Oklahoma Administrative Code › Title 590 - Oklahoma Public Employees Retirement System › Chapter 40 - Defined Contribution System › Subchapter 7 - Defined Contribution 401(A) Plan › Part 11 - LIMITATIONS ON ANNUAL ADDITIONS › Section 590:40-7-46 - Definitions

Current through Vol. 41, No. 20, July 1, 2024
The following words or terms, when used in this Part 11 of
					 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 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 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. The
					 compensation limit in (ii) of Section 590:40-7-45(a) shall not apply to any
					 contribution for medical benefits (within the meaning of Code Section 401(h) or
					 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 590:40-7-47 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 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
					 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 Participant).
					 Compensation shall also include contributions made pursuant to a salary
					 reduction agreement which are not includable in the gross income of the
					 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
					 Participant within the Limitation Year. Notwithstanding the preceding sentence,
					 Compensation for a Participant who is permanently and totally disabled (as
					 defined in Code Section 22(e)(3)) is the Compensation such Participant would
					 have received for the Limitation Year if such 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 Participants who are permanently and totally disabled for a fixed
					 or determinable period, then imputed Compensation may be taken into account for
					 a disabled Participant. Such contributions on behalf of a permanently and
					 totally disabled Participant must be nonforfeitable when made.
(B) Payments made by the later of 2 ½ months after
					 severance from employment or the end of the Limitation Year that includes the
					 date of the 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 Participant while the Participant continued in
					 employment with the Employer and are:
(i) Regular compensation for services during the
					 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 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
					 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 ½ 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 calendar year, as
					 increased for the cost-of-living adjustment.
"Limitation Year"
means the calendar
					 year.