An Act
ENROLLED HOUSE
BILL NO. 2528 By: Lepak of the House
and
Pemberton and Garvin of the
Senate
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, 17-104, 17-105, 17-105.1,
17-106.3, 17-107, 17-108, and 17-116.10 (70 O.S.
Supp. 2023, Section 17 -101), which relate to the
Teachers’ Retirement System of Oklahoma; deleting
terms; modifying definitions; modifying how members
shall make proper application for retirement;
providing membership details; modifying requirements
for reporting prior service credit; providing
procedure at joint annuitant ’s death; modifying
retirement options; releasing System of liability
under certain circumstan ces; modifying how cer tain
expenses are to be paid; modifying earnings limits;
updating statutory language; updating statutory
references; repealing 70 O.S. 2021, Section 17 -114.2,
which relates to the Teachers ’ Retirement System of
Oklahoma; providing an effective date; and de claring
an emergency.
SUBJECT: Retirement
BE IT ENACTED BY THE PEOPLE OF THE 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. 2023,
Section 17-101), is amended to read as follows:
Section 17-101. The following words and phrases as used in
Section 17-101 et seq. of this title, unless a different meaning is
clearly required by the context, shall have the following meanings: RBH No. 7783
ENR. H. B. NO. 2528 Page 2
(1) 1. “Retirement system” shall mean the Teachers’ Retirement
System of Oklahoma, as defined in Section 17 -102 of this title.;
(2) 2. “Public school” shall mean a school district, a state
college or university, the State Board of Education, 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 operating 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 tuition-free, nonprofit alternative
school of choice that provides education, therapeutic counseling,
and outreach programs which is aligned with a school district an d
which receives grant funds from governmental sources .;
(3) 3. “Classified personnel” shall mean any teacher,
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 employee of any state department, board, board of regents, or
board of trustees, who is in a supervisory or an administrative
position, the function of which is primarily devoted to public
education, shall be considered classified personnel under the
meaning of Section 17 -101 et seq. of this title, at the discretion
of the Board of Trustees of the Teachers’ Retirement System of
Oklahoma. The term “teacher” shall also include instructors and
counselors employed by the Department of Corrections and holding
valid teaching certificates issued by the State Department of
Education. Provided, that a person employed by the Department of
Corrections as an instructor or counselor shall have been actively
engaged in the teaching profession for a period of not less than
three (3) years prior to employment to be eligible to participate in
the Teachers’ Retirement System of Oklahoma. The Department of
Corrections shall contribute the employer’s share to the Teachers ’
Retirement System of Oklahoma.;
(4) 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 personnel not in a
supervisory capacity, b us drivers, noncertified or nonregistered
nurses, noncertified librarians, and clerical employees of the
public schools, state colleges, universities, or any state
department, board, board of regents, or board of trustees, the RBH No. 7783
ENR. H. B. NO. 2528 Page 3
functions of which are primar ily devoted to public education and
whose salaries are paid wholly or in part from public funds .;
(5) 5. “Employer” shall mean the state and any of its
designated agents or agencies with responsibility and authority for
public education, such as boards o f education of elementary and
independent school districts, boards of regents, boards of control,
or any other agency of and within the state by which a person may be
employed for service in public education. Employer shall also mean
the board of director s of a tuition free 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 .;
(6) 6. “Member” shall mean any teacher or other employee
included in the membership of the system as provided in Section 17 -
103 of this title.;
(7) 7. “Board of Trustees” shall mean the board provided for in
Section 17-106 of this title to administer the retirement system.;
(8) “Service” shall mean service as a classified or
nonclassified optional employee in the public school system, or any
other service devoted primarily to public education in the state.
(9) 8. “Prior service” shall mean withdrawn service rendered
prior to July 1, 1943., provided:
a. before July 1, 2021, prior service shall exclude
service attributable to any membership period during
which nonclassified optional members voluntarily
ceased contributions while remaining employed in
public education or voluntarily withdrew from
membership in the System, and
b. on and after July 1, 2021, prior service shall exclude
service attributable to any period of time during
which nonclassified optional members opted out of
membership in the System;
(10) 9. “Membership service” shall mean service as a member of
the classified or nonclassified optional personnel as defined in
paragraphs (3) 3 and (4) 4 of this section.;
RBH No. 7783
ENR. H. B. NO. 2528 Page 4
(11) 10. “Creditable service” shall mean membership service
plus any prior other service authorized under this title.;
(12) 11. “Annuitant” shall mean any person in receipt of a
retirement allowance as provided in this title. an annuity as
defined in paragraph 15 of this section;
(13) 12. “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) 13. “Earnable compensation” shall mean the full rate o f
the compensation that would be payable to a member if he who worked
the full normal working time .;
(15) 14. “Average salary”:
(a)
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 of Oklahoma 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 subsection (28)
paragraph 25 of this section. Provided, no member
shall retire with an average salary in excess of
Twenty-five Thousand Dollars ($25,000.00) unless the
member has made the required election and paid the
required contributions on such salary in excess of
Twenty-five Thousand Dollars ($25,000.00), or unless an
eligible member fulfills the requirements of Section
17-116.2C of this title in order to have pre -cap
removal service included in the retirement benefit
computation of the member using the regular ann ual
compensation of the member for any pre -cap removal year
of service so included subject to the maximum average
salary amount, and
(b)
b. for those members who join the System after June 30,
1992, shall mean the average of the salaries for five RBH No. 7783
ENR. H. B. NO. 2528 Page 5
(5) consecutive years on which the highest contribution
contributions to the Teachers’ Retirement System was of
Oklahoma were paid. Only salary on which required
contributions have been made may be used in computing
average salary.;
(16) 15. “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 fr om money
provided by the employer. All pensions shall be payable in equal
monthly installments.
(18) “Monthly retirement allowance”
16. “Retirement allowance” is one-twelfth (1/12) of the annual
retirement allowance benefit which shall be payable mont hly.;
(19) 17. “Retirement Benefit Fund” shall mean the fund from
which all retirement benefits shall be paid based on such mortality
tables as shall be adopted by the Board of Trustees .;
(20) 18. “Actuary” shall mean a person or firm especially
skilled through training and experience in financial calculation
respecting the expectancy and duration of life .;
(21) 19. “Actuarial equivalent” shall mean a benefit of equal
value when computed upon the basis of such mortality and other
tables as shall be ad opted by the Board of Trustees.;
(22) 20. The masculine pronoun, whenever used, shall include
the feminine.;
(23) 21. “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 mortality and interest
assumptions adopted by the Board of Trustees .;
(24) 22. “Normal retirement age” means the earliest date upon
which:
(a)
RBH No. 7783
ENR. H. B. NO. 2528 Page 6
a. a member reaches the age sixty -two (62) with respect
to a member whose firs t creditable service occurs
prior to November 1, 2011, unless the member reaches a
normal retirement date pursuant to subparagraph (c) c
or subparagraph (d) d of this paragraph,
(b)
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 with respect
to a member whose first creditable service occurs on
or after November 1, 2011, reaches a normal retirement
date pursuant to subparagraph (d) d of this paragraph
having attained a minimum age of sixty (60) years,
(c)
c. the age at which the sum of a member’s age and number
of years of creditable service total eighty (80), with
respect to a member whose first creditable service
occurred prior to July 1, 1992, and who does n ot reach
a normal retirement age pursuant to subpa ragraph (a) a
of this paragraph, or
(d)
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) a
of this paragraph.;
(25) 23. “Regular annual compensation” means salary plus fringe
benefits, excluding t he flexible benefit allowance pursuant to
Section 26-105 of this title and for purposes pursuant to Section
17-101 et seq. of this title . For purposes of this definition,
regular annual compensation shall include:
(a)
RBH No. 7783
ENR. H. B. NO. 2528 Page 7
a. salary which accrues on a regula r basis in proportion
to the service performed includin g payments for staff
development,
(b)
b. amounts that would otherwise qualify as salary under
paragraph (a) subparagraph a of this subsection
paragraph but are not received directly by the member
pursuant to a good faith 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)
c. group health and disability insurance, group term life
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, an d
(d)
d. excluded from regular annual compensation are:
1.
