Okla. Stat. tit. 11, § 11-49-106.1

A. In lieu of terminating employment and accepting a service

retirement pension pursuant to Sections 49-101 and 49-106 of this

title, any member of the Oklahoma Firefighters Pension and

Retirement System serving as an active firefighter in a fire

department of a participating municipality who has not less than

twenty (20) years of creditable service may elect to participate in

the Oklahoma Firefighters Deferred Option Plan and defer the

receipts of benefits in accordance with the provisions of this

section.

B. For purposes of this section, creditable service shall

include service credit reciprocally recognized pursuant to Sections

49-100.1 through 49-100.8 and Sections 49-101, 49-101.1 and 49-101.2

of this title but for eligibility purposes only.

C. The duration of participation in the Oklahoma Firefighters

Deferred Option Plan for active firefighters shall not exceed five

(5) years. Participation in the Oklahoma Firefighters Deferred

Option Plan must begin the first day of a month and end on the last

day of a month. At the conclusion of a member’s participation in

the Oklahoma Firefighters Deferred Option Plan, the member shall

terminate employment with all participating municipalities as a

firefighter, and shall start receiving the member’s accrued monthly

retirement benefit from the System. Such a member may be reemployed

by a participating municipality but only in a position not covered

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under the System, and receive in-service distributions of such

member’s accrued monthly retirement benefit from the System.

D. When a member begins participation in the Oklahoma

Firefighters Deferred Option Plan, the contribution of the member

shall cease. The employer contributions shall continue to be paid

in accordance with subsection B of Section 49-122 of this title.

Employer contributions for members who elect the Oklahoma

Firefighters Deferred Option Plan shall be credited equally to the

Oklahoma Firefighters Pension and Retirement System and to the

member’s Oklahoma Firefighters Deferred Option Plan account. The

monthly retirement benefits that would have been payable had the

member elected to cease employment and receive a service retirement

shall be paid into the member’s Oklahoma Firefighters Deferred

Option Plan account.

E. 1. A member who participates in this plan shall be eligible

to receive cost-of-living increases.

2. A member who participates in this plan shall earn interest

at a rate of two percentage points below the rate of return of the

investment portfolio of the System, but no less than the actuarial

assumed interest rate as certified by the actuary in the yearly

evaluation report of the actuary. The interest shall be credited to

the individual account balance of the member on an annual basis.

3. Effective November 1, 2013, the Oklahoma Firefighters

Deferred Option Plan account for a member whose first service with a

participating municipality of the System occurs on or after November

1, 2013, and who participates for the first time in the Oklahoma

Firefighters Deferred Option Plan on or after November 1, 2013, and

has completed active participation in the Oklahoma Firefighters

Deferred Option Plan, shall earn interest at a rate equal to the

actual rate of return of the investment portfolio of the System,

less one (1) percentage point to offset administrative costs of the

System as determined by the System.

F. A member in the plan shall receive, at the option of the

member, a lump-sum payment from the account equal to the payments to

the account or an annuity based upon the account of the member or

may elect any other method of payment if approved by the Board of

Trustees. If a member becomes so physically or mentally disabled

while in, or in consequence of, the performance of his or her duty

as to prevent the effective performance of his or her duties that
ber, a lump-sum payment from the account equal to the payments to

the account or an annuity based upon the account of the member or

may elect any other method of payment if approved by the Board of

Trustees. If a member becomes so physically or mentally disabled

while in, or in consequence of, the performance of his or her duty

as to prevent the effective performance of his or her duties that

the State Board approves an in-line-of-duty disability pension, the

payment from the account shall be an in-line-of-duty disability

payment. Notwithstanding any other provision contained herein to

the contrary, commencement of distributions under the Oklahoma

Firefighters Deferred Option Plan shall be no later than the time as

set forth in subsection B of Section 49-106 of this title and a

member whose first service with a participating municipality of the

System occurs on or after November 1, 2013, and who participates for

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the first time in the Oklahoma Firefighters Deferred Option Plan on

or after November 1, 2013, must receive a distribution of the entire

remaining balance in the member’s Oklahoma Firefighters Deferred

Option Plan account no later than April 1 of the calendar year

following the later of:

1. The calendar year in which the member reaches seventy and

one-half (70 1/2) years of age for a member who attains age seventy

and one-half (70 1/2) before January 1, 2020, or effective for

distributions required to be made after December 31, 2019, but

before January 1, 2023, the calendar year in which the member

reaches seventy-two (72) years of age for an individual who attains

age seventy and one-half (70 1/2) after December 31, 2019, or

effective for distributions required to be made after December 31,

2022, the calendar year in which the member reaches seventy-three

(73) years of age for an individual who attains age seventy-two (72)

after December 31, 2022, or “the applicable age”, as defined in

Section 401(a)(9)(C)(v) of the Internal Revenue Code of 1986, as

amended, if later; or

2. The actual retirement date of the member.

G. If a member dies while maintaining an account balance in the

plan the System shall pay to the designated recipient or recipients

of the member, or if there is no designated recipient or if the

designated recipient predeceases the member, to the spouse of the

member, or if there is no spouse or if the spouse predeceases the

member, to the estate of the member a lump-sum payment equal to the

account balance of the member. If such member was receiving, or

eligible to receive, an in-line-of-duty disability pension at the

time of his or her death, payment of the account balance shall be an

in-line-of-duty disability payment. If a designated recipient is

the surviving spouse of the member, the surviving spouse shall

receive his or her portion of the account balance of the member

pursuant to subsection F of this section. The surviving spouse,

whether or not he or she is a designated recipient of the member,

may elect to receive his or her portion of the account balance of

the member in the same manner as was applicable to the member.

H. In lieu of participating in the Oklahoma Firefighters

Deferred Option Plan pursuant to subsections A, B, C, D, E and F of

this section, a member may elect to participate in the Oklahoma

Firefighters Deferred Option Plan pursuant to this subsection as

follows:

1. For purposes of this subsection and subsection I of this

section, the following definitions shall apply:

a. “back drop date” means the member’s normal retirement

date or the date five (5) years before the member

elects to participate in the Oklahoma Firefighters

Deferred Option Plan, whichever date is later,

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b. “termination date” means the date the member elects to

participate in the Oklahoma Firefighters Deferred
definitions shall apply:

a. “back drop date” means the member’s normal retirement

date or the date five (5) years before the member

elects to participate in the Oklahoma Firefighters

Deferred Option Plan, whichever date is later,

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b. “termination date” means the date the member elects to

participate in the Oklahoma Firefighters Deferred

Option Plan pursuant to this subsection, and the date

the member terminates employment with all

participating municipalities as an active firefighter,

c. “earlier attained credited service” means the credited

service earned by a member as of the back drop date,

and

d. “deferred benefit balance” means all monthly

retirement benefits that would have been payable had

the member elected to cease employment on the back

drop date and receive a service retirement from the

back drop date to the termination date, all the

member’s contributions and one-half (1/2) of the

employer contributions from the back drop date to the

termination date, with interest based on how the

benefit would have accumulated on a compound annual

basis as if the member had participated in the

Oklahoma Firefighters Deferred Option Plan pursuant to

subsections A, B, C, D, E and F of this section from

the back drop date to the termination date; and

2. At the termination date, the monthly pension benefit shall

be determined based on earlier attained credited service and on the

final average salary as of the back drop date. The member’s

individual deferred option account shall be credited with an amount

equal to the deferred benefit balance, the member shall terminate

employment with all participating municipalities as a firefighter,

and shall start receiving the member’s accrued monthly retirement

benefit from the System. Such a member may be reemployed by a

participating municipality but only in a position not covered under

the System, and receive in-service distributions of such member’s

accrued monthly retirement benefit from the System. The provisions

of subsections B, C, E, F and G of this section shall apply to this

subsection. A member shall not participate in the Oklahoma

Firefighters Deferred Option Plan pursuant to this subsection if the

member has elected to participate in the Oklahoma Firefighters

Deferred Option Plan pursuant to subsections A, B, C, D, E and F of

this section.

I. Certain surviving spouses and members shall be eligible to

participate in the Oklahoma Firefighters Deferred Option Plan

pursuant to subsection H of this section and this subsection.

1. For purposes of this subsection, the following definitions

shall apply:

a. “back drop election date” means the date the surviving

spouse or member elects to commence participation in

the Oklahoma Firefighters Deferred Option Plan

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pursuant to subsection H of this section and this

subsection,

b. “interest” means the actuarial assumed interest rate

as certified by the actuary in the yearly evaluation

report of the actuary,

c. “monthly adjustment amount” means the difference

between the monthly pension prior to the back drop

election and the adjusted monthly pension due to the

back drop election,

d. “back drop pension adjustment amount” means the sum of

all the monthly adjustment amounts adjusted for

interest from the pension commencement date to the

back drop election date, and

e. “deferred benefit balance adjustment amount” means the

interest on the deferred benefit balance from the

pension commencement date to the back drop election

date.

2. If a member who has more than twenty (20) years of

creditable service and is eligible to receive a service retirement

pension dies on or after June 4, 2007, and prior to terminating

employment, the member’s surviving spouse shall be eligible to elect

to receive a benefit determined as if the member had elected to
balance from the

pension commencement date to the back drop election

date.

