RBH No. 5119
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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
HOUSE BILL 2008 By: Davis
AS INTRODUCED
An Act relating to the Teachers' Retirement System of
Oklahoma; amending 70 O.S. 2021, Section 17-101 as
amended by Section 2, Chapter 121, O.S.L. 2022 (70
O.S. 2022, Section 17-101), which relates to
definitions; modifying term; ame nding 70 O.S. 2021,
Section 17-105, which relates to retireme nt
eligibility; modifying required period of time for
participation for purposes of retirement benef it;
amending 70 O.S. 2021, Section 17-116.2, which
relates to benefit computations; providing certain
benefit computations for certain members; amending 70
O.S. 2021, Section 17-116.10, which relates to
postretirement earnings limitations; modifying
restrictions with respect to postretirement
employment; prescribing maximum amoun t of
postretirement earnings; prescribing requirements
related to postretiremen t earnings; modifying
provision related to employee contributions;
prohibiting accrual of postretirement service credit;
providing for applicability of certain provisions
regardless of certain election; providing school
districts not subject to certain pre termination
procedural requirements; prescribing maximum duration
of postretirement contacts; pr oviding school
districts not required to rehire certain persons
based upon previous employment contract; amending 70
O.S. 2021, Section 18-114.14, which relate s to the
minimum salary schedule; mod ifying provisions related
to employment of retired teachers; providing for
codification; and providing an effective date.
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BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 70 O.S. 2021, Sectio n 17-101 as
amended by Section 2, Chapter 121, O.S.L. 2022 (70 O.S. 2022,
Section 17-101), is amended to read as follows:
Section 17-101. Definitions.
The following words and phrases as used in this act, unless a
different meaning is clearly required by t he context, shall have the
following meanings:
(1) "Retirement system" shall mean the Teachers ' Retirement
System of Oklahoma, as defined in Sect ion 17-102 of this title.
(2) "Public school" shall mean a school district, a state
college or university, th e State Board of Education, the State Board
of Career and Technolo gy Education and any other state educational
entity conducted within the state s upported wholly or partly by
public funds and operating under the authority and supe rvision of a
legally constituted board or agency having authority and
responsibility for any function of public education. "Public
school" shall also mean a tuition free, nonprofit alternative school
of choice that provides education, therapeutic counseli ng and
outreach programs which is aligned with a school district and which
receives grant funds from governmental sources.
(3) "Classified personnel " shall mean any teache r, principal,
superintendent, supervisor, administrator, librarian, certified or
registered nurse, college pro fessor, or college president whose RBH No. 5119
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salary is paid wholly or in par t from public funds. An employee of
any state department, board, board of regen ts or board of trustees,
who is in a supervisory or an administrative position, the function
of which is primarily devoted to public education, shall be
considered classified p ersonnel under the meaning of this act, at
the discretion of the Board of Truste es of the Teachers' Retirement
System. The term "teacher" shall also include instru ctors and
counselors employed by the Department of Corrections and holding
valid teaching certificates issued by the State Department of
Education. Provided, that a person employed by the Department of
Corrections as an instructor or counselor shall have been actively
engaged in the teaching profession for a period of not less than
three (3) years prior to employment to be eligible to participate in
the Oklahoma Teachers' Retirement System. The Department of
Corrections shall contribute the employer 's share to the Oklahoma
Teachers' Retirement System.
(4) "Nonclassified optional personnel " shall include cooks,
janitors, maintenance personnel not in a s upervisory capacity, bus
drivers, noncertified or nonregistered nurses, noncertified
librarians, and cler ical employees of the publ ic schools, state
colleges, universities or any state department, board, board of
regents or board of trustees, the functions of which are primari ly
devoted to public education and whose salaries are paid wholly or in
part from public funds. RBH No. 5119
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(5) "Employer" shall mean the state and any of its designated
agents or agencies with responsibility and authority for public
education, such as boards of educ ation of elementary and independent
school districts, boards of regents, boards of c ontrol or any other
agency of and within the state by which a person may be employed for
service in public education. "Employer" shall also mean the b oard
of directors of a tuition free, nonprofit alternative school of
choice that provides education, ther apeutic counseling and out reach
programs which is aligned with a school district and which r eceives
grant funds from governmental sources.
(6) "Member" shall mean any teacher or other employee included
in the membership of the system as provided in Sectio n 17-103 of
this title.
(7) "Board of Trustees" shall mean the board provided for in
Section 17-106 of this title to administer the retirement system.
(8) "Service" shall mean service as a classified or
nonclassified optional employee in the public schoo l system, or any
other service devoted primarily to public education in the state.
(9) "Prior service" shall mean service rendered prior to July
1, 1943.
(10) "Membership service" shall mean service as a member of the
classified or nonclassified personne l as defined in paragraphs (3)
and (4) of this section. RBH No. 5119
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(11) "Creditable service" shall mean membership service plus
any prior service authorized unde r this title.
(12) "Annuitant" shall mean any person in receipt of a
retirement allowance as provided in this title.
(13) "Accumulated contributions" shall mean the sum of all
amounts deducted from the compensation of a member and credited to
his individual account in the Te acher Savings Fund, together with
interest as of June 30, 1968.
(14) "Earnable compensation" shall mean the full rate of the
compensation that would be payable to a member if he worked the full
normal working time.
(15) "Average salary":
(a) for those members who joined the System prior to July
1, 1992, shall mean the average of the sal aries for
the three (3) years on which the highest contributions
to the Teachers' Retirement System was paid not to
exceed the maximum contribution lev el specified in
Section 17-116.2 of this title or the maximum
compensation level specified in subsection (28) of
this section. Provided, no member shall retire with
an average salary in excess of Twenty-five Thousand
Dollars ($25,000.00) unless the member has made the
required election and paid the required contributions
on such salary in excess of Twenty -five Thousand RBH No. 5119
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Dollars ($25,000.00), or unless an eligible member
fulfills the requirements of Section 17-116.2C of this
title in order to have pre -cap removal service
included in the retirement benefit computation of the
member using the regular annual compe nsation of the
member for any pre-cap removal year of service so
included subject to the max imum average salary amount,
and
(b) for those members who j oin the System after June 30,
1992, shall mean the average of the salaries for five
(5) consecutive years on which the highest
contribution to the Teachers' Retirement System was
paid. Only salary on which required contributions
have been made may be used in computing average
salary.
(16) "Annuity" shall mean payments for life derived from the
"accumulated contributions" of a member. All annuities shall be
payable in equal monthly installments.
(17) "Pension" shall mean payments for life derived from mo ney
provided by the employer. All pensions shall be payable in equal
monthly installments.
(18) "Monthly retirement allowance " is one-twelfth (1/12) of
the annual retirement allowance which shall be payable monthly. RBH No. 5119
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(19) "Retirement Benefit Fund " shall mean the fund from wh ich
all retirement benefits shall be paid based on such mortality tables
as shall be adopted by the Board of T rustees.
(20) "Actuary" shall mean a person especially skilled th rough
training and experience in financial calculation resp ecting the
expectancy and duration of life.
(21) "Actuarial equivalent " shall mean a benefit of equal va lue
when computed upon the basis of such mortality and other tables as
shall be adopted by t he Board of Trustees.
(22) The masculine pronoun, whenever used, shall include the
feminine.
(23) "Actuarially determined cost " shall mean the single sum
which is actuarially equivalent in value to a specified pension
amount as determined on the basis of mortality and interest
assumptions adopted by the Board of Trustees.
(24) "Normal retirement age" means the earliest date upon
which:
(a) a member reaches the age sixty-two (62) with respect
to a member whose first creditable service occurs
prior to November 1, 2011, unless the member reaches a
normal retirement date pursuant to sub paragraph (c) or
subparagraph (d) of this paragraph, or
(b) a member reaches the age of sixty-five (65) with
respect to a member whose first creditable service RBH No. 5119
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occurs on or after November 1, 2011, or with respect
to a member whose firs t creditable service occurs on
or after November 1, 2011, reaches a normal retirement
date pursuant to subparagraph (d) of this par agraph
having attained a minimum age of sixty (60) years or
with respect to a member whose first creditable
service occurs on or after the effec tive date of this
act obtains at least thirty -five (35) years of
creditable service, or
(c) the age at which the sum of a member's age and number
of years of creditable service t otal eighty (80), with
respect to a member whose first creditable service
occurred prior to July 1, 1992, and who does not reach
a normal retirement age pursuant t o subparagraph (a)
of this paragraph, or
(d) the age at which the s um of a member's age and number
of years of creditable service total ninety (90), with
respect to a member whose first creditable service
occurred on or after July 1, 1992, but prior to
November 1, 2011, if the membe r does not reach a
normal retirement age pursuant to subparagraph (a) of
this paragraph.
