RBH No. 6270
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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
HOUSE BILL 2528 By: Lepak
AS INTRODUCED
An Act relating to retirement; amending 70 O.S. 2021,
Sections 17-101, as amended by Section 2 , Chapter
121, O.S.L. 2022, 17-103, 17-105, 17-105.1, 17-106.3,
17-107, 17-108, 17-116.2, and 17-116.10 (70 O.S.
Supp. 2022, Section 17 -101), which relate to the
Teachers' Retirement System of Oklahoma; updating
references; deleting terms; modifying terms;
modifying how members shall make proper application
for retirement; providing membershi p details;
providing procedure at joint annuitant's death;
modifying retirement options; releasing System of
liability under certain circum stances; modifying how
certain expenses are to be paid; specifying when a
member must be physically present to complete terms
of employment contract; modifying earnings limits;
repealing 70 O.S. 2021, Sections 17-104 and 17-114.2,
which relate to the Teacher s' Retirement System of
Oklahoma; and providing an effective date .
BE IT ENACTED BY THE PEOPLE OF TH E STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 70 O.S. 2021, Section 17 -101, as
amended by Section 2, Chapter 121, O.S.L. 2022 (70 O.S. Supp. 2022,
Section 17-101), is amended to read as follows :
Section 17-101. The following words a nd phrases as used in
Section 17-101 et seq. of this title, unless a different meaning is
clearly required by the context, shall have the following meanings: RBH No. 6270
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(1) "Retirement system" shall mean the Teachers ' Retirement
System of Oklahoma, as defined in Sec tion 17-102 of this title.
(2) "Public school" shall mean a school district, a state
college or university, the State Board of Educat ion, the State Board
of Career and Technology Education, and any other state educational
entity conducted within the state supported wholly or partly by
public funds and ope rating under the authority and supervision 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 counseling , and outreach
programs which is aligne d with a school district and which receives
grant funds from governmental sources.
(3) "Classified personnel" shall mean any teach er, principal,
superintendent, supe rvisor, administrator, librarian, certified or
registered nurse, college professor, or col lege president whose
salary is paid wholly or in part from public funds. An emplo yee of
any state department, board, board of rege nts, or board of trustees,
who is in a supervisory or an administrative position, the functio n
of which is primarily devoted to public education, shall be
considered classified personnel under the meaning of Section 17-101
et seq. of this title, at the discretion of the Board of Trustees of
the Teachers' Retirement System. The term "teacher" shall also
include instructors and counselors employed by the Departmen t of RBH No. 6270
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Corrections and holding valid teaching cer tificates issued by the
State Department of Educa tion. Provided, that a person employed by
the Department of Corrections as an instr uctor or counselor shall
have been actively engaged in the teaching professi on for a period
of not less than three (3) year s prior to employment to be eligible
to participate in the Teachers' Retirement System of Oklahoma. The
Department of Corrections shall contribute the empl oyer's share to
the Teachers' Retirement System of Oklahoma.
(4) "Nonclassified optional personnel" shall include persons
hired as adjunct teachers pursuant to subsection G of Section 6-
122.3 of this title, cooks, janitors, maintenance personne l not in a
supervisory capacity, bus drivers, noncertified or nonregistered
nurses, noncertified librarians, an d clerical employees of the
public schools, state colleges, universities , or any state
department, board, board of regents, or board of trustees, t he
functions of which are primarily devoted to public education and
whose salaries are paid wholly or in part from public funds.
(5) "Employer" shall mean the state and any of its designated
agents or agencies with respon sibility and authority for public
education, such as boards of education of elementary and independent
school districts, boards of regents, boa rds of control, 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 board
of directors of a tuition free, nonprofit alternative sc hool of RBH No. 6270
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choice that provides educatio n, therapeutic counseling, and outreach
programs which is aligned with a school district and which rec eives
grant funds from governmenta l sources.
(6) "Member" shall mean any teacher or other employee included
in the membership of the system as provided i n Section 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 publ ic school system, or any
other service devoted primarily to public education in the state.
(9) "Prior service" shall mean service rende red prior to July
1, 1943.
(10) "Membership service" shall mean service as a membe r of the
classified or nonclassified personnel as defined in paragraphs (3)
and (4) of this section.
(11) (9) "Creditable service" shall mean membership service
plus any prior other service authorized under this title.
(12) (10) "Annuitant" shall mean any person in receipt of a
retirement allowance as provided in this title an annuity as defined
in paragraph (13) of this section .
(13) (11) "Accumulated contributions" shall mean the sum of all
amounts deducted from the compensation of a member and credited to RBH No. 6270
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his the member's individual account in the Teachers' Savings Fund,
together with interest as of June 30, 1968.
(14) "Earnable compensation" shall mean the full rate of the
compensation that would be payabl e to a member if he worked the full
normal working time.
(15) (12) "Average salary":
(a) for those members who joined the System prior to July
1, 1992, shall mean the average of the salaries for
the three (3) years on which the highest contributions
to the Teachers' Retirement System was were paid not
to exceed the maximum contribution level specified in
Section 17-116.2 of this title or the maximum
compensation level specified in s ubsection (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
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 an nual compensation of the
member for any pre-cap removal year of service so RBH No. 6270
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included subject to the maximum average salar y amount,
and
(b) for those members who join 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 wa s
paid. Only salary on which required contributions
have been made may be used in computing average
salary.
(16) (13) "Annuity" shall mean payments for life derived from
the "accumulated contributions" of a member. All annuities shall be
payable in equal monthly installments a lifetime benefit payable in
fixed monthly installments .
(17) "Pension" shall mean payments for life derived from money
provided by the employer. All pensions shall be payable in equal
monthly installments.
(18) (14) "Monthly retirement allowance" is one-twelfth (1/12)
of the annual retiremen t allowance which shall be payable monthly.
(19) (15) "Retirement Benefit Fund" shall mean the fund from
which all retirement benefits shall be paid based on such mortality
tables as shall be adopted by the Board of Trustees.
(20) (16) "Actuary" shall mean a person or firm especially
skilled through training an d experience in financial calculation
respecting the expectancy and duration of life. RBH No. 6270
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(21) (17) "Actuarial equivalent " shall mean a benefit o f equal
value when computed upon the basis of such mortality and other
tables as shall be adopted by the Board of Trustees.
(22) (18) The masculine pronoun, whenever used, shall include
the feminine.
(23) (19) "Actuarially determined cost " shall mean the single
sum which is actuarially equivalent in value to a specified pensio n
amount as determined on the basis of m ortality and interest
assumptions adopted by the Board of Trustees.
(24) (20) "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 m ember reaches a
normal retirement date pursuant to subparagraph (c) or
subparagraph (d) of this paragraph,
(b) a member reaches the age of sixty-five (65) with
respect to a member whose first creditable service
occurs on or after November 1, 2011, or wi th respect
to a member whose first creditable service occurs on
or after November 1, 2011, reaches a normal retirement
date pursuant to subparagraph (d) of this paragraph
having attained a minimum age of sixty (60) years, RBH No. 6270
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(c) the age at which the sum of a member's age and number
of years of creditable service total eighty (80), with
respect to a member whose first creditable servi ce
occurred prior to July 1, 1992, and who does not reach
a normal retirement age pursuant to subparagr aph (a)
of this paragraph, or
(d) the age at which the sum 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 J uly 1, 1992, but prior to
November 1, 2011, if the member does not reach a
normal retirement age pursuant to subparagraph (a) of
this paragraph.
(25) (21) "Regular annual compensation " means salary plus
fringe benefits, excluding the flexible benefit allowance pursuant
to Section 26-105 of this title and for purposes purs uant 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 performed 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 to a good faith, RBH No. 6270
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voluntary written salary reduction agreement in order
to finance payments to a deferred compensation or tax-
sheltered annuity program or to finance benefit
options under a cafeteria plan qualifying under the
United States Internal Revenue Code, 26 U.S.C.,
Section 101 et seq.,
(c) group health and disability insurance, group term l ife
insurance, annuities , and pension plans, provided on a
periodic basis to all qualified employees of the
employer, which qualify as fringe benefits un der the
United States Internal Revenue Code, and
(d) excluded from regular annual compensation are:
1. expense reimbursement payme nts,
2. office, vehicle, housing, or other maintenance
allowances,
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 nonmoneta ry compensation,
7. payment received as an independent contractor or
consultant, pursuant to a lawful contract which RBH No. 6270
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complies with the re quirements 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 University of Oklahoma Health
Sciences Center (OUHSC) Pro fessional Practice
Plan or Oklahoma State University Center for
Health Sciences (OSU-CHS) Professional Practice
Plan, and
10. any other compensation not described in
subparagraphs (a) through (c) of this subsection.
(26) "Teacher" means classified personn el and nonclassified
optional personnel.
(27) (22) "Active classroom teacher" means a person employed by
a school district to teach student s specifically identified classes
for specifically identified subjects during the course of a
semester, and who holds a v alid certificate or license issued by and
in accordance with the rules and regulations of the State Board of
Education.
