{"data":{"id":"us-ok/okla.-stat.-tit.-11-11-49-138.1","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 11, § 11-49-138.1","heading":"Prior military service credit — Computation of","body":"purchase price.\n\nA. The State Board shall adopt rules or procedures for\n\ncomputation of the purchase price for prior military service credit\n\nprovided for in subsection E of Section 49-138 of Title 11 of the\n\nOklahoma Statutes. These rules or procedures shall base the\n\npurchase price for each year purchased on the actuarial cost of the\n\nincremental projected benefits to be purchased. The purchase price\n\nshall represent the present value of the incremental projected\n\nbenefits discounted according to the member's age at the time of\n\npurchase. Incremental projected benefits shall be the difference\n\nbetween the projected benefit said member would receive without\n\npurchasing the prior military service credit and the projected\n\nbenefit after purchase of the prior military service credit computed\n\nas of the earliest age at which the member would be able to retire.\n\nSaid computation shall assume an unreduced benefit and be computed\n\nusing interest and mortality assumptions consistent with the\n\nactuarial assumptions adopted by the Board of Trustees for purposes\n\nof preparing the annual actuarial evaluation.\n\nB. A member wishing to purchase prior military service credit\n\nmust be an active paid member for a minimum of thirty (30) months so\n\nas to establish an adequate salary history for the computation of\n\nthe purchase price of prior military service credit. Upon\n\napplication by an eligible member to purchase prior military service\n\ncredit, the State Board shall provide the member with a computation\n\nof the purchase price for prior military service credit. The\n\ncomputed purchase price shall be good for ninety (90) days from the\n\ndate the computed purchase price is provided to the member and,\n\nexcept as otherwise provided in subsection G of this section, must\n\nbe paid within such ninety-day period. After the expiration of the\n\nninety-day period without payment by the member, or payment\n\ncommencing as provided in subsection G of this section, the member\n\nmust reapply to purchase prior military service credit, a new\n\npurchase price must be computed and provided to the member by the\n\nState Board, and a new ninety-day period shall commence.\n\nC. An active volunteer member may request to purchase volunteer\n\nprior military service credit in accordance with the second, third,\n\nand fourth sentences of subsection B of this section. A volunteer\n\nmember who purchases volunteer prior military service credit and\n\nlater becomes a paid member may purchase paid prior military service\n\ncredit in accordance with all of subsection B of this section,\n\nincluding the requirement that the member be an active paid member\n\nfor a minimum of thirty (30) months so as to establish an adequate\n\nsalary history for the computation of the purchase price of prior\n\nmilitary service credit. Any amount paid to purchase volunteer\n\nprior military service credit, excluding interest, shall reduce the\n\npurchase price for the paid prior military service credit, and the\n\npurchased volunteer prior military service credit shall be\n\ndisregarded.\n\nD. Purchased prior military service credit shall be taken into\n\naccount only if payment is received prior to the commencement of\n\nbenefits, except as otherwise provided in subsection G of this\n\nsection.\n\nE. 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 military service credit;\n\n2. A direct rollover of tax-deferred funds from a Code Section\n\n403(b) annuity or custodial account, an eligible deferred\nn 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 military service credit;\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 military service\n\ncredit; 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. Members amortizing the purchase price and making amortized\n\npayments by payroll deduction on an after-tax basis, as described in\n\nsubsection G 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 military service credit;\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 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 and IRAs, and Coverdell\n\nEducation Savings Accounts shall not be used to purchase military\n\nservice credit; 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\nG. 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 E 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 prior military service credit\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\nH. The State Board shall promulgate such rules or procedures as\nssor 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\nH. 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":"b7e1194932ee4f4526105cdaca7f0b016634176b819daaf79ed427a5b18b30fd","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-11-11-49-138","next":"us-ok/okla.-stat.-tit.-11-11-49-139"},"notice":"GroundRules: Original legal text. Not legal advice."}