RBS No. 1262
1 STATE OF OKLAHOMA
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2 1st Session of the 59th Legislature (2023)
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3 SENATE BILL 964 By: Kidd
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6 AS INTRODUCED
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7 An Act relating to Teachers’ Retirement System of
7 Oklahoma; amending 70 O.S. 2021, Section 17-116.10,
8 which relates to postretirement employment; and
8 authorizing certain retired members to return to
9 employment in public schools for certain time period
9 with no earning limitations; and providing an
10 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 one-
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17 half (1/2) the member’s final average salary used in
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18 computing retirement benefits. However, any retired
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19 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 thirty-
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5 six (36) or more months and who is employed by a public school to
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6 perform duties ordinarily performed by classified or nonclassified
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7 personnel shall be able to receive annualized earnings from the
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8 public school with no reduction in retirement benefits regardless of
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9 the amount of annualized earnings. For a period of three (3) years
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10 beginning July 1, 2017, members who have retired as of July 1, 2017,
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11 as active classroom teachers, who have been retired and receiving a
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12 benefit for at least one (1) year, and who have not been employed by
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13 any public school during that one-year period, shall be eligible to
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14 be reemployed as an active classroom teacher in common or career
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15 tech school districts, with no limitations on earnings. For a
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16 period of three (3) years beginning July 1, 2021, members who have
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17 retired as of July 1, 2020, who have been retired and receiving a
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18 benefit for at least one (1) year, and who have not been employed by
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19 any public school during that one-year period, shall be eligible to
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20 be reemployed as an active classroom teacher in common or career
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21 tech school districts, with no limitations on earnings. The one-
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22 year period starts with the retiree’s last day of preretirement
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23 public education employment. On and after the effective date of
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24 this act, members who have been retired and receiving benefits for
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1 at least one (1) year, notwithstanding the member’s retirement date,
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2 and who have not been employed by any public school during that one-
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3 year period, shall be eligible to be reemployed as an active
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4 classroom teacher in common or career tech school districts, with no
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5 limitations on earnings, for a period of three (3) years. Members
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6 returning under this section shall not be subject to any earning
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7 limitations following the end of the three-year periods described in
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8 this paragraph. Members returning under this section shall only be
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9 employed pursuant to a temporary contract; and
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10 4. A member shall be considered to be employed by a school
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11 district to perform the duties ordinarily performed by classified or
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12 nonclassified personnel if the member is hired by the school
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13 district in the member’s individual capacity to perform the duties
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14 or if the member performs the duties through employment with a
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15 proprietorship, partnership, corporation, limited liability company
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16 or partnership, or any other business structure that has agreed or
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17 contracted to provide the services to the school district.
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18 B. A public school district that employs a retired member shall
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19 be required to make contributions to the System for the retired
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20 member in an amount as required in Section 17-108.1 and in paragraph
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21 3 of subsection B of Section 17-116.2 of this title.
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22 C. For purposes of this section, postretirement employment of
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23 less than one thousand (1,000) hours per year with the Governor, the
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24 State Senate, the House of Representatives or the Legislative
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1 Service Bureau shall not be considered as postretirement employment
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2 with a public school of Oklahoma.
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3 D. The Board of Trustees of the Teachers’ Retirement System of
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4 Oklahoma shall promulgate such rules as are necessary to implement
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5 the provisions of this section.
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6 E. A member who has entered into postretirement employment with
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7 a participating employer of the Teachers’ Retirement System of
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8 Oklahoma must fully comply with all the provisions of the rules
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9 promulgated by the Board of Trustees pursuant to this section in
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10 order to continue receiving his or her monthly retirement benefit.
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11 SECTION 2. This act shall become effective November 1, 2023.
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13 59-1-1262 RD 1/19/2023 11:36:42 AM
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