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SENATE FLOOR VERSION
February 17, 2026
AS AMENDED
SENATE BILL NO. 2039 By: Goodwin
[ Teachers’ Retirement System of Oklahoma -
retirement allowance – service credits - effective
dates -
emergency ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 62 O.S. 2021, Section 3103, as
last amended by Section 1, Chapter 357, O.S.L. 2024 (62 O.S. Supp.
2025, Section 3103), is amended to read as follows:
Section 3103. As used in the Oklahoma Pension Legislation
Actuarial Analysis Act:
1. “Amendment” means any amendment, including a substitute
bill, made to a retirement bill by any committee of the Oklahoma
House of Representatives or Oklahoma State Senate, any conference
committee of the House of Representatives or Senate, or by the House
of Representatives or Senate;
2. “RB number” means that number preceded by the letters “RB”
assigned to a retirement bill by the respective staffs of the
Oklahoma State Senate and the Oklahoma House of Representatives when
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the respective staff office prepares a retirement bill for a member
of the Legislature;
3. “Legislative Actuary” means the firm or entity that enters
into a contract with the Legislative Service Bureau pursuant to
Section 452.15 of Title 74 of the Oklahoma Statutes to provide the
actuarial services and other duties provided for in the Oklahoma
Pension Legislation Actuarial Analysis Act;
4. “Nonfiscal amendment” means an amendment to a retirement
bill having a fiscal impact, which amendment does not change any
factor of an actuarial investigation specified in subsection A of
Section 3109 of this title;
5. “Nonfiscal retirement bill” means a retirement bill:
a. which does not affect the cost or funding factors of a
retirement system,
b. which affects such factors only in a manner which does
not:
(1) grant a benefit increase under the retirement
system affected by the bill,
(2) create an actuarial accrued liability for or
increase the actuarial accrued liability of the
retirement system affected by the bill, or
(3) increase the normal cost of the retirement system
affected by the bill,
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c. which authorizes the purchase by an active member of
the retirement system, at the actuarial cost for the
purchase as computed pursuant to the statute in effect
on the effective date of the measure allowing such
purchase, of years of service for purposes of reaching
a normal retirement date in the applicable retirement
system, but which cannot be used in order to compute
the number of years of service for purposes of
computing the retirement benefit for the member,
d. which provides for the computation of a service-
connected disability retirement benefit for members of
the Oklahoma Law Enforcement Retirement System
pursuant to Section 2-305 of Title 47 of the Oklahoma
Statutes if the members were unable to complete twenty
(20) years of service as a result of the disability,
e. which requires membership in the defined benefit plan
authorized by Section 901 et seq. of Title 74 of the
Oklahoma Statutes for persons whose first elected or
appointed service occurs on or after November 1, 2018,
if such persons had any prior service in the Oklahoma
Public Employees Retirement System prior to November
1, 2015,
f. which provides for a one-time increase in retirement
benefits if the increase in retirement benefits is not
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a permanent increase in the gross annual retirement
benefit payable to a member or beneficiary, occurs
only once pursuant to a single statutory
authorization, and does not exceed:
(1) the lesser of two percent (2%) of the gross
annual retirement benefit of the member or One
Thousand Dollars ($1,000.00) and requires that
the benefit may only be provided if the funded
ratio of the affected retirement system would not
be less than sixty percent (60%) but not greater
than eighty percent (80%) after the benefit
increase is paid,
(2) the lesser of two percent (2%) of the gross
annual retirement benefit of the member or One
Thousand Two Hundred Dollars ($1,200.00) and
requires that the benefit may only be provided if
the funded ratio of the affected retirement
system would be greater than eighty percent (80%)
but not greater than one hundred percent (100%)
after the benefit increase is paid,
(3) the lesser of two percent (2%) of the gross
annual retirement benefit of the member or One
Thousand Four Hundred Dollars ($1,400.00) and
requires that the benefit may only be provided if
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the funded ratio of the affected retirement
system would be greater than one hundred percent
(100%) after the benefit increase is paid, or
(4) the greater of two percent (2%) of the gross
annual retirement benefit of the volunteer
firefighter or One Hundred Dollars ($100.00) for
persons who retired from the Oklahoma
Firefighters Pension and Retirement System as
volunteer firefighters and who did not retire
from the Oklahoma Firefighters Pension and
Retirement System as a paid firefighter.
