Okla. Stat. tit. 11, § 11-50-114.1

qualified plans of the Internal Revenue Code of 1986.

A. For limitation years prior to July 1, 2007, the limitations

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

shall be computed in accordance with the applicable provisions of

the System in effect at that time and, to the extent applicable,

Revenue Ruling 98-1 and Revenue Ruling 2001-51, except as provided

below. Notwithstanding any other provision contained herein to the

contrary, the benefits payable to a member from the System provided

by employer contributions (including contributions picked up by the

employer under Section 414(h) of the Internal Revenue Code of 1986,

as amended) shall be subject to the limitations of Section 415 of

the Internal Revenue Code of 1986, as amended, in accordance with

the provisions of this section and subsequent guidance. The

limitations of this section shall apply in limitation years

beginning on or after July 1, 2007, except as otherwise provided

below.

B. Except as provided below, effective for limitation years

ending after December 31, 2001, any accrued retirement benefit

payable to a member as an annual benefit as described below shall

not exceed One Hundred Sixty Thousand Dollars ($160,000.00),

automatically adjusted under Section 415(d) of the Internal Revenue

Code of 1986, as amended, for increases in the cost of living, as

prescribed by the Secretary of the Treasury or the Secretary's

delegate, effective January 1 of each calendar year and applicable

to the limitation year ending with or within such calendar year.

The automatic annual adjustment of the dollar limitation in this

subsection under Section 415(d) of the Internal Revenue Code of

1986, as amended, shall apply to a member who has had a severance

from employment.

1. The member's annual benefit is a benefit that is payable

annually in the form of a straight life annuity. Except as provided

below, where a benefit is payable in a form other than a straight

life annuity, the benefit shall be adjusted to an actuarially

equivalent straight life annuity that begins at the same time as

such other form of benefit and is payable on the first day of each

month, before applying the limitations of this section. For a

member who has or will have distributions commencing at more than

one annuity starting date, the annual benefit shall be determined as

of each such annuity starting date (and shall satisfy the

limitations of this section as of each such date), actuarially

Oklahoma Statutes - Title 11. Cities and Towns Page 647

adjusting for past and future distributions of benefits commencing

at the other annuity starting dates. For this purpose, the

determination of whether a new starting date has occurred shall be

made without regard to Section 1.401(a)-20, Q&A 10(d), and with

regard to Section 1.415(b)-1(b)(1)(iii)(B) and (C) of the Income Tax

Regulations.

2. No actuarial adjustment to the benefit shall be made for:

a. survivor benefits payable to a surviving spouse under

a qualified joint and survivor annuity to the extent

such benefits would not be payable if the member's

benefit were paid in another form,

b. benefits that are not directly related to retirement

benefits (such as a qualified disability benefit,

preretirement incidental death benefits, and

postretirement medical benefits), or

c. the inclusion in the form of benefit of an automatic

benefit increase feature, provided the form of benefit

is not subject to Section 417(e)(3) of the Internal

Revenue Code of 1986, as amended, and would otherwise

satisfy the limitations of this section, and the

System provides that the amount payable under the form

of benefit in any limitation year shall not exceed the

limits of this section applicable at the annuity

starting date, as increased in subsequent years

pursuant to Section 415(d) of the Internal Revenue

Code of 1986, as amended. For this purpose, an
f 1986, as amended, and would otherwise

satisfy the limitations of this section, and the

System provides that the amount payable under the form

of benefit in any limitation year shall not exceed the

limits of this section applicable at the annuity

starting date, as increased in subsequent years

pursuant to Section 415(d) of the Internal Revenue

Code of 1986, as amended. For this purpose, an

automatic benefit increase feature is included in a

form of benefit if the form of benefit provides for

automatic, periodic increases to the benefits paid in

that form.

3. The determination of the annual benefit shall take into

account Social Security supplements described in Section 411(a)(9)

of the Internal Revenue Code of 1986, as amended, and benefits

transferred from another defined benefit plan, other than transfers

of distributable benefits pursuant to Section 1.411(d)-4, Q&A-3(c),

of the Income Tax Regulations, but shall disregard benefits

attributable to employee contributions or rollover contributions.

