Current through Vol. 41, No. 13, March 15, 2024
(a)
Application.
(1) The applicant must have twenty (20) years or more of credited service with the Oklahoma Police Pension and Retirement System to be eligible.
(2) The applicant must submit his/her completed application for participation in the Oklahoma Police Deferred Option Plan. Forms will be provided by the Oklahoma Police Pension and Retirement System.
(3) The effective date of membership will be the first day of the month.
(4) Once the Board has approved a member's application and the member's option account has been credited with the first contribution or benefit, the member's participation in the Oklahoma Police Deferred Option Plan is irrevocable as long as the member remains employed.
(b)
Contributions.
(1) The final member contribution made to the Oklahoma Police Pension and Retirement System shall be for the last pay period prior to the first of the month in which the member becomes a participant in the Oklahoma Police Deferred Option Plan.
(2) The employer's contribution will continue to the Oklahoma Police Pension and Retirement System.
(3) The member's option account shall be credited fifty percent (50%) of the employer's contribution received for the member and the Oklahoma Police Pension and Retirement System shall be credited fifty percent (50%). The credit to the member's option account shall be made the next work day after receipt of the employer's contribution.
(4) Only the member's portion of the employer's contribution will be credited to the member's option account. No other contributions will be accepted.
(5) When a member has participated in the Oklahoma Police Deferred Option Plan for five (5) years or if the member terminates employment prior to the end of five (5) years, contributions will no longer be credited to the member's option account.
(c)
Benefits.
(1) The monthly retirement benefit that would have been payable had the member elected to cease employment and receive a service retirement shall be credited into the member's option account.
(2) The member's service retirement benefit is frozen and at no time will he/she be allowed to increase his/her pension benefit due to additional years of service.
(3) The monthly retirement benefit will be credited to the member's option account the last day of the month.
(4) A member who participates in this plan shall be eligible to receive cost of living increases.
(d)
Interest.
(1) Subject to paragraph (6) of this subsection, the member's option account shall earn interest at a rate of two percent (2%) below the rate of return of the total investment portfolio of the System, but no less than the actuarial assumed interest rate established at the beginning of the fiscal year as certified by the actuary and approved by the Board in the yearly evaluation report of the actuary. This report is on a fiscal year basis ending on June 30.
(2) The Fund's annual rate of return shall be calculated and certified by the Board's financial consultant. The annual rate of return shall be for the fiscal year ending June 30.
(3) The interest shall be credited to the member's option account on an annual basis which is defined as fiscal year ending June 30. The amount of the interest credited shall be calculated at simple interest. The formula for calculating the interest shall be the amount of the deposit times the certified annual rate of return, less two percent (2%), divided by 365 days times the number of days the deposit was credited to the member's option account for the fiscal year.
(4) Each member shall receive an itemized statement at least on an annual basis beginning with interest credited at June 30, 1991.
(5) Upon completion of the five year term in the Oklahoma Police Deferred Option Plan or earlier termination of employment by the member, annual interest calculated through the last day of the month employed and certified by the Board's financial consultant will be credited to the member's option account provided the annual rate of return is greater than the actuarial assumed interest rate. If the rate of return is less than the actuarial assumed rate then the member's option account will be credited at the assumed interest rate of the last actuarial report.
(6) When a member has participated in the Oklahoma Police Deferred Option Plan for five (5) years or if the member terminates employment prior to the end of the five (5) years, the member's option account if left in the Plan, ceases to earn interest unless the member made a timely election pursuant to the Deferred Option Payout Provision Policy. Effective July 1, 2006, pursuant to the Deferred Option Payout Provision Policy, a retired member who has completed participation in the Oklahoma Police Deferred Option Plan under the Forward Drop or the Back Drop provisions may elect within thirty (30) days following termination of employment with a participation municipality to leave his or her Deferred Option Payout Account balance in the Plan. Under the Deferred Option Payout Provision Policy, the retired member's Deferred Option Payout Account balance will be commingled and invested with the total pension fund and as such the retired member will not be able to direct his or her investments.
