Okla. Stat. tit. 74, § 74-935.8

A. Each participating employer shall pick up under the

provisions of Section 414(h)(2) of the Internal Revenue Code of

1986, as amended, and pay the contribution which the participating

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

compensation earned after the date as of which an employee begins to

participate in the defined contribution system. Although the

contributions so picked up are designated as participating employee

contributions, such contributions shall be treated as contributions

being paid by the employer in lieu of contributions by the

participating employee in determining tax treatment under the

Internal Revenue Code of 1986, as amended, and such picked-up

contributions shall not be includable in the gross income of the

participating employee until such amounts are distributed or made

available to the participating employee or the beneficiary of the

participating employee. The participating employee, 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 employer to the System.

B. Contributions by the participating employee into a 457(b)

plan may not be picked up by the employer but shall be a voluntary

deferral of the employee's compensation. Participating employers

within OPERS that are not eligible to participate in the Deferred

Compensation Plan administered by OPERS under subsection B of

Section 1701 of Title 74 of the Oklahoma Statutes, and the Oklahoma

State Employees Deferred Savings Incentive Plan under Section 1707

of Title 74 of the Oklahoma Statutes, and have established 457(b)

plans for their employees, will have the obligation to ensure that

their employees do not exceed the maximum annual contributions to a

457(b) plan under the Internal Revenue Code.