Bill Text For SB0772 - 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 57th Legislature (2019)                |
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 4|ENGROSSED SENATE                                                       |
  |BILL NO. 772                         By: Pugh of the Senate            |
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  |                                         and                           |
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  |                                         Baker of the House            |
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 8|                                                                       |
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 9|       An Act relating to teachers' retirement; amending 70            |
  |       O.S. 2011, Sections 17-105, as last amended by                  |
10|       Section 2, Chapter 248, O.S.L. 2018 (70 O.S. Supp.              |
  |       2018, Section 17-105), 17-106, as last amended by               |
11|       Section 1, Chapter 312, O.S.L. 2017 (70 O.S. Supp.              |
  |       2018, Section 17-106), 17-108.2, 17-116.2C, as                  |
12|       amended by Section 3, Chapter 248, O.S.L. 2018 (70              |
  |       O.S. Supp. 2018, Section 17-116.2C), and 17-116.9,              |
13|       17-120, as amended by Section 5, Chapter 129, O.S.L.            |
  |       2016 (70 O.S. Supp. 2018, Section 17-120), which                |
14|       relate to retirement, personnel, picked up                      |
  |       contributions, computation of retirement benefits,              |
15|       prior teaching service credit and submission of                 |
  |       contributions; modifying provision for certain                  |
16|       incapacitated members' benefits; updating references;           |
  |       deleting obsolete language; modifying person who may            |
17|       receive benefit of deceased retired member; deleting            |
  |       language authorizing Board of Trustees member                   |
18|       reappointment after term of office expires; modifying           |
  |       Board of Trustee membership; authorizing Board to               |
19|       retain actuarial firm; requiring Board to use an                |
  |       actuarial firm to make certain investigation;                   |
20|       modifying persons eligible for certain credit;                  |
  |       modifying amount of certain credit; modifying                   |
21|       calculation method of certain compensation; updating            |
  |       statutory references; repealing 70 O.S. 2011, Section           |
22|       17-116, which relates to certain personnel rehiring;            |
  |       providing an effective date; and declaring an                   |
23|       emergency.                                                      |
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24|                                                                       |
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arsid163600 SB772 HFLR                                             Page 1
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 1|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:                  |
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 2|    SECTION 1.     AMENDATORY     70 O.S. 2011, Section 17-105, as     |
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 3|last amended by Section 2, Chapter 248, O.S.L. 2018 (70 O.S. Supp.     |
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 4|2018, Section 17-105), is amended to read as follows:                  |
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 5|    Section 17-105.  (1)  (a)  Any member who has attained age         |
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 6|fifty-five (55) or who has completed thirty (30) years of creditable   |
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 7|service, as defined in Section 17-101 of this title, or for any        |
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 8|person who initially became a member prior to July 1, 1992,            |
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 9|regardless of whether there were breaks in service after July 1,       |
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10|1992, whose age and number of years of creditable service total        |
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11|eighty (80) may be retired upon proper application for retirement on   |
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12|forms established by the System and executing a retirement contract.   |
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13| Such a retirement date will also apply to any person who became a     |
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14|member of the sending system as defined in this act, prior to July     |
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15|1, 1992, regardless of whether there were breaks in service after      |
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16|July 1, 1992.  Any person who became a member after June 30, 1992,     |
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17|but prior to November 1, 2011, whose age and number of years of        |
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18|creditable service total ninety (90) may be retired upon proper        |
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19|application for retirement and executing a retirement contract.  Any   |
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20|person who becomes a member on or after November 1, 2011, who          |
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21|attains the age of sixty-five (65) years or who reaches a normal       |
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22|retirement date pursuant to subparagraph (d) of paragraph (24) of      |
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23|Section 17-101 of this title having attained a minimum age of sixty    |
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24|(60) years may be retired upon proper application for retirement and   |
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arsid163600 SB772 HFLR                                             Page 2
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 1|executing a retirement contract.  The application shall be filed on    |
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 2|the form provided by the Board of Trustees for this purpose, not       |
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 3|less than sixty (60) days before the date of retirement, provided      |
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 4|that the Executive Director may waive the sixty-day deadline for       |
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 5|good cause shown as defined by the Board.                              |
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 6|         1.    The employer shall provide the System with the          |
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 7|              following information for a retiring member, no later    |
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 8|              than the fifteenth day of the month of retirement:       |
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 9|              last day physically on the job; last day on payroll;     |
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10|              any regular compensation not already reported to the     |
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11|              System; and final unused sick leave balance.             |
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12|         2.    Failure to submit this information by the deadline,     |
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13|              or errors in submitted information that result in a      |
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14|              disqualification of retirement eligibility shall be      |
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15|              the responsibility of the employer.  In cases where      |
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16|              the error results in disqualification of retirement      |
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17|              eligibility, it is the employer's responsibility to      |
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18|              reemploy the member, or retain the member on the         |
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19|              payroll, for the time period required to reach           |
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20|              eligibility, not exceeding two (2) months.               |
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21|    (b)  An individual who becomes a member of the Teachers'           |
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22|Retirement System on or after November 1, 2017, shall be employed by   |
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23|the public schools, state colleges or universities of Oklahoma for a   |
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24|minimum of seven (7) years and be a contributing member of the         |
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arsid163600 SB772 HFLR                                             Page 3
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 1|Teachers' Retirement System of Oklahoma for a minimum of seven (7)     |
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 2|years to qualify for monthly retirement benefits from the Teachers'    |
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 3|Retirement System of Oklahoma.                                         |
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 4|    (c)  Any member with seven (7) or more years of Oklahoma           |
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 5|teaching service and whose accumulated contributions during such       |
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 6|period have not been withdrawn shall be given an indefinite            |
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 7|extension of membership beginning with the sixth year following his    |
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 8|or her last contributing membership and shall become eligible to       |
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 9|apply for retirement and be retired upon attaining age fifty-five      |
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10|(55).                                                                  |
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11|    (2)  An unclassified optional member who has retired or who        |
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12|retires at sixty-two (62) years of age or older or whose retirement    |
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13|is because of disability shall have his or her minimum retirement      |
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14|benefits calculated on an average salary of Five Thousand Three        |
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15|Hundred Fifty Dollars ($5,350.00) or, if a larger monthly allowance    |
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16|would result, an amount arrived at pursuant to application of the      |
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17|formula prescribed herein.                                             |
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18|    (3)  No member shall receive a lesser retirement benefit than he   |
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19|or she would have received under the law in effect at the time he or   |
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20|she retired.  Any individual under the Teachers' Retirement System,    |
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21|who through error in stating the title of the position which he or     |
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22|she held, may, at the discretion of the Board of Trustees, be          |
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23|changed from the nonclassified optional group to the classified        |
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24|group for the purpose of calculating retirement benefits.              |
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arsid163600 SB772 HFLR                                             Page 4
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 1|    Any individual regardless of residence, who has a minimum of ten   |
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 2|(10) years of teaching in Oklahoma schools prior to July 1, 1943, or   |
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 3|who taught in Oklahoma schools prior to 1934 and thereafter taught a   |
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 4|minimum of ten (10) years and who does not qualify under the present   |
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 5|retirement System, or who has a minimum of thirty (30) years of        |
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 6|teaching in Oklahoma schools and has reached seventy (70) years of     |
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 7|age prior to July 1, 1984, and is not otherwise eligible to receive    |
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 8|any benefits from the retirement system shall receive a minimum of     |
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 9|One Hundred Fifty Dollars ($150.00) per month in retirement benefits   |
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10|from the Teachers' Retirement System of Oklahoma plus any general      |
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11|increase in benefits for annuitants as may be provided hereafter by    |
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12|the Legislature.  Each individual must apply to the Teachers'          |
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13|Retirement System for such benefit and provide evidence to the         |
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14|Teachers' Retirement System that the service was actually rendered.    |
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15|The surviving spouse of any person who made application for the        |
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16|benefit provided for by this paragraph during his or her lifetime      |
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17|but did not receive said the benefit may submit an application to      |
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18|the System for payment of said the benefit for those months during     |
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19|the lifetime of the deceased person that he or she was eligible for    |
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20|but did not receive the benefit.  Upon approval of the application     |
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21|by the Board of Trustees, the benefit shall be paid to the surviving   |
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22|spouse in one lump sum.                                                |
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arsid163600 SB772 HFLR                                             Page 5
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 1|    (4)  The value of each year of prior service is the total          |
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 2|monthly retirement benefit divided by the number of years of           |
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 3|creditable service.                                                    |
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 4|    (5)  Upon application of a member who is actively engaged in       |
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 5|teaching in Oklahoma or his or her employer, any member who has been   |
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 6|a contributing member for ten (10) years may be retired by the         |
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 7|System subsequent to the execution and filing thereof, on a            |
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 8|disability retirement allowance, provided that it is found by the      |
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 9|Medical Board after medical examination of such member by a duly       |
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10|qualified physician that such member is mentally or physically         |
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11|incapacitated for further performance of duty, that such incapacity    |
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12|is likely to be permanent, and that such member should be retired.     |
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13|The System shall rely on and give full consideration to the            |
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14|conclusions and recommendations in the certified written report of     |
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15|the Medical Board of the Teachers' Retirement System regarding the     |
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16|disability application of such member.  If the Medical Board does      |
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17|not find that a member applying for disability retirement is           |
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18|mentally or physically incapacitated for performance of duty or        |
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19|otherwise eligible for a disability retirement, the application        |
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20|shall then be considered by the Board of Trustees.  If a member is     |
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21|determined to be eligible for disability benefits pursuant to the      |
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22|Social Security System, then such determination shall entitle the      |
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23|member to the authorized disability retirement allowance provided by   |
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24|law.  For members who are not eligible for disability benefits         |
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arsid163600 SB772 HFLR                                             Page 6
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 1|pursuant to the Social Security System, the Board of Trustees and      |
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 2|the Medical Board shall apply the same standard for which provision    |
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 3|is made in the first two sentences of this subsection for              |
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 4|determining the eligibility of a person for such disability benefits   |
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 5|in making a determination of eligibility for disability benefits as    |
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 6|authorized by this subsection.                                         |
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 7|    (6)  (a)  A member who at the time of retirement has been found    |
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 8|to be permanently physically or mentally incapacitated to teach        |
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 9|school perform the necessary duties to continue in his or her          |
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10|current position shall receive a minimum monthly retirement payment    |
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11|for life or until such time as the member may be found to be           |
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12|recovered to the point where he or she may return to teaching.  Any    |
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13|member retired before July 1, 1992, shall be eligible to receive the   |
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14|monthly retirement allowance herein provided, but such payment shall   |
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15|not begin until the first payment due him or her after July 1, 1992,   |
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16|and shall not be retroactive.  The Board of Trustees is empowered to   |
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17|make such rules and regulations as it considers proper to preserve     |
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18|equity in retirements under this provision, which shall include a      |
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19|provision to protect the rights of the member's spouse.                |
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20|    (b)  A member who has qualified for retirement benefits under      |
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21|disability retirement shall have the total monthly payment deducted    |
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22|from his or her accumulated contributions plus interest earned and     |
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23|any money remaining in the member's account after the above            |
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24|deductions at the death of the member shall be paid in a lump sum to   |
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arsid163600 SB772 HFLR                                             Page 7
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 1|the beneficiary or to the estate of the member.  Provided, if the      |
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 2|deceased disabled member had thirty (30) years or more of creditable   |
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 3|service and the death occurred after June 30, 1981, and death          |
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 4|occurred prior to the disabled member receiving twelve monthly         |
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 5|retirement payments, a surviving spouse may elect to receive the       |
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 6|retirement benefit to which the deceased member would have been        |
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 7|entitled at the time of death under the Option 2 Plan of Retirement    |
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 8|provided for in subsection (8) of this section in lieu of the death    |
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 9|benefit provided for in this subsection and in subsection (12) of      |
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10|this section.                                                          |
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11|    (c)  Once each year the System may require any disabled            |
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12|annuitant who has not yet attained the age of sixty (60) years to      |
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13|undergo a medical examination, such examination to be made at the      |
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14|place of residence for said the disabled annuitant or other place      |
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15|mutually agreed upon by a physician or physicians designated by the    |
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16|System.  Should any disabled annuitant who has not yet attained the    |
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17|age of sixty (60) years refuse to submit to at least one medical       |
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18|examination in any such year by a physician or physicians designated   |
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19|by the System his or her allowance may be discontinued until he or     |
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20|she submits to such examination.                                       |
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21|    (d)  Should the Medical Board report and certify to the Board of   |
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22|Trustees that such disabled annuitant is engaged in or is able to      |
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23|engage in a gainful occupation paying more than the difference         |
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24|between his or her retirement allowance and the average final          |
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arsid163600 SB772 HFLR                                             Page 8
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 1|compensation, and should the Board of Trustees concur in such report   |
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 2|then the amount of his or her pension shall be reduced to an amount    |
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 3|which, together with his or her retirement allowance and that amount   |
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 4|earnable by him or her, shall equal the amount of his or her average   |
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 5|final compensation.  Should his or her earning capacity be later       |
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 6|increased, the amount of his or her pension may be further modified,   |
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 7|provided the new pension shall not exceed that amount of the pension   |
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 8|originally granted nor an amount, which when added to the amount       |
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 9|earnable by the member, together with his or her annuity, equals the   |
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10|amount of his or her average final compensation.                       |
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11|    (e)  Should a disabled annuitant be restored to active service,    |
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12|his or her disability retirement allowance shall cease and he or she   |
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13|shall again become a member of the Teachers' Retirement System and     |
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14|shall make regular contributions as required under this article.       |
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15|The unused portion of his or her accumulated contributions shall be    |
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16|reestablished to his or her credit in the Teachers' Savings Fund.      |
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17|Any such prior service certificates on the basis of which his or her   |
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18|service was computed at the time of his or her retirement shall be     |
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19|restored to full force and effect.                                     |
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20|    (7)  Should a member before retirement under Section 1-101 et      |
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21|seq. of this title make application for withdrawal duly filed with     |
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22|the Board of Trustees and approved by it System, not earlier than      |
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23|four (4) months after the date of termination of such service as a     |
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24|teacher, the contribution standing to the credit of his or her         |
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arsid163600 SB772 HFLR                                             Page 9
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 1|individual account in the Teachers' Savings Fund shall be paid to      |
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 2|him or her or, in the event of his or her death before retirement,     |
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 3|shall be paid to such person or persons as he or she shall have        |
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 4|nominated by written designation, duly executed and filed with the     |
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 5|Board of Trustees System; provided, however, if there be no            |
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 6|designated beneficiary surviving upon such death, such contributions   |
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 7|shall be paid to his or her administrators, executors, or assigns,     |
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 8|together with interest as hereinafter provided.  In lieu of a          |
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 9|lump-sum settlement at the death of the member, the amount of money    |
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10|the member has on deposit in the Teachers' Savings Fund and the        |
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11|money the member has on deposit in the Teachers' Deposit Fund may be   |
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12|paid in monthly payments to a designated beneficiary, who must be      |
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13|the spouse, under the Maximum or Option 1 Plan of Retirement           |
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14|providing the monthly payment shall be not less than Twenty-five       |
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15|Dollars ($25.00) per month.  The monthly payment shall be the          |
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16|actuarial equivalent of the amount becoming due at the member's        |
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17|death based on the sex of the spouse and the age the spouse has        |
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18|attained at the last birthday prior to the member's death.  Provided   |
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19|further, if there be no designated beneficiary surviving upon such     |
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20|death, and the contributions standing to the credit of such member     |
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21|do not exceed Two Hundred Dollars ($200.00), no part of such           |
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22|contributions shall be subject to the payment of any expense of the    |
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23|last illness or funeral of the deceased member or any expense of       |
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24|administration of the estate of such deceased and the Board of         |
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arsid163600 SB772 HFLR                                             Page 10
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 1|Trustees System, upon satisfactory proof of the death of such member   |
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 2|and of the name or names of the person or persons who would be         |
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 3|entitled to receive such contributions under the laws of descent and   |
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 4|distribution of the state, may authorize the payment of accumulated    |
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 5|contributions to such person or persons.  A member terminating his     |
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 6|or her membership by withdrawal after June 30, 2003, shall have the    |
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 7|interest computed at a rate of interest determined by the Board of     |
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 8|Trustees and paid to him or her subject to the following schedule:     |
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 9|    (a)  If termination occurs within sixteen (16) years from the      |
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10|date membership began, fifty percent (50%) of such interest            |
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11|accumulations shall be paid.                                           |
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12|    (b)  With at least sixteen (16) but less than twenty-one (21)      |
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13|years of membership, sixty percent (60%) of such interest              |
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14|accumulations shall be paid.                                           |
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15|    (c)  With at least twenty-one (21) but less than twenty-six (26)   |
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16|years of membership, seventy-five percent (75%) of such interest       |
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17|accumulations shall be paid.                                           |
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18|    (d)  With at least twenty-six (26) years of membership, ninety     |
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19|percent (90%) of such interest accumulations shall be paid.            |
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20|    In case of death of an active member, the interest shall be        |
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21|calculated and restored to the member's account and paid to his or     |
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22|her beneficiary.                                                       |
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23|    (8)  (a)  In lieu of his or her retirement allowance payable       |
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24|throughout life for such an amount as determined under this section,   |
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arsid163600 SB772 HFLR                                             Page 11
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 1|the member may select a retirement allowance for a reduced amount      |
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 2|payable under any of the following options the present value of        |
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 3|which is the actuarial equivalent thereof.                             |
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 4|    (b)  A member may select the option under which he or she          |
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 5|desires to retire at the end of the school year in which he or she     |
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 6|attains age seventy (70) and said the option shall be binding and      |
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 7|cannot be changed.  Provided further that if a member retires before   |
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 8|age seventy (70), no election of an option shall be effective in       |
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 9|case an annuitant dies before the first payment due under such         |
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10|option has been received.                                              |
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11|    (c)  The first payment of any benefit selected shall be made on    |
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12|the first day of the month following approval of the retirement by     |
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13|the System.  If the named designated beneficiary joint annuitant       |
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14|under Option 2 or 3 dies at any time after the member's retirement     |
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15|date, but before the death of the member, the member shall return to   |
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16|the retirement benefit, including any post retirement benefit          |
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17|increases the member would have received had the member not selected   |
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18|Option 2 or 3 of this subsection.  The benefit shall be determined     |
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19|at the date of death of the designated beneficiary or July 1, 1994,    |
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20|whichever is later joint annuitant.  This increase shall become        |
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21|effective the first day of the month following the date of death of    |
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22|the designated beneficiary or July 1, 1994, whichever is later joint   |
  |                                                                       |
23|annuitant, and shall be payable for the member's remaining lifetime.   |
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24| The member shall notify the Teachers' Retirement System of Oklahoma   |
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arsid163600 SB772 HFLR                                             Page 12
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 1|of the death of the designated beneficiary joint annuitant in          |
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 2|writing.  In the absence of said the written notice being filed by     |
  |                                                                       |
 3|the member notifying the Teachers' Retirement System of Oklahoma of    |
  |                                                                       |
 4|the death of the designated beneficiary joint annuitant within six     |
  |                                                                       |
 5|(6) months of the date of death, nothing in this subsection shall      |
  |                                                                       |
 6|require the Teachers' Retirement System of Oklahoma to pay more than   |
  |                                                                       |
 7|six (6) months of retrospective benefits increase.                     |
  |                                                                       |
 8|    Option 1.  If he or she dies before he or she has received in      |
  |                                                                       |
 9|annuity payments the present value of his or her annuity as it was     |
  |                                                                       |
10|at the time of his or her retirement, the balance shall be paid to     |
  |                                                                       |
11|his or her legal representatives or to such person as he or she        |
  |                                                                       |
12|shall nominate by written designation duly acknowledged and filed      |
  |                                                                       |
13|with the Board of Trustees System at the time of his or her            |
  |                                                                       |
14|retirement; or                                                         |
  |                                                                       |
15|    Option 2.  A member takes a reduced retirement allowance for       |
  |                                                                       |
16|life.  Upon the death of the member the payments shall continue to     |
  |                                                                       |
17|the member's designated beneficiary joint annuitant for the life of    |
  |                                                                       |
18|the beneficiary joint annuitant.  The written designation of the       |
  |                                                                       |
19|beneficiary joint annuitant must be duly acknowledged and filed with   |
  |                                                                       |
20|the Board of Trustees System at the time of the member's retirement    |
  |                                                                       |
21|and, except as provided in paragraph (e) of this subsection, cannot    |
  |                                                                       |
22|be changed after the effective date of the member's retirement; or     |
  |                                                                       |
23|    Option 3.  A member receives a reduced retirement allowance for    |
  |                                                                       |
24|life.  Upon the death of the member one-half (1/2) of the retirement   |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 13
___________________________________________________________________________