(1) expense reimbursement payments,
2.
(2) office, vehicle, housing, or other maintenance
allowances,
3.
(3) the flexible benefit allowance provided pursuant
to Section 26-105 of this title,
4.
(4) payment for unused vacation and sick leave, RBH No. 7783
ENR. H. B. NO. 2528 Page 8
5.
(5) any payment made for reason of termination or
retirement not specifically provided for in
subparagraphs(a) divisions (1) through (c) (3) of
this subsection subparagraph,
6.
(6) maintenance or other nonmon etary compensation,
7.
(7) payment received as an independent contractor or
consultant, pursuant to a lawful contract which
complies with the requirements of subsection B of
Section 6-101.2 of this title,
8.
(8) any benefit payments not made pursuant to a valid
employment agreement,
9.
(9) compensation for clinical related activity
performed in the University of Oklahoma Health
Sciences Center (OUHSC) Professional Practice
Plan or Oklahoma State University Center for
Health Sciences (OSU -CHS) Professional Practice
Plan, and
10.
(10) any other compensation not described in
subparagraphs (a) a through (c) c of this
subsection. paragraph;
(26) “Teacher” means classified personnel and nonclassified
optional personnel.
(27) 24. “Active classroom teacher” means a person employed by
a school district to teach students specifically identified classes
for specifically identified subjects during the course of a RBH No. 7783
ENR. H. B. NO. 2528 Page 9
semester, and who holds a valid certificate or license issued by and
in accordance with the rules and regul ations of the State Board of
Education.;
(28) 25. “Maximum compensation level” shall, except as
otherwise authorized pursuant to the provisions of Section 17 -116.2C
of this title, mean:
(a)
a. Twenty-five Thousand Dollars ($25,000.00) for
creditable service authorized and performed prior to
July 1, 1995, for members not electing a higher
maximum compensation level,
(b)
b. Forty Thousand Dollars ($40,000.00) for creditab le
service authorized and performed prior to July 1,
1995, for members electing a maximu m compensation
level in excess of Twenty -five Thousand Dollars
($25,000.00),
(c)
c. Twenty-seven Thousand Five Hundred Dollars
($27,500.00) for members who, as of Jun e 30, 1995, had
elected to have a maximum compensation level not in
excess of Twenty-five Thousand Dollars ($25,000.00),
and who were employed by an entity or institution
within The Oklahoma State System of Higher Education
for creditable service authorize d and performed on or
after July 1, 1995, but not later than June 30, 1996,
if such member does not elect a higher maximum
compensation level for this period as authorized by
Section 17-116.2A of this title,
(d)
d. Thirty-two Thousand Five Hundred Dollar s ($32,500.00)
for members employed by a comprehensive university if
the member meets the re quirements imposed by Section
17-116.2A of this title and the member elects to
impose a higher maximum compensation level for service RBH No. 7783
ENR. H. B. NO. 2528 Page 10
performed on or after July 1, 1995, but not later than
June 30, 1996,
(e)
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 employed
by an entity or institution within The Oklahoma State
System of Higher Education for creditable service
authorized and performed on or after July 1, 1995, but
not later than June 30, 1996, if such member does not
elect a higher maximum compensation level fo r this
period as authorized by Section 17-116.2A of this
title,
(f)
f. Forty-nine Thousand Dollars ($49,000.00) for members
employed by a comprehensive university if the member
meets the requirements imposed by Section 17 -116.2A of
this title and the mem ber elects to impose a higher
maximum compensation level for service performed on or
after July 1, 1995, but not later than June 30, 1996,
(g)
g. the following amounts for creditable service
authorized and performed by members employed by a
comprehensive university, based upon the election of
the member in effect as of June 30, 1995:
1.
(1) for members who elected a maximum compensation
level not in excess of Twenty -five Thousand
Dollars ($25,000.00):
(i)
(a) Thirty-two Thousand Five Hundred Dollars
($32,500.00) for service authorized and
performed on or after July 1, 1996, but not
later than June 30, 1997, RBH No. 7783
ENR. H. B. NO. 2528 Page 11
(ii)
(b) Thirty-seven Thousand Five Hundred Dollars
($37,500.00) for service authorized and
performed on or after July 1, 1997, but not
later than June 30, 1998,
(iii)
(c) Forty-two Thousand Five Hundred Dollars
($42,500.00) for service authorized a nd
performed on or after July 1, 1998, but not
later than June 30, 2000,
(iv)
(d) Forty-seven Thousand Five Hundred Dollars
($47,500.00) for service authorized and
performed on or after July 1, 2000, but not
later than June 30, 2001,
(v)
(e) 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)
(f) 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)
(g) 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, 2004,
(viii)
RBH No. 7783
ENR. H. B. NO. 2528 Page 12
(h) 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)
(i) Seventy-two Thousand Five Hundred Dollars
($72,500.00) for service authorized and
performed on or after July 1, 2005, but not
later than June 30, 2006,
(x)
(j) Seventy-seven Thousand Five Hundred Dollars
($77,500.00) for service authorized and
performed on or after July 1, 2 006, but not
later than June 30, 2007, and
(xi)
(k) the full amount of regular annual
compensation for service authorize d and
performed on or after July 1, 2007, and
2.
(2) for members who elected a maximum compensation
level in excess of Twenty -five Thousand Dollars
($25,000.00):
(i)
(a) 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)
(b) Fifty-four Thousand Dollars ($54,000.00) for
service authorized and performed on or after
July 1, 1997, but not later than June 30,
1998,
RBH No. 7783
ENR. H. B. NO. 2528 Page 13
(iii)
(c) 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)
(d) 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)
(e) Sixty-nine Thousand Dollars ($69,000.00) for
service authorized and performed on or after
July 1, 2001, but not later than June 30,
2002,
(vi)
(f) 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)
(g) Seventy-nine Thousand Dollars ($79,000.00)
for service authorized and performed on or
after July 1, 2003, but not later than June
30, 2004,
(viii)
(h) Eighty-four Thousand Dollars ($84,000.00)
for service authorized and perfo rmed on or
after July 1, 2004, but not later than June
30, 2005,
(ix)
RBH No. 7783
ENR. H. B. NO. 2528 Page 14
(i) Eighty-nine Thousand Dollars ($89,000.00 )
for service authorized and performed on or
after July 1, 2005, but not later than June
30, 2006,
(x)
(j) Ninety-four Thousand Dollars ($94,0 00.00)
for service authorized and performed on or
after July 1, 2006, but not later than June
30, 2007, and
(xi)
(k) the full amount of regular annual
compensation for service authorized and
performed on or after July 1, 2007, and
(h)
h. the full amount of regular annual compensation of:
1.
(1) a member of the retirement system not employed by
an entity or institution within The Oklahoma
State System of Higher Education for all
creditable service authorized and performed on or
after July 1, 1995,
2.
(2) a member of the retirement system first employed
on or after July 1, 1995, by an entity or
institution within The Oklahoma State System of
Higher Education for all creditable service
authorized and performed on or after July 1,
1995, but not later than June 3 0, 1996,
3.
(3) a member of the retirement system employed by an
entity or institution within The Okla homa State
System of Higher Education, other than a
comprehensive university, if the member elects to RBH No. 7783
ENR. H. B. NO. 2528 Page 15
impose a higher maximum compensation level for
service performed on or after July 1, 1995, but
not later than June 30, 1996, pursuant to
subsection B of Section 17-116.2A of this title,
4.
