§ 70-17-206. Election to participate in alternate retirement plan or Teachers’ Retirement System of Oklahoma – Transfer of funds – Service credit.

A.  An eligible employee shall have ninety (90) days from such eligible employee’s initial date of hire or the date the alternate retirement plan is adopted by the participating institution, whichever is later, to make a one-time irrevocable written election to participate in the alternate retirement plan or the Teachers’ Retirement System of Oklahoma.  If an eligible employee fails to make an election within the ninety-day period such eligible employee shall participate in the Teachers' Retirement System of Oklahoma.  If an eligible employee makes the election to participate in the alternate retirement plan such eligible employee shall not participate in the Teachers’ Retirement System of Oklahoma nor make employee contributions to the Teachers’ Retirement System of Oklahoma and the participating institution shall not make employer contributions to the Teachers’ Retirement System of Oklahoma except as otherwise required by this act.  If an eligible employee elects to participate in the Teachers’ Retirement System of Oklahoma, then the eligible employee shall make employee contributions to the Teachers’ Retirement System of Oklahoma and the participating institution shall pay the employer contributions of such eligible employee to the Teachers’ Retirement System of Oklahoma for the month that the eligible employee was hired through the month that the election is made and as long as the eligible employee participates in the Teachers’ Retirement System of Oklahoma.

B.  An eligible employee who elects to participate in the alternate retirement plan shall be ineligible for participation in the Teachers’ Retirement System of Oklahoma.  Ineligibility to participate in the Teachers’ Retirement System of Oklahoma shall continue so long as such eligible employee remains employed by a participating institution.  If such eligible employee assumes a different position, which is governed by a state retirement system other than the alternate retirement plan authorized in this act, the eligible employee shall be subject to the retirement system rules applicable to that new position.  However, such eligible employee shall not be eligible for service credit in the Teachers’ Retirement System of Oklahoma for service performed while participating in an alternate retirement plan.

C.  An electing employee who desires to cease to participate in the Teachers’ Retirement System of Oklahoma shall make a one-time irrevocable written election to cease making employee contributions to the Teachers’ Retirement System of Oklahoma and participate in the alternate retirement plan.  Such election shall be made within one (1) year following the adoption of the alternate retirement plan or receipt of official written notice that the provisions of this act satisfy the applicable requirements of the Internal Revenue Code of 1986, as amended from time to time, whichever is later. If the electing employee makes the election pursuant to this subsection, then the participating institution shall notify the Teachers’ Retirement System of Oklahoma of such election within thirty (30) days of receipt of the election.  Upon the election to cease membership in the Teachers’ Retirement System of Oklahoma, employer and employee contributions shall cease as of the first day of the month coinciding with or first following the receipt of the election from the electing employee by the participating institution.

D.  Subject to receipt of official written notice that the provisions of this act satisfy the applicable requirements of the Internal Revenue Code of 1986, as amended from time to time, as provided in subsection C of this section, if the electing employee is not vested with the Teachers’ Retirement System of Oklahoma at the time the election is made, the Teachers’ Retirement System of Oklahoma shall transfer all of the electing employee’s employee contributions (but not employer contributions) at the time of such election, and attributable interest, pursuant to Section 17-105 of Title 70 of the Oklahoma Statutes, to the alternate retirement plan in an amount equal to what the electing employee would have received had the electing employee withdrawn his or her contributions at the date of such election.  A transfer of employee contributions and interest pursuant to this subsection shall only be made upon receipt of official written notice that such transfer satisfies the applicable requirements of the Internal Revenue Code of 1986, as amended from time to time.  Upon transfer of such employee contributions and interest to the alternate retirement plan, the electing employee shall have all service credit, rights, and benefits in the Teachers’ Retirement System of Oklahoma canceled.  In the event the Internal Revenue Service does not approve the transfer of contributions and interest to the alternate retirement plan as provided in this subsection, such employee contributions and interest shall be refunded to such electing employee upon termination, retirement, death or disability pursuant to Section 17-101 et seq. of Title 70 of the Oklahoma Statutes and the rules of the Teachers’ Retirement System of Oklahoma.

E. In the event an electing employee is vested with the Teachers’ Retirement System of Oklahoma on the date that the election is made, such individual shall have the option to either (a) leave all of his or her employee contributions in the Teachers’ Retirement System of Oklahoma, or (b) transfer all of the electing employee’s employee contributions (but not employer contributions) at the time of such election, and attributable interest, pursuant to Section 17-105 of Title 70 of the Oklahoma Statutes, to the alternate retirement plan in an amount equal to what the electing employee would have received had the electing employee withdrawn his or her contributions at the date of such election.  A transfer of employee contributions and interest pursuant to this subsection shall only be made upon receipt of official written notice that such transfer satisfies the applicable requirements of the Internal Revenue Code of 1986, as amended from time to time. Upon transfer of such employee contributions and interest to the alternate retirement plan, all of the electing employee’s service credit, rights, and benefits in the Teachers’ Retirement System of Oklahoma shall be canceled.  However, such electing employee who leaves all of his or her employee contributions in the Teachers’ Retirement System of Oklahoma shall not be eligible to retire from the Teachers’ Retirement System of Oklahoma while employed by a participating institution. In the event the Internal Revenue Service does not approve the transfer of contributions and interest to the alternate retirement plan as provided in this subsection, such employee contributions and interest shall be refunded to such electing employee upon termination, retirement, death or disability pursuant to Section 17-101 et seq. of Title 70 of the Oklahoma Statutes and the rules of the Teachers’ Retirement System of Oklahoma.

F.  An electing employee shall not be eligible to obtain service credit in the Teachers’ Retirement System of Oklahoma for service performed while participating in an alternate retirement plan as provided in this act, on or after July 1, 2004, even if the employee later returns to employment in a position governed by the Teachers’ Retirement System of Oklahoma.  The Boards of Regents of the participating institutions and the Teachers’ Retirement System of Oklahoma shall promulgate any rules necessary to implement the provisions of this section.

Added by Laws 2004, c. 385, § 6, eff. July 1, 2004.