 1|allowance paid the member shall be continued throughout the life of    |
  |                                                                       |
 2|the designated beneficiary joint annuitant.  A written designation     |
  |                                                                       |
 3|of a beneficiary joint annuitant must be duly acknowledged and filed   |
  |                                                                       |
 4|with the Board of Trustees System at the time of the member's          |
  |                                                                       |
 5|retirement and, except as provided in paragraph (e) of this            |
  |                                                                       |
 6|subsection, cannot be changed after the effective date of the          |
  |                                                                       |
 7|member's retirement; or                                                |
  |                                                                       |
 8|    Option 4.  Some other benefit or benefits shall be paid either     |
  |                                                                       |
 9|to the member or to such person or persons joint annuitant as he or    |
  |                                                                       |
10|she shall nominate, provided such other benefit or benefits,           |
  |                                                                       |
11|together with the reduced retirement allowance, shall be certified     |
  |                                                                       |
12|by the actuary to be of equivalent actuarial value to his or her       |
  |                                                                       |
13|retirement allowance and shall be approved by the Board of Trustees    |
  |                                                                       |
14|System.                                                                |
  |                                                                       |
15|    (d)  Provided that Option 2 and Option 3 shall not be available    |
  |                                                                       |
16|if the member's expected benefit is less than fifty percent (50%) of   |
  |                                                                       |
17|the lump-sum actuarial equivalent and the designated beneficiary       |
  |                                                                       |
18|joint annuitant is not the spouse of the member.                       |
  |                                                                       |
19|    (e)  A member who chose the maximum retirement benefit plan at     |
  |                                                                       |
20|the time of retirement may make a one-time election to choose either   |
  |                                                                       |
21|Option 2 or 3 and name the member's spouse as designated beneficiary   |
  |                                                                       |
22|joint annuitant if the member marries after making the initial         |
  |                                                                       |
23|election.  Such an election shall be made by July 1, 2011, or within   |
  |                                                                       |
24|one (1) year of the date of marriage, whichever is later.  The         |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 14
___________________________________________________________________________

