1| STATE OF OKLAHOMA |
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2| 1st Session of the 59th Legislature (2023) |
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3|SENATE BILL 630 By: Montgomery |
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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 state retirement systems; amending |
| 11 O.S. 2021, Sections 49-106, 49-106.1, as amended |
8| by Section 5, Chapter 232, O.S.L. 2022, 49-106.5, |
| 49-109, 50-114, as amended by Section 1, Chapter 228, |
9| O.S.L. 2022, 50-114.4, and 50-115, as amended by |
| Section 3, Chapter 306, O.S.L. 2022, (11 O.S. Supp. |
10| 2022, Section 49-106.1, 50-114, and 50-115), which |
| relate to the Oklahoma Firefighters Pension and |
11| Retirement System and the Oklahoma Police Pension and |
| Retirement System; updating statutory compliance with |
12| federal regulations; conforming language; amending 47 |
| O.S. 2021, Sections 2-300, 2-305, as amended by |
13| Section 2, Chapter 255, O.S.L. 2022, and 2-305.1C (47 |
| O.S. Supp. 2022, Section 2-305), which relate to the |
14| Oklahoma Law Enforcement Retirement System; updating |
| statutory compliance with federal regulations; |
15| conforming language; and declaring an emergency. |
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16| |
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17| |
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18|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: |
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19| SECTION 1. AMENDATORY 11 O.S. 2021, Section 49-106, is |
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20|amended to read as follows: |
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21| Section 49-106. A. Any firefighter who reaches the |
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22|firefighter's normal retirement date shall be entitled, upon written |
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23|request, to retire from such service and be paid from the System a |
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24|monthly pension equal to the member's accrued retirement benefit; |
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1|provided, that the pension shall cease during any period of time the |
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2|member may thereafter serve for compensation in any municipal fire |
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3|department in the state. If such a member is reemployed by a |
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4|participating municipality in a position which is not covered by the |
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5|System, retirement shall also include receipt by such member of |
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6|in-service distributions from the System. |
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7| B. With respect to distributions under the System made for |
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8|calendar years beginning on or after January 1, 2005, the System |
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9|shall apply the minimum distribution incidental benefit |
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10|requirements, incidental benefit requirements, and minimum |
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11|distribution requirements of Section 401(a)(9) of the Internal |
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12|Revenue Code of 1986, as amended, in accordance with the final |
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13|regulations under Section 401(a)(9) of the Internal Revenue Code of |
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14|1986, as amended, including Treasury Regulations Sections |
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15|1.401(a)(9)-1 through 1.401(a)(9)-9; provided, however, that for |
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16|distributions required to be made after December 31, 2019, for |
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17|individuals who attain seventy and one-half (70 1/2) years of age |
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18|after December 31, 2019, but before January 1, 2023, such |
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19|distributions shall take into account that age 70 1/2 was stricken |
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20|and age 72 was inserted in Section 401(a)(9)(B)(iv)(I), Section |
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21|401(a)(9)(C)(i)(I) and Section 401(a)(9)(C)(ii)(I) of the Internal |
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22|Revenue Code of 1986, as amended, and, provided further, that for |
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23|individuals who attain seventy-two (72) years of age after December |
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24|31, 2022, such distributions shall take into account that "age 72" |
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1|was stricken and "the applicable age", as defined in Section |
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2|401(a)(9)(v) of the Internal Revenue Code of 1986, as amended, was |
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3|inserted in Section 401(a)(9)(B)(iv)(I), Section 401(a)(9)(C)(i)(I) |
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4|and Section 401(a)(9)(C)(ii)(I) of the Internal Revenue Code of |
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5|1986, as amended, in all cases notwithstanding any provision of the |
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6|System to the contrary. With respect to distributions under the |
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7|System made for calendar years beginning on or after January 1, |
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8|2001, through December 31, 2004, the System shall apply the minimum |
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9|distribution requirements and incidental benefit requirements of |
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10|Section 401(a)(9) of the Internal Revenue Code of 1986, as amended, |
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11|in accordance with the regulations under Section 401(a)(9) of the |
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12|Internal Revenue Code of 1986, as amended, which were proposed in |
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13|January 2001, notwithstanding any provision of the System to the |
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14|contrary. Effective July 1, 1989, notwithstanding any other |
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15|provision contained herein to the contrary, in no event shall |
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16|commencement of distribution of the accrued retirement benefit of a |
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17|member be delayed beyond April 1 of the calendar year following the |
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18|later of: |
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19| 1. The calendar year in which the member reaches seventy and |
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20|one-half (70 1/2) years of age for a member who attains age seventy |
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21|and one-half (70 1/2) before January 1, 2020, or effective for |
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22|distributions required to be made after December 31, 2019, but |
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23|before January 1, 2023, the calendar year in which the member |
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24|reaches seventy-two (72) years of age for an individual who attains |
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1|age seventy and one-half (70 1/2) after December 31, 2019, or |
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2|effective for distributions required to be made after December 31, |
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3|2022, the calendar year in which the member reaches seventy-three |
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4|(73) years of age for an individual who attains age seventy-two (72) |
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5|after December 31, 2022, or "the applicable age", as defined in |
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6|Section 401(a)(9)(v) of the Internal Revenue Code of 1986, as |
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7|amended, if later; or |
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8| 2. The actual retirement date of the member. |
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9| Effective September 8, 2009, notwithstanding anything to the |
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10|contrary of the System, the System, which is a governmental plan |
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11|(within the meaning of Section 414(d) of the Internal Revenue Code |
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12|of 1986, as amended) is treated as having complied with Section |
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13|401(a)(9) of the Internal Revenue Code of 1986, as amended, for all |
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14|years to which Section 401(a)(9) of the Internal Revenue Code of |
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15|1986, as amended, applies to the System if the System complies with |
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16|a reasonable and good-faith interpretation of Section 401(a)(9) of |
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17|the Internal Revenue Code of 1986, as amended. |
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18| C. Any member or beneficiary eligible to receive a monthly |
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19|benefit from the System may make an election to waive all or a |
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20|portion of monthly benefits. |
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21| D. If the requirements of Section 49-106.5 of this title are |
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22|satisfied, a member who, by reason of attainment of normal |
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23|retirement date or age, is separated from service as a public safety |
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24|officer with the member's participating municipality, may elect to |
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1|have payment made directly to the provider for qualified health |
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2|insurance premiums by deduction from his or her monthly pension |
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3|payment, after December 31, 2006, in accordance with Section 402(1) |
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4|of the Internal Revenue Code of 1986, as amended. For distributions |
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5|made after December 29, 2022, the election provided for under |
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6|Section 402(l) of the Internal Revenue Code of 1986, as amended, may |
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7|be made whether payment of the premiums is made directly to the |
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8|provider of the accident or health plan or qualified long-term care |
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9|insurance contract by deduction from a distribution from the System |
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10|or is made to the member. |
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11| SECTION 2. AMENDATORY 11 O.S. 2021, Section 49-106.1, as |
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12|amended by Section 5, Chapter 232, O.S.L. 2022 (11 O.S. Supp. 2022, |
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13|Section 49-106.1), is amended to read as follows: |
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14| Section 49-106.1. A. In lieu of terminating employment and |
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15|accepting a service retirement pension pursuant to Sections 49-101 |
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16|and 49-106 of this title, any member of the Oklahoma Firefighters |
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17|Pension and Retirement System serving as an active firefighter in a |
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18|fire department of a participating municipality who has not less |
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19|than twenty (20) years of creditable service may elect to |
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20|participate in the Oklahoma Firefighters Deferred Option Plan and |
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21|defer the receipts of benefits in accordance with the provisions of |
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22|this section. |
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23| B. For purposes of this section, creditable service shall |
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24|include service credit reciprocally recognized pursuant to Sections |
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1|49-100.1 through 49-100.8 and Sections 49-101, 49-101.1 and 49-101.2 |
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2|of this title but for eligibility purposes only. |
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3| C. The duration of participation in the Oklahoma Firefighters |
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4|Deferred Option Plan for active firefighters shall not exceed five |
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5|(5) years. Participation in the Oklahoma Firefighters Deferred |
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6|Option Plan must begin the first day of a month and end on the last |
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7|day of a month. At the conclusion of a member's participation in |
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8|the Oklahoma Firefighters Deferred Option Plan, the member shall |
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9|terminate employment with all participating municipalities as a |
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10|firefighter, and shall start receiving the member's accrued monthly |
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11|retirement benefit from the System. Such a member may be reemployed |
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12|by a participating municipality but only in a position not covered |
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13|under the System, and receive in-service distributions of such |
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14|member's accrued monthly retirement benefit from the System. |
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15| D. When a member begins participation in the Oklahoma |
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16|Firefighters Deferred Option Plan, the contribution of the member |
