{"data":{"id":"us-ok/okla.-stat.-tit.-70-70-17-105.2","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 70, § 70-17-105.2","heading":"Partial lump-sum payment and reduced annuity","body":"A. A member who is eligible to retire with at least thirty (30)\n\nyears of creditable service may elect to receive a partial lump-sum\n\npayment on the date of retirement and a reduced annuity. The\n\npartial lump-sum payment shall be an amount equal to the unreduced\n\nretirement benefit, which shall be referred to as the “Maximum\n\nRetirement Allowance” for purposes of this section, which would have\n\nbeen paid over a period of twelve (12), twenty-four (24) or thirty-\n\nsix (36) months, had the lump-sum option not been elected. Once the\n\npayout amount is elected, a reduced Maximum Retirement Allowance is\n\nthen calculated using factors adopted by the Board of Trustees based\n\nupon the System’s actuarial expected rate of return and the member’s\n\nage at retirement and the payout option (twelve (12), twenty-four\n\n(24), or thirty-six (36) months) elected. This reduced Maximum\n\nRetirement Allowance shall also be reduced in accordance with any\n\nretirement options the member has elected pursuant to Section 17-105\n\nof Title 70 of the Oklahoma Statutes.\n\nB. The partial lump-sum payment, pursuant to this section,\n\nshall be paid in a check separate from the regular monthly\n\nretirement benefit. The total amount of the partial lump-sum\n\npayment shall be deducted from the member’s account balance\n\nconsisting of the employee contributions plus interest for purposes\n\nof determining unused contributions remaining in the account. The\n\nmember may elect to rollover the taxable portion of the partial\n\nlump-sum payment to an eligible retirement plan or individual\n\nretirement account (IRA). The nontaxable portion of the partial\n\nlump-sum payment can be rolled over to an IRA or another qualified\n\nretirement plan as allowed by the Internal Revenue Code and\n\nregulations. This partial lump-sum payment shall be subject to\n\nfederal income tax in accordance with the Internal Revenue Code\n\nSection 72 and other such Internal Revenue Code sections and\n\nregulations as may be applicable. This partial lump-sum benefit is\n\nsubject to the same restrictions for assignment and attachment as\n\nall other retirement benefits. The appropriate portion of the\n\npartial lump-sum distribution will be reported to the Internal\n\nRevenue Service (IRS) as taxable income and appropriate tax\n\nwithholdings will be withheld unless the member elects to make a\n\ndirect rollover of the taxable portion of the funds. Should the\n\nmember have after-tax contributions, a portion of such after-tax\n\ncontributions will be allocated to the partial lump-sum payment and\n\nto the remaining annuity on a prorata basis.\n\nC. The partial lump-sum option under this section may be\n\nelected only once by a member and may not be elected by a retiree.\n\nD. The board of trustees shall promulgate any rules necessary\n\nfor the implementation of this section.","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":"0528e7d63cb296cdbe104d7bd13a09d67544f525b59acc3d8859db2cf99b1238","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-70-70-17-105.1","next":"us-ok/okla.-stat.-tit.-70-70-17-106"},"notice":"GroundRules: Original legal text. Not legal advice."}