RBH No. 7783
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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 2528 By: Lepak
COMMITTEE SUBSTITUTE
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, 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; modif ying definitions; modifying how
members shall make proper application for retirement;
providing membership details; providing procedu re at
joint annuitant's death; modifying retirement
options; releasing System of liability under certain
circumstances; modifying how certain expenses are to
be paid; modifying earnings limits; repealing 70 O.S.
2021, Sections 17-104 and 17-114.2, which relate to
the Teachers' Retirement System of Oklahoma; and
declaring an emergency.
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. 2 022,
Section 17-101), is amended to read as follows: RBH No. 7783
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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:
(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 aligned with a school district and which receives
grant funds from governmental sources.
(3) "Classified personnel" shall mean any teach er, principal,
superintendent, supervisor, administrator, librarian, certified or
registered nurse, college professor, or college 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 RBH No. 7783
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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
Corrections and holding valid teaching cer tificates issued by th e
State Department of Educa tion. Provided, that a person employed by
the Department of Corrections as an instr uctor or counselor s hall
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 e mployer'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 RBH No. 7783
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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 school of 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 member 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 pro vided in this title an annuity as defined
in paragraph (14) of this section. RBH No. 7783
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(13) (11) "Accumulated contributions" shall mean the sum of all
amounts deducted from the compensation of a member and credited to
his the member's individual account in the Teachers' Savings Fund,
together with applicable interest as of June 30, 1968.
(14) (12) "Earnable compensation" shall mean the full rate of
the compensation that would be payabl e to a member if he who worked
the full normal working time.
(15) (13) "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) (24)
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 RBH No. 7783
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member using the regular an nual compensation of the
member for any pre-cap removal year of service so
included subject to the maximum average salary 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 contributions to the Teachers' Retirement
System was were paid. Only salary on which req uired
contributions have been made may be used in computing
average salary.
(16) (14) "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) (15) "Monthly retirement Retirement allowance" is one-
twelfth (1/12) of the annual retiremen t allowance benefit which
shall be payable monthly.
(19) (16) "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. RBH No. 7783
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(20) (17) "Actuary" shall mean a person or firm especially
skilled through training an d experience in financial calculation
respecting the expectancy and duration of life.
(21) (18) "Actuarial equivalent " shall mean a benefit of equal
value when computed upon the basis of such mortality and other
tables as shall be adopted by the Board of Trustees.
(22) (19) The masculine pronoun, whenever used, shall include
the feminine.
(23) (20) "Actuarially determined cost " shall mean the single
sum which is actuarially equivalent in value to a specified pension
annuity amount as determined on the basis of m ortality and interest
assumptions adopted by the Board of Trustees.
(24) (21) "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 r etirement RBH No. 7783
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date pursuant to subparagraph (d) of this paragraph
having attained a minimum age of sixty (60) years,
(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 firs t creditable service
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 July 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) (22) "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, RBH No. 7783
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(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,
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 under 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 provide d 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, RBH No. 7783
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6. maintenance or other nonmonetary compensation,
7. payment received as an independent contractor or
consultant, pursuant to a lawful contract which
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 Pract ice
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) (23) "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 Boa rd of
Education. RBH No. 7783
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(28) (24) "Maximum compensation level" shall, except as
otherwise authorized pursuant to the provisions of Section 17-116.2C
of this title, mean:
(a) Twenty-five Thousand Dollars ($25,000.00) for
creditable service authorized and performe d 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 Dollar s
($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 entit y 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 per iod as authorized by
Section 17-116.2A of this title, RBH No. 7783
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(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 membe r elects to
impose a higher maximum compensation level for service
performed on or after July 1, 1995, but not later than
June 30, 1996,
(e) Forty-four Thousand Dollars ($44,000.00) for members
who, as of June 30, 1995, had elected to have a
maximum compensation level in excess of Twenty-five
Thousand Dollars ($25,000.00), and who were employe d
by an entity or institution withi n The Oklahoma State
System of Higher Education for creditable service
authorized and performed on o r 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 as authorized by S ection 17-116.2A of this
title,
(f) Forty-nine Thousand Dollars ($49,000.00) for members
employed by a comprehensive university if t he member
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 , RBH No. 7783
