A. Each local school district, or state college or university, or State Board of Education, or State Board of Career and Technology Education, or other state agencies whose employees are members of the Teachers’ Retirement System of Oklahoma (“participating employers”), shall match, on a pro rata basis, in accordance with subsection B of this section the contributions of members whose salaries are paid by federal funds or externally sponsored agreements such as grants, contracts and cooperative agreements. These funds shall be remitted at the same time as the regular contributions of members are remitted to the Teachers’ Retirement System of Oklahoma and deposited in the Retirement Benefit Fund. B. On an annual basis, the Board of Trustees shall set two contribution rates to be paid by contributing employers as provided in subsection A of this section. Both contribution rates shall be determined using cost principles established by federal regulations and shall be consistent with policies, regulations and procedures that apply uniformly to both federally assisted and other activities, and be accorded consistent treatment through application of generally accepted accounting principles. The Board shall approve the contribution rates for each fiscal year ending June 30, no later than April 1 of the previous fiscal year. The first rate shall be applied to service performed during the regular school year of the participating employer. The second rate shall be applied to service performed by members during a summer school program of the participating employer. For the purposes of this subsection, “summer school program” is defined as a program offering academic enrichment for students from prekindergarten through twelfth grade during the summer term after the close of the school year. Members shall only be considered as providing service to a summer school program if such service is provided pursuant to a separate summer school contract between the member and the participating employer. The term summer school program does not include services performed at a participating employer offering an extended school year pursuant to Section 1-109.1 of this title, or services performed by staff pursuant to a twelve-month contract with the employer. The method applied to setting the second contribution rate may take into consideration whether, or to what extent, such service is likely to add to members’ service credit or final average salary; provided, however, the second rate shall not exceed one-half (1/2) of the first rate established in this subsection. The actuary retained by the Board may recommend such rates using assumptions that apply to the group of those members whose service is subject to the second contribution rate. C. All the assets of the retirement system shall be credited according to the purpose for which they are held to one of seven funds, namely: The Teachers’ Savings Fund, the Retirement Benefit Fund, the Interest Fund, the Permanent Retirement Fund, the Expense Fund, the Suspense Fund, and the Retiree Medical Benefit Fund. 1. The Teachers’ Savings Fund shall be a fund in which shall be accumulated the regular contributions from the compensation of members, including applicable interest earnings prior to July 1, 1968. Contributions to and payments from the Teachers’ Savings Fund shall be made as specifically provided in each plan available within the retirement system. 2. The deductions provided for in the plans within the retirement system shall be made notwithstanding that the minimum compensation provided for any member shall be reduced thereby. Every member shall be deemed to consent and agree to the deductions made and provided for herein and payment of salary or compensation, less the deduction, shall be a full and complete discharge and acquittance of all claims and demands whatsoever for the services rendered by such person during the period covered by such payment, except as to the benefits provided under Section 17-101 et seq. of this title. The employer shall certify to the Board of Trustees on each and every payroll, or in such other manner as the Board may prescribe, the amounts to be deducted, and each of the amounts shall be deducted, and when deducted shall be paid into the Teachers’ Savings Fund, and shall be credited to the individual account of the member from whose compensation the deduction was made. 3. Following the termination of membership in the retirement system for any member who has been absent from service for five (5) years in any period of six (6) consecutive years, the Teachers’ Savings Fund Account of such member shall be closed and the amount due the member as provided in Section 17-105 of this title shall be paid upon the filing of formal application. At the time such membership is terminated the amount due the member as provided in Section 17-105 of this title shall be transferred to the Suspense Fund. 4. Upon the retirement of a member, the balance of money the member had in the Teachers’ Savings