As used in this subparagraph, “funded ratio” means the
figure derived by dividing the actuarial value of
assets of the applicable retirement system by the
actuarial accrued liability of the applicable
retirement system,
g. which modifies the disability pension standard for
police officers who are members of the Oklahoma Police
Pension and Retirement System as provided by Section
50-115 of Title 11 of the Oklahoma Statutes,
h. which provides a cost-of-living benefit increase
pursuant to the provisions of:
(1) Section 49-143.7 of Title 11 of the Oklahoma
Statutes,
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(2) Section 50-136.9 of Title 11 of the Oklahoma
Statutes,
(3) Section 1104K of Title 20 of the Oklahoma
Statutes,
(4) Section 2-305.12 of Title 47 of the Oklahoma
Statutes,
(5) Section 17-116.22 of Title 70 of the Oklahoma
Statutes, or
(6) Section 930.11 of Title 74 of the Oklahoma
Statutes,
i. which modifies the computation of the line-of-duty
disability benefit pursuant to Sections 50-101 and 50-
115 of Title 11 of the Oklahoma Statutes,
j. which allows the purchase of military prior service
credit pursuant to the provisions of this act section
and Section 49-138 of Title 11 of the Oklahoma
Statutes,
k. which increases the computation factor used to
calculate the accrued retirement benefit and normal
disability benefit pursuant to Section 50-101 of Title
11 of the Oklahoma Statutes,
l. which increases the municipal contribution, employee
contribution, or both for members of the Oklahoma
Police Pension and Retirement System pursuant to
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Sections 50-109 and 50-110 of Title 11 of the Oklahoma
Statutes, or
m. which modifies the computation of a retirement annuity
pursuant to Section 50-111.1 of Title 11 of the
Oklahoma Statutes, or
n. which relates to the purchase of service credits, as
provided for in Section 17-116.2 of Title 70 of the
Oklahoma Statutes.
A nonfiscal retirement bill shall include any retirement bill that
has as its sole purpose the appropriation or distribution or
redistribution of monies in some manner to a retirement system for
purposes of reducing the unfunded liability of such system or the
earmarking of a portion of the revenue from a tax to a retirement
system or increasing the percentage of the revenue earmarked from a
tax to a retirement system;
6. “Reduction-in-cost amendment” means an amendment to a
retirement bill having a fiscal impact which reduces the cost of the
bill as such cost is determined by the actuarial investigation for
the bill prepared pursuant to Section 3109 of this title;
7. “Retirement bill” means any bill or joint resolution
introduced or any bill or joint resolution amended by a member of
the Legislature which creates or amends any law directly affecting a
retirement system. A retirement bill shall not mean a bill or
resolution that impacts the revenue of any state tax in which a
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portion of the revenue generated from such tax is earmarked for the
benefit of a retirement system;
8. “Retirement bill having a fiscal impact” means any
retirement bill creating or establishing a retirement system and any
other retirement bill other than a nonfiscal retirement bill; and
9. “Retirement system” means the Teachers’ Retirement System of
Oklahoma, the Oklahoma Public Employees Retirement System, the
Uniform Retirement System for Justices and Judges, the Oklahoma
Firefighters Pension and Retirement System, the Oklahoma Police
Pension and Retirement System, the Oklahoma Law Enforcement
Retirement System, or a retirement system established after January
1, 2006.
SECTION 2. AMENDATORY 70 O.S. 2021, Section 17-116.2, is
amended to read as follows:
Section 17-116.2. A. 1. Beginning July 1, 1987, and prior to
July 1, 1995, a member who retires on or after the member’s normal
retirement age or whose retirement is because of disability shall
receive an annual allowance for life, payable monthly, in an amount
equal to two percent (2%) of the member’s highest three-year average
salary upon which member contributions were made, multiplied by the
number of the member’s years of creditable service.
A classified member who retired prior to July 1, 1986, shall
have the member’s retirement allowance calculated on a minimum
average salary of Eleven Thousand Five Hundred Dollars ($11,500.00)
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or on the member’s current minimum average salary plus Two Thousand
Dollars ($2,000.00), whichever is greater. Beginning July 1, 1994,
a classified member who retired prior to July 1, 1993, shall have
the member’s retirement allowance calculated on the member’s current
minimum average salary plus Five Hundred Fifty Dollars ($550.00).
An unclassified member who retired prior to July 1, 1986, shall have
the member’s retirement allowance calculated on a minimum average
salary of Nine Thousand Five Hundred Dollars ($9,500.00) or on the
member’s current minimum average salary plus One Thousand Dollars
($1,000.00), whichever is greater. Beginning July 1, 1994, an
unclassified member who retired prior to July 1, 1993, shall have
the member’s retirement allowance calculated on the member’s current
minimum average salary plus Two Hundred Seventy-five Dollars
($275.00). Those individuals receiving benefits pursuant to
subsection (3) of Section 17-105 of this title whose benefits
commenced prior to July 1, 1993, shall receive an increase in
benefits of two and one-half percent (2 1/2%). No retirement
benefit payments shall be made retroactively.
For those members retiring before normal retirement age, except
for those members retiring because of a disability, the retirement
allowance shall be subject to adjustment in accordance with the
actuarial equivalent factors adopted by the Board of Trustees.