(25) "Regular annual compensation " means salary plus fringe
benefits, excluding the flexible benefit allowance pursuant to RBH No. 5119
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Section 26-105 of this title and for purpos es pursuant to Section
17-101 et seq. of this title. For purposes of this definition,
regular annual compensation shall include:
(a) salary which accrues on a regular basis in proportion
to the service perform ed, including payments for staff
development,
(b) amounts that would otherwise qualify as salary under
paragraph (a) of this subsection but are not received
directly by the member pursuant t o a good faith,
voluntary written salary reduction agreement in or der
to finance payments to a deferred compensa tion or tax-
sheltered annuity program or to finance benefit
options under a cafeteria plan qualifying under the
United States Internal Revenue C ode, 26 U.S.C.,
Section 101 et seq.,
(c) group health and disabili ty insurance, group term life
insurance, annuities and pension plans, provided on a
periodic basis to all qualif ied employees of the
employer, which qualify as fringe benefits under the
United States Internal Revenue Code, and
(d) excluded from regular ann ual compensation are:
1. expense reimbursement payments,
2. office, vehicle, housing o r other maintenance
allowances, RBH No. 5119
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3. the flexible benefit allowance provided pursuant
to Section 26-105 of this title,
4. payment for unused vacation and sick leave,
5. any payment made for reason of termination or
retirement not specifically provided for in
subparagraphs (a) through (c) of this subsection,
6. maintenance or other nonmonetary compensation,
7. payment received as an independent contractor or
consultant, pursuant to a lawful contract which
complies with the requirements of subsection B of
Section 6-101.2 of this title,
8. any benefit payments not made pursuant to a valid
employment agreement,
9. compensation for clinical related activity
performed in the Univer sity of Oklahoma Health
Sciences Center (OUHSC ) Professional Practice
Plan or Oklahoma State University Center f or
Health Sciences (OSU -CHS) Professional Practice
Plan,
10. any other compensation not described in
subparagraphs (a) through (c) of this subse ction.
(26) "Teacher" means classified person nel and nonclassified
optional personnel. RBH No. 5119
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(27) "Active classroom teacher" means a person employed by a
school district to teach students specif ically identified classes
for specifically identified subjects dur ing the course of a
semester, and who holds a valid certificate or license issued by a nd
in accordance with the rules and regulations of the State Board of
Education.
(28) "Maximum compensation level" shall, except as otherwise
authorized pursuant to the provisions of Section 17-116.2C of this
title, mean:
(a) Twenty-five Thousand Dollars ($25,000.00) for
creditable service authorized and performed prior to
July 1, 1995, for members not elec ting a higher
maximum compensation level,
(b) Forty Thousand Dolla rs ($40,000.00) for creditable
service authorized and performed prior to July 1,
1995, for members electing a ma ximum compensation
level in excess of Twenty -five Thousand Dollars
($25,000.00),
(c) Twenty-seven Thousand Five Hundred Dollars
($27,500.00) for members who, as of June 30, 1995, had
elected to have a maximum compensation level no t in
excess of Twenty-five Thousand Dollars ($25,000.00),
and who were employed by an entity or institut ion
within The Oklahoma State System of Higher Education RBH No. 5119
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for creditable service authorized and performed on or
after July 1, 1995, but not later than Ju ne 30, 1996,
if such member does not elect a higher maximum
compensation level for this period as author ized by
Section 17-116.2A of this title,
(d) Thirty-two Thousand Five Hundred Dollars ($32,500.00)
for members employed by a comprehensive university if
the member meets the requ irements imposed by Section
17-116.2A of this title and the member elects to
impose a higher maximum compensation level for service
performed on or after July 1, 1995, but not later than
June 30, 1996,
(e) Forty-four Thousand Dollars ($44,000.00) for membe rs
who, as of June 30, 1995, had elected to have a
maximum compensation level in excess of Twenty-five
Thousand Dollars ($25,000.00), and who we re employed
by an entity or institution within The Oklahoma State
System of Higher Edu cation for creditable serv ice
authorized and performed on or after July 1, 1995, but
not later than June 30, 1996, if such member does not
elect a higher maximum compensa tion level for this
period as authorized by Se ction 17-116.2A of this
title, RBH No. 5119
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(f) Forty-nine Thousand Dollars ($4 9,000.00) for members
employed by a comprehensive university if the member
meets the requirements imposed by Section 17 -116.2A of
this title and the member elects to impose a higher
maximum compensation level for service performed on or
after July 1, 1995, but not later than June 30, 1996,
(g) the following amounts for creditable se rvice
authorized and performed by members employed by a
comprehensive university, based upon the election of
the member in effect as of June 30, 1995:
1. for members who elected a maximum compensation
level not in excess of Twenty -five Thousand
Dollars ($25,000.00):
(i) Thirty-two Thousand Five Hundred Dollars
($32,500.00) for service authorized and
performed on or after July 1, 1996, but not
later than June 30, 1997,
(ii) Thirty-seven Thousand Five Hundred Dollars
($37,500.00) for service authorized and
performed on or after July 1, 1997, but not
later than June 30, 1998 ,
(iii) Forty-two Thousand Five Hundred Dollar s
($42,500.00) for service authorized an d RBH No. 5119
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performed on or after Ju ly 1, 1998, but not
later than June 30, 2000,
(iv) Forty-seven Thousand Five H undred Dollars
($47,500.00) for service authorized and
performed on or after July 1, 2000, but not
later than June 30, 2001,
(v) Fifty-two Thousand Five Hundred Dollars
($52,500.00) for service authorized and
performed on or after July 1, 2001, but not
later than June 30, 2002,
(vi) Fifty-seven Thousand Five Hundred Doll ars
($57,500.00) for service authorized and
performed on or after July 1, 2002, but no t
later than June 30, 2003 ,
(vii) Sixty-two Thousand Five Hundred Dollars
($62,500.00) for service autho rized and
performed on or after July 1, 2003, but not
later than June 30, 2004,
(viii) Sixty-seven Thousand Five Hundred Dollars
($67,500.00) for servic e authorized and
performed on or after July 1, 2004, but not
later than June 30, 2005,
(ix) Seventy-two Thousand Five Hundred Dollars
($72,500.00) for service authorized and RBH No. 5119
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performed on or after July 1, 2005, but no t
later than June 30, 2006,
(x) Seventy-seven Thousand Five Hundre d Dollars
($77,500.00) for service authorized and
performed on or after July 1 , 2006, but not
later than June 30, 2007,
(xi) the full amount of regular annual
compensation for service author ized and
performed on or after July 1, 2 007, and
2. for members who elected a maximum compensation
level in excess of Twenty -five Thousand Dollars
($25,000.00):
(i) Forty-nine Thousand Dollars ($49,000.00) for
service authorized and performed on or after
July 1, 1996, but not later than June 30,
1997,
(ii) Fifty-four Thousand Dollars ($54,000.00) for
service authorized and performed on or after
July 1, 1997, but not later than June 30,
1998,
(iii) Fifty-nine Thousand Dollars ($59,000.00) for
service authorized and performed on or after
July 1, 1998, but not later than Jun e 30,
2000, RBH No. 5119
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(iv) Sixty-four Thousand Dollars ($64,000.00) for
service authorized and performed on or after
July 1, 2000, but not later than June 30,
2001,
(v) Sixty-nine Thousand Dollars ($6 9,000.00) for
service authorized and per formed on or after
July 1, 2001, but not later than June 30,
2002,
(vi) Seventy-four Thousand Dollars ($ 74,000.00)
for service authorized and performed on or
after July 1, 2002, but not later than June
30, 2003,
(vii) Seventy-nine Thousand Dollars ($79,000 .00)
for service authorize d and performed on or
after July 1, 2003, but not later than June
30, 2004,
(viii) Eighty-four Thousand Dollars ($84,000.00)
for service authorized and performed on or
after July 1, 2004, bu t not later than June
30, 2005,
(ix) Eighty-nine Thousand Dollars ($89,000.00)
for service authorized and performed on or
after July 1, 2005, bu t not later than June
30, 2006, RBH No. 5119
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(x) Ninety-four Thousand Dollars ( $94,000.00)
for service authorized and perform ed on or
after July 1, 2006, but not lat er than June
30, 2007,
(xi) the full amount of regular annual
compensation for service authorized and
performed on or after July 1, 2007,
(h) the full amount of regular a nnual compensation of:
1. a member of the reti rement system not employed by
an entity or institution within The Oklahoma
State System of Higher Education for all
creditable service authorize d and performed on or
after July 1, 1995,
2. a member of the retir ement system first employed
on or after July 1, 1995, by an entity or
institution within The Oklahoma State Syst em of
Higher Education for all creditable service
authorized and performed on or after July 1,
1995, but not later than June 30, 1996,
3. a member of the retirement system employed by an
entity or institution within The Oklahoma S tate
System of Higher Educ ation, other than a
comprehensive university, if the member elects to
impose a higher maximum compensation level for RBH No. 5119
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service performed on or aft er July 1, 1995, but
not later than June 30, 1 996, pursuant to
subsection B of Section 17-116.2A of this title,
4. a member of the retirement system who is first
employed on or after July 1, 1996, by any entity
or institution within The Oklahoma State Syst em
of Higher Education, including a comprehens ive
university, for creditable service a uthorized and
performed on or after July 1, 1996,
5. a member of the retirement system who, as of July
1, 1996, is subject to a maximum compensation
level pursuant to par agraph (g) of this
subsection if the member te rminates service with
a comprehensive university and is subsequent ly
reemployed by a comprehensive university,
6. a member of the retirement sys tem employed by a
comprehensive university for all service
performed on and after July 1, 2007, or
7. an eligible member of the retirement system who
fulfills the requirements of Section 2 of this
act with respect to pre -cap removal service
included in the retirement benefit computation of
the member at the average salar y of the member
subject to the maximum average salary amount. RBH No. 5119
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(29) "Comprehensive university" shall mean:
(a) the University of Oklahoma and all of its constituent
agencies, including the U niversity of Oklahoma Health
Sciences Center, the University of Ok lahoma Law Center
and the Geological Survey, a nd
(b) Oklahoma State University and all of its constituent
agencies, including the Oklahoma State University
Agricultural Experiment Station, t he Oklahoma State
University Agricultural Extension Division, the
Oklahoma State University College of Veterinar y
Medicine, the Oklahoma State Universit y Center for
Health Sciences, the Technical Branch at Oklahoma
City, the Oklahoma State University Insti tute of
Technology-Okmulgee and Oklahoma State University -
Tulsa.
