Teachers' Retirement System of Oklahoma

2005-2006 Rules

Chapter 1. Administrative Operations

715:1-1-1. Purpose

715:1-1-2. Board of Trustees

715:1-1-3. Medical Board

715:1-1-4. Administrative office

715:1-1-5. Executive Secretary

715:1-1-6. Bonds (protective)

715:1-1-7. Purchases

715:1-1-8. Payment of salaries and claims

715:1-1-9. Investment of funds

715:1-1-10. Grievances and complaints

715:1-1-11. Information requests

715:1-1-12. Public participation in adoption of rules

715:1-1-13. Change of address, name or district

715:1-1-14. Definition of IRS Code

715:1-1-15. Distribution Rules

715:1-1-16. General IRS Qualification Rules

715:1-1-17. Inspection, copy and/or reproduction fees

715:1-1-18. Retirement benefit reduction to pay a judgment or settlement as an offset

Chapter 10. General Operations

715:10-1. Membership Provisions

715:10-1-1. Purpose

715:10-1-2. TRS membership eligibility

715:10-1-3. Mandatory TRS membership

715:10-1-4. Optional TRS membership

715:10-1-5. Ineligible for TRS membership

715:10-1-6. Date of TRS membership

715:10-1-7. Membership in education associations

715:10-1-8. Membership of Employees of Charter Schools

715:10-3. Service Eligibility

715:10-3-1. Requirements for creditable service

715:10-3-2. Requirements for fulltime service

715:10-3-3. Requirements for halftime service

715:10-3-4. Combining fractional years of service

715:10-3-5. Minimum compensation requirements

715:10-5. Establishing Other Service Credits

715:10-5-1. Oklahoma service credit after July 1, 1943

715:10-5-2. Employment as a substitute teacher in Oklahoma schools

715:10-5-3. Official sabbatical leave from an Oklahoma school

715:10-5-4. Cost to purchase Oklahoma service

715:10-5-5. Oklahoma service performed prior to July 1, 1943 [REVOKED]

715:10-5-6. Verification of Oklahoma service before membership

715:10-5-7. Credit for service in other Oklahoma public retirement systems

715:10-5-7.1. Transfer of service credit from the Oklahoma Public Employees Retirement System

715:10-5-7.2. Transfer of service credit to the Oklahoma Public Employees Retirement System

715:10-5-7.3. Service credit transfers for TRS members who are CLEET-certified employees of the University of Oklahoma and Oklahoma State University

715:10-5-8. Revocation of $7,800 waiver

715:10-5-9. Re-establishing withdrawn service

715:10-5-10. Military service credit

715:10-5-11. Military service limited to maximum of five years

715:10-5-12. Military service performed prior to July 1, 1943 [REVOKED]

715:10-5-13. Military service performed after July 1, 1943

715:10-5-14. Military service combined with Oklahoma service

715:10-5-15. Application for military service

715:10-5-16. Cost to purchase military service

715:10-5-17. Adjustment for military service after retirement

715:10-5-18. Other restrictions on military service

715:10-5-19. Out-of-state service credit

715:10-5-20. Out-of-state service performed prior to July 1, 1943 [REVOKED]

715:10-5-21. Out-of-state service performed after July 1, 1943

715:10-5-22. Out-of-state service limited to maximum of five years

715:10-5-23. Out-of-state service combined with Oklahoma service

715:10-5-24. Continuous, consecutive out-of-state service

715:10-5-25. Application for out-of-state service

715:10-5-26. Cost to purchase out-of-state service

715:10-5-27. Other restrictions on out-of-state service

715:10-5-28. Sick leave service credit

715:10-5-29. Verification of accumulated sick leave

715:10-5-30. Ten-year averaging of sick leave

715:10-5-31. Documentation of service

715:10-5-32. Rollovers from other qualified plans or conduit IRAs

715:10-5-33. Credit for family leave

715:10-5-34. Credit for Adjunct Service

715:10-5-35. Employer pick-up of purchase of service credit

715:10-7. Membership Vesting and Termination

715:10-7-1. Vesting of membership in TRS

715:10-7-2. Limitation of benefits to an inactive, vested member

715:10-7-3. Termination because of absence

715:10-7-4. Extension of TRS membership after absence

715:10-7-5. Retired members

715:10-7-6. Termination of a non-eligible person

715:10-9. Survivor Benefits

715:10-9-1. Return of contributions when death occurs before retirement

715:10-9-2. Death benefit when death occurs before retirement

715:10-9-3. Monthly annuity in lieu of death benefit

715:10-9-4. Death benefit when death occurs after retirement

715:10-9-5. Payments to beneficiaries of deceased members

715:10-9-6. Probate Waivers

715:10-9-7. Beneficiary designation following a divorce

715:10-11. Withdrawal from Membership and Refund of Deposits

715:10-11-1. Withdrawal from membership by an eligible person

715:10-11-2. Withdrawal of optional membership while still employed

715:10-11-3. False affidavits

715:10-11-4. Refunds of contributions

715:10-11-5. Termination of rights to benefits

715:10-11-6. Reinstatement of an account

715:10-11-7. Rollovers from OTRS to other eligible retirement plans

715:10-13. Contributions for Membership Service

715:10-13-1. Regular annual compensation requirements

715:10-13-2. Contributions required on all compensation

715:10-13-3. Employee contribution rates

715:10-13-3.1. Employer contribution rates

715:10-13-4. Maximum compensation level election

715:10-13-5. Compensation corrections

715:10-13-6. Employee contributions paid by the employer

715:10-13-7. Federal matching funds

715:10-13-8. Procedure for making contribution deductions

715:10-13-9. Monthly remittance report of contributions

715:10-13-10. Annual report of employment

715:10-13-11. Percentage limits on compensation increases

715:10-13-12. Contracts bought-up by employer

715:10-13-13. Contributions while receiving payments from Workers' Compensation

715:10-13-14. Termination credit for state agency employees who are members of the Teachers' Retirement System of Oklahoma

715:10-15. Service Retirement

715:10-15-1. Eligibility for service retirement

715:10-15-2. Age, service requirements for regular retirement

715:10-15-3. Date of retirement; making application

715:10-15-4. Effective date of retirement contract

715:10-15-5. Date of retirement contract is binding; revocation of contract

715:10-15-6. Verification of date of birth

715:10-15-7. Standard retirement formula

715:10-15-7.1 Retirement formula for members employed by a comprehensive university

715:10-15-8. Age, creditable service determination

715:10-15-9. Minimum service retirement benefits

715:10-15-10. Retirement plans

715:10-15-10.1. "Pop-up" of Option 2 or Option 3 Retirement Plans

715:10-15-10.2. Partial Lump-sum Payments

715:10-15-10.3.Partial Lump-sum Option Factors

715:10-15-11. Designation of beneficiaries for retirement options

715:10-15-12. Spousal consent

715:10-15-13. Survivor benefits when death occurs after retirement

715:10-15-14. Actuarial tables

715:10-15-15. Disability retirement; application; effective date

715:10-15-16. Review by Medical Board

715:10-15-17. Additional medical evidence can be required

715:10-15-18. Discontinuance of disability retirement

715:10-15-19. Disability retirement payments

715:10-15-20. Conversion of disability retirement to retirement option 2

715:10-15-21. Return to employment by a disabled retiree

715:10-15-22. Reduction of disability benefits for excess earnings

715:10-15-23. Special $150 per month plan; application; effective date

715:10-15-24. Due-date of retirement benefit payments

715:10-15-25. Changes and corrections to retirement benefit payments

715:10-15-26. Code Section 415 limits as applied to TRS

715:10-15-27. Code Section 401(a)(17) limits as applied to TRS

715:10-17. Post-Retirement Employment

715:10-17-1. Definitions

715:10-17-2. Break between employment and retirement

715:10-17-3. Fulltime employment after retirement [REVOKED]

715:10-17-4. Fulltime employment with no effect on benefits [REVOKED]

715:10-17-5. Permissible employment

715:10-17-6. Earnings limits

715:10-17-7. Employment by a disabled retiree

715:10-17-8. Repayment of benefits

715:10-17-9. Annual W-2P tax statements

715:10-17-10. Effective date of OAC 715:10-17-1 through 715:10-17-9

715:10-17-11. Special waiver for retirees past age 70

715:10-17-12. Earnings report by remitting agencies

715:10-17-13. Election to return to qualifying employment

715:10-17-14. Termination and Resumption of Benefit Payments

715:10-19. Tax-Sheltered Annuity Program

715:10-19-1. Authority for program

715:10-19-2. General description

715:10-19-3. Eligible employees

715:10-19-4. Program requisites

715:10-19-5. Contributions

715:10-19-6. Calculation of exclusion allowance [REVOKED]

715:10-19-7. Methods of computing maximum TSA contribution

715:10-19-8. Distributions

715:10-19-9. Withdrawals for financial hardship

715:10-19-10. Example of tax-shelter earnings [REVOKED]

715:10-19-11. Rollovers from OTRS 403(b) program to other eligible retirement plans

715:10-19-12. The Oklahoma Teachers' Deferred Savings Incentive Plan Fund

715:10-19-13. Contributions from the Oklahoma Teachers' Deferred Savings Incentive Plan Fund into Tax-Sheltered Annuity accounts of active contributing TRS members

715:10-21. Investment Policy

715:10-21-1. Investment of funds

715:10-21-2. Statement of investment policy

715:10-21-3. Investment guidelines

715:10-21-4. Portfolio assets allocation

715:10-21-5. Cash equivalents guidelines

715:10-23. State and Education Employees Group Health and Dental Insurance Program

715:10-23-1. State and Education Employees Group Health and Dental Insurance Program

715:10-23-2. Monthly health insurance premium supplement paid by the Teachers’ Retirement System

715:10-23-3. Participating education employers not enrolled in the State and Education Employees Group Insurance Plan

715:10-23-4. Retired members who return to employment

715:10-23-5. Retired members ineligible for health insurance supplement

 

715:10-25. Qualified Domestic Order

715:10-25-1. Definition

715:10-25-2. Filing a qualified domestic order

715:10-25-3. Contents of a qualified domestic order

715 10-25-4. Payment to alternate payee

715:10-25-5. Termination of a qualified domestic order

715:10-25-6. Teachers’ Retirement not subject to ERISA

715:1-1-1. Purpose

The rules of this Chapter have been adopted for the purpose of complying with the provisions of the Administrative Procedures Act, 75 O.S., Section 250 et seq, and for establishing and explaining the internal and external administrative operations of the Teachers’ Retirement System.

