Bill Text For SB0979 - Introduced

 1|                          STATE OF OKLAHOMA                            |
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 2|             1st Session of the 57th Legislature (2019)                |
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 3|SENATE BILL 979                      By: Allen                         |
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 6|                            AS INTRODUCED                              |
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 7|       An Act relating to teachers' retirement; amending 70            |
  |       O.S. 2011, Sections 17-101, as last amended by                  |
 8|       Section 1, Chapter 114, O.S.L. 2014 and 17-116.2B, as           |
  |       amended by Section 2, Chapter 44, O.S.L. 2018 (70               |
 9|       O.S. Supp. 2018, Sections 17-101 and 17-116.2B),                |
  |       which relate to definitions and amount of retirement            |
10|       benefits; amending definition of average salary;                |
  |       modifying calculation for certain benefits; and                 |
11|       updating statutory references.                                  |
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14|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:                  |
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15|    SECTION 1.     AMENDATORY     70 O.S. 2011, Section 17-101, as     |
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16|last amended by Section 1, Chapter 114, O.S.L. 2014 (70 O.S. Supp.     |
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17|2018, Section 17-101), is amended to read as follows:                  |
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18|    Section 17-101.  The following words and phrases as used in this   |
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19|act Section 17-101 et seq. of this title, unless a different meaning   |
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20|is clearly required by the context, shall have the following           |
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21|meanings:                                                              |
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22|    (1)  "Retirement system" shall mean the Teachers' Retirement       |
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23|System of Oklahoma, as defined in Section 17-102 of this title.        |
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24|                                                                       |
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   Req. No. 215                                                    Page 1
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 1|    (2)  "Public school" shall mean a school district, a state         |
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 2|college or university, the State Board of Education, the State Board   |
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 3|of Career and Technology Education and any other state educational     |
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 4|entity conducted within the state supported wholly or partly by        |
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 5|public funds and operating under the authority and supervision of a    |
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 6|legally constituted board or agency having authority and               |
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 7|responsibility for any function of public education.  "Public          |
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 8|school" shall also mean a tuition free, nonprofit alternative school   |
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 9|of choice that provides education, therapeutic counseling and          |
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10|outreach programs which is aligned with a school district and which    |
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11|receives grant funds from governmental sources.                        |
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12|    (3)  "Classified personnel" shall mean any teacher, principal,     |
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13|superintendent, supervisor, administrator, librarian, certified or     |
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14|registered nurse, college professor, or college president whose        |
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15|salary is paid wholly or in part from public funds.  An employee of    |
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16|any state department, board, board of regents or board of trustees,    |
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17|who is in a supervisory or an administrative position, the function    |
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18|of which is primarily devoted to public education, shall be            |
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19|considered classified personnel under the meaning of this act          |
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20|Section 17-101 et seq. of this title, at the discretion of the Board   |
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21|of Trustees of the Teachers' Retirement System.  The term "teacher"    |
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22|shall also include instructors and counselors employed by the          |
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23|Department of Corrections and holding valid teaching certificates      |
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24|issued by the State Department of Education.  Provided, that a         |
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   Req. No. 215                                                    Page 2
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 1|person employed by the Department of Corrections as an instructor or   |
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 2|counselor shall have been actively engaged in the teaching             |
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 3|profession for a period of not less than three (3) years prior to      |
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 4|employment to be eligible to participate in the Oklahoma Teachers'     |
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 5|Retirement System.  The Department of Corrections shall contribute     |
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 6|the employer's share to the Oklahoma Teachers' Retirement System.      |
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 7|    (4)  "Nonclassified optional personnel" shall include cooks,       |
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 8|janitors, maintenance personnel not in a supervisory capacity, bus     |
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 9|drivers, noncertified or nonregistered nurses, noncertified            |
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10|librarians, and clerical employees of the public schools, state        |
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11|colleges, universities or any state department, board, board of        |
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12|regents or board of trustees, the functions of which are primarily     |
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13|devoted to public education and whose salaries are paid wholly or in   |
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14|part from public funds.                                                |
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15|    (5)  "Employer" shall mean the state and any of its designated     |
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16|agents or agencies with responsibility and authority for public        |
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17|education, such as boards of education of elementary and independent   |
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18|school districts, boards of regents, boards of control or any other    |
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19|agency of and within the state by which a person may be employed for   |
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20|service in public education.  "Employer" shall also mean the board     |
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21|of directors of a tuition free, nonprofit alternative school of        |
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22|choice that provides education, therapeutic counseling and outreach    |
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23|programs which is aligned with a school district and which receives    |
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24|grant funds from governmental sources.                                 |
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   Req. No. 215                                                    Page 3
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 1|    (6)  "Member" shall mean any teacher or other employee included    |
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 2|in the membership of the system as provided in Section 17-103 of       |
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 3|this title.                                                            |
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 4|    (7)  "Board of Trustees" shall mean the board provided for in      |
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 5|Section 17-106 of this title to administer the retirement system.      |
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 6|    (8)  "Service" shall mean service as a classified or               |
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 7|nonclassified optional employee in the public school system, or any    |
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 8|other service devoted primarily to public education in the state.      |
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 9|    (9)  "Prior service" shall mean service rendered prior to July     |
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10|1, 1943.                                                               |
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11|    (10)  "Membership service" shall mean service as a member of the   |
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12|classified or nonclassified personnel as defined in paragraphs (3)     |
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13|and (4) of this section.                                               |
