OK
Oklahoma Senate Bill SB891

Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB891 Compare Versions

Only one version of the bill is available at this time.
OldNewDifferences
11
22 RBS No. 1173
33
44 Req. No. 1173 Page 1 1
55 2
66 3
77 4
88 5
99 6
1010 7
1111 8
1212 9
1313 10
1414 11
1515 12
1616 13
1717 14
1818 15
1919 16
2020 17
2121 18
2222 19
2323 20
2424 21
2525 22
2626 23
2727 24
2828 1
2929 2
3030 3
3131 4
3232 5
3333 6
3434 7
3535 8
3636 9
3737 10
3838 11
3939 12
4040 13
4141 14
4242 15
4343 16
4444 17
4545 18
4646 19
4747 20
4848 21
4949 22
5050 23
5151 24
5252
5353 STATE OF OKLAHOMA
5454
5555 1st Session of the 58th Legislature (2021)
5656
5757 SENATE BILL 891 By: Newhouse
5858
5959
6060
6161
6262
6363 AS INTRODUCED
6464
6565 An Act relating to public retirement systems;
6666 requiring Teachers’ Retirement System of Oklahoma to
6767 establish defined contribution syste m for certain
6868 persons; specifying persons eligible for
6969 participation in system; specifying date service in
7070 system begins; requiring Board to create or utilize
7171 certain plan; requiring defined contribution s ystem
7272 be qualified pursuant to provisions of the In ternal
7373 Revenue Code of 1986, as amended; prescribing minimum
7474 and maximum employee contribution amount s; specifying
7575 amount of employer matching contributions ; specifying
7676 procedures related to employer match ing
7777 contributions; providing for modifications to
7878 matching amounts; prescribing procedures for cost
7979 computation; providing for vesting schedule;
8080 providing for payment of certain costs related to
8181 defined contribution system administration; applying
8282 certain provision of Internal Revenue Code to certain
8383 employers; requiring Board of Trustees of Teachers ’
8484 Retirement System contract with certain entities to
8585 provide investment options ; specifying requirements
8686 for investment option s; providing for payment of
8787 certain revenues to System; providing for deposit of
8888 funds to existing defined benefit plan; providing for
8989 effect of enactment on certain rights; prohibiting
9090 certain collection activity with respect to funds;
9191 authorizing offsets; providing for enforcement o f
9292 qualified domestic orders; defining term; prescribing
9393 procedures with respect to alternate payees;
9494 prescribing content; imposing restrictions on
9595 qualified domestic orders ; exempting act from
9696 provisions of Employee Retirement Income Security Act
9797 of 1974; authorizing Board to promulgate rules;
9898 amending 70 O.S. 2011, Sections 17-108.1, as amended
9999 by Section 4, Chapter 129, O.S.L. 2016 ( 70 O.S. Supp.
100100 RBS No. 1173
101101
102102 Req. No. 1173 Page 2 1
103103 2
104104 3
105105 4
106106 5
107107 6
108108 7
109109 8
110110 9
111111 10
112112 11
113113 12
114114 13
115115 14
116116 15
117117 16
118118 17
119119 18
120120 19
121121 20
122122 21
123123 22
124124 23
125125 24
126126 1
127127 2
128128 3
129129 4
130130 5
131131 6
132132 7
133133 8
134134 9
135135 10
136136 11
137137 12
138138 13
139139 14
140140 15
141141 16
142142 17
143143 18
144144 19
145145 20
146146 21
147147 22
148148 23
149149 24
150150
151151 2020, Section 17-108.1) and 17-121, as amended by
152152 Section 607, Chapter 304, O.S.L. 2012 (70 O.S. Supp.
153153 2020, Section 17-121), which relate to employer
154154 contributions and the Teachers’ Retirement System
155155 Deferred Savings Incentive Plan ; modifying provisions
156156 related to employer contributions; requiri ng payment
157157 of certain differential amount to the Teachers’
158158 Retirement System of Oklahoma for specified purpose ;
159159 providing for codification; and providing an
160160 effective date.
161161
162162
163163
164164
165165 BE IT ENACTED BY THE PEOP LE OF THE STATE OF OKLAHOMA:
166166 SECTION 1. NEW LAW A new section of law t o be codified
167167 in the Oklahoma Statutes as Section 17-123 of Title 70, unless there
168168 is created a duplication in numbering, reads as follows:
169169 A. The Teachers’ Retirement System of Oklahom a (System) shall
170170 establish a defined contribution system for those pe rsons who first
171171 become employed on or after November 1, 2022, in a full-time
172172 equivalent position or a position which is less than full -time but
173173 more than half-time position and which qualifies for employee
174174 benefits including, but not limited to, health insu rance and leave
175175 time by any participating employer of the System, as defined by
176176 paragraph (5) of Section 17-101 of Title 70 of the Oklahoma
177177 Statutes.
178178 B. The provisions of this act shall not be appl icable to
179179 nonclassified optional personnel, as defined in paragraph (4) of
180180 Section 17-101 of Title 70 of the Oklahoma Statutes .
181181 RBS No. 1173
182182
183183 Req. No. 1173 Page 3 1
184184 2
185185 3
186186 4
187187 5
188188 6
189189 7
190190 8
191191 9
192192 10
193193 11
194194 12
195195 13
196196 14
197197 15
198198 16
199199 17
200200 18
201201 19
202202 20
203203 21
204204 22
205205 23
206206 24
207207 1
208208 2
209209 3
210210 4
211211 5
212212 6
213213 7
214214 8
215215 9
216216 10
217217 11
218218 12
219219 13
220220 14
221221 15
222222 16
223223 17
224224 18
225225 19
226226 20
227227 21
228228 22
229229 23
230230 24
231231
232232 C. An employee described in subsection A of this section shall
233233 become a participant in the defined contribution system and the
234234 employee shall not accrue any service credit in the defined benefit
235235 system established pursuant to Section 17-102 et seq. of Title 70 of
236236 the Oklahoma Statutes.
237237 D. Employees who participate in the defined contribution system
238238 shall be deemed to begin service in the defined contribution system
239239 on the first day of the month following employ ment.
240240 E. An employee who begins participating in the defined benefit
241241 plan on or after November 1, 202 2, in one of the positions described
242242 in subsection B of this section, shall continue to participate in
243243 the defined benefit plan only as long as he or she continues to be
244244 employed in a position described in subsection B of this section.
