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RBS No. 1050
1 STATE OF OKLAHOMA
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2 1st Session of the 60th Legislature (2025)
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3 SENATE BILL 88 By: Boren
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6 AS INTRODUCED
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7 An Act relating to the Teachers' Retirement System of
7 Oklahoma; amending 70 O.S. 2021, Section 17-106.1,
8 which relates to the Board of Trustees of the
8 Teachers' Retirement System of Oklahoma; allowing
9 Board of Trustees to approve cost-of-living
9 adjustment for certain retirees under certain
10 circumstances; updating statutory language; and
10 making language gender neutral.
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13 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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14 SECTION 1. AMENDATORY 70 O.S. 2021, Section 17-106.1, is
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15 amended to read as follows:
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16 Section 17-106.1. A. The Board of Trustees of the Teachers'
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17 Retirement System of Oklahoma shall discharge their duties with
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18 respect to the System solely in the interest of the participants and
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19 beneficiaries and:
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20 1. For the exclusive purpose of:
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21 a. providing benefits to participants and their
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22 beneficiaries, and
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23 b. defraying reasonable expenses of administering the
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24 System;
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Req. No. 1050 Page 1
RBS No. 1050
1 2. With the care, skill, prudence, and diligence under the
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2 circumstances then prevailing that a prudent person acting in a like
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3 capacity and familiar with such matters would use in the conduct of
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4 an enterprise of a like character and with like aims;
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5 3. By diversifying the investments of the System so as to
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6 minimize the risk of large losses, unless under the circumstances it
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7 is clearly prudent not to do so; and
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8 4. In accordance with the laws, documents and instruments
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9 governing the System.
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10 B. The Board of Trustees of the Teachers' Retirement System of
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11 Oklahoma may invest the assets of the System in real property owned
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12 or to be acquired by the State of Oklahoma state. It is further
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13 authorized to acquire, exchange, and grant any real property under
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14 its jurisdiction as is necessary to carry out the investment in the
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15 real property. The Board of Trustees of the Teachers' Retirement
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16 System of Oklahoma is authorized to invest not more than ten percent
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17 (10%) of the total value of assets of the System in connection with
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18 such investments. Limitations on investment of the assets of the
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19 System provided herein shall be determined as of the date of its
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20 making or acquisition.
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21 C. The Board of Trustees may procure insurance indemnifying the
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22 members of the Board of Trustees from personal loss or
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23 accountability from liability resulting from a member's action or
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24 inaction as a member of the Board.
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RBS No. 1050
1 D. The Board of Trustees may establish an investment committee.
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2 The investment committee shall be composed of not more than five (5)
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3 members of the Board of Trustees appointed by the chairman chair of
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4 the Board of Trustees. The committee shall make recommendations to
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5 the full Board of Trustees on all matters related to the choice of
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6 custodians and managers of the assets of the System, on the
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7 establishment of investment and fund management guidelines, and in
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8 planning future investment policy. The committee shall have no
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9 authority to act on behalf of the Board of Trustees in any
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10 circumstances whatsoever. No recommendation of the committee shall
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11 have effect as an action of the Board of Trustees nor take effect
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12 without the approval of the Board of Trustees as provided by law.
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13 E. The Board of Trustees may retain qualified investment
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14 managers to provide for the investment of the monies of the System.
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15 The investment managers shall be chosen by a solicitation of
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16 proposals on a competitive bid basis pursuant to standards set by
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17 the Board of Trustees. Subject to the overall investment guidelines
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18 set by the Board of Trustees, the investment managers shall have
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19 full discretion in the management of those monies of the System
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20 allocated to the investment managers. The Board of Trustees shall
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21 manage those monies not specifically allocated to the investment
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22 managers. The monies of the System allocated to the investment
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23 managers shall be actively managed by the investment managers, which
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24 may include selling investments and realizing losses if such action
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Req. No. 1050 Page 3
RBS No. 1050
1 is considered advantageous to longer term return maximization.
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2 Because of the total return objective, no distinction shall be made
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3 for management and performance evaluation purposes between realized
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4 and unrealized capital gains and losses.