(30) "Retirement contract" means the document prepared by the
Teachers' Retirement System upon member request, w hich incorporates
member's selected retirement option, and which must be execu ted and
submitted to the Teachers ' Retirement System no less than thirty
(30) days prior to the projected retire ment date.
SECTION 2. AMENDATORY 70 O.S. 2021, Section 17-105, is
amended to read as follows:
Section 17-105. Retirement. RBH No. 5119
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(1) (a) Any member who has attained age fifty -five (55) or who
has completed thirty (30) years of credita ble service, as defined in
Section 17-101 of this title, or for an y person who initially became
a member prior to July 1, 1 992, regardless of whether there were
breaks in service after July 1, 1992, whose age and nu mber of years
of creditable service total eighty (80) may be retired upon proper
application for retirement on forms established by the System and
executing a retirement contract. Such a retirement date will also
apply to any person who became a member of the sending system as
defined in this act, prior to July 1, 1992, regardless of whether
there were breaks in service after July 1, 1992. Any person who
became a member after June 30, 1992, but prior to November 1, 2011,
whose age and number of years of c reditable service total ninety
(90) may be retired upon proper application for retirement and
executing a retirement contract. Any person who becomes a member on
or after November 1, 2011, who attains the age of sixty -five (65)
years or who reaches a norm al retirement date pursuant to
subparagraph (d) of paragraph (24) of Section 17 -101 of this title
having attained a minimum age of sixty (60) years may be retired
upon proper application for retirement and executing a retirement
contract. The application shall be filed on the form provided by
the Board of Trustees for this purpose, not less than sixty (60)
days before the date of retirement, provided that the Execut ive RBH No. 5119
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Director may waive the sixty-day deadline for good cause shown as
defined by the Board.
1. The employer shall provide the System with the
following information for a retiring member, no later
than the fifteenth day of the month of retirement:
last day physically on the job; last day on payroll;
any regular compensation not already reported to the
System; and final unused sick leave balance.
2. Failure to submit this information by the deadline, or
errors in submitted information that result in a
disqualification of retirement eligibility shall be
the responsibility of the employer. In cases w here
the error results in disqualificatio n of retirement
eligibility, it is the employer 's responsibility to
reemploy the member, or retain the member on the
payroll, for the time period required to reach
eligibility, not exceeding two (2) months.
(b) An individual who becomes a member of the Te achers'
Retirement System on or after November 1, 2017, but before November
1, 2023, shall be employed by the public schools, stat e colleges or
universities of Oklahoma for a minimum of seven (7) years and be a
contributing member of the Teachers ' Retirement System of Oklahoma
for a minimum of seven (7) years to qualify for monthly retirement
benefits from the Teachers ' Retirement System of Oklahoma. RBH No. 5119
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(c) An individual who becomes a member of the Teachers '
Retirement System on or after November 1, 20 23, shall be employed by
the public schools, state colleges or universi ties of Oklahoma for a
minimum of five (5) years and be a contribu ting member of the
Teachers' Retirement System of Oklahoma for a minimum of five (5)
years to qualify for monthly retirement b enefits from the Teachers'
Retirement System of Oklahoma.
(c) (d) Any member with seven (7) or more years of Oklahoma
teaching service and whose accumulated contributions during such
period have not been withdrawn shal l be given an indefinite
extension of membership beginning with the sixth year following his
or her last contributing membership and shall become eligible to
apply for retirement and be retired upon attaining age fifty -five
(55).
(2) An unclassified optio nal member who has retired or who
retires at sixty-two (62) years of age or older or whose retirement
is because of disability shall have his or her minimum retirement
benefits calculated on an average salary of Five Thousand Three
Hundred Fifty Dollars ($ 5,350.00) or, if a larger monthly all owance
would result, an amount arrived at pursuant to application of the
formula prescribed herein.
(3) No member shall receive a lesser retirement benefit than he
or she would have received under the law in effect at the time he or
she retired. Any indi vidual under the Teachers' Retirement System, RBH No. 5119
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who through error in stating the title of the position which he or
she held, may, at the discretion of the Board of Trustees, be
changed from the nonclassified optional grou p to the classified
group for the purpose of calculating retirement benefits.
Any individual regardless of residence, who has a minimum of ten
(10) years of teaching i n Oklahoma schools prior to July 1, 1943, or
who taught in Oklahoma schools prior to 1934 and thereafter taught a
minimum of ten (10) years and who does not qualify under the present
retirement System, or who has a minimum of thirty (30) years of
teaching in Oklahoma schools and has reached seventy (70) years of
age prior to July 1, 1984, and is not otherwise eligible to receive
any benefits from the retirement system shall receive a minimum of
One Hundred Fifty Dollars ($150.00) per month in retirement ben efits
from the Teachers' Retirement System of Oklahoma plus any general
increase in benefits for annuitants as may be provided hereafter by
the Legislature. Each individual must apply to the Teachers'
Retirement System for such benefit and provide evidenc e to the
Teachers' Retirement System that the service was actually rendered.
The surviving spouse of any person who made appl ication for the
benefit provided for by this paragraph during his or her lifetime
but did not receive the benefit may submit an ap plication to the
System for payment of the benefit for those months during the
lifetime of the deceased person that he or she was eligible for but
did not receive the benefit. Upon approval o f the application by RBH No. 5119
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the Board of Trustees, the benefit shall be paid to the surviving
spouse in one lump sum.
(4) The value of each year of prior servi ce is the total
monthly retirement be nefit divided by the number of years of
creditable service.
(5) Upon application of a member who is actively engaged in
teaching in Oklahoma or his or her employer, any member who has been
a contributing member for ten (10) years may be retired by the
System subsequent to the execution and filing thereof, on a
disability retirement allowance, provided that it is found by the
Medical Board after medical examination of such member by a duly
qualified physician that such m ember is mentally or physically
incapacitated for further performance of duty, that such incapacity
is likely to be permanent, and that such member should be retired.
The System shall rely on and give full consideration to the
conclusions and recommendati ons in the certified written report o f
the Medical Board of the Teachers ' Retirement System regarding t he
disability application of such member. If the Medical Board does
not find that a member applying for disability retirement is
mentally or physically incapacitated for performance of duty or
otherwise eligible for a disability retirement, the applicatio n
shall then be considered by the Board of Trustees. If a membe r is
determined to be eligible for disability benefits pursuant to the
Social Security System, then such determination shall e ntitle the RBH No. 5119
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member to the authorized disability retirement allowanc e provided by
law. For members who are not eligible for disabil ity benefits
pursuant to the Social Security System, the Board of Trustees and
the Medical Board shall apply the same standard for which provision
is made in the first two sentences of this su bsection for
determining the eligibility of a person for such di sability benefits
in making a determination of eligibility for disability benefits as
authorized by this subsection.
(6) (a) A member who at the time of retirement has been found
to be permanently physically or mentally incapacitated to perform
the necessary duties to continue in his or her current position
shall receive a minimum monthly re tirement payment for life or until
such time as the member may be found to be recovered to the point
where he or she may return to teaching. Any member retired before
July 1, 1992, shall be eligible to receive the monthly retirement
allowance herein provi ded, but such payment shall not begin until
the first payment due him or her after July 1, 1992, and sh all not
be retroactive. The Board of Trustees is empowered to m ake such
rules and regulations as it considers proper to preserve equity in
retirements under this provision, which shall incl ude a provision to
protect the rights of the member 's spouse.
(b) A member who has qualified for retirement benefits under
disability retirement shall have the total monthly payment deducted
from his or her accumulated contributions plus interest earned a nd RBH No. 5119
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any money remaining in the member 's account after the above
deductions at the death of the member shall be paid in a lump sum t o
the beneficiary or to the estate of the member. Provided, if the
deceased disabled mem ber had thirty (30) years or more of creditable
service and the death occurred after June 30, 1981, and death
occurred prior to the disabled member receiving twelve mo nthly
retirement payments, a surviving spouse may elect to receive the
retirement benefit to which the deceased member would h ave been
entitled at the time of death under the Option 2 Plan of Retirement
provided for in subsection (8) of this section in lie u of the death
benefit provided for in this subsection and in subsection (12) of
this section.
(c) Once each year the System may require any disabled
annuitant who has not yet attained the ag e of sixty (60) years to
undergo a medical examination, such exa mination to be made at the
place of residence for the disabled annuitant or other place
mutually agreed upon by a physician or physicians designated by the
System. Should any disabled annuita nt who has not yet attained the
age of sixty (60) years refuse t o submit to at least one medical
examination in any such year by a physician or physician s designated
by the System his or her allowance may be discontinued until he or
she submits to such exa mination.