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17|shall cease. The employer contributions shall continue to be paid |
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18|in accordance with subsection B of Section 49-122 of this title. |
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19|Employer contributions for members who elect the Oklahoma |
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20|Firefighters Deferred Option Plan shall be credited equally to the |
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21|Oklahoma Firefighters Pension and Retirement System and to the |
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22|member's Oklahoma Firefighters Deferred Option Plan account. The |
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23|monthly retirement benefits that would have been payable had the |
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24|member elected to cease employment and receive a service retirement |
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1|shall be paid into the member's Oklahoma Firefighters Deferred |
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2|Option Plan account. |
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3| E. 1. A member who participates in this plan shall be eligible |
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4|to receive cost-of-living increases. |
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5| 2. A member who participates in this plan shall earn interest |
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6|at a rate of two percentage points below the rate of return of the |
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7|investment portfolio of the System, but no less than the actuarial |
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8|assumed interest rate as certified by the actuary in the yearly |
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9|evaluation report of the actuary. The interest shall be credited to |
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10|the individual account balance of the member on an annual basis. |
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11| 3. Effective November 1, 2013, the Oklahoma Firefighters |
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12|Deferred Option Plan account for a member whose first service with a |
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13|participating municipality of the System occurs on or after November |
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14|1, 2013, and who participates for the first time in the Oklahoma |
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15|Firefighters Deferred Option Plan on or after November 1, 2013, and |
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16|has completed active participation in the Oklahoma Firefighters |
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17|Deferred Option Plan, shall earn interest at a rate equal to the |
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18|actual rate of return of the investment portfolio of the System, |
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19|less one (1) percentage point to offset administrative costs of the |
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20|System as determined by the System. |
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21| F. A member in the plan shall receive, at the option of the |
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22|member, a lump-sum payment from the account equal to the payments to |
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23|the account or an annuity based upon the account of the member or |
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24|may elect any other method of payment if approved by the Board of |
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1|Trustees. If a member becomes so physically or mentally disabled |
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2|while in, or in consequence of, the performance of his or her duty |
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3|as to prevent the effective performance of his or her duties that |
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4|the State Board approves an in-line-of-duty disability pension, the |
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5|payment from the account shall be an in-line-of-duty disability |
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6|payment. Notwithstanding any other provision contained herein to |
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7|the contrary, commencement of distributions under the Oklahoma |
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8|Firefighters Deferred Option Plan shall be no later than the time as |
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9|set forth in subsection B of Section 49-106 of this title and a |
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10|member whose first service with a participating municipality of the |
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11|System occurs on or after November 1, 2013, and who participates for |
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12|the first time in the Oklahoma Firefighters Deferred Option Plan on |
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13|or after November 1, 2013, must receive a distribution of the entire |
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14|remaining balance in the member's Oklahoma Firefighters Deferred |
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15|Option Plan account no later than April 1 of the calendar year |
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16|following the later of: |
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17| 1. The calendar year in which the member reaches seventy and |
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18|one-half (70 1/2) years of age for a member who attains age seventy |
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19|and one-half (70 1/2) before January 1, 2020, or effective for |
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20|distributions required to be made after December 31, 2019, but |
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21|before January 1, 2023, the calendar year in which the member |
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22|reaches seventy-two (72) years of age for an individual who attains |
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23|age seventy and one-half (70 1/2) after December 31, 2019; or |
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24| |
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1| 2. The actual retirement date of the member, or effective for |
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2|distributions required to be made after December 31, 2022, the |
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3|calendar year in which the member reaches seventy-three (73) years |
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4|of age for an individual who attains age seventy-two (72) after |
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5|December 31, 2022, or "the applicable age", as defined in Section |
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6|401(a)(9)(v) of the Internal Revenue Code of 1986, as amended, if |
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7|later. |
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8| G. If a member dies while maintaining an account balance in the |
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9|plan the System shall pay to the designated recipient or recipients |
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10|of the member, or if there is no designated recipient or if the |
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11|designated recipient predeceases the member, to the spouse of the |
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12|member, or if there is no spouse or if the spouse predeceases the |
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13|member, to the estate of the member a lump-sum payment equal to the |
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14|account balance of the member. If such member was receiving, or |
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15|eligible to receive, an in-line-of-duty disability pension at the |
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16|time of his or her death, payment of the account balance shall be an |
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17|in-line-of-duty disability payment. If a designated recipient is |
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18|the surviving spouse of the member, the surviving spouse shall |
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19|receive his or her portion of the account balance of the member |
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20|pursuant to subsection F of this section. The surviving spouse, |
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21|whether or not he or she is a designated recipient of the member, |
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22|may elect to receive his or her portion of the account balance of |
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23|the member in the same manner as was applicable to the member. |
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24| |
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1| H. In lieu of participating in the Oklahoma Firefighters |
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2|Deferred Option Plan pursuant to subsections A, B, C, D, E and F of |
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3|this section, a member may elect to participate in the Oklahoma |
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4|Firefighters Deferred Option Plan pursuant to this subsection as |
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5|follows: |
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6| 1. For purposes of this subsection and subsection I of this |
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7|section, the following definitions shall apply: |
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8| a. "back drop date" means the member's normal retirement |
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9| date or the date five (5) years before the member |
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10| elects to participate in the Oklahoma Firefighters |
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11| Deferred Option Plan, whichever date is later, |
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12| b. "termination date" means the date the member elects to |
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13| participate in the Oklahoma Firefighters Deferred |
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14| Option Plan pursuant to this subsection, and the date |
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15| the member terminates employment with all |
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16| participating municipalities as an active firefighter, |
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17| c. "earlier attained credited service" means the credited |
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18| service earned by a member as of the back drop date, |
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19| and |
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20| d. "deferred benefit balance" means all monthly |
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21| retirement benefits that would have been payable had |
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22| the member elected to cease employment on the back |
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23| drop date and receive a service retirement from the |
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24| back drop date to the termination date, all the |
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1| member's contributions and one-half (1/2) of the |
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2| employer contributions from the back drop date to the |
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3| termination date, with interest based on how the |
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4| benefit would have accumulated on a compound annual |
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5| basis as if the member had participated in the |
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6| Oklahoma Firefighters Deferred Option Plan pursuant to |
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7| subsections A, B, C, D, E and F of this section from |
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8| the back drop date to the termination date; and |
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9| 2. At the termination date, the monthly pension benefit shall |
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10|be determined based on earlier attained credited service and on the |
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11|final average salary as of the back drop date. The member's |
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12|individual deferred option account shall be credited with an amount |
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13|equal to the deferred benefit balance, the member shall terminate |
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14|employment with all participating municipalities as a firefighter, |
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15|and shall start receiving the member's accrued monthly retirement |
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16|benefit from the System. Such a member may be reemployed by a |
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17|participating municipality but only in a position not covered under |
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18|the System, and receive in-service distributions of such member's |
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19|accrued monthly retirement benefit from the System. The provisions |
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20|of subsections B, C, E, F and G of this section shall apply to this |
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21|subsection. A member shall not participate in the Oklahoma |
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22|Firefighters Deferred Option Plan pursuant to this subsection if the |
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23|member has elected to participate in the Oklahoma Firefighters |
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24| |
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1|Deferred Option Plan pursuant to subsections A, B, C, D, E and F of |
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2|this section. |
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3| I. Certain surviving spouses and members shall be eligible to |
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4|participate in the Oklahoma Firefighters Deferred Option Plan |
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5|pursuant to subsection H of this section and this subsection. |
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6| 1. For purposes of this subsection, the following definitions |
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7|shall apply: |
