1| STATE OF OKLAHOMA |
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2| 1st Session of the 59th Legislature (2023) |
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3|HOUSE BILL 2528 By: Lepak |
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4| |
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5| |
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6| AS INTRODUCED |
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7| An Act relating to retirement; amending 70 O.S. 2021, |
| Sections 17-101, as amended by Section 2, Chapter |
8| 121, O.S.L. 2022, 17-103, 17-105, 17-105.1, 17-106.3, |
| 17-107, 17-108, 17-116.2, and 17-116.10 (70 O.S. |
9| Supp. 2022, Section 17-101), which relate to the |
| Teachers' Retirement System of Oklahoma; updating |
10| references; deleting terms; modifying terms; |
| modifying how members shall make proper application |
11| for retirement; providing membership details; |
| providing procedure at joint annuitant's death; |
12| modifying retirement options; releasing System of |
| liability under certain circumstances; modifying how |
13| certain expenses are to be paid; specifying when a |
| member must be physically present to complete terms |
14| of employment contract; modifying earnings limits; |
| repealing 70 O.S. 2021, Sections 17-104 and 17-114.2, |
15| which relate to the Teachers' Retirement System of |
| Oklahoma; and providing an effective date. |
16| |
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17| |
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18|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: |
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19| SECTION 1. AMENDATORY 70 O.S. 2021, Section 17-101, as |
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20|amended by Section 2, Chapter 121, O.S.L. 2022 (70 O.S. Supp. 2022, |
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21|Section 17-101), is amended to read as follows: |
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22| Section 17-101. The following words and phrases as used in |
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23|Section 17-101 et seq. of this title, unless a different meaning is |
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24|clearly required by the context, shall have the following meanings: |
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Req. No. 6270 Page 1
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1| (1) "Retirement system" shall mean the Teachers' Retirement |
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2|System of Oklahoma, as defined in Section 17-102 of this title. |
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3| (2) "Public school" shall mean a school district, a state |
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4|college or university, the State Board of Education, the State Board |
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5|of Career and Technology Education, and any other state educational |
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6|entity conducted within the state supported wholly or partly by |
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7|public funds and operating under the authority and supervision of a |
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8|legally constituted board or agency having authority and |
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9|responsibility for any function of public education. Public school |
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10|shall also mean a tuition free, nonprofit alternative school of |
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11|choice that provides education, therapeutic counseling, and outreach |
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12|programs which is aligned with a school district and which receives |
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13|grant funds from governmental sources. |
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14| (3) "Classified personnel" shall mean any teacher, principal, |
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15|superintendent, supervisor, administrator, librarian, certified or |
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16|registered nurse, college professor, or college president whose |
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17|salary is paid wholly or in part from public funds. An employee of |
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18|any state department, board, board of regents, or board of trustees, |
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19|who is in a supervisory or an administrative position, the function |
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20|of which is primarily devoted to public education, shall be |
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21|considered classified personnel under the meaning of Section 17-101 |
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22|et seq. of this title, at the discretion of the Board of Trustees of |
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23|the Teachers' Retirement System. The term "teacher" shall also |
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24|include instructors and counselors employed by the Department of |
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1|Corrections and holding valid teaching certificates issued by the |
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2|State Department of Education. Provided, that a person employed by |
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3|the Department of Corrections as an instructor or counselor shall |
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4|have been actively engaged in the teaching profession for a period |
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5|of not less than three (3) years prior to employment to be eligible |
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6|to participate in the Teachers' Retirement System of Oklahoma. The |
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7|Department of Corrections shall contribute the employer's share to |
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8|the Teachers' Retirement System of Oklahoma. |
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9| (4) "Nonclassified optional personnel" shall include persons |
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10|hired as adjunct teachers pursuant to subsection G of Section |
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11|6-122.3 of this title, cooks, janitors, maintenance personnel not in |
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12|a supervisory capacity, bus drivers, noncertified or nonregistered |
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13|nurses, noncertified librarians, and clerical employees of the |
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14|public schools, state colleges, universities, or any state |
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15|department, board, board of regents, or board of trustees, the |
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16|functions of which are primarily devoted to public education and |
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17|whose salaries are paid wholly or in part from public funds. |
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18| (5) "Employer" shall mean the state and any of its designated |
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19|agents or agencies with responsibility and authority for public |
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20|education, such as boards of education of elementary and independent |
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21|school districts, boards of regents, boards of control, or any other |
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22|agency of and within the state by which a person may be employed for |
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23|service in public education. "Employer" shall also mean the board |
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24|of directors of a tuition free, nonprofit alternative school of |
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1|choice that provides education, therapeutic counseling, and outreach |
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2|programs which is aligned with a school district and which receives |
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3|grant funds from governmental sources. |
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4| (6) "Member" shall mean any teacher or other employee included |
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5|in the membership of the system as provided in Section 17-103 of |
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6|this title. |
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7| (7) "Board of Trustees" shall mean the board provided for in |
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8|Section 17-106 of this title to administer the retirement system. |
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9| (8) "Service" shall mean service as a classified or |
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10|nonclassified optional employee in the public school system, or any |
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11|other service devoted primarily to public education in the state. |
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12| (9) "Prior service" shall mean service rendered prior to July |
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13|1, 1943. |
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14| (10) "Membership service" shall mean service as a member of the |
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15|classified or nonclassified personnel as defined in paragraphs (3) |
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16|and (4) of this section. |
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17| (11) (9) "Creditable service" shall mean membership service |
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18|plus any prior other service authorized under this title. |
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19| (12) (10) "Annuitant" shall mean any person in receipt of a |
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20|retirement allowance as provided in this title an annuity as defined |
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21|in paragraph (13) of this section. |
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22| (13) (11) "Accumulated contributions" shall mean the sum of all |
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23|amounts deducted from the compensation of a member and credited to |
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24| |
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1|his the member's individual account in the Teachers' Savings Fund, |
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2|together with interest as of June 30, 1968. |
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3| (14) "Earnable compensation" shall mean the full rate of the |
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4|compensation that would be payable to a member if he worked the full |
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5|normal working time. |
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6| (15) (12) "Average salary": |
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7| (a) for those members who joined the System prior to July |
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8| 1, 1992, shall mean the average of the salaries for |
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9| the three (3) years on which the highest contributions |
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10| to the Teachers' Retirement System was were paid not |
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11| to exceed the maximum contribution level specified in |
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12| Section 17-116.2 of this title or the maximum |
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13| compensation level specified in subsection (28) of |
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14| this section. Provided, no member shall retire with |
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15| an average salary in excess of Twenty-five Thousand |
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16| Dollars ($25,000.00) unless the member has made the |
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17| required election and paid the required contributions |
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18| on such salary in excess of Twenty-five Thousand |
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19| Dollars ($25,000.00), or unless an eligible member |
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20| fulfills the requirements of Section 17-116.2C of this |
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21| title in order to have pre-cap removal service |
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22| included in the retirement benefit computation of the |
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23| member using the regular annual compensation of the |
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24| |
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1| member for any pre-cap removal year of service so |
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2| included subject to the maximum average salary amount, |
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3| and |
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4| (b) for those members who join the System after June 30, |
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5| 1992, shall mean the average of the salaries for five |
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6| (5) consecutive years on which the highest |
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7| contribution to the Teachers' Retirement System was |
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8| paid. Only salary on which required contributions |
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9| have been made may be used in computing average |
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10| salary. |
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11| (16) (13) "Annuity" shall mean payments for life derived from |
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12|the "accumulated contributions" of a member. All annuities shall be |
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13|payable in equal monthly installments a lifetime benefit payable in |
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14|fixed monthly installments. |
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15| (17) "Pension" shall mean payments for life derived from money |
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16|provided by the employer. All pensions shall be payable in equal |
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17|monthly installments. |
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18| (18) (14) "Monthly retirement allowance" is one-twelfth (1/12) |
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19|of the annual retirement allowance which shall be payable monthly. |
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20| (19) (15) "Retirement Benefit Fund" shall mean the fund from |
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21|which all retirement benefits shall be paid based on such mortality |
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22|tables as shall be adopted by the Board of Trustees. |
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23| |
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24| |
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1| (20) (16) "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) (17) "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) (18) The masculine pronoun, whenever used, shall include |
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8|the feminine. |
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9| (23) (19) "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|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) (20) "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) (21) "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) (22) "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) (23) "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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Req. No. 6270 Page 16
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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 |
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14| authorized and performed on or after July 1, |
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15| 1995, but not later than June 30, 1996, |
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16| 3. a member of the retirement system employed by an |
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17| entity or institution within The Oklahoma State |
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18| System of Higher Education, other than a |
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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| |
| |
Req. No. 6270 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) (24) "Comprehensive university" shall mean: |
| |
24| |
| |
Req. No. 6270 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.
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. |
| |
Req. No. 6270 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| |
| |
Req. No. 6270 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 in |
