Okla. Stat. tit. 11, § 11-49-117.3

purchase price.

A. The State Board shall adopt rules or procedures for

computation of the purchase price for transferred credited service.

These rules or procedures shall base the purchase price for each

year purchased on the actuarial cost of the incremental projected

benefits to be purchased. The purchase price shall represent the

present value of the incremental projected benefits discounted

according to the member's age at the time of purchase. Incremental

projected benefits shall be the difference between the projected

benefit said member would receive without purchasing the transferred

credited service and the projected benefit after purchase of the

transferred credited service computed as of the earliest age at

which the member would be able to retire. Said computation shall

assume an unreduced benefit and be computed using interest and

mortality assumptions consistent with the actuarial assumptions

Oklahoma Statutes - Title 11. Cities and Towns Page 579

adopted by the Board of Trustees for purposes of preparing the

annual actuarial evaluation.

B. A member wishing to purchase transferred credited service

from another retirement system must be an active paid member at the

time of purchase and must have been an active paid member for a

minimum of thirty (30) months so as to establish an adequate salary

history for the computation of the purchase price of transferred

credited service. Upon application by an eligible member to

purchase transferred credited service, the State Board shall provide

the member with a computation of the purchase price for transferred

credited service. The computed purchase price shall be good for

ninety (90) days from the date the computed purchase price is

provided to the member and, except as otherwise provided in

subsection F of this section, must be paid within such ninety-day

period. After the expiration of the ninety-day period without

payment by the member, or payment commencing as provided in

subsection F of this section, the member must reapply to purchase

transferred credited service, a new purchase price must be computed

and provided to the member by the State Board, and a new ninety-day

period shall commence.

C. Transferred credited service shall be taken into account

only if payment is received prior to the commencement of benefits,

except as otherwise provided in subsection F of this section.

D. Members who pay the purchase price in cash by the due date

described in subsection B of this section may make payment by:

1. A trustee-to-trustee transfer of non-Roth funds from a Code

Section 403(b) annuity or custodial account, an eligible deferred

compensation plan described in Code Section 457(b) which is

maintained by an eligible employer described in Code Section

457(e)(1)(A), and/or a Code Section 401(a) qualified plan, provided

that after-tax funds in retirement plans shall not be used to

purchase transferred credited service;

2. A direct rollover of tax-deferred funds from a Code Section

403(b) annuity or custodial account, an eligible deferred

compensation plan described in Code Section 457(b) which is

maintained by an eligible employer described in Code Section

457(e)(1)(A), a Code Section 401(a) qualified plan, and/or a Code

Section 408(a) or 408(b) traditional or conduit Individual

Retirement Account or Annuity (IRA), provided that Roth accounts,

after-tax funds in retirement plans or IRAs, and Coverdell Education

Savings Accounts shall not be used to purchase transferred credited

service; or

3. Certified check.

A combination of payment methods described in paragraphs 1 through 3

of this subsection may be used.

The State Board shall promulgate such rules or procedures as are

necessary to implement the provisions of this subsection.

Oklahoma Statutes - Title 11. Cities and Towns Page 580

E. Members amortizing the purchase price and making amortized

payments by payroll deduction on an after-tax basis, pursuant to
n of payment methods described in paragraphs 1 through 3

of this subsection may be used.

The State Board shall promulgate such rules or procedures as are

necessary to implement the provisions of this subsection.

Oklahoma Statutes - Title 11. Cities and Towns Page 580

E. Members amortizing the purchase price and making amortized

payments by payroll deduction on an after-tax basis, pursuant to

subsection F of this section, shall have the option of making a cash

payment for the balance of the actuarial purchase price with

interest due through the date of payment by:

1. A trustee-to-trustee transfer of non-Roth funds from a Code

Section 403(b) annuity or custodial account, an eligible deferred

compensation plan described in Code Section 457(b) which is

maintained by an eligible employer described in Code Section

457(e)(1)(A), and/or a Code Section 401(a) qualified plan, provided

that after-tax funds in retirement plans shall not be used to

purchase transferred credited service;

2. A direct rollover of tax-deferred funds from a Code Section

403(b) annuity or custodial account, an eligible deferred

compensation plan described in Code Section 457(b) which is

maintained by an eligible employer described in Code Section

457(e)(1)(A), a Code Section 401(a) qualified plan, and/or a Code

Section 408(a) or 408(b) traditional or conduit Individual

Retirement Account or Annuity (IRA), provided that Roth accounts,

after-tax funds in retirement plans or IRAs, and Coverdell Education

Savings Accounts shall not be used to purchase transferred credited

service; or

3. Certified check.

A combination of payment methods described in paragraphs 1 through 3

of this subsection may be used.

F. In the event that the member does not pay the purchase price

provided for in this section by the due date established in

subsection B of this section as provided for in subsection D of this

section, the State Board may permit the member to amortize the

purchase price over a period not to exceed sixty (60) months or

other method approved by the State Board. Such amortized payments

shall be made by payroll deductions on an after-tax basis and shall

not be picked up by the member's employer. The amortized payments

shall include interest at a rate not to exceed the actuarially

assumed interest rate adopted by the State Board for investment

earnings each year. Any member who ceases to make payment,

terminates, retires or dies before completing the payments provided

for in this section shall receive transferred, credited service

prorated for only those payments made, not including interest,

unless the unpaid balance, including interest, is paid by the

member, the member's surviving spouse, the member's beneficiary, or

the member's estate or successor in interest within ninety (90) days

of the first to occur of said member's termination, retirement, or

death; provided that no retirement benefits shall be payable until

the earliest of the date the unpaid balance is paid in full or

ninety (90) days after the first to occur of the member's

termination, retirement, or death.

Oklahoma Statutes - Title 11. Cities and Towns Page 581

G. The State Board shall promulgate such rules or procedures as

are necessary to implement the provisions of this section.