{"data":{"id":"us-ok/okla.-stat.-tit.-11-11-49-106.2","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 11, § 11-49-106.2","heading":"Limitations on benefits relating to Section 415 of","body":"Internal Revenue Code of 1986.\n\nA. For limitation years prior to July 1, 2007, the limitations\n\nof Section 415 of the Internal Revenue Code of 1986, as amended,\n\nshall be computed in accordance with the applicable provisions of\n\nthe System in effect at that time and, to the extent applicable,\n\nRevenue Ruling 98-1 and Revenue Ruling 2001-51, except as provided\n\nbelow. Notwithstanding any other provision contained herein to the\n\ncontrary, the benefits payable to a member from the System provided\n\nby employer contributions (including contributions picked up by the\n\nemployer under Section 414(h) of the Internal Revenue Code of 1986,\n\nas amended) shall be subject to the limitations of Section 415 of\n\nthe Internal Revenue Code of 1986, as amended, in accordance with\n\nthe provisions of this section. The limitations of this section\n\nshall apply in limitation years beginning on or after July 1, 2007,\n\nexcept as otherwise provided below.\n\nB. Except as provided below, effective for limitation years\n\nending after December 31, 2001, any accrued retirement benefit\n\npayable to a member as an annual benefit as described below shall\n\nnot exceed One Hundred Sixty Thousand Dollars ($160,000.00),\n\nautomatically adjusted under Section 415(d) of the Internal Revenue\n\nCode of 1986, as amended, for increases in the cost of living, as\n\nprescribed by the Secretary of the Treasury or his or her delegate,\n\neffective January 1 of each calendar year and applicable to the\n\nlimitation year ending with or within such calendar year. The\n\nautomatic annual adjustment of the dollar limitation in this\n\nsubsection under Section 415(d) of the Internal Revenue Code of\n\n1986, as amended, shall apply to a member who has had a severance\n\nfrom employment.\n\n1. The member's annual benefit is a benefit that is payable\n\nannually in the form of a straight life annuity. Except as provided\n\nbelow, where a benefit is payable in a form other than a straight\n\nlife annuity, the benefit shall be adjusted to an actuarially\n\nequivalent straight life annuity that begins at the same time as\n\nsuch other form of benefit and is payable on the first day of each\n\nmonth, before applying the limitations of this section. For a\n\nmember who has or will have distributions commencing at more than\n\none annuity starting date, the annual benefit shall be determined as\n\nof each such annuity starting date (and shall satisfy the\n\nlimitations of this section as of each such date), actuarially\n\nadjusting for past and future distributions of benefits commencing\n\nat the other annuity starting dates. For this purpose, the\n\ndetermination of whether a new starting date has occurred shall be\n\nmade without regard to Section 1.401(a)-20, Q\u0026A 10(d), and with\n\nregard to Section 1.415(b)-1(b)(1)(iii)(B) and (C) of the Income Tax\n\nRegulations.\n\n2. No actuarial adjustment to the benefit shall be made for:\n\na. survivor benefits payable to a surviving spouse under\n\na qualified joint and survivor annuity to the extent\n\nsuch benefits would not be payable if the member's\n\nbenefit were paid in another form,\n\nb. benefits that are not directly related to retirement\n\nbenefits such as a qualified disability benefit,\n\npreretirement incidental death benefits, and\n\npostretirement medical benefits, or\n\nc. the inclusion in the form of benefit of an automatic\n\nbenefit increase feature, provided, the form of\n\nbenefit is not subject to Section 417(e)(3) of the\n\nInternal Revenue Code of 1986, as amended, and would\n\notherwise satisfy the limitations of this section, and\n\nthe System provides that the amount payable under the\n\nform of benefit in any limitation year shall not\n\nexceed the limits of this section applicable at the\n\nannuity starting date, as increased in subsequent\n\nyears pursuant to Section 415(d) of the Internal\n\nRevenue Code of 1986, as amended. For this purpose,\n\nan automatic benefit increase feature is included in a\nlimitations of this section, and\n\nthe System provides that the amount payable under the\n\nform of benefit in any limitation year shall not\n\nexceed the limits of this section applicable at the\n\nannuity starting date, as increased in subsequent\n\nyears pursuant to Section 415(d) of the Internal\n\nRevenue Code of 1986, as amended. For this purpose,\n\nan automatic benefit increase feature is included in a\n\nform of benefit if the form of benefit provides for\n\nautomatic, periodic increases to the benefits paid in\n\nthat form.\n\n3. The determination of the annual benefit shall take into\n\naccount Social Security supplements described in Section 411(a)(9)\n\nof the Internal Revenue Code of 1986, as amended, and benefits\n\ntransferred from another defined benefit plan, other than transfers\n\nof distributable benefits pursuant to Section 1.411(d)-4, Q\u0026A-3(c),\n\nof the Income Tax Regulations, but shall disregard benefits\n\nattributable to employee contributions or rollover contributions.\n\n4. Effective for distributions in plan years beginning after\n\nDecember 31, 2003, the determination of actuarial equivalence of\n\nforms of benefit other than a straight life annuity shall be made in\n\naccordance with paragraph 5 or paragraph 6 of this subsection.