Before July 1, 1995 all contributions were limited to salary caps, with a choice of a low or high base. Salaries on or after July 1, 1995 are uncapped for all members, except OU and OSU employees, who may have a cap until July 1, 2007. If the highest salaries exceed the cap elections, the benefit is calculated in tiers. Member Handbook (2025), pp. 17-18, How are salary caps applied in the benefit calculation?
| Service | Low base | High base |
|---|---|---|
| before July 1979Member Handbook (2025), p. 17; 70 O.S. § 17-116.2(E) | $7,800 | $10,000 |
| July 1987 - June 1995Member Handbook (2025), p. 17; 70 O.S. § 17-116.2(A)(2)(b)-(c), (C)(1) | $25,000 | $40,000 |
| July 1995 and laterMember Handbook (2025), p. 18; OAC 715:10-13-3 (rules eff. 9/1/25, pp. 59-60) | no cap | no cap |
For K-12 members who joined before July 1, 1995: 2% x average salary not over $40,000 (high base, or salary never over $25,000 before July 1995) or not over $25,000 (low base) x years before July 1, 1995, plus 2% x average salary x years after June 30, 1995. 70 O.S. § 17-116.2(A)(2)(b)-(c)
The handbook lists caps for pre-July 1979 ($7,800/$10,000) and July 1987-June 1995 ($25,000/$40,000) only, and its examples apply $25,000/$40,000 to all of 7/79-6/95. The engine takes the member's capped years and cap from their TRS of Oklahoma statement (the 'Service Tier' totals) rather than deriving them by year.
We use the capped years and the cap you enter from your TRS of Oklahoma member service statement.
What would settle it: A full cap history (70 O.S. § 17-116.2A and earlier law) or a TRS of Oklahoma member service statement with tier totals.
The handbook's examples
The handbook follows one member (joined 7/1/1974, retired 7/1/2004 with 30 years, high-3 $65,000). Of the 30 years, 21 are before July 1995 (5 of them before July 1979) and 9 are after.
Example 1: low base (joined 7/1/1974, retired 7/1/2004 with 30 years, high-3 $65,000)
| Years | Salary used | Monthly |
|---|---|---|
| 5 Before July 1979, $7,800 waiver | $7,800 | $65.00 |
| 16 Before July 1995, $25,000 cap | $25,000 | $666.67 |
| 9 July 1995 and later | $65,000 | $975.00 |
| Total blended salary $34,133 | $1,706.67 |
2% × years × salary ÷ 12 for each row. The handbook shows $1,706.65 (blended salary $34,133). Member Handbook (2025), p. 18, Example 1
Example 2: high base (same member)
| Years | Salary used | Monthly |
|---|---|---|
| 21 Before July 1995, $40,000 cap | $40,000 | $1,400.00 |
| 9 July 1995 and later | $65,000 | $975.00 |
| Total blended salary $47,500 | $2,375.00 |
2% × years × salary ÷ 12 for each row. The handbook shows $2,375.00 (blended salary $47,500). Member Handbook (2025), p. 18, Example 2
Example 3: Example 2 member who worked five years beyond Combination 80 (35 years)
| Years | Salary used | Monthly |
|---|---|---|
| 11 Before July 1995, $40,000 cap | $40,000 | $733.33 |
| 10 Before July 1995, uncapped by EESIP | $65,000 | $1,083.33 |
| 14 July 1995 and later | $65,000 | $1,516.67 |
| Total blended salary $57,143 | $3,333.33 |
2% × years × salary ÷ 12 for each row. The handbook shows $3,333.33 (blended salary $57,143). Member Handbook (2025), p. 20, Example 3
Example 1's rows add to $1,706.67. The handbook's total line shows $1,706.65 because it multiplies the rounded blended salary of $34,133. Example 3 reuses Example 1's date labels; the arithmetic is 11 capped years, 10 years moved by EESIP and 14 years after July 1995. Member Handbook (2025), p. 18, Example 1
The seminar slides work a simpler case: 10 capped years at $40,000 plus 20 uncapped years at $50,000 is $2,333.33 a month (shown as $2,334). After five years of EESIP, all 35 years use $50,000: $2,916.67 (shown as $2,917). Retirement seminar slides, slide 20 (whole dollars); Retirement seminar slides, slide 22
Switching from the low base
A member on the $25,000 election may change to $40,000 any time before retirement by paying the contribution difference (including employer amounts) plus 10% interest compounded annually, all before the retirement date. OAC 715:10-13-4(a)-(d) (rules eff. 9/1/25, pp. 60-61); 70 O.S. § 17-116.2(D)(1) In the example, the high base is worth $668.33 more a month.
