Oklahoma § 74-913.5 - Service credit - Computation of purchase price Amortizing cost of returning withdrawn or unremitted contributions

§ 74-913.5. Service credit - Computation of purchase price Amortizing cost of returning withdrawn or unremitted contributions

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

Oklahoma Statutes - Title 74. State Government

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 State Board 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.

C. Current contributing members who, as former members,

withdrew their accumulated contributions, contributing elected

members who at the time of initial eligibility to participate as a

member of the System elected not to participate, and/or contributing

elected members who at the time of eligibility to participate as a

member of the System elected to participate but did not elect to

participate at the maximum contribution rate may amortize the cost

of returning the withdrawn contributions, unremitted contributions

or required actuarial cost 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.

Oklahoma Statutes - Title 74. State Government

Added by Laws 1990, c. 340, § 39, eff. July 1, 1990. Amended by

Laws 1993, c. 322, § 20, emerg. eff. June 7, 1993; Laws 1995, c.

302, § 4, eff. July 1, 1995; Laws 1999, c. 257, § 36, eff. July 1,

1999.