2. Beginning July 1, 1995, a member, who has no service
performed on or after July 1, 1995, for an entity or institution
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within The Oklahoma State System of Higher Education, who retires on
or after the member’s normal retirement age or whose retirement is
because of disability shall receive an annual allowance for life,
payable monthly as follows:
a. if the member becomes a member after June 30, 1995,
and was not eligible to become a member prior to July
1, 1995, in an amount equal to two percent (2%) of the
member’s average salary upon which member
contributions were made, multiplied by the number of
the member’s years of creditable service, or
b. if the member became a member or is eligible to become
a member prior to July 1, 1995, and elected to have a
maximum compensation level in excess of Twenty-five
Thousand Dollars ($25,000.00) pursuant to paragraph 1
of subsection C of this section or pursuant to
subsection E of this section, or if the member’s
salary has never exceeded Twenty-five Thousand Dollars
($25,000.00) prior to July 1, 1995, in an amount equal
to:
(1) two percent (2%) of the member’s average salary
upon which member contributions were made not to
exceed Forty Thousand Dollars ($40,000.00),
multiplied by the number of the member’s years of
credited service authorized and performed prior
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to July 1, 1995, plus any years of prior service
authorized under this title, plus
(2) two percent (2%) of the member’s average salary
upon which member contributions were made,
multiplied by the number of the member’s years of
credited service authorized and performed after
June 30, 1995, or
c. if the member became a member or is eligible to become
a member prior to July 1, 1995, and was eligible to
elect to have a maximum compensation level in excess
of Twenty-five Thousand Dollars ($25,000.00) and did
not elect or elected not to have a maximum
compensation level of Forty Thousand Dollars
($40,000.00) pursuant to paragraph 1 of subsection C
of this section or pursuant to subsection E of this
section, in an amount equal to:
(1) two percent (2%) of the member’s average salary
upon which member contributions were made not to
exceed Twenty-five Thousand Dollars ($25,000.00),
multiplied by the number of the member’s years of
credited service authorized and performed prior
to July 1, 1995, plus any years of prior service
authorized under this title, plus
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(2) two percent (2%) of the member’s average salary
upon which member contributions were made,
multiplied by the number of the member’s years of
credited service authorized and performed after
June 30, 1995.
B. Except as otherwise provided for in this section, the amount
contributed by each member to the retirement system shall be:
1. Beginning July 1, 1992, through June 30, 1996, six percent
(6%) of the regular annual compensation of such member not in excess
of Twenty-five Thousand Dollars ($25,000.00) and beginning July 1,
1995, through June 30, 1996, six percent (6%) of the maximum
compensation level;
2. Beginning July 1, 1996, through June 30, 1997, six and one-
half percent (6 1/2%) of the regular annual compensation of members,
who are not employed by an entity or institution within The Oklahoma
State System of Higher Education not in excess of Twenty-five
Thousand Dollars ($25,000.00) and beginning July 1, 1996, through
June 30, 1997, six and one-half percent (6 1/2%) of the regular
annual compensation of members, who are employed by an entity or
institution within The Oklahoma State System of Higher Education,
not in excess of Twenty-five Thousand Dollars ($25,000.00);
3. Beginning July 1, 1997, seven percent (7%) of the regular
annual compensation of the member not in excess of any applicable
maximum compensation level of the member; and
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4. All public schools in this state shall treat the employee
contributions as being picked up under the provisions of Section 414
(h)(2) of the Internal Revenue Code of 1986 in determining tax
treatment.
Subject to Internal Revenue Service approval, paragraph 4 of this
subsection shall not apply to a comprehensive university group
established on or before July 1, 1998, whose employee contributions
were consistently treated as not picked up as of July 1, 1998, and
at all times thereafter.
C. 1. Prior to July 1, 1995, an active member of the System
may elect to have a maximum compensation level of Forty Thousand
Dollars ($40,000.00). Such an election shall be made in writing and
filed with the System. Members whose salaries are in excess of
Twenty-five Thousand Dollars ($25,000.00) on July 20, 1987, shall
file the election with the System prior to January 1, 1988. Members
whose salaries exceed Twenty-five Thousand Dollars ($25,000.00)
after July 20, 1987, shall file the election when the salary exceeds
Twenty-five Thousand Dollars ($25,000.00). If a member makes such
an election, the member shall contribute the following amounts:
a. beginning July 1, 1992, through June 30, 1993, eleven
percent (11%) of the regular annual compensation of
such member that is in excess of Twenty-five Thousand
Dollars ($25,000.00) and is not in excess of Forty
Thousand Dollars ($40,000.00),
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b. beginning July 1, 1993, through June 30, 1994, nine
percent (9%) of the regular annual compensation of
such member that is in excess of Twenty-five Thousand
Dollars ($25,000.00) and is not in excess of Forty
Thousand Dollars ($40,000.00), and
c. beginning July 1, 1994, through June 30, 1995, eight
percent (8%) of the regular annual compensation of
such member that is in excess of Twenty-five Thousand
Dollars ($25,000.00) and is not in excess of Forty
Thousand Dollars ($40,000.00). Except as provided in
subsection E of this section, any such election shall
be irrevocable.
2. After June 30, 1995, in addition to the amount contributed
by each member to the retirement system pursuant to subsection B of
this section, the total amount contributed by each member to the
retirement system shall include, beginning July 1, 1995, through
June 30, 1997, seven percent (7%) of the regular annual compensation
of each member, who is not employed by an entity or institution
within The Oklahoma State System of Higher Education, that is in
excess of Twenty-five Thousand Dollars ($25,000.00) and beginning
July 1, 1996, through June 30, 1997, seven percent (7%) of the
regular annual compensation of each member who is employed by an
entity or institution within The Oklahoma State System of Higher
Education in excess of Twenty-five Thousand Dollars ($25,000.00),
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but not in excess of any applicable maximum compensation level of
the member.
