Oklahoma Administrative Code › Title 715 - Teachers' Retirement System › Chapter 10 - General Operations › Subchapter 15 - Service Retirement › Section 715:10-15-7.2 - Retirement formula for members retiring under provisions of the Education Employees Service Incentive Plan ("EESIP")

Current through Vol. 41, No. 20, July 1, 2024
(a) Effective July 1, 2006 the legislature
				modified the standard retirement formula for TRS members employed by
				participating remitting entities under 70 O.S. § 17-108.1(A), which excludes
				comprehensive and regional four-year universities.
(b) A member who was employed prior to July
				1, 1995, may have service credits performed prior to July 1, 1995, calculated
				in the member's retirement formula used for service performed after July 1,
				1995, when the member's average salary at retirement is greater than $40,000,
				and the member works for a participating remitting entity under Section
				17-108.1(A) beyond the year in which he or she reaches normal retirement age.
				(The terms "average salary" and "normal retirement age" are defined in 70 O. S.
				§ 17-101.)
(c) A member who works
				one year beyond the school year in which he or she reaches normal retirement
				age, and who is employed by a participating remitting entity under Section
				17-108.1 (A), may move two (2) years of service performed prior to July 1,
				1995, to the retirement formula used to calculate service performed after July
				1, 1995. For each additional year the member works beyond normal retirement
				age, employed by a participating remitting entity under Section 17- 108.1 (A),
				he or she may move two (2) additional years of service credit performed prior
				to July 1, 1995. Only years worked beyond normal retirement and while working
				for a participating remitting entity under Section 17-108.1 (A) shall be used
				to uncap years of service.
(d) For
				members who retire on or after July 1, 2006, and before June 30, 2007, the
				maximum average salary that can be used to calculate the benefit for service
				credits that qualify to be moved under this section is $60,000. During this
				one-year period, a member whose average salary at retirement is greater than
				$60,000 shall have benefits calculated in three steps: 2% x $40,000 for service
				performed prior to July 1, 1995, that does not qualify as moved service; 2% x
				$60,000 for service performed prior to July 1, 1995, that qualifies as moved
				service; and 2% x the member's average salary for service performed on or after
				July 1, 1995. (Note: The retirement date for each retiring member is always the
				first day of the month. [See OAC
				715:10-15-4.])
(e) For members who retire on or after July
				1, 2007, and before June 30, 2008, the maximum average salary that can be used
				to calculate the benefit for service credits that qualify to be moved under
				this section is $80,000. During this one-year period, a member whose average
				salary at retirement is greater than $80,000 shall have benefits calculated in
				three steps: 2% x $40,000 for service performed prior to July 1, 1995, that
				does not qualify as moved service; 2% x $80,000 for service performed prior to
				July 1, 1995, that qualifies as moved service; and 2% x the member's average
				salary for service performed on or after July 1, 1995. (Note: The retirement
				date for each retiring member is always the first day of the month. [See OAC
				715:10-15-4.])
(f) For members who retire on or after July
				1, 2008, the average salary used to calculate the benefit for service credits
				that qualify to be moved under this section is the member's average salary at
				retirement. The member's retirement benefit will be calculated as follows: 2% x
				$40,000 for service performed prior to July 1, 1995, that does not qualify as
				moved service; and 2% x the member's average salary for service performed prior
				to July 1, 1995, that qualifies as moved service and for service performed on
				or after July 1, 1995. (Note: The retirement date for each retiring member is
				always the first day of the month. [See OAC
				715:10-15-4.])
(g) A member whose Regular Annual
				Compensation was greater than $40,000 during the school years 1987-88 through
				1994-95 must make an additional contribution to qualify for movement of service
				provided for in this section. [See OAC
				715:10-5-4.1. Payment of
				contribution deficit for Education Employees Service Incentive Plan]
(h) A member reaches Normal Retirement Age
				during the school year he or she reaches age 62, or when the member's age and
				total service equal 80 or more for those members those official TRS membership
				date is prior to July 1, 1992, and when the member's age and total service
				equal 90 or more for those members whose official TRS membership date is on or
				after July 1, 1992.
(i) For this
				section, credit a member may receive for having 120 or more days of unused sick
				leave at retirement will be used in determining the school year in which a
				member reaches Normal Retirement Age.
(j) For this section, a member who reaches
				Normal Retirement Age by the tenth of July of any school year will be
				considered to have reached Normal Retirement Age at the beginning of that
				school year. A member who reaches Normal Retirement Age after the tenth of July
				of any school year will be considered to have reached Normal Retirement Age at
				the beginning of the next school year in which the member is employed.
(k) To qualify for a year of
				service beyond Normal Retirement Age, OAC
				715:10-3-2 and OAC
				715:10-3-3 will be used to
				determine credited service. However, a fractional year of service performed
				after reaching Normal Retirement Age cannot be combined with a fractional year
				of service performed prior to reaching Normal Retirement Age to qualify for a
				year of service credit under this section. Fractional years of service worked
				after reaching Normal Retirement Age can be combined to create a full year of
				credited service. If a member participates in EESIP and wears away at least two
				(2) years of capped service but has employment at a non-participating entity
				(comprehensive and regional four-year universities) after reaching Normal
				Retirement Age, service credit will be awarded for the employment for the
				non-participating entity, but the salary the member earned at the
				non-participating entity will not be applied to those years of service which
				qualify for the Education Employees Services Incentive Plan (EESIP).
(l) The provisions of subsections e and f of
				this section become effective only if additional employer contributions are
				funded as required by 70 O.S. § 17-116.2C.
Added at 24 Ok Reg 220,
				  eff 10-31-06 (emergency); Amended at 24 Ok Reg 1692, eff
				  6-11-07