Skip to Credited Service Annual Salary (Regular Annual Compensation)
For retirement purposes, annual salary (regular annual compensation) is each member's wages and fringe benefits. Fringe benefits include, but are not limited to, employer-paid group health, dental and life insurance, annuities and pension contributions. Generally, regular annual compensation is the same as an employee's total pay package as specified in the employment contract if applicable. Regular Annual Compensation also includes any voluntary tax-deferred deductions a member chooses to have deducted from his or her monthly pay.
Note: TRS members whose health insurance is reimbursed by the state under provisions of the Flexible Benefit Act is not included in the member pay or retirement purposes.
All TRS members must continue to contribute seven percent on regular annual compensation, up to their maximum compensation level. Regular annual compensation is defined in statutes as wages and fringe benefits.
The maximum compensation level (for contribution purposes) for TRS members employed prior to June 30, 1995 by the University of Oklahoma and its constituent agencies or by Oklahoma State University and its constituent agencies, is $72,500 or $89,000 for the 2005-06 school year, depending upon the salary cap election made prior to June 30, 1995. The salary cap for these members will increase $5,000 per year through the 2006-2007 school year.
All other TRS members, including members at OU and OSU who were employed after June 30, 1995 and members employed by other higher education entities, will contribute on total salary and benefits.
Calculating Regular Annual Compensation
Regular annual compensation is the wages and benefits on which each member's contribution to TRS is based. Generally, regular annual compensation will include the member's monthly gross salary, including pay for extra duties, stipends and regular fringe benefits provided by the school.
Fringe benefits include group health, disability and life insurance, retirement contributions, tax-sheltered annuities, other pension plan contributions and any other fringe benefits paid by the employer on behalf of the member that are provided on a periodic basis to all qualified employees of the school.
The employer statutory contribution, matching contributions paid by the school and reimbursements to members for expenses or expense accounts and rent payments are not to be included as regular annual compensation. Any payment made because of termination or retirement, such as lump-sum payments for unused vacation and/or sick leave, retirement bonuses or contract buy-outs are not regular annual compensation.
All regular pay for any employment must be included in regular annual compensation. Wages paid to a teacher who also drives a school bus and any pay for sponsoring extra-curricular activities are regular annual compensation. Pay for non-periodic work, such as working concession stands, taking tickets at athletic events, working at football or basketball camps, reimbursement for attending workshops or extra duties that are non-periodic in nature, are not regular annual compensation. Payment for homebound or detention is not included. Payment for after-school daycare when the employee works every day is included.
Employer Statutory Contribution
Employers are required by law to contribute a percentage of applicable employee earnings. The employer statutory contribution rate has been 7.05 percent since the 2002-03 school year. Employer contributions are in addition to the contribution required by the employee and any matching monies required when federal funds or private grants are used to pay a member's salary. Employer statutory contributions must be remitted monthly along with the member's contribution. The employer's 7.05 percent contribution will not be deposited into a member's account and will not affect a member's regular annual compensation.
Contributions Made by an Employer on Behalf of a Member
Any school district, state college or university, state Board of Education, state Board of Vocational Education or other state agency may, on behalf of any member of TRS, pay all or any portion of the member's TRS contribution. Contributions made by the employer for a member must be reported in the employer paid (pre-tax) column of the monthly remittance report. The contributions outlined under employer statutory contributions are required even if the employer elects to pay all or part of the employee contribution.(See 70 O.S 17-108.1(D))
Contributions for Part-Time Employees
Membership in TRS is limited to regular employees working half-time or more. However, any employee working less than half-time must be included when they are employed by another school district as a regular employee who qualifies and is a member of TRS.
Matching Contributions on Salaries Paid by Federal Fund or Grants
Credited Service
Credited service is the accumulated service each member has attained as a member of TRS. A member must be employed full-time for six hours or more for six months (120 school days) in a school year to receive one year of credited service. No member can receive more than one year of credited service for work during a school year. Even if the member works overtime, performs extra duty teaching at night or works summer school session, no one receives more than one year of credit for a school year.
Members who work at least four hours per day, but less than full-time (six to eight hours per day) and/or less than 120 days (20 days per month for six months) may have part-time employment combined to equal one year of credited service. For example, a member who worked only the first or second semester of a school year can combine two such work periods to equal one year, or a member employed half-time for a full school year may combine two half years to equal one year of credited service.
Members may purchase credit for employment in the public schools of other states, District of Columbia and territories of the United States to obtain additional credited service. Service in the U.S. Armed Forces and Peace Corps of six months or more (at least 180 days) may be purchased as well as employment while a member of the other public retirement systems operated by the state of Oklahoma.
For information relating to specific types of service, see the following links:
Oklahoma Membership
Substitute Teaching
Sabbatical Leave
Other Oklahoma Public School Employment
Employment in Oklahoma Agencies
Transferring Credit from OPERS
Military Service
Out-of-State Teaching Service
Family Leave
Adjunct Service
Sick Leave
Actuarial Cost to Purchase Service
Redepositing Withdrawn Service
Rollovers to Purchase Service
