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53	53	STATE OF OKLAHOMA
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55	55	1st Session of the 60th Legislature (2025)
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57	57	SENATE BILL 88 By: Boren
58	58
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63	63	AS INTRODUCED
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65	65	An Act relating to the Teachers’ Retirement System of
66	66	Oklahoma; amending 70 O.S. 2021, Section 17 -106.1,
67	67	which relates to the Board of Trus tees of the
68	68	Teachers’ Retirement System of Oklahoma; allowing
69	69	Board of Trustees to approve cost -of-living
70	70	adjustment for certain retirees under certain
71	71	circumstances; updating statutory language; and
72	72	making language gender neutral .
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77	77	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
78	78	SECTION 1. AMENDATORY 70 O.S. 2021, Section 17 -106.1, is
79	79	amended to read as follows:
80	80	Section 17-106.1. A. The Board of Trustees of the Teachers ’
81	81	Retirement System of Oklahoma shall disch arge their duties with
82	82	respect to the System solely in the interest of the participants and
83	83	beneficiaries and:
84	84	1. For the exclusive purpose of:
85	85	a. providing benefits to participants and their
86	86	beneficiaries, and
87	87	b. defraying reasonable expenses of administ ering the
88	88	System;
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140	140	2. With the care, skill, prudence, and diligence under the
141	141	circumstances then prevailing that a prudent person acting in a like
142	142	capacity and familiar with such matters would use in the conduct of
143	143	an enterprise of a like character and wit h like aims;
144	144	3. By diversifying the investments of the System so as to
145	145	minimize the risk of large losses, unless under the circumstances it
146	146	is clearly prudent not to do so; and
147	147	4. In accordance with the laws, documents and instruments
148	148	governing the System.
149	149	B. The Board of Trustees of the Teachers ’ Retirement System of
150	150	Oklahoma may invest the assets of the System in real property owned
151	151	or to be acquired by the State of Oklahoma state. It is further
152	152	authorized to acquire, exchange, and grant any real prop erty under
153	153	its jurisdiction as is necessary to carry out the investment in the
154	154	real property. The Board of Trustees of the Teachers ’ Retirement
155	155	System of Oklahoma is authorized to invest not more than ten percent
156	156	(10%) of the total value of assets of the System in connection with
157	157	such investments. Limitations on investment of the assets of the
158	158	System provided herein shall be determined as of the date of its
159	159	making or acquisition.
160	160	C. The Board of Trustees may procure insurance indemnifying the
161	161	members of the Board of Trustees from personal loss or
162	162	accountability from liability resulting from a member ’s action or
163	163	inaction as a member of the Board.
164	164	RBS No. 1050
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215	215	D. The Board of Trustees may establish an investment committee.
216	216	The investment committee shall be composed of not more than five (5)
217	217	members of the Board of Trustees appointed by the chairman chair of
218	218	the Board of Trustees. The committee shall make recommendations to
219	219	the full Board of Trustees on all matters related to the choice of
220	220	custodians and managers of th e assets of the System, on the
221	221	establishment of investment and fund management guidelines, and in
222	222	planning future investment policy. The committee shall have no
223	223	authority to act on behalf of the Board of Trustees in any
224	224	circumstances whatsoever. No recom mendation of the committee shall
225	225	have effect as an action of the Board of Tru stees nor take effect
226	226	without the approval of the Board of Trustees as provided by law.
227	227	E. The Board of Trustees may retain qualified investment
228	228	managers to provide for the inves tment of the monies of the System.
229	229	The investment managers shall be chosen by a solicitation of
230	230	proposals on a competitive bid basis pursuant to standards set by
231	231	the Board of Trustees. Subject to the overall investment guidelines
232	232	set by the Board of Trus tees, the investment managers shall have
233	233	full discretion in the management of those monies of the System
234	234	allocated to the investment managers. The Board of Trustees shall
235	235	manage those monies not specifically allocated to the investment
236	236	managers. The monies of the System allocated to the investment
237	237	managers shall be actively managed by the investment managers, which
238	238	may include selling investments and realizing losses if such action
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290	290	is considered advantageous to longer term return maximization.
291	291	Because of the total return objective, no distinction shall be made
292	292	for management and performance evaluation purposes between realized
293	293	and unrealized capital gains and losses.
