{"data":{"id":"us-ok/okla.-stat.-tit.-74-74-1370","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 74, § 74-1370","heading":"Flexible benefit allowance","body":"A. Subject to the requirement that a participant must elect the\n\ndefault benefits, the basic plan, or is a person who has retired\n\nfrom a branch of the United States military and has been provided\n\nwith health care through a federal plan, to the extent that it is\n\nconsistent with federal law, or is an active employee who is\n\neligible to participate and who is a participant who has opted out\n\nof the state's basic plan according to the provisions of Section\n\n1308.3 of this title, and provides proof of this coverage, flexible\n\nbenefit dollars may be used to purchase any of the benefits offered\n\nby the Oklahoma Employees Insurance and Benefits Board under the\n\nflexible benefits plan. A participant who has opted out of the\n\nstate's basic plan and provided proof of other coverage as described\n\nin this subsection shall receive One Hundred Fifty Dollars ($150.00)\n\nin lieu of the flexible benefit monthly. A participant's flexible\n\nbenefit dollars for a plan year shall consist of the sum of (1)\n\nflexible benefit allowance credited to a participant by the\n\nparticipating employer, and (2) pay conversion dollars elected by a\n\nparticipant.\n\nB. Each participant shall be credited annually with a specified\n\namount as a flexible benefit allowance which shall be available for\n\nthe purchase of benefits. For participants on a biweekly payroll\n\nsystem the disbursement of the flexible benefit allowance shall be\n\ncredited over twenty-four pay periods resulting in two pay periods\n\nthat do not reflect a credit. The amount of the flexible benefit\n\nallowance credited to each participant shall be communicated to him\n\nor her prior to the enrollment period for each plan year.\n\nC. Except as provided in subsection D of this section, for the\n\nplan year beginning January 1, 2013, the benefit allowance shall not\n\nbe less than the Plan Year 2012 benefit allowance amounts, and each\n\nplan year thereafter, the amount of a participant's benefit\n\nallowance, which shall be the total amount the employer contributes\n\nfor the payment of insurance premiums or other benefits, shall be:\n\n1. The greater of the amount of benefit which the participant\n\nwould have qualified for as of plan year 2021, or an amount equal to\n\nthe monthly premium of the HealthChoice High Option plan, the\n\naverage monthly premiums of the dental plans, the monthly premium of\n\nthe disability plan, and the monthly premium of the basic life\n\ninsurance plan offered to state employees or the amount determined\n\nby the Council based on a formula for determining a participant's\n\nbenefit credits consistent with the requirements of 26 U.S.C.,\n\nSection 125(g)(2) and regulations thereunder;\n\n2. The greater of the amount of benefit which the participant\n\nwould have qualified for as of plan year 2021 or an amount equal to\n\nthe monthly premium of the HealthChoice High Option plan, the\n\naverage monthly premiums of the dental plans, the monthly premium of\n\nthe disability plan, and the monthly premium of the basic life\n\ninsurance plan offered to state employees plus one of the additional\n\namounts as follows for participants who elect to include one or more\n\ndependents:\n\na. for a spouse, seventy-five percent (75%) of the\n\nHealthChoice High Option plan, available for coverage\n\nof a spouse,\n\nb. for one child, seventy-five percent (75%) of the\n\nHealthChoice High Option plan, for coverage of one\n\nchild,\n\nc. for two or more children, seventy-five percent (75%)\n\nof the HealthChoice High Option plan, for coverage of\n\ntwo or more children,\n\nd. for a spouse and one child, seventy-five percent (75%)\n\nof the HealthChoice High Option plan, for coverage of\n\na spouse and one child, or\n\ne. for a spouse and two or more children, seventy-five\n\npercent (75%) of the HealthChoice High Option plan,\n\nfor coverage of a spouse and two or more children;\n\n3. For the plan year beginning January 1, 2022, the amount of a\n\nparticipant's benefit allowance shall be increased by two percent\nventy-five percent (75%)\n\nof the HealthChoice High Option plan, for coverage of\n\na spouse and one child, or\n\ne. for a spouse and two or more children, seventy-five\n\npercent (75%) of the HealthChoice High Option plan,\n\nfor coverage of a spouse and two or more children;\n\n3. For the plan year beginning January 1, 2022, the amount of a\n\nparticipant's benefit allowance shall be increased by two percent\n\n(2%) from the amount provided in the previous year;\n\n4. For the plan year beginning January 1, 2023, the amount of a\n\nparticipant's benefit allowance shall be increased by two percent\n\n(2%) from the amount provided in the previous year; or\n\n5. The greater of the amount of benefit which the participant\n\nwould have qualified for as of plan year 2023, or an amount equal to\n\nthe monthly premium