Okla. Stat. tit. 11, § 11-49-117.1: Termination of service before normal retirement date

- Refunds - Vested benefits - Retirement annuity - Rejoining System.

A. A member who terminates service before normal retirement

date, other than by death or disability shall, upon application

filed with the State Board, be refunded from the Fund an amount

equal to the sum of:

1. Accumulated contributions the member has made to the Fund;

2. Payments made to repurchase credited service pursuant to

this section;

3. Payments made to transfer credited service from another

retirement system pursuant to subsection A of Section 49-117.2 or

Section 49-117.3 of this title; and

4. Payments made to purchase prior military service credit

pursuant to subsection E of Section 49-138 of this title.

A refund made pursuant to this paragraph shall exclude interest

earned or paid with respect to any contribution or payment described

in subparagraphs 1 through 4 of this subsection, and any amount

contributed by the municipality or state, and interest earned with

respect to such contributed amount.

B. If a member has completed ten (10) years of credited service

at the date of termination, the member may elect a vested benefit in

lieu of receiving the refund described in subsection A of this

section.

C. If the member who has completed ten (10) or more years of

credited service as prescribed by subsection B of this section

elects the vested benefit, the member shall be entitled to a monthly

retirement annuity commencing on the date the member reaches fifty

(50) years of age or the date the member would have had twenty (20)

years of credited service had the member's employment continued

uninterrupted, whichever is later. The annual amount of such

retirement annuity shall be equal to two and one-half percent (2

1/2%) of the annualized final average salary multiplied by the

number of years of credited service not to exceed thirty (30) years.

The death benefits provided for in Section 49-113.2 of this title

shall not apply to any member retiring under the provisions of this

section.

D. If a member who terminated employment and elected, or was

eligible to elect, a vested benefit dies prior to being eligible to

receive benefits, the member's beneficiary, as defined in paragraph

16 of Section 49-100.1 of this title, shall be entitled to the

member's normal monthly retirement benefit on the date the deceased

member would have been eligible to receive the benefit.

E. If a member terminates employment and withdraws the member's

accumulated contributions and then subsequently rejoins the System,

he may pay to the System the sum of the accumulated contributions he

has withdrawn plus ten percent (10%) annual interest from the date

of withdrawal to the date of repayment and shall receive the same

benefits as if he had never withdrawn his contributions.

F. Members may make the repayment described in subsection E of

this section in cash by a trustee-to-trustee transfer or direct

rollover of non-Roth funds from a Code Section 403(b) annuity or

custodial account, an eligible deferred compensation plan described

in Code Section 457(b) which is maintained by an eligible employer

described in Code Section 457(e)(1)(A), a Code Section 401(a)

qualified plan, or a combination thereof, provided that after-tax

funds in retirement plans shall not be used to make a repayment.

G. In the event the member does not pay the purchase price in

whole or part pursuant to subsection F of this section, the State

Board may permit the member to pay the remaining purchase price in

cash by certified check, to amortize the remaining purchase price

over a period not to exceed sixty (60) months, or other method

approved by the State Board. Any amortized payments under this

subsection shall be made by payroll deductions on an after-tax basis

and shall not be picked up by the member's employer. The amortized

Board may permit the member to pay the remaining purchase price in

cash by certified check, to amortize the remaining purchase price

over a period not to exceed sixty (60) months, or other method

approved by the State Board. Any amortized payments under this

subsection shall be made by payroll deductions on an after-tax basis

and shall not be picked up by the member's employer. The amortized

payments shall include interest at a rate not to exceed the

actuarially assumed interest rate adopted by the State Board for

investment earnings each year. Any member who ceases to make

payment, terminates, retires, or dies before completing the payments

provided for in this subsection shall receive prorated service

credit for only those payments made, not including interest, unless

the unpaid balance, including interest, is paid by the member, the

member's surviving spouse, the member's beneficiary, or the member's

estate or successor in interest within ninety (90) days after the

first to occur of said member's termination, retirement, or death;

provided that no retirement benefits shall be payable until the

earliest of the date the unpaid balance is paid in full or ninety

(90) days after the first to occur of the member's termination,

retirement, or death.

H. A firefighter shall not be permitted to withdraw from the

System while employed as a firefighter in a participating

municipality.

I. The State Board shall promulgate such rules or procedures as

are necessary to implement the provisions of this section.