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(g) the following amounts for creditable 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:
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 Dolla rs
($37,500.00) for service auth orized and
performed on or after July 1, 1997, but not
later than June 30, 1998,
(iii) Forty-two Thousand Five Hundred Dolla rs
($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, RBH No. 7783
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(v) Fifty-two Thousand Five Hundred Dollars
($52,500.00) for service authorized and
performed on or after July 1, 2001 , but not
later than June 30, 2002,
(vi) Fifty-seven Thousand Five Hundred 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 service 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 n ot
later than June 30, 2006,
(x) Seventy-seven Thousand Five Hundred Dollars
($77,500.00) for service authorized and
performed on or after July 1, 2006, but not
later than June 30, 2007, and RBH No. 7783
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(xi) the full amount of regula r annual
compensation for service a uthorized and
performed on or after July 1, 2007, and
2. for members who elected a maximum compensation
level in excess of Twenty -five Thousand Dollars
($25,000.00):
(i) Forty-nine Thousand Dollars ($49,000.00) for
service authorized and performed on or af ter
July 1, 1996, but not later than June 30,
1997,
(ii) Fifty-four Thousand Dollars ($54,000.00) for
service authorized and perform ed 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 Dollar s ($69,000.00) for
service authorized and performed on or after RBH No. 7783
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July 1, 2001, but not later than June 30,
2002,
(vi) Seventy-four Thousand Dollars ($74,000.00)
for service authorized and performed on or
after July 1, 2002, but not later than June
30, 2003,
(vii) Seventy-nine Thousand Dollars ($79,000.00)
for service 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 pe rformed on or
after July 1, 2006, but not later than June
30, 2007, and RBH No. 7783
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(xi) the full amount of regular annual
compensation for serv ice authorized and
performed on or after July 1, 2007, and
(h) the full amount of regular annual compensation of:
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 emplo yed by an
entity or institution within The Oklahoma State
System of Higher Educ ation, other than a
comprehensive university, if the member 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, RBH No. 7783
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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
university, for creditable service authorized and
performed on or after July 1, 1996,
5. a member of the retirement system who, as of July
1, 1996, is subject to a maximum compensation
level pursuant to 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) (25) "Comprehensive university" shall mean: RBH No. 7783
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(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
(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 Technical 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 in corporates
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: RBH No. 7783
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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
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 option al employee shall have thirty (3 0)
days from the initial d ate 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 participation
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 . RBH No. 7783
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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
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. RBH No. 7783
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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
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 paragraph 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 as an
active member in the Oklahoma Public Employees Retirement System as RBH No. 7783
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an active member Defined Benefit Plan or the Oklahoma Public
Employees Retirement Sys tem Defined Contribution System, whichever
is applicable under the laws and rules governing those systems.
SECTION 3. AMENDATORY 70 O.S. 2021, Section 17-105, is
amended to read as follows:
Section 17-105. (1) (a) Any member wh o 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
person who initially became a member prior to July 1, 1 992,
regardless of whether there were breaks in s ervice 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 a lso 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 t here were breaks in service
after July 1, 1992. Any person who became a m ember after June 30,
1992, but prior to Novemb er 1, 2011, whose age and number of years
of creditable service total ninety (90) may be retired u pon proper
application for retirement and executing a retirement contr act as
established by the System . Any person who becomes a me mber on or
after November 1, 2011, who attains the age of sixty-five (65) years
or who reaches a normal retirement date purs uant to subparagraph (d)
of paragraph (24) (21) of Section 17-101 of this title having RBH No. 7783
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attained a minimum age of sixty (60) years ma y be retired upon
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 this
purpose, not less than sixty (60) days before the d ate of
retirement, provided that the Executive Director may waive the
sixty-day deadline for good cause shown as defined by the Board with
the System in a manner required by the Board of Trustees .
1. The employer shall provide the System with th e
following information for a retirin g 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 informati on by the deadline, 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 re tirement
eligibility, it is the emplo yer's responsibility to
reemploy the member, or retai n the member on the
payroll, for the time period required to reach
eligibility, not exce eding two (2) months. RBH No. 7783
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(b) An individual who becomes a member of the Teachers '
Retirement System of Oklahoma after July 1, 1967, through October
31, 2017, shall be emplo yed by the public schools, state colleges ,
or universities of Oklahoma for a minimum of five (5) yea rs and be a
contributing member of the Teachers ' Retirement System of Oklaho ma
for a minimum of five (5) years to qualify for monthly retirement
benefits from the Teachers' Retirement System of Oklaho ma.
