Okla. Stat. tit. 11, § 11-49-100.1

As used in this article:

1. "System" means the Oklahoma Firefighters Pension and

Retirement System and all predecessor municipal firefighters pension

and retirement systems;

2. "Article" means Article 49 of this title;

3. "State Board" means the Oklahoma Firefighters Pension and

Retirement Board;

4. "Local board" means the local firefighters pension and

retirement boards;

5. "Fund" means the Oklahoma Firefighters Pension and

Retirement Fund;

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6. "Member" means all eligible firefighters of a participating

municipality or a fire protection district who perform the essential

functions of fire suppression, prevention, and life safety duties in

a fire department. The term "member" shall include but not be

limited to the person serving as fire chief of any participating

municipality, provided that a person serving as fire chief of a

participating municipality shall meet the age, agility, physical and

other eligibility requirements required by law at the time said

person becomes a member of the System. Effective July 1, 1987, a

member does not include a "leased employee". The term "leased

employee" means any person (other than an employee of the recipient)

who pursuant to an agreement between the recipient and any other

person ("leasing organization") has performed services for the

recipient (or for the recipient and related persons determined in

accordance with Section 414(n)(6) of the Internal Revenue Code of

1986, as amended) on a substantially full-time basis for a period of

at least one (1) year, and such services are performed under primary

direction or control by the recipient. Contributions or benefits

provided a leased employee by the leasing organization which are

attributable to services performed for the recipient employer shall

be treated as provided by the recipient employer. A leased employee

shall not be considered an employee of the recipient if the

requirements of the safe harbor provisions of Section 414(n)(5) of

the Internal Revenue Code of 1986, as amended, are satisfied.

Effective July 1, 1999, any individual who agrees with the

participating municipality that the individual's services are to be

performed as a leased employee or an independent contractor shall

not be a member regardless of any classification as a common law

employee by the Internal Revenue Service or any other governmental

agency, or any court of competent jurisdiction;

7. "Normal retirement date" means the date at which the member

is eligible to receive the unreduced payments of the member's

accrued retirement benefit. Such date shall be the first day

following the date the member completes twenty (20) years of

credited service. If the member's employment continues past the

normal retirement date of the member, the actual retirement date of

the member shall be the first day following the date the member

terminates employment with more than twenty (20) years of credited

service;

8. "Credited service" means the period of service used to

determine the eligibility for and the amount of benefits payable to

a member. Credited service shall consist of the period during which

the member participated in the System or the predecessor municipal

systems as an active employee in an eligible membership

classification, plus any service prior to the establishment of the

predecessor municipal systems which was credited under the

predecessor municipal systems; provided, however, "credited service"

Oklahoma Statutes - Title 11. Cities and Towns Page 513

for members from a fire protection district shall not begin accruing

before July 1, 1982;

9. "Participating municipality" means a municipality, county

fire department organized pursuant to subsection D of Section 351 of

Title 19 of the Oklahoma Statutes, or fire protection district which

is making contributions to the System on behalf of its firefighters.
Title 11. Cities and Towns Page 513

for members from a fire protection district shall not begin accruing

before July 1, 1982;

9. "Participating municipality" means a municipality, county

fire department organized pursuant to subsection D of Section 351 of

Title 19 of the Oklahoma Statutes, or fire protection district which

is making contributions to the System on behalf of its firefighters.

All participating municipalities shall appoint a fire chief who

shall supervise and administer the fire department;

10. "Disability" means the complete inability of the

firefighter to perform any and every duty of the firefighter's

regular occupation; provided further, that once benefits have been

paid for twenty-four (24) months the provisions of Section 49-110 of

this title shall apply to the firefighter;

11. "Executive Director" means the managing officer of the

System employed by the State Board;

12. "Eligible employer" means any municipality with a municipal

fire department, any county fire department organized pursuant to

subsection D of Section 351 of Title 19 of the Oklahoma Statutes or

any fire protection district with an organized fire department;

13. "Entry date" means the date as of which an eligible

employer joins the System. The first entry date pursuant to this

article shall be January 1, 1981;

14. "Final average salary" means the average paid gross salary

of the firefighter for normally scheduled hours over the highest

salaried thirty (30) consecutive months of the last sixty (60)

months of credited service. Gross salary shall not include payment

for accumulated sick or annual leave upon termination of employment,

any uniform allowances or any other compensation for reimbursement

of out-of-pocket expenses. Only salary on which the required

contributions have been made may be used in computing the final

average salary. Effective January 1, 1988, gross salary shall

include any amount of elective salary reduction under Section 125 of

the Internal Revenue Code of 1986, as amended. Gross salary shall

include any amount of elective salary reduction under Section 457 of

the Internal Revenue Code of 1986, as amended, and any amount of

nonelective salary reduction under Section 414(h) of the Internal

Revenue Code of 1986, as amended. Effective July 1, 1998, for

purposes of determining a member's compensation, any contribution by

the member to reduce the member's regular cash remuneration under

Section 132(f)(4) of the Internal Revenue Code of 1986, as amended,

shall be treated as if the member did not make such an election.

Only salary on which required contributions have been made may be

used in computing final average salary.

