Oklahoma § 74-918 - Retirement benefit payment options

§ 74-918. Retirement benefit payment options

(1) Except as otherwise provided for in this section and

Section 918.1 of this title, a member may elect to have the

retirement benefit paid under one of the options provided in this

section in lieu of having it paid in the form stated in Section 915

of this title. The election of an option must be made at any time

prior to retirement or prior to termination of service with a vested

benefit. A specific person must be designated as joint annuitant at

the time of election of Option A or B. Election of an option is

available with respect to the vested benefit. All retirement

benefits of a married member shall be paid pursuant to the Option A

plan as provided for in this section unless the spouse of a member

consents in writing for the benefits to be paid as provided for in

Section 915 of this title or pursuant to Option C as provided for in

this section. The spouse of the member is not required to consent

in writing to the election of the Option B plan by the member.

(2) The amount of retirement benefit payable under an option

shall be based on the age and sex of the member and the age and sex

of the joint annuitant, and shall be such amount as to be the

actuarial equivalent of the retirement benefit otherwise payable

under Section 915 of this title.

(3) The retirement options are:

Option A. Joint and one-half to joint annuitant survivor. A

reduced retirement benefit is payable to the retiree during his or

her lifetime with one-half (1/2) of that amount continued to the

joint annuitant during such joint annuitant's remaining lifetime, if

any, after the death of the retiree. If the named joint annuitant

dies at any time after the member's retirement date, but before the

death of the retiree, the retiree shall return to the retirement

benefit, including any post-retirement benefit increases the member

would have received had the member not selected Option A. The

benefit shall be determined at the date of death of the named joint

annuitant or July 1, 1994, whichever is later. This increase shall

become effective the first day of the month following the date of

death of the named joint annuitant or July 1, 1994, whichever is

later, and shall be payable for the retiree's remaining lifetime.

The retiree shall notify the Oklahoma Public Employees Retirement

System of the death of the named joint annuitant in writing. In the

absence of the written notice being filed by the member notifying

the Oklahoma Public Employees Retirement System of the death of the

Oklahoma Statutes - Title 74. State Government

named joint annuitant within six (6) months of the date of death,

nothing in this subsection shall require the Oklahoma Public

Employees Retirement System to pay more than six (6) months of

retrospective benefits increase.

Option B. Joint and survivor. A reduced retirement benefit is

payable to the retiree during his or her lifetime with that amount

continued to the joint annuitant during the joint annuitant's

remaining lifetime, if any, after the death of the retiree. If the

named joint annuitant dies at any time after the member's retirement

date, but before the death of the retiree, the retiree shall return

to the retirement benefit, including any post retirement benefit

increases the member would have received had the member not selected

Option B. The benefit shall be determined at the date of death of

the named joint annuitant or July 1, 1994, whichever is later. This

increase shall become effective the first day of the month following

the date of death of the named joint annuitant or July 1, 1994,

whichever is later, and shall be payable for the retiree's remaining

lifetime. The retiree shall notify the Oklahoma Public Employees

Retirement System of the death of the named joint annuitant in

writing. In the absence of such written notice being filed by the

member notifying the Oklahoma Public Employees Retirement System of

the death of the named joint annuitant within six (6) months of the

date of death, nothing in this subsection shall require the Oklahoma

Public Employees Retirement System to pay more than six (6) months

of retrospective benefits increase.

Option C. Life with ten (10) years certain. A reduced

retirement benefit is payable to the retiree during his or her

lifetime and if the retiree dies within the ten-year certain period,

measured from the commencement of retirement benefits payments, such

payments will be continued to the beneficiary during the balance of

the ten-year certain period. If the retiree dies within the tenyear certain period, and there are no living designated

beneficiaries, the person responsible for the estate of the retiree

may elect for the estate to be paid the benefits for the remainder

of the term or to receive the present value of the remaining benefit

payments according to rules adopted by the Board of Trustees of the

System. If the retiree predeceases a designated beneficiary within

the ten-year certain period, and the beneficiary dies after the

beneficiary has begun to receive benefits, the person responsible

for the estate of the beneficiary may elect for the estate to be

paid the benefits for the remainder of the term or to receive the

present value of the remaining benefit payments according to rules

adopted by the Board of Trustees of the System.

(4) If the selection of a joint annuitant would violate the

distribution requirements contained in Section 918.1 of this title,

such selection will not be permitted.

Oklahoma Statutes - Title 74. State Government

(5) If a member who is eligible to retire in accordance with

the provisions of Section 914 of this title but is not actually

retired or is eligible to vest or has elected a vested benefit dies,

the member's spouse may elect to receive benefits as a joint

annuitant under Option B calculated as if the member retired on the

date of death, in lieu of receiving the member's accumulated

contributions. However, no benefits shall be payable before the

date the deceased member would have met the requirements for a

normal or early retirement. The provisions of this paragraph shall

be applicable to a surviving spouse of a deceased member who died

prior to the effective date of this act, but only if no benefits or

distributions have been previously paid.

(6) Benefits payable to a joint annuitant shall accrue from the

first day of the month following the death of a member or retiree

and, in the case of Option A and Option B, shall end on the last day

of the month in which the joint annuitant dies.

Added by Laws 1963, c. 50, § 18, emerg. eff. May 6, 1963. Amended

by Laws 1965, c. 432, § 7, emerg. eff. July 9, 1965; Laws 1975, c.

253, § 3, emerg. eff. June 2, 1975; Laws 1978, c. 206, § 2; Laws

1985, c. 300, § 8, emerg. eff. July 24, 1985; Laws 1991, c. 211, §

1, emerg. eff. May 21, 1991; Laws 1993, c. 322, § 27, emerg. eff.

June 7, 1993; Laws 1994, c. 371, § 2, eff. July 1, 1994; Laws 1997,

c. 216, § 1, eff. July 1, 1997; Laws 1999, c. 257, § 41, eff. July

1, 1999; Laws 2002, c. 438, § 7, eff. July 1, 2002; Laws 2003, c. 3,

§ 98, emerg. eff. March 19, 2003; Laws 2006, 2nd Ex. Sess., c. 46, §

33, eff. July 1, 2006; Laws 2021, c. 190, § 6, eff. Nov. 1, 2021;

Laws 2024, c. 47, § 2, eff. Nov. 1, 2024.

NOTE: Laws 2002, c. 354, § 4 repealed by Laws 2003, c. 3, § 99,

emerg. eff. March 19, 2003.