245245 SECTION 2. NEW LAW A new section of law to be codified
246246 in the Oklahoma Statutes as Section 17-123.1 of Title 70, unless
247247 there is created a duplication in numbering, reads as follows:
248248 The Board of Trustees of the Teachers’ Retirement System of
249249 Oklahoma shall take whatever action is reasonable and necessary to
250250 have the defined contribution system authorized by this act to be
251251 recognized as a tax-qualified plan as that term is defined by
252252 Section 401 et seq. of Title 26 of the United States Code, or any
253253 other applicable provisions of federal law. The Board shall
254254 establish a plan or use an existing plan established under Se ction
255255 457(b) of Title 26 of the Uni ted States Code. The Board shall take
256256 RBS No. 1173
257257
258258 Req. No. 1173 Page 4 1
259259 2
260260 3
261261 4
262262 5
263263 6
264264 7
265265 8
266266 9
267267 10
268268 11
269269 12
270270 13
271271 14
272272 15
273273 16
274274 17
275275 18
276276 19
277277 20
278278 21
279279 22
280280 23
281281 24
282282 1
283283 2
284284 3
285285 4
286286 5
287287 6
288288 7
289289 8
290290 9
291291 10
292292 11
293293 12
294294 13
295295 14
296296 15
297297 16
298298 17
299299 18
300300 19
301301 20
302302 21
303303 22
304304 23
305305 24
306306
307307 whatever action is reasonable and necessary to obtain confirmation
308308 from the Internal Revenue Service that such 457(b) plan is
309309 consistent with the requirement s of Section 457(b).
310310 SECTION 3. NEW LAW A new section of law to be codified
311311 in the Oklahoma Statutes as Section 17-123.2 of Title 70 unless
312312 there is created a duplication in numbering, reads as follows:
313313 A. Employee contributions to the defined contributi on
314314 retirement system shall consist of a minimum of four and five-tenths
315315 percent (4.5%) of the employee’s pre-tax compensation.
316316 B. Employee contributions to the defined contribution
317317 retirement system that are eligible for an employer match shall not
318318 exceed a percentage, based on the employee ’s compensation, which
319319 would exceed the maximum amoun t allowed pursuant to Section 4 15 of
320320 the Internal Revenue Code of 1986, as amended .
321321 SECTION 4. NEW LAW A new section of law to be codified
322322 in the Oklahoma Statutes as Section 17-123.3 of Title 70, unless
323323 there is created a duplicati on in numbering, reads as follows:
324324 A. Except as otherwise provided by subsection B of this
325325 section, employers of employees who become participants in the
326326 defined contribution retirement system shall match the employee
327327 contribution paid on a monthly or more frequent basis at the rate of
328328 six percent (6.0%) based on the same compensation amount used to
329329 compute the employee contribution amount .
330330 RBS No. 1173
331331
332332 Req. No. 1173 Page 5 1
333333 2
334334 3
335335 4
336336 5
337337 6
338338 7
339339 8
340340 9
341341 10
342342 11
343343 12
344344 13
345345 14
346346 15
347347 16
348348 17
349349 18
350350 19
351351 20
352352 21
353353 22
354354 23
355355 24
356356 1
357357 2
358358 3
359359 4
360360 5
361361 6
362362 7
363363 8
364364 9
365365 10
366366 11
367367 12
368368 13
369369 14
370370 15
371371 16
372372 17
373373 18
374374 19
375375 20
376376 21
377377 22
378378 23
379379 24
380380
381381 B. If an employee selects a contribution rate of seven percent
382382 (7.0%) or more, but not higher than allowed pursuant to the maximum
383383 annual contribution limit prescribed by Section 415 of the Internal
384384 Revenue Code of 1986, as amended, the employer matching amount sha ll
385385 be seven percent (7.0%).
386386 C. The initial four and five-tenths percent (4.5%) employee
387387 contribution shall be the only mandatory contribution of an employee
388388 participating in the defined contribution retirement system created
389389 by this act. These funds shal l be placed by the System in either a
390390 401(a) plan or a 457(b) plan, to be determined by the Board to
391391 maintain the plan consistent with the Internal Revenue Code. Any
392392 employee contributions eligible to be matched under this section
393393 over the four and five-tenths percent (4.5%) initial contribution
394394 shall be considered voluntary deferrals of compensation and place d
395395 in a 457(b) plan. All employer matching funds shall be placed in a
396396 401(a) plan.
397397 D. Any contribution rate that is more than the four and five-
398398 tenths percent (4.5%) rate can be chosen by the participatin g
399399 employee upon the initial participation of the employee, and can
400400 only be changed once per calendar year during an option period as
401401 the Board determines. The employee contribution rate chosen shall
402402 continue until the next option period.
403403 E. The employer match as set forth in subsection A of this
404404 section may be increased at any time by the Legislature without
405405 RBS No. 1173
406406
407407 Req. No. 1173 Page 6 1
408408 2
409409 3
410410 4
411411 5
412412 6
413413 7
414414 8
415415 9
416416 10
417417 11
418418 12
419419 13
420420 14
421421 15
422422 16
423423 17
424424 18
425425 19
426426 20
427427 21
428428 22
429429 23
430430 24
431431 1
432432 2
433433 3
434434 4
435435 5
436436 6
437437 7
438438 8
439439 9
440440 10
441441 11
442442 12
443443 13
444444 14
445445 15
446446 16
447447 17
448448 18
449449 19
450450 20
451451 21
452452 22
453453 23
454454 24
455455
456456 affecting the then-existing rights of participating employees and
457457 beneficiaries in order to encourage participating employees to
458458 accumulate deferred income reserves for themselves and their
459459 dependents. The employer match may be decreased at any time by the
460460 Legislature without affecting the then-existing rights of
461461 participating employees and beneficiaries in order to provide
462462 funding as may be needed to reduce the unfunded liabilities of the
463463 defined benefit plan as set forth in Section 17-102 et seq. of Title
464464 70 of the Oklahoma Statutes, but shall not be less than six percent
465465 (6.0%) for any year during which the defined contribution plan is
466466 maintained.
467467 SECTION 5. NEW LAW A new sec tion of law to be codified
468468 in the Oklahoma Statutes as Section 17-123.4 of Title 70, unless
469469 there is created a duplication in numbering, reads as f ollows:
470470 A. Except as otherwise provided by this section, employers
471471 shall make payment of the required matchi ng amount as provided by
472472 this section within five (5) business days of the payroll pay date
473473 of the participating employee . The Teachers’ Retirement System of
474474 Oklahoma shall ensure the payment is credited to the defined
475475 contribution system account or accounts maintained on behalf of the
476476 participating employee as soon as possible.
477477 B. All employee contributions to the defined contribution
478478 system shall be effecte d by salary deductions from the salary of the
479479 employee and shall be remitted by the participating employer to the
480480 RBS No. 1173
481481
482482 Req. No. 1173 Page 7 1
483483 2
484484 3
485485 4
486486 5
487487 6
488488 7
489489 8
490490 9
491491 10
492492 11
493493 12
494494 13
495495 14
496496 15
497497 16
498498 17
499499 18
500500 19
501501 20
502502 21
503503 22
504504 23
505505 24
506506 1
507507 2
508508 3
509509 4
510510 5
511511 6
512512 7
513513 8
514514 9
515515 10
516516 11
517517 12
518518 13
519519 14
520520 15
521521 16
522522 17
523523 18
524524 19
525525 20
526526 21
527527 22
528528 23
529529 24
530530
531531 System for deposit into the defined contribution system account or
532532 accounts maintained on behalf of the employee.
