Oklahoma § 20-1103G - Service credit - Computation of purchase price

§ 20-1103G. Service credit - Computation of purchase price

A. The Board of Trustees shall adopt rules for computation of

the purchase price for service credit. These rules shall base the

purchase price for each year purchased on the actuarial cost of the

incremental projected benefits to be purchased. The purchase price

shall represent the present value of the incremental projected

benefits discounted according to the member's age at the time of

purchase. Incremental projected benefits shall be the difference

between the projected benefit said member would receive without

purchasing the service credit and the projected benefit after

purchase of the service credit computed as of the earliest age at

which the member would be able to retire. Said computation shall

assume an unreduced benefit and be computed using interest and

mortality assumptions consistent with the actuarial assumptions

adopted by the Board of Trustees for purposes of preparing the

annual actuarial evaluation.

B. In the event that the member is unable to pay the purchase

price provided for in this section by the due date, the Board of

Trustees shall permit the members to amortize the purchase price

over a period not to exceed sixty (60) months. Said payments shall

be made by payroll deductions unless the Board of Trustees permits

an alternate payment source. The amortization shall include

interest in an amount not to exceed the actuarially assumed interest

rate adopted by the Board of Trustees for investment earnings each

year. Any member who ceases to make payment, terminates, retires or

dies before completing the payments provided for in this section

shall receive prorated service credit for only those payments made,

unless the unpaid balance is paid by said member, his or her estate

or successor in interest within six (6) months after said member's

death, termination of employment or retirement, provided no

retirement benefits shall be payable until the unpaid balance is

paid, unless said member or beneficiary affirmatively waives the

additional six-month period in which to pay the unpaid balance. The

Board of Trustees shall promulgate such rules as are necessary to

implement the provisions of this subsection.

Oklahoma Statutes - Title 20. Courts

C. Current contributing members who, as former members,

withdrew their accumulated contributions, may amortize the cost of

returning the withdrawn contributions over a period of not to exceed

sixty (60) months. Said payments shall be made by payroll

deductions unless the Board of Trustees permits an alternate payment

source. The amortization shall include interest in an amount not to

exceed the actuarially assumed interest rate adopted by the Board of

Trustees for investment earnings each year. Any member who ceases

to make payments, terminates, retires or dies before completing the

payments provided in this subsection shall be refunded all related

payments made, and all related credited service and other related

benefits shall be canceled unless the unpaid balance is paid by said

member, his or her estate or successor in interest within six (6)

months after said member’s death, termination of employment or

retirement. No retirement benefits shall be payable until the

unpaid balance is paid, unless said member or beneficiary

affirmatively waives the additional six-month period in which to pay

the unpaid balance. The Board of Trustees shall promulgate such

rules as are necessary to implement the provisions of this

subsection.

Added by Laws 1990, c. 340, § 19, eff. July 1, 1990. Amended by

Laws 1993, c. 322, § 6, emerg. eff. June 7, 1993; Laws 1999, c. 257,

§ 17, eff. July 1, 1999.