4. Effective for distributions in plan years beginning after

December 31, 2003, the determination of actuarial equivalence of

forms of benefit other than a straight life annuity shall be made in

accordance with paragraph 5 or paragraph 6 of this subsection.

5. Benefit Forms Not Subject to Section 417(e)(3) of the

Internal Revenue Code of 1986, as amended: The straight life

annuity that is actuarially equivalent to the member's form of

benefit shall be determined under this paragraph 5 if the form of

the member's benefit is either:

Oklahoma Statutes - Title 11. Cities and Towns Page 648

a. a nondecreasing annuity (other than a straight life

annuity) payable for a period of not less than the

life of the member (or, in the case of a qualified

preretirement survivor annuity, the life of the

surviving spouse), or

b. an annuity that decreases during the life of the

member merely because of:

(1) the death of the survivor annuitant (but only if

the reduction is not below fifty percent (50%) of

the benefit payable before the death of the

survivor annuitant), or

(2) the cessation or reduction of Social Security

supplements or qualified disability payments (as

defined in Section 411(a)(9) of the Internal

Revenue Code of 1986, as amended).

c. Limitation Years Beginning Before July 1, 2007. For

limitation years beginning before July 1, 2007, the

actuarially equivalent straight life annuity is equal

to the annual amount of the straight life annuity

commencing at the same annuity starting date that has

the same actuarial present value as the member's form

of benefit computed using whichever of the following

produces the greater annual amount:

(1) the interest rate and the mortality table (or

other tabular factor), each as set forth in

subsection G of Section 50-105.4 of this title

for adjusting benefits in the same form, and

(2) a five percent (5%) interest rate assumption and

the applicable mortality table described in Rev.

Rul. 2001-62 (or its successor for these

purposes, if applicable) for that annuity

starting date.

d. Limitation Year Beginning On January 1, 2008. For the

limitation year beginning on January 1, 2008, the

actuarially equivalent straight life annuity is equal

to the greater of:

(1) the annual amount of the straight life annuity

(if any) payable to the member under the System

commencing at the same annuity starting date as

the member's form of benefit, and
or that annuity

starting date.

d. Limitation Year Beginning On January 1, 2008. For the

limitation year beginning on January 1, 2008, the

actuarially equivalent straight life annuity is equal

to the greater of:

(1) the annual amount of the straight life annuity

(if any) payable to the member under the System

commencing at the same annuity starting date as

the member's form of benefit, and

(2) the annual amount of the straight life annuity

commencing at the same annuity starting date that

has the same actuarial present value as the

member's form of benefit, computed using a five

percent (5%) interest rate assumption and the

applicable mortality table described in Rev. Rul.

Oklahoma Statutes - Title 11. Cities and Towns Page 649

2001-62 (or its successor for these purposes, if

applicable) for that annuity starting date.

e. Limitation Years Beginning On or After July 1, 2008.

For limitation years beginning on or after July 1,

2008, the actuarially equivalent straight life annuity

is equal to the greater of:

(1) the annual amount of the straight life annuity

(if any) payable to the member under the System

commencing at the same annuity starting date as

the member's form of benefit, and

(2) the annual amount of the straight life annuity

commencing at the same annuity starting date that

has the same actuarial present value as the

member's form of benefit, computed using a five

percent (5%) interest rate assumption and the

applicable mortality table within the meaning of

Section 417(e)(3)(B) of the Internal Revenue Code

of 1986, as amended, as described in Rev. Rul.

2007-67 (and subsequent guidance) for that

annuity starting date.

6. Benefit Forms Subject to Section 417(e)(3) of the Internal

Revenue Code of 1986, as amended: The straight life annuity that is

actuarially equivalent to the member's form of benefit shall be

determined under this paragraph 6 if the form of the member's

benefit is other than a benefit form described in paragraph 5 of

this subsection. In this case, the actuarially equivalent straight

life annuity shall be determined as follows:

a. Annuity Starting Date on or after January 1, 2009. If

the annuity starting date of the member's form of

benefit is in the period beginning on January 1, 2009,

through June 30, 2009, or in a plan year beginning

after June 30, 2009, the actuarially equivalent

straight life annuity is equal to the greatest of (1),

(2) and (3) below:

