Okla. Admin. Code § 590:40-3-8

Current through Vol. 42, No. 8, January 2, 2025

Section 590:40-3-8 - Discontinuance of contributions; termination; tax qualification

(a)Discontinuance of Plans. It is the present intention of the State of Oklahoma to maintain these Plans. Nevertheless, the State reserves the right, at any time, to discontinue or terminate either one or both of the Plans, to terminate the Employer's liability to make further contributions to this Plan, and to suspend contributions for a fixed or indeterminate period of time.

(b)Duties of Board. If either of the Plans is curtailed, terminated, or the contributions suspended permanently, the Board of Trustees shall nonetheless be responsible for the supervision and the payment of the benefits resulting from amounts contributed and received by OPERS prior to the amendment, modification or termination in accordance with this Subchapter.

(c)Notice of termination. Either one or both of the Plans and related Trust or Trusts may be terminated at any time by the State, by giving notice in writing to the Board of Trustees, which notice shall recite the date upon which the termination shall be effective. After receipt of such notice, the Board of Trustees shall continue to hold, invest and administer the Plan or Plans and related Trusts until the assets are liquidated and distributed to the Participants and Beneficiaries. The distribution of assets shall occur as soon as administratively practicable after the termination of the Plan or Plans. The Trust shall terminate only when no assets of the Trust remain in the possession of the Board of Trustees.

(d)Tax qualification of 401(a) plan. The Trust created under Subchapter 7 of this Chapter is designated as constituting a part of the Plan intended to continue to qualify and to be tax exempt under Code Sections 401(a) and 501(a). Until advised otherwise, the Board of Trustees may conclusively assume this Trust is qualified under Code Section 501(a) and this Trust is exempt to that extent from federal income taxes. Anything herein to the contrary notwithstanding, if a determination letter is issued by the Internal Revenue Service to the effect that the Plan and Trust do not meet the requirements of Code Sections 401(a) and 501(a), the Employer shall be entitled, at its option, to withdraw all contributions made, in which event the Plan and the Trust shall then terminate and all rights of the Participants shall terminate effective as of the date of the adverse determination letter.

(e)Tax status of the 457(b) plan. The Trust created under Subchapter 9 of this Chapter is designated as constituting a part of the Plan intended to be tax exempt under Code Sections 457 and 501(a). Until advised otherwise, the Board may conclusively assume this Trust is tax exempt under Code Section 501(a) and is exempt from federal income taxes. Anything herein to the contrary notwithstanding, if a ruling is issued by the Internal Revenue Service to the effect that the Plan and Trust do not meet the requirements of Code Section 457(b), the Employer shall be entitled, at its option, to withdraw all contributions made, in which event the Plan and Trust shall then terminate and all rights of the Participants shall terminate as of the date of the ruling.

Okla. Admin. Code § 590:40-3-8

Adopted by Oklahoma Register, Volume 32, Issue 24, September 1, 2015, eff. 9/11/2015