Okla. Stat. tit. 11, § 11-50-101

As used in this article:

1. “System” means the Oklahoma Police Pension and Retirement

System and all predecessor municipal police pension and retirement

systems;

2. “Article” means Article 50 of this title;

3. “State Board” means the Oklahoma Police Pension and

Retirement Board;

4. “Fund” means the Oklahoma Police Pension and Retirement

Fund;

5. “Officer” means any duly appointed and sworn full-time

officer of the regular police department of a municipality whose

duties are to preserve the public peace, protect life and property,

prevent crime, serve warrants, enforce all laws and municipal

ordinances of this state, and any political subdivision thereof, and

who is authorized to bear arms in the execution of such duties;

6. “Member” means all eligible officers of a participating

municipality and any person hired by a participating municipality

who is undergoing police training to become a permanent police

officer of the municipality. Effective July 1, 1987, a member does

not include a “leased employee” as defined under Section 414(n)(2)

of the Internal Revenue Code of 1986, as amended. 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. A member shall include eligible

commissioned officers of the Oklahoma State Bureau of Narcotics and

Dangerous Drugs Control, the Oklahoma State Bureau of Investigation,

and the Alcoholic Beverage Laws Enforcement Commission who elect to

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participate in the System pursuant to Section 50-111.5 of this

title;

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 of the

month coinciding with or 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 of the month

after 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 or credited service granted by the

State Board;

9. “Participating municipality” means a municipality which is

making contributions to the System on behalf of its officers. The

Oklahoma State Bureau of Narcotics and Dangerous Drugs Control, the

Oklahoma State Bureau of Investigation, and the Alcoholic Beverage

Laws Enforcement Commission shall be treated in the same manner as a

participating municipality only regarding those members who elect to

participate in the System pursuant to Section 50-111.5 of this

title;

10. “Permanent total disability” means incapacity due to

accidental injury or occupational disease to earn any wages in the

employment for which the member is physically suited and reasonably

fitted through education, training or experience. Further, the

member must be declared one hundred percent (100%) impaired as

defined by the American Medical Association Guides to the Evaluation

of Permanent Impairment on the basis of a physical medical

examination by a physician licensed to practice medicine in this

state, as selected by the State Board;
is physically suited and reasonably

fitted through education, training or experience. Further, the

member must be declared one hundred percent (100%) impaired as

defined by the American Medical Association Guides to the Evaluation

of Permanent Impairment on the basis of a physical medical

examination by a physician licensed to practice medicine in this

state, as selected by the State Board;

11. “Permanent partial disability” means permanent disability

which is less than permanent total disability as defined in this

section. The member must be declared no greater than ninety-nine

percent (99%) impaired as defined by the American Medical

Association Guides to the Evaluation of Permanent Impairment on the

basis of a physical medical examination by a physician licensed to

practice medicine in this state, as selected by the State Board;

12. “Permanent in-line disability” means when a police officer

serving in any capacity at a regular police department of a

participating municipality becomes so physically or mentally

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disabled, as determined by an independent medical examiner,

psychiatrist, or psychologist selected by the State Board, while in,

and in consequence of, the performance of authorizing activities

while on duty as an officer that he or she is unable to perform the

required duties of a police officer;

13. “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 member for the thirty (30) continuous months

immediately preceding the member’s death, provided a surviving

spouse of a member who died while in, and as a consequence of, the

performance of the member’s duty for a participating municipality,

shall not be subject to the thirty-month marriage requirement 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 police

officer 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;

14. “Executive Director” means the managing officer of the

System employed by the State Board;

15. “Eligible employer” means any municipality with a municipal

police department;

16. “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;

17. “Final average salary” means the average paid base salary

of the member for normally scheduled hours over the highest salaried

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

credited service. Effective July 1, 2016, the following shall apply

in computing final average salary:

a. only paid base salary on which required contributions

have been made shall be used in computing a member’s

final average salary,

b. for purposes of determining the normal disability

benefit only, final average salary shall be based on

the member’s total service if less than thirty (30)

months,

c. in addition to other applicable limitations, and

notwithstanding any other provision to the contrary,

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for plan years beginning on or after July 1, 2002, the

annual compensation of each noneligible member taken
disability

benefit only, final average salary shall be based on

the member’s total service if less than thirty (30)

months,

c. in addition to other applicable limitations, and

notwithstanding any other provision to the contrary,

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for plan years beginning on or after July 1, 2002, the