| |
24|the Oklahoma Public Employees Retirement System as an active member. |
| |
Req. No. 6270 Page 22
___________________________________________________________________________
1| SECTION 3. AMENDATORY 70 O.S. 2021, Section 17-105, is |
| |
2|amended to read as follows: |
| |
3| Section 17-105. (1) (a) Any member who has attained age |
| |
4|fifty-five (55) or who has completed thirty (30) years of creditable |
| |
5|service, as defined in Section 17-101 of this title, or for any |
| |
6|person who initially became a member prior to July 1, 1992, |
| |
7|regardless of whether there were breaks in service after July 1, |
| |
8|1992, whose age and number of years of creditable service total |
| |
9|eighty (80) may be retired upon proper application for retirement on |
| |
10|forms as established by the System and executing a retirement |
| |
11|contract. Such a retirement date will also apply to any person who |
| |
12|became a member of the sending system as defined in this act, prior |
| |
13|to July 1, 1992, regardless of whether there were breaks in service |
| |
14|after July 1, 1992. Any person who became a member after June 30, |
| |
15|1992, but prior to November 1, 2011, whose age and number of years |
| |
16|of creditable service total ninety (90) may be retired upon proper |
| |
17|application for retirement and executing a retirement contract as |
| |
18|established by the System. Any person who becomes a member on or |
| |
19|after November 1, 2011, who attains the age of sixty-five (65) years |
| |
20|or who reaches a normal retirement date pursuant to subparagraph (d) |
| |
21|of paragraph (24) of Section 17-101 of this title having attained a |
| |
22|minimum age of sixty (60) years may be retired upon proper |
| |
23|application for retirement and executing a retirement contract as |
| |
24|established by the System. The application shall be filed on the |
| |
Req. No. 6270 Page 23
___________________________________________________________________________
1|form provided by the Board of Trustees for this purpose with the |
| |
2|System, not less than sixty (60) days before the date of retirement, |
| |
3|provided that the Executive Director may waive the sixty-day |
| |
4|deadline for good cause shown as defined by the Board. |
| |
5| 1. The employer shall provide the System with the |
| |
6| following information for a retiring member, no later |
| |
7| than the fifteenth day of the month of retirement: |
| |
8| last day physically on the job; last day on payroll; |
| |
9| any regular compensation not already reported to the |
| |
10| System; and final unused sick leave balance. |
| |
11| 2. Failure to submit this information by the deadline, |
| |
12| or errors in submitted information that result in a |
| |
13| disqualification of retirement eligibility shall be |
| |
14| the responsibility of the employer. In cases where |
| |
15| the error results in disqualification of retirement |
| |
16| eligibility, it is the employer's responsibility to |
| |
17| reemploy the member, or retain the member on the |
| |
18| payroll, for the time period required to reach |
| |
19| eligibility, not exceeding two (2) months. |
| |
20| (b) An individual who becomes a member of the Teachers' |
| |
21|Retirement System after July 1, 1967, through October 31, 2017, |
| |
22|shall be employed by the public schools, state colleges or |
| |
23|universities of Oklahoma for a minimum of five (5) years and be a |
| |
24|contributing member of the Teachers' Retirement System of Oklahoma |
| |
Req. No. 6270 Page 24
___________________________________________________________________________
1|for a minimum of five (5) years to qualify for monthly retirement |
| |
2|benefits from the Teachers' Retirement System of Oklahoma. |
| |
3| An individual who becomes a member of the Teachers' Retirement |
| |
4|System on or after November 1, 2017, shall be employed by the public |
| |
5|schools, state colleges or universities of Oklahoma for a minimum of |
| |
6|seven (7) years and be a contributing member of the Teachers' |
| |
7|Retirement System of Oklahoma for a minimum of seven (7) years to |
| |
8|qualify for monthly retirement benefits from the Teachers' |
| |
9|Retirement System of Oklahoma. |
| |
10| (c) Any member Individuals becoming members after July 1, 1967, |
| |
11|to October 31, 2017, with five (5) or more years of Oklahoma |
| |
12|teaching service and whose accumulated contributions during such |
| |
13|period have not been withdrawn shall be given an indefinite |
| |
14|extension of membership beginning with the sixth year following the |
| |
15|member's last contributing membership. |
| |
16| Individuals becoming members on or after November 1, 2017, with |
| |
17|seven (7) or more years of Oklahoma teaching service and whose |
| |
18|accumulated contributions during such period have not been withdrawn |
| |
19|shall be given an indefinite extension of membership beginning with |
| |
20|the sixth eighth year following his or her the member's last |
| |
21|contributing membership and shall become eligible to apply for |
| |
22|retirement and be retired upon attaining age fifty-five (55). |
| |
23| (2) An unclassified optional member who has retired or who |
| |
24|retires at sixty-two (62) years of age or older or whose retirement |
| |
Req. No. 6270 Page 25
___________________________________________________________________________
1|is because of disability shall have his or her minimum retirement |
| |
2|benefits calculated on an average salary of Five Thousand Three |
| |
3|Hundred Fifty Dollars ($5,350.00) or, if a larger monthly allowance |
| |
4|would result, an amount arrived at pursuant to application of the |
| |
5|formula prescribed herein. |
| |
6| (3) No member shall receive a lesser retirement benefit than he |
| |
7|or she the member would have received under the law in effect at the |
| |
8|time he or she retired. Any individual under the Teachers' |
| |
9|Retirement System, who through error in stating the title of the |
| |
10|position which he or she the member held, may, at the discretion of |
| |
11|the Board of Trustees, be changed from the nonclassified optional |
| |
12|group to the classified group for the purpose of calculating |
| |
13|retirement benefits. |
| |
14| Any individual regardless of residence, who has a minimum of ten |
| |
15|(10) years of teaching in Oklahoma schools prior to July 1, 1943, or |
| |
16|who taught in Oklahoma schools prior to 1934 and thereafter taught a |
| |
17|minimum of ten (10) years and who does not qualify under the present |
| |
18|retirement System, or who has a minimum of thirty (30) years of |
| |
19|teaching in Oklahoma schools and has reached seventy (70) years of |
| |
20|age prior to July 1, 1984, and is not otherwise eligible to receive |
| |
21|any benefits from the retirement system shall receive a minimum of |
| |
22|One Hundred Fifty Dollars ($150.00) per month in retirement benefits |
| |
23|from the Teachers' Retirement System of Oklahoma plus any general |
| |
24|increase in benefits for annuitants as may be provided hereafter by |
| |
Req. No. 6270 Page 26
___________________________________________________________________________
1|the Legislature. Each individual must apply to the Teachers'Retirement System for such benefit and provide evidence to the |
| |
3|Teachers' Retirement System that the service was actually rendered. |
| |
4|The surviving spouse of any person who made application for the |
| |
5|benefit provided for by this paragraph during his or her lifetime |
| |
6|but did not receive the benefit may submit an application to the |
| |
7|System for payment of the benefit for those months during the |
| |
8|lifetime of the deceased person that he or she was eligible for but |
| |
9|did not receive the benefit. Upon approval of the application by |
| |
10|the Board of Trustees, the benefit shall be paid to the surviving |
| |
11|spouse in one lump sum. |
| |
12| his or her upon application of the member's |
| |
17|employer, any member who has been a contributing member for ten (10) |
| |
18|years may be retired by the System subsequent to the execution and |
| |
19|filing thereof, on a disability retirement allowance, provided that |
| |
20|it is found by the Medical Board after medical examination of such |
| |
21|member by a duly qualified physician that such member is mentally or |
| |
22|physically incapacitated for further performance of duty, that such |
| |
23|incapacity is likely to be permanent, and that such member should be |
| |
24|retired. The System shall rely on and give full consideration to |
| |
Req. No. 6270 Page 27
___________________________________________________________________________
1|the conclusions and recommendations in the certified written report |
| |
2|of the Medical Board of the Teachers' Retirement System regarding |
| |
3|the disability application of such member. If the Medical Board |
| |
4|does not find that a member applying for disability retirement is |
| |
5|mentally or physically incapacitated for performance of duty or |
| |
6|otherwise eligible for a disability retirement, the application |
| |
7|shall then be considered by the Board of Trustees. If a member is |
| |
8|determined to be eligible for disability benefits pursuant to the |
| |
9|Social Security System, then such determination shall entitle the |
| |
10|member to the authorized disability retirement allowance provided by |
| |
11|law. For members who are not eligible for disability benefits |
| |
12|pursuant to the Social Security System, the Board of Trustees and |
| |
13|the Medical Board shall apply the same standard for which provision |
| |
14|is made in the first two sentences of this subsection for |
| |
15|determining the eligibility of a person for such disability benefits |
| |
16|in making a determination of eligibility for disability benefits as |
| |
17|authorized by this subsection. |
| |
18| (6) (a) A member who at the time of retirement has been found |
| |
19|to be permanently physically or mentally incapacitated to perform |
| |
20|the necessary duties to continue in his or her the member's current |
| |
21|position shall receive a minimum monthly retirement payment for life |
| |
22|or until such time as the member may be found to be recovered to the |
| |
23|point where he or she the member may return to teaching. Any member |
| |
24|retired before July 1, 1992, shall be eligible to receive the |
| |
Req. No. 6270 Page 28
___________________________________________________________________________
1|monthly retirement allowance herein provided, but such payment shall |
| |
2|not begin until the first payment due him or her after July 1, 1992, |
| |
3|and shall not be retroactive. The Board of Trustees is empowered to |
| |
4|make such rules and regulations as it considers proper to preserve |
| |
5|equity in retirements under this provision, which shall include a |
| |
6|provision to protect the rights of the member's spouse. |
| |
7| (b) A member who has qualified for retirement benefits under |
| |
8|disability retirement shall have the total monthly payment deducted |
| |
9|from his or her accumulated contributions plus interest earned and |
| |
10|any money remaining in the member's account after the above |
| |
11|deductions at the death of the member shall be paid in a lump sum to |
| |
12|the beneficiary or to the estate of the member. Provided, if the |
| |
13|deceased disabled member had thirty (30) years or more of creditable |
| |
14|service and the death occurred after June 30, 1981, and death |
| |
15|occurred prior to the disabled member receiving twelve monthly |
| |
16|retirement payments, a surviving spouse may elect to receive the |
| |
17|retirement benefit to which the deceased member would have been |
| |
18|entitled at the time of death under the Option 2 Plan of Retirement |
| |
19|provided for in subsection (8) of this section in lieu of the death |
| |
20|benefit provided for in this subsection and in subsection (12) of |
| |
21|this section. |
| |
22| (c) Once each year the System may require any disabled |
| |
23|annuitant who has not yet attained the age of sixty (60) years to |
| |
24|undergo a medical examination, such examination to be made at the |
| |
Req. No. 6270 Page 29
___________________________________________________________________________
1|place of residence for the disabled annuitant or other place |
| |
2|mutually agreed upon by a physician or physicians designated by the |
| |
3|System. Should any disabled annuitant who has not yet attained the |
| |
4|age of sixty (60) years refuse to submit to at least one medical |
| |
5|examination in any such year by a physician or physicians designated |
| |
6|by the System his or her the member's allowance may be discontinued |
| |
7|until he or she the member submits to such examination. |
| |
8| (d) Should the Medical Board report and certify to the Board of |
| |
9|Trustees that such disabled annuitant is engaged in or is able to |
| |
10|engage in a gainful occupation paying more than the difference |
| |
11|between his or her the member's retirement allowance and the average |
| |
12|final compensation, and should the Board of Trustees concur in such |
| |
13|report then the amount of his or her the member's pension shall be |
| |
14|reduced to an amount which, together with his or her the member's |
| |
15|retirement allowance and that amount earnable by him or her the |
| |
16|member, shall equal the amount of his or her the member's average |
| |
17|final compensation. Should his or her the member's earning capacity |
| |
18|be later increased, the amount of his or her the member's pension |
| |
19|may be further modified, provided the new pension shall not exceed |
| |
20|that amount of the pension originally granted nor an amount, which |
| |
21|when added to the amount earnable by the member, together with his |
| |
22|or her the member's annuity, equals the amount of his or her the |
| |
23|member's average final compensation. |
| |
24| |
| |
Req. No. 6270 Page 30
___________________________________________________________________________
1| (e) Should a disabled annuitant be restored to active service, |
| |
2|his or her the member's disability retirement allowance shall cease |
| |
3|and he or she the member shall again become a an active member of |
| |
4|the Teachers' Retirement System and shall make regular contributions |
| |
5|as required under this article. The unused portion of his or her |
| |
6|the member's accumulated contributions shall be reestablished to his |
| |
7|or her the member's credit in the Teachers' Savings Fund. Any such |
| |
8|prior service certificates on the basis of which his or her the |
| |
9|member's service was computed at the time of his or her the member's |
| |
10|retirement shall be restored to full force and effect. |
| |
11| (7) Should a member before retirement under Section 1-101 et |
| |
12|seq. of this title make application for withdrawal duly filed with |
| |
13|the System, not earlier than four (4) months after the date of |
| |
14|termination of such service as a teacher member, the contribution |
| |
15|standing to the credit of his or her the member's individual account |
| |
16|in the Teachers' Savings Fund shall be paid to him or her the member |
| |
17|or, in the event of his or her the member's death before retirement, |
| |
18|shall be paid to such person or persons as he or she the member |
| |
19|shall have nominated by written designation, duly executed and filed |
| |
20|with the System; provided, however, if there be no designated |
| |
21|beneficiary surviving upon such death, such contributions shall be |
| |
22|paid to his or her the member's administrators, executors, or |
| |
23|assigns, together with interest as hereinafter provided. In lieu of |
| |
24|a lump-sum settlement at the death of the member, the amount of |
| |
Req. No. 6270 Page 31
___________________________________________________________________________
1|money the member has on deposit in the Teachers' Savings Fund and |
| |
2|the money the member has on deposit in the Teachers' Deposit Fund |
| |
3|may be paid in monthly payments to a designated beneficiary, who |
| |
4|must be the spouse, under the Maximum or Option 1 Plan of Retirement |
| |
5|providing the monthly payment shall be not less than Twenty-five |
| |
6|Dollars ($25.00) per month. The monthly payment shall be the |
| |
7|actuarial equivalent of the amount becoming due at the member's |
| |
8|death based on the sex of the spouse and the age the spouse has |
| |
9|attained at the last birthday prior to the member's death. Provided |
| |
10|further, if there be no designated beneficiary surviving upon such |
| |
11|death, and the contributions standing to the credit of such member |
| |
12|do not exceed Two Hundred Dollars ($200.00), no part of such |
| |
13|contributions shall be subject to the payment of any expense of the |
| |
14|last illness or funeral of the deceased member or any expense of |
| |
15|administration of the estate of such deceased and the System, upon |
| |
16|satisfactory proof of the death of such member and of the name or |
| |
17|names of the person or persons who would be entitled to receive such |
| |
18|contributions under the laws of descent and distribution of the |
| |
19|state, may authorize the payment of accumulated contributions to |
| |
20|such person or persons. A member terminating his or her membership |
| |
21|by withdrawal after June 30, 2003, shall have the interest computed |
| |
22|at a rate of interest determined by the Board of Trustees and paid |
| |
23|to him or her the member subject to the following schedule: |
| |
24| |
| |
Req. No. 6270 Page 32