D. 1. Any member who was a contributing member of the
Retirement System between July 1, 1987, and June 30, 1995, who at
the time the member was eligible to make an election to increase the
maximum compensation level of the member, failed to make an election
or chose not to increase the maximum compensation level of the
member to Forty Thousand Dollars ($40,000.00), may elect to make
back contributions to the Retirement System. The member shall
complete a new election form and file with the Board of Trustees,
the form and a payment equaling the difference between the amount
contributed at the twenty-five-thousand-dollar level and the
appropriate contribution on compensation in excess of Twenty-five
Thousand Dollars ($25,000.00) up to a maximum of Forty Thousand
Dollars ($40,000.00) shall be made prior to the official retirement
date of the member. The required payment shall include any
contribution required by the employing school district, and shall
include interest compounded annually at ten percent (10%) per annum
of both employer and employee contributions.
2. Any changes made pursuant to this subsection shall be
irrevocable.
E. 1. An individual who withdrew from the Teachers’ Retirement
System and whose salary was in excess of Seven Thousand Eight
Hundred Dollars ($7,800.00) and had elected to contribute only on
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Seven Thousand Eight Hundred Dollars ($7,800.00) before his or her
withdrawal shall contribute on the earning ceiling as provided for
in this section on his or her reentry into membership in the
Teachers’ Retirement System.
2. An individual who elected to contribute on a maximum of
Seven Thousand Eight Hundred Dollars ($7,800.00) per annum shall,
beginning July 1, 1979, contribute on his or her earning ceiling as
provided for in this section.
3. Any member who elected to contribute on Seven Thousand Eight
Hundred Dollars ($7,800.00) prior to January 1, 1978, and whose
salary was more than Seven Thousand Eight Hundred Dollars
($7,800.00) during the school years 1974-75 through 1978-79 may
elect to make back contributions to the retirement system by paying
the five percent (5%) contributions on the difference between Seven
Thousand Eight Hundred Dollars ($7,800.00) and the actual salary of
the member, not to exceed Ten Thousand Dollars ($10,000.00) for each
applicable school year, plus interest compounded annually at ten
percent (10%) per annum. Such payment shall be made prior to the
official retirement date of the member.
F. Each employer shall cause to be deducted from the salary of
each member on each and every payroll of such employer for each and
every payroll period, the proper percentage of his or her earnable
compensation as provided for in subsection B or subsection C of this
section.
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1. Deductions shall begin with the first payroll period of the
school year. In determining the amount earnable by a member in a
payroll period, the Board of Trustees shall consider the rate of
annual compensation payable to such member on the first day of the
payroll period as continuing throughout such payroll period, and it
may omit deductions from compensation for any period less than a
full period, and to facilitate the making of deductions, it may
modify the deduction required of any member by such an amount as
shall not exceed one-tenth of one percent (1/10 of 1%) of the annual
compensation upon the basis of which such deduction is to be made.
Prior to January 1, 1991, any active contributing member who joined
the System subsequent to July 1, 1943, may pay the normal cost,
which shall mean the single sum which would have been paid under
existing statutes at the time the service was performed, plus
interest, for years of teaching service in Oklahoma from the date of
establishment of the System in 1943 to date of membership, in a lump
sum, or in installments equal to establishing one (1) year of
creditable service. Effective January 1, 1991, any active
contributing member who joined the System subsequent to July 1,
1943, may pay the amount determined by the Board of Trustees
pursuant to Section 17-116.8 of this title for years of teaching
service in Oklahoma from the date of establishment of the System in
1943 to date of membership, in a lump sum, or in installments equal
to establishing one (1) year of creditable service. For purposes of
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this option, teaching service in Oklahoma shall include the teaching
of vocational agricultural courses within Oklahoma for the federal
government. Years for which contributions are paid shall count as
membership service under this plan. A member may receive credit for
not more than five (5) years of teaching service rendered while in
the Peace Corps or in the public schools of a territory of the
United States or the public schools, American Military Dependent
Schools or state colleges or state universities outside this state
by paying his or her contributions, plus interest, and membership
fees to the retirement system, subject to the regulations of the
Board of Trustees, providing he or she is not receiving and is not
eligible to receive retirement credit or benefits from said service
in any other public retirement system of this state, or any other
state or territory of the United States subject to the following
provisions:
a. the The member is required to have two (2) years of
employed service teaching earned in Oklahoma for each
year of Peace Corps, territorial, out-of-state,
noncovered in-state or military membership credit
granted.
b. prior Prior to January 1, 1991, the out-of-state or
noncovered in-state payment shall be the normal cost,
which means the single sum which would have been paid
under existing law at the time the service was
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performed, plus interest, on the basis of what his or
her annual salary would have been in Oklahoma or out
of state, whichever is greater, had he or she been
employed as a teacher. Effective January 1, 1991, the
Peace Corps, territorial, out-of-state or noncovered
in-state payment shall be the amount determined by the
Board of Trustees pursuant to Section 17-116.8 of this
title.