An individual who becomes a member of the Teachers ' Retirement
System on or after November 1, 2017, shall be employed by the pub lic
schools, state colleges or universities of Oklahoma for a minimum of
seven (7) years and be a contributing member of the Teachers'
Retirement System of Oklahoma for a minimum o f seven (7) years to
qualify for monthly retirement benefits from the Teache rs'
Retirement System of Oklahoma.
(c) Any member Individuals becoming members after July 1, 1967,
to October 31, 2017, wit h 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 membership beginning with the sixth year following the
member's last contributing membership.
Individuals becoming members on or after No vember 1, 2017, with
seven (7) or more years of Oklahoma teaching service an d whose
accumulated contributions during such period have not been withdrawn
shall be given an indefinite extension of membe rship beginning with RBH No. 7783
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the sixth eighth year following his or her the member's last
contributing membership and shall become eligible to apply for
retirement and be retired upon attaining age fifty-five (55).
(2) An unclassified opt ional member who has reti red or who
retires at sixty-two (62) years of age or old er or whose retirement
is because of disability shall have his or her minimu m retirement
benefits calculated on an average salary of Five Thousand Three
Hundred Fifty Dollars ($5,350.00) or, if a larg er monthly allowance
would result, an amount arrived at pursuant to application of the
formula prescribed herein.
(3) No member shall receive a lesser retirement benefit than he
or she 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 of
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 minim um of ten
(10) years of teaching in Oklahoma schools 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 wh o does not qualify under the present
retirement System, or who has a minimum of thirty (30) years of
teaching in Oklahoma schools and has reached seventy (70) years of RBH No. 7783
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age prior to July 1, 1984, and i s not otherwise eligible to receive
any benefits from th e retirement system shall receive a minimum of
One Hundred Fifty Dollars ($1 50.00) 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 fo r such benefit and provide evidence to the
Teachers' Retirement System that the service was actuall y rendered.
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 the 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 surviving
spouse in one lump sum.
(4) The value of each year of prior servic e is the total
monthly retirement benefit divided by the number of years of
creditable service.
(5) Upon application of a member wh o is actively engaged in
teaching in Oklahoma or his or her upon application of the member 's
employer, any member who has be en a contributing member for ten (10)
years may be retired by the System subsequent to the execution and
filing thereof, on a disabi lity retirement allowance, provided that RBH No. 7783
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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 should be
retired. The System shall rely on and gi ve full consideration to
the conclusions and recommendations in the certified wri tten report
of the Medical Board of the Teachers ' Retirement System regardin g
the disability application of such member. If the Medical Board
does not find that a member appl ying for disability retir ement is
mentally or physically incapacitated for perfor mance of duty or
otherwise eligible for a disability retirement, the applica tion
shall then be considered by the Board of Trustees. If a member is
determined to be eligible f or disability benefits pu rsuant to the
Social Security System, then such determin ation shall entitle the
member to the authorized disability retirement allowance benefits
provided by law. For members who are not eligible for disability
benefits pursuant to the Soc ial 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
subsection for determining the eligibility of a person for such
disability benefits in making a de termination of eligibility for
disability benefits as authorized by this subsecti on.
(6) (a) A member who at the time of retirement has been found
to be permanently physically or mentally incapacitated to perform RBH No. 7783
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the necessary duties to continue in his or her the member's current
position shall receive a minimum monthly retirement pa yment 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 benefit 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 make such rules and regulations as it considers
proper to preserve equity in retirements u nder this provision, which
shall include a provision to protect the rights o f the member's
spouse.
