Oklahoma Administrative Code › Title 715 - Teachers' Retirement System › Chapter 10 - General Operations › Subchapter 23 - State and Education Employees Group Health and Dental Insurance Program › Section 715:10-23-6 - Health Insurance Contribution

Current through Vol. 41, No. 20, July 1, 2024
(a)
				The Oklahoma Teachers' Retirement System shall contribute the amount required
				by law towards the cost of health insurance coverage under the State and
				Education Employees Group Insurance Plan or other eligible group insurance
				plans only for retired members who actually receive a monthly retirement
				benefit for that month. This contribution shall not be made for beneficiaries,
				survivors or directly to the retired member.
(b) For eligible group health insurance plans
				other than the State and Education Employees Group Insurance Plan, the System
				will contribute the amount required by law after the group insurance plan has
				made application to the System and completed any necessary and required forms
				and/or agreements. The group insurance plan must be in compliance with Oklahoma
				law and offer insurance to all of the covered participating employer's
				employees, former employees who are vested and former employees who retired
				from that covered employer. The insurance plan shall provide a certification
				monthly detailing each covered retired member in the form and manner required
				by the System. The subsidy shall be paid in arrears for each eligible retired
				member.
(c) As provided under 70
				O.S. Section
				17-108(13),
				and pursuant to the federal Internal Revenue Code Section 401(h) and Treasury
				Regulation §1.401-14, the Retirement Medical Benefit Fund shall be maintained
				as a sub-account of the Retirement Benefit Fund. From the Retirement Medical
				Benefit Fund, the System shall remit the amount specified in 74 O.S. Section
				1316.3
				for health insurance premiums.
(d)
				All contributions to the Retirement Medical Benefit Fund shall be reasonable
				and ascertainable.
(e)
				Contributions to the Retirement Medical Benefit Fund must be subordinate to the
				contributions to the Retirement Benefit Fund for retirement benefits. At no
				time shall the aggregate actual contributions to the Retirement Medical Benefit
				Fund (when added to actual contributions for life insurance protection under
				the plan, if any) be in excess of twenty-five percent (25%) of the total
				aggregate actual contributions made to the Retirement Benefit Fund (not
				including contributions to fund past service credits). The Board shall annually
				determine whether the twenty-five (25%) test has been met. If at any time the
				Retirement Medical Benefit Fund contributions (plus any life insurance
				contributions) would exceed the twenty-five percent (25%) test, the excess
				amount of contributions shall be transferred to the Retirement Benefit Fund for
				retirement benefits.
(f)
				Forfeitures in the Retirement Medical Benefit Fund shall not be allocated to
				individual accounts under the fund, but shall be used for account
				expenses.
(g) At no time prior to
				the satisfaction of all liabilities under the Retirement Medical Benefit Fund
				or termination of the fund shall any assets in the fund be used for, or
				diverted to, any purpose other than the providing of payment of the System's
				portion of the monthly retiree health insurance premium benefit described by
				Title 74 O.S. Section
				1316.3
				and the payment of administrative expenses. Assets in the Retirement Medical
				Benefit Fund may not be used for retirement or disability benefits or any other
				purposes for which other assets held in the Retirement Benefit Fund are
				used.
(h) The provisions of section
				401(h)(5) of the Internal Revenue Code of 1986, as amended from time to time,
				shall apply upon the satisfaction of all liabilities under law and the
				Retirement Benefit Fund.
Added at 30 Ok Reg 1481, eff
					 7-1-13