533533 C. Participating employers whose salary deductions and employer
534534 contributions are not remitted to the System through the Offi ce of
535535 Management and Enterprise Services shall either:
536536 1. Send all such remittances by electronic funds transfer; or
537537 2. Place all such remittances in a b ank account from which the
538538 System can debit the amount due,
539539 both within five (5) business days of th e payroll pay date of the
540540 participating employee . Payroll data shall be remitted by the same
541541 deadline.
542542 D. Each employer shall cooperate with the Board of Trustees of
543543 the System to ensure that any necessa ry programming changes are made
544544 to the employer’s payroll system to carry out the requirements of
545545 this act.
546546 E. Each employer which has employees participating in t he
547547 defined contribution system shall pay to the System in the same
548548 manner and at the same ti me required for contributions under this
549549 section an amount to reimburse the cost of administration of the
550550 defined contribution system, as determined by the Board.
551551 1. The Board shall certify each year to participating employers
552552 the determined amount for th e administrative cost of the defined
553553 contribution system which will be required to be paid for each
554554 participant. The Board shall promulgate such rules as necessar y to
555555 RBS No. 1173
556556
557557 Req. No. 1173 Page 8 1
558558 2
559559 3
560560 4
561561 5
562562 6
563563 7
564564 8
565565 9
566566 10
567567 11
568568 12
569569 13
570570 14
571571 15
572572 16
573573 17
574574 18
575575 19
576576 20
577577 21
578578 22
579579 23
580580 24
581581 1
582582 2
583583 3
584584 4
585585 5
586586 6
587587 7
588588 8
589589 9
590590 10
591591 11
592592 12
593593 13
594594 14
595595 15
596596 16
597597 17
598598 18
599599 19
600600 20
601601 21
602602 22
603603 23
604604 24
605605
606606 implement the provisions of this su bsection and provide the
607607 methodology for the determin ation.
608608 2. Each employer shall pay at least monthly to the System the
609609 sum sufficient to satisfy the obligation under this section as
610610 certified by the Board.
611611 F. The funds held on behalf of each employee participating in
612612 the defined contribution system shal l consist of the amount in the
613613 account or accounts plus credits representing employer and employee
614614 contributions, profits, income and other increments attributab le to
615615 such contributions, and minus debi ts representing any losses, other
616616 decrements, or expens es under the system and any distributions made
617617 to the employee under the system.
618618 SECTION 6. NEW LAW A new section of law to be codified
619619 in the Oklahoma Statutes as Section 17-123.5 of Title 70, unless
620620 there is created a duplication in numbering, reads as follows:
621621 A. Participating employees shall at all times be vested at one
622622 hundred percent (100%) of their accounts containing solely thei r
623623 employee contributions , and the gains or losses on these
624624 contributions. Participating employee s will have investment
625625 discretion over these accoun ts within the available options offered
626626 by the Board of Trustees of the Oklahoma Teachers ’ Retirement
627627 System.
628628 B. Participating employees shall be vested with respect to the
629629 employer matching amounts , and the gains or losses on these funds,
630630 RBS No. 1173
631631
632632 Req. No. 1173 Page 9 1
633633 2
634634 3
635635 4
636636 5
637637 6
638638 7
639639 8
640640 9
641641 10
642642 11
643643 12
644644 13
645645 14
646646 15
647647 16
648648 17
649649 18
650650 19
651651 20
652652 21
653653 22
654654 23
655655 24
656656 1
657657 2
658658 3
659659 4
660660 5
661661 6
662662 7
663663 8
664664 9
665665 10
666666 11
667667 12
668668 13
669669 14
670670 15
671671 16
672672 17
673673 18
674674 19
675675 20
676676 21
677677 22
678678 23
679679 24
680680
681681 deposited into their defined contribution system account or accounts
682682 according to the following schedule based on years of participating
683683 service:
684684 Year 1 20%
685685 Year 2 40%
686686 Year 3 60%
687687 Year 4 80%
688688 Year 5 and thereafter 100%
689689 C. Participating employees will have investment discretion over
690690 all employer contributions.
691691 D. For purposes of determining a participating employee ’s right
692692 to withdraw employer matching contributions and any investment gains
693693 upon such employer contribution matching amounts, the vesting
694694 percentages apply at the end of each full year of service as
695695 described in subsection B of this section.
696696 E. For participating employees who do not select any investment
697697 options, the Board will establish defau lt investment options for the
698698 contributions received from participating employees and default
699699 investment options for matching employer contribution s.
700700 F. To the extent that participants lea ve employment and have
701701 not vested in all of the employer contributi ons, the nonvested
702702 employer contributions including any gains or losses, shall be
703703 immediately forfeited to the 401(a) plan and may be used to offset
704704 costs of administering the plan. Upon reemployment with an employer
705705 RBS No. 1173
706706
707707 Req. No. 1173 Page 10 1
708708 2
709709 3
710710 4
711711 5
712712 6
713713 7
714714 8
715715 9
716716 10
717717 11
718718 12
719719 13
720720 14
721721 15
722722 16
723723 17
724724 18
725725 19
726726 20
727727 21
728728 22
729729 23
730730 24
731731 1
732732 2
733733 3
734734 4
735735 5
736736 6
737737 7
738738 8
739739 9
740740 10
741741 11
742742 12
743743 13
744744 14
745745 15
746746 16
747747 17
748748 18
749749 19
750750 20
751751 21
752752 22
753753 23
754754 24
755755
756756 and satisfying the eligibility require ments to become a participant,
757757 the reemployed parti cipant shall receive credit for previous service
758758 and be vested at the same percentage the parti cipant was vested when
759759 service was previous ly terminated. However, under no circumstances
760760 shall the participant be entitled to any previously forfeited
761761 employer contributions.
762762 SECTION 7. NEW LAW A new section of law to be codified
763763 in the Oklahoma Statutes as Section 17-123.6 of Title 70, unless
764764 there is created a duplication in numbering, reads as follows:
765765 A. Each participating employer s hall pick up under the
766766 provisions of Section 414(h)( 2) of the Internal Revenue Code of
767767 1986, as amended, and pay th e contribution which the participating
768768 employee is required by law to make to the Teachers’ Retirement
769769 System of Oklahoma for all compensation earned after the date as of
770770 which an employee begi ns to participate in the defined contribu tion
771771 system. Although the contributions so picked up are designated as
772772 participating employee contributions, such contributions shall be
773773 treated as contributions being paid by the employer in lie u of
774774 contributions by the participating employee in determining tax
775775 treatment under the Internal Revenu e Code of 1986, as amended, and
776776 such picked-up contributions shall no t be includable in the gross
777777 income of the participating employee until such amounts are
778778 distributed or made available to the participating empl oyee or the
779779 beneficiary of the participatin g employee. The participating
780780 RBS No. 1173
781781
782782 Req. No. 1173 Page 11 1
783783 2
784784 3
785785 4
786786 5
787787 6
788788 7
789789 8
790790 9
791791 10
792792 11
793793 12
794794 13
795795 14
796796 15
797797 16
798798 17
799799 18
800800 19
801801 20
802802 21
803803 22
804804 23
805805 24
806806 1
807807 2
808808 3
809809 4
810810 5
811811 6
812812 7
813813 8
814814 9
815815 10
816816 11
817817 12
818818 13
819819 14
820820 15
821821 16
822822 17
823823 18
824824 19
825825 20
826826 21
827827 22
828828 23
829829 24
830830
831831 employee, by the terms of this System, shall not have any option to
832832 choose to receive the contributions so picked up directly and the
833833 picked-up contributions must be paid by the empl oyer to the System.
