Okla. Stat. tit. 70, § 17-108.2
Contributions Credit
Effective Jul 1, 1998Laws 1997, HB 1873, c. 300, § 1, emerg. eff. July 1, 1997; Amended by Laws 1998, SB 776, c. 378, § 1, emerg. eff. July 1, 1998 (superseded document available).
A. If Enrolled Senate Bill No. 902 of the 2nd Session of the 46th Oklahoma Legislature is not enacted as law, for the plan year beginning July 1, 1998, and for each plan year thereafter, a teacher employed by any school district or employed by a vocational-technical school district who qualifies for a minimum salary pursuant to the schedule contained in Section 18-114.7 of Title 70 of the Oklahoma Statutes, shall have credited against the employee contribution amount, as applicable to the amount of compensation required to be paid to the teacher as a minimum salary pursuant to Section 18-114.7 of Title 70 of the Oklahoma Statutes, an annual amount based upon qualifying years of service and a percentage of the applicable minimum salary amount as follows:
| YEARS OF SERVICE | PERCENTAGE OF MINIMUM SALARY (BACHELOR'S DEGREE) | CREDIT AMOUNT |
| 0 | 0.25% | $60.15 |
| 1 | 0.41% | $103.41 |
| 2 | 0.57% | $145.65 |
| 3 | 0.73% | $188.15 |
| 4 | 0.89% | $232.34 |
| 5 | 1.05% | $277.60 |
| 6 | 1.21% | $322.57 |
| 7 | 1.37% | $369.78 |
| 8 | 1.53% | $416.34 |
| 9 | 1.69% | $465.49 |
| 10 | 1.85% | $513.65 |
| 11 | 2.01% | $564.75 |
| 12 | 2.17% | $614.50 |
| 13 | 2.33% | $667.55 |
| 14 | 2.49% | $716.15 |
| 15 | 2.65% | $770.94 |
| 16 | 2.81% | $826.81 |
| 17 | 2.97% | $883.76 |
| 18 | 3.13% | $941.75 |
| 19 | 3.29% | $1,000.82 |
| 20 | 3.45% | $1,060.94 |
| 21 | 3.61% | $1,122.13 |
| 22 | 3.77% | $1,184.38, |
| 23 | 3.93% | $1,247.70 |
| 24 | 4.09% | $1,313.07 |
| 25 or more | 4.25% | $1,377.51 |
B. If Enrolled Senate Bill No. 902 of the 2nd Session of the 46th Oklahoma Legislature is enacted as law, for the plan year beginning July 1, 1998, and for each plan year thereafter, a teacher employed by any school district or employed by a vocational-technical school district who qualifies for a minimum salary pursuant to the schedule contained in Section 18-114.7 of Title 70 of the Oklahoma Statutes, shall have credited against the employee contribution amount, as applicable to the amount of compensation required to be paid to the teacher as a minimum salary pursuant to Section 18-114.7 of Title 70 of the Oklahoma Statutes, an annual amount based upon qualifying years of service and a percentage of the applicable minimum salary amount as follows:
| YEARS OF SERVICE | PERCENTAGE OF MINIMUM SALARY(BACHELOR'S DEGREE) | CREDIT AMOUNT |
| 0 | 0.25% | $60.15 |
| 1 | 0.41% | $103.41 |
| 2 | 0.57% | $145.65 |
| 3 | 0.73% | $188.15 |
| 4 | 0.89% | $233.33 |
| 5 | 1.05.% | $278.76 |
| 6 | 1.21% | $325.26 |
| 7 | 1.37% | $372.82 |
| 8 | 1.53% | $421.44 |
| 9 | 1.69% | $471.12 |
| 10 | 1.85% | $521.44 |
| 11 | 2.01% | $573.67 |
| 12 | 2.17% | $626.54 |
| 13 | 2.33% | $680.48 |
| 14 | 2.49% | $735.47 |
| 15 | 2.65% | $791.53 |
| 16 | 2.81% | $848.65 |
| 17 | 2.97% | $906.83 |
| 18 | 3.13% | $966.07 |
| 19 | 3.29% | $1,026.38 |
| 20 | 3.45% | $1,087.75 |
| 21 | 3.61% | $1,150.18 |
| 22 | 3.77% | $1,213.68 |
| 23 | 3.93% | $1,278.23 |
| 24 | 4.09% | $1,343.85 |
| 25 | 4.25% | $1,410.53 |
- C. The state shall pick up and pay the annual amount prescribed by subsection A or B of this section, based upon the conditions prescribed by subsections A and B of this section, to the Teachers' Retirement System. The annual amount prescribed by subsection A or B of this section shall be divided into monthly amounts as may be required in order to give full effect to the credit amount without the necessity of dividing the annual credit amount into twelve (12) equal installments.
