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					TEACHERS' RETIREMENT SYSTEM OF OKLAHOMA




          RULES AND LAWS
            Effective 7-1-2005
          RULES AND LAWS
            Effective 7-1-2005




TEACHERS' RETIREMENT SYSTEM OF OKLAHOMA
             Mailing Address
              P.O. Box 53524
       Oklahoma City, OK 73152-3524

              Street Address
          2500 North Lincoln Blvd.
                 5th Floor
         Oklahoma City, OK 73105

                  Phone
         1-877-738-6365 (Toll-Free)
               405-521-2387
            www.trs.state.ok.us
                                       Preface
                      Unless stated otherwise, the words and phrases
                 used in this document shall have the meanings plainly
                 required by the context. Where this is not the case,
                 standard dictionary definitions shall be used. The
                 rules and procedures in this book are to explain the
                 Teachers' Retirement law and to define the rules of
                 the TRS Board of Trustees within the context of the
                 law. If any conflicts arise between material in this
                 book and the law, the law takes precedence.




Editions of the TRS Rules and Laws have been printed for each of the following school years,
with each edition effective until the subsequent printing:

             1992-93 (eff. 7-1-91)      1997-98            2002-03
             1993-94                    1998-99            2003-04 (eff. through 6-30-05)
             1994-95                    1999-2000          2005-06
             1995-96                    2000-01
             1996-97                    2001-02

Four thousand (4,000) copies of this edition printed by the Central Printing Division of the
Oklahoma Department of Central Services at a cost of $9,000 and issued by the Board of
Trustees of the Teachers' Retirement System of Oklahoma, as authorized by TRS Executive
Secretary Tommy C. Beavers. Copies have been deposited with the Publications Clearinghouse
of the Oklahoma Department of Libraries.
                                          CONTENTS
                   Chapter 1. Administrative Operations
715:1-1-1.         Purpose .............................................................................. 3
715:1-1-2.         Board of Trustees ............................................................... 3
715:1-1-3.         Medical Board ................................................................... 4
715:1-1-4.         Administrative office .......................................................... 4
715:1-1-5.         Executive Secretary ........................................................... 5
715:1-1-6.         Bonds (protective) .............................................................. 5
715:1-1-7.         Purchases ........................................................................... 5
715:1-1-8.         Payment of salaries and claims .......................................... 6
715:1-1-9.         Investment of funds ............................................................ 6
715:1-1-10.        Grievances and complaints ................................................ 6
715:1-1-11.        Information requests .......................................................... 9
715:1-1-12.        Public participation in adoption of rules .......................... 10
715:1-1-13.        Change of address, name or district ................................. 11
715:1-1-14.        Definition of IRS Code .................................................... 12
715:1-1-15.        Distribution Rules ............................................................ 12
715:1-1-16.        General IRS Qualification Rules ..................................... 13
715:1-1-17.        Inspection, copy and/or reproduction fees ....................... 14
715:1-1-18.        Retirement benefit reduction to pay a judgment or
                   settlement as an offset ...................................................... 14
                        Chapter 10. General Operations
                      Subchapter 1. Membership Provisions
715:10-1-1. Purpose ............................................................................ 15
715:10-1-2. TRS membership eligibility ............................................. 15
715:10-1-3. Mandatory TRS membership ........................................... 16
715:10-1-4. Optional TRS membership .............................................. 16
715:10-1-5. Ineligible for TRS membership ........................................ 17
715:10-1-6. Date of Membership ........................................................ 18
715:10-1-7. Membership in education associations............................. 19
715:10-1-8. Membership of employees of charter schools .................. 20
                           Subchapter 3. Service Eligibility
715:10-3-1. Requirements for creditable service ................................. 21
715:10-3-2. Requirements for fulltime service .................................... 21
715:10-3-3. Requirements for halftime service ................................... 21
715:10-3-4. Combining fractional years of service ............................. 22
715:10-3-5. Minimum compensation requirements ............................. 22
              Subchapter 5. Establishing Other Service Credits
715:10-5-1.   Oklahoma service credit after July 1, 1943 ..................... 24
715:10-5-2.   Employment as a substitute teacher in Oklahoma
              schools ............................................................................. 24
715:10-5-3. Official sabbatical leave from an Oklahoma school ........ 25
715:10-5-4. Cost to purchase Oklahoma service ................................. 25
715:10-5-5. Oklahoma service performed prior to July 1, 1943
              [REVOKED].................................................................... 27
715:10-5-6. Verification of Oklahoma service before membership ..... 27
715:10-5-7. Credit for service in other Oklahoma public
              retirement systems ............................................................ 28
715:10-5-7.1. Transfer of service credit from the
              Oklahoma Public Employees Retirement System ............ 29
715:10-5-7.2. Transfer of service credit to the
              Oklahoma Public Employees Retirement System ............ 31
715:10-5-7.3. Service credit transfers for TRS members who are
              CLEET-certified employees of the University of
              Oklahoma and Oklahoma State University ...................... 33
715:10-5-8. Revocation of $7,800 waiver ........................................... 34
715:10-5-9. Re-establishing withdrawn service ................................... 34
715:10-5-10. Military service credit ...................................................... 35
715:10-5-11. Military service limited to maximum of five years .......... 36
715:10-5-12. Military service performed prior to
              July 1, 1943 [REVOKED] ............................................... 36
715:10-5-13. Military service performed after July 1, 1943 ................. 36
715:10-5-14. Military service combined with Oklahoma service .......... 36
715:10-5-15. Application for military service ....................................... 37
715:10-5-16. Cost to purchase military service ..................................... 37
715:10-5-17. Adjustment for military service after retirement .............. 37
715:10-5-18. Other restrictions on military service ............................... 38
715:10-5-19. Out-of-state service credit ................................................ 38
715:10-5-20. Out-of-state service performed prior to
              July 1, 1943 [REVOKED] ............................................... 38
715:10-5-21. Out-of-state service performed after July 1, 1943 ........... 38
715:10-5-22. Out-of-state service limited to maximum of
              five years .......................................................................... 39
715:10-5-23. Out-of-state service combined with Oklahoma service .... 39
715:10-5-24. Continuous, consecutive out-of-state service ................... 39
715:10-5-25. Application for out-of-state service ................................. 39
715:10-5-26. Cost to purchase out-of-state service ............................... 40
715:10-5-27. Other restrictions on out-of-state service ......................... 40
715:10-5-28. Sick leave service credit ................................................... 40
715:10-5-29. Verification of accumulated sick leave ............................. 41
715:10-5-30. Ten-year averaging of sick leave...................................... 41
715:10-5-31. Documentation of service................................................. 42
715:10-5-32. Roll-overs from other qualified plans or conduit IRAs ... 42
715:10-5-33. Credit for Family Leave ................................................... 43
715: 10-5-34. Credit for Adjunct Service ............................................... 44
715:10-5-35. Employer pick-up of purchase of service credit .............. 44
           Subchapter 7. Membership Vesting and Termination
715:10-7-1. Vesting of membership in TRS ........................................ 47
715:10-7-2. Limitation of benefits to an inactive, vested member ...... 47
715:10-7-3. Termination because of absence....................................... 48
715:10-7-4. Extension of TRS membership after absence .................. 48
715:10-7-5. Retired members .............................................................. 49
715:10-7-6. Termination of a non-eligible person ............................... 49
                          Subchapter 9. Survivor Benefits
715:10-9-1.        Return of contributions when death occurs
                   before retirement .............................................................. 50
715:10-9-2.        Death benefit when death occurs before retirement ......... 50
715:10-9-3.        Monthly annuity in lieu of death benefit .......................... 51
715:10-9-4.        Death Benefit when death occurs after retirement ........... 51
715:10-9-5.        Payments to beneficiaries of deceased members .............. 51
715:10-9-6.        Probate Waivers ............................................................... 52
715:10-9-7.        Beneficiary designation following a divorce .................... 53
             Subchapter 11. Withdrawal from Membership and
                            Refund of Deposits
715:10-11-1. Withdrawal from membership by an eligible person ....... 54
715:10-11-2. Withdrawal of optional membership while
             still employed ................................................................... 56
715:10-11-3. False affidavits ................................................................. 56
715:10-11-4. Refunds of contributions .................................................. 57
715:10-11-5. Termination of rights to benefits ...................................... 57
715:10-11-6. Reinstatement of an account ............................................ 57
715:10-11-7. Rollovers from OTRS to other eligible retirement plans . 57
          Subchapter 13. Contributions for Membership Service
715:10-13-1. Regular annual compensation requirements .................... 59
715:10-13-2. Contributions required on all compensation .................... 60
715:10-13-3. Employee contribution rates ............................................ 60
715:10-13-3.1. Employer contribution rates........................................... 63
715:10-13-4. Maximum compensation level election for years
             prior to July 1, 1995 ........................................................ 63
715:10-13-4.1. Maximum compensation level election for the
             1995-96 school year ......................................................... 64
715:10-13-5. Compensation corrections ................................................ 65
715:10-13-6. Employee contributions paid by the employer ................. 65
715:10-13-7. Matching funds ................................................................ 65
715:10-13-8. Procedure for making contribution deductions ................ 66
715:10-13-9. Monthly remittance report of contributions ..................... 67
715:10-13-10. Annual report of employment ........................................ 68
715:10-13-11. Percentage limits on compensation increases ................. 69
715:10-13-12. Contracts bought up by employer .................................. 69
715:10-13-13. Contributions while receiving payments from
             Workers’ Compensation ................................................... 69
715:10-13-14. Termination credit for state agency employees who
             are members of the Teachers’ Retirement System
             of Oklahoma .................................................................... 70
                         Subchapter 15. Service Retirement
715:10-15-1. Eligibility for service retirement ...................................... 72
715:10-15-2. Age, service requirements for regular retirement ............. 73
715:10-15-3. Date of retirement; making application ............................ 73
715:10-15-4. Effective date of retirement contract ................................ 74
715:10-15-5. Date of retirement contract is binding; revocation
             of contract ........................................................................ 74
715:10-15-6. Verification of date of birth .............................................. 75
715:10-15-7. Standard retirement formula ............................................ 75
715:10-15-7.1Retirement formula for members employed by
             a comprehensive university .............................................. 76
715:10-15-8. Age, creditable service determination .............................. 77
715:10-15-9. Minimum service retirement benefits ............................... 78
715:10-15-10. Retirement plans ............................................................ 78
715:10-15-10.1. “Pop-up” of Option 2 or Option 3 Retirement Plans ... 80
715:10-15-10.2. Partial lump-sum payments ......................................... 80
715:10-15-10.3. Partial Lump-sum Option Factors ............................... 82
715:10-15-11.Designation of beneficiaries for retirement options ......... 83
715:10-15-12.Spousal consent ............................................................... 84
715:10-15-13.Survivor benefits when death occurs after retirement ...... 84
715:10-15-14.Actuarial tables ................................................................ 84
715:10-15-15.Disability retirement; application; effective date ............. 84
715:10-15-16.Review by Medical Board ............................................... 86
715:10-15-17.Additional medical evidence can be required ................... 87
715:10-15-18.Discontinuance of disability retirement ........................... 87
715:10-15-19.Disability retirement payments ........................................ 88
715:10-15-20.Conversion of disability retirement to retirement
             option 2 ............................................................................ 88
715:10-15-21.Return to employment by a disabled retiree ..................... 88
715:10-15-22.Reduction of disability benefits for excess earnings ........ 89
715:10-15-23.Special $150 per month plan; application;
             effective date .................................................................... 89
715:10-15-24.Due-date of retirement benefit payments ......................... 89
715:10-15-25.Changes and corrections to retirement benefit
             payments .......................................................................... 90
715:10-15-26.Code Section 415 limits as applied to TRS ..................... 90
715:10-15-27.Code Section 401(a)(17) limits as applied to TRS .......... 90
                 Subchapter 17. Post-Retirement Employment
715:10-17-1. Definitions ........................................................................ 91
715:10-17-2. Break between employment and retirement ..................... 92
715:10-17-3. Fulltime employment after retirement (REVOKED) ....... 92
715:10-17-4. Fulltime employment with no effect on
             benefits (REVOKED) ...................................................... 92
715:10-17-5. Permissible employment .................................................. 92
715:10-17-6. Earnings limits ................................................................. 92
715:10-17-7. Employment by a disabled retiree .................................... 93
715:10-17-8. Repayment of benefits ...................................................... 94
715:10-17-9. Annual W-2P tax statements ............................................ 94
715:10-17-10.Effective date of OAC 715:10-17-1 through
             715:10-17-9 ..................................................................... 94
715:10-17-11.Special waiver for retirees past age 70 ............................ 95
715:10-17-12.Earnings report by remitting agencies ............................. 95
715:10-17-13.Election to return to qualifying employment .................... 95
715:10-17-14.Termination and Resumption of Benefit Payments .......... 97
                Subchapter 19. Tax-Sheltered Annuity Program
715:10-19-1.       Authority for program ..................................................... 98
715:10-19-2.       General description .......................................................... 98
715:10-19-3.       Eligible employees ........................................................... 99
715:10-19-4.       Program requisites ........................................................... 99
715:10-19-5.       Contributions ................................................................. 100
715:10-19-6.       Calculation of exclusion allowance [REVOKED] ......... 102
715:10-19-7.       Methods of computing maximum TSA contribution ..... 102
715:10-19-8.       Distributions .................................................................. 102
715:10-19-9. Withdrawals for financial hardship................................ 104
715:10-19-10.Example of tax-shelter earnings (REVOKED) ............. 105
715:10-19-11.Rollovers from OTRS 403(b) program to other
             eligible retirement plans ................................................. 106
715:10-19-12.The Oklahoma Teachers’ Deferred Savings Incentive
             Plan Fund ....................................................................... 107
715:10-19-13.Contributions from the Oklahoma Teachers’
             Deferred Savings Incentive Plan Fund into
             Tax-Sheltered Annuity accounts of active
             contributing TRS members ............................................ 107
                           Subchapter 21. Investment Policy
715:10-21-1.         Investment of funds ........................................................ 108
715:10-21-2.         Statement of investment policy ...................................... 108
715:10-21-3.         Investment guidelines ..................................................... 109
715:10-21-4.         Portfolio assets allocation .............................................. 111
715:10-21-5.         Cash equivalents guidelines ........................................... 111
     Subchapter 23. State and Education Employees Group Health
                    and Dental Insurance Program
715:10-23-1. State and Education Employees Group Health
             and Dental Insurance Program ...................................... 112
715:10-23-2. Monthly health insurance premium supplement
             paid by the Teachers’ Retirement System ...................... 112
715:10-23-3. Participating education employers not enrolled in
             the State and Education Employees Group
             Insurance Plan ................................................................ 113
715:10-23-4. Retired members who return to employment ................. 113
715:10-23-5. Retired members ineligible for health insurance
             supplement ..................................................................... 114
                     Subchapter 25. Qualified Domestic Order
715:10-25-1.         Definition ....................................................................... 115
715:10-25-2.         Filing a qualified domestic order ................................... 115
715:10-25-3.         Contents of qualified domestic order ............................. 115
715:10-25-4.         Payment to alternate payee ............................................ 116
715:10-25-5.         Termination of a qualified domestic order ..................... 116
715:10-25-6.         Teachers’ Retirement not subject to ERISA .................. 117
Teachers’ Retirement System Laws ...................................................... 119
Index ..................................................................................................... 219
TEACHERS’ RETIREMENT SYSTEM
              OF
        OKLAHOMA

           RULES
         (eff.7-1-2005)




                              1
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2
               Chapter 1. Administrative Operations

Section
715:1-1-1.      Purpose
715:1-1-2.      Board of Trustees
715:1-1-3.      Medical Board
715:1-1-4.      Administrative office
715:1-1-5.      Executive Secretary
715:1-1-6.      Bonds (protective)
715:1-1-7.      Purchases
715:1-1-8.      Payment of salaries and claims
715:1-1-9.      Investment of funds
715:1-1-10.     Grievances and complaints
715:1-1-11.     Information requests
715:1-1-12.     Public participation in adoption of rules
715:1-1-13.     Change of address, name or district
715:1-1-14.     Definition of IRS Code
715:1-1-15.     Distribution Rules
715:1-1-16.     General IRS Qualification Rules
715:1-1-1. Purpose
    The rules of this Chapter have been adopted for the purpose of complying
with the provisions of the Administrative Procedures Act, 75 O.S., Section
250 et seq, and for establishing and explaining the internal and external
administrative operations of the Teachers’ Retirement System.
715:1-1-2. Board of Trustees
(a) The general administration and responsibility for the proper operation
of the Teachers’ Retirement System of Oklahoma, and effectively
implementing the retirement statutes, are vested in the Board of Trustees.
The statutory authority for the Board of Trustees is Title 70, Oklahoma
Statutes, Section 17-106 [70 O.S. 17-106]. The board is comprised of 13
trustees, appointed as follows:
    (1) The State Superintendent of Public Instruction, ex-officio.
    (2) The Director of State Finance, ex officio.
    (3) The Director of the Oklahoma Department of Career and Technology
    Education, ex officio, or his or her designee.
    (4) A representative of a school of higher education in Oklahoma,
    appointed by the Governor and approved by the Senate.
    (5) A member of the System of the nonclassified optional personnel
    status, appointed by the Governor and approved by the Senate.

                                                                          3
    (6) An active classroom teacher, appointed by the President Pro Tempore
    of the Senate.
    (7) A retired member of the System, appointed by the President Pro
    Tempore of the Senate.
    (8) An active classroom teacher, appointed by the Speaker of the House
    of Representatives.
    (9) A retired classroom teacher, appointed by the Speaker of the House
    of Representatives.
    (10) Four members appointed by the Governor.
(b) Persons appointed to the Board of Trustees pursuant to (a) above, shall:
    (1) Have demonstrated professional experience in investment or funds
    management, public funds management, public or private pension fund
    management or retirement system management, or
    (2) Have demonstrated experience in the banking profession and
    professional experience in investment or funds management, or
    (3) Be licensed to practice law in Oklahoma and have demonstrated
    professional experience in commercial matters, or
    (4) Be licensed by the Oklahoma State Board of Public Accountancy
    to practice in Oklahoma as a public accountant or as a certified public
    accountant.
(c) The Governor, in making appointments that conform to the above
requirements, shall give due consideration to balancing the appointments
among the listed criteria.
715:1-1-3. Medical Board
     A Medical Board of three physicians, licensed by the State of Oklahoma,
approved by the Board of Trustees, is charged with the responsibility of
certifying members for retirement under the disability retirement provisions.
715:1-1-4. Administrative office
    The Teachers’ Retirement System has office space located in the Oliver
Hodge Education Building, 2500 N. Lincoln Boulevard, Oklahoma City,
Oklahoma 73105. The mailing address for correspondence is TRS, P. O.
Box 53524, Oklahoma City, OK 73152. The main telephone number is
(405) 521-2387. The toll-free telephone number for calls originating outside
the Oklahoma City local calling area is 1-877-738-6365. The Teachers’
Retirement System’s website is www.trs.state.ok.us. Members are
encouraged to visit the Retirement Office, or make written inquiries regarding
any matter pertaining to their retirement accounts.




4
715:1-1-5. Executive Secretary
    The Executive Secretary shall be the administrative officer for the Board
of Trustees and shall be responsible for the general administration of the
Retirement System.
    (1) All employees shall be under the direct supervision of the Executive
    Secretary, and shall be recommended by the Executive Secretary with
    approval by the Board of Trustees.
    (2) The Secretary-Treasurer shall be an employee of TRS.
    (3) All vouchers drawn against TRS shall be signed by two members
    of the administrative staff: the Executive Secretary, the Assistant
    Executive Secretary, the Secretary-Treasurer, or the Comptroller.
    (4) The Executive Secretary shall make reports to the Board of Trustees
    at its regular monthly meetings in regard to administrative matters, funds
    and budgetary matters, and present statements showing the general
    condition of the System’s finances.
715:1-1-6. Bonds (protective)
(a) Under supervision of the Board, the administration of the System is
carried out by the Executive Secretary and the office staff. The State
Treasurer, who is the custodian of the Teachers’ Retirement funds, is under
a $50,000 bond to the Board of Trustees. A $25,000 bond is required of the
Executive Secretary.
(b) All persons employed by TRS, except the Secretary-Treasurer, shall be
bonded by a blanket bond in an amount not in excess of $20,000. The
position of Secretary-Treasurer shall be covered by an individual bond in
the amount of $25,000. The amount of the bonds of the Executive Secretary
and the State Treasurer is set by the Teachers’ Retirement law.
(c) A cash and securities bond provides coverage on securities, $10,000
inside the premises and $30,000 outside the premises, and cash, $500 inside
the premises and $1,000 outside the premises. A depositor’s forgery bond in
the amount of $10,000 protects TRS and its members against forgery on
checks.
715:1-1-7. Purchases
    The Executive Secretary shall have authority to make such purchases
of equipment and supplies as may be needed for the operation of TRS,
subject to approval by the Board of Trustees.




                                                                            5
715:1-1-8. Payment of salaries and claims
(a) The Executive Secretary is authorized to approve and pay all payrolls
for the regular personnel and extra help of TRS, as provided in the budget
approved by the Board of Trustees. The Executive Secretary and the
Secretary-Treasurer must comply with the law in making purchases of
supplies, printing materials and equipment. Claims for all traveling expenses,
utility bills, communications, bond premiums, rentals, payments of death
claims to beneficiaries or estates, tax-sheltered annuity claims, and
maintenance and repair of machines, when properly audited and approved
by the Secretary-Treasurer or the Executive Secretary, may be paid before
approval by the Board of Trustees. In the event of the absence of the
Secretary-Treasurer or the Executive Secretary, the Assistant Executive
Secretary may also sign for approval of claims.
(b) The retired member payroll shall be paid when approved by the
Secretary-Treasurer and the Executive Secretary, or in the event of an
absence, the Assistant Executive Secretary may approve for one. The Board
of Trustees shall then make final approval at the next regular meeting
following the date on which the checks were mailed to retired members.
715:1-1-9. Investment of funds
     The Board of Trustees shall be the trustees of the several funds created
by the Teachers’ Retirement Act and shall have full power to invest and
reinvest such funds subject to the provisions of 70 O.S. 17-106, other
pertinent laws of the State of Oklahoma, and the investment policies that
may be adopted by the Board of Trustees. In making investments, the Board
shall exercise the judgment and care in the circumstances then prevailing
that men of prudence, discretion and intelligence exercise in the management
of their own affairs, not in regard to speculation but in regard to the permanent
disposition of their funds, considering the probable safety of their capital.
This shall not be construed to authorize the Trustees to buy or sell property
and investments from or to themselves personally, or to commingle Trust
Funds with their individual funds. (See OAC 715:10-21-1)
715:1-1-10. Grievances and complaints
    Grievances and complaints are usually settled by correspondence or
informal conference between the member or beneficiary and the staff of the
Teachers’ Retirement System.
    (1) Any interested person with a grievance which cannot be settled in
    this manner may appeal the decision of the staff to the executive secretary
    of the Teachers’ Retirement System. Request for an informal hearing
    before the executive secretary must be in writing and include a clear
    statement of the grievance or complaint. The executive secretary will
6
provide a written response within thirty (30) days, stating the official
position of Teachers’ Retirement in the matter before appeal. The
response will either grant or deny the appellant’s request. If denied, the
executive secretary shall provide to the member the applicable statutes,
rules and administrative procedures used in reaching a decision to deny
the appeal of the member. “Interested person” means any member of
the Teachers’ Retirement System; any beneficiary of a member; any
retiree of the Teachers’ Retirement System; any guardian, administrator,
or executor of a member, retiree, or beneficiary; or any public school.
(2) Any decision of the executive secretary may be appealed to the
Board of Trustees of the Teachers’ Retirement System. The member
must appeal the decision of the executive secretary within sixty (60)
days of receipt of notification of denial by the executive secretary.
(3) All cases of appeals to the Board of Trustees will be assigned to an
administrative hearing judge, who will conduct a hearing and prepare a
proposed order to the Board of Trustees. The executive secretary shall
appoint the administrative hearing judge from a list of individuals
previously employed by the Board of Trustees to act in this role. All
hearings shall be conducted in the offices of the Teachers’ Retirement
System at a time and date agreed to by the parties. It is expected that
any party to the hearing will provide timely notice to the other parties if
a delay or failure to appear is anticipated.
(4) Hearings will be conducted under the provisions of the
Administrative Procedures Act [75 O.S. 250 et. seq.]. Opportunity
shall be afforded all parties to respond and present evidence and
arguments on all issues involved. The administrative hearing judge
will have the authority to conduct the hearing and rule on the admissibility
of all evidence. Any party shall at all times have the right to counsel,
provided that such counsel must be duly licensed to practice law by the
Supreme Court of Oklahoma, and provided further that such counsel
shall have the right to appear and act for and on behalf of the party he
represents. Upon the completion of the hearing, the administrative
hearing judge shall afford the appellant the opportunity to present a
written brief and arguments to be included as part of the record. Legal
counsel for Teachers’ Retirement shall be provided an equal opportunity
to respond to appellant’s written brief and arguments if requested. Once
all evidence, arguments and briefs are received by the administrative
hearing judge the record shall be closed.
(5) At the close of the hearing, the administrative hearing judge shall,
as soon as practical, prepare a proposed order to be delivered to the
Board of Trustees. This proposed order shall include findings of fact,
                                                                          7
    based exclusively on the evidence and on matters officially noted in the
    record of the hearing, conclusions of law and a recommended order to
    the Board of Trustees. A copy of this proposed order shall be provided
    to all parties by the executive secretary.
    (6) The member shall have the right to file a written statement outlining
    any objections, exceptions and/or arguments he desires the Board of
    Trustees to consider in its consideration of the hearing judge’s proposed
    order. This statement must be filed with the executive secretary within
    twenty (20) days of receipt of the hearing judge’s proposed order. No
    additional evidence or materials may be introduced by the member which
    were not presented at the hearing. The executive secretary and/or TRS
    staff may prepare a written response in rebuttal to the member’s
    statement. A copy of any response by TRS will be provided to the
    member at least ten (10) days prior to the time the member’s appeal is
    scheduled for consideration by the Board of Trustees. The member
    may waive the ten (10) day limit if it would delay scheduling the matter
    before the Board.
    (7) The executive secretary may, prior to submitting the hearing officer’s
    report to the Board of Trustees, settle any grievance or complaint in a
    manner agreeable to the appellant. In settling any grievance the executive
    secretary shall not exceed the authority previously granted to him or
    her by the Board of Trustees. The executive secretary shall report to
    the Board of Trustees any settlement which occurs after the hearing
    officer’s report is filed.
    (8) Consideration of the member’s case will be scheduled before the
    Board of Trustees as soon as possible after the proposed order and any
    additional written materials have been filed with the Board in accordance
    with this section. Unless mutually agreed to by all parties, no hearing
    before the Board will be scheduled within ten (10) working days of
    such filings.
    (9) At the meeting at which the Board of Trustees will consider the
    proposed order, the member will be afforded an opportunity to make a
    brief statement to the Board concerning the facts and any arguments he
    wishes to present and will be allowed to respond to questions from
    Trustees. Failure of the member to appear at the Board hearing without
    prior notification will result in the member relinquishing his right to be
    heard by the Board. If such absence was unavoidable, the member may
    petition the Board for a rehearing. The Chairman of the Board of
    Trustees will have final authority to set the amount of time any party
    may have to present information to the Board.

8
    (10)     After consideration of all evidence and arguments, both oral
    and written, the Board will make a final determination on the proposed
    order. The Board of Trustees may accept, reject or accept as-modified
    the proposed order. The Board may make its own conclusions and issue
    an order in concert with those findings; or re-open the case and hear
    evidence themselves. If the Board decides to hear the case, it will
    determine whether to review the complete record, including a transcript
    of the original hearing conducted by the administrative hearing judge
    and all documentary evidence, or open the case to receive new evidence
    and testimony. As in all matters before the Board, seven (7) votes are
    necessary to approve any motion, resolution or order under consideration.
    A copy of the Board’s final order will be delivered via mail to the member
    and his representative by the executive secretary of TRS.
    (11)     Any member receiving an adverse ruling from the Board retains
    certain rights under the Administrative Procedures Act. The member
    may file an action for judicial review in District Court in Oklahoma
    County. Such action must be filed within thirty (30) days after the
    aggrieved party is notified of the Board’s order. The member may also
    petition for a rehearing, reopening or reconsideration of the appeal by
    the Board. Such petition must be filed with the executive secretary of
    TRS within ten (10) days from the date of the Board’s decision and
    must be based on 75 O.S. 317.
    (12)     The Administrative Procedures Act prohibits direct or indirect
    communications by members and/or the representatives of members
    with the Board of Trustees in connection with any issue of fact or law
    regarding an appeal before the Board, except upon notice which provides
    an opportunity for all parties to participate. The Board of Trustees will
    not consider any evidence or statements made to them by members in
    connection with a pending appeal.
715:1-1-11. Information requests
    From time to time, many professional organizations seek information
from the Teachers’ Retirement System for improving benefits. It is the
desire of the Board of Trustees that the staff work with groups in an advisory
capacity or to supply factual data. Requests for technical data that would
require the services of the Board’s consulting actuary are to be made in
writing and will be reviewed by the Board before appropriate action is taken.
Because there are a large number of professional organizations and affiliate
groups which represent various segments of the teacher retirement
membership, the Board encourages organizations to coordinate their efforts
through their parent organization.

                                                                            9
715:1-1-12. Public participation in adoption of rules
   The Board encourages members to participate in the review and
promulgation of rules governing the Teachers’ Retirement System.
   (1) Any interested person may informally request adoption of a rule by
   correspondence or conference with Teachers’ Retirement System staff
   members. If satisfactory results cannot be achieved in this manner, any
   interested person may petition the Teachers’ Retirement System to adopt,
   amend, or repeal a rule by filing a clear, written request to initiate
   rulemaking procedures with the executive secretary. The petition shall
   set forth the exact text of the proposed rule and the petitioner’s name
   and address, and the name, business address, and telephone number of
   petitioner’s counsel, if any. The petition may also include written
   documents in support of the petition.
   (2) “Interested person” means any member of the Teachers’ Retirement
   System; any beneficiary of a member; any retiree of the Teachers’
   Retirement System; any guardian, administrator, or executor of a
   member, retiree, or beneficiary; or any public school.
   (3) The executive secretary shall grant or deny the petition within 60
   days of its receipt. The executive secretary may consult informally
   with staff members and the petitioner in reaching a decision. The petition
   may be amended with consent of the petitioner at any time before a
   final decision is rendered.
        (A) Upon granting the petition in writing, the executive secretary
        shall inform the Board and request authority to initiate rulemaking
        proceedings pursuant to the Administrative Procedure Act and the
        rules and regulations of the Teachers’ Retirement System.
        (B) Denial of the petition by the executive secretary, and reasons
        therefore, shall be in writing. The petitioner may appeal this decision
        to the Board of Trustees provided that a written notice of appeal is
        filed with the executive secretary within sixty (60) days after the
        decision of the executive secretary is issued. If no such notice of
        appeal is timely filed, or if the next regularly scheduled meeting of
        the Board of Trustees will occur more than sixty (60) days after
        receipt of the petition by the executive secretary, and the petitioner
        is unwilling to waive the deadline for a final decision until that
        meeting, the decision of the executive secretary shall be the final
        decision of Teachers’ Retirement System. The final decision of the
        Board shall be based on the written petition and written decision of
        the executive secretary unless the Board orders a hearing on the
        petition. If the Board approves the petition, the executive secretary

10
         shall initiate rulemaking proceedings pursuant to the Administrative
         Procedure Act and the rules and regulations of the Teachers’
         Retirement System.
    (4) Oral and written data, views, and arguments on a proposed rule
    may be submitted informally to the executive secretary by informal
    conference or correspondence within twenty (20) days after publication
    of notice of the proposed rule is filed with the Department of Libraries.
    (5) A written request for a public hearing on a proposed substantive
    rule may be submitted to the executive secretary within ten (10) days
    after publication of notice of the proposed substantive rule provided
    that the request is made by 25 persons, a governmental subdivision or
    agency, or an association having at least 25 members. The request
    shall contain the name and address of each person requesting the hearing
    and shall clearly specify the proposed rule for which a hearing is
    requested.
    (6) The executive secretary shall schedule the proposed rule for hearing
    on a date no earlier than seven days after notice of the hearing date is
    published and no later than 20 days after receipt of the written request.
    The executive secretary or the Board of Trustees may reschedule the
    hearing in the interest of justice or administrative necessity or for good
    cause; however, the proposed rule shall not be adopted prior to the
    requested hearing.
    (7) The executive secretary shall designate himself, a Teachers’
    Retirement System employee, or a specially appointed person as hearing
    officer to take the testimony of any interested person in support of or in
    opposition to the rule. The hearing officer shall designate the order of
    taking testimony and may establish reasonable time limits on oral
    testimony, provided that reasonable opportunity is given to amplify oral
    testimony in writing. All hearings will be held in the offices of Teachers’
    Retirement System, unless for good cause Teachers’ Retirement System
    shall designate another place of hearing.
715:1-1-13. Change of address, name or district
    When a member moves to a new address, or if there is a change of
surname, TRS should be notified of such change in writing. Please include
the new name, the former name and the Social Security number. This
procedure also applies to retired members whose checks are directly
deposited to their banking accounts. Also, when an employee moves from
one school district to another, it is important that TRS be notified of this
change at once. Personal Data Form TRS 1-A may be secured for this
purpose from the fiscal officer of the member’s employer.

                                                                            11
715:1-1-14. Definition of IRS Code
    The retirement system shall satisfy the applicable qualification
requirements for governmental plans as specified in Sections 401 and 414(d)
of the Internal Revenue Code of 1954 or 1986, as amended from time to
time and as appropriate for a governmental plan (hereinafter referred to as
the “Internal Revenue Code”).
715:1-1-15. Distribution Rules (Amended 2005)
(a) Notwithstanding any other provision of the administrative code, all
benefits paid from the retirement system (other than the tax-sheltered annuity
program) shall be distributed in accordance with the requirements of Section
401(a)(9) of the Internal Revenue Code and Treasury Regulations §
1.401(a)(9)-1 through § q.401(a)(9)-9, even if the member has not submitted
the appropriate notice. These provisions override any distribution options
that are inconsistent with Internal Revenue Code Section 401(a)(9).
(b) In furtherance of this section, the Board of Trustees and its designee
will apply the following provisions:
     (1) The entire interest of each member:
          (A) will be distributed to such member not later than the required
          beginning date; or
          (B) will be distributed beginning not later than the required beginning
          date, in accordance with Treasury regulations over the life of such
          member or over the lives of such member and a designated
          beneficiary (or over a period not extending beyond the life
          expectancy of such member or the life expectancies of such member
          and a designated beneficiary).
     (2) If distribution of the member’s interest has begun in accordance
     with subparagraph (1)(B) and the member dies before his or her entire
     interest has been distributed to the member, the remaining amount shall
     be distributed at least as rapidly as under the method of distribution
     being used under subparagraph (1)(B) as of the date of the member’s
     death.
     (3) If a member dies before distribution of the member’s benefits begins
     under subparagraph (1)(B), and if any portion of the member’s interest
     is payable to or for the benefit of a designated beneficiary for the
     beneficiary’s lifetime or for a period not to exceed the beneficiary’s life
     expectancy, the distribution must begin no later than December 31 of
     the calendar year immediately following the calendar year in which the
     member died. However, if the designated beneficiary is the surviving
     spouse of the member:


12
         (A) the date on which the distribution is required to begin shall not
         be earlier than the date on which the member would have attained
         age 70 1/2, and
         (B) if the surviving spouse dies before the distribution to such spouse
         begins, subparagraph (1)(B) shall be applied as if the surviving
         spouse were the member.
    (4) For benefit payments to beneficiaries that are not covered by
    paragraph (3), if the member dies before distribution of the member’s
    interest has begun in accordance with subparagraph (1)(B), the member’s
    entire interest must be distributed within 5 years after the member’s
    death.
    (5) For purposes of this section, the term “required beginning date”
    means April 1 of the calendar year following the later of:
         (A) the calendar year in which the employee reaches age 70 1/2 or
         (B) the calendar year in which the employee retires.
    (6) For purposes of determining benefits, the life expectancy of a
    member, a member’s spouse or a member’s beneficiary shall not be
    recalculated after benefits commence.
    (7) The amount of benefits payable to a member’s beneficiary may not
    exceed the maximum determined under the incidental death benefit
    requirement of Internal Revenue Code Section 401(a)(9)(G).
715:1-1-16. General IRS Qualification Rules
     In addition to other Code provisions otherwise noted, and in order to
satisfy the applicable requirements under the Code, the retirement system
shall be subject to the following provisions, notwithstanding any other
provision of the retirement system law:
     (1) The Board of Trustees shall distribute the corpus and income of the
     retirement system to the members and their beneficiaries in accordance
     with the retirement system law.
     (2) Forfeitures arising from severance of employment, death, or for
     any other reason may not be applied to increase the benefits any member
     would otherwise receive under the retirement system law.
     (3) The Board of Trustees or its designee may not:
          (A) determine eligibility for benefits,
          (B) compute rates of contribution, or
          (C) compute benefits of members or beneficiaries
     in a manner that discriminates in favor of members who are considered
     officers, supervisors, or highly compensated, as prohibited under Code
     Section 401(a)(4).


                                                                             13
     (4) The Board of Trustees may not engage in a transaction prohibited
     by Code Section 503(b).
715:1-1-17. Inspection, copy and/or reproduction fees
(a) Any request for a copy of a record not deemed confidential under 70.O.S.
§17-109.1 from the Teachers’ Retirement System of Oklahoma shall be
granted upon payment of the following fees:
     (1) First six (6) pages - Free
     (2) Additional pages - $0.25 per page
     (3) Certified Copies - $1.00 per page
     (4) Facsimiles (Fax) - $1.00 per page
     (5) Magnetic tapes or other electronic media - Actual cost
(b) These fees shall not apply to copies of the System’s Rules and Laws
books, Annual Reports, Plan Summaries or other publications sent to System
members, scholars, authors, news media, or taxpayers seeking to determine
whether those entrusted with the affairs of the government are honestly,
faithfully, and competently performing their duties as public servants. These
fees shall not be used for the purpose of discouraging requests for information
or as obstacles to disclosure of requested information. If the request for a
record is solely for commercial purposes or clearly causes excessive
disruption of the System’s essential functions, the Teachers’ Retirement
System of Oklahoma may charge a reasonable fee to recover the direct cost
of the document search, as provided by 51 O.S., §24A.5 (3). Said reasonable
fee shall be the equivalent of the applicable pro rata hourly wage of the
System employee who performs the search multiplied by the total search
time expended by that employee.
715:1-1-18. Retirement benefit reduction to pay a judgment or
settlement as an offset
    The Board of Trustees may approve an offset of a member’s benefit to
pay a judgment or settlement against the member for a crime involving the
System, for a breach of the member’s fiduciary duty to the System, or for
funds or monies incorrectly paid to a member or a beneficiary by mistake.
Such offsets will be made in accordance with any applicable state statutes
and requirements of Section 401(a)(13) of the Internal Revenue Code of
1986.




14
                  Chapter 10. General Operations

Subchapter
715:10-1.       Membership Provisions
715:10-3.       Service Eligibility
715:10-5.       Establishing Other Service Credits
715:10-7.       Membership Vesting and Termination
715:10-9.       Survivor Benefits
715:10-11.      Withdrawal from Membership and Refund of Deposits
715:10-13.      Contributions for Membership Service
715:10-15.      Service Retirement
715:10-17.      Post-Retirement Employment
715:10-19.      Tax-Sheltered Annuity Program
715:10-21.      Investment Policy
715:10-23.      State and Education Employees Group Health and Dental
                Insurance Program
715:10-25.      Qualified Domestic Order

               Subchapter 1. Membership Provisions

Section
715:10-1-1.     Purpose
715:10-1-2.     TRS membership eligibility
715:10-1-3.     Mandatory TRS membership
715:10-1-4.     Optional TRS membership
715:10-1-5.     Ineligible for TRS membership
715:10-1-6.     Date of TRS membership
715:10-1-7.     Membership in education associations
715:10-1-8.     Membership of Employees of Charter Schools
715:10-1-1. Purpose
    The rules of this Chapter have been adopted for the purpose of complying
with and implementing the provisions of 70 O.S., Section 17-102 et seq,
which establish the Teachers’ Retirement System of Oklahoma and place it
under the management of the Board of Trustees.
715:10-1-2. TRS membership eligibility (Amended 2005)
     Except as provided in the Alternate Retirement Plan for Comprehensive
Universities Act (70 O.S. § 17-201, et seq.), all“regular” employees of the
public schools operated by and for the State of Oklahoma are eligible to
become members of the Teachers’ Retirement System, subject to the
restrictions in paragraphs 1 through 3 of this section.
                                                                         15
     (1) Regular employee means an employee working twenty (20) hours
     or more per week, who has assigned duties and responsibilities, and
     who is treated by all standard conventions as an employee of the school;
     and, who receives compensation commensurate with the responsibilities
     of the position. Temporary, seasonal, supplemental and other employees
     employed on a limited or short term basis are not regular employees,
     and are thus ineligible.
     (2) Regular employees receive payment for service by a school or state
     warrant, recorded on a warrant register with standard payroll deductions
     and receive benefits generally provided to other “regular” employees.
     (3) The minimum requirement of twenty (20) hours per week shall be
     determined by the actual time the employee is required to be present at
     the place of employment.
715:10-1-3. Mandatory TRS membership (Amended 2005)
    Except as provided in the Alternate Retirement Plan for Comprehensive
Universities Act, the following employees are required by 70 O.S. 17-103
to be members of the Teachers’ Retirement System as a condition of
employment:
    (1) “Classified” employees employed by public, state-supported
    educational institutions in Oklahoma for twenty (20) hours or more per
    week at a rate of compensation comparable to other persons employed
    in similar positions.
    (2) An administrative or supervisory employee of the State Department
    of Education, or other state agency whose function is primarily devoted
    to public education and who works twenty (20) hours or more per week
    at a rate of compensation comparable to other persons employed in
    similar positions.
    (3) A county superintendent of schools. (This paragraph will become
    obsolete January 1, 1993, when provisions of H.B. 1017 abolish the
    office of county superintendent)
715:10-1-4. Optional TRS membership
    The following employees are eligible to be members of the Teachers’
Retirement System at their option:
    (1) “Classified” employees regularly employed in the public, state-
    supported educational institutions of Oklahoma at any time during the
    five-year (5-year) period from July 1, 1938 to June 30, 1943.
    (2) “Non-classified” employees employed by the public, state-supported
    educational institutions in Oklahoma for twenty (20) hours or more per
    week at a rate of compensation comparable to other persons employed
    in similar positions.
16
    (3) “Classified” employees regularly employed in the public, state-
    supported educational institutions who have reached age fifty-five (55)
    at the time of employment.
    (4) “Classified” employees regularly employed by a comprehensive
    university, as defined in 70 O.S. § 17-101, who have reached age
    forty-five (45) at the time of employment, providing the employee is not
    currently a member of the Teachers’ Retirement System.
    (5) An employee on official sabbatical leave receiving at least one-half
    pay from the employing school or institution. Contributions for such
    employment shall be at a rate commensurate with the salary earned as
    a regular full-time employee in the last preceding school year. “Official
    sabbatical” means paid leave granted by the governing board of the
    employing school or institution. The member must elect to participate
    and make contributions to TRS at the time of the sabbatical. Sabbatical
    leave cannot be purchased by the member at a later date.
    (6) Any member absent from the teaching service who is eligible to
    continue membership under special provisions of 70 O.S. § 17-116.2,
    provided that such employee continues to be employed by a governmental
    agency.
    (7) A visiting professor from another state or nation.
    (8) Classified and Non-Classified members employed after retirement.
    (See OAC 715:10-17-13).
    (9) Full-time, non-classified optional personnel who previously have
    opted out of TRS under OAC 715:10-11-2 may revoke their election
    and return to TRS participation. Providing, however, that such member
    is not eligible to redeposit the account withdrawn under
    OAC 715:10-11-2 or purchase credit for service performed after
    termination of membership and re-instatement of membership.
715:10-1-5. Ineligible for TRS membership (Amended 2005)
     The following employees are ineligible to be members of the Teachers’
Retirement System. (Note: Ineligible employment cannot be combined with
eligible employment.)
     (1) An employee working less than 20 hours per week.
     (2) A substitute, irregular, seasonal, graduate assistant, fellowship
     recipient, adjunct supplemental or temporary employee. (Note: Certain
     substitute and adjunct employment may qualify for service credit. See
     OAC 715:10-5-2 and OAC 715:10-5-34).
     (3) “Non-classified” employees who withdrew from membership in the
     Teachers’ Retirement System after July 1, 1990, under provisions of
     OAC 715:10-11-2.

                                                                          17
     (4) Persons employed as a consultant or persons contracting with a
     public school to transport students, to provide food service, or to provide
     any other services, who are not “regular” employees of the school.
     (NOTE: School bus drivers or food service personnel who are regular
     employees of the school are eligible for membership, subject to the
     requirements of OAC 715:10-1-2, 10-1-4, 10-1-5.)
     (5) An employee whose primary function at a school or institution is
     that of a student. If both the following conditions apply, a person
     employed in an Oklahoma public school, college or university shall be
     considered to be a student employee.
          (A) The employment is conditional upon the employee’s being
          enrolled as a student at the same institution; and
          (B) The employee has no other employment during the same payroll
          period which is eligible for membership in TRS.
     (6) A regular employee who earns less than $2,000 per year.
     (7) Any persons whose employment compensation comes from federal
     or other funds and is not administered by an Oklahoma public education
     employer. (Note: If the employee is not paid by the school on a state
     warrant, the employee is not considered to be an employee of the school
     or the State of Oklahoma. Regular employees whose salaries are paid
     in part or in whole by federal or other funds are eligible for membership
     if they were hired by the school and paid by the school.)
     (8) Any person employed by the public schools of Oklahoma after
     July 1, 1991, who is covered by another federal, state, county or local
     public retirement plan which will provide benefits on the employment
     service covered by the Teachers’ Retirement System.
     (9) Employees of employers that are not governmental employers within
     the definition of Internal Revenue Code Section 414 and 70 O.S.
     17-116.2J.
     (10)     Any person employed by the University of Oklahoma or
     Oklahoma State University or the entities of either comprehensive
     university who elects to participate in an alternative retirement plan
     provided by the comprehensive university as provided by the Alternate
     Retirement Plan for Comprehensive Universities Act,
715:10-1-6. Date of Membership
    Date of membership is the date the initial contribution is made to TRS
under the current membership account. (TRS Form 1-A must be completed
and on file with TRS and membership approved by the Board of Trustees.)
Any former member of TRS who has previously withdrawn contributions
and who redeposits said withdrawn contributions as permitted by law, shall

18
have his or her initial date of membership reinstated. Any person who
transfers service from the Oklahoma Public Employees Retirement System
in accordance with 70 O.S. Supp. 1994, Section 17-116.2(L), shall be eligible
to use his or her initial entry date into the Oklahoma Public Employees
Retirement System as his or her date of membership in TRS. If a current
member purchases non-contributory service for those years of qualified
employment prior to the current date of membership, the official date of
membership will remain the date the member’s current membership account
was opened.
715:10-1-7. Membership in education associations (Amended 2005)
    Any member absent from employment in the public schools of Oklahoma
because of election or appointment as a local, state or national education
association officer shall be allowed to retain membership in TRS by making
the contribution required of such member by Title 70 Okla. Stat. Section
17-116.2 and any other applicable statute. For purposes of this section the
following shall apply:
    (1) An education association is defined as an organization of educators
    established for the sole purpose of promoting the advancement of
    educational goals in Oklahoma or at the national level. A local or state
    association must be duly organized under the laws of the state of
    Oklahoma with a charter or articles of incorporation filed with the
    appropriate state agency and must comply with all applicable laws of
    the state of Oklahoma. A national association must be duly registered
    or chartered for the purpose of furthering educational goals at the national
    level.
    (2) An “officer in an association” is a current member of TRS who is
    elected or appointed to an employment position within the association
    commensurate with a position in the public schools of Oklahoma defined
    as “classified” personnel by 70 O.S. § 17-101. The officer must receive
    compensation for services rendered commensurate with compensation
    received for similar services in the public schools of Oklahoma.
    (3) A member must notify TRS in writing on the form provided by
    TRS the member’s intent to elect to continue membership in TRS within
    thirty (30) days of becoming employed by an eligible association. In
    making this election, the member shall agree to make payment in
    accordance with 70 O.S. § 17-116.2 for the period of employment that
    qualifies for continued membership and to comply with all statutes and
    rules of TRS in maintaining membership.
    (4) The maximum years of creditable service a member may receive
    for one such absence shall not exceed twelve (12) continuous years. A

                                                                             19
     member may again qualify for creditable service in an educational
     association provided that the member returns to employment in the public
     schools of Oklahoma for a minimum of the same number of years
     received as credit in the former education association.
     (5) On the recommendation of the Executive Secretary, the Board of
     Trustees may deny eligibility to any local state or national association,
     when it is judged not to conform with the intent of 70 O.S. § 17-116.2
     or when it is determined that the association was not established for the
     sole purpose of promoting the advancement of education.
     (6) Effective July 1, 1994, a member may elect to continue membership
     as provided in paragraph (3) above only if the member has ten (10)
     years of contributory Oklahoma service prior to July 1, 1994.
715:10-1-8. Membership of Employees of Charter Schools
    Employees of charter schools created pursuant to 70 OS § 3-130 et seq.
are eligible for membership in the Teachers’ Retirement System providing
the governing board of the charter school applies for membership for its
regular employees. Upon approval of the application for membership by
the Board of Trustees all employees of the charter school shall join the
Teachers’ Retirement System under the same membership eligibility rules
applying to employees of other public schools. Employees of charter schools
shall in all circumstances follow the rules applicable to other members of
the Teachers’ Retirement System. Employees of charter schools that do not
apply or are not approved for membership in the Teachers’ Retirement System
shall not be eligible for retirement service credit for years of employment
performed in a non-member status and such employees shall not be eligible
to purchase service at anytime subsequent to such employment.




20
                   Subchapter 3. Service Eligibility

Section
715:10-3-1.      Requirements for creditable service
715:10-3-2.      Requirements for fulltime service
715:10-3-3.      Requirements for halftime service
715:10-3-4.      Combining fractional years of service
715:10-3-5.      Minimum compensation requirements
715:10-3-1. Requirements for creditable service
    All members of Teachers’ Retirement System must be employed a
specified amount of time as related to their educational employment position,
and earn a minimum salary, before creditable service will be awarded.
Membership service credit shall be granted only when employment is
performed on at least a half-time basis. No service performed as a unpaid
volunteer shall be counted as service credit.
715:10-3-2. Requirements for fulltime service
    A member employed at least six (6) hours per day (30 hours per week)
shall be considered a full-time employee.
    (1) A full-time employee may receive one (1) year of creditable service
    after completing six (6) months or more of employment in a school
    year.
    (2) No member shall receive one (1) year of service credit for less than
    720 hours of employment. (This does not mean that a member working
    720 hours is automatically entitled to one (1) year of creditable service.)
715:10-3-3. Requirements for halftime service
     A member employed at least four (4) but less than six (6) hours per day
(at least 20 but less than 30 hours per week) shall be considered a half-time
employee.
     (1) A half-time employee may receive one-half (1/2) year of creditable
     service after completing six (6) months or more of employment in a
     school year.
     (2) No member shall receive one-half (1/2) year of service credit for
     less than 480 hours of employment. (This does not mean that a member
     working 480 hours is automatically entitled to one-half (1/2) year of
     creditable service.
     (3) A member who is employed one-half (1/2) the standard workload
     of other persons employed in similar positions shall not receive more
     than one-half (1/2) year of service credit even if total hours worked
     exceed 720 hours.
                                                                            21
     (4) Members who joined TRS prior to July 1, 1991, may receive one-
     half (1/2) credit for a minimum of three (3) hours per day (540 hours
     per school year) as long as they remain employed in the same or similar
     position for the same employing school. Any break in employment
     shall end this special provision and the member will be required to qualify
     for full-time or half-time credit as provided for in Subchapters 1 and 3
     of this chapter.
715:10-3-4. Combining fractional years of service
     Fractions of school terms performed as an active contributing member
of TRS of at least one (1) school month, in different school years, may be
combined to make a total of six (6) months for one (1) year of creditable
service. It is not permissible to divide service rendered in one (1) year into
fractional parts and combine these fractions with service rendered in two
(2) or more years in order to gain additional years of service. All fractional
service must be combined together before days of unused sick leave are
applied to fractional service to obtain service credit. No more than one (1)
year of credit will be given for all employment in any one (1) school year.
715:10-3-5. Minimum compensation requirements
    In addition to the above, the following chart outlines the minimum salary
levels which constitute membership service credit for the time periods
indicated:
                     Minimum       Required               Allowable Credit
Period             Time Worked   Annual Salary          Monthly     Annually

7/1/43 - 6/30/61     9 months    $900                  ------         1 year

7/1/61 - 6/30/64     10 months   Less than $1,000      Not Eligible
                                 $1,000                ------         1 year

7/1/64 - 6/30/84                 Less than $1,000      Not Eligible
                                 $1,000-$1,500         1-1/2 months   1/4 year
                                 $1,501-$1,750         3 months       1/2 year
                                 $1,751-$1,999         4-1/2 months   3/4 year
                                 $2,000 and over       6 months       1 year

07/01/84 - Present               Less than $2,000      Not Eligible
                                 $2,000-$3,000         1-1/2 months   1/4 year
                                 $3,001-$3,500         3 months       1/2 year
                                 $3,501-$3,999         4-1/2 months   3/4 year
                                 $4,000 and over       6 months       1 year




22
       Subchapter 5. Establishing Other Service Credits

Section
715:10-5-1.     Oklahoma service credit after July 1, 1943
715:10-5-2.     Employment as a substitute teacher in Oklahoma schools
715:10-5-3.     Official sabbatical leave from an Oklahoma school
715:10-5-4.     Cost to purchase Oklahoma service
715:10-5-5.     Oklahoma service performed prior to July 1, 1943
                [REVOKED]
715:10-5-6.     Verification of Oklahoma service before membership
715:10-5-7.     Credit for service in other Oklahoma public retirement
                systems
715:10-5-7.1.   Transfer of service credit from the Oklahoma Public
                Employees Retirement System
715:10-5-7.2.   Transfer of service credit to the Oklahoma Public Employees
                Retirement System
715:10-5-7.3.   Service credit transfers for TRS members who are CLEET-
                certified employees of the University of Oklahoma and
                Oklahoma State University
715:10-5-8.     Revocation of $7,800 waiver
715:10-5-9.     Re-establishing withdrawn service
715:10-5-10.    Military service credit
715:10-5-11.    Military service limited to maximum of five years
715:10-5-12.    Military service performed prior to July 1, 1943
                [REVOKED]
715:10-5-13.    Military service performed after July 1, 1943
715:10-5-14.    Military service combined with Oklahoma service
715:10-5-15.    Application for military service
715:10-5-16.    Cost to purchase military service
715:10-5-17.    Adjustment for military service after retirement
715:10-5-18.    Other restrictions on military service
715:10-5-19.    Out-of-state service credit
715:10-5-20.    Out-of-state service performed prior to July 1, 1943
                [REVOKED]
715:10-5-21.    Out-of-state service performed after July 1, 1943
715:10-5-22.    Out-of-state service limited to maximum of five years
715:10-5-23.    Out-of-state service combined with Oklahoma service
715:10-5-24.    Continuous, consecutive out-of-state service
715:10-5-25.    Application for out-of-state service
715:10-5-26.    Cost to purchase out-of-state service
715:10-5-27.    Other restrictions on out-of-state service
                                                                        23
715:10-5-28.     Sick leave service credit
715:10-5-29.     Verification of accumulated sick leave
715:10-5-30.     Ten-year averaging of sick leave
715:10-5-31.     Documentation of service
715:10-5-32.     Rollovers from other qualified plans or conduit IRAs
715:10-5-33.     Credit for family leave
715:10-5-34.     Credit for Adjunct Service
715:10-5-35.     Employer pick-up of purchase of service credit
715:10-5-1. Oklahoma service credit after July 1, 1943 (Amended 2005)
     Members may purchase credit for years of employment from July 1,
1943, to date of membership in the public schools of Oklahoma on which
contributions were not remitted. One (1) full year (twelve calendar months)
as a contributing member of TRS must be completed before a member may
make such purchases. All purchased service must meet Teachers’ Retirement
System minimum requirements for eligibility, in effect at the time of purchase,
and be properly documented before purchase is allowed. Payment shall not
be allowed for any employment during a school year that was less than one-
half (1/2) time, and no credit is allowed for periods of employment when a
member participated in an alternate retirement plan as provided for by the
Alternate Retirement Plan for Comprehensive Universities Act.. All payments
for past service must be made while an active contributing member of the
Teachers’ Retirement System or within sixty (60) days of termination of
employment in the public schools of Oklahoma. Payment for service credit
must be completed prior to the effective date of retirement and cannot be
purchased by any person after the death of the member. (See OAC 715:10-
5-4 for cost and method of payment)
715:10-5-2. Employment as a substitute teacher in Oklahoma schools
    A member of Teachers’ Retirement System who was employed as a
substitute teacher may purchase credit for such employment provided they
were employed for 120 days in one school year. Such service shall be
considered the equivalent of one (1) year of service. Members claiming
credit for such service, and who have such service documented through
Teacher Personnel, State Department of Education, must pay the actuarial
cost of such service as defined by OAC 715:10-5-4. The maximum creditable
service granted for substitute teaching shall be five (5) years. Under no
condition may substitute teaching service from one school year be combined
with substitute teaching service or any other employment from another school
year to obtain 120 days of substitute teaching credit. The payment for such
service credit may be made in one lump sum or in equal monthly installments
up to sixty (60) months, as provided in OAC 715:10-5-4(9).
24
715:10-5-3. Official sabbatical leave from an Oklahoma school
(a) A member may purchase credit for an official sabbatical leave performed
prior to July 1, 1990, provided the member received at least one-half (1/2)
pay from the employing school and the governing Board of the employing
school or institution granted such leave in its official records or minutes as
an “official sabbatical”. Payment shall be based on the actuarial cost of
such service as defined by OAC 715:10-5-4.
(b) A member may receive credit for an official sabbatical leave performed
after July 1, 1990, providing the member receives at least one-half (1/2)
pay from the employing school, the governing Board of the employing school
or institution designates such leave as an “official sabbatical,” and the
member notifies the Teachers’ Retirement System in writing of his or her
intent to make contributions for sabbatical leave credit. To qualify, the
member must receive at least one-half pay from the employing school.
Compensation from other entities will not qualify in meeting the one-half
pay requirement. Contributions for such employment shall be at a rate
commensurate with the salary earned as a regular full-time employee in the
last preceding school year. “Official sabbatical” means paid leave granted
by the governing board of the employing school or institution. The member
must elect to participate and make contributions to TRS at the time of the
sabbatical. Sabbatical leave cannot be purchased by the member at a later
date.
715:10-5-4. Cost to purchase Oklahoma service
    The purchase price for each year of Oklahoma service, unless otherwise
specified, shall be based on the actuarial cost of the incremental projected
benefits being purchased.
    (1) The actuarial cost and any tables formulated for the purpose of
    determining such cost, shall be based on the actuarial assumptions
    adopted by the Board of Trustees to be utilized in the actuarial valuation
    report for the Fiscal Year beginning each July 1. New actuarial
    assumptions approved by the Board subsequent to January 1, 1991,
    shall be incorporated into such tables with an effective date of the next
    January 1st.
    (2) The actuarial value shall be based upon the member’s age, full-
    time equivalent salary and contribution level at the time of purchase (or
    the annual salary of the previous year, if greater), together with the
    earliest age for retirement with maximum benefits and actuarially
    assumed salary at time of retirement. If purchase is not made by the
    due date on the billing statement, the purchase must be recalculated and
    the actuarial cost may increase.

