{"data":{"id":"us-ok/okla.-stat.-tit.-70-70-17-108","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 70, § 70-17-108","heading":"Contributions and funds","body":"A. Each local school district, or state college or university,\n\nor State Board of Education, or State Board of Career and Technology\n\nEducation, or other state agencies whose employees are members of\n\nthe Teachers’ Retirement System of Oklahoma (“participating\n\nemployers”), shall match, on a pro rata basis, in accordance with\n\nsubsection B of this section the contributions of members whose\n\nsalaries are paid by federal funds or externally sponsored\n\nagreements such as grants, contracts and cooperative agreements.\n\nThese funds shall be remitted at the same time as the regular\n\ncontributions of members are remitted to the Teachers’ Retirement\n\nSystem of Oklahoma and deposited in the Retirement Benefit Fund.\n\nB. On an annual basis, the Board of Trustees shall set two\n\ncontribution rates to be paid by contributing employers as provided\n\nin subsection A of this section. Both contribution rates shall be\n\ndetermined using cost principles established by federal regulations\n\nand shall be consistent with policies, regulations and procedures\n\nthat apply uniformly to both federally assisted and other\n\nactivities, and be accorded consistent treatment through application\n\nof generally accepted accounting principles. The Board shall\n\napprove the contribution rates for each fiscal year ending June 30,\n\nno later than April 1 of the previous fiscal year. The first rate\n\nshall be applied to service performed during the regular school year\n\nof the participating employer. The second rate shall be applied to\n\nservice performed by members during a summer school program of the\n\nparticipating employer. For the purposes of this subsection,\n\n“summer school program” is defined as a program offering academic\n\nenrichment for students from prekindergarten through twelfth grade\n\nduring the summer term after the close of the school year. Members\n\nshall only be considered as providing service to a summer school\n\nprogram if such service is provided pursuant to a separate summer\n\nschool contract between the member and the participating employer.\n\nThe term summer school program does not include services performed\n\nat a participating employer offering an extended school year\n\npursuant to Section 1-109.1 of this title, or services performed by\n\nstaff pursuant to a twelve-month contract with the employer. The\n\nmethod applied to setting the second contribution rate may take into\n\nconsideration whether, or to what extent, such service is likely to\n\nadd to members’ service credit or final average salary; provided,\n\nhowever, the second rate shall not exceed one-half (1/2) of the\n\nfirst rate established in this subsection. The actuary retained by\n\nthe Board may recommend such rates using assumptions that apply to\n\nthe group of those members whose service is subject to the second\n\ncontribution rate.\n\nC. All the assets of the retirement system shall be credited\n\naccording to the purpose for which they are held to one of seven\n\nfunds, namely: The Teachers’ Savings Fund, the Retirement Benefit\n\nFund, the Interest Fund, the Permanent Retirement Fund, the Expense\n\nFund, the Suspense Fund, and the Retiree Medical Benefit Fund.\n\n1. The Teachers’ Savings Fund shall be a fund in which shall be\n\naccumulated the regular contributions from the compensation of\n\nmembers, including applicable interest earnings prior to July 1,\n\n1968. Contributions to and payments from the Teachers’ Savings Fund\n\nshall be made as specifically provided in each plan available within\n\nthe retirement system.\n\n2. The deductions provided for in the plans within the\n\nretirement system shall be made notwithstanding that the minimum\n\ncompensation provided for any member shall be reduced thereby.\n\nEvery member shall be deemed to consent and agree to the deductions\n\nmade and provided for herein and payment of salary or compensation,\n\nless the deduction, shall be a full and complete discharge and\n\nacquittance of all claims and demands whatsoever for the services\ne\n\nretirement system shall be made notwithstanding that the minimum\n\ncompensation provided for any member shall be reduced thereby.\n\nEvery member shall be deemed to consent and agree to the deductions\n\nmade and provided for herein and payment of salary or compensation,\n\nless the deduction, shall be a full and complete discharge and\n\nacquittance of all claims and demands whatsoever for the services\n\nrendered by such person during the period covered by such payment,\n\nexcept as to the benefits provided under Section 17-101 et seq. of\n\nthis title. The employer shall certify to the Board of Trustees on\n\neach and every payroll, or in such other manner as the Board may\n\nprescribe, the amounts to be deducted, and each of the amounts shall\n\nbe deducted, and when deducted shall be paid into the Teachers’\n\nSavings Fund, and shall be credited to the individual account of the\n\nmember from whose compensation the deduction was made.\n\n3. Following the termination of membership in the retirement\n\nsystem for any member who has been absent from service for five (5)\n\nyears in any period of six (6) consecutive years, the Teachers’\n\nSavings Fund Account of such member shall be closed and the amount\n\ndue the member as provided in Section 17-105 of this title shall be\n\npaid upon the filing of formal application. At the time such\n\nmembership is terminated the amount due the member as provided in\n\nSection 17-105 of this title shall be transferred to the Suspense\n\nFund.