OKLAHOMA TEACHERS RETIREMENT

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OKLAHOMA TEACHERS RETIREMENT

• JANUARY 2005

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FACT

• The Oklahoma Teachers Retirement System is the
  only state public retirement system that has
  benefit limits because of salary caps.

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• Members of TRS who paid contributions before July
  1, 1992, are known as Rule of 80 members.
• Members of TRS who began paying contributions
  after July 1, 1992, are known as Rule of 90
  members.

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As of June 30, 2004, TRS had 81,685 active
members.

• 46,622 (57) Rule of 90 members
• 35,063 (43) Rule of 80 members

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Retirement Formula

• Number of years service
• Times
• Two per cent
• Times
• Five consecutive high years average salary
• Divided by 12
• Equals
• Maximum monthly benefit.

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Retirement FormulaIf Salary Exceeds 40,000

• Number of years service before 1995
• Times
• Two per cent
• Times
• 40,000
• Divided by 12
• Equals
• Monthly Benefit
• Plus

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• Number of years service after 1995
• Times
• Two per cent
• Times
• Average three high years salary
• Divided by 12
• Equals
• Maximum monthly benefit

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Comparison of Oklahoma Public Retirement Systems
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SAMPLE 1

• Employee Salary 44,628.00
• Started 1977-78 -- Retires 2007-08
• TRS Benefit 2,100.27
• OPERS Benefit 2,231.40
• Member Contribution TRS 54,332.00
• Member Contribution OPERS 20,122.11

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SAMPLE 2

• Employee Salary 51,601.00
• Started 1979-80 -- Retires 2008-09
• TRS Benefit 2,270.69
• OPERS Benefit 2,580.05
• Member Contribution TRS 65,054.00
• Member Contribution OPERS 23,973.30

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SAMPLE 3

• Employee Salary 53,174.00
• Started 1977-78 -- Retires 2006-07
• TRS Benefit 2,263.48
• OPERS Benefit 2,658.70
• Member Contribution TRS 67,376.00
• Member Contribution OPERS 22,213.46

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SAMPLE 4

• Employee Salary 54,834.00
• Started 1971-72 -- Retires 2004-05
• TRS Benefit 2,513.90
• OPERS Benefit 3,107.20
• Member Contribution TRS 61,353.00
• Member Contribution OPERS 19,781.85

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SAMPLE 5

• Employee Salary 61,592.00
• Started 1978-79 -- Retires 2007-08
• TRS Benefit 2,467.83
• OPERS Benefit 3,079.60
• Member Contribution TRS 73,032.00
• Member Contribution OPERS 25,795.00

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REMOVE TWO-TIER SYSTEM

• What does it cost?
• 60,000,000
• According to OTRS

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SOLUTION

• Increase Agency Contribution Rate from 7.05 to
  9.0
• Generates-62,000,000
• Dedicate-62,000,000
• From New Revenue to
• OTRS Agencies

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SUPPORT INCREASE IN STATE PAYMENT OF
INSURANCE PREMIUM FOR RETIREESSUPPORT BLENDED
RATES FOR RETIREES AND ACTIVE MEMBERSSUPPORT
COLA INCREASES FOR RETIRED MEMBERSSUPPORT
FINANCIAL INCREASES FOR OTRS
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ADDITIONAL REVENUES FOR TRS 2005

• Increased salaries 2005-06
• 7 - 8 million
• Revenue from the lottery
• 5 - 10 million

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INCREASE IN OF DEDICATED10 millionINCREASE
INTEREST INCOME5-6 million7.05 to
960-65 million