Okla. Stat. tit. 47, § 47-2-305.2

A. In lieu of terminating employment and accepting a service

retirement pension pursuant to Section 2-305 of this title, any

member of the Oklahoma Law Enforcement Retirement System who has not

less than twenty (20) years of participating service and who is

eligible to receive a service retirement pension may make an

irrevocable election to participate in the Oklahoma Law Enforcement

Deferred Option Plan and defer the receipts of benefits in

accordance with the provisions of this section.

B. For purposes of this section, participating service shall

include service credit recognized pursuant to paragraphs (c) and (d)

of Section 2-307, subsection B of Section 2-307.2, and Sections 2-

309.1, 2-309.2, 2-309.3, 2-309.4, 2-309.5 and 2-309.6 of this title

but for eligibility purposes only.

C. The duration of participation in the Oklahoma Law

Enforcement Deferred Option Plan for a member shall not exceed five

(5) years. Participation in the Oklahoma Law Enforcement Deferred

Option Plan must begin the first day of a month and end on the last

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day of the month. At the conclusion of a member's participation in

the Oklahoma Law Enforcement Deferred Option Plan, the member shall

terminate employment as a member of the Oklahoma Law Enforcement

Retirement System, and shall start receiving the member's accrued

monthly retirement benefit from the System. Such a member may

continue to receive in-service distributions of such member's

accrued monthly retirement benefit from the System if the member is

reemployed by a state agency only if such reemployment is in a

position not covered under the System.

D. When a member begins participation in the Oklahoma Law

Enforcement Deferred Option Plan, the contribution of the member

shall cease. The employer contributions shall continue to be paid

in accordance with Section 2-304 of this title. Employer

contributions for members who elect the Oklahoma Law Enforcement

Deferred Option Plan shall be credited equally to the Oklahoma Law

Enforcement Retirement System and to the member's Oklahoma Law

Enforcement Deferred Option Plan account. The monthly retirement

benefits that would have been payable had the member elected to

cease employment and receive a service retirement shall be paid into

the member's Oklahoma Law Enforcement Deferred Option Plan account.

E. 1. A member who participates in this plan shall be eligible

to receive cost of living increases.

2. A member who participates in this plan shall earn interest

at a rate of two percentage points below the rate of return of the

investment portfolio of the System, but no less than the assumed

interest rate. The assumed interest rate shall be seven and five-

tenths percent (7.5%) until the Board amends the assumed interest

rate prospectively by resolution. The interest shall be credited to

the individual account balance of the member on an annual basis.

F. A member in the Oklahoma Law Enforcement Deferred Option

Plan shall receive, at the option of the member:

1. A lump-sum payment from the account equal to the option

account balance of the member, payable to the member;

2. A lump-sum payment from the account equal to the option

account balance of the member, payable to the annuity provider which

shall be selected by the member as a result of the research and

investigation of the member; or

3. Any other method of payment if approved by the Board.

Notwithstanding any other provision contained herein to the

contrary, commencement of distributions under the Oklahoma Law

Enforcement Deferred Option Plan shall be no later than the time as

set forth in paragraph 7 of Section 2-300 of this title.

If a member meets the definition of disability as defined in

paragraph 11 of Section 2-300 of this title by direct reason of the

performance of the member's duties, the payment from the account

shall be an in-line-of-duty disability payment.
ions under the Oklahoma Law

Enforcement Deferred Option Plan shall be no later than the time as

set forth in paragraph 7 of Section 2-300 of this title.

If a member meets the definition of disability as defined in

paragraph 11 of Section 2-300 of this title by direct reason of the

performance of the member's duties, the payment from the account

shall be an in-line-of-duty disability payment.

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G. If the member dies during the period of participation in the

Oklahoma Law Enforcement Deferred Option Plan, a lump-sum payment

equal to the account balance of the member shall be paid to the

designated beneficiary as defined in paragraph 17 of Section 2-300

of this title, or if there is no designated beneficiary or the

designated beneficiary predeceases the member, to the estate of the

member. If such member was receiving, or eligible to receive, an

in-line-of-duty disability pension pursuant to subsection E or F of

Section 2-305 of this title at the time of death, payment of the

account balance shall be an in-line-of-duty disability payment.

H. In lieu of participating in the Oklahoma Law Enforcement

Deferred Option Plan pursuant to subsections A, B, C, D, E and F of

this section, a member may make an irrevocable election to

participate in the Oklahoma Law Enforcement Deferred Option Plan

pursuant to this subsection as follows:

1. For purposes of this subsection, the following definitions

shall apply:

a. "back drop date" means the date selected by the member

which is up to five (5) years before the member elects

to participate in the Oklahoma Law Enforcement

Deferred Option Plan, but not before the date at which

the member completes twenty (20) years of

participating service,

b. "termination date" means the date the member elects to

participate in the Oklahoma Law Enforcement Deferred

Option Plan pursuant to this subsection and the date

the member terminates employment and starts receiving

the member's accrued monthly retirement benefit from

the System. Such termination has at all times

included reemployment of a member by a state agency,

but only in a position not covered under the System,

c. "earlier attained participating service" means the

participating service earned by a member as of the

back drop date. Earlier attained participating

service cannot be reduced to less than twenty (20)

years of participating service, and

d. "deferred benefit balance" means all retirement

benefits that would have been paid from the back drop

date to the termination date, and one-half (1/2) of

the employer contributions from the back drop date to

the termination date, with interest based on how the

benefit would have accumulated on a compound annual

basis as if the member had participated in the

Oklahoma Law Enforcement Deferred Option Plan pursuant

to subsections A, B, C, D and E of this section from

the back drop date to the termination date;

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2. At the termination date, a member's monthly pension benefit

shall be determined based on the earlier attained participating

service and on the final average salary as of the back drop date.

The member's individual deferred option account shall be credited

with an amount equal to the deferred benefit balance; the member

shall terminate employment and shall start receiving the member's

accrued monthly retirement benefit from the System. The member

shall, upon application filed with the Board, be refunded from the

fund an amount equal to the accumulated contributions the member

made to the fund from the back drop date to the termination date,

but excluding any interest. Such termination has at all times

included reemployment of a member by a state agency, but only in a

position not covered under the System. The provisions of

subsections B, C, E, F and G of this section shall apply to this

subsection; and
d an amount equal to the accumulated contributions the member

made to the fund from the back drop date to the termination date,

but excluding any interest. Such termination has at all times

included reemployment of a member by a state agency, but only in a

position not covered under the System. The provisions of

subsections B, C, E, F and G of this section shall apply to this

subsection; and

3. A member may participate in the Oklahoma Law Enforcement

Deferred Option Plan pursuant to this subsection even if the member

has elected to participate in the Oklahoma Law Enforcement Deferred

Option Plan pursuant to subsections A, B, C, D, E and F of this

section. Such a member may select a back drop date which is up to

five (5) years prior to the termination date, but not before the

date at which the member completes twenty (20) years of

participating service. Such a member's participation in the

Oklahoma Law Enforcement Deferred Option Plan may not exceed five

(5) years when combined with such a member's prior period of

participation in the Oklahoma Law Enforcement Deferred Option Plan.

The provisions of subsections B, C, E, F and G of this section shall

apply to this subsection.