 1|member shall provide proof of a member's good health before the        |
  |                                                                       |
 2|Board of Trustees System will permit a change to either Option 2 or    |
  |                                                                       |
 3|3 and the naming of a designated beneficiary joint annuitant.  A       |
  |                                                                       |
 4|medical examination conducted by a licensed physician is required      |
  |                                                                       |
 5|for purposes of determining good health.  Such examination must be     |
  |                                                                       |
 6|approved by the Medical Board.  The member shall be required to        |
  |                                                                       |
 7|provide proof of age for the new beneficiary joint annuitant.  The     |
  |                                                                       |
 8|Board of Trustees System shall adjust the monthly benefit to the       |
  |                                                                       |
 9|actuarially equivalent amount based on the new designated              |
  |                                                                       |
10|beneficiary's joint annuitant's age.  The Board of Trustees shall      |
  |                                                                       |
11|promulgate rules to implement the provisions of this subsection.       |
  |                                                                       |
12|    (f)  A member who retires after the effective date of this act     |
  |                                                                       |
13|and has selected a retirement allowance for a reduced amount payable   |
  |                                                                       |
14|under one of the options provided for in this subsection may make a    |
  |                                                                       |
15|one-time irrevocable election to select a different option within      |
  |                                                                       |
16|sixty (60) days of the member's retirement date.  The beneficiary or   |
  |                                                                       |
17|joint annuitant designated by the member at the time of retirement     |
  |                                                                       |
18|shall not be changed if the member makes the election provided for     |
  |                                                                       |
19|in this paragraph.                                                     |
  |                                                                       |
20|    (g)  Any individual who is eligible to be a beneficiary or joint   |
  |                                                                       |
21|annuitant of a member under this subsection, and who is also a         |
  |                                                                       |
22|beneficiary of a trust created under the Oklahoma Discretionary and    |
  |                                                                       |
23|Special Needs Trust Act, Section 175.81 et seq. of Title 60 of the     |
  |                                                                       |
24|Oklahoma Statutes, or a comparable Trust Act created under the laws    |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 15
___________________________________________________________________________

 1|of another state, hereinafter collectively referred to as "Trust       |
  |                                                                       |
 2|Acts", may be a beneficiary or joint annuitant under this subsection   |
  |                                                                       |
 3|by having the trustee of the trust established for the benefit of      |
  |                                                                       |
 4|that individual named as the legal beneficiary or joint annuitant      |
  |                                                                       |
 5|under this subsection.  The age of that beneficiary shall be used      |
  |                                                                       |
 6|for calculating any benefit payable to the trust under this            |
  |                                                                       |
 7|subsection.  The beneficiary of such a trust shall be treated as the   |
  |                                                                       |
 8|beneficiary or joint annuitant under this subsection except that       |
  |                                                                       |
 9|payments of any benefits due under this subsection shall be payable    |
  |                                                                       |
10|to the lawfully appointed trustee of the trust.  The obligation of     |
  |                                                                       |
11|the System to pay the beneficiary or joint annuitant under this        |
  |                                                                       |
12|subsection shall be satisfied by payment to the trustee whom the       |
  |                                                                       |
13|System, in good faith, believes to be the lawfully appointed           |
  |                                                                       |
14|trustee.  Any conflict between the statutes creating and governing     |
  |                                                                       |
15|the Teachers' Retirement System in Section 17-101 et seq. of this      |
  |                                                                       |
16|title and the provisions of any Trust Act referred to above shall be   |
  |                                                                       |
17|resolved in favor of the statutes governing the System.  If an         |
  |                                                                       |
18|eligible beneficiary or joint annuitant is named at the time of        |
  |                                                                       |
19|retirement, and becomes a beneficiary of a trust under one of the      |
  |                                                                       |
20|Trust Acts described herein after that time, the System will           |
  |                                                                       |
21|acknowledge the trust as the beneficiary upon the submission of        |
  |                                                                       |
22|adequate documentation of the existence of the trust.  All other       |
  |                                                                       |
23|provisions of this subsection shall apply to these subsequently        |
  |                                                                       |
24|created trusts.                                                        |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 16
___________________________________________________________________________

 1|    (h)  The Board of Trustees of the System may recognize other       |
  |                                                                       |
 2|trusts set up for the benefit of individuals otherwise eligible to     |
  |                                                                       |
 3|be named as a beneficiary or joint annuitant under this subsection     |
  |                                                                       |
 4|by administrative rule if it can be done without undue additional      |
  |                                                                       |
 5|administrative expense of the System.                                  |
  |                                                                       |
 6|    (9)  The governing board of any "public school", as that term is   |
  |                                                                       |
 7|defined in Section 17-101 of this title, is hereby authorized and      |
  |                                                                       |
 8|empowered to pay additional retirement allowances or compensation to   |
  |                                                                       |
 9|any person who was in the employ of such public school for not less    |
  |                                                                       |
10|than seven (7) school years preceding the date of his or her           |
  |                                                                       |
11|retirement.  Payments so made shall be a proper charge against the     |
  |                                                                       |
12|current appropriation or appropriations of any such public school      |
  |                                                                       |
13|for salaries for the fiscal year in which such payments are made.      |
  |                                                                       |
14|Such payments shall be made in regular monthly installments in such    |
  |                                                                       |
15|amounts as the governing board of any such public school, in its       |
  |                                                                       |
16|judgment, shall determine to be reasonable and appropriate in view     |
  |                                                                       |
17|of the length and type of service rendered by any such person to       |
  |                                                                       |
18|such public school by which such person was employed at the time of    |
  |                                                                       |
19|retirement.  All such additional payments shall be uniform, based      |
  |                                                                       |
20|upon the length of service and the type of services performed, to      |
  |                                                                       |
21|persons formerly employed by such public school who have retired or    |
  |                                                                       |
22|been retired in accordance with the provisions of Section 17-101 et    |
  |                                                                       |
23|seq. of this title.                                                    |
  |                                                                       |
24|                                                                       |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 17
___________________________________________________________________________

 1|    The governing board of any such public school may adopt rules      |
  |                                                                       |
 2|and regulations of general application outlining the terms and         |
  |                                                                       |
 3|conditions under which such additional retirement benefits shall be    |
  |                                                                       |
 4|paid, and all decisions of such board shall be final.                  |
  |                                                                       |
 5|    (10)  In addition to the teachers' retirement herein provided,     |
  |                                                                       |
 6|teachers may voluntarily avail themselves of the Federal Social        |
  |                                                                       |
 7|Security Program upon a district basis.                                |
  |                                                                       |
 8|    (11)  Upon the death of an in-service member, the System shall     |
  |                                                                       |
 9|pay to the designated beneficiary of the member or, if there is no     |
  |                                                                       |
10|designated beneficiary or if the designated beneficiary predeceases    |
  |                                                                       |
11|the member, to the estate of the member, the sum of Eighteen           |
  |                                                                       |
12|Thousand Dollars ($18,000.00) as a death benefit.  Provided, if the    |
  |                                                                       |
13|deceased member had ten (10) years or more of creditable service and   |
  |                                                                       |
14|the death occurred after February 1, 1985, the member's designated     |
  |                                                                       |
15|beneficiary may elect to receive the retirement benefit to which the   |
  |                                                                       |
16|deceased member would have been entitled at the time of death under    |
  |                                                                       |
17|the Option 2 plan of retirement in lieu of the death benefit           |
  |                                                                       |
18|provided for in this subsection.  Provided further, the option         |
  |                                                                       |
19|provided in this subsection is only available when the member has      |
  |                                                                       |
20|designated one individual as the designated beneficiary.  The          |
  |                                                                       |
21|beneficiary or beneficiaries of death benefits in the amount not to    |
  |                                                                       |
22|exceed Eighteen Thousand Dollars ($18,000.00), but exclusive of any    |
  |                                                                       |
23|retirement benefit received by an electing beneficiary based upon      |
  |                                                                       |
24|creditable service performed by the deceased member, which are         |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 18
___________________________________________________________________________

 1|provided pursuant to this subsection may elect to disclaim such        |
  |                                                                       |
 2|death benefits in which case such benefits will be transferred to a    |
  |                                                                       |
 3|person licensed as a funeral director or to a lawfully recognized      |
  |                                                                       |
 4|business entity licensed as required by law to provide funeral         |
  |                                                                       |
 5|services for the deceased member.  The qualified disclaimer must be    |
  |                                                                       |
 6|in writing and will be an irrevocable and an unqualified refusal to    |
  |                                                                       |
 7|accept all or a portion of the death benefit.  It must be received     |
  |                                                                       |
 8|by the transferor no more than nine (9) months after the later of      |
  |                                                                       |
 9|the day the transfer creating the interest in the disclaiming person   |
  |                                                                       |
10|is made or the day the disclaiming person attains age twenty-one       |
  |                                                                       |
11|(21).  The interest in the death benefits must pass without            |
  |                                                                       |
12|direction by the disclaiming person to another person.                 |
  |                                                                       |
13|    (12)  Upon the death of an annuitant a retired member who has      |
  |                                                                       |
14|contributed to the System, the retirement system shall pay to the      |
  |                                                                       |
15|designated beneficiary of the annuitant member or, if there is no      |
  |                                                                       |
16|designated beneficiary or if the designated beneficiary predeceases    |
  |                                                                       |
17|the annuitant member, to the estate of the annuitant member, the sum   |
  |                                                                       |
18|of Five Thousand Dollars ($5,000.00) as a death benefit.  The          |
  |                                                                       |
19|beneficiary or beneficiaries of benefits provided pursuant to this     |
  |                                                                       |
20|subsection may elect to disclaim such death benefits in which case     |
  |                                                                       |
21|such benefits will be transferred to a person licensed as a funeral    |
  |                                                                       |
22|director or to a lawfully recognized business entity licensed as       |
  |                                                                       |
23|required by law to provide funeral services for the deceased member.   |
  |                                                                       |
24| The qualified disclaimer must be in writing and will be an            |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 19
___________________________________________________________________________

