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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
SENATE BILL 973 By: Garvin
AS INTRODUCED
An Act relating to the Teachers ' Retirement System of
Oklahoma; amending 62 O.S. 2011, Section 3103, as
last amended by Section 2, Chapte r 120, O.S.L. 2018
(62 O.S. Supp. 2020, Section 3103), which relates to
the Oklahoma Pension Legislation Actuarial Analysis
Act; modifying definitions; amending 70 O.S. 2011 ,
Section 17-116.10, as last amended by Section 2,
Chapter 270, O.S.L. 2017 (70 O.S . Supp. 2020, Section
17-116.10), which relates to postretirement earnings
limitations; modifying restrictions with respect to
postretirement employment; prescribing maximum amount
of postretirement earnin gs; prescribing requirements
related to postretirem ent earnings; modifying
provision related to employee contributions;
prohibiting accrual of postretirement service credit;
providing for applicability of certain provisions
regardless of certain election ; amending Section 3,
Chapter 394, O.S.L. 2013, as la st amended by Section
1, Chapter 10, 2nd Extraordinary Session, O.S.L. 2018
(70 O.S. Supp. 2020, Section 18-114.14), which
relates to the minimum salary schedule; modifying
provisions related to employment of retired teachers;
providing school districts no t subject to certain
pre-termination procedural requirements; prescribing
maximum duration of postretirement contacts;
providing school districts not required to rehire
certain persons based upon previous contract;
providing for codification; and providing effective
dates.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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SECTION 1. AMENDATORY 62 O.S. 2011, Section 3103, as
last amended by Section 2, Chapter 120, O .S.L. 2020 (62 O.S. Supp.
2020, Section 3103), is a mended to read as follows:
Section 3103. As used in the Oklahoma Pension Legislation
Actuarial Analysis Act:
1. "Amendment" means any amendment, includin g a substitute
bill, made to a retirement bill by any committee of the House or
Senate, any conferenc e committee of the House or Senate or by t he
House or Senate;
2. "RB number" means that number preceded by the letters "RB"
assigned to a retirement bill by the respective staffs of the
Oklahoma State Senate and the Oklahoma House of Representatives when
the respective staff office prepares a ret irement bill for a member
of the Legislature;
3. "Legislative Actuary" means the firm or entity that enters
into a contract with the Legislative Service Bureau pu rsuant to
Section 452.15 of Title 74 of the Oklahom a Statutes to provide the
actuarial services and other duties provided for in the Oklahoma
Pension Legislation Actuarial Analysis Act;
4. "Nonfiscal amendment" means an amendment to a retirement
bill having a fiscal impact, which amendment does not change any
factor of an actuarial investigation specified in subsection A of
Section 3109 of this title;
5. "Nonfiscal retirement bill " means a retirement bill:
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a. which does not affect the cost or funding fact ors of a
retirement system, or
b. which affects such factors only in a manner which does
not:
(1) grant a benefit increase under the retirement
system affected by the bill,
(2) create an actuarial accrued liability for or
increase the actuarial accrued lia bility of the
retirement system affected by the bil l, or
(3) increase the normal cost of the retirement system
affected by the bill,
c. which authorizes the purchase by an acti ve member of
the retirement system, at the actuarial cost for the
purchase as computed pursuant to the statute in effect
on the effective date of the measure allowing such
purchase, of years of service for purposes of reaching
a normal retirement date in t he applicable retirement
system, but which cannot be used in order to compute
the number of years of service for purposes of
computing the retirement benefit for the member,
d. which provides for the computation of a service -
connected disability retiremen t benefit for members of
the Oklahoma Law Enforcement Retirement System
pursuant to Section 2-305 of Title 47 of the Oklahoma
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Statutes if the members were unable to complete twenty
(20) years of service as a result of the disability,
e. which requires membership in the defined benef it plan
authorized by Section 901 et seq. of Title 74 of the
Oklahoma Statutes for persons whose first el ected or
appointed service occurs on or after November 1, 2018,
if such persons had any prior service in the Oklahoma
Public Employees Retirement Syste m prior to November
1, 2015,
f. which provides for a o ne-time increase in retirement
benefits if the incr ease in retirement benefits is not
a permanent increase in the gross annual retirement
benefit payable to a member or benef iciary, occurs
only once pursuant to a single statutory authorization
and does not exceed:
(1) the lesser of two percent (2%) of the gross
annual retirement benefit of the member or One
Thousand Dollars ($1,000.00) and requires that
the benefit may only be provided if the funded
ratio of the affected retirement system would not
be less than sixty percent (60%) but not greater
than eighty percent (80%) after the benefit
increase is paid,
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(2) the lesser of two percent (2%) of the gross
annual retirement benef it of the member or One
Thousand Two Hundred Dollars ($1,200.00) and
requires that the benefit may only be provided if
the funded ratio of the affected retirement
system would be greater than eighty percent (80%)
but not greater than one hundred percent (1 00%)
after the benefit incre ase is paid,
(3) the lesser of two percent (2%) of the gross
annual retirement benefit of the member or O ne
Thousand Four Hundred Dollars ($1,400.00) and
requires that the benefit may only be provided if
the funded ratio of the affected retirement
system would be greater than one hundred percent
(100%) after the benefit increase is paid, or
(4) the greater of two percent (2%) of the gross
annual retirement benefit of the volunteer
firefighter or One Hundred Dollars ($100.00) for
persons who retired from the Oklahoma
Firefighters Pension and Retirement System a s
volunteer firefighters and who did not retire
from the Oklahoma Firefighters Pension and
Retirement System as a paid firefighter.
