Okla. Stat. tit. 47, § 47-2-307.5

price.

A. The Board shall adopt rules for computation of the purchase

price for transferred credited service. These rules shall base the

purchase price for each year purchased on the actuarial cost of the

incremental projected benefits to be purchased. The purchase price

shall represent the present value of the incremental projected

benefits discounted according to the member's age at the time of

purchase. Incremental projected benefits shall be the difference

between the projected benefit said member would receive without

purchasing the transferred credited service and the projected

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benefit after purchase of the transferred credited service computed

as of the earliest age at which the member would be able to retire.

Said computation shall assume an unreduced benefit and be computed

using interest and mortality assumptions consistent with the

actuarial assumptions adopted by the Board for purposes of preparing

the annual actuarial evaluation.

B. In the event that the member is unable to pay the purchase

price provided for in this section by the due date, the Board shall

permit the members to amortize the purchase price over a period not

to exceed sixty (60) months. Said payments shall be made by payroll

deductions unless the Board permits an alternate payment source.

The amortization shall include interest in an amount not to exceed

the actuarially assumed interest rate adopted by the Board for

investment earnings each year. Any member who ceases to make

payment, terminates, retires or dies before completing the payments

provided for in this section shall receive prorated service credit

for only those payments made, unless the unpaid balance is paid by

said member, his or her estate or successor in interest within six

(6) months after said member's death, termination of employment or

retirement, provided no retirement benefits shall be payable until

the unpaid balance is paid, unless said member or beneficiary

affirmatively waives the additional six-month period in which to pay

the unpaid balance. Notwithstanding anything herein to the

contrary, lump-sum payments for a transferred credited service

purchase may be made by a cash lump-sum payment; a trustee-to-

trustee transfer of non-Roth funds from a Code Section 403(b)

annuity or custodial account, an eligible deferred compensation plan

described in Code Section 457(b) which is maintained by an eligible

employer described in Code Section 457(e)(1)(A), and/or a Code

Section 401(a) qualified plan; a direct rollover of tax-deferred

funds from a Code Section 403(b) annuity or custodial account, an

eligible deferred compensation plan described in Code Section 457(b)

which is maintained by an eligible employer described in Code

Section 457(e)(1)(A), a Code Section 401(a) qualified plan, and/or a

Code Section 408(a) or 408(b) traditional or conduit Individual

Retirement Account or Annuity (IRA); or a combination of the

foregoing methods. Roth accounts, Coverdell Education Savings

Accounts and after-tax contributions shall not be used to purchase

transferred credited service.

A member making installment payments shall have the option of

making a lump-sum payment for the balance of the actuarial purchase

price with interest due through the date of payment by a cash lump-

sum payment; a trustee-to-trustee transfer of non-Roth funds from a

Code Section 403(b) annuity or custodial account, an eligible

deferred compensation plan described in Code Section 457(b) which is

maintained by an eligible employer described in Code Section

457(e)(1)(A), and/or a Code Section 401(a) qualified plan; a direct

Oklahoma Statutes - Title 47. Motor Vehicles Page 181

rollover of tax-deferred funds from a Code Section 403(b) annuity or

custodial account, an eligible deferred compensation plan described

in Code Section 457(b) which is maintained by an eligible employer
hich is

maintained by an eligible employer described in Code Section

457(e)(1)(A), and/or a Code Section 401(a) qualified plan; a direct

Oklahoma Statutes - Title 47. Motor Vehicles Page 181

rollover of tax-deferred funds from a Code Section 403(b) annuity or

custodial account, an eligible deferred compensation plan described

in Code Section 457(b) which is maintained by an eligible employer

described in Code Section 457(e)(1)(A), a Code Section 401(a)

qualified plan, and/or a Code Section 408(a) or 408(b) traditional

or conduit Individual Retirement Account or Annuity (IRA); or a

combination of the foregoing methods. Roth accounts, Coverdell

Education Savings Accounts and after-tax contributions shall not be

used to purchase transferred credited service. The Board shall

promulgate such rules as are necessary to implement the provisions

of this subsection.