2. In addition to the deductions hereinabove provided for, any
member who becomes a member of the Armed Forces of the United States
of America during any period of national emergency, including World
War II, the Korean conflict, the Vietnam conflict or others as may
be determined by the Board of Trustees, or whose entrance into or
training for the teaching profession was interrupted by his or her
entrance into the Armed Forces, and who was or shall have become a
member of the Teachers’ Retirement System shall be granted the
privilege of making up his or her five percent (5%) contributions as
provided for in this section until January 1, 1991, for not to
exceed five (5) years of service in the Armed Forces by electing to
pay said contributions on the basis of the rate of pay in his or her
contract as a teacher at the time his or her service in the Armed
Forces commenced or in the case of a teacher who was not teaching
prior to entering the Armed Forces, on the basis of the salary of
the first year of teaching after being honorably discharged from the
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Armed Forces. Effective January 1, 1991, the member will receive
such service upon payment of the amount determined by the Board of
Trustees pursuant to Section 17-116.8 of this title. Such
contributions shall be credited in the regular manner, and the
period for which said contributions were paid shall be counted as
creditable years of service and allocated to the period during which
the military service was rendered, except that the period for which
contributions were paid must have been continuous and shall be
credited in the aggregate, regardless of fiscal year limitations.
Notwithstanding any provision herein to the contrary, contributions,
benefits, and service credit with respect to qualified military
service as defined by Section 414(u) of the Internal Revenue Code of
1986 shall be provided in accordance with Section 414(u) of the
Internal Revenue Code.
3. Retirement benefits for all service credits purchased
pursuant to this subsection shall be determined in accordance with
the provisions of paragraph 2 of this subsection. For the purposes
of purchasing service credits for prior military service, the term
“salary” shall solely mean the member’s verified compensation during
the period of active military service, as provided in paragraph 2 of
this subsection.
G. Effective July 1, 2004, the total creditable service of a
member who retires or terminates employment and elects a vested
benefit shall include not to exceed one hundred twenty (120) days of
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unused sick leave accumulated subsequent to August 1, 1959. Twenty
(20) days of unused sick leave shall equal one (1) month for
purposes of creditable service credit. If the member becomes a
member or was eligible to become a member prior to July 1, 1995, the
year of credit received in this section shall be treated as service
earned prior to July 1, 1995. This subsection shall apply to
members retiring or vesting on or after the effective date of this
act and shall not be retroactive.
H. Any member who:
1. Shall be absent from the teaching service because of
election to the State Legislature or appointment to the executive
branch in an education-related capacity shall be allowed thirty (30)
days from the date as of which the person is officially elected or
appointed to file an election with the Teachers’ Retirement System
to retain his or her membership in the Teachers’ Retirement System
upon payment of the contribution required of other members and
employers of said members as provided for in this section and his or
her service credits shall continue to be accumulated during such
absence, provided he or she is not receiving retirement credits or
benefits from said service beginning after July 1, 1992, in other
public retirement systems; or
2. Became an employee of the Oklahoma Commission for Teacher
Preparation on or subsequent to June 1, 2001, but prior to July 1,
2002, who was previously employed by a participating employer within
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the Teachers’ Retirement System of Oklahoma, may elect to cancel any
accumulated service credit accrued within the Oklahoma Public
Employees Retirement System on or after June 1, 2001, but prior to
July 1, 2002, by filing an election with the Oklahoma Public
Employees Retirement System for the cancellation of such service
credit. The election shall be irrevocable and shall require the
Oklahoma Public Employees Retirement System to transfer all
accumulated employer and employee contributions made on behalf of or
by the person making such election to the Teachers’ Retirement
System for such period of time. The Teachers’ Retirement System
shall compute the employee contributions that would have been made
to the System by such employee if the contributions had been
computed pursuant to this section. In order to receive the full
amount of creditable service for the period of time on or after June
1, 2001, but not later than June 30, 2002, the employee shall be
required to pay any difference between the transferred employee
contributions and the amount computed by the Teachers’ Retirement
System. The employee may make payment of any required amount in the
manner provided by and subject to the requirements of Section 17-
116.8 of this title. After payment of all required employee
contributions, the Teachers’ Retirement System shall credit the
period of time represented by the transferred employee contributions
as creditable service within the meaning of Section 17-101 of this
title. After the transfer of the employee contributions, the
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Oklahoma Public Employees Retirement System shall cancel any service
credit previously accumulated for the period of time represented by
such transferred employee contributions. Any person who makes the
election provided for by this paragraph, and who continues
employment with the Oklahoma Commission for Teacher Preparation on
or after July 1, 2002, shall continue to accrue service credit in
the Teachers’ Retirement System of Oklahoma. The employer shall
make employer contributions according to the requirements of Section
17-108.1 of this title and shall provide for the deduction of
employee contributions as required by this section.
I. Any member who shall be absent from the teaching service
because of election or appointment as a local, state or national
education association officer, prior to January 1, 2011, shall be
allowed to retain his or her membership in the Teachers’ Retirement
System upon payment of the contribution required of other members
and employers of said members as provided for in this section and
his or her service credits shall continue to be accumulated during
such absence. Provided, however, any one such absence shall not
exceed twelve (12) continuous years. No member who has less than
ten (10) years of contributory service on July 1, 1994, may make
this election after June 30, 1994. Members contributing to the
System on July 1, 1994, may continue to contribute under this
subsection until they have completed eight (8) years allowed by this
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subsection. The member may file for retirement when otherwise
eligible for retirement as provided by Section 17-105 of this title.