\n\n5. Benefit Forms Not Subject to Section 417(e)(3) of the\n\nInternal Revenue Code of 1986, as amended: The straight life\n\nannuity that is actuarially equivalent to the member's form of\n\nbenefit shall be determined under this paragraph if the form of the\n\nmember's benefit is either:\n\na. a nondecreasing annuity (other than a straight life\n\nannuity) payable for a period of not less than the\n\nlife of the member (or, in the case of a qualified\n\npreretirement survivor annuity, the life of the\n\nsurviving spouse), or\n\nb. an annuity that decreases during the life of the\n\nmember merely because of:\n\n(1) the death of the survivor annuitant, but only if\n\nthe reduction is not below fifty percent (50%) of\n\nthe benefit payable before the death of the\n\nsurvivor annuitant, or\n\n(2) the cessation or reduction of Social Security\n\nsupplements or qualified disability payments as\n\ndefined in Section 411(a)(9) of the Internal\n\nRevenue Code of 1986, as amended.\n\nc. Limitation Years Beginning Before July 1, 2007. For\n\nlimitation years beginning before July 1, 2007, the\n\nactuarially equivalent straight life annuity is equal\n\nto the annual amount of the straight life annuity\n\ncommencing at the same annuity starting date that has\n\nthe same actuarial present value as the member's form\n\nof benefit computed using whichever of the following\n\nproduces the greater annual amount:\n\n(1) the interest rate and the mortality table or\n\nother tabular factor, each as set forth in\n\nsubsection H of Section 49-100.9 of this title\n\nfor adjusting benefits in the same form, and\n\n(2) a five percent (5%) interest rate assumption and\n\nthe applicable mortality table described in\n\nRevenue Ruling 2001-62 (or its successor for\n\nthese purposes, if applicable) for that annuity\n\nstarting date.\n\nd. Limitation Year Beginning On January 1, 2008. For the\n\nlimitation year beginning on January 1, 2008, the\n\nactuarially equivalent straight life annuity is equal\n\nto the greater of:\n\n(1) the annual amount of the straight life annuity,\n\nif any, payable to the member under the System\n\ncommencing at the same annuity starting date as\n\nthe member's form of benefit, and\nor that annuity\n\nstarting date.\n\nd. Limitation Year Beginning On January 1, 2008. For the\n\nlimitation year beginning on January 1, 2008, the\n\nactuarially equivalent straight life annuity is equal\n\nto the greater of:\n\n(1) the annual amount of the straight life annuity,\n\nif any, payable to the member under the System\n\ncommencing at the same annuity starting date as\n\nthe member's form of benefit, and\n\n(2) the annual amount of the straight life annuity\n\ncommencing at the same annuity starting date that\n\nhas the same actuarial present value as the\n\nmember's form of benefit, computed using a five\n\npercent (5%) interest rate assumption and the\n\napplicable mortality table described in Revenue\n\nRuling 2001-62 (or its successor for these\n\npurposes, if applicable) for that annuity\n\nstarting date.\n\ne. Limitation Years Beginning On or After July 1, 2008.\n\nFor limitation years beginning on or after July 1,\n\n2008, the actuarially equivalent straight life annuity\n\nis equal to the greater of:\n\n(1) the annual amount of the straight life annuity,\n\nif any, payable to the member under the System\n\ncommencing at the same annuity starting date as\n\nthe member's form of benefit, and\n\n(2) the annual amount of the straight life annuity\n\ncommencing at the same annuity starting date that\n\nhas the same actuarial present value as the\n\nmember's form of benefit, computed using a five\n\npercent (5%) interest rate assumption and the\n\napplicable mortality table within the meaning of\n\nSection 417(e)(3)(B) of the Internal Revenue Code\n\nof 1986, as amended, as described in Revenue\n\nRuling 2007-67 (and subsequent guidance) for that\n\nannuity starting date.\n\n6. Benefit Forms Subject to Section 417 (e)(3) of the Internal\n\nRevenue Code of 1986, as amended: The straight life annuity that is\n\nactuarially equivalent to the member's form of benefit shall be\n\ndetermined under this paragraph if the form of the member's benefit\n\nis other than a benefit form described in paragraph 5 of this\n\nsubsection. In this case, the actuarially equivalent straight life\n\nannuity shall be determined as follows:\n\na. Annuity Starting Date on or after January 1, 2009. If\n\nthe annuity starting date of the member's form of\n\nbenefit is in the period beginning on January 1, 2009\n\nthrough June 30, 2009, or in a plan year beginning\n\nafter June 30, 2009, the actuarially equivalent\n\nstraight life annuity is equal to the greatest of\n\ndivisions (1), (2) and (3) of this subparagraph:\n\n(1) the annual amount of the straight life annuity\n\ncommencing at the same annuity starting date that\n\nhas the same actuarial present value as the\n\nmember's form of benefit, computed using the\n\ninterest rate and the mortality table or other\n\ntabular factor as set forth in the most recent\n\nactuarial valuation referenced in subsection H of\n\nSection 49-100.9 of this title prior to September\n\n1, 2011, and effective September 1, 2011, in\n\nsubsection L of this section for adjusting\n\nbenefits in the same form,\n\n(2) the annual amount of the straight life annuity\n\ncommencing at the same