OklahomaHB 1091Oklahoma 2026 Regular SessionHouseWALLET

Retirement; Oklahoma Firefighters Pension and Retirement System; term; death benefits; contributions; repayment; amortized payment; rules or procedures; transferred credited services; procedures; limitations; exception; military service credit; credited service; restrictions; volunteer; codification; emergency.

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Bill Overview

Analyzed Economic Effects

9 provisions identified: 2 benefits, 2 costs, 5 mixed.

Firefighter estates recover unpaid pension contributions

This protection covers firefighters awarded or eligible for retirement or disability benefits. If they die before benefit payments equal qualifying employee contributions, their estate receives the difference. If the last surviving beneficiary dies before that point, that beneficiary's estate receives the difference instead. Qualifying contributions include payments to buy back, transfer, or purchase service, including prior military service. The calculation excludes interest and the separate death benefit.

Military service protects firefighter pension benefits

The system must provide contributions, benefits, and service credit for qualified military service under federal pension rules. Beginning January 1, 2007, survivors of members who die during qualified military service receive additional system benefits. Survivors are treated as though the member returned to work and then left employment because of death. These additional survivor benefits exclude pension accruals for the military-service period.

Firefighter pensions stop counting after 30 years

Oklahoma's firefighter pension system can count no more than 30 years of service when calculating benefits. The benefit formula is 2.5% of final average salary for each credited year. This limits the calculated benefit to 75% of final average salary, even for members with longer service.

Firefighters face limits on military credit

Prior military credit requires full-time active duty, not training-only service, unless discharge was for a service-connected disability. Total purchases under the specified military-credit rules cannot exceed five years. This credit counts toward benefit amounts, not service needed for retirement, vesting, or Deferred Option Plan eligibility. Members or beneficiaries must apply for wartime service credit. Without an application, interest on extra benefits stops one year after benefits become payable or July 1, 2000, whichever is later.

Firefighter military-credit purchases carry costs and limits

The Board prices prior military credit using the added expected pension cost, earliest retirement age, and its interest and survival assumptions. Paid members need at least 30 months of active paid membership; price quotes last 90 days unless approved installments begin. Payments can combine certified checks, eligible non-Roth plan transfers, and direct rollovers from eligible plans or IRAs. Roth and specified after-tax funds cannot be used. Volunteers can buy volunteer credit and apply eligible earlier payments toward paid credit after meeting the 30-month paid-membership requirement.

Firefighter refunds include purchases, exclude interest

Firefighters who leave before normal retirement, for reasons other than death or disability, can apply for a refund. Refunds include member contributions and qualifying payments to buy back, transfer, or purchase prior military service credit. They exclude interest earned or paid on those amounts. City and state contributions, and interest on them, are also excluded. Members cannot withdraw contributions while employed by a participating municipality.

Firefighter repayments cost more, offer flexibility

Returning firefighters can restore withdrawn contributions and benefits by repaying the withdrawn amount plus interest. Annual interest rises from 5% to 10% and runs from withdrawal through repayment. Members can pay with cash, trustee-to-trustee transfers, or direct rollovers from eligible non-Roth 403(b), 457(b), or 401(a) plans. They can combine these methods, but cannot use after-tax retirement-plan funds.

Firefighter service installments add interest, payment risks

The Board can approve service-purchase installments lasting up to 60 months, or another approved payment method. Installments use after-tax payroll deductions, with interest capped at the system's assumed investment earnings rate. If payments stop, or employment ends through leaving, retirement, or death, credit is reduced to the share paid, excluding interest. Members have 90 days after the first such event to pay the remaining balance, including interest for military-credit purchases. Retirement benefits are held until the balance is paid or that 90-day period ends.

Firefighter service transfers face payment deadlines

To buy transferred service, firefighters must be active paid members with at least 30 months of active paid membership. Price quotes last 90 days; members must pay or start approved installments, or reapply for a new quote. Payment must arrive before benefits begin, except under the installment-payment exception. Members can combine certified checks, eligible trustee transfers, and direct rollovers for timely purchases or eligible payments on installment balances. Roth funds, after-tax retirement-plan or IRA funds, and Coverdell education accounts cannot be used.

Sponsors & Cosponsors

Sponsor

Mike Kelley
Republican • House

Cosponsors

Todd Gollihare
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 210 • No: 1

Senate vote • 5/1/2025

SENATE

Yes: 44 • No: 1

Senate vote • 5/1/2025

THIRD READING

Yes: 45 • No: 0

Senate vote • 4/24/2025

Committee vote: Business & Insurance

Yes: 9 • No: 0

House vote • 3/13/2025

THIRD READING

Yes: 88 • No: 0

House vote • 3/4/2025

DO PASS

Yes: 17 • No: 0

House vote • 2/19/2025