 1|irrevocable and an unqualified refusal to accept all or a portion of   |
  |                                                                       |
 2|the death benefit.  It must be received by the transferor no more      |
  |                                                                       |
 3|than nine (9) months after the later of the day the transfer           |
  |                                                                       |
 4|creating the interest in the disclaiming person is made or the day     |
  |                                                                       |
 5|the disclaiming person attains age twenty-one (21).  The interest in   |
  |                                                                       |
 6|the death benefits must pass without direction by the disclaiming      |
  |                                                                       |
 7|person to another person.  The benefit payable pursuant to this        |
  |                                                                       |
 8|subsection shall be deemed, for purposes of federal income taxation,   |
  |                                                                       |
 9|as life insurance proceeds and not as a death benefit if the           |
  |                                                                       |
10|Internal Revenue Service approves this provision pursuant to a         |
  |                                                                       |
11|private letter ruling request which shall be submitted by the Board    |
  |                                                                       |
12|of Trustees of the System for that purpose.                            |
  |                                                                       |
13|    (13)  Upon the death of a member who dies leaving no living        |
  |                                                                       |
14|beneficiary or having designated his or her estate as beneficiary,     |
  |                                                                       |
15|the System may pay any applicable death benefit, unpaid                |
  |                                                                       |
16|contributions, or unpaid benefit which may be subject to probate, in   |
  |                                                                       |
17|an amount of Twenty-five Thousand Dollars ($25,000.00) or less,        |
  |                                                                       |
18|without the intervention of the probate court or probate procedure     |
  |                                                                       |
19|pursuant to Section 1 et seq. of Title 58 of the Oklahoma Statutes.    |
  |                                                                       |
20|    (a)  Before any applicable probate procedure may be waived, the    |
  |                                                                       |
21|System must be in receipt of the member's proof of death and the       |
  |                                                                       |
22|following documents from those persons claiming to be the legal        |
  |                                                                       |
23|heirs of the deceased member:                                          |
  |                                                                       |
24|                                                                       |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 20
___________________________________________________________________________

 1|         1.   The member's valid last will and testament, trust        |
  |                                                                       |
 2|              documents or affidavit that a will does not exist;       |
  |                                                                       |
 3|         2.   An affidavit or affidavits of heirship which must        |
  |                                                                       |
 4|              state:                                                   |
  |                                                                       |
 5|              a.   the names and signatures of all claiming heirs to   |
  |                                                                       |
 6|                   the deceased member's estate including the          |
  |                                                                       |
 7|                   claiming heirs' names, relationship to the          |
  |                                                                       |
 8|                   deceased, current addresses, tax I.D. numbers if    |
  |                                                                       |
 9|                   known and current telephone numbers,                |
  |                                                                       |
10|              b.   a statement or statements by the claiming heirs     |
  |                                                                       |
11|                   that no application or petition for the             |
  |                                                                       |
12|                   appointment of a personal representative is         |
  |                                                                       |
13|                   pending or has been granted in any jurisdiction,    |
  |                                                                       |
14|              c.   a description of the personal property claimed,     |
  |                                                                       |
15|                   (i.e., death benefit or unpaid contributions or     |
  |                                                                       |
16|                   both) together with a statement that such           |
  |                                                                       |
17|                   personal property is subject to probate,            |
  |                                                                       |
18|              d.   a statement by each individual claiming heir        |
  |                                                                       |
19|                   identifying the amount of personal property that    |
  |                                                                       |
20|                   the heir is claiming from the System, and that      |
  |                                                                       |
21|                   the heir has been notified of, is aware of and      |
  |                                                                       |
22|                   consents to the identified claims of all the        |
  |                                                                       |
23|                   other claiming heirs of the deceased member         |
  |                                                                       |
24|                   pending with the System;                            |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 21
___________________________________________________________________________

 1|         3.   A written agreement or agreements signed by all          |
  |                                                                       |
 2|              claiming heirs of the deceased member which provides     |
  |                                                                       |
 3|              that the claiming heirs release, discharge and hold      |
  |                                                                       |
 4|              harmless the System from any and all liability,          |
  |                                                                       |
 5|              obligations and costs which it may incur as a result     |
  |                                                                       |
 6|              of making a payment to any of the deceased member's      |
  |                                                                       |
 7|              heirs;                                                   |
  |                                                                       |
 8|         4.   A corroborating affidavit from an individual other       |
  |                                                                       |
 9|              than a claiming heir, who was familiar with the          |
  |                                                                       |
10|              affairs of the deceased member;                          |
  |                                                                       |
11|         5.   Proof that all debts of the deceased member, including   |
  |                                                                       |
12|              payment of last sickness, hospital, medical, death,      |
  |                                                                       |
13|              funeral and burial expenses have been paid or provided   |
  |                                                                       |
14|              for.                                                     |
  |                                                                       |
15|    (b)  The Executive Director of the System shall retain complete    |
  |                                                                       |
16|discretion in determining which requests for probate waiver may be     |
  |                                                                       |
17|granted or denied, for any reason.  Should the System have any         |
  |                                                                       |
18|question as to the validity of any document presented by the           |
  |                                                                       |
19|claiming heirs, or as to any statement or assertion contained          |
  |                                                                       |
20|therein, the probate requirement provided for in Section 1 et seq.     |
  |                                                                       |
21|of Title 58 of the Oklahoma Statutes shall not be waived.              |
  |                                                                       |
22|    (c)  After paying any death benefits or unpaid contributions to    |
  |                                                                       |
23|any claiming heirs as provided pursuant to this subsection, the        |
  |                                                                       |
24|System is discharged and released from any and all liability,          |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 22
___________________________________________________________________________

 1|obligation and costs to the same extent as if the System had dealt     |
  |                                                                       |
 2|with a personal representative of the deceased member.  The System     |
  |                                                                       |
 3|is not required to inquire into the truth of any matter specified in   |
  |                                                                       |
 4|this subsection or into the payment of any estate tax liability.       |
  |                                                                       |
 5|    (14)  Upon the death of a retired member, the benefit payment      |
  |                                                                       |
 6|for the month in which the retired member died, if not previously      |
  |                                                                       |
 7|paid, shall be made to the joint annuitant if still living, to the     |
  |                                                                       |
 8|beneficiary of the member if the joint annuitant is deceased, or to    |
  |                                                                       |
 9|the member's estate if there is no surviving joint annuitant or        |
  |                                                                       |
10|beneficiary.  Such benefit payment shall be made in an amount equal    |
  |                                                                       |
11|to a full monthly benefit payment regardless of the day of the month   |
  |                                                                       |
12|in which the retired member died.                                      |
  |                                                                       |
13|    SECTION 2.     AMENDATORY     70 O.S. 2011, Section 17-106, as     |
  |                                                                       |
14|last amended by Section 1, Chapter 312, O.S.L. 2017 (70 O.S. Supp.     |
  |                                                                       |
15|2018, Section 17-106), is amended to read as follows:                  |
  |                                                                       |
16|    Section 17-106.  (1)  The general administration and               |
  |                                                                       |
17|responsibility for the proper operation of the retirement system and   |
  |                                                                       |
18|for making effective the provisions of the act are hereby vested in    |
  |                                                                       |
19|a Board of Trustees which shall be known as the Board of Trustees      |
  |                                                                       |
20|and shall be organized immediately after a majority of the trustees    |
  |                                                                       |
21|provided for in this section shall have qualified and taken the oath   |
  |                                                                       |
22|of office.                                                             |
  |                                                                       |
23|                                                                       |
  |                                                                       |
24|                                                                       |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 23
___________________________________________________________________________

 1|    (2)  The Board shall consist of the following members and all      |
  |                                                                       |
 2|appointees shall serve their terms at the pleasure of the appointing   |
  |                                                                       |
 3|authority and may be removed or replaced without cause:                |
  |                                                                       |
 4|    (a)  The State Superintendent of Public Instruction, ex officio    |
  |                                                                       |
 5|or a designee.                                                         |
  |                                                                       |
 6|    (b)  The Director of the Office of Management and Enterprise       |
  |                                                                       |
 7|Services, ex officio or a designee.                                    |
  |                                                                       |
 8|    (c)  The Director of the Oklahoma Department of Career and         |
  |                                                                       |
 9|Technology Education, ex officio, or his or her designee.              |
  |                                                                       |
10|    (d)  The State Treasurer, ex officio, or his or her designee.      |
  |                                                                       |
11|    (e)  One member appointed by the Governor whose initial term of    |
  |                                                                       |
12|office shall expire on January 14, 1991.  The members thereafter       |
  |                                                                       |
13|appointed by the Governor shall serve a term of office of four (4)     |
  |                                                                       |
14|years which is coterminous with the term of office of the office of    |
  |                                                                       |
15|the appointing authority.                                              |
  |                                                                       |
16|    (f)  Two members shall be appointed by the Governor of the State   |
  |                                                                       |
17|of Oklahoma and approved by the Senate.  The two members shall be:     |
  |                                                                       |
18|         1.    a representative of a school of higher education in     |
  |                                                                       |
19|              Oklahoma whose term of office shall initially be one     |
  |                                                                       |
20|              (1) year, and                                            |
  |                                                                       |
21|         2.    a member of the System of the nonclassified optional    |
  |                                                                       |
22|              personnel status whose initial term of office shall be   |
  |                                                                       |
23|              two (2) years.                                           |
  |                                                                       |
24|                                                                       |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 24
___________________________________________________________________________

 1|After the initial terms of office the terms of the members shall be    |
  |                                                                       |
 2|four (4) years.                                                        |
  |                                                                       |
 3|    (g)  Upon the expiration of the term of office of the              |
  |                                                                       |
 4|stockbroker member of the Board, the Governor shall appoint a member   |
  |                                                                       |
 5|to the Board whose initial term of office shall expire on January      |
  |                                                                       |
 6|14, 1991.  The members thereafter appointed by the Governor shall      |
  |                                                                       |
 7|serve a term of office of four (4) years which is coterminous with     |
  |                                                                       |
 8|the term of office of the office of the appointing authority.          |
  |                                                                       |
 9|    (h)  Upon the expiration of the term of office of the              |
  |                                                                       |
10|representative of the insurance industry member of the Board, the      |
  |                                                                       |
11|Governor shall appoint a member to the Board whose initial term of     |
  |                                                                       |
12|office shall expire on January 14, 1991.  The members thereafter       |
  |                                                                       |
13|appointed by the Governor shall serve a term of office of four (4)     |
  |                                                                       |
14|years which is coterminous with the term of office of the office of    |
  |                                                                       |
15|the appointing authority.                                              |
  |                                                                       |
16|    (i)  Upon the expiration of the term of office of the investment   |
  |                                                                       |
17|counselor member of the Board, the Governor shall appoint a member     |
  |                                                                       |
18|to the Board whose initial term of office shall expire on January      |
  |                                                                       |
19|14, 1991.  The members thereafter appointed by the Governor shall      |
  |                                                                       |
20|serve a term of office of four (4) years which is coterminous with     |
  |                                                                       |
21|the term of office of the office of the appointing authority.          |
  |                                                                       |
22|    (j)  Upon the expiration of the term of office of the active       |
  |                                                                       |
23|classroom teacher member of the Board, the President Pro Tempore of    |
  |                                                                       |
24|the Senate shall appoint a member to the Board, who shall be an        |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 25
___________________________________________________________________________