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14|    (11)  "Creditable service" shall mean membership service plus      |
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15|any prior service authorized under this title.                         |
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16|    (12)  "Annuitant" shall mean any person in receipt of a            |
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17|retirement allowance as provided in this title.                        |
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18|    (13)  "Accumulated contributions" shall mean the sum of all        |
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19|amounts deducted from the compensation of a member and credited to     |
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20|his individual account in the Teacher Savings Fund, together with      |
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21|interest as of June 30, 1968.                                          |
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22|    (14)  "Earnable compensation" shall mean the full rate of the      |
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23|compensation that would be payable to a member if he worked the full   |
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24|normal working time.                                                   |
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   Req. No. 215                                                    Page 4
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 1|    (15)  "Average salary":                                            |
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 2|         (a)  for those members who joined the System prior to July    |
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 3|              1, 1992, shall mean the average of the salaries for      |
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 4|              the three (3) years, and effective July 1, 2020, for     |
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 5|              the seven (7) years, on which the highest                |
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 6|              contributions to the Teachers' Retirement System was     |
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 7|              paid not to exceed the maximum contribution level        |
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 8|              specified in Section 17-116.2 of this title or the       |
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 9|              maximum compensation level specified in subsection       |
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10|              (28) of this section.  Provided, no member shall         |
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11|              retire with an average salary in excess of Twenty-five   |
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12|              Thousand Dollars ($25,000.00) unless the member has      |
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13|              made the required election and paid the required         |
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14|              contributions on such salary in excess of Twenty-five    |
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15|              Thousand Dollars ($25,000.00), or unless an eligible     |
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16|              member fulfills the requirements of Section 17-116.2C    |
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17|              of this title in order to have pre-cap removal service   |
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18|              included in the retirement benefit computation of the    |
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19|              member using the regular annual compensation of the      |
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20|              member for any pre-cap removal year of service so        |
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21|              included subject to the maximum average salary amount,   |
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22|              and                                                      |
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23|         (b)  for those members who join the System after June 30,     |
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24|              1992, shall mean the average of the salaries for five    |
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   Req. No. 215                                                    Page 5
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 1|              (5) consecutive years, and effective July 1, 2020, for   |
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 2|              the seven (7) years, on which the highest contribution   |
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 3|              to the Teachers' Retirement System was paid.  Only       |
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 4|              salary on which required contributions have been made    |
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 5|              may be used in computing average salary.                 |
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 6|    (16)  "Annuity" shall mean payments for life derived from the      |
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 7|"accumulated contributions" of a member.  All annuities shall be       |
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 8|payable in equal monthly installments.                                 |
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 9|    (17)  "Pension" shall mean payments for life derived from money    |
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10|provided by the employer.  All pensions shall be payable in equal      |
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11|monthly installments.                                                  |
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12|    (18)  "Monthly retirement allowance" is one-twelfth (1/12) of      |
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13|the annual retirement allowance which shall be payable monthly.        |
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14|    (19)  "Retirement Benefit Fund" shall mean the fund from which     |
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15|all retirement benefits shall be paid based on such mortality tables   |
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16|as shall be adopted by the Board of Trustees.                          |
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17|    (20)  "Actuary" shall mean a person especially skilled through     |
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18|training and experience in financial calculation respecting the        |
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19|expectancy and duration of life.                                       |
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20|    (21)  "Actuarial equivalent" shall mean a benefit of equal value   |
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21|when computed upon the basis of such mortality and other tables as     |
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22|shall be adopted by the Board of Trustees.                             |
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23|    (22)  The masculine pronoun, whenever used, shall include the      |
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24|feminine.                                                              |
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   Req. No. 215                                                    Page 6
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 1|    (23)  "Actuarially determined cost" shall mean the single sum      |
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 2|which is actuarially equivalent in value to a specified pension        |
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 3|amount as determined on the basis of mortality and interest            |
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 4|assumptions adopted by the Board of Trustees.                          |
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 5|    (24)  "Normal retirement age" means the earliest date upon         |
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 6|which:                                                                 |
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 7|         (a)  a member reaches the age sixty-two (62) with respect     |
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 8|              to a member whose first creditable service occurs        |
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 9|              prior to November 1, 2011, unless the member reaches a   |
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10|              normal retirement date pursuant to subparagraph (c) or   |
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11|              subparagraph (d) of this paragraph, or                   |
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12|         (b)   a member reaches the age of sixty-five (65) with        |
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13|              respect to a member whose first creditable service       |
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14|              occurs on or after November 1, 2011, or with respect     |
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15|              to a member whose first creditable service occurs on     |
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16|              or after November 1, 2011, reaches a normal retirement   |
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17|              date pursuant to subparagraph (d) of this paragraph      |
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18|              having attained a minimum age of sixty (60) years, or    |
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19|         (c)  the age at which the sum of a member's age and number    |
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20|              of years of creditable service total eighty (80), with   |
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21|              respect to a member whose first creditable service       |
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22|              occurred prior to July 1, 1992, and who does not reach   |
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23|              a normal retirement age pursuant to subparagraph (a)     |