(1) the annual amount of the straight life annuity

commencing at the same annuity starting date that

has the same actuarial present value as the

member's form of benefit, computed using the

interest rate and the mortality table (or other

tabular factor) as set forth in the most recent

actuarial valuation referenced in subsection G of

Section 50-105.4 of this title prior to September

1, 2011, and effective September 1, 2011, in

paragraph 22 of Section 50-101 of this title, for

adjusting benefits in the same form,

(2) the annual amount of the straight life annuity

commencing at the same annuity starting date that

Oklahoma Statutes - Title 11. Cities and Towns Page 650

has the same actuarial present value as the

member's form of benefit, computed using a five

and one-half percent (5.5%) interest rate

assumption and the applicable mortality table

within the meaning of Section 417(e)(3)(B) of the

Internal Revenue Code of 1986, as amended, as

described in Rev. Rul. 2007-67 (and subsequent

guidance), and

(3) the annual amount of the straight life annuity

commencing at the same annuity starting date that

has the same actuarial present value as the

member's form of benefit, computed using:
assumption and the applicable mortality table

within the meaning of Section 417(e)(3)(B) of the

Internal Revenue Code of 1986, as amended, as

described in Rev. Rul. 2007-67 (and subsequent

guidance), and

(3) the annual amount of the straight life annuity

commencing at the same annuity starting date that

has the same actuarial present value as the

member's form of benefit, computed using:

(a) the applicable interest rate under Section

417(e)(3) of the Internal Revenue Code of

1986, as amended, (and subsequent guidance),

for the fourth calendar month preceding the

plan year in which falls the annuity

starting date for the distribution and the

stability period is the successive period of

one (1) plan year which contains the annuity

starting date for the distribution and for

which the applicable interest rate remains

constant, or as otherwise provided in the

applicable guidance if the first day of the

first plan year beginning after December 31,

2007, does not coincide with the first day

of the applicable stability period, and

(b) the applicable mortality table within the

meaning of Section 417(e)(3)(B) of the

Internal Revenue Code of 1986, as amended,

as described in Rev. Rul. 2007-67 (and

subsequent guidance),

divided by one and five one-hundredths (1.05).

b. Annuity Starting Date in the Period Beginning on July

1, 2008 through December 31, 2008. If the annuity

starting date of the member's form of benefit is in

the period beginning on July 1, 2008, through December

31, 2008, the actuarially equivalent straight life

annuity is equal to the greatest of (1), (2) and (3)

below:

(1) the annual amount of the straight life annuity

commencing at the same annuity starting date that

has the same actuarial present value as the

member's form of benefit, computed using the

interest rate and the mortality table (or other

tabular factor) each as set forth in subsection G

Oklahoma Statutes - Title 11. Cities and Towns Page 651

of Section 50-105.4 of this title for adjusting

benefits in the same form,

(2) the annual amount of the straight life annuity

commencing at the same annuity starting date that

has the same actuarial present value as the

member's form of benefit, computed using a five

and one-half percent (5.5%) interest rate

assumption and the applicable mortality table

described in Rev. Rul. 2001-62 (or its successor

for these purposes, if applicable), and

(3) the annual amount of the straight life annuity

commencing at the same annuity starting date that

has the same actuarial present value as the

member's form of benefit, computed using:

(a) the adjusted first, second, and third

segment rates under Section 417(e)(3)(C) and

(D) of the Internal Revenue Code of 1986, as

amended, applied under rules similar to the

rules of Section 430(h)(2)(C) of the

Internal Revenue Code of 1986, as amended,

for the fourth calendar month preceding the

plan year in which falls the annuity

starting date for the distribution and the

stability period is the successive period of

one (1) plan year which contains the annuity

starting date for the distribution and for

which the applicable interest rate remains

constant, or as otherwise provided in the

applicable guidance if the first day of the

first plan year beginning after December 31,

2007, does not coincide with the first day

of the applicable stability period, and
e

stability period is the successive period of

one (1) plan year which contains the annuity

starting date for the distribution and for

which the applicable interest rate remains

constant, or as otherwise provided in the

applicable guidance if the first day of the

first plan year beginning after December 31,

2007, does not coincide with the first day

of the applicable stability period, and

(b) the applicable mortality table described in

Rev. Rul. 2001-62 (or its successor for

these purposes, if applicable),

divided by one and five one-hundredths (1.05).

