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An act relating to public retirement systems, the official text

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RBH No. 12184

1                   STATE OF OKLAHOMA

2   1st Session of the 60th Legislature (2025)

3 HOUSE BILL 1258   By: Hays

4

5

6                   AS INTRODUCED

7   An Act relating to public retirement systems;

    enacting the Defined Contribution Retirement Plan for

8   Teachers; imposing duty on the Teachers' Retirement

    System of Oklahoma to establish defined contribution

9   system; specifying persons eligible for participation

    in system; allowing employee to make certain

10  election; prescribing procedures related to date of

    service accrual; requiring defined contribution

11  system to be qualified pursuant to provisions of the

    Internal Revenue Code of 1986, as amended;

12  prescribing minimum employee contribution amount;

    prescribing maximum employee contribution amount;

13  providing for salary deductions for employee

    contributions; providing for employer matching

14  contributions; specifying amount of employer matching

    contributions; prescribing procedures related to

15  employer matching contributions; providing for

    modifications to matching amounts; providing for

16  payment of certain costs related to administration of

    defined contribution system administration; providing

17  for vesting schedule; imposing duty on Board of

    Trustees of the Teachers' Retirement System of

18  Oklahoma with respect to investment of funds in

    defined contribution system accounts; providing for

19  payment of certain revenues to the Teachers'

    Retirement System of Oklahoma; providing for deposit

20  of funds with existing defined benefit plan;

    providing for effect of enactment on certain rights;

21  prohibiting certain collection activity with respect

    to funds; authorizing offsets; providing for

22  enforcement of qualified domestic orders; defining

    term; prescribing procedures with respect to

23  alternate payees; prescribing content; imposing

    restrictions; authorizing the Board to promulgate

24  rules; amending Section 1, Chapter 289, O.S.L. 2023

    Req. No. 12184                                         Page 1
                                                             RBH No. 12184

1   (70 O.S. Supp. 2024, Section 18-114.15), which

    relates to the minimum salary schedule; modifying

2   provisions of the minimum salary schedule; providing

    for codification; and providing an effective date.

3

4

5

6

7 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

8   SECTION 1.      NEW LAW  A new section of law to be codified

9 in the Oklahoma Statutes as Section 17-301 of Title 70, unless there

10 is created a duplication in numbering, reads as follows:

11  This act shall be known and may be cited as the "Defined

12 Contribution Retirement Plan for Teachers".

13  SECTION 2.      NEW LAW  A new section of law to be codified

14 in the Oklahoma Statutes as Section 17-302 of Title 70, unless there

15 is created a duplication in numbering, reads as follows:

16  A. The Teachers' Retirement System of Oklahoma (System) shall

17 establish a defined contribution system for certified personnel, as

18 defined in Section 26-103 of this title, who first become employed

19 in a full-time equivalent position or a position which is less than

20 full-time but more than half-time position and which qualifies for

21 employee benefits, including but not limited to, health insurance

22 and leave time by any participating employer of the System, as

23 defined by paragraph (5) of Section 17-101 of this title, on or

24 after November 1, 2024.

    Req. No. 12184                                                 Page 2
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1   B. The employee may make a one-time irrevocable written

2 election prior to the first day of the month following employment

3 that shall be in writing and shall cover all future service with a

4 participating employer, regardless of a break in service, to

5 participate in the Teachers' Retirement System of Oklahoma, as

6 established pursuant to Section 17-101, et seq., of this title.

7   C. Any employee who does not make a one-time irrevocable written

8 election to participate in the defined benefit plan, as described in

9 subsection B of this section, shall be subject to the provisions of

10 Section 18-114.15 of this title.

11  D. An employee described by subsection A of this section shall

12 become a participant in the defined contribution system and the

13 employee shall not accrue any service credit in the Teachers'

14 Retirement System of Oklahoma, as established pursuant to Section

15 17-101, et seq., of this title.

16  E. Employees who participate in the defined contribution system

17 shall be deemed to begin service in the defined contribution system

18 on the first day of the month following employment.