 1|active classroom teacher and whose initial term of office shall        |
  |                                                                       |
 2|expire on January 8, 1991.  The members thereafter appointed by the    |
  |                                                                       |
 3|President Pro Tempore of the Senate shall serve a term of office of    |
  |                                                                       |
 4|four (4) years.                                                        |
  |                                                                       |
 5|    (k)  Upon the expiration of the term of office of the retired      |
  |                                                                       |
 6|classroom teacher member of the Board, the Speaker of the House of     |
  |                                                                       |
 7|Representatives shall appoint a member to the Board, who shall be a    |
  |                                                                       |
 8|retired member of the System and whose initial term of office shall    |
  |                                                                       |
 9|expire on January 8, 1991.  The members thereafter appointed by the    |
  |                                                                       |
10|Speaker of the House of Representatives shall serve a term of office   |
  |                                                                       |
11|of four (4) years.                                                     |
  |                                                                       |
12|    (l)  The Speaker of the House of Representatives shall appoint a   |
  |                                                                       |
13|member to the Board, who shall be an active classroom teacher and      |
  |                                                                       |
14|whose initial term of office shall expire on January 3, 1989.  The     |
  |                                                                       |
15|members thereafter appointed by the Speaker of the House of            |
  |                                                                       |
16|Representatives shall serve a term of office of four (4) years.        |
  |                                                                       |
17|    (m)  The President Pro Tempore of the Senate shall appoint a       |
  |                                                                       |
18|member to the Board, who shall be a retired member of the System and   |
  |                                                                       |
19|whose initial term of office shall expire on January 3, 1989.  The     |
  |                                                                       |
20|members thereafter appointed by the President Pro Tempore of the       |
  |                                                                       |
21|Senate shall serve a term of office of four (4) years.                 |
  |                                                                       |
22|    (n)  A statewide organization representing retired educators       |
  |                                                                       |
23|shall appoint a member to the Board who shall be a nonvoting member.   |
  |                                                                       |
24|                                                                       |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 26
___________________________________________________________________________

 1|    (3)  Persons who are appointed to the Board of Trustees by the     |
  |                                                                       |
 2|Governor pursuant to paragraphs (e), (g), (h) and (i) of subsection    |
  |                                                                       |
 3|(2) of this section shall:                                             |
  |                                                                       |
 4|    (a)  have demonstrated professional experience in investment or    |
  |                                                                       |
 5|funds management, public funds management, public or private pension   |
  |                                                                       |
 6|fund management or retirement system management; or                    |
  |                                                                       |
 7|    (b)  have demonstrated experience in the banking profession and    |
  |                                                                       |
 8|have demonstrated professional experience in investment or funds       |
  |                                                                       |
 9|management; or                                                         |
  |                                                                       |
10|    (c)  be licensed to practice law in this state and have            |
  |                                                                       |
11|demonstrated professional experience in commercial matters; or         |
  |                                                                       |
12|    (d)  be licensed by the Oklahoma Accountancy Board to practice     |
  |                                                                       |
13|in this state as a public accountant or a certified public             |
  |                                                                       |
14|accountant.                                                            |
  |                                                                       |
15|    The appointing authorities, in making appointments that conform    |
  |                                                                       |
16|to the requirements of this subsection, shall give due consideration   |
  |                                                                       |
17|to balancing the appointments among the criteria specified in          |
  |                                                                       |
18|paragraphs (a) through (d) of this subsection.                         |
  |                                                                       |
19|    (4)  No member of the Board of Trustees shall be a lobbyist        |
  |                                                                       |
20|registered in this state as provided by law.                           |
  |                                                                       |
21|    (5)  Notwithstanding any of the provisions of this section to      |
  |                                                                       |
22|the contrary, any person serving as an appointed member of the Board   |
  |                                                                       |
23|of Trustees on July 1, 1988, shall be eligible for reappointment       |
  |                                                                       |
24|when the term of office of the member expires.                         |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 27
___________________________________________________________________________

 1|    (6)  If a vacancy occurs in the office of a trustee, the vacancy   |
  |                                                                       |
 2|shall be filled for the unexpired term in the same manner as the       |
  |                                                                       |
 3|office was previously filled.                                          |
  |                                                                       |
 4|    (7) (6)  Each of the trustees, except those who are state          |
  |                                                                       |
 5|officials serving ex officio, shall receive travel expenses in         |
  |                                                                       |
 6|accordance with the State Travel Reimbursement Act.                    |
  |                                                                       |
 7|    (8) (7)  Each trustee shall, within ten (10) days after his or     |
  |                                                                       |
 8|her appointment or election, take an oath of office that, so far as    |
  |                                                                       |
 9|it devolves upon him or her, the trustee will diligently and           |
  |                                                                       |
10|honestly administer the affairs of the Board of Trustees and that he   |
  |                                                                       |
11|or she will not knowingly violate or willingly permit to be violated   |
  |                                                                       |
12|any of the provisions of law applicable to the retirement system.      |
  |                                                                       |
13|Such oath shall be subscribed to by the member making it, certified    |
  |                                                                       |
14|by the officer before whom it is taken, and immediately filed in the   |
  |                                                                       |
15|office of the Secretary of State.                                      |
  |                                                                       |
16|    (9) (8)  Each trustee shall be entitled to one vote on the Board   |
  |                                                                       |
17|of Trustees.  Eight votes shall be necessary for a decision by the     |
  |                                                                       |
18|trustees at any meeting of the Board.                                  |
  |                                                                       |
19|    (10) (9)  Subject to the limitations of this act, the Board of     |
  |                                                                       |
20|Trustees shall, from time to time, establish rules and regulations     |
  |                                                                       |
21|for the administration of the funds created by this act and for the    |
  |                                                                       |
22|transaction of its business.  Provided that such rules and             |
  |                                                                       |
23|regulations may include rules and regulations providing for the        |
  |                                                                       |
24|withholding from the retirement allowance due a retired person under   |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 28
___________________________________________________________________________

 1|the provisions of this act an amount requested in writing by the       |
  |                                                                       |
 2|retiree for the purpose of paying:                                     |
  |                                                                       |
 3|    (a)  monthly premiums on group hospital and surgical insurance     |
  |                                                                       |
 4|programs to which such retiree belongs, and for the transmitting of    |
  |                                                                       |
 5|the sums so withheld to the insurance carrier designated by the        |
  |                                                                       |
 6|retiree; and                                                           |
  |                                                                       |
 7|    (b)  membership dues in any statewide association limited to       |
  |                                                                       |
 8|retired educator membership with a minimum membership of one           |
  |                                                                       |
 9|thousand (1,000) dues-paying members and for the transmitting of the   |
  |                                                                       |
10|sums so withheld.                                                      |
  |                                                                       |
11|    (11) (10)  The Board of Trustees shall elect from its membership   |
  |                                                                       |
12|a chair, vice-chair and secretary by a majority vote of all of its     |
  |                                                                       |
13|members shall appoint a secretary-treasurer, who may be, but need      |
  |                                                                       |
14|not be, one of its members.  The Board shall employ an executive       |
  |                                                                       |
15|director and shall engage such actuarial and other service as shall    |
  |                                                                       |
16|be required to transact the business of the retirement system.  The    |
  |                                                                       |
17|compensation of all persons engaged by the Board and all other         |
  |                                                                       |
18|expenses of the Board necessary for the operation of the retirement    |
  |                                                                       |
19|system shall be paid at such rates and in such amounts as the Board    |
  |                                                                       |
20|shall approve.                                                         |
  |                                                                       |
21|    (12) (11)  The members of the Board of Trustees, the Executive     |
  |                                                                       |
22|Director and the employees of the System shall not accept gifts or     |
  |                                                                       |
23|gratuities from an individual organization with a value in excess of   |
  |                                                                       |
24|Fifty Dollars ($50.00) per year.  The provisions of this section       |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 29
___________________________________________________________________________

 1|shall not be construed to prevent the members of the Board of          |
  |                                                                       |
 2|Trustees, the Executive Director or the employees of the System from   |
  |                                                                       |
 3|attending educational seminars, conferences, meetings or similar       |
  |                                                                       |
 4|functions which are paid for, directly or indirectly, by more than     |
  |                                                                       |
 5|one organization.                                                      |
  |                                                                       |
 6|    (13) (12)  The Board of Trustees shall keep in convenient form     |
  |                                                                       |
 7|such data as shall be necessary for actuarial valuation of the         |
  |                                                                       |
 8|various funds of the retirement system and for checking the            |
  |                                                                       |
 9|experience of the system.                                              |
  |                                                                       |
10|    (14) (13)  The Board of Trustees shall keep a record of all of     |
  |                                                                       |
11|its proceedings which shall be open to public inspection.  It shall    |
  |                                                                       |
12|publish annually a report showing the fiscal transactions of the       |
  |                                                                       |
13|retirement system for the preceding fiscal year, the amount of the     |
  |                                                                       |
14|accumulated cash and securities of the system, and the last balance    |
  |                                                                       |
15|sheet showing the financial condition of the system by means of an     |
  |                                                                       |
16|actuarial valuation of the assets and liabilities of the retirement    |
  |                                                                       |
17|system and a detailed accounting of its administrative expenses.       |
  |                                                                       |
18|    (15) (14)  The Board of Trustees shall retain an attorney who is   |
  |                                                                       |
19|licensed to practice law in this state.  The attorney shall serve at   |
  |                                                                       |
20|the pleasure of the Board of Trustees for such compensation as may     |
  |                                                                       |
21|be provided by the Board of Trustees.  The attorney shall advise the   |
  |                                                                       |
22|Board of Trustees and perform legal services for the Board of          |
  |                                                                       |
23|Trustees with respect to any matters properly before the Board of      |
  |                                                                       |
24|Trustees.  When requested by the Board of Trustees, the Attorney       |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 30
___________________________________________________________________________

 1|General of the state also shall render legal services to the Board     |
  |                                                                       |
 2|of Trustees.  In addition to the above, the Board of Trustees may      |
  |                                                                       |
 3|employ hearing examiners to conduct administrative grievance           |
  |                                                                       |
 4|hearings under the provisions of the Administrative Procedures Act.    |
  |                                                                       |
 5|    (16) (15)  Suitable offices shall be furnished by the Office of    |
  |                                                                       |
 6|Management and Enterprise Services.  Upon the failure or inability     |
  |                                                                       |
 7|of the Office of Management and Enterprise Services to provide         |
  |                                                                       |
 8|adequate facilities, the Board of Trustees may contract for            |
  |                                                                       |
 9|necessary office space in suitable quarters.                           |
  |                                                                       |
10|    (17) (16)  The Board of Trustees shall designate a Medical Board   |
  |                                                                       |
11|to be composed of three physicians not eligible to participate in      |
  |                                                                       |
12|the retirement system.  The physicians so appointed by the Board of    |
  |                                                                       |
13|Trustees shall be legally qualified to practice medicine in Oklahoma   |
  |                                                                       |
14|or the state in which they reside and shall be physicians of good      |
  |                                                                       |
15|standing in the medical profession.  The Board of Trustees may have    |
  |                                                                       |
16|more than one Medical Board and each Board shall have the same         |
  |                                                                       |
17|duties and authority under the statutes.  If required, other           |
  |                                                                       |
18|physicians may be employed to report on special cases.  The Medical    |
  |                                                                       |
19|Board shall pass upon all medical examinations required under the      |
  |                                                                       |
20|provisions of this act and shall investigate all essential             |
  |                                                                       |
21|statements and certificates by or on behalf of a member in             |
  |                                                                       |
22|connection with an application for disability retirement and shall     |
  |                                                                       |
23|report in writing to the Board of Trustees its conclusion and          |
  |                                                                       |
24|recommendation upon all the matters referred to it.  The Board of      |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 31
___________________________________________________________________________

