1| STATE OF OKLAHOMA |
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2| 1st Session of the 59th Legislature (2023) |
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3|HOUSE BILL 2755 By: Miller |
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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, |
| Section 17-116.2, which relates to the Teachers' |
8| Retirement System; providing that certain members may |
| receive credit for certain teaching service; and |
9| providing an effective date. |
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11| |
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13| |
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14|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: |
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15| SECTION 1. AMENDATORY 70 O.S. 2021, Section 17-116.2, is |
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16|amended to read as follows: |
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17| Section 17-116.2 A. 1. Beginning July 1, 1987, and prior to |
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18|July 1, 1995, a member who retires on or after the member's normal |
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19|retirement age or whose retirement is because of disability shall |
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20|receive an annual allowance for life, payable monthly, in an amount |
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21|equal to two percent (2%) of the member's highest three-year average |
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22|salary upon which member contributions were made, multiplied by the |
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23|number of the member's years of creditable service. |
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24| |
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Req. No. 5900 Page 1
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1| A classified member who retired prior to July 1, 1986, shall |
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2|have the member's retirement allowance calculated on a minimum |
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3|average salary of Eleven Thousand Five Hundred Dollars ($11,500.00) |
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4|or on the member's current minimum average salary plus Two Thousand |
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5|Dollars ($2,000.00), whichever is greater. Beginning July 1, 1994, |
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6|a classified member who retired prior to July 1, 1993, shall have |
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7|the member's retirement allowance calculated on the member's current |
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8|minimum average salary plus Five Hundred Fifty Dollars ($550.00). |
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9|An unclassified member who retired prior to July 1, 1986, shall have |
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10|the member's retirement allowance calculated on a minimum average |
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11|salary of Nine Thousand Five Hundred Dollars ($9,500.00) or on the |
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12|member's current minimum average salary plus One Thousand Dollars |
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13|($1,000.00), whichever is greater. Beginning July 1, 1994, an |
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14|unclassified member who retired prior to July 1, 1993, shall have |
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15|the member's retirement allowance calculated on the member's current |
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16|minimum average salary plus Two Hundred Seventy-five Dollars |
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17|($275.00). Those individuals receiving benefits pursuant to |
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18|subsection (3) of Section 17-105 of this title whose benefits |
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19|commenced prior to July 1, 1993, shall receive an increase in |
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20|benefits of two and one-half percent (2 1/2%). No retirement |
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21|benefit payments shall be made retroactively. |
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22| For those members retiring before normal retirement age, except |
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23|for those members retiring because of a disability, the retirement |
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24| |
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1|allowance shall be subject to adjustment in accordance with the |
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2|actuarial equivalent factors adopted by the Board of Trustees. |
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3| 2. Beginning July 1, 1995, a member, who has no service |
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4|performed on or after July 1, 1995, for an entity or institution |
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5|within The Oklahoma State System of Higher Education, who retires on |
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6|or after the member's normal retirement age or whose retirement is |
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7|because of disability shall receive an annual allowance for life, |
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8|payable monthly as follows: |
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9| a. if the member becomes a member after June 30, 1995, |
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10| and was not eligible to become a member prior to July |
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11| 1, 1995, in an amount equal to two percent (2%) of the |
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12| member's average salary upon which member |
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13| contributions were made, multiplied by the number of |
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14| the member's years of creditable service, or |
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15| b. if the member became a member or is eligible to become |
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16| a member prior to July 1, 1995, and elected to have a |
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17| maximum compensation level in excess of Twenty-five |
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18| Thousand Dollars ($25,000.00) pursuant to paragraph 1 |
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19| of subsection C of this section or pursuant to |
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20| subsection E of this section, or if the member's |
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21| salary has never exceeded Twenty-five Thousand Dollars |
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22| ($25,000.00) prior to July 1, 1995, in an amount equal |
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23| to: |
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24| |
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1| (1) two percent (2%) of the member's average salary |
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2| upon which member contributions were made not to |
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3| exceed Forty Thousand Dollars ($40,000.00), |
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4| multiplied by the number of the member's years of |
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5| credited service authorized and performed prior |
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6| to July 1, 1995, plus any years of prior service |
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7| authorized under this title, plus |
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8| (2) two percent (2%) of the member's average salary |
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9| upon which member contributions were made, |
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10| multiplied by the number of the member's years of |