___________________________________________________________________________
1| (a) If termination occurs within sixteen (16) years from the |
| |
2|date membership began, fifty percent (50%) of such interest |
| |
3|accumulations shall be paid. |
| |
4| (b) With at least sixteen (16) but less than twenty-one (21) |
| |
5|years of membership, sixty percent (60%) of such interest |
| |
6|accumulations shall be paid. |
| |
7| (c) With at least twenty-one (21) but less than twenty-six (26) |
| |
8|years of membership, seventy-five percent (75%) of such interest |
| |
9|accumulations shall be paid. |
| |
10| (d) With at least twenty-six (26) years of membership, ninety |
| |
11|percent (90%) of such interest accumulations shall be paid. |
| |
12| In case of death of an active member, the interest shall be |
| |
13|calculated and restored to the member's account and paid to his or |
| |
14|her beneficiary. |
| |
15| (8) (a) In lieu of his or her the maximum retirement allowance |
| |
16|benefit payable throughout life for such an amount as determined |
| |
17|under this section, the member may select a retirement allowance |
| |
18|benefit for a reduced amount payable under any of the following |
| |
19|options the present value of which is the actuarial equivalent |
| |
20|thereof. |
| |
21| (b) A member may select the option under which he or she |
| |
22|desires to retire at the end of the school year in which he or she |
| |
23|attains age seventy (70) and the option shall be binding and cannot |
| |
24|be changed. Provided further that if a member retires before age |
| |
Req. No. 6270 Page 33
___________________________________________________________________________
1|seventy (70), no election of an option shall be effective in case an |
| |
2|annuitant dies before the first payment due under such option has |
| |
3|been received. |
| |
4| (c) The first payment of any benefit selected shall be made on |
| |
5|the first day of the month following approval of the retirement by |
| |
6|the System. If the named designated joint annuitant under Option 2 |
| |
7|or 3 dies at any time after the member's retirement date, but before |
| |
8|the death of the member, the member shall return to the retirement |
| |
9|benefit, including any post-retirement benefit increases the member |
| |
10|would have received had the member not selected Option 2 or 3 of |
| |
11|this subsection. The maximum benefit shall be determined at the |
| |
12|date of death of the designated joint annuitant. This increase |
| |
13|shall become effective the first day of the month following the date |
| |
14|of death of the designated joint annuitant, and shall be payable for |
| |
15|the member's remaining lifetime. The member shall notify the |
| |
16|Teachers' Retirement System of Oklahoma of the death of the |
| |
17|designated joint annuitant in writing by providing a copy of the |
| |
18|joint annuitant's death certificate. In the absence of the written |
| |
19|notice death certificate being filed by the member notifying the |
| |
20|Teachers' Retirement System of Oklahoma of the death of the |
| |
21|designated joint annuitant within six (6) months of the date of |
| |
22|death, nothing in this subsection shall require the Teachers' |
| |
23|Retirement System of Oklahoma to pay more than six (6) months of |
| |
24|retrospective benefits increase. |
| |
Req. No. 6270 Page 34
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1| Option 1. A member takes a slightly reduced retirement benefit |
| |
2|for life. If he or she the member dies before he or she has received |
| |
3|receiving in annuity payments the present value of his or her the |
| |
4|member's annuity as it was at the time of his or her retirement, the |
| |
5|balance shall be paid to his or her legal representatives or to such |
| |
6|person as he or she shall nominate the member's beneficiary by |
| |
7|written designation duly acknowledged and filed with the System at |
| |
8|the time of his or her retirement prior to the member's death; or |
| |
9| Option 2. A member takes a reduced retirement allowance benefit |
| |
10|for life. Upon the death of the member the payments shall continue |
| |
11|to the member's designated joint annuitant for the life of the joint |
| |
12|annuitant. The written designation of the joint annuitant must be |
| |
13|duly acknowledged and filed with the System at the time of the |
| |
14|member's retirement and, except as provided in paragraph (e) of this |
| |
15|subsection, cannot be changed after the effective date of the |
| |
16|member's retirement; or |
| |
17| Option 3. A member receives a reduced retirement allowance |
| |
18|benefit for life. Upon the death of the member one-half (1/2) of |
| |
19|the retirement allowance benefit paid the member shall be continued |
| |
20|throughout the life of the designated member's joint annuitant. A |
| |
21|written designation of a joint annuitant must be duly acknowledged |
| |
22|and filed with the System at the time of the member's retirement |
| |
23|and, except as provided in paragraph (e) (d) of this subsection, |
| |
24| |
| |
Req. No. 6270 Page 35
___________________________________________________________________________
1|cannot be changed after the effective date of the member's |
| |
2|retirement; or |
| |
3| Option 4. Some Provided, the System may establish other |
| |
4|retirement options if certified by the actuary to be of equivalent |
| |
5|actuarial value to the member's retirement allowance. Other |
| |
6|retirement options shall be presented to the Board of Trustees for |
| |
7|approval at its discretion. These other benefit or benefits shall |
| |
8|be paid either to the member or, if applicable, to such joint |
| |
9|annuitant as he or she the member shall nominate, provided such |
| |
10|other benefit or benefits, together with the reduced retirement |
| |
11|allowance, shall be certified by the actuary to be of equivalent |
| |
12|actuarial value to his or her retirement allowance and shall be |
| |
13|approved by the System. |
| |
14| (d) (c) Provided that Option 2 and Option 3 shall not be |
| |
15|available if the member's expected benefit is less than fifty |
| |
16|percent (50%) of the lump-sum actuarial equivalent and the |
| |
17|designated joint annuitant is not the spouse of the member. |
| |
18| (e) (d) A member who chose the maximum retirement benefit plan |
| |
19|at the time of retirement may make a one-time election to choose |
| |
20|either Option 2 or 3 and name the member's spouse as designated |
| |
21|joint annuitant if the member marries after making the initial |
| |
22|election. Such an election shall be made within one (1) year of the |
| |
23|date of marriage. The member shall provide proof of a member's good |
| |
24|health before the System will permit a change to either Option 2 or |
| |
Req. No. 6270 Page 36
___________________________________________________________________________
1|3 and the naming of a designated joint annuitant. A medical |
| |
2|examination conducted by a licensed physician is required for |
| |
3|purposes of determining good health. Such examination must be |
| |
4|approved by the Medical Board. The member shall be required to |
| |
5|provide proof of age for the new joint annuitant. The System shall |
| |
6|adjust the monthly benefit to the actuarially equivalent amount |
| |
7|based on the new designated joint annuitant's age. The Board of |
| |
8|Trustees shall promulgate rules to implement the provisions of this |
| |
9|subsection. |
| |
10| (f) (e) A member who retires after the effective date of this |
| |
11|act and has selected a retirement allowance for a reduced amount |
| |
12|payable under one of the options provided for in this subsection may |
| |
13|make a one-time irrevocable election to select a different option |
| |
14|within sixty (60) days of the member's retirement date. The |
| |
15|beneficiary or joint annuitant designated by the member at the time |
| |
16|of retirement shall not be changed if the member makes the election |
| |
17|provided for in this paragraph. |
| |
18| (g) (f) Any individual who is eligible to be a beneficiary or |
| |
19|joint annuitant of a member under this subsection, and who is also a |
| |
20|beneficiary of a trust created under the Oklahoma Discretionary and |
| |
21|Special Needs Trust Act, Section 175.81 et seq. of Title 60 of the |
| |
22|Oklahoma Statutes, or a comparable Trust Act created under the laws |
| |
23|of another state, hereinafter collectively referred to as "Trust |
| |
24|Acts", may be a beneficiary or joint annuitant under this subsection |
| |
Req. No. 6270 Page 37
___________________________________________________________________________
1|by having the trustee of the trust established for the benefit of |
| |
2|that individual named as the legal beneficiary or joint annuitant |
| |
3|under this subsection. The age of that beneficiary shall be used |
| |
4|for calculating any benefit payable to the trust under this |
| |
5|subsection. The beneficiary of such a trust shall be treated as the |
| |
6|beneficiary or joint annuitant under this subsection except that |
| |
7|payments of any benefits due under this subsection shall be payable |
| |
8|to the lawfully appointed trustee of the trust. The obligation of |
| |
9|the System to pay the beneficiary or joint annuitant under this |
| |
10|subsection shall be satisfied by payment to the trustee whom the |
| |
11|System, in good faith, believes to be the lawfully appointed |
| |
12|trustee. Any conflict between the statutes creating and governing |
| |
13|the Teachers' Retirement System in Section 17-101 et seq. of this |
| |
14|title and the provisions of any Trust Act referred to above shall be |
| |
15|resolved in favor of the statutes governing the System. If an |
| |
16|eligible beneficiary or joint annuitant is named at the time of |
| |
17|retirement, and becomes a beneficiary of a trust under one of the |
| |
18|Trust Acts described herein after that time, the System will |
| |
19|acknowledge the trust as the beneficiary upon the submission of |
| |
20|adequate documentation of the existence of the trust. All other |
| |
21|provisions of this subsection shall apply to these subsequently |
| |
22|created trusts. |
| |
23| (h) (g) The Board of Trustees of the System may recognize other |
| |
24|trusts set up for the benefit of individuals otherwise eligible to |
| |
Req. No. 6270 Page 38
___________________________________________________________________________
1|be named as a beneficiary or joint annuitant under this subsection |
| |
2|by administrative rule if it can be done without undue additional |
| |
3|administrative expense of the System. |
| |
4| (9) The governing board of any "public school", as that term is |
| |
5|defined in Section 17-101 of this title, is hereby authorized and |
| |
6|empowered to pay additional retirement allowances or compensation to |
| |
7|any person who was in the employ of such public school for not less |
| |
8|than seven (7) school years preceding the date of his or her |
| |
9|retirement. Payments so made shall be a proper charge against the |
| |
10|current appropriation or appropriations of any such public school |
| |
11|for salaries for the fiscal year in which such payments are made. |
| |
12|Such payments shall be made in regular monthly installments in such |
| |
13|amounts as the governing board of any such public school, in its |
| |
14|judgment, shall determine to be reasonable and appropriate in view |
| |
15|of the length and type of service rendered by any such person to |
| |
16|such public school by which such person was employed at the time of |
| |
17|retirement. All such additional payments shall be uniform, based |
| |
18|upon the length of service and the type of services performed, to |
| |
19|persons formerly employed by such public school who have retired or |
| |
20|been retired in accordance with the provisions of Section 17-101 et |
| |
21|seq. of this title. |
| |
22| The governing board of any such public school may adopt rules |
| |
23|and regulations of general application outlining the terms and |
| |
24| |
| |
Req. No. 6270 Page 39
___________________________________________________________________________
1|conditions under which such additional retirement benefits shall be |
| |
2|paid, and all decisions of such board shall be final. |
| |
3| (10) In addition to the teachers' retirement herein provided, |
| |
4|teachers may voluntarily avail themselves of the Federal Social |
| |
5|Security Program upon a district basis. |
| |
6| (11) Upon the death of an in-service member, the System shall |
| |
7|pay to the designated beneficiary of the member or, if there is no |
| |
8|designated beneficiary or if the designated beneficiary predeceases |
| |
9|the member, to the estate of the member, the sum of Eighteen |
| |
10|Thousand Dollars ($18,000.00) as a death benefit. Provided, if the |
| |
11|deceased member had ten (10) years or more of creditable service, |
| |
12|the member's designated beneficiary may elect to receive the |
| |
13|retirement benefit to which the deceased member would have been |
| |
14|entitled at the time of death under the Option 2 plan of retirement |
| |
15|in lieu of the death benefit provided for in this subsection. |
| |
16|Provided further, the option provided in this subsection is only |
| |
17|available when the member has designated one individual as the |
| |
18|designated beneficiary. The beneficiary or beneficiaries of death |
| |
19|benefits in the amount not to exceed Eighteen Thousand Dollars |
| |
20|($18,000.00), but exclusive of any retirement benefit received by an |
| |
21|electing beneficiary based upon creditable service performed by the |
| |
22|deceased member, which are provided pursuant to this subsection may |
| |
23|elect to disclaim such death benefits in which case such benefits |
| |
24|will be transferred to a person licensed as a funeral director or to |
| |
Req. No. 6270 Page 40
___________________________________________________________________________
1|a lawfully recognized business entity licensed as required by law to |
| |
2|provide funeral services for the deceased member. The qualified |
| |
3|disclaimer must be in writing and will be an irrevocable and an |
| |
4|unqualified refusal to accept all or a portion of the death benefit. |
| |
5| It must be received by the transferor no more than nine (9) months |
| |
6|after the later of the day the transfer creating the interest in the |
| |
7|disclaiming person is made or the day the disclaiming person attains |
| |
8|age twenty-one (21). The interest in the death benefits must pass |
| |
9|without direction by the disclaiming person to another person. After |
| |
10|paying death benefits to any beneficiary or the member's estate |
| |
11|pursuant to this subsection, the System is discharged and released |
| |
12|from any and all liability, obligation and costs. The System is not |
| |
13|required to inquire into the truth of any matter specified in this |
| |
14|subsection or into the payment of any estate tax liability. |
| |
15| (12) Upon the death of a retired member who has contributed to |
| |
16|the System, the retirement system shall pay to the designated |
| |
17|beneficiary of the member or, if there is no designated beneficiary |
| |
18|or if the designated beneficiary predeceases the member, to the |
| |
19|estate of the member, the sum of Five Thousand Dollars ($5,000.00) |
| |
20|as a death benefit. The beneficiary or beneficiaries of benefits |
| |
21|provided pursuant to this subsection may elect to disclaim such |
| |
22|death benefits in which case such benefits will be transferred to a |
| |
23|person licensed as a funeral director or to a lawfully recognized |
| |
24|business entity licensed as required by law to provide funeral |
| |
Req. No. 6270 Page 41
___________________________________________________________________________
1|services for the deceased member. The qualified disclaimer must be |
| |
2|in writing and will be an irrevocable and an unqualified refusal to |
| |
3|accept all or a portion of the death benefit. It must be received |
| |
4|by the transferor no more than nine (9) months after the later of |
| |
5|the day the transfer creating the interest in the disclaiming person |
| |
6|is made or the day the disclaiming person attains age twenty-one |
| |
7|(21). The interest in the death benefits must pass without |
| |
8|direction by the disclaiming person to another person. The benefit |
| |
9|payable pursuant to this subsection shall be deemed, for purposes of |
| |
10|federal income taxation, as life insurance proceeds and not as a |
| |
11|death benefit if the Internal Revenue Service approves this |
| |
12|provision pursuant to a private letter ruling request which shall be |
| |
13|submitted by the Board of Trustees of the System for that purpose. |
| |
14|After paying death benefits to any beneficiary or the member's |
| |
15|estate pursuant to this subsection, the System is discharged and |
| |
16|released from any and all liability, obligation and costs. The |
| |
17|System is not required to inquire into the truth of any matter |
| |
18|specified in this subsection or into the payment of any estate tax |
| |
19|liability. |
| |
20| (13) Upon the death of a member who dies leaving no living |
| |
21|beneficiary or having designated his or her estate as beneficiary, |
| |
22|the System may pay any applicable death benefit, unpaid |
| |
23|contributions, or unpaid benefit which may be subject to probate, in |
| |
24|an amount of Twenty-five Thousand Dollars ($25,000.00) or less, |
| |
Req. No. 6270 Page 42
___________________________________________________________________________
1|without the intervention of the probate court or probate procedure |
| |
2|pursuant to Section 1 et seq. of Title 58 of the Oklahoma Statutes. |