annual compensation of each noneligible member taken

into account under the System shall not exceed the

Economic Growth and Tax Relief Reconciliation Act of

2001 (EGTRRA) annual compensation limit. The EGTRRA

annual compensation 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 compensation limit in

effect for a calendar year applies to any period, not

exceeding twelve (12) months, over which compensation

is determined (“determination period”) beginning in

such calendar year. If a determination period

consists of fewer than twelve (12) months, the EGTRRA

annual compensation 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 section, a noneligible member is any member who

first became a member during a plan year commencing on

or after July 1, 1996,

d. for plan years beginning on or after July 1, 2002, any

reference in the System to the annual compensation

limit under Section 401(a)(17) of the Internal Revenue

Code of 1986, as amended, shall mean the EGTRRA annual

compensation limit set forth in this provision, and

e. effective January 1, 2008, back pay, within the

meaning of Section 1.415(c)-2(g)(8) of the Income Tax

Regulations, shall be treated as paid base salary for

the limitation 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;

18. “Accrued retirement benefit” means, for benefits computed

prior to the effective date of this act, two and one-half percent (2

1/2%) of the member’s final average salary multiplied by the

member’s years of credited service not to exceed thirty (30) years.

For a member who retires on or after the effective date of this

act, accrued retirement benefit shall mean:

a. for members who retire and terminate employment at

least one (1) year after the effective date of this

act, and have at least twenty-five (25) years of

credited service, three percent (3%) of the member’s

final average salary multiplied by the member’s years

of credited service, not to exceed thirty (30) years,

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b. for members who retire and terminate employment at

least two (2) years after the effective date of this

act, and have at least twenty (20) years of credited

service, three percent (3%) of the member’s final

average salary multiplied by the member’s years of

credited service, not to exceed thirty (30) years,

c. for members who retire and terminate employment at

least five (5) years after the effective date of this

act, three percent (3%) of the member’s final average

salary multiplied by the member’s years of credited

service, not to exceed thirty (30) years, and

d. for members who retire and terminate employment on or

after the effective date of this act, but do not have

the minimum years of credited service to qualify for

the benefit outlined in subparagraphs a and b of this

paragraph, or retire and terminate employment prior to

the date outlined in subparagraph c of this paragraph,

two and one-half percent (2 1/2%) of the member’s

final average salary multiplied by the member’s years

of credited service, not to exceed thirty (30) years;

19. “Normal disability benefit” means:

a. for benefits computed prior to the effective date of

this act, the greater of:
his

paragraph, or retire and terminate employment prior to

the date outlined in subparagraph c of this paragraph,

two and one-half percent (2 1/2%) of the member’s

final average salary multiplied by the member’s years

of credited service, not to exceed thirty (30) years;

19. “Normal disability benefit” means:

a. for benefits computed prior to the effective date of

this act, the greater of:

(1) two and one-half percent (2 1/2%) of the member’s

final average salary multiplied by twenty (20)

years, notwithstanding the years of actual

credited service, or

(2) two and one-half percent (2 1/2%) of the member’s

final average salary multiplied by the years of

credited service of the member, not to exceed

thirty (30) years, if the officer has more than

twenty (20) years of credited service,

b. for benefits computed on or after the effective date

of this act, the greater of:

(1) three percent (3%) of the member’s final average

salary multiplied by twenty (20) years,

notwithstanding the years of actual credited

service, or

(2) three percent (3%) of the member’s final average

salary multiplied by the years of credited

service of the member, not to exceed thirty (30)

years, if the officer has more than twenty (20)

years of credited service;

20. “Limitation year” means the year used in applying the

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

amended, which year shall be the calendar year;

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21. “Paid base salary” means, effective July 1, 2016, any

compensation described in subparagraph a of this paragraph that is

not described in subparagraph b of this paragraph.

a. Paid base salary shall include only:

(1) normal compensation paid on a regularly scheduled

pay period including, but not limited to, regular

pay for holidays, paid time off, vacation or

annual leave, sick leave or compensatory time in

lieu of overtime, any lump sum payment paid in

lieu of a normal wage increase, provided such

lump sum payment is retroactively applied over

the prior twelve-month period ending with the

payment date, compensation for bomb squad pay,

education pay, incentive pay, K-9 pay,

negotiation pay, shift differential, sniper pay,

SWAT team pay, emergency response team pay, any

other special unit pay, and any incremental

increase in compensation which is not included by

the employer in a member’s regular base pay for

salary increase purposes but is paid by the

employer to the member for group health benefits

based on an arrangement with a participating

municipality that was in place on December 31,

2015, so long as the arrangement continues

uninterrupted for a member employed by a

participating municipality on June 30, 2016, who

has not since terminated employment and been

rehired by such participating municipality,

(2) any amount of elective salary reduction under

Section 125 of the Internal Revenue Code of 1986,

as amended, that would have been treated as paid

base salary but for the salary deferral reduction

agreement,

(3) any amount of elective salary reduction not

includable in the gross income of the member

under Section 132(f)(4) of the Internal Revenue

Code of 1986, as amended, that would have been

treated as paid base salary but for the salary

deferral reduction agreement,

(4) any amount of elective salary reduction under

Section 457 of the Internal Revenue Code of 1986,

as amended, that would have been treated as paid

base salary but for the salary deferral reduction

agreement,

(5) any amount of elective salary reduction under

Section 401(k) of the Internal Revenue Code of

1986, as amended, that would have been treated as

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paid base salary but for the salary deferral

reduction agreement,

(6) any amount of nonelective salary reduction under

Section 414(h) of the Internal Revenue Code of

1986, as amended,
ent,

(5) any amount of elective salary reduction under

Section 401(k) of the Internal Revenue Code of

1986, as amended, that would have been treated as

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paid base salary but for the salary deferral

reduction agreement,

(6) any amount of nonelective salary reduction under

Section 414(h) of the Internal Revenue Code of

1986, as amended,

(7) educational allowances paid to obtain training

certification or pursue an advanced degree,

(8) longevity payments made to members based upon a

standardized plan which recognizes length of

service to the participating municipality,

(9) paid base salary shall also include base salary,

as described in divisions (1) through (8) of this

subparagraph, for services, but paid by the later

of two and one-half (2 1/2) months after a

member’s severance from employment or the end of

the calendar year that includes the date the

member terminated employment, if it is a payment

that, absent a severance from employment, would

have been paid to the member while the member

continued in employment with the participating

municipality,

(10) any payments not described in divisions (1)

through (9) of this subparagraph shall not be

considered paid base 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,

(11) back pay, within the meaning of Section 1.415(c)-

2(g)(8) of the Income Tax Regulations, shall be

treated as paid base salary for the limitation

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, and

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(12) paid base salary shall also include differential

wage payments under Section 414(u)(12) of the

Internal Revenue Code of 1986, as amended.

b. Notwithstanding anything to the contrary in this

section, paid base salary shall not include any:

(1) fringe benefits, reimbursements, or increases in

compensation due to reimbursements to the extent

not specifically included above in subparagraph a

of this paragraph,

(2) incremental increase in compensation which is not

included by the employer in a member’s regular

base pay for salary increase purposes but is paid

by the employer to the member for group health

benefits not otherwise included above in division

(1) of subparagraph a of this paragraph,

(3) insurance benefits, including any reimbursements

thereof, or insurance proceeds of any type not

otherwise included above in division (1) of

subparagraph a of this paragraph,

(4) bonuses, including signing bonuses, lump-sum

payments or stipends made to the member not

otherwise included above in division (1) of

subparagraph a of this paragraph,

(5) overtime compensation,

(6) payments whether prior to or upon termination of

employment for accumulated unused vacation or

unused annual leave, accumulated unused sick

leave, or accumulated unused paid time off or

other unused leave,

(7) payments made in error to a member,

(8) payments made by the participating municipality

for services rendered by the member, which

services are not part of the member’s job duties

and responsibilities of his or her job position

with the participating municipality,

(9) severance pay,
annual leave, accumulated unused sick

leave, or accumulated unused paid time off or

other unused leave,

(7) payments made in error to a member,

(8) payments made by the participating municipality

for services rendered by the member, which

services are not part of the member’s job duties

and responsibilities of his or her job position

with the participating municipality,

(9) severance pay,

(10) unemployment payments, and

(11) uniform and equipment allowances; and

22. “Actuarial equivalent” means equality in value of the

aggregate amounts expected to be received based on interest rate and

mortality assumptions set by the State Board, in a manner that

precludes employer discretion, and based upon recommendations from

independent professional advisors, and which shall be published

annually in the actuarial report.