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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
SENATE BILL 891 By: Newhouse
AS INTRODUCED
An Act relating to public retirement systems;
requiring Teachers’ Retirement System of Oklahoma to
establish defined contribution syste m for certain
persons; specifying persons eligible for
participation in system; specifying date service in
system begins; requiring Board to create or utilize
certain plan; requiring defined contribution s ystem
be qualified pursuant to provisions of the In ternal
Revenue Code of 1986, as amended; prescribing minimum
and maximum employee contribution amount s; specifying
amount of employer matching contributions ; specifying
procedures related to employer match ing
contributions; providing for modifications to
matching amounts; prescribing procedures for cost
computation; providing for vesting schedule;
providing for payment of certain costs related to
defined contribution system administration; applying
certain provision of Internal Revenue Code to certain
employers; requiring Board of Trustees of Teachers ’
Retirement System contract with certain entities to
provide investment options ; specifying requirements
for investment option s; providing for payment of
certain revenues to System; providing for deposit of
funds to existing defined benefit plan; providing for
effect of enactment on certain rights; prohibiting
certain collection activity with respect to funds;
authorizing offsets; providing for enforcement o f
qualified domestic orders; defining term; prescribing
procedures with respect to alternate payees;
prescribing content; imposing restrictions on
qualified domestic orders ; exempting act from
provisions of Employee Retirement Income Security Act
of 1974; authorizing Board to promulgate rules;
amending 70 O.S. 2011, Sections 17-108.1, as amended
by Section 4, Chapter 129, O.S.L. 2016 ( 70 O.S. Supp.
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2020, Section 17-108.1) and 17-121, as amended by
Section 607, Chapter 304, O.S.L. 2012 (70 O.S. Supp.
2020, Section 17-121), which relate to employer
contributions and the Teachers’ Retirement System
Deferred Savings Incentive Plan ; modifying provisions
related to employer contributions; requiri ng payment
of certain differential amount to the Teachers’
Retirement System of Oklahoma for specified purpose ;
providing for codification; and providing an
effective date.
BE IT ENACTED BY THE PEOP LE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law t o be codified
in the Oklahoma Statutes as Section 17-123 of Title 70, unless there
is created a duplication in numbering, reads as follows:
A. The Teachers’ Retirement System of Oklahom a (System) shall
establish a defined contribution system for those pe rsons who first
become employed on or after November 1, 2022, in a full-time
equivalent position or a position which is less than full -time but
more than half-time position and which qualifies for employee
benefits including, but not limited to, health insu rance and leave
time by any participating employer of the System, as defined by
paragraph (5) of Section 17-101 of Title 70 of the Oklahoma
Statutes.
B. The provisions of this act shall not be appl icable to
nonclassified optional personnel, as defined in paragraph (4) of
Section 17-101 of Title 70 of the Oklahoma Statutes .
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C. An employee described in subsection A of this section shall
become a participant in the defined contribution system and the
employee shall not accrue any service credit in the defined benefit
system established pursuant to Section 17-102 et seq. of Title 70 of
the Oklahoma Statutes.
D. Employees who participate in the defined contribution system
shall be deemed to begin service in the defined contribution system
on the first day of the month following employ ment.
E. An employee who begins participating in the defined benefit
plan on or after November 1, 202 2, in one of the positions described
in subsection B of this section, shall continue to participate in
the defined benefit plan only as long as he or she continues to be
employed in a position described in subsection B of this section.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 17-123.1 of Title 70, unless
there is created a duplication in numbering, reads as follows:
The Board of Trustees of the Teachers’ Retirement System of
Oklahoma shall take whatever action is reasonable and necessary to
have the defined contribution system authorized by this act to be
recognized as a tax-qualified plan as that term is defined by
Section 401 et seq. of Title 26 of the United States Code, or any
other applicable provisions of federal law. The Board shall
establish a plan or use an existing plan established under Se ction
457(b) of Title 26 of the Uni ted States Code. The Board shall take
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whatever action is reasonable and necessary to obtain confirmation
from the Internal Revenue Service that such 457(b) plan is
consistent with the requirement s of Section 457(b).
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 17-123.2 of Title 70 unless
there is created a duplication in numbering, reads as follows:
A. Employee contributions to the defined contributi on
retirement system shall consist of a minimum of four and five-tenths
percent (4.5%) of the employee’s pre-tax compensation.
