Okla. Stat. tit. 70, § 70-17-116.2

rates and benefits – Service credits.

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)

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.

Oklahoma Statutes - Title 70. Schools Page 764

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

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

to July 1, 1995, plus any years of prior service

authorized under this title, plus
ollars

($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

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:

Oklahoma Statutes - Title 70. Schools Page 765

(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

(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

4. All public schools in this state shall treat the employee

contributions as being picked up under the provisions of Section 414
ate 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

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)

Oklahoma Statutes - Title 70. Schools Page 766

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),

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),

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
t 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

Oklahoma Statutes - Title 70. Schools Page 767

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

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.

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

Oklahoma Statutes - Title 70. Schools Page 768

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
rship, 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

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 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 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

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

Oklahoma Statutes - Title 70. Schools Page 769

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

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
oard 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.

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

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

Oklahoma Statutes - Title 70. Schools Page 770

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

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
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

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

Oklahoma Statutes - Title 70. Schools Page 771

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

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

as amended from time to time. Members who retire prior to July 1,

1993, shall have their monthly benefit adjusted to include all
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

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

Oklahoma Statutes - Title 70. Schools Page 772

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.

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

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

Oklahoma Statutes - Title 70. Schools Page 773

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
ployees 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

Oklahoma Statutes - Title 70. Schools Page 773

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

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

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

Oklahoma Statutes - Title 70. Schools Page 774

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
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

(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

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 Statutes - Title 70. Schools Page 775

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.

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
drew 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

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

Oklahoma Statutes - Title 70. Schools Page 776

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

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.
.

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

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

Oklahoma Statutes - Title 70. Schools Page 777

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

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

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
ion.

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

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

Oklahoma Statutes - Title 70. Schools Page 778

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.