RBH No. 5119
1 STATE OF OKLAHOMA
2 1st Session of the 59th Legislature (2023)
3 HOUSE BILL 2008 By: Davis
4
5
6 AS INTRODUCED
7 An Act relating to the Teachers' Retirement System of
Oklahoma; amending 70 O.S. 2021, Section 17-101 as
8 amended by Section 2, Chapter 121, O.S.L. 2022 (70
O.S. 2022, Section 17-101), which relates to
9 definitions; modifying term; amending 70 O.S. 2021,
Section 17-105, which relates to retirement
10 eligibility; modifying required period of time for
participation for purposes of retirement benefit;
11 amending 70 O.S. 2021, Section 17-116.2, which
relates to benefit computations; providing certain
12 benefit computations for certain members; amending 70
O.S. 2021, Section 17-116.10, which relates to
13 postretirement earnings limitations; modifying
restrictions with respect to postretirement
14 employment; prescribing maximum amount of
postretirement earnings; prescribing requirements
15 related to postretirement earnings; modifying
provision related to employee contributions;
16 prohibiting accrual of postretirement service credit;
providing for applicability of certain provisions
17 regardless of certain election; providing school
districts not subject to certain pretermination
18 procedural requirements; prescribing maximum duration
of postretirement contacts; providing school
19 districts not required to rehire certain persons
based upon previous employment contract; amending 70
20 O.S. 2021, Section 18-114.14, which relates to the
minimum salary schedule; modifying provisions related
21 to employment of retired teachers; providing for
codification; and providing an effective date.
22
23
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1 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
2 SECTION 1. AMENDATORY 70 O.S. 2021, Section 17-101 as
3 amended by Section 2, Chapter 121, O.S.L. 2022 (70 O.S. 2022,
4 Section 17-101), is amended to read as follows:
5 Section 17-101. Definitions.
6 The following words and phrases as used in this act, unless a
7 different meaning is clearly required by the context, shall have the
8 following meanings:
9 (1) "Retirement system" shall mean the Teachers' Retirement
10 System of Oklahoma, as defined in Section 17-102 of this title.
11 (2) "Public school" shall mean a school district, a state
12 college or university, the State Board of Education, the State Board
13 of Career and Technology Education and any other state educational
14 entity conducted within the state supported wholly or partly by
15 public funds and operating under the authority and supervision of a
16 legally constituted board or agency having authority and
17 responsibility for any function of public education. "Public
18 school" shall also mean a tuition free, nonprofit alternative school
19 of choice that provides education, therapeutic counseling and
20 outreach programs which is aligned with a school district and which
21 receives grant funds from governmental sources.
22 (3) "Classified personnel" shall mean any teacher, principal,
23 superintendent, supervisor, administrator, librarian, certified or
24 registered nurse, college professor, or college president whose
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1 salary is paid wholly or in part from public funds. An employee of
2 any state department, board, board of regents or board of trustees,
3 who is in a supervisory or an administrative position, the function
4 of which is primarily devoted to public education, shall be
5 considered classified personnel under the meaning of this act, at
6 the discretion of the Board of Trustees of the Teachers' Retirement
7 System. The term "teacher" shall also include instructors and
8 counselors employed by the Department of Corrections and holding
9 valid teaching certificates issued by the State Department of
10 Education. Provided, that a person employed by the Department of
11 Corrections as an instructor or counselor shall have been actively
12 engaged in the teaching profession for a period of not less than
13 three (3) years prior to employment to be eligible to participate in
14 the Oklahoma Teachers' Retirement System. The Department of
15 Corrections shall contribute the employer's share to the Oklahoma
16 Teachers' Retirement System.
17 (4) "Nonclassified optional personnel" shall include cooks,
18 janitors, maintenance personnel not in a supervisory capacity, bus
19 drivers, noncertified or nonregistered nurses, noncertified
20 librarians, and clerical employees of the public schools, state
21 colleges, universities or any state department, board, board of
22 regents or board of trustees, the functions of which are primarily
23 devoted to public education and whose salaries are paid wholly or in
24 part from public funds.
