Oklahoma Administrative Code › Title 590 - Oklahoma Public Employees Retirement System › Chapter 10 - Public Employees Retirement System › Subchapter 1 - General Provisions › Section 590:10-1-4 - Health insurance contribution

Current through Vol. 41, No. 20, July 1, 2024
(a)
				The Oklahoma Public Employees Retirement System shall contribute the amount
				required by law towards the cost of health insurance coverage under the State
				and Education Employees Group Insurance Plan or other eligible group insurance
				plans only for retired members who actually receive a monthly retirement
				benefit for that month. This contribution shall not be made for beneficiaries,
				survivors or directly to the retired member.
(b) For eligible group health insurance plans
				other than the State and Education Employees Group Insurance Plan, the System
				will contribute the amount required by law after the group insurance plan has
				made application to the System and completed any necessary and required forms
				and/or agreements. The group insurance plan must be in compliance with Oklahoma
				law and offer insurance to all of the covered participating employer's
				employees, former employees who are vested and former employees who retired
				from that covered employer. The insurance plan shall provide a certification
				monthly detailing each covered retired member in the form and manner required
				by the System. The subsidy shall be paid in arrears for each eligible retired
				member.
(c) Pursuant to the federal
				Internal Revenue Code Section 401(h) and Treasury Regulation §1.401-14, the
				Retirement Medical Benefit Fund shall be maintained as a sub-account of the
				Oklahoma Public Employees Retirement Fund. From the Retirement Medical Benefit
				Fund, OPERS shall remit the amount specified in 74 O.S. Section
				1316.2
				for health insurance premiums.
(d)
				All contributions to the Retirement Medical Benefit Fund shall be reasonable
				and ascertainable.
(e)
				Contributions to the Retirement Medical Benefit Fund must be subordinate to the
				contributions to the Oklahoma Public Employees Retirement Fund for retirement
				benefits. At no time shall the aggregate actual contributions to the Retirement
				Medical Benefit Fund (when added to actual contributions for life insurance
				protection under the plan, if any) be in excess of twenty-five percent (25%) of
				the total aggregate actual contributions made to the Oklahoma Public Employees
				Retirement Fund (not including contributions to fund past service credits). The
				Board shall annually determine whether the twenty-five (25%) test has been met.
				If at any time the Retirement Medical Benefit Fund contributions (plus any life
				insurance contributions) would exceed the twenty-five percent (25%) test, the
				excess amount of contributions shall be transferred to the Oklahoma Public
				Employees Retirement Fund for retirement benefits.
(f) Forfeitures in the Retirement Medical
				Benefit Fund shall not be allocated to individual accounts under the fund, but
				shall be used for account expenses.
(g) At no time prior to the satisfaction of
				all liabilities under the Retirement Medical Benefit Fund or termination of the
				fund shall any assets in the fund be used for, or diverted to, any purpose
				other than the providing of payment of the Oklahoma Public Employees System's
				portion of the monthly retiree health insurance premium benefit described by
				Title 74 O.S. Section
				1316.2
				and the payment of administrative expenses. Assets in the Retirement Medical
				Benefit Fund may not be used for retirement or disability benefits or any other
				purposes for which other assets held in the Oklahoma Employees Retirement Fund
				are used.
(h) The provisions of
				section 401(h)(5) of the Internal Revenue Code of 1986, as amended from time to
				time, shall apply upon the satisfaction of all liabilities under law and the
				Oklahoma Public Employees Retirement Fund.
Amended at 20 Ok Reg
				  1750, eff 6-12-03; Amended at 21 Ok Reg 1759, eff 6-11-04; Amended at 22 Ok Reg
				  2679, eff 6-7-05 (emergency); Amended at 23 Ok Reg 1482, eff
				  5-25-06