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1	1	RBH No. 6524
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28	28	STATE OF OKLAHOMA
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30	30	1st Session of the 59th Legislature (2023)
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32	32	HOUSE BILL 2320 By: Hilbert
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38	38	AS INTRODUCED
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40	40	An Act relating to the Teachers' Retirement System;
41	41	amending 70 O.S. 2021, Section 17 -116.10, which
42	42	relates to postretirement employment ; modifying
43	43	provisions relating to retirement benefits; providing
44	44	an effective date; and declaring an emergency .
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52	52	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
53	53	SECTION 1. AMENDATORY 70 O.S. 2021, Section 17 -116.10,
54	54	is amended to read as foll ows:
55	55	Section 17-116.10 A. Subject to the requirements of Section 6 -
56	56	101.2 of this title and any other applicable requirements of law, a
57	57	member may enter into postretirement employ ment with a public school
58	58	of Oklahoma and still receive monthly retirement benefits subject to
59	59	the following limitations:
60	60	1. A retired member is not eligible to be employed by th e
61	61	public schools of Oklahoma, in any capacity, f or sixty (60) calendar
62	62	days between the retiree's last day of preretirement public
63	63	education employment and any postretirement public education RBH No. 6524
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90	90	employment. For purposes of this section, the term "last day of
91	91	preretirement employment " shall mean the last d ay the employee is
92	92	required to be physically present on the job to comple te the terms
93	93	of the employment contract or agreement. An employee on paid leave
94	94	is still considered to be employed for purposes of thi s section.
95	95	Employment under any conditions duri ng this time, volunteer servi ces
96	96	for the purpose of obtaining a paid posi tion at a later date, or
97	97	payment at a later time for services performed during this time
98	98	period shall cause the forfeiture of all retir ement benefits
99	99	received during the period;
100	100	2. Unless otherwise provided in p aragraph 3 of this subsection,
101	101	earnings from the public schools may not exceed one-half (1/2) of
102	102	the member's final average salary used in computing retirement
103	103	benefits, or the Earnings Limitation for employees allowed by the
104	104	Social Security Administration , whichever is less. For retired
105	105	members under the age of sixty-two (62) years, the limit on allowed
106	106	earnings from the public schools of Oklahoma for employment for the
107	107	performance of duties ordinarily performed by classified or
108	108	nonclassified personnel sh all be the lesser of Fifteen Thousand
109	109	Dollars ($15,000.00) or one-half (1/2) of the member's final average
110	110	salary used in computing retirement benefits unless the earnings
111	111	limitation allowed by the Social Security Administrati on would be
112	112	greater than Fifteen Thousand Dollars ($15,000.00). For retir ed
113	113	members sixty-two (62) years of age or older the limit on allowed RBH No. 6524
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140	140	earnings from the public schools of Oklahoma for the performance o f
141	141	duties ordinarily performed by classified or nonclassified personnel
142	142	shall be the lesser of Thirty Thousand Dollars ($3 0,000.00) or one-
143	143	half (1/2) of the member's final average salary used in computing
144	144	retirement benefits. For purposes of this paragraph , the following
145	145	shall apply:
146	146	a. earnings shall mean "regular annual compensat ion" as
147	147	defined in paragraph (25) of Section 17-101 of this
148	148	title, and shall include any payment by a public
149	149	school for services rendered by a retired member who
150	150	is employed for any purpose whatsoever. Supplemental
151	151	retirement payments paid by a former pub lic school
152	152	employer pursuant to subsection 9 of Section 17-105 of
153	153	this title or other state law shall not be considered
154	154	as earnings,
155	155	b. the Earnings Limitation for employees allow ed by the
156	156	Social Security Administration to w orkers between the
157	157	age of sixty-two (62) years and sixty-five (65) years
158	158	shall apply to retired members below the age of sixty-
159	159	two (62) years,
160	160	c. the limit on allowed earnings from the public schools
161	161	shall be automatically adjusted effective the first
162	162	day of January of each year to refle ct the current RBH No. 6524
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189	189	Earnings Limitation for emplo yees as determined from
190	190	time to time by the Social Security Administration,
191	191	d. the earnings limit for the calendar year in which a
192	192	member retires shall be one-twelfth (1/12) of the
193	193	annual limit multiplied by the number of months the
194	194	member is eligible to w ork and receive payments from
195	195	the public schools of Oklahoma,
196	196	e. earnings in excess of the maximum limit on allowed
197	197	earnings from public schools of Oklahoma shall result
198	198	in a loss of future retirement benefits fo r the year
199	199	the postretirement employment was performed of One
200	200	Dollar ($1.00) for each One Dollar ($1.00) earned over
201	201	the maximum allowed earnings amount,
202	202	f. for those members age seventy (70) years and over, the
203	203	earnings in excess of the maximum limit allo wed
204	204	earnings from public schools of Oklahoma shall be one-
205	205	half (1/2) the member's final average salary used in
206	206	computing retirement benefits. However, any retired
207	207	member receiving benefits from the Retirement System
208	208	who reached age seventy (70) years prio r to July 1,
209	209	1991, shall not be restricted b y the earnings limits
210	210	pursuant to this subparagraph until January 1, 1994.