715:1-1-2. Board of Trustees

(a) The general administration and responsibility for the proper operation of the Teachers' Retirement System of Oklahoma, and effectively implementing the retirement statutes, are vested in the Board of Trustees. The statutory authority for the Board of Trustees is Title 70, Oklahoma Statutes, Section 17-106 [70 O.S. 17-106]. The board is comprised of 13 trustees, appointed as follows:

(1) The State Superintendent of Public Instruction, ex-officio.

(2) The Director of State Finance, ex officio.

(3) The Director of the Oklahoma Department of Career and Technology Education, ex officio, or his or her designee.

(4) A representative of a school of higher education in Oklahoma, appointed by the Governor and approved by the Senate.

(5) A member of the System of the nonclassified optional personnel status, appointed by the Governor and approved by the Senate.

(6) An active classroom teacher, appointed by the President Pro Tempore of the Senate.

(7) A retired member of the System, appointed by the President Pro Tempore of the Senate.

(8) An active classroom teacher, appointed by the Speaker of the House of Representatives.

(9) A retired classroom teacher, appointed by the Speaker of the House of Representatives.

(10) Four members appointed by the Governor.

(b) Persons appointed to the Board of Trustees pursuant to (a) above, shall:

(1) Have demonstrated professional experience in investment or funds management, public funds management, public or private pension fund management or retirement system management, or

(2) Have demonstrated experience in the banking profession and professional experience in investment or funds management, or

(3) Be licensed to practice law in Oklahoma and have demonstrated professional experience in commercial matters, or

(4) Be licensed by the Oklahoma State Board of Public Accountancy to practice in Oklahoma as a public accountant or as a certified public accountant.

(c) The Governor, in making appointments that conform to the above requirements, shall give due consideration to balancing the appointments among the listed criteria.

715:1-1-3. Medical Board

A Medical Board of three physicians, licensed by the State of Oklahoma, approved by the Board of Trustees, is charged with the responsibility of certifying members for retirement under the disability retirement provisions.

715:1-1-4. Administrative office

The Teachers' Retirement System has office space located in the Oliver Hodge Education Building, 2500 N. Lincoln Boulevard, Oklahoma City, Oklahoma 73105. The mailing address for correspondence is TRS, P. O. Box 53524, Oklahoma City, OK 73152. The main telephone number is (405) 521-2387. The toll-free telephone number for calls originating outside the Oklahoma City local calling area is 1-877-738-6365. The Teachers' Retirement System's website is www.trs.state.ok.us. Members are encouraged to visit the Retirement Office, or make written inquiries regarding any matter pertaining to their retirement accounts.

715:1-1-5. Executive Secretary

The Executive Secretary shall be the administrative officer for the Board of Trustees and shall be responsible for the general administration of the Retirement System.

(1) All employees shall be under the direct supervision of the Executive Secretary, and shall be recommended by the Executive Secretary with approval by the Board of Trustees.

(2) The Secretary-Treasurer shall be an employee of TRS.

(3) All vouchers drawn against TRS shall be signed by two members of the administrative staff: the Executive Secretary, the Assistant Executive Secretary, the Secretary-Treasurer, or the Comptroller.

(4) The Executive Secretary shall make reports to the Board of Trustees at its regular monthly meetings in regard to administrative matters, funds and budgetary matters, and present statements showing the general condition of the System’s finances.

715:1-1-6. Bonds (protective)

(a) Under supervision of the Board, the administration of the System is carried out by the Executive Secretary and the office staff. The State Treasurer, who is the custodian of the Teachers’ Retirement funds, is under a $50,000 bond to the Board of Trustees. A $25,000 bond is required of the Executive Secretary.

(b) All persons employed by TRS, except the Secretary-Treasurer, shall be bonded by a blanket bond in an amount not in excess of $20,000. The position of Secretary-Treasurer shall be covered by an individual bond in the amount of $25,000. The amount of the bonds of the Executive Secretary and the State Treasurer is set by the Teachers’ Retirement law.

(c) A cash and securities bond provides coverage on securities, $10,000 inside the premises and $30,000 outside the premises, and cash, $500 inside the premises and $1,000 outside the premises. A depositor’s forgery bond in the amount of $10,000 protects TRS and its members against forgery on checks.

715:1-1-7. Purchases

The Executive Secretary shall have authority to make such purchases of equipment and supplies as may be needed for the operation of TRS, subject to approval by the Board of Trustees.

715:1-1-8. Payment of salaries and claims

(a) The Executive Secretary is authorized to approve and pay all payrolls for the regular personnel and extra help of TRS, as provided in the budget approved by the Board of Trustees. The Executive Secretary and the Secretary-Treasurer must comply with the law in making purchases of supplies, printing materials and equipment. Claims for all traveling expenses, utility bills, communications, bond premiums, rentals, payments of death claims to beneficiaries or estates, tax-sheltered annuity claims, and maintenance and repair of machines, when properly audited and approved by the Secretary-Treasurer or the Executive Secretary, may be paid before approval by the Board of Trustees. In the event of the absence of the Secretary-Treasurer or the Executive Secretary, the Assistant Executive Secretary may also sign for approval of claims.

(b) The retired member payroll shall be paid when approved by the Secretary-Treasurer and the Executive Secretary, or in the event of an absence, the Assistant Executive Secretary may approve for one. The Board of Trustees shall then make final approval at the next regular meeting following the date on which the checks were mailed to retired members.

715:1-1-9. Investment of funds

The Board of Trustees shall be the trustees of the several funds created by the Teachers’ Retirement Act and shall have full power to invest and reinvest such funds subject to the provisions of 70 O.S. 17-106, other pertinent laws of the State of Oklahoma, and the investment policies that may be adopted by the Board of Trustees. In making investments, the Board shall exercise the judgment and care in the circumstances then prevailing that men of prudence, discretion and intelligence exercise in the management of their own affairs, not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable safety of their capital. This shall not be construed to authorize the Trustees to buy or sell property and investments from or to themselves personally, or to commingle Trust Funds with their individual funds. (See OAC 715:10-21-1)

715:1-1-10. Grievances and complaints

Grievances and complaints are usually settled by correspondence or informal conference between the member or beneficiary and the staff of the Teachers’ Retirement System.

(1) Any interested person with a grievance which cannot be settled in this manner may appeal the decision of the staff to the executive secretary of the Teachers’ Retirement System. Request for an informal hearing before the executive secretary must be in writing and include a clear statement of the grievance or complaint. The executive secretary will provide a written response within thirty (30) days, stating the official position of Teachers’ Retirement in the matter before appeal. The response will either grant or deny the appellant’s request. If denied, the executive secretary shall provide to the member the applicable statutes, rules and administrative procedures used in reaching a decision to deny the appeal of the member. "Interested person" means any member of the Teachers’ Retirement System; any beneficiary of a member; any retiree of the Teachers’ Retirement System; any guardian, administrator, or executor of a member, retiree, or beneficiary; or any public school.

(2) Any decision of the executive secretary may be appealed to the Board of Trustees of the Teachers’ Retirement System. The member must appeal the decision of the executive secretary within sixty (60) days of receipt of notification of denial by the executive secretary.

(3) All cases of appeals to the Board of Trustees will be assigned to an administrative hearing judge, who will conduct a hearing and prepare a proposed order to the Board of Trustees. The executive secretary shall appoint the administrative hearing judge from a list of individuals previously employed by the Board of Trustees to act in this role. All hearings shall be conducted in the offices of the Teachers’ Retirement System at a time and date agreed to by the parties. It is expected that any party to the hearing will provide timely notice to the other parties if a delay or failure to appear is anticipated.

(4) Hearings will be conducted under the provisions of the Administrative Procedures Act [75 O.S. 250 et. seq.]. Opportunity shall be afforded all parties to respond and present evidence and arguments on all issues involved. The administrative hearing judge will have the authority to conduct the hearing and rule on the admissibility of all evidence. Any party shall at all times have the right to counsel, provided that such counsel must be duly licensed to practice law by the Supreme Court of Oklahoma, and provided further that such counsel shall have the right to appear and act for and on behalf of the party he represents. Upon the completion of the hearing, the administrative hearing judge shall afford the appellant the opportunity to present a written brief and arguments to be included as part of the record. Legal counsel for Teachers’ Retirement shall be provided an equal opportunity to respond to appellant’s written brief and arguments if requested. Once all evidence, arguments and briefs are received by the administrative hearing judge the record shall be closed.

(5) At the close of the hearing, the administrative hearing judge shall, as soon as practical, prepare a proposed order to be delivered to the Board of Trustees. This proposed order shall include findings of fact, based exclusively on the evidence and on matters officially noted in the record of the hearing, conclusions of law and a recommended order to the Board of Trustees. A copy of this proposed order shall be provided to all parties by the executive secretary.

(6) The member shall have the right to file a written statement outlining any objections, exceptions and/or arguments he desires the Board of Trustees to consider in its consideration of the hearing judge’s proposed order. This statement must be filed with the executive secretary within twenty (20) days of receipt of the hearing judge’s proposed order. No additional evidence or materials may be introduced by the member which were not presented at the hearing. The executive secretary and/or TRS staff may prepare a written response in rebuttal to the member’s statement. A copy of any response by TRS will be provided to the member at least ten (10) days prior to the time the member’s appeal is scheduled for consideration by the Board of Trustees. The member may waive the ten (10) day limit if it would delay scheduling the matter before the Board.

(7) The executive secretary may, prior to submitting the hearing officer's report to the Board of Trustees, settle any grievance or complaint in a manner agreeable to the appellant. In settling any grievance the executive secretary shall not exceed the authority previously granted to him or her by the Board of Trustees. The executive secretary shall report to the Board of Trustees any settlement which occurs after the hearing officer's report is filed.

(8) Consideration of the member’s case will be scheduled before the Board of Trustees as soon as possible after the proposed order and any additional written materials have been filed with the Board in accordance with this section. Unless mutually agreed to by all parties, no hearing before the Board will be scheduled within ten (10) working days of such filings.