19  SECTION 3.      NEW LAW  A new section of law to be codified

20 in the Oklahoma Statutes as Section 17-303 of Title 70, unless there

21 is created a duplication in numbering, reads as follows:

22  The Board of Trustees of the Teachers' Retirement System of

23 Oklahoma (Board) shall take whatever action is reasonable and

24 necessary to have the defined contribution system authorized by this

    Req. No. 12184                                                  Page 3
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1 act to be recognized as a tax-qualified plan as that term is defined

2 by Section 401 et seq. of Title 26 of the United States Code, or any

3 other applicable provisions of federal law. The Board is also

4 authorized to establish a plan or use an existing plan established

5 under Section 457(b) of Title 26 of the United States Code, if it is

6 necessary to carry out the intent of this act. The Board shall take

7 whatever action is reasonable and necessary to obtain confirmation

8 from the Internal Revenue Service that any such 457(b) plan is

9 consistent with the requirements of Section 457(b).

10  SECTION 4.      NEW LAW  A new section of law to be codified

11 in the Oklahoma Statutes as Section 17-304 of Title 70, unless there

12 is created a duplication in numbering, reads as follows:

13  A. Employee contributions to the defined contribution

14 retirement system shall consist of a minimum of four and five-tenths

15 percent (4.5%) of compensation.

16  B. Employee contributions to the defined contribution

17 retirement system that are eligible for an employer match shall not

18 exceed a percentage, based on the employee's compensation, which

19 would exceed the maximum amount allowed pursuant to Section 415 of

20 the Internal Revenue Code of 1986, as amended.

21  SECTION 5.      NEW LAW  A new section of law to be codified

22 in the Oklahoma Statutes as Section 17-305 of Title 70, unless there

23 is created a duplication in numbering, reads as follows:

24

    Req. No. 12184                                                Page 4
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1   A. Except as otherwise provided by subsection B of this

2 section, employers of employees who become participants in the

3 defined contribution retirement system shall match the employee

4 contribution paid on a monthly or more frequent basis at the rate of

5 six percent (6.0%) based on the same compensation amount used to

6 compute the employee contribution amount.

7   B. If an employee selects a contribution rate of seven percent

8 (7.0%) or more, but not higher than allowed pursuant to the maximum

9 annual contribution limit prescribed by Section 415 of the Internal

10 Revenue Code of 1986, as amended, the employer matching amount shall

11 be seven percent (7.0%).

12  C. The initial four and five-tenths percent (4.5%) employee

13 contribution shall be the only mandatory contribution of an employee

14 participating in the defined contribution retirement system created

15 by this act. These funds shall be placed by the System in either a

16 401(a) plan or a 457(b) plan, to be determined by the Board to

17 maintain the plan consistent with the Internal Revenue Code. Any

18 employee contributions eligible to be matched under this section

19 over the four and five-tenths percent (4.5%) initial contribution

20 shall be considered voluntary deferrals of compensation and placed

21 in a 457(b) plan. All employer matching funds shall be placed in a

22 401(a) plan.

23  Any contribution rate that is more than the four and five-tenths

24 percent (4.5%) rate can be chosen by the participating employee upon

    Req. No. 12184                                                 Page 5
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1 the employee's initial participation, and can be changed once per

2 month. The employee contribution rate chosen shall continue until

3 the employee elects to change the contribution rate or terminates

4 service or retires.

5   D. The employer match as set forth in subsection A of this

6 section may be increased at any time by the Legislature without

7 affecting the then-existing rights of participating employees and

8 beneficiaries in order to encourage participating employees to

9 accumulate deferred income reserves for themselves and their

10 dependents. The employer match may be decreased at any time by the

11 Legislature without affecting the then-existing rights of

12 participating employees and beneficiaries in order to provide

13 funding as may be needed to reduce the unfunded liabilities of the

14 defined benefit plan as set forth in Section 901 et seq. of this

15 title, but shall not be less than six percent (6.0%) for any year

16 during which the defined contribution plan is maintained.

17  SECTION 6.      NEW LAW  A new section of law to be codified

18 in the Oklahoma Statutes as Section 17-306 of Title 70, unless there

19 is created a duplication in numbering, reads as follows:

20  A. Except as otherwise provided by this section, employers

21 shall make payment of the required matching amount as provided by

22 Section 5 of this act within five (5) business days of the

23 participating employee's payroll pay date. The System shall ensure

24 the payment is credited to the defined contribution system account

    Req. No. 12184                                                 Page 6
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1 or accounts maintained on behalf of the participating employee as

2 soon as possible.

3   B. All employee contributions to the defined contribution

4 system shall be effected by salary deductions from the salary of the

5 employee and shall be remitted by the participating employer to the

6 System for deposit into the defined contribution system account or

7 accounts maintained on behalf of the employee.

