RBS No. 2448
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SENATE FLOOR VERSION
February 6, 2024
SENATE BILL NO. 1520 By: Pemberton of the Senate
and
Hays of the House
An Act relating to the Teachers’ Retirement System of
Oklahoma; amending 70 O.S. 2021, Secti on 17-116.10,
which relates to postretirement employment; modifying
earnings limitation for certain retirees returning to
work in a public school; providing an effective date;
and declaring an emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 70 O.S. 2021, Section 17 -116.10,
is amended to read as follows:
Section 17-116.10. A. Subject to the requirements of Section
6-101.2 of this title and any other applicable requirements of law,
a member of the Teachers’ Retirement System of O klahoma may enter
into postretirement employment with a public school of Oklahoma and
still receive monthly retirement benefits sub ject to the following
limitations:
1. A retired member is not eligible to be employed by th e
public schools of Oklahom a, in any capacity, for sixty (60) calendar
days between the retiree ’s last day of preretirement public RBS No. 2448
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education employment and any postretirement public education
employment. For purposes of this section, the term “last day of
preretirement employment ” shall mean the last day the employee is
required to be physically pre sent on the job to complete the terms
of the employment contract or agreement. An employee on paid leave
is still considered to be employed for purposes of thi s section.
Employment under any conditions during this time, volunteer services
for the purpose of obtaining a paid positi on at a later date, or
payment at a later time for services performed during this time
period shall cause the forfeiture of all retir ement benefits
received during the period;
2. Unless otherwise provided in paragraph 3 of this subsection,
earnings from the public schools may not exceed one-half (1/2) of
the member’s final average salary used in computing retirement
benefits, or the Earnings Limitation earnings limitation for
employees allowed by the Social Security Administration, whichever
is less. For retired members unde r the age of sixty-two (62) years,
the limit on allowed earnings from the public schools of Oklahoma
for employment for the performan ce of duties ordinarily performed by
classified or nonclassified personnel shall be the lesser o f Fifteen
Thousand Dollars ($15,000.00) or one-half (1/2) of the mem ber’s
final average salary used in computing retirement benefits unless
the earnings limitat ion allowed by the Social Security
Administration would be greater than Fifteen Thousand Dollars RBS No. 2448
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($15,000.00). 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 o f duties ordinarily performed by
classified or nonclassified personnel shall be the lesser of Th irty
Thousand Dollars ($30,000.00) or one-half (1/2) of the member’s
final average salary used in computing retirement benefits. On and
after the effective date of th is act, for retired members under the
age of sixty-two (62) years, the limit on allowed earnings from the
public schools of Oklahoma for employment for the performance of
duties ordinarily performed by classified or nonclassified personnel
shall be the lesser of Thirty Thousand Dollars ($30,000.00) or one-
half (1/2) of the member ’s final average salary u sed in computing
retirement benefits unless the earnings limitation allowed by the
Social Security Administration would be greater than Thirty Thousand
Dollars ($30,000.00). On and after the effective date of this act,
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 th e lesser of Fifty-five Thousand
Dollars ($55,000.00) or one-half (1/2) of the member ’s final average
salary used in computing retirem ent benefits. For purposes of this
paragraph, the following shall apply:
a. earnings shall mean “regular annual compensation ” as
defined in paragraph (25) of Section 1 7-101 of this RBS No. 2448
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title, and shall include an y payment by a public
school for services rendered by a retired member who
is employed for any purpose whatsoever. Supplemental
retirement payments paid by a former publ ic school
employer pursuant to subsection 9 o f Section 17-105 of
this title or other s tate law shall not be considered
as earnings,
b. the Earnings Limitation earnings limitation for
employees allowed by the Social Security
Administration to workers between the age of sixty -two
(62) years and sixty-five (65) years shall apply to
retired members below the age o f sixty-two (62) years,
c. the limit on allowed earnings from the public schools
shall be automatically adjusted effectiv e the first
day of January of each year to refle ct the current
Earnings Limitation earnings limitation for employees
as determined from time to time by the Social Security
Administration,
d. the earnings limit for the calendar year in which a
member retires shall be one-twelfth (1/12) of the
annual limit multiplied by the numb er of months the
member is eligible to wor k and receive payments from
the public schools of Oklahoma, RBS No. 2448
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e. earnings in excess of the maximum limit on allowed
earnings from public schools of Oklahoma shall result
in a loss of future retirement benefits for the year
the postretirement employment was performed of One
Dollar ($1.00) for each O ne Dollar ($1.00) earned over
the maximum allowed earnings amo unt, and
f. for those members age seventy (70) years and over, the
earnings in excess of the maximum limit allowed
earnings from public schools of Oklahoma s hall be one-
half (1/2) the member’s final average salary used in
computing retirement benefits. However, any retired
member receiving benefits from the Retirement System
who reached age seventy (70) years prior to July 1,
1991, shall not be restricted by the earnings limits
pursuant to this subp aragraph until January 1, 1994.
To qualify for the provisions of this subparagraph,
the member must be employed less than one -half (1/2)
the time compared to other full -time employees in
similar positions;
3. Notwithstanding paragraph 2 of this subsection, a retired
classified or nonclassified member who has been retired for thirty -
six (36) or more months and who is employed by a public school to
perform duties ordinarily pe rformed by classified or nonclassified
personnel shall be able to receive annualized earnings from the RBS No. 2448
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public school with no reduction in retirement benefits regardless of
the amount of annualized earnings. For a peri od of three (3) years
beginning July 1, 2017, members wh o have retired as of July 1 , 2017,
as active classroom teachers, who have been retired and receiving a
benefit for at least one (1) year, and who have not been employed by
any public school during tha t one-year period, shall be eligible t o
be reemployed as an active classroom teache r in common or career
tech school districts, with no limitations on earnings. For a
period of three (3) years beginning July 1, 20 21, members who have
retired as of July 1, 2020, who have been retired and receiv ing a
benefit for at least one (1) year, and who have not been employed by
any public school during that one-year period, shall be eligible to
be reemployed as an active classroom teacher in common or career
tech school districts, with no limitations on e arnings. The one-
year period starts with the retiree’s last day of preretirement
public education employment. Members returning under this section
shall not be subject to any earning limitations earnings limitation
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 employe d by a school
district to perform the duties ord inarily performed by classified or
nonclassified personnel if the member is hired by th e school
district in the member’s individual capacity to perform the duties RBS No. 2448
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or if the member performs the duti es through employment with a
proprietorship, part nership, corporation, limited liability company
or partnership, or any other business structure t hat has agreed or
contracted to provide t he services to the school district.
B. A public school district that employs a retired member shall
be required to make contrib utions to the System for the retired
member in an amount as required in Section 17-108.1 and in paragraph
3 of subsection B of Section 17-116.2 of this title.
C. For purposes of this section, postretirement employment of
less than one thousand (1,000) hours per year with the Governor, the
State Senate, the House of Repre sentatives or the Le gislative
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.
E. A member who has entered into postretirement employment with
a participating employer o f the Teachers’ Retirement System of
Oklahoma must fully c omply with all the provisions of the rule s
promulgated by the Board of Trustees pursuant to this section in
order to continue rec eiving his or her monthly retirement benefit.
SECTION 2. This act shall become effective July 1, 2024.
SECTION 3. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby RBS No. 2448
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declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
COMMITTEE REPORT BY: COMMITTEE ON RETIREMENT AND INSURANCE
February 6, 2024 - DO PASS