(9) At the meeting at which the Board of Trustees will consider the proposed order, the member will be afforded an opportunity to make a brief statement to the Board concerning the facts and any arguments he wishes to present and will be allowed to respond to questions from Trustees. Failure of the member to appear at the Board hearing without prior notification will result in the member relinquishing his right to be heard by the Board. If such absence was unavoidable, the member may petition the Board for a rehearing. The Chairman of the Board of Trustees will have final authority to set the amount of time any party may have to present information to the Board.

(10) After consideration of all evidence and arguments, both oral and written, the Board will make a final determination on the proposed order. The Board of Trustees may accept, reject or accept as-modified the proposed order. The Board may make its own conclusions and issue an order in concert with those findings; or re-open the case and hear evidence themselves. If the Board decides to hear the case, it will determine whether to review the complete record, including a transcript of the original hearing conducted by the administrative hearing judge and all documentary evidence, or open the case to receive new evidence and testimony. As in all matters before the Board, seven (7) votes are necessary to approve any motion, resolution or order under consideration. A copy of the Board's final order will be delivered via mail to the member and his representative by the executive secretary of TRS.

(11) Any member receiving an adverse ruling from the Board retains certain rights under the Administrative Procedures Act. The member may file an action for judicial review in District Court in Oklahoma County. Such action must be filed within thirty (30) days after the aggrieved party is notified of the Board’s order. The member may also petition for a rehearing, reopening or reconsideration of the appeal by the Board. Such petition must be filed with the executive secretary of TRS within ten (10) days from the date of the Board’s decision and must be based on 75 O.S. 317.

(12) The Administrative Procedures Act prohibits direct or indirect communications by members and/or the representatives of members with the Board of Trustees in connection with any issue of fact or law regarding an appeal before the Board, except upon notice which provides an opportunity for all parties to participate. The Board of Trustees will not consider any evidence or statements made to them by members in connection with a pending appeal.

715:1-1-11. Information requests

From time to time, many professional organizations seek information from the Teachers’ Retirement System for improving benefits. It is the desire of the Board of Trustees that the staff work with groups in an advisory capacity or to supply factual data. Requests for technical data that would require the services of the Board’s consulting actuary are to be made in writing and will be reviewed by the Board before appropriate action is taken. Because there are a large number of professional organizations and affiliate groups which represent various segments of the teacher retirement membership, the Board encourages organizations to coordinate their efforts through their parent organization.

715:1-1-12. Public participation in adoption of rules

The Board encourages members to participate in the review and promulgation of rules governing the Teachers’ Retirement System.

(1) Any interested person may informally request adoption of a rule by correspondence or conference with Teachers’ Retirement System staff members. If satisfactory results cannot be achieved in this manner, any interested person may petition the Teachers’ Retirement System to adopt, amend, or repeal a rule by filing a clear, written request to initiate rulemaking procedures with the executive secretary. The petition shall set forth the exact text of the proposed rule and the petitioner’s name and address, and the name, business address, and telephone number of petitioner’s counsel, if any. The petition may also include written documents in support of the petition.

(2) "Interested person" means any member of the Teachers’ Retirement System; any beneficiary of a member; any retiree of the Teachers’ Retirement System; any guardian, administrator, or executor of a member, retiree, or beneficiary; or any public school.

(3) The executive secretary shall grant or deny the petition within 60 days of its receipt. The executive secretary may consult informally with staff members and the petitioner in reaching a decision. The petition may be amended with consent of the petitioner at any time before a final decision is rendered.

(A) Upon granting the petition in writing, the executive secretary shall inform the Board and request authority to initiate rulemaking proceedings pursuant to the Administrative Procedure Act and the rules and regulations of the Teachers’ Retirement System.

(B) Denial of the petition by the executive secretary, and reasons therefore, shall be in writing. The petitioner may appeal this decision to the Board of Trustees provided that a written notice of appeal is filed with the executive secretary within sixty (60) days after the decision of the executive secretary is issued. If no such notice of appeal is timely filed, or if the next regularly scheduled meeting of the Board of Trustees will occur more than sixty (60) days after receipt of the petition by the executive secretary, and the petitioner is unwilling to waive the deadline for a final decision until that meeting, the decision of the executive secretary shall be the final decision of Teachers’ Retirement System. The final decision of the Board shall be based on the written petition and written decision of the executive secretary unless the Board orders a hearing on the petition. If the Board approves the petition, the executive secretary shall initiate rulemaking proceedings pursuant to the Administrative Procedure Act and the rules and regulations of the Teachers’ Retirement System.

(4) Oral and written data, views, and arguments on a proposed rule may be submitted informally to the executive secretary by informal conference or correspondence within twenty (20) days after publication of notice of the proposed rule is filed with the Department of Libraries.

(5) A written request for a public hearing on a proposed substantive rule may be submitted to the executive secretary within ten (10) days after publication of notice of the proposed substantive rule provided that the request is made by 25 persons, a governmental subdivision or agency, or an association having at least 25 members. The request shall contain the name and address of each person requesting the hearing and shall clearly specify the proposed rule for which a hearing is requested.

(6) The executive secretary shall schedule the proposed rule for hearing on a date no earlier than seven days after notice of the hearing date is published and no later than 20 days after receipt of the written request. The executive secretary or the Board of Trustees may reschedule the hearing in the interest of justice or administrative necessity or for good cause; however, the proposed rule shall not be adopted prior to the requested hearing.

(7) The executive secretary shall designate himself, a Teachers’ Retirement System employee, or a specially appointed person as hearing officer to take the testimony of any interested person in support of or in opposition to the rule. The hearing officer shall designate the order of taking testimony and may establish reasonable time limits on oral testimony, provided that reasonable opportunity is given to amplify oral testimony in writing. All hearings will be held in the offices of Teachers’ Retirement System, unless for good cause Teachers’ Retirement System shall designate another place of hearing.

715:1-1-13. Change of address, name or district

When a member moves to a new address, or if there is a change of surname, TRS should be notified of such change in writing. Please include the new name, the former name and the Social Security number. This procedure also applies to retired members whose checks are directly deposited to their banking accounts. Also, when an employee moves from one school district to another, it is important that TRS be notified of this change at once. Personal Data Form TRS 1-A may be secured for this purpose from the fiscal officer of the member’s employer.

715:1-1-14. Definition of IRS Code

The retirement system shall satisfy the applicable qualification requirements for governmental plans as specified in Sections 401 and 414(d) of the Internal Revenue Code of 1954 or 1986, as amended from time to time and as appropriate for a governmental plan (hereinafter referred to as the "Internal Revenue Code").

715:1-1-15. Distribution Rules

Notwithstanding any other provision of the administrative code, all benefits paid from the retirement system (other than the tax-sheltered annuity program) shall be distributed in accordance with the requirements of Section 401(a)(9) of the Internal Revenue Code and any regulations under that section, even if the member has not submitted the appropriate notice. In furtherance of this rule, the Board of Trustees and its designee will apply the following provisions:

(1) For purposes of determining benefits, the life expectancy of a member or a member’s spouse shall not be recalculated after benefits commence.

(2) If a member dies before distribution of the member’s benefits begins, distributions to beneficiaries must begin no later than December 31 of the calendar year immediately following the calendar year in which the member died.

(3) The amount of benefits payable to a member’s beneficiary may not exceed the maximum determined under the incidental death benefit requirement of the Internal Revenue Code.

715:1-1-16. General IRS Qualification Rules

In addition to other Code provisions otherwise noted, and in order to satisfy the applicable requirements under the Code, the retirement system shall be subject to the following provisions, notwithstanding any other provision of the retirement system law:

(1) The Board of Trustees shall distribute the corpus and income of the retirement system to the members and their beneficiaries in accordance with the retirement system law.

(2) Forfeitures arising from severance of employment, death, or for any other reason may not be applied to increase the benefits any member would otherwise receive under the retirement system law.

(3) The Board of Trustees or its designee may not:

(A) determine eligibility for benefits,

(B) compute rates of contribution, or

(C) compute benefits of members or beneficiaries

in a manner that discriminates in favor of members who are considered officers, supervisors, or highly compensated, as prohibited under Code Section 401(a)(4).

(4) The Board of Trustees may not engage in a transaction prohibited by Code Section 503(b).

715:1-1-17. Inspection, copy and/or reproduction fees

(a) Any request for a copy of a record not deemed confidential under 70.O.S. §17-109.1 from the Teachers' Retirement System of Oklahoma shall be granted upon payment of the following fees:

(1) First six (6) pages - Free

(2) Additional pages - $0.25 per page

(3) Certified Copies - $1.00 per page

(4) Facsimiles (Fax) - $1.00 per page

(5) Magnetic tapes or other electronic media - Actual cost

(b) These fees shall not apply to copies of the System's Rules and Laws books, Annual Reports, Plan Summaries or other publications sent to System members, scholars, authors, news media, or taxpayers seeking to determine whether those entrusted with the affairs of the government are honestly, faithfully, and competently performing their duties as public servants. These fees shall not be used for the purpose of discouraging requests for information or as obstacles to disclosure of requested information. If the request for a record is solely for commercial purposes or clearly causes excessive disruption of the System's essential functions, the Teachers' Retirement System of Oklahoma may charge a reasonable fee to recover the direct cost of the document search, as provided by 51 O.S., §24A.5 (3). Said reasonable fee shall be the equivalent of the applicable pro rata hourly wage of the System employee who performs the search multiplied by the total search time expended by that employee.

715:1-1-18. Retirement benefit reduction to pay a judgment or settlement as an offset

The Board of Trustees may approve an offset of a member's benefit to pay a judgment or settlement against the member for a crime involving the System, for a breach of the member's fiduciary duty to the System, or for funds or monies incorrectly paid to a member or a beneficiary by mistake. Such offsets will be made in accordance with any applicable state statutes and requirements of Section 401(a)(13) of the Internal Revenue Code of 1986.

Subchapter 1. Membership Provisions

715:10-1-1. Purpose

The rules of this Chapter have been adopted for the purpose of complying with and implementing the provisions of 70 O.S., Section 17-102 et seq, which establish the Teachers’ Retirement System of Oklahoma and place it under the management of the Board of Trustees.

