1| SENATE FLOOR VERSION | | February 20, 2017 | 2| AS AMENDED | | | 3|SENATE BILL NO. 428 By: Smalley | | | 4| | | | 5| | | | 6| An Act relating to teacher retirement; amending 70 | | O.S. 2011, Section 17-116.10, as amended by Section | 7| 4, Chapter 101, O.S.L. 2013 (70 O.S. Supp. 2016, | | Section 17-116.10), which relates to post-retirement | 8| employment; conforming language; excluding certain | | employees from retirement classification; allowing | 9| certain retired teachers to return at full pay; | | providing an effective date; and declaring an | 10| emergency. | | | 11| | | | 12| | | | 13|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: | | | 14| SECTION 1. AMENDATORY 70 O.S. 2011, Section 17-116.10, | | | 15|as amended by Section 4, Chapter 101, O.S.L. 2013 (70 O.S. Supp. | | | 16|2016, Section 17-116.10), is amended to read as follows: | | | 17| Section 17-116.10. A. Subject to the requirements of Section | | | 18|6-101.2 of this title and any other applicable requirements of law, | | | 19|a member may enter into post
-retirement employment with a public | | | 20|school of Oklahoma and still receive monthly retirement benefits | | | 21|subject to the following limitations: | | | 22| 1. A retired member is not eligible to be employed by the | | | 23|public schools of Oklahoma, in any capacity, for sixty (60) calendar | | | 24|days between the retiree's last day of pre -retirement | | | arsid11298760 SENATE FLOOR VERSION - SB428 SFLR Page 1 ___________________________________________________________________________
-education employment and any post-retirement public-education | | | 2|employment. For purposes of this section, the term "last day of | | | 3|pre -retirement employment" shall mean the last day the employee is | | | 4|required to be physically present on the job to complete the terms | | | 5|of the employment contract or agreement. An employee on paid leave | | | 6|is still considered to be employed for purposes of this section. | | | 7|Employment under any conditions during this time, volunteer services | | | 8|for the purpose of obtaining a paid position at a later date, or | | | 9|payment at a later time for services performed during this time | | | 10|period shall cause the forfeiture of all retirement benefits | | | 11|received during the period; | | | 12| 2. Unless otherwise provided in paragraph 3 of this subsection, | | | 13|earnings from the public schools may not exceed one-half (1/2) of | | | 14|the member's final average salary used in computing retirement | | | 15|benefits, or the Earnings Limitation for employees allowed by the | | | 16|Social Security Administration, whichever is less. For retired | | | 17|members under the age of sixty-two (62) years, the limit on allowed | | | 18|earnings from the public schools of Oklahoma for employment for the | | | 19|performance of duties ordinarily performed by classified or | | | 20|nonclassified personnel shall be the lesser of Fifteen Thousand | | | 21|Dollars ($15,000.00) or one-half (1/2) of the member's final average | | | 22|salary used in computing retirement benefits unless the earnings | | | 23|limitation allowed by the Social Security Administration would be | | | 24|greater than Fifteen Thousand Dollars ($15,000.00). For retired | | | arsid11298760 SENATE FLOOR VERSION - SB428 SFLR Page 2 ___________________________________________________________________________
1|members sixty-two (62) years of age or older the limit on allowed | | | 2|earnings from the public schools of Oklahoma for the performance of | | | 3|duties ordinarily performed by classified or nonclassified personnel | | | 4|shall be the lesser of Thirty Thousand Dollars ($30,000.00) or | | | 5|one-half (1/2) of the member's final average salary used in | | | 6|computing retirement benefits. For purposes of this paragraph, the | | | 7|following shall apply: | | | 8| a. earnings shall mean "regular annual compensation" as | | | 9| defined in paragraph (25) of Section 17-101 of this | | | 10| title, and shall include any payment by a public | | | 11| school for services rendered by a retired member who | | | 12| is employed for any purpose whatsoever. Supplemental | | | 13| retirement payments paid by a former public school | | | 14| employer pursuant to subsection 9 of Section 17-105 of | | | 15| this title or other state law shall not be considered | | | 16| as earnings, | | | 17| b. the Earnings Limitation for employees allowed by the | | | 18| Social Security Administration to workers between the | | | 19| age of sixty-two (62) years and sixty-five (65) years | | | 20| shall apply to retired members below the age of | | | 21| sixty-two (62) years, | | | 22| c. the limit on allowed earnings from the public schools | | | 23| shall be automatically adjusted effective the first | | | 24| day of January of each year to reflect the current | | | arsid11298760 SENATE FLOOR VERSION - SB428 SFLR Page 3 ___________________________________________________________________________
1| Earnings Limitation for employees as determined from | | | 2| time to time by the Social Security Administration, | | | 3| d. the earnings limit for the calendar year in which a | | | 4| member retires shall be one-twelfth (1/12) of the | | | 5| annual limit multiplied by the number of months the | | | 6| member is eligible to work and receive payments from | | | 7| the public schools of Oklahoma, | | | 8| e. earnings in excess of the maximum limit on allowed | | | 9| earnings from public schools of Oklahoma shall result | | | 10| in a loss of future retirement benefits for the year | | | 11| the post