(28) (23) "Maximum compensation level" shall, except as
otherwise authorized pursuant to the provisions of Section 17-116.2C
of this title, mean: RBH No. 6270
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(a) Twenty-five Thousand Dollars ($25,000.00) for
creditable service authorized and performed prior to
July 1, 1995, for members not electing a higher
maximum compensation level,
(b) Forty Thousand Dollars ($40,00 0.00) for creditable
service authorized and performed prior to July 1,
1995, for members electing a maximum comp ensation
level in excess of Twenty -five Thousand Dollars
($25,000.00),
(c) Twenty-seven Thousand Five Hundred Dollars
($27,500.00) for members w ho, as of June 30, 1995, had
elected to have a maximum compensation level not in
excess of Twenty-five Thousand Dollars ($25,000.00),
and who were employed by an entity or institution
within The Oklahoma State System of Higher Education
for creditable service 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
compensation level for this period a s authorized by
Section 17-116.2A of this title,
(d) Thirty-two Thousand Five Hundre d Dollars ($32,500.00)
for members employed by a comprehensive university if
the member meets the requirements i mposed by Section
17-116.2A of this title and the member ele cts to RBH No. 6270
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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 members
who, as of June 30, 1995, had elected t o have a
maximum compensation level in excess of Twenty-five
Thousand Dollars ($25,000.00), and who were employe d
by an entity or institution within The Oklahoma State
System of Higher Education for creditable service
authorized and performed on or after J uly 1, 1995, but
not later than June 30, 1996, if such member does not
elect a higher maximum compensation level for this
period as authorized by Sec tion 17-116.2A of this
title,
(f) Forty-nine Thousand Dollars ($49,000.00) for members
employed by a comprehensive university if the me mber
meets the requirements imposed by Section 17-116.2A of
this title and the membe r elects to impose a higher
maximum compensation level for service performed on or
after July 1, 1995, but not l ater than June 30, 1996,
(g) the following amounts for credi table service
authorized and performed by members employed by a
comprehensive univer sity, based upon the election of
the member in effect as of June 30, 1995: RBH No. 6270
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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 ser vice 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 authorize d and
performed on or after July 1, 1997, but not
later than June 30, 1998,
(iii) Forty-two Thousand Five Hundred Dollars
($42,500.00) for service authorized and
performed on or after July 1, 1998 , but not
later than June 30, 2000,
(iv) Forty-seven Thousand Five Hundred 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, RBH No. 6270
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(vi) Fifty-seven Thousand Five Hundred Dollars
($57,500.00) for service authorized and
performed on or after July 1, 2002, but not
later than June 30, 2003,
(vii) Sixty-two Thousand Five Hundred Dollars
($62,500.00) for servi ce authorized and
performed on or after July 1, 2003, but not
later than June 30, 20 04,
(viii) Sixty-seven Thousand Five Hundred Dollars
($67,500.00) for service 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
performed on or after July 1, 2005, but not
later than June 30, 2006,
(x) Seventy-seven Thousand Five Hundred Dollars
($77,500.00) for service authorized and
performed on or afte r July 1, 2006, but not
later than June 30, 2007, and
(xi) the full amount of regula r annual
compensation for service aut horized and
performed on or after July 1, 2007, and RBH No. 6270
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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 afte r
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 June 30,
2000,
(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 ($69,000.00) for
service authorized and performed on or after
July 1, 2001, but not later than June 30,
2002, RBH No. 6270
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(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 authorized and perf ormed on or
after July 1, 2003, but not later than June
30, 2004,
(viii) Eighty-four Thousand Dollars ($84,000.00)
for service authorized an d performed on or
after July 1, 2004, but not later than June
30, 2005,
(ix) Eighty-nine Thousand Dollars ($89,000.0 0)
for service authorized and performed on or
after July 1, 2005, but not later than June
30, 2006,
(x) Ninety-four Thousand Dollars ($94,00 0.00)
for service authorized and perf ormed on or
after July 1, 2006, but not later than June
30, 2007, and
(xi) the full amount of regular annual
compensation for service a uthorized and
performed on or after July 1, 2007, and
(h) the full amount of regular annual compensation of: RBH No. 6270
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1. a member of the retirement system not employed by
an entity or institution within The Ok lahoma
State System of Higher Education for all
creditable service authorized and performed on or
after July 1, 1995,
2. a member of the retirement system first employed
on or after July 1, 1995, by an entity or
institution within The Oklahoma State Syste m 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 employe d by an
entity or institution within The Oklahoma State
System of Higher Educ ation, other than a
comprehensive university, if the membe r elects to
impose a higher maximum compensation level for
service performed on or a fter July 1, 1995, but
not later than June 30, 1996, 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 Sy stem
of Higher Education including a comprehensive RBH No. 6270
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university, for creditable service authorized and
performed on or after July 1, 1996,
5. a member of the retirement syste m who, as of July
1, 1996, is subject to a maximum compensation
level pursuant to pa ragraph (g) of this
subsection if the member terminates service with
a comprehensive university and is subsequen tly
reemployed by a comprehensive university,
6. a member of the retirement system 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 17-116.2C of
this title with respect to pre-cap removal
service included in the retirement benefit
computation of the member at the av erage salary
of the member subject to the maximum average
salary amount.
(29) (24) "Comprehensive university" shall mean:
(a) the University of Oklahoma and all of its constituent
agencies including the University of Oklahoma Health
Sciences Center, the U niversity of Oklahoma Law
Center, and the Geological Survey, and RBH No. 6270
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(b) Oklahoma State University and all of its constituent
agencies including the Oklahoma State University
Agricultural Experiment Station, the Oklahoma State
University Agricultural Extension Division, the
Oklahoma State University College of Veterinary
Medicine, the Oklahoma State University Center for
Health Sciences, the T echnical Branch at Oklahoma
City, the Oklahoma State University Institute of
Technology-Okmulgee, and Oklahoma State Uni versity-
Tulsa.
(30) "Retirement contract" means the document prepared b y the
Teachers' Retirement System upon member request, which inc orporates
member's selected retirement option, and which must be executed and
submitted to the Teachers' Retirement System no less than thirty
(30) days prior to the projected retirement date.
SECTION 2. AMENDATORY 70 O.S. 2021, Section 17 -103, is
amended to read as follows:
Section 17-103. Except as provided in the Alternate Retirement
Plan for Comprehensive Universities Act, the membership of the
retirement system shall consist of the following:
A. All classified personnel shall become members of the
retirement system as a condition of their employment;.
B. For the period from August 2, 1969, to the effective date of
this act June 30, 2021, all full-time nonclassified optional RBH No. 6270
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personnel regularly employed for more than one (1) year may join the
Teachers' Retirement System of Oklahoma subject to the rules and
regulations adopted pursuant to the Teachers' Retirement System. On
or after the effective date of this act July 1, 2021, all
nonclassified optional personnel r egularly employed for twenty (20)
hours or more per week may join the System upon hiring or
eligibility, subject to the provisions of subsection C of this
section and the rules and regulations adopted by the System pursuant
to this act.
C. 1. A nonclassified optional employee shall have thirty (30)
days from the initial date of hire or eligibility to make a one-time
irrevocable written election to opt out of participation in the
System, in a manner required by the Board of Trustees . If an
eligible employee fails to make an election within the thirty-day
period, the eligible employee shall be deemed to participate in the
System.
2. If an eligible employee elects to opt out of particip ation
in the System, the employee shall not make any required employee
contributions to the System and his or her the employee's employer
shall not make any required employer contributions to the System .
3. If an eligible nonclassified optional employee elects to
participate does not timely opt out of participation in the System,
the employee shall make employee contributions to the System
pursuant to Section 17-116.2 of this title and the employer shall RBH No. 6270
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make employer contributions to the System pursuant to Secti on 17-
108.1 of this title. Nothing in this paragraph shall be construed
to prohibit the employer from making the contribution of the
employee to the System on behalf of the employee .
4. A nonclassified optional employee who op ts out of
participation in the System shall be ineligible for future
participation in the System; provided, however, that if the employee
is hired for a classified position, he or she shall become a member
of the System pursua nt to subsection A of this section but shall not
be eligible for prior service credit for service performed while
employed in a nonclassified position during which the employee opted
out of participation in the System.
5. Any nonclassified optional employee employed on the
effective date of this act shall make an irr evocable written
election to participate in or opt out of the System pursuant to
paragraph 1 of this subsection. If the employee fails to make an
election within thirty (30) days from the effe ctive date of this
act, the employee shall be deemed to partici pate in the System,
subject to the provisions of paragraph 3 of this subsection.
D. The Board of Trustees may, in its discretion, deny the right
to become members to any class of members whose compensation is only
partly paid by the state, or who is serv ing on a temporary or other
than per annum basis, and it also may, in its discretion, make
optional with the individual entrance into the retirement system for RBH No. 6270
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members in any such class their individual entrance into the
retirement system optional.
E. Should any non-vested member, with less than ten (10) years
of teaching service in Oklahoma, in any period of six (6)
consecutive years after becoming a member be absent from service
more than five (5) years, withdraw his or her contributions, retire
or die, he or she shall thereupon cease to be a member. The
provisions of this pa ragraph shall not apply to any member of the
Teachers' Retirement System who has been a member of such classes of
military services as may be approved by the Board of Trustees, until
a period of one and one -half (1 1/2) years from date of termination
of such service shall have elapsed.
F. Effective November 1, 2019, a retired member of the
Teachers' Retirement System who becomes employed by the State
Department of Education for the first time on or after November 1,
2019, shall have the option to remain a member of the Teachers'
Retirement System subject to any applicable limitations placed on
retired members returning to work or may choose to participate in
the Oklahoma Public Employees Retirement System as an active member.
SECTION 3. AMENDATORY 70 O.S. 2021, Section 17-105, is
amended to read as follows:
Section 17-105. (1) (a) Any member who has attained age
fifty-five (55) or who has completed thirty (30) years of creditable
service, as defined in Section 17 -101 of this title, or for any RBH No. 6270
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person who initially became a member prior to July 1, 1 992,
regardless of whether there were breaks in ser vice after July 1,
1992, whose age and number of years of creditable service total
eighty (80) may be retired upon proper application for retirement on
forms as established by the System and executing a retir ement
contract. Such a retirement date will als o 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 m ember after June 30,
1992, but prior to November 1, 2011, whose age and number of years
of creditable service total ninety (90) may be retired upon proper
application for retirement and executing a retirement contract as
established by the System . Any person who becomes a member on o r
after November 1, 2011, who attains the age of sixty -five (65) years
or who reaches a normal 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 u pon proper
application for retirement and executing a retirement contract as
established by the System. The application shall be filed on the
form provided by the Board of Trustees for thi s purpose with the
System, not less than sixt y (60) days before the date of retirement ,
provided that the Execut ive Director may waive the sixty -day
deadline for good cause shown as defined by the Board. RBH No. 6270
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1. The employer shall provide the System with the
following information for a retiring member, no later
than the fifteenth day of the mont h 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 de adline, or
errors in submitted informatio n that result in a
disqualification of retirement eligibility shall be
the responsibility of the employer. In cases where
the error results in disqualification of retire ment
eligibility, it is the employer 's responsibility to
reemploy the member, or retai n 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 Teachers '
Retirement System after July 1, 1967, through Oc tober 31, 2017,
shall be employed by the public schools, state colleges or
universities of Oklahoma for a minimum of five (5) years and be a
contributing member of the Teachers ' Retirement System of Oklahoma
for a minimum of five (5) years to qualify for m onthly retirement
benefits from the Teachers' Retirement System of Oklahoma.
An individual who becomes a member of the Teachers ' Retirement
System on or after November 1, 2017, shall be employed by the public RBH No. 6270
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schools, state colleges or universi ties 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.
(c) Any member Individuals becoming members after July 1, 1967,
to October 31, 2017, with five (5) or more years of Oklahoma
teaching service and whose accumulated contributions during such
period have not been withdrawn shall be given an indefinite
extension of membersh ip beginning with the sixth year following the
member's last contributing membership .
Individuals becoming members on or after November 1, 2017, with
seven (7) or more years of Oklahoma teaching service and whos e
accumulated contributions during such perio d have not been withdrawn
shall be given an indefinite extension of membership beginning with
the sixth eighth year following his or her the member's last
contributing membership and shall become eligible to appl y for
retirement and be retired upon attaini ng age fifty-five (55).