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11| credited service authorized and performed after |
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12| June 30, 1995, or |
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13| c. if the member became a member or is eligible to become |
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14| a member prior to July 1, 1995, and was eligible to |
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15| elect to have a maximum compensation level in excess |
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16| of Twenty-five Thousand Dollars ($25,000.00) and did |
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17| not elect or elected not to have a maximum |
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18| compensation level of Forty Thousand Dollars |
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19| ($40,000.00) pursuant to paragraph 1 of subsection C |
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20| of this section or pursuant to subsection E of this |
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21| section, in an amount equal to: |
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22| (1) two percent (2%) of the member's average salary |
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23| upon which member contributions were made not to |
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24| exceed Twenty-five Thousand Dollars ($25,000.00), |
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1| multiplied by the number of the member's years of |
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2| credited service authorized and performed prior |
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3| to July 1, 1995, plus any years of prior service |
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4| authorized under this title, plus |
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5| (2) two percent (2%) of the member's average salary |
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6| upon which member contributions were made, |
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7| multiplied by the number of the member's years of |
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8| credited service authorized and performed after |
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9| June 30, 1995. |
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10| B. Except as otherwise provided for in this section, the amount |
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11|contributed by each member to the retirement system shall be: |
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12| 1. Beginning July 1, 1992, through June 30, 1996, six percent |
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13|(6%) of the regular annual compensation of such member not in excess |
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14|of Twenty-five Thousand Dollars ($25,000.00) and beginning July 1, |
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15|1995, through June 30, 1996, six percent (6%) of the maximum |
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16|compensation level; |
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17| 2. Beginning July 1, 1996, through June 30, 1997, six and |
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18|one-half percent (6 1/2%) of the regular annual compensation of |
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19|members, who are not employed by an entity or institution within The |
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20|Oklahoma State System of Higher Education not in excess of |
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21|Twenty-five Thousand Dollars ($25,000.00) and beginning July 1, |
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22|1996, through June 30, 1997, six and one-half percent (6 1/2%) of |
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23|the regular annual compensation of members, who are employed by an |
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24|entity or institution within The Oklahoma State System of Higher |
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1|Education, not in excess of Twenty-five Thousand Dollars |
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2|($25,000.00); |
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3| 3. Beginning July 1, 1997, seven percent (7%) of the regular |
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4|annual compensation of the member not in excess of any applicable |
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5|maximum compensation level of the member; and |
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6| 4. All public schools in this state shall treat the employee |
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7|contributions as being picked up under the provisions of Section 414 |
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8|(h)(2) of the Internal Revenue Code of 1986 in determining tax |
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9|treatment. |
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10|Subject to Internal Revenue Service approval, paragraph 4 of this |
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11|subsection shall not apply to a comprehensive university group |
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12|established on or before July 1, 1998, whose employee contributions |
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13|were consistently treated as not picked up as of July 1, 1998, and |
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14|at all times thereafter. |
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15| C. 1. Prior to July 1, 1995, an active member of the System |
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16|may elect to have a maximum compensation level of Forty Thousand |
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17|Dollars ($40,000.00). Such an election shall be made in writing and |
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18|filed with the System. Members whose salaries are in excess of |
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19|Twenty-five Thousand Dollars ($25,000.00) on July 20, 1987, shall |
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20|file the election with the System prior to January 1, 1988. Members |
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21|whose salaries exceed Twenty-five Thousand Dollars ($25,000.00) |
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22|after July 20, 1987, shall file the election when the salary exceeds |
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23|Twenty-five Thousand Dollars ($25,000.00). If a member makes such |
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24|an election, the member shall contribute the following amounts: |
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1| a. beginning July 1, 1992, through June 30, 1993, eleven |
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2| percent (11%) of the regular annual compensation of |
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3| such member that is in excess of Twenty-five Thousand |
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4| Dollars ($25,000.00) and is not in excess of Forty |
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5| Thousand Dollars ($40,000.00), |
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6| b. beginning July 1, 1993, through June 30, 1994, nine |
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7| percent (9%) of the regular annual compensation of |
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8| such member that is in excess of Twenty-five Thousand |
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9| Dollars ($25,000.00) and is not in excess of Forty |
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10| Thousand Dollars ($40,000.00), and |
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11| c. beginning July 1, 1994, through June 30, 1995, eight |
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12| percent (8%) of the regular annual compensation of |
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13| such member that is in excess of Twenty-five Thousand |
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14| Dollars ($25,000.00) and is not in excess of Forty |
