RBH No. 5900
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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
HOUSE BILL 2755 By: Miller
AS INTRODUCED
An Act relating to retirement; amending 70 O.S. 2021,
Section 17-116.2, which relates to the Teachers'
Retirement System; providing that certain members may
receive credit for certain teaching service; and
providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 70 O.S. 2021, Section 17 -116.2, is
amended to read as follows:
Section 17-116.2 A. 1. Beginning July 1, 1987, and prior to
July 1, 1995, a member who retires on or after the member 's normal
retirement age or whose retirement is be cause of disability shall
receive an annual allowance for life, payable monthly, in an amount
equal to two percent ( 2%) of the member's highest three-year average
salary upon which member contributions were made, multiplied by the
number of the member 's years of creditable service. RBH No. 5900
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A classified member who retired prio r to July 1, 1986, shall
have the member's retirement allowance calculated on a minimum
average salary of Eleven Thousand Five Hundred Dollars ($11,500.00)
or on the member's current minimum av erage salary plus Two Thousand
Dollars ($2,000.00), whichever i s greater. Beginning July 1, 1994,
a classified member who retired prior to July 1, 1993, shall have
the member's retirement allowance calculated on the member 's current
minimum average salary plus Five Hundred Fifty Dollars ($550.00).
An unclassified member who retired prior to July 1, 1986, shall have
the member's retirement allowance calculated on a minimum average
salary of Nine Thousand Five Hundred Dollars ($9,500.00) or on the
member's current minimum average salary plus One Thousand Dollars
($1,000.00), whichever is greater. Beginning July 1, 1994, an
unclassified member who retired prior to July 1, 1993, shall have
the member's retirement allowance calculated on the member 's current
minimum average salary plus Two Hundred Seventy -five Dollars
($275.00). Those individuals receiving benefits pursuan t to
subsection (3) of Section 17 -105 of this title whose benefits
commenced prior to July 1, 1993, shall receive an increase in
benefits of two and one-half percent (2 1/2%). No retirement
benefit payments shall be made retroactively.
For those members retiring before normal retirement age, except
for those members retiring because of a disability, the retirement RBH No. 5900
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allowance shall be subject t o adjustment in accordance with the
actuarial equivalent factor s adopted by the Board of Trustees.
2. Beginning July 1, 1995, a member, who has no service
performed on or after July 1, 1995, for an entity or institution
within The Oklahoma State System of Higher Education, who retires on
or after the member's normal retirement age or whose retirement is
because of disability shall receive an annual allowance for life,
payable monthly as follows:
a. if the member becomes a member after June 30, 1995,
and was not eligible to become a member prior to July
1, 1995, in an amount equal to two percent (2%) of the
member's average salary upon which member
contributions were made, multiplied by the number of
the member's years of creditable service, or
b. if the member became a member or is eligible to become
a member prior to July 1, 1995, and elected to have a
maximum compensation level in excess of Twenty -five
Thousand Dollars ($25,000.00) pursuant to paragraph 1
of subsection C of this section or pursuant to
subsection E of this section, or if the member 's
salary has never exceeded Twenty-five Thousand Dollars
($25,000.00) prior to July 1, 1995, in an amount equal
to: RBH No. 5900
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(1) two percent (2%) of the member 's average salary
upon which member contributions were made not to
exceed Forty Thousand Dollars ($40,000.00),
multiplied by the number of the member 's years of
credited service authorized and performed prior
to July 1, 1995, plus any years of prior service
authorized under this title, plus
(2) two percent (2%) of the member's average salary
upon which member contributions were m ade,
multiplied by the number of the member 's years of
credited service authorized and performed after
June 30, 1995, or
c. if the member became a member or is eligible to become
a member prior to July 1, 1995, and was eligible to
elect to have a maximum c ompensation level in excess
of Twenty-five Thousand Dollars ($25,000.00) and did
not elect or elected not to have a maximum
compensation level of Forty Thousand Dollars
($40,000.00) pursuant to paragraph 1 of subsection C
of this section or pursuant to sub section E of this
section, in an amount equal to:
(1) two percent (2%) of the member 's average salary
upon which member contributions were made not to
exceed Twenty-five Thousand Dollars ($25,0 00.00), RBH No. 5900
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multiplied by the number of the member 's years of
credited service authorized and performed prior
to July 1, 1995, plus any years of prior service
authorized under this title, plus
(2) two percent (2%) of the member 's average salary
upon which member contributions were made,
multiplied by the number of the mem ber's years of
credited service authorized and perfor med after
June 30, 1995.