8   C. Participating employers whose salary deductions and employer

9 contributions are not remitted to the System through the Office of

10 Management and Enterprise Services shall either:

11  1. Send all such remittances by electronic funds transfer; or

12  2. Place all such remittances in a bank account from which

13 OPERS can debit the amount due,

14 both within five (5) business days of the payroll pay date of the

15 participating employee. Payroll data shall be remitted by the same

16 deadline.

17  D. The Office of Management and Enterprise Services shall

18 cooperate with the Board to ensure that any necessary programming

19 changes are made to the state's payroll system to carry out the

20 requirements of this act.

21  E. Each employer which has employees participating in the

22 defined contribution system shall pay to the System in the same

23 manner and at the same time required for contributions under this

24

    Req. No. 12184                                                  Page 7
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1 section an amount to reimburse the cost of administration of the

2 defined contribution system, as determined by the Board.

3   1. The Board shall certify each year to the Office of

4 Management and Enterprise Services and to participating employers

5 whose salary deductions and employer contributions are not remitted

6 to the System through the Office of Management and Enterprise

7 Services, the determined amount for the administrative cost of the

8 defined contribution system which will be required to be paid for

9 each participant. The Board shall promulgate such rules as

10 necessary to implement the provisions of this subsection and provide

11 the methodology for the determination.

12  2. Each employer shall pay at least monthly to the System the

13 sum sufficient to satisfy the obligation under this section as

14 certified by the Board.

15  F. The funds held on behalf of each employee participating in

16 the defined contribution system shall consist of the amount in the

17 account or accounts plus credits representing employer and employee

18 contributions, profits, income and other increments attributable to

19 such contributions, and minus debits representing any losses, other

20 decrements, or expenses under the system and any distributions made

21 to the employee under the system.

22  SECTION 7.      NEW LAW  A new section of law to be codified

23 in the Oklahoma Statutes as Section 17-307 of Title 70, unless there

24 is created a duplication in numbering, reads as follows:

    Req. No. 12184                                                 Page 8
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1   A. Participating employees shall at all times be vested at one

2 hundred percent (100%) of their accounts containing solely their

3 employee contributions, and the gains or losses on these

4 contributions. Participating employees will have investment

5 discretion over these accounts within the available options offered

6 by the Board.

7   B. Participating employees shall be vested with respect to the

8 employer matching amounts, and the gains or losses on these funds,

9 deposited into their defined contribution system account or accounts

10 according to the following schedule based on years of participating

11 service:

12  Year 1                      20%

13  Year 2                      40%

14  Year 3                      60%

15  Year 4                      80%

16  Year 5 and thereafter       100%

17  C. Participating employees will have investment discretion over

18 all employer contributions.

19  D. For purposes of determining a participating employee's right

20 to withdraw employer matching contributions and any investment gains

21 upon such employer contribution matching amounts, the vesting

22 percentages apply at the end of each full year of service as

23 described in subsection B of this section.

24

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1   E. For participating employees who do not select any investment

2 options, the Board of Trustees of the Teachers' Retirement System of

3 Oklahoma will establish default investment options for the

4 contributions received from participating employees and default

5 investment options for matching employer contributions.

6   F. To the extent that participants leave employment and have

7 not vested in all of the employer contributions, the nonvested

8 employer contributions, including any gains or losses, shall be

9 immediately forfeited to the 401(a) plan and may be used to offset

10 costs of administering the plan or as permitted by federal law.

11 Upon reemployment with an employer and satisfying the eligibility

12 requirements to become a participant, the reemployed participant

13 shall receive credit for previous service and be vested at the same

14 percentage the participant was vested when service was previously

15 terminated. However, under no circumstances shall the participant

16 be entitled to any previously forfeited employer contributions.

17  SECTION 8.      NEW LAW  A new section of law to be codified

18 in the Oklahoma Statutes as Section 17-308 of Title 70, unless there

19 is created a duplication in numbering, reads as follows:

20  A. Each participating employer shall pick up under the

21 provisions of Section 414(h)(2) of the Internal Revenue Code of

22 1986, as amended, and pay the contribution which the participating

23 employee is required by law to make to the System for all

24 compensation earned after the date as of which an employee begins to

    Req. No. 12184                                                Page 10
                                                             RBH No. 12184

1 participate in the defined contribution system. Although the

2 contributions so picked up are designated as participating employee

3 contributions, such contributions shall be treated as contributions

4 being paid by the employer in lieu of contributions by the

5 participating employee in determining tax treatment under the

6 Internal Revenue Code of 1986, as amended, and such picked-up

7 contributions shall not be includable in the gross income of the

8 participating employee until such amounts are distributed or made

9 available to the participating employee or the beneficiary of the

10 participating employee. The participating employee, by the terms of

11 this System, shall not have any option to choose to receive the

12 contributions so picked up directly and the picked-up contributions

13 must be paid by the employer to the System.