(b) A member who has qualified for retirement benefits under
disability retirement shall have the total monthly payment deducted
from his or her accumulated contributions plus interest earned 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 mem ber had thirty (30) years or more of creditable
service and the death occurr ed after 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 the Option 2 Plan of Retirement RBH No. 7783
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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 attained the
age of sixty (60) years refuse to submit to at least one medical
examination in any such year by a physician or physician s designated
by the System his or her the member's allowance benefit 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 retirement allowance and the the member's average
final compensation and the annual benefit amount, and should the
Board of Trustees concur in such report , then the amount of his or
her pension the member's annual benefit shall be reduced to an
amount which, together with his or her retirement allowance and that
amount earnable by him or her added to the member's earnings from a
gainful occupation, shall equal the amount of his or her the
member's average final compensation. Should his or her the member's RBH No. 7783
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earning capacity be later increased, the amount of his or her
pension the member's annual benefit may be further modified,
provided the new pension shall not exce ed that amount of the pension
originally granted nor a n amount, which when a dded to the amount
earnable by the member, together with his or her annuity, equals the
amount of his or her average final compensation reduced.
(e) Should a disabled annuita nt be restored to active service,
his or her the member's disability retirement allowance benefit
shall cease and he or she the member shall again become a an active
member of the Teachers' Retirement System and shall make regular
contributions as required under this a rticle. 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 certificates 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 17-
101 et seq. of this title make application for withdrawal duly filed
with the System, not earlier than four (4) months after the date of
termination of such service as a teacher eligible employment, 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 RBH No. 7783
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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 designated in a manner required by the Board of
Trustees 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 interest as
hereinafter provided. In lieu of a lump-sum settlement at the death
of the member, the amount of money the member has on deposit in the
Teachers' Savings Fund and the money the member has on deposit in
the Teachers' Deposit Fund may be paid in monthly payments to a
designated beneficiary, who must be th e spouse, under the Maximum or
Option 1 Plan of Retirement providing the monthly payment shall be
not less than Twenty -five Dollars ($25.00) per month. The monthly
payment shall be the actuaria l equivalent of the amount becoming due
at the member's death based on the sex of the spouse a nd the age the
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
credit of such member do not exceed Two Hundred D ollars ($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 deceased and the
System, upon satisfactory proof of the death of such member and of RBH No. 7783
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the name or names of the person or persons who would be entitled t o
receive such contributions under the laws of descent and
distribution of the state, may authorize the payment of accumulated
contributions to such person or persons. A member terminating his
or her membership by withdrawal after June 30, 2003, shall hav e 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.
(b) With at least sixteen (16) but less than twenty-one (21)
years of membership, sixty pe rcent (60%) of such i nterest
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 inte rest
accumulations shall be paid.
(d) With at least twenty -six (26) years of membership, nine ty
percent (90%) of such interest accumulations shall be paid.
In case of death of an active membe r, 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 retirement allowance the Maximum
Retirement Allowance payable throughout life for such an amount as RBH No. 7783
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determined under this section, the member may select a retirement
allowance for a reduced amount payable under any of the following
options the present value of which is the actuarial equivalent
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 th at if a member retires before age
seventy (70), no election of an option shall be effective in cas e an
annuitant dies before the first payment due under such option ha s
been received.
(c) The first payment of any benefit selected shall be made on
the first day of the month following approval of the retirement by
the System. If the named designated joint annuitant under Option 2
or 3 dies at any time after the member 's retirement date, but before
the death of the member, the member shall return to the retirement
benefit Maximum Plan of Retirement , including any post-retirement
benefit increases the mem ber would have received had the member not
selected Option 2 or 3 of this subsection. The benefit retirement
allowance shall be determined at the date of dea th 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 m ember's remaining lifetime.
The member shall notify the Tea chers' Retirement System of Oklahoma RBH No. 7783
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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 T eachers' 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
allowance 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 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 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 Syste m at the time of the
member's retirement and, except as provided in paragraph (e) (d) of RBH No. 7783
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this subsection, cannot be changed after the effective date of the
member's retirement; or
Option 3. A member receives a reduced retirement allowance for
life. Upon the death of the member one -half (1/2) of the retirement
allowance paid the member shall be continued throughout the life of
the designated member's joint annuitant. A written designation of a
joint annuitant must be duly acknowledged and filed with the System
at the time of the member 's retirement and, except as provided in
paragraph (e) (d) of this subsection, cannot be changed after the
effective date of th e member's retirement; or
Option 4. Some Provided, the System may establish other
retirement options if certified by the actuary to be of equivalent
actuarial value to the member 's retirement allowance. Other
retirement options shall be presented to t he 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 membe r's expected benefit is less than fifty RBH No. 7783
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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 maximum retirement benefit plan
Maximum Plan of Retirement at the time of retirement may make a one-
time election to choose either Option 2 or 3 and name the membe r's
spouse as designated joint annuitant if the member marries after
making the initial election. S uch 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 e xamination conducted by a licensed physician
is required for purposes of determining good health. Such
examination must be approv ed by the Medical Board. The member shall
be required to provide proof of age for the new joint annuitant.