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24|              of this paragraph, or                                    |
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   Req. No. 215                                                    Page 7
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 1|         (d)  the age at which the sum of a member's age and number    |
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 2|              of years of creditable service total ninety (90), with   |
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 3|              respect to a member whose first creditable service       |
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 4|              occurred on or after July 1, 1992, but prior to          |
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 5|              November 1, 2011, if the member does not reach a         |
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 6|              normal retirement age pursuant to subparagraph (a) of    |
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 7|              this paragraph.                                          |
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 8|    (25)  "Regular annual compensation" means salary plus fringe       |
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 9|benefits, excluding the flexible benefit allowance pursuant to         |
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10|Section 26-105 of this title and for purposes pursuant to Section      |
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11|17-101 et seq. of this title.  For purposes of this definition,        |
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12|regular annual compensation shall include:                             |
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13|         (a)   salary which accrues on a regular basis in proportion   |
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14|              to the service performed, including payments for staff   |
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15|              development,                                             |
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16|         (b)   amounts that would otherwise qualify as salary under    |
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17|              paragraph (a) of this subsection but are not received    |
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18|              directly by the member pursuant to a good faith,         |
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19|              voluntary written salary reduction agreement in order    |
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20|              to finance payments to a deferred compensation or        |
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21|              tax-sheltered annuity program or to finance benefit      |
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22|              options under a cafeteria plan qualifying under the      |
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23|              United States Internal Revenue Code, 26 U.S.C.,          |
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24|              Section 101 et seq.,                                     |
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   Req. No. 215                                                    Page 8
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 1|         (c)   group health and disability insurance, group term       |
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 2|              life insurance, annuities and pension plans, provided    |
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 3|              on a periodic basis to all qualified employees of the    |
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 4|              employer, which qualify as fringe benefits under the     |
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 5|              United States Internal Revenue Code, and                 |
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 6|         (d)   excluded from regular annual compensation are:          |
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 7|              1.    expense reimbursement payments,                    |
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 8|              2.    office, vehicle, housing or other maintenance      |
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 9|                   allowances,                                         |
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10|              3.    the flexible benefit allowance provided pursuant   |
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11|                   to Section 26-105 of this title,                    |
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12|              4.    payment for unused vacation and sick leave,        |
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13|              5.    any payment made for reason of termination or      |
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14|                   retirement not specifically provided for in         |
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15|                   subparagraphs (a) through (c) of this subsection,   |
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16|              6.    maintenance or other nonmonetary compensation,     |
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17|              7.    payment received as an independent contractor or   |
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18|                   consultant, pursuant to a lawful contract which     |
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19|                   complies with the requirements of subsection B of   |
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20|                   Section 6-101.2 of this title,                      |
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21|              8.    any benefit payments not made pursuant to a        |
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22|                   valid employment agreement,                         |
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23|              9.    compensation for clinical related activity         |
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24|                   performed in the University of Oklahoma Health      |
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   Req. No. 215                                                    Page 9
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 1|                   Sciences Center (OUHSC) Professional Practice       |
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 2|                   Plan or Oklahoma State University Center for        |
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 3|                   Health Sciences (OSU-CHS) Professional Practice     |
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 4|                   Plan,                                               |
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 5|             10.    any other compensation not described in            |
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 6|                   subparagraphs (a) through (c) of this subsection.   |
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 7|    (26)  "Teacher" means classified personnel and nonclassified       |
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 8|optional personnel.                                                    |
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 9|    (27)  "Active classroom teacher" means a person employed by a      |
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10|school district to teach students specifically identified classes      |
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11|for specifically identified subjects during the course of a            |
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12|semester, and who holds a valid certificate or license issued by and   |
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13|in accordance with the rules and regulations of the State Board of     |
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14|Education.                                                             |
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15|    (28)  "Maximum compensation level" shall, except as otherwise      |
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16|authorized pursuant to the provisions of Section 17-116.2C of this     |
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17|title, mean:                                                           |
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18|         (a)  Twenty-five Thousand Dollars ($25,000.00) for            |
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19|              creditable service authorized and performed prior to     |
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20|              July 1, 1995, for members not electing a higher          |
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21|              maximum compensation level,                              |
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22|         (b)  Forty Thousand Dollars ($40,000.00) for creditable       |
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23|              service authorized and performed prior to July 1,        |
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24|                                                                       |
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   Req. No. 215                                                    Page 10
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 1|              1995, for members electing a maximum compensation        |
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 2|              level in excess of Twenty-five Thousand Dollars          |
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 3|              ($25,000.00),                                            |
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 4|         (c)  Twenty-seven Thousand Five Hundred Dollars               |
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 5|              ($27,500.00) for members who, as of June 30, 1995, had   |
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 6|              elected to have a maximum compensation level not in      |
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 7|              excess of Twenty-five Thousand Dollars ($25,000.00),     |