Fund shall be transferred to the Retirement Benefit Fund. 5. Retirement Benefit Fund. a. After August 2, 1969, there shall be transferred from the Teachers’ Savings Fund for those members drawing retirement benefits from the Teachers’ Retirement System of Oklahoma an amount necessary to provide the monthly annuity payments and payments as required in Section 17-107 of this title. In addition, the fund shall consist of monies received from any state dedicated revenue, monies received from state appropriations, monies received from federal matching funds, and the residue of the interest on investments after the requirements of Section 17-107 of this title have been fully met. The Retirement Benefit Fund shall consist of an amount of money necessary for the making of retirement payments to retirees. b. From the Retirement Benefit Fund shall be paid all monthly retirement allowances. 6. The Interest Fund is hereby created to facilitate the crediting of interest to the various other funds to which interest is to be credited. All income, interest and dividends derived from the deposits and investments authorized by Section 17-101 et seq. of this title shall be paid into the Interest Fund. On June 30, each year, interest shall be transferred to the other funds as herein provided. 7. The Permanent Retirement Fund shall consist of the accumulated gifts, awards, and bequests made to the retirement system, and transfers from the Suspense Fund, the principal of which is hereby held and dedicated as a perpetual endowment of the retirement system and shall not be diverted or appropriated to any other cause or purpose unless specifically provided for in such gifts, awards or bequests. 8. The Expense Fund shall be the fund from which the expense of administration and maintenance of the retirement system shall be paid. The Board of Trustees shall cause to be prepared and adopt annually an itemized budget showing the amount required to defray the expenses for the ensuing fiscal year. Transfers to and payments from this fund shall be made as follows: first, from the Interest Fund; second, from any dedicated revenue; and, third, from appropriation by the Legislature. All monies for the operation of the Teachers’ Retirement System of Oklahoma shall be paid from the Expense Fund upon the approval by the Board of Trustees and the checks signed by two people designated to sign such checks by the Board of Trustees of the Teachers’ Retirement System of Oklahoma. 9. The Suspense Fund shall be comprised of amounts transferred to the fund as provided in this section and Section 17-105 of this title and obligations of the retirement system to any member or person which cannot be legally discharged. 10. Collection of Contributions. The collection of members’ contributions shall be as follows: a. Each employer shall cause to be deducted on each and every payroll or claim of a member for each and every payroll claim period subsequent to the date of establishment of the retirement system the contribution payable by such member as provided in Section 17-101 et seq. of this title. With each and every payroll or claim the employer shall deliver to the treasurer of the employer warrants issued to the employees as shown to be due by the payroll or claim, together with a warrant or warrants in favor of the Teachers’ Retirement System of Oklahoma as shown by the payroll or claim. b. The treasurer or disbursing officer upon delivery of the warrants and a true copy of the payroll or claims as provided above shall register the warrants as provided for the registration of other school warrants, and shall deliver to the employer warrants issued in favor of the employees, and shall deliver warrants issued in favor of the Teachers’ Retirement System of Oklahoma and the copy of the payroll or claims to the school district superintendent as designated by the Board of Trustees. For the purpose of collecting contributions of teachers in the public schools, the superintendent of a school district is hereby designated to receive the Teachers’ Retirement warrants from the treasurer or proper disbursing officer of the several school districts for the purpose of transmitting such warrants and payroll or claims to the Executive Director of the Teachers’ Retirement System of Oklahoma. Any college or university or other educational institution or agency operated in whole or in part by the state shall have the amount retained or deducted from the funds regularly appropriated by the state for the current maintenance for such educational departments and institutions. c. For the purpose of enabling the collection of the contributions of the members of the retirement system to be made as simple as possible, the Board of Trustees shall require the secretary or other officer of each employer board or agency, within thirty (30) days after the beginning of each school year, to make a list of all teachers in its employ who are members of the retirement system, certify to the correctness of this list, and