1| HOUSE OF REPRESENTATIVES - FLOOR VERSION |
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2| STATE OF OKLAHOMA |
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3| 1st Session of the 59th Legislature (2023) |
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4|COMMITTEE SUBSTITUTE |
|FOR |
5|HOUSE BILL NO. 2528 By: Lepak |
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6| |
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7| |
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8| COMMITTEE SUBSTITUTE |
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9| An Act relating to retirement; amending 70 O.S. 2021, |
| Sections 17-101, as amended by Section 2, Chapter |
10| 121, O.S.L. 2022, 17-103, 17-105, 17-105.1, 17-106.3, |
| 17-107, 17-108, and 17-116.10 (70 O.S. Supp. 2022, |
11| Section 17-101), which relate to the Teachers' |
| Retirement System of Oklahoma; updating references; |
12| deleting terms; modifying definitions; modifying how |
| members shall make proper application for retirement; |
13| providing membership details; providing procedure at |
| joint annuitant's death; modifying retirement |
14| options; releasing System of liability under certain |
| circumstances; modifying how certain expenses are to |
15| be paid; modifying earnings limits; repealing 70 O.S. |
| 2021, Sections 17-104 and 17-114.2, which relate to |
16| the Teachers' Retirement System of Oklahoma; and |
| declaring an emergency. |
17| |
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18| |
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19| |
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20|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: |
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21| SECTION 1. AMENDATORY 70 O.S. 2021, Section 17-101, as |
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22|amended by Section 2, Chapter 121, O.S.L. 2022 (70 O.S. Supp. 2022, |
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23|Section 17-101), is amended to read as follows: |
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24| |
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1| Section 17-101. The following words and phrases as used in |
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2|Section 17-101 et seq. of this title, unless a different meaning is |
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3|clearly required by the context, shall have the following meanings: |
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4| (1) "Retirement system" shall mean the Teachers' Retirement |
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5|System of Oklahoma, as defined in Section 17-102 of this title. |
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6| (2) "Public school" shall mean a school district, a state |
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7|college or university, the State Board of Education, the State Board |
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8|of Career and Technology Education, and any other state educational |
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9|entity conducted within the state supported wholly or partly by |
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10|public funds and operating under the authority and supervision of a |
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11|legally constituted board or agency having authority and |
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12|responsibility for any function of public education. Public school |
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13|shall also mean a tuition free, nonprofit alternative school of |
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14|choice that provides education, therapeutic counseling, and outreach |
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15|programs which is aligned with a school district and which receives |
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16|grant funds from governmental sources. |
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17| (3) "Classified personnel" shall mean any teacher, principal, |
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18|superintendent, supervisor, administrator, librarian, certified or |
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19|registered nurse, college professor, or college president whose |
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20|salary is paid wholly or in part from public funds. An employee of |
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21|any state department, board, board of regents, or board of trustees, |
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22|who is in a supervisory or an administrative position, the function |
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23|of which is primarily devoted to public education, shall be |
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24|considered classified personnel under the meaning of Section 17-101 |
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1|et seq. of this title, at the discretion of the Board of Trustees of |
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2|the Teachers' Retirement System. The term "teacher" shall also |
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3|include instructors and counselors employed by the Department of |
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4|Corrections and holding valid teaching certificates issued by the |
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5|State Department of Education. Provided, that a person employed by |
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6|the Department of Corrections as an instructor or counselor shall |
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7|have been actively engaged in the teaching profession for a period |
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8|of not less than three (3) years prior to employment to be eligible |
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9|to participate in the Teachers' Retirement System of Oklahoma. The |
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10|Department of Corrections shall contribute the employer's share to |
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11|the Teachers' Retirement System of Oklahoma. |
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12| (4) "Nonclassified optional personnel" shall include persons |
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13|hired as adjunct teachers pursuant to subsection G of Section |
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14|6-122.3 of this title, cooks, janitors, maintenance personnel not in |
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15|a supervisory capacity, bus drivers, noncertified or nonregistered |
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16|nurses, noncertified librarians, and clerical employees of the |
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17|public schools, state colleges, universities, or any state |
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18|department, board, board of regents, or board of trustees, the |
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19|functions of which are primarily devoted to public education and |
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20|whose salaries are paid wholly or in part from public funds. |
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21| (5) "Employer" shall mean the state and any of its designated |
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22|agents or agencies with responsibility and authority for public |
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23|education, such as boards of education of elementary and independent |
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24|school districts, boards of regents, boards of control, or any other |
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1|agency of and within the state by which a person may be employed for |
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2|service in public education. Employer shall also mean the board of |
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3|directors of a tuition free, nonprofit alternative school of choice |
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4|that provides education, therapeutic counseling, and outreach |
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5|programs which is aligned with a school district and which receives |
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6|grant funds from governmental sources. |
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7| (6) "Member" shall mean any teacher or other employee included |
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8|in the membership of the system as provided in Section 17-103 of |
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9|this title. |
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10| (7) "Board of Trustees" shall mean the board provided for in |
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11|Section 17-106 of this title to administer the retirement system. |
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12| (8) "Service" shall mean service as a classified or |
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13|nonclassified optional employee in the public school system, or any |
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14|other service devoted primarily to public education in the state. |
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15| (9) "Prior service" shall mean service rendered prior to July |
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16|1, 1943. |
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17| (10) "Membership service" shall mean service as a member of the |
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18|classified or nonclassified personnel as defined in paragraphs (3) |
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19|and (4) of this section. |
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20| (11) (9) "Creditable service" shall mean membership service |
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21|plus any prior other service authorized under this title. |
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22| (12) (10) "Annuitant" shall mean any person in receipt of a |
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23|retirement allowance as provided in this title an annuity as defined |
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24|in paragraph (14) of this section. |
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1| (13) (11) "Accumulated contributions" shall mean the sum of all |
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2|amounts deducted from the compensation of a member and credited to |
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3|his the member's individual account in the Teachers' Savings Fund, |
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4|together with applicable interest as of June 30, 1968. |
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5| (14) (12) "Earnable compensation" shall mean the full rate of |
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6|the compensation that would be payable to a member if he who worked |
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7|the full normal working time. |
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8| (15) (13) "Average salary": |
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9| (a) for those members who joined the System prior to July |
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10| 1, 1992, shall mean the average of the salaries for |
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11| the three (3) years on which the highest contributions |
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12| to the Teachers' Retirement System was were paid not |
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13| to exceed the maximum contribution level specified in |
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14| Section 17-116.2 of this title or the maximum |
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15| compensation level specified in subsection (28) (24) |
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16| of this section. Provided, no member shall retire |
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17| with an average salary in excess of Twenty-five |
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18| Thousand Dollars ($25,000.00) unless the member has |
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19| made the required election and paid the required |
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20| contributions on such salary in excess of Twenty-five |
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21| Thousand Dollars ($25,000.00), or unless an eligible |
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22| member fulfills the requirements of Section 17-116.2C |
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23| of this title in order to have pre-cap removal service |
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24| included in the retirement benefit computation of the |
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1| member using the regular annual compensation of the |
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2| member for any pre-cap removal year of service so |
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3| included subject to the maximum average salary amount, |
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4| and |
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5| (b) for those members who join the System after June 30, |
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6| 1992, shall mean the average of the salaries for five |
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7| (5) consecutive years on which the highest |
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8| contribution contributions to the Teachers' Retirement |
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9| System was were paid. Only salary on which required |
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10| contributions have been made may be used in computing |
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11| average salary. |
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12| (16) (14) "Annuity" shall mean payments for life derived from |
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13|the "accumulated contributions" of a member. All annuities shall be |
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14|payable in equal monthly installments a lifetime benefit payable in |
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15|fixed monthly installments. |
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16| (17) "Pension" shall mean payments for life derived from money |
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17|provided by the employer. All pensions shall be payable in equal |
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18|monthly installments. |
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19| (18) (15) "Monthly retirement Retirement allowance" is |
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20|one-twelfth (1/12) of the annual retirement allowance benefit which |
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21|shall be payable monthly. |
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22| (19) (16) "Retirement Benefit Fund" shall mean the fund from |
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23|which all retirement benefits shall be paid based on such mortality |
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24|tables as shall be adopted by the Board of Trustees. |
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1| (20) (17) "Actuary" shall mean a person or firm especially |