(d) Should the Medical Board report and certify to th e Board of
Trustees that such disabled annuitant is engaged in or is able to RBH No. 5119
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engage in a gainful occupation paying more than t he difference
between his or her retirement allowance and the aver age final
compensation, and should the Board of Trustees concur in such report
then the amount of his or her pension shall be reduced to an amount
which, together with his or her retirement allowance and that amount
earnable by him or her, shall equal the amount of his or her average
final compensation. Should his or her earning capacity be later
increased, the amount of his or her pension may be further modified,
provided the new pension sh all not exceed that amount of the pension
originally granted nor a n amount, which when added to the amount
earnable by the member, together with his or her annuity, equals the
amount of his or her average final compensa tion.
(e) Should a disabled annuitan t be restored to active service,
his or her disability retirement allowance shall cease and he or she
shall again become a member of the Teachers' Retirement System and
shall make regular contributions as required under this article.
The unused portion of his or her accumulated contributions shall be
reestablished to his or her credit in the Teachers ' Savings Fund.
Any such prior service certificates on the basis of which his or her
service was computed at the time of his or her retirement shall be
restored to full force and effect.
(7) Should a member before retiremen t under Section 1-101 et
seq. of this title make application for withdrawal duly filed with
the System, not earlier than four (4) months after the date o f RBH No. 5119
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termination of such service as a te acher, the contribution standing
to the credit of his or her indiv idual account in the Teachers '
Savings Fund shall be paid to him or her or, in the event of his or
her death before retirement, shall be paid to such per son or persons
as he or she shall hav e nominated by written designation, duly
executed and filed with t he System; provided, however, if there be
no designated benefici ary surviving upon such death, such
contributions shall be paid to his or her administrat ors, executors,
or assigns, together with interest as hereinafter provided. In lieu
of a lump-sum settlement at the death of the member, the amount of
money the member has on deposit in the Teachers' Savings Fund and
the money the member has on deposit in the Teachers' Deposit Fund
may be paid in monthly payments to a designated beneficiary, who
must be the spouse, under the Maximum or Option 1 Plan of Retirement
providing the monthly payment shall be not less than Twenty -five
Dollars ($25.00) per month. The monthly payment shall be the
actuarial equivalent of the amount becoming due at the member 's
death based on the sex of the spouse and the age the spouse has
attained at the last birthday prior to the member 's death. Provided
further, if there be no de signated beneficiary surviving upon s uch
death, and the contributions standing to the credit of such me mber
do not exceed Two Hundred Dollars ($200.00), no part of suc h
contributions shall be subject to the payment of any expense of the
last illness or funeral of the deceased member or any ex pense of RBH No. 5119
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administration of the estate of such deceased and the Sys tem, upon
satisfactory proof of the death of such member and of the name or
names of the person or persons who would be entitled to receive such
contributions under the laws of descent and d istribution of the
state, may authorize the payment of accumulated contributions to
such person or persons. A member terminating his or her membership
by withdrawal after June 30, 2003, shall have the interest computed
at a rate of interest determined by the Board of Trustees and paid
to him or her subject to the follow ing schedule:
(a) If termination occurs within sixteen (16) yea rs from the
date membership began, fifty percent (50%) of such interest
accumulations shall be paid.
(b) With at least sixtee n (16) but less than twenty-one (21)
years of membership, sixty pe rcent (60%) of such interest
accumulations shall be paid.
(c) With at least twenty-one (21) but less than twenty -six (26)
years of membership, seventy -five percent (75%) of such interest
accumulations shall be paid.
(d) With at least twenty -six (26) years of membership, ninety
percent (90%) of such interest accumulat ions shall be paid.
In case of death of an active member, the interest shall be
calculated and restored to the member 's account and paid to his or
her beneficiary. RBH No. 5119
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(8) (a) In lieu of his or her retirement allowance payable
throughout life for such an amo unt as determined under this section,
the member may select a retirement allowance for a reduced amount
payable under any of t he following options the present value of
which is the actuarial e quivalent thereof.
(b) A member may select the option under whi ch he or she
desires to retire at the end of the school year in which he or she
attains age seventy (70) and the option shall be binding and cannot
be changed. Provided further that if a memb er retires before age
seventy (70), no election of an option sha ll be effective in case an
annuitant dies before the first payment due under such option has
been received.
(c) The first payment of any benefit selected shall be made on
the first day of the month following approval of the retirement by
the System. If the named designated joint annuitant under Option 2
or 3 dies at any time after the member 's retirement date, but before
the death of the member, the member shall return to the retirement
benefit, including any post retirement benefit increases the member
would have received had the member not selected Option 2 or 3 of
this subsection. The ben efit shall be determined at the date of
death of the designated joint annuitant. This increase shall b ecome
effective the first day of the month following the date of death of
the designated joint annuitant, and shall be payable for the
member's remaining lifetime. The member shall notify t he Teachers' RBH No. 5119
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Retirement System of Oklahoma of the death of the des ignated joint
annuitant in writing. In the absence of the writt en notice being
filed by the member notifying the Teachers ' Retirement System of
Oklahoma of the death of the designated joint annuitant within six
(6) months of the date of death, nothing in this subsection shall
require the Teachers ' Retirement System of Oklahoma to pay more than
six (6) months of retrospective benefits increase.
Option 1. If he or she dies before he or she ha s received in
annuity payments the present value of his or her ann uity as it was
at the time of his or her retirement, the balance shall be paid to
his or her legal representatives or to such person as he or she
shall nominate by written designation duly a cknowledged and filed
with the System at the time of his or her re tirement; or
Option 2. A member takes a reduced retirement allo wance for
life. Upon the death of the member the payments shall continue to
the member's designated joint annuitant for the l ife of the joint
annuitant. The written designation of the joint annuitant must be
duly acknowledged and filed with the System at the time of the
member's retirement and, except as provided in paragraph (e) of this
subsection, cannot be changed after the effective date of the
member's retirement; or
Option 3. A member receives a reduced retirement allowance for
life. Upon the deat h of the member one-half (1/2) of the retirement
allowance paid the member shall be conti nued throughout the life of RBH No. 5119
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the designated joint annuitant. A written designation of a joint
annuitant must be duly acknowledged and filed with the System at the
time of the member's retirement and, except as provided in paragraph
(e) of this subsection, cannot be changed after the effective date
of the member's retirement; or
Option 4. Some other benefit or benefits shall be paid either
to the member or to such joint annuitant as he or she shall
nominate, provided such other benefit or benefits, together with the
reduced retirement allowanc e, shall be certified by the actuary to
be of equivalent actuarial value to his or her retirement allowance
and shall be approved by the System.
(d) Provided that Option 2 and Option 3 shall not be available
if the member's expected benefit is less than f ifty percent (50%) of
the lump-sum actuarial equivalent and the de signated joint annuitant
is not the spouse of the member.
(e) A member who chose the maximum retirement benefit plan at
the time of retirement may make a one-time election to choose either
Option 2 or 3 and name the member 's spouse as designated joint
annuitant if the member marries after making the initial election.
Such an election shall be made within one (1) year of the date of
marriage. The member shall provide proof of a member 's good health
before the System will permit a change to either Option 2 or 3 and
the naming of a designated joint annuitant. A medical examination
conducted by a licensed physician is required for purposes of RBH No. 5119
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determining good health. Such examination must be approved by the
Medical Board. The member shall be required to pr ovide proof of age
for the new joint annuitant. The System shal l adjust the monthly
benefit to the actuarially equivalent amount based on the new
designated joint annuitant 's age. The Board of Trustees shall
promulgate rules to implement the provisions o f this subsection.
(f) A member who retires after the effective date of this act
and has selected a retirement allowance for a reduced amount payable
under one of the options provided for i n this subsection may make a
one-time irrevocable election to sele ct a different option within
sixty (60) days of the member 's retirement date. The beneficiary or
joint annuitant designated by the member at the time of retirement
shall not be changed if t he member makes the election provided for
in this paragraph.
(g) Any individual who is eligible to be a beneficiary or joint
annuitant of a member under this subsection, and who is also a
beneficiary of a trust created under the Oklahoma Discretionary and
Special Needs Trust Act, Section 175.81 et seq. of Title 60 of th e
Oklahoma Statutes, or a comparable Trust Act created under the laws
of another state, hereinafter collectively referred to as "Trust
Acts", may be a beneficiary or joint annuitant under th is subsection
by having the trustee of the trust established for t he benefit of
that individual named as the legal beneficiary or joint annuitant
under this subsection. The age of that beneficiary shall be used RBH No. 5119
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for calculating any benefit payable to the t rust under this
subsection. The beneficiary of such a trust shall be treated as the
beneficiary or joint annuitant under this sub section except that
payments of any benefits due under this subsection shall be payable
to the lawfully appointed trustee of t he trust. The obligation of
the System to pay the beneficiary or joint annuitant under this
subsection shall be satisfied by paym ent to the trustee whom the
System, in good faith, believes to be the lawfully appointed
trustee. Any conflict between the st atutes creating and governing
the Teachers' Retirement System in S ection 17-101 et seq. of this
title and the provisions of any Tr ust Act referred to above shall be
resolved in favor of the statutes governing the System . If an
eligible beneficiary or join t annuitant is named at the time of
retirement, and becomes a bene ficiary of a trust under one of the
Trust Acts described herein after that time, the System will
acknowledge the trust as the beneficiary upon the submis sion of
adequate documentation of the existence of the trust. All other
provisions of this subsection shall apply to these subsequently
created trusts.