file the same with the Executive Director of the Board of Trustees of the Teachers’ Retirement System of Oklahoma. If additions to or deductions from this list should be made during the year such additions or deductions shall likewise be certified to the Board of Trustees of the Teachers’ Retirement System of Oklahoma. d. The State Treasurer shall furnish annually to the Board of Trustees a sworn statement of the amount of the funds in his or her custody belonging to the retirement system. The records of the Board of Trustees shall be open to public inspection and any member of the retirement system shall be furnished with a statement of the amount of the credit to the member’s individual account upon written request by such member, provided the Board of Trustees shall not be required to answer more than one such request of a member in any one (1) year. e. Failure of any superintendent, officer, or other person to discharge the duties imposed upon him or her by this act shall render him or her or his or her bondsman liable for any loss occasioned thereby to the Teachers’ Retirement System of Oklahoma or the employees of the school district, or both. f. On a showing by the Teachers’ Retirement System of Oklahoma that a warrant, voucher or check issued to it has, for any reason, been lost or never received, after ninety (90) days from the date of issue or from transmittal for payment, it shall be the duty of the issuing authority forthwith, without any indemnifying bond or other requirements, to issue a duplicate thereof in lieu of that which was lost, to the Teachers’ Retirement System of Oklahoma; and the Teachers’ Retirement System of Oklahoma shall save harmless any school district or agency of state government making payment under the provisions hereof to the Teachers’ Retirement System of Oklahoma if the original warrant, voucher or check is later presented for payment and same is paid after a duplicate warrant, voucher or check has been issued and paid to the Teachers’ Retirement System of Oklahoma, and any loss sustained therefrom shall be charged to the Interest Fund. 11. Rollover Contributions and Direct Trustee-to-Trustee Transfers from Other Plans. Any member may purchase credit for service, to the extent specified in this title, with rollovers from an eligible retirement plan as defined by the Internal Revenue Code of 1986, as amended from time to time. A member may also purchase permissive service credit, as defined by Title 26, United States Code, Section 415(n)(3)(A), with a direct trustee-to-trustee transfer from a governmental Title 26, United States Code, Section 403(b) plan or governmental Title 26, United States Code, Section 457(b) plan. All rollovers and direct trustee-to-trustee transfers shall be allowed to the extent permitted by federal law. Rollovers or direct transfers in excess of the amount necessary to purchase such service credit shall not be allowed. 12. Retiree Medical Benefit Fund. The Retiree Medical Benefit Fund shall be maintained as a subaccount under the Retirement Benefit Fund. The Retiree Medical Benefit Fund is composed of all assets contributed to this subaccount to pay the retirement system’s portion of the monthly retiree health insurance benefits described in Section 1316.3 of Title 74 of the Oklahoma Statutes. All allocated assets and the earnings thereon in the Retiree Medical Benefit Fund shall be held for the exclusive purpose of providing retiree medical benefits pursuant to Section 1316.3 of Title 74 of the Oklahoma Statutes. The Retiree Medical Benefit Fund shall be administered in accordance with the requirements under Section 401(h) of the Internal Revenue Code of 1986, as amended from time to time. An amount necessary to pay the health insurance premiums for retired members as provided by Section 1316.3 of Title 74 of the Oklahoma Statutes shall be deposited each month into the Retiree Medical Benefit Fund. Added by Laws 1969, c. 157, § 8, operative Aug. 2, 1969. Amended by Laws 1970, c. 176, § 5, operative Aug. 2, 1970; Laws 1974, c. 246, § 3, operative July 1, 1974; Laws 1975, c. 353, § 3, operative July 1, 1975; Laws 1976, c. 252, § 2, operative July 1, 1976; Laws 1978, c. 238, § 6, eff. July 1, 1978; Laws 1993, c. 239, § 46, eff. July 1, 1993; Laws 1994, c. 380, § 3, eff. July 1, 1994; Laws 1999, c. 402, § 1, eff. July 1, 2001; Laws 2001, c. 33, § 114, eff. July 1, 2001; Laws 2002, c. 354, § 1, eff. July 1, 2002; Laws 2010, c. 357, § 4, eff. July 1, 2010; Laws 2011, c. 290, § 1; Laws 2021, c. 551, § 1; Laws 2024, c. 300, § 8, eff. July 1, 2024. NOTE: Laws 1974, c. 243, § 1 repealed by Laws 1975, c. 353, § 4, operative July 1, 1975. NOTE: Laws 2000, c. 235, § 1 amended the effective date of Laws 1999, c. 402, § 1 from July 1, 2000, to July 1, 2001. NOTE: Sections 17-101 through 17-119 of this title were designated Article XVII of the Oklahoma School Code by Laws 1971, c. 281, § 24- 122, eff. July 2, 1971.
‹ Prev All Oklahoma sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.