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 8|              and who were employed by an entity or institution        |
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 9|              within The Oklahoma State System of Higher Education     |
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10|              for creditable service authorized and performed on or    |
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11|              after July 1, 1995, but not later than June 30, 1996,    |
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12|              if such member does not elect a higher maximum           |
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13|              compensation level for this period as authorized by      |
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14|              Section 17-116.2A of this title,                         |
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15|         (d)  Thirty-two Thousand Five Hundred Dollars ($32,500.00)    |
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16|              for members employed by a comprehensive university if    |
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17|              the member meets the requirements imposed by Section     |
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18|              17-116.2A of this title and the member elects to         |
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19|              impose a higher maximum compensation level for service   |
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20|              performed on or after July 1, 1995, but not later than   |
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21|              June 30, 1996,                                           |
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22|         (e)  Forty-four Thousand Dollars ($44,000.00) for members     |
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23|              who, as of June 30, 1995, had elected to have a          |
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24|              maximum compensation level in excess of Twenty-five      |
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   Req. No. 215                                                    Page 11
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 1|              Thousand Dollars ($25,000.00), and who were employed     |
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 2|              by an entity or institution within The Oklahoma State    |
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 3|              System of Higher Education for creditable service        |
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 4|              authorized and performed on or after July 1, 1995, but   |
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 5|              not later than June 30, 1996, if such member does not    |
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 6|              elect a higher maximum compensation level for this       |
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 7|              period as authorized by Section 17-116.2A of this        |
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 8|              title,                                                   |
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 9|         (f)  Forty-nine Thousand Dollars ($49,000.00) for members     |
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10|              employed by a comprehensive university if the member     |
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11|              meets the requirements imposed by Section 17-116.2A of   |
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12|              this title and the member elects to impose a higher      |
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13|              maximum compensation level for service performed on or   |
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14|              after July 1, 1995, but not later than June 30, 1996,    |
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15|         (g)  the following amounts for creditable service             |
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16|              authorized and performed by members employed by a        |
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17|              comprehensive university, based upon the election of     |
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18|              the member in effect as of June 30, 1995:                |
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19|              1.   for members who elected a maximum compensation      |
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20|                   level not in excess of Twenty-five Thousand         |
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21|                   Dollars ($25,000.00):                               |
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22|                   (i)  Thirty-two Thousand Five Hundred Dollars       |
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23|                        ($32,500.00) for service authorized and        |
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24|                                                                       |
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   Req. No. 215                                                    Page 12
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 1|                        performed on or after July 1, 1996, but not    |
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 2|                        later than June 30, 1997,                      |
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 3|                  (ii)  Thirty-seven Thousand Five Hundred Dollars     |
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 4|                        ($37,500.00) for service authorized and        |
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 5|                        performed on or after July 1, 1997, but not    |
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 6|                        later than June 30, 1998,                      |
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 7|                 (iii)  Forty-two Thousand Five Hundred Dollars        |
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 8|                        ($42,500.00) for service authorized and        |
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 9|                        performed on or after July 1, 1998, but not    |
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10|                        later than June 30, 2000,                      |
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11|                  (iv)  Forty-seven Thousand Five Hundred Dollars      |
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12|                        ($47,500.00) for service authorized and        |
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13|                        performed on or after July 1, 2000, but not    |
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14|                        later than June 30, 2001,                      |
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15|                   (v)  Fifty-two Thousand Five Hundred Dollars        |
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16|                        ($52,500.00) for service authorized and        |
  |                                                                       |
17|                        performed on or after July 1, 2001, but not    |
  |                                                                       |
18|                        later than June 30, 2002,                      |
  |                                                                       |
19|                  (vi)  Fifty-seven Thousand Five Hundred Dollars      |
  |                                                                       |
20|                        ($57,500.00) for service authorized and        |
  |                                                                       |
21|                        performed on or after July 1, 2002, but not    |
  |                                                                       |
22|                        later than June 30, 2003,                      |
  |                                                                       |
23|                                                                       |
  |                                                                       |
24|                                                                       |
  |                                                                       |
   Req. No. 215                                                    Page 13
___________________________________________________________________________

 1|                 (vii)  Sixty-two Thousand Five Hundred Dollars        |
  |                                                                       |
 2|                        ($62,500.00) for service authorized and        |
  |                                                                       |
 3|                        performed on or after July 1, 2003, but not    |
  |                                                                       |
 4|                        later than June 30, 2004,                      |
  |                                                                       |
 5|                (viii)  Sixty-seven Thousand Five Hundred Dollars      |
  |                                                                       |
 6|                        ($67,500.00) for service authorized and        |
  |                                                                       |
 7|                        performed on or after July 1, 2004, but not    |
  |                                                                       |
 8|                        later than June 30, 2005,                      |
  |                                                                       |
 9|                  (ix)  Seventy-two Thousand Five Hundred Dollars      |
  |                                                                       |
10|                        ($72,500.00) for service authorized and        |
  |                                                                       |
11|                        performed on or after July 1, 2005, but not    |
  |                                                                       |
12|                        later than June 30, 2006,                      |
  |                                                                       |
13|                   (x)  Seventy-seven Thousand Five Hundred Dollars    |