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2|skilled through training and experience in financial calculation |
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3|respecting the expectancy and duration of life. |
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4| (21) (18) "Actuarial equivalent" shall mean a benefit of equal |
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5|value when computed upon the basis of such mortality and other |
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6|tables as shall be adopted by the Board of Trustees. |
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7| (22) (19) The masculine pronoun, whenever used, shall include |
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8|the feminine. |
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9| (23) (20) "Actuarially determined cost" shall mean the single |
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10|sum which is actuarially equivalent in value to a specified pension |
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11|annuity amount as determined on the basis of mortality and interest |
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12|assumptions adopted by the Board of Trustees. |
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13| (24) (21) "Normal retirement age" means the earliest date upon |
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14|which: |
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15| (a) a member reaches the age sixty-two (62) with respect |
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16| to a member whose first creditable service occurs |
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17| prior to November 1, 2011, unless the member reaches a |
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18| normal retirement date pursuant to subparagraph (c) or |
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19| subparagraph (d) of this paragraph, |
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20| (b) a member reaches the age of sixty-five (65) with |
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21| respect to a member whose first creditable service |
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22| occurs on or after November 1, 2011, or with respect |
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23| to a member whose first creditable service occurs on |
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24| or after November 1, 2011, reaches a normal retirement |
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1| date pursuant to subparagraph (d) of this paragraph |
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2| having attained a minimum age of sixty (60) years, |
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3| (c) the age at which the sum of a member's age and number |
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4| of years of creditable service total eighty (80), with |
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5| respect to a member whose first creditable service |
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6| occurred prior to July 1, 1992, and who does not reach |
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7| a normal retirement age pursuant to subparagraph (a) |
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8| of this paragraph, or |
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9| (d) the age at which the sum of a member's age and number |
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10| of years of creditable service total ninety (90), with |
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11| respect to a member whose first creditable service |
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12| occurred on or after July 1, 1992, but prior to |
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13| November 1, 2011, if the member does not reach a |
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14| normal retirement age pursuant to subparagraph (a) of |
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15| this paragraph. |
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16| (25) (22) "Regular annual compensation" means salary plus |
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17|fringe benefits, excluding the flexible benefit allowance pursuant |
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18|to Section 26-105 of this title and for purposes pursuant to Section |
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19|17-101 et seq. of this title. For purposes of this definition, |
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20|regular annual compensation shall include: |
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21| (a) salary which accrues on a regular basis in proportion |
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22| to the service performed including payments for staff |
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23| development, |
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24| |
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1| (b) amounts that would otherwise qualify as salary under |
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2| paragraph (a) of this subsection but are not received |
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3| directly by the member pursuant to a good faith, |
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4| voluntary written salary reduction agreement in order |
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5| to finance payments to a deferred compensation or |
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6| tax-sheltered annuity program or to finance benefit |
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7| options under a cafeteria plan qualifying under the |
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8| United States Internal Revenue Code, 26 U.S.C., |
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9| Section 101 et seq., |
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10| (c) group health and disability insurance, group term |
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11| life insurance, annuities, and pension plans, provided |
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12| on a periodic basis to all qualified employees of the |
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13| employer, which qualify as fringe benefits under the |
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14| United States Internal Revenue Code, and |
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15| (d) excluded from regular annual compensation are: |
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16| 1. expense reimbursement payments, |
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17| 2. office, vehicle, housing, or other maintenance |
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18| allowances, |
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19| 3. the flexible benefit allowance provided pursuant |
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20| to Section 26-105 of this title, |
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21| 4. payment for unused vacation and sick leave, |
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22| 5. any payment made for reason of termination or |
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23| retirement not specifically provided for in |
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24| subparagraphs (a) through (c) of this subsection, |
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1| 6. maintenance or other nonmonetary compensation, |
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2| 7. payment received as an independent contractor or |
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3| consultant, pursuant to a lawful contract which |
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4| complies with the requirements of subsection B of |
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5| Section 6-101.2 of this title, |
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6| 8. any benefit payments not made pursuant to a |
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7| valid employment agreement, |
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8| 9. compensation for clinical related activity |
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9| performed in the University of Oklahoma Health |
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10| Sciences Center (OUHSC) Professional Practice |
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11| Plan or Oklahoma State University Center for |
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12| Health Sciences (OSU-CHS) Professional Practice |
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13| Plan, and |
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14| 10. any other compensation not described in |
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15| subparagraphs (a) through (c) of this subsection. |
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16| (26) "Teacher" means classified personnel and nonclassified |
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17|optional personnel. |
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18| (27) (23) "Active classroom teacher" means a person employed by |
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19|a school district to teach students specifically identified classes |
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20|for specifically identified subjects during the course of a |
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21|semester, and who holds a valid certificate or license issued by and |
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22|in accordance with the rules and regulations of the State Board of |
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23|Education. |
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24| |
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1| (28) (24) "Maximum compensation level" shall, except as |
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2|otherwise authorized pursuant to the provisions of Section 17-116.2C |
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3|of this title, mean: |
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4| (a) Twenty-five Thousand Dollars ($25,000.00) for |
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5| creditable service authorized and performed prior to |
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6| July 1, 1995, for members not electing a higher |
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7| maximum compensation level, |
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8| (b) Forty Thousand Dollars ($40,000.00) for creditable |
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9| service authorized and performed prior to July 1, |
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10| 1995, for members electing a maximum compensation |
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11| level in excess of Twenty-five Thousand Dollars |
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12| ($25,000.00), |
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13| (c) Twenty-seven Thousand Five Hundred Dollars |
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14| ($27,500.00) for members who, as of June 30, 1995, had |
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15| elected to have a maximum compensation level not in |
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16| excess of Twenty-five Thousand Dollars ($25,000.00), |
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17| and who were employed by an entity or institution |
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18| within The Oklahoma State System of Higher Education |
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19| for creditable service authorized and performed on or |
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20| after July 1, 1995, but not later than June 30, 1996, |
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21| if such member does not elect a higher maximum |
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22| compensation level for this period as authorized by |
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23| Section 17-116.2A of this title, |
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24| |
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1| (d) Thirty-two Thousand Five Hundred Dollars ($32,500.00) |
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2| for members employed by a comprehensive university if |
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3| the member meets the requirements imposed by Section |
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4| 17-116.2A of this title and the member elects to |
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5| impose a higher maximum compensation level for service |
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6| performed on or after July 1, 1995, but not later than |
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7| June 30, 1996, |
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8| (e) Forty-four Thousand Dollars ($44,000.00) for members |
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9| who, as of June 30, 1995, had elected to have a |
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10| maximum compensation level in excess of Twenty-five |
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11| Thousand Dollars ($25,000.00), and who were employed |
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12| by an entity or institution within The Oklahoma State |
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13| System of Higher Education for creditable service |
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14| authorized and performed on or after July 1, 1995, but |
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15| not later than June 30, 1996, if such member does not |
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16| elect a higher maximum compensation level for this |
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17| period as authorized by Section 17-116.2A of this |
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18| title, |
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19| (f) Forty-nine Thousand Dollars ($49,000.00) for members |
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20| employed by a comprehensive university if the member |
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21| meets the requirements imposed by Section 17-116.2A of |
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22| this title and the member elects to impose a higher |
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23| maximum compensation level for service performed on or |
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24| after July 1, 1995, but not later than June 30, 1996, |
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1| (g) the following amounts for creditable service |
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2| authorized and performed by members employed by a |
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3| comprehensive university, based upon the election of |
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4| the member in effect as of June 30, 1995: |
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5| 1. for members who elected a maximum compensation |
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6| level not in excess of Twenty-five Thousand |
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7| Dollars ($25,000.00): |
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8| (i) Thirty-two Thousand Five Hundred Dollars |
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9| ($32,500.00) for service authorized and |