c. Annuity Starting Date in Plan Years Beginning in 2006

or 2007. If the annuity starting date of the member's

form of benefit is in a Plan Year beginning in 2006 or

2007, the actuarially equivalent straight life annuity

is equal to the greatest of (1), (2) and (3) below:

(1) the annual amount of the straight life annuity

commencing at the same annuity starting date that

has the same actuarial present value as the

member's form of benefit, computed using the

interest rate and the mortality table (or other

tabular factor) each as set forth in subsection G

Oklahoma Statutes - Title 11. Cities and Towns Page 652

of Section 50-105.4 of this title for adjusting

benefits in the same form,

(2) the annual amount of the straight life annuity

commencing at the same annuity starting date that

has the same actuarial present value as the

member's form of benefit, computed using a five

and one-half percent (5.5%) interest rate

assumption and the applicable mortality table

described in Rev. Rul. 2001-62 (or its successor

for these purposes, if applicable), and

(3) the annual amount of the straight life annuity

commencing at the same annuity starting date that

has the same actuarial present value as the

member's form of benefit, computed using:

(a) the rate of interest on thirty-year Treasury

securities as specified by the Commissioner

for the lookback month for the stability

period specified below. The lookback month

applicable to the stability period is the

fourth calendar month preceding the first

day of the stability period, as specified

below. The stability period is the

successive period of one (1) plan year which

contains the annuity starting date for the

distribution and for which the applicable

interest rate remains constant, and

(b) the applicable mortality table described in

Rev. Rul. 2001-62 (or its successor for

these purposes, if applicable),

divided by one and five one-hundredths (1.05).

d. Annuity Starting Date in Plan Years Beginning in 2004

or 2005:

(1) If the annuity starting date of the member's form

of benefit is in a plan year beginning in 2004 or

2005, the actuarially equivalent straight life

annuity is equal to the annual amount of the

straight life annuity commencing at the same

annuity starting date that has the same actuarial

present value as the member's form of benefit,

computed using whichever of the following

produces the greater annual amount:

(a) the interest rate and the mortality table

(or other tabular factor) each as set forth

in subsection G of Section 50-105.4 of this

title for adjusting benefits in the same

form, and

Oklahoma Statutes - Title 11. Cities and Towns Page 653
at has the same actuarial

present value as the member's form of benefit,

computed using whichever of the following

produces the greater annual amount:

(a) the interest rate and the mortality table

(or other tabular factor) each as set forth

in subsection G of Section 50-105.4 of this

title for adjusting benefits in the same

form, and

Oklahoma Statutes - Title 11. Cities and Towns Page 653

(b) a five and one-half percent (5.5%) interest

rate assumption and the applicable mortality

table described in Rev. Rul. 2001-62 (or its

successor for these purposes, if

applicable).

(2) If the annuity starting date of the member's

benefit is on or after the first day of the first

plan year beginning in 2004 and before December

31, 2004, the application of this subparagraph

shall not cause the amount payable under the

member's form of benefit to be less than the

benefit calculated under the System, taking into

account the limitations of this section, except

that the actuarially equivalent straight life

annuity is equal to the annual amount of the

straight life annuity commencing at the same

annuity starting date that has the same actuarial

present value as the member's form of benefit,

computed using whichever of the following

produces the greatest annual amount:

(a) the interest rate and mortality table (or

other tabular factor) each as set forth in

subsection G of Section 50-105.4 of this

title for adjusting benefits in the same

form,

(b) (i) the rate of interest on thirty-year

Treasury securities as specified by the

Commissioner for the lookback month for

the stability period specified below.

The lookback month applicable to the

stability period is the fourth calendar

month preceding the first day of the

stability period, as specified below.

The stability period is the successive

period of one (1) plan year which

contains the annuity starting date for

the distribution and for which the

applicable interest rate remains

constant, and

(ii) the applicable mortality table

described in Rev. Rul. 2001-62 (or its

successor for these purposes, if

applicable), and

(c) (i) the rate of interest on thirty-year

Treasury securities as specified by the

Commissioner for the lookback month for

the stability period specified below.

