Current through Vol. 41, No. 7, December 15, 2023
(a) Notwithstanding
any other provision of the administrative code, all benefits paid from the
retirement system (other than the tax-sheltered annuity program) shall be
distributed in accordance with the requirements of Section 401(a)(9) of the
Internal Revenue Code and Treasury Regulations § 1.401(a)(9)-1 through
§1.401(a)(9)-9, even if the member has not submitted the appropriate notice.
These provisions override any distribution options that are inconsistent with
Internal Revenue Code Section 401(a)(9).
(b) In furtherance of this section, the Board
of Trustees and its designee will apply the following provisions:
(1) The entire interest of each member:
(A) will be distributed to such member not
later than the required beginning date; or
(B) will be distributed beginning not later
than the required beginning date, in accordance with Treasury regulations over
the life of such member or over the lives of such member and a designated
beneficiary (or over a period not extending beyond the life expectancy of such
member or the life expectancies of such member and a designated
beneficiary).
(2) If
distribution of the member's interest has begun in accordance with subparagraph
(1)(B) and the member dies before his or her entire interest has been
distributed to the member, the remaining amount shall be distributed at least
as rapidly as under the method of distribution being used under subparagraph
(1)(B) as of the date of the member's death.
(3) If a member dies before distribution of
the member's benefits begins under subparagraph (1)(B), and if any portion of
the member's interest is payable to or for the benefit of a designated
beneficiary for the beneficiary's lifetime or for a period not to exceed the
beneficiary's life expectancy, the distribution must begin no later than
December 31 of the calendar year immediately following the calendar year in
which the member died. However, if the designated beneficiary is the surviving
spouse of the member:
(A) the date on which
the distribution is required to begin shall not be earlier than the date on
which the member would have attained age 70 1/2 (age 72 for distributions
required to be made after December 31, 2019, with respect to a member who would
have attained age 701/2 after December 31, 2019), and
(B) if the surviving spouse dies before the
distribution to such spouse begins, subparagraph (1)(B) shall be applied as if
the surviving spouse were the member.
(4) For benefit payments to beneficiaries
that are not covered by paragraph (3), if the member dies before distribution
of the member's interest has begun in accordance with subparagraph (1)(B), the
member's entire interest must be distributed within 5 years after the member's
death.
(5) For purposes of this
section, the term "required beginning date" means April 1 of the calendar year
following the later of:
(A) the calendar year
in which the employee reaches age 70 1/2 (age 72 for distributions required to
be made after December 31, 2019, with respect to a member who would have
attained age 701/2 after December 31, 2019), or
(B) the calendar year in which the employee
retires.
(6) For
purposes of determining benefits, the life expectancy of a member, a member's
spouse or a member's beneficiary shall not be recalculated after benefits
commence.
(7) The amount of
benefits payable to a member's beneficiary may not exceed the maximum
determined under the incidental death benefit requirement of Internal Revenue
Code Section 401(a)(9)(G).
Added at 11 Ok Reg 4783,
eff 9-12-94 through 7-14-95 (emergency)1; Added at
12 Ok Reg 3283, eff 7-27-95; Amended at 22 Ok Reg 2649, eff
7-11-05
Amended by
Oklahoma
Register, Volume 38, Issue 23, August 16, 2021, eff.
8/26/2021
1This emergency action expired
before being superseded by a permanent action. Upon expiration of an emergency
action enacting a new Section, the Section is no longer effective. Therefore,
on 7-15-95 (after the 7-14-95 expiration of the emergency action), the text of
section 715:1-1-15 was no longer effective, and remained as such until added by
permanent action on 7-27-95.