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10| performed on or after July 1, 1996, but not |
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11| later than June 30, 1997, |
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12| (ii) Thirty-seven Thousand Five Hundred Dollars |
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13| ($37,500.00) for service authorized and |
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14| performed on or after July 1, 1997, but not |
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15| later than June 30, 1998, |
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16| (iii) Forty-two Thousand Five Hundred Dollars |
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17| ($42,500.00) for service authorized and |
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18| performed on or after July 1, 1998, but not |
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19| later than June 30, 2000, |
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20| (iv) Forty-seven Thousand Five Hundred Dollars |
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21| ($47,500.00) for service authorized and |
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22| performed on or after July 1, 2000, but not |
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23| later than June 30, 2001, |
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24| |
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1| (v) Fifty-two Thousand Five Hundred Dollars |
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2| ($52,500.00) for service authorized and |
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3| performed on or after July 1, 2001, but not |
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4| later than June 30, 2002, |
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5| (vi) Fifty-seven Thousand Five Hundred Dollars |
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6| ($57,500.00) for service authorized and |
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7| performed on or after July 1, 2002, but not |
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8| later than June 30, 2003, |
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9| (vii) Sixty-two Thousand Five Hundred Dollars |
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10| ($62,500.00) for service authorized and |
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11| performed on or after July 1, 2003, but not |
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12| later than June 30, 2004, |
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13| (viii) Sixty-seven Thousand Five Hundred Dollars |
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14| ($67,500.00) for service authorized and |
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15| performed on or after July 1, 2004, but not |
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16| later than June 30, 2005, |
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17| (ix) Seventy-two Thousand Five Hundred Dollars |
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18| ($72,500.00) for service authorized and |
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19| performed on or after July 1, 2005, but not |
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20| later than June 30, 2006, |
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21| (x) Seventy-seven Thousand Five Hundred Dollars |
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22| ($77,500.00) for service authorized and |
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23| performed on or after July 1, 2006, but not |
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24| later than June 30, 2007, and |
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1| (xi) the full amount of regular annual |
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2| compensation for service authorized and |
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3| performed on or after July 1, 2007, and |
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4| 2. for members who elected a maximum compensation |
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5| level in excess of Twenty-five Thousand Dollars |
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6| ($25,000.00): |
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7| (i) Forty-nine Thousand Dollars ($49,000.00) for |
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8| service authorized and performed on or after |
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9| July 1, 1996, but not later than June 30, |
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10| 1997, |
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11| (ii) Fifty-four Thousand Dollars ($54,000.00) for |
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12| service authorized and performed on or after |
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13| July 1, 1997, but not later than June 30, |
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14| 1998, |
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15| (iii) Fifty-nine Thousand Dollars ($59,000.00) for |
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16| service authorized and performed on or after |
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17| July 1, 1998, but not later than June 30, |
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18| 2000, |
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19| (iv) Sixty-four Thousand Dollars ($64,000.00) for |
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20| service authorized and performed on or after |
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21| July 1, 2000, but not later than June 30, |
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22| 2001, |
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23| |
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24| |
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1| (v) Sixty-nine Thousand Dollars ($69,000.00) for |
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2| service authorized and performed on or after |
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3| July 1, 2001, but not later than June 30, |
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4| 2002, |
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5| (vi) Seventy-four Thousand Dollars ($74,000.00) |
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6| for service authorized and performed on or |
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7| after July 1, 2002, but not later than June |
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8| 30, 2003, |
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9| (vii) Seventy-nine Thousand Dollars ($79,000.00) |
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10| for service authorized and performed on or |
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11| after July 1, 2003, but not later than June |
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12| 30, 2004, |
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13| (viii) Eighty-four Thousand Dollars ($84,000.00) |
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14| for service authorized and performed on or |
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15| after July 1, 2004, but not later than June |
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16| 30, 2005, |
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17| (ix) Eighty-nine Thousand Dollars ($89,000.00) |
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18| for service authorized and performed on or |
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19| after July 1, 2005, but not later than June |
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20| 30, 2006, |
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21| (x) Ninety-four Thousand Dollars ($94,000.00) |
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22| for service authorized and performed on or |
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23| after July 1, 2006, but not later than June |
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24| 30, 2007, and |
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1| (xi) the full amount of regular annual |
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2| compensation for service authorized and |
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3| performed on or after July 1, 2007, and |
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4| (h) the full amount of regular annual compensation of: |
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5| 1. a member of the retirement system not employed by |
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6| an entity or institution within The Oklahoma |
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7| State System of Higher Education for all |
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8| creditable service authorized and performed on or |
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9| after July 1, 1995, |
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10| 2. a member of the retirement system first employed |
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11| on or after July 1, 1995, by an entity or |
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12| institution within The Oklahoma State System of |
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13| Higher Education for all creditable service |
| |
14| authorized and performed on or after July 1, |
| |
15| 1995, but not later than June 30, 1996, |
| |
16| 3. a member of the retirement system employed by an |
| |
17| entity or institution within The Oklahoma State |
| |
18| System of Higher Education, other than a |
| |
19| comprehensive university, if the member elects to |
| |
20| impose a higher maximum compensation level for |
| |
21| service performed on or after July 1, 1995, but |
| |
22| not later than June 30, 1996, pursuant to |
| |
23| subsection B of Section 17-116.2A of this title, |
| |
24| |
| |
arsid1992478 HB2528 HFLR Page 17
___________________________________________________________________________
1| 4. a member of the retirement system who is first |
| |
2| employed on or after July 1, 1996, by any entity |
| |
3| or institution within The Oklahoma State System |
| |
4| of Higher Education including a comprehensive |
| |
5| university, for creditable service authorized and |
| |
6| performed on or after July 1, 1996, |
| |
7| 5. a member of the retirement system who, as of July |
| |
8| 1, 1996, is subject to a maximum compensation |
| |
9| level pursuant to paragraph (g) of this |
| |
10| subsection if the member terminates service with |
| |
11| a comprehensive university and is subsequently |
| |
12| reemployed by a comprehensive university, |
| |
13| 6. a member of the retirement system employed by a |
| |
14| comprehensive university for all service |
| |
15| performed on and after July 1, 2007, or |
| |
16| 7. an eligible member of the retirement system who |
| |
17| fulfills the requirements of Section 17-116.2C of |
| |
18| this title with respect to pre-cap removal |
| |
19| service included in the retirement benefit |
| |
20| computation of the member at the average salary |
| |
21| of the member subject to the maximum average |
| |
22| salary amount. |
| |
23| (29) (25) "Comprehensive university" shall mean: |
| |
24| |
| |
arsid1992478 HB2528 HFLR Page 18
___________________________________________________________________________
1| (a) the University of Oklahoma and all of its constituent |
| |
2| agencies including the University of Oklahoma Health |
| |
3| Sciences Center, the University of Oklahoma Law |
| |
4| Center, and the Geological Survey, and |
| |
5| (b) Oklahoma State University and all of its constituent |
| |
6| agencies including the Oklahoma State University |
| |
7| Agricultural Experiment Station, the Oklahoma State |
| |
8| University Agricultural Extension Division, the |
| |
9| Oklahoma State University College of Veterinary |
| |
10| Medicine, the Oklahoma State University Center for |
| |
11| Health Sciences, the Technical Branch at Oklahoma |
| |
12| City, the Oklahoma State University Institute of |
| |
13| Technology-Okmulgee, and Oklahoma State |
| |
14| University-Tulsa. |
| |
15| (30) "Retirement contract" means the document prepared by the |
| |
16|Teachers' Retirement System upon member request, which incorporates |
| |
17|member's selected retirement option, and which must be executed and |
| |
18|submitted to the Teachers' Retirement System no less than thirty |
| |
19|(30) days prior to the projected retirement date. |
| |
20|
1| A. All classified personnel shall become members of the |
| |
2|retirement system as a condition of their employment;. |
| |
3| B. For the period from August 2, 1969, to the effective date of |
| |
4|this act June 30, 2021, all full-time nonclassified optional |
| |
5|personnel regularly employed for more than one (1) year may join the |
| |
6|Teachers' Retirement System of Oklahoma subject to the rules and |
| |
7|regulations adopted pursuant to the Teachers' Retirement System. On |
| |
8|or after the effective date of this act July 1, 2021, all |
| |
9|nonclassified optional personnel regularly employed for twenty (20) |
| |
10|hours or more per week may join the System upon hiring or |
| |
11|eligibility, subject to the provisions of subsection C of this |
| |
12|section and the rules and regulations adopted by the System pursuant |
| |
13|to this act. |
| |
14| C. 1. A nonclassified optional employee shall have thirty (30) |
| |
15|days from the initial date of hire or eligibility to make a one-time |
| |
16|irrevocable written election to opt out of participation in the |
| |
17|System, in a manner required by the Board of Trustees. If an |
| |
18|eligible employee fails to make an election within the thirty-day |
| |
19|period, the eligible employee shall be deemed to participate in the |
| |
20|System. |
| |
21| 2. If an eligible employee elects to opt out of participation |
| |
22|in the System, the employee shall not make any required employee |
| |
23|contributions to the System and his or her the employee's employer |
| |
24|shall not make any required employer contributions to the System. |
| |
arsid1992478 HB2528 HFLR Page 20
___________________________________________________________________________
1| 3. If an eligible nonclassified optional employee elects to |
| |
2|participate does not timely opt out of participation in the System, |
| |
3|the employee shall make employee contributions to the System |
| |
4|pursuant to Section 17-116.2 of this title and the employer shall |
| |
5|make employer contributions to the System pursuant to Section |
| |
6|17-108.1 of this title. Nothing in this paragraph shall be |
| |
7|construed to prohibit the employer from making the contribution of |
| |
8|the employee to the System on behalf of the employee. |
| |
9| 4. A nonclassified optional employee who opts out of |
| |
10|participation in the System shall be ineligible for future |
| |
11|participation in the System; provided, however, that if the employee |
| |
12|is hired for a classified position, he or she shall become a member |
| |
13|of the System pursuant to subsection A of this section but shall not |
| |
14|be eligible for prior service credit for service performed while |
| |
15|employed in a nonclassified position during which the employee opted |
| |
16|out of participation in the System. |
| |
17| 5. Any nonclassified optional employee employed on the |
| |
18|effective date of this act shall make an irrevocable written |
| |
19|election to participate in or opt out of the System pursuant to |
| |
20|paragraph 1 of this subsection. If the employee fails to make an |
| |
21|election within thirty (30) days from the effective date of this |
| |