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8| a. "back drop election date" means the date the surviving |
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9| spouse or member elects to commence participation in |
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10| the Oklahoma Firefighters Deferred Option Plan |
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11| pursuant to subsection H of this section and this |
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12| subsection, |
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13| b. "interest" means the actuarial assumed interest rate |
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14| as certified by the actuary in the yearly evaluation |
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15| report of the actuary, |
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16| c. "monthly adjustment amount" means the difference |
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17| between the monthly pension prior to the back drop |
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18| election and the adjusted monthly pension due to the |
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19| back drop election, |
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20| d. "back drop pension adjustment amount" means the sum of |
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21| all the monthly adjustment amounts adjusted for |
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22| interest from the pension commencement date to the |
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23| back drop election date, and |
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24| |
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1| e. "deferred benefit balance adjustment amount" means the |
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2| interest on the deferred benefit balance from the |
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3| pension commencement date to the back drop election |
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4| date. |
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5| 2. If a member who has more than twenty (20) years of |
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6|creditable service and is eligible to receive a service retirement |
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7|pension dies on or after June 4, 2007, and prior to terminating |
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8|employment, the member's surviving spouse shall be eligible to elect |
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9|to receive a benefit determined as if the member had elected to |
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10|participate in the Oklahoma Firefighters Deferred Option Plan in |
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11|accordance with subsection H of this section on the day immediately |
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12|preceding such member's death. Prior to July 1, 2010, the surviving |
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13|spouse must make any such election within one (1) year from the date |
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14|of the member's death. Effective July 1, 2010, the surviving spouse |
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15|must make any such election within ninety (90) days from the date of |
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16|the member's death. If on or after June 4, 2007, such election is |
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17|made, the monthly pension such surviving spouse is entitled to |
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18|receive shall be adjusted in accordance with the provisions of |
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19|subsection H of this section to account for the member's |
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20|participation in the Oklahoma Firefighters Deferred Option Plan. |
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21|The surviving spouse may only make this election if the member has |
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22|not previously elected to participate in the Oklahoma Firefighters |
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23|Deferred Option Plan. For purposes of this election, the surviving |
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24|spouse must have been married to the firefighter for the thirty (30) |
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1|continuous months preceding the firefighter's death; provided, the |
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2|surviving spouse of a member who died while in, or as a consequence |
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3|of, the performance of the member's duty for a participating |
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4|municipality shall not be subject to the marriage limitation for |
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5|this election. |
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6| 3. If a member has more than twenty (20) years of creditable |
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7|service and is eligible for a retirement for disability monthly |
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8|pension pursuant to Section 49-109 of this title on or after June 4, |
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9|2007, such member shall be eligible to elect to receive a benefit |
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10|determined as if the member had elected to participate in the |
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11|Oklahoma Firefighters Deferred Option Plan, in accordance with |
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12|subsection H of this section, on the day immediately preceding the |
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13|date of the member's disability retirement, provided such election |
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14|is made within two (2) years from the date of the member's |
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15|disability retirement. The disability monthly pension such member |
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16|is receiving, or entitled to receive, shall be adjusted in |
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17|accordance with the provisions of subsection H of this section to |
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18|account for the member's participation in the Oklahoma Firefighters |
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19|Deferred Option Plan. The deferred benefit balance such member is |
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20|entitled to receive shall be reduced by the back drop pension |
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21|adjustment amount and increased by the deferred benefit balance |
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22|adjustment amount. The member may only make a back drop election if |
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23|the deferred benefit balance after the adjustment described in this |
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24|paragraph is greater than Zero Dollars ($0.00). The member may only |
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Req. No. 384 Page 14
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1|make this election if the member has not previously elected to |
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2|participate in the Oklahoma Firefighters Deferred Option Plan. |
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3| 4. If a member has more than twenty (20) years of creditable |
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4|service and filed a grievance for wrongful termination occurring on |
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5|or after June 4, 2007, or is not a member of a collective bargaining |
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6|organization as a firefighter, is involuntarily terminated and is |
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7|seeking to have his or her position as a firefighter reinstated |
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8|through a legal process, but is not reinstated as an active member, |
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9|such member shall be eligible to elect to receive a benefit |
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10|determined as if the member had elected to participate in the |
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11|Oklahoma Firefighters Deferred Option Plan in accordance with |
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12|subsection H of this section on the day immediately preceding the |
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13|date of the member's termination. Such election must be made within |
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14|two (2) years from the date of the member's termination as an active |
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15|member and, if the member's case pertaining to the member's |
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16|termination is on appeal to a court of competent jurisdiction, |
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17|within such period set by the State Board in its sole discretion. |
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18|The monthly pension such member is receiving, or entitled to |
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19|receive, shall be adjusted in accordance with the provisions of |
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20|subsection H of this section to account for the member's |
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21|participation in the Oklahoma Firefighters Deferred Option Plan. |
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22|The deferred benefit balance such member is entitled to receive |
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23|shall be reduced by the back drop pension adjustment amount and |
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24|increased by the deferred benefit balance adjustment amount. The |
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1|member may only make a back drop election if the deferred benefit |
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2|balance after the adjustment described in this paragraph is greater |
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3|than Zero Dollars ($0.00). The member may only make this election |
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4|if the member has not previously elected to participate in the |
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5|Oklahoma Firefighters Deferred Option Plan. |
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6| 5. Subparagraphs d and e of paragraph 1 and paragraphs 3 and 4 |
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7|of this subsection are effective June 4, 2007, provided the Internal |
| |
8|Revenue Service issues a favorable determination letter for the |
| |
9|System which includes the provisions of such subparagraphs and |
| |
10|paragraphs without modification or as modified to conform to any |
| |
11|changes required by the Internal Revenue Service as part of its |
| |
12|determination letter review process. In the event the Internal |
| |
13|Revenue Service does not issue such a determination letter which |
| |
14|includes the provisions of such subparagraphs or paragraphs without |
| |
15|modification or as modified to conform to any changes required by |
| |
16|the Internal Revenue Service as part of its determination letter |
| |
17|review process, then subparagraphs d and e of paragraph 1 and |
| |
18|paragraphs 3 and 4 of this subsection shall be repealed effective |
| |
19|June 4, 2007. |
| |
20| SECTION 3. AMENDATORY 11 O.S. 2021, Section 49-106.5, is |
| |
21|amended to read as follows: |
| |
22| Section 49-106.5. A. A member who is an eligible retired |
| |
23|public safety officer and who wishes to have direct payments made |
| |
24|toward the member's qualified health insurance premiums from the |
| |
Req. No. 384 Page 16
___________________________________________________________________________
1|member's monthly disability benefit or monthly pension payment must |
| |
2|make a written election in accordance with Section 402(1) of the |
| |
3|Internal Revenue Code of 1986, as amended, on the form provided by |
| |
4|the Oklahoma Firefighters Pension and Retirement System, as follows: |
| |
5| 1. The election must be made after the member separates from |
| |
6|service as a public safety officer with the member's participating |
| |
7|municipality; |
| |
8| 2. The election shall only apply to distributions from the |
| |
9|System after December 31, 2006, and to amounts not yet distributed |
| |
10|to the eligible retired public safety officer; |
| |
11| 3. Direct payments Payments from the system for an eligible |
| |
12|retired public safety officer's qualified health insurance premiums |
| |
13|made directly to the provider of such coverage can only be made from |
| |
14|the member's monthly disability benefit or monthly pension payment |
| |
15|from the System and cannot be made from the Deferred Option Plan; |
| |
16|and |
| |
17| 4. The aggregate amount of the exclusion from an eligible |
| |
18|retired public safety officer's gross income is Three Thousand |
| |
19|Dollars ($3,000.00) per calendar year. |
| |
20| B. As used in this section: |
| |
21| 1. "Public safety officer" means a member serving a public |
| |
22|agency in an official capacity, with or without compensation, as a |
| |
23|law enforcement officer, firefighter, chaplain, or as a member of a |
| |
24|rescue squad or ambulance crew; |
| |
Req. No. 384 Page 17
___________________________________________________________________________
1| 2. "Eligible retired public safety officer" means a member who, |
| |
2|by reason of disability or attainment of normal retirement date or |
| |
3|age, is separated from service as a public safety officer with the |
| |
4|member's participating municipality; and |
| |
5| 3. "Qualified health insurance premiums" are premiums for |
| |
6|coverage for the eligible retired public safety officer, the |
| |
7|eligible retired public safety officer's spouse, and dependents, as |
| |
8|defined in Section 152 of the Internal Revenue Code of 1986, as |
| |
9|amended, by an accident or health plan or a qualified long-term care |
| |
10|insurance contract, as defined in Section 7702B(b) of the Internal |
| |
11|Revenue Code of 1986, as amended. The health plan does not have to |
| |
12|be sponsored by the eligible retired public safety officer's former |
| |
13|participating municipality. |
| |
14| C. The Oklahoma Firefighters Pension and Retirement Board shall |
| |
15|may promulgate such rules or procedures as are necessary to |
| |
16|implement the provisions of this section or to facilitate a member's |
| |
17|election under Section 402(l) of the Internal Revenue Code of 1986, |
| |
18|as amended. |
| |
19| SECTION 4. AMENDATORY 11 O.S. 2021, Section 49-109, is |
| |
20|amended to read as follows: |
| |
21| Section 49-109. A. Whenever any firefighter serving in any |
| |
22|capacity in a regularly constituted fire department of a |