B. Employee contributions to the defined contribution
retirement system that are eligible for an employer match shall not
exceed a percentage, based on the employee ’s compensation, which
would exceed the maximum amoun t allowed pursuant to Section 4 15 of
the Internal Revenue Code of 1986, as amended .
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 17-123.3 of Title 70, unless
there is created a duplicati on in numbering, reads as follows:
A. Except as otherwise provided by subsection B of this
section, employers of employees who become participants in the
defined contribution retirement system shall match the employee
contribution paid on a monthly or more frequent basis at the rate of
six percent (6.0%) based on the same compensation amount used to
compute the employee contribution amount .
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B. If an employee selects a contribution rate of seven percent
(7.0%) or more, but not higher than allowed pursuant to the maximum
annual contribution limit prescribed by Section 415 of the Internal
Revenue Code of 1986, as amended, the employer matching amount sha ll
be seven percent (7.0%).
C. The initial four and five-tenths percent (4.5%) employee
contribution shall be the only mandatory contribution of an employee
participating in the defined contribution retirement system created
by this act. These funds shal l be placed by the System in either a
401(a) plan or a 457(b) plan, to be determined by the Board to
maintain the plan consistent with the Internal Revenue Code. Any
employee contributions eligible to be matched under this section
over the four and five-tenths percent (4.5%) initial contribution
shall be considered voluntary deferrals of compensation and place d
in a 457(b) plan. All employer matching funds shall be placed in a
401(a) plan.
D. Any contribution rate that is more than the four and five-
tenths percent (4.5%) rate can be chosen by the participatin g
employee upon the initial participation of the employee, and can
only be changed once per calendar year during an option period as
the Board determines. The employee contribution rate chosen shall
continue until the next option period.
E. The employer match as set forth in subsection A of this
section may be increased at any time by the Legislature without
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affecting the then-existing rights of participating employees and
beneficiaries in order to encourage participating employees to
accumulate deferred income reserves for themselves and their
dependents. The employer match may be decreased at any time by the
Legislature without affecting the then-existing rights of
participating employees and beneficiaries in order to provide
funding as may be needed to reduce the unfunded liabilities of the
defined benefit plan as set forth in Section 17-102 et seq. of Title
70 of the Oklahoma Statutes, but shall not be less than six percent
(6.0%) for any year during which the defined contribution plan is
maintained.
SECTION 5. NEW LAW A new sec tion of law to be codified
in the Oklahoma Statutes as Section 17-123.4 of Title 70, unless
there is created a duplication in numbering, reads as f ollows:
A. Except as otherwise provided by this section, employers
shall make payment of the required matchi ng amount as provided by
this section within five (5) business days of the payroll pay date
of the participating employee . The Teachers’ Retirement System of
Oklahoma shall ensure the payment is credited to the defined
contribution system account or accounts maintained on behalf of the
participating employee as soon as possible.
B. All employee contributions to the defined contribution
system shall be effecte d by salary deductions from the salary of the
employee and shall be remitted by the participating employer to the
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System for deposit into the defined contribution system account or
accounts maintained on behalf of the employee.
C. Participating employers whose salary deductions and employer
contributions are not remitted to the System through the Offi ce of
Management and Enterprise Services shall either:
1. Send all such remittances by electronic funds transfer; or
2. Place all such remittances in a b ank account from which the
System can debit the amount due,
both within five (5) business days of th e payroll pay date of the
participating employee . Payroll data shall be remitted by the same
deadline.
D. Each employer shall cooperate with the Board of Trustees of
the System to ensure that any necessa ry programming changes are made
to the employer’s payroll system to carry out the requirements of
this act.
E. Each employer which has employees participating in t he
defined contribution system shall pay to the System in the same
manner and at the same ti me required for contributions under this
section an amount to reimburse the cost of administration of the
defined contribution system, as determined by the Board.
1. The Board shall certify each year to participating employers
the determined amount for th e administrative cost of the defined
contribution system which will be required to be paid for each
participant. The Board shall promulgate such rules as necessar y to
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implement the provisions of this su bsection and provide the
methodology for the determin ation.
2. Each employer shall pay at least monthly to the System the
sum sufficient to satisfy the obligation under this section as
certified by the Board.