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15| Thousand Dollars ($40,000.00). Except as provided in |
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16| subsection E of this section, any such election shall |
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17| be irrevocable. |
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18| 2. After June 30, 1995, in addition to the amount contributed |
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19|by each member to the retirement system pursuant to subsection B of |
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20|this section, the total amount contributed by each member to the |
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21|retirement system shall include, beginning July 1, 1995, through |
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22|June 30, 1997, seven percent (7%) of the regular annual compensation |
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23|of each member, who is not employed by an entity or institution |
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24|within The Oklahoma State System of Higher Education, that is in |
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1|excess of Twenty-five Thousand Dollars ($25,000.00) and beginning |
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2|July 1, 1996, through June 30, 1997, seven percent (7%) of the |
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3|regular annual compensation of each member who is employed by an |
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4|entity or institution within The Oklahoma State System of Higher |
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5|Education in excess of Twenty-five Thousand Dollars ($25,000.00), |
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6|but not in excess of any applicable maximum compensation level of |
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7|the member. |
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8| D. 1. Any member who was a contributing member of the |
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9|Retirement System between July 1, 1987, and June 30, 1995, who at |
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10|the time the member was eligible to make an election to increase the |
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11|maximum compensation level of the member, failed to make an election |
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12|or chose not to increase the maximum compensation level of the |
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13|member to Forty Thousand Dollars ($40,000.00), may elect to make |
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14|back contributions to the Retirement System. The member shall |
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15|complete a new election form and file with the Board of Trustees, |
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16|the form and a payment equaling the difference between the amount |
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17|contributed at the twenty-five-thousand-dollar level and the |
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18|appropriate contribution on compensation in excess of Twenty-five |
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19|Thousand Dollars ($25,000.00) up to a maximum of Forty Thousand |
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20|Dollars ($40,000.00) shall be made prior to the official retirement |
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21|date of the member. The required payment shall include any |
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22|contribution required by the employing school district, and shall |
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23|include interest compounded annually at ten percent (10%) per annum |
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24|of both employer and employee contributions. |
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1| 2. Any changes made pursuant to this subsection shall be |
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2|irrevocable. |
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3| E. 1. An individual who withdrew from the Teachers' Retirement |
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4|System and whose salary was in excess of Seven Thousand Eight |
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5|Hundred Dollars ($7,800.00) and had elected to contribute only on |
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6|Seven Thousand Eight Hundred Dollars ($7,800.00) before his or her |
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7|withdrawal shall contribute on the earning ceiling as provided for |
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8|in this section on his or her reentry into membership in the |
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9|Teachers' Retirement System. |
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10| 2. An individual who elected to contribute on a maximum of |
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11|Seven Thousand Eight Hundred Dollars ($7,800.00) per annum shall, |
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12|beginning July 1, 1979, contribute on his or her earning ceiling as |
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13|provided for in this section. |
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14| 3. Any member who elected to contribute on Seven Thousand Eight |
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15|Hundred Dollars ($7,800.00) prior to January 1, 1978, and whose |
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16|salary was more than Seven Thousand Eight Hundred Dollars |
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17|($7,800.00) during the school years 1974-75 through 1978-79 may |
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18|elect to make back contributions to the retirement system by paying |
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19|the five percent (5%) contributions on the difference between Seven |
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20|Thousand Eight Hundred Dollars ($7,800.00) and the actual salary of |
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21|the member, not to exceed Ten Thousand Dollars ($10,000.00) for each |
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22|applicable school year, plus interest compounded annually at ten |
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23|percent (10%) per annum. Such payment shall be made prior to the |
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24|official retirement date of the member. |
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1| F. Each employer shall cause to be deducted from the salary of |
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2|each member on each and every payroll of such employer for each and |
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3|every payroll period, the proper percentage of his or her earnable |
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4|compensation as provided for in subsection B or subsection C of this |
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5|section. |
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6| 1. Deductions shall begin with the first payroll period of the |
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7|school year. In determining the amount earnable by a member in a |
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8|payroll period, the Board of Trustees shall consider the rate of |
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9|annual compensation payable to such member on the first day of the |
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10|payroll period as continuing throughout such payroll period, and it |
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11|may omit deductions from compensation for any period less than a |
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12|full period, and to facilitate the making of deductions, it may |
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13|modify the deduction required of any member by such an amount as |
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14|shall not exceed one-tenth of one percent (1/10 of 1%) of the annual |