B. Except as otherwise provided for in this section, the amount
contributed by each member to the retirement syste m shall be:
1. Beginning July 1, 1992, through June 30, 1996, six percent
(6%) of the regular annual compensation o f such member not in excess
of Twenty-five Thousand Dollars ($25,000.00) and beginning July 1,
1995, through June 30, 1996, six percent (6%) of the maximum
compensation level;
2. Beginning July 1, 1996, through June 30, 1997, six and one -
half percent (6 1/2%) of the regular annual compensation of members,
who are not employed by an entity or institution within The Oklahoma
State System of Higher Education not in excess of Twenty-five
Thousand Dollars ($2 5,000.00) and beginning July 1, 1996, through
June 30, 1997, six and one-half percent (6 1/2%) of the regular
annual compensation of members, who are employed by an entity or RBH No. 5900
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institution within The Oklahoma State System of Higher Education,
not in excess of Twenty-five Thousand Dollars ($25,000.00);
3. Beginning July 1, 1997, seven percent (7%) of the regular
annual compensation of the member not in excess of any applicable
maximum compensation level of the member; and
4. All public schools in this state shall treat the employee
contributions as being picke d up under the provisions of Section 414
(h)(2) of the Internal Revenue Code of 1986 in determining tax
treatment.
Subject to Internal Reve nue Service approval, paragraph 4 of this
subsection shall not a pply to a comprehensive university group
established on or before July 1, 1998, whose employee contributions
were consistently treated as not picked up as of July 1, 1998, and
at all times thereafter.
C. 1. Prior to July 1, 1995, an active member of the System
may elect to have a maximum compensation level of Forty Thousand
Dollars ($40,000.00). Such an election shall be made in writing and
filed with the System. Members whose salaries are in excess of
Twenty-five Thousand Dollars ($25,000.00) on July 2 0, 1987, shall
file the election with the System prio r to January 1, 1988. Members
whose salaries exceed Twenty -five Thousand Dollars ($25,000.00)
after July 20, 1987, shall file the election when the salary exceeds
Twenty-five Thousand Dollars ($25,000.0 0). If a member makes such
an election, the member s hall contribute the following amounts: RBH No. 5900
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a. beginning July 1, 1992, through June 30, 1993, eleven
percent (11%) of the regular annual compens ation of
such member that is in excess of Twenty -five Thousand
Dollars ($25,000.00) and is not in excess of Forty
Thousand Dollars ($40,000.00),
b. beginning July 1, 1993, through June 30, 1994, nine
percent (9%) of the regular annual compensation of
such member that is in excess of Twenty-five Thousand
Dollars ($25,000.00) and is not in excess of Forty
Thousand Dollars ($40,000.00), and
c. beginning July 1, 1994, through June 30, 1995, eight
percent (8%) of the regular annual compensation of
such member that is in excess of Twenty-five Thousand
Dollars ($25,000.00) and is not in excess of Forty
Thousand Dollars ($40,000. 00). Except as provided in
subsection E of this section, any such election shall
be irrevocable.
2. After June 30, 1995, in addition to t he amount contributed
by each member to the retirement system pu rsuant to subsection B of
this section, the total amo unt contributed by each member to the
retirement system shall include, beginning July 1, 1995, through
June 30, 1997, seven percent (7%) of the regular annual compensation
of each member, who is not empl oyed by an entity or institution
within The Oklahoma State System of Higher Education, that is in RBH No. 5900
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excess of Twenty-five Thousand Dollars ($25,000.00) and beginning
July 1, 1996, through June 3 0, 1997, seven percent (7%) of the
regular annual compensation o f each member who is employed by an
entity or institution within The Oklahoma State System of Higher
Education in excess of Twenty -five Thousand Dollars ($25,000.00),
but not in excess of any applicable maximum compensation level of
the member.
D. 1. Any member who was a contributing member of the
Retirement System between July 1, 1987, and June 30, 1995, who at
the time the member was eligible to make an election to increase the
maximum compensation level of the member, failed to make an election
or chose not to increase the maximum compensation level of t he
member to Forty Thousand Dollars ($40,000.00), may elect to make
back contributions to the Retirement System. The member shall
complete a new election form and file with the Board of Trustees,
the form and a payment equaling the difference between the amount
contributed at the twenty -five-thousand-dollar level and the
appropriate contribution on compensation in excess of Twenty -five
Thousand Dollars ($25,000.00) up to a maximum of Forty Thousand
Dollars ($40,000.00) shall be made prior to the official r etirement
date of the member. The required payment shall include any
contribution required by the employing school district, and shall
include interest compounded annually at ten percent (10%) per annum
of both employer and employee contributions. RBH No. 5900
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2. Any changes made pursuant to this subsection shall be
irrevocable.
