Oklahoma Administrative Code › Title 270 - Oklahoma Firefighters Pension and Retirement System › Chapter 10 - Firefighters Pension and Retirement Plan › Section 270:10-1-9 - Purchase of transferred credited service

Current through Vol. 41, No. 20, July 1, 2024
A paid member may purchase of to five years of credited
				service earned while a member of the Oklahoma Police Pension and Retirement
				System, the Oklahoma Law Enforcement Retirement System, the Teacher's
				Retirement System of Oklahoma and the Oklahoma Public Employees Retirement
				System, provided the member is not eligible to receive retirement credits or
				benefits from said service in any other public retirement System. Transferred
				credited service from such retirement system(s) shall not alter the member's
				normal retirement date or vesting requirements. Transferred credited service
				shall be added after the member reaches his or her normal retirement date. All
				purchases of transferred credited service pursuant to 11 O.S. Section
				49-117.2,
				shall be based on the actuarial cost of the incremental projected benefits to
				be purchased.
(1) The actuarial cost
			 and any tables formulated for the purposes of determining such cost during each
			 calendar year, shall be based on the actuarial assumptions utilized in the
			 actuarial valuation report as of the preceding July 1.
(2) The actuarial value shall be based upon
			 the member's age, salary, and service at the time of purchase, together with
			 the earliest age for retirement and actuarially projected salary at the time of
			 retirement. For the purposes of the actuarial cost, it is assumed that all
			 members are married at the time of retirement. If no purchase is made within
			 thirty (30) days the actuarial cost may increase.
(3) For the purpose of this actuarial cost,
			 the member's age shall be rounded up or down to the nearest birthday.
(4) For the purpose of this
			 actuarial cost, the mortality tables shall be formulated as unisex tables as
			 used in the actuarial valuation report of the preceding July 1.
(5) In the event a member who chooses to
			 purchase service has been employed less than twelve (12) months, salary shall
			 be annualized based upon the most current completed calendar months of payroll
			 information.
(6) The purchase
			 price for transferred credited service may be paid in installments as provided
			 in 11 O.S. Section
			 49-117.3.
			 In the event that the member is unable to pay the purchase price by the end of
			 the month immediately following the date of acceptance of his or her
			 application to purchase transferred credited service, the State Board shall
			 permit the member 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 will include
			 7½% interest compounded annually.
(7) In lieu of installment payments (for
			 purchase where installment payments are otherwise allowed by Oklahoma state
			 statutes), an active member may elect to make the payment of the actuarial
			 purchase price, repayment of previous withdrawal, purchase of non-participating
			 service, or any other eligible purchase or repayment permitted and authorized
			 by the statutes governing the System, through:
(A) a direct trustee-to-trustee transfer of
			 non-Roth funds from a Code Section 403(b) annuity or custodial account, a
			 governmental Code Section 457 plan, and/or a Code Section 401(a) plan, or
(B) a direct rollover of
			 tax-deferred money from a Code Section 403(b) annuity or custodial account, a
			 governmental Code Section 457 plan, and/or a traditional or conduit Individual
			 Retirement Account or Annuity (IRA). Monies in Roth accounts and Coverdell
			 Education Savings Accounts cannot be used to purchase transferred credited
			 service. Tax-paid (after-tax) money cannot be used in a direct rollover. Any
			 tax-paid money from a plan or traditional or conduit IRA must be paid to member
			 and then the member may then write a personal check to the System.