| |
3| (a) Before any applicable probate procedure may be waived, the |
| |
4|System must be in receipt of the member's proof of death and the |
| |
5|following documents from those persons claiming to be the legal |
| |
6|heirs of the deceased member: |
| |
7| 1. The member's valid last will and testament, trust |
| |
8| documents or affidavit that a will does not exist; |
| |
9| 2. An affidavit or affidavits of heirship which must |
| |
10| state: |
| |
11| a. the names and signatures of all claiming heirs to |
| |
12| the deceased member's estate including the |
| |
13| claiming heirs' names, relationship to the |
| |
14| deceased, current addresses, tax I.D. numbers if |
| |
15| known and current telephone numbers, |
| |
16| b. a statement or statements by the claiming heirs |
| |
17| that no application or petition for the |
| |
18| appointment of a personal representative is |
| |
19| pending or has been granted in any jurisdiction, |
| |
20| c. a description of the personal property claimed, |
| |
21| (i.e., death benefit or unpaid contributions or |
| |
22| both) together with a statement that such |
| |
23| personal property is subject to probate, |
| |
24| |
| |
Req. No. 6270 Page 43
___________________________________________________________________________
1| d. a statement by each individual claiming heir |
| |
2| identifying the amount of personal property that |
| |
3| the heir is claiming from the System, and that |
| |
4| the heir has been notified of, is aware of and |
| |
5| consents to the identified claims of all the |
| |
6| other claiming heirs of the deceased member |
| |
7| pending with the System; |
| |
8| 3. A written agreement or agreements signed by all |
| |
9| claiming heirs of the deceased member which provides |
| |
10| that the claiming heirs release, discharge and hold |
| |
11| harmless the System from any and all liability, |
| |
12| obligations and costs which it may incur as a result |
| |
13| of making a payment to any of the deceased member's |
| |
14| heirs; |
| |
15| 4. A corroborating affidavit from an individual other |
| |
16| than a claiming heir, who was familiar with the |
| |
17| affairs of the deceased member; |
| |
18| 5. Proof that all debts of the deceased member, including |
| |
19| payment of last sickness, hospital, medical, death, |
| |
20| funeral and burial expenses have been paid or provided |
| |
21| for. |
| |
22| (b) The Executive Director of the System shall retain complete |
| |
23|discretion in determining which requests for probate waiver may be |
| |
24|granted or denied, for any reason. Should the System have any |
| |
Req. No. 6270 Page 44
___________________________________________________________________________
1|question as to the validity of any document presented by the |
| |
2|claiming heirs, or as to any statement or assertion contained |
| |
3|therein, the probate requirement provided for in Section 1 et seq. |
| |
4|of Title 58 of the Oklahoma Statutes shall not be waived. |
| |
5| (c) After paying any death benefits or unpaid contributions to |
| |
6|any claiming heirs as provided pursuant to this subsection, the |
| |
7|System is discharged and released from any and all liability, |
| |
8|obligation and costs to the same extent as if the System had dealt |
| |
9|with a personal representative of the deceased member. The System |
| |
10|is not required to inquire into the truth of any matter specified in |
| |
11|this subsection or into the payment of any estate tax liability. |
| |
12| (14) Upon the death of a retired member, the benefit payment |
| |
13|for the month in which the retired member died, if not previously |
| |
14|paid, shall be made to the joint annuitant if still living, to the |
| |
15|beneficiary of the member if the joint annuitant is deceased, or to |
| |
16|the member's estate if there is no surviving joint annuitant or |
| |
17|beneficiary. Such benefit payment shall be made in an amount equal |
| |
18|to a full monthly benefit payment regardless of the day of the month |
| |
19|in which the retired member died. |
| |
20| SECTION 4. AMENDATORY 70 O.S. 2021, Section 17-105.1, is |
| |
21|amended to read as follows: |
| |
22| Section 17-105.1 In the event the total retirement payments |
| |
23|made to a retired member and the retired member's joint annuitant, |
| |
24|if any, are less than the member's accumulated contributions with |
| |
Req. No. 6270 Page 45
___________________________________________________________________________
1|interest as credited at the time of retirement under Section 17-105 |
| |
2|of this title, the difference shall be paid to the member's |
| |
3|designated beneficiary or if no designated beneficiary survives, |
| |
4|then to the member's nearest surviving next of kin as determined by |
| |
5|law estate. This provision shall apply to retired members dying on |
| |
6|or after July 1, 1979. After paying unpaid accumulated |
| |
7|contributions to any designated beneficiary or the member's estate |
| |
8|pursuant to this section, the System is discharged and released from |
| |
9|any and all liability, obligation and costs. The System is not |
| |
10|required to inquire into the truth of any matter specified in this |
| |
11|subsection or into the payment of any estate tax liability. |
| |
12| SECTION 5. AMENDATORY 70 O.S. 2021, Section 17-106.3, is |
| |
13|amended to read as follows: |
| |
14| Section 17-106.3 A. All employee and employer contributions |
| |
15|and dedicated revenues shall be deposited in the Oklahoma Teachers' |
| |
16|Retirement Fund in the State Treasury. The Board of Trustees shall |
| |
17|have the responsibility for the management of the Oklahoma Teachers' |
| |
18|Retirement Fund, and may transfer monies used for investment |
| |
19|purposes by the Teachers' Retirement System of Oklahoma from the |
| |
20|Oklahoma Teachers' Retirement Fund in the State Treasury to the |
| |
21|custodian bank or trust company of the System. |
| |
22| B. All benefits payable pursuant to the provisions of the |
| |
23|Teachers' Retirement System of Oklahoma, refunds of contribution and |
| |
24|overpayments, and all administrative expenses in connection with the |
| |
Req. No. 6270 Page 46
___________________________________________________________________________
1|System shall be paid from the Oklahoma Teachers' Retirement Fund |
| |
2|upon warrants or vouchers signed by two persons designated by the |
| |
3|Board of Trustees. All expenses of the administration of the |
| |
4|Tax-Sheltered Annuity Fund shall be paid from the Oklahoma Teachers'Retirement Fund. The Board of Trustees may transfer monies from the |
| |
6|custodian bank or trust company of the System to the Oklahoma |
| |
7|Teachers' Retirement Fund in the State Treasury for the purposes |
| |
8|specified in this subsection. |
| |
9| SECTION 6. AMENDATORY 70 O.S. 2021, Section 17-107, is |
| |
10|amended to read as follows: |
| |
11| Section 17-107. The interest earned on the investments in the |
| |
12|Teachers' Retirement System of Oklahoma shall be credited in the |
| |
13|following manner: |
| |
14| 1. money on deposit in the Teachers' Deposit Fund or |
| |
15|Tax-Sheltered Annuity Fund shall be credited with interest annually |
| |
16|compounded; |
| |
17| 2. there shall be deducted from the annual interest on |
| |
18|investments an amount necessary for the amortization of bonds |
| |
19|purchased and owned by the Teachers' Retirement System of Oklahoma; |
| |
20| 3. 2. there shall be deducted from the annual interest on |
| |
21|investments an amount of money necessary for the operation of the |
| |
22|Teachers' Retirement System of Oklahoma; and |
| |
23| 4. 3. any residue remaining in the Interest Fund after the |
| |
24|requirements of paragraphs 1 through 3 and 2 of this section have |
| |
Req. No. 6270 Page 47
___________________________________________________________________________
1|been fully met shall be used for the purpose of paying retirement |
| |
2|benefits to the retirees of the Teachers' Retirement System of |
| |
3|Oklahoma and transferred to the Retirement Benefit Fund; the |
| |
4|interest income shall be distributed to the various funds on June 30 |
| |
5|each year. |
| |
6| SECTION 7. AMENDATORY 70 O.S. 2021, Section 17-108, is |
| |
7|amended to read as follows: |
| |
8| Section 17-108. A. Each local school district, or state |
| |
9|college or university, or State Board of Education, or State Board |
| |
10|of Career and Technology Education, or other state agencies whose |
| |
11|employees are members of the Teachers' Retirement System |
| |
12|("participating employers"), shall match, on a pro rata basis, in |
| |
13|accordance with subsection B of this section the contributions of |
| |
14|members whose salaries are paid by federal funds or externally |
| |
15|sponsored agreements such as grants, contracts and cooperative |
| |
16|agreements. These funds shall be remitted at the same time as the |
| |
17|regular contributions of members are remitted to the Teachers' |
| |
18|Retirement System of Oklahoma and deposited in the Retirement |
| |
19|Benefit Fund. |
| |
20| B. On an annual basis, the Board of Trustees shall set two |
| |
21|contribution rates to be paid by contributing employers as provided |
| |
22|in subsection A of this section. Both contribution rates shall be |
| |
23|determined using cost principles established by federal regulations |
| |
24|and shall be consistent with policies, regulations and procedures |
| |
Req. No. 6270 Page 48
___________________________________________________________________________
1|that apply uniformly to both federally assisted and other |
| |
2|activities, and be accorded consistent treatment through application |
| |
3|of generally accepted accounting principles. The Board shall |
| |
4|approve the contribution rates for each fiscal year ending June 30, |
| |
5|no later than April 1 of the previous fiscal year. The first rate |
| |
6|shall be applied to service performed during the regular school year |
| |
7|of the participating employer. The second rate shall be applied to |
| |
8|service performed by members during a summer school program of the |
| |
9|participating employer. For the purposes of this subsection, |
| |
10|"summer school program" is defined as a program offering academic |
| |
11|enrichment for students from Pre-K through 12th grades during the |
| |
12|summer term after the close of the school year. Members shall only |
| |
13|be considered as providing service to a summer school program if |
| |
14|such service is provided pursuant to a separate summer school |
| |
15|contract between the member and the participating employer. The |
| |
16|term "summer school program" does not include services performed at |
| |
17|a participating employer offering an extended school year pursuant |
| |
18|to Section 1-109.1 of this title, or services performed by staff |
| |
19|pursuant to a twelve-month contract with the employer. The method |
| |
20|applied to setting the second contribution rate may take into |
| |
21|consideration whether, or to what extent, such service is likely to |
| |
22|add to members' service credit or final average salary; provided, |
| |
23|however, the second rate shall not exceed one-half (1/2) of the |
| |
24|first rate established in this subsection. The actuary retained by |
| |
Req. No. 6270 Page 49
___________________________________________________________________________
1|the Board may recommend such rates using assumptions that apply to |
| |
2|the group of those members whose service is subject to the second |
| |
3|contribution rate. |
| |
4| C. All the assets of the retirement system shall be credited |
| |
5|according to the purpose for which they are held to one of eight |
| |
6|funds, namely: The Teachers' Savings Fund, the Retirement Benefit |
| |
7|Fund, the Interest Fund, the Permanent Retirement Fund, the Expense |
| |
8|Fund, the Suspense Fund, the Teachers' Deposit Fund, and the Retiree |
| |
9|Medical Benefit Fund. |
| |
10| 1. The Teachers' Savings Fund shall be a fund in which shall be |
| |
11|accumulated the regular contributions from the compensation of |
| |
12|members, including interest earnings prior to July 1, 1968. |
| |
13|Contributions to and payments from the Teachers' Savings Fund shall |
| |
14|be made as specifically provided in each plan available within the |
| |
15|retirement system. |
| |
16| 2. The deductions provided for in the plans within the |
| |
17|retirement system shall be made notwithstanding that the minimum |
| |
18|compensation provided for any member shall be reduced thereby. |
| |
19|Every member shall be deemed to consent and agree to the deductions |
| |
20|made and provided for herein and payment of salary or compensation, |
| |
21|less the deduction, shall be a full and complete discharge and |
| |
22|acquittance of all claims and demands whatsoever for the services |
| |
23|rendered by such person during the period covered by such payment, |
| |
24|except as to the benefits provided under this act. The employer |
| |
Req. No. 6270 Page 50
___________________________________________________________________________
1|shall certify to the Board of Trustees on each and every payroll, or |
| |
2|in such other manner as the Board may prescribe, the amounts to be |
| |
3|deducted, and each of the amounts shall be deducted, and when |
| |
4|deducted shall be paid into the Teachers' Savings Fund, and shall be |
| |
5|credited to the individual account of the member from whose |
| |
6|compensation the deduction was made. |
| |
7| 3. Following the termination of membership in the retirement |
| |
8|system for any member who has been absent from service for five (5) |
| |
9|years in any period of six (6) consecutive years, the Teachers' |
| |
10|Savings Fund Account of such member shall be closed and the amount |
| |
11|due the member as provided in Section 17-105 of this title shall be |
| |
12|paid upon the filing of formal application. At the time such |
| |
13|membership is terminated the amount due the member as provided in |
| |
14|Section 17-105 of this title shall be transferred to the Suspense |
| |
15|Fund. |
| |
16| 4. Upon the retirement of a member, the balance of money he or |
| |
17|she the member had in the Teachers' Savings Fund shall be |
| |
18|transferred to the Retirement Benefit Fund. |
| |
19| 5. Retirement Benefit Fund. |
| |
20| a. After August 2, 1969, there shall be transferred from |
| |
21| the Teachers' Savings Fund for those members drawing |
| |
22| retirement benefits from the Teachers' Retirement |
| |
23| System of Oklahoma an amount necessary to provide the |
| |
24| monthly annuity payments and pension payments as |
| |
Req. No. 6270 Page 51
___________________________________________________________________________
1| required in Section 17-107 of this title. In addition |
| |
2| the fund shall consist of monies received from any |
| |
3| state dedicated revenue, monies received from state |
| |
4| appropriations, monies received from federal matching |
| |
5| funds, and the residue of the interest on investments |
| |
6| after the requirements of Section 17-107 of this title |
| |
7| have been fully met. The Retirement Benefit Fund |
| |
8| shall consist of an amount of money necessary for the |
| |
9| making of retirement payments to retirees. |
| |
10| b. Should a member have deposits in the Teachers'Deposit Fund or the Tax-Sheltered Annuity Fund and |
| |
12| wish to receive monthly retirement benefits on such |
| |
13| deposits, the actuarial equivalent of a two-year |
| |
14| period and each succeeding fiscal year thereafter |
| |
15| shall be transferred to the Retirement Benefit Fund. |
| |
16| The member may choose any of the plans available in |
| |
17| the Teachers' Retirement Act as a method of receiving |
| |
18| monthly retirement benefits on the money he has on |
| |
19| deposit in the Teachers' Deposit Fund or the |
| |
20| Tax-Sheltered Annuity Fund. The monthly retirement |
| |
21| benefits paid from the Teachers' Deposit Fund or the |
| |
22| Tax-Sheltered Annuity Fund shall be in addition to the |
| |
23| regular retirement benefits and the money transferred |
| |
24| |
| |
Req. No. 6270 Page 52
___________________________________________________________________________
1| from the Teachers' Deposit Fund or Tax-Sheltered |
| |
2| Annuity Fund shall not be matched by the State of |
| |
3| Oklahoma. |
| |
4| c. From the Retirement Benefit Fund shall be paid all |
| |
5| monthly retirement benefits. |
| |
6| d. |
| |
7| c. At the death of a retired member who has retired |
| |
8| under the Maximum Plan of Retirement, or Option 1 or |
| |
9| Option 4, the balance of money the member has in the |
| |
10| Teachers' Savings Fund shall be transferred to the |
| |
11| Retirement Benefit Fund and the amount due the |
| |
12| member's beneficiary or his or her estate under the |
| |
13| Maximum Plan or Option 1 or Option 4 shall be paid |
| |
14| from the Retirement Benefit Fund. |
| |
15| e. |
| |
16| d. At the death of both a retired member who had retired |
| |
17| under Option 2 or 3 and the retired member's spouse |
| |
18| annuitant, who had retired under Option 2 or 3, any |
| |
19| balance in the Teachers' Savings Fund shall be |
| |
20| transferred from the Teachers' Savings Fund to the |
| |
21| Retirement Benefit Fund. |
| |
22| f. At the death of a retired member who had retired |
| |
23| under Option 5, the balance of any monies the member |
| |
24| had in the Teachers' Savings Fund shall be transferred |
| |
Req. No. 6270 Page 53
___________________________________________________________________________
1| to the Retirement Benefit Fund for the purpose of |
| |
2| making a lump-sum settlement to the beneficiary or his |
| |