| |
23|municipality shall become so physically or mentally disabled while |
| |
24|in, or in consequence of, the performance of the firefighter's duty |
| |
Req. No. 384 Page 18
___________________________________________________________________________
1|as to prevent the effective performance of the firefighter's duties, |
| |
2|the State Board may, upon the firefighter's written request, or |
| |
3|without such request if the State Board deems it for the good of the |
| |
4|department, retire the firefighter from active service, and if so |
| |
5|retired, shall direct that the firefighter be paid from the System a |
| |
6|monthly pension equal to the greater of: |
| |
7| 1. Fifty percent (50%) of the average monthly salary which was |
| |
8|paid to the firefighter during the last thirty (30) months of the |
| |
9|firefighter's service; or |
| |
10| 2. Two and one-half percent (2 1/2%) of the firefighter's final |
| |
11|average salary multiplied by the member's years of credited service, |
| |
12|not to exceed thirty (30) years, provided such firefighter has |
| |
13|completed twenty (20) or more years of credited service. |
| |
14| B. If the disability ceases within two (2) years from the date |
| |
15|of the firefighter's disability retirement and before the |
| |
16|firefighter's normal retirement date, the formerly disabled person |
| |
17|shall be restored to active service at the salary attached to the |
| |
18|rank the firefighter held at the time of the firefighter's |
| |
19|disability retirement provided the firefighter is capable of |
| |
20|performing the duties of a firefighter. Whenever such disability |
| |
21|shall cease, such disability pension provided pursuant to paragraph |
| |
22|1 of subsection A of this section shall cease. If a firefighter |
| |
23|participates in the Oklahoma Firefighters Deferred Option Plan |
| |
24|pursuant to Section 49-106.1 of this title, the firefighter's |
| |
Req. No. 384 Page 19
___________________________________________________________________________
1|disability pension provided pursuant to this subsection shall be |
| |
2|reduced to account for the firefighter's participation in the |
| |
3|Oklahoma Firefighters Deferred Option Plan. |
| |
4| C. Whenever any firefighter, who has served in any capacity in |
| |
5|a regularly constituted fire department of a municipality of the |
| |
6|state, and who has served less than the firefighter's normal |
| |
7|retirement date, shall become so physically or mentally disabled |
| |
8|from causes not arising in the line of duty as to prevent the |
| |
9|effective performance of the firefighter's duties, the firefighter |
| |
10|shall be entitled to a pension during the continuance of said |
| |
11|disability based upon the firefighter's service period which shall |
| |
12|be fifty percent (50%) of the average monthly salary which was paid |
| |
13|to the firefighter during the last sixty (60) months of the |
| |
14|firefighter's service. |
| |
15| D. No firefighter shall accrue additional service time while |
| |
16|receiving a disability pension; provided further, that nothing |
| |
17|herein contained shall affect the eligibility of any firefighter to |
| |
18|apply for and receive a retirement pension after the firefighter's |
| |
19|normal retirement date; provided further, that no firefighter shall |
| |
20|receive retirement benefits from the System during the time the |
| |
21|firefighter is receiving disability benefits from the System. Any |
| |
22|member or beneficiary eligible to receive a monthly benefit pursuant |
| |
23|to this section may make an election to waive all or a portion of |
| |
24|monthly benefits. |
| |
Req. No. 384 Page 20
___________________________________________________________________________
1| E. If the requirements of Section 4 of this act are satisfied, |
| |
2|a member who, by reason of disability, is separated from service as |
| |
3|a public safety officer with the member's participating |
| |
4|municipality, may elect to have payment made directly to the |
| |
5|provider for qualified health insurance premiums by deduction from |
| |
6|his or her monthly disability benefit, after December 31, 2006, in |
| |
7|accordance with Section 402(1) of the Internal Revenue Code of 1986, |
| |
8|as amended. For distributions made after December 29, 2022, the |
| |
9|election provided for under Section 402(l) of the Internal Revenue |
| |
10|Code of 1986, as amended, may be made whether payment of the |
| |
11|premiums is made directly to the provider of the accident or health |
| |
12|plan or qualified long-term care insurance contract by deduction |
| |
13|from a distribution from the System or is made to the member. |
| |
14| SECTION 5. AMENDATORY 11 O.S. 2021, Section 50-114, as |
| |
15|amended by Section 1, Chapter 228, O.S.L. 2022 (11 O.S. Supp. 2022, |
| |
16|Section 50-114), is amended to read as follows: |
| |
17| Section 50-114. A. The State Board is hereby authorized to pay |
| |
18|out of funds in the System a monthly service pension to any member |
| |
19|eligible as hereinafter provided, not exceeding in any event the |
| |
20|amount of money in such funds and not exceeding in any event the |
| |
21|accrued retirement benefit for such member, except as provided for |
| |
22|herein. In order for a member to be eligible for such service |
| |
23|pension the following requirements must be complied with: |
| |
24| |
| |
Req. No. 384 Page 21
___________________________________________________________________________
1| 1. The member's service with the police department for any |
| |
2|participating municipality must have ceased; however, a member may |
| |
3|be subsequently reemployed in the position of police chief pursuant |
| |
4|to subsection C of Section 50-112 of this title; |
| |
5| 2. The member must have reached the member's normal retirement |
| |
6|date; and |
| |
7| 3. The member must have complied with any agreement as to |
| |
8|contributions by the member and other members to any funds of the |
| |
9|System where said agreement has been made as provided by this |
| |
10|article; provided, that should a retired member receive disability |
| |
11|benefits as provided in this and other sections of this article, the |
| |
12|time the retired member is receiving said disability benefits shall |
| |
13|count as time on active service if the retired member should be |
| |
14|recalled by the Chief of Police from said disability retirement. It |
| |
15|shall be necessary before said time shall be counted toward |
| |
16|retirement that the retired member make the same contribution as the |
| |
17|member would have otherwise made if on active service for the time |
| |
18|the retired member was disabled. |
| |
19| B. Any member complying with all requirements of this article, |
| |
20|who reaches normal retirement date, upon application, shall be |
| |
21|retired at the accrued retirement benefit. When a member has served |
| |
22|for the necessary number of years and is otherwise eligible, as |
| |
23|provided in this article, if such member is discharged without cause |
| |
24| |
| |
Req. No. 384 Page 22
___________________________________________________________________________
1|by the participating municipality, the member shall be eligible for |
| |
2|a pension. |
| |
3| C. Effective July 1, 1989, in no event shall commencement of |
| |
4|distribution of the accrued retirement benefit of a member be |
| |
5|delayed beyond April 1 of the calendar year following the later of: |
| |
6| 1. The calendar year in which the member reaches seventy and |
| |
7|one-half (70 1/2) years of age for a member who attains age seventy |
| |
8|and one-half (70 1/2) before January 1, 2020, or effective for |
| |
9|distributions required to be made after December 31, 2019, but |
| |
10|before January 1, 2023, the calendar year in which the member |
| |
11|reaches seventy-two (72) years of age for an individual who attains |
| |
12|age seventy and one-half (70 1/2) after December 31, 2019, or |
| |
13|effective for distributions required to be made after December 31, |
| |
14|2022, the calendar year in which the member reaches seventy-three |
| |
15|(73) years of age for an individual who attains age seventy-two (72) |
| |
16|after December 31, 2022, or "the applicable age" as defined in |
| |
17|Section 401(a)(9)(v) of the Internal Revenue Code of 1986, as |
| |
18|amended, if later; or |
| |
19| 2. The actual retirement date of the member. |
| |
20| For distributions made for calendar years beginning on or after |
| |
21|January 1, 2001, through December 31, 2004, the System shall apply |
| |
22|the minimum distribution requirements and incidental benefit |
| |
23|requirements of Section 401(a)(9) of the Internal Revenue Code of |
| |
24|1986, as amended, in accordance with the regulations under Section |
| |
Req. No. 384 Page 23
___________________________________________________________________________
1|401(a)(9) of the Internal Revenue Code of 1986, as amended, which |
| |
2|were proposed on January 17, 2001, notwithstanding any provision of |
| |
3|the System to the contrary. For distributions made for calendar |
| |
4|years beginning on or after January 1, 2005, the System shall apply |
| |
5|the minimum distribution incidental benefit requirements, incidental |
| |
6|benefit requirements, and minimum distribution requirements of |
| |
7|Section 401(a)(9) of the Internal Revenue Code of 1986, as amended, |
| |
8|in accordance with the final regulations under Section 401(a)(9) of |
| |
9|the Internal Revenue Code of 1986, as amended, including Treasury |
| |
10|Regulations Sections 1.401(a)(9)-1 through 1.401(a)(9)-9; provided, |
| |
11|however, that for distributions required to be made after December |
| |
12|31, 2019, for individuals who attain seventy and one-half (70 1/2) |
| |
13|years of age after December 31, 2019, but before January 1, 2023, |
| |
14|such distributions shall take into account that age 70 1/2 was |
| |
15|stricken and age 72 was inserted in Section 401(a)(9)(B)(iv)(I), |
| |
16|Section 401(a)(9)(C)(i)(I) and Section 401(a)(9)(C)(ii)(I) of the |
| |
17|Internal Revenue Code of 1986, as amended, and, provided further, |
| |
18|that for individuals who attain seventy-two (72) years of age after |
| |
19|December 31, 2022, such distributions shall take into account that |
| |
20|"age 72" was stricken and "the applicable age", as defined in |
| |
21|Section 401(a)(9)(v) of the Internal Revenue Code of 1986, as |
| |
22|amended, was inserted in Section 401(a)(9)(B)(iv)(I), Section |
| |
23|401(a)(9)(C)(i)(I) and Section 401(a)(9)(C)(ii)(I) of the Internal |
| |
24|Revenue Code of 1986, as amended, in all cases notwithstanding any |
| |
Req. No. 384 Page 24
___________________________________________________________________________
1|provision of the System to the contrary. Effective January 1, 2009, |
| |
2|with respect to the Oklahoma Police Deferred Option Plan, to the |
| |
3|extent applicable, no minimum distribution is required for 2009 in |
| |
4|accordance with Section 401(a)(9)(H) of the Internal Revenue Code of |
| |
5|1986, as amended. |
| |
6| Effective September 8, 2009, notwithstanding anything to the |
| |
7|contrary of the System, the System, which is a governmental plan |
| |
8|(within the meaning of Section 414(d) of the Internal Revenue Code |
| |
9|of 1986, as amended) is treated as having complied with Section |
| |
10|401(a)(9) of the Internal Revenue Code of 1986, as amended, for all |
| |
11|years to which Section 401(a)(9) of the Internal Revenue Code of |
| |
12|1986, as amended, applies to the System if the System complies with |
| |
13|a reasonable and good-faith interpretation of Section 401(a)(9) of |
| |
14|the Internal Revenue Code of 1986, as amended. |
| |
15| D. In the event of the death of any member who has been awarded |
| |
16|a retirement benefit or is eligible therefor as provided in this |
| |
17|section, such member's beneficiaries shall be paid such retirement |
| |
18|benefit. The remaining portion of the member's retirement benefit |
| |
19|shall be distributed to the beneficiaries at least as rapidly as |
| |
20|under the method of distribution to the member. Effective March 1, |
| |
21|1997, if a member to whom a retirement benefit has been awarded or |
| |
22|who is eligible therefor dies prior to the date as of which the |
| |
23|total amount of retirement benefit paid equals the total amount of |
| |
24|the employee contributions paid by or on behalf of the member and |
| |
Req. No. 384 Page 25
___________________________________________________________________________
1|the member does not have a surviving beneficiary under paragraph 13 |
| |
2|of Section 50-101 of this title, the total benefits paid as of the |
| |
3|date of the member's death shall be subtracted from the accumulated |
| |
4|employee contribution amount and the balance, if greater than zero |
| |
5|(0), shall be paid to the member's estate. |
| |
6| E. The State Board may review and affirm a member's request for |
| |
7|retirement benefits prior to the member's normal retirement date |
| |
8|provided that no retirement benefits are paid prior to the normal |
| |
9|retirement date. |
| |
10| F. A member retired under the provisions of this article may |
| |
11|apply to the State Board to have the member's retirement benefits |
| |
12|set aside and may make application for disability benefits. Upon |
| |
13|approval of the disability benefits, the member would become subject |
| |
14|to all provisions of this article pertaining to disability |
| |
15|retirement. |
| |
16| G. Upon the death of a retired member, the benefit payment for |
| |
17|the month in which the retired member died, if not previously paid, |
| |
18|shall be made to the beneficiary of the member, which shall include |
| |
19|a successor in interest for whom an affidavit is provided to the |
| |
20|System in accordance with Section 393 of Title 58 of the Oklahoma |
| |
21|Statutes, or if there is no surviving beneficiary under paragraph 13 |
| |
22|of Section 50-101 of this title, to the member's estate or, if |
| |
23|properly designated by the member, a trust. Upon the death of a |
| |
24|beneficiary, the benefit payment for the month in which the |
| |
Req. No. 384 Page 26
___________________________________________________________________________
1|beneficiary died, if not previously paid, shall be made to the |
| |
2|beneficiary's estate or, if properly designated by the beneficiary, |
| |
3|to a trust. Such benefit payment shall be made in an amount equal |
| |
4|to a full monthly benefit payment regardless of the day of the month |
| |
5|in which the retired member or beneficiary died. |
| |
6| H. If the requirements of Section 50-114.4 of this title are |
| |
7|satisfied, a member who, by reason of attainment of normal |
| |
8|retirement date or age, is separated from service as a public safety |
| |
9|officer with the member's participating municipality, may elect to |
| |
10|have payment made directly to the provider for qualified health |
| |
11|insurance premiums by deduction from his or her monthly pension |
| |
12|payment, after December 31, 2006, in accordance with Section 402(l) |
| |
13|of the Internal Revenue Code of 1986, as amended. For distributions |
| |
14|made after December 29, 2022, the election provided for under |
| |
15|Section 402(l) of the Internal Revenue Code of 1986, as amended, may |
| |
16|be made whether payment of the premiums is made directly to the |
