Okla. Admin. Code § 715:10-15-7.2
Current through Vol. 42, No. 4, November 1, 2024
Section 715:10-15-7.2 - Retirement formula for members retiring under provisions of the Education Employees Service Incentive Plan ("EESIP")(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. Okla. Admin. Code § 715:10-15-7.2
Added at 24 Ok Reg 220, eff 10-31-06 (emergency); Amended at 24 Ok Reg 1692, eff 6-11-07Amended by Oklahome Register, Volume 33, Issue 23, August 15, 2016, eff. 8/25/2016Amended by Oklahoma Register, Volume 36, Issue 22, August 1, 2019, eff. 8/11/2019