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, the repayment of a previous withdrawal, 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 increments not to exceed sixty (60)
months. The minimum total monthly payment is $25.00. 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 monthly 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 six (6) month period provided for in Subsection (4) of this Section, no
benefits will be payable until the completion of said six (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 anytime in the future, following the six (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 20 O.S. §
1103C,
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, 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, 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.
Added at 12 Ok Reg 3245,
eff 7-27-95; Amended at 17 Ok Reg 609, eff 12-2-99 through 7-14-00 (emergency);
Amended at 17 Ok Reg 3183, eff 7-27-00; Amended at 19 Ok Reg 744, eff 12-20-01
(emergency); Amended at 19 Ok Reg 1479, eff 5-28-02; Amended at 25 Ok Reg 1006,
eff 5-11-08; Amended at 26 Ok Reg 956, eff
4-25-09