E. 1. An individual who withdrew from the Teachers ' Retirement
System and whose salary was in excess of Seven Thousand Eight
Hundred Dollars ($7,800.00) and had elected to contribute only on
Seven Thousand Eight Hundred Dollars ($7,800.00) before his or her
withdrawal shall contribute on the earning ceiling as provided for
in this section on his or her reentry into membership in the
Teachers' Retirement System.
2. An individual who elected t o contribute on a maximum of
Seven Thousand Eight Hundred Dollars ($7,800.00) per annum shall,
beginning July 1, 1979, contribute on his or her earning ceiling as
provided for in this section.
3. Any member who elected to contribute on Seven Thousand Eigh t
Hundred Dollars ($7,800.00) prior to January 1, 1978, and whose
salary was more than Seven Thousand Eight Hundred Dollars
($7,800.00) during the school years 1974-75 through 1978-79 may
elect to make back contributions to the retirement system by paying
the five percent (5%) contributions on the difference between Seven
Thousand Eight Hundred Dollars ($7,800.00) and the actual salary of
the member, not to exceed Ten Thousand Dollars ($10,000.00) for eac h
applicable school year, plus interest compounded an nually at ten
percent (10%) per annum. Such payment shall be made prior to the
official retirement date of the member. RBH No. 5900
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F. Each employer shall cause to be deducted from the salary of
each member on each and every payroll of such employer for each and
every payroll period, the proper percentage of his or her earnable
compensation as provided for in subsection B or subsection C of this
section.
1. Deductions shall begin with the first payroll period of th e
school year. In determining the amount earnable by a member in a
payroll period, the Board of Trustees shall consider the rate of
annual compensation payable to such member on the first day of the
payroll period as continuing throughout such payroll per iod, and it
may omit deductions from compensation for any period less than a
full period, and to facilitate the making of deductions, it may
modify the deduction required of any member by such an amount as
shall not exceed one-tenth of one percent (1/10 of 1%) of the annual
compensation upon the basis of whi ch such deduction is to be made.
Prior to January 1, 1991, any active contributing member who joined
the System subsequent to July 1, 1943 , may pay the normal cost,
which shall mean the single sum which would have been paid under
existing statutes at the time the service was performed, plus
interest, for years of teaching service in Oklahoma from the date of
establishment of the System in 19 43 to date of membership, in a lump
sum, or in installments equa l to establishing one (1) year of
creditable service. Effective January 1, 1991, any active
contributing member who joined the System subsequent to July 1, RBH No. 5900
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1943, may pay the amount determined by the Board of Trustees
pursuant to Section 17 -116.8 of this title for years of teaching
service in Oklahoma from t he date of establishment of the System in
1943 to date of membership, in a lump sum, or in installments equal
to establishing one (1) year of creditable service. For purposes of
this option, teaching se rvice in Oklahoma shall include the teaching
of vocational agricultural courses within Oklahoma for the federal
government. Years for which contributions are paid shall count as
membership service under this plan. A member may receive credit for
not more than five (5) years of teaching service rendered whi le in
the Peace Corps, AmeriCorps Volunteers in Service to America , or in
the public schools of a territory of the United States or the public
schools, American Military Dependent Schoo ls or state colleges or
state universities outside this state by paying his or her
contributions, plus interest, and membership fees to the retirement
system, subject to the regulations of the Board of Trustees,
providing he or she is not receiving and is not eligible to receive
retirement credit or benefits from said service in any other public
retirement system of this state, or any other state or territory of
the United States subject to the following provisions:
a. the member is required to have two (2) years of
employed service teaching earned in Oklahoma for each
year of Peace Corps, AmeriCorps Volunteers in Service RBH No. 5900
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to America, territorial, out-of-state, noncovered in -
state or military membership credit granted.
b. prior to January 1, 1991, the out -of-state or
noncovered in-state payment shall be the normal cost,
which means the single sum which would have been paid
under existing law at the time the service was
performed, plus interest, on the basis of what his or
her annual salary would have been in Oklahoma or out
of state, whichever is greater , had he or she been
employed as a teacher. Effective January 1, 1991, the
The Peace Corps, AmeriCorps Volunteers in Service to
America, territorial, out-of-state or noncovered in -
state payment shall be the amount determined by the
Board of Trustees pursuant to Section 17 -116.8 of this
title.
