Oklahoma Administrative Code › Title 715 - Teachers' Retirement System › Chapter 10 - General Operations › Subchapter 5 - Establishing Other Service Credits › Section 715:10-5-4 - Cost to purchase Oklahoma service

Current through Vol. 41, No. 20, July 1, 2024
The purchase price for each year of Oklahoma service, unless
				  otherwise specified, shall be based on the actuarial cost of the incremental
				  projected benefits being purchased.
(1) The actuarial cost and any tables
				formulated for the purpose of determining such cost shall be based on the
				actuarial assumptions adopted by the Board of Trustees to be utilized in the
				actuarial valuation report for the Fiscal Year beginning each July 1. New
				actuarial assumptions approved by the Board subsequent to January 1, 1991,
				shall be incorporated into such tables with an effective date of the next
				January 1.
(2) The actuarial value
				shall be based upon the member's age, full-time equivalent salary and
				contribution level at the time of purchase (or the annual salary of the
				previous year, if greater), together with the earliest age for retirement with
				maximum benefits and actuarially assumed salary at time of retirement. If
				purchase is not made by the due date on the billing statement, the purchase
				must be recalculated and the actuarial cost may increase.
(3) For purposes of this actuarial cost, the
				member's age shall be determined as the age at last birthday.
(4) For purposes of this actuarial cost, the
				mortality tables shall be based upon mortality tables adopted by the Board of
				Trustees.
(5) The actuarial cost
				shall not be less than the contributions required of the member at a rate
				commensurate with the salary earned as a regular full-time employee the last
				preceding school year prior to the purchase. Individuals employed on a less
				than full time basis shall have their salary adjusted upward, in a pro rata
				manner, to the amount that would be earned if employed full-time.
(6) Payment may be made in a lump sum for all
				eligible years of service or in installments equal to establishing one (1) year
				of creditable service.
(7) A
				billing statement will be issued at the request of the member. The due date of
				payment shall be the date prior to the member's next birthday or June 30,
				whichever occurs first.
(8) A
				member may request payment of past service credits billed in accordance with
				provisions of 70 O.S. Section 17-116.8, as amended, to be amortized in monthly
				installments of not more than sixty (60) months. A payment schedule may be
				established allowing the member to make monthly payments directly to Teachers'
				Retirement or through payroll deductions by the member's employer if the
				employer agrees to make the deductions and remit payments to Teachers'
				Retirement. Payments remitted by an employer for its employees must be kept
				separate from the employer's regular retirement contributions and tax sheltered
				annuity deposits. Effective January 1, 2002, installment payments made through
				employer payroll deductions qualify for special tax treatment. (See OAC
				715:10-5-35.)
(9) The installment payment schedule provided
				for in this section must be in equal monthly increments of twelve-month periods
				not to exceed sixty (60) months. The member shall be responsible for
				maintaining the payment schedule. Payments are due on the first day of each
				month. A monthly 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 cost or receiving
				partial credit for payments made under the installment schedule as provided for
				in paragraph (11) of this section.
(10) 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 each year.
(11) 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 six (6) months. If the balance is not paid,
				the member will receive credit for service prorated in whole years for only the
				principal amount paid. Any payment balance that is not used in crediting whole
				years will be refunded to the member.
(12) Credit will not be awarded for partial
				years of service unless the member's employment record is such that one-half
				(1/2) year of credit is included in the original service to be purchased.
(13) 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 paragraph (11) of this
				section. All payments must be completed ninety (90) days prior to the effective
				retirement date of the member.
Amended at 10 Ok Reg
				  4829, eff 9-17-93 through 7-14-94 (emergency)1;
				  Amended at 11 Ok Reg 4251, eff 7-25-94; Amended at 16 Ok Reg 743, eff 10-5-98
				  through 7-14-99 (emergency)2; Amended at 16 Ok Reg
				  3567, eff 9-13-99; Amended at 18 Ok Reg 50, eff 10-3-00 (emergency); Amended at
				  18 Ok Reg 3152, eff 7-12-01; Amended at 19 Ok Reg 2729, eff 7-11-02; Amended at
				  25 Ok Reg 2598, eff 7-11-08; Revoked at 29 Ok Reg 854, eff
				  8-1-12
1This emergency action expired before being superseded by a
					 permanent action. Upon expiration of an emergency amendatory action, the last
					 prior permanent text is reinstated. Therefore, on 7-15-94 (after the 7-14-94
					 expiration of the emergency action), the text of section 715:10-5-4 reverted
					 back to the permanent text that was effective prior to the enactment of the
					 emergency action on 9-17-93, and remained as such until amended again by
					 permanent action on 7-25-94.
2This emergency action expired before being superseded by a
					 permanent action. Upon expiration of an emergency amendatory action, the last
					 prior permanent text is reinstated. Therefore, on 7-15-99 (after the 7-14-99
					 expiration of the emergency action), the text of section 715:10-5-4 reverted
					 back to the permanent text that became effective 7-25-94, as was last published
					 in the 1996 Edition of the OAC, and remained as such until amended again by
					 permanent action on 9-13-99.