Oklahoma Administrative Code › Title 590 - Oklahoma Public Employees Retirement System › Chapter 35 - Deferred Savings Incentive Plan › Subchapter 15 - Limitations on Annual Additions › Section 590:35-15-2 - Definitions

Current through Vol. 41, No. 20, July 1, 2024
The following words or terms, when used in this Subchapter,
				  shall have the following meanings, unless the context clearly indicates
				  otherwise.
"Annual addition"
means the sum for any Plan
				  year of the following amounts allocated on behalf of a Qualified Participant
				  for a Limitation Year:
(A) All Employer contributions;
(B) All Qualified Participant contributions determined
				  without regard to any rollover contributions (as defined in Code Sections
				  402(c), 403(a)(4), 403(b)(8), and 408(d)(3)) without regard to Qualified
				  Participant contributions to a simplified employee pension which are excludable
				  from gross income under Code Section 408(k)(6);
(C) All forfeitures;
(D) Amounts allocated to an individual medical account, as
				  defined in Code Section 415(l)(2), which is part of a pension or annuity plan
				  maintained by the Employer; and
(E) Amounts derived from contributions which are attributable
				  to post-retirement benefits allocated to the separate account of a key
				  employee, as defined in Code Section 419A(d)(3), under a welfare benefit fund,
				  as defined in Code Section 419(e), maintained by the Employer. Subparagraph
				  (ii) of Section
				  590:35-15-1 shall not
				  apply to any contribution for medical benefits (within the meaning of Code
				  Section 419A(f)(2)) after separation from service which is treated as an Annual
				  addition. For purposes of this Subchapter, excess amounts reapplied to reduce
				  Employer contributions under Section 590:-15-3 in the Limitation Year shall
				  also be included as an Annual Addition for such Limitation Year.
"Compensation"
means:
(A) For purposes of applying the limitation of Code Section
				  415, a Qualified Participant's wages, salaries, fees for professional services,
				  and other amounts received (without regard to whether or not an amount is paid
				  in cash) for personal services actually rendered in the course of employment
				  with the Employer maintaining this Plan to the extent that the amounts are
				  includable in gross income (including, but not limited to, commissions paid
				  salesmen, compensation for services on the basis of a percentage of profits,
				  commissions on insurance premiums, tips, bonuses, fringe benefits, and
				  reimbursements or other expense allowances under a nonaccountable plan (as
				  described in Treasury Regulation Section 1.62-2(c)), and excluding the
				  following:
(i) Distributions from a plan of deferred compensation,
				  regardless of whether such amounts are includable in the gross income of the
				  Qualified Participant when distributed; and
(ii) other amounts which receive special tax benefits, such
				  as premiums for group-term life insurance (but only to the extent that the
				  premiums are not includable in the gross income of the Qualified Participant).
				  Compensation shall also include contributions made pursuant to a salary
				  reduction agreement which are not includable in the gross income of the
				  Qualified Participant under Code Sections 125, 132(f)(4), 401(k), 408(k),
				  403(b) or 457. For purposes of applying the limitation of this Subchapter,
				  Compensation for a Limitation Year is the Compensation actually paid or made
				  available to the Qualified Participant within the Limitation Year.
				  Notwithstanding the preceding sentence, Compensation for a Qualified
				  Participant who is permanently and totally disabled (as defined in Code Section
				  22(e)(3)) is the Compensation such Qualified Participant would have received
				  for the Limitation Year if such Qualified Participant had been paid at the rate
				  of Compensation paid immediately before becoming permanently and totally
				  disabled. If the Plan provides for the continuation of such contributions on
				  behalf of all Qualified Participants who are permanently and totally disabled
				  for a fixed or determinable period, then imputed Compensation may be taken into
				  account for a disabled Qualified Participant. Such contributions on behalf of a
				  permanently and totally disabled Qualified Participant must be nonforfeitable
				  when made.
(B) Payments made by the later of 2 1/2 months after
				  severance from employment or the end of the limitation year that includes the
				  date of the Qualified Participant's severance from employment shall be included
				  in compensation if they are payments that, absent a severance from employment,
				  would have been paid to the Qualified Participant while the Qualified
				  Participant continued in employment with the Employer and are:
(i) Regular compensation for services during the Qualified
				  Participant's regular working hours, or compensation for services outside the
				  Participant's regular work hours (such as overtime or shift differential),
				  commissions, bonuses, or other similar payments, and the compensation would
				  have been paid to the Participant prior to a severance from employment if the
				  Participant had continued employment with the Employer; or
(ii) payments for unused accrued bona fide sick, vacation or
				  other leave, but only if the Qualified Participant would have been able to use
				  the leave if employment had continued; or
(iii) payments pursuant to a nonqualified unfunded deferred
				  compensation plan, but only if the payments would have been paid to the
				  Qualified Participant at the same time if the Participant had continued
				  employment with the Employer and only to the extent that the payment is
				  includible in the Qualified Participant's gross income.
(C) Any payments not described in paragraph (B) of this
				  definition are not considered compensation if paid after severance from
				  employment, even if they are paid within 2 1/2 months following severance from
				  employment. However, payments to the individual who does not currently perform
				  services for the Employer by reason of qualified military service (within the
				  meaning of Code Section 414(u)(1)) to the extent these payments do not exceed
				  the amounts the individual would have received if the individual had continued
				  to perform services for the Employer rather than entering qualified military
				  service.
(D) An employee who is in qualified military service (within
				  the meaning of Code Section 414(u)(1)) shall be treated as receiving
				  compensation from the employer during such period of qualified military service
				  equal to:
(i) the compensation the employee would have received during
				  such period if the employee were not in qualified military service, determined
				  based on the rate of pay the employee would have received from the employer but
				  for the absence during the period of qualified military service, or
(ii) if the compensation the employee would have received
				  during such period was not reasonably certain, the employee's average
				  compensation from the employer during the twelve month period immediately
				  preceding the qualified military service (or, if shorter, the period of
				  employment immediately preceding the qualified military service).
(E) For purposes of Code Section 415(c) and this subchapter,
				  compensation of each Participant taken into account in determining allocations
				  for any Plan Year shall not exceed the applicable limit established by Code
				  Section 401(a)(17) as of the first day of the Plan Year, as increased for the
				  cost-of-living adjustment (Two Hundred Thirty Thousand Dollars ($230,000 for
				  2008)). The cost-of-living adjustment in effect for a calendar year applies to
				  compensation for the Plan Year that begins with or within such calendar
				  year.
"Employer"
means, for purposes of this
				  Subchapter, the Employer and all members of a controlled group of corporations
				  (as defined in Code Section 414(b) and as modified by Code Section 415(h)), all
				  commonly controlled trades or businesses (as defined in Code Section 414(c) and
				  as modified by Code Section 415(h)), or an affiliated service group (as defined
				  in Code Section 414(m)), of which the adopting Employer is a part, and any
				  other entity required to be aggregated with the Employer pursuant to Treasury
				  Regulations under Code Section 414(o).
"Limitation year"
means the Plan Year ending on
				  December 31.
Added at 15 Ok Reg 793,
				  eff 11-12-97 (emergency); Added at 15 Ok Reg 3282, eff 7-13-98; Amended at 27
				  Ok Reg 1049, eff 5-13-10