22|act, the employee shall be deemed to participate in the System, |
| |
23|subject to the provisions of paragraph 3 of this subsection. |
| |
24| |
| |
arsid1992478 HB2528 HFLR Page 21
___________________________________________________________________________
1| optional with the individual entrance into the retirement system for |
| |
6|members in any such class their individual entrance into the |
| |
7|retirement system optional. |
| |
8| E. Should any non-vested member, with less than ten (10) years |
| |
9|of teaching service in Oklahoma, in any period of six (6) |
| |
10|consecutive years after becoming a member be absent from service |
| |
11|more than five (5) years, withdraw his or her contributions, retire |
| |
12|or die, he or she shall thereupon cease to be a member. The |
| |
13|provisions of this paragraph shall not apply to any member of the |
| |
14|Teachers' Retirement System who has been a member of such classes of |
| |
15|military services as may be approved by the Board of Trustees, until |
| |
16|a period of one and one-half (1 1/2) years from date of termination |
| |
17|of such service shall have elapsed. |
| |
18| F. Effective November 1, 2019, a retired member of the |
| |
19|Teachers' Retirement System who becomes employed by the State |
| |
20|Department of Education for the first time on or after November 1, |
| |
21|2019, shall have the option to remain a member of the Teachers' |
| |
22|Retirement System subject to any applicable limitations placed on |
| |
23|retired members returning to work or may choose to participate as an |
| |
24|active member in the Oklahoma Public Employees Retirement System as |
| |
arsid1992478 HB2528 HFLR Page 22
___________________________________________________________________________
1|an active member Defined Benefit Plan or the Oklahoma Public |
| |
2|Employees Retirement System Defined Contribution System, whichever |
| |
3|is applicable under the laws and rules governing those systems. |
| |
4| SECTION 3. AMENDATORY 70 O.S. 2021, Section 17-105, is |
| |
5|amended to read as follows: |
| |
6| Section 17-105. (1) (a) Any member who has attained age |
| |
7|fifty-five (55) or who has completed thirty (30) years of creditable |
| |
8|service, as defined in Section 17-101 of this title, or for any |
| |
9|person who initially became a member prior to July 1, 1992, |
| |
10|regardless of whether there were breaks in service after July 1, |
| |
11|1992, whose age and number of years of creditable service total |
| |
12|eighty (80) may be retired upon proper application for retirement on |
| |
13|forms as established by the System and executing a retirement |
| |
14|contract. Such a retirement date will also apply to any person who |
| |
15|became a member of the sending system as defined in this act, prior |
| |
16|to July 1, 1992, regardless of whether there were breaks in service |
| |
17|after July 1, 1992. Any person who became a member after June 30, |
| |
18|1992, but prior to November 1, 2011, whose age and number of years |
| |
19|of creditable service total ninety (90) may be retired upon proper |
| |
20|application for retirement and executing a retirement contract as |
| |
21|established by the System. Any person who becomes a member on or |
| |
22|after November 1, 2011, who attains the age of sixty-five (65) years |
| |
23|or who reaches a normal retirement date pursuant to subparagraph (d) |
| |
24|of paragraph (24) (21) of Section 17-101 of this title having |
| |
arsid1992478 HB2528 HFLR Page 23
___________________________________________________________________________
1|attained a minimum age of sixty (60) years may be retired upon |
| |
2|proper application for retirement and executing a retirement |
| |
3|contract as established by the System. The application shall be |
| |
4|filed on the form provided by the Board of Trustees for this |
| |
5|purpose, not less than sixty (60) days before the date of |
| |
6|retirement, provided that the Executive Director may waive the |
| |
7|sixty-day deadline for good cause shown as defined by the Board with |
| |
8|the System in a manner required by the Board of Trustees. |
| |
9| 1. The employer shall provide the System with the |
| |
10| following information for a retiring member, no later |
| |
11| than the fifteenth day of the month of retirement: |
| |
12| last day physically on the job; last day on payroll; |
| |
13| any regular compensation not already reported to the |
| |
14| System; and final unused sick leave balance. |
| |
15| 2. Failure to submit this information by the deadline, |
| |
16| or errors in submitted information that result in a |
| |
17| disqualification of retirement eligibility shall be |
| |
18| the responsibility of the employer. In cases where |
| |
19| the error results in disqualification of retirement |
| |
20| eligibility, it is the employer's responsibility to |
| |
21| reemploy the member, or retain the member on the |
| |
22| payroll, for the time period required to reach |
| |
23| eligibility, not exceeding two (2) months. |
| |
24| |
| |
arsid1992478 HB2528 HFLR Page 24
___________________________________________________________________________
1| (b) An individual who becomes a member of the Teachers' |
| |
2|Retirement System of Oklahoma after July 1, 1967, through October |
| |
3|31, 2017, shall be employed by the public schools, state colleges, |
| |
4|or universities of Oklahoma for a minimum of five (5) years and be a |
| |
5|contributing member of the Teachers' Retirement System of Oklahoma |
| |
6|for a minimum of five (5) years to qualify for monthly retirement |
| |
7|benefits from the Teachers' Retirement System of Oklahoma. |
| |
8| An individual who becomes a member of the Teachers' Retirement |
| |
9|System on or after November 1, 2017, shall be employed by the public |
| |
10|schools, state colleges or universities of Oklahoma for a minimum of |
| |
11|seven (7) years and be a contributing member of the Teachers' |
| |
12|Retirement System of Oklahoma for a minimum of seven (7) years to |
| |
13|qualify for monthly retirement benefits from the Teachers' |
| |
14|Retirement System of Oklahoma. |
| |
15| (c) Any member Individuals becoming members after July 1, 1967, |
| |
16|to October 31, 2017, with five (5) or more years of Oklahoma |
| |
17|teaching service and whose accumulated contributions during such |
| |
18|period have not been withdrawn shall be given an indefinite |
| |
19|extension of membership beginning with the sixth year following the |
| |
20|member's last contributing membership. |
| |
21| Individuals becoming members on or after November 1, 2017, with |
| |
22|seven (7) or more years of Oklahoma teaching service and whose |
| |
23|accumulated contributions during such period have not been withdrawn |
| |
24|shall be given an indefinite extension of membership beginning with |
| |
arsid1992478 HB2528 HFLR Page 25
___________________________________________________________________________
1|the sixth eighth year following his or her the member's last |
| |
2|contributing membership and shall become eligible to apply for |
| |
3|retirement and be retired upon attaining age fifty-five (55). |
| |
4| (2) An unclassified optional member who has retired or who |
| |
5|retires at sixty-two (62) years of age or older or whose retirement |
| |
6|is because of disability shall have his or her minimum retirement |
| |
7|benefits calculated on an average salary of Five Thousand Three |
| |
8|Hundred Fifty Dollars ($5,350.00) or, if a larger monthly allowance |
| |
9|would result, an amount arrived at pursuant to application of the |
| |
10|formula prescribed herein. |
| |
11| (3) No member shall receive a lesser retirement benefit than he |
| |
12|or she the member would have received under the law in effect at the |
| |
13|time he or she retired. Any individual under the Teachers' |
| |
14|Retirement System, who through error in stating the title of the |
| |
15|position which he or she the member held, may, at the discretion of |
| |
16|the Board of Trustees, be changed from the nonclassified optional |
| |
17|group to the classified group for the purpose of calculating |
| |
18|retirement benefits. |
| |
19| Any individual regardless of residence, who has a minimum of ten |
| |
20|(10) years of teaching in Oklahoma schools prior to July 1, 1943, or |
| |
21|who taught in Oklahoma schools prior to 1934 and thereafter taught a |
| |
22|minimum of ten (10) years and who does not qualify under the present |
| |
23|retirement System, or who has a minimum of thirty (30) years of |
| |
24|teaching in Oklahoma schools and has reached seventy (70) years of |
| |
arsid1992478 HB2528 HFLR Page 26
___________________________________________________________________________
1|age prior to July 1, 1984, and is not otherwise eligible to receive |
| |
2|any benefits from the retirement system shall receive a minimum of |
| |
3|One Hundred Fifty Dollars ($150.00) per month in retirement benefits |
| |
4|from the Teachers' Retirement System of Oklahoma plus any general |
| |
5|increase in benefits for annuitants as may be provided hereafter by |
| |
6|the Legislature. Each individual must apply to the Teachers' |
| |
7|Retirement System for such benefit and provide evidence to the |
| |
8|Teachers' Retirement System that the service was actually rendered. |
| |
9|The surviving spouse of any person who made application for the |
| |
10|benefit provided for by this paragraph during his or her lifetime |
| |
11|but did not receive the benefit may submit an application to the |
| |
12|System for payment of the benefit for those months during the |
| |
13|lifetime of the deceased person that he or she was eligible for but |
| |
14|did not receive the benefit. Upon approval of the application by |
| |
15|the Board of Trustees, the benefit shall be paid to the surviving |
| |
16|spouse in one lump sum. |
| |
17| his or her upon application of the member's |
| |
22|employer, any member who has been a contributing member for ten (10) |
| |
23|years may be retired by the System subsequent to the execution and |
| |
24|filing thereof, on a disability retirement allowance, provided that |
| |
arsid1992478 HB2528 HFLR Page 27
___________________________________________________________________________
1|it is found by the Medical Board after medical examination of such |
| |
2|member by a duly qualified physician that such member is mentally or |
| |
3|physically incapacitated for further performance of duty, that such |
| |
4|incapacity is likely to be permanent, and that such member should be |
| |
5|retired. The System shall rely on and give full consideration to |
| |
6|the conclusions and recommendations in the certified written report |
| |
7|of the Medical Board of the Teachers' Retirement System regarding |
| |
8|the disability application of such member. If the Medical Board |
| |
9|does not find that a member applying for disability retirement is |
| |
10|mentally or physically incapacitated for performance of duty or |
| |
11|otherwise eligible for a disability retirement, the application |
| |
12|shall then be considered by the Board of Trustees. If a member is |
| |
13|determined to be eligible for disability benefits pursuant to the |
| |
14|Social Security System, then such determination shall entitle the |
| |
15|member to the authorized disability retirement allowance benefits |
| |
16|provided by law. For members who are not eligible for disability |
| |
17|benefits pursuant to the Social Security System, the Board of |
| |
18|Trustees and the Medical Board shall apply the same standard for |
| |
19|which provision is made in the first two sentences of this |
| |
20|subsection for determining the eligibility of a person for such |
| |
21|disability benefits in making a determination of eligibility for |
| |
22|disability benefits as authorized by this subsection. |
| |
23| (6) (a) A member who at the time of retirement has been found |
| |
24|to be permanently physically or mentally incapacitated to perform |
| |
arsid1992478 HB2528 HFLR Page 28
___________________________________________________________________________
1|the necessary duties to continue in his or her the member's current |
| |
2|position shall receive a minimum monthly retirement payment for life |
| |
3|or until such time as the member may be found to be recovered to the |
| |
4|point where he or she the member may return to teaching. Any member |
| |
5|retired before July 1, 1992, shall be eligible to receive the |
| |
6|monthly retirement allowance benefit herein provided, but such |
| |
7|payment shall not begin until the first payment due him or her after |
| |
8|July 1, 1992, and shall not be retroactive. The Board of Trustees |
| |
9|is empowered to make such rules and regulations as it considers |
| |
10|proper to preserve equity in retirements under this provision, which |
| |
11|shall include a provision to protect the rights of the member's |
| |
12|spouse. |
| |
13| (b) A member who has qualified for retirement benefits under |
| |
14|disability retirement shall have the total monthly payment deducted |
| |
15|from his or her accumulated contributions plus interest earned and |
| |
16|any money remaining in the member's account after the above |
| |
17|deductions at the death of the member shall be paid in a lump sum to |
| |
18|the beneficiary or to the estate of the member. Provided, if the |
| |
19|deceased disabled member had thirty (30) years or more of creditable |
| |
20|service and the death occurred after June 30, 1981, and death |
| |
21|occurred prior to the disabled member receiving twelve monthly |
| |
22|retirement payments, a surviving spouse may elect to receive the |
| |
23|retirement benefit to which the deceased member would have been |
| |
24|entitled at the time of death under the Option 2 Plan of Retirement |
| |
arsid1992478 HB2528 HFLR Page 29
___________________________________________________________________________
1|provided for in subsection (8) of this section in lieu of the death |
| |
2|benefit provided for in this subsection and in subsection (12) of |
| |
3|this section. |
| |
4| (c) Once each year the System may require any disabled |
| |
5|annuitant who has not yet attained the age of sixty (60) years to |
| |
6|undergo a medical examination, such examination to be made at the |
| |
7|place of residence for the disabled annuitant or other place |
| |
8|mutually agreed upon by a physician or physicians designated by the |
| |
9|System. Should any disabled annuitant who has not yet attained the |
| |
10|age of sixty (60) years refuse to submit to at least one medical |
| |
11|examination in any such year by a physician or physicians designated |
| |
12|by the System his or her the member's allowance benefit may be |
| |
13|discontinued until he or she the member submits to such examination. |
| |
14| (d) Should the Medical Board report and certify to the Board of |
| |
15|Trustees that such disabled annuitant is engaged in or is able to |
| |
16|engage in a gainful occupation paying more than the difference |
| |
17|between his or her retirement allowance and the the member's average |
| |
18|final compensation and the annual benefit amount, and should the |
| |
19|Board of Trustees concur in such report, then the amount of his or |
| |
20|her pension the member's annual benefit shall be reduced to an |
| |
21|amount which, together with his or her retirement allowance and that |
| |
22|amount earnable by him or her added to the member's earnings from a |
| |
23|gainful occupation, shall equal the amount of his or her the |
| |
24|member's average final compensation. Should his or her the member's |
| |
arsid1992478 HB2528 HFLR Page 30
___________________________________________________________________________
1|earning capacity be later increased, the amount of his or her |
| |
2|pension the member's annual benefit may be further modified, |
| |
3|provided the new pension shall not exceed that amount of the pension |