834834 B. Contributions by t he participating employee into a 457(b)
835835 plan may not be picked up by t he employer but shall be a voluntary
836836 deferral of the employee’s compensation. Participating employers
837837 within the System that are not eligible to participate in the
838838 Oklahoma Teachers’ Deferred Savings Incentive Plan under Section 17 -
839839 121 of Title 70 of the Oklahoma Statutes and have established 457 (b)
840840 plans for their employees, will have the obligation to e nsure that
841841 their employees do not exceed the maximum annual contributions to a
842842 457(b) plan under the Internal Revenue Code.
843843 SECTION 8. NEW LAW A new section of law to be codified
844844 in the Oklahoma Statutes as Section 17-123.7 of Title 70, unless
845845 there is created a duplicati on in numbering, reads as follows:
846846 The Board of Trustees of the Teachers’ Retirement System of
847847 Oklahoma shall contract with one or more business entities in order
848848 to create a range of choices regarding investment of funds deposited
849849 into defined contribution sys tem accounts. The investment options
850850 shall be substantially similar to the options provided to members of
851851 the System that maintain a Deferred Savings Incentive Plan account
852852 as offered by the System pursuant to the provisions of the Deferred
853853 Savings Incentive Plan . In selecting investment op tions for
854854 participants in the plan, the Board shall give due considerati on to
855855 RBS No. 1173
856856
857857 Req. No. 1173 Page 12 1
858858 2
859859 3
860860 4
861861 5
862862 6
863863 7
864864 8
865865 9
866866 10
867867 11
868868 12
869869 13
870870 14
871871 15
872872 16
873873 17
874874 18
875875 19
876876 20
877877 21
878878 22
879879 23
880880 24
881881 1
882882 2
883883 3
884884 4
885885 5
886886 6
887887 7
888888 8
889889 9
890890 10
891891 11
892892 12
893893 13
894894 14
895895 15
896896 16
897897 17
898898 18
899899 19
900900 20
901901 21
902902 22
903903 23
904904 24
905905
906906 offering investment options provided by busin ess entities that
907907 provide guaranteed lifetime income in retirement such as annuities,
908908 guaranteed investment contracts, or similar pro ducts. The Board may
909909 amend any of its existing contracts with its curre nt service
910910 providers to perform substantially the s ame type of service the
911911 provider is currently performing for the Board, in order to
912912 facilitate the timel y introduction of the new def ined contribution
913913 system created by this act. Thereafter, the contracti ng process for
914914 the selection of service providers c arrying out duties related to
915915 the administration of the plan shall be the same as the selection
916916 process for other providers selected by the Board under subsection D
917917 of Section 17-106.1 of Title 70 of the Oklahoma Statutes.
918918 SECTION 9. NEW LAW A new section of law to be codified
919919 in the Oklahoma Statutes as Section 17-123.8 of Title 70, unless
920920 there is created a du plication in numbering, reads as follows:
921921 A. Notwithstanding any other p rovision of the statutes
922922 governing the System to th e contrary, each participating employer
923923 shall remit to the Teachers’ Retirement System of Oklahoma the
924924 difference between the amoun t of money which would be remitted to
925925 the System using the employer cont ribution rate required by Section
926926 17-108 of Title 70 of the Oklahoma Statutes and the amount of money
927927 required for the participating employer to make the required
928928 matching contribution amount on behalf of a participating employee
929929 RBS No. 1173
930930
931931 Req. No. 1173 Page 13 1
932932 2
933933 3
934934 4
935935 5
936936 6
937937 7
938938 8
939939 9
940940 10
941941 11
942942 12
943943 13
944944 14
945945 15
946946 16
947947 17
948948 18
949949 19
950950 20
951951 21
952952 22
953953 23
954954 24
955955 1
956956 2
957957 3
958958 4
959959 5
960960 6
961961 7
962962 8
963963 9
964964 10
965965 11
966966 12
967967 13
968968 14
969969 15
970970 16
971971 17
972972 18
973973 19
974974 20
975975 21
976976 22
977977 23
978978 24
979979
980980 who participates in the defi ned contribution system authorized
981981 pursuant to the provisions of Section 5 of this act.
982982 B. The System shall deposit the monies remitted t o it by
983983 employers having participating empl oyees in the defined contribution
984984 system created by this act, as described by subsection A of this
985985 section, into the existing defined benefit pension plan authorized
986986 pursuant to Section 17-102 et seq. of Title 70 of the Oklahoma
987987 Statutes in order to reduce the liabilities of the defined benefit
988988 pension plan.
989989 SECTION 10. NEW LAW A new section of law to be co dified
990990 in the Oklahoma Statutes as Section 17-123.9 of Title 70, unless
991991 there is created a duplication in numbering, reads as fol lows:
992992 A. Except as otherwise provided by this section , no alteration,
993993 amendment, or repeal of this act shall affect the then-existing
994994 rights of participating employees and beneficiaries, but shall be
995995 effective only as to rights which would otherwise accr ue hereunder
996996 as a result of services rendered by an employee after such
997997 alteration, amendment, or repeal. Any benefits, fund, p roperty or
998998 rights created by or accruing to any person under the provisions of
999999 this act shall not be subject to execution, garn ishment or
10001000 attachment, or any other process or claim whatsoever, and shall be
10011001 unassignable, except as specifically provided by th is section.
10021002 Notwithstanding the foregoing, the Board of Trustees of the
10031003 Teachers’ Retirement System of Oklahoma may offset any amounts held
10041004 RBS No. 1173
10051005
10061006 Req. No. 1173 Page 14 1
10071007 2
10081008 3
10091009 4
10101010 5
10111011 6
10121012 7
10131013 8
10141014 9
10151015 10
10161016 11
10171017 12
10181018 13
10191019 14
10201020 15
10211021 16
10221022 17
10231023 18
10241024 19
10251025 20
10261026 21
10271027 22
10281028 23
10291029 24
10301030 1
10311031 2
10321032 3
10331033 4
10341034 5
10351035 6
10361036 7
10371037 8
10381038 9
10391039 10
10401040 11
10411041 12
10421042 13
10431043 14
10441044 15
10451045 16
10461046 17
10471047 18
10481048 19
10491049 20
10501050 21
10511051 22
10521052 23
10531053 24
10541054
10551055 by a participant in the plan or beneficiary to pay a judgmen t or
10561056 settlement against a participating employee or beneficiary for a
10571057 crime involving the Teachers’ Retirement System of Oklahoma, for a
10581058 fraud or breach of the participating employee ’s fiduciary duty to
10591059 the System, or for funds or mon ies incorrectly paid to a
10601060 participating employee or a beneficiary, provided s uch offset is in
10611061 accordance with the requirements of Section 401(a)(13) or similar
10621062 provisions of the Internal Revenue Code. Th e offset applies to any
10631063 assets held in the plan which may otherwise be payable to a
10641064 participating employee or beneficiary from th e plan administered by
10651065 the Board.