annuity starting date that\n\nhas the same actuarial present value as the\n\nmember's form of benefit, computed using a five\n\nand one-half percent (5.5%) interest rate\n\nassumption and the applicable mortality table\n\nwithin the meaning of Section 417(e)(3)(B) of the\n\nInternal Revenue Code of 1986, as amended, as\n\ndescribed in Revenue Ruling 2007-67 (and\n\nsubsequent guidance), and\n\n(3) the annual amount of the straight life annuity\n\ncommencing at the same annuity starting date that\n\nhas the same actuarial present value as the\n\nmember's form of benefit, computed using:\numption and the applicable mortality table\n\nwithin the meaning of Section 417(e)(3)(B) of the\n\nInternal Revenue Code of 1986, as amended, as\n\ndescribed in Revenue Ruling 2007-67 (and\n\nsubsequent guidance), and\n\n(3) the annual amount of the straight life annuity\n\ncommencing at the same annuity starting date that\n\nhas the same actuarial present value as the\n\nmember's form of benefit, computed using:\n\n(a) i. in a plan year beginning after June 30,\n\n2019, the applicable interest rate\n\nunder Section 417(e)(3) of the Internal\n\nRevenue Code of 1986, as amended (and\n\nsubsequent guidance), for the fourth\n\ncalendar month preceding the plan year\n\nin which falls the annuity starting\n\ndate for the distribution and the\n\nstability period is the successive\n\nperiod of one (1) plan year which\n\ncontains the annuity starting date for\n\nthe distribution and for which the\n\napplicable interest rate remains\n\nconstant, and\n\nii. in a plan year beginning before July 1,\n\n2019, the adjusted first, second, and\n\nthird segment rates under Section\n\n417(e)(3)(C) and (D) of the Internal\n\nRevenue Code of 1986, as amended,\n\napplied under rules similar to the\n\nrules of Section 430(h)(2)(C) of the\n\nInternal Revenue Code of 1986, as\n\namended, for the fourth calendar month\n\npreceding the plan year in which falls\n\nthe annuity starting date for the\n\ndistribution and the stability period\n\nis the successive period of one plan\n\nyear which contains the annuity\n\nstarting date for the distribution and\n\nfor which the applicable interest rate\n\nremains constant, or as otherwise\n\nprovided in the applicable guidance if\n\nthe first day of the first plan year\n\nbeginning after December 31, 2007, does\n\nnot coincide with the first day of the\n\napplicable stability period, and\n\n(b) the applicable mortality table within the\n\nmeaning of Section 417(e)(3)(B) of the\n\nInternal Revenue Code of 1986, as amended,\n\nas described in Rev. Rul. 2007-67 (and\n\nsubsequent guidance),\n\ndivided by one and five one-hundredths (1.05).\n\nb. Annuity Starting Date in the Period Beginning on July\n\n1, 2008 through December 31, 2008. If the annuity\n\nstarting date of the member's form of benefit is in\n\nthe period beginning on July 1, 2008 through December\n\n31, 2008, the actuarially equivalent straight life\n\nannuity is equal to the greatest of divisions (1), (2)\n\nand (3) of this subparagraph:\n\n(1) the annual amount of the straight life annuity\n\ncommencing at the same annuity starting date that\n\nhas the same actuarial present value as the\n\nmember's form of benefit, computed using the\n\ninterest rate and the mortality table or other\n\ntabular factor each as set forth in subsection H\n\nof Section 49-100.9 of this title for adjusting\n\nbenefits in the same form,\n\n(2) the annual amount of the straight life annuity\n\ncommencing at the same annuity starting date that\n\nhas the same actuarial present value as the\n\nmember's form of benefit, computed using a five\n\nand one-half percent (5.5%) interest rate\n\nassumption and the applicable mortality table\n\ndescribed in Revenue Ruling 2001-62 (or its\n\nsuccessor for these purposes, if applicable), and\n\n(3) the annual amount of the straight life annuity\n\ncommencing at the same annuity starting date that\n\nhas the same actuarial present value as the\n\nmember's form of benefit, computed using:\nrest rate\n\nassumption and the applicable mortality table\n\ndescribed in Revenue Ruling 2001-62 (or its\n\nsuccessor for these purposes, if applicable), and\n\n(3) the annual amount of the straight life annuity\n\ncommencing at the same annuity starting date that\n\nhas the same actuarial present value as the\n\nmember's form of benefit, computed using:\n\n(a) the adjusted first, second, and third\n\nsegment rates under Section 417(e)(3)(C) and\n\n(D) of the Internal Revenue Code of 1986, as\n\namended, applied under rules similar to the\n\nrules of Section 430(h)(2)(C) of the\n\nInternal Revenue Code of 1986, as amended,\n\nfor the fourth calendar month preceding the\n\nplan year in which falls the annuity\n\nstarting date for the distribution and the\n\nstability period is the successive period of\n\none (1) plan year which contains the annuity\n\nstarting date for the distribution and for\n\nwhich the applicable interest rate remains\n\nconstant, or as otherwise provided in the\n\napplicable guidance if the first day of the\n\nfirst plan year beginning after December 31,\n\n2007, does not coincide with the first day\n\nof the applicable stability period, and\n\n(b) the applicable mortality table described in\n\nRevenue Ruling 2001-62 (or its successor for\n\nthese purposes, if applicable),\n\ndivided by one and five one-hundredths (1.05).