| |
17|provider of the accident or health plan or qualified long-term care |
| |
18|insurance contract by deduction from a distribution from the System |
| |
19|or is made to the member. |
| |
20| SECTION 6. AMENDATORY 11 O.S. 2021, Section 50-114.4, is |
| |
21|amended to read as follows: |
| |
22| Section 50-114.4. A. A member who is an eligible retired |
| |
23|public safety officer and who wishes to have direct payments made |
| |
24|toward the member's qualified health insurance premiums from the |
| |
Req. No. 384 Page 27
___________________________________________________________________________
1|member's monthly disability benefit or monthly pension payment must |
| |
2|make a written election in accordance with Section 402(l) of the |
| |
3|Internal Revenue Code of 1986, as amended, on the form provided by |
| |
4|the System, as follows: |
| |
5| 1. The election must be made after the member separates from |
| |
6|service as a public safety officer with the member's participating |
| |
7|municipality; |
| |
8| 2. The election shall only apply to distributions from the |
| |
9|System after December 31, 2006, and to amounts not yet distributed |
| |
10|to the eligible retired public safety officer; |
| |
11| 3. Direct payments Payments from the System for an eligible |
| |
12|retired public safety officer's qualified health insurance premiums |
| |
13|made directly to the provider of such coverage can only be made from |
| |
14|the member's monthly disability benefit or monthly pension payment |
| |
15|from the System and cannot be made from the Deferred Option Plan; |
| |
16|and |
| |
17| 4. The aggregate amount of the exclusion from an eligible |
| |
18|retired public safety officer's gross income is Three Thousand |
| |
19|Dollars ($3,000.00) per calendar year. |
| |
20| B. As used in this section: |
| |
21| 1. A "public safety officer" is a member serving a public |
| |
22|agency in an official capacity, with or without compensation, as a |
| |
23|law enforcement officer, firefighter, chaplain, or as a member of a |
| |
24|rescue squad or ambulance crew; |
| |
Req. No. 384 Page 28
___________________________________________________________________________
1| 2. An "eligible retired public safety officer" is a member who, |
| |
2|by reason of disability or attainment of normal retirement date or |
| |
3|age, is separated from service as a public safety officer with the |
| |
4|member's participating municipality; and |
| |
5| 3. "Qualified health insurance premiums" are for coverage for |
| |
6|the eligible retired public safety officer, the eligible retired |
| |
7|public safety officer's spouse, and dependents, as defined in |
| |
8|Section 152 of the Internal Revenue Code of 1986, as amended, by an |
| |
9|accident or health plan or a qualified long-term care insurance |
| |
10|contract, as defined in Section 7702B(b) of the Internal Revenue |
| |
11|Code of 1986, as amended. The health plan does not have to be |
| |
12|sponsored by the eligible retired public safety officer's former |
| |
13|participating municipality. |
| |
14| C. The State Board shall may promulgate such rules or |
| |
15|procedures as are necessary to implement the provisions of this |
| |
16|section or to facilitate a member's election under Section 402(l) of |
| |
17|the Internal Revenue Code of 1986, as amended. |
| |
18| SECTION 7. AMENDATORY 11 O.S. 2021, Section 50-115, as |
| |
19|amended by Section 3, Chapter 306, O.S.L. 2022 (11 O.S. Supp. 2022, |
| |
20|Section 50-115), is amended to read as follows: |
| |
21| Section 50-115. A. The State Board is authorized to pay a |
| |
22|disability benefit to a member of the System or a pension to the |
| |
23|beneficiaries of such member eligible as hereinafter provided, not |
| |
24|exceeding the accrued retirement benefit of the member, except as |
| |
Req. No. 384 Page 29
___________________________________________________________________________
1|otherwise provided in this article. Such disability benefit shall |
| |
2|be payable immediately upon determination of eligibility. Any |
| |
3|preexisting condition identified at the time of any initial or |
| |
4|subsequent membership shall be used to offset the percentage of |
| |
5|impairment to the whole person in determining any disability |
| |
6|benefit. Once the initial disability benefit has been awarded by |
| |
7|the Board on the basis of the percentage of impairment to the whole |
| |
8|person, the member shall have no further recourse to increase the |
| |
9|awarded percentage of impairment. |
| |
10| B. In order for any member to be eligible for any disability |
| |
11|benefit, or the member's beneficiaries to be eligible for a pension, |
| |
12|the member must have complied with any agreement as to contributions |
| |
13|by the member and other members to any funds of the System where the |
| |
14|agreement has been made as provided by this article; and the State |
| |
15|Board must find: |
| |
16| 1. That the member incurred a permanent total disability or a |
| |
17|permanent partial disability or died while in, and in consequence |
| |
18|of, the performance of duty as an officer; or |
| |
19| 2. That such member has served ten (10) years and incurred a |
| |
20|permanent total disability or a permanent partial disability or has |
| |
21|died from any cause. |
| |
22| C. In the event of the death of any member who has been awarded |
| |
23|a disability benefit or is eligible therefor as provided in this |
| |
24|article, the member's beneficiary shall be paid the benefit. |
| |
Req. No. 384 Page 30
___________________________________________________________________________
1| D. 1. As of the date of determination by the State Board that |
| |
2|a member has a permanent in-line disability, the member shall be |
| |
3|awarded a normal disability benefit, as defined in Section 50-101 of |
| |
4|this title. |
| |
5| 2. If an injury to a member results from a violent act as |
| |
6|defined by this paragraph while in the performance of his or her |
| |
7|duties as a police officer, the State Board shall make a |
| |
8|determination that the member has sustained a one-hundred-percent |
| |
9|disability and shall make the benefit award in accordance with that |
| |
10|standard. As used in this paragraph, "violent act" means a violent |
| |
11|attack upon the member by means of a dangerous weapon including, but |
| |
12|not limited to, a firearm, knife, automobile, explosive device or |
| |
13|other dangerous weapon. |
| |
14| E. If the participating municipality denies a disabled member |
| |
15|the option of continuing employment instead of retiring on a |
| |
16|disability pension, then the burden of proof rests with the |
| |
17|participating municipality to show cause to the State Board that |
| |
18|there is no position as a sworn officer within the police department |
| |
19|of that municipality which the member can fill. |
| |
20| F. Upon determination by the State Board that a member is |
| |
21|physically or mentally disabled and that the disability is permanent |
| |
22|and total and that the member has completed ten (10) years of |
| |
23|credited service and is disabled by any cause, the member shall |
| |
24|receive a disability benefit on the basis of the member's accrued |
| |
Req. No. 384 Page 31
___________________________________________________________________________
1|retirement benefit. A permanent and total impairment equates to one |
| |
2|hundred percent (100%) of accrued retirement benefit. |
| |
3| G. Upon determination by the State Board that a member is |
| |
4|physically or mentally disabled and that the disability is permanent |
| |
5|and partial and that the member has completed ten (10) years of |
| |
6|credited service as a member and is disabled from any cause, the |
| |
7|member shall be awarded a disability benefit on the basis of the |
| |
8|member's years of credited service as a member and the percentage of |
| |
9|impairment to the whole person, as defined by the standards of the |
| |
10|impairment as outlined in the "American Medical Association's Guides |
| |
11|to the Evaluation of Permanent Impairment", on the basis of the |
| |
12|following table: |
| |
13| 1% to 49% impaired = 50% of accrued retirement benefit |
| |
14| 50% to 74% impaired = 75% of accrued retirement benefit |
| |
15| 75% to 99% impaired = 100% of accrued retirement benefit. |
| |
16| H. Before making a finding as to the disability of a member, |
| |
17|the State Board shall require that, if the member is able, the |
| |
18|member shall make a certificate as to the disability which shall be |
| |
19|subscribed and sworn to by the member. It shall also require a |
| |
20|certificate as to such disability to be made by some physician |
| |
21|licensed to practice in this state as selected by the State Board. |
| |
22|The State Board may require other evidence of disability before |
| |
23|making the disability benefit. The salary of any such member shall |
| |
24|continue while the member is so necessarily confined to such |
| |
Req. No. 384 Page 32
___________________________________________________________________________
1|hospital bed or home and necessarily requires medical care or |
| |
2|professional nursing on account of such sickness or disability for a |
| |
3|period of not more than six (6) months, after which the period the |
| |
4|other provisions of this article may apply. The State Board, in |
| |
5|making disability benefits, shall act upon the written request of |
| |
6|the member or without such request, if it deem it for the good of |
| |
7|the police department. Any disability benefits shall cease when the |
| |
8|member receiving same shall be restored to active service at a |
| |
9|salary not less than three-fourths (3/4) of the member's average |
| |
10|monthly salary. |
| |
11| I. Any member of a police department of any municipality who, |
| |
12|in the line of duty, has been exposed to hazardous substances |
| |
13|including but not limited to chemicals used in the manufacture of a |
| |
14|controlled dangerous substance or chemicals resulting from the |
| |
15|manufacture of a controlled dangerous substance, or to blood-borne |
| |
16|pathogens and who is later disabled from a condition that was the |
| |
17|result of such exposure and that was not revealed by the physical |
| |
18|examination passed by the member upon entry into the System shall be |
| |
19|presumed to have incurred such disability while performing the |
| |
20|officer's duties unless the contrary is shown by competent evidence. |
| |
21| The presumption created by this subsection shall have no |
| |
22|application whatever to any workers' compensation claim or claims, |
| |
23|and it shall not be applied or be relied upon in any way in workers' |
| |
24|compensation proceedings. All compensation or benefits due to any |
| |
Req. No. 384 Page 33
___________________________________________________________________________
1|member pursuant to the presumption created by this subsection shall |
| |
2|be paid solely by the system. |
| |
3| J. If the requirements of Section 50-114.4 of this title are |
| |
4|satisfied, a member who, by reason of disability, is separated from |
| |
5|service as a public safety officer with the member's participating |
| |
6|municipality, may elect to have payment made directly to the |
| |
7|provider for qualified health insurance premiums by deduction from |
| |
8|his or her monthly disability benefit, after December 31, 2006, in |
| |
9|accordance with Section 402(l) of the Internal Revenue Code of 1986, |
| |
10|as amended. For distributions made after December 29, 2022, the |
| |
11|election provided for under Section 402(l) of the Internal Revenue |
| |
12|Code of 1986, as amended, may be made whether payment of the |
| |
13|premiums is made directly to the provider of the accident or health |
| |
14|plan or qualified long-term care insurance contract by deduction |
| |
15|from a distribution from the System or is made to the member. |
| |
16| SECTION 8. AMENDATORY 47 O.S. 2021, Section 2-300, is |
| |
17|amended to read as follows: |
| |
18| Section 2-300. As used in Section 2-300 et seq. of this title: |
| |
19| 1. "System" means the Oklahoma Law Enforcement Retirement |
| |
20|System; |
| |
21| 2. "Act" means Section 2-300 et seq. of this title; |
| |
22| 3. "Board" means the Oklahoma Law Enforcement Retirement Board |
| |
23|of the System; |
| |
24| |
| |
Req. No. 384 Page 34
___________________________________________________________________________
1| 4. "Executive Director" means the managing officer of the |
| |
2|System employed by the Board; |
| |
3| 5. "Fund" means the Oklahoma Law Enforcement Retirement Fund; |
| |
4| 6. a. "Member" means: |
| |
5| (1) all commissioned law enforcement officers of the |
| |
6| Oklahoma Highway Patrol Division of the |
| |
7| Department of Public Safety who have obtained |
| |
8| certification from the Council on Law Enforcement |
| |
9| Education and Training, and all cadets of a |
| |
10| Patrol Academy of the Department of Public |
| |
11| Safety, |
| |
12| (2) law enforcement officers and criminalists of the |
| |
13| Oklahoma State Bureau of Investigation, |
| |
14| (3) law enforcement officers of the Oklahoma State |
| |
15| Bureau of Narcotics and Dangerous Drugs Control |
| |
16| designated to perform duties in the investigation |
| |
17| and prevention of crime and the enforcement of |
| |
18| the criminal laws of this state, |
| |
19| (4) law enforcement officers of the Oklahoma |
| |
20| Alcoholic Beverage Laws Enforcement Commission |
| |
21| designated to perform duties in the investigation |
| |
22| and prevention of crime and the enforcement of |
| |
23| the criminal laws of this state, |
| |
24| |
| |
Req. No. 384 Page 35
___________________________________________________________________________
1| (5) employees of the Communications Section of the |
| |
2| Oklahoma Highway Patrol Division, radio |
| |
3| technicians and tower technicians of the |
| |
4| Department of Public Safety, who are employed in |
| |
5| any such capacity as of June 30, 2008, and who |
| |
6| remain employed on or after July 1, 2008, until a |
| |
7| termination of service, or until a termination of |
| |
8| service with an election of a vested benefit from |
| |
9| the System, or until retirement. Effective July |
| |
10| 1, 2008, a person employed for the first time as |
| |
11| an employee of the Department of Public Safety in |
| |
12| the Communications Division as an information |
| |
13| systems telecommunication technician of the |
| |
14| Department of Public Safety shall not be a member |
| |
15| of the System, |
| |
16| (6) park rangers of the Oklahoma Tourism and |
| |
17| Recreation Department and any park manager or |
| |
18| park supervisor of the Oklahoma Tourism and |
| |
19| Recreation Department, who was employed in such a |
| |
20| position prior to July 1, 1985, and who elects on |
| |
21| or before September 1, 1996, to participate in |
| |
22| the System, and |
| |
23| (7) inspectors of the Board of Pharmacy. |
| |
24| |
| |
Req. No. 384 Page 36
___________________________________________________________________________
1| b. Effective July 1, 1987, a member does not include a |
| |
2| "leased employee" as defined under Section 414(n)(2) |
| |
3| of the Internal Revenue Code of 1986, as amended. |
| |
4| Effective July 1, 1999, any individual who agrees with |
| |
5| the participating employer that the individual's |