Oklahoma Statutes - Title 11. Cities and Towns Page 654

The lookback month applicable to the

stability period is the fourth calendar

month preceding the first day of the

stability period, as specified below.

The stability period is the successive

period of one (1) plan year which

contains the annuity starting date for

the distribution and for which the

applicable interest rate remains

constant (as in effect on the last day

of the last plan year beginning before

January 1, 2004, under provisions of

the System then adopted and in effect),

and

(ii) the applicable mortality table

described in Rev. Rul. 2001-62 (or its

successor for these purposes, if

applicable).

C. If a member has less than ten (10) years of participation in

the System and all predecessor municipal police pension and

retirement systems, the dollar limitation otherwise applicable under

subsection B of this section shall be multiplied by a fraction, the

numerator of which is the number of the years of participation, or

part thereof, in the System of the member, but never less than one
C. If a member has less than ten (10) years of participation in

the System and all predecessor municipal police pension and

retirement systems, the dollar limitation otherwise applicable under

subsection B of this section shall be multiplied by a fraction, the

numerator of which is the number of the years of participation, or

part thereof, in the System of the member, but never less than one

(1), and the denominator of which is ten (10).

D. Adjustment of Dollar Limitation for Benefit Commencement

Before Age Sixty-two (62) or After Age Sixty-five (65): Effective

for benefits commencing in limitation years ending after December

31, 2001, the dollar limitation under subsection B of this section

shall be adjusted if the annuity starting date of the member's

benefit is before age sixty-two (62) or after age sixty-five (65).

If the annuity starting date is before age sixty-two (62), the

dollar limitation under subsection B of this section shall be

adjusted under paragraph 1 of this subsection, as modified by

paragraph 3 of this subsection, but subject to paragraph 4 of this

subsection. If the annuity starting date is after age sixty-five

(65), the dollar limitation under subsection B of this section shall

be adjusted under paragraph 2 of this subsection, as modified by

paragraph 3 of this subsection.

1. Adjustment of Defined Benefit Dollar Limitation for Benefit

Commencement Before Age Sixty-two (62):

a. Limitation Years Beginning Before July 1, 2007. If

the annuity starting date for the member's benefit is

prior to age sixty-two (62) and occurs in a limitation

year beginning before July 1, 2007, the dollar

limitation for the member's annuity starting date is

the annual amount of a benefit payable in the form of

Oklahoma Statutes - Title 11. Cities and Towns Page 655

a straight life annuity commencing at the member's

annuity starting date that is the actuarial equivalent

of the dollar limitation under subsection B of this

section (adjusted under subsection C of this section

for years of participation less than ten (10), if

required) with actuarial equivalence computed using

whichever of the following produces the smaller annual

amount:

(1) the interest rate and the mortality table (or

other tabular factor) each as set forth in

subsection G of Section 50-105.4 of this title,

or

(2) a five-percent interest rate assumption and the

applicable mortality table as described in Rev.

Rul. 2001-62 (or its successor for these

purposes, if applicable).

b. Limitation Years Beginning On or After July 1, 2007.

(1) System Does Not Have Immediately Commencing

Straight Life Annuity Payable at Both Age Sixty-

two (62) and the Age of Benefit Commencement.

(a) If the annuity starting date for the

member's benefit is prior to age sixty-two

(62) and occurs in the limitation year

beginning on January 1, 2008, and the System

does not have an immediately commencing

straight life annuity payable at both age

sixty-two (62) and the age of benefit

commencement, the dollar limitation for the

member's annuity starting date is the annual

amount of a benefit payable in the form of a

straight life annuity commencing at the

member's annuity starting date that is the

actuarial equivalent of the dollar

limitation under subsection B of this

section (adjusted under subsection C of this

section for years of participation less than

ten (10), if required) with actuarial

equivalence computed using a five-percent

interest rate assumption and the applicable

mortality table for the annuity starting

date as described in Rev. Rul. 2001-62 (or

its successor for these purposes, if

applicable) (and expressing the member's age

based on completed calendar months as of the

annuity starting date).
years of participation less than

ten (10), if required) with actuarial

equivalence computed using a five-percent

interest rate assumption and the applicable

mortality table for the annuity starting

date as described in Rev. Rul. 2001-62 (or

its successor for these purposes, if

applicable) (and expressing the member's age

based on completed calendar months as of the

annuity starting date).