                                                                           25
     (3) For purposes of this actuarial cost, the member’s age shall be
     determined as the age at last birthday.
     (4) For purposes of this actuarial cost, the mortality tables shall be
     formulated as a unisex table assuming a 40% male and 60% female
     population, based on the actuarial assumptions in paragraph (1) of this
     section.
     (5) The actuarial cost shall not be less than the contributions required
     of the member at a rate commensurate with the salary earned as a regular
     full-time employee the last preceding school year prior to the purchase.
     Individuals employed on a less than full-time basis shall have their salary
     adjusted upward, in a prorata manner, to the amount that would be
     earned if employed full-time.
     (6) Payment may be made in a lump sum for all eligible years of service
     or in installments equal to establishing one (1) year of creditable service.
     (7) A billing statement will be issued at the request of the member. The
     due date of payment shall be the date prior to the member’s next birthday
     or June 30th, whichever occurs first.
     (8) A member may request payment of past service credits billed in
     accordance with provisions of 70 O.S. Supp. 1993, Section 17-116.8,
     as amended, to be amortized in monthly installments of not more than
     sixty (60) months. A payment schedule may be established allowing
     the member to make monthly payments directly to Teachers’ Retirement
     or through payroll deductions by the member’s employer if the employer
     agrees to make the deductions and remit payments to Teachers’
     Retirement. Payments remitted by an employer for its employees must
     be kept separate from the employer’s regular retirement contributions
     and tax sheltered annuity deposits. Effective January 1, 2002, installment
     payments made through employer payroll deductions qualify for special
     tax treatment. (See OAC 715:10-5-35.)
     (9) The installment payment schedule provided for in this section must
     be in equal monthly increments of twelve-month periods not to exceed
     sixty (60) months. The member shall be responsible for maintaining
     the payment schedule. Payments are due on the first day of each month.
     A monthly installment not paid within sixty (60) days of the due date
     will result in termination of the installment payment schedule with the
     member given the option of paying the balance of the actuarial cost or
     receiving partial credit for payments made under the installment schedule
     as provided for in paragraph (11) of this section.
     (10)      The monthly payment will be determined by amortizing the
     total amount due for the service to be purchased over the period of the
     installment schedule using an interest rate equal to the actuarially
26
    assumed interest rate adopted by the Board of Trustees for investment
    earnings each year. The current interest rate is eight percent (8%).
    (11)If the installment payment is terminated for any reason, including
    termination of employment, death of the member or by cessation of
    payments, the member or his beneficiary will have the option of paying
    the remaining balance within six (6) months. If the balance is not paid,
    the member will receive credit for service prorated in whole years for
    only the principal amount paid. Any payment balance that is not used
    in crediting whole years will be refunded to the member.
    (12)      Credit will not be awarded for partial years of service unless
    the member’s employment record is such that one-half (1/2) year of
    credit is included in the original service to be purchased.
    (13)      Credit for service purchased on an installment schedule will
    not be added to the member’s account until the entire balance is paid,
    except as provided for in paragraph (11) of this section. All payments
    must be completed one (1) month prior to the effective retirement date
    of the member.
715:10-5-5. Oklahoma service performed prior to July 1, 1943
[REVOKED]
715:10-5-6. Verification of Oklahoma service before membership
    All requests for previous or prior Oklahoma service must be properly
documented. Verification of such service is the responsibility of the member.
Teachers’ Retirement System “Verification of Oklahoma Service” form must
be completed by the current superintendent, business manager, secretary of
the school board or treasurer of the school board of the school where the
service was performed.
    (1) An application for past Oklahoma service must be accompanied by
    documentation consisting of one of the following:
        (A) Actual Payroll Registers - which must show names of employer/
        employee; employee’s Social Security Number; and monthly salary.
        (B) A Social Security Detailed Earnings Information Record - which
        must include employer and salary by calendar year.
        (C) W-2 Tax Records - Actual copies for each calendar year needed
        or photocopies of state income tax returns.
    (2) Teachers’ Retirement System will review and consider other
    supporting documentation in conjunction or in lieu of the above. The
    executive secretary will rule on the acceptability of all documents
    presented by members or employing schools in determining credit for
    past service.

                                                                          27
     (3) Under no circumstance will TRS accept affidavits from school officials,
     co-workers or third parties to attest service performed by a member.
715:10-5-7. Credit for service in other Oklahoma public retirement
systems
    A member of the Teachers’ Retirement System of Oklahoma may receive
credit for employment covered by the following Oklahoma public retirement
systems: the Oklahoma Firefighters Pension and Retirement System, the
Oklahoma Police Pension and Retirement System, the Uniform Retirement
System for Justices and Judges, the Oklahoma Law Enforcement Retirement
System, Oklahoma Department of Wildlife, and the Oklahoma Public
Employees Retirement System (OPERS). Such service must meet the
minimum Teachers’ Retirement System membership requirements. (See
Subchapter 3)
    (1) After one full year (twelve calendar months) of Teachers’ Retirement
    System contributory service, a member is eligible to purchase service
    credited in another State retirement system. A certification of service
    form must be completed by the member’s former State retirement system.
    The certification must show: the date of withdrawal, the salary by fiscal
    school year, and the total amount of credited service. It shall be the
    responsibility of the member to notify TRS of intent to claim such service
    and obtain proper documentation from the member’s former State
    retirement system.
    (2) Employment which did not qualify for membership in the former
    State retirement system shall not qualify for credit in TRS.
    (3) Employment performed prior to the establishment of the State
    retirement system for the employment class shall not cause membership
    in TRS to be denied, however, the type of service rendered must be
    accepted by the appropriate State retirement system if the member were
    now enrolled in that retirement system.
    (4) The purchase price for each year of such service shall be based on
    the actuarial cost of the incremental projected benefits being purchased
    (see OAC 715:10-5-4).
    (5) Under no circumstances can the purchased creditable service exceed
    the total service verified or the amount of credit given by the former
    retirement system.
    (6) Once purchased, the other State service counts towards vesting,
    eligibility for retirement, and final average salary. However, the last
    year in the member’s account immediately preceding retirement must
    be with a public education employer that participates in Teachers’
    Retirement System.

28
    (7) The member shall not be receiving, or be eligible to receive,
    retirement credit or benefits from said service in any other public
    retirement system.
715:10-5-7.1. Transfer of service credit from the Oklahoma Public
Employees Retirement System
(a) An active member of the Teachers’ Retirement System may receive credit
for those years of service accumulated by the member while a member of
the Oklahoma Public Employees Retirement System, provided he or she is
not receiving or eligible to receive retirement credit or benefits from said
service in any other public retirement system, notwithstanding the years of
service sought to be transferred under this section. The member must be an
active contributing member of the Teachers’ Retirement System at the time
application is made.
(b) A member of the Oklahoma Public Employees Retirement System who
becomes a member of the Teachers’ Retirement System of Oklahoma because
of employment by an entity or institution within the Oklahoma State System
of Higher Education, State Board of Education, Oklahoma Department of
Career and Technology Education, Oklahoma School of Science and
Mathematics, Oklahoma Center for the Advancement of Science and
Technology, State Department of Rehabilitation Services, Oklahoma State
Regents for Higher Education, Department of Corrections, State Department
of Education, Oklahoma Board of Private Vocational Schools, Board of
Regents of Oklahoma Colleges, Oklahoma Student Loan Authority, or the
Teachers’ Retirement System of Oklahoma may transfer to the Teachers’
Retirement System credit for years of service accumulated in the Oklahoma
Public Employees Retirement System.
(c) The member must file a notice with the Oklahoma Public Employees
Retirement System and the Teachers’ Retirement System of his or her election
to transfer service credit. The notice must include a list of the years to be
transferred and the member’s social security number or other identifying
information that may be required by either retirement system to locate and
evaluate the member’s service credit. Qualifying service accumulated as a
member of the Oklahoma Public Employees Retirement System shall be
accepted as service credit in the Teachers’ Retirement System, subject to
any statutory limitations, except for any service credited to the Oklahoma
Public Employees Retirement System which is derived from less than one
year of employment in any school year for which the member also receives
a year of service credit from the Teachers’ Retirement System, unless said
service credits are earned as a result of simultaneous employment with
separate participating employers of the systems.

                                                                          29
(d) Except for members transferring credit as provided in subsection (b) of
this section, the Teachers’ Retirement System, within thirty (30) days of
receipt of notification of an intent to transfer service to the member’s account,
shall determine the present value of the member’s incremental projected
benefit discounted according to the member’s age at the time of the transfer.
This determination shall be computed at the earliest age at which the member
would be able to retire and calculated in accordance with OAC 715:10-5-4
and 70 O.S. Section 17-116.8. Said computation shall assume an unreduced
benefit and be computed using interest, salary projections and mortality
assumptions consistent with the actuarial assumptions adopted by the Board
of Trustees for purposes of preparing the annual actuarial evaluation. Upon
completion of said determination, the Teachers’ Retirement System shall
notify the member and the Oklahoma Public Employees Retirement System
of the cost to transfer service. If the cost to the Teachers’ Retirement System
of the actuarial value of the incremental benefit is greater than the cost as
calculated for the same years of service in the Oklahoma Public Employees
Retirement System, the employee, except as provided in subsection (b) of
this section, shall elect to pay any difference to receive full credit for the
years sought to be transferred, or receive prorated service credit for only
the amount received from the Oklahoma Public Employees Retirement
System. Such an election shall be made in writing, filed with the System prior
to receiving the credit provided for in this section, and shall be irrevocable.
(e) Upon receipt of all monies transferred by the Oklahoma Public
Employees Retirement System, the Teachers’ Retirement System shall credit
the member’s account for the deposit and notify the member of any additional
payment due to complete the transfer. Except as provided in subsection (b)
of this section, the member is required to pay any difference between the
amount determined in subsection (d) of this section and the amount received
from the Oklahoma Public Employees Retirement System within sixty (60)
days of notification by Teachers’ Retirement unless the member elects
monthly installments and pays the balance due in accordance with OAC
715:10-5-4.
(f) Except as provided by subsection (b) of this section, any member who
ceases to make payment, terminates, retires or dies before completing the
payments provided for in this rule shall receive prorated service credit for
only those payments made, unless the unpaid balance is paid by said member,
his or her estate or successor in interest within six (6) months after said
member’s death, termination of employment or retirement, provided no
retirement benefits shall be payable until the unpaid balance is paid, unless
said member or beneficiary affirmatively waives the additional six-month
period in which to pay the unpaid balance.
30
(g) Notwithstanding the provisions of subsection (f) of this section, if any
member fails for any reason to satisfy the requirements of this rule, the
election to transfer service credit shall be void and of no effect, and any
service credited as a result of this transfer shall be canceled. Teachers’
Retirement shall return to the Oklahoma Public Employees Retirement
System any monies transferred for the canceled service.
(h) Years of service transferred pursuant to this rule shall be used in
determining the member’s retirement benefit. Participating service, as defined
by the Oklahoma Public Employees Retirement System, shall be credited to
the member’s account for purposes of vesting his or her account under
OAC 715:10-7-1. A member who joined the Teachers’ Retirement System
on or after July 1, 1992, and transfers service credit for employment
performed as a member of the Oklahoma Public Employees Retirement
System on or before July 1, 1992, shall receive credit for such service as if
the service were performed as a member of the Teachers’ Retirement System,
and the member’s eligibility for retirement shall be determined as if the
member had been a member of the Teachers’ Retirement System from the
date of such service.
715:10-5-7.2. Transfer of service credit to the Oklahoma Public
Employees Retirement System
(a) Any member of the Teachers’ Retirement System, who is an active
member of the Oklahoma Public Employees Retirement System, may file a
notice of election to transfer credit for those years of service accumulated
by the member while a member of the Teachers’ Retirement System.
(b) A member of the Teachers’ Retirement System whose last qualifying
employment was with an entity or institution within the Oklahoma State
System of Higher Education, State Board of Education, Oklahoma
Department of Career and Technology Education, Oklahoma School of
Science and Mathematics, Oklahoma Center for the Advancement of Science
and Technology, State Department of Rehabilitation Services, Oklahoma
State Regents for Higher Education, Department of Corrections, State
Department of Education, Oklahoma Board of Private Vocational Schools,
Board of Regents of Oklahoma Colleges, Oklahoma Student Loan Authority,
or the Teachers’ Retirement System of Oklahoma may transfer to the
Oklahoma Public Employees Retirement System credit for years of service
accumulated in the Teachers’ Retirement System.
(c) The member must file a notice with the Teachers’ Retirement System
and the Oklahoma Public Employees Retirement System of the member’s
election to transfer service credit. The notice must include a list of the years
to be transferred and the member’s social security number or other identifying

                                                                             31
information that may be required by either retirement system to locate and
evaluate the member’s service credit.
(d) Within thirty (30) days of receipt of notification of the member’s intent
to transfer service to the Oklahoma Public Employees Retirement System,
the Teachers’ Retirement System shall:
     (1) determine the sum of the employee and employer contributions
     applicable to the years of service sought to be transferred plus interest
     consistent with the actuarial assumptions adopted by the Board of
     Trustees for purposes of preparing the annual actuarial evaluation, and
     (2) if the member has a vested account with the Teachers’ Retirement
     System, calculate the present value of the service to be transferred,
     discounted according to the member’s age at the time of transfer.
(e) For purposes of this section, employer contributions apportioned to
each member for each fiscal year shall be determined as a percentage of
revenue received from the tax on natural gas and contributions from local
employers required by 70 O.S. 17-108.1 divided by the annual payroll of
active members of the Teachers’ Retirement System. Total revenue from
the tax on natural gas and local employers shall be apportioned to active
members as a percentage of the actuarial present value of future benefits
for active members divided by the actuarial present value future benefits
for all members of the Teachers’ Retirement System. The Board of Trustees
shall approve a separate schedule using this computation for each fiscal year.
(f) The computation defined in paragraph (2) of subsection (d) of this section
shall assume an unreduced benefit and be computed using interest and
mortality assumptions consistent with the actuarial assumptions adopted
by the Board of Trustees for purposes of preparing the annual actuarial
evaluation but shall not make any projections regarding future salary.
(g) Upon completion of the computation(s) defined in subsection (d) of this
section, the Teachers’ Retirement System shall notify the member and the
Oklahoma Public Employees Retirement System of the amount to be
transferred. Except as provided in subsection (b) of this section, said amount
shall be the greater of the product of paragraphs (1) and (2) of subsection
(d) of this section. For those members included in subsection (b) of this
section, the Teachers’ Retirement System shall transfer to the Oklahoma
Public Employees Retirement System is amount as calculated in paragraph
(d)(1) of this rule.
(h) Upon notification from the Oklahoma Public Employees Retirement
System that the requirements of the transfer have been completed, the
Teachers’ Retirement System shall, within sixty (60) days, remit to the
Oklahoma Public Employees Retirement System the lesser of the amount
calculated under subsection (f) of this section, or the amount certified by
32
the Oklahoma Public Employees Retirement System that is necessary to
effect said transfer.
(i) A former member of the Teachers’ Retirement System may redeposit
any previously withdrawn account for the purpose of transferring the former
member’s service credit to the Oklahoma Public Employees Retirement
System. The former member shall remit to the Teachers’ Retirement System
the amount of accumulated contributions the member has withdrawn plus
simple interest of ten percent (10%) per annum prior to making the election.
The deposits made by the former member will reestablish his or her account
in the Teachers’ Retirement System and that amount will become part of the
amount to be transferred as determined in subsection (d) of this section. If
the election is deemed invalid and the transfer is canceled, the accumulated
contributions plus interested remitted to the Teachers’ Retirement System
shall be returned to the member. No additional interest will be paid by the
Teachers’ Retirement System in such cases.
(j) All service credit accumulated by the member in the Teachers’ Retirement
System shall be canceled upon the transfer of any service credit. The member
shall forfeit all rights to retirement benefits or service credits in the Teachers’
Retirement System, and shall be considered to have withdrawn from the
Teachers’ Retirement System.
(k) If for any reason the member fails to satisfy the requirements of this
transfer, the election to transfer service credit shall be void and of no effect,
and the Oklahoma Public Employees Retirement System shall return all
monies previously remitted in the member’s behalf. The member’s account
in the Teachers’ Retirement System will be reestablished at the same level
as before the transfer was initiated.
715:10-5-7.3. Service credit transfers for TRS members who are
CLEET-certified employees of the University of Oklahoma and
Oklahoma State University
(a) A Teachers’ Retirement System member employed by the University of
Oklahoma and/or Oklahoma State University as a CLEET-certified police
officer may make an irrevocable written election to transfer his or her
membership to the Oklahoma Law Enforcement Retirement System if the
school’s governing board elects to participate in the Oklahoma Law
Enforcement Retirement System.
    (1) The member must have been employed by the school as a CLEET-
    certified police officer before the school’s governing board elected to
    participate in the Oklahoma Law Enforcement Retirement System.
    (2) The member’s election to transfer must be made within three (3)
    months following the employing school’s governing board’s election to
    participate in the Oklahoma Law Enforcement Retirement System.
                                                                                33
    (3) The transferring member shall cease accruing service credit in the
    Teachers’ Retirement System on the date of his or her irrevocable written
    election to participate in the Oklahoma Law Enforcement Retirement System.
(b) The Teachers’ Retirement System shall transfer to the Oklahoma Law
Enforcement Retirement System all of the transferring member’s TRS
records, as well as employee and employer contributions prior to the first
day of the month following the Teachers’ Retirement System’s receipt of the
member’s election to transfer.
(c) The member must pay the difference in the cost of the service credits
transferred by the teachers’ Retirement System and the cost of such service
credits in the Oklahoma Law Enforcement Retirement System
(d) For members electing to transfer to the Oklahoma Law Enforcement
Retirement System, all TRS service credits not transferred shall be canceled.
715:10-5-8. Revocation of $7,800 waiver
    Any member who elected to contribute on $7,800 prior to January 1,
1978, whose salary was more than $7,800 during the school years 1974-75
through 1978-79, may elect to make back contributions on the difference
between $7,800 and the member’s actual salary, not to exceed $10,000 for
each applicable school year, plus interest compounded annually at ten percent
(10%) per annum. Such payment shall be made prior to the official retirement
date of the member.
715:10-5-9. Re-establishing withdrawn service
    After returning to employment in the public schools of Oklahoma a
member may redeposit a withdrawn account to re-establish service previously
withdrawn from the system. For purposes of this section the following
shall apply:
    (1) A “classified” and “non-classified” member (except as noted in
    paragraphs 2 and 3 of this section) who has returned to public education
    employment and has established one full year (twelve calendar months)
    of creditable Oklahoma service, is eligible to redeposit withdrawn
    contributions. A redeposit of withdrawn contributions must include all
    applicable interest, which shall be computed at a simple interest rate of
    ten percent (10%) per annum from the date of the withdrawal to the
    date repayment is made.
    (2) Nonclassified members who voluntarily withdrew from membership
    in TRS, subsequent to July 1, 1990, without terminating employment
    in the public schools of Oklahoma, are not eligible to return to
    membership unless they become employed in a classified position that
    requires membership as a condition of employment (See OAC
    715:10-1-3).
34
   (3) Non-classified members who voluntarily withdrew from membership
   in TRS, between July 1, 1984 and June 30, 1990, without terminating
   employment in the public schools of Oklahoma, are not eligible to
   redeposit or purchase past service for any period of employment between
   the date of the membership period covered by the withdrawn account
   and the date of return to membership in TRS.
   (4) Non-classified members who voluntarily cease monthly
   contributions to TRS while continuing to be employed in an eligible
   position shall be considered to have withdrawn from membership for
   the purpose of paragraphs 2 and 3 of this section.
   (5) Requests for redeposits should be made to the Teachers’ Retirement
   System in writing. The request must include the name in which the
   service was rendered, the Social Security number and the number of
   years withdrawn.
   (6) Documentation of this service is on file in the Teachers’ Retirement
   System office and will be verified by the staff. Service that cannot be
   documented by researching microfilm records of the member’s prior
   service account or the monthly remittance reports from the employing
   school must be purchased under the rule for establishing service prior
   to membership.
   (7) Repayments of withdrawn accounts may be made by active
   contributing members of TRS in a single lump sum, which includes the
   withdrawn contributions and all applicable interest, or in installment
   payments. Such installment payments may be paid in 12-month
   increments, but shall be completed within 60 months. Installment
   payments shall include interest based upon actuarial assumptions adopted
   by the TRS Board of Trustees. Such installment payments shall be
   completed before the member’s effective retirement date. No proration
   is allowed for partial payments. If payments terminate prior to completion
   of the installment agreement, the amount paid by the member shall be
   refunded without interest.
   (8) Redepositing of withdrawn accounts must be completed, and
   payment made to TRS, within sixty (60) days of termination of
   employment in the public schools of Oklahoma, but one (1) month prior
   to the effective date of a member’s official retirement date.
   (9) No person may make a redeposit to a member’s account after the
   death of the member.
715:10-5-10. Military service credit
    An active contributing member of TRS may purchase credit for active
duty service in the Armed Forces of the United States of America. The

                                                                          35
member must have received an honorable discharge from the Armed Services
to qualify for military service credit. Active duty is defined as that time a
member served in the Armed Forces of the United States of America from
the date inducted to the date of separation. (Time spent between enlistment
and induction, or other time spent as a civilian between military service
periods, will not be counted as military service.) Credit for military service
shall not exceed the number of years obtained when the total months of
service are applied to calendar years (January1 to December 31 periods).
Therefore, thirty-six (36) months of military service cannot count for more
than three (3) years of TRS membership; forty-eight (48) months cannot
count for more than four (4) years; etc.
715:10-5-11. Military service limited to maximum of five years
    Credit for military service is limited to a maximum of five (5) years.
This includes service both before and after July 1, 1943. No credit may be
given for any year of military duty which duplicates any other credit already
granted or in which a year of creditable service is available for service in
the public schools of Oklahoma. The member must have two (2) years of
creditable Oklahoma service after the years of military service credit for
each year to be purchased. Out-of-state service credit cannot be counted as
employment in obtaining military service credit.
715:10-5-12. Military service performed prior to July 1, 1943
[REVOKED]
715:10-5-13. Military service performed after July 1, 1943
     Military service performed after July 1, 1943, may be purchased for
any school year in which the member served on active duty for a minimum
of six (6) months or 180 days, whichever affords the maximum benefit to
the member. Time spent as a reservist at summer camps, or weekend-duty
obligations, shall not be counted.
715:10-5-14. Military service combined with Oklahoma service
    Active duty service after July 1, 1943 can be combined with Oklahoma
service performed in the same school year to obtain one year of service.
The combined service must total one hundred eighty (180) days. If the
Oklahoma service to be combined with military service was not as an active
contributing member of TRS, the member must have worked a minimum of
ninety (90) school days in Oklahoma public schools. Any military service
combined with Oklahoma service counts as one (1) year toward the maximum
service allowed for military service credit.


36
715:10-5-15. Application for military service
    Members desiring to obtain credit for military service credit should
request in writing to be billed for the cost of the credit. Included with the
request should be a certified copy or copies of the member’s service record
showing the dates and nature of the member’s active military duty [Form
DD-214, Form DD-217 or VA Certification of Active Duty is the type of
certification accepted as documentation of active duty military service].
TRS may require the member to make available to it such other evidence as
may be required to establish the member’s eligibility for military service.
When the system determines the duty eligible for credit, it shall bill the
member for the years of eligible credit. If the member becomes eligible for
additional credit after the billing by TRS it shall be the responsibility of the
member to request a second billing. Payment must be made by the date
shown on the billing statement to avoid additional charges that may be
required after the expiration of the billing date.
715:10-5-16. Cost to purchase military service
(a) The purchase price for each year of military service defined in OAC
715:10-5-13 shall be based on the actuarial cost as defined in OAC 715:10-
5-4, except as provided in paragraph (b) of this rule. All payments for such
service must be made while an active contributing member of TRS, or within
sixty (60) days of termination of employment in the public schools of
Oklahoma, but must be completed prior to the effective date of retirement.
No person may purchase military service credit after the date of death of the
member.
(b) In the event an active contributing member is called to active military
duty, he or she shall be allowed to make contributions for benefits and
service credits with respect to “qualified military service”, in accordance
with Section 414(u) of the Internal Revenue Code of 1986 and the Uniformed
Services Employment and Re-employment Rights Act of 1994.
715:10-5-17. Adjustment for military service after retirement
    All credit for active military duty perform after July 1, 1943, must be
purchased prior to the official retirement date of the member. No credit or
adjustment will be made to a member’s account after retirement unless
evidence points to a clear and convincing error on the part of TRS staff.
The Executive Secretary will rule on the circumstances when such cases
arise. Credit for active military duty will be accepted for eligible service
prior to July 1, 1943, when evidence of such service is provided to TRS.
An adjustment in the monthly retirement benefits of the member will be
made beginning with the next check due if proper documentation is received

                                                                             37
by TRS by the 15th of the month. The adjustment in benefits shall not be
retroactive.
715:10-5-18. Other restrictions on military service (Amended 2005)
     Military service performed after the last year of Oklahoma membership
service shall not qualify as military service. A member who returns to
Oklahoma public education employment after serving in the military shall
purchase that military service in the same manner as a new member of
TRS: i.e., the member must have two (2) years of Oklahoma service after
the military service for each year of military service purchased. No military
service can be used to meet the minimum requirement of five (5) full years
of employment in the public schools of Oklahoma to qualify for vesting and
retirement benefits.
715:10-5-19. Out-of-state service credit
     An active, contributing member of TRS may obtain out-of-state service
credit for qualified employment in public educational institutions outside
the State of Oklahoma which are maintained in whole or in part by one of
the states of the United States of America, the territories of the United States
of America, or by a Military Dependent School operating under the
Department of Defense of the United States of America, or while in the
Peace Corps, providing he or she is not receiving and is not eligible to
receive retirement credit or benefits from said service in any other public
retirement system of this state, or any other state or territory of the United
States. Qualifying employment requirements shall be the same as in the
public schools of Oklahoma. Employment service deemed ineligible for
membership service in Oklahoma shall not qualify for out-of-state service
credit under any conditions. Time of employment and salary requirements
for service credit for out-of-state shall be the same as membership service
and prior service credit in Oklahoma (see subchapter 3 of this chapter).
The member’s out-of-state service must have been covered by and credited
in the employing state’s public retirement system to be eligible for service
credit in TRS.
715:10-5-20. Out-of-state service performed prior to July 1, 1943
[REVOKED]
715:10-5-21. Out-of-state service performed after July 1, 1943
     Qualifying out-of-state service credit performed after July 1, 1943 may
be purchased by any member of TRS where the member was employed as a
full-time employee for a minimum of six (6) months or more during any one
(1) school year, subject to the restrictions in OAC 715:10-5-19.

38
715:10-5-22. Out-of-state service limited to maximum of five years
    Credit for out-of-state service is limited to a maximum of five (5) years.
This includes credit for service both before and after July 1, 1943. No credit
may be given for any year of out-of-state service which duplicates any
other credit already granted or in which a year of creditable service is
available for service in the public schools of Oklahoma. The member must
have two (2) years of creditable Oklahoma service after each year of out-
of-state service purchased. Military service credit cannot count as
employment in obtaining credit for out-of-state service credit.
715:10-5-23. Out-of-state service combined with Oklahoma service
     Qualifying out-of-state service after July 1, 1943 can be combined with
Oklahoma service performed in the same school year to obtain one year of
service. The combined service must total one hundred twenty (120) days of
employment, excluding preschool conference, holidays or other days when
the member was not required to report to work. If the Oklahoma service to
be combined with out-of-state service was not as an active contributing
member of TRS, the member must have worked a minimum of ninety (90)
days in Oklahoma public schools. Under no condition may out-of-state
service performed in one school year be combined with Oklahoma service
in a different school year. Any service combined with Oklahoma service
counts as one (1) year toward the maximum service allowed for out-of-state
service credit.
715:10-5-24. Continuous, consecutive out-of-state service
    Continuous consecutive out-of-state service performed in two (2) school
years may be combined to receive a year of out-of-state service credit.
Continuous consecutive service shall mean service performed as a full-time
employee of a public school of another state without any break in employment
between one school year and the next. A member employed the second
semester of one school year and the first semester of the next school year
may qualify for one (1) year of out-of-state credit. Under no condition shall
a member receive more credit for out-of-state service than the member would
have accrued had the service been performed in the public schools of
Oklahoma.
715:10-5-25. Application for out-of-state service
    Members desiring to obtain credit for out-of-state service credit should
request in writing TRS Form 120 Verification of Out-of-State Service.
Included with the request should be a list of all employment in the public
schools of other states. (This will assist TRS staff in forwarding the
appropriate number of application forms.) Verification forms must be

                                                                           39
completed by the state retirement system for the employing state. TRS may
require the member to make available to it such other evidence as may be
required to establish the member’s eligibility for out-of-state service. When
the system determines the service eligible for credit, it shall bill the member
for the years of eligible credit. If the member becomes eligible for additional
credit after the billing by TRS it shall be the responsibility of the member to
request a second billing. Payment must be made by the date shown on the
billing statement to avoid additional charges that may be required after the
expiration of the billing date.
715:10-5-26. Cost to purchase out-of-state service
     The purchase price for each year of out-of-state service defined in OAC
715:10-5-21 shall be based on the actuarial cost as defined in OAC
715:10-5-4. All payments for such service must be made while an active
contributing member of TRS, or within sixty (60) days of termination of
employment in the public schools of Oklahoma, but must be completed
prior to the effective date of retirement. No person may purchase out-of-
state service credit after the date of death of the member.
715:10-5-27. Other restrictions on out-of-state service (Amended 2005)
     Out-of-state service performed after the last year of Oklahoma
membership service shall not qualify as out-of-state credit. A member who
returns to Oklahoma public education employment after working out-of-
state shall purchase that out-of-state service in the same manner as a new
member of TRS: i.e., the member must have two (2) years of Oklahoma
service after the out-of-state service for each year of out-of-state service
purchased. No out-of-state service or salaries shall be utilized for the
calculation of a member’s final average salary at retirement. No out-of-
state service can be used to meet the minimum requirement of five (5) full
years of employment in the public schools of Oklahoma to qualify for vesting
and retirement benefits.
715:10-5-28. Sick leave service credit (Amended 2005)
    A member, who has one hundred twenty (120) days of accumulated
unused sick leave days at retirement shall receive one (1) year of additional
credit toward retirement. A member who has less than one hundred twenty
(120) days of unused sick leave at retirement may add such days to days
employed by the public schools of Oklahoma in obtaining an additional
year of credit toward retirement. It is the responsibility of the member to
obtain verification of sick leave from the employing school prior to the
member’s official retirement date. No adjustment in retirement benefits shall
be made for sick leave documented after the member’s retirement date. Sick

40
leave cannot be combined with out-of-state, military service or any non-
public Oklahoma school employment to obtain additional credit toward
retirement. Service credit obtained by unused sick leave may be used in
qualifying for retirement benefits under the “Combination of 80" and
“Combination of 90” rule. For any member who joined TRS prior to July 1,
1995, the year of credit received for sick leave shall be treated as service
earned prior to July 1, 1995. Unused sick leave may not be used to vest an
account or to meet the minimum requirement of five (5) years of employment
in the public schools of Oklahoma to qualify for retirement benefits. Sick
leave accumulated while employed by any employer other than a public
school as defined by 70 O.S. 17-101 shall not be counted for purposes of
obtaining additional retirement credit under this rule.
715:10-5-29. Verification of accumulated sick leave
     Sick leave can only be verified on termination of employment, or when
filing a retirement contract. The verification must be made by the
superintendent, financial officer, clerk of the board of education, or treasurer
of the school district who must attest to the accuracy of the records used to
make the verification. The verification must be based on records maintained
and available at the local school and must be in keeping with local board
policy. TRS will accept the employer’s sick leave policy of awarding sick
leave, however, in no instance will TRS accept more than fifteen (15) days
of unused accumulated sick leave for any one (1) school year. An employer
may not grant additional sick leave for the purpose of establishing, or adding
to, the member’s total service credit. Sick leave donated by other employees
cannot be added to a member’s sick leave record for purposes of this rule.
The System may require the employing school to make available to it such
other evidence as may be required to establish the member’s eligibility for
sick leave credit. Unused sick leave can be accumulated from the date of
employment in the public schools of Oklahoma, or August 1, 1959, whichever
occurred last, to the date of termination of employment in the public schools
of Oklahoma. Reimbursements received by a member for unused sick leave
accumulated prior to retirement shall not be considered as “regular annual
compensation” as defined in OAC 715:10-13-1 and not subject to TRS
contributions as provided for in Subchapter 13 of this chapter. (NOTE:
Employers are encouraged to establish a system of tracking total days earned
and used, even when the total days credited exceed the maximum limit set
for local policy.)
715:10-5-30. Ten-year averaging of sick leave
    When a member cannot obtain documentation of accumulated sick leave
because records at the employing school(s) are not available, TRS will
                                                                             41
calculate an average using the last ten (10) years of employment. The
number of days absent each year during the last ten (10) years shall be
averaged to determine the average number of sick leave days used each
year. The average sick leave used will be subtracted from a standard ten
(10) days per school year and the difference multiplied by the total years of
creditable Oklahoma membership service.
715:10-5-31. Documentation of service
    TRS reserves the right to require documentation of all service years
credited to a member’s account.
    (1) Members who are claiming eligible service after the school year in
    which it was actually rendered must verify the claim on the appropriate
    Teachers’ Retirement System form. The specific documentation required
    will depend on the type of service being purchased. Under no
    circumstances will affidavits be accepted as documentation.
    (2) The ultimate responsibility for obtaining verification of service is
    that of the member.
    (3) The correctness of the service must be certified on the appropriate
    form by an official of the school where the service was rendered. This
    can be done by the superintendent, business manager, secretary of the
    school board, or treasurer of the school board at the time the certification
    is made. The certification must be based upon existing records
    maintained by the school and certified copies of these records must be
    attached to the application.
    (4) TRS will also accept federal or state tax records, or Detailed
    Earnings Information records from the Social Security Administration,
    as supporting documentation of employment where records cannot be
    obtained from the employing school, or where the records available are
    not deemed to be conclusive.
    (5) No credit may be granted unless clear and convincing proof of
    eligible service has been provided from a source other than the applicant
    member. A conclusion that clear and convincing proof has not been
    provided should in no way be construed as a challenge to the member’s
    or any other affidavit’s truthfulness and integrity.
    (6) The executive secretary of TRS shall be empowered to determine
    the completeness of documents submitted by a member in establishing
    service credit.
715:10-5-32. Roll-overs from other qualified plans or conduit IRAs
    Credit for past service, including redeposits of withdrawn Oklahoma
service, defined in this subchapter may be purchased with roll-overs from

42
another retirement plan if allowed by the Internal Revenue Code. This
includes “conduit IRAs” which have been established with funds received
from a 401(a) plan distribution for the purpose of holding the funds separate
until a rollover can be consummated, traditional IRAs, 403(b) tax-deferred
annuity plans, 401(k) and 457 deferred compensation plans. For a roll-over
payment to be accepted by Teachers’ Retirement the following conditions
must be met:
    (1) The member should contact Teachers’ Retirement to obtain a billing
    statement for the service to be purchased and convey the intent to make
    total or partial payment by a roll-over.
    (2) The member must obtain written documentation from the originating
    institution verifying the amount of the distribution and that the monies
    came from a qualified plan under the Internal Revenue Code.
    (3) The roll-over check from the qualified plan must be made payable
    to the Oklahoma Teachers’ Retirement System, For Benefit Of and the
    member’s name. The member must deliver the check to Teachers’
    Retirement with the required documentation and the billing statement
    for the service to be purchased. Teachers’ Retirement will only accept
    payment for the amount of the billing statement. If the distribution
    from the originating institution is greater than the billing, the originating
    institution must be willing to generate a check payable to Teachers’
    Retirement for the exact amount of the billing statement. If the
    distribution from the originating institution is less than the billing, a
    personal check or cashier’s check must accompany the roll-over
    proceeds, or the member may pay the balance through an installment
    payment plan. Payments in excess of the billing will not be accepted.
    (4) A receipt for the payment will be issued after Teachers’ Retirement
    has determined all documentation and the appropriate amount of funds
    have been received.
    (5) Roll-overs must comply fully with the Internal Revenue Code and
    applicable Internal Revenue Service regulations.
715:10-5-33. Credit for Family Leave
(a) A full-time teacher who takes ninety (90) or fewer days of leave without
pay to care for his or her child during the first year of the child’s life shall
receive retirement service credit for the days taken as leave without pay if:
    (1) the employing district certifies to the Teachers’ Retirement System
    that the employee’s leave without pay was taken with the proper approval
    of the employing district’s Board of Education; and
    (2) the Teachers’ Retirement System receives payment for the actuarial
    cost of the service credit for the days taken as leave without pay;

                                                                              43
(b) The teacher shall notify his or her employer and the Teachers’ Retirement
System in writing within thirty (30) days from the date he or she returns to
work that he or she will pay the actuarial cost of the service credit for the
days taken as leave without pay.
(c) The teacher shall have up to twelve (12) months from the date he or she
returns to work to pay the actuarial cost for the days taken as leave without pay.
715: 10-5-34. Credit for Adjunct Service
(a) A Teachers’ Retirement System member who was employed in an adjunct
position in an institution under The Oklahoma State System of Higher
Education before joining the Retirement System may purchase service credit
for that employment.
(b) The member may purchase one year of service credit for each school
year in which he or she worked a minimum of eighteen (18) credit hours in
such an adjunct position, up to a maximum five (5) years. Such purchased
service credit shall be considered contributing service for vesting and retirement.
(c) The purchase price for eligible adjunct service credit shall be based
upon actuarial cost as defined in OAC 715:10-5-4. All payments for such
service credit must be made while the member is an active contributing
member or within sixty (60) days after the end of the member’s employment
in the public schools in Oklahoma, and must be completed before the
member’s effective retirement date. No person may purchase service credit
for such adjunct employment after the member’s death.
(d) The payments for such service credit may be made in one lump sum or
in equal monthly installments for up to sixty (60) months, as provided in
OAC 715:10-5-4 (9).
715:10-5-35. Employer pick-up of purchase of service credit
(a) The purpose of OAC 715:10-5-35 is to provide a pick-up of employee
contributions by participating employers under Section 414(h)(2) of the
Internal Revenue Code of 1986 for contributions that are made for the
purpose of purchasing service credit or re-establishing withdrawn service
under Chapter 10, Subchapter 5 of these Rules. Employers may elect to
participate in the pick-up of employee contributions made for the purpose
of purchasing service credit or re-establishing withdrawn service by a
resolution adopting the provisions of this regulation.
(b) An active member of the Teachers’ Retirement System (employed by a
participating employer) who elects to purchase or re-establish service credit
under any applicable provision of Chapter 10, Subchapter 5 of these Rules
through installments in accordance with a schedule established by the Board
of Trustees, may elect to do so through a binding, irrevocable payroll
reduction authorization.
44
(c) An active member of the Teachers’ Retirement System, having executed
a binding, irrevocable payroll reduction authorization with respect to any
such contributions, shall not be entitled to any option of choosing to receive
the contributed amounts directly instead of having them paid by the employer
to the Teachers’ Retirement System. Such contributions shall be remitted to
the Teachers’ Retirement System and credited to the member in the same
manner as all other employee contributions. Such contributions, although
designated as employee contributions, will be paid by the employer in lieu
of contributions by the employee. The contributions so assumed shall be
treated as tax-deferred employer “pick-up” contributions pursuant to the
United States Internal Revenue Code Section 414(h)(2), subject to a favorable
letter ruling by the Internal Revenue Service.
(d) An active member of the Teachers’ Retirement System may elect to pay
all or part of any contribution to purchase or re-establish service credit
through such payroll reduction. The amount by which an employee’s
compensation will be reduced and the duration of the reduction shall be
specified on the authorization form prescribed by the Board of Trustees and
the amounts and duration shall be irrevocable and binding once made.
Prepayment of amounts covered by the authorization is not permitted.
However, nothing herein shall prevent a member from paying any amounts
not covered by the authorization with after-tax dollars, provided that any
such after-tax payments by an employee of a participating employer shall
be paid directly by the employee to the Teachers’ Retirement System, as
opposed to being paid to or withheld by the participating employer. An
employee of non-participating employer may purchase service credit or
re-establish withdrawn service by making after-tax payments directly to the
Teachers’ Retirement System.(e) No such payroll reduction shall begin
unless and until the member executes the payroll reduction authorization
described below on a form prescribed by the Board of Trustees. The Board
of Trustees will send such form to the treasurer or other disbursing officer
of the participating employer. After receiving the binding, irrevocable payroll
reduction authorization, the treasurer or other disbursing officer of each
participating employer shall reduce the member’s regular annual
compensation by the authorized amount and remit these contributions to
OTRS, in addition to (but separate from) the mandatory contributions from
the member’s regular annual compensation pursuant to 70 O.S., §17-116.2
and OAC 715:10-13-3. The participating employer shall continue to make
such reductions for the number of months specified on the form and shall
treat these reductions as picked-up contributions.



                                                                            45
(f) All such payroll reductions, including the amounts and the duration
specified, shall be binding and irrevocable upon the member’s execution of
the prescribed form.
(g) Notwithstanding the above, such reductions will cease only after the
authorization has expired by its terms or upon any of the following events:
    (1) The member’s death. In the event of a member’s death, the designated
    beneficiary shall have the option of paying the remaining amount owed
    (using after-tax dollars) within six (6) months of the member’s death. If
    the balance is not paid, the beneficiary shall be entitled to prorated
    credit for that portion of the additional contributions actually made for
    service purchases prior to the member’s death. If there is any remaining
    amount owed with respect to a redeposit of contributions, the designated
    beneficiary will be reimbursed for those redeposits which had already
    been paid at the time of the member’s death. A beneficiary may not
    make payments for a purchase of service credit or a re-deposit of
    contributions if such a purchase or re-deposit had not been initiated by
    the member prior to the member’s death.
    (2) The termination of the member’s employment. In this event, the
    member shall have the right to pay the remaining amount owed (using
    after-tax dollars) within six (6) months of the member’s termination of
    employment, but payment must be completed one (1) month prior to the
    effective retirement date of the member. If the member retires and does
    not pay the entire remaining amount, the member shall be entitled to
    prorated service credit for those payments actually made for service
    purchases. If there is any remaining amount owed with respect to a
    redeposit of contributions, the member shall be reimbursed for those
    redeposits which had already been paid at the time of the member’s
    termination. In the situation where a terminated member becomes
    employed by another employer participating in OTRS, the member may
    elect to reinstate or not reinstate his authorization with the new employer.
    (3) For purposes of (1) and (2) above, after-tax contributions shall
    only be received to the extent allowed by section 415 of the Internal
    Revenue Code.
(h) In no event shall the member receive a return of the payroll reductions
made hereunder, except as a refund together with all other contributions, as
provided in OAC 715:10-11-1 et seq. or as a refund of a redeposit of
contributions as provided in subsection (g)(2) herein.
(i) Payroll reductions and installment agreements hereunder shall last no
longer than sixty (60) months.



46
      Subchapter 7. Membership Vesting and Termination

Section
715:10-7-1.      Vesting of membership in TRS
715:10-7-2.      Limitation of benefits to an inactive, vested member
715:10-7-3.      Termination because of absence
715:10-7-4.      Extension of TRS membership after absence
715:10-7-5.      Retired members
715:10-7-6.      Termination of a non-eligible person
715:10-7-1. Vesting of membership in TRS
     Members who have accumulated five (5) or more years of creditable
service in the public schools of Oklahoma, on which retirement contributions
have been remitted, and whose account had not closed prior to July 1, 2003,
in accordance with 70 O.S. § 17-103(6) or OAC 715:10-7-3, shall be granted
an indefinite extension of membership in TRS. Such membership is vested
and shall remain open until the member retires or the contributions are
voluntarily withdrawn. Military and out-of-state service shall not be included
in the five (5) years required for vesting. Any year of service obtained by
the use of accumulated unused sick leave cannot be included in the five (5)
years required for vesting. Any member who joins TRS after July 1, 1991,
shall be required to have five (5) full years of membership as a contributing
member of the System. For members who join after July 1, 1991, Oklahoma
service purchased after membership will not be counted for “vesting”
purposes.
715:10-7-2. Limitation of benefits to an inactive, vested member
    A member who has a vested account, but who terminates employment
and no longer remits contributions, has an “inactive-vested” account. An
inactive-vested member is not entitled to the following:
    (1) Statutory death benefit payable to the beneficiaries of an active
    member.
    (2) Participation in the Teachers’ Retirement System tax-sheltered
    annuity program.
    (3) Option to elect, by the member’s spouse, retirement benefits in lieu
    of a lump sum payment of account balance at the member’s death.
    (4) The purchase of any additional past service credits.
    (5) Insurance coverage from the State and Education Employees Group
    Health Insurance Program, unless proper application is made for such
    coverage within thirty (30) days of termination of employment. (See
    Subchapter 23 of this chapter for more information about group health
    insurance.)
                                                                           47
715:10-7-3. Termination because of absence
    Membership in the Teachers’ Retirement System shall terminate if the
member ceases to be an active contributing member for a period of five (5)
consecutive school years unless the member has five (5) or more years of
creditable service in the public schools of Oklahoma and does not voluntarily
withdraw his account.
    (1) Membership rights shall be protected during an absence of not more
    than five (5) years, in any period of six (6) consecutive years, for non-
    vested members; (i.e., for members who have less than five (5) years of
    contributory employment in the public schools of Oklahoma).
    (2) If employment terminates with the close of the school term, the five
    (5) year period of absence shall begin with the next fiscal year. If
    employment ends during the school term, the period of absence shall
    begin the first day of the month that follows termination.
    (3) After a non-vested member is absent from employment in the public
    schools of Oklahoma for five (5) years during any period of six (6)
    consecutive years, the member’s Teachers’ Retirement System account
    shall be closed with no rights to monthly retirement benefits. The
    member’s contributions should be withdrawn as no interest accrues on
    accounts closed because of absence from employment.
    (4) A member whose absence exceeds five (5) years due to military
    service shall be granted an eighteen (18) month extension, from date of
    discharge, to re-enter Oklahoma public education employment in order
    to retain membership in Teachers’ Retirement System.
715:10-7-4. Extension of TRS membership after absence
    A member with less than five (5) years of creditable Oklahoma
membership service, who has been absent from such service for less than
five (5) years during any period of six (6) consecutive years, may extend
TRS membership by returning to fulltime employment for one (1) school
year.
    (1) If a five (5) year period of absence ends with the close of a school
    year, membership shall terminate June 30 of the corresponding fiscal
    year. Except that, membership shall not terminate if the member returns
    to fulltime Oklahoma public schools employment no later than September
    30 the same calendar year.
    (2) If the five (5) year period of absence terminates at any other time
    during the school year, membership shall terminate the last day of the
    last month of employment. Membership shall not terminate if the member
    returns to employment in the Oklahoma public schools no later than the
    last day of the succeeding calendar month.

48
    (3) Unless otherwise specified, a ten (10) month school term shall be
    considered a school year. In adding fractions to equal a year of
    employment, membership shall extend five (5) years from the close of
    the school year during which the member worked the first fractional
    part.
    (4) A member whose account has closed, but has not withdrawn
    contributions, may apply for re-instatement after returning to
    employment in the public schools of Oklahoma and completing one (1)
    full year (twelve calendar months) as a contributing member of TRS.
    Upon completion of one (1) full year the member’s account will be
    restored to full status with all rights provided to other members.
715:10-7-5. Retired members
     A retired member receiving a service retirement annuity may not be
reinstated to active membership, which was terminated as a result of
retirement, nor receive credit for additional membership service, except as
provided in OAC 715:10-17-13. Disability retirement may be reinstated
under certain conditions (see OAC 715:10-15-21).
715:10-7-6. Termination of a non-eligible person
    A member who is employed by a public education entity, in a position
which is not eligible for membership, does not meet the hours-per-day
minimum, and/or salary requirements, must terminate membership. All
contributions remitted for a non-eligible person will be refunded with no
interest. If an eligible member’s employment is changed to a status that no
longer qualifies for membership in TRS, the member’s account will be
terminated in the same manner as if the member has withdrawn from
employment in the public schools of Oklahoma.




                                                                        49
                    Subchapter 9. Survivor Benefits

Section
715:10-9-1.       Return of contributions when death occurs before
                  retirement
715:10-9-2.       Death benefit when death occurs before retirement
715:10-9-3.       Monthly annuity in lieu of death benefit
715:10-9-4.       Death benefit when death occurs after retirement
715:10-9-5.       Payments to beneficiaries of deceased members
715:10-9-6.       Probate Waivers
715:10-9-7.       Beneficiary designation following a divorce
715:10-9-1. Return of contributions when death occurs before
retirement
     Upon the death of a member, who has not retired, the designated
beneficiary, or estate (if there is no designated beneficiary, or if the designated
beneficiary predeceases the member) shall receive the member’s total
contributions, plus one hundred percent (100%) of all interest earned through
the end of the fiscal year. Interest shall cease to accumulate with the payment
of any portion of the member’s contributions and interest to any beneficiary.
Interest on death claims shall be calculated according to the following
schedule: [See OAC 715:10-9-7, if the member and beneficiary were
divorced before death].
     (1) July 1, 1968, through June 30, 1977, four and one-half percent (4
     1/2%), compounded annually.
     (2) July 1, 1977, through June 30, 1981, seven percent (7), compounded
     annually.
     (3) July 1, 1981, to present, eight percent (8%), compounded annually.
715:10-9-2. Death benefit when death occurs before retirement
(Amended 2005)
(a) A death benefit of $18,000 shall be paid by TRS to the designated
beneficiary upon the death of an in-service member. If there is no designated
beneficiary, or if the designated beneficiary predeceases the member, the
member’s estate shall receive the death benefit. [See OAC 715:10-9-7, if
the member and beneficiary were divorced before death].
(b) “In-service” membership shall include:
    (1) Employees in an active-member status within the Oklahoma public
    education system at the time of death.
    (2) Members who have been, or would have been, rehired, automatically
    or otherwise, for the next school year when death occurs during the
    summer break.
50
    (3) Members on sick leave, for up to one (1) full year, who would be
    returned to employment by the employer upon satisfactory recovery.
(c) “In-service” membership shall not include:
    (1) Employees who are not eligible for membership in TRS.
    (2) Any member in an in-active employment status, except as noted
    above in paragraph (b).
    (3) Any member who resigned as an employee of the public schools of
    Oklahoma.
715:10-9-3. Monthly annuity in lieu of death benefit
     The designated beneficiary of an active contributing member, who
qualified for service retirement, may elect to receive—in lieu of the return
of contributions and the $18,000 death benefit outlined above—the retirement
benefit to which the deceased member would have been entitled at the time
of death under the Option 2 retirement plan. To qualify for this option, the
designated beneficiary must have been named as the primary beneficiary at
the time of the member’s death (see OAC 715:10-15-1 and 10-15-2). This
option is only available when the member has designated one individual as
the designated beneficiary. [See OAC 715:10-9-7, if the member and
beneficiary were divorced before death].
715:10-9-4. Death Benefit when death occurs after retirement
    Upon the death of a retired member who contributed to the Retirement
System, TRS shall pay a $5,000 death benefit to the retiree’s designated
beneficiary. If the retired member had designated more than one primary
beneficiary, the death benefit shall be paid in equal shares to each primary
beneficiary. If there is no beneficiary the retiree’s estate shall receive this
death benefit, unless waived pursuant to OAC 715:10-9-6. This benefit is
paid in addition to any payment provided for by the retirement option elected
by the member at the time of retirement. (Note: The $5,000 death benefit
does not apply to persons receiving payments under the “Special $150 Per
Month Plan”.) [See OAC 715:10-9-7, if the member and beneficiary were
divorced before death].
715:10-9-5. Payments to beneficiaries of deceased members
   Death benefit payments will be made by TRS to the beneficiary(s) of
each deceased member as expeditiously as possible. The following
documents must be provided to TRS before payment can be made.
   (1) The designated beneficiary(s) must provide a certified copy of the
   death certificate and complete a Claimant’s Affidavit Form.
   (2) When no designated beneficiary has been named or the designated
   beneficiary(s) predecease(s) the member, and no waiver is sought,

                                                                            51
     permitted or allowed pursuant to OAC 715:10-9-6, the executor/
     administrator of the member’s estate must provide a certified copy of
     the death certificate, complete Claimant’s Affidavit Form, and provide
     Letters of Testamentary or other documentation of court appointment.
     (3) Payments to minor children named as beneficiaries shall be made
     in accordance with applicable Oklahoma statutes. However, all such
     payments shall be distributed in accordance with the requirements of
     Section 401(a)(9) of the Internal Revenue Code and any regulations
     under that section. [See OAC 715:10-9-7, if the member and beneficiary
     were divorced before death].
715:10-9-6. Probate Waivers
(a) In the event a member dies, leaving no living beneficiary or having
designated his estate as beneficiary, the System shall require the judicial
appointment of an administrator or executor for the member’s estate prior
to payment of any benefits or unpaid contributions. However, this
requirement may be waived by the System for any benefits or unpaid
contributions in the amount of $5,000.00 or less, upon presentation of:
    (1) the member’s valid Last Will and Testament;
    (2) an Affidavit of Heirship naming all heirs to the member’s estate
    which must state:
        (A) that the value of the deceased member’s entire estate is subject
        to probate, and that the estate wherever located, less liens and
        encumbrances, does not exceed Five Thousand Dollars ($5,000),
        including the payment of benefits or unpaid contributions from the
        System;
        (B) a description of the personal property claimed (including the
        death benefit or unpaid contributions or both), together with a
        statement that such personal property is subject to probate; and
        (C) a claim by each individual claiming heir identifying the amount
        of personal property that the heir is claiming from the System, and
        that the heir has been notified of, is aware of and consents to the
        identified claims of all the other claiming heirs of the deceased
        member pending with the System.
    (3) a Hold Harmless Agreement signed by all heirs;
    (4) a Corroborating Affidavit from someone other than an heir who is
    familiar with the deceased member; and
    (5) proof of payment of expenses of last sickness, death and burial,
    including all medical, hospital and funeral expenses.
(b) The Executive Secretary of the Teachers’ Retirement System shall retain
complete discretion in determining which requests for probate waiver may

52
be granted or denied, for any reason. If there is any question as to the
validity of any document herein required, the judicial appointment
requirement shall not be waived.
(c) After paying any death benefits or unpaid contributions to any claiming
heirs as provided by this section, the Teachers’ Retirement System is
discharged and released from any and all liability, obligation and costs to
the same extent as if the System had dealt with a personal representative of
the deceased member. The System is not required to inquire into the truth of
any matter specified in this section or into the payment of any estate tax
liability.
715:10-9-7. Beneficiary designation following a divorce
    Following a divorce between an active or retired member and his or her
spouse whom the member had designated as a beneficiary, the former spouse
shall be treated as having predeceased the member for purposes of the death
benefit payment and/or a return of contributions from the deceased member’s
Teachers’ Retirement System account, unless the member has renamed the
former spouse as a designated beneficiary. (See required by 15 OS §178).




