Okla. Stat. tit. 74, § 74-915.3

On or before January 1, 2005, the Oklahoma Public Employees

Retirement System shall implement a retirement benefit option for

members retiring prior to being Medicare-eligible. The purpose of

this option is to allow a person who retires prior to being

Medicare-eligible to elect to receive an increased benefit to help

cover the cost of the member and dependent health insurance

premiums, if any, until such member is eligible to receive Medicare.

Beginning in the month following such month that the member becomes

Medicare-eligible, his or her retirement benefit will be reduced by

an actuarial amount. The alternative retirement benefit option

shall be devised so that the increased pre-Medicare retirement

benefit and the lower post-Medicare retirement benefit shall have a

neutral actuarial cost to the System. The System may, but shall not

Oklahoma Statutes - Title 74. State Government Page 666

be required to, make individual actuarial calculations; however, the

actuarial reduction necessary to provide this alternative retirement

benefit option shall be calculated after and in addition to any

reduction necessary to provide a survivor benefit pursuant to

Section 918 of this title. The increased pre-Medicare retirement

benefit may not equal an individual’s actual premium, but the

formula used shall be based upon the retiree pre-Medicare health

insurance premiums of the plans offered by the State and Education

Employees Group Insurance Board at the time the member retires. The

System shall on or before January 1 of each year update the formula

based upon new health insurance premium data of the plans offered by

the State and Education Employees Group Insurance Board to retired

members. A member retiring under the alternative retirement benefit

option shall have the member’s retirement benefit based upon the

formula in use at the time of retirement and shall not be amended

thereafter to reflect further changes in health insurance premiums.

A member electing to participate in the alternative retirement

benefit option shall make an irrevocable election at the time of

retirement to participate in such option. Provided further, that

any married member making this election shall comply with the

provisions of Section 918 of this title. The Board of Trustees of

the Oklahoma Public Employees Retirement System shall promulgate

such rules as are necessary to implement the provisions of this

section.

No member shall be eligible to make the election provided for in

this section until the Board receives official written notice that

this alternative retirement benefit option satisfies the tax

qualification requirements for governmental plans applicable to such

benefit options as specified in the Internal Revenue Code of 1986,

as amended from time to time and as applicable to governmental plans

and the relevant regulatory provisions and guidance related thereto.