F. The funds held on behalf of each employee participating in
the defined contribution system shal l consist of the amount in the
account or accounts plus credits representing employer and employee
contributions, profits, income and other increments attributab le to
such contributions, and minus debi ts representing any losses, other
decrements, or expens es under the system and any distributions made
to the employee under the system.
SECTION 6. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 17-123.5 of Title 70, unless
there is created a duplication in numbering, reads as follows:
A. Participating employees shall at all times be vested at one
hundred percent (100%) of their accounts containing solely thei r
employee contributions , and the gains or losses on these
contributions. Participating employee s will have investment
discretion over these accoun ts within the available options offered
by the Board of Trustees of the Oklahoma Teachers ’ Retirement
System.
B. Participating employees shall be vested with respect to the
employer matching amounts , and the gains or losses on these funds,
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deposited into their defined contribution system account or accounts
according to the following schedule based on years of participating
service:
Year 1 20%
Year 2 40%
Year 3 60%
Year 4 80%
Year 5 and thereafter 100%
C. Participating employees will have investment discretion over
all employer contributions.
D. For purposes of determining a participating employee ’s right
to withdraw employer matching contributions and any investment gains
upon such employer contribution matching amounts, the vesting
percentages apply at the end of each full year of service as
described in subsection B of this section.
E. For participating employees who do not select any investment
options, the Board will establish defau lt investment options for the
contributions received from participating employees and default
investment options for matching employer contribution s.
F. To the extent that participants lea ve employment and have
not vested in all of the employer contributi ons, the nonvested
employer contributions including any gains or losses, shall be
immediately forfeited to the 401(a) plan and may be used to offset
costs of administering the plan. Upon reemployment with an employer
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and satisfying the eligibility require ments to become a participant,
the reemployed parti cipant shall receive credit for previous service
and be vested at the same percentage the parti cipant was vested when
service was previous ly terminated. However, under no circumstances
shall the participant be entitled to any previously forfeited
employer contributions.
SECTION 7. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 17-123.6 of Title 70, unless
there is created a duplication in numbering, reads as follows:
A. Each participating employer s hall pick up under the
provisions of Section 414(h)( 2) of the Internal Revenue Code of
1986, as amended, and pay th e contribution which the participating
employee is required by law to make to the Teachers’ Retirement
System of Oklahoma for all compensation earned after the date as of
which an employee begi ns to participate in the defined contribu tion
system. Although the contributions so picked up are designated as
participating employee contributions, such contributions shall be
treated as contributions being paid by the employer in lie u of
contributions by the participating employee in determining tax
treatment under the Internal Revenu e Code of 1986, as amended, and
such picked-up contributions shall no t be includable in the gross
income of the participating employee until such amounts are
distributed or made available to the participating empl oyee or the
beneficiary of the participatin g employee. The participating
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employee, by the terms of this System, shall not have any option to
choose to receive the contributions so picked up directly and the
picked-up contributions must be paid by the empl oyer to the System.
B. Contributions by t he participating employee into a 457(b)
plan may not be picked up by t he employer but shall be a voluntary
deferral of the employee’s compensation. Participating employers
within the System that are not eligible to participate in the
Oklahoma Teachers’ Deferred Savings Incentive Plan under Section 17 -
121 of Title 70 of the Oklahoma Statutes and have established 457 (b)
plans for their employees, will have the obligation to e nsure that
their employees do not exceed the maximum annual contributions to a
457(b) plan under the Internal Revenue Code.
SECTION 8. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 17-123.7 of Title 70, unless
there is created a duplicati on in numbering, reads as follows:
The Board of Trustees of the Teachers’ Retirement System of
Oklahoma shall contract with one or more business entities in order
to create a range of choices regarding investment of funds deposited
into defined contribution sys tem accounts. The investment options
shall be substantially similar to the options provided to members of
the System that maintain a Deferred Savings Incentive Plan account
as offered by the System pursuant to the provisions of the Deferred
Savings Incentive Plan . In selecting investment op tions for
participants in the plan, the Board shall give due considerati on to
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offering investment options provided by busin ess entities that
provide guaranteed lifetime income in retirement such as annuities,
guaranteed investment contracts, or similar pro ducts. The Board may
amend any of its existing contracts with its curre nt service
providers to perform substantially the s ame type of service the
provider is currently performing for the Board, in order to
facilitate the timel y introduction of the new def ined contribution
system created by this act. Thereafter, the contracti ng process for
the selection of service providers c arrying out duties related to
the administration of the plan shall be the same as the selection
process for other providers selected by the Board under subsection D
of Section 17-106.1 of Title 70 of the Oklahoma Statutes.
