Okla. Stat. tit. 11, § 11-49-138.1

purchase price.

A. The State Board shall adopt rules or procedures for

computation of the purchase price for prior military service credit

provided for in subsection E of Section 49-138 of Title 11 of the

Oklahoma Statutes. 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 prior military service credit and the projected

benefit after purchase of the prior military service credit 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 adopted by the Board of Trustees for purposes

of preparing the annual actuarial evaluation.

B. A member wishing to purchase prior military service credit

must be 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 prior military service credit. Upon

application by an eligible member to purchase prior military service

credit, the State Board shall provide the member with a computation

of the purchase price for prior military service credit. 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 G 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 G of this section, the member

must reapply to purchase prior military service credit, a new

Oklahoma Statutes - Title 11. Cities and Towns Page 598

purchase price must be computed and provided to the member by the

State Board, and a new ninety-day period shall commence.

C. An active volunteer member may request to purchase volunteer

prior military service credit in accordance with the second, third,

and fourth sentences of subsection B of this section. A volunteer

member who purchases volunteer prior military service credit and

later becomes a paid member may purchase paid prior military service

credit in accordance with all of subsection B of this section,

including the requirement that the member be 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 prior

military service credit. Any amount paid to purchase volunteer

prior military service credit, excluding interest, shall reduce the

purchase price for the paid prior military service credit, and the

purchased volunteer prior military service credit shall be

disregarded.

D. Purchased prior military service credit shall be taken into

account only if payment is received prior to the commencement of

benefits, except as otherwise provided in subsection G of this

section.

E. 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 military service credit;

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

403(b) annuity or custodial account, an eligible deferred
n 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 military service credit;

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 military service

credit; or

3. Certified check.

A combination of payment methods described in paragraphs 1 through 3

of this subsection may be used.

F. Members amortizing the purchase price and making amortized

payments by payroll deduction on an after-tax basis, as described in

subsection G 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:

Oklahoma Statutes - Title 11. Cities and Towns Page 599

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 military service credit;

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 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 and IRAs, and Coverdell

Education Savings Accounts shall not be used to purchase military

service credit; or

3. Certified check.

A combination of payment methods described in paragraphs 1 through 3

of this subsection may be used.

G. 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 E 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 prior military service credit

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.

H. The State Board shall promulgate such rules or procedures as
ssor 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.

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

are necessary to implement the provisions of this section.