Oklahoma Administrative Code › Title 590 - Oklahoma Public Employees Retirement System › Chapter 10 - Public Employees Retirement System › Subchapter 3 - Credited Service › Section 590:10-3-9 - 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, repayment of a previous withdrawal, purchase of previous
				non-participating elected service, or to purchase an increase in the
				contribution rate, 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 or bi-weekly
				increments. The minimum total monthly payment is $25.00. The minimum bi-weekly
				payment is $12.50. 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 installment 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 6 month period provided for in Subsection (4) of this Section, no benefits
				will be payable until the completion of said 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 any time in the future following the 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 74 O.S. § 917(5),
				calculated from the date of the last installment payment received and paid in a
				one-time lump sum amount.