Oklahoma Administrative Code › Title 395 - Oklahoma Law Enforcement Retirement System › Chapter 10 - Retirement and Pension Benefit Program › Section 395:10-1-9.1 - Purchase price payments/transfer of credited service

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 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 payment 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. 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 increments. The minimum total monthly payment is $25.00. 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. Any 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 purchase price with interest due through date of payment or receiving partial credit for payments made under the installment schedule as provided for in subsection (4) of this section.
(3) The monthly 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) 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 his beneficiary will have the option of paying the remaining balance within the original contract period. In the event the actuarial purchase price is paid prior to the end of the contract period, the amount to be paid shall be the balance of the actuarial purchase price with interest due through the date of payment. If the balance is not paid, the member will receive credit for service prorated for only the actuarial purchase price 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 original contract period provided for in subsection (4) of this section, no benefits will be payable until the completion of the original contract 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 of the member who is in an unpaid leave status, in the following circumstances:
(A) if payroll is insufficient to handle the entire payment,
(B) in the event of payroll error where employer fails to withhold the proper amount, or
(C) during the original contract period referred to in subsection (4) of this section.
(7) If the purchase is terminated for any reason, the purchase cannot be made at anytime in the future, following the original contract period 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.