1| STATE OF OKLAHOMA |
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2| 1st Session of the 59th Legislature (2023) |
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3|HOUSE BILL 2320 By: Hilbert |
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6| AS INTRODUCED |
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7| An Act relating to the Teachers' Retirement System; |
| amending 70 O.S. 2021, Section 17-116.10, which |
8| relates to postretirement employment; modifying |
| provisions relating to retirement benefits; providing |
9| an effective date; and declaring an emergency. |
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13|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: |
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14| SECTION 1. AMENDATORY 70 O.S. 2021, Section 17-116.10, |
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15|is amended to read as follows: |
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16| Section 17-116.10 A. Subject to the requirements of Section |
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17|6-101.2 of this title and any other applicable requirements of law, |
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18|a member may enter into postretirement employment with a public |
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19|school of Oklahoma and still receive monthly retirement benefits |
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20|subject to the following limitations: |
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21| 1. A retired member is not eligible to be employed by the |
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22|public schools of Oklahoma, in any capacity, for sixty (60) calendar |
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23|days between the retiree's last day of preretirement public |
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24|education employment and any postretirement public education |
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1|employment. For purposes of this section, the term "last day of |
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2|preretirement employment" shall mean the last day the employee is |
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3|required to be physically present on the job to complete the terms |
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4|of the employment contract or agreement. An employee on paid leave |
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5|is still considered to be employed for purposes of this section. |
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6|Employment under any conditions during this time, volunteer services |
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7|for the purpose of obtaining a paid position at a later date, or |
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8|payment at a later time for services performed during this time |
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9|period shall cause the forfeiture of all retirement benefits |
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10|received during the period; |
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11| 2. Unless otherwise provided in paragraph 3 of this subsection, |
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12|earnings from the public schools may not exceed one-half (1/2) of |
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13|the member's final average salary used in computing retirement |
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14|benefits, or the Earnings Limitation for employees allowed by the |
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15|Social Security Administration, whichever is less. For retired |
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16|members under the age of sixty-two (62) years, the limit on allowed |
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17|earnings from the public schools of Oklahoma for employment for the |
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18|performance of duties ordinarily performed by classified or |
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19|nonclassified personnel shall be the lesser of Fifteen Thousand |
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20|Dollars ($15,000.00) or one-half (1/2) of the member's final average |
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21|salary used in computing retirement benefits unless the earnings |
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22|limitation allowed by the Social Security Administration would be |
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23|greater than Fifteen Thousand Dollars ($15,000.00). For retired |
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24|members sixty-two (62) years of age or older the limit on allowed |
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1|earnings from the public schools of Oklahoma for the performance of |
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2|duties ordinarily performed by classified or nonclassified personnel |
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3|shall be the lesser of Thirty Thousand Dollars ($30,000.00) or |
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4|one-half (1/2) of the member's final average salary used in |
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5|computing retirement benefits. For purposes of this paragraph, the |
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6|following shall apply: |
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7| a. earnings shall mean "regular annual compensation" as |
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8| defined in paragraph (25) of Section 17-101 of this |
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9| title, and shall include any payment by a public |
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10| school for services rendered by a retired member who |
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11| is employed for any purpose whatsoever. Supplemental |
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12| retirement payments paid by a former public school |
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13| employer pursuant to subsection 9 of Section 17-105 of |
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14| this title or other state law shall not be considered |
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15| as earnings, |
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16| b. the Earnings Limitation for employees allowed by the |
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17| Social Security Administration to workers between the |
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18| age of sixty-two (62) years and sixty-five (65) years |
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19| shall apply to retired members below the age of |
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20| sixty-two (62) years, |
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21| c. the limit on allowed earnings from the public schools |
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22| shall be automatically adjusted effective the first |
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23| day of January of each year to reflect the current |
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1| Earnings Limitation for employees as determined from |
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2| time to time by the Social Security Administration, |
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3| d. the earnings limit for the calendar year in which a |
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4| member retires shall be one-twelfth (1/12) of the |
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5| annual limit multiplied by the number of months the |
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6| member is eligible to work and receive payments from |
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7| the public schools of Oklahoma, |
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8| e. earnings in excess of the maximum limit on allowed |
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9| earnings from public schools of Oklahoma shall result |
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10| in a loss of future retirement benefits for the year |
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11| the postretirement employment was performed of One |
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12| Dollar ($1.00) for each One Dollar ($1.00) earned over |
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13| the maximum allowed earnings amount, |
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14| f. for those members age seventy (70) years and over, the |
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15| earnings in excess of the maximum limit allowed |
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16| earnings from public schools of Oklahoma shall be |