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1 (5) "Employer" shall mean the state and any of its designated
2 agents or agencies with responsibility and authority for public
3 education, such as boards of education of elementary and independent
4 school districts, boards of regents, boards of control or any other
5 agency of and within the state by which a person may be employed for
6 service in public education. "Employer" shall also mean the board
7 of directors of a tuition free, nonprofit alternative school of
8 choice that provides education, therapeutic counseling and outreach
9 programs which is aligned with a school district and which receives
10 grant funds from governmental sources.
11 (6) "Member" shall mean any teacher or other employee included
12 in the membership of the system as provided in Section 17-103 of
13 this title.
14 (7) "Board of Trustees" shall mean the board provided for in
15 Section 17-106 of this title to administer the retirement system.
16 (8) "Service" shall mean service as a classified or
17 nonclassified optional employee in the public school system, or any
18 other service devoted primarily to public education in the state.
19 (9) "Prior service" shall mean service rendered prior to July
20 1, 1943.
21 (10) "Membership service" shall mean service as a member of the
22 classified or nonclassified personnel as defined in paragraphs (3)
23 and (4) of this section.
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1 (11) "Creditable service" shall mean membership service plus
2 any prior service authorized under this title.
3 (12) "Annuitant" shall mean any person in receipt of a
4 retirement allowance as provided in this title.
5 (13) "Accumulated contributions" shall mean the sum of all
6 amounts deducted from the compensation of a member and credited to
7 his individual account in the Teacher Savings Fund, together with
8 interest as of June 30, 1968.
9 (14) "Earnable compensation" shall mean the full rate of the
10 compensation that would be payable to a member if he worked the full
11 normal working time.
12 (15) "Average salary":
13 (a) for those members who joined the System prior to July
14 1, 1992, shall mean the average of the salaries for
15 the three (3) years on which the highest contributions
16 to the Teachers' Retirement System was paid not to
17 exceed the maximum contribution level specified in
18 Section 17-116.2 of this title or the maximum
19 compensation level specified in subsection (28) of
20 this section. Provided, no member shall retire with
21 an average salary in excess of Twenty-five Thousand
22 Dollars ($25,000.00) unless the member has made the
23 required election and paid the required contributions
24 on such salary in excess of Twenty-five Thousand
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1 Dollars ($25,000.00), or unless an eligible member
2 fulfills the requirements of Section 17-116.2C of this
3 title in order to have pre-cap removal service
4 included in the retirement benefit computation of the
5 member using the regular annual compensation of the
6 member for any pre-cap removal year of service so
7 included subject to the maximum average salary amount,
8 and
9 (b) for those members who join the System after June 30,
10 1992, shall mean the average of the salaries for five
11 (5) consecutive years on which the highest
12 contribution to the Teachers' Retirement System was
13 paid. Only salary on which required contributions
14 have been made may be used in computing average
15 salary.
16 (16) "Annuity" shall mean payments for life derived from the
17 "accumulated contributions" of a member. All annuities shall be
18 payable in equal monthly installments.
19 (17) "Pension" shall mean payments for life derived from money
20 provided by the employer. All pensions shall be payable in equal
21 monthly installments.
22 (18) "Monthly retirement allowance" is one-twelfth (1/12) of
23 the annual retirement allowance which shall be payable monthly.
24
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1 (19) "Retirement Benefit Fund" shall mean the fund from which
2 all retirement benefits shall be paid based on such mortality tables
3 as shall be adopted by the Board of Trustees.
4 (20) "Actuary" shall mean a person especially skilled through
5 training and experience in financial calculation respecting the
6 expectancy and duration of life.
7 (21) "Actuarial equivalent" shall mean a benefit of equal value
8 when computed upon the basis of such mortality and other tables as
9 shall be adopted by the Board of Trustees.
10 (22) The masculine pronoun, whenever used, shall include the
11 feminine.
12 (23) "Actuarially determined cost" shall mean the single sum
13 which is actuarially equivalent in value to a specified pension
14 amount as determined on the basis of mortality and interest
15 assumptions adopted by the Board of Trustees.