\n\nc. Annuity Starting Date in Plan Years Beginning in 2006\n\nor 2007. If the annuity starting date of the member's\n\nform of benefit is in a plan year beginning in 2006 or\n\n2007, the actuarially equivalent straight life annuity\n\nis equal to the greatest of divisions (1), (2) and (3)\n\nof this subparagraph:\n\n(1) the annual amount of the straight life annuity\n\ncommencing at the same annuity starting date that\n\nhas the same actuarial present value as the\n\nmember's form of benefit, computed using the\n\ninterest rate and the mortality table (or other\n\ntabular factor) each as set forth in subsection H\n\nof Section 49-100.9 of this title for adjusting\n\nbenefits in the same form,\n\n(2) the annual amount of the straight life annuity\n\ncommencing at the same annuity starting date that\n\nhas the same actuarial present value as the\n\nmember's form of benefit, computed using a five\n\nand one-half percent (5.5%) interest rate\n\nassumption and the applicable mortality table\n\ndescribed in Revenue Ruling 2001-62 (or its\n\nsuccessor for these purposes, if applicable), and\n\n(3) the annual amount of the straight life annuity\n\ncommencing at the same annuity starting date that\n\nhas the same actuarial present value as the\n\nmember's form of benefit, computed using:\n\n(a) the rate of interest on thirty-year Treasury\n\nsecurities as specified by the Commissioner\n\nfor the lookback month for the stability\n\nperiod specified below. The lookback month\n\napplicable to the stability period is the\n\nfourth calendar month preceding the first\n\nday of the stability period, as specified\n\nbelow. The stability period is the\n\nsuccessive period of one (1) plan year which\n\ncontains the annuity starting date for the\n\ndistribution and for which the applicable\n\ninterest rate remains constant, and\n\n(b) the applicable mortality table described in\n\nRevenue Ruling 2001-62 (or its successor for\n\nthese purposes, if applicable),\n\ndivided by one and five one-hundredths (1.05).\n\nd. Annuity Starting Date in Plan Years Beginning in 2004\n\nor 2005.\n\n(1) If the annuity starting date of the member's form\n\nof benefit is in a plan year beginning in 2004 or\n\n2005, the actuarially equivalent straight life\n\nannuity is equal to the annual amount of the\n\nstraight life annuity commencing at the same\n\nannuity starting date that has the same actuarial\n\npresent value as the member's form of benefit,\n\ncomputed using whichever of the following\n\nproduces the greater annual amount:\nting date of the member's form\n\nof benefit is in a plan year beginning in 2004 or\n\n2005, the actuarially equivalent straight life\n\nannuity is equal to the annual amount of the\n\nstraight life annuity commencing at the same\n\nannuity starting date that has the same actuarial\n\npresent value as the member's form of benefit,\n\ncomputed using whichever of the following\n\nproduces the greater annual amount:\n\n(a) the interest rate and the mortality table or\n\nother tabular factor, each as set forth in\n\nsubsection H of Section 49-100.9 of this\n\ntitle for adjusting benefits in the same\n\nform, and\n\n(b) a five and one-half percent (5.5%) interest\n\nrate assumption and the applicable mortality\n\ntable described in Revenue Ruling 2001-62\n\n(or its successor for these purposes, if\n\napplicable).\n\n(2) If the annuity starting date of the member's\n\nbenefit is on or after the first day of the first\n\nplan year beginning in 2004 and before December\n\n31, 2004, the application of this subparagraph\n\nshall not cause the amount payable under the\n\nmember's form of benefit to be less than the\n\nbenefit calculated under the System, taking into\n\naccount the limitations of this section, except\n\nthat the actuarially equivalent straight life\n\nannuity is equal to the annual amount of the\n\nstraight life annuity commencing at the same\n\nannuity starting date that has the same actuarial\n\npresent value as the member's form of benefit,\n\ncomputed using whichever of the following\n\nproduces the greatest annual amount:\n\n(a) the interest rate and mortality table or\n\nother tabular factor, each as set forth in\n\nsubsection H of Section 49-100.9 of this\n\ntitle for adjusting benefits in the same\n\nform,\n\n(b) i. the rate of interest on thirty-year\n\nTreasury securities as specified by the\n\nCommissioner for the lookback month for\n\nthe stability period specified below.\n\nThe lookback month applicable to the\n\nstability period is the fourth calendar\n\nmonth preceding the first day of the\n\nstability period, as specified below.\n\nThe stability period is the successive\n\nperiod of one (1) plan year which\n\ncontains the annuity starting date for\n\nthe distribution and for which the\n\napplicable interest rate remains\n\nconstant, and\n\nii. the applicable mortality table\n\ndescribed in Revenue Ruling 2001-62 (or\n\nits successor for these purposes, if\n\napplicable), and\n\n(c) i. the rate of interest on thirty-year\n\nTreasury securities as specified by the\n\nCommissioner for the lookback month for\n\nthe stability period specified below.\n\nThe lookback month applicable to the\n\nstability period is the fourth calendar\n\nmonth preceding the first day of the\n\nstability period, as specified below.