  |                                                                       |
14|                        ($77,500.00) for service authorized and        |
  |                                                                       |
15|                        performed on or after July 1, 2006, but not    |
  |                                                                       |
16|                        later than June 30, 2007,                      |
  |                                                                       |
17|                  (xi)  the full amount of regular annual              |
  |                                                                       |
18|                        compensation for service authorized and        |
  |                                                                       |
19|                        performed on or after July 1, 2007, and        |
  |                                                                       |
20|              2.   for members who elected a maximum compensation      |
  |                                                                       |
21|                   level in excess of Twenty-five Thousand Dollars     |
  |                                                                       |
22|                   ($25,000.00):                                       |
  |                                                                       |
23|                                                                       |
  |                                                                       |
24|                                                                       |
  |                                                                       |
   Req. No. 215                                                    Page 14
___________________________________________________________________________

 1|                   (i)  Forty-nine Thousand Dollars ($49,000.00) for   |
  |                                                                       |
 2|                        service authorized and performed on or after   |
  |                                                                       |
 3|                        July 1, 1996, but not later than June 30,      |
  |                                                                       |
 4|                        1997,                                          |
  |                                                                       |
 5|                  (ii)  Fifty-four Thousand Dollars ($54,000.00) for   |
  |                                                                       |
 6|                        service authorized and performed on or after   |
  |                                                                       |
 7|                        July 1, 1997, but not later than June 30,      |
  |                                                                       |
 8|                        1998,                                          |
  |                                                                       |
 9|                 (iii)  Fifty-nine Thousand Dollars ($59,000.00) for   |
  |                                                                       |
10|                        service authorized and performed on or after   |
  |                                                                       |
11|                        July 1, 1998, but not later than June 30,      |
  |                                                                       |
12|                        2000,                                          |
  |                                                                       |
13|                  (iv)  Sixty-four Thousand Dollars ($64,000.00) for   |
  |                                                                       |
14|                        service authorized and performed on or after   |
  |                                                                       |
15|                        July 1, 2000, but not later than June 30,      |
  |                                                                       |
16|                        2001,                                          |
  |                                                                       |
17|                   (v)  Sixty-nine Thousand Dollars ($69,000.00) for   |
  |                                                                       |
18|                        service authorized and performed on or after   |
  |                                                                       |
19|                        July 1, 2001, but not later than June 30,      |
  |                                                                       |
20|                        2002,                                          |
  |                                                                       |
21|                  (vi)  Seventy-four Thousand Dollars ($74,000.00)     |
  |                                                                       |
22|                        for service authorized and performed on or     |
  |                                                                       |
23|                        after July 1, 2002, but not later than June    |
  |                                                                       |
24|                        30, 2003,                                      |
  |                                                                       |
   Req. No. 215                                                    Page 15
___________________________________________________________________________

 1|                 (vii)  Seventy-nine Thousand Dollars ($79,000.00)     |
  |                                                                       |
 2|                        for service authorized and performed on or     |
  |                                                                       |
 3|                        after July 1, 2003, but not later than June    |
  |                                                                       |
 4|                        30, 2004,                                      |
  |                                                                       |
 5|                (viii)  Eighty-four Thousand Dollars ($84,000.00)      |
  |                                                                       |
 6|                        for service authorized and performed on or     |
  |                                                                       |
 7|                        after July 1, 2004, but not later than June    |
  |                                                                       |
 8|                        30, 2005,                                      |
  |                                                                       |
 9|                  (ix)  Eighty-nine Thousand Dollars ($89,000.00)      |
  |                                                                       |
10|                        for service authorized and performed on or     |
  |                                                                       |
11|                        after July 1, 2005, but not later than June    |
  |                                                                       |
12|                        30, 2006,                                      |
  |                                                                       |
13|                   (x)  Ninety-four Thousand Dollars ($94,000.00)      |
  |                                                                       |
14|                        for service authorized and performed on or     |
  |                                                                       |
15|                        after July 1, 2006, but not later than June    |
  |                                                                       |
16|                        30, 2007,                                      |
  |                                                                       |
17|                  (xi)  the full amount of regular annual              |
  |                                                                       |
18|                        compensation for service authorized and        |
  |                                                                       |
19|                        performed on or after July 1, 2007,            |
  |                                                                       |
20|         (h)  the full amount of regular annual compensation of:       |
  |                                                                       |
21|              1.   a member of the retirement system not employed by   |
  |                                                                       |
22|                   an entity or institution within The Oklahoma        |
  |                                                                       |
23|                   State System of Higher Education for all            |
  |                                                                       |
24|                                                                       |
  |                                                                       |
   Req. No. 215                                                    Page 16
___________________________________________________________________________

 1|                   creditable service authorized and performed on or   |
  |                                                                       |
 2|                   after July 1, 1995,                                 |
  |                                                                       |
 3|              2.   a member of the retirement system first employed    |
  |                                                                       |
 4|                   on or after July 1, 1995, by an entity or           |
  |                                                                       |
 5|                   institution within The Oklahoma State System of     |
  |                                                                       |
 6|                   Higher Education for all creditable service         |
  |                                                                       |
 7|                   authorized and performed on or after July 1,        |
  |                                                                       |
 8|                   1995, but not later than June 30, 1996,             |
  |                                                                       |
 9|              3.   a member of the retirement system employed by an    |
  |                                                                       |
10|                   entity or institution within The Oklahoma State     |