2. In addition to the deductions hereinabove provided for, any
member who becomes a member of the Armed Forces of the United States
of America during any period of national emergency, inclu ding World
War II, the Korean conflict, the Vietnam c onflict or others as may
be determined by the Board of Trustees, or whose entrance into or
training for the teaching profession was interrupted by his or her
entrance into the Armed Forces, and who was o r shall have become a
member of the Teachers ' Retirement System shall be granted the
privilege of making up his or her five percent (5%) contributions as RBH No. 5900
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provided for in this section until January 1, 1991, for not to
exceed five (5) years of service in the Armed Forces by electing to
pay said contributions o n the basis of the rate of pay in his or her
contract as a teacher at the time his or her service in the Armed
Forces commenced or in the case of a teacher who w as not teaching
prior to entering the Arme d Forces, on the basis of the salary of
the first year of teaching after being honorably discharged from the
Armed Forces. Effective January 1, 1991, the member will receive
such service upon payment of the amount determined by the Board of
Trustees pursuant to Section 17-116.8 of this title. Such
contributions shall be credited in the regular manner, and the
period for which said contributions were paid shall be counted as
creditable years of service and allocate d to the period during which
the military service was rendered, except that the period for whic h
contributions were paid must have been continuous and shall be
credited in the aggregate, regardless of fiscal year limitations.
Notwithstanding any provision herein to the contrary, contributions,
benefits and service credit with respect to qualified m ilitary
service as defined by Section 414(u) of the Internal Revenue Code of
1986 shall be provided in accordance with Section 414(u) of the
Internal Revenue Cod e.
3. Retirement benefits for all service credits purchased
pursuant to this subsection shall be determined in accordance with
the provisions of paragraph 2 of this subsection. RBH No. 5900
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G. Effective July 1, 2004, the total creditable service of a
member who retires or terminates employment and elects a v ested
benefit shall include not to exceed one hundred twenty (120) days of
unused sick leave accumulated subsequent to August 1, 1959. Twenty
(20) days of unused sick leave shall equal one (1) month for
purposes of creditable service credit. If the membe r becomes a
member or was eligible to become a member prior to July 1, 1995, the
year of credit received in this section shall be treated as service
earned prior to July 1, 1995. This subsection shall apply to
members retiring or vesting on or after the e ffective date of this
act and shall not be retroactiv e.
H. Any member who:
1. Shall be absent from the teaching service because of
election to the State Legislature or appointment to the executive
branch in an education-related capacity shall be allowed thirty (30)
days from the date as of which the person is officially elected or
appointed to file an election with the Teachers ' Retirement System
to retain his or her membership in the Teachers ' Retirement System
upon payment of the contribution required o f other members and
employers of said members as prov ided for in this section and his or
her service credits shall continue to be accumulated during such
absence, provided he or she is not receiving retirement cred its or
benefits from said service beginnin g after July 1, 1992, in other
public retirement syst ems; or RBH No. 5900
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2. Became an employee of the Oklahoma Commission for Teacher
Preparation on or subsequent to June 1, 2001, but prior to July 1,
2002, who was previously employed by a participating employer with in
the Teachers' Retirement System of Oklahoma, may e lect to cancel any
accumulated service credit accrued within the Oklahoma Public
Employees Retirement System on or after June 1, 2001, but prior to
July 1, 2002, by filing an election with the Oklahoma P ublic
Employees Retirement System for the cancellatio n of such service
credit. The election shall be irrevocable and shall require the
Oklahoma Public Employees Retirement System to transfer all
accumulated employer and employee contributions made on beha lf of or
by the person making such election to the Te achers' Retirement
System for such period of time. The Teachers ' Retirement System
shall compute the employee contributions that would have been made
to the System by such employee if the contributions had been
computed pursuant to this section. In order to receive the full
amount of creditable service for the period of time on or after June
1, 2001, but not later than June 30, 2002, the employee shall be
required to pay any difference between the trans ferred employee
contributions and the amount computed by the Teachers' Retirement
System. The employee may make payment of any required amount in the
manner provided by and subject to the requirements of Section 1 7-
116.8 of this title. After payment of a ll required employee
contributions, the Teachers ' Retirement System shall credit the RBH No. 5900
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period of time represented by the transferred employee contributions
as creditable service within the meaning of Section 17 -101 of this
title. After the transfer of the e mployee contributions, the
Oklahoma Public Employees Retirement System shall cancel any service
credit previously accumulated for the period of time represented by
such transferred employee contributions. Any pers on who makes the
election provided for by this paragraph, and who continues
employment with the Oklahoma Commission for Teacher Preparation on
or after July 1, 2002, shall continue to accrue service credit in
the Teachers' Retirement System of Oklahoma. T he employer shall
make employer contributi ons according to the requirements of Section
17-108.1 of this title and shall provide for the deduction of
employee contributions as required by this section.