\n\nThe stability period is the successive\n\nperiod of one plan year which contains\n\nthe annuity starting date for the\n\ndistribution and for which the\n\napplicable interest rate remains\n\nconstant (as in effect on the last day\n\nof the last plan year beginning before\n\nJanuary 1, 2004, under provisions of\n\nthe System then adopted and in effect),\n\nand\n\nii. the applicable mortality table\n\ndescribed in Revenue Ruling 2001-62 (or\n\nits successor for these purposes, if\n\napplicable).\n\nC. If a member has less than ten (10) years of participation in\n\nthe System and all predecessor municipal firefighter pension and\n\nretirement systems, the dollar limitation otherwise applicable under\n\nsubsection B of this section shall be multiplied by a fraction, the\n\nnumerator of which is the number of the years of participation, or\n\npart thereof, in the System of the member, but never less than one\nf a member has less than ten (10) years of participation in\n\nthe System and all predecessor municipal firefighter pension and\n\nretirement systems, the dollar limitation otherwise applicable under\n\nsubsection B of this section shall be multiplied by a fraction, the\n\nnumerator of which is the number of the years of participation, or\n\npart thereof, in the System of the member, but never less than one\n\n(1), and the denominator of which is ten (10).\n\nD. Adjustment of Dollar Limitation for Benefit Commencement\n\nBefore Sixty-two (62) Years of Age or After Sixty-five (65) Years of\n\nAge: Effective for benefits commencing in limitation years ending\n\nafter December 31, 2001, the dollar limitation under subsection B of\n\nthis section shall be adjusted if the annuity starting date of the\n\nmember's benefit is before sixty-two (62) years of age or after\n\nsixty-five (65) years of age. If the annuity starting date is\n\nbefore sixty-two (62) years of age, the dollar limitation under\n\nsubsection B of this section shall be adjusted under paragraph 1 of\n\nthis subsection, as modified by paragraph 3 of this subsection, but\n\nsubject to paragraph 4 of this subsection. If the annuity starting\n\ndate is after sixty-five (65) years of age, the dollar limitation\n\nunder subsection B of this section shall be adjusted under paragraph\n\n2 of this subsection, as modified by paragraph 3 of this subsection.\n\n1. Adjustment of Defined Benefit Dollar Limitation for Benefit\n\nCommencement Before Sixty-two (62) Years of Age:\n\na. Limitation Years Beginning Before July 1, 2007. If\n\nthe annuity starting date for the member's benefit is\n\nprior to sixty-two (62) years of age and occurs in a\n\nlimitation year beginning before July 1, 2007, the\n\ndollar limitation for the member's annuity starting\n\ndate is the annual amount of a benefit payable in the\n\nform of a straight life annuity commencing at the\n\nmember's annuity starting date that is the actuarial\n\nequivalent of the dollar limitation under subsection B\n\nof this section (adjusted under subsection C of this\n\nsection for years of participation less than ten (10),\n\nif required) with actuarial equivalence computed using\n\nwhichever of the following produces the smaller annual\n\namount:\n\n(1) the interest rate and the mortality table or\n\nother tabular factor, each as set forth in\n\nsubsection H of Section 49-100.9 of this title,\n\nor\n\n(2) a five percent (5%) interest rate assumption and\n\nthe applicable mortality table as described in\n\nRevenue Ruling 2001-62 (or its successor for\n\nthese purposes, if applicable).\n\nb. Limitation Years Beginning On or After July 1, 2007.\n\n(1) System Does Not Have Immediately Commencing\n\nStraight Life Annuity Payable at Both Sixty-two\n\n(62) Years of Age and the Age of Benefit\n\nCommencement.\n\n(a) If the annuity starting date for the\n\nmember's benefit is prior to sixty-two (62)\n\nyears of age and occurs in the limitation\n\nyear beginning on January 1, 2008, and the\n\nSystem does not have an immediately\n\ncommencing straight life annuity payable at\n\nboth sixty-two (62) years of age and the age\n\nof benefit commencement, the dollar\n\nlimitation for the member's annuity starting\n\ndate is the annual amount of a benefit\n\npayable in the form of a straight life\n\nannuity commencing at the member's annuity\n\nstarting date that is the actuarial\n\nequivalent of the dollar limitation under\n\nsubsection B of this section (adjusted under\n\nsubsection C of this section for years of\n\nparticipation less than ten (10), if\n\nrequired) with actuarial equivalence\n\ncomputed using a five percent (5%) interest\n\nrate assumption and the applicable mortality\n\ntable for the annuity starting date as\n\ndescribed in Revenue Ruling 2001-62 (or its\n\nsuccessor for these purposes, if applicable)\n\n(and expressing the member's age based on\n\ncompleted calendar months as of the annuity\n\nstarting date).\narticipation less than ten (10), if\n\nrequired) with actuarial equivalence\n\ncomputed using a five percent (5%) interest\n\nrate assumption and the applicable mortality\n\ntable for the annuity starting date as\n\ndescribed in Revenue Ruling 2001-62 (or its\n\nsuccessor for these purposes, if applicable)\n\n(and expressing the member's age based on\n\ncompleted calendar months as of the annuity\n\nstarting date).