§ 74-913 — Crediting of prior and participating service - Transfer of

Oklahoma § 74-913

• Jurisdiction: Oklahoma
• Title 74: State Government

Text

service credits from Teachers' Retirement System of Oklahoma. A. Prior service shall be credited as follows: 1. A member shall receive full credit for employment with any participating employer prior to the entry date of his or her employer whether or not continuous and whether or not he or she was employed with a participating employer on such entry date, provided that any member who has retired before the passage of Section 901 et seq. of this title, shall not receive retirement benefits retroactively for such prior service. Provided, that at such time that an employer becomes a participating employer on or after January 1, 1965, and before January 1, 1975, each member and each retirant, upon making proper written application therefor, shall receive prior service credit for service with such employer in the same manner as if such participating employer had been a participating employer on the date first eligible to become a participating employer; and increased benefits attributable to such increased prior service credit shall commence with the next monthly benefit payment due following receipt and approval of such application by the Board of Trustees. No prior service shall be granted, however, for periods of service in which the employee made contributions which he or she subsequently withdrew, unless he or she has complied with the provisions of subsection (5) of Section 917 of this title. The burden of proof regarding prior service shall be with the member and shall be documented in such manner as the Board may direct; 2. Any member who was employed in an institution of higher learning by a State Board of Regents or who was employed by an Oklahoma school district prior to July 1, 1943, may receive prior service credit under Section 901 et seq. of this title for the period of time they were so employed; 3. Any member who served in the Armed Forces of the United States, as defined in paragraph (23) of Section 902 of this title, prior to membership in the Oklahoma Public Employees Retirement System shall be granted prior service credit, not to exceed five (5) years, for those periods of active military service during which he or she was a war veteran. For a member of the System hired on or after July 1, 2003, if the military service credit authorized by this paragraph is used to compute the retirement benefit of the member and the member retires from the System, such military service credit shall not be used to compute the retirement benefit in any other retirement system created pursuant to the Oklahoma Statutes and the member may receive credit for such service only in the retirement system from which the member first retires; 4. An elective state, county, city or town official who is ineligible for membership as a result of any applicable state law or constitutional provision making him or her ineligible solely because of his or her being such an official at the time of his or her eligibility for membership at the time his or her employer becomes a participating employer shall nevertheless not forfeit the prior service credit to which he or she would be entitled except for such ineligibility, provided that he or she either: a. becomes an employee of a participating employer within four (4) calendar months of the expiration of his or her term of office current at the time of his or her eligibility except for his or her being an elective state or county official, b. within a period of four (4) years after the expiration of his or her term of office current at the time of his or her eligibility except for his or her being an elective state or county official, is elected as a state or county official and thereupon becomes a member of the System, or c. has completed ten (10) years of credited service as of the date of his or her eligibility for membership except for his or her being an elective state or county official; 5. Beginning July 1, 1965, all employees of the Department of Human Services shall participate in the Oklahoma Public Employees Retirement System to the same extent as other employees of participating employers in such System. Provided, that any employee performing teaching services in the Oklahoma School for the Deaf or the Oklahoma School for the Blind may elect to participate in the Teachers’ Retirement System of Oklahoma in lieu of the Oklahoma Public Employees Retirement System; and any other employee at each such institution or any other institution under the jurisdiction of the Department of Human Services, participating in the Teachers’ Retirement System of Oklahoma, may elect to continue to participate in such System in lieu of the Oklahoma Public Employees Retirement System. All employees who shall have participated in the Teachers’ Retirement System of Oklahoma and not continuing therein shall have the right to withdraw their membership from the Teachers’ Retirement System of Oklahoma on the same terms as other members withdrawing from such System before retirement. Provided, all persons employed at the Oklahoma School for the Blind and Oklahoma School for the Deaf on June 30, 1965, who became subject to the Oklahoma Public Employees Retirement System, on July 1, 1965, shall receive credit for prior service and be eligible for participation, regardless of age; 6. A member employed as a temporary employee by the Legislative Service Bureau or its predecessors, the Senate or the House of Representatives for the full duration of a regular legislative session prior to the member’s eligibility for membership in the System shall receive six (6) months of prior service credit for each such full regular legislative session if the employee is employed by the Legislative Service Bureau or its predecessors, the Senate or the House of Representatives as either a full-time or temporary employee for a minimum of six (6) full regular legislative sessions beginning January 1, 1983. For purposes of this subsection, the determination of whether an employee is employed for the full duration of a regular legislative session shall be made by the Legislative Service Bureau if such employee is employed by the Legislative Service Bureau, the Senate if such employee is employed by the Senate, or by the House of Representatives if such employee is employed by the House of Representatives; 7. A member of the System shall receive prior service credit for any years of service after January 1, 1975, the member had with a participating employer if the member is not receiving or eligible to receive such prior service credit for the same time in any other state or county retirement system authorized