Oklahoma Administrative Code › Title 590 - Oklahoma Public Employees Retirement System › Chapter 15 - Uniform Retirement System for Justices and Judges › Subchapter 1 - General Provisions › Section 590:15-1-10 - Purchase price payments

Current through Vol. 41, No. 20, July 1, 2024
(a)
				An active member of the System may elect the payment of the actuarial purchase
				price, the repayment of a previous withdrawal, or any other purchase or
				repayment permitted and authorized by the statutes governing the System, to be
				amortized in monthly installments to the extent allowed by law.
(1) A payment schedule may be established
				allowing the member to make monthly payments through payroll deductions by the
				member's employer if the employer agrees to make the deductions and remit
				payments to the System. Payments remitted by an employer for its employees must
				be kept separate from employer's regular retirement contributions or any other
				payments to the System including Deferred Compensation. Such payments do not
				qualify as "pre-tax" contributions under "employer pick-up" provisions of
				Section 414(h) of the Internal Revenue Code.
(2) The installment payment schedule provided
				for in this section must be in monthly increments not to exceed sixty (60)
				months. The minimum total monthly payment is $25.00. The member shall be
				responsible for maintaining the payment schedule. The payment due date will be
				based on the payroll schedule set by the member's employer. An installment not
				paid within sixty (60) days of the due date will result in termination of the
				installment payment schedule with the member given the option of paying the
				balance of the actuarial cost or receiving partial credit for payments made
				under the installment schedule as provided for in subsection (4) of this
				section.
(3) The monthly payment
				will be determined by amortizing the total amount due for the service to be
				purchased over the period of the installment schedule using an interest rate
				equal to the actuarially assumed interest rate adopted by the Board of Trustees
				for investment earnings for the year in which the payment schedule is
				commenced.
(4) Except as provided
				in subsection (8) of this section, if the installment payment is terminated for
				any reason, including termination of employment, death of the member or by
				cessation of payments, the member or the beneficiary of the member will have
				the option of paying the remaining balance within six (6) months. If the
				balance is not paid, the member will receive credit for service prorated for
				only the principal amount paid and rounded to the last full month paid for. No
				refunds will be paid to the member.
(5) Credit for service purchased on an
				installment schedule will not be added to the member's account until the entire
				balance is paid, except as provided for in subsection (4) of this section. All
				payments must be completed in the month prior to the effective retirement date
				of the member. If any member or beneficiary elects to pay the balance during
				the six (6) month period provided for in Subsection (4) of this Section, no
				benefits will be payable until the completion of said six (6) month period, or
				receipt of a signed waiver. In no event will retroactive benefit payments be
				made, and the effective retirement date will be adjusted to the first day of
				the month following the completion of payments or receipt of waiver.
(6) Payments may be made directly to the
				System by the member or beneficiary if the member is in an unpaid leave status,
				if the payroll is not sufficient to handle the entire payment, in the event of
				payroll error where employer fails to withhold the proper amount or during the
				six (6) month period referred to in subsection (4) of this Section.
(7) Except as provided in subsection (8) of
				this section, if the purchase is terminated for any reason, the purchase cannot
				be made at anytime in the future, following the six (6) month option referred
				to in Subsection (4) of this Section. By failing to complete this purchase, the
				member or beneficiary forfeits the right to the purchase at any other
				time.
(8) If the installment
				payment for the repayment of a previous withdrawal is terminated for any
				reason, the member, upon returning to employment and meeting the eligibility
				requirements for membership, may pay the remaining principal balance at any
				time prior to the month of the effective retirement date. The total due shall
				be the unpaid principal balance, plus interest pursuant to 20 O.S. §
										1103C,
				calculated from the date of the last installment payment received and paid in a
				one-time lump sum amount.