I. Any member who shall be absent from the teaching se rvice
because of election or appointment a s a local, state or national
education association of ficer, prior to January 1, 2011, shall be
allowed to retain his or her membership in the Teachers ' Retirement
System upon payment of the contribution required of other members
and employers of said membe rs as provided for in this section and
his or her service credits shall continue to be accumulated during
such absence. Provided, however, any one such absence shall not
exceed twelve (12) continuous years. No me mber who has less than
ten (10) years of contributory service on July 1, 1994, may make
this election after June 30, 1994. Members contributing to the RBH No. 5900
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System on July 1, 1994, may continue to contribute under this
subsection until they have completed eight (8) years allowed by this
subsection. The member may file for retirement when otherwise
eligible for retirement as provided by Section 17 -105 of this title.
J. A member may receive credit for those years of service
accumulated by the member while employ ed by an entity which is a
participating employer in the Oklahoma Firefighters Pension and
Retirement System, the Oklahoma Police Pension and Retirement
System, the Uniform Retirement System for Justices and Judges, the
Oklahoma Law Enforcement Retirement System, or the Oklahoma Public
Employees Retirement System, if the member is not receiving or
eligible to receive retirement credit or benefits from said service
in any other public retirement system. A member also may receive
credit for those years of se rvice with the Department of Wildlife
Conservation or with an employer that is a participating employer
within one of the state retirement systems specifically referred to
in this section when at the time of such service by the member the
employer was not such a participating employer, if the memb er is not
receiving or eligible to receive retirement credit or benefits from
said service in any other public retirement system. To receive the
service credit provided in this subsection, the member shall pay the
amount determined by the Board of Trustee s pursuant to Section 17 -
116.8 of this title. For pu rposes of this subsection, creditable
service transferred from the Oklahoma Public Employees Retirement RBH No. 5900
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System shall include service authorized under paragraph ( f) of
subsection (2) of Section 913 of Tit le 74 of the Oklahoma Statutes
as amended from time t o time. Members who retire prior to July 1,
1993, shall have their monthly benefit adjusted to include all
services accrued under paragraph (f) of subsection (2 ) of Section
913 of Title 74 of the Oklaho ma Statutes. Provided however, any
adjustment of existing retirement benefits caused by reason of
inclusion of such service authorized under paragraph (f) of
subsection (2) of Section 913 of Title 74 of the Oklaho ma Statutes
shall not affect any retiremen t benefit paid prior to July 1, 1993.
K. 1. An active member of the Teachers' Retirement System of
Oklahoma may receive credit for those years of service accumulated
by the member while a member of the Oklahoma P ublic Employees
Retirement System if:
a. the member is an active member of the Teachers '
Retirement System of Oklahoma, and
b. the member provides notice to the Oklahoma Public
Employees Retirement System and the Teachers '
Retirement System of Oklahoma of the member's election
to transfer said ser vice credit. The notice shall
include a list of the years to be transferred, and
c. the member is not receiving or eligible to receive
retirement credit or benefits from said service in any
other public retirement system, notwithstanding the RBH No. 5900
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years of service sought to be transferred under this
subsection.
Members electing to take advantage of the transfer authorized by
this subsection who are receiving or eligible to receive retirement
credit or benefits from said service in any other public retirement
system shall have all service credit with the Oklahoma P ublic
Employees Retirement System canceled which is not transferred to the
Teachers' Retirement System of Oklahoma or used as a cash offset in
such a transfer pursuant to subparagraph d of paragraph 2 of this
subsection. Service credit transferred to the Teachers' Retirement
System of Oklahoma under this subsection shall also be canceled with
the Oklahoma Public Employees Retirement System.
