The bill amends Section 17-106.1 of the Teachers Retirement System of Oklahoma, allowing the Board of Trustees to approve a cost-of-living adjustment (COLA) for certain retirees under specific conditions. The new provisions state that the Board may approve a two percent (2%) COLA for individuals who have received benefits for one or more years, contingent upon the System's funded ratio exceeding a certain percentage as determined by the latest actuarial valuation. Additionally, the bill stipulates that a COLA cannot be granted if it would cause the funding ratio to fall below the percentage that authorized the adjustment. Subsequent COLAs may be approved as the funded ratio increases by two and one-half percent (2.5%).

The bill also updates statutory language to make it gender-neutral and removes references to the "State of Oklahoma" in relation to the Board's investment authority. Furthermore, it replaces the term "chairman" with "chair" to reflect a more inclusive terminology. Overall, the amendments aim to enhance the operational flexibility of the Board of Trustees while ensuring the financial stability of the Teachers Retirement System.