Current through Vol. 41, No. 13, March 15, 2024
(a) An
active member of the System may elect the payment of the actuarial purchase
price, repayment of a previous withdrawal, purchase of previous
non-participating elected service, or to purchase an increase in the
contribution rate, or any other purchase or repayment permitted and authorized
by the statutes governing the System, to be amortized in monthly installments
to the extent allowed by law.
(1) A payment
schedule may be established allowing the member to make monthly payments
through payroll deductions by the member's employer if the employer agrees to
make the deductions and remit payments to the System. Payments remitted by an
employer for its employees must be kept separate from employer's regular
retirement contributions or any other payments to the System including Deferred
Compensation. Such payments do not qualify as "pre-tax" contributions under
"employer pick-up" provisions of Section 414(h) of the Internal Revenue
Code.
(2) The installment payment
schedule provided for in this section must be in monthly or bi-weekly
increments. The minimum total monthly payment is $25.00. The minimum bi-weekly
payment is $12.50. The member shall be responsible for maintaining the payment
schedule. The payment due date will be based on the payroll schedule set by the
member's employer. An installment not paid within sixty (60) days of the due
date will result in termination of the installment payment schedule with the
member given the option of paying the balance of the actuarial cost or
receiving partial credit for payments made under the installment schedule as
provided for in subsection (4) of this section.
(3) The installment payment will be
determined by amortizing the total amount due for the service to be purchased
over the period of the installment schedule using an interest rate equal to the
actuarially assumed interest rate adopted by the Board of Trustees for
investment earnings for the year in which the payment schedule is
commenced.
(4) Except as provided
in subsection (8) of this section, if the installment payment is terminated for
any reason, including termination of employment, death of the member or by
cessation of payments, the member or the beneficiary of the member will have
the option of paying the remaining balance within six (6) months. If the
balance is not paid, the member will receive credit for service prorated for
only the principal amount paid and rounded to the last full month paid for. No
refunds will be paid to the member.
(5) Credit for service purchased on an
installment schedule will not be added to the member's account until the entire
balance is paid, except as provided for in subsection (4) of this section. All
payments must be completed in the month prior to the effective retirement date
of the member. If any member or beneficiary elects to pay the balance during
the 6 month period provided for in Subsection (4) of this Section, no benefits
will be payable until the completion of said 6 month period, or receipt of a
signed waiver. In no event will retroactive benefit payments be made, and the
effective retirement date will be adjusted to the first day of the month
following the completion of payments or receipt of waiver.
(6) Payments may be made directly to the
System by the member or beneficiary if the member is in an unpaid leave status,
if the payroll is not sufficient to handle the entire payment, in the event of
payroll error where employer fails to withhold the proper amount or during the
six (6) month period referred to in subsection (4) of this Section.
(7) Except as provided in subsection (8) of
this section, if the purchase is terminated for any reason, the purchase cannot
be made at any time in the future following the 6 month option referred to in
Subsection (4) of this Section. By failing to complete this purchase, the
member or beneficiary forfeits the right to the purchase at any other
time.
(8) If the installment
payment for the repayment of a previous withdrawal is terminated for any
reason, the member, upon returning to employment and meeting the eligibility
requirements for membership, may pay the remaining principal balance at any
time prior to the month of the effective retirement date. The total due shall
be the unpaid principal balance, plus interest pursuant to 74 O.S. § 917(5),
calculated from the date of the last installment payment received and paid in a
one-time lump sum amount.
(b) Effective January 1, 2002, in lieu of
installment payments, an active member may elect to make the payment of the
actuarial purchase price, repayment of a previous withdrawal, purchase of
previous non-participating elected service, or to purchase an increase in the
contribution rate, or any other eligible purchase or repayment permitted and
authorized by the statutes governing the System by use of a direct trustee to
trustee transfer from a 457 deferred compensation plan or a 403(b) tax
sheltered annuity program.
(c)
Effective January 1, 2002, in lieu of installment payments or a direct transfer
an active member may elect to make the payment of the actuarial purchase price,
repayment of a previous withdrawal, purchase of previous non-participating
elected service, or to purchase an increase in the contribution rate, or any
other eligible purchase or repayment permitted and authorized by the statutes
governing the System by a rollover. The payment may be made by participant
rollover contributions and/or direct rollovers of eligible rollover
distributions made after December 31, 2001, from the following:
(1) a qualified plan described in section
401(a) or 403(a) of the Internal Revenue Code;
(2) an annuity contract described in section
403(b) of the Internal Revenue Code;
(3) an eligible plan under section 457(b) of
the Internal Revenue Code which is maintained by a state, political subdivision
of a state, or any agency or instrumentality of a state or political
subdivision of a state; or
(4) a
participant rollover contribution from an individual retirement account or
annuity described in section 408(a) or 408(b) of the Internal Revenue Code that
is eligible to be rolled over.
(d) Any payments permitted and authorized by
this section or by the statutes governing the System which are elected by a
member in lieu of installment payments shall be made no later than the month
prior to the effective retirement date of the member.
Added at 12 Ok Reg 3237,
eff 7-27-95; Amended at 12 Ok Reg 3660, eff 9-1-95 through 7-14-96 (emergency);
Amended at 13 Ok Reg 3327, eff 7-25-96; Amended at 16 Ok Reg 610, eff 12-2-98
(emergency); Amended at 16 Ok Reg 2010, eff 6-11-99; Amended at 18 Ok Reg 9,
eff 10-3-00 through 7-14-01 (emergency); Amended at 18 Ok Reg 3258, eff
7-26-01; Amended at 19 Ok Reg 741, eff 12-20-01 (emergency); Amended at 19 Ok
Reg 1477, eff 5-28-02; Amended at 25 Ok Reg 1001, eff 5-11-08; Amended at 26 Ok
Reg 952, eff 4-25-09