created a third tier for those who join OTRS after Nov. 1, 2011. These clients will have the same benefit calculation, but their retirement eligibility will be the Rule of 90 with a minimum age of 60 (or age 65). EESIP The Education Employees Service Incentive Plan (EESIP) provides an incentive to continue service beyond regular retirement eligibility. To participate, a client must be on the high base cap at $40,000. EESIP provides an opportunity to wear away the salary cap by moving two years of service from the $40,000 salary cap tier to the uncapped salary cap tier for each year worked beyond July 1 of the school year in which retirement eligibility is met. Years moved on the two-for-one EESIP plan increases the number of uncapped years used in the calculation of the final average salary. In order to qualify for the EESIP, an employee must be an active contributor, employed within a qualified employer such as an elementary or secondary school, career tech center, two-year college, or state education agency. The employee must work an additional year after the regular retirement age, and meet an uncapped average salary tier exceeding $40,000. Their contributions prior to July 1, 1995, were remitted on maximum compensation level and they must pay the contribution deficit on years between 1987-1988 and 1994-1995 where the salary exceeded $40,000. Investments The Board of Trustees determines investment of OTRS funds. In January 2009, the board made a strategic decision to invest in high-yield bonds. As of June 30, 2011, all cap/large cap domestic equities comprised 21.8% of assets, mid cap domestic equities 13.2% and small cap domestic equities 10%. The target asset allocation, is 45% is in domestic equity, 15% in international equity, 25% in fixed income, 5% in high-yield bonds, 5% in MLP and 5% in private equity. OTRS' investment consultant is Gregory W. Group. JPMorgan Chase is the system's custodial bank. OTRS utilizes a spectrum of investment managers, including but not limited to Mackay Shields, Loomis Sayles, Lord Abbett, Hoisington, and Stephens. As of June 30, 2014, total balance of OTRS funds stood in excess of $14B. Unfunded liability Oklahoma's teachers’ retirement program has long been one of the most underfunded of its kind in the United States. Employer contributions did not begin until 1986, a fact that has largely contributed to its $10.4 billion unfunded liability as of May 2011. The 2008