Okla. Stat. tit. 70, § 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.