RBS No. 528 An Act ENROLLED SENATE BILL NO. 683 By: Kidd of the Senate and Lepak 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; requiring nonclassified optional personn el make certain election to participate in System; providing an effective date ; and declaring an emergency. SUBJECT: Teachers’ retirement 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: RBS No. 528 ENR. S. B. NO. 683 Page 2 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: (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 nonclassified 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 or 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; (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. RBS No. 528 ENR. S. B. NO. 683 Page 3 2. If an eligible employee elects to opt out of particip ation 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 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 RBS No. 528 ENR. S. B. NO. 683 Page 4 she shall thereupon cease to be a member. The provisions of this paragraph shall not apply to any m ember of the Teachers’ Retirement 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. SECTION 2. This act shall become ef fective July 1, 2021. SECTION 3. It being immediately necessary for the preservation of the public peace, health or safety, an emergency is hereby declared to exist, by reason whereof this act shall take effect and be in full force from an d after its passage and approval. RBS No. 528 ENR. S. B. NO. 683 Page 5 Passed the Senate the 29th day of April, 2021. Presiding Officer of the Senate Passed the House of Representatives the 13th day of April, 2021. Presiding Officer of the House of Representatives OFFICE OF THE GOVERNOR Received by the Office of the Governor this _______ _____________ day of _________________ __, 20_______, at _______ o'clock _______ M. By: _______________________________ __ Approved by the Governor of the State of Oklahoma this _____ ____ day of ___________________, 20_______, at _______ o'clock _______ M. _________________________________ Governor of the State of Oklahoma OFFICE OF THE SECRETARY OF STATE Received by the Office of the Secretary of State this _______ ___ day of __________________, 20 _______, at _______ o'clock _______ M. By: _______________________________ __