SB787 Summary

• Modifies the Teachers' Retirement System of Oklahoma by establishing a new normal retirement age of 60 with 10 years of service for members who first join after June 30, 2011, in addition to existing retirement age requirements.

• Creates the Teachers' Defined Contribution Retirement Plan Act, a new defined contribution plan for employees who first become members after June 30, 2011, to be implemented by January 1, 2012.

• Authorizes the Board of Trustees to determine a separate employer contribution rate for members first becoming members after June 30, 2011, and exempts these new members from certain service credit provisions.

• Establishes defined contribution plan features including 2% mandatory employee contributions with 50% employer matching on the first 2%, immediate 100% vesting of employee contributions, and participant-directed investment options.

• Allows distributions from defined contribution accounts through lump sum payments, rollovers to other qualified plans, periodic distributions, or deferred distributions, with exemption from state and local taxes.