Labor & Employment (Retirement Benefits)

HB 3313 establishes a new defined contribution retirement plan for Oklahoma public employees hired on or after November 1, 2015, replacing the traditional defined benefit pension for these workers. It requires a minimum 4.5% employee contribution (with a 6% employer match), allows higher voluntary contributions up to 7%, and gives participants investment choices through 401(a) and 457(b) plan structures. The bill excludes certain employees, including district attorneys, county/city officials, and some hospital staff, from this new system. Key provisions include customizable benefit forms, employer matching based on contribution rates, and requirements for the Board of Trustees to maintain tax-qualified plan status.

SB 1795 restricts retirement benefits for certain Oklahoma public employees who face felony charges. It applies to members of four state retirement systems (Law Enforcement, Public Employees, Teachers', and Justices/Judges) who are formally charged with a felony in court. The bill requires prosecutors to notify the retirement system within 48 hours of a felony charge, at which point the system must immediately block access to retirement funds and reject any payment claims. Employees cleared of charges (found not guilty) regain full benefit access under this law. The bill takes effect November 1, 2026.

HB 3332 creates a new defined contribution retirement plan for Oklahoma teachers hired on or after November 1, 2026, replacing the existing defined benefit system for these new employees. Certified teachers and school staff who start working after this date must choose between the new plan and the traditional retirement system through a one-time, irrevocable election. Under the new plan, employees and employers contribute to personal retirement accounts, with benefits based on contributions and investment returns rather than final salary. The Teachers' Retirement System will manage the plan’s trust, investment options, and account distributions, while current teachers remain in the existing defined benefit system.

HB 1258 creates a new defined contribution retirement plan for Oklahoma teachers hired on or after November 1, 2024. Teachers must make a one-time irrevocable election to join this plan, which replaces the existing defined benefit system for them; those who don’t elect it default to the current retirement system. Employees contribute a mandatory minimum of 4.5% of salary, with employers matching 6% (increasing to 7% if employees contribute more), all managed in tax-qualified retirement accounts. The plan prevents accrual of service credits under the old system, and participation is binding for all future service with participating employers.