                                                                         53
Subchapter 11.       Withdrawal from Membership and Refund of
                     Deposits

Section
715:10-11-1.    Withdrawal from membership by an eligible person
715:10-11-2.    Withdrawal of optional membership while still employed
715:10-11-3.    False affidavits
715:10-11-4.    Refunds of contributions
715:10-11-5.    Termination of rights to benefits
715:10-11-6.    Reinstatement of an account
715:10-11-7.    Rollovers from OTRS to other eligible retirement plans
715:10-11-1. Withdrawal from membership by an eligible person
    Any member who terminates employment in the public schools of
Oklahoma may voluntarily withdraw from membership in the Teachers’
Retirement System under the following conditions:
    (1) The Teachers’ Retirement System law provides that members who
    leave Oklahoma public education employment are eligible to withdraw
    the contributions made to their TRS account four (4) months after
    termination. A former employee may submit application for the proceeds
    of the account after the last day physically worked. Withdrawal payment
    can be made no earlier than four (4) months after the last public school
    employment. There are no exceptions to this waiting period. Withdrawal
    forms may be obtained by contacting the TRS office. Last day of
    employment shall be defined as:
         (A) For teachers - the actual last teaching day in the classroom;
         (B) For other personnel - the actual last day on the job.
    (2) Application for Withdrawal must be received by Teachers’
    Retirement System no later than the first day of the fourth month of the
    required waiting period in order to be approved by the Board of Trustees
    that same month. Written verification from the school’s payroll
    department of a member’s termination of employment and/or non-
    resumption of teaching contract must be on file before processing the
    Application for Withdrawal.
    (3) All contributions and interest due must be approved by the Board
    before payment to the withdrawing member. Payment will be mailed on
    the 20th day of the fourth month of the required waiting period unless
    the 20th falls on a legal holiday or a weekend. Payment will then be
    mailed on the closest business day.



54
(4) The years of membership shall be calculated as follows:
    (A) For withdrawal purposes - from the date of the first contribution
    to the date of withdrawal, except that member accounts closed in
    compliance with OAC 715:10-7-3 will be from the date of the first
    contribution to the date the account is closed.
    (B) For payment of interest purposes - from the date of the first
    contribution to the June 30 preceding the date of withdrawal, except
    that member accounts closed in compliance with OAC 715:10-7-3
    will be from the date of the first contribution to the date the account
    is closed.
(5) Interest rate on withdrawals shall be paid as follows:
    (A) July 1, 1968 through June 30, 1977 - four and one-half percent
    (4 1/2%), compounded annually.
    (B) July 1, 1977 through June 30, 1981 - seven percent (7%),
    compounded annually.
    (C) As of July 1, 1981 to present - eight percent (8%), compounded
    annually.
(6) Interest payment on withdrawals shall be paid as follows:
    (A) If termination occurs within sixteen (16) years from the date
    membership began, fifty (50) percent of the total accrued interest
    shall be paid.
    (B) With at least sixteen (16) but less than twenty-one (21) years
    of membership, sixty (60) percent of the total accrued interest shall
    be paid.
    (C) With at least twenty-one (21) but less than twenty-six (26) years
    of membership, seventy-five (75) percent of the total accrued interest
    shall be paid.
    (D) With at least twenty-six (26) years of membership, ninety (90)
    percent of the total accrued interest shall be paid.
(7) The Board of Trustees has ruled that a person whose membership
has not terminated due to five (5) years of absence from Oklahoma
public education employment, but who has applied to withdraw all
accumulated contributions, shall not have membership terminated until
the withdrawal check has been accepted and cashed.
(8) Effective July 1, 1990, no member is eligible to withdraw
contributions made on a pre-tax basis, unless the employee has
terminated employment in the public schools for a period of four months.




                                                                        55
715:10-11-2. Withdrawal of optional membership while still employed
    A non-classified optional member may voluntarily terminate TRS
membership while continuing employment in the public schools of Oklahoma,
if:
    (1) Proper application is made to TRS. Withdrawal may be made no
    earlier than two (2) months after date of application and no earlier than
    the receipt by TRS of the final deposit to the member’s account.
    (2) The financial officer of the employing school certifies the effective
    date of the member’s last contributions and the date payment will be
    remitted to TRS.
    (3) Any member who withdraws under the conditions listed here may
    rejoin the Teachers’ Retirement System under the provision of OAC
    715:10-1-4(8). A member who terminates membership under this section
    cannot redeposit contributions withdrawn under this section at a later
    date, even if the individual returns to membership in TRS. The member
    will also forfeit any right to purchase service performed from the date
    of termination of membership under this section and prior to the re-
    entry date, and will forfeit any unused sick leave accumulated from the
    date of termination of membership under this section and prior to the
    re-entry date.
    (4) A member’s contributions cannot be terminated, by either the
    member or the employer, without termination of TRS membership. Any
    member who ceases contributions while still employed in an optional
    position shall be deemed to have become an ineligible member of TRS,
    and will have forfeited all rights to retirement benefits provided by TRS.
    (5) An employer may prevent its employees from withdrawing, under
    this rule, if the employer has a negotiated labor agreement, or formalized
    IRS plan, prohibiting such terminations and withdrawals.
    (6) After-tax contributions can be refunded to an optional member prior
    to separation from service. Pre-tax contributions cannot be refunded
    until the member terminates employment. Following termination of
    employment, TRS should be contacted for the proper form to be
    completed for return of pre-tax contributions. Upon completion of the
    verification form by the school and the mandatory four-month waiting
    period, payment of the balance of the account will be made at the same
    time as regular withdrawals.
715:10-11-3. False affidavits
   A member who makes affidavit that he has permanently terminated his
employment in state-supported public education in Oklahoma but who is so
employed, or who contracts for such employment before he receives the

56
refund of his TRS account, shall not be entitled to the refund. If the refund
is made in error because the Teachers’ Retirement System is not aware of
the continued employment, necessary steps will be taken to secure the
redeposit of the withdrawn account with interest compounded annually at
ten percent (10%) per annum. No benefits subsequently earned will be paid
until this withdrawn account is returned to the Teachers’ Retirement System.
715:10-11-4. Refunds of contributions
    Refunds for overpayment of annual contributions, ineligible service
purchases, and membership service contributions of less than six (6) months
shall be made upon request by the employing school.
    (1) Refunds to members who are terminating accounts will not be made
    until the final contributions of the withdrawing member is received and
    posted to his account. The required application must be completed and
    on file.
    (2) No interest shall be paid on refunds.
    (3) Contributions reported by the employer as “pre-tax” contributions
    will be refunded to the employer.
715:10-11-5. Termination of rights to benefits
    Withdrawal of an account terminates the right to benefits for all service
prior to the date of withdrawal, unless credit is reinstated by subsequent
service and repayment as provided by the statutes.
715:10-11-6. Reinstatement of an account
    A member who has withdrawn an account may reinstate the account,
and receive credit for the service, by meeting the requirements of OAC
715:10-5-9.
715:10-11-7. Rollovers from OTRS to other eligible retirement plans
(a) Notwithstanding any other provision of the administrative code, a
member, a member’s spouse, or a member’s former spouse who is the
alternate payee under a qualified domestic order, as defined in OAC 715:10-
25-1, may elect at the time and in the manner prescribed by the Board of
Trustees, to have all or a portion of an eligible rollover distribution paid
directly to another eligible retirement plan as required under Internal Revenue
Code Section 401(a)(31) and the regulations thereto.
(b) The following definitions shall apply for purposes of the words and
phrases used in this Section:
     (1) An “eligible rollover distribution” includes any distribution of all
     or any taxable portion of the defined benefit to the credit of a member,
     a member’s spouse, or the member’s former spouse who is the alternate
     payee under a qualified domestic order, as defined in OAC 715:10-25-1,
                                                                            57
     except that an eligible rollover distribution does not include the following:
          (A) any distribution that is one of a series of substantially equal
          periodic payments, paid not less frequently than annually, made for
          the life or life expectancy of the member and the member’s spouse.
          (B) any distribution that is one of a series of substantially equal
          periodic payments for a specified period of ten years or more.
          (C) any distribution to the extent such distribution is required under
          Internal Revenue Code Section 401(1)(9).
          (D) the portion of any distribution that is not includable in the gross
          income.
          (E) any distributions during a year that are reasonably expected to
          total less than $200.
          (F) any distribution from the tax sheltered annuity program.
     (2) An “eligible retirement plan” includes an individual retirement
     account or annuity described in Internal Revenue Code Sections 408(a)
     or (b), an annuity plan described in Internal Revenue Code Section
     403(a), or a qualified trust described in Internal Revenue Code Section
     401(a) that is willing to accept the distributee’s eligible rollover
     distribution. However, in the case of an eligible rollover distribution to
     the member’s spouse, an eligible retirement plan only includes an
     individual retirement account or an individual retirement annuity
     described in Internal Revenue Code Sections 408(a) or (b).
(c) Eligible rollover distributions may be paid to not more than two eligible
retirement plans, as selected by the distributee, when a direct rollover is
elected.




58
     Subchapter 13. Contributions for Membership Service

Section
715:10-13-1.  Regular annual compensation requirements
715:10-13-2.  Contributions required on all compensation
715:10-13-3.  Employee contribution rates
715:10-13-3.1.Employer contribution rates
715:10-13-4.  Maximum compensation level election
715:10-13-5.  Compensation corrections
715:10-13-6.  Employee contributions paid by the employer
715:10-13-7.  Federal matching funds
715:10-13-8.  Procedure for making contribution deductions
715:10-13-9.  Monthly remittance report of contributions
715:10-13-10. Annual report of employment
715:10-13-11. Percentage limits on compensation increases
715:10-13-12. Contracts bought-up by employer
715:10-13-13. Contributions while receiving payments from Workers’
              Compensation
715:10-13-14. Termination credit for state agency employees who are
              members of the Teachers’Retirement System of Oklahoma
715:10-13-1. Regular annual compensation requirements (Amended
2005)
     Each member of the Teachers’ Retirement System is required to make
contributions to the Retirement Fund. Monthly contributions are a set percent
of “regular annual compensation”. Regular annual compensation is defined
as wages plus fringe benefits, excluding the flexible benefit allowance
provided by Section 26-105 of Title 70 of the Oklahoma Statutes, and shall
include all normal periodic payments as provided in subsection D of Section
17-116.2 of Title 70 of the Oklahoma Statutes. Wages and fringe benefits
for retirement purposes are defined as normal periodic payment for service
the right to which accrues on a regular basis in proportion to the service
performed. Such periodic payments shall include staff development or other
periodic payments to qualifying members. Fringe benefits shall include
employer-paid group health and disability insurance, group term life
insurance, annuities and pension contributions and IRS Code Section 125
cafeteria benefits provided on a periodic basis to all qualified members of
the employer, which qualify as fringe benefits under the United States Internal
Revenue Code. Reimbursement for travel, housing or other expenses are
not fringe benefits and do not qualify as regular annual compensation.
Payment for unused vacation or sick leave, retirement bonuses or any other
                                                                            59
payment when made for reason of termination or retirement shall not be
included as regular annual compensation. Contributions can only be remitted
on actual wages and fringe benefits. No individual can contribute on unearned
or non-existent compensation. Under no circumstances can members pay
retirement contributions on more than they actually earn.
715:10-13-2. Contributions required on all compensation
     Contributions shall be made on total compensation of each member.
Total compensation means salary and benefits from all sources including
federally-subsidized programs under the direct administration of a public
school and salaries earned by an employee for extra duties. This includes
pay to a teacher who also drives a school bus, members of TRS who are
working part-time for another school and members employed on a regular
basis who are employed by the same or different school in a summer school
or night school program. All public schools shall treat the employee
contributions as being picked-up under the provisions of Section 414(h)(2)
of the Internal Revenue Code. Individuals who join the Teachers’ Retirement
System during the school year and who have been employed prior to
becoming a member must make retroactive contributions from the beginning
of that school year. The membership date of such a member is the date the
first payment is received, not the beginning of the school year. The member
shall not receive credit for a year of service until the balance of contributions,
including any contributions required by the employer, are received by TRS.
715:10-13-3. Employee contribution rates (Amended 2005)
(a) Beginning with the 1996-97 school year, the maximum compensation
level for all members, other than those members employed by a
comprehensive university on or before June 30, 1995, shall be the member’s
regular annual compensation. This includes any employee of a comprehensive
university who transfers to another school or university after June 30, 1996,
or who terminates paid employment status with a comprehensive university
and returns to employment at a later date.
(b) Beginning with the 1996-97 school year, the maximum compensation
level for those employees of a “comprehensive university”, defined in statutes
as the University of Oklahoma and all of its constituent agencies, including
the University of Oklahoma Health Sciences Center, the University of
Oklahoma Law Center and the Geological Survey, and Oklahoma State
University and all of its constituent agencies, including the Oklahoma State
Agricultural Experiment Station, the Oklahoma State University Agricultural
Extension Division, the Oklahoma State University College of Veterinary
Medicine, the Oklahoma State University Center for Health Sciences, the
Technical Branch at Oklahoma City, the Technical Branch at Okmulgee
60
and Oklahoma State University-Tulsa, who were employed on or before
June 30, 1995, shall contribute the following:
     (1) for members who, prior to June 30, 1995, elected to contribute on a
     maximum compensation level not to exceed $25,000:
         (A) $32,500 for service between July 1, 1996 and June 30, 1997,
         (B) $37,500 for service between July 1, 1997 and June 30, 1998,
         (C) $42,500 for service between July 1, 1998 and June 30, 2000,
         (D) $47,500 for service between July 1, 2000, and June 30, 2001,
         (E) $52,500 for service between July 1, 2001, and June 30, 2002,
         (F) $57,500.00 for service between July 1, 2002, and June 30, 2003,
         (G) $62,500.00 for service between July 1, 2003, and June 30, 2004,
         (H) $67,500.00 for service between July 1, 2004, and June 30, 2005,
         (I) $72,500.00 for service between July 1, 2005, and June 30, 2006,
         (J) $77,500.00 for service between July 1, 2006, and June 30, 2007,
         and
         (K) the full amount of regular annual compensation for service
         authorized and performed after June 30, 2007, and
     (2) for members who, prior to June 30, 1995, elected to contribute on a
     maximum compensation level in excess of $25,000, or who did not
     make an election prior to June 30, 1995, because their annual salary
     was less than $25,000:
         (A) $49,000 for service between July 1, 1996 and June 30, 1997,
         (B) $54,000 for service between July 1, 1997 and June 30, 1998,
         (C) $59,000 for service between July 1, 1998 and June 30, 2000,
         (D) $64,000 for service between July 1, 2000, and June 30, 2001,
         (E) $69,000 for service between July 1, 2001, and June 30, 2002,
         (F) $74,000 for service between July 1, 2002, but not later than
         June 30, 2003,
         (G) $79,000 for service between July 1, 2003, and June 30, 2004,
         (H) $84,000 for service between July 1, 2004, and June 30, 2005,
         (I) $89,000 for service between July 1, 2005, and June 30, 2006,
         (J) $94,000 for service between July 1, 2006, and June 30, 2007,
         and
         (K) the full amount of regular annual compensation for service
         authorized and performed after June 30, 2007.
(c) Every teacher employed by any school district or Career and Technology
Education district, who qualifies for a minimum salary pursuant to the State’s
minimum salary schedule shall have a specific amount credited against the
employee’s contribution to the Teachers’ Retirement System. The State of
Oklahoma shall pay an annual amount for each fiscal (or plan) year as
follows:
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     (1)      0 years of service = $60.15
     (2)      1 year of service = $103.41
     (3)      2 years of service = $145.65
     (4)      3 years of service = $188.15
     (5)      4 years of service = $233.33
     (6)      5 years of service = $278.76
     (7)      6 years of service = $325.26
     (8)      7 years of service = $372.82
     (9)      8 years of service = $421.44
     (10)     9 years of service = $471.12
     (11)     10 years of service = $521.87
     (12)     11 years of service = $573.67
     (13)     12 years of service = $626.54
     (14)     13 years of service = $680.48
     (15)     14 years of service = $735.47
     (16)     15 years of service = $791.53
     (17)     16 years of service = $848.65
     (18)     17 years of service = $906.83
     (19)     18 years of service = $966.07
     (20)     19 years of service = $1,026.38
     (21)     20 years of service = $1,087.75
     (22)     21 years of service = $1,150.18
     (23)     22 years of service = $1,213.68
     (24)     23 years of service = $1,278.23
     (25)     24 years of service = $1,343.85
     (26)     25 or more years of service = $1,410.53
(d) Each school district or Career and Technology Education school district
shall adjust each eligible employee’s monthly contribution to the Teachers’
Retirement System in accordance with statutory provisions, and shall cause
the annual amount paid by the State of Oklahoma as provided in the preceding
paragraph to be deducted from the monthly remittance to each eligible
employee’s retirement account and a like amount added to the net pay of the
eligible employee.
     (1) If the school district pays the retirement contribution in addition to
     the employee’s total compensation, the employer must reduce the
     employee’s annual retirement contribution which the school pays to the
     Teachers’ Retirement System by the appropriate amount and add that
     amount to each eligible employee’s net pay.
     (2) If the school district deducts the retirement contribution from each
     employee’s total compensation, whether as a salary reduction to pay
     the retirement contribution as a fringe benefit or as a deduction on an
62
    after-tax basis, the employer must adjust the employee’s annual
    retirement deduction in accordance with the amount to be paid by the
    State. The adjustment in the retirement deduction will result in an increase
    to the eligible employee’s net pay.
    (3) The State contribution to each eligible employee’s retirement account
    is determined by the total experience of each employee as verified by
    the State Department of Education or the Oklahoma Department of
    Career and Technology Education.
    (4) The State contribution must be calculated and paid in equal monthly
    installments as determined by the eligible employee’s contract, i.e. ten
    months, eleven months or twelve months. Eligible employees who work
    less than a full contract year, whether full-time for less than a full contract
    year or part-time for the full contract year, shall have the prescribed
    State contribution prorated in accordance with the eligible employee’s
    full-time equivalent rate of employment.
715:10-13-3.1. Employer contribution rates
(a) Beginning July 1, 1998, through June 30, 2000, the local employer
shall pay four and eight-tenths percent (4.8%) of the regular annual
compensation of the member, up to the member’s applicable maximum
compensation level.
(b) Beginning July 1, 2000, through June 30, 2001, the employer shall pay
five and eight-tenths percent (5.8%) of the regular annual compensation of
the member up to the member’s applicable maximum compensation level
(c) Beginning July 1, 2001, through June 30, 2002, the employer shall pay
six and eight-tenths percent (6.8%) of the regular annual compensation of
the member up to the member’s applicable maximum compensation level.
(d) Beginning July 1, 2002, the employer shall pay seven and five-hundredths
percent (7.05%) of the regular annual compensation of the member up to
the member’s applicable maximum compensation level. In addition to the
contribution rate of 7.05% on each active member’s applicable regular annual
compensation, the employer shall pay seven and five-hundredths percent
(7.05%) of the regular annual compensation of any retired member as defined
in OAC 715:10-17-1 and 715:10-17-5.
715:10-13-4. Maximum compensation level election for years prior to
July 1, 1995
(a) Any member, except for employees of institutions of higher education
as provided in 70 O.S. § 17-116.2A, who was a contributing member of the
Retirement System between July 1, 1987, and June 30, 1995, who elected
to limit contributions to the first $25,000 of annual compensation, may
elect to contribute on annual compensation up to a maximum of $40,000.
                                                                                63
(b) If no election was made within the time provided by statute, the member
was deemed to have elected the $25,000 compensation level.
(c) Except as provided in subsection (a) of this rule, a member may change
the $25,000 election at any time prior to his or her official retirement date.
(d) If a member elects to change his or her election as provided by this rule,
the member must remit to the Teachers’ Retirement System the difference
between the amount contributed and that which would have been contributed
had a $40,000 maximum been elected when the member was first eligible to
do so. This additional payment shall include any contribution that the law
requires from the member’s employer, and interest compounded annually at
ten percent (10%) per annum on the balance due. The balance due may be
made in a single lump sum or in installments as provided in OAC 715:10-5-
4. However, the total balance must be paid prior to the effective date of
retirement and cannot be purchased by any person after the death of the member.
715:10-13-4.1. Maximum compensation level election for the 1995-96
school year
(a) A member employed by an entity or institution within the Oklahoma
State System of Higher Education between July 1, 1995, and June 30, 1996,
was eligible to elect before January 1, 1997, to make an additional
contribution on regular annual compensation in excess of his or her
maximum compensation level for the 1995-96 school year.
(b) The member must have made the election in writing on a form prescribed
by the Board of Trustees, and the form must have been filed with the Teachers’
Retirement System on or before December 31, 1996.
(c) Members electing to pay on regular annual compensation in excess of
the maximum compensation level for the 1995-96 school year must pay the
difference between the member’s regular annual compensation up to the
member’s maximum compensation level for the 1996-97 school year.
(d) The 1995-96 maximum compensation level for members employed by
a comprehensive university was $32,500, for those members electing to
contribute on $25,000 on or before June 30, 1995; $49,000 for those
members electing to contribute on regular annual compensation in excess of
$25,000 on or before June 30, 1995; and $49,000 for those members who
first joined the Teachers’ Retirement System after June 30, 1996, or whose
regular annual compensation did not exceed $25,000 prior to June 30, 1995.
(e) The 1995-96 maximum compensation level for a member employed by
an entity or institution within the Oklahoma State System of Higher Education
other than a comprehensive university was his or her regular annual
compensation.


64
(f) A member who made the election allowed by this rule must pay six
percent (6%) of regular annual compensation up to his or her 1995-96
maximum compensation level, plus two and one-half percent (2.5%) of
regular annual compensation up to his or her 1995-96 maximum
compensation level as employer contributions, less the amount already paid
by the member and his or her employer during the 1995-96 school year;
however, the employer may pay all or any part of the payment required of
the member.
(g) The payment may be made any time prior to the date the member files
the written application for retirement with TRS.
(h) The member shall be charged interest compounded annually at the rate
of ten percent (10%) from the date such contributions would have been paid
until the payment is made to TRS.
(i) The member shall not receive credit for the election until the balance of
contributions plus interest is paid in full.
715:10-13-5. Compensation corrections
     The statutes provide that any member whose regular annual
compensation was not determined as provided by law may pay the
contribution on such amount not included in the member’s regular annual
compensation and receive credit for such amount in the calculation of the
member’s benefit. The member must also pay any employer contributions
due TRS which are not paid by the employer. The intent of this provision
and the provisions outlined above is to enable members to receive credit for
their total contract salary up to applicable limits. Therefore, members’
retirement contributions should be based on the gross salary before fringe
benefits are subtracted, not after. No adjustments can be made until the
corrections are documented as outlined in OAC 715:10-5-6. Any loss
incurred by the Retirement System as a result of the failure of a school to
comply with existing statutes or TRS Rules shall be paid by the member or
school to the Retirement Fund. Interest compounded annually at ten percent
(10%) per annum shall be charged on all balances due Teachers’ Retirement
because of failure to remit the proper contribution.
715:10-13-6. Employee contributions paid by the employer
    Any school may, for and on behalf of any Teachers’ Retirement System
member, pay all or any portion of the membership contribution required by
statutes.
715:10-13-7. Matching funds
   Statutes require employers of Teachers’ Retirement System members
whose compensation is paid from federal funds to match the contributions

                                                                          65
of these members on all compensation or that portion of compensation paid
from these funds. Federal matching funds shall be transmitted at the same
time and in the same manner as the members’ contributions. Effective July
1, 2001, employers shall match on a pro rata basis the contributions of
members whose salaries are paid by federal funds or externally sponsored
agreements such as grants, contracts and cooperative agreements. Matching
contributions shall be required on all salaries funded from revenues other
than funds generated from local taxes or revenues originating from the State
of Oklahoma. No later than April 1, 2001, and each April 1 thereafter, the
Board of Trustees of the Teachers’ Retirement System shall set the
contribution rate to be paid by employers. The contribution rate shall be
determined using cost principles established by federal regulations and shall
be consistent with generally accepted accounting principles.
715:10-13-8. Procedure for making contribution deductions
     The Teachers’ Retirement System contribution deduction shall start with
the payment for the first month of a “classified” employee’s contract, or the
first month of membership for an optional “non-classified” member. This
contribution shall be based on the total compensation for the month, but
shall not apply to the compensation of a substitute teacher or any employee
working on a less than one-half time basis. Individuals who join the Teachers’
Retirement System during the school year, and who have been employed
prior to becoming a member, must make retroactive contributions from the
beginning of that school year. The membership date of such a member is
the date of first payment not the beginning of the school year. The member
shall not receive credit for a year of service until the balance of contributions,
including any contributions required by the employer, are received by TRS.
Interest compounded annually at ten percent (10%) per annum shall be
levied against the balance due until paid.
     (1) The total deductions in any one school year shall not exceed the
     maximum limit prescribed by statutes as defined in OAC 715:10-13-3.
     (2) In determining the amount of the contribution for a member in any
     payroll period, the employer shall consider the total compensation earned
     from all sources. The contribution shall be calculated on the gross
     compensation before any deductions, such as tax-sheltered annuity,
     income taxes, Social Security, etc. Deductions shall be made at the
     statutory contribution rate on each month’s compensation until the
     maximum annual compensation level is reached. Total monthly
     compensation shall be reported in the monthly salary column of the
     remittance report. Monthly compensation includes gross wages and
     fringe benefits paid or provided by the remitting agency.

66
    (3) Monthly contributions for employees of a comprehensive university,
    whose maximum compensation level is less than the member’s regular
    annual compensation, may be remitted in twelve equal payments to the
    member’s account during the school year. It shall be the responsibility
    of the employer to insure any required adjustment in contributions is
    made if a member terminates employment or the member’s salary
    changes during the school year.
    (4) Contributions must be remitted monthly as long as the individual is
    employed in a position for which membership is a condition of
    employment. No member, including non-classified optional employees,
    may terminate contributions and retain membership in Teachers’
    Retirement System, except as expressly provided elsewhere in the statutes
    or TRS rules.
    (5) As of July 1, 1979, members who signed a waiver to contribute on
    a maximum annual salary of $7,800 are required by law to contribute
    on their total compensation not to exceed any current maximum
    contribution level.
    (6) The Department of Corrections shall contribute the employer’s share
    to the Teachers’ Retirement System. The contribution shall be the same
    dollar amount required of the member.
715:10-13-9. Monthly remittance report of contributions
    A remittance report shall be prepared and filed with the Executive
Secretary of the Teachers’ Retirement System by the superintendent of
schools or the financial secretary of a school, on the form supplied by the
Teachers’ Retirement System each month for each payroll period occurring
during that month.
    (1) School officials preparing the claims shall prepare an alphabetical
    list of all members comprising the report, the amount of contributions
    both taxed and non-taxed (paid by the employer on a before tax basis)
    for each employee and the total monthly compensation amount. The
    report must include a listing of the retired members who are employed
    by the school and the amount of employer contributions remitted for
    each retired member. Monthly compensation shall be the total
    compensation (including benefits) for the pay period and shall not in
    any case be less than 1/12th of the maximum compensation option elected
    by the member. (This list shall be known as TRS Form 50.) (2)
    TRS Form 32 Summary of Payroll Remittance along with warrants
    covering the total amount to be remitted shall accompany TRS Form
    50. All employee contributions, employer contributions, retired member
    contributions and matching funds for the pay period shall be remitted at
    the same time.
                                                                          67
     (3) TRS Form 1-A Personal Data shall be required for each new member
     of the Teachers’ Retirement System. This form must be mailed to TRS
     prior to or with the first remittance report containing the name of a new
     employee/member.
     (4) Payments for prior school years may not be included on current
     year reports. These payments must be handled as a back payment
     including any interest which may be due. Contact Teachers’ Retirement
     System for proper billing of these amounts.
     (5) Special permission may be obtained to make a computerized report
     on magnetic media when it is to the advantage of both the remitting
     agency and the Teachers’ Retirement System. Details of computerized
     reporting requirements are available from Teachers’ Retirement. Prior
     approval by TRS is required before a school may utilize this option.
     (Note: Approval by the State Department of Education for an alternate
     accounting system does not guarantee acceptance for use in TRS reporting.)
     (6) The employer of each member shall deposit within ten (10) days of
     the last day of each calendar month all employer and employee
     contributions of each member due the Retirement System for payroll
     periods ending during the calendar month. Employer and employee
     contribution amounts not paid to the Retirement System after thirty
     (30) days from the end of the payroll month shall be subject to a monthly
     late charge of one and one-half percent (1 1/2%) of the unpaid balance
     to be paid by the employer to the Retirement System.
     (7) Reports for the summer months of June, July and August must be
     made on three individual TRS Form 32 reports; however, they can all
     be sent to TRS at the same time. Reports for July and August of the
     preceding school year must be prepared and filed as separate reports
     from reports filed for the new year beginning July 1. Contributions due
     for one fiscal or school year shall not be commingled on the same
     remittance report with contributions for the next fiscal or school year.
     (8) The executive secretary of TRS may, at any time, require additional
     items to be included on the monthly remittance report or require
     additional reports when in the executive secretary’s judgment such
     information is necessary for the efficient operation of the System or to
     comply with state statutes.
     (9) Receipts shall be issued by the Teachers’ Retirement System to the
     remitting agency making the remittance.
715:10-13-10. Annual report of employment
    At the close of each fiscal year, the payroll office of each employer
shall file a report with Teachers’ Retirement System that certifies the number

68
of hours worked that year by each less-than-fulltime employee. The report
shall also include the names and total number of hours worked by any
employee receiving Teachers’ Retirement System retirement benefits.
715:10-13-11. Percentage limits on compensation increases
    Member’s aggregate compensation for the last three creditable years of
service before retirement may not exceed the credited compensation of the
immediately preceding creditable year for service in the same or similar
positions by more than 20%. When appropriate, Teachers’ Retirement
System may convert salary for part-time employment to its full-time
equivalent in determining the permissible increases in annual compensation.
    (1) Teachers’ Retirement System will adjust a member’s annual
    compensation at the time of retirement to comply with the limits of this
    rule and will refund excess deposits to the member after the effective
    date of retirement.
    (2) Increases due to a change in employment responsibilities or
    adjustments in salary schedules for the employees of school district
    shall be excluded by TRS in determining if an employee exceeds the
    20% level. TRS retains the right to require individuals and the employing
    school to provide documentation to satisfy questions that may arise
    from increases in compensation in excess of 20% for any school year.
715:10-13-12. Contracts bought up by employer
     Teachers’ Retirement System will not accept contributions on contract
buyouts or grant creditable service, unless approved by the Board of Trustees
resolution before the fact or when so ordered by a court of competent
jurisdiction. Any payments for accumulated annual leave in excess of sixty
(60) days or reimbursement for unused sick leave in excess of the daily
amount paid to the teaching staff shall be considered a contract buy out.
715:10-13-13. Contributions while receiving payments from Workers’
Compensation
    Any member who is an active contributing member and receives
temporary total disability benefits during the period of absence from a public
school due to a work-related injury or illness and qualifies for payment
pursuant to the Workers’ Compensation Act shall receive credit for said
period of absence subject to the following requirements:
    (1) the member was employed by the public school immediately prior
    to and during the period of absence,
    (2) the member must notify the System in writing not later than four
    (4) months after the member’s return to his or her job duties with the
    public school, or termination of the temporary total disability benefits,

                                                                           69
     whichever is earlier, of the member’s desire to receive service credit for
     the period of absence,
     (3) the public school employer must certify to the System in writing
     the dates during which temporary total disability benefit payments were
     paid to the member, and
     (4) the member and the public school employer shall each pay the
     respective contributions required for the period of absence without
     interest within sixty (60) days of billing by the System, or with interest
     at a rate consistent with the actuarial assumed earnings rate adopted by
     the Board of Trustees (currently 8% per annum), compounded annually
     if paid after said sixty (60) days. Employee and employer contributions
     will be based on the member’s regular annual compensation the member
     would have earned had the injury or illness not occurred.
715:10-13-14. Termination credit for state agency employees who are
members of the Teachers’ Retirement System of Oklahoma
(a) An employee of a state agency or other governmental entity participating
in the Teachers’ Retirement System of Oklahoma, other than an employee
of an Oklahoma public school, who has completed at least ten (10) years of
full-time equivalent employment for that employer, and who is terminated
because his or her position is eliminated through a reduction-in-force after
July 1, 1998, and who is within three (3) years of becoming eligible for
retirement, may purchase up to three (3) years of service credit in the
Teachers’ Retirement System if:
     (1) the member, within six (6) months of his or her termination, files an
     election with the Teachers’ Retirement System indicating an intent to
     purchase the termination credit;
     (2) the Teachers’ Retirement System is paid the full amount of both the
     employer and employee contributions that would have been paid to the
     System, based upon the maximum compensation level received by the
     member in the last full month he or she was employed by the state
     agency or governmental entity, multiplied by the number of months
     required for the member to qualify for retirement with an unreduced
     benefit had the member not been terminated; and
     (3) full payment for the cost of the termination credit is made within
     sixty (60) days of filing the election to purchase the credit.
(b) If the member fails to pay the full amount of the required contribution
amounts to the System within 60 days of filing the election to purchase the
termination credit, the termination credit shall be cancelled, and the Teachers’
Retirement System shall return the purchase amount to the member, without
interest.

70
(c) The purchased termination credit may be used only as service credit to
qualify the member for normal retirement.
(d) If the member chooses to retire before his or her normal retirement
date, or returns to employment with a participating employer before
retirement, the member will not receive the termination credit, and the System
will return to the member the purchase amount that has been paid, without
interest.
(e) If the member dies before retirement, his or her spouse, if eligible to
receive benefits, may elect to receive the benefit at the time the member
would have become eligible to retire, or receive a return of the purchase
amount that has been paid, without interest.




                                                                           71
                  Subchapter 15. Service Retirement

Section
715:10-15-1. Eligibility for service retirement
715:10-15-2. Age, service requirements for regular retirement
715:10-15-3. Date of retirement; making application
715:10-15-4. Effective date of retirement contract
715:10-15-5. Date of retirement contract is binding; revocation of contract
715:10-15-6. Verification of date of birth
715:10-15-7. Standard retirement formula
715:10-15-8. Age, creditable service determination
715:10-15-9. Minimum service retirement benefits
715:10-15-10. Retirement plans
715:10-15-10.1.“Pop-up” of Option 2 or Option 3 Retirement Plans
715:10-15-11. Designation of beneficiaries for retirement options
715:10-15-12. Spousal consent
715:10-15-13. Survivor benefits when death occurs after retirement
715:10-15-14. Actuarial tables
715:10-15-15. Disability retirement; application; effective date
715:10-15-16. Review by Medical Board
715:10-15-17. Additional medical evidence can be required
715:10-15-18. Discontinuance of disability retirement
715:10-15-19. Disability retirement payments
715:10-15-20. Conversion of disability retirement to retirement option 2
715:10-15-21. Return to employment by a disabled retiree
715:10-15-22. Reduction of disability benefits for excess earnings
715:10-15-23. Special $150 per month plan; application; effective date
715:10-15-24. Due-date of retirement benefit payments
715:10-15-25. Changes and corrections to retirement benefit payments
715:10-15-26. Code Section 415 limits as applied to TRS
715:10-15-27. Code Section 401(a)(17) limits as applied to TRS
715:10-15-1. Eligibility for service retirement (Amended 2005)
   Members are eligible for service retirement benefits when they have:
   (1) withdrawn from employment in the public education institutions of
   Oklahoma;
   (2) obtained a minimum of five (5) years of creditable service in the
   public schools of Oklahoma;
   (3) satisfied the age and service requirements of Title 70, Okla. Stat.,
   Section 17-105, as defined in OAC 715:10-15-2; and,
   (4) made application as provided in OAC 715:10-15-3.
72
715:10-15-2. Age, service requirements for regular retirement
(Amended 2005)
     A member is eligible for service retirement benefits when the following
requirements of age and service are met. Any member who joins TRS after
July 1, 1991, shall be required to have five (5) full years of membership as
a contributing member of the System. For members who join after July 1,
1991, Oklahoma service purchased after membership will not be counted
for “vesting” purposes.
     (1) For any member who joined TRS prior to July 1, 1992, full
     retirement benefits will be paid to members who:
          (A) Have reached age 62, or
          (B) Whose age as of their last birthday and number of years of
          creditable service total 80.
     (2) For any member who joined TRS after June 30, 1992, full retirement
     benefits shall be paid to the member who:
          (A) Has reached age 62, or
          (B) Whose age as of his or her last birthday and number of years of
          creditable service total 90.
     (3) Reduced retirement benefits will be paid to members who:
          (A) Are between ages 55 to 61 and have at least five (5) years of
          Oklahoma creditable service, but do not have 80 or 90 “points”;
          the reductions shall be as shown below:
                       (1)      55 – 61.89%
                       (2)      56 – 65.95%
                       (3)      57 – 70.38%
                       (4)      58 – 75.23%
                       (5)      59 – 80.00%
                       (6)      60 – 86.66%
                       (7)      61 – 93.33%
                       (8)      62 – 100.00%
          (B) Have thirty (30) or more years of creditable service, regardless
          of age, but do not have 80 or 90 “points.” (TRS will provide
          reduction percentages upon request to any member desiring reduced
          benefit calculations who is under age 50 with 30 years of service.)
715:10-15-3. Date of retirement; making application
     The earliest effective date of retirement for any eligible member is the
first day of the month following the one in which employment ceases, with
the first annuity payment due the last day of that month.
     (1) It is the member’s responsibility to notify, by filing a retirement
     contract as outlined in paragraphs 4 and 5 of this section, the TRS
     Board of Trustees of the date on which retirement is to begin.
                                                                           73
     (2) Payments for all years of service, for which a member wants to
     receive credit, must be made before the date of retirement.
     (3) State law does not permit TRS to make retroactive retirement
     payments. Members should ensure that their creditable service record
     is up-to-date and accurate before they retire.
     (4) The member shall request a final contract for retirement by
     completing and returning TRS Form 40 (Retirement Allowance
     Estimate). This form should be returned to TRS approximately sixty
     (60) to ninety (90) days prior to the expected retirement date. The
     member shall select the retirement option on TRS Form 40.
     (5) The Final Contract for Retirement, properly executed before a
     notary, is required by statutes to be filed with TRS no less than thirty
     (30) days, nor more than ninety (90) days, before the date of retirement.
     Therefore, the final contract for retirement must be completed and on
     file with TRS by the first day of the month immediately preceding the
     retirement date. The first retirement check will be mailed on the last
     day of the month retirement begins.
     (6) For example, a retirement contract must be on file by May 1, for a
     retirement date of June 1, in order for the first check to be mailed the
     last working day of June.
715:10-15-4. Effective date of retirement contract
     The effective date of retirement shall be the date specified on the Final
Contract for Retirement completed and signed by the member. The effective
date of retirement can be the first of any month specified by the member,
except the effective retirement date cannot be earlier than the following:
(1) The last day on which service is rendered shall be accepted as the last
day of employment, when so certified by the employer. This is not necessarily
the last day for which the member receives pay.
(2) If employment terminates on or before the tenth (10th) day of the month,
the retirement date can be that same month.
(3) If a member’s employment terminates after the tenth (10th) day of the
month, the retirement date can be the first day of the following month.
715:10-15-5. Date of retirement contract is binding; revocation of
contract
    The final contract for retirement becomes binding on the effective date
shown on the contract and shall be known as the date of retirement. The
contract may be revoked by the member, or the retirement plan changed,
before the date of retirement. Any change or revocation must be in writing,
delivered to the Teachers’ Retirement System, Oklahoma City, Oklahoma,
or postmarked by the United States Postal Service prior to the effective date
74
of retirement. After the retirement date, the contract cannot be canceled,
nor the retirement plan changed. If the member elected the Option 2 or
Option 3 retirement contract and the member’s designated beneficiary dies
before the retirement date, the member may select another retirement plan
without penalty. If a Maximum or Option 1 retiree should die during the
month following the date of retirement and before the first retirement benefit
is due, any distribution to beneficiaries designated on the member’s retirement
contract shall be paid pursuant to OAC 715:10-9-1 and 715:10-9-2.
715:10-15-6. Verification of date of birth
    A member, filing for retirement benefits, must provide proof of date of
birth. Proof of the birth date of the designated beneficiary is also required
when the member selects either Retirement Option 2 or Option 3. Although
a birth certificate is the best evidence of correct age, one is not always
obtainable. In such cases, the Board of Trustees has ruled that any of the
documents listed below also shall be acceptable:
    (1) United States Census record.
    (2) Military record.
    (3) College record, or elementary school record (employment contracts
    are not acceptable.)
    (4) Naturalization record.
    (5) Church record, or baptismal certificate.
    (6) Passport (must be at least five years old).
    (7) Marriage license (showing age of member on date of issuance).
    (8) Life insurance policy (must be at least five years old, does not include
    health and accident policies).
    (9) Record in school administrative office (must be at least five years
    old).
    (10)     Family Bible Record (a photostatic copy, or a certification from
    a notary is needed). The notary must state that the record has been
    examined, and that it appears to be genuine. The record will be accepted
    dependent upon these findings.
715:10-15-7. Standard retirement formula
     The standard retirement formula used to determine the maximum monthly
retirement benefit is Final Average Salary, times two percent (2%), times
Years of Creditable Service, divided by 12. For purposes of this section:
     (1) Final average salary for members who joined TRS prior to July 1,
     1992, is the average of the three (3) highest years on which contributions
     were made. Final average salary for members who joined TRS after
     June 30, 1992, is the average of the five (5) highest consecutive years
     on which contributions were made.
                                                                             75
     (2) If the final average salary is under $40,000, it will apply to all
     creditable service years. If the final average salary exceeds $40,000,
     the member will have a two tier retirement calculation. All years prior
     to July 1, 1995, will be calculated at $40,000 and all years after July 1,
     1995, will be on actual final average salary, except for members
     employed by an entity or institution within the Oklahoma State System
     of Higher Education as of June 30, 1995, as provided in OAC 715:10-15-7.1.
     (3) Salary for any school year shall not exceed the statutory maximum
     limit for contributions for that particular school year.
     (4) A member who elected to contribute only on compensation up to $25,000
     shall have the average salary limited to no more than $25,000 for years of
     service performed prior to July 1, 1995 (see OAC 715:10-13-4).
     (5) A member who elected to contribute on compensation up to $40,000,
     but has not paid all contributions and any applicable interest for any
     year after June 30, 1987, shall have the average salary limited to no
     more than $25,000 for years of service performed prior to July 1, 1995.
     (6) A member who elected to limit contributions on salary up to $7,800
     between 1974 and 1979, shall have all years of service prior to July 1,
     1979, calculated on an average salary not to exceed $7,800, unless the
     waiver is revoked in accordance with OAC 715:10-5-8. Years of service
     after July 1, 1979, shall be calculated using an average salary determined
     in the same manner as all other members.
     (7) The years used in determining average salary must be Oklahoma
     service credits and shall not exceed the actual compensation received
     during the school or fiscal year when such service was performed.
     (8) Creditable service shall be the total years of creditable service,
     including Oklahoma, military, out-of-state or other years provided by
     Board rules and statutes.
715:10-15-7.1. Retirement formula for members employed by a
comprehensive university (Amended 2005)
(a) For a member employed on or after July 1, 1995, two percent (2%)
multiplied by the member’s final average salary on which contributions
were made times the years of creditable service performed on or after July 1, 1995.
(b) For a member employed on or before July 1, 1995, as follows:
    (1) For service prior to July 1, 1995, in the same manner as described
    in OAC 715:10-15-7; plus
    (2) Two percent (2%) multiplied by the average of the member’s
    maximum compensation level for those years between July 1, 1995 and
    June 30, 2007, in which the member’s regular annual compensation
    meets the maximum compensation level in effect for the member, times

76
     the years of creditable service earned during this period in which the
     member’s regular annual compensation meets the maximum
     compensation level in effect for the member; plus
     (3) Two percent (2%) of the member’s final average salary multiplied
     by the years of creditable service earned for those years between July 1,
     1995 and June 30, 2007, that did not meet the member’s maximum
     compensation level in effect for this period, plus
     (4) Two percent (2%) of the member’s final average salary multiplied
     by the years of creditable service earned by the member for service
     performed after June 30, 2007; plus
     (5) Two percent (2%) of the member’s final average salary upon which
     contributions were made, multiplied by the member’s years of creditable
     service performed for an employer other than an entity or institution within
     The Oklahoma State System of Higher Education on or after July 1, 1995.
(c) The member’s maximum compensation level for the years between July
1, 1995 and June 30, 2007, shall be determined by the contribution election
made by the member prior to July 1, 1995.
(d) The term “average of the member’s maximum compensation level”
means an average of the annual salary on which contributions were made
for the years between July 1, 1995 and June 30, 2007.
(e) In the event there is an insufficient number of years for the time period
between July 1, 1995 and June 30, 2007, to reach the high three (3) or high
five (5) consecutive years as defined in 70 O.S. § 17-101, the member’s
maximum compensation level shall be determined by an average of the salary
on which contributions were made. In no case shall the member’s average
maximum compensation level exceed the average salary that would be
calculated for any other TRS member for the same period of service with
the same contribution level.
715:10-15-8. Age, creditable service determination
     The member’s age, and the age of a member’s designated beneficiary,
at retirement shall be determined as the age attained as of the last birthday.
Total creditable service shall be determined to the nearest whole number
with any fractional part of a year rounded down. Age shall be determined
as of the date of retirement in the following manner:
     (1) If the member’s date of birth is on or before the tenth (10th) day of
     the month of retirement, the age shall be the age of the member on the
     tenth (10th) day of the month.
     (2) If the member’s date of birth is after the tenth (10th) day of the
     month of retirement, the age shall be the age of the member on the first
     day of the month.

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715:10-15-9. Minimum service retirement benefits
   Minimum service retirement benefits are payable as follows:
   (1) If a classified employee’s average salary is less than $6,500, the
   retirement allowance shall be $10.83 per month for each year of service.
   (2) If a nonclassified employee’s average salary is less than $5,350, the
   retirement allowance shall be $8.91 per month for each year of service.
715:10-15-10. Retirement plans (Amended 2005)
     A member may elect to receive a monthly life annuity under one of the
following plans:
     (1) The Maximum Retirement Plan provides the greatest monthly
     lifetime benefit that each individual member’s years of creditable service
     and average salary permit. The maximum retirement plan is the monthly
     entitlement calculated using the standard retirement formula set by
     statutes. In the event the total retirement payments made prior to the
     death of a retired member are less than the member’s accumulated
     contributions (with any interest credited to the account prior to July 1,
     1968), the difference shall be paid to the member’s designated beneficiary
     or to the member’s estate if no designated beneficiary survives the
     member.
     (2) Retirement Option 1 provides a slightly reduced lifetime benefit.
     The monthly entitlement is the difference between the annuity portion
     of the maximum retirement plan and the annuity portion of an Option 1
     retirement plan subtracted from the Maximum retirement plan. If the
     retired member dies before receiving in the annuity portion of the monthly
     payments an amount equal to the member’s deposits (with any interest
     credited to the account prior to July 1, 1968), the remaining balance
     shall be paid in a lump sum to the member’s designated beneficiary or
     to the member’s estate if no beneficiary survives the member. (The
     member’s deposits are “protected” for the member’s beneficiary for a
     longer period of time than under the maximum retirement plan, hence,
     the monthly benefit is less than the Maximum benefit.)
     (3) Retirement Option 2 provides a reduced monthly benefit payable to
     the member for life. At the death of the retired member, the same monthly
     benefit payable to the member, shall continue to the member’s
     beneficiary, if living. This option is known as a “100% joint survivor
     annuity.” The reduction in the monthly benefit is based on actuarial
     tables developed for this purpose and approved by the Board of Trustees.
     The ages of the member and beneficiary are an important factor in
     computing this benefit. The beneficiary for the Option 2 retirement plan
     may be the member’s spouse or another person. If the designated

78
beneficiary is not the member’s spouse, IRS Regulations require that
the adjusted member/beneficiary age difference cannot be more than
ten (10) years. The adjusted member/beneficiary age difference is
determined by first calculating the excess of the age of the member over
the age of the beneficiary based on their ages on the date of retirement.
If the member is younger than age 70, the age difference determined in
the previous sentence is reduced by the number of years that the member
is younger than age 70 based on the member’s age on the date of
retirement. If the adjusted member/beneficiary age difference is greater
than ten (10) years, the Option 2 retirement plan is not available. In the
event the member’s beneficiary dies at any time after the member’s
retirement date but before the death of the member, the member shall
return to the retirement benefit, including any post-retirement benefit
increases the member would have received, had the member not selected
the Option 2 retirement plan. The beneficiary designation cannot be
changed under any circumstance after the date of retirement. The
reduction in the monthly payment is much greater than under all other
retirement options because two people are protected for the life of both
individuals.
(4) Retirement Option 3 provides a reduced monthly benefit payable to
the member for life. At the death of the retired member, one-half (or
50%) of the monthly benefit payable to the member, shall continue to
the member’s beneficiary, if living. This option is known as a “50%
joint survivor annuity.” The reduction in the monthly benefit is based
on actuarial tables developed for this purpose and approved by the Board
of Trustees. The age of the beneficiary is an important factor in
computing this benefit. The beneficiary for the Option 3 retirement plan
may be any person. In the event the member’s beneficiary dies at any
time after the member’s retirement date but before the death of the
member, the member shall return to the retirement benefit, including
any post-retirement benefit increases, the member would have received
had the member not selected the Option 3 retirement plan. The beneficiary
cannot be changed under any circumstance after the date of retirement.
The reduction in the monthly payment, while not as great as in the
Option 2 plan, still requires a substantial reduction because two people
are protected for the life of both individuals.
(5) Retirement Option 4 provides a reduced monthly benefit payable to
the member for life. In the event the retired member dies within one
hundred twenty (120) continuous months from the date of retirement,
the balance of the payments is continued to the designated beneficiary
until a total of one hundred twenty (120) months have been completed.
                                                                       79
     The actual reduction is based on actuarial tables developed for this
     purpose and approved by the Board of Trustees. The beneficiary must
     be designated at the time of retirement. The Option 4 retirement plan is
     not available for a member whose retirement date is on or after the
     member reaches age 93. However, if the designated beneficiary is the
     member’s spouse, the Option 4 retirement plan may be selected if the
     120-month period does not extend beyond the joint life and last survivor
     expectancy of the member and the member’s spouse. If the beneficiary
     dies before the total number of “guaranteed” months have been
     completed, the remaining payments shall be computed at the rate of
     interest used in determining the original guarantee. The funds remaining
     shall be paid to the administrators, executors or assigns of the last
     surviving payee.
715:10-15-10.1. “Pop-up” of Option 2 or Option 3 Retirement Plans
     If the designated beneficiary under the Option 2 or 3 retirement plan
dies at any time after the member’s retirement date, but before the death of
the member, the member shall return to the retirement benefit, including
any post-retirement benefit increases the member would have received had
the member not selected the Option 2 or 3 retirement plan. In such an event,
the member’s monthly retirement benefit and any amount due at the death
of the member shall be calculated as if the member had selected the Maximum
retirement allowance. The increase in the member’s monthly benefit becomes
effective the first day of the month following the date of death of the
designated beneficiary or July 1, 1994, whichever is later, and shall be
payable for the member’s remaining lifetime. The member shall notify the
Teachers’ Retirement System of the death of the designated beneficiary in
writing and provide a certified copy of the beneficiary’s death certificate.
In the absence of timely notice, Teachers’ Retirement shall make retroactive
benefit payments to the member, not to exceed six (6) months from the time
the member first became eligible for increased benefits to the date notification
is received. Notwithstanding any other provision, increased benefits will
not be due for any period prior to July 1, 1994.
715:10-15-10.2. Partial lump-sum payments
     Any member of the Teachers’ Retirement System with 30 or more years
of service credit may elect to receive a partial lump-sum payment in exchange
for a reduced annuity. The application for a partial lump-sum payment will
be added to the retiring member’s final contract for retirement on a form
prescribed by the Board of Trustees. A beneficiary of a deceased active
member is not eligible to select a partial lump-sum payment.

