Okla. Stat. tit. 47, § 47-2-301

Retirement Medical Benefit Fund - Right to benefits.

There is hereby established a System for the payment of

retirement benefits and certain medical and hospital expenses of

members of the Oklahoma Law Enforcement Retirement System.

Effective July 1, 2014, the System intends to satisfy Section 401(a)

of the Internal Revenue Code of 1986, as amended from time to time,

by meeting the requirements of Section 414(d) of the Internal

Revenue Code of 1986, as amended from time to time. Such System

shall constitute an amendment and continuation of the Retirement and

Pension Plan of the Department of Public Safety and members in the

Retirement and Pension Plan on June 30, 1980, shall continue as

members of the Oklahoma Law Enforcement Retirement System. There is

established in the State Treasury a special fund designated as the

"Oklahoma Law Enforcement Retirement Fund" for the benefit of

members of the System and certain dependents of deceased members of

the System. Such fund shall be a continuation, under a new name, of

the Retirement and Pension Fund of the Department of Public Safety.

There is hereby created the Retirement Medical Benefit Fund.

The fund shall be maintained as a subaccount of the Oklahoma Law

Enforcement Retirement Fund. The Retirement Medical Benefit Fund is

composed of all assets which may be contributed to this subaccount

to pay the retirement system's portion of the monthly retiree health

insurance premium benefit described by Section 1316.2 of Title 74 of

the Oklahoma Statutes. Such monthly retiree health insurance

premium benefit is in addition to, and subordinate to, the

retirement benefits provided by this System. All such allocated

assets and any earnings thereon in the Retirement Medical Benefit

Fund shall be held for the exclusive purpose of providing retiree

medical benefits. The Retirement Medical Benefit Fund is to be

administered in accordance with the requirements of Section 401(h)

of the Internal Revenue Code of 1986, as amended from time to time.

It shall be impossible, at any time prior to the satisfaction of all

liabilities for these benefits, for any part of this subaccount to

be used for or diverted to, any purpose other than the providing of

the retiree health insurance premium benefit and the payment of

necessary and appropriate related expenses. Notwithstanding the

provisions of Section 401(a)(2) of the Internal Revenue Code of

1986, as amended from time to time, effective July 1, 2014, upon the

Oklahoma Statutes - Title 47. Motor Vehicles Page 117

satisfaction of all liabilities under the Oklahoma Law Enforcement

Retirement System to provide Section 401(h) medical benefits, any

amount remaining in such separate subaccount must be returned to the

employer. Effective July 1, 2014, in the event an individual's

interest in the medical benefits subaccount is forfeited prior to

the termination of the Oklahoma Law Enforcement Retirement System,

an amount equal to the amount of the forfeiture must be applied as

soon as possible to reduce employer contributions to fund the

medical benefits described in Section 401(h). The Board of Trustees

may promulgate such rules as are necessary to implement the funding

and administration of the fund pursuant to the provisions of this

subsection. All contributions to fund the retiree health insurance

benefit shall be made on the basis of a generally accepted actuarial

method. Notwithstanding anything contained herein to the contrary,

the aggregate of contributions to provide retiree health insurance

benefits and life insurance, if any, shall not exceed twenty-five

percent (25%) of the aggregate contributions made to fund all

benefits under this System, other than contributions to fund past

service costs. For this purpose, "life insurance" means, as to any

member, the in-service death benefit that would be payable upon the

member's death, but only to the extent that the lump-sum value of
benefits and life insurance, if any, shall not exceed twenty-five

percent (25%) of the aggregate contributions made to fund all

benefits under this System, other than contributions to fund past

service costs. For this purpose, "life insurance" means, as to any

member, the in-service death benefit that would be payable upon the

member's death, but only to the extent that the lump-sum value of

such death benefit would exceed the lump-sum value of the member's

accrued benefit at the date of the member's death.

Appointment to any position within a covered agency which comes

under this System shall not jeopardize the rights of any person who

has previously qualified for membership under this System, provided

that the individual contributions are continued, and such person

remains a member of this System. Any person who has previously

qualified for membership under the System who voluntarily seeks and

accepts appointment to any position within a covered agency which is

not a covered position excludes the member from further

participation in this System; provided, this provision shall not

apply to any person who is a member of the System and who, on or

before June 30, 2002, has already accepted appointment to a position

which is not a covered position of the System nor shall it apply if

that person seeks and accepts any other position within a covered

agency which is not a covered position of the System.