The System shall adjust the monthly benefit retirement allowance to
the actuarially equivalent amount based on the new designated joint
annuitant's age. The Board of T rustees shall promulgate rules to
implement the provisions o f this subsection.
(f) (e) A member who retires after the effective date of this
act July 1, 2010, and has selected a retirement allowance for a
reduced amount payable under one of the options provide d for in this
subsection may make a one -time irrevocable election to sele ct a
different option within sixty (60) d ays of the member's retirement
date. The beneficiary or joint annuitant designated by the member RBH No. 7783
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at the time of retirement shall not be chang ed 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 me mber under this subsection, and who is also a
beneficiary of a trust created under the Oklahoma Discre tionary and
Special Needs Trust Act, Section 175.81 et seq. of Title 60 of th e
Oklahoma Statutes, or a comparable Trust Act created under the laws
of another state, hereinafter collectively referred to as "Trust
Acts", may be a beneficiary or joint annuita nt under this subsection
by having the trustee of the trust established for t he benefit of
that individual named a s the legal beneficiary or joint annuita nt
under this subsection. The age of that beneficiary shall be used
for calculating any benefit payab le to the trust under this
subsection. The beneficiary of such a trust shall be treated as the
beneficiary or joint annuitant under this subsection excep t that
payments of any benefits due under this subsection shall be payable
to the lawfully appointed t rustee 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 tr ustee whom the
System, in good faith, believes to be the lawfully appointed
trustee. Any conflict bet ween 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 refer red to above shall be
resolved in favor of the statutes governing the System. If an RBH No. 7783
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eligible beneficiary or joint 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 ti me, the System will
acknowledge the trust as the beneficiary upon the submission of
adequate documentation of the existence of the trust. All other
provisions of this subsection shall apply to these subsequently
created trusts.
(h) (g) The Board of Trustees of 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 wit hout undue additional
administrative expense of the System.
(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 publ ic school
for salaries for the fiscal ye ar in which such payments are made.
Such payments shall be made in regular monthly installments in su ch
amounts as the governing board of any such public school, in its
judgment, shall determine to be reasonable and appropriate in view
of the length and type of service rendered by any such person to RBH No. 7783
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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 t ype of services performed, to
persons formerly employed by such public school who have retired or
been retired in accordance with the provisio ns of Section 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 such board shall be final.
(10) In addition to the teachers ' retirement herein provided,
teachers may voluntarily avail themselves of the Federal Social
Security Program upon a district basis.
(11) Upon the death of an in -service member, the Syst em shall
pay to the designated beneficiary of the member or, if there is no
designated beneficiary or if the desig nated 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 benefic iary 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 pr ovided in this subsection is only RBH No. 7783
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available when the member has designated one individual as the
designated beneficiary. The beneficiary or b eneficiaries of death
benefits in the amount not to exceed Eighteen Thousand Doll ars
($18,000.00), but exclusive o f any retirement benefit received by an
electing beneficiary based upon creditable service performed by the
deceased member, which are provide d 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 qualified
disclaimer must be in writing and will be an irrevocable and an
unqualified refusal to accept all or a port ion 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 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 per son.
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. RBH No. 7783
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(12) Upon the death of a retir ed member who has contributed to
the System, the retirement system shall pay to the designated
beneficiary of the member or, if there is no d esignated beneficiary
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 recogni zed
business entity licensed as required by law to provide funeral
services for the deceased member . The qualified disclaimer must be
in writing and will be an irrevocable and an unqualified refusal to
accept all or a portion of the death benefit. It mus t 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
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 subsection shall be deemed, for purposes of
federal income taxation, as life insurance proceeds and not as a
death benefit if the Internal Revenu e Service 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.