10661066 B. 1. The provisions of subsection A of this section shall not
10671067 apply to a qualified domest ic order as provided pursuant to this
10681068 subsection.
10691069 2. The term “qualified domestic order” means an order issued by
10701070 a district court of this state pursuant to the domestic relation
10711071 laws of the State of Oklahoma which relates to the provision of
10721072 marital property rights to a spouse or former spouse of a
10731073 participating employee or provision of support for a minor child or
10741074 children and which creates or recognizes the existence of the right
10751075 of an alternate payee, or assigns to an alternate payee the right,
10761076 to receive a portion of the funds payable with respect to a
10771077 participant in the plan.
10781078 RBS No. 1173
10791079
10801080 Req. No. 1173 Page 15 1
10811081 2
10821082 3
10831083 4
10841084 5
10851085 6
10861086 7
10871087 8
10881088 9
10891089 10
10901090 11
10911091 12
10921092 13
10931093 14
10941094 15
10951095 16
10961096 17
10971097 18
10981098 19
10991099 20
11001100 21
11011101 22
11021102 23
11031103 24
11041104 1
11051105 2
11061106 3
11071107 4
11081108 5
11091109 6
11101110 7
11111111 8
11121112 9
11131113 10
11141114 11
11151115 12
11161116 13
11171117 14
11181118 15
11191119 16
11201120 17
11211121 18
11221122 19
11231123 20
11241124 21
11251125 22
11261126 23
11271127 24
11281128
11291129 3. For purposes of the payment of marital property, to qualify
11301130 as an alternate payee a spouse or former spouse must have be en
11311131 married to the related participating employee for a period of not
11321132 less than thirty (30) continuous months immediately preceding t he
11331133 commencement of the proceedings from which the qu alified domestic
11341134 order issues.
11351135 4. A qualified domestic order is valid and binding on the Board
11361136 and the related participati ng employee only if it meets the
11371137 requirements of this subsection.
11381138 5. A qualified domestic order shall clearly specify:
11391139 a. the name and last-known mailing address (if any) of
11401140 the participating employee and the name and mailing
11411141 address of the alternate pa yee covered by the order,
11421142 b. the amount or percentage of the participating
11431143 employee’s funds or assets to be paid by the System to
11441144 the alternate payee,
11451145 c. the number of payments or period to which such order
11461146 applies,
11471147 d. the characterization of the benefi t as to marital
11481148 property rights or child support, and
11491149 e. each plan to which such order applies.
11501150 6. A qualified domestic order meets the r equirements of this
11511151 subsection only if such order:
11521152 RBS No. 1173
11531153
11541154 Req. No. 1173 Page 16 1
11551155 2
11561156 3
11571157 4
11581158 5
11591159 6
11601160 7
11611161 8
11621162 9
11631163 10
11641164 11
11651165 12
11661166 13
11671167 14
11681168 15
11691169 16
11701170 17
11711171 18
11721172 19
11731173 20
11741174 21
11751175 22
11761176 23
11771177 24
11781178 1
11791179 2
11801180 3
11811181 4
11821182 5
11831183 6
11841184 7
11851185 8
11861186 9
11871187 10
11881188 11
11891189 12
11901190 13
11911191 14
11921192 15
11931193 16
11941194 17
11951195 18
11961196 19
11971197 20
11981198 21
11991199 22
12001200 23
12011201 24
12021202
12031203 a. does not require the System to provide any type or
12041204 form of benefit, or any option not otherwise provided
12051205 under state law as relates to the System,
12061206 b. does not require the System to provide increased
12071207 benefits, and
12081208 c. does not require the payment of funds or as sets to an
12091209 alternate payee which are required to be paid to
12101210 another alternate payee pursuant to another order
12111211 previously determined to be a qualifi ed domestic order
12121212 or an order recognized by the Syst em as a valid order
12131213 prior to the effective date of this a ct.
12141214 7. This subsection shall not be subject to the prov isions of
12151215 the Employee Retirement Income Security Act of 1974 (ERISA), 29
12161216 U.S.C.A., Section 1001 et seq., as amended from time to time, or
12171217 rules and regulations promulgated thereunder, and court cases
12181218 interpreting said act.
12191219 8. The Board shall promulgate such rules as are necessary to
12201220 implement the provisions of this subsection.
12211221 9. An alternate payee who has acquired beneficiary rights
12221222 pursuant to a valid qualified domestic order must fully comply w ith
12231223 all provisions of the rules promulgated by the Board pursuant to
12241224 this subsection in order to continue receiving his or her benefit.
12251225 RBS No. 1173
12261226
12271227 Req. No. 1173 Page 17 1
12281228 2
12291229 3
12301230 4
12311231 5
12321232 6
12331233 7
12341234 8
12351235 9
12361236 10
12371237 11
12381238 12
12391239 13
12401240 14
12411241 15
12421242 16
12431243 17
12441244 18
12451245 19
12461246 20
12471247 21
12481248 22
12491249 23
12501250 24
12511251 1
12521252 2
12531253 3
12541254 4
12551255 5
12561256 6
12571257 7
12581258 8
12591259 9
12601260 10
12611261 11
12621262 12
12631263 13
12641264 14
12651265 15
12661266 16
12671267 17
12681268 18
12691269 19
12701270 20
12711271 21
12721272 22
12731273 23
12741274 24
12751275
12761276 SECTION 11. AMENDATORY 70 O.S. 2011, Sec tion 17-108.1,
12771277 as amended by Section 4, Chapter 129, O.S.L. 2016 (70 O.S. Supp.