14  B. Contributions by the participating employee into a 457(b)

15 plan may not be picked up by the employer but shall be a voluntary

16 deferral of the employee's compensation.

17  SECTION 9.      NEW LAW  A new section of law to be codified

18 in the Oklahoma Statutes as Section 17-309 of Title 70, unless there

19 is created a duplication in numbering, reads as follows:

20  The Board of Trustees shall contract with one or more business

21 entities in order to create a range of choices regarding investment

22 of funds deposited into defined contribution system accounts. The

23 investment options shall be substantially similar to the options

24 provided to members of the Teachers' Retirement System of Oklahoma

    Req. No. 12184                                               Page 11
                                                             RBH No. 12184

1 that maintain a Deferred Savings Incentive Plan account as offered

2 by the System pursuant to the provisions of the Deferred Savings

3 Incentive Plan. In selecting investment options for participants in

4 the plan, the Board shall give due consideration to offering

5 investment options provided by business entities that provide

6 guaranteed lifetime income in retirement such as annuities,

7 guaranteed investment contracts, or similar products. The Board may

8 amend any of its existing contracts with its current service

9 providers to perform substantially the same type of service the

10 provider is currently performing for the Board, in order to

11 facilitate the timely introduction of the new defined contribution

12 system created by this act. Thereafter, the contracting process for

13 the selection of service providers carrying out duties related to

14 the administration of the plan shall be the same as the selection

15 process for other providers selected by the Board under subsection E

16 of Section 17-106.1 of Title 70 of the Oklahoma Statutes.

17  SECTION 10.     NEW LAW  A new section of law to be codified

18 in the Oklahoma Statutes as Section 17-310 of Title 70, unless there

19 is created a duplication in numbering, reads as follows:

20  A. Notwithstanding any other provision of the statutes

21 governing the System to the contrary, each participating employer

22 shall remit to the System the difference between the amount of money

23 which would be remitted to the System using the employer

24 contribution rate required by Section 17-108.1 of Title 70 of the

    Req. No. 12184                                               Page 12
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1 Oklahoma Statutes and the amount of money required for the

2 participating employer to make the required matching contribution

3 amount on behalf of a participating employee who participates in the

4 defined contribution system authorized pursuant to the provisions of

5 Section 5 of this act.

6   B. The System shall deposit the monies remitted to it by

7 employers having participating employees in the defined contribution

8 system created by this act, as described by subsection A of this

9 section, into the existing defined benefit pension plan authorized

10 pursuant to Section 17-101 et seq. of Title 70 of the Oklahoma

11 Statutes in order to reduce the liabilities of the defined benefit

12 pension plan.

13  SECTION 11.     NEW LAW  A new section of law to be codified

14 in the Oklahoma Statutes as Section 17-311 of Title 70, unless there

15 is created a duplication in numbering, reads as follows:

16  A. Except as otherwise provided by this section or in

17 subsection D of Section 5 of this act, no alteration, amendment, or

18 repeal of this act shall affect the then-existing rights of

19 participating employees and beneficiaries, but shall be effective

20 only as to rights which would otherwise accrue hereunder as a result

21 of services rendered by an employee after such alteration,

22 amendment, or repeal. Any benefits, fund, property, or rights

23 created by or accruing to any person under the provisions of this

24 act shall not be subject to execution, garnishment or attachment, or

    Req. No. 12184                                                 Page 13
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1 any other process or claim whatsoever, and shall be unassignable,

2 except as specifically provided by this section. Notwithstanding

3 the foregoing, the Board may offset any amounts held by a

4 participant in the plan or beneficiary to pay a judgment or

5 settlement against a participating employee or beneficiary for a

6 crime involving the System, for a fraud or breach of the

7 participating employee's fiduciary duty to the System, or for funds

8 or monies incorrectly paid to a participating employee or a

9 beneficiary, provided such offset is in accordance with the

10 requirements of Section 401(a)(13) or similar provisions of the

11 Internal Revenue Code. The offset applies to any assets held in the

12 plan which may otherwise be payable to a participating employee or

13 beneficiary from the plan administered by the Board.