2. For purposes of th is subsection, the "sending system" shall
mean the Oklahoma Public Employees Retirement System. The
"receiving system" shall mean the Teachers ' Retirement System of
Oklahoma.
a. Within thirty (30) days notification of an intent to
transfer is received by the sending system, the
sending system shall, according to its own rules and
regulations:
(1) for members who have accrued at least eight (8)
years of credited service with the sending
system, determine the present value of the
member's earned benefits att ributable to the RBH No. 5900
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years of service sought t o be transferred,
discounted according to the member 's age at the
time of transfer and computed as of the earliest
age at which the member would be able to retire.
Said computation shall assume an unreduced
benefit and be computed using interest and
mortality assumptions consistent with the
actuarial assumptions adopted by the Board of
Trustees for purposes of preparing the annual
actuarial evaluation, but shall not make any
projections regarding future salary. Fo r
employees who have accrued at least eigh t (8)
years of credited service, the sending system
shall use the product of this calculation for
purposes of determining the transfer fee to be
paid by the employee under subparagraph c of this
paragraph so long as it is greater than the
product of the calculation in division (2) of
this subparagraph, and
(2) determine the sum of the employee and employer
contributions applicable to the years of service
sought to be transferred plus interest consistent
with the actuarial assumptions adopted by the
Board of Trustees for purposes of preparing the RBH No. 5900
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annual actuarial evaluation. For all nonvested
members, and for members who have accrued at
least eight (8) years of credited service, if the
product of this calculation is greater than the
product of the calculatio n in division (1) of
this subparagraph, the sending s ystem shall use
the product of this calculation for purposes of
determining the amount to be transferred by the
sending system under subparagraph c of this
paragraph and any transfer fee to be paid by th e
member under subparagraph d of this paragraph.
b. Within thirty (30) days notification of an intent to
transfer is received by the receiving system, the
receiving system shall determine, according to the
system's own rules and regulations, the present va lue
of the member's incremental projected benefits
discounted according to the member's age at the time
of the transfer. Incremental projected benefits shall
be the difference between the projected benefit said
member would receive without transferring th e service
credit and the projected benefit after tran sfer of
service credit computed as of the earliest age at
which the member would be able to retire. Said
computation shall assume an unreduced benefit and be RBH No. 5900
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computed using interest, salary projections and
mortality assumptions consistent with the actuari al
assumptions adopted by the Board of Trustees for
purposes of preparing the annual actuarial evaluation.
c. The sending system shall, within sixty (60) days fr om
the date notification of an intent to t ransfer is
received by the sending system, transfer t o the
receiving system the amount determined in subparagraph
a of this paragraph. Except if the cost as calculated
under subparagraph a of this paragraph is gre ater than
the actuarial value of the incre mental benefit in the
receiving system, as establishe d in subparagraph b of
this paragraph, the sending system shall send the
receiving system an amount equal to the actuarial
value of the incremental projected ben efit in the
receiving system.
d. In order to receive the credit provided for in
paragraph 1 of this subsection, if the cost of the
actuarial value of the incremental benefit to the
receiving system is greater than the cost as
calculated under subparagraph a of this paragraph for
the same years of service to the sending system as
established in subpa ragraphs a and b of this
paragraph, the employee shall elect to: RBH No. 5900
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(1) pay any difference to receive full credit for the
years sought to be transferred, or
(2) receive prorated service credit for only the
amount received from the Oklahoma Public
Employees Retirement System pursuant to this
subsection.
Such an election shall be made in writing, filed with
the System prior to receiving the credit provided for
in paragraph 1 of this subsection, and shall be
irrevocable.
3. Within sixty (60) days of successfully completing all of the
requirements for transfer under this subsection, the sending system
shall pay the receiving system any amount due under this subsection.
Within sixty (60) days of successfully com pleting all of the
requirements for transfer under th is subsection, the member shall
pay the receiving system any amount due under this subsection. In
the event that the member is unable to pay the transfer fee pr ovided
for in this subsection by the due d ate, the Board of Trustees of the
receiving system shall permit the member to amortize the transfer
fee over a period not to exceed sixty (60) months. Said payments
shall be made by payroll deductions unless the B oard of Trustees
permits an alternate paym ent source. The amortization shall include
interest in an amount not to exceed the actuarially assumed interest
rate adopted by the Board of Trustees for investment earnings each RBH No. 5900
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year. Any member who ceases to ma ke payment, terminates, retires or
dies before completing the payments provided for in this sec tion
shall receive prorated service credit for only those payments made,
unless the unpaid balance is paid by said member, his or her estate
or successor in inte rest within six (6) months after said memb er's
death, termination of employment or retirement, provided no
retirement benefits shall be payable until the unpaid balance is
paid, unless said member or beneficiary affirmatively waives the
additional six-month period in which to pay the unpaid balanc e.
