Signed by Governor Mary Fallin

Vote Smart's Synopsis:

Vote to adopt a conference report that amends state employee retirement plans, effective November 1, 2014.

Highlights:

• Requires the Oklahoma Public Employees Retirement System (OPERS) to establish a “defined contribution retirement system” for individuals hired by any participating employer of the System beginning November 1, 2015 (Sec. 2). 

• Exempts certain public employees from the “defined contribution retirement system” including, but not limited to, the following public employees (Sec. 2): 
• Firefighters with the Oklahoma Military Department;
• District attorneys or other employees of the district attorney’s office; and
• Correctional, probation, and parole officers with the Department of Corrections.

• Requires employee contributions to the “defined contribution retirement system” to consist of at least 3 percent of compensation and be in the form of salary deductions (Secs. 4 & 6).

• Requires employee contributions to the “defined contribution retirement system” that are eligible for an employer match to consist of up to 7 percent of compensation (Sec. 4).

• Requires employees participating in the “defined contribution retirement system” to be vested with respect to the employer matching amounts according to the following schedule based on years of participating service (Sec. 7):
• 20 percent for the first year;
• 40 percent for the second year;
• 60 percent for the third year;
• 80 percent for the fourth year; and 
• 100 percent for the fifth year and each year thereafter.

• Authorizes participating employees to have investment discretion over his or her contributions, and all of his or her employer contributions, to the account (Sec. 7).

• Requires the Board of Trustees of OPERS to take any action that is “reasonable and necessary” for the “defined contribution retirement system” to be recognized as a tax-qualified plan stated in the federal tax code (Sec. 3).

• Requires the Board of Trustees of OPERS to contract with 1 or more business entities to create a “range of choices” regarding investment of funds deposited into “defined contribution retirement system” accounts (Sec. 9).

Full Bill Text

Vote Smart's Synopsis:

Vote to adopt a conference report that amends state employee retirement plans, effective November 1, 2014.

Highlights:

• Requires the Oklahoma Public Employees Retirement System (OPERS) to establish a “defined contribution retirement system” for individuals hired by any participating employer of the System beginning November 1, 2015 (Sec. 2). 

• Exempts certain public employees from the “defined contribution retirement system” including, but not limited to, the following public employees (Sec. 2): 
• Firefighters with the Oklahoma Military Department;
• District attorneys or other employees of the district attorney’s office; and
• Correctional, probation, and parole officers with the Department of Corrections.

• Requires employee contributions to the “defined contribution retirement system” to consist of at least 3 percent of compensation and be in the form of salary deductions (Secs. 4 & 6).

• Requires employee contributions to the “defined contribution retirement system” that are eligible for an employer match to consist of up to 7 percent of compensation (Sec. 4).

• Requires employees participating in the “defined contribution retirement system” to be vested with respect to the employer matching amounts according to the following schedule based on years of participating service (Sec. 7):
• 20 percent for the first year;
• 40 percent for the second year;
• 60 percent for the third year;
• 80 percent for the fourth year; and 
• 100 percent for the fifth year and each year thereafter.

• Authorizes participating employees to have investment discretion over his or her contributions, and all of his or her employer contributions, to the account (Sec. 7).

• Requires the Board of Trustees of OPERS to take any action that is “reasonable and necessary” for the “defined contribution retirement system” to be recognized as a tax-qualified plan stated in the federal tax code (Sec. 3).

• Requires the Board of Trustees of OPERS to contract with 1 or more business entities to create a “range of choices” regarding investment of funds deposited into “defined contribution retirement system” accounts (Sec. 9).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that amends state employee retirement plans, effective November 1, 2014.

Highlights:

• Requires the Oklahoma Public Employees Retirement System to establish a  “defined contribution based system” for state employees (Sec. 2).

• Requires the Board of Trustees of the System to take “reasonable and necessary action” for the defined contribution system to be recognized as a tax-qualified plan stated in the federal tax code (Sec. 3).

• Requires employee contributions to the defined contribution system be at least 3 percent of the employee’s compensation (Sec. 4).

• Requires employee contributions eligible for an employer match to consist of no more than 7 percent of the employee’s compensation (Sec. 4).

• Requires all employee contributions to the defined contribution system be in the form of deductions from the employee’s salary (Sec. 6).

• Requires the Board of Trustees to contract with 1 or more business entities to create a range of investment choices for the defined contribution system accounts (Sec. 9).

• Authorizes a contribution system member to have investment discretion over his or her contributions and the employer’s contributions to the system (Sec. 7).

Full Bill Text