Okla. Stat. tit. 47, § 47-2-305.4

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

herein. Notwithstanding any other provision contained herein to the

contrary, the benefits payable to a member from the Oklahoma Law

Enforcement Retirement 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 herein.

B. Except as provided herein, effective for limitation years

ending after December 31, 2001, any accrued retirement benefit

payable to a member as an annual benefit as described herein 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

herein, 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

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.

Oklahoma Statutes - Title 47. Motor Vehicles Page 148

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,
e 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 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:

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:

Oklahoma Statutes - Title 47. Motor Vehicles Page 149

(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 H of Section 2-303.1 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

Revenue Ruling 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 Revenue

Ruling 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:

Oklahoma Statutes - Title 47. Motor Vehicles Page 150

(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 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):

(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 the most

recent actuarial valuation referenced in

subsection H of Section 2-303.1 of this title

prior to September 1, 2011, and effective

September 1, 2011, in subsection L of this

section, 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

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

Internal Revenue Code of 1986, as amended, as

Oklahoma Statutes - Title 47. Motor Vehicles Page 151

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

Internal Revenue Code of 1986, as amended, as

Oklahoma Statutes - Title 47. Motor Vehicles Page 151

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)

of this subsection:

(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 H

of Section 2-303.1 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

Oklahoma Statutes - Title 47. Motor Vehicles Page 152

assumption and the applicable mortality table

described in Revenue Ruling 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

Revenue Ruling 2001-62 (or its successor for

these purposes, if applicable),

and 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) of this

subsection:

(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 H

of Section 2-303.1 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

Oklahoma Statutes - Title 47. Motor Vehicles Page 153

and one-half percent (5.5%) interest rate

assumption and the applicable mortality table

described in Revenue Ruling 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 herein. The lookback month

applicable to the stability period is the

fourth calendar month preceding the first

day of the stability period, as specified

herein. 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

Revenue Ruling 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 H of Section 2-303.1 of this

title for adjusting benefits in the same

form, and
fe 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 H of Section 2-303.1 of this

title for adjusting benefits in the same

form, and

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

rate assumption and the applicable mortality

table described in Revenue Ruling 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

Oklahoma Statutes - Title 47. Motor Vehicles Page 154

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 H of Section 2-203.1 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 herein.

The lookback month applicable to the

stability period is the fourth calendar

month preceding the first day of the

stability period, as specified herein.

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 Revenue Ruling 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 herein.

The lookback month applicable to the

stability period is the fourth calendar

month preceding the first day of the

stability period, as specified herein.

The stability period is the successive

period of one (1) plan year which

contains the annuity starting date for

Oklahoma Statutes - Title 47. Motor Vehicles Page 155

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 Revenue Ruling 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 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 Sixty-two (62) Years of Age or After Sixty-five (65) Years of

Age: 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 sixty-two (62) years of age or after

sixty-five (65) years of age. If the annuity starting date is
efore Sixty-two (62) Years of Age or After Sixty-five (65) Years of

Age: 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 sixty-two (62) years of age or after

sixty-five (65) years of age. If the annuity starting date is

before sixty-two (62) years of age, 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 sixty-five (65) years of age, 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 Sixty-two (62) Years of Age:

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

the annuity starting date for the member's benefit is

prior to sixty-two (62) years of age 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

Oklahoma Statutes - Title 47. Motor Vehicles Page 156

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 H of Section 2-303.1 of this title, or

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

the applicable mortality table as described in

Revenue Ruling 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 Sixty-two

(62) Years of Age and the Age of Benefit

Commencement.

(a) If the annuity starting date for the

member's benefit is prior to sixty-two (62)

years of age and occurs in the limitation

year beginning on or after January 1, 2008,

and the System does not have an immediately

commencing straight life annuity payable at

both sixty-two (62) years of age 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 (5%) interest

rate assumption and the applicable mortality

table for the annuity starting date as

described in Revenue Ruling 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).
articipation less than ten (10), if

required) with actuarial equivalence

computed using a five percent (5%) interest

rate assumption and the applicable mortality

table for the annuity starting date as

described in Revenue Ruling 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 sixty-two (62)

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

Oklahoma Statutes - Title 47. Motor Vehicles Page 157

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 (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

expressing the member's age based on

completed calendar months as the annuity

starting date).