| |
6| services are to be performed as a leased employee or |
| |
7| an independent contractor shall not be a member |
| |
8| regardless of any classification as a common-law |
| |
9| employee by the Internal Revenue Service or any other |
| |
10| governmental agency, or any court of competent |
| |
11| jurisdiction. |
| |
12| c. All persons who shall be offered a position of a |
| |
13| commissioned law enforcement officer as an employee of |
| |
14| one of the agencies described in subparagraph a of |
| |
15| this paragraph shall participate in the System upon |
| |
16| the person meeting the requisite |
| |
17| post-offer-pre-employment physical examination |
| |
18| standards which shall be subject to the following |
| |
19| requirements: |
| |
20| (1) all such persons shall be of good moral |
| |
21| character, free from deformities, mental or |
| |
22| physical conditions, or disease and alcohol or |
| |
23| drug addiction which would prohibit the person |
| |
24| |
| |
Req. No. 384 Page 37
___________________________________________________________________________
1| from performing the duties of a law enforcement |
| |
2| officer, |
| |
3| (2) the physical-medical examination shall pertain to |
| |
4| age, sight, hearing, agility and other conditions |
| |
5| the requirements of which shall be established by |
| |
6| the Board, |
| |
7| (3) the person shall be required to meet the |
| |
8| conditions of this subsection prior to the |
| |
9| beginning of actual employment but after an offer |
| |
10| of employment has been tendered by a |
| |
11| participating employer, |
| |
12| (4) the Board shall have authority to deny or revoke |
| |
13| membership of any person submitting false |
| |
14| information in such person's membership |
| |
15| application, and |
| |
16| (5) the Board shall have final authority in |
| |
17| determining eligibility for membership in the |
| |
18| System, pursuant to the provisions of this |
| |
19| subsection; |
| |
20| 7. "Normal retirement date" means the date at which the member |
| |
21|is eligible to receive the unreduced payments of the member's |
| |
22|accrued retirement benefit. Such date shall be the first day of the |
| |
23|month coinciding with or following the date the member: |
| |
24| a. completes twenty (20) years of vesting service, or |
| |
Req. No. 384 Page 38
___________________________________________________________________________
1| b. attains sixty-two (62) years of age with ten (10) |
| |
2| years of vesting service, or |
| |
3| c. attains sixty-two (62) years of age, if: |
| |
4| (1) the member has been transferred to this System |
| |
5| from the Oklahoma Public Employees Retirement |
| |
6| System on or after July 1, 1981, and |
| |
7| (2) the member would have been vested had the member |
| |
8| continued to be a member of the Oklahoma Public |
| |
9| Employees Retirement System. |
| |
10| With respect to distributions under the System made for calendar |
| |
11|years beginning on or after January 1, 2005, the System shall apply |
| |
12|the minimum distribution incidental benefit requirements, incidental |
| |
13|benefit requirements, and minimum distribution requirements of |
| |
14|Section 401(a)(9) of the Internal Revenue Code of 1986, as amended, |
| |
15|in accordance with the final regulations under Section 401(a)(9) of |
| |
16|the Internal Revenue Code of 1986, as amended, including Treasury |
| |
17|Regulations Sections 1.401(a)(9)-1 through 1.401(a)(9)-9; provided |
| |
18|that for individuals who attain seventy and one-half (70 1/2) years |
| |
19|of age after December 31, 2019, but before January 1, 2023, |
| |
20|distributions shall be made when the individual attains seventy-two |
| |
21|(72) years of age, pursuant to the provisions of the SECURE Act of |
| |
22|2019, Pub. L. 116-94, Sections 401(a)(9)(B)(iv)(I), |
| |
23|401(a)(9)(C)(i)(I) and 401(a)(9)(C)(ii)(I) of the Internal Revenue |
| |
24|Code of 1986, as amended, and, provided further, that for |
| |
Req. No. 384 Page 39
___________________________________________________________________________
1|individuals who attain seventy-two (72) years of age after December |
| |
2|31, 2022, such distributions shall take into account that "age 72" |
| |
3|was stricken and "the applicable age", as defined in Section |
| |
4|401(a)(9)(v) of the Internal Revenue Code of 1986, as amended, was |
| |
5|inserted in Section 401(a)(9)(B)(iv)(I), Section 401(a)(9)(C)(i)(I) |
| |
6|and Section 401(a)(9)(C)(ii)(I) of the Internal Revenue Code of |
| |
7|1986, as amended, in all cases notwithstanding any provision of the |
| |
8|System to the contrary. With respect to distributions under the |
| |
9|System made for calendar years beginning on or after January 1, |
| |
10|2001, through December 31, 2004, the System shall apply the minimum |
| |
11|distribution requirements and incidental benefit requirements of |
| |
12|Section 401(a)(9) of the Internal Revenue Code of 1986, as amended, |
| |
13|in accordance with the regulations under Section 401(a)(9) of the |
| |
14|Internal Revenue Code of 1986, as amended, which were proposed in |
| |
15|January 2001, notwithstanding any provision of the System to the |
| |
16|contrary. |
| |
17| Effective July 1, 1989, notwithstanding any other provision |
| |
18|contained herein to the contrary, in no event shall commencement of |
| |
19|distribution of the accrued retirement benefit of a member be |
| |
20|delayed beyond April 1 of the calendar year following the later of: |
| |
21|(1) the calendar year in which the member reaches seventy and |
| |
22|one-half (70 1/2) years of age for a member who attains this age |
| |
23|before January 1, 2020, or, for a member who attains this age on or |
| |
24|after January 1, 2020, but before January 1, 2023, the calendar year |
| |
Req. No. 384 Page 40
___________________________________________________________________________
1|in which the member reaches seventy-two (72) years of age, or |
| |
2|effective for distributions required to be made after December 31, |
| |
3|2022, the calendar year in which the member reaches seventy-three |
| |
4|(73) years of age for an individual who attains age seventy-two (72) |
| |
5|after December 31, 2022, or "the applicable age", as defined in |
| |
6|Section 401(a)(9)(v) of the Internal Revenue Code of 1986, as |
| |
7|amended, if later; or (2) the actual retirement date of the member. |
| |
8|A member electing to defer the commencement of retirement benefits |
| |
9|pursuant to Section 2-308.1 of this title may not defer the benefit |
| |
10|commencement beyond the age of sixty-five (65). |
| |
11| Effective September 8, 2009, notwithstanding anything to the |
| |
12|contrary of the System, the System, which as a governmental plan |
| |
13|(within the meaning of Section 414(d) of the Internal Revenue Code |
| |
14|of 1986, as amended), is treated as having complied with Section |
| |
15|401(a)(9) of the Internal Revenue Code of 1986, as amended, for all |
| |
16|years to which Section 401(a)(9) of the Internal Revenue Code of |
| |
17|1986, as amended, applies to the System if the System complies with |
| |
18|a reasonable and good faith interpretation of Section 401(a)(9) of |
| |
19|the Internal Revenue Code of 1986, as amended. |
| |
20| A member who was required to join the System effective July 1, |
| |
21|1980, because of the transfer of the employing agency from the |
| |
22|Oklahoma Public Employees Retirement System to the System, and was |
| |
23|not a member of the Oklahoma Public Employees Retirement System on |
| |
24|the date of such transfer shall be allowed to receive credit for |
| |
Req. No. 384 Page 41
___________________________________________________________________________
1|prior law enforcement service rendered to this state, if the member |
| |
2|is not receiving or eligible to receive retirement credit or |
| |
3|benefits for such service in any other public retirement system, |
| |
4|upon payment to the System of the employee contribution the member |
| |
5|would have been subject to had the member been a member of the |
| |
6|System at the time, plus five percent (5%) interest. Service credit |
| |
7|received pursuant to this paragraph shall be used in determining the |
| |
8|member's retirement benefit, and shall be used in determining years |
| |
9|of service for retirement or vesting purposes; |
| |
10| 8. "Actual paid base salary" means the salary received by a |
| |
11|member, excluding payment for any accumulated leave or uniform |
| |
12|allowance. Salary shall include any amount of nonelective salary |
| |
13|reduction under Section 414(h) of the Internal Revenue Code of 1986; |
| |
14| 9. "Final average salary" means the average of the highest |
| |
15|thirty (30) consecutive complete months of actual paid gross salary. |
| |
16| Gross salary shall include any amount of elective salary reduction |
| |
17|under Section 457 of the Internal Revenue Code of 1986, as amended, |
| |
18|and any amount of nonelective salary reduction under Section 414(h) |
| |
19|of the Internal Revenue Code of 1986, as amended. Effective July 1, |
| |
20|1992, gross salary shall include any amount of elective salary |
| |
21|reduction under Section 125 of the Internal Revenue Code of 1986, as |
| |
22|amended. Effective July 1, 1998, gross salary shall include any |
| |
23|amount of elective salary reduction not includable in the gross |
| |
24|income of the member under Section 132(f)(4) of the Internal Revenue |
| |
Req. No. 384 Page 42
___________________________________________________________________________
1|Code of 1986, as amended. Effective July 1, 1998, for purposes of |
| |
2|determining a member's compensation, any contribution by the member |
| |
3|to reduce his or her regular cash remuneration under Section |
| |
4|132(f)(4) of the Internal Revenue Code of 1986, as amended, shall be |
| |
5|treated as if the member did not make such an election. Only salary |
| |
6|on which required contributions have been made may be used in |
| |
7|computing the final average salary. Gross salary shall not include |
| |
8|severance pay. |
| |
9| In addition to other applicable limitations, and notwithstanding |
| |
10|any other provision to the contrary, for plan years beginning on or |
| |
11|after July 1, 2002, the annual gross salary of each "Noneligible |
| |
12|Member" taken into account under the System shall not exceed the |
| |
13|Economic Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA") |
| |
14|annual salary limit. The EGTRRA annual salary limit is Two Hundred |
| |
15|Thousand Dollars ($200,000.00), as adjusted by the Commissioner for |
| |
16|increases in the cost of living in accordance with Section |
| |
17|401(a)(17)(B) of the Internal Revenue Code of 1986, as amended. The |
| |
18|annual salary limit in effect for a calendar year applies to any |
| |
19|period, not exceeding twelve (12) months, over which salary is |
| |
20|determined ("determination period") beginning in such calendar year. |
| |
21| If a determination period consists of fewer than twelve (12) |
| |
22|months, the EGTRRA salary limit will be multiplied by a fraction, |
| |
23|the numerator of which is the number of months in the determination |
| |
24|period, and the denominator of which is twelve (12). For purposes |
| |
Req. No. 384 Page 43
___________________________________________________________________________
1|of this section, a "Noneligible Member" is any member who first |
| |
2|became a member during a plan year commencing on or after July 1, |
| |
3|1996. |
| |
4| For plan years beginning on or after July 1, 2002, any reference |
| |
5|in the System to the annual salary limit under Section 401(a)(17) of |
| |
6|the Internal Revenue Code of 1986, as amended, shall mean the EGTRRA |
| |
7|salary limit set forth in this provision. |
| |
8| Effective January 1, 2008, gross salary for a plan year shall |
| |
9|also include gross salary, as described above, for services, but |
| |
10|paid by the later of two and one-half (2 1/2) months after a |
| |
11|member's severance from employment or the end of the calendar year |
| |
12|that includes the date the member terminated employment, if it is a |
| |
13|payment that, absent a severance from employment, would have been |
| |
14|paid to the member while the member continued in employment with the |
| |
15|employer. |
| |
16| Effective January 1, 2008, any payments not described above |
| |
17|shall not be considered gross salary if paid after severance from |
| |
18|employment, even if they are paid by the later of two and one-half |
| |
19|(2 1/2) months after the date of severance from employment or the |
| |
20|end of the calendar year that includes the date of severance from |
| |
21|employment, except payments to an individual who does not currently |
| |
22|perform services for the employer by reason of qualified military |
| |
23|service within the meaning of Section 414(u)(5) of the Internal |
| |
24|Revenue Code of 1986, as amended, to the extent these payments do |
| |
Req. No. 384 Page 44
___________________________________________________________________________
1|not exceed the amounts the individual would have received if the |
| |
2|individual had continued to perform services for the employer rather |
| |
3|than entering qualified military service. |
| |
4| Effective January 1, 2008, back pay, within the meaning of |
| |
5|Section 1.415(c)-2(g)(8) of the Income Tax Regulations, shall be |
| |
6|treated as gross salary for the limitation year to which the back |
| |
7|pay relates to the extent the back pay represents wages and |
| |
8|compensation that would otherwise be included in this definition. |
| |
9| Effective for years beginning after December 31, 2008, gross |
| |
10|salary shall also include differential wage payments under Section |
| |
11|414(u)(12) of the Internal Revenue Code of 1986, as amended; |
| |
12| 10. "Credited service" means the period of service used to |
| |
13|determine the amount of benefits payable to a member. Credited |
| |
14|service shall consist of the period during which the member |
| |
15|participated in the System or the predecessor Plan as an active |
| |
16|employee in an eligible membership classification, plus any service |
| |
17|prior to the establishment of the predecessor Plan which was |
| |
18|credited under the predecessor Plan and for law enforcement officers |
| |
19|and criminalists of the Oklahoma State Bureau of Investigation and |
| |
20|the Oklahoma State Bureau of Narcotics and Dangerous Drugs Control |
| |
21|who became members of the System on July 1, 1980, any service |
| |
22|credited under the Oklahoma Public Employees Retirement System as of |
| |
23|June 30, 1980, and for members of the Communications and Lake Patrol |
| |
24|Divisions of the Oklahoma Department of Public Safety, who became |
| |
Req. No. 384 Page 45
___________________________________________________________________________
1|members of the System on July 1, 1981, any service credited under |
| |
2|the predecessor Plan or the Oklahoma Public Employees Retirement |
| |
3|System as of June 30, 1981, and for law enforcement officers of the |
| |
4|Alcoholic Beverage Laws Enforcement Commission who became members of |
| |
5|the System on July 1, 1982, any service credited under the Oklahoma |
| |
6|Public Employees Retirement System as of June 30, 1982, and for park |
| |
7|rangers of the Oklahoma Tourism and Recreation Department who became |
| |