  |                                                                       |
11|                   System of Higher Education, other than a            |
  |                                                                       |
12|                   comprehensive university, if the member elects to   |
  |                                                                       |
13|                   impose a higher maximum compensation level for      |
  |                                                                       |
14|                   service performed on or after July 1, 1995, but     |
  |                                                                       |
15|                   not later than June 30, 1996, pursuant to           |
  |                                                                       |
16|                   subsection B of Section 17-116.2A of this title,    |
  |                                                                       |
17|              4.   a member of the retirement system who is first      |
  |                                                                       |
18|                   employed on or after July 1, 1996, by any entity    |
  |                                                                       |
19|                   or institution within The Oklahoma State System     |
  |                                                                       |
20|                   of Higher Education, including a comprehensive      |
  |                                                                       |
21|                   university, for creditable service authorized and   |
  |                                                                       |
22|                   performed on or after July 1, 1996,                 |
  |                                                                       |
23|              5.   a member of the retirement system who, as of July   |
  |                                                                       |
24|                   1, 1996, is subject to a maximum compensation       |
  |                                                                       |
   Req. No. 215                                                    Page 17
___________________________________________________________________________

 1|                   level pursuant to paragraph (g) of this             |
  |                                                                       |
 2|                   subsection if the member terminates service with    |
  |                                                                       |
 3|                   a comprehensive university and is subsequently      |
  |                                                                       |
 4|                   reemployed by a comprehensive university,           |
  |                                                                       |
 5|              6.   a member of the retirement system employed by a     |
  |                                                                       |
 6|                   comprehensive university for all service            |
  |                                                                       |
 7|                   performed on and after July 1, 2007, or             |
  |                                                                       |
 8|              7.   an eligible member of the retirement system who     |
  |                                                                       |
 9|                   fulfills the requirements of Section 2 of this      |
  |                                                                       |
10|                   act 17-116.2C of this title with respect to         |
  |                                                                       |
11|                   pre-cap removal service included in the             |
  |                                                                       |
12|                   retirement benefit computation of the member at     |
  |                                                                       |
13|                   the average salary of the member subject to the     |
  |                                                                       |
14|                   maximum average salary amount.                      |
  |                                                                       |
15|    (29)  "Comprehensive university" shall mean:                       |
  |                                                                       |
16|         (a)  the University of Oklahoma and all of its constituent    |
  |                                                                       |
17|              agencies, including the University of Oklahoma Health    |
  |                                                                       |
18|              Sciences Center, the University of Oklahoma Law Center   |
  |                                                                       |
19|              and the Geological Survey, and                           |
  |                                                                       |
20|         (b)  Oklahoma State University and all of its constituent     |
  |                                                                       |
21|              agencies, including the Oklahoma State University        |
  |                                                                       |
22|              Agricultural Experiment Station, the Oklahoma State      |
  |                                                                       |
23|              University Agricultural Extension Division, the          |
  |                                                                       |
24|              Oklahoma State University College of Veterinary          |
  |                                                                       |
   Req. No. 215                                                    Page 18
___________________________________________________________________________

 1|              Medicine, the Oklahoma State University Center for       |
  |                                                                       |
 2|              Health Sciences, the Technical Branch at Oklahoma        |
  |                                                                       |
 3|              City, the Oklahoma State University Institute of         |
  |                                                                       |
 4|              Technology-Okmulgee and Oklahoma State                   |
  |                                                                       |
 5|              University-Tulsa.                                        |
  |                                                                       |
 6|    (30)  "Retirement contract" means the document prepared by the     |
  |                                                                       |
 7|Teachers' Retirement System upon member request, which incorporates    |
  |                                                                       |
 8|member's selected retirement option, and which must be executed and    |
  |                                                                       |
 9|submitted to the Teachers' Retirement System no less than thirty       |
  |                                                                       |
10|(30) days prior to the projected retirement date.                      |
  |                                                                       |
11|    SECTION 2.     AMENDATORY     70 O.S. 2011, Section 17-116.2B,     |
  |                                                                       |
12|as amended by Section 2, Chapter 44, O.S.L. 2018 (70 O.S. Supp.        |
  |                                                                       |
13|2018, Section 17-116.2B), is amended to read as follows:               |
  |                                                                       |
14|    Section 17-116.2B.  A.  Beginning July 1, 2004, a member who has   |
  |                                                                       |
15|any creditable service as an employee of an entity or institution      |
  |                                                                       |
16|within The Oklahoma State System of Higher Education on or after       |
  |                                                                       |
17|July 1, 1995, who retires on or after the member's normal retirement   |
  |                                                                       |
18|age or whose retirement is because of disability shall receive an      |
  |                                                                       |
19|annual allowance for life, payable monthly, as follows:                |
  |                                                                       |
20|    1.  If the member becomes a member after June 30, 1995, and was    |
  |                                                                       |
21|not eligible to become a member prior to July 1, 1995, in an amount    |
  |                                                                       |
22|equal to two percent (2%) of the member's average salary upon which    |
  |                                                                       |
23|member contributions were made, multiplied by the number of the        |
  |                                                                       |
24|member's years of creditable service;                                  |
  |                                                                       |
   Req. No. 215                                                    Page 19
___________________________________________________________________________

 1|    2.  If the member became a member or is eligible to become a       |
  |                                                                       |
 2|member prior to July 1, 1995, and elected to have a maximum            |
  |                                                                       |
 3|compensation level in excess of Twenty-five Thousand Dollars           |
  |                                                                       |
 4|($25,000.00) pursuant to paragraph 1 of subsection C of Section        |
  |                                                                       |
 5|17-116.2 of this title or pursuant to subsection E of Section          |
  |                                                                       |
 6|17-116.2 of this title, or if the member's salary never exceeded       |
  |                                                                       |