3| estate. Providing that if the surviving spouse elects |
| |
4| to receive the balance under the Maximum Plan of |
| |
5| Retirement or Option 1 the member's money, if any, on |
| |
6| a monthly basis, constituting actuarial equivalent of |
| |
7| two (2) years' payments, and each year thereafter the |
| |
8| annual actuarial equivalent, shall be transferred from |
| |
9| the Teachers' Savings Fund for the purpose of paying |
| |
10| monthly retirement benefits to the spouse under this |
| |
11| option. |
| |
12|
1| 8. The Expense Fund shall be the fund from which the expense of |
| |
2|administration and maintenance of the retirement system shall be |
| |
3|paid. The Board of Trustees shall cause to be prepared and adopt |
| |
4|annually an itemized budget showing the amount required to defray |
| |
5|the expenses for the ensuing fiscal year. |
| |
6| Transfers to and payments from this fund shall be made as |
| |
7|follows: first, from the Interest Fund; second, from any dedicated |
| |
8|revenue; and, third, from appropriation by the Oklahoma Legislature. |
| |
9| All monies for the operation of the Teachers' Retirement System |
| |
10|of Oklahoma shall be paid from the Expense Fund upon the approval by |
| |
11|the Board of Trustees and the checks signed by two people designated |
| |
12|to sign such checks by the Board of Trustees of the Teachers' |
| |
13|Retirement System of Oklahoma. |
| |
14| 9. The Suspense Fund shall be comprised of amounts transferred |
| |
15|to the fund as provided in this section and Section 17-105 of this |
| |
16|title and obligations of the retirement system to any member or |
| |
17|person which cannot be legally discharged. |
| |
18| 10. Teachers' Deposit Fund. |
| |
19| Any member may request, prior to a pay period, that his or her |
| |
20|employer make additional deposits for him or her, for tax-sheltered |
| |
21|annuity purposes. However, the amount deposited shall not exceed |
| |
22|the limits as defined in Section 402(g) and Section 415 of the |
| |
23|Internal Revenue Code of 1986, as amended, and applicable federal |
| |
24|regulations. All such deposits shall be credited to the member's |
| |
Req. No. 6270 Page 55
___________________________________________________________________________
1|account in the Teachers' Deposit Fund for the purchase of a |
| |
2|tax-sheltered annuity. The amount thus accumulated, with earnings, |
| |
3|shall be used upon the member's retirement, separation from service, |
| |
4|death or disability to purchase an annuity in addition to his or her |
| |
5|regular service retirement allowance. The amount a member |
| |
6|accumulates in the Teachers' Deposit Fund, not including interest, |
| |
7|may be used to pay distributions in the case of hardship as provided |
| |
8|in Section 403(b)(11) of the Internal Revenue Code of 1986, as |
| |
9|amended, and applicable federal regulations. |
| |
10| 11. Collection of Contributions. |
| |
11| The collection of members' contributions shall be as |
| |
12| follows: |
| |
13| (1) Each employer shall cause to be deducted on each |
| |
14| and every payroll or claim of a member for each |
| |
15| and every payroll claim period subsequent to the |
| |
16| date of establishment of the retirement system |
| |
17| the contribution payable by such member as |
| |
18| provided in this act. With each and every |
| |
19| payroll or claim the employer shall deliver to |
| |
20| the treasurer of the employer warrants issued to |
| |
21| the employees as shown to be due by the payroll |
| |
22| or claim, together with a warrant or warrants in |
| |
23| favor of the Teachers' Retirement System as shown |
| |
24| by the payroll or claim. |
| |
Req. No. 6270 Page 56
___________________________________________________________________________
1| (2) The treasurer or disbursing officer upon |
| |
2| delivery of the warrants and a true copy of the |
| |
3| payroll or claims as provided above shall |
| |
4| register the warrants as provided for the |
| |
5| registration of other school warrants, and shall |
| |
6| deliver to the employer warrants issued in favor |
| |
7| of the employees, and shall deliver warrants |
| |
8| issued in favor of the Teachers' Retirement |
| |
9| System and the copy of the payroll or claims to |
| |
10| the school district superintendent as designated |
| |
11| by the Board of Trustees. For the purpose of |
| |
12| collecting contributions of teachers in the |
| |
13| public schools, the superintendent of a school |
| |
14| district is hereby designated to receive the |
| |
15| Teachers' Retirement warrants from the treasurer |
| |
16| or proper disbursing officer of the several |
| |
17| school districts for the purpose of transmitting |
| |
18| such warrants and payroll or claims to the |
| |
19| Executive Director of the Teachers' Retirement |
| |
20| System of the State of Oklahoma. Any college or |
| |
21| university or other educational institution or |
| |
22| agency operated in whole or in part by the state |
| |
23| shall have the amount retained or deducted from |
| |
24| the funds regularly appropriated by the state for |
| |
Req. No. 6270 Page 57
___________________________________________________________________________
1| the current maintenance for such educational |
| |
2| departments and institutions. |
| |
3| (3) For the purpose of enabling the collection of |
| |
4| the contributions of the members of the |
| |
5| retirement system to be made as simple as |
| |
6| possible, the Board of Trustees shall require the |
| |
7| secretary or other officer of each employer-board |
| |
8| or agency, within thirty (30) days after the |
| |
9| beginning of each school year, to make a list of |
| |
10| all teachers in its employ who are members of the |
| |
11| retirement system, certify to the correctness of |
| |
12| this list, and file the same with the Executive |
| |
13| Director of the Board of Trustees of the |
| |
14| Teachers' Retirement System. If additions to or |
| |
15| deductions from this list should be made during |
| |
16| the year such additions or deductions shall |
| |
17| likewise be certified to the Board of Trustees of |
| |
18| the Teachers' Retirement System. |
| |
19| (4) The State Treasurer shall furnish annually to |
| |
20| the Board of Trustees a sworn statement of the |
| |
21| amount of the funds in his or her custody |
| |
22| belonging to the retirement system. The records |
| |
23| of the Board of Trustees shall be open to public |
| |
24| inspection and any member of the retirement |
| |
Req. No. 6270 Page 58
___________________________________________________________________________
1| system shall be furnished with a statement of the |
| |
2| amount of the credit to his or her the member's |
| |
3| individual account upon written request by such |
| |
4| member, provided the Board of Trustees shall not |
| |
5| be required to answer more than one such request |
| |
6| of a member in any one (1) year. |
| |
7| (5) Failure of any superintendent, officer, or other |
| |
8| person to discharge the duties imposed upon him |
| |
9| or her by this act shall render him or her or his |
| |
10| or her bondsman liable for any loss occasioned |
| |
11| thereby to the Teachers' Retirement System or the |
| |
12| employees of the school district, or both. |
| |
13| (6) On a showing by the Teachers' Retirement System |
| |
14| that a warrant, voucher or check issued to it |
| |
15| has, for any reason, been lost or never received, |
| |
16| after ninety (90) days from the date of issue or |
| |
17| from transmittal for payment, it shall be the |
| |
18| duty of the issuing authority forthwith, without |
| |
19| any indemnifying bond or other requirements, to |
| |
20| issue a duplicate thereof in lieu of that which |
| |
21| was lost, to the Teachers' Retirement System; and |
| |
22| the Teachers' Retirement System shall save |
| |
23| harmless any school district or agency of state |
| |
24| government making payment under the provisions |
| |
Req. No. 6270 Page 59
___________________________________________________________________________
1| hereof to the State Teachers' Retirement System |
| |
2| if the original warrant, voucher or check is |
| |
3| later presented for payment and same is paid |
| |
4| after a duplicate warrant, voucher or check has |
| |
5| been issued and paid to the Teachers' Retirement |
| |
6| System, and any loss sustained therefrom shall be |
| |
7| charged to the Interest Fund. |
| |
8| 12. 11. Rollover Contributions and Direct Trustee-to-Trustee |
| |
9|Transfers from Other Plans. |
| |
10| Any member may purchase credit for service, to the extent |
| |
11|specified in this title, with rollovers from an eligible retirement |
| |
12|plan as defined by the Internal Revenue Code of 1986, as amended |
| |
13|from time to time. A member may also purchase permissive service |
| |
14|credit, as defined by Code Section 415(n)(3)(A), with a direct |
| |
15|trustee-to-trustee transfer from a governmental Code Section 403(b) |
| |
16|plan or governmental Code Section 457(b) plan. All rollovers and |
| |
17|direct trustee-to-trustee transfers shall be allowed to the extent |
| |
18|permitted by federal law. Rollovers or direct transfers in excess |
| |
19|of the amount necessary to purchase such service credit shall not be |
| |
20|allowed. |
| |
21| 13. 12. Retiree Medical Benefit Fund. |
| |
22| The Retiree Medical Benefit Fund shall be maintained as a |
| |
23|subaccount under the Retirement Benefit Fund. The Retiree Medical |
| |
24|Benefit Fund is composed of all assets contributed to this |
| |
Req. No. 6270 Page 60
___________________________________________________________________________
1|subaccount to pay the retirement system's portion of the monthly |
| |
2|retiree health insurance benefits described in Section 1316.3 of |
| |
3|Title 74 of the Oklahoma Statutes. All allocated assets and the |
| |
4|earnings thereon in the Retiree Medical Benefit Fund shall be held |
| |
5|for the exclusive purpose of providing retiree medical benefits |
| |
6|pursuant to Section 1316.3 of Title 74 of the Oklahoma Statutes. |
| |
7|The Retiree Medical Benefit Fund shall be administered in accordance |
| |
8|with the requirements under Section 401(h) of the Internal Revenue |
| |
9|Code of 1986, as amended from time to time. An amount necessary to |
| |
10|pay the health insurance premiums for retired members as provided by |
| |
11|Section 1316.3 of Title 74 of the Oklahoma Statutes shall be |
| |
12|deposited each month into the Retiree Medical Benefit Fund. |
| |
13| SECTION 8. AMENDATORY 70 O.S. 2021, Section 17-116.2, is |
| |
14|amended to read as follows: |
| |
15| Section 17-116.2 A. 1. Beginning July 1, 1987, and prior to |
| |
16|July 1, 1995, a member who retires on or after the member's normal |
| |
17|retirement age or whose retirement is because of disability shall |
| |
18|receive an annual allowance for life, payable monthly, in an amount |
| |
19|equal to two percent (2%) of the member's highest three-year average |
| |
20|salary upon which member contributions were made, multiplied by the |
| |
21|number of the member's years of creditable service. |
| |
22| A classified member who retired prior to July 1, 1986, shall |
| |
23|have the member's retirement allowance calculated on a minimum |
| |
24|average salary of Eleven Thousand Five Hundred Dollars ($11,500.00) |
| |
Req. No. 6270 Page 61
___________________________________________________________________________
1|or on the member's current minimum average salary plus Two Thousand |
| |
2|Dollars ($2,000.00), whichever is greater. Beginning July 1, 1994, |
| |
3|a classified member who retired prior to July 1, 1993, shall have |
| |
4|the member's retirement allowance calculated on the member's current |
| |
5|minimum average salary plus Five Hundred Fifty Dollars ($550.00). |
| |
6|An unclassified member who retired prior to July 1, 1986, shall have |
| |
7|the member's retirement allowance calculated on a minimum average |
| |
8|salary of Nine Thousand Five Hundred Dollars ($9,500.00) or on the |
| |
9|member's current minimum average salary plus One Thousand Dollars |
| |
10|($1,000.00), whichever is greater. Beginning July 1, 1994, an |
| |
11|unclassified member who retired prior to July 1, 1993, shall have |
| |
12|the member's retirement allowance calculated on the member's current |
| |
13|minimum average salary plus Two Hundred Seventy-five Dollars |
| |
14|($275.00). Those individuals receiving benefits pursuant to |
| |
15|subsection (3) of Section 17-105 of this title whose benefits |
| |
16|commenced prior to July 1, 1993, shall receive an increase in |
| |
17|benefits of two and one-half percent (2 1/2%). No retirement |
| |
18|benefit payments shall be made retroactively. |
| |
19| For those members retiring before normal retirement age, except |
| |
20|for those members retiring because of a disability, the retirement |
| |
21|allowance shall be subject to adjustment in accordance with the |
| |
22|actuarial equivalent factors adopted by the Board of Trustees. |
| |
23| 2. Beginning July 1, 1995, a member, who has no service |
| |
24|performed on or after July 1, 1995, for an entity or institution |
| |
Req. No. 6270 Page 62
___________________________________________________________________________
1|within The Oklahoma State System of Higher Education, who retires on |
| |
2|or after the member's normal retirement age or whose retirement is |
| |
3|because of disability shall receive an annual allowance for life, |
| |
4|payable monthly as follows: |
| |
5| a. if the member becomes a member after June 30, 1995, |
| |
6| and was not eligible to become a member prior to July |
| |
7| 1, 1995, in an amount equal to two percent (2%) of the |
| |
8| member's average salary upon which member |
| |
9| contributions were made, multiplied by the number of |
| |
10| the member's years of creditable service, or |
| |
11| b. if the member became a member or is eligible to become |
| |
12| a member prior to July 1, 1995, and elected to have a |
| |
13| maximum compensation level in excess of Twenty-five |
| |
14| Thousand Dollars ($25,000.00) pursuant to paragraph 1 |
| |
15| of subsection C of this section or pursuant to |
| |
16| subsection E of this section, or if the member's |
| |
17| salary has never exceeded Twenty-five Thousand Dollars |
| |
18| ($25,000.00) prior to July 1, 1995, in an amount equal |
| |
19| to: |
| |
20| (1) two percent (2%) of the member's average salary |
| |
21| upon which member contributions were made not to |
| |
22| exceed Forty Thousand Dollars ($40,000.00), |
| |
23| multiplied by the number of the member's years of |
| |
24| credited service authorized and performed prior |
| |
Req. No. 6270 Page 63
___________________________________________________________________________
1| to July 1, 1995, plus any years of prior service |
| |
2| authorized under this title, plus |
| |
3| (2) two percent (2%) of the member's average salary |
| |
4| upon which member contributions were made, |
| |
5| multiplied by the number of the member's years of |
| |
6| credited service authorized and performed after |
| |
7| June 30, 1995, or |
| |
8| c. if the member became a member or is eligible to become |
| |
9| a member prior to July 1, 1995, and was eligible to |
| |
10| elect to have a maximum compensation level in excess |
| |
11| of Twenty-five Thousand Dollars ($25,000.00) and did |
| |
12| not elect or elected not to have a maximum |
| |
13| compensation level of Forty Thousand Dollars |
| |
14| ($40,000.00) pursuant to paragraph 1 of subsection C |
| |
15| of this section or pursuant to subsection E of this |
| |
16| section, in an amount equal to: |
| |
17| (1) two percent (2%) of the member's average salary |
| |
18| upon which member contributions were made not to |
| |
19| exceed Twenty-five Thousand Dollars ($25,000.00), |
| |
20| multiplied by the number of the member's years of |
| |
21| credited service authorized and performed prior |
| |
22| to July 1, 1995, plus any years of prior service |
| |
23| authorized under this title, plus |
| |
24| |
| |
Req. No. 6270 Page 64
___________________________________________________________________________
1| (2) two percent (2%) of the member's average salary |
| |
2| upon which member contributions were made, |
| |
3| multiplied by the number of the member's years of |
| |
4| credited service authorized and performed after |
| |
5| June 30, 1995. |
| |
6| B. Except as otherwise provided for in this section, the amount |
| |
7|contributed by each member to the retirement system shall be: |
| |
8| 1. Beginning July 1, 1992, through June 30, 1996, six percent |
| |
9|(6%) of the regular annual compensation of such member not in excess |
| |
10|of Twenty-five Thousand Dollars ($25,000.00) and beginning July 1, |
| |
11|1995, through June 30, 1996, six percent (6%) of the maximum |
| |
12|compensation level; |
| |
13| 2. Beginning July 1, 1996, through June 30, 1997, six and |
| |
14|one-half percent (6 1/2%) of the regular annual compensation of |
| |
15|members, who are not employed by an entity or institution within The |
| |
16|Oklahoma State System of Higher Education not in excess of |
| |
17|Twenty-five Thousand Dollars ($25,000.00) and beginning July 1, |
| |
18|1996, through June 30, 1997, six and one-half percent (6 1/2%) of |
| |
19|the regular annual compensation of members, who are employed by an |
| |
20|entity or institution within The Oklahoma State System of Higher |
| |
21|Education, not in excess of Twenty-five Thousand Dollars |
| |
22|($25,000.00); |
| |
23| |
| |
24| |
| |
Req. No. 6270 Page 65
___________________________________________________________________________
1| 3. Beginning July 1, 1997, seven percent (7%) of the regular |
| |
