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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
SENATE BILL 964 By: Kidd
AS INTRODUCED
An Act relating to Teachers’ Retirement System of
Oklahoma; amending 70 O.S. 2021, Secti on 17-116.10,
which relates to postretirement emplo yment; and
authorizing certain retired members to return to
employment in public schools for certain time period
with no earning limitations ; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOM A:
SECTION 1. AMENDATORY 70 O.S. 2021, Section 17 -116.10,
is amended to read as follows:
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 employment with a public
school of Oklahoma and stil l 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 capac ity, 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
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preretirement employment” shall mean the last day the employee is
required to be physically pre sent 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 thi s section.
Employment under any condition s during this time, volunteer services
for the purpose of obtaining a paid positi on 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 paragraph 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 earnings limitation for
employees allowed by the Social Security Administration, whichever
is less. For retired members unde r 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 shall be the lesser o f Fifteen
Thousand Dollars ($15,000.00) or one-half (1/2) of the mem ber’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
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Oklahoma for the performance of duties ordinarily performed by
classified or nonclassified personnel shall be the lesser of Th irty
Thousand Dollars ($30, 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 compensation ” as
defined in paragraph (25) of Section 1 7-101 of this
title, and shall include an y 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 public school
employer pursuant to subsection 9 o f Section 17-105 of
this title or other s tate law shall not be considered
as earnings,
b. the Earnings Limitation earnings limitation for
employees allowed by the Social Security
Administration to workers between the age of sixty -two
(62) years and sixty-five (65) years shall apply to
retired members below the age o f 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 earnings limitation for employees
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as determined from time to time by the Social Security
Administration,
d. the earnings limit for the calendar y ear in which a
member retires shall be one-twelfth (1/12) of the
annual limit multiplied by the number of months th e
member is eligible to wor k 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 for the year
the postretirement employment was p erformed of One
Dollar ($1.00) for each O ne Dollar ($1.00) earned over
the maximum allowed earnings amount, and
f. for those members age seventy (70) years and over, the
earnings in excess of the maximum limit on allowed
earnings from public schools of Oklahoma s hall be one-
half (1/2) the member’s final average salary used in
computing retirement benefits. However, a ny retired
member receiving benefits from the Teachers’
Retirement System of Oklahoma who reached age seventy
(70) years prior to July 1, 1991, shall not be
restricted by the earnings limits pursuant to this
subparagraph until January 1, 1994. To qualify for
the provisions of this subparagraph, the mem ber must
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be employed less than one-half (1/2) time compared to
other full-time employees in simi lar positions;
3. Notwithstanding paragraph 2 of this subsection, 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 performed by classif ied or nonclassified
personnel shall be able to receive annualized e arnings from the
public school with no reduction in retirement benefits regardless of
the amount of annualized earnings. For a peri od of three (3) years
beginning July 1, 2017, members wh o have 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 employed by
any public school during tha t one-year period, shall be eligible to
be reemployed as an active classroom teache r 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 receiv ing 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 ea rnings. The one-
year period starts with the retiree’s last day of preretirement
public education employment. On and after the effective date of
this act, members who have been reti red and receiving benefits for
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at least one (1) year, notwithstanding t he member’s retirement date,
and who have not been emplo yed 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 , for a period of three (3) years. Members
returning under this section shall not b e subject to any earning
limitations following the end of the three-year periods described in
this paragraph. Members returning under this section shall only be
employed pursuant to a temporary contract; and
4. 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 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 em ployment with a
proprietorship, partnership, corp oration, limited liability company
or partnership, or any other business structure that has agreed or
contracted to provide t he 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 required in Section 17-108.1 and in paragraph
3 of subsection B of S ection 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 Representatives or the Legislative
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Service Bureau shall not be con sidered 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 as are nec essary to implement
the provisions of this section.
E. A member who has e ntered 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 rec eiving his or her monthly retirement benefit.
SECTION 2. This act shall become effecti ve November 1, 2023.
59-1-1262 RD 1/19/2023 11:36:42 AM