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estate pursuant to this subsectio n, 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 an y 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 sub ject 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.
(a) Before any applicable probate pr ocedure may be waived, the
System must be in receipt of the member's proof of death certificate
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 exis t;
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 RBH No. 7783
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deceased, current addresses, tax I.D. numbers if
known and current telephone 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 jurisdictio n,
c. a description of the personal propert y 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 System, and that
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 t o any of the deceased member 's
heirs; RBH No. 7783
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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 been 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. Sho uld the System have any
question as to the validity of any document presented by the
claiming heirs, or as to any statement or assertion contained
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 unpaid 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 representa tive of the deceased member. The System
is not required to inquire into the truth of any mat ter specified in
this subsection or into the payment of any estate tax liability.
(14) Upon the death of a retired memb er, the benefit payment
for the month in which the retired member died, if not previously
paid, shall be made to the joint annuitant if still living, to the RBH No. 7783
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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 retirement payments
made to a retired mem ber 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
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 t o 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
section 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 fo llows: RBH No. 7783
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Section 17-106.3 A. All employee and employer contributions
and dedicated revenues shall be deposited in the Oklahoma Teachers'
Retirement Fund in the State Treasury. The Board of Tr ustees shall
have the responsibility for the management of the O klahoma Teachers'
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 contribution 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 designated by the
Board of Trustees. All expenses of the administration of the Tax-
Sheltered Annuity Fund shall be paid from the Oklahoma Teachers'
Retirement Fund. The Board of Trustees may transfer m onies from the
custodian bank or trust company of the System to the Oklahoma
Teachers' Retirement Fund in the State Treasury 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: RBH No. 7783
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1. money on deposit in the Teachers ' Deposit Fund or Tax-
Sheltered Annuity Fund shal l be 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 deducted 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
Oklahoma and transferred to the Retirement Benefit Fund; the
interest income shall be distributed to the var ious funds on June 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 employers"), shall match, on a pro rata basis, in
accordance with subsection B of this section the contribut ions of RBH No. 7783
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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 with policies, regulations and proce dures
that apply uniformly to both federally assisted and ot her
activities, and be accorded consistent t reatment through application
of generally accepted accounting principles . The Board shall
approve the contribution rates for each fiscal year ending Ju ne 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 a pplied 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 schoo l year. Members shall only
be considered as providing servi ce to a summer school program if RBH No. 7783
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such service is provided pursuant to a separate summer school
contract between the member and the participat ing employer. The
term "summer school program" does not include services performed at
a participating employer off ering 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 se cond 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 establishe d in this subsection. The actuary retained by
the Board may recommend such rates using assumptions that apply to
the group of those members whose service is subject to the second
contribution rate.
C. All the assets of the retirement system shall be cred ited
according to the purpose for which they are held to one of eight
seven funds, namely: The Teachers' Savings Fund, the Retirement
Benefit Fund, the Interest Fund, the Permanent Retirement Fund, th e
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 sha ll be
accumulated the regular contributions from the compensation of
members, including applicable interest earnings prior to July 1,
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shall be made as specifically provided in each plan a vailable within
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 reduc ed thereby.
Every member shall be deemed to consent and agree to the deductions
made and provided for herein and payment of salary or compen sation,
less the deduction, shall be a full and complete discharge and
acquittance of all claims and demands whatso ever for the services
rendered by such person during the period 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
in such other manner as the Board may prescribe, the amounts to be
deducted, and each of the 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 member ship 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 Sect ion 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 RBH No. 7783
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Section 17-105 of this title shall be transferred to the Suspense
Fund.
4. Upon the retirement of a member, 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 b e transferred from
the Teachers' Savings Fund for those members drawing
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
the fund shall consis t 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 requirement s 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 benefits on such deposits,
the actuarial equivalent of a two-year period and each RBH No. 7783
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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 i n 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 t he Teachers'
Deposit Fund or Tax-Sheltered Annuity Fund shall not
be matched by the State of Oklahoma.
c. From the Retirement Benefit Fund shall be paid all
monthly retirement benefits allowances.
d. At the death of a retired member who has retired under
the Maximum Plan of Retirement, Option 1 or Option 4,
the balance of money the member has in the Teachers '
Savings Fund shall b e transferred to the Retirement
Benefit Fund and the amount due the beneficiary or his
or her estate under Option 1 or Option 4 shall be paid
from the Retirement Benefit Fund.
