HB 1879 Summary

• Terminates the Retirement Freedom Act (defined contribution plan) for state employees effective November 1, 2025, returning participants to the defined benefit plan.

• Requires members with defined contribution accounts to make an irrevocable election within 120 days to either convert their account balance into service credit in the defined benefit plan (using actuarial cost), transfer to a tax-qualified plan, or select another IRS-approved disposition.

• Makes all defined contribution plan account balances 100% vested as of November 1, 2025, including employer matching amounts and investment gains.

• Modifies contribution requirements so employees transition from defined contribution contributions to defined benefit plan contributions, and employers cease defined contribution matching to resume defined benefit employer contributions per Section 920.

• Requires Internal Revenue Service approval before implementation and provides effective dates of October 1, 2025 for preliminary provisions and November 1, 2025 for main provisions; classified as nonfiscal under Oklahoma Pension Legislation Actuarial Analysis Act.