80
(1) A member may elect to receive a partial lump-sum payment in an
amount equal to the unreduced retirement benefit (Maximum Retirement
Allowance) which would have been paid over a period of 12, 24 or 36
months, had the lump-sum option not been selected. Once the payout
amount is selected, a reduced Maximum Retirement Allowance is then
calculated using factors based upon the member’s age at retirement and
the payout option (12, 24, or 36 months) selected. This reduced
Maximum Retirement Allowance then serves as the basis upon which
other optional payment alternatives will be calculated pursuant to 70
O.S. §17-105 and OAC 715:10-15-10.
(2) The partial lump-sum payment shall be paid in a single check
separate from the regular monthly retirement benefit within thirty (30)
days of the retiring member’s first monthly benefit payment. The partial
lump-sum payment cannot be returned to the Retirement System once it
has been received by the member.
(3) The partial lump-sum payment shall be subject to federal income
tax in accordance with Internal Revenue Code or applicable Internal
Revenue Service regulations. In accordance with IRS regulations, the
member may elect to roll over the partial lump-sum payment into an
eligible individual retirement account (IRA) or other eligible retirement
plan, including the Oklahoma Teachers’ Retirement System’s 403b Tax
Sheltered Annuity Plan.
(4) The total amount of the partial lump-sum payment shall be deducted
from the member’s account balance consisting of the employee contributions
plus interest posted to the member’s account prior to July 1, 1968, for the
purpose of determining unused contributions remaining in the account.
(5) The partial lump-sum payment will be based on the service credit
and average compensation, including projected compensation, at the
time of retirement, but may be issued before final compensation and
contributions are received and posted to the member’s account. TRS
reserves the right to correct any overpayment or underpayment
discovered after final compensation and contribution postings have been
received. Should the member have been overpaid, TRS will collect such
overpayment from the member, based on an actuarial adjustment to the
member’s monthly benefit. Should the member have been underpaid,
TRS will actuarially adjust future monthly benefit payments to
compensate the member for the amount of the underpayment.
(6) A retiree, having received a partial lump-sum payment, who is
reemployed and returns to membership contributing status pursuant to
OAC 715:10-17-13, shall have his or her subsequent retirement benefit
calculated taking into consideration that a partial lump-sum payment
                                                                        81
     has been received.
     (7) Should the retiring member die after the effective date of retirement,
     but before the partial lump-sum payment is made, the payment will be
     made to the beneficiary(ies) designated by the retiring member on the
     final contract for retirement, unless the member filed a separate
     beneficiary form specifically designating a third party as the beneficiary
     of the partial lump-sum payment.
     (8) If the retiring member is married at the time of retirement, the
     member’s spouse must sign the member’s partial lump-sum application
     form acknowledging the retiring member’s intent to receive a partial
     lump sum payment.
715:10-15-10.3. Partial Lump-sum Option Factors
    The following factors have been developed by consulting actuaries and
adopted by the Board of Trustees to be used in the calculation of the partial
lump-sum payment selected by a member of the Teachers’ Retirement System.
The Board of Trustees may adopt new tables at any time upon
recommendation of the consulting actuaries, when in the opinion of the
Board the experience of the System may justify the need for such change.
Adoption of new tables will be prospective and shall not affect any partial
lump-sum payment selected and paid prior to the adoption of new factors.
                      Factor for        Factor for       Factor for
       Age            12x PLSO          24x PLSO         36x PLSO

         (1)              (2)              (3)               (4)

         45             91.59%           83.18%            74.77%
         46             91.54%           83.08%            74.63%
         47             91.49%           82.98%            74.47%
         48             91.43%           82.86%            74.30%
         49             91.37%           82.74%            74.11%
         50             91.31%           82.61%            73.92%
         51             91.24%           82.48%            73.71%
         52             91.16%           82.33%            73.49%
         53             91.08%           82.17%            73.25%
         54             91.00%           82.00%            73.00%
         55             90.91%           81.82%            72.73%
         56             90.81%           81.62%            72.43%
         57             90.71%           81.41%            72.12%
         58             90.59%           81.19%            71.78%
         59             90.47%           80.94%            71.41%

82
        60             90.34%           80.68%          71.02%
        61             90.20%           80.39%          70.59%
        62             90.04%           80.08%          70.12%
        63             89.87%           79.75%          69.62%
        64             89.69%           79.39%          69.08%
        65             89.50%           78.99%          68.49%
        66             89.29%           78.57%          67.86%
        67             89.06%           78.11%          67.17%
        68             88.81%           77.62%          66.43%
        69             88.54%           77.08%          65.62%
        70             88.25%           76.51%          64.76%
        71             87.94%           75.89%          63.83%
        72             87.61%           75.22%          62.83%
        73             87.25%           74.50%          61.75%
        74             86.86%           73.72%          60.58%
        75             86.44%           72.89%          59.33%
        76             86.00%           71.99%          57.99%
        77             85.51%           71.02%          56.54%
        78             84.99%           69.99%          54.98%
        79             84.44%           68.88%          53.32%
        80             83.85%           67.69%          51.54%
        81             83.21%           66.43%          49.64%
        82             82.54%           65.08%          47.62%
        83             81.82%           63.64%          45.46%
        84             81.05%           62.10%          43.15%

715:10-15-11. Designation of beneficiaries for retirement options
     A designation of beneficiary must be made when the retirement contract
is completed. A member who selects the Maximum or Option 1 retirement
plan may name more than one beneficiary. Beneficiaries named for the
Maximum and Option 1 retirement plan may be changed by the member at
any time. A member desiring to change or update a beneficiary designation
should request TRS Form 14R. The beneficiary for the Option 2 or Option
3 retirement plan cannot be changed even if the beneficiary dies before the
member, providing, however, the retired member may designate an alternate
beneficiary to receive the $5,000 death benefit, when the spouse predeceases
the member. The member who elects the Option 4 retirement plan must
name a beneficiary, who can be any living person. The beneficiary does not
have to be a spouse or dependent.

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715:10-15-12. Spousal consent
     When selecting a retirement option, a TRS Acknowledgment of Spousal
Consent Form shall be completed. If the member is married at the time of
retirement, the retiring member’s spouse must complete Part A,
acknowledging that the retirement options available to the member have
been explained to the spouse and the spouse concurs with the retirement
option selected by the retiring member. If the member is unmarried at the
time of retirement, the member must complete Part B, certifying that he or
she is unmarried or that at the time of retirement the whereabouts of the
spouse is unknown and cannot be located. The Spousal Consent form is an
integral part of the application for retirement and must be filed with the
retirement contract before the member’s retirement becomes effective.
715:10-15-13. Survivor benefits when death occurs after retirement
     Upon the death of a retired member who contributed to the Retirement
System, TRS shall pay a$5,000 death benefit to the retiree’s designated
beneficiary. If there is no beneficiary the retiree’s estate shall receive the
death benefit. The benefit is paid in addition to any payment provided for
by the retirement option elected by the member at the time of retirement.
(Note: The $5,000 death benefit does not apply to persons receiving payments
under the “Special $150 Per Month Plan”). In the event the total retirement
payments made to a retired member and the retired member’s joint annuitant,
if any, are less than the member’s accumulated contributions as credited at
the time of retirement, the difference shall be paid to the member’s designated
beneficiary, or if no designated beneficiary survives, to the member’s estate or
to the member’s nearest surviving next of kin as determined by Oklahoma statutes.
715:10-15-14. Actuarial tables
     Actuarial tables, developed by consulting actuaries, have been adopted
by the Board of Trustees and will be used for computation of benefits.
Factors for ages or types of annuities, which are not included in the tables,
will be computed from the same data by the same general formulas. The
Board of Trustees may adopt new tables at anytime upon recommendation
of the consulting actuaries, when in the opinion of the Board the experience
of the System may justify the need for such change. New tables shall be
published by the Board with an effective date.
715:10-15-15. Disability retirement; application; effective date
(a) Any member who is actively employed in the public schools of Oklahoma
and is regularly contributing to the Teachers’ Retirement System may be
retired due to a medical disability, which renders the member unable to
perform regular employment duties, provided such member:

84
     (1) has at least ten (10) years of Oklahoma contributory membership service,
     (2) submits a complete application for disability retirement, and,
     (3) is found by the Medical Board of Teachers’ Retirement System, to
     be medically disabled to continue regular duties, or
     (4) meets the requirements of paragraphs (1) and (2) of this subsection,
     and files a Social Security Award Notice certifying the member has
     been approved for disability benefits by the Social Security
     Administration, U. S. Department of Health and Human Services,
     (5) however, a member who is eligible for unreduced regular retirement
     is not eligible for disability retirement benefits.
(b) A member who has terminated employment or is on leave without pay
status shall be eligible for disability retirement by meeting the provisions of
paragraph (a) of this rule, providing the disability existed at the time the
leave without pay status commenced or the termination of employment from
the public schools of Oklahoma occurred, and the disability was the reason
for the leave status or termination of employment.
(c) The application for disability retirement required in paragraph (2) of
subsection (a) of this section must include:
     (1) a detailed statement by the member as to the nature of the disability
     and the reasons the disability prevents the member from performing the
     regular duties of the member’s current position.
     (2) a detailed statement by the member’s employer (chief administrative
     officer or personnel officer) as to the nature of the disability and the
     reasons the disability prevents the member from performing the regular
     duties assigned to the position of employment.
     (3) a detailed report by the member’s physician giving the medical nature
     of the disability. The attending physician’s report should certify that the
     member, in the physician’s judgment, is mentally or physically
     incapacitated from further performance of duty, that such incapacity is
     likely to be permanent and that the member should be retired. Any
     examination required to complete this report must be at the expense of
     the member.
(d) The Teachers’ Retirement System must receive the complete application
for disability retirement by the first day of the month for the Board of Trustees
to consider the application at its next regularly scheduled meeting.
(e) The effective date for disability retirement is the later of (1) or (2) below:
     (1) the first day of the month in which the disability application is
     approved by the Board of Trustees, and subsequent to termination of
     employment in the public schools, or
     (2) the date determined by the Board of Trustees after an administrative
     review, if such review is requested by the member pursuant to the
                                                                               85
     Administrative Procedures Act 75 O.S. 250 et seq., but in no instance
     will the effective date be prior to the first day of the month following
     receipt of the complete disability retirement application.
(f) The disability retirement becomes binding on the effective date specified in
subsection (e) of this section and cannot be revoked except by written request
from the member prior to the effective retirement date as provided by OAC
715:10-15-5 or by returning to employment as provided in OAC 715:10-15-21.
(g) The disability retirement benefit shall be calculated in the same manner
as regular retirement benefits described in OAC 715:10-15-7, with the
exception that no reduction will be made due to the age of the member.
Providing that any member who qualifies for disability benefits after June
30, 2003, who is married at the time his or her disability benefits commence,
may elect an actuarially reduced 100% joint survivor retirement benefit
based on factors provided by the Retirement System’s consulting actuary.
(h) The disability retirement benefit is payable under the same provisions
as the Maximum Retirement Plan or Retirement Option 2 explained in OAC
715:10-15-10. Payments are made monthly for the life of the retiree or until
the member is able to return to employment (See OAC 715:10-15-21). The
only survivor benefits available to a disabled member’s beneficiaries or
estate is a return of member contributions not paid to the member in the
form of monthly benefits and the $5,000 death benefit provided per statute,
unless the disabled member elected the reduced benefit option to provide the
spouse a monthly benefit as described in subparagraph (g) of this section.
(i) If the disabled member elects to receive an actuarially reduced 100%
joint survivor retirement benefit, the surviving spouse will continue to receive
the disabled member’s monthly benefit for life. At the death of the disabled
member, the surviving spouse will receive the $5,000 death benefit provided
by statute. If the disabled member’s spouse should die before the disabled
member, the disabled member’s monthly disability benefit will be increased
to the amount the disabled member would have been entitled to receive if
the disabled member had elected the maximum disability benefit. The
increased monthly benefit will become effective the first day of the month
following the death of the disabled member’s spouse providing proper notice
is received by the Teachers’ Retirement System, as provided in OAC
715:10-15-10.1.
715:10-15-16. Review by Medical Board
    Upon receipt of the application for disability retirement, the Medical
Board of the Teachers’ Retirement System will review the application at its
next monthly meeting. The Medical Board may recommend to the Board of
Trustees a member for permanent disability retirement or for a temporary

86
disability retirement when in its opinion the prognosis of the disability is of
a temporary nature. Temporary disability retirement benefits may be
provided for six (6) to twelve (12) months, subject to re-examination by the
Medical Board at the end of the prescribed period. The member will be
notified in writing of the recommendation of the Medical Board. If disability
benefits are not recommended by the Medical Board, the reason will be
provided to the member. The member may then submit additional medical
evidence for further review or request an administrative hearing pursuant to
the Administrative Procedures Act, 75 O.S. Section 250 et seq., and OAC
715:1-1-10 within sixty (60) days of notification of the Medical Board’s
adverse recommendation.
715:10-15-17. Additional medical evidence can be required
     If, in the opinion of the Medical Board, additional information is
necessary, the member will be required to submit to an examination by
another physician designated by the Medical Board. TRS will appoint a
physician at its cost and generally from the applicant’s area of residence, to
perform such an examination. Personal expenses, including travel by the
member, cannot be paid by TRS. The Medical Board retains the right of
final determination of the consulting physician designated to conduct any
additional examination. Failure to report for an examination, without prior
arrangement with TRS for an extension, shall be deemed cause for rejection
of disability retirement, or immediate termination of disability benefits when
a member is receiving temporary disability benefits. If the Medical Board
disagrees with the opinion of the consulting physician designated by the
Medical Board, the Medical Board must specifically state its opinions and
conclusions in its recommendation of denial.
715:10-15-18. Discontinuance of disability retirement
    The Medical Board may require any member who has been retired under
a disability, and who has not reached age sixty (60), to undergo a medical
examination. Refusal to submit to the examination results in discontinuance
of disability retirement benefits until such examination is completed. If the
medical report from such examination leads to a recommendation by the
Medical Board that a member’s disability benefits should be terminated,
that information will be provided to the member and the member will be
advised of the right to appeal the recommendation. Disability benefits will
continue to the member while the appeal process is before the Board of
Trustees. Any member under age 62 receiving disability retirement benefits
who returns to employment in any school or to a position similar to the
position held when disability benefits were approved shall immediately be
subject to discontinuance of benefits.
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715:10-15-19. Disability retirement payments
     The first monthly payment shall be due on the first day of the month
that follows the effective date of the disability retirement.
     (1) The disability retirement allowance shall be in lieu of any other
     TRS retirement benefit for which the member might otherwise qualify.
     (2) The benefit payment for the month in which the retired member
     died, if not previously paid, shall be made to the member’s beneficiary,
     or, if the member has no beneficiary, to the member’s estate. The amount
     of the benefit payment for the month in which the member died shall be
     equal to the full monthly benefit payment, regardless of the day of the
     month on which the retired member died.
     (3) Members who qualify for disability retirement shall have their total
     monthly benefit payments deducted from their accumulated
     contributions. Any monies remaining in the member’s retirement account
     at death shall be paid to the beneficiary or the estate in a lump sum.
715:10-15-20. Conversion of disability retirement to retirement
option 2
     If a deceased disabled retiree had thirty (30) years or more of creditable
service, and death occurred after June 30, 1981, but prior to the retiree
receiving twelve (12) monthly retirement payments, the surviving spouse
may elect to receive an life annuity under the provisions of Retirement Option
2 as the death benefit. Such a benefit shall be based upon the retirement the
deceased member would have been entitled to at the time of death under
Retirement Option 2. The Retirement Option 2 death benefit shall be in lieu
of all other benefits to which a surviving spouse or other beneficiary might
otherwise be entitled to receive.
715:10-15-21. Return to employment by a disabled retiree
     A disabled retiree who returns to Oklahoma public school employment
at an annual salary equal to or greater than the annual salary received at the
time of disability shall again become a member of TRS. Disability retirement
payments shall be suspended until the member has qualified to be restored
to active service. Upon completion of six (6) months of membership service,
the member shall be considered as having met the requirements to be restored
to active service. At such time, disability retirement shall be terminated and
the unused portion of the accumulated contributions shall be re-established
with TRS. If the member again retires under a regular retirement allowance,
eligibility to receive a monthly retirement allowance shall be based on total
years of creditable service (see OAC 715:10-17-5).


88
715:10-15-22. Reduction of disability benefits for excess earnings
     All persons under 62 years of age who are retired on a TRS disability
must file by April 15 of each year a report of earnings received from gainful
employment for the previous calendar year on a form provided by TRS.
Failure to submit a timely report may result in a requirement for a medical
re-examination or suspension of benefits until the report is filed. If it is
determined that the person is receiving excessive earnings or is employed in
a position requiring duties similar to those required in the position held
before having been granted disability benefits, a medical re-examination may
be required to determine if the person is still qualified for disability retirement.
715:10-15-23. Special $150 per month plan; application; effective date
(a) A former teacher, who taught a minimum of ten (10) years in the public
schools of Oklahoma prior to July 1, 1943 shall receive a monthly pension
of One Hundred Fifty Dollars ($150.00). A teacher who taught in the public
schools of Oklahoma one (1) year prior to 1934 and thereafter taught a
minimum of ten (10) years, or who taught a minimum of thirty (30) years in
the public schools of Oklahoma and reached the age of seventy (70) years
of age prior to July 1, 1984, shall be eligible for a monthly pension of One
Hundred Fifty Dollars ($150.00). The former teacher must not be otherwise
eligible to receive any benefit from TRS to be eligible for this monthly
pension.
(b) Anyone who qualifies may apply for the $150 per month pension by
providing verification of the service performed by the member and completing
a final contract for retirement. The necessary verification may be obtained
from the Teacher Personnel Section, State Department of Education, records
from the schools, the county superintendents or the county treasurers where
the school districts are located. The applicant’s signature on the final contract
must be notarized.
(c) The effective date of retirement shall be the first of the month after all
required documentation is received in the Teachers’ Retirement office,
Oklahoma City, Oklahoma. No payments shall be made retroactive.
715:10-15-24. Due-date of retirement benefit payments
(a) Monthly benefit payments are due the first day of each month to all
eligible retirees. Payments are deposited in the United States Postal Service,
or paid to a designated agent providing electronic fund transfers, on the last
day of each month. The benefit payment for the month in which the retired
member died, if not previously paid, shall be made to the member’s
beneficiary, or, if the member has no beneficiary, to the member’s estate.
The amount of the benefit payment for the month in which the member died

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shall be equal to the full monthly benefit payment, regardless of the day of
the month on which the retired member died. TRS cannot be responsible
for payments lost in the mail, except that duplicate payments will be processed
after fifteen (15) days.
(b) Effective January 1, 2000, newly retired members shall be required to
receive monthly benefit payments via electronic fund transfers to a banking
or financial institution designated. The retiree and receiving institution must
complete the form prescribed for this purpose by the Teachers’ Retirement
System. In the event the electronic fund transfer creates an undue hardship
on the retiree, the executive secretary of the Teachers’ Retirement System
may waive this requirement when it is determined to be in the best interest
of the member and the Retirement System.
715:10-15-25. Changes and corrections to retirement benefit payments
    Members should promptly notify TRS of any change that affects their
monthly retirement payment. Changes in address, dependents status for
insurance coverage or deductions for state and federal income taxes will be
processed and reflected in the next month’s payment, if received by TRS on
or before the fifteenth (15th) of the month. Changes received after the 15th
will not be processed until the following month.
715:10-15-26. Code Section 415 limits as applied to TRS
     Notwithstanding any other provision of the administrative code, benefits
paid from the retirement system shall not exceed the maximum benefits
permissible under Internal Revenue Code Section 415. Solely for purposes
of calculating and complying with the limitations under Internal Revenue
Code Section 415, a member’s compensation for a year shall be the member’s
taxable income as reported by the member’s employer on the Form W-2
that is filed with the Internal Revenue Service for the year in question.
715:10-15-27. Code Section 401(a)(17) limits as applied to TRS
     Notwithstanding any other provision of the administrative code, benefit
calculations from the retirement system shall not take into account
compensation in excess of the amount prescribed by Section 401(a)(17) of
the Internal Revenue Code. However, this limit shall not apply to any eligible
participant (any member who joined the system prior to July 1, 1996).




90
          Subchapter 17. Post-Retirement Employment

Section
715:10-17-1.     Definitions
715:10-17-2.     Break between employment and retirement
715:10-17-3.     Fulltime employment after retirement [REVOKED]
715:10-17-4.     Fulltime employment with no effect on benefits
                 [REVOKED]
715:10-17-5.     Permissible employment
715:10-17-6.     Earnings limits
715:10-17-7.     Employment by a disabled retiree
715:10-17-8.     Repayment of benefits
715:10-17-9.     Annual W-2P tax statements
715:10-17-10.    Effective date of OAC 715:10-17-1 through 715:10-17-9
715:10-17-11.    Special waiver for retirees past age 70
715:10-17-12.    Earnings report by remitting agencies
715:10-17-13.    Election to return to qualifying employment
715:10-17-1. Definitions
     The following words or terms, when used in this subchapter, shall have
the following meaning, unless the context clearly indicates otherwise:
     “Public school” means all schools, colleges, universities, state agencies,
boards, commissions or other state educational entities conducted within
the state supported wholly or partly by public funds and operating for any
function of public education. All employment by any state agency, which
would cause or allow the member to be enrolled in TRS as an active employee
will constitute employment by a public school for the purposes of this section.
Members receiving service retirement benefits may be employed in private
schools, public schools in other states, and in private business without
affecting their benefits.
     “Retired Member” shall be inclusive of any person, who is receiving
monthly benefits from the Teachers’ Retirement System of Oklahoma,
whether that person is an individual, incorporated entity, corporation,
proprietorship, partnership, limited liability company or partnership, or any
other business structure that contracts with a public school to perform duties
ordinarily performed by classified or non-classified personnel.
     “Retirement” means withdrawal from active service, with a retirement
benefit in lieu thereof.




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715:10-17-2. Break between employment and retirement
     A retired member is not eligible to be employed by the public schools of
Oklahoma, in any capacity, for sixty (60) calendar days between the retiree’s
last day of pre-retirement public-education employment and any post-
employment. (Note: The last day of pre-retirement employment means the
last day the employee is required to be physically present on the job to
complete the terms of the employment contract or agreement.) Employment
under any condition during this time or payment at a later time for services
performed during this time period will cause the forfeiture of all retirement
benefits received during the period.
715:10-17-3. Fulltime employment after retirement (REVOKED)
715:10-17-4. Fulltime employment with no effect on benefits (REVOKED)
715:10-17-5. Permissible employment
    Post-retirement employment in the public schools, institutions, and
agencies covered by TRS is allowed after the break in employment outlined
in OAC 715:10-17-2 has been met. Employment subject to this section
shall include any services performed by a retired member, as defined in this
subchapter, except for payments received as an independent contractor or
consultant, pursuant to a lawful contract that complies with the requirements
of 70 O.S. § 6101.2(B). The Teachers’ Retirement System will follow
guidelines in subsection B of Section 6-101.2 of Title 70 and federal
guidelines from the Department of Labor and the Internal Revenue Service
in determining when a retired person qualifies as an independent contractor
or consultant.
715:10-17-6. Earnings limits
(a) Effective July 1, 2003, the annual earnings limit from employment in
the public schools of Oklahoma for a retired member under age 62 may not
exceed one-half (1/2) of the member’s final average salary used in computing
retirement benefits or $15,000, whichever is less.
(b) Effective July 1, 2003, the annual earnings limit from employment in
the public schools of Oklahoma for a retired member age 62 or older may
not exceed one-half (1/2) of the member’s average salary used in computing
retirement benefits or $30,000, whichever is less.
(c) Notwithstanding the provisions of subsections (a) and (b) of this section,
effective July 1, 2003, any retired member who has been retired for thirty-
six (36) months or more may earn up to $30,000 annually from employment
in the public schools of Oklahoma
(d) For purposes of this rule the following shall apply:

92
    (1) Earnings shall mean “regular annual compensation” as defined in
    OAC 715:10-13-1 and 70 O.S. § 17-116.2(D). Earnings shall include
    any payment by a public school for services rendered by a retired member
    who is employed for any purpose whatsoever. Supplemental retirement
    payments paid by a former public school employer in accordance with
    70 O.S. 17-105(9) or other applicable state statutes or payments to an
    independent contractor or consultant, pursuant to a lawful contract which
    complies with the requirements of 70 O.S. § 6-101.2(B), will not be
    counted as earnings.
    (2) Earnings in excess of the maximum limit will result in a loss of
    future retirement benefits of one dollar ($1) for each one dollar ($1)
    earned over the maximum.
    (3) The earnings limits will, in all cases, be applied on a calendar year
    basis from January 1 through December 31.
    (4) The earnings limit for the calendar year in which a member retires
    shall be one-twelfth (1/12th) of the annual limit multiplied by the number
    of months the member is eligible to work and receive payments from
    the public schools of Oklahoma.
    (5) The earnings limit for the calendar year in which a member reaches
    age 62 shall be prorated in equal monthly increments with the month in
    which the member’s birth date occurs counted at the higher earnings level.
    (6) The earnings limit for the calendar year in which a member reaches
    his or her thirty-sixth (36th) month of retirement shall be prorated in
    equal monthly increments.
    (7) For purposes of this section, for a retired member whose average
    salary exceeds $40,000, “average salary” means the weighted or
    aggregated average used to compute monthly benefits for all the
    member’s years of credited service.
715:10-17-7. Employment by a disabled retiree
     A member retired under the disability retirement provisions of TRS is
not eligible to be employed, in any capacity, by any school, public or private,
in Oklahoma or in other state, from the date of retirement to age 62. After
age 62, a member receiving disability retirement shall be eligible for post-
retirement employment under the same conditions outlined above for other
retired members.
     (1) A disabled retiree who returns to Oklahoma public education
     employment at an annual salary equal to or greater than the annual
     salary received at the time of disability shall again become a contributing
     member of TRS. Disability retirement payments shall be suspended
     until the member has qualified to be restored to active service. Upon

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     completion of six (6) months of membership service, the member shall
     be considered as having met the requirements to be restored to active
     service. At such time, disability retirement shall be terminated and the
     unused portion of the accumulated contributions shall be re-established
     in the member’s active retirement account. If the member again retires
     under a regular retirement allowance, eligibility to receive a monthly
     retirement allowance shall be based on total years of creditable service
     (see OAC 715:10-15-21).
     (2) Each retired member, who has not attained age 65, receiving
     disability retirement from TRS shall complete a TRS Report of Earned
     Income by Disabled Member Form and file such form with TRS by
     April 15 each year. The report will list all “earned” income from all
     sources. Failure to complete a TRS Report of Earned Income by
     Disabled Member Form may result in suspension of monthly benefits if
     the executive secretary of TRS deems such action necessary and
     appropriate (see OAC 715:10-15-22).
715:10-17-8. Repayment of benefits
    Any amount due TRS because of earnings exceeding the maximum
must be repaid by the member prior to March 1 of the year following the
calendar year of employment. TRS has the right to suspend monthly benefits,
and/or withhold money due beneficiaries, to settle any remaining balance
due TRS from a member’s account. Repayment of benefits forfeited due to
employment in excess of the maximum limit will require an interest penalty
of eight percent (8%) per annum, compounded monthly from the date due
(March 1) to the date of repayment.
715:10-17-9. Annual W-2P tax statements
     TRS will not adjust W-2P, or other year-end tax statements, to reflect
re-payment of benefits received after December 31. Any adjustment in
retirement income required because of repayments received after December
31 will be shown in the calendar year in which the transaction was completed.
715:10-17-10. Effective date of OAC 715:10-17-1 through 715:10-17-9
     OAC 715:10-17-1 through 715:10-17-9 shall become effective July 1,
1993, for all retired members of the Teachers’ Retirement System and will
apply to all members who retire after that date. Members retired prior to
July 1, 1993, who were employed by the public schools of Oklahoma during
the calendar year 1993, may elect to have post-retirement employment treated
under the cited rules for the calendar year 1993, if in their opinion, it would
provide a greater opportunity for employment during this period than the
rules in existence during the period from January 1, 1993, to June 30, 1993.

94
715:10-17-11. Special waiver for retirees past age 70
    Any retired member receiving TRS benefits, who reached age 70 prior
to July 1, 1991, shall not be restricted by the earnings limits in OAC
715:10-17-6 until January 1, 1994. To qualify for this rule, the member
must be employed less than half-time compared to other employees in similar
positions. Effective January 1, 1994, all retired members shall have the
earnings limit in OAC 715:10-17-6 applied to their post-retirement employment.
715:10-17-12. Earnings report by remitting agencies
     Prior to March 15 of each year, each employer covered by the provisions
of TRS shall submit a report showing the total earnings received by each
individual, member and non-member of TRS, during the previous calendar
year. The report shall have the name, social security number, address and
the total earnings paid from all sources from January 1 to December 31 of
the year and shall be in the format provided by TRS. In lieu of this report,
the employer may provide a copy of the magnetic media report prepared
and submitted to IRS to report W-2 Tax Statements and other taxable income
reportable to IRS and the Social Security Administration.
715:10-17-13. Election to return to qualifying employment (Amended 2005)
    Any retired member who returns to employment in the public schools
of Oklahoma and is employed half-time or more as defined in OAC 715:10-
3-2 and OAC 715:10-3-3 may return to membership contributing status
under the following conditions:
    (1) The retired member must file an irrevocable election to discontinue
    retirement benefits for the period of such employment. The return to
    membership contributing status must coincide with the beginning of a
    school year or the member must refund all benefit payments received
    from the beginning of the school year in which employment begins and
    make employee contributions on any compensation earned from the
    beginning of the school year to the date of the election to return to
    contributing status.
    (2) The election form must be completed by the employing school and
    signed by the retired member and an official who has authority to employ
    or pay regular employees of the school. In addition, a new Personal
    Data Form 1-A shall be completed and submitted to TRS to return a
    member to work status.
    (3) The form must include the nature of the position held and the
    beginning date of employment.
    (4) Retirement payments shall be discontinued in accordance with OAC
    715:10-17-14. Retirement payments shall not be resumed during the
    summer months between consecutive years of this type of employment.
                                                                           95
     (5) The retired member and the employing public school shall remit
     employee and employer contributions in the same manner as active
     contributing employees.
     (6) The retired member shall accumulate service credit in the same
     manner as active contributing employees of the system.
     (7) Upon termination of employment, the retired member’s monthly
     retirement benefits will resume with an adjustment to reflect credit for
     the additional employment as follows:
          (A) The initial benefit calculated at the time of retirement will not
          be affected by the additional employment.
          (B) Service credits will be accumulated and credited to the member’s
          record in accordance with Subchapter 3 of this Chapter.
          (C) A supplemental benefit for the year(s) of additional service will
          be calculated using the standard retirement benefit formula and the
          retirement plan selected by the retiree when the member first retired
          (See OAC 715:10-15-7 and 715:10-15-7.1).
          (D) The average salary used in calculating the supplement benefit
          will be the average of the salaries earned during this period of
          employment. In the event the member is employed for less than the
          number of years required to determine the appropriate average
          salary, the average will be determined by the number of years
          employed. Annual salaries will be based on contributions made and
          determined on a school year basis.
     (8) If the retired member is employed for a period less than six months,
     or for a period of time which does not qualify for additional service
     credit, the employee contributions remitted by the employee or by the
     employer on the retired member’s behalf will be refunded to the member
     without interest. Employer contributions as provided by OAC 715:10-
     13-3 will not be refunded.
     (9) The employer shall provide written notice to the Teachers’
     Retirement System when the retired member’s employment is terminated.
     The member cannot resume benefit payments under this rule and remain
     employed. The member must comply with the sixty (60)-day non-
     employment rule that applies to a member who elects regular retirement.
     Retirement payments will be resumed effective the first of the following
     month, provided employment terminates on or before the 15th of the
     month, otherwise benefits will be resumed the first of the next succeeding
     month. Any supplemental benefit determined pursuant to this section
     shall commence at the same time.
     (10)      If the retired member dies while engaging in half-time or more
     employment as provided in this section, the retired member’s
96
    beneficiaries will receive any survivor benefits specified in the terms of
    the retirement contract elected by the member, the $18,000 death benefit
    provided by OAC 715:10-9-2, if applicable, and a return of employee
    contributions, plus interest accumulated during the current employment,
    as defined in OAC 715:10-9-1. The beneficiaries of the deceased retired
    member will not be entitled to both the $18,000 death benefit and the
    $5,000 death benefit defined in OAC 715:10-9-4.
    (11)If a retired member does not file an election to discontinue monthly
    benefits while employed by the public schools of Oklahoma, he or she
    waives the accrual of service credit and the right to any supplemental
    benefit from service in the position, except to the extent that the value
    of the accrual of additional service credit and the supplemental benefit
    would exceed the actuarial value of the benefits received under this
    Chapter and that were continued or begun pursuant to an election under
    this section. In such a case, a supplemental benefit equal only to the
    difference in value will be payable upon subsequent retirement.
    (12)      Retired members returning to half-time or more employment
    under this subchapter and section shall not be considered “active
    members” for purposes of purchasing or transferring any form of prior
    service credit of whatever nature.
    (13)      A retiree having received a partial lump-sum payment, who is
    re-employed and returns to membership contributing status pursuant to
    OAC 715:10-17-13, shall have his or her subsequent retirement benefit
    calculated taking into consideration that a partial lump-sum payment
    has been received.
715:10-17-14. Termination and Resumption of Benefit Payments
(Amended 2005)
    When a member returns to employment in a position that requires
suspension of benefit payments, the following will apply:
    (1) If the member commences employment after the 15th of the month
    the benefit payment for that month will be paid at the end of the month.
    (2) If the member commences employment on or before the 15th of the
    month the benefit payment for that month will not be due and must be
    refunded if paid to the member..
    (3) If the member terminates employment on or before the 15th of a
    month and the Teachers’ Retirement System is notified prior to the 20th
    of the month the benefit payment for that month will be paid at the end
    of the month.
    (4) If the member terminates employment after the 15th of a month the
    benefit payment for than month will not be due.

                                                                           97
         Subchapter 19. Tax-Sheltered Annuity Program

Section
715:10-19-1.    Authority for program
715:10-19-2.    General description
715:10-19-3.    Eligible employees
715:10-19-4.    Program requisites
715:10-19-5.    Contributions
715:10-19-6.    Calculation of exclusion allowance [REVOKED]
715:10-19-7.    Methods of computing maximum TSA contribution
715:10-19-8.    Distributions
715:10-19-9.    Withdrawals for financial hardship
715:10-19-10.   Example of tax-shelter earnings [REVOKED]
715:10-19-11.   Rollovers from OTRS 403(b) program to other eligible
                retirement plans
715:10-19-1. Authority for program
    The TRS Tax-Sheltered Annuity Program is designed to meet the
requirements of sections 403(b) and 401(g) of the Internal Revenue Code.
The TRS Tax-Sheltered Annuity is administered by the Board of Trustees.
Section 403(b) of the Federal Internal Revenue Code authorizes tax-sheltered
annuity programs, setting forth requirements that must be followed. Failure
to follow these requirements may cause penalties to be imposed on the
individual member or cause the tax-sheltered status of the Oklahoma
Teachers’ Retirement System program to be disallowed. Changes to this
section of the tax code by Congress usually affect the program’s
administration; therefore, this program will change as often as Congress
amends or revises Section 403(b) of the IRS Code. Title 70 O.S. 17-108
allows members of TRS to participate in the TRS Tax-sheltered Annuity
Program. In making deposits to this program the member and the employing
school must comply with all aspects of the IRS Code.
715:10-19-2. General description
    The following is a general description of the tax-sheltered annuity plan
available from Teachers’ Retirement. The member should be aware that
tax-sheltered annuity plans are also offered by most major insurance
companies to the employees of Oklahoma public schools.
    (1) The 403(b) program’s primary purpose is to enable members to
    contribute to a supplemental retirement program in preparation for
    retirement.
    (2) An employer makes salary reduction contributions on behalf of an
    employee to the 403(b) program at the election of that employee.
98
    Employers cannot require contributions to the program as a condition
    of employment. The member’s employer deducts tax-sheltered monies
    from the member’s salary and forwards the deductions to TRS. TRS
    places the monies in the member’s account and debits or credits earnings
    monthly. Statements are mailed to the member’s home address on a
    quarterly basis.
    (3) Each participating member receives an immediate vested and
    nonforfeitable interest in the amounts credited to his or her tax-sheltered
    account. The participant is precluded from selling, assigning, or pledging
    his or her funds in the tax-sheltered account to another person or party,
    except to designate a beneficiary in the event of death.
    (4) Participant’s accounts are not assessed administration fees for services
    rendered by TRS. However, investment management fees are deducted
    from gross earnings prior to earnings being applied to member accounts.
    (5) Monies in this program are not insured in the same manner as
    deposits are insured with various privately operated financial institutions,
    (i.e. FDIC). Deposits are kept separate from the member’s regular
    retirement account, but are invested in the same manner, using the same
    investment practices and policies used to invest the other assets of TRS.
    (6) Money deposited in the Teachers’ Retirement System Tax-Sheltered
    Annuity Program will not be matched by the State of Oklahoma.
715:10-19-3. Eligible employees
     To participate in the 403(b) program, a member must be an active or
retired employee of a qualifying educational organization, one which
normally maintains a regular faculty, curriculum, and a regular organized
body of students in attendance at the place where its educational activities
are conducted. Oklahoma Department of Education employees are eligible
to participate in the program because they perform services for educational
organizations. Employees of organizations that are tax-exempt because they
are organized and operated exclusively for educational purposes are also
eligible to participate if the organizations are governmental. University
regents or trustees and members of boards of education are not eligible
employees since they are elected or appointed. Employees of the Oklahoma
Teachers’ Retirement System are also not eligible. Retired members who
are employed part-time by a public school in Oklahoma are eligible to
participate in the tax-sheltered annuity program.
715:10-19-4. Program requisites
     The Internal Revenue Service has ruled that money deposited in the
Teacher Deposit Fund may be tax-sheltered, provided the following steps
are taken:
                                                                             99
      (1) A board of education or other governing board adopts a resolution
      making the TRS Tax-sheltered Annuity Program available to its employees.
      (2) The member signs an amended contract with the board of education
      or governing board for the express purpose of buying an annuity with
      the Teachers’ Retirement System. This is done by either taking a reduction
      in salary or waiving a salary increase. The salary reduction agreement
      must be entered into prior to the date contributions are to commence
      and may only apply to amounts earned by the member after the agreement
      is effective.
      (3) An employer permitting any TRS member to contribute to the tax-
      sheltered annuity program must permit all eligible TRS members to
      contribute to the program, and other employees to contribute to other
      403(b) programs.
715:10-19-5. Contributions
     After a member enters into the salary reduction agreement (completing
an amended contract and any other payroll requirement specified by the
employer), the employer shall make payroll deductions on a monthly basis.
The employer shall submit the contributions for all members in the school
district to TRS, on TRS Form 42 and TRS Form 17, showing the member’s
name, social security number and amount contributed on behalf of each
member. (No substitute reporting form is accepted by TRS).
     (1) All contributions must be salary reductions. Members cannot make
     direct payments to the 403(b) program. If the contributions are not
     salary reductions, tax-deferral will not be possible. As a result, the
     TRS program will only accept employer payments for employees.
     (2) Employers should forward tax-sheltered contributions in a timely
     manner. Employers are also responsible for ensuring that members do
     not contribute more than the maximum amount allowed by federal tax
     law. Salary reduction agreements are determined by the limits under
     the Internal Revenue Code.
          (A) The amount of deferrals made in a member’s taxable year under
          the Tax-Sheltered Annuity Program, and any other plans, contracts,
          or arrangements of the employer may not exceed the amount of the
          limitation in effect under Internal Revenue Code Section 402(g)(1),
          as increased by Code Sections 402(g)(4) and 402(g)(8), for such
          taxable year.
          (B) Contributions to the 403(b) plan made in a calendar year (unless
          another twelve month period ending within the calendar year is
          elected) with respect to an employee may not exceed limitations
          under Code Section 415(c) for such calendar year.

100
(3) Each employee shall specify in the salary reduction agreement the
dollar amount or percentage by which the employee’s salary is to be
reduced by the employer. Each such agreement shall be legally binding
and irrevocable as to the amounts earned while it is in effect. A member
may change the salary reduction agreement during the member’s taxable
year. A member may terminate the agreement with respect to amounts
not yet earned. Any member who wishes to change the amount
contributed to the tax-sheltered program must complete a new amended
contract. Contributions can be stopped at any time.
(4) Employers are required to report 403(b) information on the federal
Form W-2. Employers should mark the “deferred compensation” block
in the correct box of the W-2 and should put the amount of the
contribution and the appropriate code in the specified box of the W-2.
(5) Employers should not withhold federal and state taxes on tax-
sheltered contributions. No other withholdings, including regular
contributions to TRS and FICA taxes, should be lowered by the tax-
sheltered contributions.
(6) Any active or retired member may roll over or transfer funds from
other 403(b) tax-sheltered annuity programs subject to limitations in
the Internal Revenue Code and/or pertinent sections of the U.S. Treasury
Regulations. Written verification that the roll-over or transfer is from a
403(b) plan or other allowable plan must be received by TRS before
any such monies will be accepted.
(7) The minimum allowable contribution is two hundred dollars ($200)
per taxable year of the member.
(8) The Internal Revenue Code has set limits on the amount a member
can exclude from his or her income for tax purposes. It is each employee’s
and the employing school’s responsibility to ensure that contributions
do not exceed the maximum limitations set forth in the Internal Revenue
Code. TRS does not compute the maximum allowable contribution for
the 403(b) participants and TRS is prohibited from entering into hold
harmless agreements with participating employees or employers.
(9) TRS will distribute any excess deferral (within the meaning of
Internal Revenue Code Section 402(g)) plus attributable income to the
employee on or before the following April 15. TRS will furnish the
employee with a 1099R form with respect to the attributable income.
The employee should include the refund in the employee’s gross income
for the year the excess contribution was made. The employee may have
to file an amended income tax return for the year the excess contribution
was made. If the excess contribution is not distributed as provided in
this subsection, the distribution may not occur until a regular distribution
                                                                        101
      would occur, and the employee must also include the refund in the
      employee’s gross income for the year of distribution. In this case the
      excess contribution is taxed twice.
715:10-19-6. Calculation of exclusion allowance [REVOKED]
715:10-19-7. Methods of computing maximum TSA contribution
(a) The elective deferral limit for 403(b) plans will increase from $10,500
in 2001 to $15,000 in 2006, based upon the following schedule:
    (1) Year 2002: $11,000
    (2) Year 2003: $12,000
    (3) Year 2004: $13,000
    (4) Year 2005: $14,000
    (5) Year 2006: $15,000
(b) These contribution levels replace the 20% of compensation limitation
with 100% of taxable compensation, not to exceed the applicable dollar
limit. For persons age 50 or older, increased contribution amounts above
the applicable deferral limits are as follows:
    (1) additional $1,000 for 2002
    (2) additional $2,000 for 2003
    (3) additional $3,000 for 2004
    (4) additional $4,000 for 2005
    (5) additional $5,000 for 2006
(c) A special catch-up provision allows members who have more than fifteen
years of service with employer to make additional contributions up to $3,000
per year. However, aggregate contributions of all years above the limits
may not exceed $15,000. In addition a member can no longer make catch-
up contributions once his or her prior years’ contributions to any tax-sheltered
annuity exceed $5,000 multiplied by the years of service with the employer.
715:10-19-8. Distributions (Amended 2005)
(a) Distributions from members’ accounts must be made in accordance with
the Internal Revenue Code. TRS will distinguish pre-’87 and post-’86
account balances. Both account balances will be distributed in accordance
with the applicable Internal Revenue Code provisions as they pertain to
individual retirement accounts or annuities. The post-’86 account balance
will include earnings after 1986 on the pre-’87 account balance. TRS will
adjust each balance as required under IRS rules and regulations.
(b) Distribution of deposits made, or income earned, after December 31,
1988, will not be made to members except under one of the following
circumstances:


102
     (1) Attainment of age fifty-nine and one-half (59 1/2).
     (2) Death.
     (3) Disability. For the purpose of this section, a member is considered
     disabled if the member is unable to engage in any substantial gainful
     activity by reason of any medically determinable physical or mental
     impairment which can be expected to result in death or to be of long-
     continued and indefinite duration.
     (4) Separation from service (termination of employment).
     (5) Retirement.
     (6) Financial hardship (this distribution does not include accumulated
     earnings).
     (7) Transfer to another tax-sheltered annuity program.
(c) Distributions from this tax-sheltered annuity program are subject to
federal and state income taxes. Certain distributions may also be subject to
penalties and/or excise taxes under the Internal Revenue Code. Members
should seek tax advice prior to requesting distributions.
(d) Upon filing a properly executed distribution request application, a portion
or all of a member’s tax-sheltered annuity balance that qualifies under Internal
Revenue Code regulations, may be distributed. Distributions, other than
required minimum distributions and hardship withdrawals, are subject to a
mandatory federal withholding of twenty percent (20%). (Distribution of
these deposits shall not affect membership status.)
(e) Members who have attained age 59 1/2 are eligible to withdraw all or
any portion of their deposits, subject to the provisions of subsection (i) of
this section.
(f) Members who have not attained age 59 1/2 and who have not separated
from service (retired or terminated employment) may withdraw only
contributions made prior to January 1, 1989, unless a financial hardship
exist. (See OAC 715:10-19-9.)
(g) Members eligible to take a distribution may take up to 80% of their
account balance at any time. For those desiring to close their accounts, they
may do so after earnings from the previous month have been posted. No
earnings will be paid during the month in which an account is closed.
(h) Members who roll-over their tax-sheltered annuity accounts to another
tax-sheltered annuity program may return these funds to the Teachers’
Retirement System’s program at a later time.
(i) At termination or retirement, a member may elect one of the following
annuity distribution options subject to Internal Revenue Service requirements,
including Code Section 403(b)(10), Code Section 401(a)(9), and the
incidental death benefit requirements of Code Section 401(a);

                                                                            103
     (1) Minimum distribution option under Code Section 401(a)(9), with
     the post-1986 deferrals and all post-1986 earnings subject to the current
     Internal Revenue Service distribution rules and the pre-1987 account
     balance subject to the prior applicable Internal Revenue Service
     distribution rules.
     (2) Lump sum surrender option, payable only to the member.
     (3) Partial lump sum, where the member selects a specified lump sum
     payable to the member.
(j) Earnings on Teachers’ Retirement System tax-sheltered annuity accounts
are calculated each month-end, based on accumulated deposits as of the
first day of the month.
(k) The beneficiary(ies) designated on a member’s regular retirement account
also shall serve as beneficiary(ies) for the tax-sheltered annuity account,
unless otherwise designated by the member.
(l) In the event the member dies, and if the member’s sole beneficiary is his
or her spouse, the surviving spouse has the same privileges to the account
as the member. In order to satisfy minimum distribution rules, if the sole
designated beneficiary is the member’s surviving spouse, distributions must
commence on or before the later of:
     (1) the end of the calendar year immediately following the calendar
     year in which the member died; or
     (2) the end of the calendar year in which the member would have attained
     age 70 1/2.
(m) Non-spousal beneficiaries (individuals or trusts) must begin taking a
required minimum distribution no later than December 31 of the year
following the year of the member’s death. In the event there is no designated
beneficiary, or if the member’s estate or a charitable organization is the
designated beneficiary, the entire account balance must be distributed by
the fifth year following the member’s death.
(n) In all cases, distribution of a termination or retirement benefit must
begin no later than April 1 of the calendar year following the later of the
calendar year in which the member attains age 70 1/2 or retires.
715:10-19-9. Withdrawals for financial hardship (Amended 2005)
(a) Financial hardship is defined as an immediate and heavy financial need
experienced by the participant, resulting from a sudden and unexpected
illness or accident of the participant or of a dependent of the participant,
loss of the participant’s property due to casualty, or other similar
extraordinary and unforeseeable circumstances arising as a result of events
beyond the control of the participant. The circumstances that constitute a
financial hardship will depend upon the facts of each case, but, in any case,

104
payment may not be made to the extent that such hardship is or may be
relieved:
     (1) through reimbursement or compensation by insurance or otherwise, or
     (2) by liquidation of the participant’s assets, to the extent the liquidation
     of these assets would not itself cause severe financial hardship,
     (3) by cessation of deferrals under the plan,
     (4) by other distributions or nontaxable (at the time of the loan) loans
     from plans maintained by the employer, by any other employer, the
     employer(s) of the participant’s spouse, or by borrowing from
     commercial sources on reasonable commercial terms, in an amount
     sufficient to satisfy the need.
(b) Specific needs that are deemed to satisfy the requirements of a hardship
withdrawal include, but are not limited to:
     (1) Medical expenses incurred by the participant, the participant’s
     spouse or dependents which are not covered by insurance or other
     reimbursement;
     (2) Costs directly related to the purchase of a principal residence for
     the participant (excluding mortgage payments);
     (3) Payment of tuition, related educational fees, and room and board
     expenses, for the next twelve (12) months of post-secondary education
     for the participant, or the participant’s spouse or dependents; or
     (4) Payments necessary to prevent the eviction of the employee from
     the employee’s principal residence or foreclosure on the mortgage of
     that residence.
(c) Withdrawal amounts are permitted only to the extent reasonably
necessary to satisfy the financial hardship. Withdrawal of credited earnings
in the member’s account is not permitted.
(d) Once a member has satisfactorily completed a hardship application for
withdraw, an administrative review will be conducted by a committee
consisting of the Secretary-Treasurer, Director of Operations and the
administrative assistant responsible for the Tax-Sheltered Annuity Program.
The review committee will recommend to the Executive Secretary those
applications that meet the requirement of a financial hardship.
(e) The Executive Secretary will have the authority to approve payment of
qualifying requests. The Executive Secretary will also report all approved
requests and denials to the Board of Trustees each month.
(f) Distributions made via a hardship withdrawal request may be subject
to an early distribution penalty of ten percent (10%).
715:10-19-10. Example of tax-shelter earnings (REVOKED)


                                                                              105
715:10-19-11. Rollovers from OTRS 403(b) program to other eligible
retirement plans
(a) Notwithstanding any other provision of the administrative code, a
member, a member’s spouse, or a member’s former spouse who is the
alternate payee under a qualified domestic order, as defined in OAC 715:10-
25-1, may elect at the time and in the manner prescribed by the Board of
Trustees, to have all or a portion of an eligible rollover distribution paid
directly to another eligible retirement plan as required under Internal Revenue
Code Section 403(b)(10) and the regulations thereto.
(b) The following definitions shall apply for purposes of the words and
phrases used in this Section:
     (1) an “eligible rollover distribution” includes any distribution of all or
     any taxable portion of the tax-sheltered annuity benefit to the credit of
     a member, a member’s spouse, or a member’s former spouse who is the
     alternate payee under a qualified domestic order, as defined in OAC
     715:10-25-1, except that an eligible rollover distribution does not include
     the following:
          (A) any distribution that is one of a series of substantially equal
          periodic payments, paid not less frequently than annually, made for
          the life or life expectancy of the member or the member and the
          member’s spouse.
          (B) any distribution that is one of a series of substantially equal
          periodic payments for a specified period of ten years or more.
          (C) any distribution to the extent such distribution is required under
          Internal Revenue Code Section 401(a)(9).
          (D) the portion of any distribution that is not includable in the gross
          income.
          (E) any distributions during a year that are reasonably expected to
          total less than $200.
     (2) an “eligible retirement plan” includes an individual retirement
     account or annuity described in Internal Revenue Code Sections 408(a)
     or (b) or another annuity program described in Internal Revenue Code
     Section 403(b) that is willing to accept the distributee’s eligible rollover
     distribution. However, in the case of an eligible rollover distribution to
     the member’s spouse, an eligible retirement plan only includes an
     individual retirement account or an individual retirement annuity
     described in Internal Revenue Code Sections 408(a) or (b).
(c) Eligible rollover distributions may be paid to not more than two eligible
retirement plans, as selected by the distributee, when a direct rollover is
elected.

106
715:10-19-12. The Oklahoma Teachers’ Deferred Savings Incentive
Plan Fund
(a) The Oklahoma Teachers’ Deferred Savings Incentive Plan Fund,
established and funded pursuant to Enrolled House Bill 1428 of the first
session of the 47th Oklahoma State Legislature, shall be used for payment
by the Teachers’ Retirement System of Oklahoma (TRS) of matching
contributions into the TRS Tax-Sheltered Annuity accounts of active,
contributing TRS members. Accounts eligible to receive matching
contributions are those maintained by TRS in accordance with Section 403(b)
of Title 26 of the United States Code.
(b) The Teachers’ Retirement System shall hold and invest funds in the
Oklahoma Teachers’ Deferred Savings Incentive Plan Fund in the same
manner as funds managed in accounts of members contributing to an account
established pursuant to Section 403(b) of the Internal Revenue Code of
1986, as amended.
(c) If the Oklahoma Teachers’ Deferred Savings Incentive Plan Fund is
insufficiently funded to fully pay such contributions in any month, payments
shall be suspended until sufficient monies are available.
715:10-19-13. Contributions from the Oklahoma Teachers’ Deferred
Savings Incentive Plan Fund into Tax-Sheltered Annuity accounts of
active contributing TRS members
(a) Provided funds in the Oklahoma Teachers’ Deferred Savings Incentive
Plan Fund are sufficient to fully fund such contributions, the Teachers’
Retirement System of Oklahoma (TRS) shall contribute $25.00 per month
into the Tax-Sheltered Annuity account of each active contributing TRS
member who contributes at least $25.00 per month into his or her TRS Tax-
Sheltered Annuity account maintained pursuant to Section 403(b) of Title
26 of the United States Code.