 7|Twenty-five Thousand Dollars ($25,000.00) prior to July 1, 1995, in    |
  |                                                                       |
 8|an amount equal to:                                                    |
  |                                                                       |
 9|         a.   two percent (2%) of the member's average salary upon     |
  |                                                                       |
10|              which member contributions were made, not to exceed      |
  |                                                                       |
11|              Forty Thousand Dollars ($40,000.00), multiplied by the   |
  |                                                                       |
12|              number of the member's years of creditable service       |
  |                                                                       |
13|              authorized and performed prior to July 1, 1995, plus     |
  |                                                                       |
14|              any years of prior service authorized under this         |
  |                                                                       |
15|              title, plus                                              |
  |                                                                       |
16|         b.   two percent (2%) of the average of the member's          |
  |                                                                       |
17|              maximum compensation level upon which member             |
  |                                                                       |
18|              contributions were made for those years between July     |
  |                                                                       |
19|              1, 1995, and June 30, 2007, in which the member's        |
  |                                                                       |
20|              regular annual compensation meets or exceeds the         |
  |                                                                       |
21|              maximum compensation level in effect for the member      |
  |                                                                       |
22|              for the period July 1, 1995, through June 30, 2007,      |
  |                                                                       |
23|              multiplied by the number of the member's years of        |
  |                                                                       |
24|              creditable service for the period July 1, 1995,          |
  |                                                                       |
   Req. No. 215                                                    Page 20
___________________________________________________________________________

 1|              through June 30, 2007, in which the member's regular     |
  |                                                                       |
 2|              annual compensation meets or exceeds the maximum         |
  |                                                                       |
 3|              compensation in effect for the member for the period     |
  |                                                                       |
 4|              July 1, 1995, through June 30, 2007, plus                |
  |                                                                       |
 5|         c.   two percent (2%) of the member's average salary upon     |
  |                                                                       |
 6|              which member contributions were made, multiplied by      |
  |                                                                       |
 7|              the number of the member's years of creditable service   |
  |                                                                       |
 8|              authorized and performed for an employer other than a    |
  |                                                                       |
 9|              comprehensive university or for service performed for    |
  |                                                                       |
10|              an employer other than an entity or institution within   |
  |                                                                       |
11|              The Oklahoma State System of Higher Education on or      |
  |                                                                       |
12|              after July 1, 1995, but not later than June 30, 2007,    |
  |                                                                       |
13|              plus                                                     |
  |                                                                       |
14|         d.   two percent (2%) of the member's average salary upon     |
  |                                                                       |
15|              which member contributions were made, multiplied by      |
  |                                                                       |
16|              the number of the member's years of creditable service   |
  |                                                                       |
17|              in which contributions were made that did not meet or    |
  |                                                                       |
18|              exceed the member's maximum compensation level in        |
  |                                                                       |
19|              effect for the member for the period July 1, 1995,       |
  |                                                                       |
20|              through June 30, 2007, and the number of the member's    |
  |                                                                       |
21|              years of creditable service authorized and performed     |
  |                                                                       |
22|              after June 30, 2007;                                     |
  |                                                                       |
23|    3.  If the member became a member or is eligible to become a       |
  |                                                                       |
24|member prior to July 1, 1995, and was eligible to elect to have a      |
  |                                                                       |
   Req. No. 215                                                    Page 21
___________________________________________________________________________

 1|maximum compensation level in excess of Twenty-five Thousand Dollars   |
  |                                                                       |
 2|($25,000.00) and did not elect or elected not to have a maximum        |
  |                                                                       |
 3|compensation level of Forty Thousand Dollars ($40,000.00) pursuant     |
  |                                                                       |
 4|to paragraph 1 of subsection C of Section 17-116.2 of this title or    |
  |                                                                       |
 5|pursuant to subsection E of Section 17-116.2 of this title, in an      |
  |                                                                       |
 6|amount equal to:                                                       |
  |                                                                       |
 7|         a.   two percent (2%) of the member's average salary upon     |
  |                                                                       |
 8|              which member contributions were made, not to exceed      |
  |                                                                       |
 9|              Twenty-five Thousand Dollars ($25,000.00), multiplied    |
  |                                                                       |
10|              by the number of the member's years of creditable        |
  |                                                                       |
11|              service authorized and performed prior to July 1,        |
  |                                                                       |
12|              1995, plus any years of prior service authorized under   |
  |                                                                       |
13|              this title, plus                                         |
  |                                                                       |
14|         b.   two percent (2%) of the average of the member's          |
  |                                                                       |
15|              maximum compensation level upon which member             |
  |                                                                       |
16|              contributions were made for those years of service       |
  |                                                                       |
17|              between July 1, 1995, and June 30, 2007, in which the    |
  |                                                                       |
18|              member's regular annual compensation meets or exceeds    |
  |                                                                       |
19|              the maximum compensation level in effect for the         |
  |                                                                       |
20|              member for the period July 1, 1995, through June 30,     |
  |                                                                       |
21|              2007, multiplied by the number of the member's years     |
  |                                                                       |
22|              of creditable service for the period July 1, 1995,       |
  |                                                                       |
23|              through June 30, 2007, in which the member's regular     |
  |                                                                       |
24|              annual compensation meets or exceeds the maximum         |
  |                                                                       |
   Req. No. 215                                                    Page 22
___________________________________________________________________________

 1|              compensation in effect for the member for the period     |
  |                                                                       |
 2|              July 1, 1995, through June 30, 2007, plus                |
  |                                                                       |
 3|         c.   two percent (2%) of the member's average salary upon     |
  |                                                                       |