715:10-1-2. TRS membership eligibility

All "regular" employees of the public schools operated by and for the State of Oklahoma are eligible to become members of the Teachers’ Retirement System, subject to the restrictions in paragraphs 1 through 3 of this section.

(1) Regular employee means an employee working twenty (20) hours or more per week, who has assigned duties and responsibilities, and who is treated by all standard conventions as an employee of the school; and, who receives compensation commensurate with the responsibilities of the position. Temporary, seasonal, supplemental and other employees employed on a limited or short term basis are not regular employees, and are thus ineligible.

(2) Regular employees receive payment for service by a school or state warrant, recorded on a warrant register with standard payroll deductions and receive benefits generally provided to other "regular" employees.

(3) The minimum requirement of twenty (20) hours per week shall be determined by the actual time the employee is required to be present at the place of employment.

715:10-1-3. Mandatory TRS membership

The following employees are required by 70 O.S. 17-103 to be members of the Teachers’ Retirement System as a condition of employment:

(1) "Classified" employees employed by public, state-supported educational institutions in Oklahoma for twenty (20) hours or more per week at a rate of compensation comparable to other persons employed in similar positions.

(2) An administrative or supervisory employee of the State Department of Education, or other state agency whose function is primarily devoted to public education and who works twenty (20) hours or more per week at a rate of compensation comparable to other persons employed in similar positions.

(3) A county superintendent of schools. (This paragraph will become obsolete January 1, 1993 when provisions of H.B. 1017 abolish the office of county superintendent).

715:10-1-4. Optional TRS membership

The following employees are eligible to be members of the Teachers' Retirement System at their option:

(1) "Classified" employees regularly employed in the public, state-supported educational institutions of Oklahoma at any time during the five-year (5-year) period from July 1, 1938 to June 30, 1943.

(2) "Non-classified" employees employed by the public, state-supported educational institutions in Oklahoma for twenty (20) hours or more per week at a rate of compensation comparable to other persons employed in similar positions.

(3) "Classified" employees regularly employed in the public, state-supported educational institutions who have reached age fifty-five (55) at the time of employment.

(4) "Classified" employees regularly employed by a comprehensive university, as defined in 70 O.S. ' 17-101, who have reached age forty-five (45) at the time of employment, providing the employee is not currently a member of the Teachers' Retirement System.

(5) An employee on official sabbatical leave receiving at least one-half pay from the employing school or institution. Contributions for such employment shall be at a rate commensurate with the salary earned as a regular full-time employee in the last preceding school year. "Official sabbatical" means paid leave granted by the governing board of the employing school or institution. The member must elect to participate and make contributions to TRS at the time of the sabbatical. Sabbatical leave cannot be purchased by the member at a later date.

(5)(6) Any member absent from the teaching service who is eligible to continue membership under special provisions of 70 O.S. 17-116.2, provided that such employee continues to be employed by a governmental agency.

(6)(7) A visiting professor from another state or nation.

(7)(8) Classified and Non-Classified members employed after retirement. (See OAC 715:10-17-13)

(8)(9) Full-time, non-classified optional personnel who previously have opted out of TRS under OAC 715:10-11-2 may revoke their election and return to TRS participation. Providing, however, that such member is not eligible to redeposit the account withdrawn under OAC 715:10-11-2 or purchase credit for service performed after termination of membership and re-instatement of membership.

715:10-1-5. Ineligible for TRS membership

The following employees are ineligible to be members of the Teachers' Retirement System. (Note: Ineligible employment cannot be combined with eligible employment.)

(1) An employee working less than 20 hours per week.

(2) A substitute, irregular, seasonal, graduate assistant, fellowship recipient, adjunct supplemental or temporary employee. (Note: Certain substitute and adjunct employment may qualify for service credit. See OAC 715:10-5-2 and OAC 715:10-5-34).

(3) "Non-classified" employees who withdrew from membership in the Teachers' Retirement System after July 1, 1990, under provisions of OAC 715:10-11-2.

(4) Persons employed as a consultant or persons contracting with a public school to transport students, to provide food service, or to provide any other services, who are not "regular" employees of the school. (NOTE: School bus drivers or food service personnel who are regular employees of the school are eligible for membership, subject to the requirements of OAC 715:10-1-2, 10-1-4, 10-1-5.)

(5) An employee whose primary function at a school or institution is that of a student. If both the following conditions apply, a person employed in an Oklahoma public school, college or university shall be considered to be a student employee.

(A) The employment is conditional upon the employee's being enrolled as a student at the same institution; and

(B) The employee has no other employment during the same payroll period which is eligible for membership in TRS.

(6) A regular employee who earns less than $2,000 per year.

(7) Any persons whose employment compensation comes from federal or other funds and is not administered by an Oklahoma public education employer. (Note: If the employee is not paid by the school on a state warrant, the employee is not considered to be an employee of the school or the State of Oklahoma. Regular employees whose salaries are paid in part or in whole by federal or other funds are eligible for membership if they were hired by the school and paid by the school.)

(8) Any person employed by the public schools of Oklahoma after July 1, 1991, who is covered by another federal, state, county or local public retirement plan which will provide benefits on the employment service covered by the Teachers' Retirement System.

(9) Employees of employers that are not governmental employers within the definition of Internal Revenue Code Section 414 and 70 O.S. 17-116.2J.

715:10-1-6. Date of Membership

Date of membership is the date the initial contribution is made to TRS under the current membership account. (TRS Form 1-A must be completed and on file with TRS and membership approved by the Board of Trustees.) Any former member of TRS who has previously withdrawn contributions and who redeposits said withdrawn contributions as permitted by law, shall have his or her initial date of membership reinstated. Any person who transfers service from the Oklahoma Public Employees Retirement System in accordance with 70 O.S. Supp. 1994, Section 17-116.2(L), shall be eligible to use his or her initial entry date into the Oklahoma Public Employees Retirement System as his or her date of membership in TRS. If a current member purchases non-contributory service for those years of qualified employment prior to the current date of membership, the official date of membership will remain the date the member’s current membership account was opened.

715:10-1-7. Membership in education associations

Any member absent from employment in the public schools of Oklahoma because of election or appointment as a local, state or national education association officer shall be allowed to retain membership in TRS by making the contribution required of such member by Title 70 Okla. Stat. Section 17-116.2 and any other applicable statute. For purposes of this section the following shall apply:

(1) An education association is defined as an organization of educators established for the sole purpose of promoting the advancement of educational goals in Oklahoma or at the national level. A local or state association must be duly organized under the laws of the State of Oklahoma with a charter or articles of incorporation filed with the appropriate state agency and must comply with all applicable laws of the State of Oklahoma. A national association must be duly registered or chartered for the purpose of furthering educational goals at the national level.

(2) An "officer in an association" is a current member of TRS who is elected or appointed to an employment position within the association commensurate with a position in the public schools of Oklahoma defined as "classified" personnel by 70 O.S. 17-101. The officer must receive compensation for services rendered commensurate with compensation received for similar services in the public schools of Oklahoma.

(3) A member must notify TRS in writing on the form provided by TRS, his intent to elect to continue membership in TRS within thirty (30) days of becoming employed by an eligible association. In making this election the member shall agree to make payment in accordance with 70 O.S. 17-116.2 for the period of employment that qualifies for continued membership and to comply with all statutes and rules of TRS in maintaining membership.

(4) The maximum years of creditable service a member may receive for one such absence shall not exceed eight (8) continuous years. A member may again qualify for creditable service in an educational association provided that the member returns to employment in the public schools of Oklahoma for a minimum of the same number of years received as credit in the former education association.

(5) On the recommendation of the executive secretary, the Board of Trustees may deny eligibility to any local state or national association, when it is judged not to conform with the intent of 70 O.S. 17-116.2 or when it is determined that the association was not established for the sole purpose of promoting the advancement of education.

(6) Effective July 1, 1994, a member may elect to continue membership as provided in Section (3) above only if the member has ten (10) years of contributory Oklahoma service prior to July 1, 1994.

715:10-1-8. Membership of Employees of Charter Schools

Employees of charter schools created pursuant to 70 OS § 3-130 et seq. are eligible for membership in the Teachers' Retirement System providing the governing board of the charter school applies for membership for its regular employees. Upon approval of the application for membership by the Board of Trustees all employees of the charter school shall join the Teachers' Retirement System under the same membership eligibility rules applying to employees of other public schools. Employees of charter schools shall in all circumstances follow the rules applicable to other members of the Teachers' Retirement System. Employees of charter schools that do not apply or are not approved for membership in the Teachers' Retirement System shall not be eligible for retirement service credit for years of employment performed in a non-member status and such employees shall not be eligible to purchase service at anytime subsequent to such employment.

Subchapter 3. Service Eligibility

715:10-3-1. Requirements for creditable service

All members of Teachers’ Retirement System must be employed a specified amount of time as related to their educational employment position, and earn a minimum salary, before creditable service will be awarded. Membership service credit shall be granted only when employment is performed on at least a half-time basis. No service performed as a unpaid volunteer shall be counted as service credit.

715:10-3-2. Requirements for fulltime service

A member employed at least six (6) hours per day (30 hours per week) shall be considered a full-time employee.

(1) A full-time employee may receive one (1) year of creditable service after completing six (6) months or more of employment in a school year.

(2) No member shall receive one (1) year of service credit for less than 720 hours of employment. (This does not mean that a member working 720 hours is automatically entitled to one (1) year of creditable service.)

715:10-3-3. Requirements for halftime service

A member employed at least four (4) but less than six (6) hours per day (at least 20 but less than 30 hours per week) shall be considered a half-time employee.

(1) A half-time employee may receive one-half (1/2) year of creditable service after completing six (6) months or more of employment in a school year.

(2) No member shall receive one-half (1/2) year of service credit for less than 480 hours of employment. (This does not mean that a member working 480 hours is automatically entitled to one-half (1/2) year of creditable service.

(3) A member who is employed one-half (1/2) the standard workload of other persons employed in similar positions shall not receive more than one-half (1/2) year of service credit even if total hours worked exceed 720 hours.

