Okla. Stat. tit. 74, § 74-912.1

Distribution of assets.

(1) In the event the Plan of the Public Employees Retirement

System is terminated or partially terminated the right of all

participants or in the event of partial termination the rights of

the affected participants, or in the event of complete

discontinuance of contributions, whether retired or otherwise, shall

become fully vested.

(2) In the event of termination of the Plan, the Board of

Trustees shall distribute the net assets of the fund, allowing a

period of not less than six (6) nor more than nine (9) months for

dissolution of disability claims, as follows:

(a) First, accumulated contributions shall be allocated to

each respective participant, former participant, retired member,

joint annuitant or beneficiary then receiving payments. If these

assets are insufficient for this purpose, they shall be allocated to

each such person in the proportion which his accumulated

contributions bear to the total of all such participants'

accumulated contributions. For purposes of this section,

contribution means payment into the System by an employer or

employee for the benefit of an individual employee. (b) The

balance of such assets, if any, remaining after making the

allocations provided in subparagraph (a) of this section shall be

disposed of by allocating to each person then having an interest in

the fund the excess of his retirement income under the Plan less the

retirement income which is equal to the actuarial equivalent of the

Oklahoma Statutes - Title 74. State Government Page 636

amount allocated to him under subparagraph (a) of this section.

Such allocation shall be made with the full amount of the remaining

assets to be allocated to the persons in each group in the following

order of precedence:

(i) those retired members, joint annuitants or

beneficiaries receiving benefits,

(ii) those members eligible to retire,

(iii) those members eligible for early retirement,

(iv) former participants electing to receive a

vested benefit, and

(v) all other members.

In the event the balance of the fund remaining after all

allocations have been made with respect to all retirement income in

a preceding group is insufficient to allocate the full actuarial

equivalent of such retirement income to all persons in the group for

which it is then being applied, such balance of the fund shall be

allocated to each person in such group in the proportion which the

actuarial equivalent of the retirement income allocable to him

pursuant to such group bears to the total actuarial equivalent of

the retirement income so allocable to all persons in such group.

Provided no discrimination in value results, the Board of

Trustees shall distribute the amounts so allocated in one of the

following manners as the Board of Trustees in their discretion may

determine:

(i) by continuing payment of benefits as they become

due, or

(ii) by paying, in cash, the amount allocated to any

such person.