(2) An unclassified opt ional 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 retir ement
benefits calculated on an average sala ry of Five Thousand Three
Hundred Fifty Dollars ($5,350.00) or, if a larger monthly allowance RBH No. 6270
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would result, an amount arrived at pursuant to application of the
formula prescribed herein.
(3) No member shall rece ive a lesser retirement benefit than he
or she the member would have received under the law in effect at the
time he or she retired. Any individual under the Teachers '
Retirement System, who through error in stating the title of the
position which he or she the member held, may, at the discretion o f
the Board of Trustees, be changed from the non classified optional
group to the classified group for the purpose of calculating
retirement benefits.
Any individual regardless of residence, who has a minimum of t en
(10) years of teaching in Oklahoma school s prior to July 1, 1943, or
who taught in Oklaho ma 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 thi rty (30) years of
teaching in Oklahoma schoo ls 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 benefits
from the Teachers' Retirement System of Oklahoma plus any g eneral
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 evidence to the
Teachers' Retirement System that the service was actuall y rendered. RBH No. 6270
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The surviving spouse of any person who made application for the
benefit provided for by this paragraph during his or her lifetime
but did not receive t he benefit may submit an application to the
System for payment of the benefit for those mont hs 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
the Board of Trustees, the benefit shall be paid to the surv iving
spouse in one lump sum.
(4) The value of each year of prior service is the total
monthly retirement benefit divided by the number of years of
creditable service.
(5) Upon application of a member who is ac tively engaged in
teaching in Oklahoma or his or her upon application of the member 's
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 disabilit y retirement allowance, provided that
it is found by the Medical Board after medical examination of such
member by a duly qualified physician that such member is mentally or
physically incapacitated for further performance of duty, that such
incapacity is likely to be permanent, and that such member sho uld be
retired. The System shall rely on and gi ve full consideration to
the conclusions and recommendations in the certified written report
of the Medical Board of the Teachers ' Retirement System regarding
the disability application of such member. If th e Medical Board RBH No. 6270
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does not find that a member appl ying 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 Trust ees. If a member is
determined to be eligible f or disability benefits pursuant to the
Social Security System, then such determination shall entitle the
member to the authorized disability retirement allowanc e provided by
law. For members who are not elig ible for disability 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 pe rson for such disability 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 p erform
the necessary duties to continue in his or her the member's current
position shall receive a minimum monthly retirement payment for life
or until such time as the member may be found to be recovered to the
point where he or she the member may return to teaching. Any member
retired before July 1, 1992, shall be eligible to receive the
monthly retirement allowance herein provided, but such payment shall
not begin until the first payment due him or her after July 1, 1992,
and shall not be retroactive. The Board of Trustees is empowered to RBH No. 6270
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make such rules and regulations as it considers proper to preserve
equity in retirements under this provision, which shall include a
provision to protect the rights of the m ember's spouse.
(b) A member who has qualif ied for retirement benefits under
disability retirement shall have the total monthly payment deducted
from his or her accumulated contributions plus interest earned and
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 to
the beneficiary or to the estate of the member. Provided, if the
deceased disabled member had thirty (30) years or more of creditable
service and the death occurred afte r June 30, 1981, and death
occurred prior to the disabled member receiving twelve monthly
retirement payments, a surviving spouse may elect to receive the
retirement benefit to which the deceased member would have been
entitled at the time of death under t he Option 2 Plan of Retirement
provided for in subsection (8) of this section in lieu 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 age of sixty (60) years to
undergo a medical examination, such examination 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 annuitant who has not yet attai ned the RBH No. 6270
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age of sixty (60) years refuse to submit to at least one medical
examination in any such year by a physician or physicians designated
by the System his or her the member's allowance may be discontinued
until he or she the member submits to such examination.
(d) Should the Medical Board report a nd certify to the Board of
Trustees that such disabled annuitant is engaged in or is able to
engage in a gainful occupation paying more than the difference
between his or her the member's retirement allowance and the average
final compensation, and should the Board of Trustees concur in such
report then the amount of his or her the member's pension shall be
reduced to an amount which, together with his or her the member's
retirement allowance and that amount e arnable by him or her the
member, shall equal the amount of his or her the member's average
final compensation. Should his or her the member's earning capacity
be later increased, the amount of his or her the member's pension
may be further modified, prov ided the new pension shall 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 the member's annuity, equals the amount of his or her the
member's average final compensation.
(e) Should a disabled annuita nt be restored to active service,
his or her the member's disability retirement allowance shall cease
and he or she the member shall again become a an active member of
the Teachers' Retirement System and shal l make regular contributions RBH No. 6270
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as required under this articl e. The unused portion of his or her
the member's accumulated contributions shall be reestablished to his
or her the member's credit in the Teachers ' Savings Fund. Any such
prior service certificat es on the basis of which his or her the
member's service was computed at the time of his or her the member's
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 applic ation for withdrawal duly filed with
the System, not earli er than four (4) months after the date of
termination of such service as a teacher member, the contribution
standing to the credit of his or her the member's individual account
in the Teachers' Savings Fund shall be paid to him or her the member
or, in the event of his or her the member's death before retirement,
shall be paid to such person or persons as he or she the member
shall have nominated by written designation, duly executed and filed
with the System; provided, however, if there be no designated
beneficiary surviving upon such death, such contributions shall be
paid to his or her the member's administrators, executors, or
assigns, together with inte rest 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, w ho
must be the spouse, under the Maximum or Option 1 Plan of Retirement RBH No. 6270
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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 me mber's
death based on the sex of the spouse and the age th e spouse has
attained at the last birthday prior to the member 's death. Provided
further, if there be no designated beneficiary surviving upon such
death, and the contributions standing to the cred it of such member
do not exceed Two Hundred Dollars ($200. 00), no part of such
contributions shall be subject to the payment of any expense of the
last illness or funeral of the deceased member or any expense of
administration of the estate of such decease d and the System, 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 distributi on of the
state, may authorize the payment o f 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 the member subject to the follow ing schedule:
(a) If termination occurs within sixteen (16) years from the
date membership began, fifty percent (50%) of such interest
accumulations shall be paid. RBH No. 6270
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(b) With at least sixt een (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 accumulations 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.
(8) (a) In lieu of his or her the maximum retirement allowance
benefit payable throughout life for such an amount as determined
under this section, the member may select a retirement allowance
benefit for a reduced amount payable under any of the following
options the present value of which is the actuarial e quivalent
thereof.
(b) A member may select the option under which 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 shall be effective in case an
annuitant dies before the first payment due under such option has
been received. RBH No. 6270
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(c) The first payment of any be nefit 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 mem ber, 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 maximum benefit shall be determined at the
date of death of the designated joint annuitant. This increase
shall become 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 the
Teachers' Retirement System of Oklahoma of the death of the
designated joint annuitant in writing by providing a copy of the
joint annuitant's death certificate. In the absence of the written
notice death certificate 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. A member takes a slightly reduced retirement benefit
for life. If he or she the member dies before he or she has received
receiving in annuity payments the present value of his or her the RBH No. 6270
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member's annuity 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 the member's beneficiary by
written designation duly acknowledged and filed with the System at
the time of his or her retirement prior to the member's death; or
Option 2. A member takes a reduced retirement allowance benefit
for life. Upon the death of the member the payments shall continue
to the member's designated joint annuitant for the life 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
benefit for life. Upon the death of the member one -half (1/2) of
the retirement allowance benefit paid the member shall be conti nued
throughout the life of the designated member's joint annuitant. A
written designation of a joi nt 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) (d) of this subsection,
cannot be changed after the effective date of the member 's
retirement; or
Option 4. Some Provided, the System may establish other
retirement options if certified by the actuary to be of equivalent RBH No. 6270
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actuarial value to the member 's retirement allowance. Other
retirement options shall be presented to the Board of Trustees for
approval at its discre tion. These other benefit or benefits shall
be paid either to the member or , if applicable, to such joint
annuitant as he or she the member shall nominate, provided such
other benefit or benefits, together with the reduced retirement
allowance, shall be ce rtified by the actuary to be of equivalent
actuarial value to his or her retirement allowance and shall be
approved by the System .
(d) (c) Provided that Option 2 and Option 3 shall not be
available if the member's expected benefit is less than fifty
percent (50%) of the lump -sum actuarial equivalent and the
designated joint annuitant is not the spouse of the member.
(e) (d) A member who chose the maxi mum 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 determining good health. Such examination must be
approved by the Medical Board. The member shall be required to RBH No. 6270
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provide proof of age for the new joint annuitant. The System shall
adjust the monthly benef it 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) (e) 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 in 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 the member makes the election
provided for in this paragraph.
(g) (f) 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 a nd
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 this 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
for calculating any benefit payable to the trust under this RBH No. 6270
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subsection. The beneficiary of such a trust shall be treated as the
beneficiary or joint annuitant under this subsection except tha t
payments of any benefits due under this subsection shall be payable
to the lawfully appointed trustee of the trust. The obligation of
the System to pay the beneficiary or joint annuitant under this
subsection shall be satisfied by payment to the trustee whom the
System, in good faith, believes to be the lawfully appointed
trustee. Any conflict between the statutes creating and governing
the Teachers' Retirement System in S ection 17-101 et seq. of this
title and the provisions of any Trust Act referred t o above shall be
resolved in favor of the statutes governing the System. If an
eligible beneficiary or jo int 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, t he System will
acknowledge the trust as the beneficiary upon the submission of
adequate documentation of t he existence of the trust. All other
provisions of this subsection shall apply to these subsequently
created trusts.
(h) (g) The Board of Trustees o f the System may recognize other
trusts set up for the benefit of individuals 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. 6270
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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 employ of such public school for not less
than seven (7) school years preceding the date of 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 monthly 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 o f service rendered by any such person to
such public school by which such person 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 accordance with the provisions of Sec tion 17-101 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 s uch board shall be final. RBH No. 6270
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(10) In addition to the teachers ' retirement herein provided,
teachers may voluntarily avail themselves of the Federal Soci al
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 the
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 death under the Option 2 plan of retirement
in lieu of the death benefit provided for in this subsection.
Provided further, the option provided in this subsection is only
available when the member has designated one individual as the
designated beneficiary. The beneficiary or beneficiar ies of death
benefits in the amount not to exceed Eighteen Thousand Doll ars
($18,000.00), but exclusive of any retirement benefit received by an
electing beneficiary based upon creditable service performed by the
deceased member, which are provided pursuan t to this subsection may
elect to disclaim such death benefits in which case such benefits
will be transferred to a person licensed as a funeral direc tor or to
a lawfully recognized business entity licensed as required by law to
provide funeral services fo r the deceased member. The qualified RBH No. 6270
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disclaimer must be in writing and will be an irrevocable and an
unqualified refusal to accept all or a portion o f the death benefit.