                                                                        107
                  Subchapter 21. Investment Policy

Section
715:10-21-1.     Investment of funds
715:10-21-2.     Statement of investment policy
715:10-21-3.     Investment guidelines
715:10-21-4.     Portfolio assets allocation
715:10-21-5.     Cash equivalents guidelines
715:10-21-1. Investment of funds
    The Board of Trustees of the Teachers’ Retirement System shall be the
trustees of several funds created by the Teachers’ Retirement Act and shall
have full power to invest and reinvest such funds:
    (1) The Board of Trustees shall employ an Executive Secretary who
    shall be the administrative officer of the Teachers’ Retirement System and
    shall be responsible for the general administration of the Retirement System.
    (2) The Chief Investment Officer of the Retirement System shall be an
    employee of the Teachers’ Retirement System.
    (3) The in-house investment staff shall be under the supervision of the
    Chief Investment Officer, under the authority of the Board of Trustees.
    The Executive Secretary will designate those persons who are authorized
    to trade the short-term investment fund.
715:10-21-2. Statement of investment policy
(a) The purpose of the investment policy is to identify various policies and
procedures that enhance opportunities for a prudent and systematic
investment process. The purpose of the Oklahoma Teachers’ Retirement
System Fund is to provide for an orderly means whereby employees of the
educational systems of the State of Oklahoma who have attained retirement
age may be retired from active service, to enable such employees to
accumulate reserves for themselves and their dependents, to provide for
termination of employment and retirement and death benefits.
(b) The Standard of Investment for the Board of Trustees in making
investments shall be to exercise the judgment and care in the circumstances
then prevailing which men of prudence, discretion and intelligence exercise
in the management of their own affairs, not in regard to speculation but in
regard to the permanent disposition of their funds, considering the probable
safety of their capital.
(c) The Board of Trustees of the Oklahoma Teachers’ Retirement System
shall invest the Retirement Fund solely in the interest of the membership
and their beneficiaries, and for the exclusive purpose of providing benefits
to such membership and their beneficiaries and defraying reasonable expenses
108
of administering the Oklahoma Teachers’ Retirement System. Investing shall
be handled with the care, skill, prudence and diligence, under the
circumstances then prevailing, that a prudent man, acting in a like-capacity
and familiar with such matters, would use in the conduct of an enterprise of
a like-character and with like-aims.
(d) The Board will diversify the investments of the funds so as to minimize
the risks of large losses. The Board shall be responsive to the financial
needs and objectives of the Fund. The investment objectives of the Board,
as fiduciaries, are long-term rather than short-term.
(e) The Board, in maintaining its investment policy, takes into consideration
the actuarial assumptions of the retirement program and its unfunded
liabilities.
(f) The Board of Trustees may appoint investment advisors to assist in the
investment of the retirement funds.
(g) Regarding the social issue of apartheid in South Africa, the Board of
Trustees has resolved that when investment alternatives are equal, the
investment advisors should give preference in their security selection to
those companies that support the Sullivan Principles. The perception of
investment equality rests entirely with the Oklahoma Teachers’ Retirement
System’s investment advisors.
(h) The proxy policy statement of the Board of Trustees reflects the fiduciary
duty to vote proxies in a manner that most benefits its members. The advisors
are to first consider the economic impact on the System, and should the
economic impact be neutral, then the advisors should give consideration to
acceptable efforts made on behalf of special interests of social conscience.
The Board of Trustees retains the right to vote all proxies should it so choose.
Special interest proxy voting decisions will be brought before the Board of
Trustees at the earliest possible date prior to the voting of the proxy for
possible direction by the Board. In addition, the advisors will comply with
any supplemental proxy voting criteria which the Board may promulgate.
715:10-21-3. Investment guidelines
(a) The intention of establishing guidelines for investments which are
mutually agreeable to the advisor and to the Oklahoma Teachers’ Retirement
System is to assure that all securities purchased for the System meet fiduciary
standards and that adequate diversification of investments is maintained.
The System has imposed certain investment restrictions which will not be
changed without action by the Board of Trustees.
(b) While the following restrictions remain in effect, the System may NOT:
    (1) Invest in “restricted securities”, including fixed income securities,
    preferred stock, common stock, or any common stock acquired upon

                                                                            109
      conversion thereof. Restricted securities are securities which have not
      been registered under the Securities Act of 1933 and as a result are
      subject to restrictions on resale.
      (2) Purchase securities on margin, or engage in the short selling of
      securities not owned.
      (3) Participate on a joint and several basis in any securities trading
      account.
      (4) Purchase securities of any company with a record of less than five
      (5) years continuous operation (including that of predecessors).
      (5) Invest in companies for the purpose of exercising control or
      management.
      (6) Concentrate its investments in a particular industry inasmuch as
      the maximum commitment to an industry may not exceed 25 percent of
      the total value of the Fund’s portfolio.
      (7) Invest in real estate fee-simple, but only through investment
      certificates or other financial instruments. Real estate shall not be held
      by the System as freehold or leasehold. This policy statement does not
      exclude the authority of the Board to purchase real estate for home
      office facilities to be used in administering the System, including land,
      equipment and office building; and providing that the foregoing shall
      not prevent the Fund from purchasing or selling publicly-traded securities
      of issuers engaged in any aspect of the real estate business or marketable
      securities secured by real estate or interest therein which would include
      mortgage-backed securities.
      (8) Purchase or sell commodities, commodity contracts, mineral, oil,
      gas or other mineral explorations or developmental programs. However,
      the Fund may purchase the securities of companies engaged in the
      exploration, development, production, refining, transportation and
      marketing of oil, gas or other minerals.
      (9) Make loans of money or securities other than through the purchase
      of securities in accordance with the investment objectives; by lending
      portfolio securities under circumstances where the borrower of such
      securities provides cash or cash equivalents as collateral at all times in
      an amount at least equal to the value of the owned securities and the
      Fund retains the right to obtain any dividends, interest or other
      distribution on the securities and any increase in their market value and
      reserves the right to terminate such arrangement at any time; and by
      entering into repurchase agreements.
      (10)     Be restricted in realizing net investment gain or losses during
      any period.
      (11)Purchase foreign securities.
110
715:10-21-4. Portfolio assets allocation
(a) The following guidelines, in (b) and (c) of this section, reflect the
System’s goals for the funds. It is recognized that the actual asset allocation
for the portfolio at any time will be influenced by the investment style of the
advisor and their perceptions of the relative attractiveness of the various
categories of permissible securities.
(b) The following shall be the range of TRS’ portfolio assets:
     (1) Equities: 10-65%
     (2) Fixed Income: 10-90%
     (3) Real Estate: 0-5%
(c) Neither the upper nor the lower limits for portfolio allocations are
intended to require portfolio activity for the sole purpose of complying with
the guidelines. However, deviations from these guidelines, when they occur,
should be discussion items at meetings between the Board of Trustees and
the advisors, and are to be included in the advisors’ monthly reports.
715:10-21-5. Cash equivalents guidelines
   So long as the following restrictions remain in effect, all funds will:
   (1) Not purchase the securities of any issuer other than obligations
   issued or guaranteed as to principal and interest by the government of
   the United States, its agencies or instrumentalities, if, as a result:
       (A) More than 5 percent of the total assets of the Fund would be
       invested in securities of such issuer.
       (B) More than 25 percent of the Fund’s total assets would be invested
       in the securities of issuers having their principal business activities
       in the same industry except for the banking industry.
   (2) Limit commercial paper investments to those rated A1/P1 by
   Standard & Poor’s or Moody’s Investor Service.




                                                                           111
Subchapter 23. State and Education Employees Group Health
               and Dental Insurance Program

Section
715:10-23-1.     State and Education Employees Group Health and Dental
                 Insurance Program
715:10-23-2.     Monthly health insurance premium supplement paid by the
                 Teachers’ Retirement System
715:10-23-3.     Participating education employers not enrolled in the State and
                 Education Employees Group Insurance Plan
715:10-23-4.     Retired members who return to employment
715:10-23-5.     Retired members ineligible for health insurance supplement
715:10-23-1. State and Education Employees Group Health and Dental
Insurance Program
     Members of Teachers’ Retirement who retire or terminate employment
with at least ten (10) years of Oklahoma service credits are eligible to enroll
in the State and Education Employees Group Health and Dental Insurance
Program. The retiring member must conform to rules and regulations
promulgated by the State and Education Employees Group Insurance Board,
which is the final authority on questions of eligibility for membership and
coverage provided by the insurance plan. Questions regarding eligibility for
insurance coverage and monthly premiums should be referred to the local
school district’s health insurance coordinator or the State and Educations
Employees Group Insurance Board.
715:10-23-2. Monthly health insurance premium supplement paid by
the Teachers’ Retirement System
     Teachers’ Retirement will pay a monthly health insurance premium
supplement for each retired member who is enrolled in the health insurance
plan provided by the State and Education Employees Group Health and
Dental Insurance plan or in an insurance program provided by a participating
education employer who provides health insurance coverage to former
employees, provided the retired member had at least ten (10) years of
Oklahoma service prior to retirement. The term “participating education
employer” for purposes of this subchapter shall have the same meaning as
the term “public school” as defined by 70 O.S. 1991, Section 17-101. The
payment shall be in accordance with 74 O.S. Supp. 1999, Section 1316.3,
as amended, which provides that the supplement paid by Teachers’ Retirement
shall be the premium rate of the Medicare supplement charged to the retired
employees not to exceed an amount between $100 and $105, depending on

112
length of service and the final average salary of the retired member as specified
in subsection 4 of Section 1316.3 of Title 74 of the Oklahoma Statutes.
715:10-23-3. Participating education employers not enrolled in the State
and Education Employees Group Insurance Plan
    In accordance with 74 O.S. Supp. 1993, Section 1316.3, as amended,
Teachers’ Retirement will pay a monthly health insurance premium
supplement to a participating education employer for all retired members
enrolled in an insurance program provided to retired members of the employer
employees, provided the retired member had at least ten (10) years of
Oklahoma service prior to retirement. For purposes of this section the
following shall apply:
    (1) The participating employer must notify Teachers’ Retirement that
    a retired member will remain enrolled in the insurance plan provided by
    the employer.
    (2) Each month Teachers’ Retirement will provide the participating
    employer with a list of all retired members qualifying for the health
    insurance premium payment and a financial officer authorized by the
    school shall certify the listing is correct.
    (3) Teachers’ Retirement will remit payment to the participating
    education employer upon receipt of the certified statement.
    (4) The participating education employer will be responsible for
    collecting additional premiums and remitting the total premium for each
    member to the health insurance provider.
    (5) The participating education employer shall file with Teachers’
    Retirement at least once each year the monthly premium charged for
    the medicare supplement insurance plan provided to retired members of
    the employer’s insurance plan. In the event the medicare supplement
    premium is modified during the school year, the employer shall notify
    Teachers’ Retirement at least thirty (30) days prior to the effective date
    of the change.
715:10-23-4. Retired members who return to employment
     A retired member who returns to employment in the public schools of
Oklahoma and becomes eligible for health insurance coverage as a regular
employee of a participating education employer will cease to be eligible for
the health insurance supplement paid by Teachers’ Retirement for the period
of time the member is enrolled or eligible to be enrolled in the participating
education employer’s group insurance plan. Upon termination of eligibility
for coverage as a regular employee, the health insurance premium supplement
will be resumed.

                                                                             113
715:10-23-5. Retired members ineligible for health insurance
supplement
    Retired members who are not enrolled in either the State and Education
Employees Group Health Insurance plan or an insurance plan provided by
a participating education employer are not eligible for the insurance
supplement provided for in 74 O.S. Supp. 1993, Section 1316.3 as amended.
Retired members who for any reason are not receiving monthly retirement
benefits from the Teachers’ Retirement System are not eligible for the
insurance supplement.




114
             Subchapter 25. Qualified Domestic Order

Section
715:10-25-1.     Definition
715:10-25-2.     Filing a qualified domestic order
715:10-25-3.     Contents of a qualified domestic order
715 10-25-4.     Payment to alternate payee
715:10-25-5.     Termination of a qualified domestic order
715:10-25-6.     Teachers’ Retirement not subject to ERISA
715:10-25-1. Definition
     The term “qualified domestic order” means an order issued by a district
court of the State of Oklahoma pursuant to the domestic relations laws of
this state which relates to the provision of marital property rights to a spouse
or former spouse of a member and which creates or recognizes the existence
of an alternate payee’s right to, or assigns to an alternate payee the right to
receive a portion of the benefits payable with respect to a member of the
Teachers’ Retirement System.
715:10-25-2. Filing a qualified domestic order
     A member of Teachers’ Retirement, his or her legal representative, a
member’s former spouse, or his or her legal representative may file a qualified
domestic order with the Teachers’ Retirement System. In not less than
thirty (30) days of such filing, Teachers’ Retirement will acknowledge receipt
and notify all parties listed in the order that the order has been accepted or
that clarification of the order must be provided to Teachers’ Retirement.
All qualified domestic orders filed with the Teachers’ Retirement System of
Oklahoma must be in accordance with Oklahoma Statutes and must conform
to the provisions of 70 O.S. Supp. 1993, Section 17-109, as amended. TRS
Form 110.46 OTRS Qualified Domestic Order is available upon request
and its use is recommended.
715:10-25-3. Contents of qualified domestic order
   For a qualified domestic order to be accepted and binding on the
Teachers’ Retirement System the order meet the following requirements:
   (1) The order must clearly specify the following:
       (A) the name and last-known mailing address (if any) of the member
       and the name and mailing address of the alternate payee covered by
       the order,
       (B) the amount or percentage of the member’s benefits to be paid
       by Teachers’ Retirement to the alternate payee,


                                                                            115
          (C) the number of payments or period to which such order applies,
          (D) the characterization of the benefit as to marital property rights,
          and whether the benefit ceases upon the death or remarriage of the
          alternate payee, and
          (E) each plan to which such order applies.
      (2) The order meets the requirements of this section only if such order:
          (A) does not require Teachers’ Retirement to provide any type or
          form of benefit, or any option not otherwise provided under the
          state law as related to the Retirement System,
          (B) does not require Teachers’ Retirement to provide increased
          benefits,
          (C) does not require the payment of benefits to an alternate payee
          which are required to be paid to another alternate payee pursuant
          to another order previously determined to be a qualified domestic
          order or an order recognized by the Retirement System as a valid
          order prior to the effective date of this subchapter, and
          (D) does not require payment of benefits to an alternate payee prior
          to the actual retirement date of the related member or prior to the
          date the member elects to receive a lump sum distribution of his or
          her retirement account.
715:10-25-4. Payment to alternate payee
     Payments to an alternate payee will be made in a like manner and at the
same time payment is made to the member. Payment will be either a lump
sum distribution of the contributions and interest due the member upon
termination of service or death, or monthly benefit payments under the
retirement options available to the member at the time he or she applies for
retirement benefits. The alternate payee shall not be allowed to choose a
method of payment that is different from the method chosen by the member.
The alternate payee may not receive payment of any kind prior to the member
making application and becoming eligible for payment of benefits. Federal
and Oklahoma state income taxes will be withheld from the payment to an
alternate payee in accordance with applicable federal and state statutes.
715:10-25-5. Termination of a qualified domestic order
     A qualified domestic order will terminate when Teachers’ Retirement
has fully met the provisions of the order. The obligation of the Teachers’
Retirement System to pay an alternate payee pursuant to a qualified domestic
order shall cease upon the death of the related member. In the event a
qualified domestic order requires the benefits payable to an alternate payee
to terminate upon the remarriage of the alternate payee, the Retirement
System shall terminate said benefit only upon the receipt of a certified copy
116
of a marriage license, or a copy of a certified order issued by the court that
originally issued said qualified domestic order declaring the remarriage of
said alternate payee. The order may be cancelled or modified by the court
that originally issued the order.
715:10-25-6. Teachers’ Retirement not subject to ERISA
    For purposes of this subchapter the Teachers’ Retirement System of
Oklahoma is not subject to the provisions of the Employee Retirement Income
Security Act of 1974 (ERISA), 29 U.S.C.A. Section 1001, et seq., as
amended from time to time, or rules and regulations promulgated thereunder,
and court cases interpreting said act.




                                                                          117
      Notes




118
TEACHERS’ RETIREMENT SYSTEM
            OF
        OKLAHOMA

           LAWS




                              119
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120
                          TRS Laws Contents

47 O.S., § 2-314.      Election for limited participation
                       by certain universities ....................................... 124
70 O.S., § 6-104.1.    Sick & extended leave, leave without pay ........ 126
70 O.S., § 17-101.     Definitions......................................................... 126
70 O.S., § 17-101.1.   Oklahoma Board of Private Vocational School
                       employees, OPERS Transfers ........................... 133
70 O.S., § 17-102.     Establishment of System, powers and
                       privileges, name ................................................ 134
70 O.S., § 17-102.1.   Termination of retirement plan. ........................ 134
70 O.S., § 17-102.2.   Governmental plans .......................................... 135
70 O.S., § 17-102.3.   Tax-Sheltered Annuity program ....................... 136
70 O.S., § 17-103.     Membership ...................................................... 137
70 O.S., § 17-103.1.   OSU Cooperative Extension Employees ........... 138
70 O.S., § 17-104.     Prior Service Credits......................................... 138
70 O.S., § 17-105.     Retirement ......................................................... 140
70 O.S., § 17-105.1.   Unpaid accumulated contributions,
                       payment to beneficiary or next of kin. .............. 149
70 O.S., § 17-105.2.   Partial Lump Sum option.................................. 149
70 O.S., § 17-106.     Board of Trustees .............................................. 150
70 O.S., § 17-106.1.   Board of Trustees duties, investments,
                       reports ............................................................... 155
70 O.S., § 17-106.2.   Fiduciary duties. ............................................... 158
70 O.S., § 17-106.3.   Contributions, deposits, refunds,
                       overpayments .................................................... 159
70 O.S., § 17-106.4.   Appeal to district court. .................................... 159
70 O.S., § 17-107.     Disposition of Interest ....................................... 160
70 O.S., § 17-107.1.   Repealed ............................................................ 160
70 O.S., § 17-108.     Contributions and Funds ................................... 160
70 O.S., § 17-108.1.   Employer contributions ..................................... 167
70 O.S., § 17-108.2.   Contributions credit .......................................... 168
70 O.S., §17-109.      Right to annuity or retirement allowance,
                       Qualified Domestic Order. ................................ 171
70 O.S., § 17-109.1.   Confidentiality .................................................. 173
70 O.S., § 17-110.     Fraud, errors ..................................................... 173
70 O.S., § 17-111.     Official bonds ................................................... 173
70 O.S., § 17-112.     Audits ................................................................ 173
70 O.S., § 17-113.     Military Service ................................................ 174
70 O.S., § 17-114.     TRS employees ................................................. 174
70 O.S., § 17-114.1.   Repealed ............................................................ 174
                                                                                             121
70 O.S., § 17-114.2. Unclassified Positions. ...................................... 174
70 O.S., § 17-115.    Repealed ............................................................ 174
70 O.S., § 17-116.    Mimimum pension for certain personnel
                      retiring before August 2, 1969 .......................... 174
70 O.S., § 17-116.1. Retirement benefit increase. .............................. 174
70 O.S., § 17-116.2. Calculation, contribution rates, Benefits .......... 175
70 O.S., § 17-116.2A.Impose, remove maximum compensation level
                      for comprehensive university employees .......... 190
70 O.S., § 17-116.2B.Higher Education retirement benefits ............... 192
70 O.S., § 17-116.3. Repealed ............................................................ 195
70 O.S., § 17-116.4. Repealed ............................................................ 195
70 O.S., § 17-116.5. Repealed ............................................................ 195
70 O.S., § 17-116.6. Teachers’ Retirement Reserve Fund. ................ 195
70 O.S., § 17-116.7. Contract review, audits, Annual Report ............ 195
70 O.S., § 17-116.8. Service credit, purchase price ........................... 196
70 O.S., § 17-116.9. Prior teaching service........................................ 197
70 O.S., § 17-116.10. Post-retirement employment ............................. 197
70 O.S., § 17-116.11. Repealed ............................................................ 199
70 O.S., § 17-116.12. Reduction-in-force. ........................................... 200
70 O.S., § 17-116.13. Retirement allowance calculation. .................... 201
70 O.S., § 17-116.14. Repealed ............................................................ 201
70 O.S., § 17-116.15. George Nigh Rehabilitation employees ............. 201
70 O.S., § 17-116.16. Adjunct position ................................................ 202
70 O.S., § 17-116.17. Benefits increase (1999), calculation ................ 202
70 O.S., § 17-116.18. Benefits Increase (2002) ................................... 202
70 O.S., § 17-116.19. Benefits Increase (2004) ................................... 203
70 O.S., § 17-117.    Repealed ............................................................ 203
70 O.S., § 17-118.    Repealed ............................................................ 203
70 O.S., § 17-119.    Repealed ............................................................ 203
§70 O.S., 17-120. Deposit of contributions.................................... 203
70 O.S., § 17-121. Oklahoma Teachers’ Deferred Savings
                      Incentive Plan. .................................................. 204
70 O.S., § 17-122. Retired teacher organization applications ......... 204
70 O.S., § 17-122.1. Retired teachers organization requirements ...... 205




122
    Alternate Retirement Plan for Comprehensive Universities Act
70 O.S., § 17-201.      Short title .......................................................... 205
70 O.S., § 17-202.      Definitions......................................................... 205
70 O.S., § 17-203.      Alternate retirement plans ................................. 206
70 O.S., § 17-204.      Authority, duties of Board of Regents .............. 206
70 O.S., § 17-205.      Funding of Alternate Retirement Plan .............. 207
70 O.S., § 17-206.      One-Time Irrevocable Written Election ............ 207
70 O.S., § 17-207.      Surcharges, review of actuarial methods
                        and assumptions ................................................ 210
70 O.S., § 17-208.      Obligations, employee acknowledgement ......... 212

        State and Education Employees Group Insurance Act
(Provisions Relevant to the Teachers’ Retirement System of Olahoma)
74 O.S. §1316.1.        Continuing retirement benefits .......................... 212
74 O.S. § 1316.3.       Continuing health and dental insurance ............ 214


         Oklahoma Education Lottery Trust Fund Legislation
                     House Bill 1020 {2005)
Teachers’ Retirement System of Oklahoma Provision .......................... 218




                                                                                             123
47 O.S., § 2-314. Election for Limited Participation by Certain
Universities
A. The Board of Regents of the University of Oklahoma and/or the Board
of Regents for the Oklahoma Agricultural and Mechanical Colleges may
make an irrevocable written election for the University of Oklahoma and/or
Oklahoma State University to become participating employers in the
Oklahoma Law Enforcement Retirement System for police officers who are
CLEET certified and employed by the University of Oklahoma and/or
Oklahoma State University. The Board of Regents of the University of
Oklahoma and/or the Board of Regents for the Oklahoma Agricultural and
Mechanical Colleges shall send written notice of the election to the Oklahoma
Law Enforcement Retirement System.
B. Beginning the following month after the System receives the written
notice, the University of Oklahoma and/or Oklahoma State University and
all active police officers who are CLEET certified and hired on or after the
date of the election shall participate in and make contributions to the System
as other participating employers and members of the System.
C. Upon election by the Board, pursuant to subsection A of this section,
active CLEET certified police employed prior to the date of the election and
who were participating in the Teachers’ Retirement System of Oklahoma,
may, within three (3) months of the date of the election, make an irrevocable
written election to participate in the Oklahoma Law Enforcement Retirement
System and file the written election with the Teachers’ Retirement System
of Oklahoma and the Oklahoma Law Enforcement Retirement System. Such
police officers who make the election to transfer shall be transferred to the
Oklahoma Law Enforcement Retirement System subject to the following:
     1. Upon the date of election of the police officer, the police officer
     shall cease accruing benefits in the Teachers’ Retirement System of
     Oklahoma and shall commence accruing benefits in the Oklahoma Law
     Enforcement Retirement System;
     2. Prior to the beginning of the month following receipt of the police
     officers’ election by Teachers’ Retirement System of Oklahoma, the
     Teachers’ Retirement System of Oklahoma shall transfer to the
     Oklahoma Law Enforcement Retirement System all employee
     contributions and employer contributions plus accrued interest. The
     Teachers’ Retirement System of Oklahoma shall also send to the
     Oklahoma Law Enforcement Retirement System the retirement records
     of the transferring police officer;
     3. To receive service credit accrued by such police officer prior to the
     election, or prior to the date as of which the person making the election
     ceases to be a member of the Teachers’ Retirement System of Oklahoma,
124
     whichever date occurs last, the member shall pay the difference between
     the amount transferred by the Teachers’ Retirement System of Oklahoma
     to the Oklahoma Law Enforcement Retirement System in paragraph 2
     of this subsection and the amount determined by the Board of Trustees
     pursuant to Section 2-307. 5 of Title 47 of the Oklahoma Statutes. The
     police officer shall elect to either pay any difference to receive full credit
     for the years sought to be transferred or receive prorated service credit
     for only the amount received from the Teachers’ Retirement System of
     Oklahoma pursuant to this subsection. Payments made by electing police
     officers pursuant to this paragraph shall be made pursuant to subsection
     B of Section 2-307.5 of Title 47 of the Oklahoma Statutes;
     4 Service credit accrued by a police officer while a member of the
     Teachers’ Retirement System of Oklahoma shall be treated as credited
     service for such transferring police officer in the Teachers’ Retirement
     System of Oklahoma if the police officer is not receiving or eligible to
     receive service credit or benefits from said service in any other public
     retirement system and the member has not received service credit for
     the same years of service pursuant to Sections 2-307.1, 2-307.3 and 2-
     307.4 of Title 47 of the Oklahoma Statutes. Provided further, that only
     transferred credited service related to police service with the University
     of Oklahoma or Oklahoma State University shall be included in the
     determination of a police officer’s normal retirement date or vesting
     date; and
     5. All service credit with the Teachers’ Retirement System of Oklahoma
     which is ineligible for transfer to the Oklahoma Law Enforcement
     Retirement System shall be canceled.
D. Upon election by the Board, pursuant to subsection A of this section,
active CLEET certified police officers employed prior to the date of the
election and who were not participating in the Teachers’ Retirement System
of Oklahoma, may, within three (3) months of the date of the election, make
an irrevocable written election to participate in the Oklahoma Law
Enforcement Retirement System and file the written election with the
Oklahoma Law Enforcement Retirement System. Beginning the following
month after the System for such police officers receives the police officer’s
written election, the University of Oklahoma and/or Oklahoma State
University and the electing police officer shall participate and make
contributions to the System as other participating employers and members
of the System.




                                                                               125
70 O.S., § 6-104.1. Sick and Extended Leave - Leave without Pay
    After exhausting sick leave and extended leave pursuant to Section 6-
104 and 6-104.5 of Title 70 of the Oklahoma Statutes, a full-time teacher
who, with the proper approval of the district board of education, takes not
more than ninety (90) school days of leave without pay to care for the
teacher’s child during the first year of the child’s life, shall receive full
credit for the days on leave with out pay as though the teacher had been on
leave with pay for purposes of computing experience for the minimum teacher
salary schedule. A teacher on leave without pay pursuant to this section
who pays the actuarial cost, as determined by the Board of Trustees of the
Teachers’ Retirement System, shall have the period during which such leave
without pay is taken, counted toward retirement service credit as though the
teacher had been on leave with pay. The teacher shall notify their employer
and the System in writing within thirty (30) days from the date he or she
returns to service that they will pay such actuarial cost. The teacher shall
have up to twelve (12) months form the date he or she returns to service to
pay such actuarial cost.
70 O.S., § 17-101. Definitions
   The following words and phrases as used in this act, unless a different
meaning is clearly required by the context, shall have the following meanings:
   (1) “Retirement system” shall mean the Teachers’ Retirement System
   of Oklahoma, as defined in Section 17-102 of this title.
   (2) “Public school” shall mean a school district, a state college or
   university, the State Board of Education, the State Board of Career and
   Technology Education and any other state educational entity conducted
   within the state supported wholly or partly by public funds and operating
   under the authority and supervision of a legally constituted board or
   agency having authority and responsibility for any function of public
   education.
   (3) “Classified personnel” shall mean any teacher, principal,
   superintendent, supervisor, administrator, librarian, certified or registered
   nurse, college professor, or college president whose salary is paid wholly
   or in part from public funds. An employee of any state department,
   board, board of regents or board of trustees, who is in a supervisory or
   an administrative position, the function of which is primarily devoted
   to public education, shall be considered classified personnel under the
   meaning of this act, at the discretion of the Board of Trustees of the
   Teachers’’ Retirement System. The term “teacher” shall also include
   instructors and counselors employed by the Department of Corrections
   and holding valid teaching certificates issued by the State Department

126
of Education. Provided, that a person employed by the Department of
Corrections as an instructor or counselor shall have been actively
engaged in the teaching profession for a period of not less than three (3)
years prior to employment to be eligible to participate in the Oklahoma
Teachers’’ Retirement System. The Department of Corrections shall
contribute the employer’’s share to the Oklahoma Teachers’ Retirement
System.
(4) “Nonclassified optional personnel” shall include cooks, janitors,
maintenance personnel not in a supervisory capacity, bus drivers,
noncertified or nonregistered nurses, noncertified librarians, and clerical
employees of the public schools, state colleges, universities or any state
department, board, board of regents or board of trustees, the functions
of which are primarily devoted to public education and whose salaries
are paid wholly or in part from public funds.
(5) “Employer” shall mean the state and any of its designated agents or
agencies with responsibility and authority for public education, such as
boards of education of elementary and independent school districts,
boards of regents, boards of control or any other agency of and within
the state by which a person may be employed for service in public
education.
(6) “Member” shall mean any teacher or other employee included in
the membership of the system as provided in Section 17-103 of this
title.
(7) “Board of Trustees” shall mean the board provided for in Section
17-106 of this title to administer the retirement system.
(8) “Service” shall mean service as a classified or nonclassified optional
employee in the public school system, or any other service devoted
primarily to public education in the state.
(9) “Prior service” shall mean service rendered prior to July 1, 1943.
(10) “Membership service” shall mean service as a member of the
classified or nonclassified personnel as defined in paragraphs (3) and
(4) of this section.
(11) “Creditable service” shall mean membership service plus any prior
service authorized under this title.
(12) “Annuitant” shall mean any person in receipt of a retirement
allowance as provided in this title.
(13) “Accumulated contributions” shall mean the sum of all amounts
deducted from the compensation of a member and credited to his
individual account in the Teacher Savings Fund, together with interest
as of June 30, 1968.

                                                                       127
      (14) “Earnable compensation” shall mean the full rate of the
      compensation that would be payable to a member if he worked the full
      normal working time.
      (15) “Average salary”:
           (a) for those members who joined the System prior to July 1, 1992,
           shall mean the average of the salaries for the three (3) years on
           which the highest contributions to the Teachers’’ Retirement System
           was paid not to exceed the maximum contribution level specified in
           Section 17-116.2 of this title or the maximum compensation level
           specified in subsection (28) of this section. Provided, no member
           shall retire with an average salary in excess of Twenty-five Thousand
           Dollars ($25,000.00) unless the member has made the required
           election and paid the required contributions on such salary in excess
           of Twenty-five Thousand Dollars ($25,000.00), and
           (b) for those members who join the System after June 30, 1992,
           shall mean the average of the salaries for five (5) consecutive years
           on which the highest contribution to the Teachers’ Retirement System
           was paid. Only salary on which required contributions have been
           made may be used in computing average salary.
      (16) “Annuity” shall mean payments for life derived from the
      “accumulated contributions” of a member. All annuities shall be payable
      in equal monthly installments.
      (17) “Pension” shall mean payments for life derived from money
      provided by the employer. All pensions shall be payable in equal monthly
      installments.
      (18) “Monthly retirement allowance” is one-twelfth (1/12) of the annual
      retirement allowance which shall be payable monthly.
      (19) “Retirement Benefit Fund” shall mean the fund from which all
      retirement benefits shall be paid based on such mortality tables as shall
      be adopted by the Board of Trustees.
      (20) “Actuary” shall mean a person especially skilled through training
      and experience in financial calculation respecting the expectancy and
      duration of life.
      (21) “Actuarial equivalent” shall mean a benefit of equal value when
      computed upon the basis of such mortality and other tables as shall be
      adopted by the Board of Trustees.
      (22) The masculine pronoun, whenever used, shall include the feminine.
      (23) “Actuarially determined cost” shall mean the single sum which is
      actuarially equivalent in value to a specified pension amount as
      determined on the basis of mortality and interest assumptions adopted
      by the Board of Trustees.
128
(24) “Normal retirement age” means age sixty-two (62) or the age at
which the sum of a member’’s age and number of years of creditable
service total eighty (80) or ninety (90), for those who became a member
after June 30, 1992, pursuant to Section 17-105 of this title, whichever
occurs first.
(25) “Regular annual compensation” means salary plus fringe benefits,
excluding the flexible benefit allowance pursuant to Section 26-105 of
this title and for purposes pursuant to Section 17-101 et seq. of this
title. For purposes of this definition, regular annual compensation shall
include all payments as provided in subsection D of Section 17-116.2
of this title.
(26) “Teacher” means classified personnel and nonclassified optional
personnel.
(27) “Active classroom teacher” means a person employed by a school
district to teach students specifically identified classes for specifically
identified subjects during the course of a semester, and who holds a
valid certificate or license issued by and in accordance with the rules
and regulations of the State Board of Education.
(28) “Maximum compensation level” shall mean:
     (a) Twenty-five Thousand Dollars ($25,000.00) for creditable
     service authorized and performed prior to July 1, 1995, for members
     not electing a higher maximum compensation level,
     (b) Forty Thousand Dollars ($40,000.00) for creditable service
     authorized and performed prior to July 1, 1995, for members electing
     a maximum compensation level in excess of Twenty-five Thousand
     Dollars ($25,000.00),
     (c) Twenty-seven Thousand Five Hundred Dollars ($27,500.00)
     for members who, as of June 30, 1995, had elected to have a
     maximum compensation level not in excess of Twenty-five Thousand
     Dollars ($25,000.00), and who were employed by an entity or
     institution within The Oklahoma State System of Higher Education
     for creditable service authorized and performed on or after
     July 1, 1995, but not later than June 30, 1996, if such member does
     not elect a higher maximum compensation level for this period as
     authorized by Section 17-116.2A of this title,
     (d) Thirty-two Thousand Five Hundred Dollars ($32,500.00) for
     members employed by a comprehensive university if the member
     meets the requirements imposed by Section 17-116.2A of this title
     and the member elects to impose a higher maximum compensation
     level for service performed on or after July 1, 1995, but not later
     than June 30, 1996,
                                                                       129
      (e) Forty-four Thousand Dollars ($44,000.00) for members who,
      as of June 30, 1995, had elected to have a maximum compensation
      level in excess of Twenty-five Thousand Dollars ($25,000.00), and
      who were employed by an entity or institution within The Oklahoma
      State System of Higher Education for creditable service authorized
      and performed on or after July 1, 1995, but not later than
      June 30, 1996, if such member does not elect a higher maximum
      compensation level for this period as authorized by Section 17-
      116.2A of this title,
      (f) Forty-nine Thousand Dollars ($49,000.00) for members
      employed by a comprehensive university if the member meets the
      requirements imposed by Section 17-116.2A of this title and the
      member elects to impose a higher maximum compensation level for
      service performed on or after July 1, 1995, but not later than
      June 30, 1996,
      (g) the following amounts for creditable service authorized and
      performed by members employed by a comprehensive university,
      based upon the election of the member in effect as of June 30, 1995:
          1. for members who elected a maximum compensation level
          not in excess of Twenty-five Thousand Dollars ($25,000.00):
               (i) Thirty-two Thousand Five Hundred Dollars
               ($32,500.00) for service authorized and performed on or
               after July 1, 1996, but not later than June 30, 1997,
               (ii) Thirty-seven Thousand Five Hundred Dollars
               ($37,500.00) for service authorized and performed on or
               after July 1, 1997, but not later than June 30, 1998,
               (iii) Forty-two Thousand Five Hundred Dollars
               ($42,500.00) for service authorized and performed on or
               after July 1, 1998, but not later than June 30, 2000,
               (iv) Forty-seven Thousand Five Hundred Dollars
               ($47,500.00) for service authorized and performed on or
               after July 1, 2000, but not later than June 30, 2001,
               (v) Fifty-two Thousand Five Hundred Dollars ($52,500.00)
               for service authorized and performed on or after July 1,
               2001, but not later than June 30, 2002,
               (vi) Fifty-seven Thousand Five Hundred Dollars
               ($57,500.00) for service authorized and performed on or
               after July 1, 2002, but not later than June 30, 2003,
               (vii)Sixty-two Thousand Five Hundred Dollars
               ($62,500.00) for service authorized and performed on or
               after July 1, 2003, but not later than June 30, 2004,
130
    (viii) Sixty-seven Thousand Five Hundred Dollars
    ($67,500.00) for service authorized and performed on or
    after July 1, 2004, but not later than June 30, 2005,
    (ix) Seventy-two Thousand Five Hundred Dollars
    ($72,500.00) for service authorized and performed on or
    after July 1, 2005, but not later than June 30, 2006,
    (x) Seventy-seven Thousand Five Hundred Dollars
    ($77,500.00) for service authorized and performed on or
    after July 1, 2006, but not later than June 30, 2007,
    (xi) the full amount of regular annual compensation for
    service authorized and performed on or after July 1, 2007,
    and
2. for members who elected a maximum compensation level
in excess of Twenty-five Thousand Dollars ($25,000.00):
    (i) Forty-nine Thousand Dollars ($49,000.00) for service
    authorized and performed on or after July 1, 1996, but not
    later than June 30, 1997,
    (ii) Fifty-four Thousand Dollars ($54,000.00) for service
    authorized and performed on or after July 1, 1997, but not
    later than June 30, 1998,
    (iii) Fifty-nine Thousand Dollars ($59,000.00) for service
    authorized and performed on or after July 1, 1998, but not
    later than June 30, 2000,
    (iv) Sixty-four Thousand Dollars ($64,000.00) for service
    authorized and performed on or after July 1, 2000, but not
    later than June 30, 2001,
    (v) Sixty-nine Thousand Dollars ($69,000.00) for service
    authorized and performed on or after July 1, 2001, but not
    later than June 30, 2002,
    (vi) Seventy-four Thousand Dollars ($74,000.00) for
    service authorized and performed on or after July 1, 2002,
    but not later than June 30, 2003,
    (vii) Seventy-nine Thousand Dollars ($79,000.00) for
    service authorized and performed on or after July 1, 2003,
    but not later than June 30, 2004,
    (viii) Eighty-four Thousand Dollars ($84,000.00) for
    service authorized and performed on or after July 1, 2004,
    but not later than June 30, 2005,
    (ix) Eighty-nine Thousand Dollars ($89,000.00) for
    service authorized and performed on or after July 1, 2005,
    but not later than June 30, 2006,
                                                          131
                   (x) Ninety-four Thousand Dollars ($94,000.00) for
                   service authorized and performed on or after July 1, 2006,
                   but not later than June 30, 2007,
                   (xi) the full amount of regular annual compensation for
                   service authorized and performed on or after July 1, 2007,
          (h) the full amount of regular annual compensation of:
              1. a member of the retirement system not employed by an entity or
              institution within The Oklahoma State System of Higher
              Education for all creditable service authorized and performed on or
              after July 1, 1995,
              2. a member of the retirement system first employed on or after
              July 1, 1995, by an entity or institution within The Oklahoma State
              System of Higher Education for all creditable service authorized
              and performed on or after July 1, 1995, but not later than June 30,
              1996,
              3. a member of the retirement system employed by an entity or
              institution within The Oklahoma State System of Higher
              Education, other than a comprehensive university, if the member
              elects to impose a higher maximum compensation level for service
              performed on or after July 1, 1995, but not later than June 30, 1996,
              pursuant to subsection B of Section 17-116.2A of this title,
              4. a member of the retirement system who is first employed on or
              after July 1, 1996, by any entity or institution within The Oklahoma
              State System of Higher Education, including a comprehensive
              university, for creditable service authorized and performed on or
              after July 1, 1996,
              5. a member of the retirement system who, as of July 1, 1996, is
              subject to a maximum compensation level pursuant to paragraph
              (g) of this subsection if the member terminates service with a
              comprehensive university and is subsequently reemployed by a
              comprehensive university, or
              6. a member of the retirement system employed by a
              comprehensive university for all service performed on and after
              July 1, 2007.
      (29) “Comprehensive university” shall mean:
          (a) the University of Oklahoma and all of its constituent agencies,
          including the University of Oklahoma Health Sciences Center, the
          University of Oklahoma Law Center and the Geological Survey,
          and
          (b) Oklahoma State University and all of its constituent agencies,
          including the Oklahoma State University Agricultural Experiment
132
        Station, the Oklahoma State University Agricultural Extension
        Division, the Oklahoma State University College of Veterinary
        Medicine, the Oklahoma State University Center for Health
        Sciences, the Technical Branch at Oklahoma City, the Technical
        Branch at Okmulgee and Oklahoma State University-Tulsa.
70 O.S., § 17-101.1. Oklahoma Board of Private Vocational School
Employees Members of Teachers’ Retirement System - Oklahoma Public
Employees Retirement System Transferred to Teachers’ Retirement
System - Employee Transfer
A. Except as otherwise provided for in this section, employees of the
Oklahoma Board of Private Vocational Schools shall be members of the
Teachers’ Retirement System of Oklahoma.
B. Employees of the Oklahoma Board of Private Vocational Schools who
were as of June 30, 1986, employees of the Oklahoma Board of Private
Schools and members of the Oklahoma Public Employees Retirement System
shall cease accruing benefits in the Oklahoma Public Employees Retirement
System and commence accruing benefits under the Teachers’ Retirement
System of Oklahoma on August 1, 1986. The Oklahoma Public Employees
Retirement System shall transfer to the Teachers’ Retirement System of
Oklahoma the retirement records for each such employee and the actual
amount contributed to the Oklahoma Public Employees Retirement System
by the state and by each such employee transferring to the Oklahoma
Teachers’ Retirement System. All years and months of service accrued by
each such employee pursuant to the provisions of the Oklahoma Public
Employees Retirement System shall be treated as credited service in the
Teachers’ Retirement System of Oklahoma.
C. Employees of the Oklahoma Board of Private Vocational Schools who
were as of June 30, 1986, employees of the Oklahoma Board of Private
Schools and members of the Oklahoma Public Employees Retirement
System, individually may choose to remain members of the Oklahoma Public
Employees Retirement System. Any such employee choosing to remain a
member of the Oklahoma Public Employees Retirement System shall submit
written notification of such choice to the Oklahoma Department of Career
and Technology Education prior to August 1, 1986. On August 1, 1986, the
Oklahoma Department of Career and Technology Education shall notify
the Oklahoma Public Employees Retirement System of those employees
who chose to remain members of the Oklahoma Public Employees Retirement
System and such employees shall not be transferred from the Oklahoma
Public Employees Retirement System to the Teachers’ Retirement System
of Oklahoma.

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70 O.S., § 17-102. Establishment of System - Powers and Privileges - Name
     A retirement system is hereby established and placed under the
management of the Board of Trustees for the purpose of providing retirement
allowances and other benefits under the provisions of this act for teachers
of the State of Oklahoma.
     The Board of Trustees shall have the power and privileges of a
corporation and shall be known as the “Board of Trustees of the Teachers’
Retirement System of Oklahoma”, and by such name all of its business
shall be transacted, all of its funds invested, and all of its cash and securities
and other property held in trust for the purpose for which received.
70 O.S., § 17-102.1. Termination of Retirement Plan.
(1) In the event a plan of the retirement system is terminated or partially
terminated the right of all participants or in the event of partial termination
the rights of the affected participants, whether retired or otherwise, shall
become fully vested.
(2) In the event of termination of the plan, the Board of Trustees shall
distribute the net assets of the fund, allowing a period of not less than six (6)
nor more than nine (9) months for dissolution of disability claims, as follows:
     (a) First, accumulated contributions shall be allocated to each respective
     participant, former participant, retired member, joint annuitant or
     beneficiary then receiving payments. If these assets are insufficient for
     this purpose, they shall be allocated to each such person in the proportion
     which his accumulated contributions bear to the total of all such
     participants’ accumulated contributions. For purposes of this section,
     contribution means payment into the system by an employer or employee
     for the benefit of an individual employee.
     (b) The balance of such assets, if any, remaining after making the
     allocations provided in subparagraph (a) of this section shall be disposed
     of by allocating to each person then having an interest in the fund the
     excess of his retirement income under the plan less the retirement income
     which is equal to the actuarial equivalent of the amount allocated to
     him under subparagraph (a) of this section. Such allocation shall be
     made with the full amount of the remaining assets to be allocated to the
     persons in each group in the following order of precedence:
          (i) those retired members, joint annuitants or beneficiaries receiving
          benefits,
          (ii) those members eligible to retire,
          (iii) those members eligible for early retirement,
          (iv) former participants electing to receive a vested benefit, and
          (v) all other members.

134
         In the event the balance of the fund remaining after all allocations
    have been made with respect to all retirement income in a preceding
    group is insufficient to allocate the full actuarial equivalent of such
    retirement income to all persons in the group for which it is then being
    applied, such balance of the fund shall be allocated to each person in
    such group in the proportion which the actuarial equivalent of the
    retirement income allocable to him pursuant to such group bears to the
    total actuarial equivalent of the retirement income so allocable to all
    persons in such group.
         Provided no discrimination in value results, the Board of Trustees
    shall distribute the amounts so allocated in one of the following manners
    as the Board of Trustees in their discretion may determine:
         (i) by continuing payment of benefits as they become due, or
         (ii) by paying, in cash, the amount allocated to any such person.
70 O.S., § 17-102.2. Requirements Met for Governmental Plans -
Additional Applicable Provisions.
    The retirement system shall satisfy the applicable qualification
requirements for governmental plans as specified in Sections 401 and 414(d)
of the Internal Revenue Code of 1954 or 1986, as amended from time to
time and as appropriate for a governmental plan (hereinafter referred to as
the “Code”). In addition to other Code provisions otherwise noted, and in
order to satisfy the applicable requirements under the Code, the retirement
system shall be subject to the following provisions, notwithstanding any
other provision of the retirement system law:
    (1) The Board of Trustees shall distribute the corpus and income of the
    retirement system to the members and their beneficiaries in accordance
    with the retirement system law.
    (2) Forfeitures arising from severance of employment, death, or for
    any other reason may not be applied to increase the benefits any member
    would otherwise receive under the retirement system law.
    (3) All benefits paid from the retirement system shall be distributed in
    accordance with the requirements of Code Section 401(a)(9) and the
    regulations thereto. In order to meet these requirements, the retirement
    system shall be administered in accordance with the following provisions:
         (a) The life expectancy of a member or the member’s spouse may
         not be recalculated after the benefits commence.
         (b) If a member dies before the distribution of the member’s benefits
         has begun, distributions to beneficiaries must begin no later than
         December 31 of the calendar year immediately following the calendar
         year in which the member died.

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          (c) The amount of benefits payable to a member’s beneficiary may
          not exceed the maximum determined under the incidental death
          benefit requirement of the Code.
      (4) The Board of Trustees or its designee may not:
          (a) determine eligibility for benefits,
          (b) compute rates of contribution, or
          (c) compute benefits of members or beneficiaries, in a manner that
          discriminates in favor of members who are considered officers,
          supervisors, or highly compensated, as prohibited under Code
          Section 401(a)(4).
      (5) Benefits paid from the retirement system shall not exceed the
      maximum benefits permissible under Code Section 415.
      (6) The Board of Trustees may not engage in a transaction prohibited
      by Code Section 503(b).
      (7) To the extent required by Code Section 401(a)(31), the retirement
      system shall allow members and qualified beneficiaries to elect a direct
      rollover of eligible distributions to another eligible retirement plan.
70 O.S., § 17-102.3. Qualification Requirements for Tax-Sheltered
Annuity Program
    The Tax-Sheltered Annuity Program provided by Section 17-101 et
seq. of this title shall satisfy the applicable qualification requirements for
grandfathered governmental tax-sheltered annuity programs as specified in
26 U.S.C. §§ 403(b) and the relevant regulatory provisions and guidance
related thereto. In order to satisfy these requirements and guidelines, the
Teachers’ Retirement Tax-Sheltered Annuity Program shall be subject to
the following provisions, notwithstanding any other provision of the law
governing the Oklahoma Teachers’ Retirement System:
    (1) The Board of Trustees shall administer and distribute the corpus
    and income of the Tax-Sheltered Annuity Program to members and their
    beneficiaries pursuant to the applicable requirements under 26 U.S.C.
    §§ 403(b), relevant regulatory provisions and guidance under 26 U.S.C.
    §§ 403(b), and in accordance with the law governing the Oklahoma
    Teachers’ Retirement System.
    (2) All benefits paid from the retirement system shall be distributed in
    accordance with the applicable requirements of 26 U.S.C. §§§§
    403(b)(10) and 401(a)(9) and the regulations thereto.
    (3) To the extent required by 26 U.S.C. §§§§ 403(b)(10) and 401(a)(31),
    the retirement system shall allow members and qualified beneficiaries
    to elect a direct rollover of eligible distributions to another eligible
    retirement plan.

136
    (4) To the extent required under 26 U.S.C. §§ 403(b)(11) and the
    regulations thereto, distributions under the Tax-Sheltered Annuity
    Program shall only be paid when the member attains the age of fifty-
    nine and one-half (59 1/2) years, separates from service, dies, becomes
    disabled, or in the case of hardship.
70 O.S., § 17-103. Membership of Retirement System
     Except as provided in the Alternate Retirement Plan for Comprehensive
Universities Act, the membership of the retirement system shall consist of
the following:
     (1) All classified personnel shall become members of the retirement
     system as a condition of their employment;
     (2) All full-time nonclassified optional personnel regularly employed
     for more than one (1) year may join the Teachers’ Retirement System
     subject to the rules and regulations adopted pursuant to this act. Subject
     to the outcome of a private letter ruling request which shall be submitted
     by the Board to the Internal Revenue Service, the System shall permit
     full-time nonclassified optional personnel who have ceased to make
     otherwise required employee contributions after having made an election
     to become a member of the retirement system to resume employee
     contributions. No service shall be credited to any such member for any
     period of time during which employee contributions were not made;
     (3) All persons who shall become classified personnel or who are
     regularly employed in any school system as new classified personnel
     after July 1, 1943, hereof, shall become members of the retirement system
     as a condition of their employment;
     (4) All other regular school employees may join the Teachers’ Retirement
     System subject to the rules and regulations as may be adopted by the
     Board of Trustees of the Teachers’ Retirement System;
     (5) The Board of Trustees may, in its discretion, deny the right to become
     members to any class of members whose compensation is only partly
     paid by the state, or who is serving on a temporary or other than per
     annum basis, and it also may, in its discretion, make optional with members
     in any such class their individual entrance into the retirement system; and
     (6) Should any member, with less than ten (10) years of teaching service
     in Oklahoma, in any period of six (6) consecutive years after becoming
     a member be absent from service more than five (5) years, withdraw his
     contributions, retire or die, he shall thereupon cease to be a member.
     The provisions of this paragraph shall not apply to any member of the
     Teachers’ Retirement System who has been a member of such classes
     of military services as may be approved by the Board of Trustees, until

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      a period of one and one-half (1 1/2) years from date of termination of
      such service shall have elapsed.
70 O.S., § 17-103.1. Employees of Oklahoma State University
Cooperative Extension Service - Ceasing of Benefit Accrual - Transfer
to Teachers’ Retirement System.
     Employees of the Oklahoma State University Cooperative Extension
Service who are members of the Oklahoma Public Employees Retirement
System shall cease accruing benefits in the Oklahoma Public Employees
Retirement System and shall commence accruing benefits under the Teachers’
Retirement System of Oklahoma on July 1, 1987. On January 1, 1988, the
Oklahoma Public Employees Retirement System shall transfer to the
Teachers’ Retirement System of Oklahoma the actual amount contributed
to the Oklahoma Public Employees Retirement System by the state and by
each employee of the Oklahoma State University Cooperative Extension
Service transferring to the Teachers’ Retirement System of Oklahoma and
the retirement records of those transferring employees. Service accrued by
said employee of the Oklahoma State University Cooperative Extension
Service under the Oklahoma Public Employees Retirement System shall be
treated as credited service under the Teachers’ Retirement System of
Oklahoma. For purposes of this section, creditable service transferred from
the Oklahoma Public Employees Retirement System shall include service
authorized under paragraph (f) of subsection (2) of Section 913 of Title 74
of the Oklahoma Statutes. Members who retire prior to July 1, 1990, shall
have their monthly benefit adjusted to include all services accrued under
paragraph (f) of subsection (2) of Section 913 of Title 74 of the Oklahoma
Statutes. Provided however, that any adjustment of existing retirement
benefits caused by reason of inclusion of such service authorized under
paragraph (f) of subsection (2) of Section 913 of Title 74 of the Oklahoma
Statutes shall not affect any retirement benefit paid prior to July 1, 1990.
70 O.S., § 17-104. Prior Service Credits.
(1) Under such rules and regulations as the Board of Trustees shall adopt,
each member who became a member within one (1) year after July 1, 1943,
shall file a detailed statement of all service as a member rendered by him
prior to the date of establishment for which he claims credit.
(2) The Board of Trustees shall fix and determine by appropriate rules and
regulations how much service in any year is equivalent to one (1) year of service,
but in no case shall it allow any credit for a period of absence without pay of
more than one (1) month’s duration nor shall more than one (1) year of service
be creditable for all services in one (1) school year. Service rendered for a
regular school year shall be equivalent to one (1) year’s service.
138
(a) Prior service credit shall be granted to any member who shall become
a member when he has completed one (1) year of membership service
credit. Prior service shall include years taught in what is now Oklahoma
preceding statehood.
     1. Subject to the above restrictions and to such other rules and
     regulations as the Board of Trustees may adopt, the Board of
     Trustees shall verify, as soon as practicable after the filing of such
     statements of service, the service therein claimed.
     2. Upon verification of the statements of service, the Board of
     Trustees shall issue prior service certificates certifying to each
     member the length of service rendered prior to the date of
     establishment, with which he is credited on the basis of his statement
     of service. So long as membership continues, a prior service
     certificate shall be final and conclusive for retirement purposes as
     to such service; provided, however, the Board of Trustees may,
     upon request of the member, modify or correct his prior service
     certificate. The prior service credit and certificate of a member who
     has retired may be corrected, if incorrect. When the correction
     constitutes an addition to the retired member’s service record, the
     Board of Trustees may grant allowance retroactively as the facts
     justify.
     When membership ceases such prior service certificate shall become
void. Should the former member return to service in Oklahoma, he shall
again become a member not entitled to prior service credit, with the
provision that he may reestablish his prior service credit by redepositing
in the appropriate fund the amount formerly withdrawn, with the interest
at five percent (5%) per annum from the date membership ceased to the
date of redeposit; provided, however, effective January 1, 1990, the
rate of interest provided herein shall be ten percent (10%) per annum.
No member shall be permitted to take advantage of this provision for
restoration of prior service more than one time.
(b) Any person who is, or shall become, a member of the Teachers’
Retirement System may receive prior service credit for not more than
five (5) years of service rendered in public schools, state colleges, or
state universities outside this state prior to July 1, 1943, subject to the
regulations of the Board of Trustees, provided he is not receiving, and
is not eligible to receive, retirement credit or benefits for this service in
any other teacher retirement system, subject to the following provision:
     1. The member is required to have two (2) years of creditable
     service teaching earned in Oklahoma for each year of out-of-state
     credit granted.
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(3) Any teacher who served in the Armed Forces of the United States of
America prior to July 1, 1943, during World War I or World War II, whose
service was terminated by an honorable discharge and who qualifies for
prior service credit under the terms of this act shall be granted prior service
teaching credit by the Board of Trustees for the period of such service in the
Armed Forces, occurring prior to July 1, 1943, upon presentation to the
Board of Trustees of satisfactory proof of such service in the Armed Forces.
The amount of prior service teaching credit to be allowed such teacher shall
be determined by the Board of Trustees.
70 O.S., § 17-105. Retirement
(1) (a) Any member who has attained age fifty-five (55) or who has
completed thirty (30) years of creditable service, as defined in Section 17-
101 of this title, or for any person who initially became a member prior to
July 1, 1992, regardless of whether there were breaks in service after July
1, 1992, whose age and number of years of creditable service total eighty
(80) may be retired upon filing a written application for such retirement.
Such a retirement date will also apply to any person who became a member
of the sending system as defined in this act, prior to July 1, 1992, regardless
of whether there were breaks in service after July 1, 1992. Any person who
became a member after June 30, 1992, whose age and number of years of
creditable service total ninety (90) may be retired upon filing a written
application for such retirement. The application shall be filed on the form
provided by the Board of Trustees for this purpose, not less than thirty (30)
days nor more than ninety (90) days before the date of retirement.
     (b) An individual who becomes a member of the Teachers’ Retirement
System after July 1, 1967, shall be employed by the public schools, state
colleges or universities of Oklahoma for a minimum of five (5) years and be
a contributing member of the Teachers’ Retirement System of Oklahoma
for a minimum of five (5) years to qualify for monthly retirement benefits
from the Teachers’ Retirement System of Oklahoma.
     (c) Any member with five (5) or more years of Oklahoma teaching
service and whose accumulated contributions during such period have not
been withdrawn shall be given an indefinite extension of membership
beginning with the sixth year following his or her last contributing
membership and shall become eligible to apply for retirement and be retired
upon attaining age fifty-five (55).
     (d) Members currently teaching in the public schools of Oklahoma past
the fiscal year during which age seventy (70) was attained and who have
not retired shall be granted the privilege of making up the five percent (5%)
contributions, plus interest, for the years taught after age seventy (70). Such

140
member shall be given an indefinite extension of membership and be eligible
to retire upon the filing of proper application for retirement as hereinbefore
provided.
(2) An unclassified optional member who has retired or who retires at sixty-
two (62) years of age or older or whose retirement is because of disability
shall have his or her minimum retirement benefits calculated on an average
salary of Five Thousand Three Hundred Fifty Dollars ($5,350.00) or, if a
larger monthly allowance would result, an amount arrived at pursuant to
application of the formula prescribed herein.
(3) No member shall receive a lesser retirement benefit than he or she would
have received under the law in effect at the time he or she retired. Any
individual under the Teachers’ Retirement System, who through error in
stating the title of the position which he or she held, may, at the discretion of
the Board of Trustees, be changed from the nonclassified optional group to
the classified group for the purpose of calculating retirement benefits.
Any individual regardless of residence, who has a minimum of ten (10)
years of teaching in Oklahoma schools prior to July 1, 1943, or who taught
in Oklahoma schools prior to 1934 and thereafter taught a minimum of ten
(10) years and who does not qualify under the present retirement System, or
who has a minimum of thirty (30) years of teaching in Oklahoma schools
and has reached seventy (70) years of age prior to July 1, 1984, and is not
otherwise eligible to receive any benefits from the retirement system shall
receive a minimum of One Hundred Fifty Dollars ($150.00) per month in
retirement benefits from the Teachers’ Retirement System of Oklahoma plus
any general increase in benefits for annuitants as may be provided hereafter
by the Legislature. Each individual must apply to the Teachers’ Retirement
System for such benefit and provide evidence to the Teachers’ Retirement
System that the service was actually rendered. The surviving spouse of any
person who made application for the benefit provided for by this paragraph
during his or her lifetime but did not receive said benefit may submit an
application to the System for payment of said benefit for those months during
the lifetime of the deceased person that he or she was eligible for but did not
receive the benefit. Upon approval of the application by the Board of Trustees,
the benefit shall be paid to the surviving spouse in one lump sum.
(4) The value of each year of prior service is the total monthly retirement
benefit divided by the number of years of creditable service.
(5) Upon application of a member who is actively engaged in teaching in
Oklahoma or his or her employer, any member who has been a contributing
member for ten (10) years may be retired by the Board of Trustees not less
than thirty (30) days nor more than ninety (90) days subsequent to the
execution and filing thereof, on a disability retirement allowance, provided
                                                                             141
that it is found by the Board of Trustees after medical examination of such
member by a duly qualified physician that such member is mentally or
physically incapacitated for further performance of duty, that such incapacity
is likely to be permanent, and that such member should be retired. The
Board of Trustees shall give due consideration to the conclusions and
recommendations in the certified written report of the Medical Board of the
Teachers’ Retirement System regarding the disability application of such
member. If a member is determined to be eligible for disability benefits
pursuant to the Social Security System, then such determination shall entitle
the member to the authorized disability retirement allowance provided by
law. For members who are not eligible for disability benefits pursuant to the
Social Security System, the Board of Trustees shall apply the same standard
for which provision is made in the first two sentences of this subsection for
determining the eligibility of a person for such disability benefits in making
a determination of eligibility for disability benefits as authorized by this
subsection.
(6) (a) A member who at the time of retirement has been found to be
permanently physically or mentally incapacitated to teach school shall receive
a minimum monthly retirement payment for life or until such time as the
member may be found to be recovered to the point where he or she may
return to teaching. Any member retired before July 1, 1992 shall be eligible
to receive the monthly retirement allowance herein provided, but such
payment shall not begin until the first payment due him or her after July 1,
1992, and shall not be retroactive. The Board of Trustees is empowered to
make such rules and regulations as it considers proper to preserve equity in
retirements under this provision, which shall include a provision to protect
the rights of the member’’s spouse.
     (b) A member who has qualified for retirement benefits under disability
retirement shall have the total monthly payment deducted from his or her
accumulated contributions plus interest earned and any money remaining in
the member’s account after the above deductions at the death of the member
shall be paid in a lump sum to the beneficiary or to the estate of the member.
Provided, if the deceased disabled member had thirty (30) years or more of
creditable service and the death occurred after June 30, 1981, and death
occurred prior to the disabled member receiving twelve monthly retirement
payments, a surviving spouse may elect to receive the retirement benefit to
which the deceased member would have been entitled at the time of death
under the Option 2 Plan of Retirement provided for in subsection (8) of this
section in lieu of the death benefit provided for in this subsection and in
subsection (12) of this section.