 1|Trustees shall adopt such rules and regulations as may be necessary    |
  |                                                                       |
 2|to properly administer this benefit.                                   |
  |                                                                       |
 3|    (18) (17)  The Board of Trustees shall designate retain an         |
  |                                                                       |
 4|actuary who actuarial firm that shall be the technical advisor         |
  |                                                                       |
 5|advisors of the Board of Trustees on matters regarding the operation   |
  |                                                                       |
 6|of funds created by the provisions of this act and shall perform       |
  |                                                                       |
 7|such other duties as are required in connection therewith.             |
  |                                                                       |
 8|    (19) (18)  At least once each five (5) years the actuary Board     |
  |                                                                       |
 9|of Trustees shall use an actuarial firm to make an actuarial           |
  |                                                                       |
10|investigation of the experience of the retirement system, including    |
  |                                                                       |
11|the mortality, service and compensation experience of members and      |
  |                                                                       |
12|beneficiaries.  Based on the results of such investigation the         |
  |                                                                       |
13|actuary actuarial firm shall recommend for adoption by the Board of    |
  |                                                                       |
14|Trustees such tables and rates as are required for the operation of    |
  |                                                                       |
15|the retirement system and for the preparation of annual actuarial      |
  |                                                                       |
16|valuations.                                                            |
  |                                                                       |
17|    (20) (19)  On the basis of such tables and rates as the Board of   |
  |                                                                       |
18|Trustees shall adopt, the actuary actuarial firm shall prepare an      |
  |                                                                       |
19|annual actuarial valuation of the assets and liabilities of the        |
  |                                                                       |
20|retirement system and certify the rates of contribution payable by     |
  |                                                                       |
21|the state under the provisions of law concerning the Teachers'         |
  |                                                                       |
22|Retirement System.                                                     |
  |                                                                       |
23|    SECTION 3.     AMENDATORY     70 O.S. 2011, Section 17-108.2, is   |
  |                                                                       |
24|amended to read as follows:                                            |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 32
___________________________________________________________________________

 1|    Section 17-108.2.  A.  Beginning July 1, 1998 July 1, 2019, and    |
  |                                                                       |
 2|for each plan year thereafter, a teacher person employed by any        |
  |                                                                       |
 3|school district or employed by a technology center school district,    |
  |                                                                       |
 4|who qualifies for a minimum salary pursuant to the schedule            |
  |                                                                       |
 5|contained in Section 18-114.7 of this title, holds a valid             |
  |                                                                       |
 6|certificate issued by the State Department of Education or the State   |
  |                                                                       |
 7|Board of Career and Technology Education, and is employed on a         |
  |                                                                       |
 8|full-time basis to serve as a teacher, principal, supervisor,          |
  |                                                                       |
 9|administrator, superintendent, counselor, librarian or certified or    |
  |                                                                       |
10|registered nurse shall have credited against the employee              |
  |                                                                       |
11|contribution amount, as applicable to the amount of compensation       |
  |                                                                       |
12|required to be paid to the teacher as a minimum salary pursuant to     |
  |                                                                       |
13|Section 18-114.7 of this title, an annual amount based upon            |
  |                                                                       |
14|qualifying years of service as follows:                                |
  |                                                                       |
15|   YEARS OF SERVICE                      CREDIT AMOUNT                 |
  |                                                                       |
16|           0                                $60.15                     |
  |                                                                       |
17|           1                               $103.41                     |
  |                                                                       |
18|           2                               $145.65                     |
  |                                                                       |
19|           3                               $188.15                     |
  |                                                                       |
20|           4                               $233.33                     |
  |                                                                       |
21|           5                               $278.76                     |
  |                                                                       |
22|           6                               $325.26                     |
  |                                                                       |
23|           7                               $372.82                     |
  |                                                                       |
24|           8                               $421.44                     |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 33
___________________________________________________________________________

 1|           9                               $471.12                     |
  |                                                                       |
 2|          10                               $521.87                     |
  |                                                                       |
 3|          11                               $573.67                     |
  |                                                                       |
 4|          12                               $626.54                     |
  |                                                                       |
 5|          13                               $680.48                     |
  |                                                                       |
 6|          14                               $735.47                     |
  |                                                                       |
 7|          15                               $791.53                     |
  |                                                                       |
 8|          16                               $848.65                     |
  |                                                                       |
 9|          17                               $906.83                     |
  |                                                                       |
10|          18                               $966.07                     |
  |                                                                       |
11|          19                             $1,026.38                     |
  |                                                                       |
12|          20                             $1,087.75                     |
  |                                                                       |
13|          21                             $1,150.18                     |
  |                                                                       |
14|          22                             $1,213.68                     |
  |                                                                       |
15|          23                             $1,278.23                     |
  |                                                                       |
16|          24                             $1,343.85                     |
  |                                                                       |
17|          25 or more                     $1,410.53                     |
  |                                                                       |
18|    B.  The state shall pick up for tax purposes and pay the annual    |
  |                                                                       |
19|amount prescribed by subsection A of this section, based upon the      |
  |                                                                       |
20|conditions prescribed by subsection A of this section, to the          |
  |                                                                       |
21|Teachers' Retirement System.  The annual amount prescribed by          |
  |                                                                       |
22|subsection A of this section shall be divided into monthly amounts     |
  |                                                                       |
23|as may be required in order to give full effect to the credit amount   |
  |                                                                       |
24|                                                                       |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 34
___________________________________________________________________________

 1|without the necessity of dividing the annual credit amount into        |
  |                                                                       |
 2|twelve (12) equal installments.                                        |
  |                                                                       |
 3|    C.  If an eligible teacher member under this section terminates    |
  |                                                                       |
 4|service prior to June 30 of any applicable plan year, the amounts      |
  |                                                                       |
 5|prescribed by subsection A of this section, and transferred to the     |
  |                                                                       |
 6|Teachers' Retirement System from the State Board of Education and      |
  |                                                                       |
 7|the State Board of Career and Technology Education shall be retained   |
  |                                                                       |
 8|by the Teachers' Retirement System of Oklahoma and treated as an       |
  |                                                                       |
 9|actuarial gain of the System.                                          |
  |                                                                       |
10|    D.  If an employing school district has contractually committed    |
  |                                                                       |
11|to make payment of the employee contributions required by Section      |
  |                                                                       |
12|17-116.2 of this title for a member who is eligible for the credit     |
  |                                                                       |
13|amount prescribed by subsection A of this section for the fiscal       |
  |                                                                       |
14|year, using funds available to the district and not by effecting the   |
  |                                                                       |
15|employee contribution through a deduction from the member's gross      |
  |                                                                       |
16|salary, the district shall pay additional compensation to each of      |
  |                                                                       |
17|its eligible teachers in an amount equal to the amount prescribed by   |
  |                                                                       |
18|subsection A of this section based upon the number of years of         |
  |                                                                       |
19|teaching experience of the eligible member.                            |
  |                                                                       |
20|    E.  If an eligible member is hired by a school district or a       |
  |                                                                       |
21|technology center school district and receives compensation for less   |
  |                                                                       |
22|than one hundred eighty (180) days of service, the district shall      |
  |                                                                       |
23|determine a pro rata amount of the annual credit amount and shall      |
  |                                                                       |
24|pay additional compensation to the member equal to the pro rata        |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 35
___________________________________________________________________________

 1|amount for each month during which the member is employed.  The        |
  |                                                                       |
 2|monthly credit amount for such member shall be added to the member's   |
  |                                                                       |
 3|compensation beginning with the first full month during which the      |
  |                                                                       |
 4|member is employed by the district.                                    |
  |                                                                       |
 5|    F.  The amount required to be added to the compensation of the     |
  |                                                                       |
 6|eligible member pursuant to subsection D of this section shall be      |
  |                                                                       |
 7|subject to any applicable federal or state taxes upon the additional   |
  |                                                                       |
 8|income.                                                                |
  |                                                                       |
 9|    G.  The amount required to be added to the compensation of the     |
  |                                                                       |
10|eligible member pursuant to subsection D of this section shall not     |
  |                                                                       |
11|be treated as regular annual compensation for purposes of Section      |
  |                                                                       |
12|17-116.2 of this title or as salary or fringe benefits for purposes    |
  |                                                                       |
13|of determining the any applicable statutory minimum salary pursuant    |
  |                                                                       |
14|to the requirements of Section 18-114.7 of this title or for           |
  |                                                                       |
15|purposes of meeting the requirements of any locally adopted salary     |
  |                                                                       |
16|schedule.                                                              |
  |                                                                       |
17|    H.  The employing district shall prepare its payroll records to    |
  |                                                                       |
18|reflect that the total employee contribution amount, for the salary    |
  |                                                                       |
19|not in excess of the applicable minimum salary amount, has been paid   |
  |                                                                       |
20|pursuant to a combination of the payment from the funds of the         |
  |                                                                       |
21|employing district and the amount credited to the employee             |
  |                                                                       |
22|contribution account of the member pursuant to subsection A of this    |
  |                                                                       |
23|section.                                                               |
  |                                                                       |
24|                                                                       |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 36
___________________________________________________________________________

 1|    I.  If an employing school district has contractually committed    |
  |                                                                       |
 2|to deduct employee contributions required by Section 17-116.2 of       |
  |                                                                       |
 3|this title by effecting the employee contribution through a            |
  |                                                                       |
 4|deduction from the member's gross salary, the district shall           |
  |                                                                       |
 5|decrease the amount of the payroll deduction for such employee         |
  |                                                                       |
 6|contribution by the amount as prescribed in subsection A of this       |
  |                                                                       |
 7|section, based upon the number of years of teaching experience of      |
  |                                                                       |
 8|the member.  The amount required to be subtracted from the amount by   |
  |                                                                       |
 9|which the employee's gross salary would otherwise be reduced           |
  |                                                                       |
10|pursuant to this subsection shall be subject to any applicable         |
  |                                                                       |
11|federal or state taxes.  The employing district shall prepare its      |
  |                                                                       |
12|payroll records to reflect that the total employee contribution        |
  |                                                                       |
13|amount, for the salary not in excess of the applicable minimum         |
  |                                                                       |
14|salary amount, has been paid pursuant to a combination of the          |
  |                                                                       |
15|deduction from the member's salary and the amount credited to the      |
  |                                                                       |
16|employee contribution account of the member pursuant to subsection A   |
  |                                                                       |
17|of this section.                                                       |
  |                                                                       |
18|    SECTION 4.     AMENDATORY     70 O.S. 2011, Section 17-116.2C,     |
  |                                                                       |
19|as amended by Section 3, Chapter 248, O.S.L. 2018 (70 O.S. Supp.       |
  |                                                                       |
20|2018, Section 17-116.2C), is amended to read as follows:               |
  |                                                                       |
21|    Section 17-116.2C.  A.  As used in this section:                   |
  |                                                                       |
22|    1.  "Contribution deficit" means the amount of money computed      |
  |                                                                       |
23|for an eligible employee by multiplying the employee contribution      |
  |                                                                       |
24|rate in effect for any period of service performed on or after July    |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 37
___________________________________________________________________________