It must be received by the transferor no more than nine (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. After
paying death benefits to any beneficiary or the member 's estate
pursuant to this subsection, the System is discharged and released
from any and all liability, obligation and costs. The System is not
required to inquire into the truth of any matter specified in this
subsection or into the payment of any estate tax liability.
(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 ben eficiary
or if the designated beneficiary predeceases 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 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 qualif ied disclaimer must be
in writing and will be an irrevocable and an unqualified refusal to RBH No. 6270
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accept all or a portion of the death benefit. It must be received
by the transferor no more than nine (9) months after the later of
the day the transfer creating th e interest in the disclaiming person
is 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. The benefit
payable pursuant to this s ubsection shall be deemed, for purposes of
federal income taxation, as life insurance proceeds and not as a
death benefit if the Internal Revenue Se rvice approves this
provision pursuant to a private letter ruling request which shall be
submitted by the Board of Trustees of the System for that purpose.
After paying death benefits to any beneficiary or the member 's
estate pursuant to this subsection, th e System is discharged and
released from any and all liability, obligation and costs. The
System is not required to inquire into the truth of any matter
specified in this subsection or into the payment of any estate tax
liability.
(13) Upon the death of a member who dies leaving no living
beneficiary or having designated his or her estate as beneficiary,
the System may pay any applicable death 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 Title 58 of the Oklahoma Statutes. RBH No. 6270
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(a) Before any applicable probate procedure may be waived, the
System must be in rec eipt of the 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 does not exist;
2. An affidavit or affidavits of heirship which must
state:
a. the names and signatures of all claiming heirs to
the deceased member's estate including the
claiming heirs' names, relationship to the
deceased, current addresses, tax I.D. numbers if
known and current tele phone numbers,
b. a statement or statements by the claiming heirs
that no application or petition for the
appointment of a personal representative is
pending or has been granted in any jurisdiction,
c. a description of the personal property claimed,
(i.e., death benefit or unpaid contributions or
both) together with a statement th at such
personal property is sub ject to probate,
d. a statement by each individual claiming heir
identifying the amount of personal property that
the heir is claiming from the Syst em, and that RBH No. 6270
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the heir has been notified of, is aware of and
consents to the identified claims of all the
other claiming heirs of the deceased member
pending with the System;
3. A written agreement or agreements signed by all
claiming heirs of the deceased member which provides
that the claiming heirs release, discharge and hold
harmless the System from any and a ll liability,
obligations and costs which it may incur as a result
of making a payment to any of the deceased member 's
heirs;
4. A corroborating affidavit from an individual other
than a claiming heir, who was familiar with the
affairs of the deceased memb er;
5. Proof that all debts of the deceased member, including
payment of last sickness, hospital, medical, death,
funeral and burial expenses have b een paid or provided
for.
(b) The Executive Director of the System shall re tain complete
discretion in determining which requests for probate waiver may be
granted or denied, for any reason. Should the System have any
question as to the validity of any d ocument presented by the
claiming heirs, or as to any statement or assertion contained RBH No. 6270
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therein, the probate requirement provided for in Section 1 et seq.
of Title 58 of the Oklahoma Statutes shall not be waived.
(c) After paying any death benefits or unpa id contributions to
any claiming heirs as provided pursuant to this subsecti on, the
System is discharged and released from any and all liability,
obligation and costs to the same extent as if the System had dealt
with a personal representative of the decea sed 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 estate tax liability.
(14) Upon the death of a retired member, the benefit payment
for the month in which the retired m ember died, if not previously
paid, shall be made to the joint annuitant if still living, to the
beneficiary of the member if the joint annuitant is deceased, or to
the member's estate if there is no surviving joint annuitant or
beneficiary. Such benefit payment shall be made in an amount equal
to a full monthly benefit payment r egardless of the day of the mont h
in which the retired member died.
SECTION 4. AMENDATORY 70 O.S. 2021, Section 17-105.1, is
amended to read as follows:
Section 17-105.1 In the event the total reti rement payments
made to a retired member and the retired member 's joint annuitant,
if any, are less than the member 's accumulated contribut ions with
interest as credited at the time of retirement under Section 17 -105
of this title, the difference shall be paid to the member's RBH No. 6270
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designated beneficiary or if no designated beneficiary survives,
then to the member's nearest surviving next of kin as determined by
law estate. This provision shall apply to retired members dying on
or after July 1, 1979. After paying unpaid accumulated
contributions to any designated beneficiary or the member's estate
pursuant to this section, the System is discharged and relea sed from
any and all liability, obligation and costs. The System is not
required to inquire into the truth of any matter specified in this
subsection or into the payment of any estate tax liability.
SECTION 5. AMENDATORY 70 O.S. 2021, Section 17-106.3, is
amended to read as follows:
Section 17-106.3 A. All employee and employer cont ributions
and dedicated revenues shall be deposited in the O klahoma Teachers'
Retirement Fund in the State Treasury. The Board of Tr ustees shall
have the responsibility for the management of the Oklahoma Teacher s'
Retirement Fund, and may transfer monies used for investment
purposes by the Teachers ' Retirement System of Oklahoma from the
Oklahoma Teachers' Retirement Fund in the State Treasury to the
custodian bank or trust company of the System.
B. All benefits payable pursuant to the provisions of the
Teachers' Retirement System of Oklahoma, refunds of contribut ion and
overpayments, and all administrative expenses in connection with the
System shall be paid from the Oklahoma Teachers ' Retirement Fund
upon warrants or vouchers signed by two persons design ated by the RBH No. 6270
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Board of Trustees. All expenses of the administ ration of the Tax-
Sheltered Annuity Fund shall be paid from the Oklahoma Teachers'
Retirement Fund. The Board of Trustees may transfer monies from the
custodian bank or trust company of the Syste m to the Oklahoma
Teachers' Retirement Fund in the State Tre asury for the purposes
specified in this subsection.
SECTION 6. AMENDATORY 70 O.S. 2021, Section 17 -107, is
amended to read as follows:
Section 17-107. The interest earned on the investments in the
Teachers' Retirement System of Okl ahoma shall be credited in the
following manner:
1. money on deposit in the Teachers ' Deposit Fund or Tax-
Sheltered Annuity Fund shall b e credited with interest annually
compounded;
2. there shall be deducted fro m the annual interest on
investments an amount necessary for the amortization of bonds
purchased and owned by the Teachers ' Retirement System of Oklahoma;
3. 2. there shall be deduc ted from the annual interest on
investments an amount of money necessary f or the operation of the
Teachers' Retirement System of Oklahoma; and
4. 3. any residue remaining in the Interest Fund after the
requirements of paragraphs 1 through 3 and 2 of this section have
been fully met shall be used for the purpose of paying retirement
benefits to the retirees of the Teachers ' Retirement System of RBH No. 6270
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Oklahoma and transferred to the Retirement Benefit Fund; the
interest income shall be distributed to the various funds on J une 30
each year.
SECTION 7. AMENDATORY 70 O.S. 2021, Section 17 -108, is
amended to read as follows:
Section 17-108. A. Each local school district, or state
college or university, or State Board of Education , or State Board
of Career and Technology Education, or other state agencies whose
employees are members of the Teachers ' Retirement System
("participating employer s"), shall match, on a pro rata basis, in
accordance with subsection B of this section the contribut ions of
members whose salaries are paid by federal funds or externally
sponsored agreements such as grants, contracts and cooperative
agreements. These funds shall be remitted at the same time as the
regular contributions of members are remitted to the Te achers'
Retirement System of Oklahoma and deposited in the Retirement
Benefit Fund.
B. On an annual basis, the Board of Trustees shall set two
contribution rates to be paid by contributing employers as provided
in subsection A of this section . Both contribution rates shall be
determined using cost principles established by federal regulations
and shall be consistent wit h policies, regulations and procedures
that apply uniformly to both federally assisted and other
activities, and be accorded consistent t reatment through application RBH No. 6270
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of generally accepted accounting principles. The Board shall
approve the contributio n rates for each fiscal year ending June 30,
no later than April 1 of the previous fiscal year . The first rate
shall be applied to service pe rformed during the regular school year
of the participating employer. The second rate shall be applied to
service performed by members during a summer school program of the
participating employer . For the purposes of this subsection ,
"summer school program" is defined as a program offering academic
enrichment for students from Pre -K through 12th grades during the
summer term after the close of the school year . Members shall only
be considered as providing service to a summer school program if
such service is provided pursuant to a separate summer school
contract between the member and the participating employer . The
term "summer school program" does not include services performed at
a participating employer offering an extended school year pursuant
to Section 1-109.1 of this title, or services performed by staff
pursuant to a twelve-month contract with the employer . The method
applied to setting the second contribution rate may take into
consideration whether, or to what extent, such service is likely to
add to members' service credit or final average salary; provided,
however, the second rate shall not exceed one -half (1/2) of the
first rate established in this subsection . The actuary retained by
the Board may recommend such rates using assumptions that apply to RBH No. 6270
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the group of those members whose service is subject to the second
contribution rate.
C. All the assets of th e retirement system shall be credited
according to the purpose for which they are held to one of eight
funds, namely: The Teachers' Savings Fund, the Retirement Benefit
Fund, the Interest Fund, the Permanent Retirement Fund, the Expense
Fund, the Suspense Fund, the Teachers' Deposit Fund, and the Retiree
Medical Benefit Fund.
1. The Teachers' Savings Fund shall be a fund in which shall be
accumulated the regular contributions from the compensation of
members, including interest earnings prior to July 1, 1 968.
Contributions to and payments from the Teachers ' Savings Fund shall
be made as specifically provided in each plan available withi n the
retirement system.
2. The deductions provided for in the plans within the
retirement system shall be made notwiths tanding that the minimum
compensation provided for any member shall be reduced thereby .
Every member shall be deemed to consent and a gree to the deductions
made and provided for herein and payment of salary or compensation,
less the deduction, shall be a full and complete discharge and
acquittance of all claims and demands whatsoever for the services
rendered by such person during the p eriod covered by such payment,
except as to the benefits provided under this act. The employer
shall certify to the Board of Trustees on each and every payroll, or RBH No. 6270
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in such other manner as the Board may prescribe, the amounts to be
deducted, and each of th e amounts shall be deducted, and when
deducted shall be paid into the Teachers' Savings Fund, and shall be
credited to the individual account of the member from whose
compensation the deduction was made.