- D. If an eligible teacher terminates service prior to June 30 of any applicable plan year, the amounts prescribed by subsection A or B of this section, and transferred to the Teachers' Retirement System from the State Board of Education and the State Board of Vocation and Technical Education, shall be retained by the Teachers' Retirement System of Oklahoma and treated as an actuarial gain of the System.
- E. If an employing school district has contractually committed to make payment of the employee contributions required by Section 17-116.2 of this title for a member who is eligible for the credit amount prescribed by subsection A or B of this section for the fiscal year beginning July 1, 1997, using funds available to the district and not by effecting the employee contribution through a deduction from the member's gross salary, the district shall pay additional compensation to each of its eligible teachers in an amount equal to the amount prescribed by subsection A or B of this section based upon the number of years of teaching experience of the eligible member.
- F. If an eligible member is hired by a school district or a vocational-technical school district and receives compensation for less than one hundred eighty (180) days of service, the district shall determine a pro rata amount of the annual credit amount and shall pay additional compensation to the member equal to the pro rata amount for each month during which the member is employed, The monthly credit amount for such member shall be added to the member's compensation beginning with the first full month during which the member is employed by the district. The amount required to be added to the compensation of the eligible member pursuant to this subsection shall be subject to any applicable federal or state taxes upon the additional income.
- G. The amount by which the employee contribution paid by the employer is reduced as a result of the credit prescribed by subsection A of this section shall be treated by the employer as an amount which does not qualify for the "picked up" contribution provisions of 26 U.S.C., Section 414(h)(2) and shall be treated as subject to all applicable federal taxes until the private letter ruling described by Section 2 of this act provides for a favorable treatment.
- H. The amount required to be added to the compensation of the eligible member pursuant to subsection E of this section shall not be treated as regular annual compensation for purposes of Section 17116.2 of Title 70 of the Oklahoma Statutes or as salary or fringe benefits for purposes of determining the minimum salary pursuant to the requirements of Section 18-114.7 of this title or for purposes of meeting the requirements of any locally adopted salary schedule.
- I. The employing district shall prepare its payroll records to reflect that the total employee contribution amount, for the salary not in excess of the applicable minimum salary amount, has been paid pursuant to a combination of the payment from the funds of the employing district and the amount credited to the employee contribution account of the member pursuant to subsection A or B of this section.
- J. If an employing school district has contractually committed to deduct employee contributions required by Section 17-116-2 of this title by effecting the employee contribution through a deduction from the member's gross salary, the district shall decrease the amount of the payroll deduction for such employee contribution by the amount as prescribed in subsection A or B of this section, based upon the number of years of teaching experience of the member. The amount required to be subtracted from the amount by which the employee's gross salary would otherwise be reduced pursuant to this subsection shall be subject to any applicable federal or state taxes. The employing district shall prepare its payroll records to reflect that the total employee contribution amount, for the salary not in excess of the applicable minimum salary amount, has been paid pursuant to a combination of the deduction from the member's salary and the amount credited to the employee contribution account of the member pursuant to subsection A or B of this section.
Laws 1997, HB 1873, c. 300, § 1, emerg. eff. July 1, 1997; Amended by Laws 1998, SB 776, c. 378, § 1, emerg. eff. July 1, 1998 (superseded document available).