2|annual compensation of the member not in excess of any applicable |
| |
3|maximum compensation level of the member; and |
| |
4| 4. All public schools in this state shall treat the employee |
| |
5|contributions as being picked up under the provisions of Section 414 |
| |
6|(h)(2) of the Internal Revenue Code of 1986 in determining tax |
| |
7|treatment. |
| |
8|Subject to Internal Revenue Service approval, paragraph 4 of this |
| |
9|subsection shall not apply to a comprehensive university group |
| |
10|established on or before July 1, 1998, whose employee contributions |
| |
11|were consistently treated as not picked up as of July 1, 1998, and |
| |
12|at all times thereafter. |
| |
13| C. 1. Prior to July 1, 1995, an active member of the System |
| |
14|may elect to have a maximum compensation level of Forty Thousand |
| |
15|Dollars ($40,000.00). Such an election shall be made in writing and |
| |
16|filed with the System. Members whose salaries are in excess of |
| |
17|Twenty-five Thousand Dollars ($25,000.00) on July 20, 1987, shall |
| |
18|file the election with the System prior to January 1, 1988. Members |
| |
19|whose salaries exceed Twenty-five Thousand Dollars ($25,000.00) |
| |
20|after July 20, 1987, shall file the election when the salary exceeds |
| |
21|Twenty-five Thousand Dollars ($25,000.00). If a member makes such |
| |
22|an election, the member shall contribute the following amounts: |
| |
23| a. beginning July 1, 1992, through June 30, 1993, eleven |
| |
24| percent (11%) of the regular annual compensation of |
| |
Req. No. 6270 Page 66
___________________________________________________________________________
1| such member that is in excess of Twenty-five Thousand |
| |
2| Dollars ($25,000.00) and is not in excess of Forty |
| |
3| Thousand Dollars ($40,000.00), |
| |
4| b. beginning July 1, 1993, through June 30, 1994, nine |
| |
5| percent (9%) of the regular annual compensation of |
| |
6| such member that is in excess of Twenty-five Thousand |
| |
7| Dollars ($25,000.00) and is not in excess of Forty |
| |
8| Thousand Dollars ($40,000.00), and |
| |
9| c. beginning July 1, 1994, through June 30, 1995, eight |
| |
10| percent (8%) of the regular annual compensation of |
| |
11| such member that is in excess of Twenty-five Thousand |
| |
12| Dollars ($25,000.00) and is not in excess of Forty |
| |
13| Thousand Dollars ($40,000.00). Except as provided in |
| |
14| subsection E of this section, any such election shall |
| |
15| be irrevocable. |
| |
16| 2. After June 30, 1995, in addition to the amount contributed |
| |
17|by each member to the retirement system pursuant to subsection B of |
| |
18|this section, the total amount contributed by each member to the |
| |
19|retirement system shall include, beginning July 1, 1995, through |
| |
20|June 30, 1997, seven percent (7%) of the regular annual compensation |
| |
21|of each member, who is not employed by an entity or institution |
| |
22|within The Oklahoma State System of Higher Education, that is in |
| |
23|excess of Twenty-five Thousand Dollars ($25,000.00) and beginning |
| |
24|July 1, 1996, through June 30, 1997, seven percent (7%) of the |
| |
Req. No. 6270 Page 67
___________________________________________________________________________
1|regular annual compensation of each member who is employed by an |
| |
2|entity or institution within The Oklahoma State System of Higher |
| |
3|Education in excess of Twenty-five Thousand Dollars ($25,000.00), |
| |
4|but not in excess of any applicable maximum compensation level of |
| |
5|the member. |
| |
6| D. 1. Any member who was a contributing member of the |
| |
7|Retirement System between July 1, 1987, and June 30, 1995, who at |
| |
8|the time the member was eligible to make an election to increase the |
| |
9|maximum compensation level of the member, failed to make an election |
| |
10|or chose not to increase the maximum compensation level of the |
| |
11|member to Forty Thousand Dollars ($40,000.00), may elect to make |
| |
12|back contributions to the Retirement System. The member shall |
| |
13|complete a new election form and file with the Board of Trustees, |
| |
14|the form and a payment equaling the difference between the amount |
| |
15|contributed at the twenty-five-thousand-dollar level and the |
| |
16|appropriate contribution on compensation in excess of Twenty-five |
| |
17|Thousand Dollars ($25,000.00) up to a maximum of Forty Thousand |
| |
18|Dollars ($40,000.00) shall be made prior to the official retirement |
| |
19|date of the member. The required payment shall include any |
| |
20|contribution required by the employing school district, and shall |
| |
21|include interest compounded annually at ten percent (10%) per annum |
| |
22|of both employer and employee contributions. |
| |
23| 2. Any changes made pursuant to this subsection shall be |
| |
24|irrevocable. |
| |
Req. No. 6270 Page 68
___________________________________________________________________________
1| E. 1. An individual who withdrew from the Teachers' Retirement |
| |
2|System and whose salary was in excess of Seven Thousand Eight |
| |
3|Hundred Dollars ($7,800.00) and had elected to contribute only on |
| |
4|Seven Thousand Eight Hundred Dollars ($7,800.00) before his or her |
| |
5|withdrawal shall contribute on the earning ceiling as provided for |
| |
6|in this section on his or her reentry into membership in the |
| |
7|Teachers' Retirement System. |
| |
8| 2. An individual who elected to contribute on a maximum of |
| |
9|Seven Thousand Eight Hundred Dollars ($7,800.00) per annum shall, |
| |
10|beginning July 1, 1979, contribute on his or her the member's |
| |
11|earning ceiling as provided for in this section. |
| |
12| 3. Any member who elected to contribute on Seven Thousand Eight |
| |
13|Hundred Dollars ($7,800.00) prior to January 1, 1978, and whose |
| |
14|salary was more than Seven Thousand Eight Hundred Dollars |
| |
15|($7,800.00) during the school years 1974-75 through 1978-79 may |
| |
16|elect to make back contributions to the retirement system by paying |
| |
17|the five percent (5%) contributions on the difference between Seven |
| |
18|Thousand Eight Hundred Dollars ($7,800.00) and the actual salary of |
| |
19|the member, not to exceed Ten Thousand Dollars ($10,000.00) for each |
| |
20|applicable school year, plus interest compounded annually at ten |
| |
21|percent (10%) per annum. Such payment shall be made prior to the |
| |
22|official retirement date of the member. |
| |
23| F. Each employer shall cause to be deducted from the salary of |
| |
24|each member on each and every payroll of such employer for each and |
| |
Req. No. 6270 Page 69
___________________________________________________________________________
1|every payroll period, the proper percentage of his or her earnable |
| |
2|the member's regular annual compensation as provided for in |
| |
3|subsection B or subsection C of this section. |
| |
4| 1. Deductions shall begin with the first payroll period of the |
| |
5|school year. In determining the amount earnable by a contributions |
| |
6|to deduct for each member in a payroll period, the Board of Trustees |
| |
7|shall consider the rate of annual compensation payable to such |
| |
8|member on the first day of the payroll period as continuing |
| |
9|throughout such payroll period, and it may omit deductions from |
| |
10|compensation for any period less than a full period, and to |
| |
11|facilitate the making of deductions, it may modify the deduction |
| |
12|required of any member by such an amount as shall not exceed |
| |
13|one-tenth of one percent (1/10 of 1%) of the annual compensation |
| |
14|upon the basis of which such deduction is to be made. Prior to |
| |
15|January 1, 1991, any active contributing member who joined the |
| |
16|System subsequent to July 1, 1943, may pay the normal cost, which |
| |
17|shall mean the single sum which would have been paid under existing |
| |
18|statutes at the time the service was performed, plus interest, for |
| |
19|years of teaching service in Oklahoma from the date of establishment |
| |
20|of the System in 1943 to date of membership, in a lump sum, or in |
| |
21|installments equal to establishing one (1) year of creditable |
| |
22|service. Effective January 1, 1991, any active contributing member |
| |
23|who joined the System subsequent to July 1, 1943, may pay the amount |
| |
24|determined by the Board of Trustees pursuant to Section 17-116.8 of |
| |
Req. No. 6270 Page 70
___________________________________________________________________________
1|this title for years of teaching service in Oklahoma from the date |
| |
2|of establishment of the System in 1943 to date of membership, in a |
| |
3|lump sum, or in installments equal to establishing one (1) year of |
| |
4|creditable service. For purposes of this option, teaching service |
| |
5|in Oklahoma shall include the teaching of vocational agricultural |
| |
6|courses within Oklahoma for the federal government. Years for which |
| |
7|contributions are paid shall count as membership service under this |
| |
8|plan. A member may receive credit for not more than five (5) years |
| |
9|of teaching service rendered while in the Peace Corps or in the |
| |
10|public schools of a territory of the United States or the public |
| |
11|schools, American Military Dependent Schools or state colleges or |
| |
12|state universities outside this state by paying his or her |
| |
13|contributions, plus interest, and membership fees to the retirement |
| |
14|system, subject to the regulations of the Board of Trustees, |
| |
15|providing he or she is not receiving and is not eligible to receive |
| |
16|retirement credit or benefits from said service in any other public |
| |
17|retirement system of this state, or any other state or territory of |
| |
18|the United States subject to the following provisions: |
| |
19| a. the member is required to have two (2) years of |
| |
20| employed service teaching earned in Oklahoma for each |
| |
21| year of Peace Corps, territorial, out-of-state, |
| |
22| noncovered in-state or military membership credit |
| |
23| granted. |
| |
24| |
| |
Req. No. 6270 Page 71
___________________________________________________________________________
1| b. prior to January 1, 1991, the out-of-state or |
| |
2| noncovered in-state payment shall be the normal cost, |
| |
3| which means the single sum which would have been paid |
| |
4| under existing law at the time the service was |
| |
5| performed, plus interest, on the basis of what his or |
| |
6| her annual salary would have been in Oklahoma or out |
| |
7| of state, whichever is greater, had he or she been |
| |
8| employed as a teacher. Effective January 1, 1991, the |
| |
9| Peace Corps, territorial, out-of-state or noncovered |
| |
10| in-state payment shall be the amount determined by the |
| |
11| Board of Trustees pursuant to Section 17-116.8 of this |
| |
12| title. |
| |
13| 2. In addition to the deductions hereinabove provided for, any |
| |
14|member who becomes a member of the Armed Forces of the United States |
| |
15|of America during any period of national emergency, including World |
| |
16|War II, the Korean conflict, the Vietnam conflict or others as may |
| |
17|be determined by the Board of Trustees, or whose entrance into or |
| |
18|training for the teaching profession was interrupted by his or her |
| |
19|entrance into the Armed Forces, and who was or shall have become a |
| |
20|member of the Teachers' Retirement System shall be granted the |
| |
21|privilege of making up his or her five percent (5%) contributions as |
| |
22|provided for in this section until January 1, 1991, for not to |
| |
23|exceed five (5) years of service in the Armed Forces by electing to |
| |
24|pay said contributions on the basis of the rate of pay in his or her |
| |
Req. No. 6270 Page 72
___________________________________________________________________________
1|contract as a teacher at the time his or her service in the Armed |
| |
2|Forces commenced or in the case of a teacher who was not teaching |
| |
3|prior to entering the Armed Forces, on the basis of the salary of |
| |
4|the first year of teaching after being honorably discharged from the |
| |
5|Armed Forces. Effective January 1, 1991, the member will receive |
| |
6|such service upon payment of the amount determined by the Board of |
| |
7|Trustees pursuant to Section 17-116.8 of this title. Such |
| |
8|contributions shall be credited in the regular manner, and the |
| |
9|period for which said contributions were paid shall be counted as |
| |
10|creditable years of service and allocated to the period during which |
| |
11|the military service was rendered, except that the period for which |
| |
12|contributions were paid must have been continuous and shall be |
| |
13|credited in the aggregate, regardless of fiscal year limitations. |
| |
14|Notwithstanding any provision herein to the contrary, contributions, |
| |
15|benefits and service credit with respect to qualified military |
| |
16|service as defined by Section 414(u) of the Internal Revenue Code of |
| |
17|1986 shall be provided in accordance with Section 414(u) of the |
| |
18|Internal Revenue Code. |
| |
19| 3. Retirement benefits for all service credits purchased |
| |
20|pursuant to this subsection shall be determined in accordance with |
| |
21|the provisions of paragraph 2 of this subsection. |
| |
22| G. Effective July 1, 2004, the total creditable service of a |
| |
23|member who retires or terminates employment and elects a vested |
| |
24|benefit shall include not to exceed one hundred twenty (120) days of |
| |
Req. No. 6270 Page 73
___________________________________________________________________________
1|unused sick leave accumulated subsequent to August 1, 1959. Twenty |
| |
2|(20) days of unused sick leave shall equal one (1) month for |
| |
3|purposes of creditable service credit. If the member becomes a |
| |
4|member or was eligible to become a member prior to July 1, 1995, the |
| |
5|year of credit received in this section shall be treated as service |
| |
6|earned prior to July 1, 1995. This subsection shall apply to |
| |
7|members retiring or vesting on or after the effective date of this |
| |
8|act and shall not be retroactive. |
| |
9| H. Any member who: |
| |
10| 1. Shall be absent from the teaching service because of |
| |
11|election to the State Legislature or appointment to the executive |
| |
12|branch in an education-related capacity shall be allowed thirty (30) |
| |
13|days from the date as of which the person is officially elected or |
| |
14|appointed to file an election with the Teachers' Retirement System |
| |
15|to retain his or her membership in the Teachers' Retirement System |
| |
16|upon payment of the contribution required of other members and |
| |
17|employers of said members as provided for in this section and his or |
| |
18|her service credits shall continue to be accumulated during such |
| |
19|absence, provided he or she is not receiving retirement credits or |
| |
20|benefits from said service beginning after July 1, 1992, in other |
| |
21|public retirement systems; or |
| |
22| 2. Became an employee of the Oklahoma Commission for Teacher |
| |
23|Preparation on or subsequent to June 1, 2001, but prior to July 1, |
| |
24|2002, who was previously employed by a participating employer within |
| |
Req. No. 6270 Page 74
___________________________________________________________________________
1|the Teachers' Retirement System of Oklahoma, may elect to cancel any |
| |
2|accumulated service credit accrued within the Oklahoma Public |
| |
3|Employees Retirement System on or after June 1, 2001, but prior to |
| |
4|July 1, 2002, by filing an election with the Oklahoma Public |
| |
5|Employees Retirement System for the cancellation of such service |
| |
6|credit. The election shall be irrevocable and shall require the |
| |
7|Oklahoma Public Employees Retirement System to transfer all |
| |
8|accumulated employer and employee contributions made on behalf of or |
| |
9|by the person making such election to the Teachers' Retirement |
| |
10|System for such period of time. The Teachers' Retirement System |
| |
11|shall compute the employee contributions that would have been made |
| |
12|to the System by such employee if the contributions had been |
| |
13|computed pursuant to this section. In order to receive the full |
| |
14|amount of creditable service for the period of time on or after June |
| |
15|1, 2001, but not later than June 30, 2002, the employee shall be |
| |
16|required to pay any difference between the transferred employee |
| |
17|contributions and the amount computed by the Teachers' Retirement |
| |
18|System. The employee may make payment of any required amount in the |
| |
19|manner provided by and subject to the requirements of Section |
| |
20|17-116.8 of this title. After payment of all required employee |
| |
21|contributions, the Teachers' Retirement System shall credit the |
| |
22|period of time represented by the transferred employee contributions |
| |
23|as creditable service within the meaning of Section 17-101 of this |
| |
24|title. After the transfer of the employee contributions, the |
| |
Req. No. 6270 Page 75
___________________________________________________________________________
1|Oklahoma Public Employees Retirement System shall cancel any service |
| |
2|credit previously accumulated for the period of time represented by |
| |
3|such transferred employee contributions. Any person who makes the |
| |
4|election provided for by this paragraph, and who continues |
| |
5|employment with the Oklahoma Commission for Teacher Preparation on |
| |
6|or after July 1, 2002, shall continue to accrue service credit in |
| |
