Oklahoma Administrative Code › Title 590 - Oklahoma Public Employees Retirement System › Chapter 40 - Defined Contribution System › Subchapter 3 - Administration of Defined Contribution System - Applicable to the 401(A) Plan and the 457(B) Plan › Section 590:40-3-8 - Discontinuance of contributions; termination; tax qualification

Current through Vol. 41, No. 20, July 1, 2024
(a)
Discontinuance of Plans.
It is the present intention of the State
				of Oklahoma to maintain these Plans. Nevertheless, the State reserves the
				right, at any time, to discontinue or terminate either one or both of the
				Plans, to terminate the Employer's liability to make further contributions to
				this Plan, and to suspend contributions for a fixed or indeterminate period of
				time.
(b)
Duties of
				Board.
If either of the Plans is curtailed, terminated, or the
				contributions suspended permanently, the Board of Trustees shall nonetheless be
				responsible for the supervision and the payment of the benefits resulting from
				amounts contributed and received by OPERS prior to the amendment, modification
				or termination in accordance with this Subchapter.
(c)
Notice of termination.
Either one or both of the Plans and related Trust or Trusts may be terminated
				at any time by the State, by giving notice in writing to the Board of Trustees,
				which notice shall recite the date upon which the termination shall be
				effective. After receipt of such notice, the Board of Trustees shall continue
				to hold, invest and administer the Plan or Plans and related Trusts until the
				assets are liquidated and distributed to the Participants and Beneficiaries.
				The distribution of assets shall occur as soon as administratively practicable
				after the termination of the Plan or Plans. The Trust shall terminate only when
				no assets of the Trust remain in the possession of the Board of
				Trustees.
(d)
Tax
				qualification of 401(a) plan.
The Trust created under Subchapter 7 of
				this Chapter is designated as constituting a part of the Plan intended to
				continue to qualify and to be tax exempt under Code Sections 401(a) and 501(a).
				Until advised otherwise, the Board of Trustees may conclusively assume this
				Trust is qualified under Code Section 501(a) and this Trust is exempt to that
				extent from federal income taxes. Anything herein to the contrary
				notwithstanding, if a determination letter is issued by the Internal Revenue
				Service to the effect that the Plan and Trust do not meet the requirements of
				Code Sections 401(a) and 501(a), the Employer shall be entitled, at its option,
				to withdraw all contributions made, in which event the Plan and the Trust shall
				then terminate and all rights of the Participants shall terminate effective as
				of the date of the adverse determination letter.
(e)
Tax status of the 457(b)
				plan.
The Trust created under Subchapter 9 of this Chapter is designated
				as constituting a part of the Plan intended to be tax exempt under Code
				Sections 457 and 501(a). Until advised otherwise, the Board may conclusively
				assume this Trust is tax exempt under Code Section 501(a) and is exempt from
				federal income taxes. Anything herein to the contrary notwithstanding, if a
				ruling is issued by the Internal Revenue Service to the effect that the Plan
				and Trust do not meet the requirements of Code Section 457(b), the Employer
				shall be entitled, at its option, to withdraw all contributions made, in which
				event the Plan and Trust shall then terminate and all rights of the
				Participants shall terminate as of the date of the ruling.