(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 System
of Higher Education including a comprehensive
university, for creditabl e service authorized and
performed on or after July 1, 1996,
5.
(5) a member of the retirement system who, as of July
1, 1996, is subject to a maximum compe nsation
level pursuant to paragraph (g) subparagraph g of
this subsection paragraph if the member
terminates service with a comprehensive
university and is subsequently reemployed by a
comprehensive university,
6.
(6) a member of the retirement system empl oyed by a
comprehensive university for all service
performed on and after July 1, 2007, or
7.
(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 average salary
of the member subjec t to the maximum average
salary amount.; and
(29) 26. “Comprehensive university” shall mean:
(a)
RBH No. 7783
ENR. H. B. NO. 2528 Page 16
a. the University of Oklahoma and all of its constituent
agencies including the University of Oklahoma Health
Sciences Center, the University of Oklahoma L aw
Center, and the Oklahoma Geological Survey, and
(b)
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
OSU-Oklahoma City, the Oklahoma State University
Institute of Technology -Okmulgee, and Oklahoma State
University-Tulsa.
(30) “Retirement contract” means the document prepared by the
Teachers’ Retirement System upon member request, which incorporates
member’s selected retirement option, and which must be executed and
submitted to the Teachers’ Retir ement 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 Retiremen t
Plan for Comprehensive Universities Act, the membership of the
retirement system shall consist of the following:
A. All classified personnel shall become members of th e
retirement system as a condition of their employment ;.
B. For the period from Aug ust 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 pur suant to the Teachers’ Retirement System of
Oklahoma. On or after the effective date of this act July 1, 2021,
all nonclassified optional personnel regularly 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 Section 17-101 et seq. of this title . RBH No. 7783
ENR. H. B. NO. 2528 Page 17
C. 1. A nonclassified Nonclassified optional employee
personnel shall have thirty (30 ) days from the initial date of hire
or eligibility to make a one-time irrevocable written election to
opt out of participation in the System , in a manner required by the
Board of Trustees. If an eligible employee fails to make an
election within the thir ty-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.
3. If an eligible nonclassified optional employee elects to
participate does not timely opt out of participation in the System,
the such an employee shall make emplo yee 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 Section 17 -
108.1 of this title. Nothing in this paragraph subsection 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 Nonclassified optional employee personnel
who opts opt out of participation in the System shall be ineligible
for future participation in t he System; provided, however, that if
the such an employee is hired for a classified position, he or she
shall become a member of the System pursuant 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 irrevocable written
election to participate in o r 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 effective date of this
act, the employee shall be deemed to participate in the System,
subject to the provisions of paragraph 3 of this subsection.
D. The Board of Trustees may, in its discretion, deny the right
to become members to any class of members whose compensation is only
partly paid by the state, or who is serving on a temporary or other
than per annum basis, and it also may, in its discretion, make
optional with the individual entrance into the retirement system for RBH No. 7783
ENR. H. B. NO. 2528 Page 18
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 mem ber. The
provisions of this paragraph subsection shall not apply to any
member of the Teachers’ Retirement System of Oklahoma who has been a
member of such classes of military se rvices 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 of Oklahoma who becomes employed by the
State Department of Education for the first ti me on or after
November 1, 2019, shall have the option to remain a member of the
Teachers’ Retirement System of Oklahoma subject to any applicable
limitations placed on retired mem bers returning to work or may
choose to participate as an active member in the Oklahoma Public
Employees Retirement System as an active member defined benefit plan
or the Oklahoma Public Employees Retirement System defined
contribution system, whichever is applicable under the laws and
rules governing those systems .
SECTION 3. AMENDATORY 70 O.S. 2021, Section 17 -104, is
amended to read as follows:
Section 17-104. (1) Under such rules and regulations as the
Board of Trustees shall adopt, each member who became a member
within one (1) year after July 1, 1943, shall file a detailed
statement of all service as a member rendered by him prior to the
date of establishment for which he claims credit.
(2) A. The Board of Trustees of the Teachers’ Retirement System
of Oklahoma shall fix and determine by appropr iate rules and
regulations how much service in any year is equivalent to one (1)
year of service, but in no case shall it allow any credit for a
period of absence without pay of more than one (1) month’s duration
nor shall more than one (1) year of service be creditable for all
services in one (1) school year. Service rendered for a regular
school year shall be equivalent to one (1) year’s year of service.
RBH No. 7783
ENR. H. B. NO. 2528 Page 19
(a) Prior service credit sh all be granted to any member who
shall become a member when he has compl eted one (1) year of
membership service credit. Prior service shall include years taught
in what is now Oklahoma preceding statehood.
1. Subject to the above restrictions and to such other rules
and regulations as the Board of Trustees may adopt, the Bo ard of
Trustees shall verify, as soon as practicable after the filing of
such statements of service, the service therein claimed.
2. Upon verification of the statements of service, the Board of
Trustees shall issue prior service certificates certifying t o each
member the length of service rendered prior to the date of
establishment, with which he is credited on the basis of his
statement of service. So long as membership continues, a p rior
service certificate shall be final and conclusive for retirement
purposes as to such service; provided, however, the Board of
Trustees may, upon request of the member, modify or correct his
prior service certificate. The prior service credit and cert ificate
of a member who has retired may be corrected, if incorrect. W hen
the correction constitutes an addition to the retired member’s
service record, the Board of Trustees may grant allowance
retroactively as the facts justify.
When membership ceases su ch prior service certificate shall
become void. Should the former
B. If a member return who has previously withdrawn service
returns to service in Oklahoma and completes one (1) year of
membership service credit , he shall again become a member not
entitled to prior service credit, with the provision that he the
member may reestablish his prior service credit by redepositing in
the appropriate fund the amount formerly withdrawn, with the
interest at five percent (5%) per annum from the date membership
ceased to the date of redeposit; provided, however, effective
January 1, 1990, the rate of interest provided herein shall be ten
percent (10%) per annum. No member shall be permitted to take
advantage of this provision for restoration of redeposit prior
service more than one time.
(b) Any person who is, or shall become, a member of the
Teachers’ Retirement System may receive prior service credit for not
more than five (5) years of service rendered in public schools,
state colleges, or state universities outsi de this state prior to
July 1, 1943, subject to the regulations of the Board of Trustees, RBH No. 7783
ENR. H. B. NO. 2528 Page 20
provided he is not receiving, and is not eligible to receive,
retirement credit or benefits for this service in any other teacher
retirement system, subject to the fo llowing provision:
1. The member is required to have two (2) yea rs of creditable
service teaching earned in Oklahoma for each year of out -of-state
credit granted.
(3) Any teacher who served in the Armed Forces of the United
States of America prior to Jul y 1, 1943, during World War I or World
War II, whose service was terminated by an honorable discharge and
who qualifies for prior service credit under the terms of this act
shall be granted prior service teaching credit by the Board of
Trustees for the per iod of such service in the Armed Forces,
occurring prior to July 1, 1943, upon presentation to the Board of
Trustees of satisfactory proof of such service in the Armed Forces.
The amount of prior service teaching credit to be allowed such
teacher shall be determined by the Board of Trustees
C. The Board of Trustees may adopt such other rules and
regulations to verify, process, and credit the service herein
claimed.
