Oklahoma Administrative Code › Title 590 - Oklahoma Public Employees Retirement System › Chapter 10 - Public Employees Retirement System › Subchapter 5 - Contributions and Compensation › Section 590:10-5-1 - Maximum level

Current through Vol. 41, No. 20, July 1, 2024
(a) For service
				prior to July 1, 1994, members may elect to have a maximum compensation level
				for retirement purposes of up to Forty Thousand Dollars ($40,000.00) per annum.
				For service after July 1, 1994, contributions are required on all allowable
				compensation up to the maximum compensation level set by Statute.
(b) Effective with respect to plan years
				beginning on and after July 1, 1996, and before July 1, 2002, the annual
				compensation of a plan member which exceeds One Hundred Fifty Thousand Dollars
				($150,000.00) (as adjusted for cost-of-living increases under Section
				401(a)(17)(B) of the Internal Revenue Code) shall be disregarded for purposes
				of computing employee and employer contributions to or benefits due from the
				retirement system. Effective only for the 1996 plan year, in determining the
				compensation of an employee eligible for consideration under this provision,
				the rules of Section 414(g)(6) of the Internal Revenue Code shall apply, except
				that in applying such rules, the term "family" shall include only the spouse of
				the member and any lineal descendants of the employee who have not attained age
				19 before the close of the year.
(c) Effective with respect to plan years
				beginning on and after July 1, 2002, the annual compensation of a plan member
				which exceeds Two Hundred Thousand Dollars ($200,000.00) (as adjusted for
				cost-of-living increases in accordance with Section 401(a)(17)(B) of the
				Internal Revenue Code) may not be taken into account in determining benefits or
				contributions due for any plan year. Annual compensation means compensation
				during the plan year or such other consecutive 12-month period over which
				compensation is otherwise determined under the plan (the determination period).
				The cost-of-living adjustment in effect for a calendar year applies to annual
				compensation for the determination period that begins with or within such
				calendar year. If the determination period consists of fewer than 12 months,
				the annual compensation limit is an amount equal to the otherwise applicable
				annual compensation limit multiplied by a fraction, the numerator of which is
				the number of months in the short determination period, and the denominator of
				which is 12. If the compensation for any prior determination period is taken
				into account in determining a plan member's contributions or benefits for the
				current plan year, the compensation for such prior determination period is
				subject to the applicable annual compensation limit in effect for that prior
				period.
(d) As used in this
				section, the term "eligible member" means a person who first became a member of
				the retirement system prior to the plan year beginning after December 31, 1995.
				Pursuant to Section 13212(d)(3)(A) of the Omnibus Budget Reconciliation Act of
				1993, and the regulations issued under that section, eligible members are not
				subject to the limits of Section 401(a)(17) of the Internal Revenue Code, and
				the maximum compensation used in computing employee and employer contributions
				to or benefits due from the retirement system for eligible members shall be the
				maximum amount allowed by the retirement system to be so used on July 1, 1993.
				The limits referenced in subsections (b) and (c) above apply only to years
				beginning after December 31, 1995, and only to individuals who first become
				plan members in plan years beginning on and after July 1, 1996.
Amended at 12 Ok Reg
				  3237, eff 7-27-95; Amended at 19 Ok Reg 741, eff 12-20-01 (emergency); Amended
				  at 19 Ok Reg 1477, eff 5-28-02; Amended at 27 Ok Reg 1032, eff
				  5-13-10