In addition to other applicable limitations, and notwithstanding

any other provision to the contrary, for plan years beginning on or

after July 1, 2002, the annual gross salary of each "Noneligible

Member" taken into account under the System shall not exceed the

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Economic Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA")

annual salary limit. The EGTRRA annual salary limit is Two Hundred

Thousand Dollars ($200,000.00), as adjusted by the Commissioner for

increases in the cost of living in accordance with Section

401(a)(17)(B) of the Internal Revenue Code of 1986, as amended. The

annual salary limit in effect for a calendar year applies to any

period, not exceeding twelve (12) months, over which salary is

determined ("determination period") beginning in such calendar year.

If a determination period consists of fewer than twelve (12) months,

the EGTRRA salary limit will be multiplied by a fraction, the

numerator of which is the number of months in the determination

period, and the denominator of which is twelve (12). For purposes

of this subsection, a "Noneligible Member" is any member who first

became a member during a plan year commencing on or after July 1,

1996.
determination period consists of fewer than twelve (12) months,

the EGTRRA salary limit will be multiplied by a fraction, the

numerator of which is the number of months in the determination

period, and the denominator of which is twelve (12). For purposes

of this subsection, a "Noneligible Member" is any member who first

became a member during a plan year commencing on or after July 1,

1996.

For plan years beginning on or after July 1, 2002, any reference

to the annual salary limit under Section 401(a)(17) of the Internal

Revenue Code of 1986, as amended, shall mean the EGTRRA salary limit

set forth in this subsection.

Effective June 9, 2010, gross salary shall also include gross

salary, as described above, for services, but paid by the later of

two and one-half (2 1/2) months after a firefighter's severance from

employment or the end of the calendar year that includes the date

the firefighter terminated employment, if it is a payment that,

absent a severance from employment, would have been paid to the

firefighter while the firefighter continued in employment with the

participating municipality.

Effective June 9, 2010, any payments not described above shall

not be considered gross salary if paid after severance from

employment, even if they are paid by the later of two and one-half

(2 1/2) months after the date of severance from employment or the

end of the calendar year that includes the date of severance from

employment, except payments to an individual who does not currently

perform services for the participating municipality by reason of

qualified military service within the meaning of Section 414(u)(5)

of the Internal Revenue Code of 1986, as amended, to the extent

these payments do not exceed the amounts the individual would have

received if the individual had continued to perform services for the

participating municipality rather than entering qualified military

service.

Effective June 9, 2010, back pay, within the meaning of Section

1.415(c)-2(g)(8) of the Income Tax Regulations, shall be treated as

gross salary for the year to which the back pay relates to the

extent the back pay represents wages and compensation that would

otherwise be included in this definition.

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Effective for years beginning after December 31, 2008, gross

salary shall also include differential wage payments under Section

414(u)(12) of the Internal Revenue Code of 1986, as amended;

15. "Accrued retirement benefit" means two and one-half percent

(2 1/2%) of the firefighter's final average salary multiplied by the

member's years of credited service not to exceed thirty (30) years;

16. "Beneficiary" means a member's surviving spouse or any

surviving children, including biological and adopted children, at

the time of the member's death. The surviving spouse must have been

married to the firefighter for the thirty (30) continuous months

preceding the firefighter's death provided a surviving spouse of a

member who died while in, or as a consequence of, the performance of

the member's duty for a participating municipality, shall not be

subject to the marriage limitation for survivor benefits. A

surviving child of a member shall be a beneficiary until reaching

eighteen (18) years of age or twenty-two (22) years of age if the

child is enrolled full time and regularly attending a public or

private school or any institution of higher education. Any child

adopted by a member after the member's retirement shall be a

beneficiary only if the child is adopted by the member for the

thirty (30) continuous months preceding the member's death. Any

child who is adopted by a member after the member's retirement and

such member dies accidentally or as a consequence of the performance

of the member's duty as a firefighter shall not be subject to the

thirty-month adoption requirement. This definition of beneficiary
beneficiary only if the child is adopted by the member for the

thirty (30) continuous months preceding the member's death. Any

child who is adopted by a member after the member's retirement and

such member dies accidentally or as a consequence of the performance

of the member's duty as a firefighter shall not be subject to the

thirty-month adoption requirement. This definition of beneficiary

shall be in addition to any other requirement set forth in this

article;

17. "Contributions" means payments remitted to the System

pursuant to Section 49-122 or subsection A of Section 49-138 of this

title. Contributions shall not include payments made to repurchase

credited service pursuant to Section 49-117.1 of this title,

payments made to transfer credited service from another retirement

system pursuant to subsection A of Section 49-117.2 or Section 49-

117.3 of this title, or payments made to purchase prior military

service credit pursuant to subsection E of Section 49-138 of this

title;

18. "Accumulated contributions" means the sum of all

contributions made by a member to the System and includes both

contributions deducted from the compensation of a member and

contributions of a member picked up and paid by the participating

municipality of the member. Accumulated contributions shall not

include any interest on the contributions of the member, interest on

any amount contributed by the municipality or state and any amount

contributed by the municipality or state; and

19. "Limitation year" means the year used in applying the

limitations of Section 415 of the Internal Revenue Code of 1986,

which year shall be the calendar year.

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