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As used in this subparagraph, "funded ratio" means the
figure derived by dividing the actuarial value of
assets of the applicable retirement system by the
actuarial accrued li ability of the applicable
retirement system, or
g. which modifies the disability pension standard for
police officers who a re members of the Oklahoma P olice
Pension and Retirement System as provided by Sec tion 3
of this act,
h. which modifies the postretir ement earnings limit
pursuant to Section 17-116.10 of Title 70 of the
Oklahoma Statutes, or
i. which modifies the postretirement prov isions of the
minimum salary schedule , pursuant to subsection F of
Section 18-114.14 of Title 70 of the Oklahoma
Statutes.
A nonfiscal retirement bill shall include any retiremen t bill that
has as its sole purpose the appropriation or distribution or
redistribution of mo nies in some manner to a retirement system for
purposes of reducing the unfunded liability of such system or the
earmarking of a portion of the revenue from a tax to a retirement
system or increasing the percentage of the revenue earmarked from a
tax to a retirement system;
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6. "Reduction-in-cost amendment" means an amendment to a
retirement bill having a fiscal impact which reduces the cost of the
bill as such cost is determined by the actuarial investigation for
the bill prepared pursuant to Section 3109 of this title;
7. "Retirement bill" means any bill or jo int resolution
introduced or any bill or joint reso lution amended by a member of
the Oklahoma Legislature which creates or amends any law directly
affecting a retirement system. A retirement bill sh all not mean a
bill or resolution that impacts the revenu e of any state tax in
which a portion of the revenu e generated from such tax is earmarked
for the benefit of a retirement system;
8. "Retirement bill having a fiscal impact " means any
retirement bill creating or establishing a retirement system and any
other retirement bill other than a nonfiscal retireme nt bill; and
9. "Retirement system" means the Teachers' Retirement System of
Oklahoma, the Oklahoma Public Employees Retirement System, the
Uniform Retirement System for Justices and Judges, the Oklahoma
Firefighters Pension and Retirement System, the Okl ahoma Police
Pension and Retirement System, the Oklahom a Law Enforcement
Retirement System, or a retirement system established after January
1, 2006.
SECTION 2. AMENDATORY 70 O.S. 2011, Section 17-116.10,
as last amended by Sectio n 2, Chapter 270, O.S.L. 2017 (70 O.S.
Supp. 2020, Section 17-116.10), is amended to read as follows:
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Section 17-116.10. A. Subject to the requir ements of Section
6-101.2 of this title and any other appl icable requirements of law,
a member with twenty-five (25) or more years of service may enter
into postretirement employment with a public sch ool of Oklahoma and
still receive monthly retirement benefits subject to the following
limitations:
1. A retired member is not eligible to be employed by the
public schools of Oklahoma, in any capacity, for sixty (60) calendar
days between the retiree's last day of preretirement public
education employment and any postretirement public education
employment. For purposes of this section, the term "last day of
preretirement employment" shall mean the last day the employee is
required to be physically presen t on the job to complete the terms
of the employment contract or agreement. An employee on paid leave
is still considered to be employed for purposes of this sec tion.