(b) If the annuity starting date for the

member's benefit is prior to age sixty-two

Oklahoma Statutes - Title 11. Cities and Towns Page 656

(62) and occurs in a limitation year

beginning on or after January 1, 2009, and

the System does not have an immediately

commencing straight life annuity payable at

both age sixty-two (62) and the age of

benefit commencement, the dollar limitation

for the member's annuity starting date is

the annual amount of a benefit payable in

the form of a straight life annuity

commencing at the member's annuity starting

date that is the actuarial equivalent of the

dollar limitation under subsection B of this

section (adjusted under subsection C of this

section for years of participation less than

ten (10), if required) with actuarial

equivalence computed using a five-percent

interest rate assumption and the applicable

mortality table within the meaning of

Section 417(e)(3)(B) of the Internal Revenue

Code of 1986, as amended, as described in

Rev. Rul. 2007-67 (and subsequent guidance)

(and expressing the member's age based on

completed calendar months as of the annuity

starting date).

(2) System Has Immediately Commencing Straight Life

Annuity Payable at Both Age Sixty-two (62) and

the Age of Benefit Commencement. If the annuity

starting date for the member's benefit is prior

to age sixty-two (62) and occurs in a limitation

year beginning on or after July 1, 2007, and the

System has an immediately commencing straight

life annuity payable at both age sixty-two (62)

and the age of benefit commencement, the dollar

limitation for the member's annuity starting date

is the lesser of the limitation determined under

division (1) of subparagraph b of this paragraph

and the dollar limitation under subsection B of

this section (adjusted under subsection C of this

section for years of participation less than ten

(10), if required) multiplied by the ratio of the

annual amount of the immediately commencing

straight life annuity under the System at the

member's annuity starting date to the annual

amount of the immediately commencing straight

life annuity under the System at age sixty-two

(62), both determined without applying the

limitations of this section.

Oklahoma Statutes - Title 11. Cities and Towns Page 657

(3) Effective for limitation years commencing on or

after January 1, 2014, notwithstanding any other

provision of paragraph 1 of this subsection, the

age-adjusted dollar limit applicable to a member

shall not decrease on account of an increase in

age or the performance of additional services.

2. Adjustment of Defined Benefit Dollar Limitation for Benefit

Commencement After Age Sixty-five (65):

a. Limitation Years Beginning Before July 1, 2007. If

the annuity starting date for the member's benefit is

after age sixty-five (65) and occurs in a limitation

year beginning before July 1, 2007, the dollar

limitation for the member's annuity starting date is

the annual amount of a benefit payable in the form of

a straight life annuity commencing at the member's

annuity starting date that is the actuarial equivalent

of the dollar limitation under subsection B of this

section (adjusted under subsection C of this section

for years of participation less than ten (10), if

required) with actuarial equivalence computed using

whichever of the following produces the smaller annual

amount:

(1) the interest rate and the mortality table (or

other tabular factor) each as set forth in

subsection G of Section 50-105.4 of this title,

or
on under subsection B of this

section (adjusted under subsection C of this section

for years of participation less than ten (10), if

required) with actuarial equivalence computed using

whichever of the following produces the smaller annual

amount:

(1) the interest rate and the mortality table (or

other tabular factor) each as set forth in

subsection G of Section 50-105.4 of this title,

or

(2) a five-percent interest rate assumption and the

applicable mortality table as described in Rev.

Rul. 2001-62 (or its successor for these

purposes, if applicable).

b. Limitation Years Beginning On or After July 1, 2007.

(1) System Does Not Have Immediately Commencing

Straight Life Annuity Payable at Both Age Sixty-

five (65) and the Age of Benefit Commencement.