SECTION 4. AMENDATORY 70 O.S. 2021, Section 17 -105, is
amended to read as follows:
Section 17-105. (1) (a) A. 1. Any member who has attained
age fifty-five (55) or who has completed thirty (30) years of
creditable service, as defined in Section 17 -101 of this title, or
for any person who initially became a member pr ior to July 1, 1992,
regardless of whether there were breaks in service 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 Teachers’ Retirement System and
executing a retirement contract of Oklahoma. Such a retirement date
will also apply to any person who became a member of the sending
system as defined in this act Section 17-116.2 of this title, prior
to July 1, 1992, regardless of whether there were breaks in service
after July 1, 1992. Any person who became a member after June 30,
1992, but prior to November 1, 2011, whose age and number of years
of creditable service total ninety (90) may be retired upon proper
application for retirement and executing a retirement contract as
established by the System. Any person who becomes a member on or
after November 1, 2011, who attains the age of sixty -five (65) years
or who reaches a normal retirement date pursuant to subparagraph (d) RBH No. 7783
ENR. H. B. NO. 2528 Page 21
d of paragraph (24) 22 of Section 17-101 of this title having
attained a minimum age of sixty (60) years may be retired upon
proper application for retirement and executing a retirement
contract 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 date 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. 2. The employer shall provide the System with the following
information for a retiring member, no later than the fifteenth day
of the month of retirement: last day physically on the job; last
day on payroll; any regular compensation not already reported to the
System; and final unused sick leave balance.
2. 3. Failure to submit this information by the deadline, or
errors in submitted information that result in a disqualification of
retirement eligibility , shall be the responsibility of the employer.
In cases where the error results in disqualification of retirement
eligibility, it is the employer’s responsibility to reemploy the
member, or retain the member on the payroll, for the time period
required to reach eligibility, not exceeding two (2) months.
(b) B. An individual who becomes a member of the Teachers’
Retirement System of Oklahoma after July 1, 1967, through October
31, 2017, shall be employed by the public schools, state colleges,
or universities of Oklahoma for a minimum of five (5) years and be a
contributing member of the Teachers’ Retirement System of Oklahoma
for a minimum of five (5) years to qualify for monthly retirement
benefits from the Teachers’ Retirement System of Oklahoma.
An individual who becomes a member of the Teachers’ Retirement
System of Oklahoma on or after November 1, 2017, shall be employed
by the public 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 of sev en (7)
years to qualify for monthly retirement benefits from the Teachers’
Retirement System of Oklahoma.
(c) Any member C. Individuals becoming members after July 1,
1967, through October 31, 2017 , with five (5) or more years of
Oklahoma service and wh ose accumulated contributions during such
period have not been withdrawn shall be given an indefinite RBH No. 7783
ENR. H. B. NO. 2528 Page 22
extension of membership beginning with the sixth year following the
member’s last contributing mem bership.
Individuals becoming members on or after Novem ber 1, 2017, with
seven (7) 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 membershi p beginning with
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
D. Nonclassified optional member personnel who has have retired
or who retires retire at sixty-two (62) years of age or older or
whose retirement is because of disability shall have his or her
minimum retirement benefits calculated on an average salary of Five
Thousand Three Hundred Fift y Dollars ($5,350.00) or, if a larger
monthly allowance would result, an amount arrived at pursuant to
application of the formula prescribed herein.
(3) E. No member shall receive a lesser retirement benefit than
he or she the member would have received u nder the law in effect at
the time he or she the member retired. Any individual under the
Teachers’ Retirement System of Oklahoma, 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
nonclassified optional group to the classified group for the purpose
of calculating retirement benefits.
Any individual regardless of residence, who has a minimum of ten
(10) years of teaching in Oklahoma schools prior to J uly 1, 1943, or
who taught in Oklahoma schools pri or to 1934 and thereafter taught a
minimum of ten (10) years and who does not qualify under the present
retirement System, or who has a minimum of thirty (30) years of
teaching in Oklahoma schools and has r eached seventy (70) years of
age prior to July 1, 1984, and is not otherwise eligible to receive
any benefits from the retirement system shall receive a minimum of
One Hundred Fifty Dollars ($150.00) per month in retirement benefits
from the Teachers’ Reti rement System of Oklahoma plus any general
increase in benefits for annuitants as may be provided hereafter by
the Legislature. Each individual must apply to the Teachers’
Retirement System for such benefit and provide evidence to the
Teachers’ Retirement System that the service was actually rendered.
The surviving spouse of any person who made application for the RBH No. 7783
ENR. H. B. NO. 2528 Page 23
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 months during the
lifetime of the deceased person that he or she was eligible for but
did not receive the benefit. Upon approval of the application by
the Board of Trustees, the benefit shall be paid to the surviving
spouse in one lump sum.
(4) F. The value of each year of prior service is the total
monthly retirement benefit divided by the number of years of
creditable service.
(5) G. Upon application of a member who is actively engaged in
teaching in Oklahoma or his or her upon application of the member’s
employer, any member who has been a contributing member for ten (10)
years may be retired by the System subsequent to the execution and
filing thereof, on a disability retirement allowance, provided that
it is found by the Medical Board after medical examination of su ch
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 give ful l consideration to
the conclusions and recommendations in the certified written report
of the Medical Board of the Teachers’ Retirement System of Oklahoma
regarding the disability application of such member. If the Medical
Board does not find that a membe r applying for disability retirement
is mentally or physically incapacitated for performance of duty or
otherwise eligible for a disability retirement, the application
shall then be considered by the Board of Trustees. If a member is
determined to be elig ible for disability benefits pursuant to the
Social Security System, then such determination shall entitle the
member to the authorized disability retirement allowance benefits
provided by law. For members w ho are not eligible for disability
benefits pursuant to the Social Security System Administration, 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 deter mining the eligibility of a person for such
disability benefits in making a determination of eligibility for
disability benefits as authorized by this subsection.
(6) (a) H. 1. A member who at the time of retirement has been
found to be permanently phys ically or mentally incapacitated to
perform the necessary duties to continue in his or her the member’s
current position shall receive a minimum monthly retirement payment
for life or until such time as the member may be found to be RBH No. 7783
ENR. H. B. NO. 2528 Page 24
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 to the member after July 1, 1992, and shall not be r etroactive.
The Board of Trustees is empowered to make such rules and
regulations as it considers proper to preserve equity in retirements
under this provision, which shall include a provision to protect the
rights of the member’s spouse.
(b) 2. A member who has qualified for retirement benefits under
disability retirement shall have the total monthly payment deducted
from his or her the member’s accumulated contributions plus interest
earned and any money re maining in the member’s account after the
above deductions at the death of the member shall be paid in a lump
sum to the beneficiary or to the estate of the member. Provided, if
the deceased disabled member had thirty (30) years or more of
creditable service and the death occurred 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 Pla n of Retirement
provided for in paragraph 2 of subsection (8) K of this section in
lieu of the death benefit provided for in this subsection paragraph
and in subsection (12) Q of this section.
(c) 3. 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 th e
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 physicians designated
by the System his or her allowance , the member’s benefits may be
discontinued until he or she the member submits to such examination.
(d) 4. Should the Medical Board report and certify to the Board
of Trustees that such disabled annuitant is engaged in or is abl e to
engage in a gainful occupation paying m ore than the difference
between his or her retirement allowance and 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 ben efit shall be reduced to an
amount which, together with his or her retirement allowance and that RBH No. 7783
ENR. H. B. NO. 2528 Page 25
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 compens ation. Should his or her the member’s
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 exceed that amo unt of the pension
originally granted nor an amount, which when added to the amount
earnable by the member, together with his or her annuity, equals the
amount of his or her average final compensation reduced.
(e) 5. Should a disabled annuitant be restore d 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 of Oklahoma and
shall make regular contributions as required under this article.