(h) The Board of Trustees of the System may recognize other
trusts set up for the benefit of individua ls otherwise eligible to
be named as a beneficiary or joint annuitant under this subsection
by administrative rule if it can be done without undue additional
administrative expense of the System. RBH No. 5119
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(9) The governing board of any "public school", as that term is
defined in Section 17 -101 of this title, is hereby authorized and
empowered to pay additional reti rement allowances or compensation to
any person who was in the e mploy of such public school for not less
than seven (7) school years preceding the date o f his or her
retirement. Payments so made shall be a proper charge against the
current appropriation o r appropriations of any such public school
for salaries for the fiscal year in which such payments are made.
Such payments shall be made in regular mont hly installments in such
amounts as the governing board of any such public school, in its
judgment, shall determine to be reasonable and appropriate in view
of the length and type of service rendered by any such person to
such public school by which such p erson was employed at the time of
retirement. All such additional payments shall be uniform, based
upon the length of service and the type of services performed, to
persons formerly employed by such public school who have retired or
been retired in accord ance with the provisions of Section 1 7-101 et
seq. of this title.
The governing board of any such publi c school may adopt rules
and regulations of general application outlining the terms and
conditions under which such additional retirement benefits shall be
paid, and all decisions of such bo ard shall be final. RBH No. 5119
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(10) In addition to the teachers ' retirement herein provided,
teachers may voluntarily avail themselves of th e Federal Social
Security Program upon a district basis.
(11) Upon the death of an in -service member, the System shall
pay to the designated beneficiary of the member or, if there is no
designated beneficiary or if the designated beneficiary predeceases
the member, to the estate of the member, the sum of Eighteen
Thousand Dollars ($18,000.00) as a death benefit. Provided, if th e
deceased member had ten (10) year s or more of creditable service ,
the member's designated beneficiary may elect to receive the
retirement benefit to which the deceased member would have been
entitled at the time of de ath under the Option 2 plan of retire ment
in lieu of the death benefit provided for in this subsection.
Provided further, the option provided in this subsection is on ly
available when the member has designated one individual as the
designated beneficiary. The beneficiary or beneficiaries of death
benefits in the amount not to exceed Eighteen Thousand Doll ars
($18,000.00), but exclusive of any retirement benefit receiv ed by an
electing beneficiary based upon creditable service performed by the
deceased member, which are provided pursuant to t his subsection may
elect to disclaim such death benefits in which case such benefits
will be transferred to a person licensed as a funeral director or to
a lawfully recognized business entity licensed as required by law to
provide funeral services for the deceased member. The qualified RBH No. 5119
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disclaimer must be in writing and will be an irrevocable and an
unqualified refusal to accept all or a portion of the death benefit.
It must be received by the transferor no more than ni ne (9) months
after the later of the day the transfer creating the interest in the
disclaiming person i s made or the day the disclaiming person attains
age twenty-one (21). The interest in the death benefits must pass
without direction by the disclaiming person to another person.
(12) Upon the death of a retired member who has contributed to
the System, the retirement system shall pay to the designated
beneficiary of the member or, if there is no designated beneficiary
or if the designated beneficiary pre deceases the member, to the
estate of the member, the sum of Five Thousand Dollars ($5,000.00)
as a death benefit. The beneficiary or beneficiaries of benefits
provided pursuant to this subsection may elect to disclaim such
death benefits in which case su ch benefits will be transferred to a
person licensed as a funeral director or to a lawfully recognized
business entity licensed as required by law to provide funeral
services for the deceased member. The qualified disclaimer must be
in writing and will be an irrevocable and an unqualified re fusal to
accept all or a portion of the death benefit. It must be received
by the transferor no more than nine (9) months after t he later of
the day the transfer creating the interest in the disclaiming person
is made or the day the disclaiming person att ains age twenty-one
(21). The interest in the death benefits must pass without RBH No. 5119
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direction by the disclaiming person to another per son. The benefit
payable pursuant to this subsection shall be deemed, for purposes of
federal income taxation, as life insura nce proceeds and not as a
death benefit if the Internal Revenue Se rvice approves this
provision pursuant to a private letter rulin g request which shall be
submitted by the Board of Trustees of the System for that purpos e.
(13) Upon the death of a member w ho dies leaving no living
beneficiary or having designated his or her estate as beneficiary,
the System may pay any applicable dea th benefit, unpaid
contributions, or unpaid benefit which may be subject to probate, in
an amount of Twenty-five Thousand Dollars ($25,000.00) or less,
without the intervention of the probate court or probate procedure
pursuant to Section 1 et seq. of Titl e 58 of the Oklahoma Statutes.
(a) Before any applicable probate procedure may be waived , the
System must be in receipt of th e member's proof of death and the
following documents from those p ersons claiming to be the legal
heirs of the deceased member:
1. The member's valid last will and testament, trust
documents or affidavit that a will doe s not exist;
2. An affidavit or affid avits of heirship which must
state:
a. the names and signatures of all claiming heirs to
the deceased member's estate including th e
claiming heirs' names, relationship to the RBH No. 5119
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deceased, current addresses, tax I.D. number s if
known and current telephone numb ers,
b. a statement or statements by the claiming heirs
that no application or petition for the
appointment of a personal represen tative is
pending or has been granted in any jurisdiction,
c. a description of the person al property claimed,
(i.e., death benefit or unpaid contributions or
both) together with a statement th at such
personal property is subject to probate,
d. a statement by each individual claiming heir
identifying the amount of personal property that
the heir is claiming from the System, and th at
the heir has been notified of, is aware of and
consents to the identified claims of all the
other claiming heirs of the decease d member
pending with the System;
3. A written agreement or agreements signed by all
claiming heirs of the deceased member whi ch provides
that the claiming heirs release, discharge and hold
harmless the System from any and all liability,
obligations and costs which it may incur as a result
of making a payment to any of the deceased member 's
heirs; RBH No. 5119
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4. A corroborating affidavit fro m an individual other
than a claiming heir, who was familiar with the
affairs of the deceased member;
5. Proof that all debts of t he deceased member, including
payment of last sickness, hospital, medical, death,
funeral and burial expenses have been paid o r provided
for.
(b) The Executive Director of the System shall re tain complete
discretion in determining which requests for proba te waiver may be
granted or denied, for any reason. Should the System have any
question as to the validity of any document pr esented by the
claiming heirs, or as to any statement or assertion contained
therein, the probate requirement provided for in Sect ion 1 et seq.
of Title 58 of the Oklahoma Statutes shall not be waived.
(c) After paying any death benefits or unpaid contrib utions to
any claiming heirs as provided pursuant to this subsecti on, the
System is discharged and released from any and all liabi lity,
obligation and costs to the same extent as if the System had dealt
with a personal representative of the deceased member . The System
is not required to inquire into the truth of any mat ter specified in
this subsection or into the payment of any esta te tax liability.
(14) Upon the death of a retired member, the benefit payment
for the month in which the retired member died , if not previously
paid, shall be made to the joint annuitant if still living, to the RBH No. 5119
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beneficiary of the member if the joint annu itant is deceased, or to
the member's estate if there is no surviving joint annuitant or
beneficiary. Such benefit payment sh all be made in an amount equal
to a full monthly benefit payment r egardless of the day of the month
in which the retired member di ed.
SECTION 3. 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 mad e, multiplied by the
number of the member 's years of creditable service.
A classified member who retired prior 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 is 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 RBH No. 5119
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salary of Nine Thousand Five H undred Dollars ($9,500.00) or on the
member's current minimum average salary plus One Thousand Dollars
($1,000.00), whichever is greater. Begi nning 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 receivi ng benefits pursuant 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 disabilit y, the retirement
allowance shall be subject t o adjustment in accordance with the
actuarial equivalent factors 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 i nstitution
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%) o f the RBH No. 5119
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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:
(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 made,
multiplied by the number of t he member's years of
credited service authorized and performed after
June 30, 1995, or RBH No. 5119
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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 compensation 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 F orty Thousand Dollars
($40,000.00) pursuant to paragraph 1 of subsection C
of this section or pursuant to subsection 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),
multiplied by the number of the member 's years of
credited service authorized and perform ed 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 member 's years of
credited service authorized and performed after
June 30, 1995.
3. A member who becomes a member on or aft er the effective date
of this act and who retires on or after the member 's normal
retirement age or whose retirement is be cause of disability shall RBH No. 5119
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receive an annual all owance for life, payable monthly, in an amount
equal to:
a. one and seven-tenths percent (1.7%) of the member's
average salary multiplied by the number of member 's
years of credited service, if the member has at least
five (5) years but not more than thirteen (13) years
of credited service,
b. two percent (2.0%) of the member's average salary
multiplied by the number of member 's years of credited
service, if the member has more than thirteen (13)
years but not more than twenty-five (25) years of
credited service,
c. two and one-tenths percent (2.1%) of the member's
average salary multiplied by the number of member's
years of credited service, if the member has more than
twenty-five (25) years but not more than thirty-three
(33) years of credited service, or
d. two and two-tenths percent (2.2%) of the member's
average salary multiplied by the number of member's
years of credited service, if the member has more than
thirty-three (33) years of credited service.
B. Except as otherwise provided for in this section, the amount
contributed by each member to the retirement syste m shall be: RBH No. 5119
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1. Beginning July 1, 1992, through June 30, 1996, six percent
(6%) of the regular annual compensation of 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, th rough 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 ($25,0 00.00) 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
institution within The Oklahoma State System o f 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 sha ll treat the employee
contributions as being picked up under the provisions of Section 414
(h)(2) of the Internal R evenue Code of 1986 in determining tax
treatment.