J. A member may receive credit for those years of service
accumulated by the member while employed by an entity which is a
participating employer in the Oklahoma Firefighters Pension and
Retirement System, the Oklahoma Police Pension and Retirement
System, the Uniform Retirement System for Justices and Judges, the
Oklahoma Law Enforcement Retirement System, or the Oklahoma Public
Employees Retirement System, if the member is not receiving or
eligible to receive retirement credit or benefits from said service
in any other public retirement system. A member also may receive
credit for those years of service with the Department of Wildlife
Conservation or with an employer that is a participating employer
within one of the state retirement systems specifically referred to
in this section when at the time of such service by the member the
employer was not such a participating employer, if the member is not
receiving or eligible to receive retirement credit or benefits from
said service in any other public retirement system. To receive the
service credit provided in this subsection, the member shall pay the
amount determined by the Board of Trustees pursuant to Section 17-
116.8 of this title. For purposes of this subsection, creditable
service transferred from the Oklahoma Public Employees Retirement
System shall include service authorized under paragraph (f) of
subsection (2) of Section 913 of Title 74 of the Oklahoma Statutes
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as amended from time to time. Members who retire prior to July 1,
1993, shall have their monthly benefit adjusted to include all
services accrued under paragraph (f) of subsection (2) of Section
913 of Title 74 of the Oklahoma Statutes. Provided however, any
adjustment of existing retirement benefits caused by reason of
inclusion of such service authorized under paragraph (f) of
subsection (2) of Section 913 of Title 74 of the Oklahoma Statutes
shall not affect any retirement benefit paid prior to July 1, 1993.
K. 1. An active member of the Teachers’ Retirement System of
Oklahoma may receive credit for those years of service accumulated
by the member while a member of the Oklahoma Public Employees
Retirement System if:
a. the member is an active member of the Teachers’
Retirement System of Oklahoma, and
b. the member provides notice to the Oklahoma Public
Employees Retirement System and the Teachers’
Retirement System of Oklahoma of the member’s election
to transfer said service credit. The notice shall
include a list of the years to be transferred, and
c. the member is not receiving or eligible to receive
retirement credit or benefits from said service in any
other public retirement system, notwithstanding the
years of service sought to be transferred under this
subsection.
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Members electing to take advantage of the transfer authorized by
this subsection who are receiving or eligible to receive retirement
credit or benefits from said service in any other public retirement
system shall have all service credit with the Oklahoma Public
Employees Retirement System canceled which is not transferred to the
Teachers’ Retirement System of Oklahoma or used as a cash offset in
such a transfer pursuant to subparagraph d of paragraph 2 of this
subsection. Service credit transferred to the Teachers’ Retirement
System of Oklahoma under this subsection shall also be canceled with
the Oklahoma Public Employees Retirement System.
2. For purposes of this subsection, the “sending system” shall
mean the Oklahoma Public Employees Retirement System. The
“receiving system” shall mean the Teachers’ Retirement System of
Oklahoma.
a. Within thirty (30) days notification of an intent to
transfer is received by the sending system, the
sending system shall, according to its own rules and
regulations:
(1) for members who have accrued at least eight (8)
years of credited service with the sending
system, determine the present value of the
member’s earned benefits attributable to the
years of service sought to be transferred,
discounted according to the member’s age at the
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time of transfer and computed as of the earliest
age at which the member would be able to retire.
Said computation shall assume an unreduced
benefit and be computed using interest and
mortality assumptions consistent with the
actuarial assumptions adopted by the Board of
Trustees for purposes of preparing the annual
actuarial evaluation, but shall not make any
projections regarding future salary. For
employees who have accrued at least eight (8)
years of credited service, the sending system
shall use the product of this calculation for
purposes of determining the transfer fee to be
paid by the employee under subparagraph c of this
paragraph so long as it is greater than the
product of the calculation in division (2) of
this subparagraph, and
(2) determine the sum of the employee and employer
contributions applicable to the years of service
sought to be transferred plus interest consistent
with the actuarial assumptions adopted by the
Board of Trustees for purposes of preparing the
annual actuarial evaluation. For all nonvested
members, and for members who have accrued at
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least eight (8) years of credited service, if the
product of this calculation is greater than the
product of the calculation in division (1) of
this subparagraph, the sending system shall use
the product of this calculation for purposes of
determining the amount to be transferred by the
sending system under subparagraph c of this
paragraph and any transfer fee to be paid by the
member under subparagraph d of this paragraph.
b. Within thirty (30) days notification of an intent to
transfer is received by the receiving system, the
receiving system shall determine, according to the
system’s own rules and regulations, the present value
of the member’s incremental projected benefits
discounted according to the member’s age at the time
of the transfer. Incremental projected benefits shall
be the difference between the projected benefit said
member would receive without transferring the service
credit and the projected benefit after transfer of
service credit computed as of the earliest age at
which the member would be able to retire. Said
computation shall assume an unreduced benefit and be
computed using interest, salary projections and
mortality assumptions consistent with the actuarial
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assumptions adopted by the Board of Trustees for
purposes of preparing the annual actuarial evaluation.