14  B. 1. The provisions of subsection A of this section shall not

15 apply to a qualified domestic order as provided pursuant to this

16 subsection.

17  2. The term "qualified domestic order" means an order issued by

18 a district court of this state pursuant to the domestic relation

19 laws of the State of Oklahoma which relates to the provision of

20 marital property rights to a spouse or former spouse of a

21 participating employee or provision of support for a minor child or

22 children and which creates or recognizes the existence of the right

23 of an alternate payee, or assigns to an alternate payee the right,

24

    Req. No. 12184                                             Page 14
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1 to receive a portion of the funds payable with respect to a

2 participant in the plan.

3   3. For purposes of the payment of marital property, to qualify

4 as an alternate payee a spouse or former spouse must have been

5 married to the related participating employee for a period of not

6 less than thirty (30) continuous months immediately preceding the

7 commencement of the proceedings from which the qualified domestic

8 order issues.

9   4. A qualified domestic order is valid and binding on the Board

10 and the related participating employee only if it meets the

11 requirements of this subsection.

12  5. A qualified domestic order shall clearly specify:

13  a. the name and last-known mailing address (if any) of

14               the participating employee and the name and mailing

15               address of the alternate payee covered by the order,

16  b. the amount or percentage of the participating

17               employee's funds or assets to be paid by the System to

18               the alternate payee,

19  c. the number of payments or period to which such order

20               applies,

21  d. the characterization of the benefit as to marital

22               property rights or child support, and

23  e. each plan to which such order applies.

24

    Req. No. 12184                                                Page 15
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1   6. A qualified domestic order meets the requirements of this

2 subsection only if such order:

3   a. does not require the System to provide any type or

4   form of benefit, or any option not otherwise provided

5   under state law as relates to the System,

6   b. does not require the System to provide increased

7   benefits, and

8   c. does not require the payment of funds or assets to an

9   alternate payee which are required to be paid to

10  another alternate payee pursuant to another order

11  previously determined to be a qualified domestic order

12  or an order recognized by the System as a valid order

13  prior to November 1, 2014.

14  7. This subsection shall not be subject to the provisions of

15 the Employee Retirement Income Security Act of 1974 (ERISA), 29

16 U.S.C.A., Section 1001 et seq., as amended from time to time, or

17 rules and regulations promulgated thereunder, and court cases

18 interpreting the act.

19  8. The Board shall promulgate such rules as are necessary to

20 implement the provisions of this subsection.

21  9. An alternate payee who has acquired beneficiary rights

22 pursuant to a valid qualified domestic order must fully comply with

23 all provisions of the rules promulgated by the Board pursuant to

24 this subsection in order to continue receiving his or her benefit.

    Req. No. 12184                                                Page 16
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1   SECTION 12.     AMENDATORY  Section 1, Chapter 289, O.S.L.

2 2023 (70 O.S. Supp. 2024, Section 18-114.15), is amended to read as

3 follows:

4   Section 18-114.15. A. Beginning Except as otherwise provided

5 in subsection B of this section, beginning with the 2023-2024 school

6 year, certified personnel, as defined in Section 26-103 of Title 70

7 of the Oklahoma Statutes, in the public schools of Oklahoma shall

8 receive in salary and/or fringe benefits not less than the amounts

9 specified in the following schedule:

10                  MINIMUM SALARY SCHEDULE

11                              National

12  Years of        Bachelor's Board      Master's Doctor's

13  Experience      Degree      Certification Degree Degree

14  0               $39,601 $40,759       $40,991 $42,381

15  1               $40,035 $41,193       $41,425 $42,815

16  2               $40,469 $41,628       $41,859 $43,249

17  3               $40,904 $42,062       $42,294 $43,684

18  4               $41,338 $42,496       $42,728 $44,118

19  5               $42,810 $43,968       $44,200 $45,590

20  6               $43,273 $44,432       $44,663 $46,054

21  7               $43,737 $44,895       $45,127 $46,517

22  8               $44,200 $45,358       $45,590 $46,980

23  9               $44,663 $45,822       $46,054 $47,444

24  10              $46,684 $47,844       $48,568 $50,945

    Req. No. 12184                                           Page 17
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1   11              $47,177 $48,336  $49,061  $51,438
                                     $49,554  $51,931
2   12              $47,670 $48,829  $50,047  $52,424
                                     $50,539  $52,916
3   13              $48,162 $49,322  $52,052  $54,430
                                     $52,545  $54,923
4   14              $48,655 $49,815  $53,038  $55,416
                                     $53,531  $55,909
5   15              $50,167 $51,327  $54,024  $56,402
                                     $54,538  $56,917
6   16              $50,660 $51,820  $55,031  $57,410
                                     $55,524  $57,903
7   17              $51,153 $52,313  $56,018  $58,397
                                     $56,511  $58,890
8   18              $51,646 $52,806  $57,971  $60,395