Subject to Internal Reve nue Service approval, paragra ph 4 of this
subsection shall not appl y to a comprehensive university group
established on or before July 1, 1998, whose employee contributions RBH No. 5119
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were consistently treated as not picked up as of July 1, 1998, and
at all times thereafter.
C. 1. Prior to Jul y 1, 1995, an active member of the Sys tem
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 20, 1987, shall
file the election with the System prior 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 ($25,000.00). If a member makes such
an election, the member shall contribute the following amounts:
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 Ju ne 30, 1994, nine
percent (9%) of the regular annual compensation of
such member that is in excess of T wenty-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, 199 5, eight
percent (8%) of the regular annual compensation of RBH No. 5119
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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 suc h election shall
be irrevocable.
2. After June 30, 1995, in addition to t he amount contributed
by each member to the retirement system pursu ant to subsection B of
this section, the total amount contributed by each member to the
retirement system shall inc lude, beginning July 1, 1995, through
June 30, 1997, seven percent (7%) of the regular annual compensat ion
of each member, who is not employe d by an entity or institution
within The Oklahoma State System of Higher Education, that is in
excess of Twenty-five Thousand Dollars ($25,000.00) and beginning
July 1, 1996, through June 3 0, 1997, seven percent (7%) o f the
regular annual compensation of e ach 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 compensati on 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 the RBH No. 5119
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member to Forty Thousand Dollars ($40,000.00), may elect to ma ke
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 t o a maximum of Forty Thousand
Dollars ($40,000.00) shall be made prior to the official retirement
date of the member. The required payment shall include any
contribution required by the employing school district, and shall
include interest compounded annu ally at ten percent (10%) per annum
of both employer and employee contributions.
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 o f 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 h er
withdrawal shall contribute on the earning ceiling as provided for
in this section on his or her ree ntry into membership in the
Teachers' Retirement System.
2. An individual who elected to contribute on a maximum of
Seven Thousand Eight Hundred Dollars ($7,800.00) per annum shall, RBH No. 5119
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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 Eight
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 Sev en
Thousand Eight Hundred Dollars ($7,800.00) and the actual salary of
the member, not to exceed Ten Th ousand Dollars ($10,000.00) for each
applicable school year, plus interest compounded annually at ten
percent (10%) per annum. Such payment shall be mad e prior to the
official retirement date of the member.
F. Each employer shall cause to be deducted fro m the salary of
each member on each an d 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 the
school year. In determining the amount earnable by a member in a
payroll period, the Board of Trustees shall consid er the rate of
annual compensation payable to such member on the first day of the
payroll period as con tinuing throughout such payroll period , and it
may omit deductions from compensation for any period less than a RBH No. 5119
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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 which such deduction is to be made.
Prior to January 1, 1991, any a ctive contributing member who joined
the System subsequent to July 1, 1943 , may pay the normal cost,
which shall mean the single sum which wo uld have been paid under
existing statutes at the time the service was performed, plus
interest, for years of teach ing 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 equal t o establishing one (1) year of
creditable service. Effective January 1, 1991, any active
contributing member who j oined the System subsequent to July 1,
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 the date of establishment of the System in
1943 to date of members hip, in a lump sum, or in installments equal
to establishing one (1) year of creditable service. For p urposes of
this option, teaching servi ce 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 mem ber may receive credit for
not more than five (5) years of teaching service rendered while in
the Peace Corps or in the public schools of a territory of the RBH No. 5119
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United States or the public schools, American Military Dependent
Schools 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 regulati ons of the
Board of Trustees, providing he or she is not receiving and is not
eligible to receive retir ement credit or benefits from said ser vice
in any other public retirement system of this state, or any other
state or territory of the United States subj ect 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, 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, 1 991, the
Peace Corps, territorial, out -of-state or noncovered
in-state payment shall be the amount determined by th e RBH No. 5119
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Board of Trustees pursuant to Section 17-116.8 of this
title.
2. In addition to the deductions herei nabove provided for, any
member who becomes a member of the Armed Forces of the United States
of America during any period of national emergency, includi ng World
War II, the Korean conflict, the Vietnam conflict or others as ma y
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 or shall have become a
member of the Teachers' Retirement System shall be gra nted the
privilege of making up his or her five percent (5%) contri butions as
provided for in this section until January 1, 1991, for not to
exceed five (5) years of service in the A rmed Forces by electing to
pay said contributions on 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 was not teaching
prior to entering the Armed Forces, on the basis of the salary of
the first year of teaching after bei ng 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 t he
period for which said contributions were paid shall be counted as
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the military service was rendered, except that the period for which
contributions were pa id 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 military
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 Code.
3. Retirement benefits for all service c redits purchased
pursuant to this subsection shall be determined in accord ance with
the provisions of paragraph 2 of this subsection.
G. Effective July 1, 2004, the total creditable service of a
member who retires or terminates employment and elects a ves ted
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 member 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 se rvice
earned prior to July 1, 1995. This subsection shall apply to
members retiring or vesting on or after the eff ective date of this
act and shall not be retroactive.
H. Any member who: RBH No. 5119
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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 th irty (30)
days from the date as of which the person is officially elected or
appointed to file an elect ion with the Teachers ' Retirement System
to retain his or her membership in the Teachers ' Retirement System
upon payment of the contribution required of other members and
employers of said members as provided for in this sectio n and his or
her service credits shall continue to be accumulated d uring such
absence, provided he or she is not receiving retirement credits or
benefits from said service beginning after July 1, 1992, in other
public retirement systems; or
2. Became an employee of the Oklahoma Commi ssion for Teacher
Preparation on or su bsequent to June 1, 2001, but prior to July 1,
2002, who was previously employed by a participating employer within
the Teachers' Retirement System of Oklahoma, may elect to cancel any
accumulated service credit accrue d 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 Pub lic
Employees Retirement System for the cancellation of such service
credit. The election shall be irr evocable and shall require the
Oklahoma Public Employees Retirement System to transfer all
accumulated employer and employee contributions made on behalf of or
by the person making such election to the Teachers ' Retirement RBH No. 5119
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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 ha d been
computed pursuant to this section. In order to receive the full
amount of creditable service fo r 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 transfe rred employee
contributions and the amount computed by the Teachers ' Retirement
System. The employee m ay make payment of any required amount in the
manner provided by and subject to the requirements of Section 17 -
116.8 of this title. After payment of all required employee
contributions, the Teachers' Retirement System shall cr edit the
period of time repre sented by the transferred employee con tributions
as creditable service within the meaning of Section 17 -101 of this
title. After the transfer of the emp loyee 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 person who makes the
election provided for by th is paragraph, and who continues
employment with the Oklahoma Commission fo r Teacher Preparation on
or after July 1, 2002, shall continue to a ccrue service credit in
the Teachers' Retirement System of Oklahoma. The employer shall
make employer contribution s according to the requirements of Section RBH No. 5119
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17-108.1 of this title and shal l provide for the deduction o f
employee contributions as required b y this section.
I. Any member who shall be absent from the teaching service
because of election or appointment as a local, state or national
education association officer, prior to January 1, 2011, shall be
allowed to retain his or her membership in the T eachers' Retirement
System upon payment of the contribution required of other members
and employers of said members as provided for in this section and
his or her service credits shall cont inue to be accumulated during
such absence. Provided, however, any one such absence shall not
exceed twelve (12) continuous years. No member who has less than
ten (10) years of con tributory service on July 1, 1994, may make
this election after June 30, 1 994. Members contributing to the
System on July 1, 1994, may conti nue 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 p rovided by Section 17-105 of this title.
J. A member may receive c redit for those years of service
accumulated by the member while employed by an entity which is a
participating employer in the Oklahoma Firefighters Pension and
Retirement System, the Okla homa Police Pension and Retir ement
System, the Uniform Retirement S ystem for Justices and Judges, the
Oklahoma Law Enforcement Retirement System, or the Oklahoma Public
Employees Retirement System, if the member is not receiving or RBH No. 5119
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eligible to receive reti rement credit or benefits fro m said service
in any other public ret irement system. A member also may receive
credit for those years of service 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 member is not
receiving or eligible to receive retirement credit or benefits fro m
said service in any other p ublic retirement system. To receive t he
service credit provided in this subsection, the member shall pay the
amount determined by the Board of Trustees pursuant to Section 17-
116.8 of this title. For purposes of this subsecti on, creditable
service transferred from the Oklahoma Public Employe es Retirement
System shall include service authorized under paragraph (f) of
subsection (2) of Section 913 of Title 74 of the Oklahoma Statutes
as amended from time to time. Members who re tire prior to July 1,
1993, shall have their monthly benefit adjust ed to include all
services accrued under paragraph (f) of subsection (2) of Section
913 of Title 74 of the Oklahoma Statutes. Provided however, any
adjustment of existing retirement benefi ts caused by reason of
inclusion of such service authorized under p aragraph (f) of
subsection (2) of Section 913 of Title 74 of the Oklahoma Statutes
shall not affect any retirement benefit paid prior to July 1, 1993. RBH No. 5119
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K. 1. An active member of the Teache rs' Retirement System of
Oklahoma may receive credit for those year s of service accumulated
by the member while a member of the Oklahoma Public 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 servi ce credit. The notice shall
include a list of the years to be transferred , and
c. the member is not re ceiving or eligible to receive
retirement credit or benefits from said service in any
other public retirement system, notwithstanding the
years of service sought to be transferred under this
subsection.
