Okla. Stat. tit. 70, § 70-17-108

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

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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
e

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

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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

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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
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

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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
ers’

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

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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.