9   19              $52,139 $53,299

10  20              $52,652 $53,813

11  21              $53,145 $54,306

12  22              $53,639 $54,799

13  23              $54,132 $55,292

14  24              $54,625 $55,785

15  25              $56,049 $57,232

16           Master's Degree +

17 Years of         National Board

18 Experience       Certification

19  0               $42,149

20  1               $42,583

21  2               $43,018

22  3               $43,452

23  4               $43,886

24  5               $45,358

    Req. No. 12184                            Page 18
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1   6               $45,822

2   7               $46,285

3   8               $46,749

4   9               $47,212

5   10              $49,728

6   11              $50,221

7   12              $50,713

8   13              $51,206

9   14              $51,699

10  15              $53,212

11  16              $53,705

12  17              $54,198

13  18              $54,691

14  19              $55,184

15  20              $55,698

16  21              $56,192

17  22              $56,685

18  23              $57,178

19  24              $57,671

20  25              $59,153

21  B. Certified personnel, as defined in Section 26-103 of Title

22 70 of the Oklahoma Statutes, that does not make a one-time

23 irrevocable written election to participate in the defined benefit

24 plan, as described in subsection B of Section 1 of this act, shall

    Req. No. 12184                                             Page 19
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1 receive in salary and/or fringe benefits not less than the amounts

2 specified in the following schedule:

3                   MINIMUM SALARY SCHEDULE

4                   Standard Classroom Teacher Salary

5   Years of        Bachelor's Bachelor's Master's Master's

6   Experience      Degree  Degree      Degree         Degree

7                   10 months 12 months 10 months 12 months

8   0               $45,601.00 $54,721.20 $49,991.00 $59,989.20

9   1               $46,100.76 $55,320.91 $50,538.87 $60,646.64

10  2               $46,600.51 $55,920.61 $51,086.73 $61,304.08

11  3               $47,101.42 $56,521.70 $51,635.86 $61,963.04

12  4               $47,601.18 $57,121.41 $52,183.73 $62,620.48

13  5               $49,296.20 $59,155.44 $55,053.84 $66,064.60

14  6               $49,829.35 $59,795.22 $55,649.26 $66,779.11

15  7               $50,363.65 $60,436.38 $56,245.96 $67,495.16

16  8               $50,896.80 $61,076.16 $56,841.38 $68,209.66

17  9               $51,429.95 $61,715.94 $57,436.80 $68,924.16

18  10              $53,757.15 $64,508.59 $60,595.83 $72,714.99

19  11              $54,324.85 $65,189.82 $61,235.74 $73,482.89

20  12              $54,892.54 $65,871.05 $61,875.65 $74,250.79

21  13              $55,459.09 $66,550.91 $62,514.27 $75,017.12

22  14              $56,026.78 $67,232.14 $63,154.18 $75,785.02

23  15              $57,767.87 $69,321.44 $66,627.66 $79,953.20

24  16              $58,335.56 $70,002.68 $67,282.43 $80,738.91

    Req. No. 12184                                             Page 20
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1   17              $58,903.26 $70,683.91 $67,937.19 $81,524.63