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) I. Should a member before retirement 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 employment with a
participating employer within the System , the contribution standing
to the credit of his or her the member’s individual account in the
Teachers’ Savings Fund shall be pai d to him or her the member or, in
the event of his or her the member’s death before retirement, shall
be paid to such person or persons as he or she the member shall have
nominated by written designation, duly exec uted designated in a
manner required by th e Board of Trustees and filed with the System;
provided, however, if there be is no designated beneficiary
surviving upon such death, such contributions shall be paid to his
or her the member’s administrators, exec utors, 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 Teac hers’ Deposit Fund may be paid
in monthly payments to a designated beneficiary, who must be the
spouse, under the Maximum or Option 1 Plan of Retirement providing
the monthly payment shall be not less than Twenty -five Dollars
($25.00) per month. The month ly payment shall be the actuarial
equivalent of the amount becoming due at the member’s death based on RBH No. 7783
ENR. H. B. NO. 2528 Page 26
the sex of the spouse and the age the spouse has attained at the
last birthday prior to the member’s death. Provided further, if
there be is no designated beneficiary surviving upon such death, and
the contributions standing to the credit of such member do not
exceed Two Hundred Dollars ($200.00), no part of such contributions
shall be subject to the payment of any expense of the last illness
or funeral of the deceased member or any expense of ad ministration
of the estate of such deceased and the System, upon satisfactory
proof of the death of such member and of the name or names of the
person or persons who would be entitled to receive such
contributions under the laws of descent and 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 have the interest computed
at a rate of interest determined by the Board o f Trustees and paid
to him or her the member subject to the following schedule:
(a) 1. If termination occurs within sixteen (16) years from the
date membership began, fifty percent (50%) of such interest
accumulations shall be paid.;
(b) 2. With at least sixteen (16) but less than twenty-one (21)
years of membership, sixty percent (60%) of such interest
accumulations shall be paid .;
(c) 3. With at least twenty -one (21) but less than twenty -six
(26) years of membership, seventy-five percent (75%) of su ch
interest accumulations shall be paid.; and
(d) 4. With at least twenty -six (26) years of membership,
ninety percent (90%) of such interest accumulations shall be paid.
In case of death of an active member, the int erest shall be
calculated and restore d to the member’s account and paid to his or
her the member’s beneficiary.
(8) (a) J. 1. In lieu of his or her retirement allowance the
Maximum Retirement Allowance payable throughout life for such an
amount as determined under this section, the member may select a
retirement allowance for a reduced amount payable under any of the
following options listed in subsection K of this section 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 RBH No. 7783
ENR. H. B. NO. 2528 Page 27
attains age seventy (70) and the option shall be binding and cannot
be changed. Provided further that if a member retires before age
seventy (70), no election of an option shall be ef fective in case an
annuitant dies before the first payment due under such option has
been received.
(c) 2. The first payment of any benefit selected shall be made
on the first day of the month following approval of the r etirement
by the System. If the n amed 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 post-retirement benefit increases the member would have
received had the member not selected Option 2 or 3 of this pursuant
to paragraph 2 or 3 of subsection K of this section. The benefit
retirement allowance shall be determined at the date of death of the
designated joint annuitant. This increase shall become effective
the first day of the month following the date of death of the
designated joint annuitant, and shall be payable for the member’s
remaining lifetime. The member shall notify the Teachers’
Retirement System of Oklahoma of the death of the designated joint
annuitant in writing by providing a copy of the joint annuitant’s
death certificate. In the absence of the written notice death
certificate being filed by the me mber notifying the Teachers’
Retirement System of Oklahoma of the death of the designated joint
annuitant within six (6) months of the date of death, nothing in
this subsection shall require the Teachers’ Retirement System of
Oklahoma to pay more than six (6) months of retrospective benefi ts
increase.
K. 1. 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 th e 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 h er retirement; or prior
to the member’s death.
2. 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 System at the time of the RBH No. 7783
ENR. H. B. NO. 2528 Page 28
member’s retirement and, except as provided in paragraph (e) 2 of
this subsection J of this section, cannot be changed after the
effective date of the member’s retirement; or.
3. 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 th roughout
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) 2 of this subsection J of this section,
cannot be changed after the effective date of the member’s
retirement; or.
4. 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 the Board of Trustees for
approval at its discretion. Such 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 certified by the actuary to be of equivalent actuarial value to
his or her retirement allowance and shall be approved by the System .
(d) L. Provided that Option 2 and Option 3, the options listed
in paragraphs 2 and 3 of subsection K of this section shall not be
available if the member’s expected benefit is less than fifty
percent (50%) of the lump -sum actuarial equivalent and the
designated joint annuitant is not the s pouse of the member.
(e) M. 1. 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 as prescribed in
paragraph 2 or 3 of subsection K of this section and name the
member’s spouse as designated joint annuitant if the member marries
after making the initial election. Such an election shall be made
within one (1) year of the date of marriage. The member shall
provide proof of a member’s good health before the System will
permit a change to either Option 2 or 3 as prescribed in paragraphs
2 and 3 of subsection K of this section and the naming of a
designated joint annuitant. A medical examination conducted by a
licensed physician is required f or purposes of determining good
health. Such examination must be approved by the Medical Board.
The member shall be required to provide proof of age for the new RBH No. 7783
ENR. H. B. NO. 2528 Page 29
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 Trustees
shall promulgate rules to implement the provisions of this
subsection.
(f) 2. 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 provided for in this
subsection K of this section may make a one-time irrevocable
election to select a different option within sixty (60) days o f the
member’s retirement date. The beneficiary or joint annuitant
designated by the member at the time of retirement shall not be
changed if the member makes the election provided for in this
paragraph.
(g) 3. Any individual who is eligible to be a bene ficiary or
joint annuitant of a member under this subsection J of this section,
and who is also a beneficiary of a trust created under the Oklahoma
Discretionary and Special Needs Trust Act, Section 175.81 et seq. of
Title 60 of the Oklahoma Statutes, or a comparable Trust Act created
under the laws of another state, hereinafter collectively referred
to as “Trust Acts”, may be a beneficiary or joint annuitant under
this subsection J of this section by having the trustee of the trust
established for the bene fit of that individu al named as the legal
beneficiary or joint annuitant under this subsection J of this
section. The age of that beneficiary shall be used for calculating
any benefit payable to the trust under this subsection J of this
section. The beneficiary of such a tr ust shall be treated as the
beneficiary or joint annuitant under this subsection J of this
section except that payments of any benefits due under this
subsection J of this section shall be payable to the lawfully
appointed trustee of th e trust. The obliga tion of the System to pay
the beneficiary or joint annuitant under this subsection J of this
section shall be satisfied by payment to the trustee whom the
System, in good faith, believes to be the lawfully appointed
trustee. Any confli ct between the statu tes creating and governing
the Teachers’ Retirement System of Oklahoma in Section 17-101 et
seq. of this title and the provisions of any Trust Act referred to
above shall be resolved in favor of the statutes governing the
System. If an eligible beneficiary or joint annuitant is named at
the time of retirement, and becomes a beneficiary of a trust under
one of the Trust Acts described herein after that time, the System
will acknowledge the trust as the beneficiary upon the submission of
adequate documentati on of the existence of the trust. All other RBH No. 7783
ENR. H. B. NO. 2528 Page 30
provisions of this subsection J of this section shall apply to these
subsequently created trusts.
(h) 4. 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 J
of this section by administrative rule if it can be done without
undue additional administrative expense of the System.
(9) N. The governing board o f any “public school” public
school, as that term is defined in Section 17 -101 of this title, is
hereby authorized and empowered to pay additional retirement
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 the member’s retirement. Payments
so made shall be a proper charge against the current appropriation
or appropriations of any such public school for salaries for the
fiscal year in which such pa yments are made. Such payments shall be
made in regular monthly installments in such amounts as the
governing board of any such public school, in its judgment, shall
determine to be reasonable and appropriate in view of the length and
type of service rend ered by any such person to such public school by
which such person was employed at the time of retirement. All such
additional payments shall be uniform, based upon the length of
service and the type of services performed, to persons formerly
employed by such public school who have retired or been retired in
accordance with the provisions of Section 17 -101 et seq. of this
title.
The governing board of any such public 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) O. In addition to the teachers’ retirement herein
provided, teachers may voluntarily avail themselves of the Federal
federal Social Security Program program upon a district basis.