16 (24) "Normal retirement age" means the earliest date upon
17 which:
18 (a) a member reaches the age sixty-two (62) with respect
19 to a member whose first creditable service occurs
20 prior to November 1, 2011, unless the member reaches a
21 normal retirement date pursuant to subparagraph (c) or
22 subparagraph (d) of this paragraph, or
23 (b) a member reaches the age of sixty-five (65) with
24 respect to a member whose first creditable service
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1 occurs on or after November 1, 2011, or with respect
2 to a member whose first creditable service occurs on
3 or after November 1, 2011, reaches a normal retirement
4 date pursuant to subparagraph (d) of this paragraph
5 having attained a minimum age of sixty (60) years or
6 with respect to a member whose first creditable
7 service occurs on or after the effective date of this
8 act obtains at least thirty-five (35) years of
9 creditable service, or
10 (c) the age at which the sum of a member's age and number
11 of years of creditable service total eighty (80), with
12 respect to a member whose first creditable service
13 occurred prior to July 1, 1992, and who does not reach
14 a normal retirement age pursuant to subparagraph (a)
15 of this paragraph, or
16 (d) the age at which the sum of a member's age and number
17 of years of creditable service total ninety (90), with
18 respect to a member whose first creditable service
19 occurred on or after July 1, 1992, but prior to
20 November 1, 2011, if the member does not reach a
21 normal retirement age pursuant to subparagraph (a) of
22 this paragraph.
23 (25) "Regular annual compensation" means salary plus fringe
24 benefits, excluding the flexible benefit allowance pursuant to
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1 Section 26-105 of this title and for purposes pursuant to Section
2 17-101 et seq. of this title. For purposes of this definition,
3 regular annual compensation shall include:
4 (a) salary which accrues on a regular basis in proportion
5 to the service performed, including payments for staff
6 development,
7 (b) amounts that would otherwise qualify as salary under
8 paragraph (a) of this subsection but are not received
9 directly by the member pursuant to a good faith,
10 voluntary written salary reduction agreement in order
11 to finance payments to a deferred compensation or tax-
12 sheltered annuity program or to finance benefit
13 options under a cafeteria plan qualifying under the
14 United States Internal Revenue Code, 26 U.S.C.,
15 Section 101 et seq.,
16 (c) group health and disability insurance, group term life
17 insurance, annuities and pension plans, provided on a
18 periodic basis to all qualified employees of the
19 employer, which qualify as fringe benefits under the
20 United States Internal Revenue Code, and
21 (d) excluded from regular annual compensation are:
22 1. expense reimbursement payments,
23 2. office, vehicle, housing or other maintenance
24 allowances,
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1 3. the flexible benefit allowance provided pursuant
2 to Section 26-105 of this title,
3 4. payment for unused vacation and sick leave,
4 5. any payment made for reason of termination or
5 retirement not specifically provided for in
6 subparagraphs (a) through (c) of this subsection,
7 6. maintenance or other nonmonetary compensation,
8 7. payment received as an independent contractor or
9 consultant, pursuant to a lawful contract which
10 complies with the requirements of subsection B of
11 Section 6-101.2 of this title,
12 8. any benefit payments not made pursuant to a valid
13 employment agreement,
14 9. compensation for clinical related activity
15 performed in the University of Oklahoma Health
16 Sciences Center (OUHSC) Professional Practice
17 Plan or Oklahoma State University Center for
18 Health Sciences (OSU-CHS) Professional Practice
19 Plan,
20 10. any other compensation not described in
21 subparagraphs (a) through (c) of this subsection.
22 (26) "Teacher" means classified personnel and nonclassified
23 optional personnel.
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1 (27) "Active classroom teacher" means a person employed by a
2 school district to teach students specifically identified classes
3 for specifically identified subjects during the course of a
4 semester, and who holds a valid certificate or license issued by and
5 in accordance with the rules and regulations of the State Board of
6 Education.
7 (28) "Maximum compensation level" shall, except as otherwise
8 authorized pursuant to the provisions of Section 17-116.2C of thi