RBS No. 528
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ENGROSSED SENATE
BILL NO. 683 By: Kidd of the Senate
and
McBride of the House
An Act relating to teachers’ retirement; amending 70
O.S. 2011, Section 17-103, as amended by Section 1,
Chapter 141, O.S.L. 2019 ( 70 O.S. Supp. 2020, Section
17-103), which relates to membership in the Teachers’
Retirement System of Oklahoma; modifying requirement
for nonclassified optional personnel to join System;
removing requirement for permitting certain
contributions; authorizing certain nonclassified
optional personnel to join System upon hiring;
updating statutory language ; specifying procedures
for nonclassified optional personnel to join or opt
out of System; specifying certain required
contributions be made by certain employees and
employers; construing provision; specifying election
to opt out of System be permanent; providing
exception; and requiring nonclassified optional
personnel make certain electi on to participate in
System.
BE IT ENACTED BY THE PEOPLE OF TH E STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 70 O.S. 2011, Section 17 -103, as
amended by Section 1, Chapter 141, O.S.L. 2019 (70 O.S. Supp. 2020,
Section 17-103), is amended to read as follows:
Section 17-103. Except as provided in the Alternat e Retirement
Plan for Comprehensive Universities Act, the membership of the
retirement system shall consist of the following: RBS No. 528
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(1) A. All classified personnel shall become members of the
retirement system as a condition of their employment;
(2) All B. For the period from August 2, 1969, to the
effective date of this act, all full-time nonclassified optional
personnel regularly employed for more than one (1) year may join the
Teachers’ Retirement System of Oklahoma subject to the rules and
regulations adopted pursuant to this act. Subject to the outcome of
the private letter ruling request (2003) submitted by the Board of
Trustees to the Internal Revenue S ervice (2001), the retirement
system shall permit eligible n onclassified optional personnel who
have ceased to make otherwise required employee contributions after
having made an election to become a member of the retirement system
to resume employee contr ibutions. No service shall be credited to
any such member for any period of time during which employee
contributions were not made; the Teachers' Retirement System . On or
after the effective date of this act, all nonclassified optional
personnel regularly employed for twenty (20) hours o r more per week
may join the System upon hiring, subject to the provisions of
subsection C of this section and the rules and regulations adopted
by the System pursuant to this act .
(3) All persons who shall become classified personnel or who
are regularly employed in any school system as new classified
personnel after July 1, 1943, hereof, shall become members of the
retirement system as a condition of their employment; RBS No. 528
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(4) All other regular school employees may join the Teachers ’
Retirement System su bject to the rules and regulations as may be
adopted by the Board of Trus tees of the Teachers’ Retirement System;
C. 1. A nonclassified optional employee shall have thirty (30)
days from the initial date of hire to make a one -time irrevocable
written election to opt out of participation in the System. If an
eligible employee fails to make an election within the thirty-day
period, the eligible employee shall be deemed to participate in the
System.
2. If an eligible employee elects to opt out of participati on
in the System, the employee shall not make any required employee
contributions to the System and his or her employer shall not make
any required employer contributions to the System .
3. If an eligible nonclassified optional employee elects to
participate in the System, the employee shall make employee
contributions to the System pursuant to Section 17-116.2 of this
title and the employer shall make employer contributions to the
System pursuant to Secti on 17-108.1 of this title. Nothing in this
paragraph shall be construed to prohibit the employer from making
the contribution of the employee to the System on behalf of the
employee.
4. A nonclassified optional employee who op ts out of
participation in the System shall be ineligible for future
participation in the System; provided, however, that if the employee RBS No. 528
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is hired for a classified position, he or she shall become a member
of the System pursuant to subsection A of this section but shall not
be eligible for prior service credit for service performed while
employed in a nonclassified position during which the employee opte d
out of participation in the System.
5. Any nonclassified optional employee employed on the
effective date of this act shall make an irrevocable written
election to participate in or opt out of the System pursuant to
paragraph 1 of this subsection. If the employee fails to make an
election within thirty (30) days from the effective date of this
act, the employee shall be deemed to participate in the System ,
subject to the provisions of paragraph 3 of this subsection.
(5) D. The Board of Trustees may, in its discretion, deny the
right to become members to any class of members whose compensation
is only partly paid by the state, or who is serving on a temporary
or other than per annum basis, and it also may, in its discretion,
make optional with members in any such class their individual
entrance into the retirement system ;.
(6) E. Should any member, with less than ten (10) years of
teaching service in Oklahoma, in any period of six (6 ) consecutive
years after becoming a member be absent from service more than five
(5) years, withdraw his or her contributions, retire or die, he or
she shall thereupon cease to be a member. The provisions of this
paragraph shall not apply to any member o f the Teachers’ Retirement RBS No. 528
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System who has been a member of such classes of military services as
may be approved by the Board of Trustees, until a period of one and
one-half (1 1/2) years from date of termination of such service
shall have elapsed; and.
(7) F. Effective November 1, 2019, a retired member of the
Teachers’ Retirement System who becomes employed by the State
Department of Education for the first time on or after November 1,
2019, shall have the option to remain a member of the Teachers ’
Retirement System subject to any applicable limitations placed on
retired members returning to work or may choose to participate in
the Oklahoma Public Employees Retirement System as an active member.
Passed the Senate the 11th day of March, 2021.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of ______ ____,
2021.
Presiding Officer of the House
of Representatives