(4) Members who joined TRS prior to July 1, 1991, may receive one-half (1/2) credit for a minimum of three (3) hours per day (540 hours per school year) as long as they remain employed in the same or similar position for the same employing school. Any break in employment shall end this special provision and the member will be required to qualify for full-time or half-time credit as provided for in Subchapters 1 and 3 of this chapter.

715:10-3-4. Combining fractional years of service

Fractions of school terms performed as an active contributing member of TRS of at least one (1) school month, in different school years, may be combined to make a total of six (6) months for one (1) year of creditable service. It is not permissible to divide service rendered in one (1) year into fractional parts and combine these fractions with service rendered in two (2) or more years in order to gain additional years of service. All fractional service must be combined together before days of unused sick leave are applied to fractional service to obtain service credit. No more than one (1) year of credit will be given for all employment in any one (1) school year.

715:10-3-5. Minimum compensation requirements

In addition to the above, the following chart outlines the minimum salary levels which constitute membership service credit for the time periods indicated:

Subchapter 5. Establishing other service credits

715:10-5-1. Oklahoma service credit after July 1, 1943

Members may purchase credit for years of employment from July 1, 1943 to date of membership in the public schools of Oklahoma on which contributions were not remitted. One (1) full year (twelve calendar months) as a contributing member of TRS must be completed before a member may make such purchases. All purchased service must meet Teachers’ Retirement System minimum requirements for eligibility, in effect at the time of purchase, and be properly documented before purchase is allowed. Payment shall not be allowed for any employment during a school year that was less than one-half (1/2) time. All payments for past service must be made while an active contributing member of the Teachers’ Retirement System or within sixty (60) days of termination of employment in the public schools of Oklahoma. Payment for service credit must be completed prior to the effective date of retirement and cannot be purchased by any person after the death of the member. (See OAC 715:10-5-4 for cost and method of payment).

715:10-5-2. Employment as a substitute teacher in Oklahoma schools

A member of Teachers’ Retirement System who was employed as a substitute teacher may purchase credit for such employment provided they were employed for 120 days in one school year. Such service shall be considered the equivalent of one (1) year of service. Members claiming credit for such service, and who have such service documented through Teacher Personnel, State Department of Education, must pay the actuarial cost of such service as defined by OAC 715:10-5-4. The maximum creditable service granted for substitute teaching shall be five (5) years. Under no condition may substitute teaching service from one school year be combined with substitute teaching service or any other employment from another school year to obtain 120 days of substitute teaching credit. The payment for such service credit may be made in one lump sum or in equal monthly installments up to sixty (60) months, as provided in OAC 715:10-5-4(9).

715:10-5-3. Official sabbatical leave from an Oklahoma school

(a) A member may purchase credit for an official sabbatical leave performed prior to July 1, 1990, provided the member received at least one-half (1/2) pay from the employing school and the governing Board of the employing school or institution granted such leave in its official records or minutes as an "official sabbatical". Payment shall be based on the actuarial cost of such service as defined by OAC 715:10-5-4.

(b) A member may receive credit for an official sabbatical leave performed after July 1, 1990, providing the member receives at least one-half (1/2) pay from the employing school, the governing Board of the employing school or institution designates such leave as an "official sabbatical," and the member notifies the Teachers’ Retirement System in writing of his or her intent to make contributions for sabbatical leave credit. To qualify, the member must receive at least one-half pay from the employing school. Compensation from other entities will not qualify in meeting the one-half pay requirement. Contributions for such employment shall be at a rate commensurate with the salary earned as a regular full-time employee in the last preceding school year. "Official sabbatical" means paid leave granted by the governing board of the employing school or institution. The member must elect to participate and make contributions to TRS at the time of the sabbatical. Sabbatical leave cannot be purchased by the member at a later date.

715:10-5-4. Cost to purchase Oklahoma service

The purchase price for each year of Oklahoma service, unless otherwise specified, shall be based on the actuarial cost of the incremental projected benefits being purchased.

(1) The actuarial cost and any tables formulated for the purpose of determining such cost, shall be based on the actuarial assumptions adopted by the Board of Trustees to be utilized in the actuarial valuation report for the Fiscal Year beginning each July 1. New actuarial assumptions approved by the Board subsequent to January 1, 1991, shall be incorporated into such tables with an effective date of the next January 1st.

(2) The actuarial value shall be based upon the member's age, full-time equivalent salary and contribution level at the time of purchase (or the annual salary of the previous year, if greater), together with the earliest age for retirement with maximum benefits and actuarially assumed salary at time of retirement. If purchase is not made by the due date on the billing statement, the purchase must be recalculated and the actuarial cost may increase.

(3) For purposes of this actuarial cost, the member's age shall be determined as the age at last birthday.

(4) For purposes of this actuarial cost, the mortality tables shall be formulated as a unisex table assuming a 40% male and 60% female population, based on the actuarial assumptions in paragraph (1) of this section.

(5) The actuarial cost shall not be less than the contributions required of the member at a rate commensurate with the salary earned as a regular full-time employee the last preceding school year prior to the purchase. Individuals employed on a less than full-time basis shall have their salary adjusted upward, in a prorata manner, to the amount that would be earned if employed full-time.

(6) Payment may be made in a lump sum for all eligible years of service or in installments equal to establishing one (1) year of creditable service.

(7) A billing statement will be issued at the request of the member. The due date of payment shall be the date prior to the member's next birthday or June 30th, whichever occurs first.

(8) A member may request payment of past service credits billed in accordance with provisions of 70 O.S. Supp. 1993, Section 17-116.8, as amended, to be amortized in monthly installments of not more than sixty (60) months. A payment schedule may be established allowing the member to make monthly payments directly to Teachers' Retirement or through payroll deductions by the member's employer if the employer agrees to make the deductions and remit payments to Teachers' Retirement. Payments remitted by an employer for its employees must be kept separate from the employer's regular retirement contributions and tax sheltered annuity deposits. Effective January 1, 2002, installment payments made through employer payroll deductions qualify for special tax treatment. (See OAC 715:10-5-35.)

(9) The installment payment schedule provided for in this section must be in equal monthly increments of twelve-month periods not to exceed sixty (60) months. The member shall be responsible for maintaining the payment schedule. Payments are due on the first day of each month. A monthly installment not paid within sixty (60) days of the due date will result in termination of the installment payment schedule with the member given the option of paying the balance of the actuarial cost or receiving partial credit for payments made under the installment schedule as provided for in paragraph (11) of this section.

(10) The monthly payment will be determined by amortizing the total amount due for the service to be purchased over the period of the installment schedule using an interest rate equal to the actuarially assumed interest rate adopted by the Board of Trustees for investment earnings each year. The current interest rate is eight percent (8%).

(11) If the installment payment is terminated for any reason, including termination of employment, death of the member or by cessation of payments, the member or his beneficiary will have the option of paying the remaining balance within six (6) months. If the balance is not paid, the member will receive credit for service prorated in whole years for only the principal amount paid. Any payment balance that is not used in crediting whole years will be refunded to the member.

(12) Credit will not be awarded for partial years of service unless the member's employment record is such that one-half (1/2) year of credit is included in the original service to be purchased.

(13) Credit for service purchased on an installment schedule will not be added to the member's account until the entire balance is paid, except as provided for in paragraph (11) of this section. All payments must be completed one (1) month prior to the effective retirement date of the member.

715:10-5-5. Oklahoma service performed prior to July 1, 1943 [REVOKED]

715:10-5-6. Verification of Oklahoma service before membership

All requests for previous or prior Oklahoma service must be properly documented. Verification of such service is the responsibility of the member. Teachers’ Retirement System "Verification of Oklahoma Service" form must be completed by the current superintendent, business manager, secretary of the school board or treasurer of the school board of the school where the service was performed.

(1) An application for past Oklahoma service must be accompanied by documentation consisting of one of the following:

(A) Actual Payroll Registers - which must show names of employer/employee; employee’s Social Security Number; and monthly salary.

(B) A Social Security Detailed Earnings Information Record - which must include employer and salary by calendar year.

(C) W-2 Tax Records - Actual copies for each calendar year needed or photocopies of state income tax returns.

(2) Teachers’ Retirement System will review and consider other supporting documentation in conjunction or in lieu of the above. The executive secretary will rule on the acceptability of all documents presented by members or employing schools in determining credit for past service.

(3) Under no circumstance will TRS accept affidavits from school officials, co-workers or third parties to attest service performed by a member.

715:10-5-7. Credit for service in other Oklahoma public retirement systems

A member of the Teachers' Retirement System of Oklahoma may receive credit for employment covered by the following Oklahoma public retirement systems: the Oklahoma Firefighters Pension and Retirement System, the Oklahoma Police Pension and Retirement System, the Uniform Retirement System for Justices and Judges, the Oklahoma Law Enforcement Retirement System, Oklahoma Department of Wildlife, and the Oklahoma Public Employees Retirement System (OPERS). Such service must meet the minimum Teachers' Retirement System membership requirements. (See Subchapter 3)

(1) After one full year (twelve calendar months) of Teachers' Retirement System contributory service, a member is eligible to purchase service credited in another State retirement system. A certification of service form must be completed by the member's former State retirement system. The certification must show: the date of withdrawal, the salary by fiscal school year, and the total amount of credited service. It shall be the responsibility of the member to notify TRS of intent to claim such service and obtain proper documentation from the member's former State retirement system.

(2) Employment which did not qualify for membership in the former State retirement system shall not qualify for credit in TRS.

(3) Employment performed prior to the establishment of the State retirement system for the employment class shall not cause membership in TRS to be denied, however, the type of service rendered must be accepted by the appropriate State retirement system if the member were now enrolled in that retirement system.

(4) The purchase price for each year of such service shall be based on the actuarial cost of the incremental projected benefits being purchased (see OAC 715:10-5-4).

(5) Under no circumstances can the purchased creditable service exceed the total service verified or the amount of credit given by the former retirement system.

(6) Once purchased, the other State service counts towards vesting, eligibility for retirement, and final average salary. However, the last year in the member's account immediately preceding retirement must be with a public education employer that participates in Teachers' Retirement System.

(7) The member shall not be receiving, or be eligible to receive, retirement credit or benefits from said service in any other public retirement system.