12781278 2020, Section 17-108.1), is amended to read as follows:
12791279 Section 17-108.1. A. 1. Except as provided in paragraph 2 of
12801280 this subsection, the employer of any member of the Teach ers’
12811281 Retirement System of Oklahoma shall make the following contributions
12821282 to the System:
12831283 a. beginning July 1, 1998, through June 30, 1999, eleven
12841284 and one-half percent (11 1/2%) of the regular annual
12851285 compensation of the member not in excess of any
12861286 applicable maximum compensation level of the member,
12871287 b. beginning July 1, 1999, through June 30, 2000, four
12881288 and eight-tenths percent (4.8%) of the regular annual
12891289 compensation of the member not in excess of any
12901290 applicable maximum compensation level of the m ember,
12911291 c. beginning July 1, 2000, through June 30, 2001, five
12921292 and eight-tenths percent (5.8%) of the regular annual
12931293 compensation of the member not in excess of any
12941294 applicable maximum compensation level of the memb er,
12951295 d. beginning July 1, 2001, through June 30, 2002, six and
12961296 eight-tenths percent (6.8%) of the regular annual
12971297 compensation of the member not in excess of any
12981298 applicable maximum compensation level of the member,
12991299 RBS No. 1173
13001300
13011301 Req. No. 1173 Page 18 1
13021302 2
13031303 3
13041304 4
13051305 5
13061306 6
13071307 7
13081308 8
13091309 9
13101310 10
13111311 11
13121312 12
13131313 13
13141314 14
13151315 15
13161316 16
13171317 17
13181318 18
13191319 19
13201320 20
13211321 21
13221322 22
13231323 23
13241324 24
13251325 1
13261326 2
13271327 3
13281328 4
13291329 5
13301330 6
13311331 7
13321332 8
13331333 9
13341334 10
13351335 11
13361336 12
13371337 13
13381338 14
13391339 15
13401340 16
13411341 17
13421342 18
13431343 19
13441344 20
13451345 21
13461346 22
13471347 23
13481348 24
13491349
13501350 e. beginning July 1, 2002, through December 31, 2006,
13511351 seven and five-hundredths percent (7.05%) of the
13521352 regular annual compensation of the member not in
13531353 excess of any applicable maximum compensation level of
13541354 the member,
13551355 f. beginning January 1, 2007, through June 30, 2007,
13561356 seven and six-tenths percent (7.6%) of the regular
13571357 annual compensation of the member not in excess of any
13581358 applicable maximum compensation l evel of the member,
13591359 g. beginning July 1, 2007, through December 31, 2007,
13601360 seven and eighty-five hundredths percent (7.85%) of
13611361 the regular annual compensation of the member not in
13621362 excess of any applicable maximum compensation level of
13631363 the member,
13641364 h. beginning January 1, 2008, through June 30, 2008,
13651365 eight and thirty-five hundredths percent (8.35%) of
13661366 the regular annual compensation of the member not in
13671367 excess of any applicable maximum compen sation level of
13681368 the member,
13691369 i. beginning July 1, 2008, through Decemb er 31, 2008,
13701370 eight and five-tenths percent (8.5%) of the regular
13711371 annual compensation of the member not in excess of any
13721372 applicable maximum compe nsation level of the member,
13731373 RBS No. 1173
13741374
13751375 Req. No. 1173 Page 19 1
13761376 2
13771377 3
13781378 4
13791379 5
13801380 6
13811381 7
13821382 8
13831383 9
13841384 10
13851385 11
13861386 12
13871387 13
13881388 14
13891389 15
13901390 16
13911391 17
13921392 18
13931393 19
13941394 20
13951395 21
13961396 22
13971397 23
13981398 24
13991399 1
14001400 2
14011401 3
14021402 4
14031403 5
14041404 6
14051405 7
14061406 8
14071407 9
14081408 10
14091409 11
14101410 12
14111411 13
14121412 14
14131413 15
14141414 16
14151415 17
14161416 18
14171417 19
14181418 20
14191419 21
14201420 22
14211421 23
14221422 24
14231423
14241424 j. beginning January 1, 2009, through December 31, 2009,
14251425 nine percent (9%) of the r egular annual compensation
14261426 of the member not in excess of any applicable maximum
14271427 compensation level of the member,
14281428 k. beginning January 1, 2010, through June 30, 2010, nine
14291429 and five-tenths percent (9.5%) of the regular annual
14301430 compensation of the member not in excess of any
14311431 applicable maximum compensation level of the member,
14321432 and
14331433 l. beginning July 1, 2010, through June 30, 2011, and for
14341434 each fiscal year thereafter, except as otherwise
14351435 provided by paragraph 4 of this section, nine and
14361436 five-tenths percent (9.5%) of the regular annual
14371437 compensation of the member not in excess of any
14381438 applicable maximum compensation level of the member.
14391439 The employer contribution rate increase that would otherwise be
14401440 effective, as provided by subparagraphs f, g, h, i, j, k and l of
14411441 this paragraph, shall not become effective as law unless funding
14421442 levels to each of the affected participating employers within the
14431443 System are increased so that the additional employer co ntribution
14441444 obligation is funded through an appropriation or transfer of monies
14451445 instead of requiring the additional employer contribution to be paid
14461446 for from existing budgetary resources of such participating
14471447 employers. The participating employers shall us e any monies
14481448 RBS No. 1173
14491449
14501450 Req. No. 1173 Page 20 1
14511451 2
14521452 3
14531453 4
14541454 5
14551455 6
14561456 7
14571457 8
14581458 9
14591459 10
14601460 11
14611461 12
14621462 13
14631463 14
14641464 15
14651465 16
14661466 17
14671467 18
14681468 19
14691469 20
14701470 21
14711471 22
14721472 23
14731473 24
14741474 1
14751475 2
14761476 3
14771477 4
14781478 5
14791479 6
14801480 7
14811481 8
14821482 9
14831483 10
14841484 11
14851485 12
14861486 13
14871487 14
14881488 15
14891489 16
14901490 17
14911491 18
14921492 19
14931493 20
14941494 21
14951495 22
14961496 23
14971497 24
14981498
14991499 specifically made available for purposes of making emplo yer
15001500 contributions for such purpose and to the extent of the funds made
15011501 available for that purpose.
15021502 2. a. Beginning January 1, 2007, through Decem ber 31, 2007,
15031503 a participating employer tha t employs an employee of a
15041504 comprehensive university or a regional ins titution
15051505 offering a four-year degree program as designated or
15061506 authorized by the Oklahoma State Regents for Higher
15071507 Education shall make contributi ons to the System with
15081508 respect to such employees at the rate of seven and
15091509 five-hundredths percent (7.05%) of th e regular annual
15101510 compensation of the member not in excess of any
15111511 applicable maximum compensation level.
15121512 b. Beginning January 1, 2008, through Dec ember 31, 2008,
15131513 a participating employer t hat employs an employee of a
15141514 comprehensive university or a regional i nstitution
15151515 offering a four-year degree program as designated or
15161516 authorized by the Oklahoma State Regents for Higher
15171517 Education shall make contribu tions to the System with
15181518 respect to such employees at the rate of seven and
15191519 fifty-five hundredths percent (7.55 %) of the regular
15201520 annual compensation of the member not in excess of any
15211521 applicable maximum compensation level of the member.
15221522 RBS No. 1173
15231523
15241524 Req. No. 1173 Page 21 1
15251525 2
15261526 3
15271527 4
15281528 5
15291529 6
15301530 7
15311531 8
15321532 9
15331533 10
15341534 11
15351535 12
15361536 13
15371537 14
15381538 15
15391539 16
15401540 17
15411541 18
15421542 19
15431543 20
15441544 21
15451545 22
15461546 23
15471547 24
15481548 1
15491549 2
15501550 3
15511551 4
15521552 5
15531553 6
15541554 7
15551555 8
15561556 9
15571557 10
15581558 11
15591559 12
15601560 13
15611561 14
15621562 15
15631563 16
15641564 17
15651565 18
15661566 19
15671567 20
15681568 21
15691569 22
15701570 23
15711571 24
15721572
15731573 c. Beginning January 1, 2009, through December 31, 2009,
15741574 a participating employer that employs an employee of a
15751575 comprehensive university or a regional institution
15761576 offering a four-year degree program as designated or
15771577 authorized by the Oklahoma State Regents for Higher
15781578 Education shall make contributions to the System with
15791579 respect to such employees at the rate of eight and
15801580 five hundredths percent (8.05%) of the regular annual
15811581 compensation of the member not in excess of any
15821582 applicable maximum compensation level of the member.