2   18              $59,470.95 $71,365.14 $68,591.95 $82,310.34

3   19              $60,038.65 $72,046.38 $69,246.71 $83,096.05

4   20              $60,629.37 $72,755.25 $69,928.04 $83,913.64

5   21              $61,197.07 $73,436.48 $70,582.80 $84,699.36

6   22              $61,765.92 $74,119.10 $71,238.89 $85,486.67

7   23              $62,333.61 $74,800.33 $71,893.65 $86,272.38

8   24              $62,901.31 $75,481.57 $72,548.41 $87,058.09

9   25              $64,541.06 $77,449.27 $74,439.65 $89,327.58

10  26              $66,223.56 $79,468.27 $76,380.19 $91,656.23

11  27              $67,949.92 $81,539.90 $78,371.32 $94,045.58

12  28              $69,721.28 $83,665.53 $80,414.36 $96,497.23

13                  Agriculture Education Teacher Salary

14 Years of         Agriculture  Agriculture

15 Experience       Education    Education

16                  Bachelor's   Master's

17                  Degree       Degree

18  0               $60,121.20   $64,121.20

19  1               $60,780.09   $64,823.92

20  2               $61,438.97   $65,526.65

21  3               $62,099.38   $66,230.99

22  4               $62,758.27   $66,933.72

23  5               $64,993.02   $70,615.07

24  6               $65,695.93   $71,378.79

    Req. No. 12184                                        Page 21
                                             RBH No. 12184

1   7               $66,400.37  $72,144.16

2   8               $67,103.28  $72,907.88

3   9               $67,806.20  $73,671.59

4   10              $70,874.42  $77,005.23

5   11              $71,622.88  $77,818.44

6   12              $72,371.34  $78,631.64

7   13              $73,118.29  $79,443.19

8   14              $73,866.75  $80,256.40

9   15              $76,162.22  $82,750.44

10  16              $76,910.68  $83,563.64

11  17              $77,659.14  $84,376.85

12  18              $78,407.60  $85,190.05

13  19              $79,156.06  $86,003.25

14  20              $79,934.89  $88,153.33

15  21              $80,683.35  $88,978.75

16  22              $81,433.32  $89,805.83

17  23              $82,181.78  $90,631.24

18  24              $82,930.24  $91,456.66

19  25              $85,092.12  $93,840.81

20  26              $87,310.36  $96,287.11

21  27              $89,586.42  $98,797.19

22  28              $91,921.82  $101,372.70

23  B. C. 1. When determining the Minimum Salary Schedule, "fringe

24 benefits" shall mean all or part of retirement benefits, excluding

    Req. No. 12184                           Page 22
                                      RBH No. 12184

1 the contributions made pursuant to subsection A of Section 17-108.1

2 of Title 70 of the Oklahoma Statutes and the flexible benefit

3 allowance pursuant to Section 26-105 of Title 70 of the Oklahoma

4 Statutes from the flexible benefit allowance funds disbursed by the

5 State Board of Education and the State Board of Career and

6 Technology Education pursuant to Section 26-104 of Title 70 of the

7 Oklahoma Statutes.

8   2. If a school district intends to provide retirement benefits

9 to a teacher such that the teacher's salary would be less than the

10 amounts set forth in the minimum salary schedule specified in

11 subsection A of this section, the district shall be required to

12 provide written notification to the teacher prior to his or her

13 employment or, if already employed by the district, no later than

14 thirty (30) days prior to the date the district elects to provide

15 retirement benefits such that the teacher's salary would be less

16 than the minimum salary schedule.

17  C. D. Any of the degrees referred to in this section shall be

18 from a college recognized by the State Board of Education. The

19 Board shall accept teaching experience from out-of-state school

20 districts that are accredited by the State Board of Education or

21 appropriate state accrediting agency for the districts. The Board

22 shall accept teaching experience from out-of-country schools that

23 are accredited or otherwise endorsed by the appropriate national or

24 regional accrediting or endorsement authority. Out-of-country

    Req. No. 12184                                                Page 23
                                                     RBH No. 12184

1 certification documentation in a language other than English shall

2 be analyzed by an educational credential evaluation service in

3 accordance with industry standards and guidelines and approved by

4 the State Department of Education. The person seeking to have

5 credit granted for out-of-country teaching experience shall be

6 responsible for all costs of the analysis by a credential evaluation

7 service. The Board shall accept teaching experience from primary

8 and secondary schools that are operated by the United States

9 Department of Defense or are affiliated with the United States

10 Department of State.

11  D. E. For the purpose of state salary increments and

12 retirement, no teacher shall be granted credit for more than five

13 (5) years of active duty in the military service or out-of-state or

14 out-of-country teaching experience as a certified teacher or its

15 equivalent. Nothing in this section shall prohibit boards of

16 education from crediting more years of experience on district salary

17 schedules than those allowed for state purposes.

