{"data":{"id":"us-ok/okla.-stat.-tit.-70-70-17-116.2c","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 70, § 70-17-116.2C","heading":"Definitions - Computation of retirement benefits –","body":"Pre-cap removal service - Payment of contribution deficit amount.\n\nA. As used in this section:\n\n1. \"Contribution deficit\" means the amount of money computed\n\nfor an eligible employee by multiplying the employee contribution\n\nrate in effect for any period of service performed on or after July\n\n1, 1987, through June 30, 1995, multiplied by the amount of salary\n\nearned by the member in excess of the applicable maximum\n\ncompensation level of the member for such period with interest at\n\nthe rate of ten percent (10%) per year compounded annually;\n\nprovided, that for the designated fiscal years prescribed by\n\nsubparagraphs a and b of this paragraph, the contribution deficit\n\npayment shall be adjusted to:\n\na. fifty percent (50%) of the total amount of the\n\ncomputation otherwise prescribed by this paragraph for\n\nthe fiscal year ending June 30, 2007,\n\nb. seventy-five percent (75%) of the total amount of the\n\ncomputation otherwise prescribed by this paragraph for\n\nthe fiscal year ending June 30, 2008, and\n\nc. one hundred percent (100%) of the total amount of the\n\ncomputation otherwise prescribed by this paragraph for\n\nthe fiscal year ending June 30, 2009, and for each\n\nfiscal year thereafter;\n\n2. \"Eligible employee\" means a member of the System who has not\n\nretired prior to the effective date of this act and who has\n\nperformed service at any time prior to June 30, 1995, and who\n\nfulfills the requirements of this act with respect to inclusion of\n\npre-cap removal years of service in a retirement benefit computation\n\nand:\n\na. who has already reached a normal retirement age prior\n\nto the effective date of this act and has not retired\n\nprior to the effective date of this act,\n\nb. who reaches a normal retirement age on or after the\n\neffective date of this act, and\n\nc. who is employed by an institution within The Oklahoma\n\nState System of Higher Education that is not a\n\ncomprehensive university or a regional institution\n\noffering a four-year degree program as designated or\n\nauthorized by the Oklahoma State Regents for Higher\n\nEducation;\n\n3. \"Maximum average salary amount\", subject to the requirements\n\nof this paragraph related to the funding level for employer\n\ncontribution rates, means:\n\na. Sixty Thousand Dollars ($60,000.00) regardless of any\n\notherwise applicable maximum compensation level for\n\nthe fiscal year ending June 30, 2007,\n\nb. Eighty Thousand Dollars ($80,000.00) regardless of any\n\notherwise applicable maximum compensation level for\n\nthe fiscal year ending June 30, 2008, and\n\nc. the full amount of the average salary without any\n\nlimitation for the fiscal year ending June 30, 2009,\n\nand or each fiscal year thereafter.\n\nThe maximum final average salary amount otherwise authorized\n\npursuant to subparagraph b or subparagraph c of this paragraph shall\n\nbe contingent upon the participating employer in whose employment\n\nthe member is active upon the date the member retires receiving, for\n\nthe fiscal year during which the member's retirement will begin, the\n\namount of funds required pursuant to subparagraph (A)(1) of Section\n\n17-108.1 of this title in order to allow the employer contribution\n\nrates prescribed by subparagraph (A)(1) of Section 17-108.1 of this\n\ntitle to be effective as law. If a member is employed by an\n\nemployer that does not receive the funding required by subparagraph\n\n(A)(1) of Section 17-108.1 of this title for the fiscal year during\n\nwhich the member's retirement will begin, the member shall not be\n\nauthorized to use the maximum final average salary otherwise\n\nauthorized by this paragraph to compute retirement benefits;\n\n4. \"Maximum compensation level\" means either:\n\na. Twenty-five Thousand Dollars ($25,000.00) if a member\n\ndid not elect to make employee contributions on a\n\nhigher salary amount for any pre-cap removal years of\n\nservice, or\n\nb. Forty Thousand Dollars ($40,000.00) if a member did\n\nelect to make employee contributions upon actual\ntherwise\n\nauthorized by this paragraph to compute retirement benefits;\n\n4. \"Maximum compensation level\" means either:\n\na. Twenty-five Thousand Dollars ($25,000.00) if a member\n\ndid not elect to make employee contributions on a\n\nhigher salary amount for any pre-cap removal years of\n\nservice, or\n\nb. Forty Thousand Dollars ($40,000.00) if a member did\n\nelect to make employee contributions upon actual\n\nsalary not in excess of such amount for any pre-cap\n\nremoval years of service;\n\n5. \"Pre-cap removal service\" means any service performed by an\n\nactive member prior to June 30, 1995; and\n\n6. \"System\" means the Teachers' Retirement System of Oklahoma;\n\nB. Unless otherwise expressly provided by this section, any\n\ndefinition contained in Section 17-101 of this title otherwise\n\napplicable to computation of benefits for retired members of the\n\nTeachers' Retirement System of Oklahoma shall have the same meaning\n\nfor purposes of this section.