RBH No. 6524
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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
HOUSE BILL 2320 By: Hilbert
AS INTRODUCED
An Act relating to the Teachers' Retirement System;
amending 70 O.S. 2021, Section 17 -116.10, which
relates to postretirement employment ; modifying
provisions relating to retirement benefits; providing
an effective date; and declaring an emergency .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 70 O.S. 2021, Section 17 -116.10,
is amended to read as foll ows:
Section 17-116.10 A. Subject to the requirements of Section 6 -
101.2 of this title and any other applicable requirements of law, a
member may enter into postretirement employ ment with a public school
of Oklahoma and still receive monthly retirement benefits subject to
the following limitations:
1. A retired member is not eligible to be employed by th e
public schools of Oklahoma, in any capacity, f or sixty (60) calendar
days between the retiree's last day of preretirement public
education employment and any postretirement public education RBH No. 6524
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employment. For purposes of this section, the term "last day of
preretirement employment " shall mean the last d ay the employee is
required to be physically present on the job to comple te the terms
of the employment contract or agreement. An employee on paid leave
is still considered to be employed for purposes of thi s section.
Employment under any conditions duri ng this time, volunteer servi ces
for the purpose of obtaining a paid posi tion at a later date, or
payment at a later time for services performed during this time
period shall cause the forfeiture of all retir ement benefits
received during the period;
2. Unless otherwise provided in p aragraph 3 of this subsection,
earnings from the public schools may not exceed one-half (1/2) of
the member's final average salary used in computing retirement
benefits, or the Earnings Limitation for employees allowed by the
Social Security Administration , whichever is less. For retired
members under the age of sixty-two (62) years, the limit on allowed
earnings from the public schools of Oklahoma for employment for the
performance of duties ordinarily performed by classified or
nonclassified personnel sh all be the lesser of Fifteen Thousand
Dollars ($15,000.00) or 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 Administrati on would be
greater than Fifteen Thousand Dollars ($15,000.00). For retir ed
members sixty-two (62) years of age or older the limit on allowed RBH No. 6524
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earnings from the public schools of Oklahoma for the performance o f
duties ordinarily performed by classified or nonclassified personnel
shall be the lesser of Thirty Thousand Dollars ($3 0,000.00) or one-
half (1/2) of the member's final average salary used in computing
retirement benefits. For purposes of this paragraph , the following
shall apply:
a. earnings shall mean "regular annual compensat ion" 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 purpose whatsoever. Supplemental
retirement payments paid by a former pub lic school
employer pursuant to subsection 9 of Section 17-105 of
this title or other state law shall not be considered
as earnings,
b. the Earnings Limitation for employees allow ed by the
Social Security Administration to w orkers between the
age of sixty-two (62) years and sixty-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 refle ct the current RBH No. 6524
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Earnings Limitation for emplo yees as determined 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 w ork and receive payments from
the public schools of Oklahoma,
e. earnings in excess of the maximum limit on allowed
earnings from public schools of Oklahoma shall result
in a loss of future retirement benefits fo r the year
the postretirement employment was performed of One
Dollar ($1.00) for each One Dollar ($1.00) earned over
the maximum allowed earnings amount,
f. for those members age seventy (70) years and over, the
earnings in excess of the maximum limit allo wed
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 benefits from the Retirement System
who reached age seventy (70) years prio r to July 1,
1991, shall not be restricted b y the earnings limits
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) RBH No. 6524
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time compared to other full -time employees in similar
positions;
3. Notwithstanding paragraph 2 of this subsection, a A retired
classified or nonclassified member who has been retired for thirty -
six (36) or more months and who is employed by a public school to
perform duties ordinarily p erformed by classified or nonclassified
personnel shall be able 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 have retired as of Ju ly 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 employed by
any public school during tha t one-year period, shall be eligible to
be reemployed as an active classroom te acher in common or career
tech school districts, with no limitations on earnings. For a
period of three (3) years beginning July 1, 20 21, members who have
retired as of July 1, 2020, who have been retired and rece iving a
benefit for at least one (1) year, and who have not been employed by
any public school during that one-year period, shall be eligible to
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 following the end of RBH No. 6524
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the three-year periods described in this paragraph. Members
returning under this section shall only be employed pursuant to a
temporary contract; and
4. 3. A member shall be considered to be employed by a school
district to perform the duties ordina rily performed by classified or
nonclassified personnel if the m ember is hired by th e school
district in the member's individual capacity to perform the duties
or if the member performs the duties through em ployment with a
proprietorship, partnership, corp oration, limited liability company
or partnership, or any other business structure t hat has agreed or
contracted to provide the services to the school district.
B. A public school district that employs a re tired member shall
be required to make contribut ions to the System for the retired
member in an amount as require d in Section 17-108.1 and in paragraph
3 of subsection B of Section 17-116.2 of this title.
C. For purposes of this section, postretirement employment of
less than one thousand (1,000) hour s per year with the Governor, the
State Senate, the House of Repre sentatives or the Le gislative
Service Bureau shall not be considered as postretirement employment
with a public school of Oklahoma.
D. The Board of Trustees of the Teachers' Retirement System of
Oklahoma shall promulgate such rules a s are necessary to imp lement
the provisions of this section. RBH No. 6524
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E. A member who has entered into postretirement employment with
a participating employer of the Teacher s' Retirement System of
Oklahoma must fully c omply with all the provisions of the rules
promulgated by the Board of Trustees pursuant to this section in
order to continue receiving his or her monthly retirement benefit.
SECTION 2. This act shall become effective July 1, 2023.
SECTION 3. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof thi s act shall take effect and
be in full force from and after its passage and approval.
59-1-6524 CMA 01/10/23
THOMAS E. CUMMINS CONSULTING ACTUARY, INC.
2512 E. 71
st
Street , Suite D ∙ Tulsa, Oklah oma 74136
(918) 492-9658 ∙ (918) 492- 9659
January 11, 2023
Representative Kyle Hilbert
Room 406
Re: RBH No. 6524
RBH No. 6524 removes the earnings limitation for Oklahoma Teachers
Retirement System retired partici pants who returned to covered
employment and continue to receive benefit payments. They must have
been retired for at least 60 days.
RBH No. 6524 is a fiscal bill as defined by OPLAAA . The change can
or might encourage a ctive teachers to retire sooner since they will
able to return to teaching while receiving retirement benefits.
I am a member of the American Academy of Actuaries and meet the
Qualification Standards of the American Academy of Actuaries to
render the actuarial opinion herein.
Thomas E. Cummins
Thomas E. Cummins, MAAA