2. If a member who has more than twenty (20) years of

creditable service and is eligible to receive a service retirement

pension dies on or after June 4, 2007, and prior to terminating

employment, the member’s surviving spouse shall be eligible to elect

to receive a benefit determined as if the member had elected to

participate in the Oklahoma Firefighters Deferred Option Plan in

accordance with subsection H of this section on the day immediately

preceding such member’s death. Prior to July 1, 2010, the surviving

spouse must make any such election within one (1) year from the date

of the member’s death. Effective July 1, 2010, the surviving spouse

must make any such election within ninety (90) days from the date of

the member’s death. If on or after June 4, 2007, such election is

made, the monthly pension such surviving spouse is entitled to

receive shall be adjusted in accordance with the provisions of

subsection H of this section to account for the member’s

participation in the Oklahoma Firefighters Deferred Option Plan.

The surviving spouse may only make this election if the member has

not previously elected to participate in the Oklahoma Firefighters

Deferred Option Plan. For purposes of this election, the surviving

spouse must have been married to the firefighter for the thirty (30)

continuous months preceding the firefighter’s death; provided, the

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

this election.

3. If a member has more than twenty (20) years of creditable

service and is eligible for a retirement for disability monthly

pension pursuant to Section 49-109 of this title on or after June 4,

2007, such member shall be eligible to elect to receive a benefit

determined as if the member had elected to participate in the

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Oklahoma Firefighters Deferred Option Plan, in accordance with

subsection H of this section, on the day immediately preceding the

date of the member’s disability retirement, provided such election

is made within two (2) years from the date of the member’s

disability retirement. The disability monthly pension such member

is receiving, or entitled to receive, shall be adjusted in

accordance with the provisions of subsection H of this section to

account for the member’s participation in the Oklahoma Firefighters

Deferred Option Plan. The deferred benefit balance such member is

entitled to receive shall be reduced by the back drop pension

adjustment amount and increased by the deferred benefit balance

adjustment amount. The member may only make a back drop election if

the deferred benefit balance after the adjustment described in this

paragraph is greater than Zero Dollars ($0.00). The member may only

make this election if the member has not previously elected to

participate in the Oklahoma Firefighters Deferred Option Plan.

4. If a member has more than twenty (20) years of creditable

service and filed a grievance for wrongful termination occurring on

or after June 4, 2007, or is not a member of a collective bargaining

organization as a firefighter, is involuntarily terminated and is

seeking to have his or her position as a firefighter reinstated

through a legal process, but is not reinstated as an active member,

such member shall be eligible to elect to receive a benefit

determined as if the member had elected to participate in the

Oklahoma Firefighters Deferred Option Plan in accordance with

subsection H of this section on the day immediately preceding the

date of the member’s termination. Such election must be made within

two (2) years from the date of the member’s termination as an active

member and, if the member’s case pertaining to the member’s
benefit

determined as if the member had elected to participate in the

Oklahoma Firefighters Deferred Option Plan in accordance with

subsection H of this section on the day immediately preceding the

date of the member’s termination. Such election must be made within

two (2) years from the date of the member’s termination as an active

member and, if the member’s case pertaining to the member’s

termination is on appeal to a court of competent jurisdiction,

within such period set by the State Board in its sole discretion.

The monthly pension such member is receiving, or entitled to

receive, shall be adjusted in accordance with the provisions of

subsection H of this section to account for the member’s

participation in the Oklahoma Firefighters Deferred Option Plan.

The deferred benefit balance such member is entitled to receive

shall be reduced by the back drop pension adjustment amount and

increased by the deferred benefit balance adjustment amount. The

member may only make a back drop election if the deferred benefit

balance after the adjustment described in this paragraph is greater

than Zero Dollars ($0.00). The member may only make this election

if the member has not previously elected to participate in the

Oklahoma Firefighters Deferred Option Plan.

5. Subparagraphs d and e of paragraph 1 and paragraphs 3 and 4

of this subsection are effective June 4, 2007, provided the Internal

Revenue Service issues a favorable determination letter for the

System which includes the provisions of such subparagraphs and

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paragraphs without modification or as modified to conform to any

changes required by the Internal Revenue Service as part of its

determination letter review process. In the event the Internal

Revenue Service does not issue such a determination letter which

includes the provisions of such subparagraphs or paragraphs without

modification or as modified to conform to any changes required by

the Internal Revenue Service as part of its determination letter

review process, then subparagraphs d and e of paragraph 1 and

paragraphs 3 and 4 of this subsection shall be repealed effective

June 4, 2007.