Okla. Stat. tit. 74, § 74-920Av2

contributions.

A. Any county, county hospital, city or town, conservation

district, circuit engineering district or any public or private

trust in which a county, city or town participates and is the

primary beneficiary, which is a participating employer and any

eligible employee shall contribute to the System. The total

employer and employee contributions shall be based on the allowable

annual compensation as defined in paragraph (9) of Section 902 of

this title. Except as provided for in this section, the employer

shall not pay for the employee any of the employee contribution to

the System.

B. For the fiscal year ending June 30, 2005, the total employer

and employee contributions shall equal thirteen and one-half percent

(13 1/2%) of the allowable monthly compensation of each member;

provided, however, each participating employer listed in this

section may set the amount of the employer and employee contribution

to equal thirteen and one-half percent (13 1/2%) of the allowable

monthly compensation of each member for compensation as provided in

paragraph (9) of Section 902 of this title; provided, the employer

contribution shall not exceed ten percent (10%) and the employee

contribution shall not exceed eight and one-half percent (8 1/2%).

C. The total employer and employee contributions for fiscal

years following the fiscal year ending June 30, 2005, shall be as

follows:

July 1, 2005 – June 30, 2006 15%

July 1, 2006 – June 30, 2007 16%

Oklahoma Statutes - Title 74. State Government Page 1279

July 1, 2007 – June 30, 2008 17%

July 1, 2008 – June 30, 2009 18%

July 1, 2009 – June 30, 2010 19%

July 1, 2010 – June 30, 2011 and

each fiscal year thereafter 20%

Such employee and employer contributions shall be based upon the

allowable monthly compensation of each member for compensation as

provided in paragraph (9) of Section 902 of this title. The maximum

employer contribution of ten percent (10%) in subsection B of this

section shall increase by one and one-half percent (1.5%) beginning

in the fiscal year ending June 30, 2006, and one percent (1%) for

each fiscal year thereafter until it reaches sixteen and one-half

percent (16.5%). For such years, the employee contribution shall

not exceed eight and one-half percent (8 1/2%). Notwithstanding any

other provisions of this section to the contrary, for those members

described in divisions (v) and (vi) of subparagraph (d) of paragraph

(24) of Section 902 of this title, the county shall contribute

sixteen and one-half percent (16 1/2%) and the employee shall

contribute eight percent (8%) for a total of twenty-four and one-

half percent (24 1/2%).

D. For members who make the election pursuant to paragraph (2)

of subsection A of Section 915 of this title, the employee

contribution shall increase by two and ninety-one one-hundredths

percent (2.91%). Such employee contribution increase shall be paid

by the employee.

E. Each participating employer pursuant to the provisions of

this section may pick up under the provisions of Section 414(h)(2)

of the Internal Revenue Code of 1986 and pay the contribution which

the member is required by law to make to the System for all

compensation earned after December 31, 1989. Although the

contributions so picked up are designated as member contributions,

such contributions shall be treated as contributions being paid by

the participating employer in lieu of contributions by the member in

determining tax treatment under the Internal Revenue Code of 1986

and such picked up contributions shall not be includable in the

gross income of the member until such amounts are distributed or

made available to the member or the beneficiary of the member. The

member, by the terms of this System, shall not have any option to

choose to receive the contributions so picked up directly and the

picked up contributions must be paid by the participating employer

to the System.
up contributions shall not be includable in the

gross income of the member until such amounts are distributed or

made available to the member or the beneficiary of the member. The

member, by the terms of this System, shall not have any option to

choose to receive the contributions so picked up directly and the

picked up contributions must be paid by the participating employer

to the System.

F. Member contributions which are picked up shall be treated in

the same manner and to the same extent as member contributions made

prior to the date on which member contributions were picked up by

the participating employer. Member contributions so picked up shall

be included in gross salary for purposes of determining benefits and

contributions under the System.

Oklahoma Statutes - Title 74. State Government Page 1280

G. The participating employer shall pay the member

contributions from the same source of funds used in paying salary to

the member, by effecting an equal cash reduction in gross salary of

the member.