Okla. Admin. Code § 715:10-5-7.2

Current through Vol. 42, No. 6, December 2, 2024

Section 715:10-5-7.2 - Transfer of service credit to the Oklahoma Public Employees Retirement System

(a) Any member of the Teachers' Retirement System, who is an active member of the Oklahoma Public Employees Retirement System, may file a notice of election to transfer credit for those years of service accumulated by the member while a member of the Teachers' Retirement System.

(b) A member of the Teachers' Retirement System whose last qualifying employment was with an entity or institution within the Oklahoma State System of Higher Education, State Board of Education, Oklahoma Department of Career and Technology Education, Oklahoma School of Science and Mathematics, Oklahoma Center for the Advancement of Science and Technology, State Department of Rehabilitation Services, Oklahoma State Regents for Higher Education, Department of Corrections, State Department of Education, Oklahoma Board of Private Vocational Schools, Board of Regents of Oklahoma Colleges, Oklahoma Student Loan Authority, or the Teachers' Retirement System of Oklahoma may transfer to the Oklahoma Public Employees Retirement System credit for years of service accumulated in the Teachers' Retirement System.

(c) The member must file a notice with the Teachers' Retirement System and the Oklahoma Public Employees Retirement System of the member's election to transfer service credit. The notice must include a list of the years to be transferred and the member's social security number or other identifying information that may be required by either retirement system to locate and evaluate the member's service credit.

(d) Within thirty (30) days of receipt of notification of the member's intent to transfer service to the Oklahoma Public Employees Retirement System, the Teachers' Retirement System shall:

(1) determine the sum of the employee and employer contributions applicable to the years of service sought to be transferred plus interest consistent with the actuarial assumptions adopted by the Board of Trustees for purposes of preparing the annual actuarial evaluation, and

(2) if the member has a vested account with the Teachers' Retirement System, calculate the present value of the service to be transferred, discounted according to the member's age at the time of transfer.

(e) For purposes of this section, employer contributions apportioned to each member for each fiscal year shall be determined as a percentage of revenue received from the tax on natural gas and contributions from local employers required by 70 O.S. 17-108.1 divided by the annual payroll of active members of the Teachers' Retirement System. Total revenue from the tax on natural gas and local employers shall be apportioned to active members as a percentage of the actuarial present value of future benefits for active members divided by the actuarial present value future benefits for all members of the Teachers' Retirement System. The Board of Trustees shall approve a separate schedule using this computation for each fiscal year.

(f) The computation defined in paragraph (2) of subsection (d) of this section shall assume an unreduced benefit and be computed using interest and mortality assumptions consistent with the actuarial assumptions adopted by the Board of Trustees for purposes of preparing the annual actuarial evaluation but shall not make any projections regarding future salary.

(g) Upon completion of the computation(s) defined in subsection (d) of this section, the Teachers' Retirement System shall notify the member and the Oklahoma Public Employees Retirement System of the amount to be transferred. Except as provided in subsection (b) of this section, said amount shall be the greater of the product of paragraphs (1) and (2) of subsection (d) of this section. For those members included in subsection (b) of this section, the Teachers' Retirement System shall transfer to the Oklahoma Public Employees Retirement System is amount as calculated in paragraph (d)(1) of this rule.

(h) Upon notification from the Oklahoma Public Employees Retirement System that the requirements of the transfer have been completed, the Teachers' Retirement System shall, within sixty (60) days, remit to the Oklahoma Public Employees Retirement System the lesser of the amount calculated under subsection (f) of this section, or the amount certified by the Oklahoma Public Employees Retirement System that is necessary to effect said transfer.

(i) A former member of the Teachers' Retirement System may redeposit any previously withdrawn account for the purpose of transferring the former member's service credit to the Oklahoma Public Employees Retirement System. The former member shall remit to the Teachers' Retirement System the amount of accumulated contributions the member has withdrawn plus simple interest of ten percent (10%) per annum prior to making the election. The deposits made by the former member will reestablish his or her account in the Teachers' Retirement System and that amount will become part of the amount to be transferred as determined in subsection (d) of this section. If the election is deemed invalid and the transfer is canceled, the accumulated contributions plus interested remitted to the Teachers' Retirement System shall be returned to the member. No additional interest will be paid by theTeachers' Retirement System in such cases.

(j) All service credit accumulated by the member in the Teachers' Retirement System shall be canceled upon the transfer of any service credit. The member shall forfeit all rights to retirement benefits or service credits in the Teachers' Retirement System, and shall be considered to have withdrawn from the Teachers' Retirement System.

(k) If for any reason the member fails to satisfy the requirements of this transfer, the election to transfer service credit shall be void and of no effect, and the Oklahoma Public Employees Retirement System shall return all monies previously remitted in the member's behalf. The member's account in the Teachers' Retirement System will be reestablished at the same level as before the transfer was initiated.

Okla. Admin. Code § 715:10-5-7.2

Added at 12 Ok Reg 295, eff 10-14-94 through 7-14-95 (emergency)¹; Added at 12 Ok Reg 3285, eff 7-27-95; Amended at 18 Ok Reg 50, eff 10-3-00 (emergency); Amended at 18 Ok Reg 3152, eff 7-12-01; Amended at 19 Ok Reg 2729, eff 7-11-02

¹This emergency action expired before being superseded by a permanent action. Upon expiration of an emergency action enacting a new Section, the Section is no longer effective. Therefore, on 7-15-95 (after the 7-14-95 expiration of the emergency action), the text of section 715:10-5-7.2 was no longer effective, and remained as such until added by permanent action on 7-27-95.