of the HealthChoice High Option plan, the\n\naverage monthly premiums of the dental plans, the monthly premium of\n\nthe disability plan and the monthly premium of the basic life\n\ninsurance plan offered to state employees plus one of the additional\n\namounts as follows for participants who elect to include one or more\n\ndependents:\n\na. for a spouse, seventy-five percent (75%) of the\n\nHealthChoice High Option plan, available for coverage\n\nof a spouse,\n\nb. for one child, seventy-five percent (75%) of the\n\nHealthChoice High Option plan, for coverage of one\n\nchild,\n\nc. for two or more children, seventy-five percent (75%)\n\nof the HealthChoice High Option plan, for coverage of\n\ntwo or more children,\n\nd. for a spouse and one child, seventy-five percent (75%)\n\nof the HealthChoice High Option plan, for coverage of\n\na spouse and one child, or\n\ne. for a spouse and two or more children, seventy-five\n\npercent (75%) of the HealthChoice High Option plan,\n\nfor coverage of a spouse and two or more children.\n\nD. To the extent that it is consistent with federal laws and\n\nregulations, and in particular the regulations set forth by the\n\nSecretary of Defense in 32 C.F.R. Section 199.8(d)(6), a benefit may\n\nbe provided to an employee who is an eligible TRICARE beneficiary\n\nwhereby he or she may purchase a group TRICARE Supplemental product\n\nunder a qualifying cafeteria plan consistent with the requirements\n\nof 26 U.S.C., Section 125, provided that:\n\n1. The state, as employer, may not provide any payment for nor\n\nreceive any consideration or compensation for offering the benefit;\n\n2. The employer's only involvement is in providing the\n\nadministrative support for the benefit under the cafeteria plan; and\n\n3. The employee's participation in the plan is completely\n\nvoluntary.\n\nThe benefit allowance under paragraph 2 of subsection C of this\n\nsection of an employee whose plan participation includes a group\n\nTRICARE Supplemental benefit shall not include any allowance or\n\nportion thereof for such TRICARE Supplemental benefit.\n\nE. This section shall not prohibit payments for supplemental\n\nhealth insurance coverage made pursuant to Section 1314.4 of this\n\ntitle or payments for the cost of providing health insurance\n\ncoverage for dependents of employees of the Grand River Dam\n\nAuthority.\n\nF. If a participant desires to buy benefits whose sum total of\n\nbenefit prices is in excess of his or her flexible benefit\n\nallowance, the participant may elect to use pay conversion dollars\n\nto purchase such excess benefits. Pay conversion dollars may be\n\nelected through a salary reduction agreement made pursuant to the\n\nelection procedures of Section 1371 of this title. The elected\n\namount shall be deducted from the participant's compensation in\n\nequal amounts each pay period, with the exception of participants on\n\na biweekly payroll system, where such deduction shall occur over\n\ntwenty-four pay periods over the plan year. On termination of\n\nemployment during a plan year, a participant shall have no\n\nobligation to pay the participating employer any pay conversion\nThe elected\n\namount shall be deducted from the participant's compensation in\n\nequal amounts each pay period, with the exception of participants on\n\na biweekly payroll system, where such deduction shall occur over\n\ntwenty-four pay periods over the plan year. On termination of\n\nemployment during a plan year, a participant shall have no\n\nobligation to pay the participating employer any pay conversion\n\ndollars allocated to the portion of the plan year after the\n\nparticipant's termination of employment.\n\nG. If a participant elects benefits whose sum total of benefit\n\nprices is less than his or her flexible benefit allowance, he or she\n\nshall receive any excess flexible benefit allowance as taxable\n\ncompensation. Such taxable compensation will be paid in\n\nsubstantially equal amounts each pay period, with the exception of\n\nparticipants on a biweekly payroll system, where such deduction\n\nshall occur over twenty-four pay periods over the plan year. On\n\ntermination during a plan year, a participant shall have no right to\n\nreceive any such taxable cash compensation allocated to the portion\n\nof the plan year after the participant's termination. Nothing\n\nherein shall affect a participant's obligation to elect the minimum\n\nbenefits or to accept the default benefits of the plan with\n\ncorresponding reduction in the sum of his or her flexible benefit\n\nallowance equal to the sum total benefit price of such minimum\n\nbenefits or default benefits.","path":["OK Code","Title 74"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os74.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"8a143751b1556006609673e8bdf131527248ee6a3fed87ae9a7a31e9665f4997","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-74-74-1369","next":"us-ok/okla.-stat.-tit.-74-74-1371"},"notice":"GroundRules: Original legal text. Not legal advice."}