[1] Public education teachers and administrators are required to be OTRS members; support staff can join voluntarily.
[1] State law established OTRS in 1943 to manage retirement funds and provide financial security for public education employees.
Additionally, for service earned prior to June 30, 1995, contributions into the system only paid on either the first $25,000 of $40,000 of annual income.
The employee must work an additional year after the regular retirement age, and meet an uncapped average salary tier exceeding $40,000.
OTRS utilizes a spectrum of investment managers, including but not limited to Mackay Shields, Loomis Sayles, Lord Abbett, Hoisington, and Stephens.
The retirement system's viability for future retirees has prompted legislative maneuvering in recent years.
[11] The retirement system received a boost in 2006 when the Oklahoma State Legislature increased the employer's contribution to OTRS from 7% to 9% over a three-year period.
[12] From 2009 to 2011, the administration of OTRS, with guidance from its board of directors, has renegotiated investment contracts that will save the agency $2.3 million annually.
The agency also streamlined processes and instituted other operational efficiencies, which have saved OTRS more than $7.6 million in this two-year time frame.
In addition, OTRS has noted that it achieved a 9.4% rate of return on its investment from 1992 through 2011, well outpacing its long-term target of 8%.
[15] Despite a long history of fiscal troubles, the Oklahoma Teachers' Retirement System has seen a steady improvement in its over-all actuarial condition since 2012.
This is due in part to strong investment performance as well as fiscal reforms enacted by the state legislature.
"[16] As of June 30, 2018, the Oklahoma Teachers' Retirement System reduced its unfunded actuarial accrual liability (UAAL) to approximately $6.13 billion and increased its overall funded ratio to 73.5%.
"[17] The Oklahoma Teacher Retirement System experienced significant investment volatility as a result of the COVID-19 pandemic.
Although a marked decline in comparison to pre-pandemic levels, this nevertheless represented an improvement in performance over the previous year.