3. Following the termination of membership in the retirement
system for any member who has been absent from service for five (5)
years in any period of six (6) consecutive y ears, the Teachers'
Savings Fund Account of such member shall be closed and the amount
due the member as provided in Section 17 -105 of this title shall be
paid upon the filing of formal application. At the time such
membership is terminated the amount due the member as provided in
Section 17-105 of this title shall be transferred to the Suspense
Fund.
4. Upon the retirement of a memb er, the balance of money he or
she the member had in the Teachers' Savings Fund shall be
transferred to the Retirement Benefit Fund.
5. Retirement Benefit Fund.
a. After August 2, 1969, there shall be transferred from
the Teachers' Savings Fund for those members d rawing
retirement benefits from the Teachers' Retirement
System of Oklahoma an amount necessary to provide the
monthly annuity payments and pension payments as
required in Section 17 -107 of this title. In addition RBH No. 6270
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the fund shall consist of monies received from any
state dedicated revenue, monies received from state
appropriations, monies received from federal matching
funds, and the residue of the interest on investments
after the requirements of Section 17 -107 of this title
have been fully met. The Retirement Benefit Fund
shall consist of an amount of money necessary for the
making of retirement payments to retirees.
b. Should a member have deposits in the Teachers ' Deposit
Fund or the Tax-Sheltered Annuity Fund and wish to
receive monthly retirement ben efits on such deposits,
the actuarial equivalent of a two-year period and each
succeeding fiscal year thereafter shall be tr ansferred
to the Retirement Benefit Fund . The member may choose
any of the plans available in the Teachers ' Retirement
Act as a method of receiving monthly retirement
benefits on the money he has on deposit in the
Teachers' Deposit Fund or the Tax -Sheltered Annuity
Fund. The monthly retirement benefits paid from the
Teachers' Deposit Fund or the Tax -Sheltered Annuity
Fund shall be in addition to the regular retirement
benefits and the money transferred from the Teachers '
Deposit Fund or Tax-Sheltered Annuity Fund shall not
be matched by the State of Oklahoma. RBH No. 6270
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c. From the Retirement Benefit Fund shall be paid all
monthly retirement be nefits.
d.
c. At the death of a retired member who has retired under
the Maximum Plan of Retirement, or Option 1 or Option
4, the balance of money the member has in the
Teachers' Savings Fund shall be transferred to the
Retirement Benefit Fund and the amount du e the
member's beneficiary or his or her estate under the
Maximum Plan or Option 1 or Option 4 shall be paid
from the Retirement Benefit Fund.
e.
d. At the death of both a retired member who had retired
under Option 2 or 3 and the retired member 's spouse
annuitant, who had retired under Option 2 or 3, any
balance in the Teachers ' Savings Fund shall be
transferred from the T eachers' Savings Fund to the
Retirement Benefit Fund.
f. At the death of a retired memb er who had retired under
Option 5, the balance of any mo nies the member had in
the Teachers' Savings Fund shall be transferre d to the
Retirement Benefit Fund for the pur pose of making a
lump-sum settlement to the beneficiary or his estate .
Providing that if the surviving spouse elects to RBH No. 6270
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receive the balance un der the Maximum Plan of
Retirement or Option 1 the member's money, if any, on
a monthly basis, constituting actua rial equivalent of
two (2) years' payments, and each year thereafter the
annual actuarial equivalent, shall be transferred from
the Teachers' Savings Fund for the purpose of paying
monthly retirement benefits to the spouse under this
option.
6. The Interest Fund is hereby created to facilitate the
crediting of interest to the various other funds to which interest
is to be credited. All income, interest and dividends derived from
the deposits and investments aut horized by this act shall be paid
into the Interest Fund. On June 30, each year, interest shall be
transferred to the other funds a s herein provided.
7. The Permanent Retirement Fund sha ll consist of the
accumulated gifts, awards, and bequests made to t he retirement
system, and transfers from the S uspense Fund, the principal of which
is hereby held and dedicated as a perpetual endowm ent of the
retirement system and shall not be diverted o r appropriated to any
other cause or purpose unless specifically pr ovided for in such
gifts, awards or bequests.
8. The Expense Fund shall be the fund from which the expense of
administration and mai ntenance of the retirement system shall be
paid. The Board of Trustees shall cause to be prepared and adopt RBH No. 6270
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annually an itemized budget showing the amount required to d efray
the expenses for the ensuing fiscal year.
Transfers to and payments from this fun d shall be made as
follows: first, from the Interest Fu nd; second, from any dedicated
revenue; and, third, from appropri ation by the Oklahoma Legislature.
All monies for the operation of the Teachers ' Retirement System
of Oklahoma shall be paid from the E xpense Fund upon the approval by
the Board of Trustees a nd the checks signed by two people designated
to sign such checks by the Board of Trustees of the Teachers '
Retirement System of Oklahoma.
9. The Suspense Fund shall be comprised of amounts transferr ed
to the fund as provided in this section and Section 1 7-105 of this
title and obligations of the retirement system to any member or
person which cannot be legally disc harged.
10. Teachers' Deposit Fund.
Any member may request, prior to a pay period, tha t his or her
employer make additional deposits for him o r her, for tax-sheltered
annuity purposes. However, the amount deposited shall not exceed
the limits as defined in Section 402(g) and Section 415 of the
Internal Revenue Code of 1986, as amended, and applicable federal
regulations. All such deposits shal l be credited to the member's
account in the Teachers' Deposit Fund for the purchase of a tax -
sheltered annuity. The amount thus accumulated, with earnings,
shall be used upon the member 's retirement, separation from service, RBH No. 6270
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death or disability to purcha se an annuity in addition to his or her
regular service retirement allowance. The amount a member
accumulates in the Teachers' Deposit Fund, not including interest,
may be used to pay distributions i n the case of hardship as provided
in Section 403(b)(11) of the Internal Revenue Code of 1986, as
amended, and applicable federal regulations.
11. Collection of Contrib utions.
The collection of members ' contributions shall be as
follows:
(1) Each employer shall cause to be deducted on each
and every payroll or claim of a member for each
and every payroll claim period subsequent to the
date of establishment of the retire ment system
the contribution payable by such member as
provided in this act . With each and every
payroll or claim the employer shall deliver t o
the treasurer of the employer warrants issued to
the employees as shown to be due by the payroll
or claim, together with a warrant or warrants in
favor of the Teachers ' Retirement System as shown
by the payroll or claim.
(2) The treasurer or disbursing o fficer upon delivery
of the warrants and a true copy of the payroll or
claims as provided above shall register th e RBH No. 6270
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warrants as provided for the registration of
other school warrants, and shall deliver to the
employer warrants issued in favor of the
employees, and shall deliver warrants issued in
favor of the Teachers' Retirement System and the
copy of the payroll or claims to the school
district superintendent as designated by the
Board of Trustees. For the purpose of collecting
contributions of teachers i n the public schools,
the superintendent of a school district is hereby
designated to receive the Teachers ' Retirement
warrants from the treasurer or proper disbursing
officer of the several school di stricts for the
purpose of transmitting such warrants an d payroll
or claims to the Executive Director of the
Teachers' Retirement System of the State of
Oklahoma. Any college or university or other
educational institution or agency operated in
whole or in part by the state shall have the
amount retained or ded ucted from the funds
regularly appropriated by the state for the
current maintenance for such educational
departments and institutions. RBH No. 6270
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(3) For the purpose of enabling the collection of the
contributions of the members of the retirement
system to be made as simple as possible, the
Board of Trustees shall require the secretary or
other officer of each employer -board or agency,
within thirty (30) days after the beginning of
each school year, to make a li st of all teachers
in its employ who are members of the retirement
system, certify to the correctness of this list,
and file the same with the Executive Director of
the Board of Trustees of the Teachers ' Retirement
System. If additions to or deductions fr om this
list should be made during the year such
additions or deductions shall likewise be
certified to the Board of Trustees of the
Teachers' Retirement System.
(4) The State Treasurer shall furnish annually to the
Board of Trustees a sworn statement of t he amount
of the funds in his or her custody belonging t o
the retirement system. The records of the Board
of Trustees shall be open to public inspection
and any member of the retirement system shall be
furnished with a statement of the amount of the
credit to his or her the member's individual RBH No. 6270
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account upon written request by such member,
provided the Board of Trustees shall no t be
required to answer more than one such re quest of
a member in any one (1) year.
(5) Failure of any superintendent, officer, or other
person to discharge the duties imposed upon him
or her by this act shall render him or her or his
or her bondsman liab le for any loss occasioned
thereby to the Teachers' Retirement System or the
employees of the school district, or both.
(6) On a showing by the Te achers' Retirement System
that a warrant, voucher or check issued to it
has, for any reason, been lost or nev er received,
after ninety (90) days from the da te of issue or
from transmittal for payment, it shall be the
duty of the issuing authority forthwith , without
any indemnifying bond or other re quirements, to
issue a duplicate thereof in lieu of that which
was lost, to the Teachers ' Retirement System; and
the Teachers' Retirement System shall save
harmless any school district or agency of state
government making payment under the provisions
hereof to the State Teachers' Retirement System
if the original warrant , voucher or check is RBH No. 6270
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later presented for payme nt and same is paid
after a duplicate warrant, voucher or check has
been issued and paid to the Teac hers' Retirement
System, and any loss susta ined therefrom shall be
charged to the Interest Fund.
12. 11. Rollover Contributions and Direct Trustee -to-Trustee
Transfers from Other Plans.
Any member may purchase credit for service, to the extent
specified in this title, with rollovers from an eligib le retirement
plan as defined by the Internal Revenue Code of 1986, as amended
from time to time. A member may also purchase permissive service
credit, as defined by Code Section 415(n)(3)(A), with a direct
trustee-to-trustee transfer from a governmental Code Section 403(b)
plan or governmental Code Section 457(b) plan . All rollovers and
direct trustee-to-trustee transfers shall be allowed to the extent
permitted by federal law . Rollovers or direct transfers in exce ss
of the amount necessary to purchase such service credit shall not be
allowed.
13. 12. Retiree Medical Bene fit Fund.
The Retiree Medical Benefit Fund shall be maintained as a
subaccount under the Retirement Benefit Fund . The Retiree Medical
Benefit Fund is composed of all assets contributed to this
subaccount to pay the retirement system's portion of the mont hly
retiree health insurance benefits descr ibed in Section 1316.3 of RBH No. 6270
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Title 74 of the Oklahoma Statutes . All allocated assets and the
earnings thereon in the Retiree Medical Benefit Fund shall be held
for the exclusive purpose of providing retiree medical benefits
pursuant to Section 1316.3 of Titl e 74 of the Oklahoma Statutes .
