RBS No. 2448
1 STATE OF OKLAHOMA
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2 2nd Session of the 59th Legislature (2024)
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3 SENATE BILL 1520 By: Pemberton
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6 AS INTRODUCED
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7 An Act relating to the Teachers’ Retirement System of
7 Oklahoma; amending 70 O.S. 2021, Section 17-116.10,
8 which relates to postretirement employment; modifying
8 earnings limitation for certain retirees returning to
9 work in a public school; providing an effective date;
9 and declaring an emergency.
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13 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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14 SECTION 1. AMENDATORY 70 O.S. 2021, Section 17-116.10,
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15 is amended to read as follows:
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16 Section 17-116.10. A. Subject to the requirements of Section
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17 6-101.2 of this title and any other applicable requirements of law,
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18 a member of the Teachers’ Retirement System of Oklahoma may enter
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19 into postretirement employment with a public school of Oklahoma and
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20 still receive monthly retirement benefits subject to the following
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21 limitations:
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22 1. A retired member is not eligible to be employed by the
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23 public schools of Oklahoma, in any capacity, for sixty (60) calendar
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24 days between the retiree’s last day of preretirement public
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 RBS No. 2448
1 education employment and any postretirement public education
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2 employment. For purposes of this section, the term “last day of
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3 preretirement employment” shall mean the last day the employee is
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4 required to be physically present on the job to complete the terms
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5 of the employment contract or agreement. An employee on paid leave
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6 is still considered to be employed for purposes of this section.
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7 Employment under any conditions during this time, volunteer services
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8 for the purpose of obtaining a paid position at a later date, or
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9 payment at a later time for services performed during this time
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10 period shall cause the forfeiture of all retirement benefits
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11 received during the period;
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12 2. Unless otherwise provided in paragraph 3 of this subsection,
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13 earnings from the public schools may not exceed one-half (1/2) of
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14 the member’s final average salary used in computing retirement
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15 benefits, or the Earnings Limitation earnings limitation for
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16 employees allowed by the Social Security Administration, whichever
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17 is less. For retired members under the age of sixty-two (62) years,
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18 the limit on allowed earnings from the public schools of Oklahoma
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19 for employment for the performance of duties ordinarily performed by
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20 classified or nonclassified personnel shall be the lesser of Fifteen
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21 Thousand Dollars ($15,000.00) or one-half (1/2) of the member’s
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22 final average salary used in computing retirement benefits unless
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23 the earnings limitation allowed by the Social Security
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24 Administration would be greater than Fifteen Thousand Dollars
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 RBS No. 2448
1 ($15,000.00). For retired members sixty-two (62) years of age or
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2 older the limit on allowed earnings from the public schools of
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3 Oklahoma for the performance of duties ordinarily performed by
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4 classified or nonclassified personnel shall be the lesser of Thirty
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5 Thousand Dollars ($30,000.00) or one-half (1/2) of the member’s
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6 final average salary used in computing retirement benefits. On and
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7 after the effective date of this act, for retired members under the
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8 age of sixty-two (62) years, the limit on allowed earnings from the
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9 public schools of Oklahoma for employment for the performance of
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10 duties ordinarily performed by classified or nonclassified personnel
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11 shall be the lesser of Thirty Thousand Dollars ($30,000.00) or one-
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12 half (1/2) of the member’s final average salary used in computing
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13 retirement benefits unless the earnings limitation allowed by the
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14 Social Security Administration would be greater than Thirty Thousand
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15 Dollars ($30,000.00). On and after the effective date of this act,
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16 for retired members sixty-two (62) years of age or older, the limit
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17 on allowed earnings from the public schools of Oklahoma for the
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18 performance of duties ordinarily performed by classified or
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19 nonclassified personnel shall be the lesser of Fifty-five Thousand
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20 Dollars ($55,000.00) or one-half (1/2) of the member’s final average
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21 salary used in computing retirement benefits. For purposes of this
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22 paragraph, the following shall apply:
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23 a. earnings shall mean “regular annual compensation” as
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24 defined in paragraph (25) of Section 17-101 of this
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 RBS No. 2448
1 title, and shall include any payment by a public
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2 school for services rendered by a retired member who
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3 is employed for any purpose whatsoever. Supplemental
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4 retirement payments paid by a former public school
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5 employer pursuant to subsection 9 of Section 17-105 of
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6 this title or other state law shall not be considered
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7 as earnings,
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8 b. the Earnings Limitation earnings limitation for
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9 employees allowed by the Social Security
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10 Administration to workers between the age of sixty-two
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11 (62) years and sixty-five (65) years shall apply to
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12 retired members below the age of sixty-two (62) years,
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13 c. the limit on allowed earnings from the public schools
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14 shall be automatically adjusted effective the first
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15 day of January of each year to reflect the current
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16 Earnings Limitation earnings limitation for employees
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17 as determined from time to time by the Social Security
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18 Administration,
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19 d. the earnings limit for the calendar year in which a
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20 member retires shall be one-twelfth (1/12) of the
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21 annual limit multiplied by the number of months the
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22 member is eligible to work and receive payments from
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23 the public schools of Oklahoma,
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 RBS No. 2448
1 e. earnings in excess of the maximum limit on allowed
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2 earnings from public schools of Oklahoma shall result
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3 in a loss of future retirement benefits for the year
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4 the postretirement employment was performed of One
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5 Dollar ($1.00) for each One Dollar ($1.00) earned over
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6 the maximum allowed earnings amount, and
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7 f. for those members age seventy (70) years and over, the
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8 earnings in excess of the maximum limit allowed
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9 earnings from public schools of Oklahoma shall be one-
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10 half (1/2) the member’s final average salary used in
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11 computing retirement benefits. However, any retired
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12 member receiving benefits from the Retirement System
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13 who reached age seventy (70) years prior to July 1,
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14 1991, shall not be restricted by the earnings limits
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15 pursuant to this subparagraph until January 1, 1994.
