid14056004 HB2279 HFLR Page 16 ___________________________________________________________________________
1| 3. "Funded ratio" means the figure derived by dividing the | | | 2|actuarial value of retirement system assets by the actuarial accrued | | | 3|liability amount of the retirement system using the information | | | 4|reported to the retirement system by its actuary in the annual | | | 5|valuation and which is computed as of a day certain; and | | | 6| 4. "Retirement system" means the Teachers' Retirement System of | | | 7|Oklahoma. | | | 8| B. The board of trustees of the Teachers' Retirement System of | | | 9|Oklahoma shall grant a retirement benefit increase to the retired | | | 10|members of the system or their beneficiaries according to the | | | 11|requirements of this section. | | | 12| C. The benefit increase may only be implemented if the Consumer | | | 13|Price Index-Wage and Clerical Workers (CPI-W) for the calendar year | | | 14|preceding the year during which the benefit increase is to be | | | 15|granted reflects a positive rate of increase, but the retirement | | | 16|benefit increase shall not exceed four percent (4.0%). | | | 17| D. The funded ratio of the retirement system must be at least | | | 18|seventy-five percent (75%) after the benefit increase is provided to | | | 19|the eligible retirees or beneficiaries. If the grant of a | | | 20|retirement benefit increase based on the full amount of the increase | | | 21|in CPI-W for the applicable year would cause the retirement system | | | 22|funded ratio to be less than the figure prescribed by this section, | | | 23|the board of trustees shall provide a retirement benefit increase in | | | 24|such lesser amount as possible without causing a reduction of the | | | arsid14056004 HB2279 HFLR Page 17 ___________________________________________________________________________
1|funded ratio for the system to be less than the amount prescribed by | | | 2|this section. | | | 3| E. For the plan year ending June 30 or July 1, as applicable, | | | 4|immediately prior to the effective date of the retirement benefit | | | 5|increase otherwise authorized by this section, the rate of return | | | 6|for the retirement system assets must have been equal to or in | | | 7|excess of the actuarial assumption for the rate of return on system | | | 8|assets in effect at the beginning of such plan year. | | | 9| F. Only those persons who have been retired for at least one | | | 10|(1) year prior to the effective date of the retirement benefit | | | 11|increase shall be eligible for the benefit increase. | | | 12| G. If otherwise authorized pursuant to the provisions of this | | | 13|section, the retirement benefit increase shall be effective July 1 | | | 14|each year. | | | 15| SECTION 7. NEW LAW A new section of law to be codified | | | 16|in the Oklahoma Statutes as Section 930.12 of Title 74, unless there | | | 17|is created a duplication in numbering, reads as follows: | | | 18| A. As used in this section: | | | 19| 1. "Beneficiary" means either a retired member of the | | | 20|retirement system or the survivor or other designated beneficiary of | | | 21|a retired member of the system; | | | 22| 2. "CPI-W" means the measure of inflation published by the | | | 23|United States Bureau of Labor Statistics for Urban Wage Earners and | | | 24|Clerical Workers; | | | arsid14056004 HB2279 HFLR Page 18 ___________________________________________________________________________
1| 3. "Funded ratio" means the figure derived by dividing the | | | 2|actuarial value of retirement system assets by the actuarial accrued | | | 3|liability amount of the retirement system using the information | | | 4|reported to the retirement system by its actuary in the annual | | | 5|valuation and which is computed as of a day certain; and | | | 6| 4. "Retirement system" means the Oklahoma Public Employees | | | 7|Retirement System. | | | 8| B. The board of trustees of the Oklahoma Public Employees | | | 9|Retirement System shall grant a retirement benefit increase to the | | | 10|retired members of the system or their beneficiaries according to | | | 11|the requirements of this section. | | | 12| C. The benefit increase may only be implemented if the Consumer | | | 13|Price Index-Wage and Clerical Workers (CPI-W) for the calendar year | | | 14|preceding the year during which the benefit increase is to be | | | 15|granted reflects a positive rate of increase, but the retirement | | | 16|benefit increase shall not exceed four percent (4.0%). | | | 17| D. The funded ratio of the retirement system must be at least | | | 18|ninety percent (90%) after the benefit increase is provided to the | | | 19|eligible retirees or beneficiaries. If the grant of a retirement | | | 20|benefit increase based on the full amount of the increase in CPI-W | | | 21|for the applicable year would cause the retirement system funded | | | 22|ratio to be less than the figure prescribed by this section, the | | | 23|board of trustees shall provide a retirement benefit increase in | | | 24|such lesser amount as possible without causing a reduction of the | | | arsid14056004 HB2279 HFLR Page 19 ___________________________________________________________________________
1|funded ratio for the system to be less than the amount prescribed by | | | 2|this section. | | | 3| E. For the plan year ending June 30 or July 1, as applicable, | | | 4|immediately prior to the effective date of the retirement benefit | | | 5|increase otherwise authorized by this section, the rate of return | | | 6|for the retirement system assets must have been equal to or in | | | 7|excess of the actuarial assumption for the rate of return on system | | | 8|assets in effect at the beginning of such plan year. | | | 9| F. Only those persons who have been retired for at least one | | | 10|(1) year prior to the effective date of the retirement benefit | | | 11|increase shall be eligible for the benefit increase. | | | 12| G. If otherwise authorized pursuant to the provisions of this | | | 13|section, the retirement benefit increase shall be effective July 1 | | | 14|each year. | | | 15| SECTION 8. Section 1 of this act shall become effective October | | | 16|1, 2023. | | | 17| SECTION 9. Sections 2 through 7 of this act shall become | | | 18|effective November 1, 2023. | | | 19| | | | 20|COMMITTEE REPORT BY: COMMITTEE ON RULES, dated 03/01/2023 - DO PASS, | |As Amended and Coauthored. | 21| | | | 22| | | | 23| | | | 24| | | | arsid14056004 HB2279 HFLR Page 20