4. Years of service transferred pursuant to this subsection
shall be used both in determining the member 's retirement benefit
and in determining the years of service for retirement and/or
vesting purposes. Yea rs of service rendered as a member of the
Oklahoma Public Employees Retirement System prior to July 1, 1992,
if any, shall be deemed to be years of service rendered as a member
of the Teachers' Retirement System of Oklahoma prior to July 1,
1992, and shall qualify such person as a member of the Te achers'
Retirement System of Oklahoma before July 1, 1992.
5. Notwithstanding the requirements of subsection (5) of
Section 917 of Title 74 of the Oklahoma Statutes, members electing
to take advantage of the trans fer authorized by this subsection who
have withdrawn their contributions from the sending syste m shall
remit to the sending system the amount of the accumulated
contributions the member has withdrawn plus simple interest of ten RBH No. 5900
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percent (10%) per annum prio r to making said election or the
election shall be deemed invalid and the transfer shall be can celed.
If such an election is deemed invalid and the transfer is canceled,
the accumulated contribution remitted to the sending system by the
member who originally withdrew their contributions shall be returned
to the member. The member 's rights and obligations regarding any
service credit reestablished in the sending system due to a failure
to satisfy the requirements of this subsection shall be determined
by the sending system in accordance with Secti on 901 et seq. of
Title 74 of the Oklahoma Statutes.
6. If any member fails for any reason to satisfy the
requirements of this subsection, the election to transfer service
credit shall be void and of no effect, an d any service credited as a
result of this transfer shall be canceled. If such service is
canceled, the years of canceled service credit which were
unsuccessfully transferred to the receiving system from the sending
system shall be reestablished in the se nding system. The member 's
rights and obligations regarding any service credit reestablished i n
the sending system due to a failure to satisfy the requirements of
this subsection shall be determined by the sending system in
accordance with Section 901 et seq. of Title 74 of the Oklahoma
Statutes.
7. The Board of Trustees shall promulgate such rule s as are
necessary to implement the provisions of this subsection. RBH No. 5900
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L. Any member whose regular annual compensation was not
determined as provided for by law may pay the member contribution
required pursuant to subsection B of this section on such amount n ot
included in the member's regular annual compensation and receive
credit for such amount in the calculation of the member 's benefit.
The employees must pay th e employer contributions required pursuant
to Section 17-108.1 of this title. Interest at the rate of ten
percent (10%) per annum shall be charged to both employee and
employer contributions. Provided that the employing district may
pay all or any portio n of the contributions and interest the me mber
is required to pay. Any payment by the employin g district for a
prior year obligation shall be considered a current obligation of
the employer.
M. Any active member who elected during the 1978 -79 school year
to pay the difference between five percen t (5%) on actual salary not
exceeding Ten Thousand Do llars ($10,000.00) and six percent (6%) on
actual salary not exceeding Fifteen Thousand Dollars ($15,000.00)
shall receive credit for one (1) year of credited se rvice upon
receipt and approval of a prope r request by the Board of Trustees.
N. Effective July 1, 1988, any member who is employed by the
Governor, the State Senate, the House of Representatives or the
Legislative Service Bureau shall be allowed to elect to retain
membership in the Retirement Sy stem upon payment of the accrued and
current member contributions and employer contributions as provided RBH No. 5900
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in subsection B of this section and Section 17 -108.1 of this title.
Such contributions may be paid on behalf of the member by the
employing entity. U pon payment of such contributions, service
credits shall continue to be accumulated during such employment.
Accrued contributions shall be paid to the Retirement System by
August 1, 1989. Current contributions sh all be paid to the
Retirement System by th e tenth of the following month beginning with
the month of July 1989.
O. Notwithstanding any requirements of this title to restrict
the payment of service purchases, the Board of Trustees shall
promulgate such rules as necessary to allow active members of the
System to make installment payments for the rede posit of withdrawn
accounts or other payments due under the provisions of this title.
The rules shall permit the member to amortize the balance due over a
period not to exceed sixty (60) months, and sha ll include interest
consistent with the actuarial ass umptions adopted by the Board of
Trustees for purposes of preparing the annual actuarial evaluation.