715:10-5-7.1. Transfer of service credit from the Oklahoma Public Employees Retirement System

(a) An active member of the Teachers' Retirement System may receive credit for those years of service accumulated by the member while a member of the Oklahoma Public Employees Retirement System, provided he or she is not receiving or eligible to receive retirement credit or benefits from said service in any other public retirement system, notwithstanding the years of service sought to be transferred under this section. The member must be an active contributing member of the Teachers' Retirement System at the time application is made.

(b) A member of the Oklahoma Public Employees Retirement System who becomes a member of the Teachers' Retirement System of Oklahoma because of employment by an entity or institution within the Oklahoma State System of Higher Education, State Board of Education, Oklahoma Department of Career and Technology Education, Oklahoma School of Science and Mathematics, Oklahoma Center for the Advancement of Science and Technology, State Department of Rehabilitation Services, Oklahoma State Regents for Higher Education, Department of Corrections, State Department of Education, Oklahoma Board of Private Vocational Schools, Board of Regents of Oklahoma Colleges, Oklahoma Student Loan Authority, or the Teachers' Retirement System of Oklahoma may transfer to the Teachers' Retirement System credit for years of service accumulated in the Oklahoma Public Employees Retirement System.

(c) The member must file a notice with the Oklahoma Public Employees Retirement System and the Teachers' Retirement System of his or her election to transfer service credit. The notice must include a list of the years to be transferred and the member's social security number or other identifying information that may be required by either retirement system to locate and evaluate the member's service credit. Qualifying service accumulated as a member of the Oklahoma Public Employees Retirement System shall be accepted as service credit in the Teachers' Retirement System, subject to any statutory limitations, except for any service credited to the Oklahoma Public Employees Retirement System which is derived from less than one year of employment in any school year for which the member also receives a year of service credit from the Teachers' Retirement System, unless said service credits are earned as a result of simultaneous employment with separate participating employers of the systems.

(d) Except for members transferring credit as provided in subsection (b) of this section, the Teachers' Retirement System, within thirty (30) days of receipt of notification of an intent to transfer service to the member's account, shall determine the present value of the member's incremental projected benefit discounted according to the member's age at the time of the transfer. This determination shall be computed at the earliest age at which the member would be able to retire and calculated in accordance with OAC 715:10-5-4 and 70 O.S. Section 17-116.8. Said computation shall assume an unreduced benefit and be computed using interest, salary projections and mortality assumptions consistent with the actuarial assumptions adopted by the Board of Trustees for purposes of preparing the annual actuarial evaluation. Upon completion of said determination, the Teachers' Retirement System shall notify the member and the Oklahoma Public Employees Retirement System of the cost to transfer service. If the cost to the Teachers' Retirement System of the actuarial value of the incremental benefit is greater than the cost as calculated for the same years of service in the Oklahoma Public Employees Retirement System, the employee, except as provided in subsection (b) of this section, shall elect to pay any difference to receive full credit for the years sought to be transferred, or receive prorated service credit for only the amount received from the Oklahoma Public Employees Retirement System. Such an election shall be made in writing, filed with the System prior to receiving the credit provided for in this section, and shall be irrevocable.

(e) Upon receipt of all monies transferred by the Oklahoma Public Employees Retirement System, the Teachers' Retirement System shall credit the member's account for the deposit and notify the member of any additional payment due to complete the transfer. Except as provided in subsection (b) of this section, the member is required to pay any difference between the amount determined in subsection (d) of this section and the amount received from the Oklahoma Public Employees Retirement System within sixty (60) days of notification by Teachers' Retirement unless the member elects monthly installments and pays the balance due in accordance with OAC 715:10-5-4.

(f) Except as provided by subsection (b) of this section, any member who ceases to make payment, terminates, retires or dies before completing the payments provided for in this rule shall receive prorated service credit for only those payments made, unless the unpaid balance is paid by said member, his or her estate or successor in interest within six (6) months after said member's death, termination of employment or retirement, provided no retirement benefits shall be payable until the unpaid balance is paid, unless said member or beneficiary affirmatively waives the additional six-month period in which to pay the unpaid balance.

(g) Notwithstanding the provisions of subsection (f) of this section, if any member fails for any reason to satisfy the requirements of this rule, the election to transfer service credit shall be void and of no effect, and any service credited as a result of this transfer shall be canceled. Teachers' Retirement shall return to the Oklahoma Public Employees Retirement System any monies transferred for the canceled service.

(h) Years of service transferred pursuant to this rule shall be used in determining the member's retirement benefit. Participating service, as defined by the Oklahoma Public Employees Retirement System, shall be credited to the member's account for purposes of vesting his or her account under OAC 715:10-7-1. A member who joined the Teachers' Retirement System on or after July 1, 1992, and transfers service credit for employment performed as a member of the Oklahoma Public Employees Retirement System on or before July 1, 1992, shall receive credit for such service as if the service were performed as a member of the Teachers' Retirement System, and the member's eligibility for retirement shall be determined as if the member had been a member of the Teachers' Retirement System from the date of such service.

715:10-5-7.2. Transfer of service credit to the Oklahoma Public Employees Retirement System

(a) Any member of the Teachers' Retirement System, who is an active member of the Oklahoma Public Employees Retirement System, may file a notice of election to transfer credit for those years of service accumulated by the member while a member of the Teachers' Retirement System.

(b) A member of the Teachers' Retirement System whose last qualifying employment was with an entity or institution within the Oklahoma State System of Higher Education, State Board of Education, Oklahoma Department of Career and Technology Education, Oklahoma School of Science and Mathematics, Oklahoma Center for the Advancement of Science and Technology, State Department of Rehabilitation Services, Oklahoma State Regents for Higher Education, Department of Corrections, State Department of Education, Oklahoma Board of Private Vocational Schools, Board of Regents of Oklahoma Colleges, Oklahoma Student Loan Authority, or the Teachers' Retirement System of Oklahoma may transfer to the Oklahoma Public Employees Retirement System credit for years of service accumulated in the Teachers' Retirement System.

(c) The member must file a notice with the Teachers' Retirement System and the Oklahoma Public Employees Retirement System of the member's election to transfer service credit. The notice must include a list of the years to be transferred and the member's social security number or other identifying information that may be required by either retirement system to locate and evaluate the member's service credit.

(d) Within thirty (30) days of receipt of notification of the member's intent to transfer service to the Oklahoma Public Employees Retirement System, the Teachers' Retirement System shall:

(1) determine the sum of the employee and employer contributions applicable to the years of service sought to be transferred plus interest consistent with the actuarial assumptions adopted by the Board of Trustees for purposes of preparing the annual actuarial evaluation, and

(2) if the member has a vested account with the Teachers' Retirement System, calculate the present value of the service to be transferred, discounted according to the member's age at the time of transfer.

(e) For purposes of this section, employer contributions apportioned to each member for each fiscal year shall be determined as a percentage of revenue received from the tax on natural gas and contributions from local employers required by 70 O.S. 17-108.1 divided by the annual payroll of active members of the Teachers' Retirement System. Total revenue from the tax on natural gas and local employers shall be apportioned to active members as a percentage of the actuarial present value of future benefits for active members divided by the actuarial present value future benefits for all members of the Teachers' Retirement System. The Board of Trustees shall approve a separate schedule using this computation for each fiscal year.

(f) The computation defined in paragraph (2) of subsection (d) of this section shall assume an unreduced benefit and be computed using interest and mortality assumptions consistent with the actuarial assumptions adopted by the Board of Trustees for purposes of preparing the annual actuarial evaluation but shall not make any projections regarding future salary.

(g) Upon completion of the computation(s) defined in subsection (d) of this section, the Teachers' Retirement System shall notify the member and the Oklahoma Public Employees Retirement System of the amount to be transferred. Except as provided in subsection (b) of this section, said amount shall be the greater of the product of paragraphs (1) and (2) of subsection (d) of this section. For those members included in subsection (b) of this section, the Teachers' Retirement System shall transfer to the Oklahoma Public Employees Retirement System is amount as calculated in paragraph (d)(1) of this rule.

(h) Upon notification from the Oklahoma Public Employees Retirement System that the requirements of the transfer have been completed, the Teachers' Retirement System shall, within sixty (60) days, remit to the Oklahoma Public Employees Retirement System the lesser of the amount calculated under subsection (f) of this section, or the amount certified by the Oklahoma Public Employees Retirement System that is necessary to effect said transfer.

(i) A former member of the Teachers' Retirement System may redeposit any previously withdrawn account for the purpose of transferring the former member's service credit to the Oklahoma Public Employees Retirement System. The former member shall remit to the Teachers' Retirement System the amount of accumulated contributions the member has withdrawn plus simple interest of ten percent (10%) per annum prior to making the election. The deposits made by the former member will reestablish his or her account in the Teachers' Retirement System and that amount will become part of the amount to be transferred as determined in subsection (d) of this section. If the election is deemed invalid and the transfer is canceled, the accumulated contributions plus interested remitted to the Teachers' Retirement System shall be returned to the member. No additional interest will be paid by the Teachers' Retirement System in such cases.

(j) All service credit accumulated by the member in the Teachers' Retirement System shall be canceled upon the transfer of any service credit. The member shall forfeit all rights to retirement benefits or service credits in the Teachers' Retirement System, and shall be considered to have withdrawn from the Teachers' Retirement System.

(k) If for any reason the member fails to satisfy the requirements of this transfer, the election to transfer service credit shall be void and of no effect, and the Oklahoma Public Employees Retirement System shall return all monies previously remitted in the member's behalf. The member's account in the Teachers' Retirement System will be reestablished at the same level as before the transfer was initiated.

715:10-5-7.3. Service credit transfers for TRS members who are CLEET-certified employees of the University of Oklahoma and Oklahoma State University

(a) A Teachers' Retirement System member employed by the University of Oklahoma and/or Oklahoma State University as a CLEET-certified police officer may make an irrevocable written election to transfer his or her membership to the Oklahoma Law Enforcement Retirement System if the school's governing board elects to participate in the Oklahoma Law Enforcement Retirement System.

(1) The member must have been employed by the school as a CLEET-certified police officer before the school's governing board elected to participate in the Oklahoma Law Enforcement Retirement System.

(2) The member's election to transfer must be made within three (3) months following the employing school's governing board's election to participate in the Oklahoma Law Enforcement Retirement System.