by law. To receive the service credit, the member shall pay the amount determined by the Board pursuant to Section 913.5 of this title; and 8. Any member who is a state employee and receives temporary total disability benefits during the period of absence with a participating employer due to a work-related injury or illness incurred while engaged in a governmental function for the participating employer pursuant to the Administrative Workers’ Compensation Act shall receive credit for participating service during such period of absence subject to the following requirements: a. the member was employed by the participating employer immediately prior to and during the period of absence, b. the member must notify the System in writing not later than four (4) months after the member’s return to his or her job duties with the participating employer, or termination of employment with the participating employer, or termination of the temporary total disability benefits, whichever is earlier, of the member’s desire to receive participating service credit for the period of absence, c. the participating employer must certify to the System in writing the dates during which temporary total disability benefits payments were paid to the member, and d. the member and the participating employer shall each pay their respective contributions required for the period of absence without interest within sixty (60) days of invoicing by the System, or with interest of seven and one-half percent (7 1/2%) compounded annually if paid after the sixty (60) days. B. Participating service shall be credited as follows: 1. A member shall receive credit for participating service with a participating employer in accordance with the rules and regulations established by the Board; provided, however, that a member who is not a full-time employee shall receive prorated credit for actual hours worked; 2. Leaves of absence shall not count as a break in continuous employment provided the member leaves his or her accumulated contribution on deposit with the fund; however, the leaves of absence shall not be credited except that involuntary furloughs established by Office of Management and Enterprise Services rules, involuntary furloughs of employees of a district attorney conducted in substantial compliance with the rules of the Office of Management and Enterprise Services as certified by the District Attorneys Council, involuntary furloughs of employees pursuant to a furlough plan adopted by the President Pro Tempore of the Senate or the Speaker of the House of Representatives as authorized in Section 840-5.1 of this title and involuntary furloughs of employees authorized by the Oklahoma Supreme Court shall be credited; 3. Any member who has served in the Armed Forces of the United States, as defined in paragraph (23) of Section 902 of this title, shall be granted participating service for those periods of active military service during which he or she was a war veteran provided this service is immediately preceded by a period of employment with a participating employer and is followed by return to employment as an employee with the same or another participating employer within ninety (90) days immediately following discharge from such military service provided the member leaves his or her accumulated contributions on deposit with the fund. Provided, on or after the effective date of this act, service granted under this section and service purchased under Section 913.8 of this title shall not exceed five (5) years; 4. A period of total disability under the System immediately followed by employment with a participating employer, shall not count as a break in continuous employment; provided, that such periods while not employed shall not be credited except that involuntary furloughs established by Office of Management and Enterprise Services Rule 6.13, shall be credited; 5. Termination of employment with a participating employer followed by employment with the same or another participating employer within four (4) calendar months shall not constitute a break in continuous employment; provided, that such period while not employed shall not be credited as participating service; 6. Provided, however, that all employee contributions required by Section 901 et seq. of this title made by employees prior to June 30, 1977, will entitle the employee to additional years of participating service in accordance with the following schedule. Employee accumulated contributions: More than $1.00 up to $500 = 1 year participating service More than $500 up to $1,000 = 2 years participating service More than $1,000 up to $1,500 = 3 years participating service More than $1,500 up to $2,000 = 4 years participating service More than $2,000 = 5 years participating service In no event shall the employee be entitled to more than five (5) additional years of participating service as provided hereunder. Provided further, that upon termination of employment prior to retirement, the accumulated contributions will be credited as above indicated to establish a vested benefit if so elected by any such employee; and 7. a. The total participating service credit of a member who retires or terminates employment and elects a vested benefit shall include not to exceed one hundred thirty (130) days of unused sick leave accumulated subsequent to August 1, 1959, during the member’s employment with any participating employer. Such credit shall be added in terms of whole months. Twenty (20) days of unused sick leave shall equal one (1) month for purposes of participating service credit. If unused sick leave entitles a member to an additional year of service credit, the member’s employer shall reimburse the System for the cost of funding the additional benefit. For members who join the System on or after November 1, 2012, if unused sick leave entitles a member to any additional service credit, the member’s employer shall reimburse the System for the cost of funding the additional benefit. Each participating employer shall provide the System with adequate and timely information necessary to determine additional benefits and its cost under this paragraph. This subparagraph shall apply to members retiring or vesting on or after July 1, 1984. b. For members who join the System on or after November 1, 2012, unused sick leave as set forth in subparagraph a of this paragraph shall be credited at the same rate but not used to round up to another year. Instead, any additional months of unused sick leave credit shall be added to other service credit without rounding. C. In determining the number of years of credited service, a fractional year of six (6) months or more shall be considered as one (1) year, and less than six (6) months shall be