(a) If the annuity starting date for the

member's benefit is after age sixty-five

(65) and occurs in the limitation year

beginning on January 1, 2008, and the System

does not have an immediately commencing

straight life annuity payable at both age

sixty-five (65) and the age of benefit

commencement, the dollar limitation at the

member's annuity starting date is the annual

amount of a benefit payable in the form of a

straight life annuity commencing at the

member's annuity starting date that is the

actuarial equivalent of the dollar

Oklahoma Statutes - Title 11. Cities and Towns Page 658

limitation under subsection B of this

section (adjusted under subsection C of this

section for years of participation less than

ten (10), if required) with actuarial

equivalence computed using a five-percent

interest rate assumption and the applicable

mortality table for the annuity starting

date as described in Rev. Rul. 2001-62 (or

its successor for these purposes, if

applicable) (and expressing the member's age

based on completed calendar months as of the

annuity starting date).

(b) If the annuity starting date for the

member's benefit is after age sixty-five

(65) and occurs in a limitation year

beginning on or after January 1, 2009, and

the System does not have an immediately

commencing straight life annuity payable at

both age sixty-five (65) and the age of

benefit commencement, the dollar limitation

at the member's annuity starting date is the

annual amount of a benefit payable in the

form of a straight life annuity commencing

at the member's annuity starting date that

is the actuarial equivalent of the dollar

limitation under subsection B of this

section (adjusted under subsection C of this

section for years of participation less than

ten (10), if required) with actuarial

equivalence computed using a five-percent

interest rate assumption and the applicable

mortality table within the meaning of

Section 417(e)(3)(B) of the Internal Revenue

Code of 1986, as amended, as described in

Rev. Rul. 2007-67 (and subsequent guidance)

(and expressing the member's age based on

completed calendar months as of the annuity

starting date).

(2) System Has Immediately Commencing Straight Life

Annuity Payable at Both Age Sixty-five (65) and

Age of Commencement. If the annuity starting

date for the member's benefit is after age sixty-

five (65) and occurs in a limitation year

beginning on or after July 1, 2007, and the

System has an immediately commencing straight

life annuity payable at both age sixty-five (65)

and the age of benefit commencement, the dollar

Oklahoma Statutes - Title 11. Cities and Towns Page 659

limitation at the member's annuity starting date

is the lesser of the limitation determined under

division (1) of subparagraph b of this paragraph

and the dollar limitation under subsection B of

this section (adjusted under subsection C of this

section for years of participation less than ten
the age of benefit commencement, the dollar

Oklahoma Statutes - Title 11. Cities and Towns Page 659

limitation at the member's annuity starting date

is the lesser of the limitation determined under

division (1) of subparagraph b of this paragraph

and the dollar limitation under subsection B of

this section (adjusted under subsection C of this

section for years of participation less than ten

(10), if required) multiplied by the ratio of the

annual amount of the adjusted immediately

commencing straight life annuity under the System

at the member's annuity starting date to the

annual amount of the adjusted immediately

commencing straight life annuity under the System

at age sixty-five (65), both determined without

applying the limitations of this section. For

this purpose, the adjusted immediately commencing

straight life annuity under the System at the

member's annuity starting date is the annual

amount of such annuity payable to the member,

computed disregarding the member's accruals after

age sixty-five (65) but including actuarial

adjustments even if those actuarial adjustments

are used to offset accruals; and the adjusted

immediately commencing straight life annuity

under the System at age sixty-five (65) is the

annual amount of such annuity that would be

payable under the System to a hypothetical member

who is age sixty-five (65) and has the same

accrued benefit as the member.

3. Notwithstanding the other requirements of this subsection,

no adjustment shall be made to the dollar limitation under

subsection B of this section to reflect the probability of a

member's death between the annuity starting date and age sixty-two

(62), or between age sixty-five (65) and the annuity starting date,

as applicable, if benefits are not forfeited upon the death of the

member prior to the annuity starting date. To the extent benefits

are forfeited upon death before the annuity starting date, such an

adjustment shall be made. For this purpose, no forfeiture shall be

treated as occurring upon the member's death if the System does not

charge members for providing a qualified preretirement survivor

annuity, as defined in Section 417(c) of the Internal Revenue Code

of 1986, as amended, upon the member's death.

