The bill amends Section 17-106.1 of the Teachers Retirement System of Oklahoma to allow the Board of Trustees to approve a cost-of-living adjustment (COLA) for certain retirees under specific conditions. The new provisions stipulate 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 annual actuarial valuation. Additionally, the bill specifies that a COLA cannot be granted if it would cause the funding ratio to fall below the percentage that authorized the adjustment. Subsequent adjustments may be approved as the funded ratio increases.

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. The term "chairman" is replaced with "chair" to reflect this change. Overall, the amendments aim to enhance the financial management of the Teachers Retirement System while ensuring that retirees may receive necessary adjustments to their benefits based on the System's financial health.