142
     (c) Once each year the Board of Trustees may require any disabled
annuitant who has not yet attained the age of sixty (60) years to undergo a
medical examination, such examination to be made at the place of residence
for said disabled annuitant or other place mutually agreed upon by a physician
or physicians designated by the Board of Trustees. Should any disabled
annuitant who has not yet attained the age of sixty (60) years refuse to
submit to at least one medical examination in any such year by a physician
or physicians designated by the Board of Trustees his or her allowance may
be discontinued until he or she submits to such examination.
     (d) Should the Medical Board report and certify to the Board of Trustees
that such disabled annuitant is engaged in or is able to engage in a gainful
occupation paying more than the difference between his or her retirement
allowance and the average final compensation, and should the Board of
Trustees concur in such report then the amount of his or her pension shall
be reduced to an amount which, together with his or her retirement allowance
and that amount earnable by him or her, shall equal the amount of his or her
average final compensation. Should his or her earning capacity be later
increased, the amount of his or her pension may be further modified, provided
the new pension shall not exceed that amount of the pension originally granted
nor an amount, which when added to the amount earnable by the member,
together with his or her annuity, equals the amount of his or her average
final compensation.
     (e) Should a disabled annuitant be restored to active service, his or her
disability retirement allowance shall cease and he or she shall again become
a member of the Teachers’ Retirement System and shall make regular
contributions as required under this article. The unused portion of his or her
accumulated contributions shall be reestablished to his or her credit in the
Teachers’ Savings Fund. Any such prior service certificates on the basis of
which his or her service was computed at the time of his or her retirement
shall be restored to full force and effect.
(7) Should a member before retirement under Section 1-101 et seq. of this
title make application for withdrawal duly filed with the Board of Trustees
and approved by it, not earlier than four (4) months after the date of
termination of such service as a teacher, the contribution standing to the
credit of his or her individual account in the Teachers’ Savings Fund shall
be paid to him or her or, in the event of his or her death before retirement,
shall be paid to such person or persons as he or she shall have nominated by
written designation, duly executed and filed with the Board of Trustees;
provided, however, if there be no designated beneficiary surviving upon
such death, such contributions shall be paid to his or her administrators,
executors, or assigns, together with interest as hereinafter provided. In lieu
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of a lump-sum settlement at the death of the member, the amount of money
the member has on deposit in the Teachers’ Savings Fund and the money the
member has on deposit in the Teachers’ Deposit Fund may be paid in monthly
payments to a designated beneficiary, who must be the spouse, under the
Maximum or Option 1 Plan of Retirement providing the monthly payment
shall be not less than Twenty-five Dollars ($25.00) per month. The monthly
payment shall be the actuarial equivalent of the amount becoming due at the
member’s death based on the sex of the spouse and the age the spouse has
attained at the last birthday prior to the member’s death. Provided further,
if there be no designated beneficiary surviving upon such death, and the
contributions standing to the credit of such member do not exceed Two
Hundred Dollars ($200.00), no part of such contributions shall be subject
to the payment of any expense of the last illness or funeral of the deceased
member or any expense of administration of the estate of such deceased and
the Board of Trustees, upon satisfactory proof of the death of such member
and of the name or names of the person or persons who would be entitled to
receive such contributions under the laws of descent and distribution of the
state, may authorize the payment of accumulated contributions to such person
or persons. A member terminating his or her membership by withdrawal
after June 30, 2003, shall have the interest computed at a rate of interest
determined by the Board of Trustees and paid to him or her subject to the
following schedule:
     (a) If termination occurs within sixteen (16) years from the date
     membership began, fifty percent (50%) of such interest accumulations
     shall be paid.
     (b) With at least sixteen (16) but less than twenty-one (21) years of
     membership, sixty percent (60%) of such interest accumulations shall
     be paid.
     (c) With at least twenty-one (21) but less than twenty-six (26) years of
     membership, seventy-five percent (75%) of such interest accumulations
     shall be paid.
     (d) With at least twenty-six (26) years of membership, ninety percent
     (90%) of such interest accumulations shall be paid.
     In case of death of an active member, the interest shall be calculated
and restored to the member’s account and paid to his or her beneficiary.
(8) (a) In lieu of his or her retirement allowance payable throughout life for
such an amount as determined under this section, the member may select a
retirement allowance for a reduced amount payable under any of the following
options the present value of which is the actuarial equivalent thereof.
     (b) A member may select the option under which he or she desires to
retire at the end of the school year in which he or she attains age seventy
144
(70) and said option shall be binding and cannot be changed. Provided further
that if a member retires before age seventy (70), no election of an option
shall be effective in case an annuitant dies before the first payment due
under such option has been received.
    (c) The first payment of any benefit selected shall be made on the first
day of the month following approval of the retirement by the Board of
Trustees. If the named designated beneficiary under Option 2 or 3 dies at
any time after the member’s retirement date, but before the death of the
member, the member shall return to the retirement benefit, including any
post retirement benefit increases the member would have received had the
member not selected Option 2 or 3 of this subsection. The benefit shall be
determined at the date of death of the designated beneficiary or July 1,
1994, whichever is later. This increase shall become effective the first day
of the month following the date of death of the designated beneficiary or
July 1, 1994, whichever is later, and shall be payable for the member’s
remaining lifetime. The member shall notify the Teachers’ Retirement System
of Oklahoma of the death of the designated beneficiary in writing. In the
absence of said written notice being filed by the member notifying the
Teachers’ Retirement System of Oklahoma of the death of the designated
beneficiary within six (6) months of the date of death, nothing in this
subsection shall require the Teachers’ Retirement System of Oklahoma to
pay more than six (6) months of retrospective benefits increase.
    Option 1. If he or she dies before he or she has received in annuity
    payments the present value of his or her annuity as it was at the time of
    his or her retirement, the balance shall be paid to his or her legal
    representatives or to such person as he or she shall nominate by written
    designation duly acknowledged and filed with the Board of Trustees at
    the time of his or her retirement; or
    Option 2. A member takes a reduced retirement allowance for life. Upon
    the death of the member the payments shall continue to the member’s
    designated beneficiary for the life of the beneficiary. The written
    designation of the beneficiary must be duly acknowledged and filed
    with the Board of Trustees at the time of the member’s retirement and
    cannot be changed after the effective date of the member’s retirement; or
    Option 3. A member receives a reduced retirement allowance for life.
    Upon the death of the member one-half (1/2) of the retirement allowance
    paid the member shall be continued throughout the life of the designated
    beneficiary. A written designation of a beneficiary must be duly
    acknowledged and filed with the Board of Trustees at the time of the
    member’s retirement and cannot be changed after the effective date of
    the member’s retirement; or
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     Option 4. Some other benefit or benefits shall be paid either to the
     member or to such person or persons as he or she shall nominate,
     provided such other benefit or benefits, together with the reduced
     retirement allowance, shall be certified by the actuary to be of equivalent
     actuarial value to his or her retirement allowance and shall be approved
     by the Board of Trustees; or
     Option 5. A member receives a reduced retirement allowance for life. If
     the member dies within twenty-five (25) years from the date of
     commencement of the retirement payments, such payments shall be
     continued to the beneficiary of the member during the balance of the
     twenty-five-year period. The written designation of the beneficiary, who
     must be a spouse, shall be duly acknowledged and filed with the Board
     of Trustees at the time of the member’s retirement.
     (d) Provided that Option 2 and Option 3 shall not be available if the
member’s expected benefit is less than fifty percent (50%) of the lump-sum
actuarial equivalent and the designated beneficiary is not the spouse of the
member.
(9) The governing board of any “public school”, as that term is defined in
Section 17-101 of this title, is hereby authorized and empowered to pay
additional retirement allowances or compensation to any person who was in
the employ of such public school for not less than seven (7) school years
preceding the date of his or her retirement. Payments so made shall be a
proper charge against the current appropriation or appropriations of any
such public school for salaries for the fiscal year in which such payments
are made. Such payments shall be made in regular monthly installments in
such amounts as the governing board of any such public school, in its
judgment, shall determine to be reasonable and appropriate in view of the
length and type of service rendered by any such person to such public school
by which such person was employed at the time of retirement. All such
additional payments shall be uniform, based upon the length of service and
the type of services performed, to persons formerly employed by such public
school who have retired or been retired in accordance with the provisions of
Section 1-101 et seq. of this title.
     The governing board of any such public school may adopt rules and
regulations of general application outlining the terms and conditions under
which such additional retirement benefits shall be paid, and all decisions of
such board shall be final.
(10) In addition to the teachers’ retirement herein provided, teachers may
voluntarily avail themselves of the Federal Social Security Program upon a
district basis.

146
(11)Upon the death of an in-service member, the System shall pay to the
designated beneficiary of the member or, if there is no designated beneficiary
or if the designated beneficiary predeceases the member, to the estate of the
member, the sum of Eighteen Thousand Dollars ($18,000.00) as a death
benefit. Provided, if the deceased member had ten (10) years or more of
creditable service and the death occurred after February 1, 1985, the
member’’s designated beneficiary may elect to receive the retirement benefit
to which the deceased member would have been entitled at the time of death
under the Option 2 plan of retirement in lieu of the death benefit provided
for in this subsection. Provided further, the option provided in this subsection
is only available when the member has designated one individual as the
designated beneficiary.
(12) Upon the death of an annuitant who has contributed to the System, the
retirement system shall pay to the designated beneficiary of the annuitant
or, if there is no designated beneficiary or if the designated beneficiary
predeceases the annuitant, to the estate of the annuitant, the sum of Five
Thousand Dollars ($5,000.00) as a death benefit. The benefit payable
pursuant to this subsection shall be deemed, for purposes of federal income
taxation, as life insurance proceeds and not as a death benefit if the Internal
Revenue Service approves this provision pursuant to a private letter ruling
request which shall be submitted by the board of trustees of the System for
that purpose.
(13) Upon the death of a member who dies leaving no living beneficiary or
having designated his or her estate as beneficiary, the System may pay any
applicable death benefit, unpaid contributions, or unpaid benefit which may
be subject to probate, in an amount of Five Thousand Dollars ($5,000.00)
or less, without the intervention of the probate court or probate procedure
pursuant to Section 1 et seq. of Title 58 of the Oklahoma Statutes.
     (a) Before any applicable probate procedure may be waived, the System
     must be in receipt of the member’s proof of death and the following
     documents from those persons claiming to be the legal heirs of the
     deceased member:
          1. The member’s valid last will and testament;
          2. An affidavit or affidavits of heirship which must state:
              a. the names and signatures of all claiming heirs to the deceased
              member’s estate including the claiming heirs’ names, relationship
              to the deceased, current addresses and current telephone
              numbers,
              b. a statement or statements by the claiming heirs that no
              application or petition for the appointment of a personal

                                                                            147
               representative is pending or has been granted in any
               jurisdiction,
               c. a statement that the value of the deceased member’s entire
               estate is subject to probate, and that the estate wherever located, less
               liens and encumbrances, does not exceed Five Thousand Dollars
               ($5,000.00), including the payment of benefits or unpaid
               contributions from the System as authorized by this subsection,
               d. a description of the personal property claimed, (i.e., death
               benefit or unpaid contributions or both) together with a statement
               that such personal property is subject to probate,
               e. a statement by each individual claiming heir identifying the
               amount of personal property that the heir is claiming from the
               System, and that the heir has been notified of, is aware of and
               consents to the identified claims of all the other claiming heirs of the
               deceased member pending with the System;
          3. A written agreement or agreements signed by all claiming heirs
          of the deceased member which provides that the claiming heirs
          release, discharge and hold harmless the System from any and all
          liability, obligations and costs which it may incur as a result of
          making a payment to any of the deceased member’s heirs;
          4. A corroborating affidavit from an individual other than a
          claiming heir, who was familiar with the affairs of the deceased
          member;
          5. Proof that all debts of the deceased member, including payment
          of last sickness, hospital, medical, death, funeral and burial expenses
          have been paid or provided for.
      (b) The Executive Director of the System shall retain complete discretion
      in determining which requests for probate waiver may be granted or
      denied, for any reason. Should the System have any question as to the
      validity of any document presented by the claiming heirs, or as to any
      statement or assertion contained therein, the probate requirement
      provided for in Section 1 et seq. of Title 58 of the Oklahoma Statutes,
      shall not be waived.
      (c) After paying any death benefits or unpaid contributions to any
      claiming heirs as provided pursuant to this subsection, the System is
      discharged and released from any and all liability, obligation and costs
      to the same extent as if the System had dealt with a personal
      representative of the deceased member. The System is not required to
      inquire into the truth of any matter specified in this subsection or into
      the payment of any estate tax liability.

148
(14)     Upon the death of a retired member, the benefit payment for the
month in which the retired member died, if not previously paid, shall be
made to the beneficiary of the member or to the member’s estate if there is
no beneficiary. Such benefit payment shall be made in an amount equal to a
full monthly benefit payment regardless of the day of the month in which
the retired member died.
70 O.S., § 17-105.1. Unpaid Accumulated Contributions - Payment to
Beneficiary or Next of Kin.
    In the event the total retirement payments made to a retired member and
the retired member’s joint annuitant, if any, are less than the member’s
accumulated contributions with interest as credited at the time of retirement
under Section 70-17-105 of this title, the difference shall be paid to the
member’s designated beneficiary or if no designated beneficiary survives,
then to the member’s nearest surviving next of kin as determined by law.
This provision shall apply to retired members dying on or after July 1, 1979.
70 O.S., § 17-105.2. Thirty Years Service - Partial Lump Sum Payment
A. A member who is eligible to retire with at least thirty (30) years of
creditable service may elect to receive a partial lump-sum payment on the
date of retirement and a reduced annuity. The partial lump-sum payment
shall be an amount equal to the unreduced retirement benefit, which shall be
referred to as the “Maximum Retirement Allowance” for purposes of this
section, which would have been paid over a period of twelve (12), twenty-
four (24) or thirty-six (36) months, had the lump-sum option not been elected.
Once the payout amount is elected, a reduced Maximum Retirement
Allowance is then calculated using factors adopted by the Board of Trustees
based upon the System’s actuarial expected rate of return and the member’s
age at retirement and the payout option (twelve (12), twenty-four (24), or
thirty-six (36) months) elected. This reduced Maximum Retirement
Allowance shall also be reduced in accordance with any retirement options
the member has elected pursuant to Section 17-105 of Title 70 of the
Oklahoma Statutes.
B. The partial lump-sum payment, pursuant to this section, shall be paid
in a check separate from the regular monthly retirement benefit. The total
amount of the partial lump-sum payment shall be deducted from the member’s
account balance consisting of the employee contributions plus interest for
purposes of determining unused contributions remaining in the account.
The member may elect to rollover the taxable portion of the partial lump-
sum payment to an eligible retirement plan or individual retirement account
(IRA). The nontaxable portion of the partial lump-sum payment can be

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rolled over to an IRA or another qualified retirement plan as allowed by the
Internal Revenue Code and regulations. This partial lump-sum payment
shall be subject to federal income tax in accordance with the Internal Revenue
Code Section 72 and other such Internal Revenue Code sections and
regulations as may be applicable. This partial lump-sum benefit is subject
to the same restrictions for assignment and attachment as all other retirement
benefits. The appropriate portion of the partial lump-sum distribution will
be reported to the Internal Revenue Service (IRS) as taxable income and
appropriate tax withholdings will be withheld unless the member elects to
make a direct rollover of the taxable portion of the funds. Should the member
have after-tax contributions, a portion of such after-tax contributions will
be allocated to the partial lump-sum payment and to the remaining annuity
on a prorata basis.
C. The partial lump-sum option under this section may be elected only
once by a member and may not be elected by a retiree.
D. The board of trustees shall promulgate any rules necessary for the
implementation of this section.
70 O.S., § 17-106. Board of Trustees and Other Personnel
(1) The general administration and responsibility for the proper operation
of the retirement system and for making effective the provisions of the act
are hereby vested in a Board of Trustees which shall be known as the Board
of Trustees and shall be organized immediately after a majority of the trustees
provided for in this section shall have qualified and taken the oath of office.
(2) The Board shall consist of the following members:
     (a) The State Superintendent of Public Instruction, ex officio.
     (b) The Director of State Finance, ex officio.
     (c) The Director of the Oklahoma Department of Career and Technology
     Education, ex officio, or his or her designee.
     (d) One member appointed by the Governor whose initial term of office
     shall expire on January 14, 1991. The members thereafter appointed by
     the Governor shall serve a term of office of four (4) years which is
     coterminous with the term of office of the office of the appointing
     authority.
     (e) Two members shall be appointed by the Governor of the State of
     Oklahoma and approved by the Senate. The two members shall be: 1. a
     representative of a school of higher education in Oklahoma whose term
     of office shall initially be one (1) year, and 2. a member of the System
     of the nonclassified optional personnel status whose initial term of office
     shall be two (2) years. After the said initial terms of office the terms of
     said members shall be four (4) years.

150
(f) Upon the expiration of the term of office of the stockbroker member
of the Board, the Governor shall appoint a member to the Board whose
initial term of office shall expire on January 14, 1991. The members
thereafter appointed by the Governor shall serve a term of office of four
(4) years which is coterminous with the term of office of the office of
the appointing authority.
(g) Upon the expiration of the term of office of the representative of the
insurance industry member of the Board, the Governor shall appoint a
member to the Board whose initial term of office shall expire on
January 14, 1991. The members thereafter appointed by the Governor
shall serve a term of office of four (4) years which is coterminous with
the term of office of the office of the appointing authority.
(h) Upon the expiration of the term of office of the investment counselor
member of the Board, the Governor shall appoint a member to the Board
whose initial term of office shall expire on January 14, 1991. The
members thereafter appointed by the Governor shall serve a term of
office of four (4) years which is coterminous with the term of office of
the office of the appointing authority.
(i) Upon the expiration of the term of office of the active classroom
teacher member of the Board, the President Pro Tempore of the Senate
shall appoint a member to the Board, who shall be an active classroom
teacher and whose initial term of office shall expire on January 8, 1991.
The members thereafter appointed by the President Pro Tempore of the
Senate shall serve a term of office of four (4) years.
(j) Upon the expiration of the term of office of the retired classroom
teacher member of the Board, the Speaker of the House of
Representatives shall appoint a member to the Board, who shall be a
retired member of the System and whose initial term of office shall
expire on January 8, 1991. The members thereafter appointed by the
Speaker of the House of Representatives shall serve a term of office of
four (4) years.
(k) The Speaker of the House of Representatives shall appoint a member
to the Board, who shall be an active classroom teacher and whose initial
term of office shall expire on January 3, 1989. The members thereafter
appointed by the Speaker of the House of Representatives shall serve a
term of office of four (4) years.
(l) The President Pro Tempore of the Senate shall appoint a member to
the Board, who shall be a retired member of the System and whose
initial term of office shall expire on January 3, 1989. The members
thereafter appointed by the President Pro Tempore of the Senate shall
serve a term of office of four (4) years.
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(3) Persons who are appointed to the Board of Trustees by the Governor pursuant
to paragraphs (d), (f), (g) and (h) of subsection (2) of this section shall:
     (a) have demonstrated professional experience in investment or funds
     management, public funds management, public or private pension fund
     management or retirement system management; or
     (b) have demonstrated experience in the banking profession and have
     demonstrated professional experience in investment or funds
     management; or
     (c) be licensed to practice law in this state and have demonstrated
     professional experience in commercial matters; or
     (d) be licensed by the Oklahoma State Board of Public Accountancy to
     practice in this state as a public accountant or a certified public
     accountant.
     The appointing authorities, in making appointments that conform to the
requirements of this subsection, shall give due consideration to balancing
the appointments among the criteria specified in paragraphs (a) through (d)
of this subsection.
(4) No member of the Board of Trustees shall be a lobbyist registered in
this state as provided by law.
(5) Notwithstanding any of the provisions of this section to the contrary,
any person serving as an appointed member of the Board of Trustees on the
operative date of this act shall be eligible for reappointment when the term
of office of the member expires.
(6) If a vacancy occurs in the office of a trustee, the vacancy shall be filled
for the unexpired term in the same manner as the office was previously
filled.
(7) Each of the trustees, except those who are state officials serving ex
officio, shall receive travel expenses in accordance with the State Travel
Reimbursement Act.
(8) Each trustee shall, within ten (10) days after his appointment or election,
take an oath of office that, so far as it devolves upon him, he will diligently
and honestly administer the affairs of the Board of Trustees and that he will
not knowingly violate or willingly permit to be violated any of the provisions
of law applicable to the retirement system. Such oath shall be subscribed to
by the member making it, certified by the officer before whom it is taken,
and immediately filed in the office of the Secretary of State.
(9) Each trustee shall be entitled to one vote on the Board of Trustees.
Seven votes shall be necessary for a decision by the trustees at any meeting
of said Board.
(10) Subject to the limitations of this act, the Board of Trustees shall, from
time to time, establish rules and regulations for the administration of the
152
funds created by this act and for the transaction of its business. Provided
that such rules and regulations may include rules and regulations providing
for the withholding from the retirement allowance due a retired person under
the provisions of this act an amount requested in writing by the retiree for
the purpose of paying:
     (a) monthly premiums on group hospital and surgical insurance
     programs to which such retiree belongs, and for the transmitting of the
     sums so withheld to the insurance carrier designated by the retiree; and
     (b) membership dues in any statewide association limited to retired
     educator membership with a minimum membership of one thousand
     (1,000) dues-paying members and for the transmitting of the sums so
     withheld.
(11)The Board of Trustees shall elect from its membership a chairman, and
by a majority vote of all of its members shall appoint a secretary-treasurer,
who may be, but need not be, one of its members. The Board shall employ
an executive secretary and shall engage such actuarial and other service as
shall be required to transact the business of the retirement system. The
compensation of all persons engaged by the Board and all other expenses of
the Board necessary for the operation of the retirement system shall be paid
at such rates and in such amounts as the Board shall approve.
(12) The members of the Board of Trustees, the Executive Secretary and
the employees of the System shall not accept gifts or gratuities from an
individual organization with a value in excess of Fifty Dollars ($50.00) per
year. The provisions of this section shall not be construed to prevent the
members of the Board of Trustees, the Executive Secretary or the employees
of the System from attending educational seminars, conferences, meetings
or similar functions which are paid for, directly or indirectly, by more than
one organization.
(13) The Board of Trustees shall keep in convenient form such data as shall
be necessary for actuarial valuation of the various funds of the retirement
system and for checking the experience of the system.
(14) The Board of Trustees shall keep a record of all of its proceedings
which shall be open to public inspection. It shall publish annually a report
showing the fiscal transactions of the retirement system for the preceding
school year, the amount of the accumulated cash and securities of the system,
and the last balance sheet showing the financial condition of the system by
means of an actuarial valuation of the assets and liabilities of the retirement
system and a detailed accounting of its administrative expenses.
(15) The Board of Trustees shall retain an attorney who is licensed to practice
law in this state. The attorney shall serve at the pleasure of the Board of
Trustees for such compensation as may be provided by the Board of Trustees.
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The attorney shall advise the Board of Trustees and perform legal services
for the Board of Trustees with respect to any matters properly before the
Board of Trustees. When requested by the Board of Trustees, the Attorney
General of the state also shall render legal services to the Board of Trustees.
In addition to the above, the Board of Trustees may employ hearing examiners
to conduct administrative grievance hearings under the provisions of the
Oklahoma Administrative Procedures Act, Sections 301 through 325 of Title
75 of the Oklahoma Statutes.
(16) Suitable offices shall be furnished by the Department of Central Services.
Upon the failure or inability of the Department of Central Services to provide
adequate facilities, the Board of Trustees may contract for necessary office
space in suitable quarters.
(17) The Board of Trustees shall designate a Medical Board to be composed
of three physicians not eligible to participate in the retirement system. The
physicians so appointed by the Board of Trustees shall be legally qualified
to practice medicine in Oklahoma and shall be physicians of good standing
in the medical profession. If required, other physicians may be employed to
report on special cases. The Medical Board shall pass upon all medical
examinations required under the provisions of this act and shall investigate
all essential statements and certificates by or on behalf of a member in
connection with an application for disability retirement and shall report in
writing to the Board of Trustees its conclusion and recommendation upon
all the matters referred to it. The Board of Trustees shall adopt such rules
and regulations as may be necessary to properly administer this benefit.
(18) The Board of Trustees shall designate an actuary who shall be the
technical advisor of the Board of Trustees on matters regarding the operation
of funds created by the provisions of this act and shall perform such other
duties as are required in connection therewith.
(19) At least once each five (5) years the actuary shall make an actuarial
investigation of the experience of the retirement system, including the
mortality, service and compensation experience of members and beneficiaries.
Based on the results of such investigation the actuary shall recommend for
adoption by the Board of Trustees such tables and rates as are required for
the operation of the retirement system and for the preparation of annual
actuarial valuations.
(20) On the basis of such tables and rates as the Board of Trustees shall
adopt, the actuary shall prepare an annual actuarial valuation of the assets
and liabilities of the retirement system and certify the rates of contribution
payable by the state under the provisions of law concerning the Teachers’
Retirement System.

154
(21) Subject to the funds available under the provisions of Section 1004 of
Title 68 of the Oklahoma Statutes, the employer contributions to the
retirement system for the fiscal year beginning July 1, 1987, and for each
fiscal year thereafter, shall be determined by the Board of Trustees on the
basis of the most recent actuarial valuation, which amount shall be calculated
as the sum of the normal cost for the fiscal year plus the payment required
to amortize the unfunded accrued liability at a rate of level dollar payments
not to exceed forty (40) years.
70 O.S., § 17-106.1. Board of Trustees of Teachers’ Retirement System
- Discharge of Duties - Investments - Reports
A. The Board of Trustees of the Teachers’ Retirement System of Oklahoma
shall discharge their duties with respect to the System solely in the interest
of the participants and beneficiaries and:
     1. For the exclusive purpose of:
          a. providing benefits to participants and their beneficiaries, and
          b. defraying reasonable expenses of administering the System;
     2. With the care, skill, prudence, and diligence under the circumstances
     then prevailing that a prudent person acting in a like capacity and familiar
     with such matters would use in the conduct of an enterprise of a like
     character and with like aims;
     3. By diversifying the investments of the System so as to minimize the
     risk of large losses, unless under the circumstances it is clearly prudent
     not to do so; and
     4. In accordance with the laws, documents and instruments governing
     the System.
B. The Board of Trustees may procure insurance indemnifying the members
of the Board of Trustees from personal loss or accountability from liability
resulting from a member’s action or inaction as a member of the Board.
C. The Board of Trustees may establish an investment committee. The
investment committee shall be composed of not more than five (5) members
of the Board of Trustees appointed by the chairman of the Board of Trustees.
The committee shall make recommendations to the full Board of Trustees
on all matters related to the choice of custodians and managers of the assets
of the System, on the establishment of investment and fund management
guidelines, and in planning future investment policy. The committee shall
have no authority to act on behalf of the Board of Trustees in any
circumstances whatsoever. No recommendation of the committee shall have
effect as an action of the Board of Trustees nor take effect without the
approval of the Board of Trustees as provided by law.


                                                                             155
D. The Board of Trustees may retain qualified investment managers to
provide for the investment of the monies of the System. The investment
managers shall be chosen by a solicitation of proposals on a competitive bid
basis pursuant to standards set by the Board of Trustees. Subject to the
overall investment guidelines set by the Board of Trustees, the investment
managers shall have full discretion in the management of those monies of
the System allocated to the investment managers. The Board of Trustees
shall manage those monies not specifically allocated to the investment
managers. The monies of the System allocated to the investment managers
shall be actively managed by the investment managers, which may include
selling investments and realizing losses if such action is considered
advantageous to longer term return maximization. Because of the total return
objective, no distinction shall be made for management and performance
evaluation purposes between realized and unrealized capital gains and losses.
E. Funds and revenues for investment by the investment managers or the
Board of Trustees shall be placed with a custodian selected by the Board of
Trustees. The custodian shall be a bank or trust company offering pension
fund master trustee and master custodial services. The custodian shall be
chosen by a solicitation of proposals on a competitive bid basis pursuant to
standards set by the Board of Trustees. In compliance with the investment
policy guidelines of the Board of Trustees, the custodian bank or trust company
shall be contractually responsible for ensuring that all monies of the System are
invested in income-producing investment vehicles at all times. If a custodian
bank or trust company has not received direction from the investment managers
of the System as to the investment of the monies of the System in specific
investment vehicles, the custodian bank or trust company shall be contractually
responsible to the Board of Trustees for investing the monies in appropriately
collateralized short-term interest-bearing investment vehicles.
F. By November 1, 1988, and prior to August 1 of each year thereafter,
the Board of Trustees shall develop a written investment plan for the System.
G. The Board of Trustees shall compile a quarterly financial report of all
the funds of the System on a fiscal year basis. The report shall be compiled
pursuant to uniform reporting standards prescribed by the Oklahoma State
Pension Commission for all state retirement systems. The report shall include
several relevant measures of investment value, including acquisition cost
and current fair market value with appropriate summaries of total holdings
and returns. The report shall contain combined and individual rate of returns
of the investment managers by category of investment, over periods of time.
The Board of Trustees shall include in the quarterly reports all commissions,
fees or payments for investment services performed on behalf of the Board.
The report shall be distributed to the Governor, the Oklahoma State Pension
156
Commission, the Legislative Service Bureau, the Speaker of the House of
Representatives and the President Pro Tempore of the Senate.
H. After July 1 and before October 1 of each year, the Board of Trustees
publish widely an annual report presented in simple and easily understood
language pursuant to uniform reporting standards prescribed by the
Oklahoma State Pension Commission for all state retirement systems. The
report shall be submitted to the Governor, the Speaker of the House of
Representatives, the President Pro Tempore of the Senate, the Oklahoma
State Pension Commission and the members of the System. The annual
report shall cover the operation of the System during the past fiscal year,
including income, disbursements, and the financial condition of the System
at the end of the fiscal year. The annual report shall also contain the
information issued in the quarterly reports required pursuant to subsection
G of this section as well as a summary of the results of the most recent
actuarial valuation to include total assets, total liabilities, unfunded liability
or over funded status, contributions and any other information deemed
relevant by the Board of Trustees. The annual report shall be written in
such a manner as to permit a readily understandable means for analyzing
the financial condition and performance of the System for the fiscal year. In
order to standardize the information and analysis of the financial condition
of the System, the Board shall provide information regarding the financial
and actuarial condition of the System using assumptions or requirements as
hereinafter required for the report stating the condition of the System as of
July 1, 2002, and for each subsequent reporting date, which information
shall be contained in an appendix or addendum to the annual report. For
purposes other than the reporting requirements contained in the appendix or
addendum, all actuarial and economic assumptions shall be those
assumptions adopted by the System in its annual actuarial valuation. The
appendix or addendum shall contain a statement of the financial condition
of the System:
     1. Using an assumed rate of return of seven and one-half percent
     (7.5%), net of investment expenses, per annum, compounded annually;
     2. Using an actuarial assumption regarding cost-of-living adjustments
     for the System of two percent (2%) annually;
     3. That relies upon the use of appropriate preretirement, postretirement
     and disability retirement information using generational projections taken
     from the RP-2000 Mortality Tables, published by the Society of Actuaries;
     4. Which accurately and completely summarizes all sources of system
     assets, other than employee contributions, which shall include, but not
     be limited to, the total of all employer contributions, any dedicated tax
     or fee revenue of whatever kind or however denominated, and the total
                                                                              157
    amount of any other source of revenue which accrues to the System,
    other than return on investments, such as federal monies used for the
    purpose of making employer contributions; and
    5. Using an assumption that the unfunded actuarial accrued liabilities
    of the System are amortized over a period of thirty (30) years, in a
    manner consistent with the Governmental Accounting Standards Board
    Statement Number 25.
I. The Board of Trustees shall adopt a cost of living adjustment actuarial
assumption in its annual actuarial valuation report.
70 O.S., § 17-106.2. Fiduciary Duties.
A. A fiduciary with respect to the Teachers’ Retirement System of Oklahoma
shall not cause the System to engage in a transaction if the fiduciary knows
or should know that such transaction constitutes a direct or indirect:
    1. sale or exchange, or leasing of any property from the System to a
    party in interest for less than adequate consideration or from a party in
    interest to the System for more than adequate consideration;
    2. lending of money or other extension of credit from the System to a
    party in interest without the receipt of adequate security and a reasonable
    rate of interest, or from a party in interest to the System with provision
    of excessive security or an unreasonably high rate of interest;
    3. furnishing of goods, services or facilities from the System to a party
    in interest for less than adequate consideration, or from a party in interest
    to the System for more than adequate consideration; or
    4. transfer to, or use by or for the benefit of, a party in interest of any
    assets of the System for less than adequate consideration.
B. A fiduciary with respect to the Teachers’ Retirement System of Oklahoma
shall not:
    1. deal with the assets of the System in the fiduciary’s own interest or
    for the fiduciary’s own account;
    2. in the fiduciary’s individual or any other capacity act in any
    transaction involving the System on behalf of a party whose interests
    are adverse to the interests of the System or the interests of its participants
    or beneficiaries; or
    3. receive any consideration for the fiduciary’s own personal account
    from any party dealing with the System in connection with a transaction
    involving the assets of the System.
C. A fiduciary with respect to the Teachers’ Retirement System of Oklahoma
may:
    1. invest all or part of the assets of the System in deposits which bear
    a reasonable interest rate in a bank or similar financial institution

158
     supervised by the United States or a state, if such bank or other institution
     is a fiduciary of such plan; or
     2. provide any ancillary service by a bank or similar financial institution
     supervised by the United States or a state, if such bank or other institution
     is a fiduciary of such plan.
D. A person or a financial institution is a fiduciary with respect to the
Teachers’ Retirement System of Oklahoma to the extent that the person or
the financial institution:
     1. exercises any discretionary authority or discretionary control
     respecting management of the Teachers’ Retirement System of Oklahoma
     or exercises any authority or control respecting management or
     disposition of the assets of the System;
     2. renders investment advice for a fee or other compensation, direct or
     indirect, with respect to any monies or other property of the System, or
     has any authority or responsibility to do so; or
     3. has any discretionary authority or discretionary responsibility in
     the administration of the System.
70 O.S., § 17-106.3. Contributions and Dedicated Revenues Deposits -
Refunds of Contribution and Overpayments.
A. All employee and employer contributions and dedicated revenues shall
be deposited in the Oklahoma Teachers’ Retirement Fund in the State
Treasury. The Board of Trustees shall have the responsibility for the
management of the Oklahoma Teachers’ Retirement Fund, and may transfer
monies used for investment purposes by the Teachers’ Retirement System
of Oklahoma from the Oklahoma Teachers’ Retirement Fund in the State
Treasury to the custodian bank or trust company of the System.
B. All benefits payable pursuant to the provisions of the Teachers’
Retirement System of Oklahoma, refunds of contribution and overpayments,
and all administrative expenses in connection with the System shall be paid
from the Oklahoma Teachers’ Retirement Fund upon warrants or vouchers
signed by two persons designated by the Board of Trustees. All expenses of
the administration of the Tax-Sheltered Annuity Fund shall be paid from the
Oklahoma Teachers’ Retirement Fund. The Board of Trustees may transfer
monies from the custodian bank or trust company of the System to the
Oklahoma Teachers’ Retirement Fund in the State Treasury for the purposes
specified in this subsection.
70 O.S., § 17-106.4. Appeal to Oklahoma County District Court.
    Any person aggrieved by any decision of the board of Trustees may
appeal from such decision by filing a petition in the Oklahoma County

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District Court within thirty (30) days from the date of such decision. All
actions or proceedings directly or indirectly against the Teachers’ Retirement
System of Oklahoma shall be brought in Oklahoma County
70 O.S., § 17-107. Credit of Interest Earned on Investments in Teachers’
Retirement System.
    The interest earned on the investments in the Teachers’ Retirement
System of Oklahoma shall be credited in the following manner:
    1. money on deposit in the Teachers’ Deposit Fund or Tax-Sheltered
    Annuity Fund shall be credited with interest annually compounded;
    2. there shall be deducted from the annual interest on investments an
    amount necessary for the amortization of bonds purchased and owned
    by the Teachers’ Retirement System of Oklahoma;
    3. there shall be deducted from the annual interest on investments an
    amount of money necessary for the operation of the Teachers’ Retirement
    System of Oklahoma; and
    4. any residue remaining in the Interest Fund after the requirements of
    paragraphs 1 through 3 of this section have been fully met shall be used
    for the purpose of paying retirement benefits to the retirees of the
    Teachers’ Retirement System of Oklahoma and transferred to the
    Retirement Benefit Fund; the interest income shall be distributed to the
    various funds on June 30 each year.
70 O.S., § 17-107.1. Repealed by Laws 1988, c. 321, § 45, operative
July 1, 1988.
70 O.S., § 17-108. Contributions and Funds
A. Each local school district, or state college or university, or State Board
of Education or State Board of Career and Technology Education, or other
state agencies whose employees are members of the Teachers’ Retirement
System shall match on a pro rata basis, in accordance with subsection B of
this section the contributions of members whose salaries are paid by federal
funds or externally sponsored agreements such as grants, contracts and
cooperative agreements. These funds shall be remitted at the same time as
the regular contributions of members are remitted to the Teachers’ Retirement
System of Oklahoma and deposited in the Retirement Benefit Fund.
B. On an annual basis, the Board of Trustees shall set the contribution rate
to be paid by contributing employers as provided in subsection A of this
section. The contribution rate shall be determined using cost principles
established by federal regulations and shall be consistent with policies,
regulations and procedures that apply uniformly to both federally assisted
and other activities, and be accorded consistent treatment through application

160
of generally accepted accounting principles. The Board shall approve the
contribution rate for each fiscal year ending June 30, no later than April 1
of the previous fiscal year.
C. All the assets of the retirement system shall be credited according to the
purpose for which they are held to one of ten funds, namely: The Teachers’
Savings Fund, the Retirement Benefit Fund, the Interest Fund, the Permanent
Retirement Fund, the Expense Fund, the Suspense Fund, the Reserve for
Investment Fluctuations Fund, the Teachers’ Deposit Fund, the Membership
Annuity Reserve Fund and the Retiree Medical Benefit Fund.
     1. The Teachers’ Savings Fund shall be a fund in which shall be
     accumulated the regular contributions from the compensation of
     members, including interest earnings prior to July 1, 1968. Contributions
     to and payments from the Teachers’ Savings Fund shall be made as
     specifically provided in each plan available within the retirement system.
     2. The deductions provided for in the plans within the retirement system
     shall be made notwithstanding that the minimum compensation provided
     for any member shall be reduced thereby. Every member shall be deemed
     to consent and agree to the deductions made and provided for herein
     and payment of salary or compensation, less said deduction, shall be a
     full and complete discharge and acquittance of all claims and demands
     whatsoever for the services rendered by such person during the period
     covered by such payment, except as to the benefits provided under this
     act. The employer shall certify to the Board of Trustees on each and
     every payroll, or in such other manner as said Board may prescribe, the
     amounts to be deducted, and each of said amounts shall be deducted,
     and when deducted shall be paid into said Teachers’ Savings Fund, and
     shall be credited to the individual account of the member from whose
     compensation said deduction was made.
     3. Following the termination of membership in the retirement system
     for any member who has been absent from service for five (5) years in
     any period of six (6) consecutive years, the Teachers’ Savings Fund
     Account of such member shall be closed and the amount due the member
     as provided in Section 17-105 of this title shall be paid upon the filing
     of formal application. At the time such membership is terminated the
     amount due the member as provided in said Section 17-105 of this title
     shall be transferred to the Suspense Fund.
     4. Upon the retirement of a member an amount sufficient to pay his
     annuity benefit for a two-year period shall be transferred from the
     Teachers’ Savings Fund to the Retirement Benefit Fund; an amount
     sufficient to pay his annuity benefit for one (1) year shall be transferred
     each succeeding year thereafter. Should a member who has retired under
                                                                            161
      Option 1 die, the balance of money he had in Teachers’ Savings Fund
      shall be transferred to the Retirement Benefit Fund for payment to his
      beneficiary or estate.
      5. Retirement Benefit Fund.
          a. After August 2, 1969, there shall be transferred from the
          Teachers’ Savings Fund and the Membership Annuity Reserve Fund
          for those members drawing retirement benefits from the Teachers’
          Retirement System of Oklahoma an amount necessary to provide
          the monthly annuity payments and pension payments. In addition
          the fund shall consist of monies received from any state dedicated
          revenue, monies received from state appropriations, monies received
          from federal matching funds, and the residue of the interest on
          investments after the requirements of Section 17-107 of this title
          have been fully met. The Retirement Benefit Fund shall consist of
          an amount of money necessary for the making of retirement
          payments to retirees.
          b. Should a member have deposits in the Teachers’ Deposit Fund
          or the Tax-Sheltered Annuity Fund and wish to receive monthly
          retirement benefits on such deposits, the actuarial equivalent of a
          two-year period and each succeeding fiscal year thereafter shall be
          transferred to the Retirement Benefit Fund. The member may choose
          any of the plans available in the Teachers’ Retirement Act as a
          method of receiving monthly retirement benefits on the money he
          has on deposit in the Teachers’ Deposit Fund or the Tax-Sheltered
          Annuity Fund. The monthly retirement benefits paid from the
          Teachers’ Deposit Fund or the Tax-Sheltered Annuity Fund shall
          be in addition to the regular retirement benefits and the money
          transferred from the Teachers’ Deposit Fund or Tax-Sheltered
          Annuity Fund shall not be matched by the State of Oklahoma.
          c. From the Retirement Benefit Fund shall be paid all monthly
          retirement benefits.
          d. At the death of a retired member who has retired under the
          Maximum Plan of Retirement, Option 1 or Option 4, the balance of
          money the member has in the Teachers’ Savings Fund shall be
          transferred to the Retirement Benefit Fund and the amount due the
          beneficiary or his estate under Option 1 or Option 4 shall be paid
          from the Retirement Benefit Fund.
          e. At the death of both a retired member and the retired member’s
          spouse, who had retired under Option 2 or 3, any balance in the
          Teachers’ Savings Fund shall be transferred from the Teachers’
          Savings Fund to the Retirement Benefit Fund.
162
     f. At the death of a retired member who had retired under Option
     5, the balance of any monies the member had in the Teachers’ Savings
     Fund shall be transferred to the Retirement Benefit Fund for the
     purpose of making a lump-sum settlement to the beneficiary or his
     estate. Providing that if the surviving spouse elects to receive the
     balance under the Maximum Plan of Retirement or Option 1 the
     member’s money, if any, on a monthly basis, constituting actuarial
     equivalent of two (2) years’ payments, and each year thereafter the
     annual actuarial equivalent, shall be transferred from the Teachers’
     Savings Fund for the purpose of paying monthly retirement benefits
     to the spouse under this option.
6. The Interest Fund is hereby created to facilitate the crediting of
interest to the various other funds to which interest is to be credited. All
income, interest and dividends derived from the deposits and investments
authorized by this act shall be paid into the Interest Fund. On June 30,
each year, interest shall be transferred to the other funds as herein
provided.
7. The Permanent Retirement Fund shall consist of the accumulated
gifts, awards, and bequests made to the retirement system, and transfers
from the Suspense Fund, the principal of which is hereby held and
dedicated as a perpetual endowment of the retirement system and shall
not be diverted or appropriated to any other cause or purpose unless
specifically provided for in such gifts, awards or bequests.
8. The Expense Fund shall be the fund from which the expense of
administration and maintenance of the retirement system shall be paid.
The Board of Trustees shall cause to be prepared and adopt annually an
itemized budget showing the amount required to defray the expenses
for the ensuing fiscal year.
     Transfers to and payments from this fund shall be made as follows:
first, from the Interest Fund; second, from any dedicated revenue; and,
third, from appropriation by the Oklahoma Legislature.
     All monies for the operation of the Teachers’ Retirement System of
Oklahoma shall be paid from the Expense Fund upon the approval by
the Board of Trustees and the checks signed by two people designated
to sign such checks by the Board of Trustees of the Teachers’ Retirement
System of Oklahoma.
9. The Suspense Fund shall be comprised of amounts transferred to
the fund as provided in this section and Section 17-105 of this title and
obligations of the retirement system to any member or person which
cannot be legally discharged.

                                                                        163
      10. The Reserve for Investment Fluctuations Fund shall be the fund in
      which eight percent (8%) of the investment earnings and the realized
      profits from the sale or exchange of securities shall be deposited each
      year until an amount equal to two percent (2%) of the total investments
      shall be accumulated, and such fund shall thereafter be maintained at
      such level. Upon proper resolution by the Board of Trustees transfers
      may be made from this fund to reimburse the investment account of
      other funds wherein a deficit shall have accrued.
      11. Teachers’ Deposit Fund.
               Any member may request, prior to a pay period, that his
           employer make additional deposits for him, for tax-sheltered annuity
           purposes. However, the amount deposited shall not exceed the limits
           as defined in Section 402(g) and Section 415 of the Internal Revenue
           Code of 1986, as amended, and applicable federal regulations. All
           such deposits shall be credited to the member’s account in the
           Teachers’ Deposit Fund for the purchase of a tax-sheltered annuity.
           The amount thus accumulated, with earnings, shall be used upon
           the member’s retirement, separation from service, death or disability
           to purchase an annuity in addition to his regular service retirement
           allowance. The amount a member accumulates in the Teachers’ Deposit
           Fund, not including interest, may be used to pay distributions in the
           case of hardship as provided in Section 403(b)(11) of the Internal
           Revenue Code of 1986, as amended, and applicable federal regulations.
      12. The Membership Annuity Reserve Fund is composed of teachers’
      contributions and state matching funds for those members who retired
      before August 2, 1968. From this fund there shall be transferred the
      actuarial equivalent necessary to pay retirement benefits for a period of
      two (2) years and thereafter the actuarial equivalent necessary to pay
      retirement benefits for one (1) succeeding year.
      13. Collection of Contributions.
           a. The collection of members’ contributions shall be as follows:
               (1) Each employer shall cause to be deducted on each and every
               payroll or claim of a member for each and every payroll claim period
               subsequent to the date of establishment of the retirement system the
               contribution payable by such member as provided in this act. With
               each and every payroll or claim the employer shall deliver to the
               treasurer of said employer warrants issued to the employees as
               shown to be due by said payroll or claim, together with a warrant or
               warrants in favor of the Teachers’ Retirement System as shown by
               said payroll or claim.

164
(2) The treasurer or disbursing officer upon delivery of the
warrants and a true copy of the payroll or claims as provided above
shall register said warrants as provided for the registration of other
school warrants, and shall deliver to the employer warrants issued
in favor of the employees, and shall deliver warrants issued in favor
of the Teachers’ Retirement System and the copy of the payroll or
claims to the school district superintendent as designated by the
Board of Trustees. For the purpose of collecting contributions of
teachers in the public schools, the superintendent of a school district
is hereby designated to receive the Teachers’ Retirement warrants
from the treasurer or proper disbursing officer of the several school
districts for the purpose of transmitting such warrants and payroll
or claims to the Executive Secretary of the Teachers’ Retirement
System of the State of Oklahoma. Any college or university or other
educational institution or agency operated in whole or in part by the
state shall have the amount retained or deducted from the funds
regularly appropriated by the state for the current maintenance for
such educational departments and institutions.
(3) For the purpose of enabling the collection of the contributions
of the members of the retirement system to be made as simple as
possible, the Board of Trustees shall require the secretary or other
officer of each employer-board or agency, within thirty (30) days
after the beginning of each school year, to make a list of all teachers in
its employ who are members of the retirement system, certify to the
correctness of this list, and file the same with the Executive
Secretary of the Board of Trustees of the Teachers’ Retirement
System. If additions to or deductions from this list should be made
during the year such additions or deductions shall likewise be certified to
the Board of Trustees of the Teachers’Retirement System.
(4) The State Treasurer shall furnish annually to the Board of
Trustees a sworn statement of the amount of the funds in his custody
belonging to the retirement system. The records of the Board of
Trustees shall be open to public inspection and any member of the
retirement system shall be furnished with a statement of the amount
of the credit to his individual account upon written request by such
member, provided the Board of Trustees shall not be required to answer
more than one such request of a member in any one (1) year.
(5) Failure of any superintendent, officer, or other person to
discharge the duties imposed upon him by this act shall render him or
his bondsman liable for any loss occasioned thereby to the

                                                                       165
              Teachers’ Retirement System or the employees of the school
              district, or both.
              (6) On a showing by the Teachers’ Retirement System that a
              warrant, voucher or check issued to it has, for any reason, been lost
              or never received, after ninety (90) days from the date of issue or
              from transmittal for payment, it shall be the duty of the issuing
              authority forthwith, without any indemnifying bond or other
              requirements, to issue a duplicate thereof in lieu of that which was
              lost, to the Teachers’ Retirement System; and the Teachers’
              Retirement System shall save harmless any school district or
              agency of state government making payment under the provisions
              hereof to the State Teachers’ Retirement System if the original
              warrant, voucher or check is later presented for payment and same is
              paid after a duplicate warrant, voucher or check has been issued and
              paid to the Teachers’ Retirement System, and any loss sustained
              therefrom shall be charged to the Interest Fund.
      14. Rollover Contributions and Direct Trustee-to-Trustee Transfers from
      Other Plans.
              Any member may purchase credit for service, to the extent
          specified in this title, with rollovers from an eligible retirement plan
          as defined by the Internal Revenue Code of 1986, as amended from
          time to time. A member may also purchase permissive service credit,
          as defined by Code Section 415(n)(3)(A), with a direct trustee-to-
          trustee transfer from a governmental Code Section 403(b) plan or
          governmental Code Section 457(b) plan. All rollovers and direct
          trustee-to-trustee transfers shall be allowed to the extent permitted
          by federal law. Rollovers or direct transfers in excess of the amount
          necessary to purchase such service credit shall not be allowed.
      15. Retiree Medical Benefit Fund.
              The Retiree Medical Benefit Fund shall be maintained as a
          subaccount under the Retirement Benefit Fund. The Retiree Medical
          Benefit Fund is composed of all assets contributed to this subaccount
          to pay the retirement system’s portion of the monthly retiree health
          insurance benefits described in Section 1316.3 of Title 74 of the
          Oklahoma Statutes. All allocated assets and the earnings thereon in
          the Retiree Medical Benefit Fund shall be held for the exclusive
          purpose of providing retiree medical benefits pursuant to Section
          1316.3 of Title 74 of the Oklahoma Statutes. The Retiree Medical
          Benefit Fund shall be administered in accordance with the
          requirements under Section 401(h) of the Internal Revenue Code of
          1986, as amended from time to time. An amount necessary to pay
166
        the health insurance premiums for retired members as provided by
        Section 1316.3 of Title 74 of the Oklahoma Statutes shall be
        deposited each month into the Retiree Medical Benefit Fund.
70 O.S., § 17-108.1. Contributions of Employer of Members of
Teachers’ Retirement System
A. The employer of any member of the Teachers’ Retirement System of
Oklahoma shall make the following contributions to the System:
     1. Beginning July 1, 1998, through June 30, 1999, eleven and one-
     half percent (11 1/2%) of the regular annual compensation of the member
     not in excess of any applicable maximum compensation level of the
     member;
     2. Beginning July 1, 1999, through June 30, 2000, four and eight-
     tenths percent (4.8%) of the regular annual compensation of the member
     not in excess of any applicable maximum compensation level of the
     member;
     3. Beginning July 1, 2000, through June 30, 2001, five and eight-
     tenths percent (5.8%) of the regular annual compensation of the member
     not in excess of any applicable maximum compensation level of the
     member;
     4. Beginning July 1, 2001, through June 30, 2002, six and eight-tenths
     percent (6.8%) of the regular annual compensation of the member not in
     excess of any applicable maximum compensation level of the member; and
     5. Beginning July 1, 2002, through June 30, 2003, and for each fiscal
     year thereafter, seven and five-hundredths percent (7.05%) of the regular
     annual compensation of the member not in excess of any applicable
     maximum compensation level of the member.
     Any employer contribution paid to the System pursuant to this subsection
shall not be considered as salary, fringe benefit, or total compensation due
to members for the purpose of meeting any legislative or contractual
obligation of the employer.
B. For entities or institutions within The Oklahoma State System of Higher
Education, the contributions to the retirement system specified in subsection
A of this section shall be made on regular annual compensation of a member
who is an employee of such entity or institution not to exceed the maximum
compensation level in effect for the member as prescribed by law.
C. Employers paying contributions to the Retirement System pursuant to
subsection A or B of this section shall receive credit for that portion of the
gross production tax on natural gas and/or casinghead gas apportioned to
the Retirement System pursuant to subsection 2 of Section 1004 of Title 68
of the Oklahoma Statutes in meeting the total required employer contribution.