| |
4|originally granted nor an amount, which when added to the amount |
| |
5|earnable by the member, together with his or her annuity, equals the |
| |
6|amount of his or her average final compensation reduced. |
| |
7| (e) Should a disabled annuitant be restored to active service, |
| |
8|his or her the member's disability retirement allowance benefit |
| |
9|shall cease and he or she the member shall again become a an active |
| |
10|member of the Teachers' Retirement System and shall make regular |
| |
11|contributions as required under this article. The unused portion of |
| |
12|his or her the member's accumulated contributions shall be |
| |
13|reestablished to his or her the member's credit in the Teachers' |
| |
14|Savings Fund. Any such prior service certificates on the basis of |
| |
15|which his or her the member's service was computed at the time of |
| |
16|his or her the member's retirement shall be restored to full force |
| |
17|and effect. |
| |
18| (7) Should a member before retirement under Section 1-101 |
| |
19|17-101 et seq. of this title make application for withdrawal duly |
| |
20|filed with the System, not earlier than four (4) months after the |
| |
21|date of termination of such service as a teacher eligible |
| |
22|employment, the contribution standing to the credit of his or her |
| |
23|the member's individual account in the Teachers' Savings Fund shall |
| |
24|be paid to him or her the member or, in the event of his or her the |
| |
arsid1992478 HB2528 HFLR Page 31
___________________________________________________________________________
1|member's death before retirement, shall be paid to such person or |
| |
2|persons as he or she the member shall have nominated by written |
| |
3|designation, duly executed designated in a manner required by the |
| |
4|Board of Trustees and filed with the System; provided, however, if |
| |
5|there be no designated beneficiary surviving upon such death, such |
| |
6|contributions shall be paid to his or her the member's |
| |
7|administrators, executors, or assigns, together with interest as |
| |
8|hereinafter provided. In lieu of a lump-sum settlement at the death |
| |
9|of the member, the amount of money the member has on deposit in the |
| |
10|Teachers' Savings Fund and the money the member has on deposit in |
| |
11|the Teachers' Deposit Fund may be paid in monthly payments to a |
| |
12|designated beneficiary, who must be the spouse, under the Maximum or |
| |
13|Option 1 Plan of Retirement providing the monthly payment shall be |
| |
14|not less than Twenty-five Dollars ($25.00) per month. The monthly |
| |
15|payment shall be the actuarial equivalent of the amount becoming due |
| |
16|at the member's death based on the sex of the spouse and the age the |
| |
17|spouse has attained at the last birthday prior to the member's |
| |
18|death. Provided further, if there be no designated beneficiary |
| |
19|surviving upon such death, and the contributions standing to the |
| |
20|credit of such member do not exceed Two Hundred Dollars ($200.00), |
| |
21|no part of such contributions shall be subject to the payment of any |
| |
22|expense of the last illness or funeral of the deceased member or any |
| |
23|expense of administration of the estate of such deceased and the |
| |
24|System, upon satisfactory proof of the death of such member and of |
| |
arsid1992478 HB2528 HFLR Page 32
___________________________________________________________________________
1|the name or names of the person or persons who would be entitled to |
| |
2|receive such contributions under the laws of descent and |
| |
3|distribution of the state, may authorize the payment of accumulated |
| |
4|contributions to such person or persons. A member terminating his |
| |
5|or her membership by withdrawal after June 30, 2003, shall have the |
| |
6|interest computed at a rate of interest determined by the Board of |
| |
7|Trustees and paid to him or her the member subject to the following |
| |
8|schedule: |
| |
9| (a) If termination occurs within sixteen (16) years from the |
| |
10|date membership began, fifty percent (50%) of such interest |
| |
11|accumulations shall be paid. |
| |
12| (b) With at least sixteen (16) but less than twenty-one (21) |
| |
13|years of membership, sixty percent (60%) of such interest |
| |
14|accumulations shall be paid. |
| |
15| (c) With at least twenty-one (21) but less than twenty-six (26) |
| |
16|years of membership, seventy-five percent (75%) of such interest |
| |
17|accumulations shall be paid. |
| |
18| (d) With at least twenty-six (26) years of membership, ninety |
| |
19|percent (90%) of such interest accumulations shall be paid. |
| |
20| In case of death of an active member, the interest shall be |
| |
21|calculated and restored to the member's account and paid to his or |
| |
22|her beneficiary. |
| |
23| (8) (a) In lieu of his or her retirement allowance the Maximum |
| |
24|Retirement Allowance payable throughout life for such an amount as |
| |
arsid1992478 HB2528 HFLR Page 33
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1|determined under this section, the member may select a retirement |
| |
2|allowance for a reduced amount payable under any of the following |
| |
3|options the present value of which is the actuarial equivalent |
| |
4|thereof. |
| |
5| (b) A member may select the option under which he or she |
| |
6|desires to retire at the end of the school year in which he or she |
| |
7|attains age seventy (70) and the option shall be binding and cannot |
| |
8|be changed. Provided further that if a member retires before age |
| |
9|seventy (70), no election of an option shall be effective in case an |
| |
10|annuitant dies before the first payment due under such option has |
| |
11|been received. |
| |
12| (c) The first payment of any benefit selected shall be made on |
| |
13|the first day of the month following approval of the retirement by |
| |
14|the System. If the named designated joint annuitant under Option 2 |
| |
15|or 3 dies at any time after the member's retirement date, but before |
| |
16|the death of the member, the member shall return to the retirement |
| |
17|benefit Maximum Plan of Retirement, including any post-retirement |
| |
18|benefit increases the member would have received had the member not |
| |
19|selected Option 2 or 3 of this subsection. The benefit retirement |
| |
20|allowance shall be determined at the date of death of the designated |
| |
21|joint annuitant. This increase shall become effective the first day |
| |
22|of the month following the date of death of the designated joint |
| |
23|annuitant, and shall be payable for the member's remaining lifetime. |
| |
24| The member shall notify the Teachers' Retirement System of Oklahoma |
| |
arsid1992478 HB2528 HFLR Page 34
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1|of the death of the designated joint annuitant in writing by |
| |
2|providing a copy of the joint annuitant's death certificate. In the |
| |
3|absence of the written notice death certificate being filed by the |
| |
4|member notifying the Teachers' Retirement System of Oklahoma of the |
| |
5|death of the designated joint annuitant within six (6) months of the |
| |
6|date of death, nothing in this subsection shall require the |
| |
7|Teachers' Retirement System of Oklahoma to pay more than six (6) |
| |
8|months of retrospective benefits increase. |
| |
9| Option 1. A member takes a slightly reduced retirement |
| |
10|allowance for life. If he or she the member dies before he or she |
| |
11|has received receiving in annuity payments the present value of his |
| |
12|or her the member's annuity as it was at the time of his or her |
| |
13|retirement, the balance shall be paid to his or her legal |
| |
14|representatives or to such person as he or she shall nominate the |
| |
15|member's beneficiary by written designation duly acknowledged and |
| |
16|filed with the System at the time of his or her retirement prior to |
| |
17|the member's death; or |
| |
18| Option 2. A member takes a reduced retirement allowance for |
| |
19|life. Upon the death of the member the payments shall continue to |
| |
20|the member's designated joint annuitant for the life of the joint |
| |
21|annuitant. The written designation of the joint annuitant must be |
| |
22|duly acknowledged and filed with the System at the time of the |
| |
23|member's retirement and, except as provided in paragraph (e) (d) of |
| |
24| |
| |
arsid1992478 HB2528 HFLR Page 35
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1|this subsection, cannot be changed after the effective date of the |
| |
2|member's retirement; or |
| |
3| Option 3. A member receives a reduced retirement allowance for |
| |
4|life. Upon the death of the member one-half (1/2) of the retirement |
| |
5|allowance paid the member shall be continued throughout the life of |
| |
6|the designated member's joint annuitant. A written designation of a |
| |
7|joint annuitant must be duly acknowledged and filed with the System |
| |
8|at the time of the member's retirement and, except as provided in |
| |
9|paragraph (e) (d) of this subsection, cannot be changed after the |
| |
10|effective date of the member's retirement; or |
| |
11| Option 4. Some Provided, the System may establish other |
| |
12|retirement options if certified by the actuary to be of equivalent |
| |
13|actuarial value to the member's retirement allowance. Other |
| |
14|retirement options shall be presented to the Board of Trustees for |
| |
15|approval at its discretion. These other benefit or benefits shall |
| |
16|be paid either to the member or, if applicable, to such joint |
| |
17|annuitant as he or she the member shall nominate, provided such |
| |
18|other benefit or benefits, together with the reduced retirement |
| |
19|allowance, shall be certified by the actuary to be of equivalent |
| |
20|actuarial value to his or her retirement allowance and shall be |
| |
21|approved by the System. |
| |
22| (d) (c) Provided that Option 2 and Option 3 shall not be |
| |
23|available if the member's expected benefit is less than fifty |
| |
24| |
| |
arsid1992478 HB2528 HFLR Page 36
___________________________________________________________________________
1|percent (50%) of the lump-sum actuarial equivalent and the |
| |
2|designated joint annuitant is not the spouse of the member. |
| |
3| (e) (d) A member who chose the maximum retirement benefit plan |
| |
4|Maximum Plan of Retirement at the time of retirement may make a |
| |
5|one-time election to choose either Option 2 or 3 and name the |
| |
6|member's spouse as designated joint annuitant if the member marries |
| |
7|after making the initial election. Such an election shall be made |
| |
8|within one (1) year of the date of marriage. The member shall |
| |
9|provide proof of a member's good health before the System will |
| |
10|permit a change to either Option 2 or 3 and the naming of a |
| |
11|designated joint annuitant. A medical examination conducted by a |
| |
12|licensed physician is required for purposes of determining good |
| |
13|health. Such examination must be approved by the Medical Board. |
| |
14|The member shall be required to provide proof of age for the new |
| |
15|joint annuitant. The System shall adjust the monthly benefit |
| |
16|retirement allowance to the actuarially equivalent amount based on |
| |
17|the new designated joint annuitant's age. The Board of Trustees |
| |
18|shall promulgate rules to implement the provisions of this |
| |
19|subsection. |
| |
20| (f) (e) A member who retires after the effective date of this |
| |
21|act July 1, 2010, and has selected a retirement allowance for a |
| |
22|reduced amount payable under one of the options provided for in this |
| |
23|subsection may make a one-time irrevocable election to select a |
| |
24|different option within sixty (60) days of the member's retirement |
| |
arsid1992478 HB2528 HFLR Page 37
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1|date. The beneficiary or joint annuitant designated by the member |
| |
2|at the time of retirement shall not be changed if the member makes |
| |
3|the election provided for in this paragraph. |
| |
4| (g) (f) Any individual who is eligible to be a beneficiary or |
| |
5|joint annuitant of a member under this subsection, and who is also a |
| |
6|beneficiary of a trust created under the Oklahoma Discretionary and |
| |
7|Special Needs Trust Act, Section 175.81 et seq. of Title 60 of the |
| |
8|Oklahoma Statutes, or a comparable Trust Act created under the laws |
| |
9|of another state, hereinafter collectively referred to as "Trust |
| |
10|Acts", may be a beneficiary or joint annuitant under this subsection |
| |
11|by having the trustee of the trust established for the benefit of |
| |
12|that individual named as the legal beneficiary or joint annuitant |
| |
13|under this subsection. The age of that beneficiary shall be used |
| |
14|for calculating any benefit payable to the trust under this |
| |
15|subsection. The beneficiary of such a trust shall be treated as the |
| |
16|beneficiary or joint annuitant under this subsection except that |
| |
17|payments of any benefits due under this subsection shall be payable |
| |
18|to the lawfully appointed trustee of the trust. The obligation of |
| |
19|the System to pay the beneficiary or joint annuitant under this |
| |
20|subsection shall be satisfied by payment to the trustee whom the |
| |
21|System, in good faith, believes to be the lawfully appointed |
| |
22|trustee. Any conflict between the statutes creating and governing |
| |
23|the Teachers' Retirement System in Section 17-101 et seq. of this |
| |
24|title and the provisions of any Trust Act referred to above shall be |
| |
arsid1992478 HB2528 HFLR Page 38
___________________________________________________________________________
1|resolved in favor of the statutes governing the System. If an |
| |
2|eligible beneficiary or joint annuitant is named at the time of |
| |
3|retirement, and becomes a beneficiary of a trust under one of the |
| |
4|Trust Acts described herein after that time, the System will |
| |
5|acknowledge the trust as the beneficiary upon the submission of |
| |
6|adequate documentation of the existence of the trust. All other |
| |
7|provisions of this subsection shall apply to these subsequently |
| |
8|created trusts. |
| |
9| (h) (g) The Board of Trustees of the System may recognize other |
| |
10|trusts set up for the benefit of individuals otherwise eligible to |
| |
11|be named as a beneficiary or joint annuitant under this subsection |
| |
12|by administrative rule if it can be done without undue additional |
| |
13|administrative expense of the System. |
| |
14| (9) The governing board of any "public school", as that term is |
| |
15|defined in Section 17-101 of this title, is hereby authorized and |
| |
16|empowered to pay additional retirement allowances or compensation to |
| |
17|any person who was in the employ of such public school for not less |
| |
18|than seven (7) school years preceding the date of his or her |
| |
19|retirement. Payments so made shall be a proper charge against the |
| |
20|current appropriation or appropriations of any such public school |
| |
21|for salaries for the fiscal year in which such payments are made. |
| |
22|Such payments shall be made in regular monthly installments in such |
| |
23|amounts as the governing board of any such public school, in its |
| |
24|judgment, shall determine to be reasonable and appropriate in view |
| |
arsid1992478 HB2528 HFLR Page 39
___________________________________________________________________________
1|of the length and type of service rendered by any such person to |
| |
2|such public school by which such person was employed at the time of |
| |
3|retirement. All such additional payments shall be uniform, based |
| |
4|upon the length of service and the type of services performed, to |
| |