SECTION 9. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 17-123.8 of Title 70, unless
there is created a du plication in numbering, reads as follows:
A. Notwithstanding any other p rovision of the statutes
governing the System to th e contrary, each participating employer
shall remit to the Teachers’ Retirement System of Oklahoma the
difference between the amoun t of money which would be remitted to
the System using the employer cont ribution rate required by Section
17-108 of Title 70 of the Oklahoma Statutes and the amount of money
required for the participating employer to make the required
matching contribution amount on behalf of a participating employee
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who participates in the defi ned contribution system authorized
pursuant to the provisions of Section 5 of this act.
B. The System shall deposit the monies remitted t o it by
employers having participating empl oyees in the defined contribution
system created by this act, as described by subsection A of this
section, into the existing defined benefit pension plan authorized
pursuant to Section 17-102 et seq. of Title 70 of the Oklahoma
Statutes in order to reduce the liabilities of the defined benefit
pension plan.
SECTION 10. NEW LAW A new section of law to be co dified
in the Oklahoma Statutes as Section 17-123.9 of Title 70, unless
there is created a duplication in numbering, reads as fol lows:
A. Except as otherwise provided by this section , no alteration,
amendment, or repeal of this act shall affect the then-existing
rights of participating employees and beneficiaries, but shall be
effective only as to rights which would otherwise accr ue hereunder
as a result of services rendered by an employee after such
alteration, amendment, or repeal. Any benefits, fund, p roperty or
rights created by or accruing to any person under the provisions of
this act shall not be subject to execution, garn ishment or
attachment, or any other process or claim whatsoever, and shall be
unassignable, except as specifically provided by th is section.
Notwithstanding the foregoing, the Board of Trustees of the
Teachers’ Retirement System of Oklahoma may offset any amounts held
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by a participant in the plan or beneficiary to pay a judgmen t or
settlement against a participating employee or beneficiary for a
crime involving the Teachers’ Retirement System of Oklahoma, for a
fraud or breach of the participating employee ’s fiduciary duty to
the System, or for funds or mon ies incorrectly paid to a
participating employee or a beneficiary, provided s uch offset is in
accordance with the requirements of Section 401(a)(13) or similar
provisions of the Internal Revenue Code. Th e offset applies to any
assets held in the plan which may otherwise be payable to a
participating employee or beneficiary from th e plan administered by
the Board.
B. 1. The provisions of subsection A of this section shall not
apply to a qualified domest ic order as provided pursuant to this
subsection.
2. The term “qualified domestic order” means an order issued by
a district court of this state pursuant to the domestic relation
laws of the State of Oklahoma which relates to the provision of
marital property rights to a spouse or former spouse of a
participating employee or provision of support for a minor child or
children and which creates or recognizes the existence of the right
of an alternate payee, or assigns to an alternate payee the right,
to receive a portion of the funds payable with respect to a
participant in the plan.
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3. For purposes of the payment of marital property, to qualify
as an alternate payee a spouse or former spouse must have be en
married to the related participating employee for a period of not
less than thirty (30) continuous months immediately preceding t he
commencement of the proceedings from which the qu alified domestic
order issues.
4. A qualified domestic order is valid and binding on the Board
and the related participati ng employee only if it meets the
requirements of this subsection.
5. A qualified domestic order shall clearly specify:
a. the name and last-known mailing address (if any) of
the participating employee and the name and mailing
address of the alternate pa yee covered by the order,
b. the amount or percentage of the participating
employee’s funds or assets to be paid by the System to
the alternate payee,
c. the number of payments or period to which such order
applies,
d. the characterization of the benefi t as to marital
property rights or child support, and
e. each plan to which such order applies.
6. A qualified domestic order meets the r equirements of this
subsection only if such order:
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a. does not require the System to provide any type or
form of benefit, or any option not otherwise provided
under state law as relates to the System,
b. does not require the System to provide increased
benefits, and
c. does not require the payment of funds or as sets to an
alternate payee which are required to be paid to
another alternate payee pursuant to another order
previously determined to be a qualifi ed domestic order
or an order recognized by the Syst em as a valid order
prior to the effective date of this a ct.