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15|compensation upon the basis of which such deduction is to be made. |
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16|Prior to January 1, 1991, any active contributing member who joined |
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17|the System subsequent to July 1, 1943, may pay the normal cost, |
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18|which shall mean the single sum which would have been paid under |
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19|existing statutes at the time the service was performed, plus |
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20|interest, for years of teaching service in Oklahoma from the date of |
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21|establishment of the System in 1943 to date of membership, in a lump |
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22|sum, or in installments equal to establishing one (1) year of |
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23|creditable service. Effective January 1, 1991, any active |
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24|contributing member who joined the System subsequent to July 1, |
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1|1943, may pay the amount determined by the Board of Trustees |
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2|pursuant to Section 17-116.8 of this title for years of teaching |
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3|service in Oklahoma from the date of establishment of the System in |
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4|1943 to date of membership, in a lump sum, or in installments equal |
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5|to establishing one (1) year of creditable service. For purposes of |
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6|this option, teaching service in Oklahoma shall include the teaching |
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7|of vocational agricultural courses within Oklahoma for the federal |
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8|government. Years for which contributions are paid shall count as |
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9|membership service under this plan. A member may receive credit for |
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10|not more than five (5) years of teaching service rendered while in |
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11|the Peace Corps, AmeriCorps Volunteers in Service to America, or in |
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12|the public schools of a territory of the United States or the public |
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13|schools, American Military Dependent Schools or state colleges or |
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14|state universities outside this state by paying his or her |
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15|contributions, plus interest, and membership fees to the retirement |
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16|system, subject to the regulations of the Board of Trustees, |
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17|providing he or she is not receiving and is not eligible to receive |
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18|retirement credit or benefits from said service in any other public |
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19|retirement system of this state, or any other state or territory of |
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20|the United States subject to the following provisions: |
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21| a. the member is required to have two (2) years of |
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22| employed service teaching earned in Oklahoma for each |
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23| year of Peace Corps, AmeriCorps Volunteers in Service |
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24| |
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1| to America, territorial, out-of-state, noncovered |
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2| in-state or military membership credit granted. |
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3| b. prior to January 1, 1991, the out-of-state or |
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4| noncovered in-state payment shall be the normal cost, |
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5| which means the single sum which would have been paid |
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6| under existing law at the time the service was |
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7| performed, plus interest, on the basis of what his or |
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8| her annual salary would have been in Oklahoma or out |
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9| of state, whichever is greater, had he or she been |
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10| employed as a teacher. Effective January 1, 1991, the |
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11| The Peace Corps, AmeriCorps Volunteers in Service to |
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12| America, territorial, out-of-state or noncovered |
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13| in-state payment shall be the amount determined by the |
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14| Board of Trustees pursuant to Section 17-116.8 of this |
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15| title. |
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16| 2. In addition to the deductions hereinabove provided for, any |
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17|member who becomes a member of the Armed Forces of the United States |
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18|of America during any period of national emergency, including World |
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19|War II, the Korean conflict, the Vietnam conflict or others as may |
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20|be determined by the Board of Trustees, or whose entrance into or |
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21|training for the teaching profession was interrupted by his or her |
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22|entrance into the Armed Forces, and who was or shall have become a |
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23|member of the Teachers' Retirement System shall be granted the |
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24|privilege of making up his or her five percent (5%) contributions as |
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1|provided for in this section until January 1, 1991, for not to |
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2|exceed five (5) years of service in the Armed Forces by electing to |
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3|pay said contributions on the basis of the rate of pay in his or her |
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4|contract as a teacher at the time his or her service in the Armed |
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5|Forces commenced or in the case of a teacher who was not teaching |
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6|prior to entering the Armed Forces, on the basis of the salary of |
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7|the first year of teaching after being honorably discharged from the |
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8|Armed Forces. Effective January 1, 1991, the member will receive |
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9|such service upon payment of the amount determined by the Board of |
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10|Trustees pursuant to Section 17-116.8 of this title. Such |
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11|contributions shall be credited in the regular manner, and the |
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12|period for which said contributions were paid shall be counted as |
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13|creditable years of service and allocated to the period during which |
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14|the military service was rendered, except that the period for which |