-retirement employment was performed of One | | | 12| Dollar ($1.00) for each One Dollar ($1.00) earned over | | | 13| the maximum allowed earnings amount, | | | 14| f. for those members age seventy (70) years and over, the | | | 15| earnings in excess of the maximum limit allowed | | | 16| earnings from public schools of Oklahoma shall be | | | 17| one-half (1/2) the member's final average salary used | | | 18| in computing retirement benefits. However, any | | | 19| retired member receiving benefits from the Retirement | | | 20| System who reached age seventy (70) years prior to | | | 21| July 1, 1991, shall not be restricted by the earnings | | | 22| limits pursuant to this subparagraph until January 1, | | | 23| 1994. To qualify for the provisions of this | | | 24| subparagraph, the member must be employed less than | | | arsid11298760 SENATE FLOOR VERSION - SB428 SFLR Page 4 ___________________________________________________________________________
1| one-half (1/2) time compared to other full-time | | | 2| employees in similar positions; | | | 3| 3. Notwithstanding paragraph 2 of this subsection, a retired | | | 4|classified or nonclassified member who has been retired for | | | 5|thirty-six (36) or more months and who is employed by a public | | | 6|school to perform duties ordinarily performed by classified or | | | 7|nonclassified personnel shall be able to receive annualized earnings | | | 8|from the public school with no reduction in retirement benefits | | | 9|regardless of the amount of annualized earnings. For a period of | | | 10|three (3) years beginning July 1, 2017, members who retired as | | | 11|active classroom teachers, who have been retired and receiving a | | | 12|benefit for at least one year, and who have not been employed | | | 13|full-time by any public school during that one-year period, shall be | | | 14|eligible to be re-employed as an active classroom teacher in common | | | 15|or career tech school districts, with no limitations on earnings. | | | 16|The one-year period starts with the retiree's last day of | | | 17|preretirement public education employment. Members returning under | | | 18|this section shall not be subject to any earning limitations | | | 19|following the end of the three-year period described in this | | | 20|paragraph; and | | | 21| 4. A member shall be considered to be employed by a school | | | 22|district to perform the duties ordinarily performed by classified or | | | 23|nonclassified personnel if the member is hired by the school | | | 24|district in the member's individual capacity to perform the duties | | | arsid11298760 SENATE FLOOR VERSION - SB428 SFLR Page 5 ___________________________________________________________________________
1|or if the member performs the duties through employment with a | | | 2|proprietorship, partnership, corporation, limited liability company | | | 3|or partnership, or any other business structure that has agreed or | | | 4|contracted to provide the services to the school district. | | | 5| B. A public school district that employs a retired member shall | | | 6|be required to make contributions to the System for the retired | | | 7|member in an amount as required in Section 17-108.1 and in paragraph | | | 8|3 of subsection B of Section 17-116.2 of this title. | | | 9| C. For purposes of this section, post
-retirement employment of | | | 10|less than one thousand (1,000) hours per year with the Governor, the | | | 11|State Senate, the House of Representatives or the Legislative | | | 12|Service Bureau shall not be considered as post -retirement employment | | | 13|with a public school of Oklahoma. | | | 14| D. The Board of Trustees of the Teachers' Retirement System of | | | 15|Oklahoma shall promulgate such rules as are necessary to implement | | | 16|the provisions of this section. | | | 17| E. A member who has entered into post -retirement employment | | | 18|with a participating employer of the Teachers' Retirement System of | | | 19|Oklahoma must fully comply with all the provisions of the rules | | | 20|promulgated by the Board of Trustees pursuant to this section in | | | 21|order to continue receiving his or her monthly retirement benefit. | | | 22| SECTION 2. This act shall become effective July 1, 2017. | | | 23| SECTION 3. It being immediately necessary for the preservation | | | 24|of the public peace, health or safety, an emergency is hereby | | | arsid11298760 SENATE FLOOR VERSION - SB428 SFLR Page 6 ___________________________________________________________________________
1|declared to exist, by reason whereof this act shall take effect and | | | 2|be in full force from and after its passage and approval. | | | 3|COMMITTEE REPORT BY: COMMITTEE ON RETIREMENT AND INSURANCE | |February 20, 2017 - DO PASS AS AMENDED | 4| | | | 5| | | | 6| | | | 7| | | | 8| | | | 9| | | | 10| | | | 11| | | | 12| | | | 13| | | | 14| | | | 15| | | | 16| | | | 17| | | | 18| | | | 19| | | | 20| | | | 21| | | | 22| | | | 23| | | | 24| | | | arsid11298760 SENATE FLOOR VERSION - SB428 SFLR Page 7© 2010-18 eCapitol, LLC. ALL RIGHTS RESERVED.
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