{"data":{"id":"us-ok/okla.-stat.-tit.-70-70-17-102.3","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 70, § 70-17-102.3","heading":"Tax-Sheltered Annuity Program - Federal tax","body":"qualification - Termination.\n\nThe Tax-Sheltered Annuity Program provided by Section 17-101 et\n\nseq. of this title shall satisfy the applicable qualification\n\nrequirements for grandfathered governmental tax-sheltered annuity\n\nprograms as specified in 26 U.S.C. Section 403(b) and the relevant\n\nregulatory provisions and guidance related thereto. In order to\n\nsatisfy these requirements and guidelines, the Teachers' Retirement\n\nTax-Sheltered Annuity Program shall be subject to the following\n\nprovisions, notwithstanding any other provision of the law governing\n\nthe Oklahoma Teachers' Retirement System:\n\n(1) The Board of Trustees shall administer and distribute the\n\ncorpus and income of the Tax-Sheltered Annuity Program to members\n\nand their beneficiaries pursuant to the applicable requirements\n\nunder 26 U.S.C. Section 403(b), relevant regulatory provisions and\n\nguidance under 26 U.S.C. Section 403(b), and in accordance with the\n\nlaw governing the Oklahoma Teachers' Retirement System.\n\n(2) All benefits paid from the retirement system shall be\n\ndistributed in accordance with the applicable requirements of 26\n\nU.S.C. Sections 403(b)(10) and 401(a)(9) and the regulations\n\nthereto.\n\n(3) To the extent required by 26 U.S.C. Sections 403(b)(10) and\n\n401(a)(31), the retirement system shall allow members and qualified\n\nbeneficiaries to elect a direct rollover of eligible distributions\n\nto another eligible retirement plan.\n\n(4) To the extent required under 26 U.S.C. Section 403(b)(11)\n\nand the regulations thereto, distributions under the Tax-Sheltered\n\nAnnuity Program shall only be paid when the member attains the age\n\nof fifty-nine and one-half (59 1/2) years, separates from service,\n\ndies, becomes disabled, or in the case of hardship.\n\n(5) The Board of Trustees may terminate the Tax-Sheltered\n\nAnnuity Program administered under 26 U.S.C. Section 403(b). The\n\nBoard of Trustees shall do so in accordance with the requirements of\n\nfederal tax law and in a way that is designed to minimize financial\n\nharm to the participants in the program. To assist in minimizing\n\nany such harm, an employer that sponsors a local tax-sheltered\n\nannuity program under 26 U.S.C. Section 403(b) and that has an\n\nactive or inactive participant with an account balance under the\n\nprogram, shall permit the provider administering the program on the\n\neffective date of such termination to be a provider in the local\n\nprogram and to offer the same investment options to program\n\nparticipants that were available under the program. The employer is\n\nrequired to permit the program provider to remain a provider under\n\nthe local program for a two-year period beginning with the first day\n\nof the local program's plan year following the effective date of\n\nsuch termination; provided, that this requirement shall apply with\n\nrespect to an investment option only so long as the program provider\n\ncontinues to lawfully provide the investment option.\n\nNotwithstanding the foregoing, any program participant may elect to\n\nremit contributions to and/or, subject to any contractual\n\nrestrictions, transfer the balance of the program participant to,\n\nany other approved provider under the local program at any time\n\nduring the two-year period provided herein. An employer that\n\nsponsors a local program that includes the program as the only\n\ninvestment option, and that has an active or inactive participant\n\nwith an account balance under the program, shall permit the program\n\nprovider to be a provider in that local program subject to the above\n\nterms, or the local program of the employer shall terminate at such\n\ntime that the program is terminated, in which case the employer\n\nshall be prohibited from contributing to any 403(b) program on\n\nbehalf of any employee for the twelve-month period required under\n\nTreasury Regulation Section 1.403(b)-10.","path":["OK Code","Title 70"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os70.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"3410e415e12742bd79bf4c0e656c72cca6fddce00403aab5b625d07f23c42a7d","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-70-70-17-102.2","next":"us-ok/okla.-stat.-tit.-70-70-17-103"},"notice":"GroundRules: Original legal text. Not legal advice."}