{"data":{"id":"us-ok/okla.-stat.-tit.-47-47-2-307.7","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 47, § 47-2-307.7","heading":"Reduction-in-force termination credit","body":"A. A member of the Oklahoma Law Enforcement Retirement System\n\nwho has ten (10) or more years of full-time-equivalent employment\n\nwith a participating employer, and who is terminated by a state\n\nagency or other state governmental entity because the member's\n\nposition is eliminated through a reduction-in-force after July 1,\n\n1998, and is within three (3) years of a normal retirement date as\n\ndefined in paragraph 7 of Section 2-300 of this title may purchase\n\ntermination credit of a period not to exceed the lesser of three (3)\n\nyears or the number of years or months or both years and months\n\nrequired in order for the member to reach normal retirement date in\n\nthe same period of time and with the same service credit which would\n\nhave otherwise accrued if the termination had not occurred.\n\nB. In order to receive the termination credit authorized by\n\nthis section, the member shall be required to file an election with\n\nthe System indicating an intent to purchase the credit. The member\n\nshall have a period of six (6) months from the date the member is\n\nterminated as described in subsection A of this section within which\n\nto file the election.\n\nC. To purchase the termination credit, the member shall be\n\nrequired to make payment to the System of an amount equal to both\n\nthe employer and employee contributions which would have been paid\n\nto the System based upon the actual paid base salary as defined in\n\nparagraph 8 of Section 2-300 of this title, which was received by\n\nthe member in the last full month that the member was employed by\n\nthe state agency or other state governmental entity multiplied by\n\nthe number of months required in order for the combination of the\n\nparticipating service and member's age to equal the amount required\n\nfor the member to reach normal retirement date with an unreduced\n\nbenefit as if the member had not been terminated.\n\nD. The member must make full payment to the System of all\n\nrequired contribution amounts within sixty (60) days of filing the\n\nelection to purchase the credit. The member must vest his or her\n\nbenefits with a declared future retirement date as of the first\n\nmonth the member is eligible for normal retirement. Failure to make\n\nthe full payment to the System of the required contribution amounts,\n\nfor any reason, within the time prescribed, shall result in\n\ncancellation of the election provided pursuant to this section, and\n\nreturn of the purchase amount tendered, without interest.\n\nNotwithstanding anything herein to the contrary, termination credit\n\npurchases may be made by:\n\n1. A cash lump-sum payment;\n\n2. A trustee-to-trustee transfer of non-Roth funds from a Code\n\nSection 401(a) qualified plan;\n\n3. 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). Roth accounts, Coverdell\n\nEducation Savings Accounts and after-tax contributions shall not be\n\nused to purchase such service credit; or\n\n4. Any combination of the above methods of payment.\n\nE. Purchased termination credit may only be used as service\n\ncredit to qualify the member for normal retirement.\n\nF. If the member chooses to retire at any time prior to the\n\nmember's normal retirement date or returns to employment with a\n\nparticipating employer of the System at any time prior to\n\nretirement, the purchase of termination credit pursuant to this\n\nsection shall be void and the System will return the purchase amount\n\ntendered, without interest.\n\nG. In the event of the death of the member prior to retirement,\n\nthe member's spouse, if otherwise eligible for benefits pursuant to\n\nSection 2-306 of this title, may elect to receive benefits which\nr of the System at any time prior to\n\nretirement, the purchase of termination credit pursuant to this\n\nsection shall be void and the System will return the purchase amount\n\ntendered, without interest.\n\nG. In the event of the death of the member prior to retirement,\n\nthe member's spouse, if otherwise eligible for benefits pursuant to\n\nSection 2-306 of this title, may elect to receive benefits which\n\ninclude the termination credit on the member's declared future\n\nretirement date, or may elect to receive a return of the purchase\n\namount tendered, without interest.","path":["OK Code","Title 47"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os47.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"aa483921880719c725f68b2e98e0675166daad453dd270e69a38db489e416913","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-47-47-2-307.5","next":"us-ok/okla.-stat.-tit.-47-47-2-308"},"notice":"GroundRules: Original legal text. Not legal advice."}