Further, the rules shall provide that all payments must be completed
prior to the effective retiremen t date of the member.
P. 1. A member of the Oklahom a Public Employees Retirement
System who becomes a member of the Teachers ' Retirement System of
Oklahoma because the member has become employed by an entity or
institution within The Oklahoma State Syste m of Higher Education,
State Board of Education, Stat e Board of Career and Technology RBH No. 5900
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Education, Oklahoma Department of Career and Technology Education,
Oklahoma School of Science and Mathematics, Oklahoma Center f or the
Advancement of Science and Technolo gy, State Department of
Rehabilitation Services, Okla homa State Regents for Higher
Education, Department of Corrections, State Department of Education,
Oklahoma Board of Private Vocational Schools, Board of Regents of
Oklahoma Colleges, Oklahoma Student Lo an Authority, or the Teachers '
Retirement System of O klahoma, may elect to receive credit in the
Teachers' Retirement System of Oklahoma for those years of service
accumulated by the member in the Oklahoma Public E mployees
Retirement System pursuant to thi s subsection. A member shall be
eligible to elect to receive credit for such years of service if:
a. the member is an active member of the Teachers '
Retirement System of Oklahoma,
b. the member provides notice to the Teachers' Retirement
System of Oklahoma and the Oklahoma Public Employees
Retirement System of the member's election to transfer
such retirement credit. The notice shall include a
list of the years to be transferred, and
c. the member is not receiving or eligible to receive
retirement credit or benefits from such service in any
other public retirement system, notwithstanding the
years of service sought to be transferred under this
subsection. RBH No. 5900
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Members electing to take advantage of the transfer authorize d by
this subsection shall have all servic e credit with the Oklahoma
Public Employees Retiremen t System canceled which is transferred to
the Teachers' Retirement System of Oklahoma.
2. For purposes of this subsection, the "sending system" shall
mean the Oklahoma Public Employees Retirement System . The
"receiving system" shall mean the Teachers ' Retirement System of
Oklahoma. Within thirty (30) days after notification of an intent
to transfer is received by the sending system, the sending system
shall, according to its own rules, send to the rece iving system all
employer and employee contributions made on behalf of the member
which were made to the sending system plus an additional amount of
earnings based on the actuarial assumed rate of the sending syste m.
Upon receipt of these contributions by the receiving system, the
receiving system shall giv e credit to the transferring member in an
amount equal to the years of service accrued in the sending system.
3. If the transferring member 's normal retirement date
calculation is based upon the sum of the member's age and number of
years of credited serv ice totaling eighty (80) in the sending
system, then the member shall retain such calculation in the
receiving system.
4. The Board of Trustees shall promulgate such rules as are
necessary to implement the provisions of this subsection. RBH No. 5900
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Q. A former member of the Teachers' Retirement System of
Oklahoma who withdrew his or her contributions from the System prior
to January 1, 1983, and who had at least ten (10) ye ars of service
in the System and purchased that service in the Oklahoma Public
Employees Retirement System, may elect to revoke that purchase from
the Oklahoma Public Employees Retirement System and to repay the
withdrawn contributions to the System in ord er to be eligible, once
such member reaches the normal retirement age, to receive a
retirement benefit that is based upon years of service and
compensation at the time such member terminated employment. In
addition, such former member may elect to transfe r service credit
accrued in the Oklahoma P ublic Employees Retirement System to the
Teachers' Retirement System of Oklahoma pursuant to subsection K of
this section. The election, pursuant to this subsection, shall be
made prior to September 1, 2000. The election and the repayment
shall be made according to rules promulgated by the Board.
SECTION 2. This act shall become effective November 1, 2023.
59-1-5900 CMA 01/11/23
THOMAS E. CUMMINS CONSULTING ACTUARY, INC.
2512 E. 71
st
Street , Suite D ∙ Tulsa, Oklahoma 74136
(918) 492-9658 ∙ (918) 492- 9659
January 11, 2023
Representative Nicole Miller
Room 452
Re: RHB No. 5900
RBH No. 5900 adds service with Americorp Volunteers in Service to
America that is eligible to be purchased as service in OTRS.
RBH No. 5900 is a fiscal bill as defined by OPLAAA. If service is
purchased, the accrued actuarial liability will increase.
I am a member of the American Academy of Actuaries and meet the
Qualification Standards of the American Academy of Act uaries to
render the actuarial opinion herein.
Thomas E. Cummins
Thomas E. Cummins, MAAA