\n\nC. Effective July 1, 2006, any eligible member of the Teachers'\n\nRetirement System of Oklahoma, who, as of July 1, 2006, has already\n\nreached a normal retirement age or who on or after July 1, 2006,\n\nreaches a normal retirement age as defined by paragraph 24 of\n\nSection 17-101 of this title, shall be eligible to have a retirement\n\nbenefit computed as provided by this section. If a member is\n\neligible for the benefit computation authorized by this section, the\n\naverage salary used to compute the retirement benefit of the member\n\nshall be governed by the provisions of this section and such\n\nprovisions shall govern in the event of conflict between this\n\nsection and the provisions of Section 17-116.2 of this title.\n\nD. An eligible employee who performs service in the manner\n\nprescribed by subsection E of this section and who makes payment of\n\nthe applicable contribution deficit amount may have a retirement\n\nbenefit computed as otherwise authorized by Section 17-105 of this\n\ntitle, but shall have such benefit computed without regard to any\n\nmaximum compensation level that would otherwise be applicable to the\n\ncompensation of the member for any period of pre-cap removal\n\nservice.\n\nE. In order to have retirement benefits computed as authorized\n\nby subsection C of this section, and in addition to the payment of\n\nthe contribution deficit amount required by this section, in order\n\nto have any pre-cap removal service included in the retirement\n\nbenefit computation of the member using the average salary earned\n\nduring such period of participating service subject to the maximum\n\naverage salary amount, the member shall be required to perform one\n\n(1) year of participating service on or after the date as of which\n\nthe member reaches a normal retirement age, for each two (2) years\n\nof service performed prior to July 1, 1995. For purposes of this\n\nsection, any year of service performed prior to the effective date\n\nof this act after a member reached a normal retirement age shall\n\nqualify for purposes of the retirement benefit computation\n\nauthorized by this section.\n\nF. One (1) year of participating service performed by an\n\neligible member who, prior to the effective date of this act has\n\nreached a normal retirement age or, who on or after July 1, 2006,\n\nreaches a normal retirement age, shall result in the inclusion of\n\nthe two (2) years of participating service immediately preceding\n\nJuly 1, 1995, in a retirement benefit computation using the average\n\nsalary of the member, subject to the maximum average salary amount.\n\nFor each additional year of participating service performed by the\n\neligible member thereafter, whether such service has been performed\n\nprior to the effective date of this act or whether such service is\n\nperformed on or after the effective date of this act, the two (2)\n\nnext succeeding years of pre-cap removal service performed prior to\n\nthe end of the preceding two-year period may be included in the\neach additional year of participating service performed by the\n\neligible member thereafter, whether such service has been performed\n\nprior to the effective date of this act or whether such service is\n\nperformed on or after the effective date of this act, the two (2)\n\nnext succeeding years of pre-cap removal service performed prior to\n\nthe end of the preceding two-year period may be included in the\n\nbenefit computation without regard to the maximum compensation level\n\nof the member that would otherwise be applicable to such pre-cap\n\nremoval service.\n\nG. The eligible member shall be required to make payment to the\n\nTeachers' Retirement System of Oklahoma of the contribution deficit\n\namount for any year of service performed on or after July 1, 1987,\n\nbut not later than June 30, 1995, as prescribed by subsections H\n\nthrough K of this section in order to have any years of pre-cap\n\nremoval service included in the retirement benefit computation using\n\nthe average salary of the member subject to the maximum average\n\nsalary amount.\n\nH. In order to have years of service included in the benefit\n\ncomputation using average salary subject to the maximum average\n\nsalary amount, the member shall be required to make payment of the\n\ncontribution deficit for the following years of service and in the\n\nsequence prescribed by subsection I of this section according to the\n\nadjustments required by subparagraphs a and b of paragraph 1 of\n\nsubsection A of this section:\n\n1. July 1, 1987, through June 30, 1988;\n\n2. July 1, 1988, through June 30, 1989;\n\n3. July 1, 1989, through June 30, 1990;\n\n4. July 1, 1990, through June 30, 1991;\n\n5. July 1, 1991, through June 30, 1992;\n\n6. July 1, 1992, through June 30, 1993;\n\n7. July 1, 1993, through June 30, 1994; and\n\n8. July 1, 1994, through June 30, 1995.\n\nI. For each year of service performed by the eligible member\n\nprior to the effective date of this act and after having reached a\n\nnormal retirement age, or for each year of service performed by the\n\nmember after reaching a normal retirement age on or after the\n\neffective date of this act, the member shall be required to make\n\npayment of the contribution deficit amount for each year of service\n\nbeginning with the years described in paragraphs 7 and 8 of\n\nsubsection H of this section. For each additional year of service\n\nperformed by the eligible member after the normal retirement age of\n\nthe member, the member shall make payment of the contribution\n\ndeficit amount for each of the next two (2) years of service as\n\ndescribed in:\n\n1. Paragraphs 5 and 6 of subsection H of this section;\n\n2. Paragraphs 3 and 4 of subsection H of this section; and\n\n3. Paragraphs 1 and 2 of subsection H of this section.