The Retiree Medical Benefit Fund shall be administered in accordance
with the requirements under Section 401(h) of the Internal Revenue
Code of 1986, as amended from time to time . An amount necessary to
pay the health insur ance premiums for retired members as provided by
Section 1316.3 of Title 74 of the Oklahoma Statutes shall b e
deposited each month into the Ret iree Medical Benefit Fund.
SECTION 8. AMENDATORY 70 O.S. 2021, Section 17 -116.2, is
amended to read as follows:
Section 17-116.2 A. 1. Beginning July 1, 1 987, and prior to
July 1, 1995, a member who retires on or after the memb er's normal
retirement age or whose retirement is because of disability shall
receive an annual allowance for lif e, payable monthly, in an amount
equal to two percent (2%) of the memb er's highest three-year average
salary upon which member contributions we re made, multiplied by the
number of the member's years of creditable service.
A classified member who retired pr ior to July 1, 1986, shall
have the member's retirement allowance calc ulated on a minimum
average salary of Eleven Thousand Five Hundred Dollar s ($11,500.00)
or on the member's current minimum average salary plus Two Thousand
Dollars ($2,000.00), whichever is greater. Beginning July 1, 1994, RBH No. 6270
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a classified member who retired prior to July 1, 1993, shall have
the member's retirement allowance calcu lated on the member's current
minimum average salary plus Five Hundred Fifty Dollars ($550.00).
An unclassified member who retired prior to July 1, 1986, shall have
the member's retirement allowance calculated on a minimum average
salary of Nine Thousand Five Hundred Dollars ($9,500.00) or on the
member's current minimum average salary plus One Thousand Dollars
($1,000.00), whichever is greater. Beginning July 1, 1994, an
unclassified member who retired prior to July 1, 1993, shall have
the member's retirement allowance calculated on the member's current
minimum average salary plus Two Hundred Seventy -five Dollars
($275.00). Those individuals receiving benefits pursuant to
subsection (3) of Section 17-105 of this title whose benefits
commenced prior to Ju ly 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 dis ability, the retirement
allowance shall be subject to adjustment in accordance with the
actuarial equivalent fact ors adopted by the Board of Trustees.
2. Beginning July 1, 1995, a me mber, who has no service
performed on or after July 1, 1995, for an entit y or institution
within The Oklahoma State System of Higher Education, who retires on
or after the member's normal retirement age or whose retirement is RBH No. 6270
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because of disability shall re ceive an annual allowance for life,
payable monthly as follows:
a. if the member becomes a member after June 30, 1995,
and was not eligible to become a member prior to July
1, 1995, in an amount equal to two percent (2%) of the
member's average salary upon which member
contributions were made, multiplied by the number of
the member's years of creditable service, or
b. if the member became a member or is eligible to become
a member prior to July 1, 1995, and elected to have a
maximum compensation level in ex cess 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, 1 995, 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 p erformed prior
to July 1, 1995, plus any years of prior service
authorized under this title, plus RBH No. 6270
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(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, or
c. if the member became a member or is eligible to become
a member prior to July 1, 1995, and was eligible to
elect to have a maximum 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 Forty Thousand Dollars
($40,000.00) pursuant to paragraph 1 of subsection C
of this section or pursuant to s ubsection E of this
section, in an amount equal to:
(1) two percent (2%) of the member's average salary
upon which member contributions were ma de not to
exceed Twenty-five Thousand Dollars ($25,000.00),
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,
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credited service authorized and performed after
June 30, 1995.
B. Except as otherwise provided for in this section, the amoun t
contributed by each member to the retirement system shall be:
1. Beginning July 1, 1992, through June 30, 1996 , six percent
(6%) of the regular annual compensation of such member n ot in excess
of Twenty-five Thousand Dollars ($25,000.00) and beginning J uly 1,
1995, through June 30, 1996, six percent (6%) of the maximum
compensation level;
2. Beginning July 1, 199 6, through June 30, 1997, six and one -
half percent (6 1/2%) of the re gular 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 ($25,000.00) and beginning July 1, 1996, through
June 30, 1997, six an d 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 of Higher Education,
not in excess of Twenty-five Thousand Dollars ($25,000.00);
3. Beginning July 1, 1997, seven percent (7%) of the regular
annual compensation of the member not in excess of any applicable
maximum compensation level of the member; and
4. All public schools in this stat e shall treat the employee
contributions as being picked up under the provisions of Section 414 RBH No. 6270
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(h)(2) of the Internal Revenue Code of 1986 in determining tax
treatment.
Subject to Internal Revenue Service approval, paragraph 4 of this
subsection shall not apply to a comprehensive university group
established on or before J uly 1, 1998, whose employee contributions
were consistently treated as not picked up as of July 1, 1998, and
at all times thereafter.
C. 1. Prior to July 1, 1995, an active member of th e System
may elect to have a maximum compensation level of Forty Thou sand
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 ($25,0 00.00)
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 contribut e the following amounts:
a. beginning July 1, 1992, through June 30, 1993, eleven
percent (11%) of the regular annual compensation of
such member that is in excess of Twenty -five Thousand
Dollars ($25,000.00) and is not in excess of Forty
Thousand Dollars ($40,000.00),
b. beginning July 1, 1993, through June 30, 1994, nine
percent (9%) of the regular annual compensation of RBH No. 6270
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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), and
c. beginning July 1, 1994, through June 30, 1995, eight
percent (8%) of the regular annual compensation of
such member that is in excess of Twenty -five Thousand
Dollars ($25,000.00) a nd is not in excess of Forty
Thousand Dollars ($40,000.00). Except a s provided in
subsection E of this section, any such election shall
be irrevocable.
2. After June 30, 1995, in addition to the amount contributed
by each member to the retirement system pursuant to subsection B of
this section, the total amount contribute d by each member to the
retirement system shall include, beginning July 1, 1995, through
June 30, 1997, seven percent (7%) of the regular annual compensation
of each member, who is not em ployed by an entity or institution
within The Oklahoma State System o f Higher Education, that is in
excess of Twenty-five Thousand Dollars ($25 ,000.00) and beginning
July 1, 1996, through June 30, 1997, seven percent (7%) of the
regular annual compensation of each member who is employed by an
entity or institution within Th e Oklahoma State System of Higher
Education in excess of Twenty -five Thousand Dollars ($25,000.00),
but not in excess of any applicable maximum compensation level of
the member. RBH No. 6270
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D. 1. Any member who was a contributing member of the
Retirement System betw een July 1, 1987, and June 30, 1995, who at
the time the member was eligib le 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
member to Forty Thousand Dollars ($40,000.00), may elect to make
back contributions t o 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 contribu tion on compensation in excess of Twenty-five
Thousand Dollars ($25,000.00) up to a maximum of Forty Thousand
Dollars ($40,000.00) shall be made prior to the official retirement
date of the member. The required payment shall include any
contribution required by the employing school district, and shall
include interest compounded annually at ten percent (10%) per ann um
of both employer and employee contributions.
2. Any changes made pursuant to this subsection shall be
irrevocable.
E. 1. An individual wh o withdrew from the Teachers' Retirement
System and whose salary was in excess of Seven Thousand Eight
Hundred Dollars ($7,800.00) and had elected to contribute only on
Seven Thousand Eight Hundred Dollars ($7,800.00) before his or her
withdrawal shall con tribute on the earning ceiling as provided for RBH No. 6270
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in this section on his or her reentry into membership in the
Teachers' Retirement System.
2. An individual who elected to contribute o n a maximum of
Seven Thousand Eight Hundred Dollars ($7,800.00) per annum shall,
beginning July 1, 1979, contribute on his or her the member's
earning ceiling as provided for in this sect ion.
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 Seven
Thousand Eight Hundred Dollars ($7,800.00) and the actual salary of
the member, not to exceed Ten Thousand Dollars ($10, 000.00) for each
applicable school year, plus interest compounded ann ually at ten
percent (10%) per annum. Such payment shall be made prior to the
official retirement date of the member.
F. Each employer shall cause to be deducted from the salary of
each member on each and every payroll of such employer for each and
every payroll period, the proper percentage of his or her earnable
the member's regular annual 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 determi ning the amount earnable by a contributions RBH No. 6270
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to deduct for each member in a payroll period, the Board of Trustees
shall consider the rate of annual compensation payable to such
member on the first day of the payroll period as continuing
throughout such payr oll period, and it may omit deductions from
compensation for any period le ss than a full period, and to
facilitate the making of deductions, it may modify the deduction
required of any member by such an amount as shall not exceed one -
tenth of one percent ( 1/10 of 1%) of the annual compensation upon
the basis of which such deduct ion is to be made. Prior to January
1, 1991, any active contributing member who joined the System
subsequent to July 1, 1943, may pay the normal cost, which shall
mean the single sum which would have been paid under existing
statutes at the time the servi ce was performed, plus interest, for
years of teaching service in Oklahoma from the date of establishment
of the System in 1943 to date of membership, in a lump sum, or in
installments equal to establishing one (1) year of creditable
service. Effective Ja nuary 1, 1991, any active contributing member
who joined the System subsequent to July 1, 1943, may pay the amoun t
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 membership, in a
lump sum, or in installments equal to establishing o ne (1) year of
creditable service. For purposes of this option, teac hing service
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courses within Oklahoma for the federal government. Years for which
contributions are paid shall count as m embership service under this
plan. A member may receive credit for n ot more than five (5) years
of teaching service rendered while in the Peac e Corps or in the
public schools of a territory of the United States or the public
schools, American Military Dep endent Schools or state colleges or
state universities outside this s tate by paying his or her
contributions, plus interest, and membership fee s to the retirement
system, subject to the regulations of the Board of Trustees,
providing he or she is not recei ving and is not eligible to receive
retirement credit or benefits fro m said service in any other public
retirement system of this state, or any other state or territory of
the United States subject to the following provisions:
a. the member is required to have two (2) years of
employed service teaching earned in Oklahoma fo r 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
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of state, whichever is greater, had he or she been
employed as a teacher. Effective Ja nuary 1, 1991, the
Peace Corps, territorial, out -of-state or noncovered
in-state payment shall be the amount determined by the
Board of Trustees pursuant to Section 17 -116.8 of this
title.
