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Bill > HB1258
OK HB1258
OK HB1258Public retirement systems; Defined Contribution Retirement Plan for Teachers; Teachers' Retirement System of Oklahoma; defined contribution system; participation; election; service accrual; employee contribution amount; salary deductions; employer matching contributions; costs; vesting schedule; Board of Trustees; investment; deposit; defined benefit plan; offsets; qualified domestic orders; term; alternate payees; restrictions; rules; minimum salary schedule; codification; effective date.
summary
Introduced
02/03/2025
02/03/2025
In Committee
02/04/2025
02/04/2025
Crossed Over
Passed
Dead
Introduced Session
2025 Regular Session
Bill Summary
An Act relating to public retirement systems; enacting the Defined Contribution Retirement Plan for Teachers; imposing duty on the Teachers' Retirement System of Oklahoma to establish defined contribution system; specifying persons eligible for participation in system; allowing employee to make certain election; prescribing procedures related to date of service accrual; requiring defined contribution system to be qualified pursuant to provisions of the Internal Revenue Code of 1986, as amended; prescribing minimum employee contribution amount; prescribing maximum employee contribution amount; providing for salary deductions for employee contributions; providing for employer matching contributions; specifying amount of employer matching contributions; prescribing procedures related to employer matching contributions; providing for modifications to matching amounts; providing for payment of certain costs related to administration of defined contribution system administration; providing for vesting schedule; imposing duty on Board of Trustees of the Teachers' Retirement System of Oklahoma with respect to investment of funds in defined contribution system accounts; providing for payment of certain revenues to the Teachers' Retirement System of Oklahoma; providing for deposit of funds with existing defined benefit plan; providing for effect of enactment on certain rights; prohibiting certain collection activity with respect to funds; authorizing offsets; providing for enforcement of qualified domestic orders; defining term; prescribing procedures with respect to alternate payees; prescribing content; imposing restrictions; authorizing the Board to promulgate rules; amending Section 1, Chapter 289, O.S.L. 2023 RBH No. 12184 (70 O.S. Supp. 2024, Section 18-114.15), which relates to the minimum salary schedule; modifying provisions of the minimum salary schedule; providing for codification; and providing an effective date.
AI Summary
This bill establishes a new defined contribution retirement system for teachers in Oklahoma who are hired on or after November 1, 2024. Teachers will be required to contribute a minimum of 4.5% of their salary to the retirement plan, with employers matching contributions at 6% or 7% depending on the employee's contribution level. Participants will have investment discretion over their accounts and will vest in employer contributions gradually over five years, with 100% vesting after five years of service. Employees will have a one-time, irrevocable option to elect to participate in the traditional defined benefit retirement system instead of this new defined contribution plan. The bill requires the Teachers' Retirement System of Oklahoma to ensure the plan is tax-qualified and offers a range of investment options, including potential lifetime income products like annuities. The system also includes provisions for handling qualified domestic orders (such as dividing retirement assets in divorce) and allows the Legislature to adjust employer matching contributions. Any difference between the traditional employer contribution rate and the new defined contribution match will be deposited into the existing defined benefit pension plan to help reduce its liabilities. The new retirement system will become effective on August 31, 2025, and is designed to provide teachers with more flexibility and control over their retirement savings.
Committee Categories
Business and Industry, Government Affairs
Sponsors (2)
Last Action
House Banking, Financial Services and Pensions Hearing (10:30:00 2/19/2025 Room 5s2) (on 02/19/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | http://www.oklegislature.gov/BillInfo.aspx?Bill=hb1258&Session=2600 |
| State Bill Page | http://www.oklegislature.gov/BillInfo.aspx?Bill=hb1258&Session=2500 |
| Fiscal Note/Analysis - House: Introduced | https://www.oklegislature.gov/cf_pdf/2025-26%20SUPPORT%20DOCUMENTS/BILLSUM/House/HB1258%20INT%20BILLSUM.PDF |
| Fiscal Note/Analysis - House: Introduced | https://www.oklegislature.gov/cf_pdf/2025-26%20SUPPORT%20DOCUMENTS/BILLSUM/House/HB1258%20INT%20BILLSUM.PDF |
| BillText | https://www.oklegislature.gov/cf_pdf/2025-26%20INT/hB/HB1258%20INT.PDF |
| BillText | https://www3.oklegislature.gov/cf_pdf/2025-26%20INT/hB/HB1258%20INT.PDF |
| BillText | http://webserver1.lsb.state.ok.us/cf_pdf/2025-26%20INT/hB/HB1258%20INT.PDF |
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