 4|              which member contributions were made, multiplied by      |
  |                                                                       |
 5|              the number of the member's years of creditable service   |
  |                                                                       |
 6|              authorized and performed for an employer other than a    |
  |                                                                       |
 7|              comprehensive university or for service performed for    |
  |                                                                       |
 8|              an employer other than an entity or institution within   |
  |                                                                       |
 9|              The Oklahoma State System of Higher Education on or      |
  |                                                                       |
10|              after July 1, 1995, but not later than June 30, 2007,    |
  |                                                                       |
11|              plus                                                     |
  |                                                                       |
12|         d.   two percent (2%) of the member's average salary upon     |
  |                                                                       |
13|              which member contributions were made, multiplied by      |
  |                                                                       |
14|              the number of the member's years of creditable service   |
  |                                                                       |
15|              in which contributions were made that did not meet or    |
  |                                                                       |
16|              exceed the member's maximum compensation level in        |
  |                                                                       |
17|              effect for the member for the period July 1, 1995,       |
  |                                                                       |
18|              through June 30, 2007, and the number of the member's    |
  |                                                                       |
19|              years of creditable service authorized and performed     |
  |                                                                       |
20|              after June 30, 2007;                                     |
  |                                                                       |
21|    4.  Any member who retired on or after July 1, 1995, shall be      |
  |                                                                       |
22|eligible to have the benefits recalculated in accordance with the      |
  |                                                                       |
23|terms and provisions of paragraphs 2 and 3 of this section.  In the    |
  |                                                                       |
24|event such calculation results in an increase in benefits, such        |
  |                                                                       |
   Req. No. 215                                                    Page 23
___________________________________________________________________________

 1|benefits will be adjusted commencing January 1, 2005, and              |
  |                                                                       |
 2|thereafter.  No such recalculation shall be applied in a retroactive   |
  |                                                                       |
 3|manner to result in any increase in benefits which have been paid      |
  |                                                                       |
 4|between July 1, 1995, and December 31, 2004;                           |
  |                                                                       |
 5|    5.  For purposes of this section, the term "average of the         |
  |                                                                       |
 6|member's maximum compensation level" means an average of the annual    |
  |                                                                       |
 7|salary on which the maximum contributions were made to the Teachers'   |
  |                                                                       |
 8|Retirement System of Oklahoma for the period between July 1, 1995,     |
  |                                                                       |
 9|and June 30, 2007.  The average for each member will be applied in     |
  |                                                                       |
10|accordance with paragraph (15) of Section 17-101 of this title;        |
  |                                                                       |
11|    6.  In the event there are insufficient number of years for the    |
  |                                                                       |
12|time period between July 1, 1995, and June 30, 2007, to reach the      |
  |                                                                       |
13|high three (3) or high consecutive five (5) years, or, effective       |
  |                                                                       |
14|July 1, 2020, the high seven (7) years, in accordance with paragraph   |
  |                                                                       |
15|(15) of Section 17-101 of this title, the member's maximum             |
  |                                                                       |
16|compensation level shall be determined by an average of the salary     |
  |                                                                       |
17|on which maximum contributions were made.  In no case shall the        |
  |                                                                       |
18|member's maximum compensation level exceed the average salary as       |
  |                                                                       |
19|determined by paragraph (15) of Section 17-101 of this title; and      |
  |                                                                       |
20|    7.  Beginning July 1, 2018, an active member of the Teachers'      |
  |                                                                       |
21|Retirement System of Oklahoma who is employed and participating with   |
  |                                                                       |
22|an entity or institution within The Oklahoma State System of Higher    |
  |                                                                       |
23|Education may purchase not to exceed two (2) years of incentive        |
  |                                                                       |
24|credit if:                                                             |
  |                                                                       |
   Req. No. 215                                                    Page 24
___________________________________________________________________________

 1|         a.    the member has reached his or her normal retirement     |
  |                                                                       |
 2|              date or is within two (2) years of reaching the          |
  |                                                                       |
 3|              member's normal retirement date as authorized in         |
  |                                                                       |
 4|              Section 17-105 of this title, or                         |
  |                                                                       |
 5|         b.    the member is eligible for or is within two (2) years   |
  |                                                                       |
 6|              of being eligible for early retirement pursuant to       |
  |                                                                       |
 7|              paragraph 1 of subsection A of Section 17-116.2 of       |
  |                                                                       |
 8|              this title.                                              |
  |                                                                       |
 9|    B.  Purchased incentive credit may only be used as participation   |
  |                                                                       |
10|service to qualify the member for normal or early retirement.          |
  |                                                                       |
11|    C.  To receive the incentive credit, the member shall pay the      |
  |                                                                       |
12|amount determined by the Board pursuant to Section 17-116.8 of this    |
  |                                                                       |
13|title.                                                                 |
  |                                                                       |
14|                                                                       |
  |                                                                       |
15|    57-1-215       CB        1/17/2019 4:48:15 PM                      |
  |                                                                       |
16|                                                                       |
  |                                                                       |
17|                                                                       |
  |                                                                       |
18|                                                                       |
  |                                                                       |
19|                                                                       |
  |                                                                       |
20|                                                                       |
  |                                                                       |
21|                                                                       |
  |                                                                       |
22|                                                                       |
  |                                                                       |
23|                                                                       |
  |                                                                       |
24|                                                                       |
  |                                                                       |
   Req. No. 215                                                    Page 25
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