2. In addition to the deductions hereinabove provided for, any
member who becomes a member of the Armed Forces of the United States
of America during any period of national emergency, including World
War II, the Korean conflict, the Vietnam conflict or others as may
be determined by the Board of Trustees, or whose entran ce 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 granted the
privilege of making up his or her five percent ( 5%) contributions as
provided for in this section until January 1, 1991, f or not to
exceed five (5) years of service in the Armed 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 h is or her service in the Armed
Forces commenced or in the case of a teache r who was not teaching
prior to entering the Armed Forces, on the basis of the salary of
the first year of teachi ng after being honorably discharged from the
Armed Forces. Effective January 1, 1991, the member will receive
such service upon payment of the amount determined by the Board of RBH No. 6270
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Trustees pursuant to Section 17 -116.8 of this title. Such
contributions shall be credited in the regular manner, and the
period for which said con tributions were paid shall be counted as
creditable years of service and a llocated to the period during which
the military service was rendered, except that the period for which
contributions were paid must have been continuous and shall be
credited in the aggregate, regardless of fiscal year limitations.
Notwithstanding any pr ovision 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 credits purchased
pursuant to this subsection shall be determin ed in accordance with
the provisions of paragraph 2 of this subsectio n.
G. Effective July 1, 2004, the total creditable service of a
member who retires or terminates employment and elects a vested
benefit shall include not to exceed one hundred twenty (12 0) 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 J uly 1, 1995, the
year of credit received in this section shall be tre ated as service
earned prior to July 1, 1995. This subsection shall apply to RBH No. 6270
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members retiring or vesting on or after the effective date of this
act and shall not be retroactive.
H. Any member who:
1. Shall be absent from the teaching service because of
election to the State Legislature or appointment to the executive
branch in an education-related capacity shall be allowed thirty (30)
days from the date as of which the person is officia lly elected or
appointed to file an election with the Teachers ' Retirement System
to retain his or her membership in the Teachers ' Retirement System
upon payment of the contribution required of other members and
employers of said members as provided for in this section and his or
her service credits shall continue to be acc umulated during such
absence, provided he or she is not receiving retireme nt credits or
benefits from said service beginning after July 1, 1992, in other
public retirement systems; or
2. Became an employee of the Oklahoma Commission for Teacher
Preparation on or subsequent to June 1, 2001, but prior to July 1,
2002, who was previously employed by a participating employer within
the Teachers' Retirement System of Oklahoma, may elect to can cel any
accumulated service credit accrued within the Oklahoma Public
Employees Retirement System on or after June 1, 2001, but prior to
July 1, 2002, by filing an election with the Oklahoma Public
Employees Retirement System for the cancellation of such s ervice
credit. The election shall be irrevocable and shall require t he RBH No. 6270
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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
System for such period of time. The Teachers ' Retirement System
shall compute the employee contributions that would have been made
to the System by such employee if the contributions had been
computed pursuant to this section. In order to receive the full
amount of creditable service for the period of time on or a fter June
1, 2001, but not later than June 30, 2002, the employee shall be
required to pay any difference between the transferred employee
contributions and the amount computed by the Tea chers' Retirement
System. The employee may make payment of any requi red amount in the
manner provided by and subject to the requirements of Se ction 17-
116.8 of this title. After payment of all required employee
contributions, the Teachers ' Retirement System shall credit the
period of time represented by the transferred em ployee contributions
as creditable service within the meaning of Section 1 7-101 of this
title. After the transfer of the employee 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. A ny person who makes the
election provided for by this paragraph, and who continues
employment with the Oklahoma C ommission for Teacher Preparation on
or after July 1, 2002, shall con tinue to accrue service credit in RBH No. 6270
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the Teachers' Retirement System of Oklah oma. The employer shall
make employer contributions according to the requirements of Section
17-108.1 of this title and shall provide for the deduction of
employee contributions as required by this section.
I. Any member who shall be absent from the teac hing service
because of election or appointment as a local, state or national
education association officer, prio r to January 1, 2011, shall be
allowed to retain his or her membershi p in the Teachers' Retirement
System upon payment of the contribution requ ired of other members
and employers of said members as provided for in this section and
his or her service credit s shall continue to be accumulated during
such absence. Provided, ho wever, any one such absence shall not
exceed twelve (12) continuous years. No member who has less than
ten (10) years of contributory service on July 1, 1994, may make
this election after June 30, 1994. Members contributing to the
System on July 1, 1994, may continue to contribute under this
subsection until they have complete d eight (8) years allowed by this
subsection. The member may file for retirement when otherwise
eligible for retirement as provided by Section 17 -105 of this title.
J. A member may receive credit for those years of service
accumulated by the member while employed by an entity which is a
participating employer in the Oklahoma Firefighters Pension and
Retirement System, the Oklahoma Police Pension and Retirement
System, the Uniform Re tirement System for Justices and Judges, the RBH No. 6270
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Oklahoma Law Enforcement Reti rement System, or the Oklahoma Public
Employees Retirement System, if the member is not receiving or
eligible to receive retirement credit or benefits from said service
in any other public retirement system. A member also may receive
credit for those year s 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 from
said service in any other public retirement system. To receive the
service credit provided in this subsection, the member shall pay the
amount determined by the Board of Trustees pursuant to Section 17 -
116.8 of this title. For purposes of t his subsection, creditable
service transferred from the Oklahoma Publ ic Employees Retirement
System shall include service authorized under para graph (f) of
subsection (2) of Section 913 of Title 74 of the Oklahoma Statutes
as amended from time to time. Me mbers who retire prior to July 1,
1993, shall have their monthly bene fit adjusted to include all
services accrued under paragraph (f) of subsec tion (2) of Section
913 of Title 74 of the Oklahoma Statutes. Provided however, any
adjustment of existing retir ement benefits caused by reason of
inclusion of such service authoriz ed under paragraph (f) of RBH No. 6270
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subsection (2) of Section 913 of Title 74 of the Oklahoma Statutes
shall not affect any retirement benefit paid prior to July 1, 1993.
K. 1. An active member o f the Teachers' Retirement System of
Oklahoma may receive credit for those years of service accumulated
by the member while a member of the Okl ahoma 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 Publi c
Employees Retirement System and the Teachers '
Retirement System of Oklah oma of the member's election
to transfer said service credit. The notice shall
include a list of the years to be transferred, and
c. the member is not receiving or eligible to recei ve
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 authorized by
this subsection who are receiving or eligible to receive retirement
credit or benefits fro m 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 RBH No. 6270
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such a transfer pursuant to subparagraph d of paragraph 2 of this
subsection. Service credit transferred to the Teachers ' Retirement
System of Oklahoma under this subsection shall also be canc eled 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 accrued at least eight (8)
years of credited service with th e 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 would be able to retire.
Said computation shall assume an unreduced
benefit and be computed using interest and
mortality assumptions consistent with the
actuarial assumptions adopt ed by the Board of RBH No. 6270
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Trustees for purposes of preparing the annual
actuarial evaluation, but shall not make any
projections regarding future sala ry. 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 transfe r fee to be
paid by the employee under subparagraph c of this
paragraph so long as it is greater than the
product of the calculation in division (2) of
this subparagraph, and
(2) determine the sum of the employee and employer
contributions applicable to th e 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 evaluat ion. For all nonvested
members, and for members who have accrued at
least eight (8) years of credited service, if the
product of this calculat ion 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 RBH No. 6270
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sending system under subparagraph c of thi s
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 value
of the member's incremental projected benefits
discounted according to the member's age at the time
of the transfer. Incremental projected benefits shall
be the difference between the projected benefit said
member would receive without transferring the service
credit and the projected benefit after transfer of
service credit computed as of the earliest age at
which the member would be able to retire. Said
computation shall assume an unreduced benefit an d be
computed using interest, salary projections and
mortality assumptions consistent with the actuarial
assumptions adopted by the Board of Trustees for
purposes of preparing the an nual actuarial evaluation.
c. The sending system shall, within sixty (60) days from
the date notification of an intent to transfer is
received by the sending system, transfer to the
receiving system the amount determined in subparagraph RBH No. 6270
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a of this paragraph. Except if the cost as calculated
under subparagraph a of this paragraph is greater than
the actuarial value of the incremental benefit in the
receiving system, as established in subpar agraph b of
this paragraph, the sending system shall send the
receiving system an amount equal to the actuarial
value of the incremental projec ted benefit in the
receiving system.
d. In order to receive the credit provided for in
paragraph 1 of this subsec tion, if the cost of the
actuarial value of the incremental benefit t o the
receiving system is greater than the cost as
calculated under subpar agraph a of this paragraph for
the same years of service to the sending system as
established in subparagraphs a and b of this
paragraph, the employee shall 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 Sy stem pursuant to this
subsection.
Such an election shall be made in w riting, filed with
the System prior to receiving the credit provided for RBH No. 6270
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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 under this subsection, the send ing system
shall pay the receiving system any amount due under this subsec tion.
Within sixty (60) days of successfully completing all of the
requirements for transfer under this subsecti on, the member shall
pay the receiving system any amount due under th is subsection. In
the event that the member is unable to pay the transfer fee provided
for in this subsection by the due date, the Board of Trustees of the
receiving system shall permit the member to amortize the transfer
fee over a period not to exceed s ixty (60) months. Said payments
shall be made by payroll deductions unles s the Board of Trustees
permits an alternate payment source. The amortization shall include
interest in an amoun t not to exceed the actuarially assumed interest
rate adopted by the Board of Trustees for investment earnings each
year. Any member who cease s 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 until the unpaid balance is RBH No. 6270
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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 member '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, 199 2,
if any, shall be deemed to be years of service rendered as a membe r
of the Teachers' Retirement System of Oklahoma prior to July 1,
1992, and shall qualify such person as a member of the Teachers'
Retirement System of Oklahoma before July 1, 1992.
5. Notwithstanding the requirements of subsection (5) of
Section 917 of Title 74 of the Oklahoma Statutes, members electing
to take advantage of th e transfer authorized by this subsection who
have withdrawn their contributions from the sending system shall
remit to the sending system the amount of the accumulated
contributions the member has withdrawn plus simple interest of ten
percent (10%) per ann um 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 the transfer is canceled,
the accumulated contribution remitted to the sending system by the
member who originally withdrew their contributions shall be returned
to the member. The member 's rights and obligations reg arding any
service credit reestablished in the sending system due to a failure RBH No. 6270
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to satisfy the requirements of this subsection shall be determin ed
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 the
requirements of this subse ction, the election to transfer service
credit shall be void and of no eff ect, and any service credited as a
result of this transfer shall be canceled. If such service is
canceled, the years of canceled service credit which were
unsuccessfully transferred to the receiving system from the sending
system shall be reestablished in the sending system. The member's
rights and obligations regarding any service credit reestablished in
the sending system due to a failure to satisfy the requirements of
this subsection shall be determined by the sending system in
accordance with 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 this subsection.
L. Any member whose regular annual compensation was not
determined as provided for by law may pay the member contribution
required pursuant to subsection B of this section on such amount not
included in the member's regular annual compensation and receive
credit for such amount in the calculation of the member 's benefit.