 1|1, 1987, through June 30, 1995, multiplied by the amount of salary     |
  |                                                                       |
 2|earned by the member in excess of the applicable maximum               |
  |                                                                       |
 3|compensation level of the member for such period with interest at      |
  |                                                                       |
 4|the rate of ten percent (10%) per year compounded annually;            |
  |                                                                       |
 5|provided, that for the designated fiscal years prescribed by           |
  |                                                                       |
 6|subparagraphs a and b of this paragraph, the contribution deficit      |
  |                                                                       |
 7|payment shall be adjusted to:                                          |
  |                                                                       |
 8|         a.    fifty percent (50%) of the total amount of the          |
  |                                                                       |
 9|              computation otherwise prescribed by this paragraph for   |
  |                                                                       |
10|              the fiscal year ending June 30, 2007,                    |
  |                                                                       |
11|         b.    seventy-five percent (75%) of the total amount of the   |
  |                                                                       |
12|              computation otherwise prescribed by this paragraph for   |
  |                                                                       |
13|              the fiscal year ending June 30, 2008, and                |
  |                                                                       |
14|         c.    one hundred percent (100%) of the total amount of the   |
  |                                                                       |
15|              computation otherwise prescribed by this paragraph for   |
  |                                                                       |
16|              the fiscal year ending June 30, 2009, and for each       |
  |                                                                       |
17|              fiscal year thereafter;                                  |
  |                                                                       |
18|    2.  "Eligible employee" means a member of the System who has not   |
  |                                                                       |
19|retired prior to the effective date of this act and who has            |
  |                                                                       |
20|performed service at any time prior to June 30, 1995, and who          |
  |                                                                       |
21|fulfills the requirements of this act with respect to inclusion of     |
  |                                                                       |
22|pre-cap removal years of service in a retirement benefit computation   |
  |                                                                       |
23|and:                                                                   |
  |                                                                       |
24|                                                                       |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 38
___________________________________________________________________________

 1|         a.    who has already reached a normal retirement age prior   |
  |                                                                       |
 2|              to the effective date of this act and has not retired    |
  |                                                                       |
 3|              prior to the effective date of this act,                 |
  |                                                                       |
 4|         b.    who reaches a normal retirement age on or after the     |
  |                                                                       |
 5|              effective date of this act, and                          |
  |                                                                       |
 6|         c.    who is employed by an institution within The Oklahoma   |
  |                                                                       |
 7|              State System of Higher Education that is not a           |
  |                                                                       |
 8|              comprehensive university or a regional institution       |
  |                                                                       |
 9|              offering a four-year degree program as designated or     |
  |                                                                       |
10|              authorized by the Oklahoma State Regents for Higher      |
  |                                                                       |
11|              Education;                                               |
  |                                                                       |
12|    3.  "Maximum average salary amount", subject to the requirements   |
  |                                                                       |
13|of this paragraph related to the funding level for employer            |
  |                                                                       |
14|contribution rates, means:                                             |
  |                                                                       |
15|         a.    Sixty Thousand Dollars ($60,000.00) regardless of any   |
  |                                                                       |
16|              otherwise applicable maximum compensation level for      |
  |                                                                       |
17|              the fiscal year ending June 30, 2007,                    |
  |                                                                       |
18|         b.    Eighty Thousand Dollars ($80,000.00) regardless of      |
  |                                                                       |
19|              any otherwise applicable maximum compensation level      |
  |                                                                       |
20|              for the fiscal year ending June 30, 2008, and            |
  |                                                                       |
21|         c.    the full amount of the average salary without any       |
  |                                                                       |
22|              limitation for the fiscal year ending June 30, 2009,     |
  |                                                                       |
23|              and or each fiscal year thereafter.                      |
  |                                                                       |
24|                                                                       |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 39
___________________________________________________________________________

 1|The maximum final average salary amount otherwise authorized           |
  |                                                                       |
 2|pursuant to subparagraph b or subparagraph c of this paragraph shall   |
  |                                                                       |
 3|be contingent upon the participating employer in whose employment      |
  |                                                                       |
 4|the member is active upon the date the member retires receiving, for   |
  |                                                                       |
 5|the fiscal year during which the member's retirement will begin, the   |
  |                                                                       |
 6|amount of funds required pursuant to paragraph 8 subparagraph (A)(1)   |
  |                                                                       |
 7|of Section 17-108.1 of this title in order to allow the employer       |
  |                                                                       |
 8|contribution rates prescribed by paragraphs 6, 7 and 8 subparagraph    |
  |                                                                       |
 9|(A)(1) of Section 17-108.1 of this title to be effective as law.  If   |
  |                                                                       |
10|a member is employed by an employer that does not receive the          |
  |                                                                       |
11|funding required by paragraph 8 subparagraph (A)(1) of Section         |
  |                                                                       |
12|17-108.1 of this title for the fiscal year during which the member's   |
  |                                                                       |
13|retirement will begin, the member shall not be authorized to use the   |
  |                                                                       |
14|maximum final average salary otherwise authorized by this paragraph    |
  |                                                                       |
15|to compute retirement benefits;                                        |
  |                                                                       |
16|    4.  "Maximum compensation level" means either:                     |
  |                                                                       |
17|         a.    Twenty-five Thousand Dollars ($25,000.00) if a member   |
  |                                                                       |
18|              did not elect to make employee contributions on a        |
  |                                                                       |
19|              higher salary amount for any pre-cap removal years of    |
  |                                                                       |
20|              service, or                                              |
  |                                                                       |
21|         b.    Forty Thousand Dollars ($40,000.00) if a member did     |
  |                                                                       |
22|              elect to make employee contributions upon actual         |
  |                                                                       |
23|              salary not in excess of such amount for any pre-cap      |
  |                                                                       |
24|              removal years of service;                                |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 40
___________________________________________________________________________

 1|    5.  "Pre-cap removal service" means any service performed by an    |
  |                                                                       |
 2|active member prior to June 30, 1995; and                              |
  |                                                                       |
 3|    6.  "System" means the Teachers' Retirement System of Oklahoma;    |
  |                                                                       |
 4|    B.  Unless otherwise expressly provided by this section, any       |
  |                                                                       |
 5|definition contained in Section 17-101 of this title otherwise         |
  |                                                                       |
 6|applicable to computation of benefits for retired members of the       |
  |                                                                       |
 7|Teachers' Retirement System of Oklahoma shall have the same meaning    |
  |                                                                       |
 8|for purposes of this section.                                          |
  |                                                                       |
 9|    C.  Effective July 1, 2006, any eligible member of the Teachers'   |
  |                                                                       |
10|Retirement System of Oklahoma, who, as of July 1, 2006, has already    |
  |                                                                       |
11|reached a normal retirement age or who on or after July 1, 2006,       |
  |                                                                       |
12|reaches a normal retirement age as defined by paragraph 24 of          |
  |                                                                       |
13|Section 17-101 of this title, shall be eligible to have a retirement   |
  |                                                                       |
14|benefit computed as provided by this section.  If a member is          |
  |                                                                       |
15|eligible for the benefit computation authorized by this section, the   |
  |                                                                       |
16|average salary used to compute the retirement benefit of the member    |
  |                                                                       |
17|shall be governed by the provisions of this section and such           |
  |                                                                       |
18|provisions shall govern in the event of conflict between this          |
  |                                                                       |
19|section and the provisions of Section 17-116.2 of this title.          |
  |                                                                       |
20|    D.  An eligible employee who performs service in the manner        |
  |                                                                       |
21|prescribed by subsection E of this section and who makes payment of    |
  |                                                                       |
22|the applicable contribution deficit amount may have a retirement       |
  |                                                                       |
23|benefit computed as otherwise authorized by Section 17-105 of this     |
  |                                                                       |
24|title, but shall have such benefit computed without regard to any      |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 41
___________________________________________________________________________

 1|maximum compensation level that would otherwise be applicable to the   |
  |                                                                       |
 2|compensation of the member for any period of pre-cap removal           |
  |                                                                       |
 3|service.                                                               |
  |                                                                       |
 4|    E.  In order to have retirement benefits computed as authorized    |
  |                                                                       |
 5|by subsection C of this section, and in addition to the payment of     |
  |                                                                       |
 6|the contribution deficit amount required by this section, in order     |
  |                                                                       |
 7|to have any pre-cap removal service included in the retirement         |
  |                                                                       |
 8|benefit computation of the member using the average salary earned      |
  |                                                                       |
 9|during such period of participating service subject to the maximum     |
  |                                                                       |
10|average salary amount, the member shall be required to perform one     |
  |                                                                       |
11|(1) year of participating service on or after the date as of which     |
  |                                                                       |
12|the member reaches a normal retirement age, for each two (2) years     |
  |                                                                       |
13|of service performed prior to July 1, 1995.  For purposes of this      |
  |                                                                       |
14|section, any year of service performed prior to the effective date     |
  |                                                                       |
15|of this act after a member reached a normal retirement age shall       |
  |                                                                       |
16|qualify for purposes of the retirement benefit computation             |
  |                                                                       |
17|authorized by this section.                                            |
  |                                                                       |
18|    F.  One (1) year of participating service performed by an          |
  |                                                                       |
19|eligible member who, prior to the effective date of this act has       |
  |                                                                       |
20|reached a normal retirement age or, who on or after July 1, 2006,      |
  |                                                                       |
21|reaches a normal retirement age, shall result in the inclusion of      |
  |                                                                       |
22|the two (2) years of participating service immediately preceding       |
  |                                                                       |
23|July 1, 1995, in a retirement benefit computation using the average    |
  |                                                                       |
24|salary of the member, subject to the maximum average salary amount.    |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 42
___________________________________________________________________________

 1|For each additional year of participating service performed by the     |
  |                                                                       |
 2|eligible member thereafter, whether such service has been performed    |
  |                                                                       |
 3|prior to the effective date of this act or whether such service is     |
  |                                                                       |
 4|performed on or after the effective date of this act, the two (2)      |
  |                                                                       |
 5|next succeeding years of pre-cap removal service performed prior to    |
  |                                                                       |
 6|the end of the preceding two-year period may be included in the        |
  |                                                                       |
 7|benefit computation without regard to the maximum compensation level   |
  |                                                                       |
 8|of the member that would otherwise be applicable to such pre-cap       |
  |                                                                       |
 9|removal service.                                                       |
  |                                                                       |
10|    G.  The eligible member shall be required to make payment to the   |
  |                                                                       |
11|Teachers' Retirement System of Oklahoma of the contribution deficit    |
  |                                                                       |
12|amount for any year of service performed on or after July 1, 1987,     |
  |                                                                       |
13|but not later than June 30, 1995, as prescribed by subsections H       |
  |                                                                       |
14|through K of this section in order to have any years of pre-cap        |
  |                                                                       |
15|removal service included in the retirement benefit computation using   |
  |                                                                       |
16|the average salary of the member subject to the maximum average        |
  |                                                                       |
17|salary amount.                                                         |
  |                                                                       |
18|    H.  In order to have years of service included in the benefit      |
  |                                                                       |
19|computation using average salary subject to the maximum average        |
  |                                                                       |
20|salary amount, the member shall be required to make payment of the     |
  |                                                                       |
21|contribution deficit for the following years of service and in the     |
  |                                                                       |
22|sequence prescribed by subsection I of this section according to the   |
  |                                                                       |
23|adjustments required by subparagraphs a and b of paragraph 1 of        |
  |                                                                       |
24|subsection A of this section:                                          |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 43
___________________________________________________________________________