7|the Teachers' Retirement System of Oklahoma. The employer shall |
| |
8|make employer contributions according to the requirements of Section |
| |
9|17-108.1 of this title and shall provide for the deduction of |
| |
10|employee contributions as required by this section. |
| |
11| I. Any member who shall be absent from the teaching service |
| |
12|because of election or appointment as a local, state or national |
| |
13|education association officer, prior to January 1, 2011, shall be |
| |
14|allowed to retain his or her membership in the Teachers' Retirement |
| |
15|System upon payment of the contribution required of other members |
| |
16|and employers of said members as provided for in this section and |
| |
17|his or her service credits shall continue to be accumulated during |
| |
18|such absence. Provided, however, any one such absence shall not |
| |
19|exceed twelve (12) continuous years. No member who has less than |
| |
20|ten (10) years of contributory service on July 1, 1994, may make |
| |
21|this election after June 30, 1994. Members contributing to the |
| |
22|System on July 1, 1994, may continue to contribute under this |
| |
23|subsection until they have completed eight (8) years allowed by this |
| |
24|subsection. The member may file for retirement when otherwise |
| |
Req. No. 6270 Page 76
___________________________________________________________________________
1|eligible for retirement as provided by Section 17-105 of this title. |
| |
2| J. A member may receive credit for those years of service |
| |
3|accumulated by the member while employed by an entity which is a |
| |
4|participating employer in the Oklahoma Firefighters Pension and |
| |
5|Retirement System, the Oklahoma Police Pension and Retirement |
| |
6|System, the Uniform Retirement System for Justices and Judges, the |
| |
7|Oklahoma Law Enforcement Retirement System, or the Oklahoma Public |
| |
8|Employees Retirement System, if the member is not receiving or |
| |
9|eligible to receive retirement credit or benefits from said service |
| |
10|in any other public retirement system. A member also may receive |
| |
11|credit for those years of service with the Department of Wildlife |
| |
12|Conservation or with an employer that is a participating employer |
| |
13|within one of the state retirement systems specifically referred to |
| |
14|in this section when at the time of such service by the member the |
| |
15|employer was not such a participating employer, if the member is not |
| |
16|receiving or eligible to receive retirement credit or benefits from |
| |
17|said service in any other public retirement system. To receive the |
| |
18|service credit provided in this subsection, the member shall pay the |
| |
19|amount determined by the Board of Trustees pursuant to Section |
| |
20|17-116.8 of this title. For purposes of this subsection, creditable |
| |
21|service transferred from the Oklahoma Public Employees Retirement |
| |
22|System shall include service authorized under paragraph (f) of |
| |
23|subsection (2) of Section 913 of Title 74 of the Oklahoma Statutes |
| |
24|as amended from time to time. Members who retire prior to July 1, |
| |
Req. No. 6270 Page 77
___________________________________________________________________________
1|1993, shall have their monthly benefit adjusted to include all |
| |
2|services accrued under paragraph (f) of subsection (2) of Section |
| |
3|913 of Title 74 of the Oklahoma Statutes. Provided however, any |
| |
4|adjustment of existing retirement benefits caused by reason of |
| |
5|inclusion of such service authorized under paragraph (f) of |
| |
6|subsection (2) of Section 913 of Title 74 of the Oklahoma Statutes |
| |
7|shall not affect any retirement benefit paid prior to July 1, 1993. |
| |
8| K. 1. An active member of the Teachers' Retirement System of |
| |
9|Oklahoma may receive credit for those years of service accumulated |
| |
10|by the member while a member of the Oklahoma Public Employees |
| |
11|Retirement System if: |
| |
12| a. the member is an active member of the Teachers' |
| |
13| Retirement System of Oklahoma, and |
| |
14| b. the member provides notice to the Oklahoma Public |
| |
15| Employees Retirement System and the Teachers' |
| |
16| Retirement System of Oklahoma of the member's election |
| |
17| to transfer said service credit. The notice shall |
| |
18| include a list of the years to be transferred, and |
| |
19| c. the member is not receiving or eligible to receive |
| |
20| retirement credit or benefits from said service in any |
| |
21| other public retirement system, notwithstanding the |
| |
22| years of service sought to be transferred under this |
| |
23| subsection. |
| |
24| |
| |
Req. No. 6270 Page 78
___________________________________________________________________________
1| Members electing to take advantage of the transfer authorized by |
| |
2|this subsection who are receiving or eligible to receive retirement |
| |
3|credit or benefits from said service in any other public retirement |
| |
4|system shall have all service credit with the Oklahoma Public |
| |
5|Employees Retirement System canceled which is not transferred to the |
| |
6|Teachers' Retirement System of Oklahoma or used as a cash offset in |
| |
7|such a transfer pursuant to subparagraph d of paragraph 2 of this |
| |
8|subsection. Service credit transferred to the Teachers' Retirement |
| |
9|System of Oklahoma under this subsection shall also be canceled with |
| |
10|the Oklahoma Public Employees Retirement System. |
| |
11| 2. For purposes of this subsection, the "sending system" shall |
| |
12|mean the Oklahoma Public Employees Retirement System. The |
| |
13|"receiving system" shall mean the Teachers' Retirement System of |
| |
14|Oklahoma. |
| |
15| a. Within thirty (30) days notification of an intent to |
| |
16| transfer is received by the sending system, the |
| |
17| sending system shall, according to its own rules and |
| |
18| regulations: |
| |
19| (1) for members who have accrued at least eight (8) |
| |
20| years of credited service with the sending |
| |
21| system, determine the present value of the |
| |
22| member's earned benefits attributable to the |
| |
23| years of service sought to be transferred, |
| |
24| discounted according to the member's age at the |
| |
Req. No. 6270 Page 79
___________________________________________________________________________
1| time of transfer and computed as of the earliest |
| |
2| age at which the member would be able to retire. |
| |
3| Said computation shall assume an unreduced |
| |
4| benefit and be computed using interest and |
| |
5| mortality assumptions consistent with the |
| |
6| actuarial assumptions adopted by the Board of |
| |
7| Trustees for purposes of preparing the annual |
| |
8| actuarial evaluation, but shall not make any |
| |
9| projections regarding future salary. For |
| |
10| employees who have accrued at least eight (8) |
| |
11| years of credited service, the sending system |
| |
12| shall use the product of this calculation for |
| |
13| purposes of determining the transfer fee to be |
| |
14| paid by the employee under subparagraph c of this |
| |
15| paragraph so long as it is greater than the |
| |
16| product of the calculation in division (2) of |
| |
17| this subparagraph, and |
| |
18| (2) determine the sum of the employee and employer |
| |
19| contributions applicable to the years of service |
| |
20| sought to be transferred plus interest consistent |
| |
21| with the actuarial assumptions adopted by the |
| |
22| Board of Trustees for purposes of preparing the |
| |
23| annual actuarial evaluation. For all nonvested |
| |
24| members, and for members who have accrued at |
| |
Req. No. 6270 Page 80
___________________________________________________________________________
1| least eight (8) years of credited service, if the |
| |
2| product of this calculation is greater than the |
| |
3| product of the calculation in division (1) of |
| |
4| this subparagraph, the sending system shall use |
| |
5| the product of this calculation for purposes of |
| |
6| determining the amount to be transferred by the |
| |
7| sending system under subparagraph c of this |
| |
8| paragraph and any transfer fee to be paid by the |
| |
9| member under subparagraph d of this paragraph. |
| |
10| b. Within thirty (30) days notification of an intent to |
| |
11| transfer is received by the receiving system, the |
| |
12| receiving system shall determine, according to the |
| |
13| system's own rules and regulations, the present value |
| |
14| of the member's incremental projected benefits |
| |
15| discounted according to the member's age at the time |
| |
16| of the transfer. Incremental projected benefits shall |
| |
17| be the difference between the projected benefit said |
| |
18| member would receive without transferring the service |
| |
19| credit and the projected benefit after transfer of |
| |
20| service credit computed as of the earliest age at |
| |
21| which the member would be able to retire. Said |
| |
22| computation shall assume an unreduced benefit and be |
| |
23| computed using interest, salary projections and |
| |
24| mortality assumptions consistent with the actuarial |
| |
Req. No. 6270 Page 81
___________________________________________________________________________
1| assumptions adopted by the Board of Trustees for |
| |
2| purposes of preparing the annual actuarial evaluation. |
| |
3| c. The sending system shall, within sixty (60) days from |
| |
4| the date notification of an intent to transfer is |
| |
5| received by the sending system, transfer to the |
| |
6| receiving system the amount determined in subparagraph |
| |
7| a of this paragraph. Except if the cost as calculated |
| |
8| under subparagraph a of this paragraph is greater than |
| |
9| the actuarial value of the incremental benefit in the |
| |
10| receiving system, as established in subparagraph b of |
| |
11| this paragraph, the sending system shall send the |
| |
12| receiving system an amount equal to the actuarial |
| |
13| value of the incremental projected benefit in the |
| |
14| receiving system. |
| |
15| d. In order to receive the credit provided for in |
| |
16| paragraph 1 of this subsection, if the cost of the |
| |
17| actuarial value of the incremental benefit to the |
| |
18| receiving system is greater than the cost as |
| |
19| calculated under subparagraph a of this paragraph for |
| |
20| the same years of service to the sending system as |
| |
21| established in subparagraphs a and b of this |
| |
22| paragraph, the employee shall elect to: |
| |
23| (1) pay any difference to receive full credit for the |
| |
24| years sought to be transferred, or |
| |
Req. No. 6270 Page 82
___________________________________________________________________________
1| (2) receive prorated service credit for only the |
| |
2| amount received from the Oklahoma Public |
| |
3| Employees Retirement System pursuant to this |
| |
4| subsection. |
| |
5| Such an election shall be made in writing, filed with |
| |
6| the System prior to receiving the credit provided for |
| |
7| in paragraph 1 of this subsection, and shall be |
| |
8| irrevocable. |
| |
9| 3. Within sixty (60) days of successfully completing all of the |
| |
10|requirements for transfer under this subsection, the sending system |
| |
11|shall pay the receiving system any amount due under this subsection. |
| |
12| Within sixty (60) days of successfully completing all of the |
| |
13|requirements for transfer under this subsection, the member shall |
| |
14|pay the receiving system any amount due under this subsection. In |
| |
15|the event that the member is unable to pay the transfer fee provided |
| |
16|for in this subsection by the due date, the Board of Trustees of the |
| |
17|receiving system shall permit the member to amortize the transfer |
| |
18|fee over a period not to exceed sixty (60) months. Said payments |
| |
19|shall be made by payroll deductions unless the Board of Trustees |
| |
20|permits an alternate payment source. The amortization shall include |
| |
21|interest in an amount not to exceed the actuarially assumed interest |
| |
22|rate adopted by the Board of Trustees for investment earnings each |
| |
23|year. Any member who ceases to make payment, terminates, retires or |
| |
24|dies before completing the payments provided for in this section |
| |
Req. No. 6270 Page 83
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1|shall receive prorated service credit for only those payments made, |
| |
2|unless the unpaid balance is paid by said member, his or her estate |
| |
3|or successor in interest within six (6) months after said member's |
| |
4|death, termination of employment or retirement, provided no |
| |
5|retirement benefits shall be payable until the unpaid balance is |
| |
6|paid, unless said member or beneficiary affirmatively waives the |
| |
7|additional six-month period in which to pay the unpaid balance. |
| |
8| 4. Years of service transferred pursuant to this subsection |
| |
9|shall be used both in determining the member's retirement benefit |
| |
10|and in determining the years of service for retirement and/or |
| |
11|vesting purposes. Years of service rendered as a member of the |
| |
12|Oklahoma Public Employees Retirement System prior to July 1, 1992, |
| |
13|if any, shall be deemed to be years of service rendered as a member |
| |
14|of the Teachers' Retirement System of Oklahoma prior to July 1, |
| |
15|1992, and shall qualify such person as a member of the Teachers' |
| |
16|Retirement System of Oklahoma before July 1, 1992. |
| |
17| 5. Notwithstanding the requirements of subsection (5) of |
| |
18|Section 917 of Title 74 of the Oklahoma Statutes, members electing |
| |
19|to take advantage of the transfer authorized by this subsection who |
| |
20|have withdrawn their contributions from the sending system shall |
| |
21|remit to the sending system the amount of the accumulated |
| |
22|contributions the member has withdrawn plus simple interest of ten |
| |
23|percent (10%) per annum prior to making said election or the |
| |
24|election shall be deemed invalid and the transfer shall be canceled. |
| |
Req. No. 6270 Page 84
___________________________________________________________________________
1| If such an election is deemed invalid and the transfer is canceled, |
| |
2|the accumulated contribution remitted to the sending system by the |
| |
3|member who originally withdrew their contributions shall be returned |
| |
4|to the member. The member's rights and obligations regarding any |
| |
5|service credit reestablished in the sending system due to a failure |
| |
6|to satisfy the requirements of this subsection shall be determined |
| |
7|by the sending system in accordance with Section 901 et seq. of |
| |
8|Title 74 of the Oklahoma Statutes. |
| |
9| 6. If any member fails for any reason to satisfy the |
| |
10|requirements of this subsection, the election to transfer service |
| |
11|credit shall be void and of no effect, and any service credited as a |
| |
12|result of this transfer shall be canceled. If such service is |
| |
13|canceled, the years of canceled service credit which were |
| |
14|unsuccessfully transferred to the receiving system from the sending |
| |
15|system shall be reestablished in the sending system. The member's |
| |
16|rights and obligations regarding any service credit reestablished in |
| |
17|the sending system due to a failure to satisfy the requirements of |
| |
18|this subsection shall be determined by the sending system in |
| |
19|accordance with Section 901 et seq. of Title 74 of the Oklahoma |
| |
20|Statutes. |
| |
21| 7. The Board of Trustees shall promulgate such rules as are |
| |
22|necessary to implement the provisions of this subsection. |
| |
23| L. Any member whose regular annual compensation was not |
| |
24|determined as provided for by law may pay the member contribution |
| |
Req. No. 6270 Page 85
___________________________________________________________________________
1|required pursuant to subsection B of this section on such amount not |
| |
2|included in the member's regular annual compensation and receive |
| |
3|credit for such amount in the calculation of the member's benefit. |
| |
4|The employees must pay the employer contributions required pursuant |
| |
5|to Section 17-108.1 of this title. Interest at the rate of ten |
| |
6|percent (10%) per annum shall be charged to both employee and |
| |
7|employer contributions. Provided that the employing district may |
| |
8|pay all or any portion of the contributions and interest the member |
| |
9|is required to pay. Any payment by the employing district for a |
| |
10|prior year obligation shall be considered a current obligation of |
| |
11|the employer. |
| |
12| M. Any active member who elected during the 1978-79 school year |
| |
13|to pay the difference between five percent (5%) on actual salary not |
| |
14|exceeding Ten Thousand Dollars ($10,000.00) and six percent (6%) on |
| |
15|actual salary not exceeding Fifteen Thousand Dollars ($15,000.00) |
| |
16|shall receive credit for one (1) year of credited service upon |
| |
17|receipt and approval of a proper request by the Board of Trustees. |
| |
18| N. Effective July 1, 1988, any member who is employed by the |
| |
19|Governor, the State Senate, the House of Representatives or the |
| |
20|Legislative Service Bureau shall be allowed to elect to retain |
| |
21|membership in the Retirement System upon payment of the accrued and |
| |
22|current member contributions and employer contributions as provided |
| |
23|in subsection B of this section and Section 17-108.1 of this title. |
| |
24|Such contributions may be paid on behalf of the member by the |
| |
Req. No. 6270 Page 86