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15|contributions were paid must have been continuous and shall be |
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16|credited in the aggregate, regardless of fiscal year limitations. |
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17|Notwithstanding any provision herein to the contrary, contributions, |
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18|benefits and service credit with respect to qualified military |
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19|service as defined by Section 414(u) of the Internal Revenue Code of |
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20|1986 shall be provided in accordance with Section 414(u) of the |
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21|Internal Revenue Code. |
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22| 3. Retirement benefits for all service credits purchased |
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23|pursuant to this subsection shall be determined in accordance with |
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24|the provisions of paragraph 2 of this subsection. |
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1| G. Effective July 1, 2004, the total creditable service of a |
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2|member who retires or terminates employment and elects a vested |
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3|benefit shall include not to exceed one hundred twenty (120) days of |
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4|unused sick leave accumulated subsequent to August 1, 1959. Twenty |
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5|(20) days of unused sick leave shall equal one (1) month for |
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6|purposes of creditable service credit. If the member becomes a |
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7|member or was eligible to become a member prior to July 1, 1995, the |
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8|year of credit received in this section shall be treated as service |
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9|earned prior to July 1, 1995. This subsection shall apply to |
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10|members retiring or vesting on or after the effective date of this |
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11|act and shall not be retroactive. |
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12| H. Any member who: |
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13| 1. Shall be absent from the teaching service because of |
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14|election to the State Legislature or appointment to the executive |
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15|branch in an education-related capacity shall be allowed thirty (30) |
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16|days from the date as of which the person is officially elected or |
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17|appointed to file an election with the Teachers' Retirement System |
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18|to retain his or her membership in the Teachers' Retirement System |
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19|upon payment of the contribution required of other members and |
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20|employers of said members as provided for in this section and his or |
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21|her service credits shall continue to be accumulated during such |
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22|absence, provided he or she is not receiving retirement credits or |
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23|benefits from said service beginning after July 1, 1992, in other |
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24|public retirement systems; or |
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1| 2. Became an employee of the Oklahoma Commission for Teacher |
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2|Preparation on or subsequent to June 1, 2001, but prior to July 1, |
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3|2002, who was previously employed by a participating employer within |
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4|the Teachers' Retirement System of Oklahoma, may elect to cancel any |
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5|accumulated service credit accrued within the Oklahoma Public |
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6|Employees Retirement System on or after June 1, 2001, but prior to |
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7|July 1, 2002, by filing an election with the Oklahoma Public |
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8|Employees Retirement System for the cancellation of such service |
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9|credit. The election shall be irrevocable and shall require the |
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10|Oklahoma Public Employees Retirement System to transfer all |
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11|accumulated employer and employee contributions made on behalf of or |
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12|by the person making such election to the Teachers' Retirement |
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13|System for such period of time. The Teachers' Retirement System |
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14|shall compute the employee contributions that would have been made |
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15|to the System by such employee if the contributions had been |
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16|computed pursuant to this section. In order to receive the full |
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17|amount of creditable service for the period of time on or after June |
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18|1, 2001, but not later than June 30, 2002, the employee shall be |
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19|required to pay any difference between the transferred employee |
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20|contributions and the amount computed by the Teachers' Retirement |
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21|System. The employee may make payment of any required amount in the |
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22|manner provided by and subject to the requirements of Section |
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23|17-116.8 of this title. After payment of all required employee |
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24|contributions, the Teachers' Retirement System shall credit the |
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1|period of time represented by the transferred employee contributions |
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2|as creditable service within the meaning of Section 17-101 of this |
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3|title. After the transfer of the employee contributions, the |
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4|Oklahoma Public Employees Retirement System shall cancel any service |
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5|credit previously accumulated for the period of time represented by |
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6|such transferred employee contributions. Any person who makes the |
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7|election provided for by this paragraph, and who continues |
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8|employment with the Oklahoma Commission for Teacher Preparation on |
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9|or after July 1, 2002, shall continue to accrue service credit in |
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10|the Teachers' Retirement System of Oklahoma. The employer shall |
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11|make employer contributions according to the requirements of Section |
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12|17-108.1 of this title and shall provide for the deduction of |