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17| one-half (1/2) the member's final average salary used |
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18| in computing retirement benefits. However, any |
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19| retired member receiving benefits from the Retirement |
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20| System who reached age seventy (70) years prior to |
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21| July 1, 1991, shall not be restricted by the earnings |
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22| limits pursuant to this subparagraph until January 1, |
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23| 1994. To qualify for the provisions of this |
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24| subparagraph, the member must be employed less than |
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1| one-half (1/2) time compared to other full-time |
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2| employees in similar positions; |
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3| 3. Notwithstanding paragraph 2 of this subsection, a A retired |
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4|classified or nonclassified member who has been retired for |
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5|thirty-six (36) or more months and who is employed by a public |
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6|school to perform duties ordinarily performed by classified or |
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7|nonclassified personnel shall be able to receive annualized earnings |
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8|from the public school with no reduction in retirement benefits |
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9|regardless of the amount of annualized earnings. For a period of |
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10|three (3) years beginning July 1, 2017, members who have retired as |
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11|of July 1, 2017, as active classroom teachers, who have been retired |
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12|and receiving a benefit for at least one (1) year, and who have not |
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13|been employed by any public school during that one-year period, |
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14|shall be eligible to be reemployed as an active classroom teacher in |
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15|common or career tech school districts, with no limitations on |
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16|earnings. For a period of three (3) years beginning July 1, 2021, |
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17|members who have retired as of July 1, 2020, who have been retired |
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18|and receiving a benefit for at least one (1) year, and who have not |
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19|been employed by any public school during that one-year period, |
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20|shall be eligible to be reemployed as an active classroom teacher in |
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21|common or career tech school districts, with no limitations on |
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22|earnings. The one-year period starts with the retiree's last day of |
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23|preretirement public education employment. Members returning under |
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24|this section shall not be subject to any earning limitations |
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1|following the end of the three-year periods described in this |
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2|paragraph. Members returning under this section shall only be |
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3|employed pursuant to a temporary contract; and |
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4| 4. 3. A member shall be considered to be employed by a school |
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5|district to perform the duties ordinarily performed by classified or |
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6|nonclassified personnel if the member is hired by the school |
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7|district in the member's individual capacity to perform the duties |
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8|or if the member performs the duties through employment with a |
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9|proprietorship, partnership, corporation, limited liability company |
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10|or partnership, or any other business structure that has agreed or |
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11|contracted to provide the services to the school district. |
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12| B. A public school district that employs a retired member shall |
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13|be required to make contributions to the System for the retired |
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14|member in an amount as required in Section 17-108.1 and in paragraph |
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15|3 of subsection B of Section 17-116.2 of this title. |
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16| C. For purposes of this section, postretirement employment of |
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17|less than one thousand (1,000) hours per year with the Governor, the |
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18|State Senate, the House of Representatives or the Legislative |
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19|Service Bureau shall not be considered as postretirement employment |
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20|with a public school of Oklahoma. |
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21| D. The Board of Trustees of the Teachers' Retirement System of |
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22|Oklahoma shall promulgate such rules as are necessary to implement |
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23|the provisions of this section. |
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1| E. A member who has entered into postretirement employment with |
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2|a participating employer of the Teachers' Retirement System of |
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3|Oklahoma must fully comply with all the provisions of the rules |
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4|promulgated by the Board of Trustees pursuant to this section in |
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5|order to continue receiving his or her monthly retirement benefit. |
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6| SECTION 2. This act shall become effective July 1, 2023. |
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7| SECTION 3. It being immediately necessary for the preservation |
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8|of the public peace, health or safety, an emergency is hereby |
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9|declared to exist, by reason whereof this act shall take effect and |
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10|be in full force from and after its passage and approval. |
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12|59-1-6524 CMA01/10/23THOMAS E. |
|CUMMINS CONSULTING ACTUARY, INC. |
13|2512 E. 71st Street , Suite D 'b7 Tulsa, Oklahoma 74136 |
| (918) 492-9658 'b7 (918) 492- 9659 |
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|January 11, 2023 |
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|Representative Kyle Hilbert |
20|Room 406 |
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|Re: RBH No. 6524 |
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23|RBH No. 6524 removes the earnings limitation for Oklahoma Teachers |
|Retirement System retired participants who returned to covered |
24|employment and continue to receive benefit payments. They must have |
|been retired for at least 60 days. |
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2| RBH No. 6524 is a fiscal bill as defined by OPLAAA. The change can |
|or might encourage active teachers to retire sooner since they will |
3|able to return to teaching while receiving retirement benefits. |
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|I am a member of the American Academy of Actuaries and meet the |
5|Qualification Standards of the American Academy of Actuaries to |
|render the actuarial opinion herein. |
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7|Thomas E. Cummins |
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8|Thomas E. Cummins, MAAA |
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