Employment under any conditions during this time, volunteer services
for the purpose of obtaining a paid position at a later date, or
payment at a later time for services performed during th is time
period shall cause the forfeiture of all retirement benefits
received during the period ;
2. Unless otherwise provided in paragraph 3 of this sub section,
earnings from the public scho ols may not exceed one -half (1/2) of
the member's final average salary used in computing retirement
benefits, or the Earning s Limitation for employees allowed by the
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Social Security Administration, whichever is less. For retired
members under the age of s ixty-two (62) years, the limit on allowed
earnings from the publi c schools of Oklahoma for employment for the
performance of duties ordinarily performed by classified or
nonclassified personnel shall be the lesser of F ifteen Thousand
Dollars ($15,000.00) o r one-half (1/2) of the member 's final average
salary used in computing retirement benefits unless the earnings
limitation allowed by the Social Security Administration would be
greater than Fifteen Thousand Dollars ($ 15,000.00). For retired
members sixty-two (62) years of age or older the limit on allowed
earnings from the public schools of Oklahoma for the performance of
duties ordinarily performed by classified or nonclassified personnel
shall be the lesser of Thirt y Thousand Dollars ($30,000.00) or one -
half (1/2) of the member 's final average salary used in computin g
retirement benefits. For purposes of this paragraph, the following
shall apply:
a. earnings shall mean "regular annual compensation " as
defined in paragraph (25) of Section 17-101 of this
title, and shall include any payment by a public
school for services rendered by a retired member who
is employed for any pu rpose whatsoever. Supplemental
retirement payments paid by a former public school
employer pursuant to subsection 9 of Section 17 -105 of
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this title or other state law shall not be considered
as earnings,
b. the Earnings Limitation for employees allowed by the
Social Security Administration to workers between the
age of sixty-two (62) years and six ty-five (65) years
shall apply to retired members below the age of sixty -
two (62) years,
c. the limit on allowed earnings from the public schools
shall be automatically adjusted effective the first
day of January of each year to reflect the current
Earnings Limitation for employees as determin ed from
time to time by the Social Security Administration,
d. the earnings limit for the calendar year in which a
member retires shall be one-twelfth (1/12) of the
annual limit multiplied by the number of months the
member is eligible to work and receive payments from
the public schools of Oklahoma,
e. earnings in excess of the maximum limit on allowed
earnings from public sch ools of Oklahoma shall result
in a loss of future retirement benefits for the year
the postretirement employment was performed of On e
Dollar ($1.00) for each One Dollar ($1.00) earned over
the maximum allowed earnings amount,
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f. for those members age seven ty (70) years and over, the
earnings in excess of the maximum limit allowed
earnings from public schools of Oklahoma shall be one -
half (1/2) the member's final average salary used in
computing retirement benefits. However, any retired
member receiving ben efits from the Retirement System
who reached age seventy (70) years prior to July 1,
1991, shall not be restricted by the earnings l imits
pursuant to this subparagraph until January 1, 1994.
To qualify for the provisions of this subparagraph,
the member must be employed less than one -half (1/2)
time compared to other full -time employees in similar
positions;
3. Notwithstanding paragr aph 2 of this subsection, a retired
classified or nonclassified m ember who has been retired for thirty -
six (36) or more mont hs and who is employed by a public school to
perform duties ordinarily performed by classified or nonclassified
personnel shall be a ble to receive annualized earnings from the
public school with no reduction in retirement benefits regardless of
the amount of annualized earnings. For a period of three (3) years
beginning July 1, 2017, members who h ave retired as of July 1, 2017,
as active classroom teachers, who have been retired and receiving a
benefit for at least one (1) year, and who have not been emplo yed by
any public school during that one -year period, shall be eligible to
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be reemployed as an active classroom teacher in common or career
tech school districts, with no limitations on earnings. The one-
year period starts with the retiree 's last day of preretirement
public education employment. Members returning under this section
shall not be subject to any earning limitations foll owing the end of
the three-year period described in this paragrap h. Members
returning under this section shall only be empl oyed pursuant to a
temporary contract; and
4. A member shall be considered to be employed by a school
district to perform the dutie s ordinarily performed by classified or
nonclassified personnel if the member is hired by the school
district in the member 's individual capacity to perform the duties
or if the member performs the duties through emplo yment with a
proprietorship, partnersh ip, corporation, limited liability company
or partnership, or a ny other business structure that has agreed or
contracted to provide the services to the school district ;
3. For the first year a retired member is employ ed full-time by
a public school distri ct, the maximum compensation amount shall be
Thirty-six Thousand Six Hundred One Dollars ($36,601.00). For all
years of service after the first twelve (12) months after a member
retires from the System, there shall be no minimum salary
requirement and the provisions of Section 18 -114.14 of this title
shall not be applicable to compensation paid by a public school
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district to a retired member of the System for full -time employment;
and
4. For the second and subsequent years that a retired member is
employed full-time by a public school district, the maximum
compensation amount shall be Fifty Thousand Dollars ($50,000.00) and
the provisions of Section 18 -114.14 of this title shall not be
applicable to compensation paid by a public school district for
full-time employment to a retired member of the System .