The employees must pay the employer contributions required pursuant
to Section 17-108.1 of this title. Interest at the rate of ten RBH No. 6270
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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 member
is required to pay. Any payment by the employing district for a
prior year obligation shall be considered a current obligation of
the employer.
M. Any active member who elected during the 1978 -79 school year
to pay the difference between five percent (5%) on actual salary not
exceeding Ten Thousand Dollars ($10, 000.00) and six percent (6%) on
actual salary not exceeding Fifteen T housand Dollars ($15,000.00)
shall receive credit for one (1) year of cred ited service upon
receipt and approval of a proper request by the Board of Trustees.
N. Effective July 1, 1988, any member who is employed by the
Governor, the State Senate, the Hou se of Representatives or the
Legislative Service Bureau shall be allowed t o elect to retain
membership in the Retirement System upon payment of the accrued and
current member contribution s and employer contributions as provided
in subsection B of this sect ion and Section 17-108.1 of this title.
Such contributions may be paid on behalf of the member by the
employing entity. Upon payment of such contributions, service
credits shall continu e to be accumulated during such employment.
Accrued contributions sh all be paid to the Retirement System by
August 1, 1989. Current contribut ions shall be paid to the RBH No. 6270
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Retirement System by the tenth of the following month beginning with
the month of July 1989.
O. Notwithstanding any requirements of this title to restrict
the payment of service purchases, the Board of Trustees shall
promulgate such rules as necessary to allow active members of the
System to make installment payments for the redeposit of wi thdrawn
accounts or other payments due under the provisions of this t itle.
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 ad opted by the Board of
Trustees for purposes of preparing the annual a ctuarial evaluation.
Further, the rules shall provide that all payments m ust be completed
prior to the effective retirement date of the member.
P. 1. A member of the Oklahoma Public Em ployees Retirement
System who becomes a member of the Teachers ' Retirement System of
Oklahoma because the member has become employed by an enti ty or
institution within The Oklahoma State System of Higher Education,
State Board of Education, State Board of Career and Technology
Education, Oklahoma Department of Career and Te chnology Education,
Oklahoma School of Science and Mathematics, Oklahoma C enter for the
Advancement of Science and Technology, State Department of
Rehabilitation Services, Oklahoma State Regents for Higher
Education, Department of Corrections, State Depart ment of Education,
Oklahoma Board of Private Vocational Schools, Board of Regents of RBH No. 6270
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Oklahoma Colleges, Oklahoma Student Loan Authority, or the Teachers '
Retirement System of Oklahoma, ma y elect to receive credit in the
Teachers' Retirement System of Oklah oma for those years of service
accumulated by the member in the Oklahoma P ublic Employees
Retirement System pursuant to this subsection. A member shall be
eligible to elect to receive cr edit for such years of service if:
a. the member is an active member of the Teachers'
Retirement System of Oklahoma,
b. the member provides not ice to the Teachers' Retirement
System of Oklahoma and the Oklahoma Public Employees
Retirement System of the mem ber'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 re ceiving or eligible to receive
retirement credit or benefits from such service in any
other public retirement sys tem, notwithstanding the
years of service sought to be transferred un der this
subsection.
Members electing to take advantage of the transfer au thorized by
this subsection shall have all service credit with the Oklahoma
Public Employees Retirement System ca nceled which is transferred to
the Teachers' Retirement System of Okl ahoma.
2. For purposes of this subsection, the "sending system" shall
mean the Oklahoma Public Employees Retirement System. The RBH No. 6270
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"receiving system" shall mean the Teachers ' Retirement System of
Oklahoma. Within thirty (30) days after notification of an i ntent
to transfer is received by the sending system, the sending system
shall, according to its own rules, send to the receiving system all
employer and employee contributions made on beh alf of the member
which were made to the sending system plus an addit ional amount of
earnings based on the actuarial assumed rate of the sendin g system.
Upon receipt of these contributions by the receiving system, the
receiving system shall give credit to the transferring member in an
amount equal to the years of service a ccrued in the sending system.
3. If the transferring member 's normal retirement date
calculation is based upon the sum of the member's age and number of
years of credited service totalin g eighty (80) in the sending
system, then the member shall retain suc h calculation in the
receiving system.
4. The Board of Trustees shall pro mulgate such rules as are
necessary to implement the provisions of this subsection.
Q. A former member of the Te achers' Retirement System of
Oklahoma who withdrew his or her contrib utions from the System prior
to January 1, 1983, and who had at least ten (10) years of service
in the System and purchased that service in the Oklahoma Public
Employees Retirement System , may elect to revoke that purchase from
the Oklahoma Public Employee s Retirement System and to repay the
withdrawn contributions to the System in order to be eligible, once RBH No. 6270
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such member reaches the normal retirement age, to receive a
retirement benefit tha t is based upon years of service and
compensation at the time such me mber terminated employment. In
addition, such former member may elect to transfer service credit
accrued in the Oklahoma Public Employees Retirement System to the
Teachers' Retirement System of Oklahoma pursuant to subsection K of
this section. The elect ion, pursuant to this subsection, shall be
made prior to September 1, 2000 . The election and the repayment
shall be made according to rules promulgated by the Board.
SECTION 9. 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 eligible 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 section, the term "last day of
preretirement employment " shall mean the last d ay the employee is
required to be physically pre sent on the job to complete the terms
of the employment contract or agreement, provided this day cannot be RBH No. 6270
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earlier than the member's effective retirement date. An employee on
paid leave is still considered to be employed for purposes of this
section. Employment under any conditions duri ng 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;
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 employees allowed by the
Social Security Administration, whichever is less . For thirty-six
(36) months following a member's effective retirement date, the
retired member shall be subject to earnings limitat ions on allowable
earnings. Earnings limits are determined annually based on a
calendar year. For retired members unde r the age of sixty-two (62)
years, the limit on allowed earnings from the public schools of
Oklahoma for employment for the performan ce of duties ordinarily
performed by classified or nonclassified personnel shall be the
lesser of Fifteen Thousand Dollars ($15,000.00) or limited to one-
half (1/2) of the member's final average salary used in computing
retirement benefits unless or the earnings limitation limit allowed
by the Social Security Administrati on would be greater than Fifteen
Thousand Dollars ($15,000.00) for those under Social Secur ity's full RBH No. 6270
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retirement age, whichever is less. For retired members sixty-two
(62) years of age or o lder the limit on, allowed earnings from the
public schools of Oklahoma for the performance o f duties ordinarily
performed by classified or nonclassified personnel shall be the
lesser of limited to Thirty Thousand Dollars ($30, 000.00) or one-
half (1/2) of the member's final average salary used in computing
retirement benefits, whichever is less. For purposes of this
paragraph, the following shall apply:
a. earnings shall mean "regular annual compensation" as
defined in paragraph (25) (21) of Section 17-101 of
this title, and shall include any payment by a public
school for services rendered by a retired member who
is employed for any purpose whatsoever. Suppl emental
retirement payments paid by a former public school
employer pursuant to subsection (9) of Section 17-105
of this title or other state law shall not be
considered as earnings,
b. the Earnings Limitation for employees allow ed by the
Social Security Administration to workers between the
age of sixty-two (62) years and sixty-five (65) years
shall apply to retired members below the age of sixty-
two (62) years,
c. the limit on allowed earnings from the public schools
shall be automatically adjusted effect ive the first RBH No. 6270
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day of January of each year to reflect the current
Earnings Limitation for employe es as determined from
time to time by the Social Security Administration,
d. the earnings limit for the calendar year in which a
member retires shall be one-twelfth (1/12) of the
annual limit multiplied by the number of months th e
member is eligible to wor k and receive payments from
the public schools of Oklahoma,
e.
c. earnings in excess of the maximum limit on allowed
earnings from public schools of Oklahoma shall result
in a loss of future retirement benefits for the year
the postretirement employment was p erformed of One
Dollar ($1.00) for each One Dollar ($1.00) earned over
the maximum allowed earnings amount ,
f. for those members age seventy (70) years and over, the
earnings in excess of the maximum limit 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 Retirement System
who reached age seventy (70) years prior to July 1,
1991, shall not be restricted by the earnings limits
pursuant to this subparagraph until January 1, 1994. RBH No. 6270
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To qualify for the provisions of this subparagraph,
the member must be employed less than one-half (1/2)
time compared to other full-time employees in simi lar
positions;
3. Notwithstanding paragraph 2 of this subsection, a retired
classified or nonclassified member who has been retired for thirty -
six (36) or more months and who is employed by a public school to
perform duties ordinarily performed by classif ied or nonclassified
personnel shall be able to receive annualized earnings from the
public school with no reduction in retirement benefits regardless of
the amount of annualized earnings. For a period of three (3) years
beginning July 1, 2017, members 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 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 teacher in common or career
tech school districts, with no limitations on earnings. The one-
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public education employment. Members returning under this section
shall not be subject to any earning limitations following the end of
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 to be employed by a school
district to perform the dutie s ordinarily performed by classified or
nonclassified personnel if the m ember is hired by th e school
district in the member's individual capacity to perform the duties
or if the member performs the duties through em ployment with a
proprietorship, partnersh ip, corporation, limited liability company
or partnership, or any other business structure t hat has agreed or
contracted to provide the services to the school district.
B. A public school district that employs a re tired member shall
be required to make co ntributions to the System for the retired
member in an amount as require d in Section 17-108.1 and in paragraph
3 of subsection B of Section 17-116.2 of this title.
C. For purposes of this section, postretirement employment of
less than one thousand (1,000 ) hours per year with the Governor, the
State Senate, the House of Repre sentatives or the Le gislative
Service Bureau shall not be considered as postretirement employment
with a public school of Oklahoma. RBH No. 6270
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D. The Board of Trustees of the Teachers' Retirement System of
Oklahoma shall promulgate such rules as are necessary to imp lement
the provisions of this section.
E. A member who has entered into postretirement employment with
a participating employer of the Teacher s' 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 10. REPEALER 70 O.S. 2021, Section 17-104, is
hereby repealed.
SECTION 11. REPEALER 70 O.S. 2021, Section 17-114.2, is
hereby repealed.
SECTION 12. This act shall become effective November 1, 2023.
59-1-6270 CMA 01/11/23
THOMAS E. CUMMINS CONSULTING ACTUARY, IN C.
2512 E. 71
st
Street , Suite D ∙ Tulsa, Oklahoma 74136
(918) 492-9658 ∙ (918) 492- 9659
January 17, 2023
Representative Mark Lepak
Room 543
Re: RBH No. 6270
RBH No. 6270 is an Oklahoma Teachers Retirement Syst em cleanup bill.
RBH No. 6270 is a nonfiscal 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