7. This subsection shall not be subject to the prov isions of
the Employee Retirement Income Security Act of 1974 (ERISA), 29
U.S.C.A., Section 1001 et seq., as amended from time to time, or
rules and regulations promulgated thereunder, and court cases
interpreting said act.
8. The Board shall promulgate such rules as are necessary to
implement the provisions of this subsection.
9. An alternate payee who has acquired beneficiary rights
pursuant to a valid qualified domestic order must fully comply w ith
all provisions of the rules promulgated by the Board pursuant to
this subsection in order to continue receiving his or her benefit.
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SECTION 11. AMENDATORY 70 O.S. 2011, Sec tion 17-108.1,
as amended by Section 4, Chapter 129, O.S.L. 2016 (70 O.S. Supp.
2020, Section 17-108.1), is amended to read as follows:
Section 17-108.1. A. 1. Except as provided in paragraph 2 of
this subsection, the employer of any member of the Teach ers’
Retirement System of Oklahoma shall make the following contributions
to the System:
a. beginning July 1, 1998, through June 30, 1999, eleven
and one-half percent (11 1/2%) of the regular annual
compensation of the member not in excess of any
applicable maximum compensation level of the member,
b. beginning July 1, 1999, through June 30, 2000, four
and eight-tenths percent (4.8%) of the regular annual
compensation of the member not in excess of any
applicable maximum compensation level of the m ember,
c. beginning July 1, 2000, through June 30, 2001, five
and eight-tenths percent (5.8%) of the regular annual
compensation of the member not in excess of any
applicable maximum compensation level of the memb er,
d. beginning July 1, 2001, through June 30, 2002, six and
eight-tenths percent (6.8%) of the regular annual
compensation of the member not in excess of any
applicable maximum compensation level of the member,
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e. beginning July 1, 2002, through December 31, 2006,
seven and five-hundredths percent (7.05%) of the
regular annual compensation of the member not in
excess of any applicable maximum compensation level of
the member,
f. beginning January 1, 2007, through June 30, 2007,
seven and six-tenths percent (7.6%) of the regular
annual compensation of the member not in excess of any
applicable maximum compensation l evel of the member,
g. beginning July 1, 2007, through December 31, 2007,
seven and eighty-five hundredths percent (7.85%) of
the regular annual compensation of the member not in
excess of any applicable maximum compensation level of
the member,
h. beginning January 1, 2008, through June 30, 2008,
eight and thirty-five hundredths percent (8.35%) of
the regular annual compensation of the member not in
excess of any applicable maximum compen sation level of
the member,
i. beginning July 1, 2008, through Decemb er 31, 2008,
eight and five-tenths percent (8.5%) of the regular
annual compensation of the member not in excess of any
applicable maximum compe nsation level of the member,
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j. beginning January 1, 2009, through December 31, 2009,
nine percent (9%) of the r egular annual compensation
of the member not in excess of any applicable maximum
compensation level of the member,
k. beginning January 1, 2010, through June 30, 2010, nine
and five-tenths percent (9.5%) of the regular annual
compensation of the member not in excess of any
applicable maximum compensation level of the member,
and
l. beginning July 1, 2010, through June 30, 2011, and for
each fiscal year thereafter, except as otherwise
provided by paragraph 4 of this section, nine and
five-tenths percent (9.5%) of the regular annual
compensation of the member not in excess of any
applicable maximum compensation level of the member.
The employer contribution rate increase that would otherwise be
effective, as provided by subparagraphs f, g, h, i, j, k and l of
this paragraph, shall not become effective as law unless funding
levels to each of the affected participating employers within the
System are increased so that the additional employer co ntribution
obligation is funded through an appropriation or transfer of monies
instead of requiring the additional employer contribution to be paid
for from existing budgetary resources of such participating
employers. The participating employers shall us e any monies
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specifically made available for purposes of making emplo yer
contributions for such purpose and to the extent of the funds made
available for that purpose.
