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Bill > HB1879

OK HB1879

OK HB1879
Public retirement systems; Oklahoma Pension Legislation Actuarial Analysis Act; Oklahoma Public Employees Retirement System; defined contribution plan; defined benefit plan; effective dates.

summary

Introduced
02/03/2025
In Committee
02/06/2025
Crossed Over
Passed
Dead

Introduced Session

2025 Regular Session

Bill Summary

An Act relating to public retirement systems; amending 62 O.S. 2021, Section 3103, as last amended by Section 127 Chapter 452, O.S.L. 2024 (62 O.S. Supp. 2024, Section 3103), which relates to the Oklahoma Pension Legislation Actuarial Analysis Act; modifying definitions; imposing conditions related to approvals by the Internal Revenue Service; providing for termination of provisions of the Retirement Freedom Act; providing for cessation of certain employee contributions; requiring employee contributions pursuant to provisions of defined benefit plan; providing for cessation of certain employer contributions; requiring employer contributions pursuant to provisions of defined benefit plan; authorizing management of defined contribution plan accounts for certain period of time; requiring irrevocable election with regard to defined contribution plan account balances; providing for termination of effect of provisions of the Retirement Freedom Act; providing exceptions; providing for vesting treatment of defined contribution plan account balances as of designated date; providing for computation of service credit in defined benefit plan based on purchase of service at actuarial cost; amending 74 O.S. 2021, Sections 902, as last amended by Section 1, Chapter 280, O.S.L. 2024, 913.4, 920 and 1707 (74 O.S. Supp. 2024, Section 902), which relate to the Oklahoma Public Employees Retirement System and the Deferred Savings Incentive Plan; modifying provisions related to participation in defined contribution plan; providing for participating service credit resulting from purchase at actuarial cost; modifying provisions related to membership of elected officials in defined contribution plan; modifying provisions related to payment of employer contributions; modifying provisions related to participation in deferred compensation plan; providing for codification; and providing effective dates.

AI Summary

This bill addresses changes to the Oklahoma Public Employees Retirement System (OPERS), specifically focusing on terminating the existing defined contribution retirement plan and returning participants to the defined benefit plan. The key provisions include: requiring members of the defined contribution plan to cease employee contributions and begin participating in the defined benefit plan by November 1, 2025; allowing members to make an irrevocable election within 120 days to convert their defined contribution account balances into participating service credit in the defined benefit plan or transfer the balance to another qualified retirement plan; ensuring that members will be 100% vested in their account balances as of November 1, 2025, including employer matching amounts; and setting a limit on the amount of service credit that can be acquired through account balance transfer. The bill is contingent upon final approval by the Internal Revenue Service and will effectively terminate the defined contribution plan created under the Retirement Freedom Act, with most provisions becoming effective on November 1, 2025. The legislation aims to streamline the retirement system for state employees by consolidating them back into the traditional defined benefit plan.

Committee Categories

Business and Industry, Government Affairs

Sponsors (3)

Last Action

Referred to Rules (on 02/06/2025)
(1 Companion Bills)

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