RBS No. 2448
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ENGROSSED SENATE
BILL NO. 1520 By: Pemberton and Stephens of
the Senate
and
Hays of the House
An Act relating to the Teachers’ Retirement System of
Oklahoma; amending 70 O.S. 2021, Section 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 Oklahoma may enter
into postretirement employment with a public school of Oklahoma and
still receive monthly retirement benefits subject to the following
limitations:
1. A retired member is not eligible to be employed by the
public schools of Oklahoma, in any capacity, for s ixty (60) calendar
days between the retiree ’s last day of preretirement public
education employment and any postretirement public education
employment. For purposes of this section, the term “last day of RBS No. 2448
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preretirement employment ” shall mean the last day t he employee is
required to be physically present on the job to complete the terms
of the employment contract or agreement. An employee on paid leave
is still considered to be employed for purposes of this section.
Employment under any conditions during t his time, volunteer services
for the purpose of obtaining 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 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 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 performe d by
classified or nonclassified personnel shall be the lesser of Fifteen
Thousand Dollars ($15,000.00) or one -half (1/2) of the member ’s
final average salary used in computing retirement benefits unless
the earnings limitation allowed by the Social Securi ty
Administration would be greater than Fifteen Thousand Dollars
($15,000.00). For retired members sixty -two (62) years of age or
older the limit on allowed earnings from the public schools of RBS No. 2448
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Oklahoma 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 used in computing retirement benefits. On and
after the effective date of this act, for retired membe rs 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 Do llars ($30,000.00) or one -
half (1/2) of the member ’s final average salary used 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 s hall be the 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 17 -101 of this
title, and shall include any payment by a public
school for services rendered by a retired member who RBS No. 2448
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is employed for any purpose whatsoever. Supplemental
retirement payments paid by a f ormer public school
employer pursuant to subsection 9 of Section 17 -105 of
this title or other state law shall not be considered
as earnings,
b. the Earnings Limitation earnings limitation for
employees allowed by the Social Security
Administration to work ers between the age of sixty -two
(62) years and sixty -five (65) years shall apply to
retired members below the age of sixty -two (62) years,
c. the limit on allowed earnings from the public schools
shall be automatically adjusted effective the first
day of January of each year to reflect the 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 number of months the
member is eligible to work and receive payments from
the public schools of Oklahoma,
e. earnings in excess of the maximum limit on allowed
earnings from public schools of Oklahoma shall result
in a loss of future retirement benefits for the year RBS No. 2448
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the postretirement employment was performed of One
Dollar ($1.00) for each One Doll ar ($1.00) earned over
the maximum allowed earnings amount, and
f. for those members age seventy (70) years and o ver, the
earnings in excess of the maximum limit allowed
earnings from public schools of Oklahoma shall be one -
half (1/2) the member ’s final average salary used in
computing retirement benefits. However, any retired
member receiving benefits from the Reti rement System
who reached age seventy (70) years prior to July 1,
1991, shall not be restricted by the earnings limits
pursuant to this subpara graph until January 1, 1994.
To qualify for the provisions of this subparagraph,
the member must be employed les s 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 e mployed by a public school to
perform duties ordinarily performed by classified or nonclassified
personnel shall be able to receive annualized earnings from the
public school with no reduction in retirement benefits regardless of
the amount of annualized e arnings. For a period of three (3) years
beginning July 1, 2017, members who have retired as of July 1, 2017, RBS No. 2448
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as active classroom teachers, who have been retired and receiving a
benefit for at least one (1) year, and who have not been employed by
any public school during that one -year period, shall be eligible to
be reemployed as an active classroom teacher in common or career
tech school districts, with no limitations on earnings. For a
period of three (3) years beginning July 1, 2021, members who have
retired as of July 1, 2020, who have been retired and receiving a
benefit for at least one (1) year, and who have not been employed by
any public school during that one -year period, shall be eligible to
be reemployed as an active classroom teacher in common or career
tech school districts, with no limitations on earnings. The one -
year period starts with the retiree ’s last day of preretirement
public education employment. Members returning under this section
shall not be subject to any earning limitations 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 employed by a school
district to perform the duties ordinarily performed by classified or
nonclassified personnel if the member is hired by the school
district in the member’s individual capacity to perform the duties
or if the member performs the duties through employment with a
proprietorship, partnership, corporation, limited liability company RBS No. 2448
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or partnership, or any other business structure that has agreed or
contracted to provide the services to the school district.
B. A public school district that employs a retired member shal l
be required to make contributions to the System for the retired
member in an amount as required in Section 17 -108.1 and in paragraph
3 of subsection B of Section 17 -116.2 of this title.
C. For purposes of this section, postretirement employment of
less than one thousand (1,000) hours per year with the Governor, the
State Senate, the House of Representatives or the Legislative
Service Bureau shall not be considered as postretirement employment
with a public school of Oklahoma.
D. The Board of Trustees of the Teachers’ Retirement System of
Oklahoma shall promulgate such rules as are necessary to implement
the provisions of this section.
E. A member who has entered into postretirement employment with
a participating employer of the Teachers ’ Retirement System of
Oklahoma must fully comply with all the provisions of the rules
promulgated by the Board of Trustees pursuant to this section in
order to continue receiving his or her monthly retirement benefit.
SECTION 2. This act shall become eff ective July 1, 2024.
SECTION 3. 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 effect and
be in full force from and after its passage and approval. RBS No. 2448
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Passed the Senate the 4th day of March, 2024.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2024.
Presiding Officer of the House
of Representatives