\n\n(b) If the annuity starting date for the\n\nmember's benefit is prior to sixty-two (62)\n\nyears of age and occurs in a limitation year\n\nbeginning on or after January 1, 2009, and\n\nthe System does not have an immediately\n\ncommencing straight life annuity payable at\n\nboth sixty-two (62) years of age and the age\n\nof benefit commencement, the dollar\n\nlimitation for the member's annuity starting\n\ndate is the annual amount of a benefit\n\npayable in the form of a straight life\n\nannuity commencing at the member's annuity\n\nstarting date that is the actuarial\n\nequivalent of the dollar limitation under\n\nsubsection B of this section (adjusted under\n\nsubsection C of this section for years of\n\nparticipation less than ten (10), if\n\nrequired) with actuarial equivalence\n\ncomputed using a five percent (5%) interest\n\nrate assumption and the applicable mortality\n\ntable within the meaning of Section\n\n417(e)(3)(B) of the Internal Revenue Code of\n\n1986, as amended, as described in Revenue\n\nRuling 2007-67 (and subsequent guidance)\n\n(and expressing the member's age based on\n\ncompleted calendar months as of the annuity\n\nstarting date).\n\n(2) System Has Immediately Commencing Straight Life\n\nAnnuity Payable at Both Sixty-two (62) Years of\n\nAge and the Age of Benefit Commencement. If the\n\nannuity starting date for the member's benefit is\n\nprior to sixty-two (62) years of age and occurs\n\nin a limitation year beginning on or after July\n\n1, 2007, and the System has an immediately\n\ncommencing straight life annuity payable at both\n\nsixty-two (62) years of age and the age of\n\nbenefit commencement, the dollar limitation for\n\nthe member's annuity starting date is the lesser\n\nof the limitation determined under division (1)\n\nof this subparagraph and the dollar limitation\n\nunder subsection B of this section (adjusted\n\nunder subsection C of this section for years of\n\nparticipation less than ten (10), if required)\n\nmultiplied by the ratio of the annual amount of\n\nthe immediately commencing straight life annuity\n\nunder the System at the member's annuity starting\n\ndate to the annual amount of the immediately\n\ncommencing straight life annuity under the System\n\nat sixty-two (62) years of age, both determined\n\nwithout applying the limitations of this section.\n\n(3) Effective for limitation years commencing on or\n\nafter January 1, 2014, notwithstanding any other\n\nprovision of paragraph 1 of this subsection, the\n\nage-adjusted dollar limit applicable to a member\n\nshall not decrease on account of an increase in\n\nage or the performance of additional services.\n\n2. Adjustment of Defined Benefit Dollar Limitation for Benefit\n\nCommencement After Sixty-five (65) Years of Age:\n\na. Limitation Years Beginning Before July 1, 2007. If\n\nthe annuity starting date for the member's benefit is\n\nafter sixty-five (65) years of age and occurs in a\n\nlimitation year beginning before July 1, 2007, the\n\ndollar limitation for the member's annuity starting\n\ndate is the annual amount of a benefit payable in the\n\nform of a straight life annuity commencing at the\n\nmember's annuity starting date that is the actuarial\n\nequivalent of the dollar limitation under subsection B\n\nof this section (adjusted under subsection C of this\n\nsection for years of participation less than ten (10),\n\nif required) with actuarial equivalence computed using\n\nwhichever of the following produces the smaller annual\n\namount:\ne in the\n\nform of a straight life annuity commencing at the\n\nmember's annuity starting date that is the actuarial\n\nequivalent of the dollar limitation under subsection B\n\nof this section (adjusted under subsection C of this\n\nsection for years of participation less than ten (10),\n\nif required) with actuarial equivalence computed using\n\nwhichever of the following produces the smaller annual\n\namount:\n\n(1) the interest rate and the mortality table or\n\nother tabular factor, each as set forth in\n\nsubsection H of Section 49-100.9 of this title,\n\nor\n\n(2) a five percent (5%) interest rate assumption and\n\nthe applicable mortality table as described in\n\nRevenue Ruling 2001-62 (or its successor for\n\nthese purposes, if applicable).\n\nb. Limitation Years Beginning On or After July 1, 2007.\n\n(1) System Does Not Have Immediately Commencing\n\nStraight Life Annuity Payable at Both Sixty-five\n\n(65) Years of Age and the Age of Benefit\n\nCommencement.\n\n(a) If the annuity starting date for the\n\nmember's benefit is after sixty-five (65)\n\nyears of age and occurs in the limitation\n\nyear beginning on January 1, 2008, and the\n\nSystem does not have an immediately\n\ncommencing straight life annuity payable at\n\nboth sixty-five (65) years of age and the\n\nage of benefit commencement, the dollar\n\nlimitation at the member's annuity starting\n\ndate is the annual amount of a benefit\n\npayable in the form of a straight life\n\nannuity commencing at the member's annuity\n\nstarting date that is the actuarial\n\nequivalent of the dollar limitation under\n\nsubsection B of this section (adjusted under\n\nsubsection C of this section for years of\n\nparticipation less than ten (10), if\n\nrequired) with actuarial equivalence\n\ncomputed using a five percent (5%) interest\n\nrate assumption and the applicable mortality\n\ntable for the annuity starting date as\n\ndescribed in Revenue Ruling 2001-62 (or its\n\nsuccessor for these purposes, if applicable)\n\n(and expressing the member's age based on\n\ncompleted calendar months as of the annuity\n\nstarting date).