Okla. Admin. Code § 590:40-9-34

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

Section 590:40-9-34 - Emergency withdrawals

(a) For purposes of this Section, "unforeseeable emergency" means severe financial hardship to the Participant, resulting from a sudden and unexpected illness or accident of the Participant or of a dependent of the Participant, loss of the Participant's property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant. The circumstances that will constitute an unforeseeable emergency will depend upon the facts of each case, but, in any case, payment may not be made to the extent that such hardship is or may be relieved:

(1) Through reimbursement or compensation by insurance or otherwise.

(2) By liquidation of the Participant's assets, to the extent the liquidation of these assets would not itself cause severe financial hardship, or

(3) By cessation of deferrals under the Plan.

Foreseeable personal expenditures which may normally be subject to a budget, such as a down payment for a home, mortgage payments, rent, credit card debt, the purchase of an automobile, college or other schooling expense, etc., shall not constitute an unforeseeable emergency.

(b) Notwithstanding any other provisions of this Subchapter, if an unforeseeable emergency or financial hardship occurs and is beyond the control of the Participant, a Participant may request OPERS to pay benefits to him or her immediately. If the application and justification for payment is approved by OPERS, payment will be processed by the Recordkeeper within ten (10) business days upon authorization from the Plan. Benefits to be paid shall be limited strictly to that amount needed to meet the emergency situation constituting financial hardship. Any remaining benefits shall be paid in accordance with this Subchapter. Two (2) or more emergency withdrawals paid from Participant's Account under this Subchapter will result in cancellation of that Participant's voluntary deferrals into the Plan for a period of not less than six (6) months following payment of the second emergency withdrawal. For purposes of this Section, any emergency withdrawals since the Participant's initial enrollment into the Plan will be considered when applying this Section except that no cancellation will occur until the Participant has had a subsequent emergency withdrawal. The Participant will be responsible for re-establishing a voluntary deferral amount upon completion of the six-month cancellation period.

Okla. Admin. Code § 590:40-9-34

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