\n\n4. Upon the retirement of a member, the balance of money the\n\nmember had in the Teachers’ Savings Fund shall be transferred to the\n\nRetirement Benefit Fund.\n\n5. Retirement Benefit Fund.\n\na. After August 2, 1969, there shall be transferred from\n\nthe Teachers’ Savings Fund for those members drawing\n\nretirement benefits from the Teachers’ Retirement\n\nSystem of Oklahoma an amount necessary to provide the\n\nmonthly annuity payments and payments as required in\n\nSection 17-107 of this title. In addition, the fund\n\nshall consist of monies received from any state\n\ndedicated revenue, monies received from state\n\nappropriations, monies received from federal matching\n\nfunds, and the residue of the interest on investments\n\nafter the requirements of Section 17-107 of this title\n\nhave been fully met. The Retirement Benefit Fund\n\nshall consist of an amount of money necessary for the\n\nmaking of retirement payments to retirees.\n\nb. From the Retirement Benefit Fund shall be paid all\n\nmonthly retirement allowances.\n\n6. The Interest Fund is hereby created to facilitate the\n\ncrediting of interest to the various other funds to which interest\n\nis to be credited. All income, interest and dividends derived from\n\nthe deposits and investments authorized by Section 17-101 et seq. of\n\nthis title shall be paid into the Interest Fund. On June 30, each\n\nyear, interest shall be transferred to the other funds as herein\n\nprovided.\n\n7. The Permanent Retirement Fund shall consist of the\n\naccumulated gifts, awards, and bequests made to the retirement\n\nsystem, and transfers from the Suspense Fund, the principal of which\n\nis hereby held and dedicated as a perpetual endowment of the\n\nretirement system and shall not be diverted or appropriated to any\n\nother cause or purpose unless specifically provided for in such\n\ngifts, awards or bequests.\n\n8. The Expense Fund shall be the fund from which the expense of\n\nadministration and maintenance of the retirement system shall be\n\npaid. The Board of Trustees shall cause to be prepared and adopt\n\nannually an itemized budget showing the amount required to defray\n\nthe expenses for the ensuing fiscal year.\n\nTransfers to and payments from this fund shall be made as\n\nfollows: first, from the Interest Fund; second, from any dedicated\n\nrevenue; and, third, from appropriation by the Legislature.\n\nAll monies for the operation of the Teachers’ Retirement System\nshall cause to be prepared and adopt\n\nannually an itemized budget showing the amount required to defray\n\nthe expenses for the ensuing fiscal year.\n\nTransfers to and payments from this fund shall be made as\n\nfollows: first, from the Interest Fund; second, from any dedicated\n\nrevenue; and, third, from appropriation by the Legislature.\n\nAll monies for the operation of the Teachers’ Retirement System\n\nof Oklahoma shall be paid from the Expense Fund upon the approval by\n\nthe Board of Trustees and the checks signed by two people designated\n\nto sign such checks by the Board of Trustees of the Teachers’\n\nRetirement System of Oklahoma.\n\n9. The Suspense Fund shall be comprised of amounts transferred\n\nto the fund as provided in this section and Section 17-105 of this\n\ntitle and obligations of the retirement system to any member or\n\nperson which cannot be legally discharged.\n\n10. Collection of Contributions. The collection of members’\n\ncontributions shall be as follows:\n\na. Each employer shall cause to be deducted on each and\n\nevery payroll or claim of a member for each and every\n\npayroll claim period subsequent to the date of\n\nestablishment of the retirement system the\n\ncontribution payable by such member as provided in\n\nSection 17-101 et seq. of this title. With each and\n\nevery payroll or claim the employer shall deliver to\n\nthe treasurer of the employer warrants issued to the\n\nemployees as shown to be due by the payroll or claim,\n\ntogether with a warrant or warrants in favor of the\n\nTeachers’ Retirement System of Oklahoma as shown by\n\nthe payroll or claim.\n\nb. The treasurer or disbursing officer upon delivery of\n\nthe warrants and a true copy of the payroll or claims\n\nas provided above shall register the warrants as\n\nprovided for the registration of other school\n\nwarrants, and shall deliver to the employer warrants\n\nissued in favor of the employees, and shall deliver\n\nwarrants issued in favor of the Teachers’ Retirement\n\nSystem of Oklahoma and the copy of the payroll or\n\nclaims to the school district superintendent as\n\ndesignated by the Board of Trustees. For the purpose\n\nof collecting contributions of teachers in the public\n\nschools, the superintendent of a school district is\n\nhereby designated to receive the Teachers’ Retirement\n\nwarrants from the treasurer or proper disbursing\n\nofficer of the several school districts for the\n\npurpose of transmitting such warrants and payroll or\n\nclaims to the Executive Director of the Teachers’\n\nRetirement System of Oklahoma. Any college or\n\nuniversity or other educational institution or agency\n\noperated in whole or in part by the state shall have\n\nthe amount retained or deducted from the funds\n\nregularly appropriated by the state for the current\n\nmaintenance for such educational departments and\n\ninstitutions.