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OK HB1258
Bill
Status
2/3/2025
Primary Sponsor
Neil Hays
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AI Summary
HB 1258 Summary
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Establishes an optional defined contribution retirement system for certified teachers hired on or after November 1, 2024, with a one-time irrevocable election to participate in either the defined contribution or defined benefit plan.
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Requires minimum employee contributions of 4.5% of compensation, with employers matching at 6% (or 7% if employee contributes 7% or more), with all contributions placed in either 401(a) or 457(b) plans as determined by the Board.
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Implements a five-year vesting schedule for employer matching contributions (20% Year 1 through 100% Year 5), while employee contributions remain 100% vested at all times.
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Directs the System to deposit excess employer contributions into the existing defined benefit plan to reduce liabilities, and establishes procedures for qualified domestic orders and plan administration.
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Becomes effective August 31, 2025, and is classified as non-fiscal legislation as it does not increase the Accrued Actuarial Liability.
Legislative Description
Public retirement systems; Defined Contribution Retirement Plan for Teachers; Teachers' Retirement System of Oklahoma; defined contribution system; participation; election; service accrual; employee contribution amount; salary deductions; employer matching contributions; costs; vesting schedule; Board of Trustees; investment; deposit; defined benefit plan; offsets; qualified domestic orders; term; alternate payees; restrictions; rules; minimum salary schedule; codification; effective date.
Last Action
Referred to Banking, Financial Services and Pensions
2/4/2025