                                                                          167
On an annual basis, the Board of Trustees shall estimate the net additional
cost required to be paid by the contributing employers in order to meet the
total employer contribution as provided in subsection A or B of this section.
The Board of Trustees shall approve the amount of the additional contribution
required to be paid by contributing employers as a percentage of total member
salaries and fringe benefits for each fiscal year ending June 30, no later
than April 1 of the previous fiscal year. In no event shall the additional
contribution required to be paid by the contributing employer under this
subsection be less than the contribution required under this subsection in
the prior year. In the event actual contributions do not equal the required
total contribution as provided in subsection A or B of this section, the net
difference between the actual contributions and the required total
contributions shall be determined and shall be included in the amount of the
additional contribution required to be paid by contributing employers for
the next fiscal year. All contributing employers shall pay the same percentage
of total member salaries and fringe benefits during each fiscal year. The
provisions of this subsection shall terminate June 30, 1999.
D. Any school district, state college or university, State Board of Education,
State Board of Career and Technology Education, or other state agency
may, for and on behalf of any member of the Teachers’ Retirement System,
pay all or any portion of the contribution required by Section 17-108 of this
title. Provided, the contribution so paid by any school district, state college
or university, State Board of Education, State Board of Career and
Technology Education, or other state agency shall be and remain subject to
the withdrawal provisions set forth under the Teachers’ Retirement System.
Wherever the term “contribution” is used, it shall be deemed to include
contributions paid for and on behalf of a member by a school district, state
college or university, State Board of Education, State Board of Career and
Technology Education, or other state agency
70 O.S., § 17-108.2. Contributions Credit
A. Beginning July 1, 1998, and for each plan year thereafter, a teacher
employed by any school district or employed by a technology center school
district who qualifies for a minimum salary pursuant to the schedule
contained in Section 18-114.7 of this title, shall have credited against the
employee contribution amount, as applicable to the amount of compensation
required to be paid to the teacher as a minimum salary pursuant to Section
18-114.7 of this title, an annual amount based upon qualifying years of
service as follows:



168
             YEARS OF SERVICE               CREDIT AMOUNT
                         0                         $60.15
                         1                        $103.41
                         2                        $145.65
                         3                        $188.15
                         4                        $233.33
                         5                        $278.76
                         6                        $325.26
                         7                        $372.82
                         8                        $421.44
                         9                        $471.12
                        10                        $521.87
                        11                        $573.67
                        12                        $626.54
                        13                        $680.48
                        14                        $735.47
                        15                        $791.53
                        16                        $848.65
                        17                        $906.83
                        18                        $966.07
                        19                      $1,026.38
                        20                      $1,087.75
                        21                      $1,150.18
                        22                      $1,213.68
                        23                      $1,278.23
                        24                      $1,343.85
                    25 or more                    $1,410.53
B. The state shall pick up and pay the annual amount prescribed by
subsection A of this section, based upon the conditions prescribed by
subsection A of this section, to the Teachers’ Retirement System. The annual
amount prescribed by subsection A of this section shall be divided into
monthly amounts as may be required in order to give full effect to the credit
amount without the necessity of dividing the annual credit amount into twelve
(12) equal installments.
                                                                         169
C. If an eligible teacher terminates service prior to June 30 of any applicable
plan year, the amounts prescribed by subsection A of this section, and
transferred to the Teachers’ Retirement System from the State Board of
Education and the State Board of Career and Technology Education shall
be retained by the Teachers’ Retirement System of Oklahoma and treated as
an actuarial gain of the System.
D. If an employing school district has contractually committed to make
payment of the employee contributions required by Section 17-116.2 of this
title for a member who is eligible for the credit amount prescribed by
subsection A of this section for the fiscal year, using funds available to the
district and not by effecting the employee contribution through a deduction
from the member’s gross salary, the district shall pay additional compensation
to each of its eligible teachers in an amount equal to the amount prescribed
by subsection A of this section based upon the number of years of teaching
experience of the eligible member.
E. If an eligible member is hired by a school district or a technology center
school district and receives compensation for less than one hundred eighty
(180) days of service, the district shall determine a pro rata amount of the
annual credit amount and shall pay additional compensation to the member
equal to the pro rata amount for each month during which the member is
employed. The monthly credit amount for such member shall be added to
the member’s compensation beginning with the first full month during which
the member is employed by the district.
F. The amount required to be added to the compensation of the eligible
member pursuant to subsection D of this section shall be subject to any
applicable federal or state taxes upon the additional income.
G. The amount required to be added to the compensation of the eligible
member pursuant to subsection D of this section shall not be treated as
regular annual compensation for purposes of Section 17-116.2 of this title
or as salary or fringe benefits for purposes of determining the minimum
salary pursuant to the requirements of Section 18-114.7 of this title or for
purposes of meeting the requirements of any locally adopted salary schedule.
H. The employing district shall prepare its payroll records to reflect that
the total employee contribution amount, for the salary not in excess of the
applicable minimum salary amount, has been paid pursuant to a combination
of the payment from the funds of the employing district and the amount
credited to the employee contribution account of the member pursuant to
subsection A of this section.
I. If an employing school district has contractually committed to deduct
employee contributions required by Section 17-116.2 of this title by effecting
the employee contribution through a deduction from the member’s gross
170
salary, the district shall decrease the amount of the payroll deduction for
such employee contribution by the amount as prescribed in subsection A of
this section, based upon the number of years of teaching experience of the
member. The amount required to be subtracted from the amount by which
the employee’s gross salary would otherwise be reduced pursuant to this
subsection shall be subject to any applicable federal or state taxes. The
employing district shall prepare its payroll records to reflect that the total
employee contribution amount, for the salary not in excess of the applicable
minimum salary amount, has been paid pursuant to a combination of the
deduction from the member’s salary and the amount credited to the employee
contribution account of the member pursuant to subsection A of this section.
70 O.S., §17-109 Right to Annuity or Retirement Allowance -
Inapplicability to Qualified Domestic Order.
A. Except as otherwise provided by this section, the right of a person to an
annuity or a retirement allowance, to the return of contributions, annuity, or
retirement allowance itself, any optional benefit, or any other right accrued
or accruing to any person under the provisions of this act, and the monies in
the various funds created by this act, are hereby exempt from levy and sale,
garnishment, attachment or any other process whatsoever, and shall be
unassignable except as in this act specifically provided. Notwithstanding
the foregoing, the Board of Trustees may approve any offset of a member’s
benefit to pay a judgment or settlement against a member for a crime
involving the System, for a breach of member’s fiduciary duty to the System,
or for funds or monies incorrectly paid to a member or a beneficiary by
mistake, provided such offset is in accordance with the requirements of
Section 401(a)(13) of the Internal Revenue Code of 1986.
B. 1. The provisions of subsection A of this section shall not apply to a
qualified domestic order as provided pursuant to this subsection.
     2. The term “qualified domestic order” means an order issued by a district
court of this state pursuant to the domestic relation laws of the State of Oklahoma
which relates to the provision of marital property rights to a spouse or former
spouse of a member or provision of support for a minor child or children and
which creates or recognizes the existence of the right an alternate payee, or
assigns to an alternate payee the right to receive a portion of the benefits payable
with respect to a member of the Retirement System.
     3. For purposes fo the payment of marital property, to qualify as an
alternate payee, a spouse or former spouse must have been married to the
related member for a period of not less than thirty (30) continuous months
immediately preceding the commencement of the proceedings from which
the qualified domestic order issues.

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     4. A qualified domestic order is valid and binding on the Board of
Trustees and the related member only if it meets the requirements of this
subsection.
     5. A qualified domestic order shall clearly specify:
     a. the name and last-known mailing address (if any) of the member and
     the name and mailing address of the alternate payee covered by the order,
     b. the amount or percentage of the member’s benefits to be paid by
     the Retirement System to the alternate payee,
     c. the number of payments or period to which such order applies,
     d. the characterization of the benefit as to marital property rights or
     child support, and
     e. each plan to which such order applies.
6. A qualified domestic order meets the requirements of this subsection
only if such order:
     a. does not require the Retirement System to provide any type or form
     of benefit, or any option not otherwise provided under state law as
     relates to the Retirement System,
     b. does not require the Retirement System to provide increased benefits, and
     c. does not require the payment of benefits to an alternate payee which
     are required to be paid to another alternate payee pursuant to another
     order previously determined to be a qualified domestic order or an order
     recognized by the Retirement System as a valid order prior to the effective
     date of this act.
7. A qualified domestic order shall not require payment of benefits to an
alternate payee prior to the actual retirement date or withdrawl of the related
member.
8. The obligation of the Retirement System to pay an alternate payee
pursuant to a qualified domestic order shall cease upon the death of the
related member.
9. This subsection shall not be subject to the provisions of the Employee
Retirement Income Security Act of 1974 (ERISA), 29 U.S.C.A. Section
1001, et seq., as amended from time to time, or rules and regulations
promulgated thereunder, and court cases interpreting said act.
10. The Board of Trustees of the Teachers’ Retirement System of Oklahoma
shall promulgate such rules as are necessary to implement the provisions of
this subsection.
11. An alternate payee who has acquired beneficiary rights pursuant to a
valid qualified domestic order must fully comply with all provisions of the
rules promulgated by the Board of Trustees pursuant to this subsection in
order to continue receiving his or her benefit.

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70 O.S., § 17-109.1. Confidential Treatment of Member’s Retirement File.
    Except for the member’s name, age, amount of contributions paid in,
benefits being paid, amount of credited service and any documents verifying
credited service or benefits, all information, documents and copies thereof
contained in a member’s retirement file shall be given confidential treatment
and shall not be made public by the System without the prior written consent of
the member to which it pertains, but shall be subject to subpoena or court order.
70 O.S., § 17-110. Fraud - Errors in Record.
     Any person who shall knowingly make any false statement or shall
falsify or permit to be falsified, any record or records of this retirement
system in any attempt to defraud such system as a result of such act shall be
guilty of a felony, Should any charge or error in the records result in any
member or beneficiary receiving from the retirement system more or less
than he would have been entitled to receive had the records been correct, the
Board of Trustees shall correct such error, and so far as practicable, shall
adjust the payment in such a manner that the actuarial equivalent of the
benefit to which such member or beneficiary was correctly entitled shall be
paid, and to take from the Interest Fund sufficient to reimburse the Fund
where an overpayment had already been made, and any such overpayment
recovered from the member shall be placed in the Interest Fund.
70 O.S., § 17-111. Official Bonds.
     The Treasurer of the State of Oklahoma shall upon becoming custodian
of the Teachers’ Retirement Fund, give a bond in the sum of Fifty Thousand
Dollars ($50,000.00); the Executive Secretary shall give bond in the sum of
Twenty-five Thousand Dollars ($25,000.00); and the Board of Trustees
shall require any other employees and members of the Board of Trustees to
give bond in such amounts as the Board may deem necessary, conditioned
that said bonded persons will faithfully execute the duties of the respective
offices. All bonds shall be made with a good and solvent surety company,
authorized to do business in the State of Oklahoma; said bonds shall be
made payable to the Board of Trustees and shall be approved by it and the
Attorney General of Oklahoma. All expense necessary and incident to the
execution of such bonds, including premiums thereon, shall be paid by the
Board of Trustees from the Expense Fund.
70 O.S., § 17-112. Audit of Funds, Accounts and Assets.
     It shall be the duty of the State Auditor and Inspector to audit annually
the funds, accounts and assets of the Teachers’ Retirement System.



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70 O.S., § 17-113. Time Spent in Military Service - Limitations.
    In determining annual increments for teacher salaries and in computing
Foundation Aid, time spent in military service during a period of national
emergency shall be counted, not to exceed five (5) years prior to the current
year. No more than five (5) years of such military service shall be used in
determining eligibility or benefits under the Teachers’ Retirement System.
70 O.S., § 17-114. Full-Time Employees of System - Classification.
    All full-time employees of the Teachers’ Retirement System of Oklahoma
shall become classified employees of the Merit System of Personnel
Administration of Oklahoma.
70 O.S., § 17-114.1. Repealed by Laws 1981, c. 340, § 28, eff. July 1,
1981.
70 O.S., § 17-114.2. Unclassified Positions.
    The executive secretary, assistant executive secretary and secretary-
treasurer of the system shall be unclassified positions. Twenty-two (22)
full-time-equivalent employees of the system shall be unclassified
administrative assistants.
70 O.S., § 17-115. Repealed by Laws 1980, c. 68, § 1, emerg. eff.
April 10, 1980.
70 O.S., § 17-116. Certain Personnel Retiring Before August 2, 1969 -
Minimum Pension.
     Any member of the classified personnel eligible for retirement under
this act who has taught in Oklahoma schools for at least twenty (20) years
and who retires before August 2, 1969, shall be paid not less than One
Hundred and Twenty-five Dollars ($125.00) per month.
70 O.S., § 17-116.1. Retirement Benefit Increase.
A. Every annuitant receiving retirement benefits from the system as of
June 30, 1986, shall receive, on July 1, 1986, a six percent (6%) increase in
retirement benefits.
B. Any member who retires during the period beginning July 1, 1986,
through October 1, 1986, shall receive a six percent (6%) increase in their
monthly benefit as computed pursuant to the provisions of Sections 17-101
through 17-116 of this title and Section 17-116.2 of this title.




174
70 O.S., § 17-116.2. Retirement Allowance - Calculation - Contribution
Rates and Benefits
A. 1. Beginning July 1, 1987, and prior to July 1, 1995, a member who
retires on or after the member’s normal retirement age or whose retirement
is because of disability shall receive an annual allowance for life, payable
monthly, in an amount equal to two percent (2%) of the member’s highest
three-year average salary upon which member contributions were made,
multiplied by the number of the member’’s years of creditable service.
     A classified member who retired prior to July 1, 1986, shall have his
retirement allowance calculated on a minimum average salary of Eleven
Thousand Five Hundred Dollars ($11,500.00) or on his current minimum
average salary plus Two Thousand Dollars ($2,000.00), whichever is greater.
Beginning July 1, 1994, a classified member who retired prior to July 1, 1993,
shall have the member’s retirement allowance calculated on the member’s
current minimum average salary plus Five Hundred Fifty Dollars ($550.00).
An unclassified member who retired prior to July 1, 1986, shall have his
retirement allowance calculated on a minimum average salary of Nine
Thousand Five Hundred Dollars ($9,500.00) or on his current minimum
average salary plus One Thousand Dollars ($1,000.00), whichever is greater.
Beginning July 1, 1994, an unclassified member who retired prior to July 1,
1993, shall have the member’s retirement allowance calculated on the
member’s current minimum average salary plus Two Hundred Seventy-five
Dollars ($275.00). Those individuals receiving benefits pursuant to
subsection (3) of Section 17-105 of this title whose benefits commenced
prior to July 1, 1993, shall receive an increase in benefits of two and one-half
percent (2 1/2%). No retirement benefit payments shall be made retroactively.
     Except for those members retiring because of a disability, the retirement
allowance shall be subject to adjustment for those members retiring before
normal retirement age in accordance with the actuarial equivalent factors
adopted by the Board of Trustees.
     2. Beginning July 1, 1995, a member, who has no service performed
on or after July 1, 1995, for an entity or institution within The Oklahoma
State System of Higher Education, who retires on or after the member’’s
normal retirement age or whose retirement is because of disability shall
receive an annual allowance for life, payable monthly as follows:
     a. if the member becomes a member after June 30, 1995, and was not
     eligible to become a member prior to July 1, 1995, in an amount equal
     to two percent (2%) of the member’s average salary upon which member
     contributions were made, multiplied by the number of the member’s
     years of creditable service, or

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    b. if the member became a member or is eligible to become a member
    prior to July 1, 1995, and elected to have a maximum compensation
    level in excess of Twenty-five Thousand Dollars ($25,000.00) pursuant
    to paragraph 1 of subsection C of this section or pursuant to subsection
    E of this section, or if the member’’s salary has never exceeded
    Twenty-five Thousand Dollars ($25,000.00) prior to July 1, 1995, in
    an amount equal to:
         (1) two percent (2%) of the member’s average salary upon which
         member contributions were made not to exceed Forty Thousand Dollars
         ($40,000.00), multiplied by the number of the member’’s years of
         credited service authorized and performed prior to July 1, 1995, plus
         any years of prior service authorized under this title, plus
         (2) two percent (2%) of the member’s average salary upon which
         member contributions were made, multiplied by the number of the
         member’s years of credited service authorized and performed after
         June 30, 1995, or
    c. if the member became a member or is eligible to become a member
    prior to July 1, 1995, and was eligible to elect to have a maximum
    compensation level in excess of Twenty-five Thousand Dollars
    ($25,000.00) and did not elect or elected not to have a maximum
    compensation level of Forty Thousand Dollars ($40,000.00) pursuant
    to paragraph 1 of subsection C of this section or pursuant to subsection
    E of this section, in an amount equal to:
         (1) two percent (2%) of the member’s average salary upon which
         member contributions were made not to exceed Twenty-five
         Thousand Dollars ($25,000.00), multiplied by the number of the
         member’s years of credited service authorized and performed prior
         to July 1, 1995, plus any years of prior service authorized under
         this title, plus
         (2) two percent (2%) of the member’s average salary upon which
         member contributions were made, multiplied by the number of the
         member’s years of credited service authorized and performed after
         June 30, 1995.
B. Except as otherwise provided for in this section, the amount contributed
by each member to the retirement system shall be:
    1. Beginning July 1, 1992, through June 30, 1996, six percent (6%) of the
    regular annual compensation of such member not in excess of Twenty-five
    Thousand Dollars ($25,000.00) and beginning July 1, 1995, through June
    30, 1996, six percent (6%) of the maximum compensation level; and
    2. Beginning July 1, 1996, through June 30, 1997, six and one-half
    percent (6 1/2%) of the regular annual compensation of members, who
176
     are not employed by an entity or institution within The Oklahoma State
     System of Higher Education not in excess of Twenty-five Thousand
     Dollars ($25,000.00) and beginning July 1, 1996, through June 30,
     1997, six and one-half percent (6 1/2%) of the regular annual
     compensation of members, who are employed by an entity or institution
     within The Oklahoma State System of Higher Education, not in excess
     of Twenty-five Thousand Dollars ($25,000.00);
     3. Beginning July 1, 1997, seven percent (7%) of the regular annual
     compensation of the member not in excess of any applicable maximum
     compensation level of the member; and
     4. All public schools in this state shall treat the employee contributions
     as being picked-up under the provisions of Section 414 (h) (2) of the
     Internal Revenue Code of 1986 in determining tax treatment.
C. 1. Prior to July 1, 1995, an active member of the System may elect to
have a maximum compensation level of Forty Thousand Dollars
($40,000.00). Such an election shall be made in writing and filed with the
System. Members whose salaries are in excess of Twenty-five Thousand
Dollars ($25,000.00) on the effective date of this act shall file the election
with the System prior to January 1, 1988. Members whose salaries exceed
Twenty-five Thousand Dollars ($25,000.00) after the effective date of this
act shall file the election when the salary exceeds Twenty-five Thousand
Dollars ($25,000.00). If a member makes such an election, the member
shall contribute the following amounts:
     a. beginning July 1, 1992, through June 30, 1993, eleven percent (11%)
     of the regular annual compensation of such member that is in excess of
     Twenty-five Thousand Dollars ($25,000.00) and is not in excess of
     Forty Thousand Dollars ($40,000.00),
     b. beginning July 1, 1993, through June 30, 1994, nine percent (9%)
     of the regular annual compensation of such member that is in excess of
     Twenty-five Thousand Dollars ($25,000.00) and is not in excess of
     Forty Thousand Dollars ($40,000.00), and
     c. beginning July 1, 1994, through June 30, 1995, eight percent (8%)
     of the regular annual compensation of such member that is in excess of
     Twenty-five Thousand Dollars ($25,000.00) and is not in excess of
     Forty Thousand Dollars ($40,000.00). Except as provided in subsection
     E of this section, any such election shall be irrevocable.
     2. After June 30, 1995, in addition to the amount contributed by each
member to the retirement system pursuant to subsection B of this section,
the total amount contributed by each member to the retirement system shall
include, beginning July 1, 1995, through June 30, 1997, seven percent (7%)
of the regular annual compensation of each member, who is not employed
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by an entity or institution within The Oklahoma State System of Higher
Education, that is in excess of Twenty-five Thousand Dollars ($25,000.00)
and beginning July 1, 1996, through June 30, 1997, seven percent (7%) of
the regular annual compensation of each member who is employed by an
entity or institution within The Oklahoma State System of Higher Education
in excess of Twenty-five Thousand Dollars ($25,000.00), but not in excess
of any applicable maximum compensation level of the member.
D. For purposes of Section 17-101 et seq. of this title, regular annual
compensation shall include:
     1. Salary which accrues on a regular basis in proportion to the service
     performed, including payments for staff development;
     2. Amounts that would otherwise qualify as salary under paragraph 1
     of this subsection but are not received directly by the member pursuant
     to a good faith, voluntary written salary reduction agreement in order
     to finance payments to a deferred compensation or tax-sheltered annuity
     program or to finance benefit options under a cafeteria plan qualifying
     under the United States Internal Revenue Code, 26 U.S.C., Section 101
     et seq.; and
     3. Group health and disability insurance, group term life insurance,
     annuities and pension plans, provided on a periodic basis to all qualified
     employees of the employer, which qualify as fringe benefits under the
     United States Internal Revenue Code.
     4. Excluded from regular annual compensation are expense
     reimbursement payments, office, vehicle, housing or other maintenance
     allowances, the flexible benefit allowance provided pursuant to Section
     26-105 of this title, payment for unused vacation and sick leave, any
     payment made for reason of termination or retirement not specifically
     provided for in paragraphs 1 through 3 of this subsection, maintenance
     or other nonmonetary compensation, payment received as an independent
     contractor or consultant, pursuant to a lawful contract which complies
     with the requirements of subsection B of Section 6-101.2 of this title,
     any benefit payments not made pursuant to a valid employment
     agreement, or any compensation not described in paragraphs 1 through
     3 of this subsection.
E. 1 Any member who was a contributing member of the Retirement
System between July 1, 1987, and June 30, 1995, who at the time the member
was eligible to make an election to increase the maximum compensation
level of the member, failed to make an election or chose not to increase the
maximum compensation level of the member to Forty Thousand Dollars
($40,000.00), may elect to make back contributions to the Retirement
System. The member shall complete a new election form and file with the
178
Board of Trustees, the form and a payment equaling the difference between
the amount contributed at the twenty-five-thousand-dollar level and the
appropriate contribution on compensation in excess of Twenty-five Thousand
Dollars ($25,000.00) up to a maximum of Forty Thousand Dollars
($40,000.00) shall be made prior to the official retirement date of the member.
The required payment shall include any contribution required by the
employing school district, and shall include interest compounded annually
at ten percent (10%) per annum of both employer and employee contributions.
     2. Any changes made pursuant to this subsection shall be irrevocable.
F. 1 An individual who withdrew from the Teachers’ Retirement System
and whose salary was in excess of Seven Thousand Eight Hundred Dollars
($7,800.00) and had elected to contribute only on Seven Thousand Eight
Hundred Dollars ($7,800.00) before his or her withdrawal shall contribute
on the earning ceiling as provided for in this section on his or her reentry
into membership in the Teachers’ Retirement System.
     2. An individual who elected to contribute on a maximum of Seven
Thousand Eight Hundred Dollars ($7,800.00) per annum shall, beginning
July 1, 1979, contribute on his or her earning ceiling as provided for in this
section.
     3. Any member who elected to contribute on Seven Thousand Eight
Hundred Dollars ($7,800.00) prior to January 1, 1978, and whose salary
was more than Seven Thousand Eight Hundred Dollars ($7,800.00) during
the school years 1974-75 through 1978-79 may elect to make back
contributions to the retirement system by paying the five percent (5%)
contributions on the difference between Seven Thousand Eight Hundred
Dollars ($7,800.00) and the actual salary of the member, not to exceed Ten
Thousand Dollars ($10,000.00) for each applicable school year, plus interest
compounded annually at ten percent (10%) per annum. Such payment shall
be made prior to the official retirement date of the member.
G. Each employer shall cause to be deducted from the salary of each member
on each and every payroll of such employer for each and every payroll
period, the proper percentage of his or her earnable compensation as provided
for in subsection B or subsection C of this section.
     1. Deductions shall begin with the first payroll period of the school
     year. In determining the amount earnable by a member in a payroll
     period, the Board of Trustees shall consider the rate of annual
     compensation payable to such member on the first day of the payroll
     period as continuing throughout such payroll period, and it may omit
     deductions from compensation for any period less than a full period,
     and to facilitate the making of deductions, it may modify the deduction
     required of any member by such an amount as shall not exceed one-tenth
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      of one percent (1/10 of 1%) of the annual compensation upon the basis
      of which such deduction is to be made. Prior to January 1, 1991, any
      active contributing member who joined the System subsequent to
      July 1, 1943, may pay the normal cost, which shall mean the single
      sum which would have been paid under existing statutes at the time the
      service was performed, plus interest, for years of teaching service in
      Oklahoma from the date of establishment of the System in 1943 to date
      of membership, in a lump sum, or in installments equal to establishing
      one (1) year of creditable service. Effective January 1, 1991, any active
      contributing member who joined the System subsequent to July 1, 1943,
      may pay the amount determined by the Board of Trustees pursuant to
      Section 17-116.8 of this title for years of teaching service in Oklahoma
      from the date of establishment of the System in 1943 to date of
      membership, in a lump sum, or in installments equal to establishing one
      (1) year of creditable service. For purposes of this option, teaching
      service in Oklahoma shall include the teaching of vocational agricultural
      courses within Oklahoma for the federal government. Years for which
      contributions are paid shall count as membership service under this
      plan. A member may receive credit for not more than five (5) years of
      teaching service rendered while in the Peace Corps or in the public
      schools of a territory of the United States or the public schools, American
      Military Dependent Schools or state colleges or state universities outside
      this state by paying his or her contributions, plus interest, and
      membership fees to the retirement system, subject to the regulations of
      the Board of Trustees, providing he or she is not receiving and is not
      eligible to receive retirement credit or benefits from said service in any
      other public retirement system of this state, or any other state or territory
      of the United States subject to the following provisions:
           a. the member is required to have two (2) years of employed service
           teaching earned in Oklahoma for each year of Peace Corps,
           territorial, out-of-state, noncovered in-state or military membership
           credit granted.
           b. prior to January 1, 1991, the out-of-state or noncovered in-
           state payment shall be the normal cost, which means the single sum
           which would have been paid under existing law at the time the
           service was performed, plus interest, on the basis of what his or her
           annual salary would have been in Oklahoma or out of state,
           whichever is greater, had he or she been employed as a teacher.
           Effective January 1, 1991, the Peace Corps, territorial, out-of-state
           or noncovered in-state payment shall be the amount determined by
           the Board of Trustees pursuant to Section 17-116.8 of this title.
180
     2. In addition to the deductions hereinabove provided for, any member
who becomes a member of the Armed Forces of the United States of America
during any period of national emergency, including World War II, the Korean
conflict, the Vietnam conflict or others as may be determined by the Board
of Trustees, or whose entrance into or training for the teaching profession
was interrupted by his or her entrance into the Armed Forces, and who was
or shall have become a member of the Teachers’ Retirement System shall be
granted the privilege of making up his or her five percent (5%) contributions
as provided for in this section until January 1, 1991, for not to exceed five
(5) years of service in the Armed Forces by electing to pay said contributions
on the basis of the rate of pay in his or her contract as a teacher at the time
his or her service in the Armed Forces commenced or in the case of a teacher
who was not teaching prior to entering the Armed Forces, on the basis of the
salary of the first year of teaching after being honorably discharged from
the Armed Forces. Effective January 1, 1991, the member will receive such
service upon payment of the amount determined by the Board of Trustees
pursuant to Section 17-116.8 of this title. Such contributions shall be credited
in the regular manner, and the period for which said contributions were paid
shall be counted as creditable years of service and allocated to the period
during which the military service was rendered, except that the period for
which contributions were paid must have been continuous and shall be
credited in the aggregate, regardless of fiscal year limitations.
Notwithstanding any provision herein to the contrary, contributions, benefits
and service credit with respect to qualified military service as defined by Section
414(u) of the Internal Revenue Code of 1986, shall be provided in accordance
with Section 414(u) of the Internal Revenue Code.
     3. Retirement benefits for all service credits purchased pursuant to
this subsection shall be determined in accordance with the provisions of
paragraph 2 of this subsection.
H. Effective July 1, 2004, the total creditable service of a member who
retires or terminates employment and elects a vested benefit shall include
not to exceed one hundred twenty (120) days of unused sick leave
accumulated subsequent to August 1, 1959. Twenty (20) days of unused
sick leave shall equal one (1) month for purposes of creditable service credit.
If the member becomes a member or was eligible to become a member prior
to July 1, 1995, the year of credit received in this section shall be treated as
service earned prior to July 1, 1995. This subsection shall apply to members
retiring or vesting on or after the effective date of this act and shall not be
retroactive.



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I.    Any member who:
      1 Shall be absent from the teaching service because of election to the
      State Legislature or appointment to the executive branch in an education-
      related capacity shall be allowed thirty (30) days from the date as of
      which the person is officially elected or appointed to file an election
      with the Teachers’ Retirement System to retain his or her membership
      in the Teachers’ Retirement System upon payment of the contribution
      required of other members and employers of said members as provided
      for in this section and his or her service credits shall continue to be
      accumulated during such absence, provided he or she is not receiving
      retirement credits or benefits from said service beginning after July 1,
      1992, in other public retirement systems; or
      2. Became an employee of the Oklahoma Commission for Teacher
      Preparation on or subsequent to June 1, 2001, but prior to July 1, 2002,
      who was previously employed by a participating employer within the
      Teachers’ Retirement System of Oklahoma, may elect to cancel any
      accumulated service credit accrued within the Oklahoma Public
      Employees Retirement System on or after June 1, 2001, but prior to
      July 1, 2002, by filing an election with the Oklahoma Public Employees
      Retirement System for the cancellation of such service credit. The
      election shall be irrevocable and shall require the Oklahoma Public
      Employees Retirement System to transfer all accumulated employer
      and employee contributions made on behalf of or by the person making
      such election to the Teachers’ Retirement System for such period of
      time. The Teachers’ Retirement System shall compute the employee
      contributions that would have been made to the System by such employee
      if the contributions had been computed pursuant to this section. In order
      to receive the full amount of creditable service for the period of time on
      or after June 1, 2001, but not later than June 30, 2002, the employee
      shall be required to pay any difference between the transferred employee
      contributions and the amount computed by the Teachers’’ Retirement
      System. The employee may make payment of any required amount in
      the manner provided by and subject to the requirements of Section
      17-116.8 of this title. After payment of all required employee
      contributions, the Teachers’ Retirement System shall credit the period
      of time represented by the transferred employee contributions as
      creditable service within the meaning of Section 17-101 of this title.
      After the transfer of the employee contributions, the Oklahoma Public
      Employees Retirement System shall cancel any service credit previously
      accumulated for the period of time represented by such transferred
      employee contributions. Any person who makes the election provided
182
     for by this paragraph, and who continues employment with the Oklahoma
     Commission for Teacher Preparation on or after July 1, 2002, shall
     continue to accrue service credit in the Teachers’’ Retirement System of
     Oklahoma. The employer shall make employer contributions according
     to the requirements of Section 17-108.1 of this title and shall provide
     for the deduction of employee contributions as required by this section.
J. Any member who shall be absent from the teaching service because of
election or appointment as a local, state or national education association
officer shall be allowed to retain his or her membership in the Teachers’
Retirement System upon payment of the contribution required of other
members and employers of said members as provided for in this section and
his or her service credits shall continue to be accumulated during such
absence. Provided, however, any one such absence shall not exceed eight
(8) continuous years. No member who has less than ten (10) years of
contributory service on July 1, 1994, may make this election after June 30,
1994. Members contributing to the System on July 1, 1994, may continue
to contribute under this subsection until they have completed eight (8) years
allowed by this subsection. The member may file for retirement when
otherwise eligible for retirement as provided by Section 17-105 of this title.
Conditioned upon receiving a favorable determination letter or private letter
ruling from the Internal Revenue Service, the eligible absence and
participation continuation in the Teachers’ Retirement System of Oklahoma
pursuant to this subsection shall be increased to twelve (12) years. The
Teachers’ Retirement System of Oklahoma shall make any necessary efforts
in obtaining an Internal Revenue Service determination letter or private
letter ruling concerning such increase.
K. A member may receive credit for those years of service accumulated by
the member while employed by an entity which is a participating employer
in the Oklahoma Firefighters Pension and Retirement System, the Oklahoma
Police Pension and Retirement System, the Uniform Retirement System for
Justices and Judges, the Oklahoma Law Enforcement Retirement System,
or the Oklahoma Public Employees Retirement System, if the member is
not receiving or eligible to receive retirement credit or benefits from said
service in any other public retirement system. A member also may receive
credit for those years of service with the Department of Wildlife Conservation
or with an employer that is a participating employer within one of the state
retirement systems specifically referred to in this section when at the time of
such service by the member the employer was not such a participating
employer, if the member is not receiving or eligible to receive retirement
credit or benefits from said service in any other public retirement system.
To receive the service credit provided in this subsection, the member shall
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pay the amount determined by the Board of Trustees pursuant to Section
17-116.8 of this title. For purposes of this subsection, creditable service
transferred from the Oklahoma Public Employees Retirement System shall
include service authorized under paragraph (f) of subsection (2) of Section
913 of Title 74 of the Oklahoma Statutes as amended from time to time.
Members who retire prior to July 1, 1993, shall have their monthly benefit
adjusted to include all services accrued under paragraph (f) of subsection
(2) of Section 913 of Title 74 of the Oklahoma Statutes. Provided however,
any adjustment of existing retirement benefits caused by reason of inclusion
of such service authorized under paragraph (f) of subsection (2) of Section
913 of Title 74 of the Oklahoma Statutes shall not affect any retirement
benefit paid prior to July 1, 1993.
L. 1. An active member of the Teachers’ Retirement System of Oklahoma
may receive credit for those years of service accumulated by the member
while a member of the Oklahoma Public Employees Retirement System if:
     a. the member is an active member of the Teachers’ Retirement System
     of Oklahoma, and
     b. the member provides notice to the Oklahoma Public Employees
     Retirement System and the Teachers’ Retirement System of Oklahoma
     of the member’s election to transfer said service credit. The notice shall
     include a list of the years to be transferred, and
     c. the member is not receiving or eligible to receive retirement credit
     or benefits from said service in any other public retirement system,
     notwithstanding the years of service sought to be transferred under this
     subsection.
     Members electing to take advantage of the transfer authorized by this
subsection who are receiving or eligible to receive retirement credit or benefits
from said service in any other public retirement system shall have all service
credit with the Oklahoma Public Employees Retirement System canceled
which is not transferred to the Teachers’ Retirement System of Oklahoma
or used as a cash offset in such a transfer pursuant to subparagraph d of
paragraph 2 of this subsection. Service credit transferred to the Teachers’
Retirement System of Oklahoma under this subsection shall also be canceled
with the Oklahoma Public Employees Retirement System.
     2. For purposes of this subsection, the “sending system” shall mean
the Oklahoma Public Employees Retirement System. The “receiving system”
shall mean the Teachers’ Retirement System of Oklahoma.
     a. Within thirty (30) days notification of an intent to transfer is received
     by the sending system, the sending system shall, according to its own
     rules and regulations:

184
    (1) for members who have accrued at least eight (8) years of credited
    service with the sending system, determine the present value of the
    member’s earned benefits attributable to the years of service sought
    to be transferred, discounted according to the member’s age at the
    time of transfer and computed as of the earliest age at which the
    member would be able to retire. Said computation shall assume an
    unreduced benefit and be computed using interest and mortality
    assumptions consistent with the actuarial assumptions adopted by
    the Board of Trustees for purposes of preparing the annual actuarial
    evaluation, but shall not make any projections regarding future
    salary. For employees who have accrued at least eight (8) years of
    credited service, the sending system shall use the product of this
    calculation for purposes of determining the transfer fee to be paid
    by the employee under subparagraph c of this paragraph so long as
    it is greater than the product of the calculation in division (2) of this
    subparagraph, and
    (2) determine the sum of the employee and employer contributions
    applicable to the years of service sought to be transferred plus
    interest consistent with the actuarial assumptions adopted by the
    Board of Trustees for purposes of preparing the annual actuarial
    evaluation. For all non-vested members, and for members who have
    accrued at least eight (8) years of credited service, if the product of
    this calculation is greater than the product of the calculation in
    division (1) of this subparagraph, the sending system shall use the
    product of this calculation for purposes of determining the amount
    to be transferred by the sending system under subparagraph c of
    this paragraph and any transfer fee to be paid by the member under
    subparagraph d of this paragraph.
b. Within thirty (30) days notification of an intent to transfer is received
by the receiving system, the receiving system shall determine, according
to the system’s own rules and regulations, the present value of the
member’’s incremental projected benefits discounted according to the
member’’s age at the time of the transfer. Incremental projected benefits
shall be the difference between the projected benefit said member would
receive without transferring the service credit and the projected benefit
after transfer of service credit computed as of the earliest age at which
the member would be able to retire. Said computation shall assume an
unreduced benefit and be computed using interest, salary projections
and mortality assumptions consistent with the actuarial assumptions
adopted by the Board of Trustees for purposes of preparing the annual
actuarial evaluation.
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    c. The sending system shall, within sixty (60) days from the date
    notification of an intent to transfer is received by the sending system,
    transfer to the receiving system the amount determined in subparagraph
    a of this paragraph. Except if the cost as calculated under subparagraph
    a of this paragraph is greater than the actuarial value of the incremental
    benefit in the receiving system, as established in subparagraph b of this
    paragraph, the sending system shall send the receiving system an amount
    equal to the actuarial value of the incremental projected benefit in the
    receiving system.
    d. In order to receive the credit provided for in paragraph 1 of this
    subsection, if the cost of the actuarial value of the incremental benefit
    to the receiving system is greater than the cost as calculated under
    subparagraph a of this paragraph for the same years of service to the
    sending system as established in subparagraphs a and b of this paragraph,
    the employee shall elect to:
         (1) pay any difference to receive full credit for the years sought to
         be transferred, or
         (2) receive prorated service credit for only the amount received
         from the Oklahoma Public Employees Retirement System pursuant
         to this subsection.
         Such an election shall be made in writing, filed with the System
         prior to receiving the credit provided for in paragraph 1 of this
         subsection, and shall be irrevocable.
    3. Within sixty (60) days of successfully completing all of the
requirements for transfer under this subsection, the sending system shall
pay the receiving system any amount due under this subsection. Within
sixty (60) days of successfully completing all of the requirements for transfer
under this subsection, the member shall pay the receiving system any amount
due under this subsection. In the event that the member is unable to pay the
transfer fee provided for in this subsection by the due date, the Board of
Trustees of the receiving system shall permit the member to amortize the
transfer fee over a period not to exceed sixty (60) months. Said payments
shall be made by payroll deductions unless the Board of Trustees permits
an alternate payment source. The amortization shall include interest in an
amount not to exceed the actuarially assumed interest rate adopted by the
Board of Trustees for investment earnings each year. Any member who
ceases to make payment, terminates, retires or dies before completing the
payments provided for in this section shall receive prorated service credit
for only those payments made, unless the unpaid balance is paid by said
member, his or her estate or successor in interest within six (6) months after
said member’s death, termination of employment or retirement, provided no
186
retirement benefits shall be payable until the unpaid balance is paid, unless
said member or beneficiary affirmatively waives the additional six-month
period in which to pay the unpaid balance.
     4. Years of service transferred pursuant to this subsection shall be
used both in determining the member’s retirement benefit and in determining
the years of service for retirement and/or vesting purposes. Years of service
rendered as a member of the Oklahoma Public Employees Retirement System
prior to July 1, 1992, if any, shall be deemed to be years of service rendered
as a member of the Teachers’ Retirement System of Oklahoma prior to
July 1, 1992, and shall qualify such person as a member of the Teachers’
Retirement System of Oklahoma before July 1, 1992.
     5. Notwithstanding the requirements of subsection (5) of Section 917
of Title 74 of the Oklahoma Statutes, members electing to take advantage
of the transfer authorized by this subsection who have withdrawn their
contributions from the sending system shall remit to the sending system the
amount of the accumulated contributions the member has withdrawn plus
simple interest of ten percent (10%) per annum prior to making said election
or the election shall be deemed invalid and the transfer shall be canceled. If
such an election is deemed invalid and the transfer is canceled, the
accumulated contribution remitted to the sending system by the member
who originally withdrew their contributions shall be returned to the member.
The member’’s rights and obligations regarding any service credit
reestablished in the sending system due to a failure to satisfy the requirements
of this subsection shall be determined by the sending system in accordance
with Section 901 et seq. of Title 74 of the Oklahoma Statutes.
     6. If any member fails for any reason to satisfy the requirements of
this subsection, the election to transfer service credit shall be void and of no
effect, and any service credited as a result of this transfer shall be canceled.
If such service is canceled, the years of canceled service credit which were
unsuccessfully transferred to the receiving system from the sending system
shall be reestablished in the sending system. The member’’s rights and
obligations regarding any service credit reestablished in the sending system
due to a failure to satisfy the requirements of this subsection shall be
determined by the sending system in accordance with Section 901 et seq. of
Title 74 of the Oklahoma Statutes.
     7. The Board of Trustees shall promulgate such rules as are necessary
to implement the provisions of this subsection.
M. Any member whose regular annual compensation was not determined
as provided for by law may pay the member contribution required pursuant
to subsection B of this section on such amount not included in the member’’s
regular annual compensation and receive credit for such amount in the
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calculation of the member’s benefit. The employees must pay the employer
contributions required pursuant to Section 17-108.1 of this title. Interest at
the rate of ten percent (10%) per annum shall be charged to both employee
and employer contributions. Provided that the employing district may pay
all or any portion of the contributions and interest the member is required to
pay. Any payment by the employing district for a prior year obligation shall
be considered a current obligation of the employer.
N. Any active member who elected during the 1978-79 school year to pay
the difference between five percent (5%) on actual salary not exceeding Ten
Thousand Dollars ($10,000.00) and six percent (6%) on actual salary not
exceeding Fifteen Thousand Dollars ($15,000.00) shall receive credit for
one (1) year of credited service upon receipt and approval of a proper request
by the Board of Trustees.
O. Effective July 1, 1988, any member who is employed by the Governor,
the State Senate, the House of Representatives or the Legislative Service
Bureau shall be allowed to elect to retain membership in the Retirement
System upon payment of the accrued and current member contributions and
employer contributions as provided in subsection B of this section and
Section 17-108.1 of this title. Such contributions may be paid on behalf of
the member by the employing entity. Upon payment of such contributions,
service credits shall continue to be accumulated during such employment.
Accrued contributions shall be paid to the Retirement System by
August 1, 1989. Current contributions shall be paid to the Retirement System
by the tenth of the following month beginning with the month of July 1989.
P. Notwithstanding any requirements of this title to restrict the payment of
service purchases, the Board of Trustees shall promulgate such rules as
necessary to allow active members of the System to make installment
payments for the redeposit of withdrawn accounts or other payments due
under the provisions of this title. The rules shall permit the member to
amortize the balance due over a period not to exceed sixty (60) months, and
shall include interest consistent with the actuarial assumptions adopted by
the Board of Trustees for purposes of preparing the annual actuarial
evaluation. Further, the rules shall provide that all payments must be
completed prior to the effective retirement date of the member.
Q. 1. A member of the Oklahoma Public Employees Retirement System
who becomes a member of the Teachers’ Retirement System of Oklahoma
because the member has become employed by an entity or institution within
The Oklahoma State System of Higher Education, State Board of Education,
State Board of Career and Technology Education, Oklahoma Department
of Career and Technology Education, Oklahoma School of Science and
Mathematics, Oklahoma Center for the Advancement of Science and
188
Technology, State Department of Rehabilitation Services, Oklahoma State
Regents for Higher Education, Department of Corrections, State Department
of Education, Oklahoma Board of Private Vocational Schools, Board of
Regents of Oklahoma Colleges, Oklahoma Student Loan Authority, or the
Teachers’ Retirement System of Oklahoma, may elect to receive credit in
the Teachers’ Retirement System of Oklahoma for those years of service
accumulated by the member in the Oklahoma Public Employees Retirement
System pursuant to this subsection. A member shall be eligible to elect to
receive credit for such years of service if:
     a. the member is an active member of the Teachers’ Retirement System
     of Oklahoma,
     b. the member provides notice to the Teachers’ Retirement System of
     Oklahoma and the Oklahoma Public Employees Retirement System of
     the member’s election to transfer such retirement credit. The notice shall
     include a list of the years to be transferred, and
     c. the member is not receiving or eligible to receive retirement credit
     or benefits from such service in any other public retirement system,
     notwithstanding the years of service sought to be transferred under this
     subsection.
     Members electing to take advantage of the transfer authorized by this
subsection shall have all service credit with the Oklahoma Public Employees
Retirement System canceled which is transferred to the Teachers’’ Retirement
System of Oklahoma.
     2. For purposes of this subsection, the “sending system” shall mean
the Oklahoma Public Employees Retirement System. The “receiving system”
shall mean the Teachers’ Retirement System of Oklahoma. Within thirty
(30) days after notification of an intent to transfer is received by the sending
system, the sending system shall, according to its own rules, send to the
receiving system all employer and employee contributions made on behalf
of the member which were made to the sending system plus an additional
amount of earnings based on the actuarial assumed rate of the sending system.
Upon receipt of these contributions by the receiving system, the receiving
system shall give credit to the transferring member in an amount equal to
the years of service accrued in the sending system.
     3. If the transferring member’’s normal retirement date calculation is
based upon the sum of the member’’s age and number of years of credited
service totaling eighty (80) in the sending system, then the member shall
retain such calculation in the receiving system.
     4. The Board of Trustees shall promulgate such rules as are necessary
to implement the provisions of this subsection.

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R. A former member of the Teachers’ Retirement System of Oklahoma
who withdrew his or her contributions from the System prior to January 1,
1983, and who had at least ten (10) years of service in the System and
purchased that service in the Oklahoma Public Employees Retirement
System, may elect to revoke that purchase from the Oklahoma Public
Employees Retirement System and to repay the withdrawn contributions to
the System in order to be eligible, once such member reaches the normal
retirement age, to receive a retirement benefit that is based upon years of
service and compensation at the time such member terminated employment.
In addition, such former member may elect to transfer service credit accrued
in the Oklahoma Public Employees Retirement System to the Teachers’
Retirement System of Oklahoma pursuant to subsection L of this section.
The election, pursuant to this subsection, shall be made prior to
September 1, 2000. The election and the repayment shall be made according
to rules promulgated by the Board.
70 O.S., § 17-116.2A. Active Contributing Member of Retirement
System—Elections to Impose and Remove Maximum Compensation Level.
A. Except as otherwise provided by this section, an active contributing
member of the retirement system who performed membership service as an
employee of a comprehensive university on or after July 1, 1995, but not
later than June 30, 1996, may with respect to membership service performed
between those dates, inclusive, elect to:
     1. Retroactively impose a maximum compensation level of Thirty-two
     Thousand Five Hundred Dollars ($32,500.00), if the member was subject
     to a maximum compensation level of Twenty-seven Thousand Five
     Hundred Dollars ($27,500.00) for service performed on or after
     July 1, 1995, but not later than June 30, 1996; or
     2. Retroactively impose a maximum compensation level of Forty-nine
     Thousand Dollars ($49,000.00), if the member was subject to a
     maximum compensation level of Forty-four Thousand Dollars
     ($44,000.00) for service performed on or after July 1, 1995, but not
     later than June 30, 1996.
B. Except as otherwise provided by this section, an active contributing
member of the retirement system who performed membership service as an
employee of an entity or institution within The Oklahoma State System of
Higher Education, other than a comprehensive university, on or after
July 1, 1995, but not later than June 30, 1996, may with respect to
membership service performed between those dates, inclusive, elect to
retroactively remove the maximum compensation level applicable to the
member’s compensation for any service performed during that time period.