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16 To qualify for the provisions of this subparagraph,
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17 the member must be employed less than one-half (1/2)
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18 the time compared to other full-time employees in
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19 similar positions;
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20 3. Notwithstanding paragraph 2 of this subsection, a retired
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21 classified or nonclassified member who has been retired for thirty-
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22 six (36) or more months and who is employed by a public school to
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23 perform duties ordinarily performed by classified or nonclassified
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24 personnel shall be able to receive annualized earnings from the
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1 public school with no reduction in retirement benefits regardless of
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2 the amount of annualized earnings. For a period of three (3) years
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3 beginning July 1, 2017, members who have retired as of July 1, 2017,
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4 as active classroom teachers, who have been retired and receiving a
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5 benefit for at least one (1) year, and who have not been employed by
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6 any public school during that one-year period, shall be eligible to
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7 be reemployed as an active classroom teacher in common or career
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8 tech school districts, with no limitations on earnings. For a
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9 period of three (3) years beginning July 1, 2021, members who have
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10 retired as of July 1, 2020, who have been retired and receiving a
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11 benefit for at least one (1) year, and who have not been employed by
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12 any public school during that one-year period, shall be eligible to
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13 be reemployed as an active classroom teacher in common or career
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14 tech school districts, with no limitations on earnings. The one-
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15 year period starts with the retiree’s last day of preretirement
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16 public education employment. Members returning under this section
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17 shall not be subject to any earning limitations earnings limitation
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18 following the end of the three-year periods described in this
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19 paragraph. Members returning under this section shall only be
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20 employed pursuant to a temporary contract; and
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21 4. A member shall be considered to be employed by a school
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22 district to perform the duties ordinarily performed by classified or
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23 nonclassified personnel if the member is hired by the school
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24 district in the member’s individual capacity to perform the duties
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1 or if the member performs the duties through employment with a
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2 proprietorship, partnership, corporation, limited liability company
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3 or partnership, or any other business structure that has agreed or
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4 contracted to provide the services to the school district.
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5 B. A public school district that employs a retired member shall
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6 be required to make contributions to the System for the retired
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7 member in an amount as required in Section 17-108.1 and in paragraph
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8 3 of subsection B of Section 17-116.2 of this title.
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9 C. For purposes of this section, postretirement employment of
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10 less than one thousand (1,000) hours per year with the Governor, the
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11 State Senate, the House of Representatives or the Legislative
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12 Service Bureau shall not be considered as postretirement employment
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13 with a public school of Oklahoma.
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14 D. The Board of Trustees of the Teachers’ Retirement System of
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15 Oklahoma shall promulgate such rules as are necessary to implement
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16 the provisions of this section.
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17 E. A member who has entered into postretirement employment with
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18 a participating employer of the Teachers’ Retirement System of
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19 Oklahoma must fully comply with all the provisions of the rules
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20 promulgated by the Board of Trustees pursuant to this section in
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21 order to continue receiving his or her monthly retirement benefit.
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22 SECTION 2. This act shall become effective July 1, 2024.
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23 SECTION 3. It being immediately necessary for the preservation
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24 of the public peace, health or safety, an emergency is hereby
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1 declared to exist, by reason whereof this act shall take effect and
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2 be in full force from and after its passage and approval.
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Statutes affected:
House Committee Substitute for Senate Bill: 62-3103
Floor (House): 62-3103