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SB 1144

Teachers' Retirement System of Oklahoma; ceasing certain apportionments upon certain conditions; authorizing benefit increase for certain retired members. Effective dates.

2026 Regular Session Introduced by Trey Caldwell

The bill creates new lottery funding rules that direct proceeds to education and TRSOK, and authorizes a one-time TRSOK retirement benefit increase for eligible retirees.

Becomes law without Governor's signature 04/23/2026
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WeVote Research Nonpartisan
Bill Summary · SB 1144

Summary of SB 1144 (Oklahoma, 2026)

Purpose and intent
- This bill relates to the Teachers’ Retirement System of Oklahoma (TRSOK) and the Oklahoma Education Lottery proceeds. It changes how lottery proceeds are apportioned to education and TRSOK, sets conditions for ceasing or increasing certain apportionments, and authorizes a one-time benefit increase for certain retired TRSOK members. It also updates related actuarial definitions and codifies effective dates.

Key provisions and changes

1) Lottery proceeds apportionment and TRSOK funding
- Creates/continues the Oklahoma Education Lottery Trust Fund to hold net lottery proceeds and directs how they are allocated among education programs, higher education, and specialized funds.
- Allocation structure (highlights from Section 1):
- The first $65 million of annual net lottery proceeds are distributed with complex earmarks:
- 45% withheld until specified conditions are met; after conditions, 50% goes to education (K-12 and early childhood programs) and higher education-related items.
- 45% funds higher education initiatives, including tuition grants/loans, construction and capital projects, technology for education facilities and staff, endowed chairs, and programs for the Deaf and Blind.
- 5% to the School Consolidation Assistance Fund; if the fund hits $5,000,000, excess allocations shift to public schools for technology equipment based on ADA metrics.
- 5% to the TRS Dedicated Revenue Revolving Fund.
- Remaining net proceeds beyond $65 million: allocated to the Teacher Empowerment Revolving Fund (70 Statutes Section 6-190.2) and other trust fund purposes.
- Cease conditions for TRSOK allocations:
- All apportionments to the TRS Dedicated Revenue Revolving Fund cease on the earlier of: (a) June 30, 2036, or (b) the state fiscal year in which an actuary determines TRSOK has a funded ratio of at least 100%.
- Monthly/annual transfer mechanics:
- The bill prescribes monthly (and quarterly/annual) transfers from the Lottery Trust Fund to fund education, higher education, TRS dedicated funds, and other revolving funds, with caps and adjustment provisions to ensure timely delivery and avoid supplanting nonlottery funds.
- Guardrails:
- The Legislature shall not use lottery funds to supplant ongoing general education, higher education, or career-and-technology funding.
- The State Board of Equalization reviews whether lottery funds enhance or supplant education funding; if it finds supplanted funding, the Legislature must replenish the trust fund before new appropriations.

2) Actuarial and legal framework updates
- Section 2 updates definitions under the Oklahoma Pension Legislation Actuarial Analysis Act to clarify terms used in retirement-related bills, including what constitutes a nonfiscal retirement bill, types of amendments, and the scope of retirement systems affected.
- Section 5 updates apportionment calculations for tax and education-related funds, aligned with the new TRSOK and lottery provisions.

3) Benefit increase for retired TRSOK members
- Section 6 establishes a new law (Section 17-116.23, Title 70) that authorizes a one-time, non-recurrent increase to benefits for TRSOK retirees, triggered by years since retirement as of June 30, 2026:
- 0% increase if retired less than 8 years.
- 3% increase if retired 8 to less than 20 years.
- 6% increase if retired 20 years or more.
- Eligibility is limited to those already receiving TRSOK benefits as of June 30, 2026.

4) Effective dates
- The act’s various sections become effective on different dates:
- Section 2 (actuarial/definitions) becomes effective October 1, 2026.
- Sections 1, 3, 4, 5, and 6 (lottery apportionments, TRS funding adjustments, and the beneficiary increase) become effective November 1, 2026.

Who would be affected

  • Teachers and public education employees covered by the Teachers’ Retirement System of Oklahoma (TRSOK): potential benefits increase for retirees meeting the eligibility criteria.
  • TRS Dedicated Revenue Revolving Fund and the School Consolidation Assistance Fund: changes in funding flow and cap triggers.
  • Oklahoma Education Lottery participants and management: altered allocation rules for lottery proceeds, with implications for education funding, infrastructure, technology, and scholarship programs.
  • State educational system (K-12, higher education, career and technology education) and related state agencies (OSDE, Higher Ed, OCTE, the State Treasurer, OMES): administrative and financial processes updated to reflect new apportionment rules.

Procedural and timeline aspects

  • The bill specifies multiple effective dates (October 1, 2026; November 1, 2026) and a funded-ratio trigger (100%) for ceasing TRSOK apportionments.
  • It requires actuarial determination to validate funded ratio thresholds.
  • It includes reporting requirements (Board of Equalization) to ensure trust-fund appropriations enhance rather than supplant education funding.
  • If adopted, the measure would shape budget planning for lottery-derived education funding through the 2030s and beyond, with a potential state-actuary-determined inflection point in 2036 or earlier if funded status criteria are met.

Notes
- The bill includes a committee substitute with amendments approved by both chambers, and the final text reflects these changes.
- The overall framework aims to stabilize TRSOK funding and provide targeted educational investments while ensuring transparency and accountability for lottery-derived education dollars.

Compiled from official sources — confirm details with the bill’s official record.

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