1| SENATE FLOOR VERSION |
| February 21, 2023 |
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3|SENATE BILL NO. 964 By: Kidd |
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6| An Act relating to Teachers' Retirement System of |
| Oklahoma; amending 70 O.S. 2021, Section 17-116.10, |
7| which relates to postretirement employment; and |
| authorizing certain retired members to return to |
8| employment in public schools for certain time period |
| with no earning limitations; and providing an |
9| effective date. |
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12|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: |
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13| SECTION 1. AMENDATORY 70 O.S. 2021, Section 17-116.10, |
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14|is amended to read as follows: |
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15| Section 17-116.10. A. Subject to the requirements of Section |
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16|6-101.2 of this title and any other applicable requirements of law, |
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17|a member may enter into postretirement employment with a public |
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18|school of Oklahoma and still receive monthly retirement benefits |
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19|subject to the following limitations: |
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20| 1. A retired member is not eligible to be employed by the |
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21|public schools of Oklahoma, in any capacity, for sixty (60) calendar |
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22|days between the retiree's last day of preretirement public |
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23|education employment and any postretirement public education |
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24|employment. For purposes of this section, the term "last day of |
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1|preretirement employment" shall mean the last day the employee is |
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2|required to be physically present on the job to complete the terms |
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3|of the employment contract or agreement. An employee on paid leave |
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4|is still considered to be employed for purposes of this section. |
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5|Employment under any conditions during this time, volunteer services |
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6|for the purpose of obtaining a paid position at a later date, or |
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7|payment at a later time for services performed during this time |
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8|period shall cause the forfeiture of all retirement benefits |
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9|received during the period; |
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10| 2. Unless otherwise provided in paragraph 3 of this subsection, |
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11|earnings from the public schools may not exceed one-half (1/2) of |
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12|the member's final average salary used in computing retirement |
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13|benefits, or the Earnings Limitation earnings limitation for |
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14|employees allowed by the Social Security Administration, whichever |
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15|is less. For retired members under the age of sixty-two (62) years, |
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16|the limit on allowed earnings from the public schools of Oklahoma |
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17|for employment for the performance of duties ordinarily performed by |
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18|classified or nonclassified personnel shall be the lesser of Fifteen |
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19|Thousand Dollars ($15,000.00) or one-half (1/2) of the member's |
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20|final average salary used in computing retirement benefits unless |
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21|the earnings limitation allowed by the Social Security |
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22|Administration would be greater than Fifteen Thousand Dollars |
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23|($15,000.00). For retired members sixty-two (62) years of age or |
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24|older, the limit on allowed earnings from the public schools of |
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1|Oklahoma for the performance of duties ordinarily performed by |
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2|classified or nonclassified personnel shall be the lesser of Thirty |
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3|Thousand Dollars ($30,000.00) or one-half (1/2) of the member's |
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4|final average salary used in computing retirement benefits. For |
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5|purposes of this paragraph, the following shall apply: |
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6| a. earnings shall mean "regular annual compensation" as |
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7| defined in paragraph (25) of Section 17-101 of this |
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8| title, and shall include any payment by a public |
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9| school for services rendered by a retired member who |
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10| is employed for any purpose whatsoever. Supplemental |
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11| retirement payments paid by a former public school |
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12| employer pursuant to subsection 9 of Section 17-105 of |
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13| this title or other state law shall not be considered |
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14| as earnings, |
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15| b. the Earnings Limitation earnings limitation for |
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16| employees allowed by the Social Security |
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17| Administration to workers between the age of sixty-two |
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18| (62) years and sixty-five (65) years shall apply to |
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19| retired members below the age of sixty-two (62) years, |
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20| c. the limit on allowed earnings from the public schools |
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21| shall be automatically adjusted effective the first |
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22| day of January of each year to reflect the current |
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23| Earnings Limitation earnings limitation for employees |
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1| as determined from time to time by the Social Security |
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2| Administration, |
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3| d. the earnings limit for the calendar year in which a |
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4| member retires shall be one-twelfth (1/12) of the |
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5| annual limit multiplied by the number of months the |
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6| member is eligible to work and receive payments from |
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7| the public schools of Oklahoma, |
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8| e. earnings in excess of the maximum limit on allowed |
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9| earnings from public schools of Oklahoma shall result |
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10| in a loss of future retirement benefits for the year |
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11| the postretirement employment was performed of One |
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12| Dollar ($1.00) for each One Dollar ($1.00) earned over |