(3) The transferring member shall cease accruing service credit in the Teachers' Retirement System on the date of his or her irrevocable written election to participate in the Oklahoma Law Enforcement Retirement System.

(b) The Teachers' Retirement System shall transfer to the Oklahoma Law Enforcement Retirement System all of the transferring member's TRS records, as well as employee and employer contributions prior to the first day of the month following the Teachers' Retirement System's receipt of the member's election to transfer.

(c) The member must pay the difference in the cost of the service credits transferred by the teachers' Retirement System and the cost of such service credits in the Oklahoma Law Enforcement Retirement System

(d) For members electing to transfer to the Oklahoma Law Enforcement Retirement System, all TRS service credits not transferred shall be canceled.

715:10-5-8. Revocation of $7,800 waiver

Any member who elected to contribute on $7,800 prior to January 1, 1978, whose salary was more than $7,800 during the school years 1974-75 through 1978-79, may elect to make back contributions on the difference between $7,800 and the member’s actual salary, not to exceed $10,000 for each applicable school year, plus interest compounded annually at ten percent (10%) per annum. Such payment shall be made prior to the official retirement date of the member.

715:10-5-9. Re-establishing withdrawn service

After returning to employment in the public schools of Oklahoma a member may redeposit a withdrawn account to re-establish service previously withdrawn from the system. For purposes of this section the following shall apply:

(1) A "classified" and "non-classified" member (except as noted in paragraphs 2 and 3 of this section) who has returned to public education employment and has established one full year (twelve calendar months) of creditable Oklahoma service, is eligible to redeposit withdrawn contributions. A redeposit of withdrawn contributions must include all applicable interest, which shall be computed at a simple interest rate of ten percent (10%) per annum from the date of the withdrawal to the date repayment is made.

(2) Nonclassified members who voluntarily withdrew from membership in TRS, subsequent to July 1, 1990, without terminating employment in the public schools of Oklahoma, are not eligible to return to membership unless they become employed in a classified position that requires membership as a condition of employment (See OAC 715:10-1-3).

(3) Non-classified members who voluntarily withdrew from membership in TRS, between July 1, 1984 and June 30, 1990, without terminating employment in the public schools of Oklahoma, are not eligible to redeposit or purchase past service for any period of employment between the date of the membership period covered by the withdrawn account and the date of return to membership in TRS.

(4) Non-classified members who voluntarily cease monthly contributions to TRS while continuing to be employed in an eligible position shall be considered to have withdrawn from membership for the purpose of paragraphs 2 and 3 of this section.

(5) Requests for redeposits should be made to the Teachers' Retirement System in writing. The request must include the name in which the service was rendered, the Social Security number and the number of years withdrawn.

(6) Documentation of this service is on file in the Teachers' Retirement System office and will be verified by the staff. Service that cannot be documented by researching microfilm records of the member's prior service account or the monthly remittance reports from the employing school must be purchased under the rule for establishing service prior to membership.

(7) Repayments of withdrawn accounts may be made by active contributing members of TRS in a single lump sum, which includes the withdrawn contributions and all applicable interest, or in installment payments. Such installment payments may be paid in 12-month increments, but shall be completed within 60 months. Installment payments shall include interest based upon actuarial assumptions adopted by the TRS Board of Trustees. Such installment payments shall be completed before the member's effective retirement date. No proration is allowed for partial payments. If payments terminate prior to completion of the installment agreement, the amount paid by the member shall be refunded without interest.

(8) Redepositing of withdrawn accounts must be completed, and payment made to TRS, within sixty (60) days of termination of employment in the public schools of Oklahoma, but one (1) month prior to the effective date of a member's official retirement date.

(9) No person may make a redeposit to a member's account after the death of the member.

715:10-5-10. Military service credit

An active contributing member of TRS may purchase credit for active duty service in the Armed Forces of the United States of America. The member must have received an honorable discharge from the Armed Services to qualify for military service credit. Active duty is defined as that time a member served in the Armed Forces of the United States of America from the date inducted to the date of separation. (Time spent between enlistment and induction, or other time spent as a civilian between military service periods, will not be counted as military service.) Credit for military service shall not exceed the number of years obtained when the total months of service are applied to calendar years (January1 to December 31 periods). Therefore, thirty-six (36) months of military service cannot count for more than three (3) years of TRS membership; forty-eight (48) months cannot count for more than four (4) years; etc.

715:10-5-11. Military service limited to maximum of five years

Credit for military service is limited to a maximum of five (5) years. This includes service both before and after July 1, 1943. No credit may be given for any year of military duty which duplicates any other credit already granted or in which a year of creditable service is available for service in the public schools of Oklahoma. The member must have two (2) years of creditable Oklahoma service after the years of military service credit for each year to be purchased. Out-of-state service credit cannot be counted as employment in obtaining military service credit.

715:10-5-12. Military service performed prior to July 1, 1943 [REVOKED]

715:10-5-13. Military service performed after July 1, 1943

Military service performed after July 1, 1943, may be purchased for any school year in which the member served on active duty for a minimum of six (6) months or 180 days, whichever affords the maximum benefit to the member. Time spent as a reservist at summer camps, or weekend-duty obligations, shall not be counted.

715:10-5-14. Military service combined with Oklahoma service

Active duty service after July 1, 1943 can be combined with Oklahoma service performed in the same school year to obtain one year of service. The combined service must total one hundred eighty (180) days. If the Oklahoma service to be combined with military service was not as an active contributing member of TRS, the member must have worked a minimum of ninety (90) school days in Oklahoma public schools. Any military service combined with Oklahoma service counts as one (1) year toward the maximum service allowed for military service credit.

715:10-5-15. Application for military service

Members desiring to obtain credit for military service credit should request in writing to be billed for the cost of the credit. Included with the request should be a certified copy or copies of the member's service record showing the dates and nature of the member's active military duty [Form DD-214, Form DD-217 or VA Certification of Active Duty is the type of certification accepted as documentation of active duty military service]. TRS may require the member to make available to it such other evidence as may be required to establish the member's eligibility for military service. When the system determines the duty eligible for credit, it shall bill the member for the years of eligible credit. If the member becomes eligible for additional credit after the billing by TRS it shall be the responsibility of the member to request a second billing. Payment must be made by the date shown on the billing statement to avoid additional charges that may be required after the expiration of the billing date.

715:10-5-16. Cost to purchase military service

(a) The purchase price for each year of military service defined in OAC 715:10-5-13 shall be based on the actuarial cost as defined in OAC 715:10-5-4, except as provided in paragraph (b) of this rule. All payments for such service must be made while an active contributing member of TRS, or within sixty (60) days of termination of employment in the public schools of Oklahoma, but must be completed prior to the effective date of retirement. No person may purchase military service credit after the date of death of the member.

(b) In the event an active contributing member is called to active military duty, he or she shall be allowed to make contributions for benefits and service credits with respect to "qualified military service", in accordance with Section 414(u) of the Internal Revenue Code of 1986 and the Uniformed Services Employment and Re-employment Rights Act of 1994.

715:10-5-17. Adjustment for military service after retirement

All credit for active military duty perform after July 1, 1943, must be purchased prior to the official retirement date of the member. No credit or adjustment will be made to a member’s account after retirement unless evidence points to a clear and convincing error on the part of TRS staff. The Executive Secretary will rule on the circumstances when such cases arise. Credit for active military duty will be accepted for eligible service prior to July 1, 1943, when evidence of such service is provided to TRS. An adjustment in the monthly retirement benefits of the member will be made beginning with the next check due if proper documentation is received by TRS by the 15th of the month. The adjustment in benefits shall not be retroactive.

715:10-5-18. Other restrictions on military service

Military service performed after the last year of Oklahoma membership service shall not qualify as military service. A member who returns to Oklahoma public education employment after serving in the military shall purchase that military service in the same manner as a new member of TRS: i.e., the member must have two (2) years of Oklahoma service after the military service for each year of military service purchased. No military service can be used to meet the minimum requirement of ten (10) full years of employment in the public schools of Oklahoma to qualify for vesting and retirement benefits.

715:10-5-19. Out-of-state service credit

An active, contributing member of TRS may obtain out-of-state service credit for qualified employment in public educational institutions outside the State of Oklahoma which are maintained in whole or in part by one of the states of the United States of America, the territories of the United States of America, or by a Military Dependent School operating under the Department of Defense of the United States of America, or while in the Peace Corps, providing he or she is not receiving and is not eligible to receive retirement credit or benefits from said service in any other public retirement system of this state, or any other state or territory of the United States. Qualifying employment requirements shall be the same as in the public schools of Oklahoma. Employment service deemed ineligible for membership service in Oklahoma shall not qualify for out-of-state service credit under any conditions. Time of employment and salary requirements for service credit for out-of-state shall be the same as membership service and prior service credit in Oklahoma (see subchapter 3 of this chapter). The member's out-of-state service must have been covered by and credited in the employing state's public retirement system to be eligible for service credit in TRS.

715:10-5-20. Out-of-state service performed prior to July 1, 1943 [REVOKED]

715:10-5-21. Out-of-state service performed after July 1, 1943

Qualifying out-of-state service credit performed after July 1, 1943 may be purchased by any member of TRS where the member was employed as a full-time employee for a minimum of six (6) months or more during any one (1) school year, subject to the restrictions in OAC 715:10-5-19.

715:10-5-22. Out-of-state service limited to maximum of five years

Credit for out-of-state service is limited to a maximum of five (5) years. This includes credit for service both before and after July 1, 1943. No credit may be given for any year of out-of-state service which duplicates any other credit already granted or in which a year of creditable service is available for service in the public schools of Oklahoma. The member must have two (2) years of creditable Oklahoma service after each year of out-of-state service purchased. Military service credit cannot count as employment in obtaining credit for out-of-state service credit.

715:10-5-23. Out-of-state service combined with Oklahoma service

Qualifying out-of-state service after July 1, 1943 can be combined with Oklahoma service performed in the same school year to obtain one year of service. The combined service must total one hundred twenty (120) days of employment, excluding preschool conference, holidays or other days when the member was not required to report to work. If the Oklahoma service to be combined with out-of-state service was not as an active contributing member of TRS, the member must have worked a minimum of ninety (90) days in Oklahoma public schools. Under no condition may out-of-state service performed in one school year be combined with Oklahoma service in a different school year. Any service combined with Oklahoma service counts as one (1) year toward the maximum service allowed for out-of-state service credit.

