Oklahoma Administrative Code › Title 590 - Oklahoma Public Employees Retirement System › Chapter 10 - Public Employees Retirement System › Subchapter 3 - Credited Service › Section 590:10-3-11 - Termination credit

Current through Vol. 41, No. 20, July 1, 2024
(a) Pursuant to 74
				O. S. §913c, certain eligible members of the System may purchase up to three
				(3) full years of termination credit.
(b) Following official notice from a
				participating employer of an approved reduction-in-force on or after July 1,
				1998, and of those employees subject to the reduction-in-force, the System will
				communicate detailed instructions about the purchase of termination credit to
				those members affected.
(c)
				Purchase of termination credit allows an eligible member to constructively
				participate as if still employed by a participating employer until reaching
				eligibility for a normal retirement date as defined in 74 O.S. §
									902(24).
				The purchase of termination credit represents the amount of service which would
				have accrued through the member's normal retirement date had they not been
				terminated due to a reduction-in-force and will allow an eligible member to
				preserve the same normal retirement date as he or she would have had if the
				member's position had not been terminated by a reduction-in-force.
(d) Members must have at least six (6) years
				of full-time equivalent employment with a participating employer in order to be
				eligible to purchase termination credit.
(e) Members who are within three (3) years of
				achieving eligibility for a normal retirement date based on age as set forth in
				74 O.S. §
									902(24),
				or who have accumulated at least 74 points toward the Rule of 80 or 84 points
				toward the Rule of 90 (those members who are within six (6) years of achieving
				eligibility for normal retirement under the 80/90 point provisions), are
				eligible to purchase termination credit if they are subject to a
				reduction-in-force.
(f) Members
				cannot purchase both termination credit and incentive credit.
(g) Members may purchase termination credit
				not to exceed the amount of years and months required to reach normal
				retirement. The maximum amount of termination credit which may be purchased is
				three (3) years of service.
(h) The
				cost to purchase termination credit will be an amount equal to the employee and
				employer contributions which would have been paid to the System based upon the
				last full month of compensation.
(i) To purchase termination credit, the
				member must file a written election of intent within six (6) months from the
				date the member is terminated. Payment in full must be received by the System
				within sixty (60) days of the filing of the election to purchase.
(j) Failure to make payment in full by the
				due date, returning to employment with a participating employer or retirement
				by the member or surviving spouse at any time prior to the normal retirement
				date will void the purchase of termination credit. The System will return the
				purchase price tendered.
Added at 16 Ok Reg 610,
				  eff 12-2-98 (emergency); Added at 16 Ok Reg 2010, eff 6-11-99; Amended at 29 Ok
				  Reg 49, eff 9-28-11 (emergency); Amended at 29 Ok Reg 498, eff
				  5-11-12