5|persons formerly employed by such public school who have retired or |
| |
6|been retired in accordance with the provisions of Section 17-101 et |
| |
7|seq. of this title. |
| |
8| The governing board of any such public school may adopt rules |
| |
9|and regulations of general application outlining the terms and |
| |
10|conditions under which such additional retirement benefits shall be |
| |
11|paid, and all decisions of such board shall be final. |
| |
12| (10) In addition to the teachers' retirement herein provided, |
| |
13|teachers may voluntarily avail themselves of the Federal Social |
| |
14|Security Program upon a district basis. |
| |
15| (11) Upon the death of an in-service member, the System shall |
| |
16|pay to the designated beneficiary of the member or, if there is no |
| |
17|designated beneficiary or if the designated beneficiary predeceases |
| |
18|the member, to the estate of the member, the sum of Eighteen |
| |
19|Thousand Dollars ($18,000.00) as a death benefit. Provided, if the |
| |
20|deceased member had ten (10) years or more of creditable service, |
| |
21|the member's designated beneficiary may elect to receive the |
| |
22|retirement benefit to which the deceased member would have been |
| |
23|entitled at the time of death under the Option 2 plan of retirement |
| |
24|in lieu of the death benefit provided for in this subsection. |
| |
arsid1992478 HB2528 HFLR Page 40
___________________________________________________________________________
1|Provided further, the option provided in this subsection is only |
| |
2|available when the member has designated one individual as the |
| |
3|designated beneficiary. The beneficiary or beneficiaries of death |
| |
4|benefits in the amount not to exceed Eighteen Thousand Dollars |
| |
5|($18,000.00), but exclusive of any retirement benefit received by an |
| |
6|electing beneficiary based upon creditable service performed by the |
| |
7|deceased member, which are provided pursuant to this subsection, may |
| |
8|elect to disclaim such death benefits in which case such benefits |
| |
9|will be transferred to a person licensed as a funeral director or to |
| |
10|a lawfully recognized business entity licensed as required by law to |
| |
11|provide funeral services for the deceased member. The qualified |
| |
12|disclaimer must be in writing and will be an irrevocable and an |
| |
13|unqualified refusal to accept all or a portion of the death benefit. |
| |
14| It must be received by the transferor no more than nine (9) months |
| |
15|after the later of the day the transfer creating the interest in the |
| |
16|disclaiming person is made or the day the disclaiming person attains |
| |
17|age twenty-one (21). The interest in the death benefits must pass |
| |
18|without direction by the disclaiming person to another person. |
| |
19|After paying death benefits to any beneficiary or the member's |
| |
20|estate pursuant to this subsection, the System is discharged and |
| |
21|released from any and all liability, obligation, and costs. The |
| |
22|System is not required to inquire into the truth of any matter |
| |
23|specified in this subsection or into the payment of any estate tax |
| |
24|liability. |
| |
arsid1992478 HB2528 HFLR Page 41
___________________________________________________________________________
1| (12) Upon the death of a retired member who has contributed to |
| |
2|the System, the retirement system shall pay to the designated |
| |
3|beneficiary of the member or, if there is no designated beneficiary |
| |
4|or if the designated beneficiary predeceases the member, to the |
| |
5|estate of the member, the sum of Five Thousand Dollars ($5,000.00) |
| |
6|as a death benefit. The beneficiary or beneficiaries of benefits |
| |
7|provided pursuant to this subsection may elect to disclaim such |
| |
8|death benefits in which case such benefits will be transferred to a |
| |
9|person licensed as a funeral director or to a lawfully recognized |
| |
10|business entity licensed as required by law to provide funeral |
| |
11|services for the deceased member. The qualified disclaimer must be |
| |
12|in writing and will be an irrevocable and an unqualified refusal to |
| |
13|accept all or a portion of the death benefit. It must be received |
| |
14|by the transferor no more than nine (9) months after the later of |
| |
15|the day the transfer creating the interest in the disclaiming person |
| |
16|is made or the day the disclaiming person attains age twenty-one |
| |
17|(21). The interest in the death benefits must pass without |
| |
18|direction by the disclaiming person to another person. The benefit |
| |
19|payable pursuant to this subsection shall be deemed, for purposes of |
| |
20|federal income taxation, as life insurance proceeds and not as a |
| |
21|death benefit if the Internal Revenue Service approves this |
| |
22|provision pursuant to a private letter ruling request which shall be |
| |
23|submitted by the Board of Trustees of the System for that purpose. |
| |
24|After paying death benefits to any beneficiary or the member's |
| |
arsid1992478 HB2528 HFLR Page 42
___________________________________________________________________________
1|estate pursuant to this subsection, the System is discharged and |
| |
2|released from any and all liability, obligation, and costs. The |
| |
3|System is not required to inquire into the truth of any matter |
| |
4|specified in this subsection or into the payment of any estate tax |
| |
5|liability. |
| |
6| (13) Upon the death of a member who dies leaving no living |
| |
7|beneficiary or having designated his or her estate as beneficiary, |
| |
8|the System may pay any applicable death benefit, unpaid |
| |
9|contributions, or unpaid benefit which may be subject to probate, in |
| |
10|an amount of Twenty-five Thousand Dollars ($25,000.00) or less, |
| |
11|without the intervention of the probate court or probate procedure |
| |
12|pursuant to Section 1 et seq. of Title 58 of the Oklahoma Statutes. |
| |
13| (a) Before any applicable probate procedure may be waived, the |
| |
14|System must be in receipt of the member's proof of death certificate |
| |
15|and the following documents from those persons claiming to be the |
| |
16|legal heirs of the deceased member: |
| |
17| 1. The member's valid last will and testament, trust |
| |
18| documents or affidavit that a will does not exist; |
| |
19| 2. An affidavit or affidavits of heirship which must |
| |
20| state: |
| |
21| a. the names and signatures of all claiming heirs to |
| |
22| the deceased member's estate including the |
| |
23| claiming heirs' names, relationship to the |
| |
24| |
| |
arsid1992478 HB2528 HFLR Page 43
___________________________________________________________________________
1| deceased, current addresses, tax I.D. numbers if |
| |
2| known and current telephone numbers, |
| |
3| b. a statement or statements by the claiming heirs |
| |
4| that no application or petition for the |
| |
5| appointment of a personal representative is |
| |
6| pending or has been granted in any jurisdiction, |
| |
7| c. a description of the personal property claimed, |
| |
8| (i.e., death benefit or unpaid contributions or |
| |
9| both) together with a statement that such |
| |
10| personal property is subject to probate, |
| |
11| d. a statement by each individual claiming heir |
| |
12| identifying the amount of personal property that |
| |
13| the heir is claiming from the System, and that |
| |
14| the heir has been notified of, is aware of and |
| |
15| consents to the identified claims of all the |
| |
16| other claiming heirs of the deceased member |
| |
17| pending with the System; |
| |
18| 3. A written agreement or agreements signed by all |
| |
19| claiming heirs of the deceased member which provides |
| |
20| that the claiming heirs release, discharge and hold |
| |
21| harmless the System from any and all liability, |
| |
22| obligations and costs which it may incur as a result |
| |
23| of making a payment to any of the deceased member's |
| |
24| heirs; |
| |
arsid1992478 HB2528 HFLR Page 44
___________________________________________________________________________
1| 4. A corroborating affidavit from an individual other |
| |
2| than a claiming heir, who was familiar with the |
| |
3| affairs of the deceased member; |
| |
4| 5. Proof that all debts of the deceased member, including |
| |
5| payment of last sickness, hospital, medical, death, |
| |
6| funeral and burial expenses have been paid or provided |
| |
7| for. |
| |
8| (b) The Executive Director of the System shall retain complete |
| |
9|discretion in determining which requests for probate waiver may be |
| |
10|granted or denied, for any reason. Should the System have any |
| |
11|question as to the validity of any document presented by the |
| |
12|claiming heirs, or as to any statement or assertion contained |
| |
13|therein, the probate requirement provided for in Section 1 et seq. |
| |
14|of Title 58 of the Oklahoma Statutes shall not be waived. |
| |
15| (c) After paying any death benefits or unpaid contributions to |
| |
16|any claiming heirs as provided pursuant to this subsection, the |
| |
17|System is discharged and released from any and all liability, |
| |
18|obligation and costs to the same extent as if the System had dealt |
| |
19|with a personal representative of the deceased member. The System |
| |
20|is not required to inquire into the truth of any matter specified in |
| |
21|this subsection or into the payment of any estate tax liability. |
| |
22| (14) Upon the death of a retired member, the benefit payment |
| |
23|for the month in which the retired member died, if not previously |
| |
24|paid, shall be made to the joint annuitant if still living, to the |
| |
arsid1992478 HB2528 HFLR Page 45
___________________________________________________________________________
1|beneficiary of the member if the joint annuitant is deceased, or to |
| |
2|the member's estate if there is no surviving joint annuitant or |
| |
3|beneficiary. Such benefit payment shall be made in an amount equal |
| |
4|to a full monthly benefit payment regardless of the day of the month |
| |
5|in which the retired member died. |
| |
6| SECTION 4. AMENDATORY 70 O.S. 2021, Section 17-105.1, is |
| |
7|amended to read as follows: |
| |
8| Section 17-105.1 In the event the total retirement payments |
| |
9|made to a retired member and the retired member's joint annuitant, |
| |
10|if any, are less than the member's accumulated contributions with |
| |
11|interest as credited at the time of retirement under Section 17-105 |
| |
12|of this title, the difference shall be paid to the member's |
| |
13|designated beneficiary or if no designated beneficiary survives, |
| |
14|then to the member's nearest surviving next of kin as determined by |
| |
15|law estate. This provision shall apply to retired members dying on |
| |
16|or after July 1, 1979. After paying unpaid accumulated |
| |
17|contributions to any designated beneficiary or the member's estate |
| |
18|pursuant to this section, the System is discharged and released from |
| |
19|any and all liability, obligation, and costs. The System is not |
| |
20|required to inquire into the truth of any matter specified in this |
| |
21|section or into the payment of any estate tax liability. |
| |
22| SECTION 5. AMENDATORY 70 O.S. 2021, Section 17-106.3, is |
| |
23|amended to read as follows: |
| |
24| |
| |
arsid1992478 HB2528 HFLR Page 46
___________________________________________________________________________
1| Section 17-106.3 A. All employee and employer contributions |
| |
2|and dedicated revenues shall be deposited in the Oklahoma Teachers' |
| |
3|Retirement Fund in the State Treasury. The Board of Trustees shall |
| |
4|have the responsibility for the management of the Oklahoma Teachers' |
| |
5|Retirement Fund, and may transfer monies used for investment |
| |
6|purposes by the Teachers' Retirement System of Oklahoma from the |
| |
7|Oklahoma Teachers' Retirement Fund in the State Treasury to the |
| |
8|custodian bank or trust company of the System. |
| |
9| B. All benefits payable pursuant to the provisions of the |
| |
10|Teachers' Retirement System of Oklahoma, refunds of contribution and |
| |
11|overpayments, and all administrative expenses in connection with the |
| |
12|System shall be paid from the Oklahoma Teachers' Retirement Fund |
| |
13|upon warrants or vouchers signed by two persons designated by the |
| |
14|Board of Trustees. All expenses of the administration of the |
| |
15|Tax-Sheltered Annuity Fund shall be paid from the Oklahoma Teachers' |
| |
16|Retirement Fund. The Board of Trustees may transfer monies from the |
| |
17|custodian bank or trust company of the System to the Oklahoma |
| |
18|Teachers' Retirement Fund in the State Treasury for the purposes |
| |
19|specified in this subsection. |
| |
20| SECTION 6. AMENDATORY 70 O.S. 2021, Section 17-107, is |
| |
21|amended to read as follows: |
| |
22| Section 17-107. The interest earned on the investments in the |
| |
23|Teachers' Retirement System of Oklahoma shall be credited in the |
| |
24|following manner: |
| |
arsid1992478 HB2528 HFLR Page 47
___________________________________________________________________________
1| 1. money on deposit in the Teachers' Deposit Fund or |
| |
2|Tax-Sheltered Annuity Fund shall be credited with interest annually |
| |
3|compounded; |
| |
4| 2. there shall be deducted from the annual interest on |
| |
5|investments an amount necessary for the amortization of bonds |
| |
6|purchased and owned by the Teachers' Retirement System of Oklahoma; |
| |
7| 3. 2. there shall be deducted from the annual interest on |
| |
8|investments an amount of money necessary for the operation of the |
| |
9|Teachers' Retirement System of Oklahoma; and |
| |
10| 4. 3. any residue remaining in the Interest Fund after the |
| |
11|requirements of paragraphs 1 through 3 and 2 of this section have |
| |
12|been fully met shall be used for the purpose of paying retirement |
| |
13|benefits to the retirees of the Teachers' Retirement System of |
| |
14|Oklahoma and transferred to the Retirement Benefit Fund; the |
| |
15|interest income shall be distributed to the various funds on June 30 |
| |
16|each year. |
| |
17| SECTION 7. AMENDATORY 70 O.S. 2021, Section 17-108, is |
| |
18|amended to read as follows: |
| |
19| Section 17-108. A. Each local school district, or state |
| |
20|college or university, or State Board of Education, or State Board |
| |
21|of Career and Technology Education, or other state agencies whose |
| |
22|employees are members of the Teachers' Retirement System |
| |
23|("participating employers"), shall match, on a pro rata basis, in |
| |
24|accordance with subsection B of this section the contributions of |
| |
arsid1992478 HB2528 HFLR Page 48
___________________________________________________________________________
1|members whose salaries are paid by federal funds or externally |
| |
2|sponsored agreements such as grants, contracts and cooperative |
| |
3|agreements. These funds shall be remitted at the same time as the |
| |
4|regular contributions of members are remitted to the Teachers' |
| |
5|Retirement System of Oklahoma and deposited in the Retirement |
| |
6|Benefit Fund. |
| |
7| B. On an annual basis, the Board of Trustees shall set two |
| |
8|contribution rates to be paid by contributing employers as provided |
| |
9|in subsection A of this section. Both contribution rates shall be |
| |
10|determined using cost principles established by federal regulations |
| |
11|and shall be consistent with policies, regulations and procedures |
| |
12|that apply uniformly to both federally assisted and other |
| |
13|activities, and be accorded consistent treatment through application |
| |
14|of generally accepted accounting principles. The Board shall |
| |
15|approve the contribution rates for each fiscal year ending June 30, |
| |
