Okla. Stat. tit. 70, § 70-17-116.2C

Pre-cap removal service - Payment of contribution deficit amount.

A. As used in this section:

1. "Contribution deficit" means the amount of money computed

for an eligible employee by multiplying the employee contribution

rate in effect for any period of service performed on or after July

1, 1987, through June 30, 1995, multiplied by the amount of salary

earned by the member in excess of the applicable maximum

compensation level of the member for such period with interest at

the rate of ten percent (10%) per year compounded annually;

provided, that for the designated fiscal years prescribed by

subparagraphs a and b of this paragraph, the contribution deficit

payment shall be adjusted to:

a. fifty percent (50%) of the total amount of the

computation otherwise prescribed by this paragraph for

the fiscal year ending June 30, 2007,

b. seventy-five percent (75%) of the total amount of the

computation otherwise prescribed by this paragraph for

the fiscal year ending June 30, 2008, and

c. one hundred percent (100%) of the total amount of the

computation otherwise prescribed by this paragraph for

the fiscal year ending June 30, 2009, and for each

fiscal year thereafter;

2. "Eligible employee" means a member of the System who has not

retired prior to the effective date of this act and who has

performed service at any time prior to June 30, 1995, and who

fulfills the requirements of this act with respect to inclusion of

pre-cap removal years of service in a retirement benefit computation

and:

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a. who has already reached a normal retirement age prior

to the effective date of this act and has not retired

prior to the effective date of this act,

b. who reaches a normal retirement age on or after the

effective date of this act, and

c. who is employed by an institution within The Oklahoma

State System of Higher Education that is not a

comprehensive university or a regional institution

offering a four-year degree program as designated or

authorized by the Oklahoma State Regents for Higher

Education;

3. "Maximum average salary amount", subject to the requirements

of this paragraph related to the funding level for employer

contribution rates, means:

a. Sixty Thousand Dollars ($60,000.00) regardless of any

otherwise applicable maximum compensation level for

the fiscal year ending June 30, 2007,

b. Eighty Thousand Dollars ($80,000.00) regardless of any

otherwise applicable maximum compensation level for

the fiscal year ending June 30, 2008, and

c. the full amount of the average salary without any

limitation for the fiscal year ending June 30, 2009,

and or each fiscal year thereafter.

The maximum final average salary amount otherwise authorized

pursuant to subparagraph b or subparagraph c of this paragraph shall

be contingent upon the participating employer in whose employment

the member is active upon the date the member retires receiving, for

the fiscal year during which the member's retirement will begin, the

amount of funds required pursuant to subparagraph (A)(1) of Section

17-108.1 of this title in order to allow the employer contribution

rates prescribed by subparagraph (A)(1) of Section 17-108.1 of this

title to be effective as law. If a member is employed by an

employer that does not receive the funding required by subparagraph

(A)(1) of Section 17-108.1 of this title for the fiscal year during

which the member's retirement will begin, the member shall not be

authorized to use the maximum final average salary otherwise

authorized by this paragraph to compute retirement benefits;

4. "Maximum compensation level" means either:

a. Twenty-five Thousand Dollars ($25,000.00) if a member

did not elect to make employee contributions on a

higher salary amount for any pre-cap removal years of

service, or

b. Forty Thousand Dollars ($40,000.00) if a member did

elect to make employee contributions upon actual
therwise

authorized by this paragraph to compute retirement benefits;

4. "Maximum compensation level" means either:

a. Twenty-five Thousand Dollars ($25,000.00) if a member

did not elect to make employee contributions on a

higher salary amount for any pre-cap removal years of

service, or

b. Forty Thousand Dollars ($40,000.00) if a member did

elect to make employee contributions upon actual

salary not in excess of such amount for any pre-cap

removal years of service;

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5. "Pre-cap removal service" means any service performed by an

active member prior to June 30, 1995; and

6. "System" means the Teachers' Retirement System of Oklahoma;

B. Unless otherwise expressly provided by this section, any

definition contained in Section 17-101 of this title otherwise

applicable to computation of benefits for retired members of the

Teachers' Retirement System of Oklahoma shall have the same meaning

for purposes of this section.

C. Effective July 1, 2006, any eligible member of the Teachers'

Retirement System of Oklahoma, who, as of July 1, 2006, has already

reached a normal retirement age or who on or after July 1, 2006,

reaches a normal retirement age as defined by paragraph 24 of

Section 17-101 of this title, shall be eligible to have a retirement

benefit computed as provided by this section. If a member is

eligible for the benefit computation authorized by this section, the

average salary used to compute the retirement benefit of the member

shall be governed by the provisions of this section and such

provisions shall govern in the event of conflict between this

section and the provisions of Section 17-116.2 of this title.

D. An eligible employee who performs service in the manner

prescribed by subsection E of this section and who makes payment of

the applicable contribution deficit amount may have a retirement

benefit computed as otherwise authorized by Section 17-105 of this

title, but shall have such benefit computed without regard to any

maximum compensation level that would otherwise be applicable to the

compensation of the member for any period of pre-cap removal

service.

E. In order to have retirement benefits computed as authorized

by subsection C of this section, and in addition to the payment of

the contribution deficit amount required by this section, in order

to have any pre-cap removal service included in the retirement

benefit computation of the member using the average salary earned

during such period of participating service subject to the maximum

average salary amount, the member shall be required to perform one

(1) year of participating service on or after the date as of which

the member reaches a normal retirement age, for each two (2) years

of service performed prior to July 1, 1995. For purposes of this

section, any year of service performed prior to the effective date

of this act after a member reached a normal retirement age shall

qualify for purposes of the retirement benefit computation

authorized by this section.