294	294	F. Funds and revenues for investment by the investment managers
295	295	or the Board of Trustees shall be placed with a custodian selected
296	296	by the Board of Trustees. The custodian shall be a bank or trust
297	297	company offering pension fund master trustee and master custodial
298	298	services. The custodian shall be chosen by a solicitation of
299	299	proposals on a competitive bid basis pursuant to standards set by
300	300	the Board of Trustees. In com pliance with the investment policy
301	301	guidelines of the Board of Trustees, the custodian bank or trust
302	302	company shall be contractually responsible for ensuring that all
303	303	monies of the System are invested in income -producing investment
304	304	vehicles at all times. If a custodian bank or trust company has not
305	305	received direction from the investment managers of the System as to
306	306	the investment of the monies of the System in specific investment
307	307	vehicles, the custodian bank or trust company shall be contractually
308	308	responsible to the Board of Trustees for investing the monies in
309	309	appropriately collateralized short -term interest-bearing investment
310	310	vehicles.
311	311	G. By November 1, 1988, and prior to August 1 of each year
312	312	thereafter, the Board of Trustees shall develop a written investment
313	313	plan for the System.
314	314	RBS No. 1050
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365	365	H. The Board of Trustees shall compile a quarterly financial
366	366	report of all the funds of the System on a fiscal year basis. The
367	367	report shall be compile d pursuant to uniform reporting standards
368	368	prescribed by the Oklahoma State Pe nsion Commission for all state
369	369	retirement systems. The report shall include several relevant
370	370	measures of investment value, including acquisition cost and current
371	371	fair market value with appropriate summaries of total holdings and
372	372	returns. The report shall contain combined and individual rate of
373	373	returns of the investment managers by category of investment, over
374	374	periods of time. The Board of Trustees shall include in the
375	375	quarterly reports all commissions, fees or payments for investment
376	376	services performed o n behalf of the Board. The report shall be
377	377	distributed to the Governor, the Oklahoma State Pension Commission,
378	378	the Legislative Service Bureau, the Speaker of the House of
379	379	Representatives and the President Pro Tempore of the Senate. In
380	380	lieu of compiling and distributing the quarterly report, the Board
381	381	may provide the Oklahoma State Pension Commission with direct access
382	382	to the same data from the custodian bank for the System.
383	383	I. After July 1 and before December 1 of each year, the Board
384	384	of Trustees shall publish widely an annual report presented in
385	385	simple and easily understood language pursuant to uniform reporting
386	386	standards prescribed by the Oklahoma State Pension Commission for
387	387	all state retirement systems. The report shall be submitted to the
388	388	Governor, the Speaker of the House of Representatives, the President
389	389	RBS No. 1050
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440	440	Pro Tempore of the Senate, the Oklahoma State Pension Commission and
441	441	the members of the System. The annual report shall cover the
442	442	operation of the System during the past fiscal year, including
443	443	income, disbursements, and the financial condition of the System at
444	444	the end of the fiscal year. The annual report shall also contain
445	445	the information issued in the quarterly reports required pursuant to
446	446	subsection H of this section as well as a summary of the results of
447	447	the most recent actuarial valuation to include total assets, total
448	448	liabilities, unfunded liability or over funded status, contributions
449	449	and any other information deeme d relevant by the Board of Trustees.
450	450	The annual report shall be written in s uch a manner as to permit a
451	451	readily understandable means for analyzing the financial condition
452	452	and performance of the System for the fiscal year.
453	453	J. 1. The Board of Trustees may approve a two percent (2%)
454	454	cost-of-living adjustment, pursuant to the schedule prescribed by
455	455	this subsection for persons who have received benefits from the
456	456	System for one or more years. The Board of Trustees may only
457	457	approve a cost-of-living adjustment when the System’s funded ratio,
458	458	according to the latest annual actuarial valu ation, exceeds a
459	459	percentage as prescribed in paragraph 2 of this subsection;
460	460	provided, a cost-of-living adjustment shall not be granted if the
461	461	adjustment would cause the funding r atio of the System to drop below
462	462	the percentage which authorized the adjustment.
463	463	RBS No. 1050
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514	514	2. Except as provided in paragraph 1 of this subsection, a
515	515	cost-of-living adjustment may be approved by the Board of Trustees
516	516	if the funded ratio of the System exceeds eighty percent (80%).
517	517	Subsequent cost-of-living adjustments may be approved each t ime
518	518	thereafter that the System ’s funded ratio increases by two and one -
519	519	half percent (2 1/2%) from the percentage which authorized the
520	520	previous cost-of-living adjustment.
521	521
522	522	60-1-1050 RD 12/20/2024 2:40:49 PM

Oklahoma 2025 Regular Session

Oklahoma Senate Bill SB88 Compare Versions