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13|employee contributions as required by this section. |
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14| I. Any member who shall be absent from the teaching service |
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15|because of election or appointment as a local, state or national |
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16|education association officer, prior to January 1, 2011, shall be |
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17|allowed to retain his or her membership in the Teachers' Retirement |
| |
18|System upon payment of the contribution required of other members |
| |
19|and employers of said members as provided for in this section and |
| |
20|his or her service credits shall continue to be accumulated during |
| |
21|such absence. Provided, however, any one such absence shall not |
| |
22|exceed twelve (12) continuous years. No member who has less than |
| |
23|ten (10) years of contributory service on July 1, 1994, may make |
| |
24|this election after June 30, 1994. Members contributing to the |
| |
Req. No. 5900 Page 16
___________________________________________________________________________
1|System on July 1, 1994, may continue to contribute under this |
| |
2|subsection until they have completed eight (8) years allowed by this |
| |
3|subsection. The member may file for retirement when otherwise |
| |
4|eligible for retirement as provided by Section 17-105 of this title. |
| |
5| J. A member may receive credit for those years of service |
| |
6|accumulated by the member while employed by an entity which is a |
| |
7|participating employer in the Oklahoma Firefighters Pension and |
| |
8|Retirement System, the Oklahoma Police Pension and Retirement |
| |
9|System, the Uniform Retirement System for Justices and Judges, the |
| |
10|Oklahoma Law Enforcement Retirement System, or the Oklahoma Public |
| |
11|Employees Retirement System, if the member is not receiving or |
| |
12|eligible to receive retirement credit or benefits from said service |
| |
13|in any other public retirement system. A member also may receive |
| |
14|credit for those years of service with the Department of Wildlife |
| |
15|Conservation or with an employer that is a participating employer |
| |
16|within one of the state retirement systems specifically referred to |
| |
17|in this section when at the time of such service by the member the |
| |
18|employer was not such a participating employer, if the member is not |
| |
19|receiving or eligible to receive retirement credit or benefits from |
| |
20|said service in any other public retirement system. To receive the |
| |
21|service credit provided in this subsection, the member shall pay the |
| |
22|amount determined by the Board of Trustees pursuant to Section |
| |
23|17-116.8 of this title. For purposes of this subsection, creditable |
| |
24|service transferred from the Oklahoma Public Employees Retirement |
| |
Req. No. 5900 Page 17
___________________________________________________________________________
1|System shall include service authorized under paragraph (f) of |
| |
2|subsection (2) of Section 913 of Title 74 of the Oklahoma Statutes |
| |
3|as amended from time to time. Members who retire prior to July 1, |
| |
4|1993, shall have their monthly benefit adjusted to include all |
| |
5|services accrued under paragraph (f) of subsection (2) of Section |
| |
6|913 of Title 74 of the Oklahoma Statutes. Provided however, any |
| |
7|adjustment of existing retirement benefits caused by reason of |
| |
8|inclusion of such service authorized under paragraph (f) of |
| |
9|subsection (2) of Section 913 of Title 74 of the Oklahoma Statutes |
| |
10|shall not affect any retirement benefit paid prior to July 1, 1993. |
| |
11| K. 1. An active member of the Teachers' Retirement System of |
| |
12|Oklahoma may receive credit for those years of service accumulated |
| |
13|by the member while a member of the Oklahoma Public Employees |
| |
14|Retirement System if: |
| |
15| a. the member is an active member of the Teachers' |
| |
16| Retirement System of Oklahoma, and |
| |
17| b. the member provides notice to the Oklahoma Public |
| |
18| Employees Retirement System and the Teachers' |
| |
19| Retirement System of Oklahoma of the member's election |
| |
20| to transfer said service credit. The notice shall |
| |
21| include a list of the years to be transferred, and |
| |
22| c. the member is not receiving or eligible to receive |
| |
23| retirement credit or benefits from said service in any |
| |
24| |
| |
Req. No. 5900 Page 18
___________________________________________________________________________
1| other public retirement system, notwithstanding the |
| |
2| years of service sought to be transferred under this |
| |
3| subsection. |
| |
4| Members electing to take advantage of the transfer authorized by |
| |
5|this subsection who are receiving or eligible to receive retirement |
| |
6|credit or benefits from said service in any other public retirement |
| |
7|system shall have all service credit with the Oklahoma Public |
| |
8|Employees Retirement System canceled which is not transferred to the |
| |
9|Teachers' Retirement System of Oklahoma or used as a cash offset in |
| |
10|such a transfer pursuant to subparagraph d of paragraph 2 of this |
| |
11|subsection. Service credit transferred to the Teachers' Retirement |
| |
12|System of Oklahoma under this subsection shall also be canceled with |
| |
13|the Oklahoma Public Employees Retirement System. |
| |
14| 2. For purposes of this subsection, the "sending system" shall |
| |
15|mean the Oklahoma Public Employees Retirement System. The |
| |
16|"receiving system" shall mean the Teachers' Retirement System of |
| |
17|Oklahoma. |
| |
18| a. Within thirty (30) days notification of an intent to |
| |
19| transfer is received by the sending system, the |
| |
20| sending system shall, according to its own rules and |
| |
21| regulations: |
| |
22| (1) for members who have accrued at least eight (8) |
| |
23| years of credited service with the sending |
| |
24| system, determine the present value of the |
| |
Req. No. 5900 Page 19
___________________________________________________________________________
1| member's earned benefits attributable to the |
| |
2| years of service sought to be transferred, |
| |
3| discounted according to the member's age at the |
| |
4| time of transfer and computed as of the earliest |
| |
5| age at which the member would be able to retire. |
| |
6| Said computation shall assume an unreduced |
| |
7| benefit and be computed using interest and |
| |
8| mortality assumptions consistent with the |
| |
9| actuarial assumptions adopted by the Board of |
| |
10| Trustees for purposes of preparing the annual |
| |
11| actuarial evaluation, but shall not make any |
| |
12| projections regarding future salary. For |
| |
13| employees who have accrued at least eight (8) |
| |
14| years of credited service, the sending system |
| |
15| shall use the product of this calculation for |
| |
16| purposes of determining the transfer fee to be |
| |
17| paid by the employee under subparagraph c of this |
| |
18| paragraph so long as it is greater than the |
| |
19| product of the calculation in division (2) of |
| |
20| this subparagraph, and |
| |
21| (2) determine the sum of the employee and employer |
| |
22| contributions applicable to the years of service |
| |
23| sought to be transferred plus interest consistent |
| |
24| with the actuarial assumptions adopted by the |
| |
Req. No. 5900 Page 20
___________________________________________________________________________
1| Board of Trustees for purposes of preparing the |
| |
2| annual actuarial evaluation. For all nonvested |
| |
3| members, and for members who have accrued at |
| |
4| least eight (8) years of credited service, if the |
| |
5| product of this calculation is greater than the |
| |
6| product of the calculation in division (1) of |
| |
7| this subparagraph, the sending system shall use |
| |
8| the product of this calculation for purposes of |
| |
9| determining the amount to be transferred by the |
| |
10| sending system under subparagraph c of this |
| |
11| paragraph and any transfer fee to be paid by the |
| |
12| member under subparagraph d of this paragraph. |
| |
13| b. Within thirty (30) days notification of an intent to |
| |
14| transfer is received by the receiving system, the |