c. The sending system shall, within sixty (60) days from
the date notification of an intent to transfer is
received by the sending system, transfer to the
receiving system the amount determined in subparagraph
a of this paragraph. Except if the cost as calculated
under subparagraph a of this paragraph is greater than
the actuarial value of the incremental benefit in the
receiving system, as established in subparagraph b of
this paragraph, the sending system shall send the
receiving system an amount equal to the actuarial
value of the incremental projected benefit in the
receiving system.
d. In order to receive the credit provided for in
paragraph 1 of this subsection, if the cost of the
actuarial value of the incremental benefit to the
receiving system is greater than the cost as
calculated under subparagraph a of this paragraph for
the same years of service to the sending system as
established in subparagraphs a and b of this
paragraph, the employee shall elect to:
(1) pay any difference to receive full credit for the
years sought to be transferred, or
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(2) receive prorated service credit for only the
amount received from the Oklahoma Public
Employees Retirement System pursuant to this
subsection.
Such an election shall be made in writing, filed with
the System prior to receiving the credit provided for
in paragraph 1 of this subsection, and shall be
irrevocable.
3. Within sixty (60) days of successfully completing all of the
requirements for transfer under this subsection, the sending system
shall pay the receiving system any amount due under this subsection.
Within sixty (60) days of successfully completing all of the
requirements for transfer under this subsection, the member shall
pay the receiving system any amount due under this subsection. In
the event that the member is unable to pay the transfer fee provided
for in this subsection by the due date, the Board of Trustees of the
receiving system shall permit the member to amortize the transfer
fee over a period not to exceed sixty (60) months. Said payments
shall be made by payroll deductions unless the Board of Trustees
permits an alternate payment source. The amortization shall include
interest in an amount not to exceed the actuarially assumed interest
rate adopted by the Board of Trustees for investment earnings each
year. Any member who ceases to make payment, terminates, retires or
dies before completing the payments provided for in this section
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shall receive prorated service credit for only those payments made,
unless the unpaid balance is paid by said member, his or her estate
or successor in interest within six (6) months after said member’s
death, termination of employment or retirement, provided no
retirement benefits shall be payable until the unpaid balance is
paid, unless said member or beneficiary affirmatively waives the
additional six-month period in which to pay the unpaid balance.
4. Years of service transferred pursuant to this subsection
shall be used both in determining the member’s retirement benefit
and in determining the years of service for retirement and/or
vesting purposes. Years of service rendered as a member of the
Oklahoma Public Employees Retirement System prior to July 1, 1992,
if any, shall be deemed to be years of service rendered as a member
of the Teachers’ Retirement System of Oklahoma prior to July 1,
1992, and shall qualify such person as a member of the Teachers’
Retirement System of Oklahoma before July 1, 1992.
5. Notwithstanding the requirements of subsection (5) of
Section 917 of Title 74 of the Oklahoma Statutes, members electing
to take advantage of the transfer authorized by this subsection who
have withdrawn their contributions from the sending system shall
remit to the sending system the amount of the accumulated
contributions the member has withdrawn plus simple interest of ten
percent (10%) per annum prior to making said election or the
election shall be deemed invalid and the transfer shall be canceled.
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If such an election is deemed invalid and the transfer is canceled,
the accumulated contribution remitted to the sending system by the
member who originally withdrew their contributions shall be returned
to the member. The member’s rights and obligations regarding any
service credit reestablished in the sending system due to a failure
to satisfy the requirements of this subsection shall be determined
by the sending system in accordance with Section 901 et seq. of
Title 74 of the Oklahoma Statutes.
6. If any member fails for any reason to satisfy the
requirements of this subsection, the election to transfer service
credit shall be void and of no effect, and any service credited as a
result of this transfer shall be canceled. If such service is
canceled, the years of canceled service credit which were
unsuccessfully transferred to the receiving system from the sending
system shall be reestablished in the sending system. The member’s
rights and obligations regarding any service credit reestablished in
the sending system due to a failure to satisfy the requirements of
this subsection shall be determined by the sending system in
accordance with Section 901 et seq. of Title 74 of the Oklahoma
Statutes.
7. The Board of Trustees shall promulgate such rules as are
necessary to implement the provisions of this subsection.
L. Any member whose regular annual compensation was not
determined as provided for by law may pay the member contribution
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required pursuant to subsection B of this section on such amount not
included in the member’s regular annual compensation and receive
credit for such amount in the calculation of the member’s benefit.
The employees must pay the employer contributions required pursuant
to Section 17-108.1 of this title. Interest at the rate of ten
percent (10%) per annum shall be charged to both employee and
employer contributions. Provided that the employing district may
pay all or any portion of the contributions and interest the member
is required to pay. Any payment by the employing district for a
prior year obligation shall be considered a current obligation of
the employer.