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13| the maximum allowed earnings amount, and |
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14| f. for those members age seventy (70) years and over, the |
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15| earnings in excess of the maximum limit on allowed |
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16| earnings from public schools of Oklahoma shall be |
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17| one-half (1/2) the member's final average salary used |
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18| in computing retirement benefits. However, any |
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19| retired member receiving benefits from the Teachers' |
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20| Retirement System of Oklahoma who reached age seventy |
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21| (70) years prior to July 1, 1991, shall not be |
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22| restricted by the earnings limits pursuant to this |
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23| subparagraph until January 1, 1994. To qualify for |
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24| the provisions of this subparagraph, the member must |
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1| be employed less than one-half (1/2) time compared to |
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2| other full-time employees in similar positions; |
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3| 3. Notwithstanding paragraph 2 of this subsection, a retired |
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4|classified or nonclassified member who has been retired for |
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5|thirty-six (36) or more months and who is employed by a public |
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6|school to perform duties ordinarily performed by classified or |
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7|nonclassified personnel shall be able to receive annualized earnings |
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8|from the public school with no reduction in retirement benefits |
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9|regardless of the amount of annualized earnings. For a period of |
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10|three (3) years beginning July 1, 2017, members who have retired as |
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11|of July 1, 2017, as active classroom teachers, who have been retired |
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12|and receiving a benefit for at least one (1) year, and who have not |
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13|been employed by any public school during that one-year period, |
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14|shall be eligible to be reemployed as an active classroom teacher in |
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15|common or career tech school districts, with no limitations on |
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16|earnings. For a period of three (3) years beginning July 1, 2021, |
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17|members who have retired as of July 1, 2020, who have been retired |
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18|and receiving a benefit for at least one (1) year, and who have not |
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19|been employed by any public school during that one-year period, |
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20|shall be eligible to be reemployed as an active classroom teacher in |
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21|common or career tech school districts, with no limitations on |
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22|earnings. The one-year period starts with the retiree's last day of |
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23|preretirement public education employment. On and after the |
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24|effective date of this act, members who have been retired and |
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1|receiving benefits for at least one (1) year, notwithstanding the |
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2|member's retirement date, and who have not been employed by any |
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3|public school during that one-year period, shall be eligible to be |
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4|reemployed as an active classroom teacher in common or career tech |
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5|school districts, with no limitations on earnings, for a period of |
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6|three (3) years. Members returning under this section shall not be |
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7|subject to any earning limitations following the end of the |
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8|three-year periods described in this paragraph. Members returning |
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9|under this section shall only be employed pursuant to a temporary |
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10|contract; and |
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11| 4. A member shall be considered to be employed by a school |
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12|district to perform the duties ordinarily performed by classified or |
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13|nonclassified personnel if the member is hired by the school |
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14|district in the member's individual capacity to perform the duties |
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15|or if the member performs the duties through employment with a |
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16|proprietorship, partnership, corporation, limited liability company |
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17|or partnership, or any other business structure that has agreed or |
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18|contracted to provide the services to the school district. |
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19| B. A public school district that employs a retired member shall |
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20|be required to make contributions to the System for the retired |
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21|member in an amount as required in Section 17-108.1 and in paragraph |
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22|3 of subsection B of Section 17-116.2 of this title. |
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23| C. For purposes of this section, postretirement employment of |
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24|less than one thousand (1,000) hours per year with the Governor, the |
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1|State Senate, the House of Representatives or the Legislative |
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2|Service Bureau shall not be considered as postretirement employment |
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3|with a public school of Oklahoma. |
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4| D. The Board of Trustees of the Teachers' Retirement System of |
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5|Oklahoma shall promulgate such rules as are necessary to implement |
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6|the provisions of this section. |
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7| E. A member who has entered into postretirement employment with |
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8|a participating employer of the Teachers' Retirement System of |
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9|Oklahoma must fully comply with all the provisions of the rules |
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10|promulgated by the Board of Trustees pursuant to this section in |
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11|order to continue receiving his or her monthly retirement benefit. |
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12| SECTION 2. This act shall become effective November 1, 2023. |
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13|COMMITTEE REPORT BY: COMMITTEE ON RETIREMENT AND INSURANCE |
|February 21, 2023 - DO PASS |
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