2018 Oklahoma Statutes
Title 70. Schools
§70-17-102.2. Tax qualification as a governmental retirement plan.
The retirement system shall satisfy the applicable qualification requirements for governmental plans as specified in Sections 401 and 414(d) of the Internal Revenue Code of 1954 or 1986, as amended from time to time and as appropriate for a governmental plan (hereinafter referred to as the "Code"). In addition to other Code provisions otherwise noted, and in order to satisfy the applicable requirements under the Code, the retirement system shall be subject to the following provisions, notwithstanding any other provision of the retirement system law:
(1) The Board of Trustees shall distribute the corpus and income of the retirement system to the members and their beneficiaries in accordance with the retirement system law.
(2) Forfeitures arising from severance of employment, death, or for any other reason may not be applied to increase the benefits any member would otherwise receive under the retirement system law.
(3) All benefits paid from the retirement system shall be distributed in accordance with the requirements of Code Section 401(a)(9) and the regulations thereto. In order to meet these requirements, the retirement system shall be administered in accordance with the following provisions:
(a) The life expectancy of a member or the member's spouse may not be recalculated after the benefits commence.
(b) If a member dies before the distribution of the member's benefits has begun, distributions to beneficiaries must begin no later than December 31 of the calendar year immediately following the calendar year in which the member died.
(c) The amount of benefits payable to a member's beneficiary may not exceed the maximum determined under the incidental death benefit requirement of the Code.
(4) The Board of Trustees or its designee may not:
(a) determine eligibility for benefits,
(b) compute rates of contribution, or
(c) compute benefits of members or beneficiaries,
in a manner that discriminates in favor of members who are considered officers, supervisors, or highly compensated, as prohibited under Code Section 401(a)(4).
(5) Benefits paid from the retirement system shall not exceed the maximum benefits permissible under Code Section 415.
(6) The Board of Trustees may not engage in a transaction prohibited by Code Section 503(b).
(7) To the extent required by Code Section 401(a)(31), the retirement system shall allow members and qualified beneficiaries to elect a direct rollover of eligible distributions to another eligible retirement plan.
Added by Laws 1994, c. 380, § 1, eff. July 1, 1994.