18  E. F. The State Board of Education shall recognize, for

19 purposes of certification and salary increments, all the years of

20 experience of a:

21  1. Certified teacher who teaches in the educational program of

22 the Department of Corrections, beginning with fiscal year 1981;

23  2. Vocational rehabilitation counselor under the Department of

24 Human Services if the counselor was employed as a certified teacher

    Req. No. 12184                                                Page 24
                                                RBH No. 12184

1 by the State Department of Education when the Division of Vocational

2 Rehabilitation was transferred from the State Board of Career and

3 Technology Education or the State Board of Education to the Oklahoma

4 Public Welfare Commission on July 1, 1968;

5   3. Vocational rehabilitation counselor which were completed

6 while employed by the Department of Human Services if such counselor

7 was certified as a teacher or was eligible for certification as a

8 teacher in Oklahoma;

9   4. Certified teacher which were completed while employed by the

10 Child Study Center located at University Hospital, if the teacher

11 was certified as a teacher in Oklahoma; and

12  5. Certified school psychologist or psychometrist which were

13 completed while employed as a doctoral intern, psychological

14 assistant, or psychologist with any agency of the State of Oklahoma

15 if the experience primarily involved work with persons of school- or

16 preschool-age and if the person was, at the time the experience was

17 acquired, certified as, or eligible for certification as, a school

18 psychologist or psychometrist.

19  F. G. The provisions of this section shall not apply to

20 teachers who have entered into postretirement employment with a

21 public school in Oklahoma and are still receiving a monthly

22 retirement benefit.

23  G. H. If a person employed as certified personnel, as defined

24 in Section 26-103 of Title 70 of the Oklahoma Statutes, by a school

    Req. No. 12184                                               Page 25
                                                    RBH No. 12184

1 district during the 2022-2023 school year was receiving a salary

2 above the step level indicated by the State Minimum Salary Schedule

3 for the 2022-2023 school year, the person shall receive a salary

4 increase amount equal to the amount indicated in subsection A for

5 the step level indicated for the person, provided they remain

6 employed by the same district, unless the hours or the duties of the

7 certified personnel are reduced proportionately.

8   H. I. If a school district does not receive Foundation or

9 Salary Incentive Aid pursuant to Section 18-200.1 of Title 70 of the

10 Oklahoma Statutes, funds shall be allocated by the State Board of

11 Education to implement the salary increases indicated in subsection

12 A of this section.

13  I. J. Persons employed as classroom instructional employees of

14 technology center school districts supervised by the State Board of

15 Career and Technology Education shall receive a salary increase

16 amount equal to the amount indicated in subsection A of this section

17 for the step level indicated for the person, provided they remain

18 employed by the same technology center school district, unless the

19 hours or the duties of the classroom instructional employees are

20 reduced proportionately.

21  J. K. Persons employed as correctional teachers or vocational

22 instructors by the Department of Corrections pursuant to Section

23 510.6a of Title 57 of the Oklahoma Statutes or persons employed as

24 teachers by the Office of Juvenile Affairs shall receive a salary

    Req. No. 12184                                               Page 26
                                                        RBH No. 12184

1 increase amount equal to the amount indicated in subsection A of

2 this section for the step level indicated for the person, provided

3 they remain employed by the same Department of Corrections or Office

4 of Juvenile Affairs facility, unless the hours or the duties of the

5 correctional teachers, vocational instructors, or teachers are

6 reduced proportionately.

7   K. L. Persons employed as teachers by the State Department of

8 Rehabilitation Services shall receive a salary increase amount equal

9 to the amount indicated in subsection A of this section for the step

10 level indicated for the person, provided they remain employed by the

11 State Department of Rehabilitation Services, unless the hours or the

12 duties of the teachers are reduced proportionately.

13  SECTION 13. This act shall become effective August 31, 2025.

14

15  60-1-12184      CMA     01/13/25

16

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20

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    Req. No. 12184                                                Page 27
THOMAS E. CUMMINS CONSULTING ACTUARY, INC.

2512 E. 71st Street , Suite D  Tulsa, Oklahoma 74136
(918) 492-9658  (918) 492- 9659

January 14, 2025

Representative Hays
Room 302S

Re: RBH No. 12184
RBH No. 12184 creates an optional defined contribution retirement
system for teachers hired after the effective date of this act.

RBH No. 12184 is a non fiscal bill as defined by OPLAAA because it
does not increase the Accrued Actuarial Liability.
I am a member of the American Academy of Actuaries and meet the
Qualification Standards of the American Academy of Actuaries to
render the actuarial opinion herein.

Thomas E. Cummins

Thomas E. Cummins, MAAA
Every fact on this page links to its source, starting with the official bill record.