e. At the death of both a retired member and the retired
member's spouse, who had retired under Option 2 or 3,
any balance in the Teachers' Savings Fund shall be RBH No. 7783
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transferred from the T eachers' Savings Fund to the
Retirement Benefit Fund.
f. At the death of a retire d member who had retired under
Option 5, the balance of a ny monies the member had in
the Teachers' Savings Fund shall be transferred 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
receive the balance under 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 authorized by this act shall be paid
into the Interest Fund. On June 30, each year, interest shall be
transferred to the other f unds as herein provided.
7. The Permanent Retirement Fun d shall consist of the
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system, and transfers from the S uspense Fund, the principa l of which
is hereby held and dedicated as a perpetual endowment of the
retirement system and shall not be diver ted or appropriated to any
other cause or purpose unless specifically provided for in such
gifts, awards or bequests.
8. The Expense Fund shall be the fund from which the expense of
administration and maintenance of the retirement system shall be
paid. The Board of Trustees shall cause to be prepared and adopt
annually an itemized budget showing the amount required to d efray
the expenses for the ensuing fiscal year.
Transfers to and payments from th is fund shall be made as
follows: first, from the Intere st Fund; second, from any dedicated
revenue; and, third, from appropriation by the Oklahoma Legislature.
All monies for the operation of the Tea chers' Retirement System
of Oklahoma shall be paid from the Expense Fund upon the approval by
the Board of Trustees and 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 tra nsferred
to the fund as provided in this section and Sect ion 17-105 of this
title and obligations of the retirement system to any member or
person which cannot be legally disc harged.
10. Teachers' Deposit Fund. RBH No. 7783
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Any member may request, prior to a pay perio d, that his or her
employer make additional deposits for him or her, for tax-sheltered
annuity purposes. However, the amount deposited shall not exceed
the limits as defined in Section 402(g) and Sect ion 415 of the
Internal Revenue Code of 1986, as amende d, and applicable federal
regulations. All such deposits shall be credited to the member's
account in the Teachers' Deposit Fund for the purchase of a tax -
sheltered annuity. The amount thus accumulat ed, with earnings,
shall be used upon the member 's retirement, separation from service,
death or disability to p urchase 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 distribut ions in 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 RBH No. 7783
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payroll or claim the employer shall deli ver to
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 war rants in
favor of the Teachers ' Retirement System as sh own
by the payroll or claim.
(2) The treasurer or disburs ing officer upon delivery
of the warrants and a true copy of the payroll or
claims as provided above shall register th e
warrants as provided for the registration of
other school warrants, and shall d eliver 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 teach ers in the public schools,
the superintendent of a school district is hereby
designated to receive the Teachers ' Retirement
warrants from the tr easurer or proper disbursing
officer of the several sch ool districts for the
purpose of transmitting such warran ts and payroll
or claims to the Executive Director of the RBH No. 7783
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Teachers' Retirement System of the State of
Oklahoma. Any college or university or ot her
educational institution or agency operated in
whole or in part by the state shall have the
amount retained or deducted from the funds
regularly appropriated by the state for the
current maintenance for such educational
departments and institutions.
(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 mak e a list 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 T eachers' Retirement
System. If additions to or deducti ons from 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. RBH No. 7783
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(4) The State Treasurer shall fur nish annually to the
Board of Trustees a sworn statemen t of the amount
of the funds in his or her custody belong ing to
the retirement system. The records of the Board
of Trustees shall be open to public inspection
and any member of the retirement system s hall be
furnished with a statement of the amount of the
credit to his or her the member's individual
account upon written request by such member,
provided the Board of Trustees shall not 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 hi m
or her by this act shall render him or her or his
or her bondsman liable 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 Teachers' Retirement System
that a warrant, voucher or check issued to it
has, for any reason, been lost or never 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 RBH No. 7783
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any indemnifying bond or oth er requirements, 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
later presented for payme nt and same is paid
after a duplicate warrant, voucher or check has
been issued and paid to the Teachers' Retirement
System, and any loss sustained therefrom shall be
charged to the Interest Fund.