8|members of the System on July 1, 1985, any service credited under |
| |
9|the Oklahoma Public Employees Retirement System as of June 30, 1985, |
| |
10|and for inspectors of the Oklahoma State Board of Pharmacy who |
| |
11|became members of the System on July 1, 1986, any service credited |
| |
12|under the Oklahoma Public Employees Retirement System as of June 30, |
| |
13|1986, for law enforcement officers of the Oklahoma Capitol Patrol |
| |
14|Division of the Department of Public Safety who became members of |
| |
15|the System effective July 1, 1993, any service credited under the |
| |
16|Oklahoma Public Employees Retirement System as of June 30, 1993, and |
| |
17|for all commissioned officers in the Gunsmith/Ammunition Reloader |
| |
18|Division of the Department of Public Safety who became members of |
| |
19|the System effective July 1, 1994, any service credited under the |
| |
20|Oklahoma Public Employees Retirement System as of June 30, 1994, and |
| |
21|for the park managers or park supervisors of the Oklahoma Tourism |
| |
22|and Recreation Department who were employed in such a position prior |
| |
23|to July 1, 1985, and who elect to become members of the System |
| |
24|effective September 1, 1996, any service transferred pursuant to |
| |
Req. No. 384 Page 46
___________________________________________________________________________
1|subsection C of Section 2-309.6 of this title and any service |
| |
2|purchased pursuant to subsection B of Section 2-307.2 of this title. |
| |
3| Effective August 5, 1993, an authorized leave of absence shall |
| |
4|include a period of absence pursuant to the Family and Medical Leave |
| |
5|Act of 1993; |
| |
6| 11. "Disability" means a physical or mental condition which, in |
| |
7|the judgment of the Board, totally and presumably permanently |
| |
8|prevents the member from engaging in the usual and customary duties |
| |
9|of the occupation of the member and thereafter prevents the member |
| |
10|from performing the duties of any occupation or service for which |
| |
11|the member is qualified by reason of training, education or |
| |
12|experience. A person is not under a disability when capable of |
| |
13|performing a service to the employer, regardless of occupation, |
| |
14|providing the salary of the employee is not diminished thereby; |
| |
15| 12. "Limitation year" means the year used in applying the |
| |
16|limitations of Section 415 of the Internal Revenue Code of 1986, |
| |
17|which year shall be the calendar year; |
| |
18| 13. "Line of duty" means any action which a member whose |
| |
19|primary function is crime control or reduction or enforcement of the |
| |
20|criminal law is obligated or authorized by rule, regulations, |
| |
21|condition of employment or service, or law to perform including |
| |
22|those social, ceremonial or athletic functions to which the member |
| |
23|is assigned, or for which the member is compensated, by the agency |
| |
24|the member serves; |
| |
Req. No. 384 Page 47
___________________________________________________________________________
1| 14. "Personal injury" or "injury" means any traumatic injury as |
| |
2|well as diseases which are caused by or result from such an injury, |
| |
3|but not occupational diseases; |
| |
4| 15. "Catastrophic nature" means consequences of an injury that |
| |
5|permanently prevent an individual from performing any gainful work; |
| |
6| 16. "Traumatic injury" means a wound or a condition of the body |
| |
7|caused by external force including injuries inflicted by bullets, |
| |
8|explosives, sharp instruments, blunt objects or other physical |
| |
9|blows, chemicals, electricity, climatic conditions, infectious |
| |
10|diseases, radiation and bacteria, but excluding stress and strain; |
| |
11|and |
| |
12| 17. "Beneficiary" means the individual designated by the member |
| |
13|on a beneficiary designation form supplied by the Oklahoma Law |
| |
14|Enforcement Retirement System, or, if there is no designated |
| |
15|beneficiary or if the designated beneficiary predeceases the member, |
| |
16|the estate of the member. If the member's spouse is not designated |
| |
17|as the sole primary beneficiary, the member's spouse must sign a |
| |
18|consent. |
| |
19| SECTION 9. AMENDATORY 47 O.S. 2021, Section 2-305, as |
| |
20|amended by Section 2, Chapter 255, O.S.L. 2022 (47 O.S. Supp. 2022, |
| |
21|Section 2-305), is amended to read as follows: |
| |
22| Section 2-305. A. Except as otherwise provided in this title, |
| |
23|at any time after attaining normal retirement date, any member of |
| |
24|the Oklahoma Law Enforcement Retirement System upon application for |
| |
Req. No. 384 Page 48
___________________________________________________________________________
1|unreduced retirement benefits made and approved, may retire, and, |
| |
2|during the remainder of the member's lifetime, receive annual |
| |
3|retirement pay, payable in equal monthly payments, equal to two and |
| |
4|one-half percent (2 1/2%) of the final average salary times years of |
| |
5|credited service. If such retired member is reemployed by a state |
| |
6|agency in a position which is not covered by the System, such |
| |
7|retired member shall continue to receive in-service distributions |
| |
8|from the System. Prior to September 19, 2002, if such retired |
| |
9|member was reemployed by a state agency in a position which is |
| |
10|covered by the System, such member shall continue to receive |
| |
11|in-service distributions from the System and shall not accrue any |
| |
12|further credited service. If such a member is reemployed by a state |
| |
13|agency in a position which is covered by the System on or after |
| |
14|September 19, 2002, such member's monthly retirement payments shall |
| |
15|be suspended until such member retires and is not reemployed by a |
| |
16|state agency in a position which is covered by the System. |
| |
17| B. Beginning July 1, 1994, members who retired or were eligible |
| |
18|to retire prior to July 1, 1980, or their surviving spouses shall |
| |
19|receive annual retirement pay, payable in equal monthly payments, |
| |
20|equal to the greater of their current retirement pay, or two and |
| |
21|one-half percent (2 1/2%) of the actual paid gross salary being |
| |
22|currently paid to a highway patrol officer, at the time each such |
| |
23|monthly retirement payment is made, multiplied by the retired |
| |
24|member's years of credited service. |
| |
Req. No. 384 Page 49
___________________________________________________________________________
1| C. Except as otherwise provided by this subsection, members of |
| |
2|the System whose salary is set by statute who have retired after |
| |
3|completion of the mandatory twenty (20) years of service, and those |
| |
4|members with statutory salaries who retire after reaching the |
| |
5|mandatory twenty-year retirement shall receive an annual retirement |
| |
6|pay, payable in equal monthly installments, based upon the greater |
| |
7|of either: |
| |
8| 1. The top base salary currently paid to the highest |
| |
9|nonsupervisory position in the participating agency at the time each |
| |
10|such monthly retirement payment is made, limited to the annual |
| |
11|salary limit of the Economic Growth and Tax Relief Reconciliation |
| |
12|Act of 2001, as described in paragraph 9 of Section 2-300 of this |
| |
13|title, multiplied by two and one-half percent (2 1/2%) multiplied by |
| |
14|the number of years of credited service and fraction thereof for the |
| |
15|following positions: |
| |
16| a. Oklahoma Highway Patrolman, |
| |
17| b. Communications Dispatcher, |
| |
18| c. Capitol Patrolman, |
| |
19| d. Lake Patrolman, and |
| |
20| e. Oklahoma State Bureau of Investigation - Special Agent |
| |
21| or Criminalist; or |
| |
22| 2. The member's final average salary as set forth in paragraph |
| |
23|9 of Section 2-300 of this title, multiplied by two and one-half |
| |
24| |
| |
Req. No. 384 Page 50
___________________________________________________________________________
1|percent (2 1/2%), and multiplied by the number of years of credited |
| |
2|service and fraction thereof. |
| |
3| No member of the System retired prior to July 1, 2002, shall |
| |
4|receive a benefit less than the amount the member is receiving as of |
| |
5|June 30, 2002. |
| |
6| The provisions of paragraph 1 of this subsection shall not be |
| |
7|applicable to any member whose first participating service with the |
| |
8|System occurs on or after November 1, 2012, except for those members |
| |
9|who died in the performance of their duties pursuant to Section |
| |
10|2-306 of this title. |
| |
11| D. Other members of the System whose retirement benefit is not |
| |
12|otherwise prescribed by this section who have retired after |
| |
13|completion of the mandatory twenty (20) years of service, and those |
| |
14|members who retire after reaching the mandatory twenty-year |
| |
15|retirement shall receive an annual retirement pay, payable in equal |
| |
16|monthly payments, based upon the greater of either: |
| |
17| 1. The actual average salary currently paid to the highest |
| |
18|nonsupervisory position in the participating agency at the time each |
| |
19|such monthly payment is made, limited to the annual salary limit of |
| |
20|the Economic Growth and Tax Relief Reconciliation Act of 2001, as |
| |
21|described in paragraph 9 of Section 2-300 of this title, multiplied |
| |
22|by two and one-half percent (2 1/2%), multiplied by the number of |
| |
23|years of credited service and fraction thereof for the following |
| |
24|positions: |
| |
Req. No. 384 Page 51
___________________________________________________________________________
1| a. Alcoholic Beverage Laws Enforcement Commission - ABLE |
| |
2| Commission Agent III, |
| |
3| b. Oklahoma State Bureau of Narcotics and Dangerous Drugs |
| |
4| Control - Narcotics Agent III, |
| |
5| c. Oklahoma Tourism and Recreation Department - Park |
| |
6| Ranger II, |
| |
7| d. State Board of Pharmacy - Pharmacy Inspector, |
| |
8| e. University of Oklahoma - Police Officer, and |
| |
9| f. Oklahoma State University - Police Officer; or |
| |
10| 2. The other member's final average salary as set forth in |
| |
11|paragraph 9 of Section 2-300 of this title, multiplied by two and |
| |
12|one-half percent (2 1/2%), multiplied by the number of years of |
| |
13|credited service and fraction thereof. |
| |
14| No member of the System retired prior to July 1, 2002, shall |
| |
15|receive a benefit less than the amount the member is receiving as of |
| |
16|June 30, 2002. The participating employer must certify to the |
| |
17|System in writing the actual average gross salary currently paid to |
| |
18|the highest nonsupervisory position. The Board of Trustees shall |
| |
19|promulgate such rules as are necessary to implement the provisions |
| |
20|of this section. |
| |
21| The provisions of paragraph 1 of this subsection shall not be |
| |
22|applicable to any member whose first participating service with the |
| |
23|System occurs on or after May 24, 2013, except for those members who |
| |
24| |
| |
Req. No. 384 Page 52
___________________________________________________________________________
1|died in the performance of their duties pursuant to Section 2-306 of |
| |
2|this title. |
| |
3| E. A member who meets the definition of disability as defined |
| |
4|in paragraph 11 of Section 2-300 of this title by direct reason of |
| |
5|the performance of the member's duties as an officer shall receive a |
| |
6|monthly benefit equal to: |
| |
7| 1. Two and one-half percent (2 1/2%); |
| |
8| 2. Multiplied by: |
| |
9| a. twenty (20) years of credited service, if the member |
| |
10| had performed less than twenty (20) years of credited |
| |
11| service, notwithstanding the actual number of years of |
| |
12| credited service performed by the member prior to the |
| |
13| date of disability, or |
| |
14| b. the actual number of years of credited service and |
| |
15| fraction thereof performed by the member prior to the |
| |
16| date of disability, if the member had performed twenty |
| |
17| (20) or more years of credited service; |
| |
18| 3. Multiplied by the greater of subparagraph a of this |
| |
19|paragraph and division 1 of subparagraph b of this paragraph or |
| |
20|division 2 of subparagraph b of this paragraph, as applicable: |
| |
21| a. the final average salary of the member, as set forth |
| |
22| in paragraph 9 of Section 2-300 of this title, and |
| |
23| b. (1) the top base salary currently paid to the |
| |
24| highest nonsupervisory position in the |
| |
Req. No. 384 Page 53
___________________________________________________________________________
1| participating agency of the member at the time |
| |
2| each monthly payment is made, limited to the |
| |
3| annual salary limit of the Economic Growth and |
| |
4| Tax Relief Reconciliation Act of 2001 described |
| |
5| in paragraph 9 of Section 2-300 of this title, |
| |
6| for the following positions: |
| |
7| (a) Oklahoma Highway Patrolman, |
| |
8| (b) Communications Dispatcher, |
| |
9| (c) Capitol Patrolman, |
| |
10| (d) Lake Patrolman, and |
| |
11| (e) Oklahoma State Bureau of Investigation - |
| |
12| Special Agent or Criminalist, |
| |
13| Provided, the participating employer must certify to the System |
| |
14|in writing the top base salary currently paid to the highest |
| |
15|nonsupervisory position for division (1) of subparagraph b of this |
| |
16|paragraph, or |
| |
17| (2) the actual average salary currently paid to the |
| |
18| highest nonsupervisory position in the |
| |
19| participating agency of the member at the time |
| |
20| each monthly payment is made, limited to the |
| |
21| annual salary limit of the Economic Growth and |
| |
22| Tax Relief Reconciliation Act of 2001, described |
| |
23| in paragraph 9 of Section 2-300 of this title, |
| |
24| for the following positions: |
| |
Req. No. 384 Page 54
___________________________________________________________________________
1| (a) Alcoholic Beverage Laws Enforcement (ABLE) |
| |
2| Commission - ABLE Commission Agent III, |
| |
3| (b) Oklahoma State Bureau of Narcotics and |
| |
4| Dangerous Drugs Control - Narcotics Agent |
| |
5| III, |
| |
6| (c) Oklahoma Tourism and Recreation Department |
| |
7| - Park Ranger II, |
| |
8| (d) State Board of Pharmacy - Pharmacy |
| |
9| Inspector, |
| |
10| (e) University of Oklahoma - Police Officer, |
| |
11| and |
| |
12| (f) Oklahoma State University - Police Officer, |
| |
13| |
| |
14| Provided, the participating employer must certify to the System |
| |
15|in writing the actual average gross salary currently paid to the |
| |
16|highest nonsupervisory position for division (2) of subparagraph b |
| |
17|of this paragraph; |
| |
18| 4. No member of the System receiving benefits prescribed by |
| |
19|this subsection who retired prior to July 1, 2002, shall receive a |
| |
20|benefit of less than the amount the member was receiving as of June |
| |
21|30, 2002; |
| |
22| 5. The Board of Trustees shall promulgate rules as necessary to |
| |
23|implement the provisions of this subsection; and |
| |
24| |
| |
Req. No. 384 Page 55
___________________________________________________________________________
1| 6. If such member participates in the Oklahoma Law Enforcement |
| |
2|Deferred Option Plan pursuant to Section 2-305.2 of this title, then |
| |
3|such member's disability pension provided pursuant to this |