16|no later than April 1 of the previous fiscal year. The first rate |
| |
17|shall be applied to service performed during the regular school year |
| |
18|of the participating employer. The second rate shall be applied to |
| |
19|service performed by members during a summer school program of the |
| |
20|participating employer. For the purposes of this subsection, |
| |
21|"summer school program" is defined as a program offering academic |
| |
22|enrichment for students from Pre-K through 12th grades during the |
| |
23|summer term after the close of the school year. Members shall only |
| |
24|be considered as providing service to a summer school program if |
| |
arsid1992478 HB2528 HFLR Page 49
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1|such service is provided pursuant to a separate summer school |
| |
2|contract between the member and the participating employer. The |
| |
3|term "summer school program" does not include services performed at |
| |
4|a participating employer offering an extended school year pursuant |
| |
5|to Section 1-109.1 of this title, or services performed by staff |
| |
6|pursuant to a twelve-month contract with the employer. The method |
| |
7|applied to setting the second contribution rate may take into |
| |
8|consideration whether, or to what extent, such service is likely to |
| |
9|add to members' service credit or final average salary; provided, |
| |
10|however, the second rate shall not exceed one-half (1/2) of the |
| |
11|first rate established in this subsection. The actuary retained by |
| |
12|the Board may recommend such rates using assumptions that apply to |
| |
13|the group of those members whose service is subject to the second |
| |
14|contribution rate. |
| |
15| C. All the assets of the retirement system shall be credited |
| |
16|according to the purpose for which they are held to one of eight |
| |
17|seven funds, namely: The Teachers' Savings Fund, the Retirement |
| |
18|Benefit Fund, the Interest Fund, the Permanent Retirement Fund, the |
| |
19|Expense Fund, the Suspense Fund, the Teachers' Deposit Fund, and the |
| |
20|Retiree Medical Benefit Fund. |
| |
21| 1. The Teachers' Savings Fund shall be a fund in which shall be |
| |
22|accumulated the regular contributions from the compensation of |
| |
23|members, including applicable interest earnings prior to July 1, |
| |
24|1968. Contributions to and payments from the Teachers' Savings Fund |
| |
arsid1992478 HB2528 HFLR Page 50
___________________________________________________________________________
1|shall be made as specifically provided in each plan available within |
| |
2|the retirement system. |
| |
3| 2. The deductions provided for in the plans within the |
| |
4|retirement system shall be made notwithstanding that the minimum |
| |
5|compensation provided for any member shall be reduced thereby. |
| |
6|Every member shall be deemed to consent and agree to the deductions |
| |
7|made and provided for herein and payment of salary or compensation, |
| |
8|less the deduction, shall be a full and complete discharge and |
| |
9|acquittance of all claims and demands whatsoever for the services |
| |
10|rendered by such person during the period covered by such payment, |
| |
11|except as to the benefits provided under this act. The employer |
| |
12|shall certify to the Board of Trustees on each and every payroll, or |
| |
13|in such other manner as the Board may prescribe, the amounts to be |
| |
14|deducted, and each of the amounts shall be deducted, and when |
| |
15|deducted shall be paid into the Teachers' Savings Fund, and shall be |
| |
16|credited to the individual account of the member from whose |
| |
17|compensation the deduction was made. |
| |
18| 3. Following the termination of membership in the retirement |
| |
19|system for any member who has been absent from service for five (5) |
| |
20|years in any period of six (6) consecutive years, the Teachers' |
| |
21|Savings Fund Account of such member shall be closed and the amount |
| |
22|due the member as provided in Section 17-105 of this title shall be |
| |
23|paid upon the filing of formal application. At the time such |
| |
24|membership is terminated the amount due the member as provided in |
| |
arsid1992478 HB2528 HFLR Page 51
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1|Section 17-105 of this title shall be transferred to the Suspense |
| |
2|Fund. |
| |
3| 4. Upon the retirement of a member, the balance of money he or |
| |
4|she the member had in the Teachers' Savings Fund shall be |
| |
5|transferred to the Retirement Benefit Fund. |
| |
6| 5. Retirement Benefit Fund. |
| |
7| a. After August 2, 1969, there shall be transferred from |
| |
8| the Teachers' Savings Fund for those members drawing |
| |
9| retirement benefits from the Teachers' Retirement |
| |
10| System of Oklahoma an amount necessary to provide the |
| |
11| monthly annuity payments and pension payments as |
| |
12| required in Section 17-107 of this title. In addition |
| |
13| the fund shall consist of monies received from any |
| |
14| state dedicated revenue, monies received from state |
| |
15| appropriations, monies received from federal matching |
| |
16| funds, and the residue of the interest on investments |
| |
17| after the requirements of Section 17-107 of this title |
| |
18| have been fully met. The Retirement Benefit Fund |
| |
19| shall consist of an amount of money necessary for the |
| |
20| making of retirement payments to retirees. |
| |
21| b. Should a member have deposits in the Teachers' |
| |
22| Deposit Fund or the Tax-Sheltered Annuity Fund and |
| |
23| wish to receive monthly retirement benefits on such |
| |
24| deposits, the actuarial equivalent of a two-year |
| |
arsid1992478 HB2528 HFLR Page 52
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1| period and each succeeding fiscal year thereafter |
| |
2| shall be transferred to the Retirement Benefit Fund. |
| |
3| The member may choose any of the plans available in |
| |
4| the Teachers' Retirement Act as a method of receiving |
| |
5| monthly retirement benefits on the money he has on |
| |
6| deposit in the Teachers' Deposit Fund or the |
| |
7| Tax-Sheltered Annuity Fund. The monthly retirement |
| |
8| benefits paid from the Teachers' Deposit Fund or the |
| |
9| Tax-Sheltered Annuity Fund shall be in addition to the |
| |
10| regular retirement benefits and the money transferred |
| |
11| from the Teachers' Deposit Fund or Tax-Sheltered |
| |
12| Annuity Fund shall not be matched by the State of |
| |
13| Oklahoma. |
| |
14| c. From the Retirement Benefit Fund shall be paid all |
| |
15| monthly retirement benefits allowances. |
| |
16| d. At the death of a retired member who has retired |
| |
17| under the Maximum Plan of Retirement, Option 1 or |
| |
18| Option 4, the balance of money the member has in the |
| |
19| Teachers' Savings Fund shall be transferred to the |
| |
20| Retirement Benefit Fund and the amount due the |
| |
21| beneficiary or his or her estate under Option 1 or |
| |
22| Option 4 shall be paid from the Retirement Benefit |
| |
23| Fund. |
| |
24| |
| |
arsid1992478 HB2528 HFLR Page 53
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1| e. At the death of both a retired member and the retired |
| |
2| member's spouse, who had retired under Option 2 or 3, |
| |
3| any balance in the Teachers' Savings Fund shall be |
| |
4| transferred from the Teachers' Savings Fund to the |
| |
5| Retirement Benefit Fund. |
| |
6| f. At the death of a retired member who had retired |
| |
7| under Option 5, the balance of any monies the member |
| |
8| had in the Teachers' Savings Fund shall be transferred |
| |
9| to the Retirement Benefit Fund for the purpose of |
| |
10| making a lump-sum settlement to the beneficiary or his |
| |
11| estate. Providing that if the surviving spouse elects |
| |
12| to receive the balance under the Maximum Plan of |
| |
13| Retirement or Option 1 the member's money, if any, on |
| |
14| a monthly basis, constituting actuarial equivalent of |
| |
15| two (2) years' payments, and each year thereafter the |
| |
16| annual actuarial equivalent, shall be transferred from |
| |
17| the Teachers' Savings Fund for the purpose of paying |
| |
18| monthly retirement benefits to the spouse under this |
| |
19| option. |
| |
20|
1|into the Interest Fund. On June 30, each year, interest shall be |
| |
2|transferred to the other funds as herein provided. |
| |
3| 7. The Permanent Retirement Fund shall consist of the |
| |
4|accumulated gifts, awards, and bequests made to the retirement |
| |
5|system, and transfers from the Suspense Fund, the principal of which |
| |
6|is hereby held and dedicated as a perpetual endowment of the |
| |
7|retirement system and shall not be diverted or appropriated to any |
| |
8|other cause or purpose unless specifically provided for in such |
| |
9|gifts, awards or bequests. |
| |
10| 8. The Expense Fund shall be the fund from which the expense of |
| |
11|administration and maintenance of the retirement system shall be |
| |
12|paid. The Board of Trustees shall cause to be prepared and adopt |
| |
13|annually an itemized budget showing the amount required to defray |
| |
14|the expenses for the ensuing fiscal year. |
| |
15| Transfers to and payments from this fund shall be made as |
| |
16|follows: first, from the Interest Fund; second, from any dedicated |
| |
17|revenue; and, third, from appropriation by the Oklahoma Legislature. |
| |
18| All monies for the operation of the Teachers' Retirement System |
| |
19|of Oklahoma shall be paid from the Expense Fund upon the approval by |
| |
20|the Board of Trustees and the checks signed by two people designated |
| |
21|to sign such checks by the Board of Trustees of the Teachers' |
| |
22|Retirement System of Oklahoma. |
| |
23| 9. The Suspense Fund shall be comprised of amounts transferred |
| |
24|to the fund as provided in this section and Section 17-105 of this |
| |
arsid1992478 HB2528 HFLR Page 55
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1|title and obligations of the retirement system to any member or |
| |
2|person which cannot be legally discharged. |
| |
3| 10. Teachers' Deposit Fund. |
| |
4| Any member may request, prior to a pay period, that his or her |
| |
5|employer make additional deposits for him or her, for tax-sheltered |
| |
6|annuity purposes. However, the amount deposited shall not exceed |
| |
7|the limits as defined in Section 402(g) and Section 415 of the |
| |
8|Internal Revenue Code of 1986, as amended, and applicable federal |
| |
9|regulations. All such deposits shall be credited to the member's |
| |
10|account in the Teachers' Deposit Fund for the purchase of a |
| |
11|tax-sheltered annuity. The amount thus accumulated, with earnings, |
| |
12|shall be used upon the member's retirement, separation from service, |
| |
13|death or disability to purchase an annuity in addition to his or her |
| |
14|regular service retirement allowance. The amount a member |
| |
15|accumulates in the Teachers' Deposit Fund, not including interest, |
| |
16|may be used to pay distributions in the case of hardship as provided |
| |
17|in Section 403(b)(11) of the Internal Revenue Code of 1986, as |
| |
18|amended, and applicable federal regulations. |
| |
19| 11. Collection of Contributions. |
| |
20| The collection of members' contributions shall be as |
| |
21| follows: |
| |
22| (1) Each employer shall cause to be deducted on each |
| |
23| and every payroll or claim of a member for each |
| |
24| and every payroll claim period subsequent to the |
| |
arsid1992478 HB2528 HFLR Page 56
___________________________________________________________________________
1| date of establishment of the retirement system |
| |
2| the contribution payable by such member as |
| |
3| provided in this act. With each and every |
| |
4| payroll or claim the employer shall deliver to |
| |
5| the treasurer of the employer warrants issued to |
| |
6| the employees as shown to be due by the payroll |
| |
7| or claim, together with a warrant or warrants in |
| |
8| favor of the Teachers' Retirement System as shown |
| |
9| by the payroll or claim. |
| |
10| (2) The treasurer or disbursing officer upon |
| |
11| delivery of the warrants and a true copy of the |
| |
12| payroll or claims as provided above shall |
| |
13| register the warrants as provided for the |
| |
14| registration of other school warrants, and shall |
| |
15| deliver to the employer warrants issued in favor |
| |
16| of the employees, and shall deliver warrants |
| |
17| issued in favor of the Teachers' Retirement |
| |
18| System and the copy of the payroll or claims to |
| |
19| the school district superintendent as designated |
| |
20| by the Board of Trustees. For the purpose of |
| |
21| collecting contributions of teachers in the |
| |
22| public schools, the superintendent of a school |
| |
23| district is hereby designated to receive the |
| |
24| Teachers' Retirement warrants from the treasurer |
| |
arsid1992478 HB2528 HFLR Page 57
___________________________________________________________________________
1| or proper disbursing officer of the several |
| |
2| school districts for the purpose of transmitting |
| |
3| such warrants and payroll or claims to the |
| |
4| Executive Director of the Teachers' Retirement |
| |
5| System of the State of Oklahoma. Any college or |
| |
6| university or other educational institution or |
| |
7| agency operated in whole or in part by the state |
| |
8| shall have the amount retained or deducted from |
| |
9| the funds regularly appropriated by the state for |
| |
10| the current maintenance for such educational |
| |
11| departments and institutions. |
| |
12| (3) For the purpose of enabling the collection of |
| |
13| the contributions of the members of the |
| |
14| retirement system to be made as simple as |
| |
15| possible, the Board of Trustees shall require the |
| |
16| secretary or other officer of each employer-board |
| |
17| or agency, within thirty (30) days after the |
| |
18| beginning of each school year, to make a list of |
| |
19| all teachers in its employ who are members of the |
| |
20| retirement system, certify to the correctness of |
| |
21| this list, and file the same with the Executive |
| |
22| Director of the Board of Trustees of the |
| |
23| Teachers' Retirement System. If additions to or |
| |
24| deductions from this list should be made during |
| |
arsid1992478 HB2528 HFLR Page 58
___________________________________________________________________________
1| the year such additions or deductions shall |
| |
2| likewise be certified to the Board of Trustees of |
| |
3| the Teachers' Retirement System. |
| |
4| (4) The State Treasurer shall furnish annually to |
| |
5| the Board of Trustees a sworn statement of the |
| |
6| amount of the funds in his or her custody |
| |
7| belonging to the retirement system. The records |
| |
8| of the Board of Trustees shall be open to public |
| |
9| inspection and any member of the retirement |
| |
10| system shall be furnished with a statement of the |
| |
11| amount of the credit to his or her the member's |
| |
12| individual account upon written request by such |
| |
13| member, provided the Board of Trustees shall not |
| |
14| be required to answer more than one such request |
| |
15| of a member in any one (1) year. |
| |
16| (5) Failure of any superintendent, officer, or other |
| |
17| person to discharge the duties imposed upon him |
| |
18| or her by this act shall render him or her or his |
| |
19| or her bondsman liable for any loss occasioned |
| |
20| thereby to the Teachers' Retirement System or the |
| |
21| employees of the school district, or both. |
| |
22| (6) On a showing by the Teachers' Retirement System |
| |
23| that a warrant, voucher or check issued to it |
| |
24| has, for any reason, been lost or never received, |
| |
arsid1992478 HB2528 HFLR Page 59
