Oklahoma § 74-935.7 - Employee vesting – Investment options

§ 74-935.7. Employee vesting – Investment options

A. Participating employees shall at all times be vested at one

hundred percent (100%) of their accounts containing solely their

employee contributions, and the gains or losses on these

contributions. Participating employees will have investment

discretion over these accounts within the available options offered

by the Board.

B. Participating employees shall be vested with respect to the

employer matching amounts, and the gains or losses on these funds,

deposited into their defined contribution system account or accounts

according to the following schedule based on years of participating

service:

Year 1

20%

Year 2

40%

Year 3

60%

Year 4

80%

Year 5 and thereafter

100%

C. Participating employees will have investment discretion over

all employer contributions.

D. For purposes of determining a participating employee's right

to withdraw employer matching contributions and any investment gains

upon such employer contribution matching amounts, the vesting

percentages apply at the end of each full year of service as

described in subsection B of this section.

E. For participating employees who do not select any investment

options, the OPERS Board will establish default investment options

for the contributions received from participating employees and

default investment options for matching employer contributions.

F. To the extent that participants leave employment and have

not vested in all of the employer contributions, the nonvested

employer contributions, including any gains or losses, shall be

immediately forfeited to the 401(a) plan and may be used to offset

costs of administering the plan or as permitted by federal law.

Upon reemployment with an employer and satisfying the eligibility

requirements to become a participant, the reemployed participant

shall receive credit for previous service and be vested at the same

percentage the participant was vested when service was previously

terminated. However, under no circumstances shall the participant

be entitled to any previously forfeited employer contributions.

Added by Laws 2014, c. 375, § 7, eff. Nov. 1, 2014. Amended by Laws

2015, c. 303, § 4, eff. Nov. 1, 2015; Laws 2024, c. 47, § 3, eff.

Nov. 1, 2024.

Oklahoma Statutes - Title 74. State Government