| |
4|subsection shall be reduced to account for such member's |
| |
5|participation in the Oklahoma Law Enforcement Deferred Option Plan. |
| |
6| F. A member who meets the definition of disability as defined |
| |
7|in paragraph 11 of Section 2-300 of this title and whose disability |
| |
8|is by means of personal and traumatic injury of a catastrophic |
| |
9|nature and in the line of duty, shall receive a monthly benefit |
| |
10|equal to: |
| |
11| 1. Two and one-half percent (2 1/2%); |
| |
12| 2. Multiplied by: |
| |
13| a. twenty (20) years of service, regardless of the actual |
| |
14| number of years of credited service performed by the |
| |
15| member prior to the date of disability, if the member |
| |
16| had performed less than twenty (20) years of service, |
| |
17| or |
| |
18| b. the actual number of years of service performed by the |
| |
19| member if the member had performed twenty (20) or more |
| |
20| years of service; |
| |
21| 3. Multiplied by a final average salary equal to: |
| |
22| a. the salary which the member would have received |
| |
23| pursuant to statutory salary schedules in effect upon |
| |
24| the date of the disability for twenty (20) years of |
| |
Req. No. 384 Page 56
___________________________________________________________________________
1| service prior to disability. The final average salary |
| |
2| for a member who performed less than twenty (20) years |
| |
3| of service prior to disability shall be computed |
| |
4| assuming that the member was paid the highest salary |
| |
5| allowable pursuant to the law in effect at the time of |
| |
6| the member's disability based upon twenty (20) years |
| |
7| of service and with an assumption that the member was |
| |
8| eligible for any and all increases in pay based upon |
| |
9| rank during the entire period. If the salary of a |
| |
10| member is not prescribed by a specific salary schedule |
| |
11| upon the date of the member's disability, the final |
| |
12| average salary for the member shall be computed by the |
| |
13| member's actual final average salary or the highest |
| |
14| median salary amount for a member whose salary was |
| |
15| prescribed by a specific salary schedule upon the date |
| |
16| of the member's disability, whichever final average |
| |
17| salary amount would be greater, or |
| |
18| b. the actual final average salary of the member if the |
| |
19| member had performed twenty (20) or more years of |
| |
20| service prior to disability. |
| |
21| If such member participates in the Oklahoma Law Enforcement |
| |
22|Deferred Option Plan pursuant to Section 2-305.2 of this title, such |
| |
23|member's disability pension provided pursuant to this subsection |
| |
24|shall be adjusted as provided in Section 2-305.2 of this title to |
| |
Req. No. 384 Page 57
___________________________________________________________________________
1|account for such member's participation in the Oklahoma Law |
| |
2|Enforcement Deferred Option Plan. |
| |
3| G. A member who meets the definition of disability as defined |
| |
4|in Section 2-300 of this title and whose disability occurred prior |
| |
5|to the member's normal retirement date but after completing three |
| |
6|(3) years of vesting service and not by reason of the performance of |
| |
7|the member's duties or as a result of the member's willful |
| |
8|negligence shall receive a monthly benefit equal to two and one-half |
| |
9|percent (2 1/2%) of final average salary multiplied by the number of |
| |
10|years of the member's credited service. |
| |
11| H. Payment of a disability pension shall commence as of the |
| |
12|first day of the month coinciding or next following the date of |
| |
13|retirement and shall continue as long as the member meets the |
| |
14|definition of total and permanent disability provided in this |
| |
15|section. |
| |
16| I. For the purpose of determining the member's disability under |
| |
17|subsection E, F or G of this section, the member shall be required |
| |
18|by the Board to be examined by a minimum of two recognized |
| |
19|physicians selected by the Board to determine the extent of the |
| |
20|member's injury or illness. The examining physicians shall furnish |
| |
21|the Board a detailed written report of the injury or illness of the |
| |
22|examined member establishing the extent of disability and the |
| |
23|possibilities of the disabled member being returned to his or her |
| |
24|regular duties or an alternate occupation or service covered by the |
| |
Req. No. 384 Page 58
___________________________________________________________________________
1|System after a normal recuperation period. The Board shall require |
| |
2|all retired disabled members who have not attained their normal |
| |
3|retirement date to submit to a physical examination once each year |
| |
4|for a minimum of three (3) years following retirement. The Board |
| |
5|shall select a minimum of two physicians to examine the retired |
| |
6|members and pay for their services from the fund. Any retired |
| |
7|disabled member found no longer disabled by the examining physicians |
| |
8|to perform the occupation of the member or an alternate occupation |
| |
9|or service covered by the System shall be required to return to duty |
| |
10|and complete twenty (20) years of service as provided in subsection |
| |
11|A of this section, or forfeit all his or her rights and claims under |
| |
12|Section 2-300 et seq. of this title. |
| |
13| J. The disability benefit under this section shall be for the |
| |
14|lifetime of the member unless such member is found no longer |
| |
15|disabled pursuant to subsection I of this section. Such member |
| |
16|shall not be entitled to the retirement benefit pursuant to |
| |
17|subsection A of this section unless such member returns to active |
| |
18|duty and is eligible for a retirement benefit as provided in |
| |
19|subsection A of this section. |
| |
20| K. At the postoffer, preemployment physical examination |
| |
21|required under paragraph 6 of Section 2-300 of this title, the |
| |
22|physician selected by the Board shall determine the extent to which |
| |
23|a new member is disabled. If a member is determined to be partially |
| |
24|disabled, the physician shall assign a percentage of disability to |
| |
Req. No. 384 Page 59
___________________________________________________________________________
1|such partial disability. If such member then becomes entitled to a |
| |
2|disability benefit under either subsection E or subsection G of this |
| |
3|section, the benefit payable shall be reduced by the percentage |
| |
4|which such member was determined to be disabled at the postoffer, |
| |
5|preemployment physical unless the Board makes a determination that |
| |
6|the initially determined percentage of disability at the |
| |
7|preemployment physical examination is unrelated to the reason for |
| |
8|the disability currently sought pursuant to subsection E or |
| |
9|subsection G of this section. Upon employment, the member shall |
| |
10|disclose to the Board any disability payments received from any |
| |
11|source. The amount of disability to be paid to any member cannot |
| |
12|exceed one hundred percent (100%) disability from all sources. The |
| |
13|provisions of this subsection shall apply only to members whose |
| |
14|effective date of membership is on or after July 1, 2000. |
| |
15| L. In addition to the pension provided for under subsection F |
| |
16|of this section, if the member has one or more children under the |
| |
17|age of eighteen (18) years or under the age of twenty-two (22) years |
| |
18|if the child is enrolled full time in and is regularly attending a |
| |
19|public or private school or any institution of higher education, |
| |
20|Four Hundred Dollars ($400.00) a month shall be paid from the Fund |
| |
21|for the support of each surviving child to the member or person |
| |
22|having the care and custody of such children until each child |
| |
23|reaches the age of eighteen (18) years or reaches the age of |
| |
24|twenty-two (22) years if the child is enrolled full time in and is |
| |
Req. No. 384 Page 60
___________________________________________________________________________
1|regularly attending a public or private school or any institution of |
| |
2|higher education. |
| |
3| M. Notwithstanding any other provisions in Section 2-300 |
| |
4|through 2-315 of this title, in order to be eligible to receive |
| |
5|disability benefits, a member who meets the definition of disability |
| |
6|as defined in paragraph 11 of Section 2-300 of this title shall file |
| |
7|the member's completed application for disability benefits with the |
| |
8|System before such member's date of termination from service and |
| |
9|provide such additional information that the System's rules require |
| |
10|within six (6) months of the System's receipt of such application. |
| |
11|If the member's completed application for disability benefits is not |
| |
12|filed with the System before the member's date of termination from |
| |
13|service or such additional information as is required under the |
| |
14|System's rules is not provided within six (6) months of the System's |
| |
15|receipt of such application, such member shall be eligible only for |
| |
16|such other benefits as are available to members of the System and |
| |
17|shall not be eligible to receive any disability benefits. For good |
| |
18|cause shown, the Board of Trustees may waive the requirement that |
| |
19|the disability application be filed before the member's date of |
| |
20|termination from service. In no event shall a member be eligible to |
| |
21|receive any disability benefit if the member's completed application |
| |
22|is filed more than six (6) months after the member's date of |
| |
23|termination from service. |
| |
24| |
| |
Req. No. 384 Page 61
___________________________________________________________________________
1| N. If the requirements of Section 2-305.1C of this title are |
| |
2|satisfied, a member who, by reason of disability or attainment of |
| |
3|normal retirement date or age, is separated from service as a public |
| |
4|safety officer with the member's participating employer may elect to |
| |
5|have payment made directly to the provider for qualified health |
| |
6|insurance premiums by deduction from his or her monthly disability |
| |
7|benefit or monthly retirement payment, after December 31, 2006, in |
| |
8|accordance with Section 402(1) of the Internal Revenue Code of 1986, |
| |
9|as amended. For distributions made after December 29, 2022, the |
| |
10|election provided for under Section 402(l) of the Internal Revenue |
| |
11|Code of 1986, as amended, may be made whether payment of the |
| |
12|premiums is made directly to the provider of the accident or health |
| |
13|plan or qualified long-term care insurance contract by deduction |
| |
14|from a distribution from the System or is made to the member. |
| |
15| SECTION 10. AMENDATORY 47 O.S. 2021, Section 2-305.1C, |
| |
16|is amended to read as follows: |
| |
17| Section 2-305.1C. A. A member who is an eligible retired |
| |
18|public safety officer and who wishes to have direct payments made |
| |
19|toward the member's qualified health insurance premiums from the |
| |
20|member's monthly disability benefit or monthly retirement payment |
| |
21|must make a written election in accordance with Section 402(1) of |
| |
22|the Internal Revenue Code of 1986, as amended, on the form provided |
| |
23|by the Oklahoma Law Enforcement Retirement System, as follows: |
| |
24| |
| |
Req. No. 384 Page 62
___________________________________________________________________________
1| 1. The election must be made after the member separates from |
| |
2|service as a public safety officer with the member's participating |
| |
3|employer; |
| |
4| 2. The election shall only apply to distributions from the |
| |
5|System after December 31, 2006, and to amounts not yet distributed |
| |
6|to the eligible retired public safety officer; |
| |
7| 3. Direct payments Payments from the System for an eligible |
| |
8|retired public safety officer's qualified health insurance premiums |
| |
9|made directly to the provider of such coverage can only be made from |
| |
10|the member's monthly disability benefit or monthly retirement |
| |
11|payment from the System and cannot be made from the Oklahoma Law |
| |
12|Enforcement Deferred Option Plan; and |
| |
13| 4. The aggregate amount of the exclusion from an eligible |
| |
14|retired public safety officer's gross income is Three Thousand |
| |
15|Dollars ($3,000.00) per calendar year. |
| |
16| B. As used in this section: |
| |
17| 1. "Eligible retired public safety officer" is a member who, by |
| |
18|reason of disability or attainment of normal retirement date or age, |
| |
19|is separated from service as a public safety officer with the |
| |
20|member's participating employer; |
| |
21| 2. "Public safety officer" means a member serving a public |
| |
22|agency in an official capacity, with or without compensation, as a |
| |
23|law enforcement officer, firefighter, chaplain, or a member of a |
| |
24|rescue squad or ambulance crew; and |
| |
Req. No. 384 Page 63
___________________________________________________________________________
1| 3. "Qualified health insurance premiums" means premiums for |
| |
2|coverage for the eligible retired public safety officer, the |
| |
3|eligible retired public safety officer's spouse, and dependents, as |
| |
4|defined in Section 152 of the Internal Revenue Code of 1986, as |
| |
5|amended, by an accident or health plan or a qualified long-term care |
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6|insurance contract, as defined in Section 7702B(b) of the Internal |
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7|Revenue Code of 1986, as amended. The health plan does not have to |
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8|be sponsored by the eligible retired public safety officer's former |
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9|participating employer. |
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10| C. The Board shall may promulgate such rules or procedures as |
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11|are necessary to implement the provisions of this section or to |
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12|facilitate a member's election under Section 402(l) of the Internal |
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13|Revenue Code of 1986, as amended. |
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14| SECTION 11. It being immediately necessary for the preservation |
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15|of the public peace, health or safety, an emergency is hereby |
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16|declared to exist, by reason whereof this act shall take effect and |
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17|be in full force from and after its passage and approval. |
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18| |
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19| 59-1-384 RD 1/18/2023 10:19:48 AM |
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20| |
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21| |
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22| |
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Req. No. 384 Page 64