___________________________________________________________________________
1| after ninety (90) days from the date of issue or |
| |
2| from transmittal for payment, it shall be the |
| |
3| duty of the issuing authority forthwith, without |
| |
4| any indemnifying bond or other requirements, to |
| |
5| issue a duplicate thereof in lieu of that which |
| |
6| was lost, to the Teachers' Retirement System; and |
| |
7| the Teachers' Retirement System shall save |
| |
8| harmless any school district or agency of state |
| |
9| government making payment under the provisions |
| |
10| hereof to the State Teachers' Retirement System |
| |
11| if the original warrant, voucher or check is |
| |
12| later presented for payment and same is paid |
| |
13| after a duplicate warrant, voucher or check has |
| |
14| been issued and paid to the Teachers' Retirement |
| |
15| System, and any loss sustained therefrom shall be |
| |
16| charged to the Interest Fund. |
| |
17| 12. 11. Rollover Contributions and Direct Trustee-to-Trustee |
| |
18|Transfers from Other Plans. |
| |
19| Any member may purchase credit for service, to the extent |
| |
20|specified in this title, with rollovers from an eligible retirement |
| |
21|plan as defined by the Internal Revenue Code of 1986, as amended |
| |
22|from time to time. A member may also purchase permissive service |
| |
23|credit, as defined by Code Section 415(n)(3)(A), with a direct |
| |
24|trustee-to-trustee transfer from a governmental Code Section 403(b) |
| |
arsid1992478 HB2528 HFLR Page 60
___________________________________________________________________________
1|plan or governmental Code Section 457(b) plan. All rollovers and |
| |
2|direct trustee-to-trustee transfers shall be allowed to the extent |
| |
3|permitted by federal law. Rollovers or direct transfers in excess |
| |
4|of the amount necessary to purchase such service credit shall not be |
| |
5|allowed. |
| |
6| 13. 12. Retiree Medical Benefit Fund. |
| |
7| The Retiree Medical Benefit Fund shall be maintained as a |
| |
8|subaccount under the Retirement Benefit Fund. The Retiree Medical |
| |
9|Benefit Fund is composed of all assets contributed to this |
| |
10|subaccount to pay the retirement system's portion of the monthly |
| |
11|retiree health insurance benefits described in Section 1316.3 of |
| |
12|Title 74 of the Oklahoma Statutes. All allocated assets and the |
| |
13|earnings thereon in the Retiree Medical Benefit Fund shall be held |
| |
14|for the exclusive purpose of providing retiree medical benefits |
| |
15|pursuant to Section 1316.3 of Title 74 of the Oklahoma Statutes. |
| |
16|The Retiree Medical Benefit Fund shall be administered in accordance |
| |
17|with the requirements under Section 401(h) of the Internal Revenue |
| |
18|Code of 1986, as amended from time to time. An amount necessary to |
| |
19|pay the health insurance premiums for retired members as provided by |
| |
20|Section 1316.3 of Title 74 of the Oklahoma Statutes shall be |
| |
21|deposited each month into the Retiree Medical Benefit Fund. |
| |
22| SECTION 8. AMENDATORY 70 O.S. 2021, Section 17-116.10, |
| |
23|is amended to read as follows: |
| |
24| |
| |
arsid1992478 HB2528 HFLR Page 61
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1| Section 17-116.10 A. Subject to the requirements of Section |
| |
2|6-101.2 of this title and any other applicable requirements of law, |
| |
3|a member may enter into postretirement employment with a public |
| |
4|school of Oklahoma and still receive monthly retirement benefits |
| |
5|subject to the following limitations: |
| |
6| 1. A retired member is not eligible to be employed by the |
| |
7|public schools of Oklahoma, in any capacity, for sixty (60) calendar |
| |
8|days between the retiree's last day of preretirement public |
| |
9|education employment and any postretirement public education |
| |
10|employment. For purposes of this section, the term "last day of |
| |
11|preretirement employment" shall mean the last day the employee is |
| |
12|required to be physically present on the job to complete the terms |
| |
13|of the employment contract or agreement or the member's effective |
| |
14|retirement date, whichever is later. An employee on paid leave is |
| |
15|still considered to be employed for purposes of this section. |
| |
16|Employment under any conditions during this time, volunteer services |
| |
17|for the purpose of obtaining a paid position at a later date, or |
| |
18|payment at a later time for services performed during this time |
| |
19|period shall cause the forfeiture of all retirement benefits |
| |
20|received during the period; |
| |
21| 2. Unless otherwise provided in paragraph 3 of this subsection, |
| |
22|earnings from the public schools may not exceed one-half (1/2) of |
| |
23|the member's final average salary used in computing retirement |
| |
24|benefits, or the Earnings Limitation for employees allowed by the |
| |
arsid1992478 HB2528 HFLR Page 62
___________________________________________________________________________
1|Social Security Administration, whichever is less. For thirty-six |
| |
2|(36) months following a member's effective retirement date, the |
| |
3|retired member shall be subject to earnings limitations on allowable |
| |
4|earnings. Earnings limits are determined annually based on a |
| |
5|calendar year. For retired members under the age of sixty-two (62) |
| |
6|years, the limit on allowed earnings from the public schools of |
| |
7|Oklahoma for employment for the performance of duties ordinarily |
| |
8|performed by classified or nonclassified personnel shall be the |
| |
9|lesser of Fifteen Thousand Dollars ($15,000.00) or limited to |
| |
10|one-half (1/2) of the member's final average salary used in |
| |
11|computing retirement benefits unless or the earnings limitation |
| |
12|limit allowed by the Social Security Administration would be greater |
| |
13|than Fifteen Thousand Dollars ($15,000.00) for those under Social |
| |
14|Security's full retirement age, whichever is less. For retired |
| |
15|members sixty-two (62) years of age or older the limit on, allowed |
| |
16|earnings from the public schools of Oklahoma for the performance of |
| |
17|duties ordinarily performed by classified or nonclassified personnel |
| |
18|shall be the lesser of limited to Thirty Thousand Dollars |
| |
19|($30,000.00) or one-half (1/2) of the member's final average salary |
| |
20|used in computing retirement benefits, whichever is less. For |
| |
21|purposes of this paragraph, the following shall apply: |
| |
22| a. earnings shall mean "regular annual compensation" as |
| |
23| defined in paragraph (25) (22) of Section 17-101 of |
| |
24| this title, and shall include any payment by a public |
| |
arsid1992478 HB2528 HFLR Page 63
___________________________________________________________________________
1| school for services rendered by a retired member who |
| |
2| is employed for any purpose whatsoever. Supplemental |
| |
3| retirement payments paid by a former public school |
| |
4| employer pursuant to subsection (9) of Section 17-105 |
| |
5| of this title or other state law shall not be |
| |
6| considered as earnings, |
| |
7| b. the Earnings Limitation for employees allowed by the |
| |
8| Social Security Administration to workers between the |
| |
9| age of sixty-two (62) years and sixty-five (65) years |
| |
10| shall apply to retired members below the age of |
| |
11| sixty-two (62) years, |
| |
12| c. the limit on allowed earnings from the public schools |
| |
13| shall be automatically adjusted effective the first |
| |
14| day of January of each year to reflect the current |
| |
15| Earnings Limitation for employees as determined from |
| |
16| time to time by the Social Security Administration, |
| |
17| d. the earnings limit for the calendar year in which a |
| |
18| member retires shall be one-twelfth (1/12) of the |
| |
19| annual limit multiplied by the number of months the |
| |
20| member is eligible to work and receive payments from |
| |
21| the public schools of Oklahoma, |
| |
22| e. |
| |
23| c. earnings in excess of the maximum limit on allowed |
| |
24| earnings from public schools of Oklahoma shall result |
| |
arsid1992478 HB2528 HFLR Page 64
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1| in a loss of future retirement benefits for the year |
| |
2| the postretirement employment was performed of One |
| |
3| Dollar ($1.00) for each One Dollar ($1.00) earned over |
| |
4| the maximum allowed earnings amount, |
| |
5| f. for those members age seventy (70) years and over, the |
| |
6| earnings in excess of the maximum limit allowed |
| |
7| earnings from public schools of Oklahoma shall be |
| |
8| one-half (1/2) the member's final average salary used |
| |
9| in computing retirement benefits. However, any |
| |
10| retired member receiving benefits from the Retirement |
| |
11| System who reached age seventy (70) years prior to |
| |
12| July 1, 1991, shall not be restricted by the earnings |
| |
13| limits pursuant to this subparagraph until January 1, |
| |
14| 1994. To qualify for the provisions of this |
| |
15| subparagraph, the member must be employed less than |
| |
16| one-half (1/2) time compared to other full-time |
| |
17| employees in similar positions; |
| |
18| 3. Notwithstanding paragraph 2 of this subsection, a retired |
| |
19|classified or nonclassified member who has been retired for |
| |
20|thirty-six (36) or more months and who is employed by a public |
| |
21|school to perform duties ordinarily performed by classified or |
| |
22|nonclassified personnel shall be able to receive annualized earnings |
| |
23|from the public school with no reduction in retirement benefits |
| |
24|regardless of the amount of annualized earnings. For for a period |
| |
arsid1992478 HB2528 HFLR Page 65
___________________________________________________________________________
1|of three (3) years beginning July 1, 2017, members who have retired |
| |
2|as of July 1, 2017, as active classroom teachers, who have been |
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3|retired and receiving a benefit for at least one (1) year, and who |
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4|have not been employed by any public school during that one-year |
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5|period, shall be eligible to be reemployed as an active classroom |
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6|teacher in common or career tech school districts, with no |
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7|limitations on earnings. For a period of three (3) years beginning |
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8|July 1, 2021, members who have retired as of July 1, 2020, who have |
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9|been retired and receiving a benefit for at least one (1) year, and |
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10|who have not been employed by any public school during that one-year |
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11|period, shall be eligible to be reemployed as an active classroom |
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12|teacher in common or career tech school districts, with no |
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13|limitations on earnings. The one-year period starts with the |
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14|retiree's last day of preretirement public education employment. |
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15|Members returning under this section shall not be subject to any |
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16|earning limitations following the end of the three-year periods |
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17|described in this paragraph. Members returning under this section |
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18|shall only be employed pursuant to a temporary contract; and |
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19| 4. A member shall be considered to be employed by a school |
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20|district to perform the duties ordinarily performed by classified or |
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21|nonclassified personnel if the member is hired by the school |
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22|district in the member's individual capacity to perform the duties |
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23|or if the member performs the duties through employment with a |
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24|proprietorship, partnership, corporation, limited liability company |
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1|or partnership, or any other business structure that has agreed or |
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2|contracted to provide the services to the school district. |
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3| B. A public school district that employs a retired member shall |
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4|be required to make contributions to the System for the retired |
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5|member in an amount as required in Section 17-108.1 and in paragraph |
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6|3 of subsection B of Section 17-116.2 of this title. |
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7| C. For purposes of this section, postretirement employment of |
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8|less than one thousand (1,000) hours per year with the Governor, the |
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9|State Senate, the House of Representatives or the Legislative |
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10|Service Bureau shall not be considered as postretirement employment |
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11|with a public school of Oklahoma. |
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12| D. The Board of Trustees of the Teachers' Retirement System of |
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13|Oklahoma shall promulgate such rules as are necessary to implement |
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14|the provisions of this section. |
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15| E. A member who has entered into postretirement employment with |
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16|a participating employer of the Teachers' Retirement System of |
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17|Oklahoma must fully comply with all the provisions of the rules |
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18|promulgated by the Board of Trustees pursuant to this section in |
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19|order to continue receiving his or her monthly retirement benefit. |
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20| SECTION 9. REPEALER 70 O.S. 2021, Sections 17-104 and |
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21|17-114.2, are hereby repealed. |
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22| SECTION 10. This act shall become effective July 1, 2023. |
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23| SECTION 11. It being immediately necessary for the preservation |
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24|of the public peace, health or safety, an emergency is hereby |
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1|declared to exist, by reason whereof this act shall take effect and |
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2|be in full force from and after its passage and approval. |
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4|COMMITTEE REPORT BY: COMMITTEE ON BANKING, FINANCIAL SERVICES AND |
|PENSIONS, dated 03/01/2023 - DO PASS, As Amended. |
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