(7) At the conclusion of a member's participation in the Oklahoma Police Deferred Option Plan, the member must terminate employment and start receiving the member's accrued monthly retirement benefit from the System. Such termination has at all times included reemployment of a member by a participating municipality but only in a position not covered under the System or as a police chief. Thus, such a member would receive in-service distributions of such member's accrued monthly retirement benefit from the System.
(e)
Payment.
(1) The member shall make application to terminate participation in the Oklahoma Police Deferred Option Plan a minimum of ninety (90) days prior to termination of employment with the participating municipality. The Oklahoma Police Pension and Retirement System shall have a minimum of ninety (90) days from the date of receipt of members' application to terminate participation in the Oklahoma Police Deferred Option Plan in which to process said application and make payment, unless the member has made an affirmative election to participate in the Deferred Option Payout Provision.
(2) The member should make payment selection a minimum of thirty (30) days prior to the distribution date. The form on which payment selection must be submitted will be provided by the System.
(3) The member may select a lump sum payment, equal to the member's option account, which will be paid directly to the member by the Oklahoma Police Deferred Option Plan. This payment will be made after the last contribution has been received and interest applied following termination of employment and after receipt of the completed payment selection form.
(4) The member may select a direct rollover of his or her distribution in accordance with OAC 550:1-7-5.
(5) The member may select an annuity to be provided by a third party. The Oklahoma Police Deferred Option Plan shall not be subject to any fees or charges from the annuity provider.
(6) The member may select to participate in any other method of payment if approved by the State Board.
(7) Once the member's option account has been paid directly to the member, or as a Direct Rollover or to the member's annuity provider, the member shall not have any recourse against the Oklahoma Police Deferred Option Plan, the Oklahoma Police Pension and Retirement System, its Executive Director and staff, and/or the Board.
(f)
Designated Recipients. If the participant dies during the period of participation in the Oklahoma Police Deferred Option Plan, a recipient designated by the participant may elect to receive a lump sum payment equal to the account balance of the participant. A designated recipient may elect a Direct Rollover of the account balance in accordance with OAC 550:1-7-5 if the recipient qualifies as a Distributee under 11 O.S. Section 50-114.2. If there is no designated recipient or if the designated recipient predeceases the participant, a lump sum payment shall be paid to the surviving spouse who was married to the participant for the thirty (30) continuous months immediately preceding the participant's death, provided a surviving spouse of a participant who died while in, and as a consequence of, the performance of the participant's duty for a participating municipality, shall not be subject to the thirty-month marriage requirement for survivor benefits, or if no surviving spouse to the estate of the participant. Once paid out directly to the designated recipient or surviving spouse or as a Direct Rollover, or to the estate of the member, none of the following: the designated recipients, surviving spouse or estate of the member shall have any recourse against the Oklahoma Police Deferred Option Plan, the Oklahoma Police Pension and Retirement System, its Executive Director and staff, and/or the Board.
Added at 8 Ok Reg 2365, eff 6-13-91 ; Amended at 9 Ok Reg 1153, eff 2-18-92 (emergency) ; Amended at 9 Ok Reg 2545, eff 7-1-92 ; Amended at 14 Ok Reg 1997, eff 5-27-97 ; Amended at 16 Ok Reg 2559, eff 7-1-99 ; Amended at 18 Ok Reg 2765, eff 7-1-01 ; Amended at 20 Ok Reg 1349, eff 6-1-03 ; Amended at 21 Ok Reg 1426, eff 6-1-04 ; Amended at 23 Ok Reg 2799, eff 7-1-06 ; Amended at 26 Ok Reg 1320, eff 7-1-09 ; Amended at 27 Ok Reg 1904, eff 7-1-10 ; Amended at 30 Ok Reg 1848, eff 7-15-13