\n\nJ. After making payment of all required contribution deficit\n\namounts for all periods of service described in paragraphs 1 through\n\n8 of subsection H of this section, an eligible member who has\n\nperformed any additional years of service after having reached a\n\nnormal retirement age, or for each year of service performed by the\n\nmember after reaching a normal retirement age on or after the\n\neffective date of this act, the member may then include any\n\nadditional two-year period of service performed prior to July 1,\n\n1987, using the average salary of the member, subject to the maximum\n\naverage salary amount, in the retirement benefit computation for\n\nsuch years of service by performing one (1) additional year of\n\nservice.\n\nK. No contribution deficit payments shall be required of the\n\neligible member with respect to years of service performed prior to\n\nJuly 1, 1987, if such years of service are included in the\n\nretirement benefit computation of the member using average salary as\n\notherwise authorized by this section, subject to the maximum average\n\nsalary amount.\n\nL. An eligible member may make the payment of the contribution\n\ndeficit amount required by this section at any time prior to the\ner with respect to years of service performed prior to\n\nJuly 1, 1987, if such years of service are included in the\n\nretirement benefit computation of the member using average salary as\n\notherwise authorized by this section, subject to the maximum average\n\nsalary amount.\n\nL. An eligible member may make the payment of the contribution\n\ndeficit amount required by this section at any time prior to the\n\nretirement of the member from the System; however, no years of pre-\n\ncap removal service for which full payment of the required\n\ncontribution deficit has not been made pursuant to the requirements\n\nof this section may be included in the retirement benefit\n\ncomputation of the otherwise eligible member using the average\n\nsalary of the member for such period, subject to the maximum average\n\nsalary amount.\n\nM. Any pre-cap removal years of service for which the required\n\ncontribution deficit payment has not been made to the System shall\n\nonly be included in a retirement benefit computation using the\n\nmaximum compensation level in effect for the member at the time such\n\nyears of service were performed.\n\nN. All payments to the System for pre-cap removal service shall\n\nbe made prior to the date as of which a member retires. No payments\n\nto the System for pre-cap removal service otherwise authorized by\n\nthis section shall be made after a member retires from the System\n\nand begins to receive benefits.\n\nO. Any eligible member who, prior to the effective date of this\n\nact, has not previously made an election for payment of employee\n\ncontributions on a maximum compensation level of Twenty-five\n\nThousand Dollars ($25,000.00) for pre-cap removal service may file\n\nan election with the System to make payment of the required\n\ncontribution deficit amount pursuant to this section. Such an\n\nelection shall be irrevocable.\n\nP. No participating employer of the System shall make payment\n\nof any required contribution deficit amount on behalf of any\n\notherwise eligible member, whether directly or indirectly, in order\n\nfor the member to have retirement benefits computed according to the\n\nprovisions of this section.\n\nQ. No member of the System who has retired prior to July 1,\n\n2006, shall be eligible to make any payments of the contribution\n\ndeficit amount and no such member shall have the ability to have a\n\nretirement benefit recomputed as a result of the provisions of this\n\nsection.\n\nR. The additional retirement benefit attributable to the\n\nprovisions of this section may be computed for members who retire on\n\nor after July 1, 2006, but prior to January 1, 2007, but the\n\nadditional retirement benefit attributable to the provisions of this\n\nsection shall not be payable until January 1, 2007. On and after\n\nJanuary 1, 2007, the additional retirement benefit attributable to\n\nthe provisions of this section shall be added to the retirement\n\nbenefit amount of any member who retires on or after July 1, 2006,\n\nand prior to January 1, 2007, and such increased benefit amount\n\nshall be payable to the member or any beneficiary of the member as\n\notherwise provided pursuant to the provisions of Section 17-101 of\n\nthis title in the same manner as other retirement benefits are\n\npayable.","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":"99834e7da4f40f03dc4694a283c17494685d5d37c3c5561663cb18041897468e","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-70-70-17-116.2b","next":"us-ok/okla.-stat.-tit.-70-70-17-116.2d"},"notice":"GroundRules: Original legal text. Not legal advice."}