The $7,800 waiver years
Members who signed a waiver to contribute on a maximum of $7,800 had to contribute on full pay from July 1, 1979, and may buy back the 1974-75 through 1978-79 difference (up to $10,000 a year) at 5% plus 10% interest before retirement. 70 O.S. § 17-116.2(E)(2)-(3); OAC 715:10-5-8 (rules eff. 9/1/25, p. 29); OAC 715:10-13-8(5) (p. 62)
EESIP: wearing the caps away
For each year worked in common education or a career technology district beyond July 1 of the school year regular retirement eligibility is met, two years of service move from the $40,000 cap tier to the uncapped tier. The member must be on the $40,000 high base (low-base members may change election first). Member Handbook (2025), pp. 18-20, How does EESIP remove the salary caps?; OAC 715:10-15-7.2(c), (f) (rules eff. 9/1/25, pp. 71-72) In Example 3, five more years move 10 capped years and add $958.33 a month over Example 2 (with five more years of service too).
Do I qualify?
- Actively contributing through a participating employer (elementary and secondary schools, career tech centers, two-year colleges, state education agencies; not comprehensive or regional four-year universities)
- Employed by a participating employer at least one year past the year regular retirement eligibility is reached
- Uncapped average salary at retirement above $40,000
- Contributions before 7/1/1995 on the maximum compensation level (full salary up to $40,000)
- Pay the contribution deficit on 1987-88 through 1994-95 years where salary exceeded $40,000 (only for years moved, working backward from FY95)
A member reaching normal retirement age by July 10 of a school year is treated as reaching it at the start of that school year; after July 10, at the start of the next school year employed. OAC 715:10-15-7.2(j) (rules eff. 9/1/25, p. 72)
TRS of Oklahoma has no DROP; EESIP is its reason to keep working. Member Handbook (2025), pp. 18-20 (EESIP); table of contents pp. 2-3 (no DROP) EESIP starts once you reach full eligibility, which depends on your group; the capped and uncapped tiers both use the benefit formula.
Enter your capped years and cap under "More details" in the calculator. It applies EESIP for each whole year past your full-benefit date, and One more year shows the effect.
Questions
How do the pre-1995 salary caps affect my TRS of Oklahoma pension?
Years of service before July 1, 1995 are figured on the lesser of your final average salary and the cap you elected ($25,000 or $40,000). Later years use your full salary. In the handbook's example, 30 years on $65,000 pays $1,706.65 on the low base and $2,375.00 on the high base.
What is EESIP?
The Education Employees Service Incentive Plan. For each year you keep working in common education or a career tech district after you reach full retirement eligibility, 2 of your capped years move to your full salary. You need the $40,000 high base. In the handbook, five more years take the benefit from $2,375.00 to $3,333.33.
Source: Member Handbook, Teachers' Retirement System of Oklahoma, Plan provisions as of July 1, 2025, pp. 17-18, 17, 18, 18-20, 20. Also: Retirement seminar slides; TRS of Oklahoma rules, OAC 715:10-5-8, 715:10-13-3, 715:10-13-4, 715:10-13-8, 715:10-15-7.2; 70 O.S. § 17-116.2. Last reviewed .