(11) P. Upon the death of an in -service member, the System
shall pay to the designated beneficiary of the member or, if there
is no designated beneficiary or if the designated beneficiary
predeceases the member, to the estate of the member, the sum of
Eighteen Thousand Dollars ($18,000.00) as a death benefit.
Provided, if the deceased member had ten (10) years or more of
creditable service, the member’s designated beneficiary may elect to RBH No. 7783
ENR. H. B. NO. 2528 Page 31
receive the retirement benefit to which the deceased member would
have been entitled at the time of death under the Option 2 plan of
retirement in lieu of the death benefit provided for in this
subsection. Provided further, the option provided in this
subsection is only ava ilable when the member has designated one
individual as the designated beneficiary. The beneficiary or
beneficiaries of death benefits in the amount not to exceed Eighteen
Thousand Dollars ($18,000.00), but exclusive of any retirement
benefit received by an electing beneficiary based upon creditable
service performed by the deceased member, which are provided
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 portion of the death benefit. It must be received by the
transferor no more than nine (9) months after the later of the day
the transfer creating 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. After paying death benefits
to any beneficiary or the member’s estate pursuant to this
subsection, the System is discharged and released from any and all
liability, obligation, and costs. The System is not required to
inquire into the truth of any matter specified in this subsection or
into the payment of any estate tax liability.
(12) Q. Upon the death of a retired member who has contributed
to the System, the retirement system shall pay to the designated
beneficiary of the member or, if there is no designated beneficiary
or if the designated beneficiary 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 lawfull y 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 portion of the death benefit . It must be received
by the transferor no more than nine (9) months after the later of
the day the transfer creating 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 RBH No. 7783
ENR. H. B. NO. 2528 Page 32
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 Intern al Revenue 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.
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.
(13) R. Upon the death of a member who dies leaving no living
beneficiary or having designated his or her the member’s estate as
beneficiary, or upon the death of any individual who may be entitled
to a benefit from the System, the System may pay any applicable
death benefit, unpaid contributions, or unpaid benefit which may be
subject to probate, in an amount of Twenty -five Thousand Dollars
($25,000.00) or less, without the intervention of the probate court
or probate procedure pursuant to Section 1 et seq. of Ti tle 58 of
the Oklahoma Statutes.
(a) 1. Before any applicable probate procedure may be waived,
the System must be in receipt of the member’s proof of decedent’s
death certificate and the following documents from those persons
claiming to be the legal heir s of the deceased member:
1. The member’s
a. the decedent’s valid last will and testament, trust
documents or affidavit that a will does not exist ;,
2. An
b. an affidavit or affidavits of heirship which must
state:
a.
(1) the names and signatures of all cl aiming heirs to
the deceased member’s decedent’s estate including
the claiming heirs’ names, relationship to the
deceased, current addresses, tax I.D. ID numbers
if known and current telephone numbers, RBH No. 7783
ENR. H. B. NO. 2528 Page 33
b.
(2) a statement or statements by the claiming heirs
that no application or petition for the
appointment of a personal representative is
pending or has been granted in any jurisdiction,
c.
(3) a description of the personal property claimed,
(i.e., death benefit or unpaid contributions or
both) together with a statement that such
personal property is subject to probate,
d.
(4) 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 a nd
consents to the identified claims of all the
other claiming heirs of the deceased member
decedent pending with the System ;, and
(5) a statement by each individual claiming heir
affirming that all debts of the decedent,
including payment of last sicknes s, hospital,
medical, death, funeral, and burial expenses have
been paid or provided for,
3. A
c. a written agreement or agreements signed by all
claiming heirs of the deceased member decedent which
provides provide that the claiming heirs release,
discharge and hold harmless the System from any and
all liability, obligations and costs which it may
incur as a result of making a payment to any of the
deceased member’s decedent’s heirs;, and
4. A
RBH No. 7783
ENR. H. B. NO. 2528 Page 34
d. a corroborating affidavit from an individual other
than a claiming heir, who was familiar with the
affairs of the deceased member;
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 decedent.
(b) 2. The Executive Director of the System shall retain
complete discretion in determining which requests for probate waiver
may be granted or denied, for any reason. Should the System have
any question as to the validity of any document presented by th e
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) 3. After paying any death benefits or unpaid contributions
to any claiming heirs as provided pursuant to this subsection, the
System is discharged and released from any and all liability,
obligation and costs to the same extent as if the System had dealt
with a personal representative of the deceased member decedent. 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.
(14) S. Upon the death of a retired member, the benefit payment
for the month in which the retired member died, if not previously
paid, shall be made to the joint annuitant if still living, to the
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 paymen t shall be made in an amount equal
to a full monthly benefit payment regardless of the day of the month
in which the retired member died. Upon the death of a joint
annuitant receiving monthly benefit payments as prescribed herein,
the benefit payment for the month in which the joint annuitant died,
if not previously paid, shall be made to the joint annuitant’s
estate in an amount equal to the full monthly benefit payment
regardless of the day of the month on which the joint annuitant
died.
T. The Board of Trustees may adopt such other rules and
regulations as are necessary to administer the benefits enumerated
herein.
RBH No. 7783
ENR. H. B. NO. 2528 Page 35
SECTION 5. 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 member and the retired member’s joint annuitant,
if any, are less than the member’s accumulated contributions with
interest as credited at the time of retirement under Section 17 -105
of this title, the diffe rence 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 to retired members dying on
or after July 1, 1979. After paying unpaid accumulated
contributions to any designated beneficiary or the member’s estate
pursuant to this section, the Teachers’ Retirement System of
Oklahoma 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 section or into the
payment of any estate tax liability.
SECTION 6. AMENDATORY 70 O.S. 2021, Section 17 -106.3, is
amended to read as follows:
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 Trustees of the
Teachers’ Retirement System of Oklahoma shall have the
responsibility for the management of the Oklahoma 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 fr om 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 monies 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.
RBH No. 7783
ENR. H. B. NO. 2528 Page 36
SECTION 7. 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 Oklahoma shall be credited in the
following manner:
1. money on deposit in the Teachers’ Deposit Fund or Tax-
Sheltered Annuity Fund shall be credited with interest annually
compounded;
2. there There shall be deducted from the annual interest on
investments an amount necessary for the amortization of bonds
purchased and owned by the Teachers’ Retir ement System of Oklahoma;
3. there 2. There shall be deducted from the annual interest on
investments an amount of money necessary for the operation of the
Teachers’ Retirement System of Oklahoma; and
4. any 3. Any residue remaining in the Interest Fun d 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 Benefi t Fund; the
interest income shall be distributed to the various funds on June 30
each year.
SECTION 8. AMENDATORY 70 O.S. 2021, Section 17 -108, is
amended to read as follows:
Section 17-108. A. Each local school district, or s tate
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 of Oklahoma
(“participating employers”), shall match, on a pr o rata basis, in
accordance with subsection B of this section the contributions of
members whose salaries are paid by federal funds or externally
sponsored agreements such as grants, contracts and cooperative
agreements. These funds shall be remitted at t he same time as the
regular contributions of members are remitted to the Teachers’
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 con tributing employers as provided RBH No. 7783
ENR. H. B. NO. 2528 Page 37
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 procedures
that apply uniformly to both federally assisted and other
activities, and be accorded consistent treatment through application
of generally accepted accounting principles. The Board shall
approve the contribution rates for each fiscal year ending June 30,
no later than April 1 of the previous fiscal year. The first rate
shall be applied to service performed during the regular school year
of the participating employer. The second rate shall be applied to
service performed by members during a summer school program of the
participating employer. For the purposes of this subsection,
“summer school program” is defined as a program offering academic
enrichment for students from Pre-K prekindergarten through 12th
grades twelfth grade during the summer term after the close of the
school year. Members shall only be considered as providing service
to a summer school program if such service is provided pursuant to a
separate summer school contract between the member and the
participating employer. The term “summer school program” summer
school program does not include services performed at a
participating employer offering an extended school year pursuant to
Section 1-109.1 of this title, or services performed by staff
pursuant to a twelve -month contract with the employer. The method
applied to setting the second contribution rate may take into
consideration whether, or to what extent, such service is likely to
add to members’ service credit or final average salary; provided,
however, the second rate shall not exceed one -half (1/2) of the
first rate established in this subsection. The actuary retained by
the Board may recommend such rates using assumptions that apply to
the group of those members whose service is subject to the second
contribution rate.