B. A public school district that employs a retired member shall
be required to make contributions to the System for the retired
member in an amount as required in Sect ion 17-108.1 and in paragraph
3 of subsection B of Section 17 -116.2 of this title. A retired
member employed pursuant to the provisions of this section shall not
accrue any additional service credit in the Teachers ' Retirement
System of Oklahoma resulting from performance of postretirement
employment with a school district. The provisions of this section
for payment of employer contribution amounts and the provisi ons
prohibiting accrual of additional service credit shall be applicable
regardless of whether the member is receiving his or her retirement
benefit or not and shall not depend upon any election the member
might exercise to suspend or delay receipt of the retirement benefit
amount.
C. For purposes of this section, postretirement employment of
less than one thousand (1,000) hours p er year with the Governor, the
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State Senate, the House of Represen tatives or the Legislative
Service Bureau shall not be conside red as postretirement employment
with a public school of Oklahoma.
D. The Board of Truste es of the Teachers' Retirement System of
Oklahoma shall promulgate such rules as are necessary to implem ent
the provisions of this section.
E. A member who has enter ed into postretirement employment with
a participating employer of the Teachers ' Retirement System of
Oklahoma must fully comply with all the provisions of the rules
promulgated by the Board of Trustees pursuant to this section in
order to continue receivi ng his or her monthly retirement benefit.
SECTION 3. AMENDATORY Section 3, Chapter 394, O.S.L.
2013, as last amended by Section 1, Chapter 10, 2nd Extraordinary
Session, O.S.L. 2018 (70 O.S. Supp. 2020, Section 18-114.14), is
amended to read as follows:
Section 18-114.14 A. Beginning with the 2018 -2019 school year,
certified personnel, as defined in Section 26 -103 of this title, in
the public schools of Oklahoma shal l receive in salary and/or fringe
benefits not less than the amo unts specified in the following
schedule:
MINIMUM SALARY SCHEDULE
National
Years of Bachelor's Board Master's Doctor's
Experience Degree Certification Degree Degree
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0 $36,601 $37,759 $37,991 $39,381
1 $37,035 $38,193 $38,425 $39,815
2 $37,469 $38,628 $38,859 $40,249
3 $37,904 $39,062 $39,294 $40,684
4 $38,338 $39,496 $39,728 $41,118
5 $38,810 $39,968 $40,200 $41,590
6 $39,273 $40,432 $40,663 $42,054
7 $39,737 $40,895 $41,127 $42,517
8 $40,200 $41,358 $41,590 $42,980
9 $40,663 $41,822 $42,054 $43,444
10 $41,684 $42,844 $43,568 $45,945
11 $42,177 $43,336 $44,061 $46,438
12 $42,670 $43,829 $44,554 $46,931
13 $43,162 $44,322 $45,047 $47,424
14 $43,655 $44,815 $45,539 $47,916
15 $44,167 $45,327 $46,052 $48,430
16 $44,660 $45,820 $46,545 $48,923
17 $45,153 $46,313 $47,038 $49,416
18 $45,646 $46,806 $47,531 $49,909
19 $46,139 $47,299 $48,024 $50,402
20 $46,652 $47,813 $48,538 $50,917
21 $47,145 $48,306 $49,031 $51,410
22 $47,639 $48,799 $49,524 $51,903
23 $48,132 $49,292 $50,018 $52,397
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24 $48,625 $49,785 $50,511 $52,890
25 $50,049 $51,232 $51,971 $54,395
Master's Degree +
Years of National Board
Experience Certification
0 $39,149
1 $39,583
2 $40,018
3 $40,452
4 $40,886
5 $41,358
6 $41,822
7 $42,285
8 $42,749
9 $43,212
10 $44,728
11 $45,221
12 $45,713
13 $46,206
14 $46,699
15 $47,212
16 $47,705
17 $48,198
18 $48,691
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19 $49,184
20 $49,698
21 $50,192
22 $50,685
23 $51,178
24 $51,671
25 $53,153
B. 1. When determining the Minimum Salary Schedule, "fringe
benefits" shall mean all or part of retirement benefits, exclud ing
the contributions made pursuant to subsection A of Section 17 -108.1
of this title and the flexible benefit allowance pursuant to Section
26-105 of this title from the flexible benefit allo wance funds
disbursed by the State Board of Education and the St ate Board of
Career and Technology Education pursuant to Section 26 -104 of this
title.
