SB 683 Allows Support Professionals to Join The Teachers' Retirement System Upon Hiring
The Oklahoma Legislature this session passed SB 683, which opened up the Teachers’ Retirement System to education support professionals immediately upon their hiring by a public school district. Until now, those employees had to work for the district for a full year before earning eligibility to join the system.
Newly hired ESPs will have 30 days to determing whether to join TRS or not. It will be their only chance to join the system. And once in, always in.
Current ESPs who have not already joined TRS have until July 31, 2021, to make the same decision, or forever lose their opportunity to join TRS.
ESPs who do not making a formal decision either way will automatically be enrolled in the system.
While giving only 30 days to make the decision may feel punitive to some, this is the way most pension plans work to meet IRS guidelines.
After joining the TRS, employees pay 7% of their salary toward their retirement while the district contributes 9.5%. Some districts pay both the employee and the employer percentages.
ESP needs to realize their own obligation when making their decision.
Support Staff Pensions and SB 683
SB 683 FAQ
When do I need to make my decision of whether to join TRS or not?
Current employees have until July 31, 2021, to make their decision. Everyone must complete the form and choose either to opt in or opt out of the system. Those that do not complete the paper work will automatically become a member of the system. Future employees will have 30 days to complete the form and make their decision.
If I choose to opt out now, can I join later?
No, this is a one-time decision. Opt out now and you will never be allowed to join TRS unless you transition from a support position to a certified position. The same would be true if a certified employee switched to a support position.
If I choose to join TRS now, but want to leave the system later, will I be allowed to do so?
No. Again, this is a one-time, irrevocable decision and what you decide now is the status you will have going forward. (It should be noted by a one-time decision is a typical rule for most all pension plans. It is an IRS rule, not a legislative requirement.)
If I’m already a member of TRS, do I still need to opt-in?
The Teachers Retirement System will allow folks who are currently members of the system to remain TRS members even if they do not fill out an opt-in form by July 31.
Does opting in cost me anything?
Members of the TRS (support, teachers and administrators) all contribute 7% of their salary to help pay for their retirement. School districts contribute another 9.5% to each employee’s retirement, and some districts pay both the employee and the district obligation.
Can I buy back years of retirement when I was a school district employee but not a member of TRS?
TRS has adopted emergency rules that will allow “optional” (in other words, non-classified or support staff) employees who join now – and who were previously not members – to buy back years of service. There are some nuances to this: you cannot buy back years where you opted out and did not pay, but you can buy back years when you were not a TRS member but could have been.
For example, let’s say an ESP was a member of TRS but opted out and came back (which was allowed at one time), you could not buy back the years when you had opted out. However, let’s say a different support employee has been with a district 10 years but never opted into the system. They now join TRS, so they are eligible to buy back those 10 years.
The buy back years would count toward vesting. Buy back amounts are based on an actuarial calculation, so the earlier you buy back the years of service, the less expensive the buy back sums will be.
How long do I need to be a member of TRS to be considered vested in the system?
Vesting is currently seven years for folks who entered the system during or after 2017, but a bill is pending by going through the actuarial review process and will be on the legislative agenda for next year. If it becomes law, it would change the vesting period back to the prior five-year period and the bill would be retroactive, meaning the folks subject to the seven-year requirement starting in 2017 would automatically become vested if they have five years of creditable TRS service. This affects all TRS participants who joined the system during or after 2017.
Where can I find the opt in/opt out form to make my decision?
Your district should provide you the form. But if they have not or you have misplaced the form, TRS has the opt-in/opt-out forms on its website. An employee can download the form, fill out the employee information and then submit it to their school district by the July 31 deadline.
How do I choose a beneficiary?
The form includes a line where you choose a beneficiary. It is a good idea to review your beneficiary document periodically, particularly if it has been several years since you completed the form.
How can I review my account after I join the TRS?
TRS has a portal that allows you to review your retirement account. TRS and the OEA both suggest periodic review of your statement so that discrepancies can be found and corrected early and before retirement.
What if I have more questions?
TRS is always very helpful and willing to assist folks during the opt-in/opt-out process, or if you have questions about your account. Contact the TRS by calling toll-free, 877.738.6365 or locally in Oklahoma City at 405.521.2387. Email at mail@trs.ok.gov or visit the website, oklahoma.gov/trs