C. All the assets of the retirem ent system shall be credited
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, the
Expense Fund, the Suspense Fu nd, the Teachers’ Deposit Fund, and the
Retiree Medical Benefit Fund.
1. The Teachers’ Savings Fund shall be a fund in which shall be
accumulated the regular contributions from the compensation of
members, including applicable interest earnings prior to July 1,
1968. Contributions to and payments from the Teachers’ Savings Fund
shall be made as specifically provided in each plan available within
the retirement system. RBH No. 7783
ENR. H. B. NO. 2528 Page 38
2. The deductions provided for in the plans within the
retirement system shall be mad e notwithstanding that the minimum
compensation provided for any member shall be reduced thereby.
Every member shall be deemed to consent and agree to the deductions
made and provided for herein and payment of salary or compensation,
less the deduction, s hall be a full and complete discharge and
acquittance of all claims and demands whatsoever for the services
rendered by such person during the period covered by such payment,
except as to the benefits provided under this act Section 17-101 et
seq. of this title. 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 membership in the retirement
system for any member who has been absent from service for five (5)
years in any period of six (6) consecutive years, the Teachers’
Savings Fund Account of such member shall be closed and the amount
due the member as provided in Section 17 -105 of this title shall be
paid upon the filing of formal application. At the t ime such
membership is terminated the amount due the member as provided in
Section 17-105 of this title shall be transferred to the Suspense
Fund.
4. Upon the retirement of a 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 be 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 consist of monies received
from any state dedicated revenue, monies received from
state appropriations, monies received from federal
matching funds, and the residue of the interest on
investments after the requirements of Section 17 -107 RBH No. 7783
ENR. H. B. NO. 2528 Page 39
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
succeeding fiscal year thereafter shall be transferred
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 ha s on deposit in the
Teachers’ Deposit Fund or the Tax-Sheltered Annuity
Fund. The monthly retirement benefits paid from the
Teachers’ Deposit Fund or the Tax -Sheltered Annuity
Fund shall be in addition to the regular retirement
benefits and the money tran sferred from the 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 be 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
transferred from the Teachers’ Savings Fund to the
Retirement Benefit Fund.
f. At the death of a retired member who had retired under
Option 5, the balance of any monies the member had in
the Teachers’ Savings Fund shall be transferred to the
Retirement Benefit Fund for the purpose of making a
lump-sum settlement to the beneficiary or his estate.
Providing that if the surviving spouse elects to RBH No. 7783
ENR. H. B. NO. 2528 Page 40
receive the balance under the Maximum Plan of
Retirement or Option 1 the member’s money, if any, on
a monthly basis, constituting actuarial equ ivalent 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 Section 17-101
et seq. of this title shall be paid into the Interest Fund. On June
30, each year, interest shall be transferred to the other funds as
herein provided.
7. The Permanent Retirement Fund shall consist of the
accumulated gifts, awards, and bequests made to the retirement
system, and transfers from the Suspense Fund, the principal of which
is hereby held and dedicated as a perpetual endowment of the
retirement system and shall not be diverted or appropriated to any
other cause or purpose unless specifically provided for in s uch
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 defray
the expenses for the ensuing fiscal year.
Transfers to and payments from this fund shall be made as
follows: first, from the Interest Fund; second, from any dedicated
revenue; and, third, from appropriation by the Oklahoma Legislature.
All monies for the operation of the Teachers’ 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 transferred
to the fund as provided in this section and Section 17 -105 of this
title and obligations of the retirement system to any member or
person which cannot be legally discharged. RBH No. 7783
ENR. H. B. NO. 2528 Page 41
10. Teachers’ Deposit Fund.
Any member may request, prior to a pay period, that his or her
employer make additional deposits for him or her, for tax -sheltered
annuity purposes. However, the amount deposited sh all not exceed
the limits as defined in Section 402(g) and Section 415 of the
Internal Revenue Code of 1986, as amended, and applicable federal
regulations. All such deposits shall be credited to the member’s
account in the Teachers’ Deposit Fund for the purchase of a tax-
sheltered annuity. The amount thus accumulated, with earnings,
shall be used upon the member’s retirement, separation from service,
death or disability to purchase an annuity in addition to his or her
regular service retirement allowance . The amount a member
accumulates in the Teachers’ Deposit Fund, not including interest,
may be used to pay distributions in the case of hardship as provided
in Section 403(b)(11) of the Internal Revenue Code of 1986, as
amended, and applicable federal re gulations.
11. Collection of Contributions. The collection of members’
contributions shall be as follows:
(1)
a. 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 retirement system the
contribution payable by such member as provided in
this act Section 17-101 et seq. of this title . With
each and every payroll or claim the employer shall
deliver to the treasurer of the employer w arrants
issued to the employees as shown to be due by the
payroll or claim, together with a warrant or warrants
in favor of the Teachers’ Retirement System of
Oklahoma as shown by the payroll or claim.
(2)
b. The treasurer or disbursing officer upon deli very of
the warrants and a true copy of the payroll or claims
as provided above shall register the warrants as
provided for the registration of other school
warrants, and shall deliver to the employer warrants
issued in favor of the employees, and shall de liver RBH No. 7783
ENR. H. B. NO. 2528 Page 42
warrants issued in favor of the Teachers’ Retirement
System of Oklahoma and the copy of the payroll or
claims to the school district superintendent as
designated by the Board of Trustees. For the purpose
of collecting contributions of teachers in th e public
schools, the superintendent of a school district is
hereby designated to receive the Teachers’ Retirement
warrants from the treasurer or proper disbursing
officer of the several school districts for the
purpose of transmitting such warrants and pa yroll or
claims to the Executive Director of the Teachers’
Retirement System of the State of Oklahoma. Any
college or university or other educational institution
or agency operated in whole or in part by the state
shall have the amount retained or deducte d from the
funds regularly appropriated by the state for the
current maintenance for such educational departments
and institutions.
(3)
c. 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 employer board or agency,
within thirty (30) days after the beginning of each
school year, to make 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 Teachers’ Retirement System of
Oklahoma. If additions to or deductions 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 of
Oklahoma.
(4)
d. The State Treasurer shall furnish annually to the
Board of Trustees a sworn statement of the amount o f
the funds in his or her custody belonging to the
retirement system. The records of the Board of
Trustees shall be open to public inspection and any RBH No. 7783
ENR. H. B. NO. 2528 Page 43
member of the retirement system shall be furnished
with a statement of the amount of the credit to his or
her the member’s individual account upon written
request by such member, provided the Board of Trustees
shall not be required to answer more than one such
request of a member in any one (1) year.
(5)
e. Failure of any superintendent, officer, or other
person to discharge the duties imposed upon him or her
by this act shall render him or her or his or her
bondsman liable for any loss occasioned thereby to the
Teachers’ Retirement System of Oklahoma or the
employees of the school district, or both.
(6)
f. On a showing by the Teachers’ Retirement System of
Oklahoma that a warrant, voucher or check issued to it
has, for any reason, been lost or never received,
after ninety (90) days from the date of issue or from
transmittal for payment, it shall be the dut y of the
issuing authority forthwith, without any indem nifying
bond or other requirements, to issue a duplicate
thereof in lieu of that which was lost, to the
Teachers’ Retirement System of Oklahoma; and the
Teachers’ Retirement System of Oklahoma shall save
harmless any school district or agency of state
government making payment under the provisions hereof
to the State Teachers’ Retirement System of Oklahoma
if the original warrant, voucher or check is later
presented for payment and same is paid after a
duplicate warrant, voucher or check has been issued
and paid to the Teachers’ Retirement System of
Oklahoma, and any loss sustained therefrom shall be
charged to the Interest Fund.