| |
15| receiving system shall determine, according to the |
| |
16| system's own rules and regulations, the present value |
| |
17| of the member's incremental projected benefits |
| |
18| discounted according to the member's age at the time |
| |
19| of the transfer. Incremental projected benefits shall |
| |
20| be the difference between the projected benefit said |
| |
21| member would receive without transferring the service |
| |
22| credit and the projected benefit after transfer of |
| |
23| service credit computed as of the earliest age at |
| |
24| which the member would be able to retire. Said |
| |
Req. No. 5900 Page 21
___________________________________________________________________________
1| computation shall assume an unreduced benefit and be |
| |
2| computed using interest, salary projections and |
| |
3| mortality assumptions consistent with the actuarial |
| |
4| assumptions adopted by the Board of Trustees for |
| |
5| purposes of preparing the annual actuarial evaluation. |
| |
6| c. The sending system shall, within sixty (60) days from |
| |
7| the date notification of an intent to transfer is |
| |
8| received by the sending system, transfer to the |
| |
9| receiving system the amount determined in subparagraph |
| |
10| a of this paragraph. Except if the cost as calculated |
| |
11| under subparagraph a of this paragraph is greater than |
| |
12| the actuarial value of the incremental benefit in the |
| |
13| receiving system, as established in subparagraph b of |
| |
14| this paragraph, the sending system shall send the |
| |
15| receiving system an amount equal to the actuarial |
| |
16| value of the incremental projected benefit in the |
| |
17| receiving system. |
| |
18| d. In order to receive the credit provided for in |
| |
19| paragraph 1 of this subsection, if the cost of the |
| |
20| actuarial value of the incremental benefit to the |
| |
21| receiving system is greater than the cost as |
| |
22| calculated under subparagraph a of this paragraph for |
| |
23| the same years of service to the sending system as |
| |
24| |
| |
Req. No. 5900 Page 22
___________________________________________________________________________
1| established in subparagraphs a and b of this |
| |
2| paragraph, the employee shall elect to: |
| |
3| (1) pay any difference to receive full credit for the |
| |
4| years sought to be transferred, or |
| |
5| (2) receive prorated service credit for only the |
| |
6| amount received from the Oklahoma Public |
| |
7| Employees Retirement System pursuant to this |
| |
8| subsection. |
| |
9| Such an election shall be made in writing, filed with |
| |
10| the System prior to receiving the credit provided for |
| |
11| in paragraph 1 of this subsection, and shall be |
| |
12| irrevocable. |
| |
13| 3. Within sixty (60) days of successfully completing all of the |
| |
14|requirements for transfer under this subsection, the sending system |
| |
15|shall pay the receiving system any amount due under this subsection. |
| |
16| Within sixty (60) days of successfully completing all of the |
| |
17|requirements for transfer under this subsection, the member shall |
| |
18|pay the receiving system any amount due under this subsection. In |
| |
19|the event that the member is unable to pay the transfer fee provided |
| |
20|for in this subsection by the due date, the Board of Trustees of the |
| |
21|receiving system shall permit the member to amortize the transfer |
| |
22|fee over a period not to exceed sixty (60) months. Said payments |
| |
23|shall be made by payroll deductions unless the Board of Trustees |
| |
24|permits an alternate payment source. The amortization shall include |
| |
Req. No. 5900 Page 23
___________________________________________________________________________
1|interest in an amount not to exceed the actuarially assumed interest |
| |
2|rate adopted by the Board of Trustees for investment earnings each |
| |
3|year. Any member who ceases to make payment, terminates, retires or |
| |
4|dies before completing the payments provided for in this section |
| |
5|shall receive prorated service credit for only those payments made, |
| |
6|unless the unpaid balance is paid by said member, his or her estate |
| |
7|or successor in interest within six (6) months after said member's |
| |
8|death, termination of employment or retirement, provided no |
| |
9|retirement benefits shall be payable until the unpaid balance is |
| |
10|paid, unless said member or beneficiary affirmatively waives the |
| |
11|additional six-month period in which to pay the unpaid balance. |
| |
12| 4. Years of service transferred pursuant to this subsection |
| |
13|shall be used both in determining the member's retirement benefit |
| |
14|and in determining the years of service for retirement and/or |
| |
15|vesting purposes. Years of service rendered as a member of the |
| |
16|Oklahoma Public Employees Retirement System prior to July 1, 1992, |
| |
17|if any, shall be deemed to be years of service rendered as a member |
| |
18|of the Teachers' Retirement System of Oklahoma prior to July 1, |
| |
19|1992, and shall qualify such person as a member of the Teachers' |
| |
20|Retirement System of Oklahoma before July 1, 1992. |
| |
21| 5. Notwithstanding the requirements of subsection (5) of |
| |
22|Section 917 of Title 74 of the Oklahoma Statutes, members electing |
| |
23|to take advantage of the transfer authorized by this subsection who |
| |
24|have withdrawn their contributions from the sending system shall |
| |
Req. No. 5900 Page 24
___________________________________________________________________________
1|remit to the sending system the amount of the accumulated |
| |
2|contributions the member has withdrawn plus simple interest of ten |
| |
3|percent (10%) per annum prior to making said election or the |
| |
4|election shall be deemed invalid and the transfer shall be canceled. |
| |
5| If such an election is deemed invalid and the transfer is canceled, |
| |
6|the accumulated contribution remitted to the sending system by the |
| |
7|member who originally withdrew their contributions shall be returned |
| |
8|to the member. The member's rights and obligations regarding any |
| |
9|service credit reestablished in the sending system due to a failure |
| |
10|to satisfy the requirements of this subsection shall be determined |
| |
11|by the sending system in accordance with Section 901 et seq. of |
| |
12|Title 74 of the Oklahoma Statutes. |
| |
13| 6. If any member fails for any reason to satisfy the |
| |
14|requirements of this subsection, the election to transfer service |
| |
15|credit shall be void and of no effect, and any service credited as a |
| |
16|result of this transfer shall be canceled. If such service is |
| |
17|canceled, the years of canceled service credit which were |
| |
18|unsuccessfully transferred to the receiving system from the sending |
| |
19|system shall be reestablished in the sending system. The member's |
| |
20|rights and obligations regarding any service credit reestablished in |
| |
21|the sending system due to a failure to satisfy the requirements of |
| |
22|this subsection shall be determined by the sending system in |
| |
23|accordance with Section 901 et seq. of Title 74 of the Oklahoma |
| |
24|Statutes. |
| |
Req. No. 5900 Page 25
___________________________________________________________________________
1| 7. The Board of Trustees shall promulgate such rules as are |
| |
2|necessary to implement the provisions of this subsection. |
| |
3| L. Any member whose regular annual compensation was not |
| |
4|determined as provided for by law may pay the member contribution |
| |
5|required pursuant to subsection B of this section on such amount not |
| |
6|included in the member's regular annual compensation and receive |
| |
7|credit for such amount in the calculation of the member's benefit. |
| |
8|The employees must pay the employer contributions required pursuant |
| |
9|to Section 17-108.1 of this title. Interest at the rate of ten |
| |
10|percent (10%) per annum shall be charged to both employee and |
| |
11|employer contributions. Provided that the employing district may |
| |
12|pay all or any portion of the contributions and interest the member |
| |
13|is required to pay. Any payment by the employing district for a |
| |
14|prior year obligation shall be considered a current obligation of |
| |
15|the employer. |
| |
