HB 2078 Summary

• Increases normal retirement eligibility for firefighters hired on or after November 1, 2013 from 20 years of service to 22 years of service AND attainment of age 50.

• Raises vesting requirement for new members from 10 years to 11 years of credited service to receive a vested benefit in lieu of accumulated contributions.

• Increases employee contribution rate from 8% to 9% of gross salary and employer/municipality contribution rate from 13% to 14% of payroll, effective November 1, 2013.

• Modifies Deferred Retirement Option Plan (DROP) for new members to earn interest at actual investment return less 1% (minimum actuarial assumed rate) instead of 2 percentage points below portfolio return; requires distribution of DROP balance by age 70½.

• Increases insurance premium tax allocation to Oklahoma Firefighters Pension and Retirement Fund from 34% to 36% for fiscal years beginning July 1, 2010 and thereafter.