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5 F. Funds and revenues for investment by the investment managers
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6 or the Board of Trustees shall be placed with a custodian selected
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7 by the Board of Trustees. The custodian shall be a bank or trust
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8 company offering pension fund master trustee and master custodial
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9 services. The custodian shall be chosen by a solicitation of
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10 proposals on a competitive bid basis pursuant to standards set by
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11 the Board of Trustees. In compliance with the investment policy
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12 guidelines of the Board of Trustees, the custodian bank or trust
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13 company shall be contractually responsible for ensuring that all
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14 monies of the System are invested in income-producing investment
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15 vehicles at all times. If a custodian bank or trust company has not
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16 received direction from the investment managers of the System as to
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17 the investment of the monies of the System in specific investment
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18 vehicles, the custodian bank or trust company shall be contractually
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19 responsible to the Board of Trustees for investing the monies in
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20 appropriately collateralized short-term interest-bearing investment
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21 vehicles.
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22 G. By November 1, 1988, and prior to August 1 of each year
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23 thereafter, the Board of Trustees shall develop a written investment
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24 plan for the System.
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Req. No. 1050 Page 4
RBS No. 1050
1 H. The Board of Trustees shall compile a quarterly financial
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2 report of all the funds of the System on a fiscal year basis. The
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3 report shall be compiled pursuant to uniform reporting standards
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4 prescribed by the Oklahoma State Pension Commission for all state
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5 retirement systems. The report shall include several relevant
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6 measures of investment value, including acquisition cost and current
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7 fair market value with appropriate summaries of total holdings and
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8 returns. The report shall contain combined and individual rate of
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9 returns of the investment managers by category of investment, over
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10 periods of time. The Board of Trustees shall include in the
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11 quarterly reports all commissions, fees or payments for investment
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12 services performed on behalf of the Board. The report shall be
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13 distributed to the Governor, the Oklahoma State Pension Commission,
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14 the Legislative Service Bureau, the Speaker of the House of
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15 Representatives and the President Pro Tempore of the Senate. In
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16 lieu of compiling and distributing the quarterly report, the Board
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17 may provide the Oklahoma State Pension Commission with direct access
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18 to the same data from the custodian bank for the System.
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19 I. After July 1 and before December 1 of each year, the Board
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20 of Trustees shall publish widely an annual report presented in
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21 simple and easily understood language pursuant to uniform reporting
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22 standards prescribed by the Oklahoma State Pension Commission for
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23 all state retirement systems. The report shall be submitted to the
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24 Governor, the Speaker of the House of Representatives, the President
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RBS No. 1050
1 Pro Tempore of the Senate, the Oklahoma State Pension Commission and
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2 the members of the System. The annual report shall cover the
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3 operation of the System during the past fiscal year, including
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4 income, disbursements, and the financial condition of the System at
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5 the end of the fiscal year. The annual report shall also contain
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6 the information issued in the quarterly reports required pursuant to
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7 subsection H of this section as well as a summary of the results of
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8 the most recent actuarial valuation to include total assets, total
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9 liabilities, unfunded liability or over funded status, contributions
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10 and any other information deemed relevant by the Board of Trustees.
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11 The annual report shall be written in such a manner as to permit a
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12 readily understandable means for analyzing the financial condition
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13 and performance of the System for the fiscal year.
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14 J. 1. The Board of Trustees may approve a two percent (2%)
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15 cost-of-living adjustment, pursuant to the schedule prescribed by
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16 this subsection for persons who have received benefits from the
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17 System for one or more years. The Board of Trustees may only
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18 approve a cost-of-living adjustment when the System's funded ratio,
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19 according to the latest annual actuarial valuation, exceeds a
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20 percentage as prescribed in paragraph 2 of this subsection;
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21 provided, a cost-of-living adjustment shall not be granted if the
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22 adjustment would cause the funding ratio of the System to drop below
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23 the percentage which authorized the adjustment.
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RBS No. 1050
1 2. Except as provided in paragraph 1 of this subsection, a
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2 cost-of-living adjustment may be approved by the Board of Trustees
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3 if the funded ratio of the System exceeds eighty percent (80%).
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4 Subsequent cost-of-living adjustments may be approved each time
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5 thereafter that the System's funded ratio increases by two and one-
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6 half percent (2 1/2%) from the percentage which authorized the
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7 previous cost-of-living adjustment.
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Req. No. 1050 Page 7Every fact on this page links to its source, starting with the official bill record.