\n\n(b) If the annuity starting date for the\n\nmember's benefit is after sixty-five (65)\n\nyears of age and occurs in a limitation year\n\nbeginning on or after January 1, 2009, and\n\nthe System does not have an immediately\n\ncommencing straight life annuity payable at\n\nboth sixty-five (65) years of age and the\n\nage of benefit commencement, the dollar\n\nlimitation at the member's annuity starting\n\ndate is the annual amount of a benefit\n\npayable in the form of a straight life\n\nannuity commencing at the member's annuity\n\nstarting date that is the actuarial\n\nequivalent of the dollar limitation under\n\nsubsection B of this section (adjusted under\n\nsubsection C of this section for years of\n\nparticipation less than ten (10), if\n\nrequired) with actuarial equivalence\n\ncomputed using a five percent (5%) interest\n\nrate assumption and the applicable mortality\n\ntable within the meaning of Section\n\n417(e)(3)(B) of the Internal Revenue Code of\n\n1986, as amended, as described in Revenue\n\nRuling 2007-67 (and subsequent guidance)\n\n(and expressing the member's age based on\n\ncompleted calendar months as of the annuity\n\nstarting date).\nrequired) with actuarial equivalence\n\ncomputed using a five percent (5%) interest\n\nrate assumption and the applicable mortality\n\ntable within the meaning of Section\n\n417(e)(3)(B) of the Internal Revenue Code of\n\n1986, as amended, as described in Revenue\n\nRuling 2007-67 (and subsequent guidance)\n\n(and expressing the member's age based on\n\ncompleted calendar months as of the annuity\n\nstarting date).\n\n(2) System Has Immediately Commencing Straight Life\n\nAnnuity Payable at Both Sixty-five (65) Years of\n\nAge and Age of Benefit Commencement. If the\n\nannuity starting date for the member's benefit is\n\nafter sixty-five (65) years of age and occurs in\n\na limitation year beginning on or after July 1,\n\n2007, and the System has an immediately\n\ncommencing straight life annuity payable at both\n\nsixty-five (65) years of age and the age of\n\nbenefit commencement, the dollar limitation at\n\nthe member's annuity starting date is the lesser\n\nof the limitation determined under division (1)\n\nof this subparagraph and the dollar limitation\n\nunder subsection B of this section (adjusted\n\nunder subsection C of this section for years of\n\nparticipation less than ten (10), if required)\n\nmultiplied by the ratio of the annual amount of\n\nthe adjusted immediately commencing straight life\n\nannuity under the System at the member's annuity\n\nstarting date to the annual amount of the\n\nadjusted immediately commencing straight life\n\nannuity under the System at sixty-five (65) years\n\nof age, both determined without applying the\n\nlimitations of this section. For this purpose,\n\nthe adjusted immediately commencing straight life\n\nannuity under the System at the member's annuity\n\nstarting date is the annual amount of such\n\nannuity payable to the member, computed\n\ndisregarding the member's accruals after sixty-\n\nfive (65) years of age but including actuarial\n\nadjustments even if those actuarial adjustments\n\nare used to offset accruals; and the adjusted\n\nimmediately commencing straight life annuity\n\nunder the System at sixty-five (65) years of age\n\nis the annual amount of such annuity that would\n\nbe payable under the System to a hypothetical\n\nmember who is sixty-five (65) years of age and\n\nhas the same accrued benefit as the member.\n\n3. Notwithstanding the other requirements of this subsection,\n\nin adjusting the dollar limitation for the member's annuity starting\n\ndate under subparagraph a of paragraph 1 of this subsection,\n\ndivision (1) of subparagraph b of paragraph 1 of this subsection,\n\nsubparagraph a of paragraph 2 of this subsection, or division (1) of\n\nsubparagraph b of paragraph 2 of this subsection, no adjustment\n\nshall be made to reflect the probability of a member's death between\n\nthe annuity starting date and sixty-two (62) years of age, or\n\nbetween sixty-five (65) years of age and the annuity starting date,\n\nas applicable, if benefits are not forfeited upon the death of the\n\nmember prior to the annuity starting date. To the extent benefits\n\nare forfeited upon death before the annuity starting date, such an\n\nadjustment shall be made. For this purpose, no forfeiture shall be\n\ntreated as occurring upon the member's death if the System does not\n\ncharge members for providing a qualified preretirement survivor\n\nannuity, as defined in Section 417(c) of the Internal Revenue Code\n\nof 1986, as amended, upon the member's death.\n\n4. Notwithstanding any other provision to the contrary, for\n\nlimitation years beginning on or after January 1, 1997, if payment\n\nbegins before the member reaches sixty-two (62) years of age, the\n\nreductions in the limitations in this subsection shall not apply to\n\na member who is a \"qualified participant\" as defined in Section\n\n415(b)(2)(H) of the Internal Revenue Code of 1986, as amended.\n\nE. Minimum Benefit Permitted: Notwithstanding anything else in\n\nthis section to the contrary, the benefit otherwise accrued or\nage 554\n\nbegins before the member reaches sixty-two (62) years of age, the\n\nreductions in the limitations in this subsection shall not apply to\n\na member who is a \"qualified participant\" as defined in Section\n\n415(b)(2)(H) of the Internal Revenue Code of 1986, as amended.