2. a. Beginning January 1, 2007, through Decem ber 31, 2007,
a participating employer tha t employs an employee of a
comprehensive university or a regional ins titution
offering a four-year degree program as designated or
authorized by the Oklahoma State Regents for Higher
Education shall make contributi ons to the System with
respect to such employees at the rate of seven and
five-hundredths percent (7.05%) of th e regular annual
compensation of the member not in excess of any
applicable maximum compensation level.
b. Beginning January 1, 2008, through Dec ember 31, 2008,
a participating employer t hat employs an employee of a
comprehensive university or a regional i nstitution
offering a four-year degree program as designated or
authorized by the Oklahoma State Regents for Higher
Education shall make contribu tions to the System with
respect to such employees at the rate of seven and
fifty-five hundredths percent (7.55 %) of the regular
annual compensation of the member not in excess of any
applicable maximum compensation level of the member.
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c. Beginning January 1, 2009, through December 31, 2009,
a participating employer that employs an employee of a
comprehensive university or a regional institution
offering a four-year degree program as designated or
authorized by the Oklahoma State Regents for Higher
Education shall make contributions to the System with
respect to such employees at the rate of eight and
five hundredths percent (8.05%) of the regular annual
compensation of the member not in excess of any
applicable maximum compensation level of the member.
d. Beginning January 1, 2010, through June 30 , 2010, a
participating employer that employs an employee of a
comprehensive university or a regional institution
offering a four-year degree program as designated or
authorized by the Oklahoma State Regents for Hi gher
Education shall make contributions to the System with
respect to such employees at the rate of eight and
fifty-five hundredths percent (8.55%) of the regular
annual compensation of the member not in excess of any
applicable maximum compensation level of the member.
e. Beginning July 1, 2010, through June 30, 2011, and for
each fiscal year thereafter , a participating employer
that employs an employee of a comprehensive university
or a regional institution offering a four -year degree
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program as designate d or authorized by the Oklahoma
State Regents for Higher Education shall make
contributions to the System with respect to such
employees at the rate of eight and fifty -five
hundredths percent (8.55%) of the regular annual
compensation of the member not in excess of any
applicable maximum compensat ion level of the member.
The employer contribution rate increase that would otherwise be
effective as provided by subparagraphs b, c, d and e of this
paragraph shall not become effective as law unless funding level s
are increased so that the additional emp loyer contribution
obligation is funded through such an appropriation or transfer of
monies instead of requiring the additional employer contribution to
be paid for from existing budgetary resources of such partici pating
employers. The participating emplo yers shall use any monies
specifically made available for purposes of making employer
contributions for such purpose and to the extent of the funds made
available for that purpose.
3. Any employer contribution pai d to the System pursuant to
this subsection shall not be considered as salary, fringe benefit,
or total compensation due to members for the purpose of meeting any
legislative or contractual obligation of the employer.
4. Effective November 1, 20 22, an employer shall be required to
make payment to the Teachers’ Retirement System of Oklahoma in the
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amount described by subsection A of Section 9 of this act with
respect to any employee who is a participant in the defined
contribution system created pursuant to the provisions of Sections 1
through 10 of this act. The employer shall be required to make the
required matching contribution amount for all employees that
participate in the defined contribution system and to remit the
difference between such amount an d the amount the employer would
otherwise have paid pursuant to the provisions of this section to
the System.
B. For entities or institutions within The Oklahoma State
System of Higher Education, the contributions to the System shall be
made on regular annual compensation of a member who is an employee
of such entity or institution not to exceed the m aximum compensation
level in effect for the member as prescribed by law.
C. Employers paying contributions to the System pursuant to
subsection A or B of thi s section shall receive credit for that
portion of the gross production tax on natural gas and/or casinghead
gas apportioned to the System pursuant to subsection 2 of Section
1004 of Title 68 of the Oklahoma Statutes in meeting the total
required employer contribution. On an annual basis, the Board of
Trustees of the Teachers ’ Retirement System of Okl ahoma shall
estimate the net additional cost required to be paid by the
contributing employers in order to meet the total employer
contribution as provided in subsection A or B of this section. The
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Board of Trustees shall approve the amount of the additio nal
contribution required to be paid by contributing employers as a
percentage of total member salaries and fringe benefits for each
fiscal year ending June 3 0, no later than April 1 of the previous
fiscal year. In no event shall the additional contributi on required
to be paid by the contributing employer under this subsection be
less than the contribution required under this subsection in the
prior year. In the event actual contributions do not equal the
required total contribution as provided in subsect ion A or B of this
section, the net difference between the actual contributions and the
required total contributions shall be determined and shall be
included in the amount of the additional contribution requir ed to be
paid by contributing employers for th e next fiscal year. All
contributing employers shall pay the same percentage of total member
salaries and fringe benefits during each fiscal year. The
provisions of this subsection shall terminate June 30, 19 99.