\n\nc. For the purpose of enabling the collection of the\n\ncontributions of the members of the retirement system\n\nto be made as simple as possible, the Board of\n\nTrustees shall require the secretary or other officer\n\nof each employer board or agency, within thirty (30)\n\ndays after the beginning of each school year, to make\n\na list of all teachers in its employ who are members\n\nof the retirement system, certify to the correctness\n\nof this list, and file the same with the Executive\n\nDirector of the Board of Trustees of the Teachers’\n\nRetirement System of Oklahoma. If additions to or\n\ndeductions from this list should be made during the\n\nyear such additions or deductions shall likewise be\n\ncertified to the Board of Trustees of the Teachers’\n\nRetirement System of Oklahoma.\n\nd. The State Treasurer shall furnish annually to the\n\nBoard of Trustees a sworn statement of the amount of\n\nthe funds in his or her custody belonging to the\n\nretirement system. The records of the Board of\n\nTrustees shall be open to public inspection and any\n\nmember of the retirement system shall be furnished\n\nwith a statement of the amount of the credit to the\ners’\n\nRetirement System of Oklahoma.\n\nd. The State Treasurer shall furnish annually to the\n\nBoard of Trustees a sworn statement of the amount of\n\nthe funds in his or her custody belonging to the\n\nretirement system. The records of the Board of\n\nTrustees shall be open to public inspection and any\n\nmember of the retirement system shall be furnished\n\nwith a statement of the amount of the credit to the\n\nmember’s individual account upon written request by\n\nsuch member, provided the Board of Trustees shall not\n\nbe required to answer more than one such request of a\n\nmember in any one (1) year.\n\ne. Failure of any superintendent, officer, or other\n\nperson to discharge the duties imposed upon him or her\n\nby this act shall render him or her or his or her\n\nbondsman liable for any loss occasioned thereby to the\n\nTeachers’ Retirement System of Oklahoma or the\n\nemployees of the school district, or both.\n\nf. On a showing by the Teachers’ Retirement System of\n\nOklahoma that a warrant, voucher or check issued to it\n\nhas, for any reason, been lost or never received,\n\nafter ninety (90) days from the date of issue or from\n\ntransmittal for payment, it shall be the duty of the\n\nissuing authority forthwith, without any indemnifying\n\nbond or other requirements, to issue a duplicate\n\nthereof in lieu of that which was lost, to the\n\nTeachers’ Retirement System of Oklahoma; and the\n\nTeachers’ Retirement System of Oklahoma shall save\n\nharmless any school district or agency of state\n\ngovernment making payment under the provisions hereof\n\nto the Teachers’ Retirement System of Oklahoma if the\n\noriginal warrant, voucher or check is later presented\n\nfor payment and same is paid after a duplicate\n\nwarrant, voucher or check has been issued and paid to\n\nthe Teachers’ Retirement System of Oklahoma, and any\n\nloss sustained therefrom shall be charged to the\n\nInterest Fund.\n\n11. Rollover Contributions and Direct Trustee-to-Trustee\n\nTransfers from Other Plans.\n\nAny member may purchase credit for service, to the extent\n\nspecified in this title, with rollovers from an eligible retirement\n\nplan as defined by the Internal Revenue Code of 1986, as amended\n\nfrom time to time. A member may also purchase permissive service\n\ncredit, as defined by Title 26, United States Code, Section\n\n415(n)(3)(A), with a direct trustee-to-trustee transfer from a\n\ngovernmental Title 26, United States Code, Section 403(b) plan or\n\ngovernmental Title 26, United States Code, Section 457(b) plan. All\n\nrollovers and direct trustee-to-trustee transfers shall be allowed\n\nto the extent permitted by federal law. Rollovers or direct\n\ntransfers in excess of the amount necessary to purchase such service\n\ncredit shall not be allowed.\n\n12. Retiree Medical Benefit Fund.\n\nThe Retiree Medical Benefit Fund shall be maintained as a\n\nsubaccount under the Retirement Benefit Fund. The Retiree Medical\n\nBenefit Fund is composed of all assets contributed to this\n\nsubaccount to pay the retirement system’s portion of the monthly\n\nretiree health insurance benefits described in Section 1316.3 of\n\nTitle 74 of the Oklahoma Statutes. All allocated assets and the\n\nearnings thereon in the Retiree Medical Benefit Fund shall be held\n\nfor the exclusive purpose of providing retiree medical benefits\n\npursuant to Section 1316.3 of Title 74 of the Oklahoma Statutes.\n\nThe Retiree Medical Benefit Fund shall be administered in accordance\n\nwith the requirements under Section 401(h) of the Internal Revenue\n\nCode of 1986, as amended from time to time. An amount necessary to\n\npay the health insurance premiums for retired members as provided by\n\nSection 1316.3 of Title 74 of the Oklahoma Statutes shall be\n\ndeposited each month into the Retiree Medical Benefit Fund.","path":["OK Code","Title 70"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os70.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"9995e86e87a0eb059c5b3cec3047f49d254588be28bde5cf89093805a23c95ac","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-70-70-17-107","next":"us-ok/okla.-stat.-tit.-70-70-17-108.1"},"notice":"GroundRules: Original legal text. Not legal advice."}