15831583 d. Beginning January 1, 2010, through June 30 , 2010, a
15841584 participating employer that employs an employee of a
15851585 comprehensive university or a regional institution
15861586 offering a four-year degree program as designated or
15871587 authorized by the Oklahoma State Regents for Hi gher
15881588 Education shall make contributions to the System with
15891589 respect to such employees at the rate of eight and
15901590 fifty-five hundredths percent (8.55%) of the regular
15911591 annual compensation of the member not in excess of any
15921592 applicable maximum compensation level of the member.
15931593 e. Beginning July 1, 2010, through June 30, 2011, and for
15941594 each fiscal year thereafter , a participating employer
15951595 that employs an employee of a comprehensive university
15961596 or a regional institution offering a four -year degree
15971597 RBS No. 1173
15981598
15991599 Req. No. 1173 Page 22 1
16001600 2
16011601 3
16021602 4
16031603 5
16041604 6
16051605 7
16061606 8
16071607 9
16081608 10
16091609 11
16101610 12
16111611 13
16121612 14
16131613 15
16141614 16
16151615 17
16161616 18
16171617 19
16181618 20
16191619 21
16201620 22
16211621 23
16221622 24
16231623 1
16241624 2
16251625 3
16261626 4
16271627 5
16281628 6
16291629 7
16301630 8
16311631 9
16321632 10
16331633 11
16341634 12
16351635 13
16361636 14
16371637 15
16381638 16
16391639 17
16401640 18
16411641 19
16421642 20
16431643 21
16441644 22
16451645 23
16461646 24
16471647
16481648 program as designate d or authorized by the Oklahoma
16491649 State Regents for Higher Education shall make
16501650 contributions to the System with respect to such
16511651 employees at the rate of eight and fifty -five
16521652 hundredths percent (8.55%) of the regular annual
16531653 compensation of the member not in excess of any
16541654 applicable maximum compensat ion level of the member.
16551655 The employer contribution rate increase that would otherwise be
16561656 effective as provided by subparagraphs b, c, d and e of this
16571657 paragraph shall not become effective as law unless funding level s
16581658 are increased so that the additional emp loyer contribution
16591659 obligation is funded through such an appropriation or transfer of
16601660 monies instead of requiring the additional employer contribution to
16611661 be paid for from existing budgetary resources of such partici pating
16621662 employers. The participating emplo yers shall use any monies
16631663 specifically made available for purposes of making employer
16641664 contributions for such purpose and to the extent of the funds made
16651665 available for that purpose.
16661666 3. Any employer contribution pai d to the System pursuant to
16671667 this subsection shall not be considered as salary, fringe benefit,
16681668 or total compensation due to members for the purpose of meeting any
16691669 legislative or contractual obligation of the employer.
16701670 4. Effective November 1, 20 22, an employer shall be required to
16711671 make payment to the Teachers’ Retirement System of Oklahoma in the
16721672 RBS No. 1173
16731673
16741674 Req. No. 1173 Page 23 1
16751675 2
16761676 3
16771677 4
16781678 5
16791679 6
16801680 7
16811681 8
16821682 9
16831683 10
16841684 11
16851685 12
16861686 13
16871687 14
16881688 15
16891689 16
16901690 17
16911691 18
16921692 19
16931693 20
16941694 21
16951695 22
16961696 23
16971697 24
16981698 1
16991699 2
17001700 3
17011701 4
17021702 5
17031703 6
17041704 7
17051705 8
17061706 9
17071707 10
17081708 11
17091709 12
17101710 13
17111711 14
17121712 15
17131713 16
17141714 17
17151715 18
17161716 19
17171717 20
17181718 21
17191719 22
17201720 23
17211721 24
17221722
17231723 amount described by subsection A of Section 9 of this act with
17241724 respect to any employee who is a participant in the defined
17251725 contribution system created pursuant to the provisions of Sections 1
17261726 through 10 of this act. The employer shall be required to make the
17271727 required matching contribution amount for all employees that
17281728 participate in the defined contribution system and to remit the
17291729 difference between such amount an d the amount the employer would
17301730 otherwise have paid pursuant to the provisions of this section to
17311731 the System.
17321732 B. For entities or institutions within The Oklahoma State
17331733 System of Higher Education, the contributions to the System shall be
17341734 made on regular annual compensation of a member who is an employee
17351735 of such entity or institution not to exceed the m aximum compensation
17361736 level in effect for the member as prescribed by law.
17371737 C. Employers paying contributions to the System pursuant to
17381738 subsection A or B of thi s section shall receive credit for that
17391739 portion of the gross production tax on natural gas and/or casinghead
17401740 gas apportioned to the System pursuant to subsection 2 of Section
17411741 1004 of Title 68 of the Oklahoma Statutes in meeting the total
17421742 required employer contribution. On an annual basis, the Board of
17431743 Trustees of the Teachers ’ Retirement System of Okl ahoma shall
17441744 estimate the net additional cost required to be paid by the
17451745 contributing employers in order to meet the total employer
17461746 contribution as provided in subsection A or B of this section. The
17471747 RBS No. 1173
17481748
17491749 Req. No. 1173 Page 24 1
17501750 2
17511751 3
17521752 4
17531753 5
17541754 6
17551755 7
17561756 8
17571757 9
17581758 10
17591759 11
17601760 12
17611761 13
17621762 14
17631763 15
17641764 16
17651765 17
17661766 18
17671767 19
17681768 20
17691769 21
17701770 22
17711771 23
17721772 24
17731773 1
17741774 2
17751775 3
17761776 4
17771777 5
17781778 6
17791779 7
17801780 8
17811781 9
17821782 10
17831783 11
17841784 12
17851785 13
17861786 14
17871787 15
17881788 16
17891789 17
17901790 18
17911791 19
17921792 20
17931793 21
17941794 22
17951795 23
17961796 24
17971797
17981798 Board of Trustees shall approve the amount of the additio nal
17991799 contribution required to be paid by contributing employers as a
18001800 percentage of total member salaries and fringe benefits for each
18011801 fiscal year ending June 3 0, no later than April 1 of the previous
18021802 fiscal year. In no event shall the additional contributi on required
18031803 to be paid by the contributing employer under this subsection be
18041804 less than the contribution required under this subsection in the
18051805 prior year. In the event actual contributions do not equal the
18061806 required total contribution as provided in subsect ion A or B of this
18071807 section, the net difference between the actual contributions and the
18081808 required total contributions shall be determined and shall be
18091809 included in the amount of the additional contribution requir ed to be
18101810 paid by contributing employers for th e next fiscal year. All
18111811 contributing employers shall pay the same percentage of total member
18121812 salaries and fringe benefits during each fiscal year. The
18131813 provisions of this subsection shall terminate June 30, 19 99.