D. Any school district, state college or university, State
Board of Education, State Board of Career and Technology Education,
or other state agency may, for and on behalf of any member of the
System, pay all or any portion of the contribution require d by
Section 17-108 of this title. Provided, the contribution so paid by
any school district, state college or university, State Board of
Education, State Board of Career and Technology Education, or oth er
state agency shall be and remain subject to the w ithdrawal
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provisions set forth under the Syste m. Wherever the term
“contribution” is used, it shall be deemed to include contributions
paid for and on behalf of a member by a school district, state
college or university, State Board of Education, State Bo ard of
Career and Technology Education, or oth er state agency.
E. All participating employers shall provide a complete record
of the total compensation paid to each employee, including any
person who is a retired member of the System, whether or not
employer and employee contributions are made with r espect to such
compensation. The employer shall provide the report required by
this subsection on a monthly basis on a form or using such method as
the Teachers’ Retirement System of Oklahoma may require and shall
provide a comprehensive annual report sho wing the correct
compensation, service credit and contributions for the prior fiscal
year. Each participating employer shall provide reasonable access
to its payroll records, records of contribution payments t o the
System and all other records relevant to the participation of its
employees in the System, to the System, its employees or authorized
agents. A participating employer shall cooperate with auditors
retained by the System to audit its financial statem ents or
otherwise audit the financial operatio ns of the System.
SECTION 12. AMENDATORY 70 O.S. 2011, Section 17 -121, as
amended by Section 607, Chapter 304, O.S.L. 2012 (70 O.S. Supp.
2020, Section 17-121), is amended to read as fo llows:
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Section 17-121. A. Effective July 1, 1999, for each active
contributing member of the Teachers ’ Retirement System of Oklahoma,
except as otherwise provided by subsection E of this section, who is
making contributions of at le ast Twenty-five Dollars ($25.00) per
month to a plan account maintained by the Teachers ’ Retirement
System of Oklahoma pursuant to Section 403(b) of Title 26 of the
United States Code, 26 U.S.C. Section 403(b), the Teachers ’
Retirement System shall pay eac h month from funds appropriated to
the Oklahoma Teachers ’ Deferred Savings Incentive Plan Fund created
pursuant to this section the sum of Twenty -five Dollars ($25.00) to
a plan established pursuant to the Internal Revenue Cod e, Section
401(a), for the benefit of the participant.
B. If monies in the Oklahoma Teachers ’ Deferred Savings
Incentive Plan Fund are insufficient to fully fund the contributions
in any month, payments shall be suspended until such time as
sufficient monies are available.
C. The Teachers’ Retirement System shall be responsible for
establishing rules and plan documents for administration of the
contributions authorized by this section. Fun ds so credited shall
be held and invested in the same manner as fu nds managed in accounts
of members contributing to an account established pursuant to
Section 403(b) of the Internal Revenue Code of 1986, as amended.
D. There is hereby created in the Stat e Treasury a revolving
fund to be designated the “Oklahoma Teachers’ Deferred Savings
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Incentive Plan Fund”. The fund shall be a continuing fund, not
subject to fiscal year limitations, and shall consist of any monies
the Legislature may appropriate or tra nsfer to the fund and any
monies contributed for the fund from any other sources, public or
private. All monies accruing to the credit of said fund are hereby
appropriated and may be budgeted and expended by the Teachers ’
Retirement System of Oklahoma for the matching of deferred
compensation contributions pursuant to t his section and in
accordance with rules promulgated by the Teachers’ Retirement System
of Oklahoma. Expenditures from the fund shall be made by warrants
issued by the State Treasurer again st claims filed as prescribed by
law with the Director of the Offi ce of Management and Enterpris e
Services for approval and payment.
E. The provisions of this section shall not apply to an
employee who participates in the defined contribution system
administered by the Teachers’ Retirement System of Oklahoma on or
after November 1, 2022.
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