Bill Text For SB0683 - House Floor Version

 1|              HOUSE OF REPRESENTATIVES - FLOOR VERSION                 |
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 2|                          STATE OF OKLAHOMA                            |
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 3|             1st Session of the 58th Legislature (2021)                |
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 4|ENGROSSED SENATE                                                       |
  |BILL NO. 683                         By: Kidd of the Senate            |
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  |                                         and                           |
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  |                                         McBride of the House          |
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 9|       An Act relating to teachers' retirement; amending 70            |
  |       O.S. 2011, Section 17-103, as amended by Section 1,             |
10|       Chapter 141, O.S.L. 2019 (70 O.S. Supp. 2020, Section           |
  |       17-103), which relates to membership in the Teachers'           |
11|       Retirement System of Oklahoma; modifying requirement            |
  |       for nonclassified optional personnel to join System;            |
12|       removing requirement for permitting certain                     |
  |       contributions; authorizing certain nonclassified                |
13|       optional personnel to join System upon hiring;                  |
  |       updating statutory language; specifying procedures              |
14|       for nonclassified optional personnel to join or opt             |
  |       out of System; specifying certain required                      |
15|       contributions be made by certain employees and                  |
  |       employers; construing provision; specifying election            |
16|       to opt out of System be permanent; providing                    |
  |       exception; and requiring nonclassified optional                 |
17|       personnel make certain election to participate in               |
  |       System.                                                         |
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20|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:                  |
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21|    SECTION 1.     AMENDATORY     70 O.S. 2011, Section 17-103, as     |
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22|amended by Section 1, Chapter 141, O.S.L. 2019 (70 O.S. Supp. 2020,    |
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23|Section 17-103), is amended to read as follows:                        |
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arsid15149397 SB683 HFLR                                           Page 1
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 1|    Section 17-103.  Except as provided in the Alternate Retirement    |
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 2|Plan for Comprehensive Universities Act, the membership of the         |
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 3|retirement system shall consist of the following:                      |
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 4|    (1) A.  All classified personnel shall become members of the       |
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 5|retirement system as a condition of their employment;                  |
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 6|    (2)  All B.  For the period from August 2, 1969, to the            |
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 7|effective date of this act, all full-time nonclassified optional       |
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 8|personnel regularly employed for more than one (1) year may join the   |
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 9|Teachers' Retirement System of Oklahoma subject to the rules and       |
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10|regulations adopted pursuant to this act.  Subject to the outcome of   |
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11|the private letter ruling request (2003) submitted by the Board of     |
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12|Trustees to the Internal Revenue Service (2001), the retirement        |
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13|system shall permit eligible nonclassified optional personnel who      |
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14|have ceased to make otherwise required employee contributions after    |
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15|having made an election to become a member of the retirement system    |
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16|to resume employee contributions.  No service shall be credited to     |
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17|any such member for any period of time during which employee           |
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18|contributions were not made; the Teachers' Retirement System.  On or   |
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19|after the effective date of this act, all nonclassified optional       |
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20|personnel regularly employed for twenty (20) hours or more per week    |
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21|may join the System upon hiring, subject to the provisions of          |
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22|subsection C of this section and the rules and regulations adopted     |
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23|by the System pursuant to this act.                                    |
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arsid15149397 SB683 HFLR                                           Page 2
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 1|    (3)  All persons who shall become classified personnel or who      |
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 2|are regularly employed in any school system as new classified          |
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 3|personnel after July 1, 1943, hereof, shall become members of the      |
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 4|retirement system as a condition of their employment;                  |
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 5|    (4)  All other regular school employees may join the Teachers'     |
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 6|Retirement System subject to the rules and regulations as may be       |
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 7|adopted by the Board of Trustees of the Teachers' Retirement System;   |
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 8|    C.  1.  A nonclassified optional employee shall have thirty (30)   |
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 9|days from the initial date of hire to make a one-time irrevocable      |
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10|written election to opt out of participation in the System.  If an     |
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11|eligible employee fails to make an election within the thirty-day      |
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12|period, the eligible employee shall be deemed to participate in the    |
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13|System.                                                                |
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14|    2.  If an eligible employee elects to opt out of participation     |
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15|in the System, the employee shall not make any required employee       |
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16|contributions to the System and his or her employer shall not make     |
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17|any required employer contributions to the System.                     |
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18|    3.  If an eligible nonclassified optional employee elects to       |
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19|participate in the System, the employee shall make employee            |
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20|contributions to the System pursuant to Section 17-116.2 of this       |
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21|title and the employer shall make employer contributions to the        |
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22|System pursuant to Section 17-108.1 of this title.  Nothing in this    |
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23|paragraph shall be construed to prohibit the employer from making      |
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arsid15149397 SB683 HFLR                                           Page 3
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 1|the contribution of the employee to the System on behalf of the        |
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 2|employee.                                                              |
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 3|    4.  A nonclassified optional employee who opts out of              |
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 4|participation in the System shall be ineligible for future             |
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 5|participation in the System; provided, however, that if the employee   |
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 6|is hired for a classified position, he or she shall become a member    |
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 7|of the System pursuant to subsection A of this section but shall not   |
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 8|be eligible for prior service credit for service performed while       |
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 9|employed in a nonclassified position during which the employee opted   |
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10|out of participation in the System.                                    |
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11|    5.  Any nonclassified optional employee employed on the            |
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12|effective date of this act shall make an irrevocable written           |
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13|election to participate in or opt out of the System pursuant to        |
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14|paragraph 1 of this subsection.  If the employee fails to make an      |
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15|election within thirty (30) days from the effective date of this       |
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16|act, the employee shall be deemed to participate in the System,        |
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17|subject to the provisions of paragraph 3 of this subsection.           |
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18|    (5) D.  The Board of Trustees may, in its discretion, deny the     |
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19|right to become members to any class of members whose compensation     |
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20|is only partly paid by the state, or who is serving on a temporary     |
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21|or other than per annum basis, and it also may, in its discretion,     |
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22|make optional with members in any such class their individual          |
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23|entrance into the retirement system;.                                  |
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arsid15149397 SB683 HFLR                                           Page 4
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 1|    (6) E.  Should any member, with less than ten (10) years of        |
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 2|teaching service in Oklahoma, in any period of six (6) consecutive     |
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 3|years after becoming a member be absent from service more than five    |
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 4|(5) years, withdraw his or her contributions, retire or die, he or     |
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 5|she shall thereupon cease to be a member.  The provisions of this      |
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 6|paragraph shall not apply to any member of the Teachers' Retirement    |
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 7|System who has been a member of such classes of military services as   |
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 8|may be approved by the Board of Trustees, until a period of one and    |
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 9|one-half (1 1/2) years from date of termination of such service        |
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10|shall have elapsed; and.                                               |
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11|    (7) F.  Effective November 1, 2019, a retired member of the        |
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12|Teachers' Retirement System who becomes employed by the State          |
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13|Department of Education for the first time on or after November 1,     |
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14|2019, shall have the option to remain a member of the Teachers'        |
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15|Retirement System subject to any applicable limitations placed on      |
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16|retired members returning to work or may choose to participate in      |
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17|the Oklahoma Public Employees Retirement System as an active member.   |
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19|COMMITTEE REPORT BY: COMMITTEE ON BANKING, FINANCIAL SERVICES AND      |
  |PENSIONS, dated 03/29/2021 - DO PASS.                                  |
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arsid15149397 SB683 HFLR                                           Page 5
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