16| M. Any active member who elected during the 1978-79 school year |
| |
17|to pay the difference between five percent (5%) on actual salary not |
| |
18|exceeding Ten Thousand Dollars ($10,000.00) and six percent (6%) on |
| |
19|actual salary not exceeding Fifteen Thousand Dollars ($15,000.00) |
| |
20|shall receive credit for one (1) year of credited service upon |
| |
21|receipt and approval of a proper request by the Board of Trustees. |
| |
22| N. Effective July 1, 1988, any member who is employed by the |
| |
23|Governor, the State Senate, the House of Representatives or the |
| |
24|Legislative Service Bureau shall be allowed to elect to retain |
| |
Req. No. 5900 Page 26
___________________________________________________________________________
1|membership in the Retirement System upon payment of the accrued and |
| |
2|current member contributions and employer contributions as provided |
| |
3|in subsection B of this section and Section 17-108.1 of this title. |
| |
4|Such contributions may be paid on behalf of the member by the |
| |
5|employing entity. Upon payment of such contributions, service |
| |
6|credits shall continue to be accumulated during such employment. |
| |
7|Accrued contributions shall be paid to the Retirement System by |
| |
8|August 1, 1989. Current contributions shall be paid to the |
| |
9|Retirement System by the tenth of the following month beginning with |
| |
10|the month of July 1989. |
| |
11| O. Notwithstanding any requirements of this title to restrict |
| |
12|the payment of service purchases, the Board of Trustees shall |
| |
13|promulgate such rules as necessary to allow active members of the |
| |
14|System to make installment payments for the redeposit of withdrawn |
| |
15|accounts or other payments due under the provisions of this title. |
| |
16|The rules shall permit the member to amortize the balance due over a |
| |
17|period not to exceed sixty (60) months, and shall include interest |
| |
18|consistent with the actuarial assumptions adopted by the Board of |
| |
19|Trustees for purposes of preparing the annual actuarial evaluation. |
| |
20|Further, the rules shall provide that all payments must be completed |
| |
21|prior to the effective retirement date of the member. |
| |
22| P. 1. A member of the Oklahoma Public Employees Retirement |
| |
23|System who becomes a member of the Teachers' Retirement System of |
| |
24|Oklahoma because the member has become employed by an entity or |
| |
Req. No. 5900 Page 27
___________________________________________________________________________
1|institution within The Oklahoma State System of Higher Education, |
| |
2|State Board of Education, State Board of Career and Technology |
| |
3|Education, Oklahoma Department of Career and Technology Education, |
| |
4|Oklahoma School of Science and Mathematics, Oklahoma Center for the |
| |
5|Advancement of Science and Technology, State Department of |
| |
6|Rehabilitation Services, Oklahoma State Regents for Higher |
| |
7|Education, Department of Corrections, State Department of Education, |
| |
8|Oklahoma Board of Private Vocational Schools, Board of Regents of |
| |
9|Oklahoma Colleges, Oklahoma Student Loan Authority, or the Teachers' |
| |
10|Retirement System of Oklahoma, may elect to receive credit in the |
| |
11|Teachers' Retirement System of Oklahoma for those years of service |
| |
12|accumulated by the member in the Oklahoma Public Employees |
| |
13|Retirement System pursuant to this subsection. A member shall be |
| |
14|eligible to elect to receive credit for such years of service if: |
| |
15| a. the member is an active member of the Teachers' |
| |
16| Retirement System of Oklahoma, |
| |
17| b. the member provides notice to the Teachers' Retirement |
| |
18| System of Oklahoma and the Oklahoma Public Employees |
| |
19| Retirement System of the member's election to transfer |
| |
20| such retirement credit. The notice shall include a |
| |
21| list of the years to be transferred, and |
| |
22| c. the member is not receiving or eligible to receive |
| |
23| retirement credit or benefits from such service in any |
| |
24| |
| |
Req. No. 5900 Page 28
___________________________________________________________________________
1| other public retirement system, notwithstanding the |
| |
2| years of service sought to be transferred under this |
| |
3| subsection. |
| |
4|Members electing to take advantage of the transfer authorized by |
| |
5|this subsection shall have all service credit with the Oklahoma |
| |
6|Public Employees Retirement System canceled which is transferred to |
| |
7|the Teachers' Retirement System of Oklahoma. |
| |
8| 2. For purposes of this subsection, the "sending system" shall |
| |
9|mean the Oklahoma Public Employees Retirement System. The |
| |
10|"receiving system" shall mean the Teachers' Retirement System of |
| |
11|Oklahoma. Within thirty (30) days after notification of an intent |
| |
12|to transfer is received by the sending system, the sending system |
| |
13|shall, according to its own rules, send to the receiving system all |
| |
14|employer and employee contributions made on behalf of the member |
| |
15|which were made to the sending system plus an additional amount of |
| |
16|earnings based on the actuarial assumed rate of the sending system. |
| |
17|Upon receipt of these contributions by the receiving system, the |
| |
18|receiving system shall give credit to the transferring member in an |
| |
19|amount equal to the years of service accrued in the sending system. |
| |
20| 3. If the transferring member's normal retirement date |
| |
21|calculation is based upon the sum of the member's age and number of |
| |
22|years of credited service totaling eighty (80) in the sending |
| |
23|system, then the member shall retain such calculation in the |
| |
24|receiving system. |
| |
Req. No. 5900 Page 29
___________________________________________________________________________
1| 4. The Board of Trustees shall promulgate such rules as are |
| |
2|necessary to implement the provisions of this subsection. |
| |
3| Q. A former member of the Teachers' Retirement System of |
| |
4|Oklahoma who withdrew his or her contributions from the System prior |
| |
5|to January 1, 1983, and who had at least ten (10) years of service |
| |
6|in the System and purchased that service in the Oklahoma Public |
| |
7|Employees Retirement System, may elect to revoke that purchase from |
| |
8|the Oklahoma Public Employees Retirement System and to repay the |
| |
9|withdrawn contributions to the System in order to be eligible, once |
| |
10|such member reaches the normal retirement age, to receive a |
| |
11|retirement benefit that is based upon years of service and |
| |
12|compensation at the time such member terminated employment. In |
| |
13|addition, such former member may elect to transfer service credit |
| |
14|accrued in the Oklahoma Public Employees Retirement System to the |
| |
15|Teachers' Retirement System of Oklahoma pursuant to subsection K of |
| |
16|this section. The election, pursuant to this subsection, shall be |
| |
17|made prior to September 1, 2000. The election and the repayment |
| |
18|shall be made according to rules promulgated by the Board. |
| |
19| SECTION 2. This act shall become effective November 1, 2023. |
| |
20| |
| |
21|59-1-5900 CMA01/11/23THOMAS E. |
|CUMMINS CONSULTING ACTUARY, INC. |
22|2512 E. 71st Street , Suite D 'b7 Tulsa, Oklahoma 74136 |
| (918) 492-9658 'b7 (918) 492- 9659 |
23| |
| |
24| |
| |
Page 30
___________________________________________________________________________
1| |
| |
2| |
|January 11, 2023 |
3| |
| |
4| |
|Representative Nicole Miller |
5|Room 452 |
| |
6| |
| |
7|Re: RHB No. 5900 |
| |
8| |
|RBH No. 5900 adds service with Americorp Volunteers in Service to |
9|America that is eligible to be purchased as service in OTRS. |
| |
10|RBH No. 5900 is a fiscal bill as defined by OPLAAA. If service is |
|purchased, the accrued actuarial liability will increase. |
11| |
|I am a member of the American Academy of Actuaries and meet the |
12|Qualification Standards of the American Academy of Actuaries to |
|render the actuarial opinion herein. |
13| |
| |
14|Thomas E. Cummins |
| |
15|Thomas E. Cummins, MAAA |
| |
16| |
| |
17| |
| |
18| |
| |
19| |
| |
20| |
| |
21| |
| |
22| |
| |
23| |
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24| |
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Page 31