(2) System Has Immediately Commencing Straight Life

Annuity Payable at Both Sixty-two (62) Years of

Age and the Age of Benefit Commencement. If the

annuity starting date for the member's benefit is

prior to sixty-two (62) years of age 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

sixty-two (62) years of age 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 sixty-two (62)

years of age, both determined without applying

the limitations of this section.

(3) Effective for limitation years commencing on or

after January 1, 2014, notwithstanding any other

provision of paragraph 1 of this subsection, the

Oklahoma Statutes - Title 47. Motor Vehicles Page 158

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 Sixty-five (65) Years of Age:

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

the annuity starting date for the member's benefit is

after sixty-five (65) years of age 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:
e 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 H of Section 2-303.1 of this title, or

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

the applicable mortality table as described in

Revenue Ruling 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 Sixty-five

(65) Years of Age and the Age of Benefit

Commencement.

(a) If the annuity starting date for the

member's benefit is after sixty-five (65)

years of age 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 sixty-five (65) years of age 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

Oklahoma Statutes - Title 47. Motor Vehicles Page 159

participation less than ten (10), if

required) with actuarial equivalence

computed using a five percent (5%) interest

rate assumption and the applicable mortality

table for the annuity starting date as

described in Revenue Ruling 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 sixty-five (65)

years of age 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 sixty-five (65) years of age 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 (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

expressing the member's age based on

completed calendar months as of the annuity

starting date).
if

required) with actuarial equivalence

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) (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 Sixty-five (65) Years of

Age and Age of Benefit Commencement. If the

annuity starting date for the member's benefit is

after sixty-five (65) years of age 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

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

benefit commencement, the dollar limitation at

Oklahoma Statutes - Title 47. Motor Vehicles Page 160

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 sixty-five (65) years of age, 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 sixty-five (65) years of age 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 sixty-

five (65) years of age is the annual amount of

such annuity that would be payable under the

System to a hypothetical member who is sixty-five

(65) years of age 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 sixty-two (62)

years of age, or between sixty-five (65) years of age 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 reached sixty-two (62) years of age, the

reductions in the limitations in this subsection shall not apply to

Oklahoma Statutes - Title 47. Motor Vehicles Page 161

a member who is a "qualified participant" as defined in Section

415(b)(2)(H) of the Internal Revenue Code of 1986, as amended.

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
l Revenue Code of 1986, as amended.

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

employer 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), with the

participating employer, and

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

2. The participating employer (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 this title from

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.

Oklahoma Statutes - Title 47. Motor Vehicles Page 162

H. If a member repays to the System any amounts received or

refunded from the System because of the member's prior termination

pursuant to paragraph 3 of subsection (b) of Section 2-307 of this

title or any other amount which qualifies as a repayment under

Section 415(k)(3) of the 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 a 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 Board is hereby authorized to revoke the special

election previously made under Section 415(b)(10) of the Internal
urvivors 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 Board is hereby authorized to revoke the special

election previously made under Section 415(b)(10) of the Internal

Revenue Code of 1986, as amended.

L. Effective September 1, 2011, the interest rate and mortality

assumptions for the System used to determine the actuarial

equivalence of a member's form of benefit shall be set by the State

Board in a manner that precludes employer discretion, shall be based

upon recommendations from independent professional advisors, and

shall be published annually in the actuarial valuation.

M. All benefits payable from the Oklahoma Law Enforcement

Retirement System including payments from the deferred option plans

under Section 2-305.2 of this title shall be paid from the general

assets of the Fund pursuant to subsection B of Section 2-303.4 of

this title.