M. Any active member who elected during the 1978-79 school year
to pay the difference between five percent (5%) on actual salary not
exceeding Ten Thousand Dollars ($10,000.00) and six percent (6%) on
actual salary not exceeding Fifteen Thousand Dollars ($15,000.00)
shall receive credit for one (1) year of credited service upon
receipt and approval of a proper request by the Board of Trustees.
N. Effective July 1, 1988, any member who is employed by the
Governor, the State Senate, the House of Representatives or the
Legislative Service Bureau shall be allowed to elect to retain
membership in the Retirement System upon payment of the accrued and
current member contributions and employer contributions as provided
in subsection B of this section and Section 17-108.1 of this title.
Such contributions may be paid on behalf of the member by the
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employing entity. Upon payment of such contributions, service
credits shall continue to be accumulated during such employment.
Accrued contributions shall be paid to the Retirement System by
August 1, 1989. Current contributions shall be paid to the
Retirement System by the tenth of the following month beginning with
the month of July 1989.
O. Notwithstanding any requirements of this title to restrict
the payment of service purchases, the Board of Trustees shall
promulgate such rules as necessary to allow active members of the
System to make installment payments for the redeposit of withdrawn
accounts or other payments due under the provisions of this title.
The rules shall permit the member to amortize the balance due over a
period not to exceed sixty (60) months, and shall include interest
consistent with the actuarial assumptions adopted by the Board of
Trustees for purposes of preparing the annual actuarial evaluation.
Further, the rules shall provide that all payments must be completed
prior to the effective retirement date of the member.
P. 1. A member of the Oklahoma Public Employees Retirement
System who becomes a member of the Teachers’ Retirement System of
Oklahoma because the member has become employed by an entity or
institution within The Oklahoma State System of Higher Education,
State Board of Education, State Board of Career and Technology
Education, Oklahoma Department of Career and Technology Education,
Oklahoma School of Science and Mathematics, Oklahoma Center for the
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Advancement of Science and Technology, State Department of
Rehabilitation Services, Oklahoma State Regents for Higher
Education, Department of Corrections, State Department of Education,
Oklahoma Board of Private Vocational Schools, Board of Regents of
Oklahoma Colleges, Oklahoma Student Loan Authority, or the Teachers’
Retirement System of Oklahoma, may elect to receive credit in the
Teachers’ Retirement System of Oklahoma for those years of service
accumulated by the member in the Oklahoma Public Employees
Retirement System pursuant to this subsection. A member shall be
eligible to elect to receive credit for such years of service if:
a. the member is an active member of the Teachers’
Retirement System of Oklahoma,
b. the member provides notice to the Teachers’ Retirement
System of Oklahoma and the Oklahoma Public Employees
Retirement System of the member’s election to transfer
such retirement credit. The notice shall include a
list of the years to be transferred, and
c. the member is not receiving or eligible to receive
retirement credit or benefits from such service in any
other public retirement system, notwithstanding the
years of service sought to be transferred under this
subsection.
Members electing to take advantage of the transfer authorized by
this subsection shall have all service credit with the Oklahoma
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Public Employees Retirement System canceled which is transferred to
the Teachers’ Retirement System of Oklahoma.
2. For purposes of this subsection, the “sending system” shall
mean the Oklahoma Public Employees Retirement System. The
“receiving system” shall mean the Teachers’ Retirement System of
Oklahoma. Within thirty (30) days after notification of an intent
to transfer is received by the sending system, the sending system
shall, according to its own rules, send to the receiving system all
employer and employee contributions made on behalf of the member
which were made to the sending system plus an additional amount of
earnings based on the actuarial assumed rate of the sending system.
Upon receipt of these contributions by the receiving system, the
receiving system shall give credit to the transferring member in an
amount equal to the years of service accrued in the sending system.
3. If the transferring member’s normal retirement date
calculation is based upon the sum of the member’s age and number of
years of credited service totaling eighty (80) in the sending
system, then the member shall retain such calculation in the
receiving system.
4. The Board of Trustees shall promulgate such rules as are
necessary to implement the provisions of this subsection.
Q. A former member of the Teachers’ Retirement System of
Oklahoma who withdrew his or her contributions from the System prior
to January 1, 1983, and who had at least ten (10) years of service
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in the System and purchased that service in the Oklahoma Public
Employees Retirement System, may elect to revoke that purchase from
the Oklahoma Public Employees Retirement System and to repay the
withdrawn contributions to the System in order to be eligible, once
such member reaches the normal retirement age, to receive a
retirement benefit that is based upon years of service and
compensation at the time such member terminated employment. In
addition, such former member may elect to transfer service credit
accrued in the Oklahoma Public Employees Retirement System to the
Teachers’ Retirement System of Oklahoma pursuant to subsection K of
this section. The election, pursuant to this subsection, shall be
made prior to September 1, 2000. The election and the repayment
shall be made according to rules promulgated by the Board.
SECTION 3. Section 1 of this act shall become effective June 1,
2026.
SECTION 4. Section 2 of this act shall become effective July 1,
2026.
SECTION 5. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
COMMITTEE REPORT BY: COMMITTEE ON RETIREMENT AND GOVERNMENT
RESOURCES
February 17, 2026 - DO PASS AS AMENDED