\n\nE. Minimum Benefit Permitted: Notwithstanding anything else in\n\nthis section to the contrary, the benefit otherwise accrued or\n\npayable to a member under this System shall be deemed not to exceed\n\nthe maximum permissible benefit if:\n\n1. The retirement benefits payable for a limitation year under\n\nany form of benefit with respect to such member under this System\n\nand under all other defined benefit plans (without regard to whether\n\na plan has been terminated) ever maintained by a participating\n\nmunicipality do not exceed Ten Thousand Dollars ($10,000.00)\n\nmultiplied by a fraction:\n\na. the numerator of which is the member's number of\n\ncredited years (or part thereof, but not less than one\n\n(1) year) of service (not to exceed ten (10) years)\n\nwith the participating municipality, and\n\nb. the denominator of which is ten (10); and\n\n2. The participating municipality (or a predecessor employer)\n\nhas not at any time maintained a defined contribution plan in which\n\nthe member participated (for this purpose, mandatory employee\n\ncontributions under a defined benefit plan, individual medical\n\naccounts under Section 401(h) of the Internal Revenue Code of 1986,\n\nas amended, and accounts for postretirement medical benefits\n\nestablished under Section 419A(d)(1) of the Internal Revenue Code of\n\n1986, as amended, are not considered a separate defined contribution\n\nplan).\n\nF. In no event shall the maximum annual accrued retirement\n\nbenefit of a member allowable under this section be less than the\n\nannual amount of such accrued retirement benefit, including early\n\npension and qualified joint and survivor annuity amounts, duly\n\naccrued by the member as of the last day of the limitation year\n\nbeginning in 1982, or as of the last day of the limitation year\n\nbeginning in 1986, whichever is greater, disregarding any plan\n\nchanges or cost-of-living adjustments occurring after July 1, 1982,\n\nas to the 1982 accrued amount, and May 5, 1986, as to the 1986\n\naccrued amount.\n\nG. For limitation years beginning on or after January 1, 1995,\n\nsubsection C of this section, paragraph 1 of subsection D of this\n\nsection, and the proration provided under subparagraphs a and b of\n\nparagraph 1 of subsection E of this section, shall not apply to a\n\nbenefit paid under the System as a result of the member becoming\n\ndisabled by reason of personal injuries or sickness, or amounts\n\nreceived by the beneficiaries, survivors or estate of the member as\n\na result of the death of the member.\n\nH. If a member purchases service credit under the System, which\n\nqualifies as \"permissive service credit\" pursuant to Section 415(n)\n\nof the Internal Revenue Code of 1986, as amended, the limitations of\n\nSection 415 of the Internal Revenue Code of 1986, as amended, may be\n\nmet by either:\n\n1. Treating the accrued benefit derived from such contributions\n\nas an annual benefit under subsection B of this section; or\n\n2. Treating all such contributions as annual additions for\n\npurposes of Section 415(c) of the Internal Revenue Code of 1986, as\n\namended.\n\nI. If a member repays to the System any amounts refunded from\n\nthe System because of the member's prior termination or any other\n\namount which qualifies as a repayment under Section 415(k)(3) of the\n\nInternal Revenue Code of 1986, such repayment shall not be taken\n\ninto account for purposes of Section 415 of the Internal Revenue\n\nCode of 1986, as amended, pursuant to Section 415(k)(3) of the\n\nInternal Revenue Code of 1986, as amended.\n\nJ. For distributions made in limitation years beginning on or\n\nafter January 1, 2000, the combined limit of repealed Section 415(e)\ner Section 415(k)(3) of the\n\nInternal Revenue Code of 1986, such repayment shall not be taken\n\ninto account for purposes of Section 415 of the Internal Revenue\n\nCode of 1986, as amended, pursuant to Section 415(k)(3) of the\n\nInternal Revenue Code of 1986, as amended.\n\nJ. For distributions made in limitation years beginning on or\n\nafter January 1, 2000, the combined limit of repealed Section 415(e)\n\nof the Internal Revenue Code of 1986, as amended, shall not apply.\n\nK. The State Board is hereby authorized to revoke the special\n\nelection previously made on June 21, 1991, under Section 415(b)(10)\n\nof the Internal Revenue Code of 1986, as amended.\n\nL. Effective September 1, 2011, the interest rate and mortality\n\nassumptions for the System used to determine the actuarial\n\nequivalence of a member's form of benefit shall be set by the State\n\nBoard in a manner that precludes employer discretion, shall be based\n\nupon recommendations from independent professional advisors and\n\nshall be published annually in the actuarial valuation.\n\nM. All benefits payable from the Oklahoma Firefighters Pension\n\nand Retirement System including payments from the deferred option\n\nplan under Section 49-106.1 of this title shall be paid from the\n\ngeneral assets of the Oklahoma Firefighters Pension and Retirement\n\nFund pursuant to subsection B of Section 49-100.11 of this title.","path":["OK Code","Title 11"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os11.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"ca2a37715f5deda0d596cb09b7ed6e4262d2b4a1539e63d2058e539dde999cc6","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-11-11-49-106.1","next":"us-ok/okla.-stat.-tit.-11-11-49-106.3"},"notice":"GroundRules: Original legal text. Not legal advice."}