disregarded. For members who join the System on or after November 1, 2012, the number of years of credited service shall be based on actual years and full months of credited service without rounding up or down. D. A member may receive credit for those years of credited service accumulated by the member while a member of 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 Teachers’ Retirement System of Oklahoma, if the member is not receiving or eligible to receive retirement credit or benefits from such service in any other public retirement system. To receive the service credit, the member shall pay the amount determined by the Board pursuant to Section 913.5 of this title. E. A member may receive credit for those years of service accumulated by the member as an elected official if the member is not receiving or eligible to receive retirement credit or benefits from such service in any public retirement system. Prior to January 1, 1991, to receive the service credit, the member shall pay to the Board for each year of service purchased pursuant to this subsection a sum equal to the employee and employer contribution rate that would have been applicable to the member as determined by the Board and interest not to exceed five percent (5%), and effective January 1, 1991, to receive the service credit, the member shall pay the amount determined by the Board pursuant to Section 913.5 of this title. F. Effective December 12, 1994, and thereafter, a leave of absence on account of a period of qualified military service in the uniformed services of the United States within the meaning of Section 414(u)(5) of the federal Internal Revenue Code, followed by a return to employment with the participating employer within ninety (90) days after completion of the period of service may be eligible for credited service under this System. Notwithstanding any provision of this plan to the contrary, contributions, benefits and service credit with respect to qualified military service will be allowed in accordance with Section 414(u) of the federal Internal Revenue Code. G. 1. An active member of the Oklahoma Public Employees Retirement System may receive credit for those years of service accumulated by the member while a member of the Teachers’ Retirement System of Oklahoma if: a. the member is an active member of the Oklahoma Public Employees Retirement System, 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 who are receiving or eligible to receive retirement credit or benefits from such service in any other public retirement system shall have all service credit with the Teachers’ Retirement System of Oklahoma canceled which is not transferred to the Oklahoma Public Employees Retirement System 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 Teachers’ Retirement System of Oklahoma. The “receiving system” shall mean the Oklahoma Public Employees Retirement System. a. 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 and regulations: (1) for members who have vested 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. Such 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 vested employees 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 this division, 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 vested members 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 members under subparagraph d of this paragraph. b. Within thirty (30) days after 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 the 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. Such 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 under subparagraph a of this paragraph for the same years of service to the sending system 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 (2) receive prorated service credit for only the amount received from the Teachers’ Retirement System of Oklahoma 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. The 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 the member, his or her estate or successor in interest within six (6) months after the 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 Teachers’ Retirement System of Oklahoma prior to July 1, 1992, if any, shall be deemed to be years of service rendered as a member of the Oklahoma Public Employees Retirement System prior to July 1, 1992, and shall qualify such person as a member of the Oklahoma Public Employees Retirement System before July 1, 1992. 5. Notwithstanding the requirements of Section 17-104 of Title 70 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 such 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 17-101 et seq. of Title 70 of the Oklahoma Statutes. 6. If any member fails for any reason to satisfy the requirements of this subsection, the election to transfer retirement credit shall be void and of no effect, and any retirement credited as a result of this transfer shall be canceled. If such retirement credit is canceled, the years of canceled retirement 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 retirement 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 17-101 et seq. of Title 70 of the Oklahoma Statutes. 7. The Board of Trustees shall promulgate such rules as are necessary to implement the provisions of this subsection. H. 1. A member of the Teachers’ Retirement System of Oklahoma whose last service with the Teachers’ Retirement System of Oklahoma was with 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 for those years of service accumulated by the member in the Teachers’ Retirement System of Oklahoma, pursuant to this subsection. A member shall be eligible to elect to transfer credit for such years of service from the Teachers’ Retirement System of Oklahoma to the Oklahoma Public Employees Retirement System if: a. the member is an active member of the Oklahoma Public Employees Retirement System, 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 Teachers’ Retirement System of Oklahoma canceled which is transferred to the Oklahoma Public Employees Retirement System. 2. For purposes of this subsection, the “sending system” shall mean the Teachers’ Retirement System of Oklahoma. The “receiving system” shall mean the Oklahoma Public Employees Retirement System. 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. I. A member of the System in the employment of the Governor, the Senate or the House of Representatives, on or after July 1, 1999, may make an election prior to December 31, 2000, which shall be irrevocable and on a form prescribed for such purpose by the System, to continue participation in the System upon becoming employed by a participating employer of the Teachers’ Retirement System of Oklahoma. The Board shall promulgate all rules necessary to implement the provisions of this subsection.

