HB 2630 Summary

• Establishes the "Retirement Freedom Act" creating a defined contribution system for Oklahoma Public Employees Retirement System (OPERS) members hired after November 1, 2015

• Employees in defined contribution plan contribute minimum 3% of compensation (mandatory) with option to contribute up to 7% to receive employer matching contributions equal to their contribution rate

• Employers must remit matching contributions within 5 business days of employee payroll; differential amounts between defined benefit and defined contribution employer costs go to defined benefit plan to reduce unfunded liabilities

• New statewide elected officials and legislators hired after November 1, 2015 must participate in defined contribution system and accrue no service credit in the defined benefit plan

• Employees are 100% vested in their own contributions and gains/losses; employer matching contributions vest on a 5-year schedule (20% per year, reaching 100% by year 5)