Oklahoma Administrative Code › Title 590 - Oklahoma Public Employees Retirement System › Chapter 10 - Public Employees Retirement System › Subchapter 7 - Retirement Benefits › Section 590:10-7-19 - Required minimum distributions

Current through Vol. 41, No. 20, July 1, 2024
(a)
				The retirement system will pay all benefits in accordance with a good faith
				interpretation of the requirements of Section 401(a)(9) of the Internal Revenue
				Code and the regulations in effect under that section, as applicable to a
				governmental plan within the meaning of Section 414(d) of the Internal Revenue
				Code. The retirement system is subject to the following provisions:
(1) Distribution of a member's benefit must
				begin by the required beginning date, which is the later of the April 1
				following the calendar year in which the member attains age 72 or such other
				date as may be permitted by the federal Internal Revenue Code or April 1 of the
				year following the calendar year in which the member terminates. If a member
				fails to apply for retirement benefits by the later of either of those dates,
				the Board shall begin distribution of the monthly benefit as required by this
				rule in the form provided in 74 O.S. §901 et seq.
(2) The member's entire interest must be
				distributed over the member's life or the lives of the member and a designated
				beneficiary, or over a period not extending beyond the life expectancy of the
				member or of the member and a designated beneficiary.
(3) If a member dies after the required
				distribution of benefits has begun, the remaining portion of the member's
				interest must be distributed at least as rapidly as under the method of
				distribution before the member's death.
(4) If a member dies before required
				distribution of the member's benefits has begun, the member's entire interest
				must be either:
(A) distributed (in
				accordance with federal regulations) over the life or life expectancy of the
				designated beneficiary, with the distributions beginning no later than December
				31 of the calendar year following the calendar year of the member's death (or,
				if the designated beneficiary is the member's surviving spouse, beginning no
				later than the date on which the member would have attained age 72 or such
				other date as may be permitted by the federal Internal Revenue Code),
				or
(B) distributed within five (5)
				years of the member's death.
(5) The amount of an annuity paid to a
				member's beneficiary may not exceed the maximum determined under the incidental
				death benefit requirement of Section 401(a)(9)(G) of the Internal Revenue Code,
				and the minimum distribution incidental benefit rule under Treasury Regulation
				Section 1.401(a)(9)-6, Q&A-2.
(6) The death and disability benefits
				provided by the retirement system are limited by the incidental benefit rule
				set forth in Section 401(a)(9)(G) of the Internal Revenue Code and Treasury
				Regulation Section 1.401-1(b)(1)(i) or any successor regulation thereto. As a
				result, the total death or disability benefits payable may not exceed
				twenty-five percent (25%) of the cost for all of the members' benefits received
				from the retirement system.