715:10-5-24. Continuous, consecutive out-of-state service

Continuous consecutive out-of-state service performed in two (2) school years may be combined to receive a year of out-of-state service credit. Continuous consecutive service shall mean service performed as a full-time employee of a public school of another state without any break in employment between one school year and the next. A member employed the second semester of one school year and the first semester of the next school year may qualify for one (1) year of out-of-state credit. Under no condition shall a member receive more credit for out-of-state service than the member would have accrued had the service been performed in the public schools of Oklahoma.

715:10-5-25. Application for out-of-state service

Members desiring to obtain credit for out-of-state service credit should request in writing TRS Form 120 Verification of Out-of-State Service. Included with the request should be a list of all employment in the public schools of other states. (This will assist TRS staff in forwarding the appropriate number of application forms.) Verification forms must be completed by the state retirement system for the employing state. TRS may require the member to make available to it such other evidence as may be required to establish the member's eligibility for out-of-state service. When the system determines the service eligible for credit, it shall bill the member for the years of eligible credit. If the member becomes eligible for additional credit after the billing by TRS it shall be the responsibility of the member to request a second billing. Payment must be made by the date shown on the billing statement to avoid additional charges that may be required after the expiration of the billing date.

715:10-5-26. Cost to purchase out-of-state service

The purchase price for each year of out-of-state service defined in OAC 715:10-5-21 shall be based on the actuarial cost as defined in OAC 715:10-5-4. All payments for such service must be made while an active contributing member of TRS, or within sixty (60) days of termination of employment in the public schools of Oklahoma, but must be completed prior to the effective date of retirement. No person may purchase out-of-state service credit after the date of death of the member.

715:10-5-27. Other restrictions on out-of-state service

Out-of-state service performed after the last year of Oklahoma membership service shall not qualify as out-of-state credit. A member who returns to Oklahoma public education employment after working out-of-state shall purchase that out-of-state service in the same manner as a new member of TRS: i.e., the member must have two (2) years of Oklahoma service after the out-of-state service for each year of out-of-state service purchased. No out-of-state service or salaries shall be utilized for the calculation of a member’s final average salary at retirement. No out-of-state service can be used to meet the minimum requirement of ten (10) full years of employment in the public schools of Oklahoma to qualify for vesting and retirement benefits.

715:10-5-28. Sick leave service credit

A member, who has one hundred twenty (120) days of accumulated unused sick leave days at retirement shall receive one (1) year of additional credit toward retirement. A member who has less than one hundred twenty (120) days of unused sick leave at retirement may add such days to days employed by the public schools of Oklahoma in obtaining an additional year of credit toward retirement. It is the responsibility of the member to obtain verification of sick leave from the employing school prior to the member’s official retirement date. No adjustment in retirement benefits shall be made for sick leave documented after the member’s retirement date. Sick leave cannot be combined with out-of-state, military service or any non-public Oklahoma school employment to obtain additional credit toward retirement. Service credit obtained by unused sick leave may be used in qualifying for retirement benefits under the "Combination of 80" and "Combination of 90" rule. For any member who joined TRS prior to July 1, 1995, the year of credit received for sick leave shall be treated as service earned prior to July 1, 1995. Unused sick leave may not be used to vest an account or to meet the minimum requirement of five (5) years of employment in the public schools of Oklahoma to qualify for retirement benefits. Sick leave accumulated while employed by any employer other than a public school as defined by 70 O.S. 17-101 shall not be counted for purposes of obtaining additional retirement credit under this rule.

715:10-5-29. Verification of accumulated sick leave

Sick leave can only be verified on termination of employment, or when filing a retirement contract. The verification must be made by the superintendent, financial officer, clerk of the board of education, or treasurer of the school district who must attest to the accuracy of the records used to make the verification. The verification must be based on records maintained and available at the local school and must be in keeping with local board policy. TRS will accept the employer's sick leave policy of awarding sick leave, however, in no instance will TRS accept more than fifteen (15) days of unused accumulated sick leave for any one (1) school year. An employer may not grant additional sick leave for the purpose of establishing, or adding to, the member's total service credit. Sick leave donated by other employees cannot be added to a member's sick leave record for purposes of this rule. The System may require the employing school to make available to it such other evidence as may be required to establish the member's eligibility for sick leave credit. Unused sick leave can be accumulated from the date of employment in the public schools of Oklahoma, or August 1, 1959, whichever occurred last, to the date of termination of employment in the public schools of Oklahoma. Reimbursements received by a member for unused sick leave accumulated prior to retirement shall not be considered as "regular annual compensation" as defined in OAC 715:10-13-1 and not subject to TRS contributions as provided for in Subchapter 13 of this chapter. (NOTE: Employers are encouraged to establish a system of tracking total days earned and used, even when the total days credited exceed the maximum limit set for local policy.)

715:10-5-30. Ten-year averaging of sick leave

When a member cannot obtain documentation of accumulated sick leave because records at the employing school(s) are not available, TRS will calculate an average using the last ten (10) years of employment. The number of days absent each year during the last ten (10) years shall be averaged to determine the average number of sick leave days used each year. The average sick leave used will be subtracted from a standard ten (10) days per school year and the difference multiplied by the total years of creditable Oklahoma membership service.

715:10-5-31. Documentation of service

TRS reserves the right to require documentation of all service years credited to a member’s account.

(1) Members who are claiming eligible service after the school year in which it was actually rendered must verify the claim on the appropriate Teachers’ Retirement System form. The specific documentation required will depend on the type of service being purchased. Under no circumstances will affidavits be accepted as documentation.

(2) The ultimate responsibility for obtaining verification of service is that of the member.

(3) The correctness of the service must be certified on the appropriate form by an official of the school where the service was rendered. This can be done by the superintendent, business manager, secretary of the school board, or treasurer of the school board at the time the certification is made. The certification must be based upon existing records maintained by the school and certified copies of these records must be attached to the application.

(4) TRS will also accept federal or state tax records, or Detailed Earnings Information records from the Social Security Administration, as supporting documentation of employment where records cannot be obtained from the employing school, or where the records available are not deemed to be conclusive.

(5) No credit may be granted unless clear and convincing proof of eligible service has been provided from a source other than the applicant member. A conclusion that clear and convincing proof has not been provided should in no way be construed as a challenge to the member’s or any other affidavit’s truthfulness and integrity.

(6) The executive secretary of TRS shall be empowered to determine the completeness of documents submitted by a member in establishing service credit.

715:10-5-32. Roll-overs from other qualified plans or conduit IRAs

Credit for past service, including redeposits of withdrawn Oklahoma service, defined in this subchapter may be purchased with roll-overs from another retirement plan if allowed by the Internal Revenue Code. This includes "conduit IRAs" which have been established with funds received from a 401(a) plan distribution for the purpose of holding the funds separate until a rollover can be consummated, traditional IRAs, 403(b) tax-deferred annuity plans, 401(k) and 457 deferred compensation plans. For a roll-over payment to be accepted by Teachers' Retirement the following conditions must be met:

(1) The member should contact Teachers' Retirement to obtain a billing statement for the service to be purchased and convey the intent to make total or partial payment by a roll-over.

(2) The member must obtain written documentation from the originating institution verifying the amount of the distribution and that the monies came from a qualified plan under the Internal Revenue Code.

(3) The roll-over check from the qualified plan must be made payable to the Oklahoma Teachers' Retirement System, For Benefit Of and the member's name. The member must deliver the check to Teachers' Retirement with the required documentation and the billing statement for the service to be purchased. Teachers' Retirement will only accept payment for the amount of the billing statement. If the distribution from the originating institution is greater than the billing, the originating institution must be willing to generate a check payable to Teachers' Retirement for the exact amount of the billing statement. If the distribution from the originating institution is less than the billing, a personal check or cashier's check must accompany the roll-over proceeds, or the member may pay the balance through an installment payment plan. Payments in excess of the billing will not be accepted.

(4) A receipt for the payment will be issued after Teachers' Retirement has determined all documentation and the appropriate amount of funds have been received.

(5) Roll-overs must comply fully with the Internal Revenue Code and applicable Internal Revenue Service regulations.

715: 10-5-33. Credit for Family Leave

(a) A full-time teacher who takes ninety (90) or fewer days of leave without pay to care for his or her child during the first year of the child's life shall receive retirement service credit for the days taken as leave without pay if:

(1) the employing district certifies to the Teachers' Retirement System that the employee's leave without pay was taken with the proper approval of the employing district's Board of Education; and

(2) the Teachers' Retirement System receives payment for the actuarial cost of the service credit for the days taken as leave without pay;

(b) The teacher shall notify his or her employer and the Teachers' Retirement System in writing within thirty (30) days from the date he or she returns to work that he or she will pay the actuarial cost of the service credit for the days taken as leave without pay.

(c) The teacher shall have up to twelve (12) months from the date he or she returns to work to pay the actuarial cost for the days taken as leave without pay.

715: 10-5-34. Credit for Adjunct Service

(a) A Teachers' Retirement System member who was employed in an adjunct position in an institution under The Oklahoma State System of Higher Education before joining the Retirement System may purchase service credit for that employment.

(b) The member may purchase one year of service credit for each school year in which he or she worked a minimum of eighteen (18) credit hours in such an adjunct position, up to a maximum five (5) years. Such purchased service credit shall be considered contributing service for vesting and retirement.

(c) The purchase price for eligible adjunct service credit shall be based upon actuarial cost as defined in OAC 715:10-5-4. All payments for such service credit must be made while the member is an active contributing member or within sixty (60) days after the end of the member's employment in the public schools in Oklahoma, and must be completed before the member's effective retirement date. No person may purchase service credit for such adjunct employment after the member's death.

(d) The payments for such service credit may be made in one lump sum or in equal monthly installments for up to sixty (60) months, as provided in OAC 715:10-5-4 (9).

715:10-5-35. Employer pick-up of purchase of service credit

(a) The purpose of OAC 715:10-5-35 is to provide a pick-up of employee contributions by participating employers under Section 414(h)(2) of the Internal Revenue Code of 1986 for contributions that are made for the purpose of purchasing service credit