12. 11. Rollover Contributions and Direct Trustee -to-Trustee
Transfers from Other Plans.
Any member may purchase credit for servi ce, to the extent
specified in this title, with rollovers from an eligible retirement
plan as defined by the Internal Revenue Code of 1986, as amended
from time to time. A member may also purchase p ermissive service RBH No. 7783
ENR. H. B. NO. 2528 Page 44
credit, as defined by Title 26, United States Code, Section
415(n)(3)(A), with a direct trustee -to-trustee transfer from a
governmental Title 26, United States Code, Section 403(b) plan or
governmental Title 26, United States Code, Section 457(b) plan. All
rollovers and direct t rustee-to-trustee transfers shall be allowed
to the extent permitted by federal law. Rollovers or direct
transfers in excess of the amount necessary to purchase such service
credit shall not be allowed.
13. 12. Retiree Medical Benefit Fund.
The Retiree Medical Benefit Fund shall be mai ntained as a
subaccount under the Retirement Benefit Fund. The Retiree Medical
Benefit Fund is composed of all assets contributed to this
subaccount to pay the retirement system’s portion of the monthly
retiree health insurance benefits described in Secti on 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 medi cal benefits
pursuant to Section 1316.3 of Title 74 of the O klahoma Statutes.
The Retiree Medical Benefit Fund shall be administered in accordance
with the requirements under Section 401(h) of the Internal Revenue
Code of 1986, as amended from time to tim e. An amount necessary to
pay the health insurance premiums for retired members as p rovided by
Section 1316.3 of Title 74 of the Oklahoma Statutes shall be
deposited each month into the Retiree Medical Benefit Fund.
SECTION 9. AMENDATORY 70 O.S. 2021, Se ction 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 w ith a public school
of Oklahoma and still receive monthly re tirement 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 o f preretirement public
education employment and any postretir ement 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 agree ment or the member’s effective
retirement date, whichever is later . An employee on paid leave is RBH No. 7783
ENR. H. B. NO. 2528 Page 45
still considered to be employed for purposes of this section.
Employment under any conditions du ring this time, volunteer services
for the purpose of obtaini ng a paid position 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 par agraph 3 of this subsection,
earnings from the public schools may not exceed one -half (1/2) of
the member’s final average salary used in computing retirement
benefits, or the Earnings Limitation f or employees allowed by th e
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 limitations on allowable
earnings. Earnings limits a re determined annually bas ed on a
calendar year. For retired members under the age of s ixty-two (62)
years, the limit on allowed earnings from the public schools of
Oklahoma for employment for the performance of duties ordinarily
performed by classified o r nonclassified optional 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 Administrat ion would be greater
than Fifteen Thousand Dollars ($15,000.00 ) for those under Social
Security’s normal retirement age, whichever is less . For retired
members sixty-two (62) years of age or older the limit on, allowed
earnings from the public schools of Oklahoma for the performance of
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”
regular annual compensation as defined in paragraph
(25) 23 of Section 17-101 of this title, and shall
include any payment by a public school for s ervices
rendered by a retired member who is employed for any
purpose whatsoever. Supplemental retirement payments
paid by a former public school employer pursuant to
subsection 9 N 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 RBH No. 7783
ENR. H. B. NO. 2528 Page 46
age of sixty-two (62) years and sixty -five (65) years
shall apply to retired members below the ag e 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 current
Earnings Limitation for employees as deter mined from
time to time by the Social Security Administratio n,
d. the earnings limit for th e calendar year in which a
member retires shall be one -twelfth (1/12) of the
annual limit multiplied by the number of months the
member is eligible to work and rece ive payments from
the public schools of Oklahoma, and
e.
c. earnings in excess of the maximu m 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 pe rformed of One
Dollar ($1.00) for each One Dollar ($1.00) ea rned over
the maximum allowed earn ings 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 use d in
computing retirement benefits. However, any retired
member receiving benefits from the Retirement System
who reached age seventy (70) years prior to July 1,
1991, shall not be restricted by the earnings limits
pursuant to this subparagraph until Janu ary 1, 1994.
To qualify for the pr ovisions 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 th is subsection, a retired
classified or nonclassified member who has be en 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 rece ive annualized earnings from the
public school with no reduction in re tirement benefits regardless of RBH No. 7783
ENR. H. B. NO. 2528 Page 47
the amount of annualized earnings. For for a period of three (3)
years beginning July 1, 2017, members who have retired as of J uly 1,
2017, as active classroom teachers, who have been ret ired 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 t eacher in common
or career tech school districts, with no li mitations 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 em ployed
by any public school during that one-year period, shall be elig ible
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 wit h the retiree’s last day o f preretirement
public education employment. Members returning under this section
shall not be subject to any earning earnings limitations following
the end of the three -year periods described in this paragraph.
Members returning under this section shall only be employed pursuant
to a temporary contract; and
4. A member shall be considered to be employed by a school
district to perform the duties ordinarily performed by classified or
nonclassified optional personnel if the memb er is hired by the
school district in the member’s individua l capacity to perform the
duties or if the member performs the duties through employment with
a proprietorship, partnership, corporation, limited liability
company or partnership, or any other bus iness structure that has
agreed or contracted to provide the services to the school district.
B. A public school district that employs a retired 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 Se ction 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
Oklahoma State Senate, the Oklahoma House of Representatives or the
Legislative Service Bureau shall not be con sidered as postretirement
employment with a public school of Oklahoma.
D. The Board of Trustees of the Teachers’ Retirement System of
Oklahoma shall promulgate such rules as ar e necessary to implement
the provisions of this section.
RBH No. 7783
ENR. H. B. NO. 2528 Page 48
E. A member who has entered into postretirement employment w ith
a participating employer of the Teachers’ Retirement System of
Oklahoma must fully comply with all the provisions of the rules
promulgated by the Board of Trustees pursuant to t his section in
order to continue receiving his or her the member’s monthly
retirement benefit.
SECTION 10. REPEALER 70 O.S. 2021, Section 17 -114.2, is
hereby repealed.
SECTION 11. This act shall become effective Jul y 1, 2024.
SECTION 12. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take e ffect and
be in full force from and after it s passage and approval. RBH No. 7783
ENR. H. B. NO. 2528 Page 49
Passed the House of Representatives the 8th day of May, 2024.
Presiding Officer of the House
of Representatives
Passed the Senate the 25th day of April, 2024.
Presiding Officer of the Senate
OFFICE OF THE GOVERNOR
Received by the Office of the Gove rnor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _________
day of ___________________, 20_______, at _______ o'c lock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __ ________
day of ___________________, 20_____ __, at _______ o'clock _______ M.
By: _________________________________
THOMAS E. CUMMINS CONSULTING ACTUARY, INC.
2512 E. 71
st
Street , Suite D ∙ Tulsa, Oklahoma 74136
(918) 492-9658 ∙ (918) 492- 9659
February 23, 2023
Representative Mark Lepak
Room 4537
Re: Proposed Committee Substitute for House Bill No. 2528
Proposed Committee Substi tute for House Bill No. 2528 is Teachers
Retirement System cleanup bill .
Proposed Committee Substitute for House Bill No. 2528 is a non
fiscal bill as defined by OPLAAA .
I am a member of the American Academy of Actuaries and meet the
Qualification Standards of the American Academy of Actuaries to
render the actuarial opinio n herein.
Thomas E. Cummins
Thomas E. Cummins, MAAA