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1|employing entity. Upon payment of such contributions, service |
| |
2|credits shall continue to be accumulated during such employment. |
| |
3|Accrued contributions shall be paid to the Retirement System by |
| |
4|August 1, 1989. Current contributions shall be paid to the |
| |
5|Retirement System by the tenth of the following month beginning with |
| |
6|the month of July 1989. |
| |
7| O. Notwithstanding any requirements of this title to restrict |
| |
8|the payment of service purchases, the Board of Trustees shall |
| |
9|promulgate such rules as necessary to allow active members of the |
| |
10|System to make installment payments for the redeposit of withdrawn |
| |
11|accounts or other payments due under the provisions of this title. |
| |
12|The rules shall permit the member to amortize the balance due over a |
| |
13|period not to exceed sixty (60) months, and shall include interest |
| |
14|consistent with the actuarial assumptions adopted by the Board of |
| |
15|Trustees for purposes of preparing the annual actuarial evaluation. |
| |
16|Further, the rules shall provide that all payments must be completed |
| |
17|prior to the effective retirement date of the member. |
| |
18| P. 1. A member of the Oklahoma Public Employees Retirement |
| |
19|System who becomes a member of the Teachers' Retirement System of |
| |
20|Oklahoma because the member has become employed by an entity or |
| |
21|institution within The Oklahoma State System of Higher Education, |
| |
22|State Board of Education, State Board of Career and Technology |
| |
23|Education, Oklahoma Department of Career and Technology Education, |
| |
24|Oklahoma School of Science and Mathematics, Oklahoma Center for the |
| |
Req. No. 6270 Page 87
___________________________________________________________________________
1|Advancement of Science and Technology, State Department of |
| |
2|Rehabilitation Services, Oklahoma State Regents for Higher |
| |
3|Education, Department of Corrections, State Department of Education, |
| |
4|Oklahoma Board of Private Vocational Schools, Board of Regents of |
| |
5|Oklahoma Colleges, Oklahoma Student Loan Authority, or the Teachers' |
| |
6|Retirement System of Oklahoma, may elect to receive credit in the |
| |
7|Teachers' Retirement System of Oklahoma for those years of service |
| |
8|accumulated by the member in the Oklahoma Public Employees |
| |
9|Retirement System pursuant to this subsection. A member shall be |
| |
10|eligible to elect to receive credit for such years of service if: |
| |
11| a. the member is an active member of the Teachers' |
| |
12| Retirement System of Oklahoma, |
| |
13| b. the member provides notice to the Teachers' Retirement |
| |
14| System of Oklahoma and the Oklahoma Public Employees |
| |
15| Retirement System of the member's election to transfer |
| |
16| such retirement credit. The notice shall include a |
| |
17| list of the years to be transferred, and |
| |
18| c. the member is not receiving or eligible to receive |
| |
19| retirement credit or benefits from such service in any |
| |
20| other public retirement system, notwithstanding the |
| |
21| years of service sought to be transferred under this |
| |
22| subsection. |
| |
23|Members electing to take advantage of the transfer authorized by |
| |
24|this subsection shall have all service credit with the Oklahoma |
| |
Req. No. 6270 Page 88
___________________________________________________________________________
1|Public Employees Retirement System canceled which is transferred to |
| |
2|the Teachers' Retirement System of Oklahoma. |
| |
3| 2. For purposes of this subsection, the "sending system" shall |
| |
4|mean the Oklahoma Public Employees Retirement System. The |
| |
5|"receiving system" shall mean the Teachers' Retirement System of |
| |
6|Oklahoma. Within thirty (30) days after notification of an intent |
| |
7|to transfer is received by the sending system, the sending system |
| |
8|shall, according to its own rules, send to the receiving system all |
| |
9|employer and employee contributions made on behalf of the member |
| |
10|which were made to the sending system plus an additional amount of |
| |
11|earnings based on the actuarial assumed rate of the sending system. |
| |
12|Upon receipt of these contributions by the receiving system, the |
| |
13|receiving system shall give credit to the transferring member in an |
| |
14|amount equal to the years of service accrued in the sending system. |
| |
15| 3. If the transferring member's normal retirement date |
| |
16|calculation is based upon the sum of the member's age and number of |
| |
17|years of credited service totaling eighty (80) in the sending |
| |
18|system, then the member shall retain such calculation in the |
| |
19|receiving system. |
| |
20| 4. The Board of Trustees shall promulgate such rules as are |
| |
21|necessary to implement the provisions of this subsection. |
| |
22| Q. A former member of the Teachers' Retirement System of |
| |
23|Oklahoma who withdrew his or her contributions from the System prior |
| |
24|to January 1, 1983, and who had at least ten (10) years of service |
| |
Req. No. 6270 Page 89
___________________________________________________________________________
1|in the System and purchased that service in the Oklahoma Public |
| |
2|Employees Retirement System, may elect to revoke that purchase from |
| |
3|the Oklahoma Public Employees Retirement System and to repay the |
| |
4|withdrawn contributions to the System in order to be eligible, once |
| |
5|such member reaches the normal retirement age, to receive a |
| |
6|retirement benefit that is based upon years of service and |
| |
7|compensation at the time such member terminated employment. In |
| |
8|addition, such former member may elect to transfer service credit |
| |
9|accrued in the Oklahoma Public Employees Retirement System to the |
| |
10|Teachers' Retirement System of Oklahoma pursuant to subsection K of |
| |
11|this section. The election, pursuant to this subsection, shall be |
| |
12|made prior to September 1, 2000. The election and the repayment |
| |
13|shall be made according to rules promulgated by the Board. |
| |
14| SECTION 9. AMENDATORY 70 O.S. 2021, Section 17-116.10, |
| |
15|is amended to read as follows: |
| |
16| Section 17-116.10 A. Subject to the requirements of Section |
| |
17|6-101.2 of this title and any other applicable requirements of law, |
| |
18|a member may enter into postretirement employment with a public |
| |
19|school of Oklahoma and still receive monthly retirement benefits |
| |
20|subject to the following limitations: |
| |
21| 1. A retired member is not eligible to be employed by the |
| |
22|public schools of Oklahoma, in any capacity, for sixty (60) calendar |
| |
23|days between the retiree's last day of preretirement public |
| |
24|education employment and any postretirement public education |
| |
Req. No. 6270 Page 90
___________________________________________________________________________
1|employment. For purposes of this section, the term "last day of |
| |
2|preretirement employment" shall mean the last day the employee is |
| |
3|required to be physically present on the job to complete the terms |
| |
4|of the employment contract or agreement, provided this day cannot be |
| |
5|earlier than the member's effective retirement date. An employee on |
| |
6|paid leave is still considered to be employed for purposes of this |
| |
7|section. Employment under any conditions during this time, |
| |
8|volunteer services for the purpose of obtaining a paid position at a |
| |
9|later date, or payment at a later time for services performed during |
| |
10|this time period shall cause the forfeiture of all retirement |
| |
11|benefits received during the period; |
| |
12| 2. Unless otherwise provided in paragraph 3 of this subsection, |
| |
13|earnings from the public schools may not exceed one-half (1/2) of |
| |
14|the member's final average salary used in computing retirement |
| |
15|benefits, or the Earnings Limitation for employees allowed by the |
| |
16|Social Security Administration, whichever is less. For thirty-six |
| |
17|(36) months following a member's effective retirement date, the |
| |
18|retired member shall be subject to earnings limitations on allowable |
| |
19|earnings. Earnings limits are determined annually based on a |
| |
20|calendar year. For retired members under the age of sixty-two (62) |
| |
21|years, the limit on allowed earnings from the public schools of |
| |
22|Oklahoma for employment for the performance of duties ordinarily |
| |
23|performed by classified or nonclassified personnel shall be the |
| |
24|lesser of Fifteen Thousand Dollars ($15,000.00) or limited to |
| |
Req. No. 6270 Page 91
___________________________________________________________________________
1|one-half (1/2) of the member's final average salary used in |
| |
2|computing retirement benefits unless or the earnings limitation |
| |
3|limit allowed by the Social Security Administration would be greater |
| |
4|than Fifteen Thousand Dollars ($15,000.00) for those under Social |
| |
5|Security's full retirement age, whichever is less. For retired |
| |
6|members sixty-two (62) years of age or older the limit on, allowed |
| |
7|earnings from the public schools of Oklahoma for the performance of |
| |
8|duties ordinarily performed by classified or nonclassified personnel |
| |
9|shall be the lesser of limited to Thirty Thousand Dollars |
| |
10|($30,000.00) or one-half (1/2) of the member's final average salary |
| |
11|used in computing retirement benefits, whichever is less. For |
| |
12|purposes of this paragraph, the following shall apply: |
| |
13| a. earnings shall mean "regular annual compensation" as |
| |
14| defined in paragraph (25) (21) of Section 17-101 of |
| |
15| this title, and shall include any payment by a public |
| |
16| school for services rendered by a retired member who |
| |
17| is employed for any purpose whatsoever. Supplemental |
| |
18| retirement payments paid by a former public school |
| |
19| employer pursuant to subsection (9) of Section 17-105 |
| |
20| of this title or other state law shall not be |
| |
21| considered as earnings, |
| |
22| b. the Earnings Limitation for employees allowed by the |
| |
23| Social Security Administration to workers between the |
| |
24| age of sixty-two (62) years and sixty-five (65) years |
| |
Req. No. 6270 Page 92
___________________________________________________________________________
1| shall apply to retired members below the age of |
| |
2| sixty-two (62) years, |
| |
3| c. the limit on allowed earnings from the public schools |
| |
4| shall be automatically adjusted effective the first |
| |
5| day of January of each year to reflect the current |
| |
6| Earnings Limitation for employees as determined from |
| |
7| time to time by the Social Security Administration, |
| |
8| d. the earnings limit for the calendar year in which a |
| |
9| member retires shall be one-twelfth (1/12) of the |
| |
10| annual limit multiplied by the number of months the |
| |
11| member is eligible to work and receive payments from |
| |
12| the public schools of Oklahoma, |
| |
13| e. |
| |
14| c. earnings in excess of the maximum limit on allowed |
| |
15| earnings from public schools of Oklahoma shall result |
| |
16| in a loss of future retirement benefits for the year |
| |
17| the postretirement employment was performed of One |
| |
18| Dollar ($1.00) for each One Dollar ($1.00) earned over |
| |
19| the maximum allowed earnings amount, |
| |
20| f. for those members age seventy (70) years and over, the |
| |
21| earnings in excess of the maximum limit allowed |
| |
22| earnings from public schools of Oklahoma shall be |
| |
23| one-half (1/2) the member's final average salary used |
| |
24| in computing retirement benefits. However, any |
| |
Req. No. 6270 Page 93
___________________________________________________________________________
1| retired member receiving benefits from the Retirement |
| |
2| System who reached age seventy (70) years prior to |
| |
3| July 1, 1991, shall not be restricted by the earnings |
| |
4| limits pursuant to this subparagraph until January 1, |
| |
5| 1994. To qualify for the provisions of this |
| |
6| subparagraph, the member must be employed less than |
| |
7| one-half (1/2) time compared to other full-time |
| |
8| employees in similar positions; |
| |
9| 3. Notwithstanding paragraph 2 of this subsection, a retired |
| |
10|classified or nonclassified member who has been retired for |
| |
11|thirty-six (36) or more months and who is employed by a public |
| |
12|school to perform duties ordinarily performed by classified or |
| |
13|nonclassified personnel shall be able to receive annualized earnings |
| |
14|from the public school with no reduction in retirement benefits |
| |
15|regardless of the amount of annualized earnings. For a period of |
| |
16|three (3) years beginning July 1, 2017, members who have retired as |
| |
17|of July 1, 2017, as active classroom teachers, who have been retired |
| |
18|and receiving a benefit for at least one (1) year, and who have not |
| |
19|been employed by any public school during that one-year period, |
| |
20|shall be eligible to be reemployed as an active classroom teacher in |
| |
21|common or career tech school districts, with no limitations on |
| |
22|earnings. For a period of three (3) years beginning July 1, 2021, |
| |
23|members who have retired as of July 1, 2020, who have been retired |
| |
24|and receiving a benefit for at least one (1) year, and who have not |
| |
Req. No. 6270 Page 94
___________________________________________________________________________
1|been employed by any public school during that one-year period, |
| |
2|shall be eligible to be reemployed as an active classroom teacher in |
| |
3|common or career tech school districts, with no limitations on |
| |
4|earnings. The one-year period starts with the retiree's last day of |
| |
5|preretirement public education employment. Members returning under |
| |
6|this section shall not be subject to any earning limitations |
| |
7|following the end of the three-year periods described in this |
| |
8|paragraph. Members returning under this section shall only be |
| |
9|employed pursuant to a temporary contract; and |
| |
10| 4. A member shall be considered to be employed by a school |
| |
11|district to perform the duties ordinarily performed by classified or |
| |
12|nonclassified personnel if the member is hired by the school |
| |
13|district in the member's individual capacity to perform the duties |
| |
14|or if the member performs the duties through employment with a |
| |
15|proprietorship, partnership, corporation, limited liability company |
| |
16|or partnership, or any other business structure that has agreed or |
| |
17|contracted to provide the services to the school district. |
| |
18| B. A public school district that employs a retired member shall |
| |
19|be required to make contributions to the System for the retired |
| |
20|member in an amount as required in Section 17-108.1 and in paragraph |
| |
21|3 of subsection B of Section 17-116.2 of this title. |
| |
22| C. For purposes of this section, postretirement employment of |
| |
23|less than one thousand (1,000) hours per year with the Governor, the |
| |
24|State Senate, the House of Representatives or the Legislative |
| |
Req. No. 6270 Page 95
___________________________________________________________________________
1|Service Bureau shall not be considered as postretirement employment |
| |
2|with a public school of Oklahoma. |
| |
3| D. The Board of Trustees of the Teachers' Retirement System of |
| |
4|Oklahoma shall promulgate such rules as are necessary to implement |
| |
5|the provisions of this section. |
| |
6| E. A member who has entered into postretirement employment with |
| |
7|a participating employer of the Teachers' Retirement System of |
| |
8|Oklahoma must fully comply with all the provisions of the rules |
| |
9|promulgated by the Board of Trustees pursuant to this section in |
| |
10|order to continue receiving his or her monthly retirement benefit. |
| |
11| SECTION 10. REPEALER 70 O.S. 2021, Section 17-104, is |
| |
12|hereby repealed. |
| |
13| SECTION 11. REPEALER 70 O.S. 2021, Section 17-114.2, is |
| |
14|hereby repealed. |
| |
15| SECTION 12. This act shall become effective November 1, 2023. |
| |
16| |
| |
17|59-1-6270 CMA01/11/23THOMAS E. |
|CUMMINS CONSULTING ACTUARY, INC. |
18|2512 E. 71st Street , Suite D 'b7 Tulsa, Oklahoma 74136 |
| (918) 492-9658 'b7 (918) 492- 9659 |
19| |
| |
20| |
| |
21| |
| |
22| |
|January 17, 2023 |
23| |
| |
24| |
|Representative Mark Lepak |
Page 96
___________________________________________________________________________
1|Room 543 |
| |
2| |
|Re: RBH No. 6270 |
3| |
| |
4|RBH No. 6270 is an Oklahoma Teachers Retirement System cleanup bill. |
| |
5| |
| |
6| |
| |
7| RBH No. 6270 is a nonfiscal bill as defined by OPLAAA. |
| |
8| |
|I am a member of the American Academy of Actuaries and meet the |
9|Qualification Standards of the American Academy of Actuaries to |
|render the actuarial opinion herein. |
10| |
| |
11|Thomas E. Cummins |
| |
12|Thomas E. Cummins, MAAA |
| |
13| |
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14| |
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15| |
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16| |
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17| |
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18| |
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19| |
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20| |
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21| |
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Page 97