18141814 D. Any school district, state college or university, State
18151815 Board of Education, State Board of Career and Technology Education,
18161816 or other state agency may, for and on behalf of any member of the
18171817 System, pay all or any portion of the contribution require d by
18181818 Section 17-108 of this title. Provided, the contribution so paid by
18191819 any school district, state college or university, State Board of
18201820 Education, State Board of Career and Technology Education, or oth er
18211821 state agency shall be and remain subject to the w ithdrawal
18221822 RBS No. 1173
18231823
18241824 Req. No. 1173 Page 25 1
18251825 2
18261826 3
18271827 4
18281828 5
18291829 6
18301830 7
18311831 8
18321832 9
18331833 10
18341834 11
18351835 12
18361836 13
18371837 14
18381838 15
18391839 16
18401840 17
18411841 18
18421842 19
18431843 20
18441844 21
18451845 22
18461846 23
18471847 24
18481848 1
18491849 2
18501850 3
18511851 4
18521852 5
18531853 6
18541854 7
18551855 8
18561856 9
18571857 10
18581858 11
18591859 12
18601860 13
18611861 14
18621862 15
18631863 16
18641864 17
18651865 18
18661866 19
18671867 20
18681868 21
18691869 22
18701870 23
18711871 24
18721872
18731873 provisions set forth under the Syste m. Wherever the term
18741874 “contribution” is used, it shall be deemed to include contributions
18751875 paid for and on behalf of a member by a school district, state
18761876 college or university, State Board of Education, State Bo ard of
18771877 Career and Technology Education, or oth er state agency.
18781878 E. All participating employers shall provide a complete record
18791879 of the total compensation paid to each employee, including any
18801880 person who is a retired member of the System, whether or not
18811881 employer and employee contributions are made with r espect to such
18821882 compensation. The employer shall provide the report required by
18831883 this subsection on a monthly basis on a form or using such method as
18841884 the Teachers’ Retirement System of Oklahoma may require and shall
18851885 provide a comprehensive annual report sho wing the correct
18861886 compensation, service credit and contributions for the prior fiscal
18871887 year. Each participating employer shall provide reasonable access
18881888 to its payroll records, records of contribution payments t o the
18891889 System and all other records relevant to the participation of its
18901890 employees in the System, to the System, its employees or authorized
18911891 agents. A participating employer shall cooperate with auditors
18921892 retained by the System to audit its financial statem ents or
18931893 otherwise audit the financial operatio ns of the System.
18941894 SECTION 12. AMENDATORY 70 O.S. 2011, Section 17 -121, as
18951895 amended by Section 607, Chapter 304, O.S.L. 2012 (70 O.S. Supp.
18961896 2020, Section 17-121), is amended to read as fo llows:
18971897 RBS No. 1173
18981898
18991899 Req. No. 1173 Page 26 1
19001900 2
19011901 3
19021902 4
19031903 5
19041904 6
19051905 7
19061906 8
19071907 9
19081908 10
19091909 11
19101910 12
19111911 13
19121912 14
19131913 15
19141914 16
19151915 17
19161916 18
19171917 19
19181918 20
19191919 21
19201920 22
19211921 23
19221922 24
19231923 1
19241924 2
19251925 3
19261926 4
19271927 5
19281928 6
19291929 7
19301930 8
19311931 9
19321932 10
19331933 11
19341934 12
19351935 13
19361936 14
19371937 15
19381938 16
19391939 17
19401940 18
19411941 19
19421942 20
19431943 21
19441944 22
19451945 23
19461946 24
19471947
19481948 Section 17-121. A. Effective July 1, 1999, for each active
19491949 contributing member of the Teachers ’ Retirement System of Oklahoma,
19501950 except as otherwise provided by subsection E of this section, who is
19511951 making contributions of at le ast Twenty-five Dollars ($25.00) per
19521952 month to a plan account maintained by the Teachers ’ Retirement
19531953 System of Oklahoma pursuant to Section 403(b) of Title 26 of the
19541954 United States Code, 26 U.S.C. Section 403(b), the Teachers ’
19551955 Retirement System shall pay eac h month from funds appropriated to
19561956 the Oklahoma Teachers ’ Deferred Savings Incentive Plan Fund created
19571957 pursuant to this section the sum of Twenty -five Dollars ($25.00) to
19581958 a plan established pursuant to the Internal Revenue Cod e, Section
19591959 401(a), for the benefit of the participant.
19601960 B. If monies in the Oklahoma Teachers ’ Deferred Savings
19611961 Incentive Plan Fund are insufficient to fully fund the contributions
19621962 in any month, payments shall be suspended until such time as
19631963 sufficient monies are available.
19641964 C. The Teachers’ Retirement System shall be responsible for
19651965 establishing rules and plan documents for administration of the
19661966 contributions authorized by this section. Fun ds so credited shall
19671967 be held and invested in the same manner as fu nds managed in accounts
19681968 of members contributing to an account established pursuant to
19691969 Section 403(b) of the Internal Revenue Code of 1986, as amended.
19701970 D. There is hereby created in the Stat e Treasury a revolving
19711971 fund to be designated the “Oklahoma Teachers’ Deferred Savings
19721972 RBS No. 1173
19731973
19741974 Req. No. 1173 Page 27 1
19751975 2
19761976 3
19771977 4
19781978 5
19791979 6
19801980 7
19811981 8
19821982 9
19831983 10
19841984 11
19851985 12
19861986 13
19871987 14
19881988 15
19891989 16
19901990 17
19911991 18
19921992 19
19931993 20
19941994 21
19951995 22
19961996 23
19971997 24
19981998 1
19991999 2
20002000 3
20012001 4
20022002 5
20032003 6
20042004 7
20052005 8
20062006 9
20072007 10
20082008 11
20092009 12
20102010 13
20112011 14
20122012 15
20132013 16
20142014 17
20152015 18
20162016 19
20172017 20
20182018 21
20192019 22
20202020 23
20212021 24
20222022
20232023 Incentive Plan Fund”. The fund shall be a continuing fund, not
20242024 subject to fiscal year limitations, and shall consist of any monies
20252025 the Legislature may appropriate or tra nsfer to the fund and any
20262026 monies contributed for the fund from any other sources, public or
20272027 private. All monies accruing to the credit of said fund are hereby
20282028 appropriated and may be budgeted and expended by the Teachers ’
20292029 Retirement System of Oklahoma for the matching of deferred
20302030 compensation contributions pursuant to t his section and in
20312031 accordance with rules promulgated by the Teachers’ Retirement System
20322032 of Oklahoma. Expenditures from the fund shall be made by warrants
20332033 issued by the State Treasurer again st claims filed as prescribed by
20342034 law with the Director of the Offi ce of Management and Enterpris e
20352035 Services for approval and payment.
20362036 E. The provisions of this section shall not apply to an
20372037 employee who participates in the defined contribution system
20382038 administered by the Teachers’ Retirement System of Oklahoma on or
20392039 after November 1, 2022.
20402040
20412041 58-1-1173 CB 1/21/2021 4:24:15 PM