{"data":{"id":"us-ok/okla.-stat.-tit.-11-11-49-117.3","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 11, § 11-49-117.3","heading":"Transferred credited service - Computation of","body":"purchase price.\n\nA. The State Board shall adopt rules or procedures for\n\ncomputation of the purchase price for transferred credited service.\n\nThese rules or procedures shall base the purchase price for each\n\nyear purchased on the actuarial cost of the incremental projected\n\nbenefits to be purchased. The purchase price shall represent the\n\npresent value of the incremental projected benefits discounted\n\naccording to the member's age at the time of purchase. Incremental\n\nprojected benefits shall be the difference between the projected\n\nbenefit said member would receive without purchasing the transferred\n\ncredited service and the projected benefit after purchase of the\n\ntransferred credited service computed as of the earliest age at\n\nwhich the member would be able to retire. Said computation shall\n\nassume an unreduced benefit and be computed using interest and\n\nmortality assumptions consistent with the actuarial assumptions\n\nadopted by the Board of Trustees for purposes of preparing the\n\nannual actuarial evaluation.\n\nB. A member wishing to purchase transferred credited service\n\nfrom another retirement system must be an active paid member at the\n\ntime of purchase and must have been an active paid member for a\n\nminimum of thirty (30) months so as to establish an adequate salary\n\nhistory for the computation of the purchase price of transferred\n\ncredited service. Upon application by an eligible member to\n\npurchase transferred credited service, the State Board shall provide\n\nthe member with a computation of the purchase price for transferred\n\ncredited service. The computed purchase price shall be good for\n\nninety (90) days from the date the computed purchase price is\n\nprovided to the member and, except as otherwise provided in\n\nsubsection F of this section, must be paid within such ninety-day\n\nperiod. After the expiration of the ninety-day period without\n\npayment by the member, or payment commencing as provided in\n\nsubsection F of this section, the member must reapply to purchase\n\ntransferred credited service, a new purchase price must be computed\n\nand provided to the member by the State Board, and a new ninety-day\n\nperiod shall commence.\n\nC. Transferred credited service shall be taken into account\n\nonly if payment is received prior to the commencement of benefits,\n\nexcept as otherwise provided in subsection F of this section.\n\nD. Members who pay the purchase price in cash by the due date\n\ndescribed in subsection B of this section may make payment by:\n\n1. A trustee-to-trustee transfer of non-Roth funds from a Code\n\nSection 403(b) annuity or custodial account, an eligible deferred\n\ncompensation plan described in Code Section 457(b) which is\n\nmaintained by an eligible employer described in Code Section\n\n457(e)(1)(A), and/or a Code Section 401(a) qualified plan, provided\n\nthat after-tax funds in retirement plans shall not be used to\n\npurchase transferred credited service;\n\n2. A direct rollover of tax-deferred funds from a Code Section\n\n403(b) annuity or custodial account, an eligible deferred\n\ncompensation plan described in Code Section 457(b) which is\n\nmaintained by an eligible employer described in Code Section\n\n457(e)(1)(A), a Code Section 401(a) qualified plan, and/or a Code\n\nSection 408(a) or 408(b) traditional or conduit Individual\n\nRetirement Account or Annuity (IRA), provided that Roth accounts,\n\nafter-tax funds in retirement plans or IRAs, and Coverdell Education\n\nSavings Accounts shall not be used to purchase transferred credited\n\nservice; or\n\n3. Certified check.\n\nA combination of payment methods described in paragraphs 1 through 3\n\nof this subsection may be used.\n\nThe State Board shall promulgate such rules or procedures as are\n\nnecessary to implement the provisions of this subsection.\n\nE. Members amortizing the purchase price and making amortized\n\npayments by payroll deduction on an after-tax basis, pursuant to\nn of payment methods described in paragraphs 1 through 3\n\nof this subsection may be used.\n\nThe State Board shall promulgate such rules or procedures as are\n\nnecessary to implement the provisions of this subsection.\n\nE. Members amortizing the purchase price and making amortized\n\npayments by payroll deduction on an after-tax basis, pursuant to\n\nsubsection F of this section, shall have the option of making a cash\n\npayment for the balance of the actuarial purchase price with\n\ninterest due through the date of payment by:\n\n1. A trustee-to-trustee transfer of non-Roth funds from a Code\n\nSection 403(b) annuity or custodial account, an eligible deferred\n\ncompensation plan described in Code Section 457(b) which is\n\nmaintained by an eligible employer described in Code Section\n\n457(e)(1)(A), and/or a Code Section 401(a) qualified plan, provided\n\nthat after-tax funds in retirement plans shall not be used to\n\npurchase transferred credited service;\n\n2. A direct rollover of tax-deferred funds from a Code Section\n\n403(b) annuity or custodial account, an eligible deferred\n\ncompensation plan described in Code Section 457(b) which is\n\nmaintained by an eligible employer described in Code Section\n\n457(e)(1)(A), a Code Section 401(a) qualified plan, and/or a Code\n\nSection 408(a) or 408(b) traditional or conduit Individual\n\nRetirement Account or Annuity (IRA), provided that Roth accounts,\n\nafter-tax funds in retirement plans or IRAs, and Coverdell Education\n\nSavings Accounts shall not be used to purchase transferred credited\n\nservice; or\n\n3. Certified check.\n\nA combination of payment methods described in paragraphs 1 through 3\n\nof this subsection may be used.\n\nF. In the event that the member does not pay the purchase price\n\nprovided for in this section by the due date established in\n\nsubsection B of this section as provided for in subsection D of this\n\nsection, the State Board may permit the member to amortize the\n\npurchase price over a period not to exceed sixty (60) months or\n\nother method approved by the State Board. Such amortized payments\n\nshall be made by payroll deductions on an after-tax basis and shall\n\nnot be picked up by the member's employer. The amortized payments\n\nshall include interest at a rate not to exceed the actuarially\n\nassumed interest rate adopted by the State Board for investment\n\nearnings each year. Any member who ceases to make payment,\n\nterminates, retires or dies before completing the payments provided\n\nfor in this section shall receive transferred, credited service\n\nprorated for only those payments made, not including interest,\n\nunless the unpaid balance, including interest, is paid by the\n\nmember, the member's surviving spouse, the member's beneficiary, or\n\nthe member's estate or successor in interest within ninety (90) days\n\nof the first to occur of said member's termination, retirement, or\n\ndeath; provided that no retirement benefits shall be payable until\n\nthe earliest of the date the unpaid balance is paid in full or\n\nninety (90) days after the first to occur of the member's\n\ntermination, retirement, or death.\n\nG. The State Board shall promulgate such rules or procedures as\n\nare necessary to implement the provisions of this section.","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":"e21a4e991db974535dae4c9438f6fa2ddce4ff630aaf0d495211f4cb24b6ad80","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-11-11-49-117.2","next":"us-ok/okla.-stat.-tit.-11-11-49-117.4"},"notice":"GroundRules: Original legal text. Not legal advice."}