12. 11. Rollover Contributions and Direct Trustee -to-Trustee
Transfers from Other Pl ans.
Any member may purchase credit for service, to the extent
specified in this title, with rollovers from an e ligible retirement
plan as defined by the Internal Revenue Code of 1986, as amended
from time to time. A member may also purchase permissive se rvice
credit, as defined by Code Section 415(n)(3)(A), with a direct
trustee-to-trustee transfer from a governme ntal 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 excess RBH No. 7783
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of the amount necessary to purc hase such service credit shall not be
allowed.
13. 12. Retiree Medical Benefit 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 contri buted to this
subaccount to pay the retirement system's portion of the monthly
retiree health insurance benefits descr ibed in Section 1316.3 of
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 Statu tes.
The Retiree Medical Benefit Fund shall be adminis tered in accordance
with the requirements under Section 4 01(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 th e Oklahoma Statutes shall b e
deposited each month into th e Retiree Medical Benefit Fund.
SECTION 8. 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 RBH No. 7783
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of Oklahoma and stil l receive monthly retirement benefits subject to
the following limitations:
1. A retired member is not eligible to be employed by the
public schools of Oklahoma, in any capacity, for sixty (60) calendar
days between the retiree's last day of preretirement public
education employment and any postretirement public education
employment. For purposes of this section, the term "last day of
preretirement employment" shall mean the last day the employee is
required to be physically present on the job to complete the terms
of the employment contract or agreement or the member's effective
retirement date, whichever is later. 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 RBH No. 7783
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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 Security's full
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) (22) of Section 17-101 of
this title, and shall include any payment by a public
school for services rendered by a retired member who
is employed for any purpose whatsoever. Supplemental
retirement payments paid by a former public school RBH No. 7783
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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 allowed by the
Social Security Administration to workers between the
age of sixty-two (62) years and sixty-five (65) years
shall apply to retired members below the age of sixty-
two (62) years,
c. the limit on allowed earnings from the public schools
shall be automatically adjusted effective the first
day of January of each year to reflect the curr ent
Earnings Limitation for employees 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 m onths the
member is eligible to work 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 RBH No. 7783
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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 Jul y 1,
1991, shall not be restricted by the earnings limits
pursuant to this subparagraph until January 1, 1994.
To qualify for the provisions of this subparagraph,
the member must be employed less than one-half (1/2)
time compared to other full-time employees in similar
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 classified or nonclassified
personnel shall be able to receive annualized earnings from the
public school with no reduction in retirement benefits regardless o f
the amount of annualized earnings. For for a period of three (3)
years beginning July 1, 2017, members who have retired as of July 1 ,
2017, as active classroom teachers, who have been retired and RBH No. 7783
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receiving a benefit for at least one (1) year, and who ha ve 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, 2021, 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-
year period starts with the retiree's last day of preretirement
public education employment. Members returning under this section
shall not be subject to any earning limitations following the end of
the three-year periods described in this para graph. Members
returning under this section shall only be employed pursuant to a
temporary contract; and
4. A member shall be considered to be employed by a school
district to perform the duties ordinarily performed by classified or
nonclassified personn el if the member is hired by the school
district in the member's individual capacity to perform the duties
or if the member performs the duties through em ployment with a
proprietorship, part nership, corporation, limited liability company
or partnership, or any other business structure that has agreed or
contracted to provide the services to the school district. RBH No. 7783
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B. A public school district that employs a re tired member shall
be required to make contributions to the System for the retired
member in an amount as required in Section 17-108.1 and in paragraph
3 of subsection B of 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 Hou se of Representatives or the Legislative
Service Bureau shall not be considered as postretirement employment
with a public school of Oklahoma.
D. The Board of Trustees of the Teachers' Retirement System of
Oklahoma shall promulgate such rules as are neces sary to implement
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 9. REPEALER 70 O.S. 2021, Sections 17-104 and
17-114.2, are hereby repealed.
SECTION 10. This act shall become effective July 1, 2023.
SECTION 11. It being immediately necessary for the preservation RBH No. 7783
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of the public peace, health or safety, an emergency is hereby
declared to exist, by reaso n whereof this act shall take effect and
be in full force from and after its passage and approval.
59-1-7783 CMA 02/28/23