Members electing to take advantage of the transfer au thorized by
this subsection who are re ceiving 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 Public
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 t his
subsection. Service credit transferred to the Teachers ' Retirement RBH No. 5119
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System of Oklahoma under this s ubsection shall also be canceled with
the Oklahoma Public Employees Retirement System.
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.
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 acc rued at least eight (8)
years of credited service with the sending
system, determine the present value of the
member's earned benefits attributable to the
years of service sought to 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 woul d 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 Bo ard of
Trustees for purposes of preparing the annual
actuarial evaluation, but shall not make any RBH No. 5119
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projections regarding future salary. For
employees who have accrued at least eight (8)
years of credited service, the sending system
shall use the product of this calculation for
purposes of determining the transfer fee to b e
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
annual actuarial evaluation. For al l 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 calculation in division (1) of
this subparagraph, the sending system 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 RBH No. 5119
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paragraph and any transfer fee to be paid by the
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 valu e
of the member's incremental projected benefits
discounted according to t he 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 the service
credit and the projected benefit after transfer of
service credit computed as of the earliest a ge at
which the member would be able t o retire. Said
computation shall assume an unreduced benefit and be
computed using interest, salary projections an d
mortality assumptions consistent with the actuarial
assumptions adopted by the Board of Trustees for
purposes of preparing the annual actua rial evaluation.
c. The sending system shall, within sixty (60) days from
the date notification of an intent to tra nsfer is
received by the sending system, transfer to the
receiving system the amount determined in subp aragraph
a of this paragraph. Except if the cost as calculated RBH No. 5119
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under subparagraph a of this paragraph is greater than
the actuarial value of the increme ntal benefit in the
receiving system, as established in subparagraph b of
this paragraph, the sending s ystem shall send the
receiving system an amount equal to the actuarial
value of the incremental projected benefit 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 se rvice to the sending system as
established in subparagraphs a and b of thi s
paragraph, the employee sha ll elect to:
(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 pursuan t to this
subsection.
Such an election shall be made in writing, fi led with
the System prior to receiving the credit provided for RBH No. 5119
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in paragraph 1 of this subsection, and shall be
irrevocable.
3. Within sixty (60) days of successfully completing all of the
requirements for transfer und er this subsection, the sending system
shall pay the receiving system any amount due under this subsection.
Within sixty (60) days of successfully compl eting all of the
requirements for transfer under this subsection, the memb er shall
pay the receiving sy stem any amount due under this subsect ion. In
the event that the member is unable to pay the transfer fee provided
for in this subsection by the due dat e, the Board of Trustees of the
receiving system shall permit the member t o amortize the transfer
fee over a period not to exceed sixty (60) months. Said payments
shall be made by payroll deductions unless the Board of Trustees
permits an alternate paymen t source. The amortization shall include
interest in an amount not to exc eed the actuarially assumed i nterest
rate adopted by the Board of T rustees for investment earnings each
year. Any member who ceases to make payment, terminates, retires or
dies before completing the payments provided for in this section
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 interest within six (6) months after said member 's
death, termination of employment or retirement, provided no
retirement benefits shall be payable unt il the unpaid balance is RBH No. 5119
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paid, unless said member or beneficiary affirmatively waives the
additional six-month period in which to pay the unpaid balance.
4. Years of service transferred pursuant to this subsection
shall be used both in determining the mem ber's retirement benefit
and in determining the years of service for retirement and/or
vesting purposes. Years 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 Teac hers'
Retirement System of Oklahoma before July 1, 1992.
5. Notwithstanding the requirements of subsec tion (5) of
Section 917 of Title 74 of the Oklahoma Statutes, members electing
to take advantage of the transfer authorized by this subsection who
have withdrawn their contributions from the sending system shall
remit to the sending system the amount of th e accumulated
contributions the member has withdrawn plus simple interest of ten
percent (10%) per annum prior to making said election or the
election shall be deemed invalid and the transfer shall be canceled.
If such an election is deemed invalid and th e transfer is canceled,
the accumulated contribution remitted to the sending system by the
member who originally withdrew their contributions shall be re turned
to the member. The member's rights and obligations regarding any
service credit reestablished i n the sending system due to a failure RBH No. 5119
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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.
6. If any member fails for any reason to satisfy th e
requirements of this subsection, the election to transfer service
credit shall be void and of no effect, and any service credited as a
result of this transfer shall be canceled. If such service is
canceled, the years of canc eled service credit which wer e
unsuccessfully transferred to the re ceiving system from the sending
system shall be reestablished in the sending system. The member 's
rights and obligations regarding any service credit reestablished in
the sending system du e 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 rules as are
necessary to implement the provisions of th is subsection.
L. Any member whose re gular 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 not
included in the memb er's regular annual compensat ion and receive
credit for such amount in the calculation of the member 's benefit.
The employees must pay the employer contributions required pursuant
to Section 17-108.1 of this title. Interest at the rate of ten RBH No. 5119
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percent (10%) per annum shall be charged to both employee and
employer contributions. Provided that the employing district may
pay all or any portion of the contributions and interest the memb er
is required to pay. Any payment by the employing district for a
prior year obligation shall be cons idered a current obligation of
the employer.
M. Any active member who elected during the 1978 -79 school year
to pay the difference between five percent (5%) on actual salary not
exceeding Ten Thousand Dollars ($10,000.00) and six percent (6%) on
actual salary not exceeding Fifteen Thousand Do llars ($15,000.00)
shall receive credit for one (1) year of credited service upon
receipt and approval of a proper request by the Board of Trustees.
N. Effective July 1, 1988, any member w ho is employed by the
Governor, the State Senate, the House of Repr esentatives or the
Legislative Service Bureau shall be allowed to elect to retain
membership in the Retirement Syst em upon payment of the accrued and
current member contributions and employ er contributions as provided
in subsection B of this section and Se ction 17-108.1 of this title.
Such contributions may be paid on behalf of the member by the
employing entity. Upo n payment of such contributions, service
credits shall continue to be accu mulated during such employmen t.
Accrued contributions shall be pai d to the Retirement System by
August 1, 1989. Current contributions shall be paid to the RBH No. 5119
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Retirement System by the tenth of the following month beginning with
the month of July 1989.
O. Notwithstanding any requirement s 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 t he
System to make installment payments for the redeposit of withdrawn
accounts or other payments due un der 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 shall include interest
consistent with the actuarial assumptions adopted by the Board of
Trustees for purposes of preparing the annual actuarial e valuation.
Further, the rules shall provide that all payments must be completed
prior to the effective retirement date of the member.
P. 1. A member of the Oklahoma Public Employees Reti rement
System who becomes a m ember of the Teachers ' Retirement System of
Oklahoma because the member has become employed by an entity or
institution within The Oklahoma State System of Higher Education,
State Board of Education, State Board of Career and T echnology
Education, Oklahoma Department of Career and Technology E ducation,
Oklahoma School of Science and Mathematics, Oklahoma Center for the
Advancement of Science and Technology , State Department of
Rehabilitation Services, Oklahoma State Regents for Higher
Education, Department of Corrections, State Department of Ed ucation,
Oklahoma Board of Private Vocational Schools, Board of Regents of RBH No. 5119
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Oklahoma Colleges, Oklahoma Student Loan Authority, or the Teachers'
Retirement System of Oklahoma, may elect to r eceive credit in the
Teachers' Retirement System of Oklahoma for th ose years of service
accumulated by the member in the Oklahoma Public Employees
Retirement System pursuant to this subsection. A member shall be
eligible to elect to receive credit for suc h years of service if:
a. the member is an active member of the Tea chers'
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, notwith standing the
years of service sought to be transferred under this
subsection.
Members electing to take advantage of the transfer authorized by
this subsection shall have all service credit with the Oklahoma
Public Employees Retirement 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 RBH No. 5119
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"receiving system" shall mean the Teachers ' Retirement System of
Oklahoma. Within thirty (30) day s 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 receiv ing system all
employer and employee contributions made on behalf of the m ember
which were made to the sending system plus an additional amou nt of
earnings based on the actuarial assumed rate of the sending system.
Upon receipt of these contributions by t he receiving system, the
receiving system shall give credit to the transfe rring 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 th e member's age and number of
years of credited service totaling eighty (80 ) in the sending
system, then the member shall retain such calculat ion in the
receiving system.
4. The Board of Trustees shall promulgate such rules as are
necessary to implement th e provisions of this subsection.
Q. A former member of the Teachers ' Retirement System of
Oklahoma who withdrew his or her contributions fro m the System prior
to January 1, 1983, and who had at least ten (10) years of service
in the System and purchased t hat service in the Oklahoma Public
Employees Retirement System, may elect to revoke that purchase from
the Oklahoma Public Employees Retireme nt System and to repay the
withdrawn contributions to the System in order to be eligible, once RBH No. 5119
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such member reaches the normal retirement age, to receive a
retirement benefit that is based u pon years of service and
compensation at the time such member termi nated employment. In
addition, such former member may elect to transfer service credit
accrued in the Oklahoma Pub lic Employees Retirement System to the
Teachers' Retirement System of Okla homa pursuant to subsection K of
this section. The election, pursu ant 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 4. 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 sub ject to
the following limitations:
1. A retired member is not e ligible to be employed by the
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
employment. For purposes of this se ction, 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 complete the terms
of the employment contract or agreement. An employee on paid leave RBH No. 5119
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is still considered to be employed for purposes of this section.
