Okla. Stat. tit. 70, § 70-17-102.3

qualification - Termination.

The Tax-Sheltered Annuity Program provided by Section 17-101 et

seq. of this title shall satisfy the applicable qualification

requirements for grandfathered governmental tax-sheltered annuity

programs as specified in 26 U.S.C. Section 403(b) and the relevant

regulatory provisions and guidance related thereto. In order to

satisfy these requirements and guidelines, the Teachers' Retirement

Tax-Sheltered Annuity Program shall be subject to the following

provisions, notwithstanding any other provision of the law governing

the Oklahoma Teachers' Retirement System:

(1) The Board of Trustees shall administer and distribute the

corpus and income of the Tax-Sheltered Annuity Program to members

and their beneficiaries pursuant to the applicable requirements

under 26 U.S.C. Section 403(b), relevant regulatory provisions and

guidance under 26 U.S.C. Section 403(b), and in accordance with the

law governing the Oklahoma Teachers' Retirement System.

(2) All benefits paid from the retirement system shall be

distributed in accordance with the applicable requirements of 26

U.S.C. Sections 403(b)(10) and 401(a)(9) and the regulations

thereto.

(3) To the extent required by 26 U.S.C. Sections 403(b)(10) and

401(a)(31), the retirement system shall allow members and qualified

beneficiaries to elect a direct rollover of eligible distributions

to another eligible retirement plan.

(4) To the extent required under 26 U.S.C. Section 403(b)(11)

and the regulations thereto, distributions under the Tax-Sheltered

Annuity Program shall only be paid when the member attains the age

of fifty-nine and one-half (59 1/2) years, separates from service,

dies, becomes disabled, or in the case of hardship.

(5) The Board of Trustees may terminate the Tax-Sheltered

Annuity Program administered under 26 U.S.C. Section 403(b). The

Board of Trustees shall do so in accordance with the requirements of

federal tax law and in a way that is designed to minimize financial

harm to the participants in the program. To assist in minimizing

any such harm, an employer that sponsors a local tax-sheltered

annuity program under 26 U.S.C. Section 403(b) and that has an

Oklahoma Statutes - Title 70. Schools Page 720

active or inactive participant with an account balance under the

program, shall permit the provider administering the program on the

effective date of such termination to be a provider in the local

program and to offer the same investment options to program

participants that were available under the program. The employer is

required to permit the program provider to remain a provider under

the local program for a two-year period beginning with the first day

of the local program's plan year following the effective date of

such termination; provided, that this requirement shall apply with

respect to an investment option only so long as the program provider

continues to lawfully provide the investment option.

Notwithstanding the foregoing, any program participant may elect to

remit contributions to and/or, subject to any contractual

restrictions, transfer the balance of the program participant to,

any other approved provider under the local program at any time

during the two-year period provided herein. An employer that

sponsors a local program that includes the program as the only

investment option, and that has an active or inactive participant

with an account balance under the program, shall permit the program

provider to be a provider in that local program subject to the above

terms, or the local program of the employer shall terminate at such

time that the program is terminated, in which case the employer

shall be prohibited from contributing to any 403(b) program on

behalf of any employee for the twelve-month period required under

Treasury Regulation Section 1.403(b)-10.