190
C. A member electing a maximum compensation level or removing a
maximum compensation level pursuant to subsection A or subsection B of
this section shall be required to pay to the retirement system the full amount
of employer contributions and employee contributions applicable for the
period of service based upon the elections authorized by this section, less
the amount of employer contributions and employee contributions made or
credited for that period, plus ten percent (10%) interest from the date such
contributions would have been made until the payment is made to the
retirement system. The interest charged pursuant to this subsection shall be
compounded annually. A member may pay the amount prescribed by this
subsection at any time prior to the date as of which the member files the
written application for retirement with the retirement system. An entity or
institution within The Oklahoma State System of Higher Education may
make payment to the retirement system for any part or all of the amount
required by this subsection for an employee of that entity or institution in
order for retirement benefits to be computed at the applicable maximum
compensation level for membership service performed on or after
July 1, 1995, but not later than June 30, 1996. Any amount paid by an
employer pursuant to this subsection shall be deemed to be picked up by the
employer pursuant to Section 414(h) of the Internal Revenue Code of 1986,
as amended.
D. If a member who elects a retroactive maximum compensation level or
who elects to retroactively remove a maximum compensation level pursuant
to subsection A or subsection B of this section fails to pay the amount
required to receive credit for compensation earned on or after July 1, 1995,
but not later than June 30, 1996, the member shall receive retirement benefits
for this period of service based upon compensation upon which both the
required employer and employee contributions were actually made.
E. For purposes of computing the retirement allowance of a member
authorized to make the election authorized by subsection A or subsection B
of this section, no member electing a retroactive maximum compensation
level or retroactively removing a maximum compensation level pursuant to
subsection A or subsection B of this section may receive retirement benefits
for the period of service based upon compensation in excess of the amount
of compensation upon which employer and employee contributions were
actually paid unless full payment to the retirement system is made as required
by subsection C of this section.
F. These rules and regulations are proposed to comply with the statutory
responsibility of the Board of Trustees in establishing rules and regulations
for the administration of the System and the transaction of its business (70
O.S. Section 17-101 et seq., especially 70 O.S. Section 17-106). These
                                                                          191
rules are necessary to provide a more efficient administration of the System
and ensure that the rules for the Oklahoma Teachers’ Retirement System
continue to best serve the System’s members.No provision contained in this
section shall be considered or construed to require payment of any sum by
an entity or institution within The Oklahoma State System of Higher
Education of amounts owed to the retirement system by a member who
makes an election authorized by subsection A or subsection B of this section.
G. A member eligible to make the election authorized by subsection A or
subsection B of this section shall:
     1. Make the election in writing, upon a form to be prescribed by the
     Board of Trustees; and
     2. File the election with the Board of Trustees not later than
     December 31, 1996.
H. All elections authorized by the provisions of subsection A or subsection
B of this section shall be permitted once, and only once, for each employee
authorized to make the election. Any election made pursuant to the provisions
of this section shall be irrevocable and shall bind the employee, the employee’s
heirs, beneficiaries and other interested persons, with respect to the amount
of compensation upon which contributions shall be made and the amount of
retirement benefits resulting from the election so made. Any employee who
is eligible to make an election pursuant to the provisions of this section, but
who fails to do so, for whatever reason, shall forfeit any right or power by
the employee to attempt to exercise the election at any later time. All elections
made pursuant to this section shall be operative only for service performed
and compensation received from an entity or institution within The Oklahoma
State System of Higher Education and shall not have any effect with respect
to compensation received from any other participating employer within the
Teachers’ Retirement System of Oklahoma.
70 O.S., § 17-116.2B. Amount of Retirement Benefits
    Beginning July 1, 2004, a member who has any creditable service as an
employee of an entity or institution within The Oklahoma State System of
Higher Education on or after July 1, 1995, who retires on or after the
member’s normal retirement age or whose retirement is because of disability
shall receive an annual allowance for life, payable monthly, as follows:
    1. If the member becomes a member after June 30, 1995, and was not
    eligible to become a member prior to July 1, 1995, in an amount equal
    to two percent (2%) of the member’s average salary upon which member
    contributions were made, multiplied by the number of the member’s
    years of creditable service;


192
2. If the member became a member or is eligible to become a member
prior to July 1, 1995, and elected to have a maximum compensation
level in excess of Twenty-five Thousand Dollars ($25,000.00) pursuant
to paragraph 1 of subsection C of Section 17-116.2 of this title or
pursuant to subsection E of Section 17-116.2 of this title, or if the
member’s salary never exceeded Twenty-five Thousand Dollars
($25,000.00) prior to July 1, 1995, in an amount equal to:
    a. two percent (2%) of the member’s average salary upon which
    member contributions were made, not to exceed Forty Thousand
    Dollars ($40,000.00), multiplied by the number of the member’s
    years of creditable service authorized and performed prior to July
    1, 1995, plus any years of prior service authorized under this title,
    plus
    b. two percent (2%) of the average of the member’s maximum
    compensation level upon which member contributions were made
    for those years between July 1, 1995, and June 30, 2007, in which
    the member’’s regular annual compensation meets or exceeds the
    maximum compensation level in effect for the member for the period
    July 1, 1995, through June 30, 2007, multiplied by the number of
    the member’’s years of creditable service for the period July 1,
    1995, through June 30, 2007, in which the member’’s regular annual
    compensation meets or exceeds the maximum compensation in effect
    for the member for the period July 1, 1995, through June 30, 2007,
    plus
    c. two percent (2%) of the member’s average salary upon which
    member contributions were made, multiplied by the number of the
    member’s years of creditable service authorized and performed for
    an employer other than a comprehensive university or for service
    performed for an employer other than an entity or institution within
    The Oklahoma State System of Higher Education on or after
    July 1, 1995, but not later than June 30, 2007, plus
    d. two percent (2%) of the member’s average salary upon which
    member contributions were made, multiplied by the number of the
    member’s years of creditable service in which contributions were
    made that did not meet or exceed the member’’s maximum
    compensation level in effect for the member for the period
    July 1, 1995, through June 30, 2007, and the number of the
    member’s years of creditable service authorized and performed after
    June 30, 2007;



                                                                     193
      3. If the member became a member or is eligible to become a member
      prior to July 1, 1995, and was eligible to elect to have a maximum
      compensation level in excess of Twenty-five Thousand Dollars
      ($25,000.00) and did not elect or elected not to have a maximum
      compensation level of Forty Thousand Dollars ($40,000.00) pursuant
      to paragraph 1 of subsection C of Section 17-116.2 of this title or
      pursuant to subsection E of Section 17-116.2 of this title, in an amount
      equal to:
          a. two percent (2%) of the member’s average salary upon which
          member contributions were made, not to exceed Twenty-five
          Thousand Dollars ($25,000.00), multiplied by the number of the
          member’s years of creditable service authorized and performed prior
          to July 1, 1995, plus any years of prior service authorized under
          this title, plus
          b. two percent (2%) of the average of the member’s maximum
          compensation level upon which member contributions were made
          for those years of service between July 1, 1995, and June 30, 2007,
          in which the member’’s regular annual compensation meets or
          exceeds the maximum compensation level in effect for the member
          for the period July 1, 1995, through June 30, 2007, multiplied by
          the number of the member’’s years of creditable service for the
          period July 1, 1995, through June 30, 2007, in which the member’’s
          regular annual compensation meets or exceeds the maximum
          compensation in effect for the member for the period July 1, 1995,
          through June 30, 2007, plus
          c. two percent (2%) of the member’s average salary upon which
          member contributions were made, multiplied by the number of the
          member’s years of creditable service authorized and performed for
          an employer other than a comprehensive university or for service
          performed for an employer other than an entity or institution within
          The Oklahoma State System of Higher Education on or after
          July 1, 1995, but not later than June 30, 2007, plus
          d. two percent (2%) of the member’s average salary upon which
          member contributions were made, multiplied by the number of the
          member’s years of creditable service in which contributions were
          made that did not meet or exceed the member’’s maximum compensation
          level in effect for the member for the period July 1, 1995, through June
          30, 2007, and the number of the member’s years of creditable service
          authorized and performed after June 30, 2007;
      4. Any member who retired on or after July 1, 1995, shall be eligible
      to have the benefits recalculated in accordance with the terms and
194
    provisions of paragraphs 2 and 3 of this section. In the event such
    calculation results in an increase in benefits, such benefits will be adjusted
    commencing January 1, 2005, and thereafter. No such recalculation
    shall be applied in a retroactive manner to result in any increase in
    benefits which have been paid between July 1, 1995, and
    December 31, 2004;
    5. For purposes of this section, the term “average of the member’s
    maximum compensation level” means an average of the annual salary
    on which the maximum contributions were made to the Teachers’’
    Retirement System of Oklahoma for the period between July 1, 1995,
    and June 30, 2007. The average for each member will be applied in
    accordance with paragraph (15) of Section 17-101 of this title;
    6. In the event there are insufficient number of years for the time period
    between July 1, 1995, and June 30, 2007, to reach the high three (3) or
    high consecutive five (5) years in accordance with paragraph (15) of
    Section 17-101 of this title, the member’’s maximum compensation level
    shall be determined by an average of the salary on which maximum
    contributions were made. In no case shall the member’’s maximum
    compensation level exceed the average salary as determined by paragraph
    (15) of Section 17-101 of this title.
70 O.S., § 17-116.3. Repealed by Laws 1979, c. 286, § 6, eff. July 1,
1979.
70 O.S., § 17-116.4. Repealed by Laws 1979, c. 286, § 6, eff. July 1,
1979.
70 O.S., § 17-116.5. Repealed by Laws 1982, c. 329, § 9, eff. July 1,
1982.
70 O.S., § 17-116.6. Creation and Content of Teachers’ Retirement
Reserve Fund.
    There is hereby created in the State Treasury a special fund which shall
be designated the “Teachers’ Retirement Reserve Fund”. Said fund shall
consist of such monies as the Legislature may transfer to such fund. The
monies in said fund shall only be used to support or benefit public pension
programs and shall be paid out pursuant to direction of the Legislature.
70 O.S., § 17-116.7. Review of Contracts - Audits - Annual Report
A. After the effective date of this act, before entering into any type of
contract that creates an unfunded liability and is for the purpose of enhancing
pension benefits for employees beyond the provisions of the Teachers’
Retirement System of Oklahoma, a state institution of higher education,
                                                                              195
technology center school district, or public school district, unless otherwise
provided by law, shall forward to the Office of the Attorney General a copy
of the contract and a copy of an actuarial report indicating the amount of
unfunded liability that would be created pursuant to the contract. The
Attorney General shall review the contract to ensure that the contract
conforms to state law. No such contract shall be signed by the education
entity until the Attorney General approves the contract. Any such contract
entered into without complying with the requirements of this section shall
be void.
B. In order to make the Legislature and Governor more aware of the effect
of unfunded pension benefits and other post-employment benefits on state
finances, annual audits conducted pursuant to law on state institutions of
higher education, technology center school districts, and school districts
shall be prepared in accordance with appropriate accounting standards
pertaining to unfunded pension benefits and other post-employment benefits.
The State Regents for Higher Education, the State Board of Career and
Technology Education and the State Board of Education, jointly, shall have
the information pertaining to benefits compiled into an annual report that
shall be distributed to the Governor, the Speaker of the House of
Representatives, and the President Pro Tempore of the Senate.
70 O.S., § 17-116.8. Adoption of Rules for Computation of Purchase
Price for Service Credit - Inability to Pay.
A. The Board of Trustees shall adopt rules for computation of the purchase
price for service credit. These rules shall base the purchase price for each
year purchased on the actuarial cost of the incremental projected benefits to
be purchased. The purchase price shall represent the present value of the
incremental projected benefits discounted according to the member’s age at
the time of purchase. Incremental projected benefits shall be the difference
between the projected benefit said member would receive without purchasing
the service credit and the projected benefit after purchase of the service
credit computed as of the earliest age at which the member would be able to
retire. Said computation shall assume an unreduced benefit and be computed
using interest and mortality assumptions consistent with the actuarial
assumptions adopted by the Board of Trustees for purposes of preparing
the annual actuarial evaluation.
B. In the event that the member is unable to pay the purchase price provided
for in this section by the due date, the Board of Trustees shall permit the
members to amortize the purchase price over a period not to exceed sixty
(60) months. Said payments shall be made by payroll deductions unless the
Board of Trustees permits an alternate payment source. The amortization

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shall include interest in an amount not to exceed the actuarially assumed
interest rate adopted by the Board of Trustees for investment earnings each
year. Any member who ceases to make payment, terminates, retires or dies
before completing the payments provided for in this section shall receive
prorated service credit for only those payments made, unless the unpaid
balance is paid by said member, his or her estate or successor in interest
within six (6) months after said member’s death, termination of employment
or retirement, provided no retirement benefits shall be payable until the
unpaid balance is paid, unless said member or beneficiary affirmatively
waives the additional six-month period in which to pay the unpaid balance.
The Board of Trustees shall promulgate such rules as are necessary to
implement the provisions of this subsection.
70 O.S., § 17-116.9. Credit for Certain Teaching Service - Requirement
to Contribute.
    Any member of the Teachers’ Retirement System of Oklahoma, who
taught kindergarten on public school property prior to the state-supported
kindergarten, and who subsequently taught in the public schools and has
met the necessary qualifications, may receive credit in the System for such
teaching service by, prior to January 1, 1991, making back contributions of
ten percent (10%) of salary plus ten percent (10%) interest to the System as
required by the Board of Trustees. Effective January 1, 1991, to receive the
credit in the System for such teaching service, the member shall pay the amount
determined by the Board of Trustees pursuant to Section 30 of this act.
70 O.S., § 17-116.10. Post-Retirement Employment Retirement Benefits
- Limitations
A. Subject to the requirements of Section 6-101.2 of this title and any
other applicable requirements of law, a member may enter into post-
retirement employment with a public school of Oklahoma and still receive
monthly retirement benefits subject to the following limitations:
     1. A retired member is not eligible to be employed by the public schools
     of Oklahoma, in any capacity, for sixty (60) calendar days between the
     retiree’s last day of pre-retirement public-education employment and
     any post-retirement public-education employment. For purposes of this
     section, the term “last day of pre-retirement employment” shall mean
     the last day the employee is required to be physically present on the job
     to complete the terms of the employment contract or agreement.
     Employment under any conditions during this time, volunteer services
     for the purpose of obtaining a paid position at a later date, or payment
     at a later time for services performed during this time period shall cause
     the forfeiture of all retirement benefits received during the period;
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      2. Unless otherwise provided in paragraph 3 of this subsection, earnings
      from the public schools may not exceed one-half (1/2) of the member’s
      final average salary used in computing retirement benefits, or the
      Earnings Limitation for employees allowed by the Social Security
      Administration, whichever is less. For retired members under the age
      of sixty-two (62) years, the limit on allowed earnings from the public
      schools of Oklahoma for employment for the performance of duties
      ordinarily performed by classified or nonclassified personnel shall be
      the lesser of Fifteen Thousand Dollars ($15,000.00) or one-half (1/2)
      of the member’s final average salary used in computing retirement
      benefits unless the earnings limitation allowed by the Social Security
      Administration would be greater than Fifteen Thousand Dollars
      ($15,000.00). For retired members sixty-two (62) years of age or older
      the limit on allowed earnings from the public schools of Oklahoma for
      the performance of duties ordinarily performed by classified or
      nonclassified personnel shall be the lesser of Thirty Thousand Dollars
      ($30,000.00) or one-half (1/2) of the member’s final average salary
      used in computing retirement benefits. For purposes of this paragraph,
      the following shall apply:
           a. earnings shall mean “regular annual compensation” as defined
           in paragraph (25) of Section 17-101 of this title, and shall include
           any payment by a public school for services rendered by a retired
           member who is employed for any purpose whatsoever. Supplemental
           retirement payments paid by a former public school employer
           pursuant to subsection 9 of Section 17-105 of this title or other
           state law shall not be considered as earnings,
           b. the Earnings Limitation for employees allowed by the Social
           Security Administration to workers between the age of sixty-two
           (62) years and sixty-five (65) years shall apply to retired members
           below the age of sixty-two (62) years,
           c. the limit on allowed earnings from the public schools shall be
           automatically adjusted effective the first day of January of each
           year to reflect the current Earnings Limitation for employees as
           determined from time to time by the Social Security Administration,
           d. earnings in excess of the maximum limit on allowed earnings
           from public schools of Oklahoma shall result in a loss of future
           retirement benefits for the year the post-retirement employment was
           performed of One Dollar ($1.00) for each One Dollar ($1.00) earned
           over the maximum allowed earnings amount,
           e. for those members age seventy (70) years and over, the earnings
           in excess of the maximum limit allowed earnings from public schools
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          of Oklahoma shall be one-half (1/2) the member’s final average
          salary used in computing retirement benefits. However, any retired
          member receiving benefits from the Retirement System who reached
          age seventy (70) years prior to July 1, 1991, shall not be restricted
          by the earnings limits pursuant to this subparagraph until
          January 1, 1994. To qualify for the provisions of this subparagraph,
          the member must be employed less than one-half (1/2) time compared
          to other full-time employees in similar positions;
     3. Notwithstanding paragraph 2 of this subsection, a retired classified
     or nonclassified member who has been retired for thirty-six (36) or
     more months and who is employed by a public school to perform duties
     ordinarily performed by classified or nonclassified personnel shall be
     able to receive annualized earnings from the public school not to exceed
     Thirty Thousand Dollars ($30,000.00); and
     4. A member shall be considered to be employed by a school district
     to perform the duties ordinarily performed by classified or nonclassified
     personnel if the member is hired by the school district in the member’s
     individual capacity to perform the duties or if the member performs the
     duties through employment with a proprietorship, partnership,
     corporation, limited liability company or partnership, or any other
     business structure that has agreed or contracted to provide the services
     to the school district.
B. A public school district that employs a retired member shall be required
to make contributions to the System for the retired member in an amount as
required in Section 17-108.1 of this title.
C. For purposes of this section, post-retirement employment of less than
one thousand (1,000) hours per year with the Governor, the State Senate,
the House of Representatives or the Legislative Service Bureau shall not be
considered as post-retirement employment with a public school of Oklahoma.
D. The Board of Trustees of the Teachers’ Retirement System of Oklahoma
shall promulgate such rules as are necessary to implement the provisions of
this section.
E. A member who has entered into post-retirement employment with a
participating employer of the Teachers’ Retirement System of Oklahoma
must fully comply with all the provisions of the rules promulgated by the
Board of Trustees pursuant to this section in order to continue receiving his
or her monthly retirement benefit.
70 O.S., § 17-116.11. Repealed by Laws 1998, c. 256, § 11, eff. July 1, 1998



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70 O.S., § 17-116.12. Credit for Termination due to Reduction-in-Force.
A. A member of the Teachers’ Retirement System of Oklahoma who has
ten (10) or more years of full-time-equivalent employment with a
participating employer, and who is terminated by a state agency or other
state governmental entity because the member’s position is eliminated through
a reduction-in-force after July 1, 1998, and is within three (3) years of
retirement as prescribed in Section 17-105 of Title 70 of the Oklahoma
Statutes, may purchase termination credit of a period not to exceed the
lesser of three (3) years or the number of years or months, or both, years
and months required in order for the member to reach normal retirement
date in the same period of time and with the same service credit which
would have otherwise accrued if the termination had not occurred.
B. In order to receive the termination credit authorized by this section, the
member shall be required to Me an election with the System indicating an
intent to purchase the credit. The member shall have a period of six (6)
months from the date the member is terminated as described in subsection A
of this section within which to file the election.
C. To purchase the termination credit, the member shall be required to
make payment to the System of an amount equal to both the employer and
employee contributions which would have been paid to the System based
upon the maximum compensation level as defined in subsection (28) of
Section 17-101 of Title 70 of the Oklahoma Statutes, which was received
by the member in the last full month that the member was employed by the
state agency or other state governmental entity multiplied by the number of
months required in order for the combination of the participating service
and member’s age, to equal the amount required for the member to reach
normal retirement date with an unreduced benefit as if the member had not
been terminated.
D. The member must make full payment to the System of all required
contribution amounts within sixty (60) days of filing the election to purchase
the credit. The member must vest his or her benefits with a declared future
retirement date as of the first month the member is eligible for normal
retirement. Failure to make the full payment to the System of the, required
contribution amounts, for any reason, within the time prescribed, shall result
in cancellation of the election provided pursuant to this section, and return
of the purchase amount tendered, without interest.
E. Purchased termination credit may only be used as service credit to qualify
the member for normal retirement.
F. If the member chooses to retire at any time prior to the member’s normal
retirement date or returns to employment with a participating employer of
the System at any time prior to retirement, the purchase of termination
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credit pursuant to this section shall be void, and the System will return the
purchase amount tendered, without interest.
G. In the event of the death of the member prior to retirement, the member’s
spouse, if otherwise eligible for benefits pursuant to Section 17-105 of Title
70 of the Oklahoma Statutes, may elect to receive benefits which include
the termination credit on the member’s declared future retirement date, or may
elect to receive a return of the purchase amount tendered, without interest.
70 O.S., § 17-116.13. Retirement Allowance - Calculation.
A. Beginning July 1, 1998, a classified member who retired prior to
July 1, 1997, shall have the member’s retirement allowance calculated on
the member’s current average salary plus One Thousand Four Hundred
Dollars (1,400.00).
B. Beginning July 1, 1998, a nonclassified member who retired prior to
July 1, 1997, shall have the member’s retirement allowance calculated on
the member’s current average salary plus Seven Hundred Dollars ($700.00).
C. Beginning July 1, 1998, those individuals receiving benefits pursuant to
subsection (3) of Section 17-105 of this title whose benefits commenced
prior to July 1, 1997, shall receive an increase in benefits of five and four-
tenths percent (5.4%).
70 O.S., § 17-116.14. Repealed Laws 1999, H.B. 1574 c. 254. § 11, eff.
June 30,1999
70 O.S., § 17-116.15. Employees Transferred from George Nigh
Rehabilitation Institute -- Election to Become a Member of the Teacher’s
Retirement System of Oklahoma
     An employee transferred pursuant to the provisions of Section 3 of this
act may elect to become a member of the Teacher’s Retirement System of
Oklahoma pursuant to the election authorized by subsection A of Section 3
of this act. If the employee makes an election to become a member of the
Teachers’ retirement System of Oklahoma, the employee may acquire service
credit in the Teachers’ Retirement System pursuant to the provisions of
Section 17-116.2 of Title 70 of the Oklahoma Statutes. On and after the
date that an employee makes an election to become a member of the Teachers’
Retirement System pursuant to subsection A of Section 3 of this act, the
employer to which the employee is transferred shall make required
contributions pursuant to Section 17-108.1 of Title 70 of the Oklahoma
Statues and the employee shall make required contributions imposed pursuant
to Section 17-116.2 of Title 70 of the Oklahoma Statues. On and after the
date that am employee files the election to become a member of the Teachers’
Retirement System, the employer to which the employee is transferred and

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the employee making the election shall be subject to all requirements of the
provisions of Sections 17-101 et. seq. of Title 70 of the Oklahoma Statues
governing the Teachers’ Retirement System of Oklahoma.
70 O.S., § 17-116.16. Prior Adjunct Position -- Purchase Credit for
Employment
    Effective July 1, 2000, a member of the Teachers’ Retirement System
of Oklahoma who was employed in an adjunct position in an institution
under The Oklahoma State System of Higher Education prior to becoming
a member of the System, may purchase a maximum of five (5) years of
credit for such employment, pursuant to this section. One (1) year of service
credit may be purchased for any school year in which the member worked
eighteen (18) credit hours or more in such an adjunct position. The purchase
of service credit shall be made pursuant to Section 17-116.8 of Title 70 of
the Oklahoma Statutes and shall be considered contributing service for
purposes of vesting and retirement. The Board of Trustees shall promulgate
such rules as are necessary to implement the provisions of this section.
70 O.S., § 17-116.17. Benefits Increase - 1999 - Retirement Allowance
Calculation
A. Beginning July 1, 2000, a classified member who retired prior to
July 1, 1999, who continues to receive benefits on or after July 1, 2000,
shall have the member’s retirement allowance calculated on the member’s
current average salary plus Five Hundred Dollars ($500.00).
B. Beginning July 1, 2000, a nonclassified member who retired prior to
July 1, 1999, who continues to receive benefits on or after July 1, 2000,
shall have the member’s retirement allowance calculated on the member’s
current average salary plus Two Hundred Fifty Dollars ($250.00).
C. Beginning July 1, 2000, those individuals receiving benefits pursuant
to subsection (3) of Section 17-105 of Title 70 of the Oklahoma Statutes
whose benefits commenced prior to July 1, 1999, shall receive an increase
in benefits of one and eight-tenths percent (1.8%).
70 O.S., § 17-116.18. Benefits Increase - 2002
A. Any person receiving retirement benefits from the Teachers’’ Retirement
System of Oklahoma as of June 30, 2001, who continues to receive benefits
on or after July 1, 2002, shall, beginning in July 2002, receive an increase
in retirement benefits equal to three percent (3%).
B. Such persons who are otherwise eligible for the benefit increase in
subsection A of this section, who retired from the system with thirty (30)
years of credited service, shall receive, in lieu of the benefit increase in


202
subsection A of this section, an increase in retirement benefits equal to four
percent (4%) beginning in July 2002.
70 O.S., § 17-116.19. Benefits Increase - 2004
A. Beginning July 1, 2004, any person receiving benefits from the Teacher’’s
Retirement System of Oklahoma as of June 30, 2003, who continues to
receive benefits on or after July 1, 2004, shall receive a percentage increase
in said benefits on July 1, 2004, as follows:
    Years of Service of     Monthly Benefit as of          Benefit
   the Retired Member         June 30, 2004               Increase
    20 years or more           Less than $1,500.00          4.5%
                               $1,500.00 to $2,500.00       4.0%
                               Over $2,500.00               3.5%
      15 to 19 years           Less than $1,000.00          4.0%
                               $1,000.00 to $2,000.00       3.5%
                               Greater than $2,000.00       3.0%
   Less than 15 years          Less than $801.00            3.5%
                               $801.00 to $1,499.99         3.0%
                               $1,500.00 or greater         2.5%
B. Beginning in July 2004, those individuals receiving benefits pursuant
to subsection (3) of Section 17-105 of Title 70 of the Oklahoma Statutes
whose benefits commenced prior to July 1, 2003, shall receive an increase
in benefits of four percent (4%).
70 O.S., § 17-117. Repealed by Laws 1980, c. 68, § 1, emerg. eff. April
10, 1980.
70 O.S., § 17-118. Repealed by Laws 1980, c. 68, § 1, emerg. eff. April
10, 1980.
70 O.S., § 17-119. Repealed by Laws 1989, c. 154, § 2, operative July 1,
1989.
§70 O.S., 17-120. Deposit of Contributions.
     The employer of each member shall deposit within ten (10) days of the last
day of each calendar month all employer and employee contributions of each
member due the Retirement System for payroll periods ending during the calendar
month. Employer and employee contribution amounts not paid to the Retirement
System after thirty (30) days from the end of the payroll month shall be subject
to a monthly late charge of one and one-half percent (1 1/2%) of the unpaid
balance to be paid by the employer to the Retirement System.
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70 O.S., § 17-121. Oklahoma Teachers’ Deferred Savings Incentive Plan.
A. Effective July 1, 1999, for each active contributing member of the
Teachers’ Retirement System of Oklahoma, who is making contributions of
at least Twenty-five Dollars ($25.00) per month to a plan account maintained
by the Teachers’ Retirement System of Oklahoma pursuant to Section 403(b)
of Title 26 of the United States Code, 26 U.S.C. Section 403(b), the Teachers’
Retirement System shall pay each month from funds appropriated to the
Oklahoma Teachers’ Deferred Savings Incentive Plan Fund created pursuant
to this section the sum of Twenty-five Dollars ($25.00) to a plan established
pursuant to the Internal Revenue Code, Section 401(a), for the benefit of
the participant.
B. If monies in the Oklahoma Teachers’ Deferred Savings Incentive Plan
Fund are insufficient to fully fund the contributions in any month, payments
shall be suspended until such time as sufficient monies are available.
C. The Teachers’ Retirement System shall be responsible for establishing
rules and plan documents for administration of the contributions authorized
by this section. Funds so credited shall be held and invested in the same
manner as funds managed in accounts of members contributing to an account
established pursuant to Section 403(b) of the Internal Revenue Code of
1986, as amended.
D. There is hereby created in the State Treasury a revolving fund to be
designated the “Oklahoma Teachers’ Deferred Savings Incentive Plan Fund”.
The fund shall be a continuing fund, not subject to fiscal year limitations,
and shall consist of any monies the Legislature may appropriate or transfer
to the fund and any monies contributed for the fund from any other sources,
public or private. All monies accruing to the credit of said fund are hereby
appropriated and may be budgeted and expended by the Teachers’ Retirement
System of Oklahoma for the matching of deferred compensation contributions
pursuant to this section and in accordance with rules promulgated by the Teachers’
Retirement System of Oklahoma. Expenditures from the fund shall be made by
warrants issued by the State Treasurer against claims filed as prescribed by law
with the Director of State Finance for approval and payment.
70 O.S., § 17-122. Mailings Concerning Participation in a Retired
Teachers’ Organization
     When a member of the Teachers’’ Retirement System of Oklahoma makes
an application to retire, the System shall provide to such member an
application to participate in a retired teachers’’ organization along with a
form allowing the member to elect to have annual membership dues in a
retired teachers’’ organization prorated and authorizing the System to
withhold such dues monthly from the member’’s retirement benefits. Any

204
retired teachers’ organization which wants to participate, pursuant to this
section, or to participate in a general mailing to all retired educators, with
the approval of the Board of Trustees of the Teachers’ Retirement System,
shall provide to the System and pay for the cost, including postage costs if
required by the Teachers’ Retirement System, of printed materials and of
the applications to be a member of the organization and the forms authorizing
the System to withhold membership dues of the organization. The Board of
Trustees shall approve the format and content of the authorization to make
sure it complies with all relevant legal requirements. The System shall not
be held responsible or liable for not providing the application to be a member
of a participating retired teachers’ organization or the authorization form if
such organization does not timely provide to the System such materials and
applications and approved authorization forms in sufficient quantities to
meet the retirement application demands of the retiring members.
70 O.S., § 17-122.1. Number of Teachers Required for Retired Teachers’
Organization
    To qualify as a retired teachers’’ organization pursuant to Section 1 of
this act, the organization must have at least one thousand dues-paying
members.
    Alternate Retirement Plan for Comprehensive Universities Act
70 O.S., § 17-201. Short Title
    Sections 1 through 8 of this act shall be known and may be cited as the
“Alternate Retirement Plan for Comprehensive Universities Act”.
70 O.S., § 17-202. Definitions
    The following words and phrases as used in this act shall have the
following meanings unless a different meaning is clearly required by the
context:
    1. “Participating institution” means only the entities that comprise a
    comprehensive university pursuant to Section 17-101 of Title 70 of the
    Oklahoma Statutes and which:
         a. maintain an alternate retirement plan pursuant to the provisions
         of this act, and
         b. employ eligible employees;
    2. “Alternate retirement plan” means any employee retirement plan
    that is created solely to provide benefits for eligible employees and
    electing employees, as defined in this section, for periods of service on
    or after July 1, 2004. Such retirement plan shall be a plan meeting the
    requirements of Section 401(a) of the Internal Revenue Code of 1986,
    as amended, operated pursuant to the provisions of this act;
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      3. “Board of regents” means the board or body designated by the
      Oklahoma Constitution or by Title 70 of the Oklahoma Statutes as the
      board of regents or governing board of a comprehensive university that
      is a participating institution;
      4. “Eligible employee” means any employee of a participating
      institution who (a) was initially appointed or hired after June 30, 2004,
      and (b) meets the eligibility requirements of the alternate retirement
      plan of the participating institution that employs the eligible employee.
      However, the term “eligible employee” does not include a person whose
      employment is incidental to his or her educational program or whose
      employment is not continuous. Such eligible employees shall be eligible
      to participate in the alternate retirement plan if they make a one-time
      irrevocable written election pursuant to this act;
      5. “Electing employee” means an employee of a participating institution
      hired prior to July 1, 2004, who is a member of the Teachers’ Retirement
      System of Oklahoma and who makes a one-time irrevocable written
      election pursuant to this act to cease to make employee contributions to
      the Teachers’’ Retirement System of Oklahoma and to participate in an
      alternate retirement plan established by such employee’’s participating
      institution pursuant to this act; and
      6. “One-time irrevocable written election” means a one-time election
      made pursuant to this act by an eligible employee or electing employee
      that shall be in writing and irrevocable and shall cover all future service
      with a participating institution regardless of a break in service.
70 O.S., § 17-203. Alternate Retirement Plans for Eligible Employees
and Electing Employees Authorized
     Alternate retirement plans for eligible employees and electing employees
are hereby authorized at participating institutions in lieu of the retirement
plan offered by the Teachers’ Retirement System of Oklahoma. Alternate
retirement plans, shall, for eligible employees and electing employees, provide
retirement and death benefits to such employees through the purchase of annuity
contracts, qualified retirement trusts or custodial accounts, fixed or variable in
nature, or a combination thereof, at the option of the participating institution.
70 O.S., § 17-204. Authority and Duties of Board of Regents
A. On or before June 30, 2005, the Board of Regents of a participating
institution may establish an alternate retirement plan pursuant to the
provisions of this act, for the entities under the jurisdiction of such Board of
Regents, for eligible employees and electing employees in lieu of membership
in the Teachers’ Retirement System of Oklahoma. The Board of Regents of
the applicable participating institution shall determine the terms and
206
conditions of the alternate retirement plan including, by example, terms for
eligibility, contributions, vesting and the amount of benefits, and provide
for the administration of such an alternate retirement plan and perform or
authorize the performance of such functions as may be necessary for such
purpose in accordance with this act.
B. The Board of Regents shall select the company or companies that shall
administer the qualified retirement trust, custodial accounts or from which
annuity contracts are to be purchased under the alternate retirement plan
and shall approve the form and content of all agreements governing such
trusts, accounts or contracts.
C. The Board of Regents of the participating institutions may delegate
certain responsibilities for administering the alternate retirement plan with
respect to each institution’’s own employees.
70 O.S., § 17-205. Funding of Alternate Retirement Plan Benefits
     Each Board of Regents which establishes an alternate retirement plan
shall designate one or more companies to provide for the funding of alternate
retirement plan benefits through the purchase of annuity contracts, qualified
retirement trusts or custodial accounts.
70 O.S., § 17-206. One-Time Irrevocable Written Election - Teachers’’
Retirement System of Oklahoma and Alternate Plan
A. An eligible employee shall have ninety (90) days from such eligible
employee’’s initial date of hire or the date the alternate retirement plan is
adopted by the participating institution, whichever is later, to make a one-
time irrevocable written election to participate in the alternate retirement
plan or the Teachers’ Retirement System of Oklahoma. If an eligible employee
fails to make an election within the ninety-day period such eligible employee
shall participate in the Teachers’ Retirement System of Oklahoma. If an
eligible employee makes the election to participate in the alternate retirement
plan such eligible employee shall not participate in the Teachers’’ Retirement
System of Oklahoma nor make employee contributions to the Teachers’
Retirement System of Oklahoma and the participating institution shall not
make employer contributions to the Teachers’ Retirement System of
Oklahoma except as otherwise required by this act. If an eligible employee
elects to participate in the Teachers’ Retirement System of Oklahoma, then
the eligible employee shall make employee contributions to the Teachers’
Retirement System of Oklahoma and the participating institution shall pay the
employer contributions of such eligible employee to the Teachers’ Retirement
System of Oklahoma for the month that the eligible employee was hired through
the month that the election is made and as long as the eligible employee participates
in the Teachers’ Retirement System of Oklahoma.
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B. An eligible employee who elects to participate in the alternate retirement
plan shall be ineligible for participation in the Teachers’ Retirement System
of Oklahoma. Ineligibility to participate in the Teachers’ Retirement System
of Oklahoma shall continue so long as such eligible employee remains
employed by a participating institution. If such eligible employee assumes a
different position, which is governed by a state retirement system other than
the alternate retirement plan authorized in this act, the eligible employee
shall be subject to the retirement system rules applicable to that new position.
However, such eligible employee shall not be eligible for service credit in
the Teachers’ Retirement System of Oklahoma for service performed while
participating in an alternate retirement plan.
C. An electing employee who desires to cease to participate in the Teachers’
Retirement System of Oklahoma shall make a one-time irrevocable written
election to cease making employee contributions to the Teachers’ Retirement
System of Oklahoma and participate in the alternate retirement plan. Such
election shall be made within one (1) year following the adoption of the
alternate retirement plan or receipt of official written notice that the provisions
of this act satisfy the applicable requirements of the Internal Revenue Code
of 1986, as amended from time to time, whichever is later. If the electing
employee makes the election pursuant to this subsection, then the
participating institution shall notify the Teachers’ Retirement System of
Oklahoma of such election within thirty (30) days of receipt of the election.
Upon the election to cease membership in the Teachers’ Retirement System
of Oklahoma, employer and employee contributions shall cease as of the
first day of the month coinciding with or first following the receipt of the
election from the electing employee by the participating institution.
D. Subject to receipt of official written notice that the provisions of this
act satisfy the applicable requirements of the Internal Revenue Code of
1986, as amended from time to time, as provided in subsection C of this
section, if the electing employee is not vested with the Teachers’ Retirement
System of Oklahoma at the time the election is made, the Teachers’ Retirement
System of Oklahoma shall transfer all of the electing employee’s employee
contributions (but not employer contributions) at the time of such election,
and attributable interest, pursuant to Section 17-105 of Title 70 of the
Oklahoma Statutes, to the alternate retirement plan in an amount equal to
what the electing employee would have received had the electing employee
withdrawn his or her contributions at the date of such election. A transfer of
employee contributions and interest pursuant to this subsection shall only
be made upon receipt of official written notice that such transfer satisfies
the applicable requirements of the Internal Revenue Code of 1986, as
amended from time to time. Upon transfer of such employee contributions
208
and interest to the alternate retirement plan, the electing employee shall
have all service credit, rights, and benefits in the Teachers’ Retirement System
of Oklahoma canceled. In the event the Internal Revenue Service does not
approve the transfer of contributions and interest to the alternate retirement plan
as provided in this subsection, such employee contributions and interest shall be
refunded to such electing employee upon termination, retirement, death or
disability pursuant to Section 17-101 et seq. of Title 70 of the Oklahoma Statutes
and the rules of the Teachers’ Retirement System of Oklahoma.
E. In the event an electing employee is vested with the Teachers’ Retirement
System of Oklahoma on the date that the election is made, such individual
shall have the option to either (a) leave all of his or her employee contributions
in the Teachers’ Retirement System of Oklahoma, or (b) transfer all of the
electing employee’’s employee contributions (but not employer contributions)
at the time of such election, and attributable interest, pursuant to Section
17-105 of Title 70 of the Oklahoma Statutes, to the alternate retirement
plan in an amount equal to what the electing employee would have received
had the electing employee withdrawn his or her contributions at the date of
such election. A transfer of employee contributions and interest pursuant to
this subsection shall only be made upon receipt of official written notice
that such transfer satisfies the applicable requirements of the Internal Revenue
Code of 1986, as amended from time to time. Upon transfer of such employee
contributions and interest to the alternate retirement plan, all of the electing
employee’’s service credit, rights, and benefits in the Teachers’ Retirement
System of Oklahoma shall be canceled. However, such electing employee
who leaves all of his or her employee contributions in the Teachers’
Retirement System of Oklahoma shall not be eligible to retire from the
Teachers’ Retirement System of Oklahoma while employed by a participating
institution. In the event the Internal Revenue Service does not approve the
transfer of contributions and interest to the alternate retirement plan as
provided in this subsection, such employee contributions and interest shall
be refunded to such electing employee upon termination, retirement, death
or disability pursuant to Section 17-101 et seq. of Title 70 of the Oklahoma
Statutes and the rules of the Teachers’’ Retirement System of Oklahoma.
F. An electing employee shall not be eligible to obtain service credit in the
Teachers’ Retirement System of Oklahoma for service performed while
participating in an alternate retirement plan as provided in this act, on or
after July 1, 2004, even if the employee later returns to employment in a
position governed by the Teachers’ Retirement System of Oklahoma. The
Boards of Regents of the participating institutions and the Teachers’
Retirement System of Oklahoma shall promulgate any rules necessary to
implement the provisions of this section.
                                                                               209
70 O.S., § 17-207. Initial and Additional Funding Surcharges - Review
of Actuarial Methods and Assumptions
A. Participating institutions establishing an alternate retirement plan
pursuant to this act shall pay an initial funding surcharge, and if applicable
an additional funding surcharge to the Teachers’ Retirement System of
Oklahoma in an amount to amortize the unfunded accrued liability of the
members of the participating institutions in the System.
B. The initial funding surcharge is intended to ensure amortization of the
unfunded accrued liability of the participating institutions over a period of
thirty (30) years or the amortization period of the System. The initial funding
surcharge shall equal two and one-half percent (2.5%) of the regular annual
compensation of the electing employees and the eligible employees, who are
not participating in the System but who would have been mandated to
participate in the System under the laws and rules applicable to the System
in effect on June 30, 2004. The initial funding surcharge but not the additional
funding surcharge, if any, shall remain in effect until the earlier of
June 30, 2034, or the June 30th of the year in which the unfunded accrued
liability of the participating institutions is reduced to zero.
C. In addition to the initial funding surcharge described above, the
participating institutions shall pay to the System an additional funding
surcharge, if required, in an amount necessary to provide for amortization
of the unfunded accrued liability of the participating institutions over the
applicable amortization period of thirty (30) years, or the amortization period
of the System, if longer. The additional funding surcharge shall be reviewed
and adjusted in subsequent years based on changes in the assets and liabilities
of the membership in the System of the participating institutions. The
additional funding surcharge shall be determined by the Board of Trustees
of the System and the participating institutions pursuant to the separate
agreement of understanding provided in subsection H of this section. Any
change in the additional funding surcharge indicated to be necessary by the
annual actuarial valuation shall be adopted by the Board of Trustees of the
System provided that such change shall become effective on July 1 of the
year following such annual valuation and the participating institutions shall
be notified by the System no later than January 1 of such year. Provided,
the additional funding surcharge determined for any year shall not be greater
than an additional funding surcharge determined under the separate
agreement of understanding but using the “individual entry age normal cost
method” as described in Revenue Procedure 2000-40, Approval 8, to
determine the normal cost/normal cost percentage of the participating
institutions.

210
D. Any payments made to the Teachers’ Retirement System of Oklahoma
pursuant to this section shall not be considered as salary, fringe benefits or
compensation due to the eligible employee or electing employee for the
purpose of meeting any legislative or contractual obligation of the employer
of such person.
E. To determine the amount of assets of the participating institutions at
any point in time after June 30, 2003, the participating institutions shall
have allocated to such institutions Five Hundred Ninety-two Million Nine
Hundred Seventy-four Thousand Two Hundred Sixty-four Dollars
($592,974,264.00) of the assets of the Teachers’ Retirement System of
Oklahoma which reflects their portion of assets in the System as of
June 30, 2003, plus future employer and employee contributions including
service purchases attributable to the participating institutions and its
members, nine and forty-one hundredths percent (9.41%) of all federal and
state funding received by the System during the applicable year and other
assets contributed to the System allocable to the participating institutions
subject to the limitations in this subsection, earnings on investments less
distributions and expenses allocable to the participating institutions.
Provided, the allocation of nine and forty-one hundredths percent (9.41%)
of federal and state funding received by the System to the participating
institutions shall not exceed the unfunded accrued liability and shall remain
in effect until the earlier of June 30, 2034, or when the unfunded accrued
liability of the participating institutions is reduced to zero. However, if for
any applicable year during the thirty-year amortization period commencing
July 1, 2004, there is any unfunded accrued liability allocable to the
participating institutions in the System, then the allocable percentage of
federal and state funding shall be nine and forty-one hundredths percent
(9.41%) but not exceed the unfunded accrued liability. Provided further,
after the expiration of such thirty-year amortization period, the allocation
of federal and state funding to the participating institutions for any year
shall equal the percentage of all such federal and state funding received by
the System determined by dividing the actuarial accrued liability of the
participating institutions by the actuarial accrued liability of the System,
and such methodology to determine such allocation shall be made for all
years thereafter.
F. After June 30, 2004, the liabilities associated with the members of the
participating institutions participating in the Teachers’ Retirement System
of Oklahoma shall be determined on a separate basis, reflecting the level of
benefits based on the actuarial methods and assumptions used by the System
as applied to the participating institutions under this act.

                                                                           211
G. The actuarial methods and assumptions applicable to the participating
institutions in determining an allocable share of assets, liabilities and
associated costs as provided in this act shall be reviewed at least every five
(5) years.
H. The Board of Trustees of the Teachers’ Retirement System of Oklahoma
and the participating institutions shall enter into a separate agreement of
understanding which details the procedures to be applied to implement the
required review and subsequent adjustments to the assets, liabilities and the
additional funding surcharge attributable to the participating institutions or
the actuarial methods or assumptions applied to determine the appropriate
share of assets and liabilities applicable to the participating institutions.
Except as otherwise provided in this act, the Board of Trustees of the System
shall be the final authority to determine all actuarial methods or assumptions
to be used by the System and all such actuarial methods or assumptions
shall be applied on a sound actuarial basis and on a uniform, fair and
consistent basis which methods and assumptions reflect the actual experience
of the members of the participating institutions.
70 O.S., § 17-208. Alternate Retirement Plan Not an Obligation of the
State or the Teachers’ Retirement System - Signed Employee
Acknowledgement
     All eligible employees and electing employees participating in the
alternate retirement plan shall acknowledge in writing that benefits payable
pursuant to such alternate retirement plan are not the obligations of the
State of Oklahoma or the Teachers’ Retirement System of Oklahoma. The
alternate retirement plan shall be solely responsible for payment of retirement,
death or other benefits earned under the alternate retirement plan and such
benefits shall be paid to the participants or their beneficiaries pursuant to
the terms of the alternate retirement plan.


        State and Education Employees Group Insurance Act
 Provisions Relevant to the Teachers’ Retirement System of Olahoma
74 O.S. §1316.1. Retirement Benefits - Continuance
A. Any person who retires or who has elected to receive a vested benefit
under the provisions of the State of Oklahoma retirement systems or persons
who are currently drawing disability benefits under Section 1331 et seq. of
this title or who meet each and every requirement of the State Employees
Disability Program or the spouse or dependent of any such employee may
continue in force the life insurance benefits authorized by this act in a face
amount of not less than one-fourth (1/4) of the basic life insurance amount,

212
if such election to continue in force is made within thirty (30) days from the
time of severance. Persons electing to continue in force life insurance benefits
shall pay the full cost of the life insurance and under such terms and
conditions as established by the Board. Further, any such retiree may continue
in force any additional life insurance that was purchased prior to retirement
at an actuarially adjusted rate and under such terms and conditions as
established by the Board.
     Effective January 1, 2002, nonvested employees may also continue their
life insurance benefits as provided in this section following termination of
employment, if the employee has completed at least eight (8) years of service
with an employer participating in the Oklahoma Public Employees
Retirement System or at least ten (10) years of service with an employer
participating in the Teachers’ Retirement System of Oklahoma. The election
to continue the employee’’s life insurance in force must be made within
thirty (30) days after the date of termination.
B. Any retired employee who is receiving a benefit or terminates
employment with a vested benefit from the Teachers’ Retirement System of
Oklahoma and who becomes enrolled in the health insurance plan offered
by the State and Education Employees Group Insurance Act, pursuant to
subsection E of Section 5-117.5 of Title 70 of the Oklahoma Statutes, may
elect to purchase life insurance benefits in amounts and at a cost as provided
for in this section.
C. In lieu of subsection A of this section, any person who retires or who
has elected to receive a vested benefit under the provisions of the State of
Oklahoma retirement systems and who is participating in a health insurance
plan, the dental insurance plan, or the life insurance plan offered by the
State and Education Employees Group Insurance Board, including such
persons who are currently drawing disability benefits under Section 1331 et
seq. of this title or who meet each and every requirement of the State
Employees Disability Program on or before July 1, 1999, or the spouse of
any such person may elect to purchase life insurance benefits authorized by
this subsection in a face amount not to exceed Fifty Thousand Dollars
($50,000.00). Eligible persons pursuant to this subsection shall make an
election by January 1, 2000, to purchase the life insurance coverage provided
in this subsection. Life insurance coverage pursuant to this subsection shall
depend upon providing satisfactory evidence of insurability for the person
who is to be covered. Life insurance coverage, pursuant to this subsection,
shall be purchased in blocks of Five Thousand Dollars ($5,000.00). The
premium for such life insurance coverage shall be at a blended rate and
shall be set by the Board. The Board shall promulgate rules necessary for
the implementation of the provisions of this subsection.
                                                                            213
74 O.S. § 1316.3. Continuance of Health and Dental Insurance Benefits—
Schedule of Maximum Benefits Payable on Behalf of Retired Person -
Dependents of Deceased Employee
A. Any person who retires pursuant to the provisions of the Teachers’
Retirement System of Oklahoma with at least ten (10) years of creditable
service or who has a vested benefit with at least ten (10) years of creditable
service, pursuant to the provisions of the Teachers’ Retirement System of
Oklahoma may continue in force the health and dental insurance benefits
authorized by the provisions of the State and Education Employees Group
Insurance Act if such election to continue in force or begin is made within
thirty (30) days from the date of termination of service. Except as provided
in subsection E of Sections 5-117.5 and 14-108.1 of Title 70 of the Oklahoma
Statutes and Section 840-2.27I of this title and subsection K of this section,
health and dental insurance coverage may not be reinstated at a later time if
the election to continue in force or begin coverage is declined. Vested persons
who have terminated service and are not receiving benefits and effective
July 1, 1996, nonvested persons who have terminated service with more
than ten (10) years of participating service with a qualifying employer, who
within thirty (30) days from the date of termination of service, elect to
continue such coverage, shall pay the full cost of said insurance premium at
the rate and pursuant to the terms and conditions established by the Board.
B. 1. Health insurance benefit plans offered pursuant to this section shall
include:
     a. indemnity plans offered through the State and Education Employees
     Group Insurance Board,
     b. managed care plans offered as alternatives to the indemnity plans,
     c. Medicare supplements offered through the State and Education
     Employees Group Insurance Board,
     d. Medicare risk-sharing contracts offered as alternatives to the
     Medicare supplements offered through the State and Education
     Employees Group Insurance Board, and
     e. any other employer-provided health insurance benefit plans if the
     employer does not participate in the plans offered pursuant to the State
     and Education Employees Group Insurance Act.
     2. Health insurance benefit plans offered pursuant to this section shall
provide prescription drug benefits, except for plans designed pursuant to
the Medicare Prescription Drug Improvement and Modernization Act of
2003, which may or may not contain prescription drug benefits, for which
provision of prescription drug benefits is optional, and except for plans
offered pursuant to subparagraph e of paragraph 1 of this subsection.

214
C. A retired person who:
    1. Is receiving benefits from the Teachers’ Retirement System of
    Oklahoma after September 30, 1988, is under sixty-five (65) years of
    age and is not otherwise eligible for Medicare and pursuant to subsection
    A of this section elects to begin or to continue the health insurance plan;
    2. Is receiving benefits from the Teachers’ Retirement System of
    Oklahoma after June 30, 1993, is under sixty-five (65) years of age and
    is not otherwise eligible for Medicare and participates in a health
    insurance plan provided by a participating education employer of the
    Teachers’ Retirement System of Oklahoma other than a health insurance
    plan offered pursuant to the State and Education Employees Group
    Insurance Act or an alternative health plan offered pursuant to the
    Oklahoma State Employees Benefits Act;
    3. Is receiving benefits from the Teachers’ Retirement System of
    Oklahoma after September 30, 1988, made contributions to the system
    and is sixty-five (65) years of age or older, or who is under sixty-five
    (65) years of age and is eligible for Medicare and is a participant in the
    State and Education Employees Group Insurance Act and elects coverage
    under the Medicare supplement offered by the State and Education
    Employees Group Insurance Board; or
    4. Is receiving benefits from the Teachers’ Retirement System of
    Oklahoma after June 30, 1993, made contributions to the system and is
    sixty-five (65) years of age or older, or who is under sixty-five (65)
    years of age and is eligible for Medicare and participates in a health
    insurance plan provided by a participating education employer of the
    Teachers’ Retirement System of Oklahoma other than a health insurance
    plan offered pursuant to the State and Education Employees Group
    Insurance Act or an alternative health plan offered pursuant to the
    Oklahoma State Employees Benefits Act and elects coverage under the
    Medicare supplement offered by the State and Education Employees
    Group Insurance Board, shall have the amount determined pursuant to
    subsection E of this section, or the premium rate of the health insurance
    benefit plan, whichever is less, paid by the Teachers’ Retirement System
    of Oklahoma. If the amount paid by the Teachers’ Retirement System
    of Oklahoma does not cover the full cost of the health insurance premium,
    the retired person shall pay the remaining amount if the retired person
    wants to continue the coverage.
D. The Teachers’ Retirement System shall pay the amount due pursuant to
the provisions of subsection C of this section as follows:
    1. For those individuals participating in plans provided through the
    State and Education Employees Group Insurance Act, payment shall be
                                                                           215
    made to the Board pursuant to the provisions of subsection I of this
    section; or
    2. For those individuals participating in plans provided through a
    participating education employer of the Teachers’ Retirement System
    of Oklahoma other than a health insurance plan offered pursuant to the
    State and Education Employees Group Insurance Act, payment shall be
    made to the education employer.
E. Beginning July 1, 2000, the maximum benefit payable by the Teachers’
Retirement System of Oklahoma on behalf of a retired person toward said
person’s monthly premium for health insurance shall be determined in
accordance with the following schedule:
                                                 Less than 25 years
Average salary                                   but greater than     Greater than
used for determining       Less than 15 years 14.99 years of          24.99 years of
retirement allowance       of creditable service creditable service   creditable service

Less than $20,000.00           $103.00             $104.00              $105.00
Less than $30,000.00 but
greater than $19,999.99        $102.00             $103.00              $104.00
Less than $40,000.00 but
greater than $29,999.99        $101.00             $102.00              $103.00
$40,000.00 or greater          $100.00             $101.00              $102.00

     For plans offered by the State and Education Employees Group Insurance
Board, the amount paid pursuant to this subsection shall first be applied to
the prescription drug coverage premium, if any. Any remaining amounts
shall be applied towards the medical coverage premium.
F. If a person retires and begins to receive benefits from the Teachers’
Retirement System of Oklahoma or terminates service and has a vested
benefit with the Teachers’ Retirement System of Oklahoma, the person may
elect, in the manner provided in subsection A of this section, to participate
in the dental insurance plan offered through the State and Education
Employees Group Insurance Act. The person shall pay the full cost of the
dental insurance.
G. Those persons who are receiving benefits from the Teachers’ Retirement
System of Oklahoma and have health insurance coverage which on the
operative date of this section is being paid by the education entity from
which the person retired shall make the election required in subsection A of
this section within thirty (30) days of the termination of said health insurance
coverage. The person making the election shall give the Board certified
documentation satisfactory to the Board of the termination date of the other
health insurance coverage.

216
H. Dependents of a deceased education employee who was on active work
status or on a disability leave at the time of death or of a participating
retirant or of any person who has elected to receive a vested benefit under
the Teachers’ Retirement System of Oklahoma may continue the health and
dental insurance benefits in force provided said dependents pay the full cost
of such insurance and they were covered as eligible dependents at the time
of such death and such election is made within thirty (30) days of date of
death. The eligibility for said benefits shall terminate for the surviving
children when said children cease to qualify as dependents.
I. The amounts required to be paid by the Teachers’ Retirement System of
Oklahoma pursuant to this section shall be forwarded no later than the tenth
day of each month following the month for which payment is due by the
Board of Trustees of the Teachers’ Retirement System of Oklahoma to the
State and Education Employees Group Insurance Board for deposit in the
Education Employees Group Insurance Reserve Fund.
J. The Teachers’ Retirement System of Oklahoma shall provide the State
and Education Employees Group Insurance Board information concerning
the employers of retired and vested members necessary to allow the State
and Education Employees Group Insurance Board to track eligibility for
continued coverage.
K. Upon retirement from employment with the Board of Regents of the
University of Oklahoma, any person who is or was employed at the George
Nigh Rehabilitation Institute and who transferred employment pursuant to
Section 3427 of Title 70 of the Oklahoma Statutes, any person who was
employed at the Medical Technology and Research Authority and who
transferred employment pursuant to Section 7068 of this title, and any person
who is a member of the Oklahoma Law Enforcement Retirement System
pursuant to the authority of Section 2-314 of Title 47 of the Oklahoma
Statutes may participate in the benefits authorized by the provisions of the
State and Education Employees Group Insurance Act for retired participants,
including health, dental and life insurance benefits, if such election to
participate is made within thirty (30) days from the date of termination of
employment. Life insurance benefits for any such person who transferred
employment shall not exceed the coverage the person had at the time of
such transfer. Retirees who are persons transferred employment and who
participate pursuant to this paragraph shall pay the premium for elected benefits
less any amounts paid by the retirement system pursuant to this section.




                                                                             217
         Oklahoma Education Lottery Trust Fund Legislation
         Teachers’ Retirement System of Oklahoma Provision

House Bill 1020 (2005):
    There is hereby appropriated to the State Board of Education from any
monies not otherwise appropriated from the Oklahoma Education Lottery
Trust Fund of the State Treasury, the sum of Three Million One Hundred
Thirteen Thousand Five Hundred Seventy-one Dollars ($3,113,571.00) or
so much thereof as may be necessary for transfer to the Teachers’ Retirement
System Dedicated Revenue Revolving Fund.




218
                               INDEX

A
Absence 48
  extension of TRS membership 48
  termination 48
Actuarial tables 84
Address change 11
Adjunct service 44
Administrative Operations 3
Administrative rules 10
Annual Report of Employment 68

B
Beneficiary designation 83
  divorce 53
Benefits 47
Board of Trustees 3

C
Changes 11
  address, name, district 11
  retirement benefit corrections 90
Charter school employees 20
CLEET 33
Compensation
  corrections 65
  increase percentage 69
  level election
     1995-96 school year 64
     service before 7/1/95 63
  requirements 22, 59
Contracts bought up by employer 69
Contributions 59, 60
  deductions procedure 66
  employee contributions paid by employer 65
  employee rates 60
  employer rates 63
  matching funds 65
  monthly remittance reports 67
  remittance reports 67
  Worker's Compensation 69
                                               219
Copies 14
Cost to purchase 25
  Military service credit 37
  Out-of-state service 40

D
Death Benefits. See Survivor Benefits
Disability retirement 85, 87
  benefit payments 88
  conversion to Option 2 88
  discontinuance 87
  excess earnings 89
  Medical Board review 86
  return to work 88, 93
Distributions 12

E
Education associations 19
Eligibility 21
Extension of membership 48

F
Family leave 43

G
General Operations 15
Grievances 6

I
Information requests 9
Insurance 112
  eligibility 114
  non-participating employers 113
  post-retirement employment 113
  premium supplement 112
  state plan 112
Investments 6, 108
  assets allocation 111
  cash equivalents 112
  guidelines 109
  policy 108
IRAs 42


220
IRS
  Code 12
  qualification rules 13

M
Medical Board 4
 disability review 86
Membership 15
 charter school employees 20
 contributions 59
 date 18
 education associations 19
 eligibility 17
 extension, absence 48
 mandatory 16
 optional 16
 termination 47
 vesting 47
Military service 35
 after 7/1/43 36
 after TRS retirement 37
 application for credit 37
 combined with Oklahoma service 36
 cost 37
 limits 36
 restrictions 38

O
Oklahoma Teachers' Deferred Savings Incentive Plan 107
  contributions 107
OPERS service 29
  transfer from TRS 33
  transfer to TRS 29
Out-of-state service 38
  after 7/1/43 38
  application for credit 39
  combined with Oklahoma service 39
  continuous, consecutive 39
  cost 40
  limits 39
  restrictions 40




                                                         221
P
Partial Lump Sum 80, 82
Post-retirement employment 91
  benefit payments 97
  break after retirement 92
  definitions 91
  disabled retiree 93
  earnings limits 92
     repayment of benefits 94
     special waivers 95
  insurance 113
  permissible employment 92
  remitting agencies reports 95
  repayment of benefits 94
  return to work 95
  W-2P tax statements 94
Probate waivers 52
Purchase cost 25
  military service credit 37
  out-of-state service 40

Q
Qualified domestic order 115
  alternate payee 116
  contents 115
  definition 115
  ERISA 117
  filing 115
  termination of 116

R
Reinstatement 57
Reports 67
  annual employment report 68
  post-retirement employment 95
  remittance 67
Retirement 72
  $150 per month plan 89
  actuarial tables 84
  age & service determination 77
  age & service requirements 73
  beneficiary designation 83
  benefit changes/corrections 90

222
  benefit due-date 89
  benefit reduction
     offset to pay judgment/settlement 14
  birth date verification 75
  date 73, 74
  disability 85, 87
     benefit payments 88
     conversion to Option 2 88
     discontinuance 87
     excess earnings 89
     Medical Board review 86
     return to work 88
  eligibility 72
  IRS Code 90
  members 49
  minimum benefit 78
  OU & OSU benefit formula 76
  partial lump-sum payments 80
     option factors 82
  plans 78
     Options 2 & 3 pop-up 80
  post-retirement employment 91
  spousal consent 84
  standard benefit formula 75
Rollovers 57

S
Sabbaticals 25
Service credit 21
  adjunct 44
  after 7/1/43 24
  before membership 27
  CLEET 33
  cost to purchase
     military service credit 37
     Oklahoma service 25
     out-of-state service 40
  documentation of 42
  employer pick-up of purchase 44
  establishing other 23
  family leave 43
  fulltime 21
  halftime, partial 21
     combining fractional years 22

                                            223
  military 35
     after 7/1/43 36
     after TRS retirement 37
     application for 37
     combined with Oklahoma Service 36
     cost to purchase 37
     limits 36
  other Oklahoma retirement systems 28
  out-of-state 38
     after 7/1/43 38
     application for 39
     combined with Oklahoma service 39
     continuous, consecutive 39
     limits 39
     restrictions 40
  re-establishing withdrawn service 34
  requirements 21
  sick leave 40
     10-year averaging 41
     verification 41
  substitute teaching 24
  transfer from OPERS 29
  transfer to OPERS 31
Service retirement 72
Sick leave service credit 40
  10-year averaging 41
  verification 41
Substitute teaching 24
Survivor benefits 50
  death after retirement 51, 84
  death before retirement 50
     return of contributions 50
  monthly annuity in lieu of 51
  payments to beneficiaries 51

T
Tax-sheltered annuities 98
  computation 102
  contributions 100
  Deferred Savings Incentive Plan 107
  distributions 102
  eligibility 99
  requisites 99
  rollovers 106
  withdrawals 104
224
Termination
  credit 70
  of membership for non-eligible person 49
Transfers
  from OPERS to TRS 29
  to OPERS from TRS 31

V
Verification
  prior Oklahoma service 27
  sick leave 41
Vesting 47

W
Waiver 34
 probate 52
 revocation of $7800 waiver 34
Withdrawals 34, 54
 effect 57
 eligible person 54
 false affidavits 56
 optional members 56
 refunds of contributions 57
 reinstatement 57
 rollovers 57




                                             225
      Notes




226

				
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