Bill Text For SB0428 - Senate Floor Version

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