Okla. Stat. tit. 11, § 11-50-111.4: Transferred credited service - Computation of

purchase price.

A. The Oklahoma Police Pension and Retirement Board shall adopt

rules for computation of the purchase price for transferred credited

service. These rules shall base the purchase price for each year

purchased on the actuarial cost of the incremental projected

benefits to be purchased. The purchase price shall represent the

present value of the incremental projected benefits discounted

according to the member's age at the time of purchase. Incremental

projected benefits shall be the difference between the projected

benefit the member would receive without purchasing the transferred

credited service and the projected benefit after purchase of the

transferred credited service computed as of the earliest age at

which the member would be able to retire. The computation shall

assume an unreduced benefit and be computed using interest and

mortality assumptions consistent with the actuarial assumptions

adopted by the Board of Trustees for purposes of preparing the

annual actuarial evaluation.

B. In the event that the member is unable to pay the purchase

price provided for in this section by the due date, the Oklahoma

Police Pension and Retirement Board shall permit the members to

amortize the purchase price over a period not to exceed sixty (60)

months. Payments shall be made by payroll deductions unless the

Oklahoma Police Pension and Retirement Board permits an alternate

payment source. The amortization shall include interest in an

amount not to exceed the actuarially assumed interest rate adopted

by the Oklahoma Police Pension and Retirement 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 section shall receive prorated service credit for only

those payments made, unless the unpaid balance is paid by the

member, his or her estate or successor in interest within six (6)

months after the member's death, termination of employment or

retirement, provided no retirement benefits shall be payable until

the unpaid balance is paid, unless the member or beneficiary

affirmatively waives the additional six-month period in which to pay

the unpaid balance. Notwithstanding anything herein to the

contrary, lump-sum payments for a transferred credited service

purchase may be made by a trustee-to-trustee transfer 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), and/or a Code Section 401(a) qualified plan;

or a direct rollover of tax-deferred 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, and/or a Code

Section 408(a) or 408(b) traditional or conduit Individual

Retirement Account or Annuity (IRA). The Oklahoma Police Pension

and Retirement Board shall develop such procedures and may require

such information from the distributing plan as it deems necessary to

reasonably conclude that a potential rollover contribution is a

valid rollover contribution under Section 1.401(a)(31)-1, Q&A-

14(b)(2), of the Income Tax Regulations. Roth accounts and

Coverdell Education Savings Accounts shall not be used to purchase

transferred credited service. A member making installment payments

shall have the option of making a cash lump-sum payment for the

balance of the actuarial purchase price with interest due through

the date of payment by a trustee-to-trustee transfer 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)

ransferred credited service. A member making installment payments

shall have the option of making a cash lump-sum payment for the

balance of the actuarial purchase price with interest due through

the date of payment by a trustee-to-trustee transfer 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), and/or a Code Section 401(a) qualified plan;

or a direct rollover of tax-deferred 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, and/or a Code

Section 408(a) or 408(b) traditional or conduit Individual

Retirement Account or Annuity (IRA). Roth accounts and Coverdell

Education Savings Accounts shall not be used to purchase transferred

credited service. The State Board shall promulgate such rules as

are necessary to implement the provisions of this subsection.