2. If a school district intends to provide retirement benefits
to a teacher such that the teacher 's salary would be less than the
amounts set forth in the minimum salar y schedule specified in
subsection A of this section, the district shall be require d to
provide written notification to the teacher prior to his or her
employment or, if already employed by th e district, no later than
thirty (30) days prior to the date the district elects to provide
retirement benefits such that the teacher 's salary would be less
than the minimum salary schedule.
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C. Any of the degrees referred to in this section shall be from
a college recognized by the State Board of Education. The Board
shall accept teaching experience from out -of-state school districts
that are accredited by the state board of education or appropriate
state accrediting agency for the districts. The Board s hall accept
teaching experience from out-of-country schools that are accredited
or otherwise endorsed by the appropriate national or regional
accrediting or endorsement authority. Out -of-country certification
documentation in a language other than English shall be analyzed by
an educational credential evaluation servi ce in accordance with
industry standards and guidelines and approved by the State
Department of Education. The person seeking to have credit granted
for out-of-country teaching experience sha ll be responsible for all
costs of the analysis by a credential evaluation service. The Board
shall accept teaching experience from primary and se condary schools
that are operated by the United States Department of Defense or are
affiliated with the Unite d States Department of State.
D. For the purpose of state salar y increments and retirement,
no teacher shall be granted credit for more than five (5) years of
active duty in the military service or out -of-state or out-of-
country teaching experience as a c ertified teacher or its
equivalent. Nothing in this section sha ll prohibit boards of
education from crediting more years of experience on district salary
schedules than those allowed for state purposes.
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E. The State Board of Education shall recognize, fo r purposes
of certification and salary increments, all the years of experience
of a:
1. Certified teacher who teaches in the educational program o f
the Department of Corrections, beginning with fiscal year 1981;
2. Vocational rehabilitation counselor und er the Department of
Human Services if the counselor was employe d as a certified teacher
by the State Department of Education when the Division of Vocational
Rehabilitation was transferred from the State Board of Career and
Technology Education or the Stat e Board of Education to the Oklahoma
Public Welfare Commission o n July 1, 1968;
3. Vocational rehabilitation counselor which were completed
while employed by the Department of Human Services if such counselor
was certified as a teacher or was eligible for certification as a
teacher in Oklahoma;
4. Certified teacher w hich were completed while employed by the
Department of Human Services Child Study Center at University
Hospital, if the teacher was certified as a teacher in Oklahoma; and
5. Certified school psychologist or psychometrist which were
completed while emplo yed as a doctoral intern, psychological
assistant, or psychologist with any agency of the State of Oklahoma
if the experience primarily involved work with persons of school - or
preschool-age and if the person was, at the time the experience was
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acquired, certified as, or eligible for certification as, a school
psychologist or psychometri st.
F. The provisions of this section shall not apply to teachers
who have retired from the Teachers ' Retirement System of Oklahoma
and who have entered into postretirement employment with a public
school in Oklahoma and are still receiving a monthly reti rement
benefit.
G. If a person employed as certified personnel, as defined in
Section 26-103 of this title, by a school district during the 2017-
2018 school year was receiv ing a salary above the step level
indicated by the State Minimum Salary Schedule fo r the 2017-2018
school year, the person shall receive a salary increase amount equal
to the amount indicated in subsection A of this section for the step
level indicated for the person, provided they remain employed by the
same district, unless the hours o r the duties of the certified
personnel are reduced proportionately.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 6-101.6c of Title 70, unless
there is created a duplication in numbering, read s as follows:
A. A school district, as defined in Section 1 -108 of Title 70
of the Oklahoma Statutes, that employs a retired member of the
Teachers' Retirement System of Oklahoma shall not be subject to any
provisions of law related to pre-termination procedur es.
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B. 1. All postretirement employment contracts shall be for a
period agreed to by the school d istrict and the retired member of
the System, not to exceed twelve (12) months. No school district
shall be obligated to rehire a retired member with whom the dis trict
has previously entered into a postretirement employment contract.
2. A school district shall not have any legal obligation to
enter into any postretirement employment contract with a retired
member of the System .
SECTION 5. Section 1 of this act shall become effective Oct ober
1, 2021.
SECTION 6. Sections 2, 3 and 4 of this act shall become
effective November 1, 20 21.
58-1-912 CB 1/21/2021 7:51:42 PM