Oklahoma Administrative Code › Title 715 - Teachers' Retirement System › Chapter 10 - General Operations › Subchapter 5 - Establishing Other Service Credits › Section 715:10-5-4.1 - Payment of Contribution Deficit for Education Employees Service Incentive Plan

Current through Vol. 41, No. 20, July 1, 2024
(a) A member whose
				Regular Annual Compensation, as defined in 70 O. S. § 17-101, was greater than
				$40,000 during the school years 1987-88 through 1994-95, must make an
				additional contribution based on his or her Regular Annual Compensation in
				excess of $40,000 to qualify for the provisions of OAC
				715:10-15-7.2.
				A member who chooses not to make the additional contribution payment will not
				qualify for the EESIP formula.
(b)
				The payment required for any school year between 1987-88 and 1994-95 is the
				contribution rate in effect for each year applied to the difference between the
				member's total Regular Annual Compensation and the amount contributed by or on
				behalf of the member during the school year. This may include compensation in
				excess of $25,000, when the member elected not to contribute on earnings
				between $25,000 and $40,000 for these school years or when the school failed to
				contribute on the member's total compensation up to $40,000 for any school year
				during this period. In addition to the contribution balance, compound interest
				of ten percent (10%) per annum will be included in the balance due for each
				year. The interest rate will be applied from June 30 of the school year to the
				date payment is made to the Teachers' Retirement System.
(c) To qualify for the movement of the first
				two (2) years of service credits performed before July 1, 1995, the member must
				make any payment due for the 1993-94 and 1994-95 school years. To qualify for
				the next two (2) years of service performed prior to July 1, 1995, the member
				must make any payment due for the 1991-92 and 1992-93 school years. Payment for
				additional years of service performed prior to July 1, 1995, will be required
				in descending order back to the 1987-88 school year.
(d) Payment must be made in accordance with
				existing Internal Revenue Service regulations in effect at the time of payment.
				TRS will accept after-tax contributions and pre-tax direct or indirect
				rollovers and transfers from 401(a), 401(k), 403(b), 457 and IRA plans, when
				allowed by IRS regulations, and installment payment arrangements as provided
				under OAC
				715:10-5-35.
				Payments may be a combination of any of the available payment methods. (Also
				see OAC
				715:10-5-32.
				Roll-overs from other qualified plans or conduit IRAs.)
(e) Any payment balance(s) required for a
				member to qualify for the EESIP formula must be completed at least ninety (90)
				days before the member's retirement date.
(f) TRS staff will calculate each member's
				contribution deficit for any year(s) based on payroll records as reported by
				the employing school. When existing payroll records are not sufficient to
				accurately determine the member's contribution deficit, TRS has the right to
				request additional information from the member and/or the employing school. If
				additional records are required, it is the member's responsibility to obtain or
				cause records to be forwarded to TRS from the employing school.
(g) If a member retires on or after July 1,
				2006, and before June 30, 2007, the member will be required to pay 50% of the
				total contribution deficit balance.
(h) If a member retires on or after July 1,
				2007, and before June 30, 2008, the member will be required to pay 75% of the
				total contribution deficit balance.
(i) If the member retires on or after July 1,
				2008, the member will be required to pay 100% of the total contribution deficit
				balance.
(j) TRS will accept EESIP
				contribution deficit payment(s) from the member at any time prior to the
				member's retirement. However, if at retirement it is determined that an
				additional balance is due, the member will be required to make the additional
				payment, including interest, before his or her first retirement benefit payment
				is due. If it is determined the member has paid more than the required balance,
				any difference will be refunded to the member, but no interest will be paid by
				TRS on the deposits, regardless of the length of time such deposits have been
				held by the Teachers' Retirement System.
Added at 24 Ok Reg 220,
				  eff 10-31-06 (emergency); Amended at 24 Ok Reg 1692, eff
				  6-11-07