Okla. Stat. tit. 74, § 74-923

legal process - Offset.

A. Except as otherwise provided by this section, no alteration,

amendment, or repeal of this act shall affect the then existing

rights of members and beneficiaries, but shall be effective only as

to rights which would otherwise accrue hereunder as a result of

services rendered by an employee after such alteration, amendment,

or repeal. Any annuity, benefits, fund, property, or rights created

by or accruing to any person under the provisions of this act shall

not be subject to execution, garnishment or attachment, or any other

process or claim whatsoever, and shall be unassignable, except as

specifically provided by Section 901 et seq. of this title.

Notwithstanding the foregoing, the Board of Trustees may offset any

benefits of a member or beneficiary to pay a judgment or settlement

against a member or beneficiary for a crime involving the System,

for a fraud or breach of the member’s fiduciary duty to the System,

or for funds or monies incorrectly paid to a member or a

beneficiary, provided such offset is in accordance with the

requirements of Section 401(a)(13) of the Internal Revenue Code of

1986. The offset applies to any benefits which may otherwise be

payable to a member or beneficiary from any plan or fund which is

administered by the Board of Trustees.

Oklahoma Statutes - Title 74. State Government Page 707

B. 1. The provisions of subsection A of this section shall not

apply to a qualified domestic order as provided pursuant to this

subsection.

2. The term “qualified domestic order” means an order issued by

a district court of this state pursuant to the domestic relation

laws of the State of Oklahoma which relates to the provision of

marital property rights to a spouse or former spouse of a member or

provision of support for a minor child or children and which creates

or recognizes the existence of the right of an alternate payee, or

assigns to an alternate payee the right, to receive a portion of the

benefits payable with respect to a member of the System.

3. For purposes of the payment of marital property, to qualify

as an alternate payee, a spouse or former spouse must have been

married to the related member for a period of not less than thirty

(30) continuous months immediately preceding the commencement of the

proceedings from which the qualified domestic order issues.

4. A qualified domestic order is valid and binding on the State

Board and the related member only if it meets the requirements of

this subsection.

5. A qualified domestic order shall clearly specify:

a. the name and last-known mailing address (if any) of

the member and the name and mailing address of the

alternate payee covered by the order,

b. the amount or percentage of the member’s benefits to

be paid by the System to the alternate payee,

c. the number of payments or period to which such order

applies,

d. the characterization of the benefit as to marital

property rights or child support, and

e. each plan to which such order applies.

6. A qualified domestic order meets the requirements of this

subsection only if such order:

a. does not require the System to provide any type or

form of benefit, or any option not otherwise provided

under state law as relates to the System,

b. does not require the System to provide increased

benefits, and

c. does not require the payment of benefits to an

alternate payee which are required to be paid to

another alternate payee pursuant to another order

previously determined to be a qualified domestic order

or an order recognized by the System as a valid order

prior to the effective date of this act.

7. A qualified domestic order shall not require payment of

benefits to an alternate payee prior to the actual retirement date

or withdrawal of the related member and shall not attach to or

require the payment of any amount of benefits related to a deferred

Oklahoma Statutes - Title 74. State Government Page 708
ecognized by the System as a valid order

prior to the effective date of this act.

7. A qualified domestic order shall not require payment of

benefits to an alternate payee prior to the actual retirement date

or withdrawal of the related member and shall not attach to or

require the payment of any amount of benefits related to a deferred

Oklahoma Statutes - Title 74. State Government Page 708

compensation plan or program authorized by Section 1701 et seq. of

this title.

8. The obligation of the System to pay an alternate payee

pursuant to a qualified domestic order shall cease upon the death of

the related member.

9. This subsection shall not be subject to the provisions of

the Employee Retirement Income Security Act of 1974 (ERISA), 29

U.S.C.A. Section 1001 et seq., as amended from time to time, or

rules and regulations promulgated thereunder, and court cases

interpreting said act.

10. The Oklahoma Public Employees Retirement System Board of

Trustees shall promulgate such rules as are necessary to implement

the provisions of this subsection.

11. An alternate payee who has acquired beneficiary rights

pursuant to a valid qualified domestic order must fully comply with

all provisions of the rules promulgated by the Board pursuant to

this subsection in order to continue receiving his or her benefit.