4. Notwithstanding any other provision to the contrary, for

limitation years beginning on or after January 1, 1997, if payment

begins before the member reaches age sixty-two (62), the reductions

in the limitations in this subsection shall not apply to a member

who is a "qualified participant" as defined in Section 415(b)(2)(H)

of the Internal Revenue Code of 1986, as amended.

Oklahoma Statutes - Title 11. Cities and Towns Page 660

E. Minimum Benefit Permitted: Notwithstanding anything else in

this section to the contrary, the benefit otherwise accrued or

payable to a member under this System shall be deemed not to exceed

the maximum permissible benefit if:

1. The retirement benefits payable for a limitation year under

any form of benefit with respect to such member under this System

and under all other defined benefit plans (without regard to whether

a plan has been terminated) ever maintained by a participating

municipality do not exceed Ten Thousand Dollars ($10,000.00)

multiplied by a fraction:

a. the numerator of which is the member's number of

credited years (or part thereof, but not less than one
r

any form of benefit with respect to such member under this System

and under all other defined benefit plans (without regard to whether

a plan has been terminated) ever maintained by a participating

municipality do not exceed Ten Thousand Dollars ($10,000.00)

multiplied by a fraction:

a. the numerator of which is the member's number of

credited years (or part thereof, but not less than one

(1) year) of service (not to exceed ten (10) years)

with the participating municipality, and

b. the denominator of which is ten (10); and

2. The participating municipality (or a predecessor employer)

has not at any time maintained a defined contribution plan in which

the member participated (for this purpose, mandatory employee

contributions under a defined benefit plan, individual medical

accounts under Section 401(h) of the Internal Revenue Code of 1986,

as amended, and accounts for postretirement medical benefits

established under Section 419A(d)(1) of the Internal Revenue Code of

1986, as amended, are not considered a separate defined contribution

plan).

F. In no event shall the maximum annual accrued retirement

benefit of a member allowable under this section be less than the

annual amount of such accrued retirement benefit, including early

pension and qualified joint and survivor annuity amounts, duly

accrued by the member as of the last day of the limitation year

beginning in 1982, or as of the last day of the limitation year

beginning in 1986, whichever is greater, disregarding any plan

changes or cost-of-living adjustments occurring after July 1, 1982,

as to the 1982 accrued amount, and May 5, 1986, as to the 1986

accrued amount.

G. If a member purchases service credit under the System, which

qualifies as "permissive service credit" pursuant to Section 415(n)

of the Internal Revenue Code of 1986, as amended, the limitations of

Section 415 of the Internal Revenue Code of 1986, as amended, may be

met by either:

1. Treating the accrued benefit derived from such contributions

as an annual benefit under subsection B of this section; or

2. Treating all such contributions as annual additions for

purposes of Section 415(c) of the Internal Revenue Code of 1986, as

amended.

H. If a member repays to the System any amounts refunded from

the System because of such member's prior termination or any other

amount which qualifies as a repayment under Section 415(k)(3) of the

Oklahoma Statutes - Title 11. Cities and Towns Page 661

Internal Revenue Code of 1986, as amended, such repayment shall not

be taken into account for purposes of Section 415 of the Internal

Revenue Code of 1986, as amended, pursuant to Section 415(k)(3) of

the Internal Revenue Code of 1986, as amended.

I. For limitation years beginning on or after January 1, 1995,

subsection C of this section, paragraph 1 of subsection D of this

section, and the proration provided under subparagraphs a and b of

paragraph 1 of subsection E of this section shall not apply to a

benefit paid under the System as the result of the member becoming

disabled by reason of personal injuries or sickness, or amounts

received by the beneficiaries, survivors or estate of the member as

the result of the death of the member.

J. For distributions made in limitation years beginning on or

after January 1, 2000, the combined limit of repealed Section 415(e)

of the Internal Revenue Code of 1986, as amended, shall not apply.

K. The State Board is hereby authorized to revoke the special

election previously made on June 19, 1991, under Section 415(b)(10)

of the Internal Revenue Code of 1986, as amended.

L. All benefits payable from the Oklahoma Police Pension and

Retirement System, including payments from the deferred option plans

under Section 50-111.3 of this title, shall be paid from the general

assets of the Fund pursuant to subsection B of Section 50-105.6 of

this title.