 1|    1.  July 1, 1987, through June 30, 1988;                           |
  |                                                                       |
 2|    2.  July 1, 1988, through June 30, 1989;                           |
  |                                                                       |
 3|    3.  July 1, 1989, through June 30, 1990;                           |
  |                                                                       |
 4|    4.  July 1, 1990, through June 30, 1991;                           |
  |                                                                       |
 5|    5.  July 1, 1991, through June 30, 1992;                           |
  |                                                                       |
 6|    6.  July 1, 1992, through June 30, 1993;                           |
  |                                                                       |
 7|    7.  July 1, 1993, through June 30, 1994; and                       |
  |                                                                       |
 8|    8.  July 1, 1994, through June 30, 1995.                           |
  |                                                                       |
 9|    I.  For each year of service performed by the eligible member      |
  |                                                                       |
10|prior to the effective date of this act and after having reached a     |
  |                                                                       |
11|normal retirement age, or for each year of service performed by the    |
  |                                                                       |
12|member after reaching a normal retirement age on or after the          |
  |                                                                       |
13|effective date of this act, the member shall be required to make       |
  |                                                                       |
14|payment of the contribution deficit amount for each year of service    |
  |                                                                       |
15|beginning with the years described in paragraphs 7 and 8 of            |
  |                                                                       |
16|subsection H of this section.  For each additional year of service     |
  |                                                                       |
17|performed by the eligible member after the normal retirement age of    |
  |                                                                       |
18|the member, the member shall make payment of the contribution          |
  |                                                                       |
19|deficit amount for each of the next two (2) years of service as        |
  |                                                                       |
20|described in:                                                          |
  |                                                                       |
21|    1.  Paragraphs 5 and 6 of subsection H of this section;            |
  |                                                                       |
22|    2.  Paragraphs 3 and 4 of subsection H of this section; and        |
  |                                                                       |
23|    3.  Paragraphs 1 and 2 of subsection H of this section.            |
  |                                                                       |
24|                                                                       |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 44
___________________________________________________________________________

 1|    J.  After making payment of all required contribution deficit      |
  |                                                                       |
 2|amounts for all periods of service described in paragraphs 1 through   |
  |                                                                       |
 3|8 of subsection H of this section, an eligible member who has          |
  |                                                                       |
 4|performed any additional years of service after having reached a       |
  |                                                                       |
 5|normal retirement age, or for each year of service performed by the    |
  |                                                                       |
 6|member after reaching a normal retirement age on or after the          |
  |                                                                       |
 7|effective date of this act, the member may then include any            |
  |                                                                       |
 8|additional two-year period of service performed prior to July 1,       |
  |                                                                       |
 9|1987, using the average salary of the member, subject to the maximum   |
  |                                                                       |
10|average salary amount, in the retirement benefit computation for       |
  |                                                                       |
11|such years of service by performing one (1) additional year of         |
  |                                                                       |
12|service.                                                               |
  |                                                                       |
13|    K.  No contribution deficit payments shall be required of the      |
  |                                                                       |
14|eligible member with respect to years of service performed prior to    |
  |                                                                       |
15|July 1, 1987, if such years of service are included in the             |
  |                                                                       |
16|retirement benefit computation of the member using average salary as   |
  |                                                                       |
17|otherwise authorized by this section, subject to the maximum average   |
  |                                                                       |
18|salary amount.                                                         |
  |                                                                       |
19|    L.  An eligible member may make the payment of the contribution    |
  |                                                                       |
20|deficit amount required by this section at any time prior to the       |
  |                                                                       |
21|retirement of the member from the System; however, no years of         |
  |                                                                       |
22|pre-cap removal service for which full payment of the required         |
  |                                                                       |
23|contribution deficit has not been made pursuant to the requirements    |
  |                                                                       |
24|of this section may be included in the retirement benefit              |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 45
___________________________________________________________________________

 1|computation of the otherwise eligible member using the average         |
  |                                                                       |
 2|salary of the member for such period, subject to the maximum average   |
  |                                                                       |
 3|salary amount.                                                         |
  |                                                                       |
 4|    M.  Any pre-cap removal years of service for which the required    |
  |                                                                       |
 5|contribution deficit payment has not been made to the System shall     |
  |                                                                       |
 6|only be included in a retirement benefit computation using the         |
  |                                                                       |
 7|maximum compensation level in effect for the member at the time such   |
  |                                                                       |
 8|years of service were performed.                                       |
  |                                                                       |
 9|    N.  All payments to the System for pre-cap removal service shall   |
  |                                                                       |
10|be made prior to the date as of which a member retires.  No payments   |
  |                                                                       |
11|to the System for pre-cap removal service otherwise authorized by      |
  |                                                                       |
12|this section shall be made after a member retires from the System      |
  |                                                                       |
13|and begins to receive benefits.                                        |
  |                                                                       |
14|    O.  Any eligible member who, prior to the effective date of this   |
  |                                                                       |
15|act, has not previously made an election for payment of employee       |
  |                                                                       |
16|contributions on a maximum compensation level of Twenty-five           |
  |                                                                       |
17|Thousand Dollars ($25,000.00) for pre-cap removal service may file     |
  |                                                                       |
18|an election with the System to make payment of the required            |
  |                                                                       |
19|contribution deficit amount pursuant to this section.  Such an         |
  |                                                                       |
20|election shall be irrevocable.                                         |
  |                                                                       |
21|    P.  No participating employer of the System shall make payment     |
  |                                                                       |
22|of any required contribution deficit amount on behalf of any           |
  |                                                                       |
23|otherwise eligible member, whether directly or indirectly, in order    |
  |                                                                       |
24|                                                                       |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 46
___________________________________________________________________________

 1|for the member to have retirement benefits computed according to the   |
  |                                                                       |
 2|provisions of this section.                                            |
  |                                                                       |
 3|    Q.  No member of the System who has retired prior to July 1,       |
  |                                                                       |
 4|2006, shall be eligible to make any payments of the contribution       |
  |                                                                       |
 5|deficit amount and no such member shall have the ability to have a     |
  |                                                                       |
 6|retirement benefit recomputed as a result of the provisions of this    |
  |                                                                       |
 7|section.                                                               |
  |                                                                       |
 8|    R.  The additional retirement benefit attributable to the          |
  |                                                                       |
 9|provisions of this section may be computed for members who retire on   |
  |                                                                       |
10|or after July 1, 2006, but prior to January 1, 2007, but the           |
  |                                                                       |
11|additional retirement benefit attributable to the provisions of this   |
  |                                                                       |
12|section shall not be payable until January 1, 2007.  On and after      |
  |                                                                       |
13|January 1, 2007, the additional retirement benefit attributable to     |
  |                                                                       |
14|the provisions of this section shall be added to the retirement        |
  |                                                                       |
15|benefit amount of any member who retires on or after July 1, 2006,     |
  |                                                                       |
16|and prior to January 1, 2007, and such increased benefit amount        |
  |                                                                       |
17|shall be payable to the member or any beneficiary of the member as     |
  |                                                                       |
18|otherwise provided pursuant to the provisions of Section 17-101 of     |
  |                                                                       |
19|this title in the same manner as other retirement benefits are         |
  |                                                                       |
20|payable.                                                               |
  |                                                                       |
21|    SECTION 5.     AMENDATORY     70 O.S. 2011, Section 17-116.9, is   |
  |                                                                       |
22|amended to read as follows:                                            |
  |                                                                       |
23|    Section 17-116.9.  Any member of the Teachers' Retirement System   |
  |                                                                       |
24|of Oklahoma, who taught kindergarten on public school property prior   |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 47
___________________________________________________________________________

 1|to the state-supported kindergarten, and who subsequently taught in    |
  |                                                                       |
 2|the public schools and has met the necessary qualifications, may       |
  |                                                                       |
 3|receive credit in the System for such teaching service by, prior to    |
  |                                                                       |
 4|January 1, 1991, making back contributions of ten percent (10%) of     |
  |                                                                       |
 5|salary plus ten percent (10%) interest to the System as required by    |
  |                                                                       |
 6|the Board of Trustees.  Effective January 1, 1991, to receive the      |
  |                                                                       |
 7|credit in the System for such teaching service, the member shall pay   |
  |                                                                       |
 8|the amount determined by the Board of Trustees pursuant to Section     |
  |                                                                       |
 9|30 Section 17-116.8 of this act title.                                 |
  |                                                                       |
10|    SECTION 6.     AMENDATORY     70 O.S. 2011, Section 17-120, as     |
  |                                                                       |
11|amended by Section 5, Chapter 129, O.S.L. 2016 (70 O.S. Supp. 2018,    |
  |                                                                       |
12|Section 17-120), is amended to read as follows:                        |
  |                                                                       |
13|    Section 17-120.  The employer of each member shall submit all      |
  |                                                                       |
14|required school reports and all employer and employee contributions    |
  |                                                                       |
15|of each member due the Retirement System for payroll periods ending    |
  |                                                                       |
16|during the calendar month within ten (10) days of the last day of      |
  |                                                                       |
17|each calendar month.  Any required school reports and employer and     |
  |                                                                       |
18|employee contribution amounts not submitted to the Retirement System   |
  |                                                                       |
19|after thirty (30) days from the end of the payroll month shall be      |
  |                                                                       |
20|subject to a monthly late charge of one and one-half percent (1        |
  |                                                                       |
21|1/2%) of the unpaid balance to be paid by the employer to the          |
  |                                                                       |
22|Retirement System compounding monthly for each month payment is not    |
  |                                                                       |
23|received.  The Board System may waive late fees for good cause         |
  |                                                                       |
24|shown.                                                                 |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 48
___________________________________________________________________________

 1|    SECTION 7.     REPEALER     70 O.S. 2011, Section 17-116, is       |
  |                                                                       |
 2|hereby repealed.                                                       |
  |                                                                       |
 3|    SECTION 8.  This act shall become effective July 1, 2019.          |
  |                                                                       |
 4|    SECTION 9.  It being immediately necessary for the preservation    |
  |                                                                       |
 5|of the public peace, health or safety, an emergency is hereby          |
  |                                                                       |
 6|declared to exist, by reason whereof this act shall take effect and    |
  |                                                                       |
 7|be in full force from and after its passage and approval.              |
  |                                                                       |
 8|                                                                       |
  |                                                                       |
 9|COMMITTEE REPORT BY: COMMITTEE ON BANKING, FINANCIAL SERVICES AND      |
  |PENSIONS, dated 03/28/2019 - DO PASS.                                  |
10|                                                                       |
  |                                                                       |
11|                                                                       |
  |                                                                       |
12|                                                                       |
  |                                                                       |
13|                                                                       |
  |                                                                       |
14|                                                                       |
  |                                                                       |
15|                                                                       |
  |                                                                       |
16|                                                                       |
  |                                                                       |
17|                                                                       |
  |                                                                       |
18|                                                                       |
  |                                                                       |
19|                                                                       |
  |                                                                       |
20|                                                                       |
  |                                                                       |
21|                                                                       |
  |                                                                       |
22|                                                                       |
  |                                                                       |
23|                                                                       |
  |                                                                       |
24|                                                                       |
  |                                                                       |
arsid163600 SB772 HFLR                                             Page 49
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