Legislative History

Added by Laws 1963, c. 50, § 13, emerg. eff. May 6, 1963. Amended by Laws 1965, c. 432, § 3, emerg. eff. July 9, 1965; Laws 1968, c. 400, § 2, emerg. eff. May 17, 1968; Laws 1969, c. 349, § 6, emerg. eff. May 13, 1969; Laws 1970, c. 296, § 5, emerg. eff. April 28, 1970; Laws 1973, c. 279, § 4, emerg. eff. May 30, 1973; Laws 1974, c. 239, § 1, operative July 1, 1974; Laws 1975, c. 267, § 4, emerg. eff. June 5, 1975; Laws 1976, c. 207, § 3, emerg. eff. June 7, 1976; Laws 1977, c. 147, § 5, eff. July 1, 1977; Laws 1979, c. 285, § 6, eff. July 1, 1979; Laws 1981, c. 316, § 1, eff. July 1, 1981; Laws 1982, c. 65, § 1, emerg. eff. March 30, 1982; Laws 1984, c. 267, § 2, operative July 1, 1984; Laws 1985, c. 300, § 4, emerg. eff. July 24, 1985; Laws 1987, c. 236, § 184, emerg. eff. July 20, 1987; Laws 1988, c. 267, § 30, operative July 1, 1988; Laws 1989, c. 327, § 5, eff. July 1, 1989; Laws 1990, c. 340, § 38, eff. July 1, 1990; Laws 1992, c. 376, § 15, eff. July 1, 1992; Laws 1993, c. 322, § 19, emerg. eff. June 7, 1993; Laws 1994, c. 370, § 4, eff. July 1, 1994; Laws 1995, c. 329, § 2, eff. July 1, 1995; Laws 1996, c. 3, § 23, emerg. eff. March 6, 1996; Laws 1997, c. 255, § 1, eff. July 1, 1997; Laws 1998, c. 419, § 13, eff. July 1, 1998; Laws 1999, c. 257, § 33, eff. July 1, 1999; Laws 2000, c. 377, § 13, eff. July 1, 2000; Laws 2001, c. 5, § 57, emerg. eff. March 21, 2001; Laws 2003, c. 406, § 17, eff. July 1, 2003; Laws 2004, c. 5, § 101, emerg. eff. March 1, 2004; Laws 2004, c. 359, § 1, emerg. eff. May 27, 2004; Laws 2005, c. 1, § 136, emerg. eff. March 15, 2005; Laws 2010, c. 392, § 4, emerg. eff. June 7, 2010; Laws 2012, c. 155, § 1, eff. Nov. 1, 2012; Laws 2013, c. 15, § 111, emerg. eff. April 8, 2013; Laws 2018, c. 21, § 1, eff. Nov. 1, 2018; Laws 2023, c. 146, § 3, eff. Nov. 1, 2023. NOTE: Laws 1984, c. 166, § 10 repealed by Laws 1985, c. 300, § 11, emerg. eff. July 24, 1985. Laws 1995, c. 302, § 2 repealed by Laws 1996, c. 3, § 25, emerg. eff. March 6, 1996. Laws 2000, c. 311, § 3 repealed by Laws 2001, c. 5, § 58, emerg. eff. March 21, 2001. Laws 2003, c. 359, § 4 repealed by Laws 2004, c. 5, § 102, emerg. eff. March 1, 2004. Laws 2004, c. 275, § 16 repealed by Laws 2005, c. 1, § 137, emerg. eff. March 15, 2005. Laws 2012, c. 304, § 928 repealed by Laws 2013, c. 15, § 112, emerg. eff. April 8, 2013.