Employment under any conditions 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 retirement benefits
received during the period. Except as otherwise provided by
paragraphs 3 and 4 of this subsection, after the expiration of the
sixty (60) day period, a retired member may be employed by the
public schools of Oklahoma without any reduction in retirement
benefit;
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 re tirement
benefits, or the Earnings Limitation for emp loyees allowed by the
Social Security Administration, whichever is less . For retired
members under the age of sixty-two (62) years, the li mit 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 o lder the limit on allowed RBH No. 5119
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earnings from the public schools of Ok lahoma for the performance of
duties ordinarily perfo rmed 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. Fo r 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. S upplemental
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 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 th e public schools
shall be automatically adjusted effe ctive the first
day of January of each year to reflect the current RBH No. 5119
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Earnings Limitation for employe es as determined from
time to time by the Social Security Administration,
d. the earnings limit for the c alendar year 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 sha ll 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 amoun t,
f. for those members age seventy (70) years and ov er, the
earnings in excess of the maximum limit 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, any retired
member receiving benefits from the Retir ement System
who reached age seventy (70) years prior to July 1,
1991, shall not be restricted by the earnings limits
pursuant to this subp aragraph until January 1, 1994.
To qualify for the provisions o f this subparagraph,
the member must be employed less than one-half (1/2) RBH No. 5119
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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 retiremen t benefits regardless of
the amount of annualized earnin gs. For a period 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 that 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. Members returning under this sectio n
shall not be subject to any earning limitations following the end of RBH No. 5119
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the three-year periods described in this paragraph. Mem bers
returning under this section shall only be employed pursuant to a
temporary contract; and
4. A member shall be considered t o be employed by a school
district to perform the duties ordinarily performed by classified or
nonclassified personnel if the m ember is hired by the school
district in the member's individual capacity to perform the duties
or if the member performs the dut ies through employment with a
proprietorship, partnershi p, corporation, limited liability company
or partnership, or any other business structure that has agreed or
contracted to provide the services to the school district;
3. For the first year a retired mem ber is employed full-time by
a public school distri ct, the maximum compensation amount shall be
Forty-five Thousand Four Hundred Twenty-nine Dollars ($45,429.00).
For all years of service after the first twelve (12) months after a
member retires from the System, t here shall be no minimum salary
requirement and the provisions of Section 18-114.14 of this title
shall not be applicabl e to compensation paid by a public school
district to a retired member of the System for full -time employment.
The provisions of this paragraph 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 rec eipt of the retirement benefit amount ; and RBH No. 5119
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4. For the second a nd subsequent years that a retired member is
employed full-time by a public school district, the maximum
compensation amount shall be Fifty -five Thousand Dollars
($55,000.00) and the provisions of Section 18 -114.14 of this title
shall not be applicable to compe nsation paid by a public school
district for full-time employment to a retired member of the Syste m.
The provisions of this paragraph 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 exe rcise to
suspend or delay receipt of the retirement benefit amount .
B. A public school district tha t employs a retired member shall
be required to make contribut ions to the System for the retired
member in an amount as req uired in Section 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 s hall 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
subsection for payment of employer contribution amounts and the
provisions prohibiting accrual of additional service credit shall be
applicable regardless of whether the member is r eceiving his or her
retirement benefit or not and shall not depend upon any election the
member might exercise to suspend or delay rec eipt of the retirement
benefit amount. RBH No. 5119
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C. For purposes of this section, postretirement employment of
less than one thousand (1,000) hours per year with the Governor, the
State Senate, the House of Representatives or the Le gislative
Service Bureau shall not be considered as postretirement employment
with a public school of Oklahom a.
D. The Board of Trustees of the Teachers' Retirement System of
Oklahoma shall promulgate such rules as are n ecessary to implement
the provisions of this section.
E. A member who has entered 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 receiving his or her monthly retirement benefit.
SECTION 5. NEW LAW A new section of law to b e codified
in the Oklahoma Statutes as Section 6-101.6c of Title 70, unless
there is created a duplication in numbering, reads as fol lows:
A school district that employs a retired member of the Teachers '
Retirement System of Oklahoma shall not be subject t o any provisions
of law related to pretermination procedures and t he school district
shall not have any legal obligation to enter int o a postretirement
employment contract. All such postretirement employment contracts
shall be for a period of no longer th an twelve (12) months as agreed
to by the school district and the retired member. No school
district shall be obligated to rehire a retired member with whom the RBH No. 5119
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district has previously entered into a postretirement employ ment
contract.
SECTION 6. AMENDATORY 70 O.S. 2021, 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 shall receive in salary and/or fringe
benefits not less than the amounts specified in the following
schedule:
MINIMUM SALARY SCHEDULE
National
Years of Bachelor's Board Master's Doctor's
Experience Degree Certification Degree Degree
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 RBH No. 5119
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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
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 RBH No. 5119
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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
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 Sal ary Schedule, "fringe
benefits" shall mean all or part of retirement benefits, exc luding
the contributions made pursuant to subsection A of Section 17 -108.1
of this title and the flexible bene fit allowance pursuant to Section RBH No. 5119
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26-105 of this title from the flexible benefit allowance funds
disbursed by the State Board of Education and the State Board of
Career and Technology Education pursuant to Section 26 -104 of this
title.
2. If a school dist rict intends to provide retirement benefits
to a teacher such th at the teacher's salary would be less than the
amounts set forth in the minimum sa lary schedule specifi ed in
subsection A of this section, the district shall be required to
provide written notification to the teacher prior to his or her
employment or, if already employed by the district, no later than
thirty (30) days prior to the date the district elects t o provide
retirement benefits such that the teacher 's salary would be less
than the minimum salary schedule.
C. Any of the degrees referred to in this s ection shall be from
a college recognized by the State Board of Education. The Bo ard
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 di stricts. The Board shall accept
teaching experience from out -of-country schools that are accredited
or otherwise endorsed by the appropriate national or regional
accrediting or endorsement au thority. Out-of-country certification
documentation in a langua ge other than English shall be analyzed by
an educational credential evaluation se rvice in accordance w ith
industry standards and guidelines and approved by the State RBH No. 5119
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Department of Education. The person seeking to have credit granted
for out-of-country teaching experience shall be responsible for all
costs of the analysis by a credenti al evaluation service . The Board
shall accept teaching experience from primary and secondary schools
that are operated by the United States Department of Defense or are
affiliated with the United States Department of State.
D. For the purpose of state sa lary increments and r etirement,
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 certified teacher or its
equivalent. Nothing in this section shall prohibit boards of
education from crediting more years of experience on district salary
schedules than those allowed for state purposes.
E. The State Board of Educatio n shall recognize, for purposes
of certification and salary increments, all the ye ars of experience
of a:
1. Certified teacher who teaches in the educational program of
the Department of Corr ections, beginning with fiscal year 1981;
2. Vocational rehabil itation counselor under the Department of
Human Services if the counselor was empl oyed as a certified t eacher
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 State Board of Education to the Oklahoma
Public Welfare Commissio n on July 1, 1968; RBH No. 5119
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3. Vocational rehabilitation counselor which were completed
while employed by the Departme nt of Human Services if such counselor
was certified as a teache r or was eligible for certification as a
teacher in Oklahoma;
4. Certified teache r which were complete d while employed by the
Child Study Center located at University Hospital, if the teacher
was certified as a teacher in Oklahoma; and
5. Certified school psychologist or psychometrist which were
completed while employed as a doctoral intern, psychological
assistant, or psychologist with any agency of the State of Oklahoma
if the experience pr imarily involved work with persons of school - or
preschool-age and if the person was, at the time the experience was
acquired, certified as, or el igible for certificat ion as, a school
psychologist or psychometrist.
F. The provisions of this section shall not apply to teachers
who have retired from the Te achers' Retirement System of Oklahoma
and who have entered into postretirement employment with a public
school in Oklahoma and are still receiving a monthly retiremen t
benefit. The provisions of this section shall not be applicable
even if a member has ma de an election to suspend or delay receipt of
the retirement benefit am ount.
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 receiving a salary above the step level RBH No. 5119
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indicated by the State Minimum Salary Schedule for 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 emp loyed by the
same district, unless the hours or the duties of the c ertified
personnel are reduced proportionately.
SECTION 7. This act shall become effective November 1, 2023.
59-1-5119 CMA 01/18/23
THOMAS E. CUMMINS CONSULTING ACTUARY, INC.
2512 E. 71
st
Street , Suite D ∙ Tulsa, Oklahoma 74136
(918) 492-9658 ∙ (918) 492- 9659
January18, 2023
Representative Dean Davis
Room 500
Re: RBH No. 5119
RBH No. 5119
Decreases the OTRS retirement age the earlier of age 60 or
completion of 35 years of service.
Lowers the service requirement to 5 years from 7 years
If retiring at normal retirement age or due disability
The benefit multiplier becomes if years of service is
Less than or equal 13: 1.7% of final average compensat ion
More than 13 but < 25 years: 2.0% of final average
compensation
More than 25 but < 33 years: 2.1% of final average
compensation
More than 33 years: 2.2% of final average compensation
Retired participant may return to employment with a participating
employer after 60 days continue to receive retirement benefits
provided the partici pant does not earn more than $ 45,429 for the
first year and $55,000 for the second year and thereafter.
RBH No. 5119 is a fiscal bill as defined by OPLAAA .
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