F. One (1) year of participating service performed by an

eligible member who, prior to the effective date of this act has

reached a normal retirement age or, who on or after July 1, 2006,

reaches a normal retirement age, shall result in the inclusion of

the two (2) years of participating service immediately preceding

July 1, 1995, in a retirement benefit computation using the average

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salary of the member, subject to the maximum average salary amount.

For each additional year of participating service performed by the

eligible member thereafter, whether such service has been performed

prior to the effective date of this act or whether such service is

performed on or after the effective date of this act, the two (2)

next succeeding years of pre-cap removal service performed prior to

the end of the preceding two-year period may be included in the
each additional year of participating service performed by the

eligible member thereafter, whether such service has been performed

prior to the effective date of this act or whether such service is

performed on or after the effective date of this act, the two (2)

next succeeding years of pre-cap removal service performed prior to

the end of the preceding two-year period may be included in the

benefit computation without regard to the maximum compensation level

of the member that would otherwise be applicable to such pre-cap

removal service.

G. The eligible member shall be required to make payment to the

Teachers' Retirement System of Oklahoma of the contribution deficit

amount for any year of service performed on or after July 1, 1987,

but not later than June 30, 1995, as prescribed by subsections H

through K of this section in order to have any years of pre-cap

removal service included in the retirement benefit computation using

the average salary of the member subject to the maximum average

salary amount.

H. In order to have years of service included in the benefit

computation using average salary subject to the maximum average

salary amount, the member shall be required to make payment of the

contribution deficit for the following years of service and in the

sequence prescribed by subsection I of this section according to the

adjustments required by subparagraphs a and b of paragraph 1 of

subsection A of this section:

1. July 1, 1987, through June 30, 1988;

2. July 1, 1988, through June 30, 1989;

3. July 1, 1989, through June 30, 1990;

4. July 1, 1990, through June 30, 1991;

5. July 1, 1991, through June 30, 1992;

6. July 1, 1992, through June 30, 1993;

7. July 1, 1993, through June 30, 1994; and

8. July 1, 1994, through June 30, 1995.

I. For each year of service performed by the eligible member

prior to the effective date of this act and after having reached a

normal retirement age, or for each year of service performed by the

member after reaching a normal retirement age on or after the

effective date of this act, the member shall be required to make

payment of the contribution deficit amount for each year of service

beginning with the years described in paragraphs 7 and 8 of

subsection H of this section. For each additional year of service

performed by the eligible member after the normal retirement age of

the member, the member shall make payment of the contribution

deficit amount for each of the next two (2) years of service as

described in:

1. Paragraphs 5 and 6 of subsection H of this section;

2. Paragraphs 3 and 4 of subsection H of this section; and

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3. Paragraphs 1 and 2 of subsection H of this section.

J. After making payment of all required contribution deficit

amounts for all periods of service described in paragraphs 1 through

8 of subsection H of this section, an eligible member who has

performed any additional years of service after having reached a

normal retirement age, or for each year of service performed by the

member after reaching a normal retirement age on or after the

effective date of this act, the member may then include any

additional two-year period of service performed prior to July 1,

1987, using the average salary of the member, subject to the maximum

average salary amount, in the retirement benefit computation for

such years of service by performing one (1) additional year of

service.

K. No contribution deficit payments shall be required of the

eligible member with respect to years of service performed prior to

July 1, 1987, if such years of service are included in the

retirement benefit computation of the member using average salary as

otherwise authorized by this section, subject to the maximum average

salary amount.

L. An eligible member may make the payment of the contribution

deficit amount required by this section at any time prior to the
er with respect to years of service performed prior to

July 1, 1987, if such years of service are included in the

retirement benefit computation of the member using average salary as

otherwise authorized by this section, subject to the maximum average

salary amount.

L. An eligible member may make the payment of the contribution

deficit amount required by this section at any time prior to the

retirement of the member from the System; however, no years of pre-

cap removal service for which full payment of the required

contribution deficit has not been made pursuant to the requirements

of this section may be included in the retirement benefit

computation of the otherwise eligible member using the average

salary of the member for such period, subject to the maximum average

salary amount.

M. Any pre-cap removal years of service for which the required

contribution deficit payment has not been made to the System shall

only be included in a retirement benefit computation using the

maximum compensation level in effect for the member at the time such

years of service were performed.

N. All payments to the System for pre-cap removal service shall

be made prior to the date as of which a member retires. No payments

to the System for pre-cap removal service otherwise authorized by

this section shall be made after a member retires from the System

and begins to receive benefits.

O. Any eligible member who, prior to the effective date of this

act, has not previously made an election for payment of employee

contributions on a maximum compensation level of Twenty-five

Thousand Dollars ($25,000.00) for pre-cap removal service may file

an election with the System to make payment of the required

contribution deficit amount pursuant to this section. Such an

election shall be irrevocable.

P. No participating employer of the System shall make payment

of any required contribution deficit amount on behalf of any

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otherwise eligible member, whether directly or indirectly, in order

for the member to have retirement benefits computed according to the

provisions of this section.

Q. No member of the System who has retired prior to July 1,

2006, shall be eligible to make any payments of the contribution

deficit amount and no such member shall have the ability to have a

retirement benefit recomputed as a result of the provisions of this

section.

R. The additional retirement benefit attributable to the

provisions of this section may be computed for members who retire on

or after July 1, 2006, but prior to January 1, 2007, but the

additional retirement benefit attributable to the provisions of this

section shall not be payable until January 1, 2007. On and after

January 1, 2007, the additional retirement benefit attributable to

the provisions of this section shall be added to the retirement

benefit amount of any member who retires on or after July 1, 2006,

and prior to January 1, 2007, and such increased benefit amount

shall be payable to the member or any beneficiary of the member as

otherwise provided pursuant to the provisions of Section 17-101 of

this title in the same manner as other retirement benefits are

payable.