211	211	To qualify for the provisions of this subparagraph,
212	212	the member must be employed less than one -half (1/2) RBH No. 6524
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239	239	time compared to other full -time employees in similar
240	240	positions;
241	241	3. Notwithstanding paragraph 2 of this subsection, a A retired
242	242	classified or nonclassified member who has been retired for thirty -
243	243	six (36) or more months and who is employed by a public school to
244	244	perform duties ordinarily p erformed by classified or nonclassified
245	245	personnel shall be able to receive annualized earnings from the
246	246	public school with no reduction in retirement benefits regardless of
247	247	the amount of annualized earnings. For a period of three (3) years
248	248	beginning July 1, 2017, members who have retired as of Ju ly 1, 2017,
249	249	as active classroom teachers, who have been retired and receiving a
250	250	benefit for at least one (1) year, and who have not been employed by
251	251	any public school during tha t one-year period, shall be eligible to
252	252	be reemployed as an active classroom te acher in common or career
253	253	tech school districts, with no limitations on earnings. For a
254	254	period of three (3) years beginning July 1, 20 21, members who have
255	255	retired as of July 1, 2020, who have been retired and rece iving a
256	256	benefit for at least one (1) year, and who have not been employed by
257	257	any public school during that one-year period, shall be eligible to
258	258	be reemployed as an active classroom teacher in common or career
259	259	tech school districts, with no limitations on earnings. The one-
260	260	year period starts with the retiree's last day of preretirement
261	261	public education employment. Members returning under this section
262	262	shall not be subject to any earning limitations following the end of RBH No. 6524
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289	289	the three-year periods described in this paragraph. Members
290	290	returning under this section shall only be employed pursuant to a
291	291	temporary contract; and
292	292	4. 3. A member shall be considered to be employed by a school
293	293	district to perform the duties ordina rily performed by classified or
294	294	nonclassified personnel if the m ember is hired by th e school
295	295	district in the member's individual capacity to perform the duties
296	296	or if the member performs the duties through em ployment with a
297	297	proprietorship, partnership, corp oration, limited liability company
298	298	or partnership, or any other business structure t hat has agreed or
299	299	contracted to provide the services to the school district.
300	300	B. A public school district that employs a re tired member shall
301	301	be required to make contribut ions to the System for the retired
302	302	member in an amount as require d in Section 17-108.1 and in paragraph
303	303	3 of subsection B of Section 17-116.2 of this title.
304	304	C. For purposes of this section, postretirement employment of
305	305	less than one thousand (1,000) hour s per year with the Governor, the
306	306	State Senate, the House of Repre sentatives or the Le gislative
307	307	Service Bureau shall not be considered as postretirement employment
308	308	with a public school of Oklahoma.
309	309	D. The Board of Trustees of the Teachers' Retirement System of
310	310	Oklahoma shall promulgate such rules a s are necessary to imp lement
311	311	the provisions of this section. RBH No. 6524
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338	338	E. A member who has entered into postretirement employment with
339	339	a participating employer of the Teacher s' Retirement System of
340	340	Oklahoma must fully c omply with all the provisions of the rules
341	341	promulgated by the Board of Trustees pursuant to this section in
342	342	order to continue receiving his or her monthly retirement benefit.
343	343	SECTION 2. This act shall become effective July 1, 2023.
344	344	SECTION 3. It being immediately necessary for the preservation
345	345	of the public peace, health or safety, an emergency is hereby
346	346	declared to exist, by reason whereof thi s act shall take effect and
347	347	be in full force from and after its passage and approval.
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349	349	59-1-6524 CMA 01/10/23
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351	351	THOMAS E. CUMMINS CONSULTING ACTUARY, INC.
352	352	2512 E. 71
353	353	st
354	354	Street , Suite D ∙ Tulsa, Oklah oma 74136
355	355	(918) 492-9658 ∙ (918) 492- 9659
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361	361	January 11, 2023
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365	365	Representative Kyle Hilbert
366	366	Room 406
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369	369	Re: RBH No. 6524
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372	372	RBH No. 6524 removes the earnings limitation for Oklahoma Teachers
373	373	Retirement System retired partici pants who returned to covered
374	374	employment and continue to receive benefit payments. They must have
375	375	been retired for at least 60 days.
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378	378	RBH No. 6524 is a fiscal bill as defined by OPLAAA . The change can
379	379	or might encourage a ctive teachers to retire sooner since they will
380	380	able to return to teaching while receiving retirement benefits.
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383	383	I am a member of the American Academy of Actuaries and meet the
384	384	Qualification Standards of the American Academy of Actuaries to
385	385	render the actuarial opinion herein.
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387	387
388	388	Thomas E. Cummins
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390	390	Thomas E. Cummins, MAAA
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392	392

Oklahoma 2023 Regular Session

Oklahoma House Bill HB2320 Compare Versions