Retirement coordinators' manual

              P E R S
RETIREMENT
COORDINATORS
MANUAL
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TABLE OF CONTENTS
BOARD OF TRUSTEES ............................................................................................................... 1
ABOUT THIS MANUAL ............................................................................................................. 2
A MESSAGE FROM THE EXECUTIVE DIRECTOR ......................................................................... 3
CONTACT INFORMATION ......................................................................................................... 4
DRIVING DIRECTIONS TO OPERS OFFICES ................................................................................ 5
CHAPTER 1: RETIREMENT COORDINATOR RESPONSIBILITIES .................................................. 6
1.1 Preparation & Identification of Documents ........................................................................................ 6
1.2 False Statements ................................................................................................................................ 6
1.3 Confidential Information .................................................................................................................... 6
1.4 Active Member Name Change ............................................................................................................ 7
CHAPTER 2: RESPONSIBILITIES OF MEMBERSHIP .................................................................... 8
2.1 Hearings Before the Board of Trustees ............................................................................................... 8
2.2 Forfeiture of Benefits .......................................................................................................................... 8
2.3 Address Changes ................................................................................................................................ 8
2.4 Beneficiary Changes ............................................................................................................................ 8
2.5 Correspondence ................................................................................................................................. 9
2.6 Divorce ............................................................................................................................................... 9
2.7 Rollovers into the OPERS Defined Benefit Plan .................................................................................. 9
CHAPTER 3: ELIGIBILITY FOR MEMBERSHIP ............................................................................10
3.1 Membership Requirements .............................................................................................................. 10
3.2 When to Begin Contributions ........................................................................................................... 12
3.3 Enrollment Process ........................................................................................................................... 13
CHAPTER 4: MONTHLY MEMBER & PARTICIPATING EMPLOYER CONTRIBUTIONS .................15
4.1 History of State Agency & Member Contribution Rates ................................................................... 15
4.2 State Agency & Member Contribution Rates .................................................................................... 15
4.3 Local Government & Non‐State Finance Agency Contribution Rates ............................................... 18
4.4 Local Government Agency Pick‐Up Provision ................................................................................... 19
4.5 Contributions Paid on Accrued Sick/Vacation Leave at Termination of Employment ...................... 20
4.6 Contributions Paid on Overtime Wages ........................................................................................... 20
4.7 Contributions Paid on Commissions and Tips ................................................................................... 20
4.8 Contributions are Not Assignable ..................................................................................................... 21
4.9 Application for Refund (Employee & Employer) (Form 515‐120) ..................................................... 21
4.10 Deadlines & Penalties ..................................................................................................................... 21
4.11 Limited Benefit ............................................................................................................................... 21
4.12 2.5% Step‐Up ................................................................................................................................. 22
4.13 Excess Benefit Plan ......................................................................................................................... 22
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CHAPTER 5: PAYROLL FOR LOCAL GOVERNMENT &
NON-STATE FINANCE OFFICE EMPLOYERS...............................................................................23
5.1 Membership Payroll & Monthly Report ............................................................................................ 23
5.2 Employer Contributions Deadline and Penalty ................................................................................. 25
5.3 Monthly Report Available Electronically ........................................................................................... 25
5.4 Certificate of Remittance (Form 515‐106) ........................................................................................ 25
5.5 Payment Remittal (Form 515‐107) ................................................................................................... 26
5.6 Employer's Report of Additions or Deletions (Form 515‐102) ......................................................... 26
CHAPTER 6: TERMINATION OF EMPLOYMENT & WITHDRAWAL OF CONTRIBUTIONS ............27
6.1 Introduction ..................................................................................................................................... 27
6.2 Leaving Contributions with OPERS.................................................................................................... 27
6.3 Withdrawing Contributions .............................................................................................................. 27
6.4 Withdrawal Payments and Rollovers ................................................................................................ 28
6.5 Cancellation of Payment & Return to Employment .......................................................................... 29
6.6 Taxation of Withdrawn Benefits ....................................................................................................... 29
6.7 Withdrawal Repayments .................................................................................................................. 30
6.8 Application for Withdrawal (Form 515‐118W) ................................................................................. 30
CHAPTER 7: CREDITED SERVICE ..............................................................................................31
7.1 Prior Service ..................................................................................................................................... 31
7.2 Participating Service ......................................................................................................................... 32
7.3 Part‐Time Participating Service ......................................................................................................... 32
7.4 Unused Sick Leave ............................................................................................................................. 32
7.5 Bonus Years of Participating Service ................................................................................................. 33
7.6 Full‐Time‐Equivalent Employment .................................................................................................... 33
CHAPTER 8: MILITARY SERVICE CREDIT ..................................................................................34
8.1 Crediting Military Service .................................................................................................................. 34
8.2 USERRA (Uniform Services Employment & Reemployment Rights Act) ........................................... 35
CHAPTER 9: REINSTATING, PURCHASING, AND TRANSPORTING SERVICE CREDIT ..................37
9.1 Reinstatement of Withdrawn Service ............................................................................................... 37
9.2 Purchase of Service Credit ................................................................................................................ 37
9.3 Reduction‐In‐Force (RIF) ................................................................................................................... 41
9.4 Involuntary Furlough ......................................................................................................................... 41
9.5 Transporting Service from the Oklahoma Teachers Retirement System .......................................... 42
9.6 Installment Payment Plan ................................................................................................................. 43
9.7 Actuarial Purchase Price ................................................................................................................... 44
CHAPTER 10: RETIREMENT BENEFIT ELIGIBILITY .....................................................................46
10.1 Normal Retirement ......................................................................................................................... 46
10.2 Early Retirement ............................................................................................................................. 47
10.3 Disability Retirement ...................................................................................................................... 47
10.4 Election of a Vested Benefit ............................................................................................................ 49
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CHAPTER 11: RETIREMENT NOTICE AND APPLICATION ..........................................................50
11.1 Introduction ................................................................................................................................... 50
11.2 Waiver of the 60‐Day Notification Requirement ............................................................................ 51
11.3 Retirement Notice & Application (Form 515‐117) .......................................................................... 51
11.4 Retirement Notice & Application for Hazardous Duty Members (Form 515‐117HD) .................... 53
11.5 Retirement Notice & Application for Elected Officials (Form 515‐117E) ........................................ 53
CHAPTER 12: FINAL UNUSED SICK LEAVE RECORD .................................................................54
CHAPTER 13: RETIREMENT OPTIONS ......................................................................................55
13.1 Introduction ................................................................................................................................... 55
13.2 Questions & Answers about the Reduction Factor Tables ............................................................. 57
13.3 Changing a Retirement Option after Retirement ........................................................................... 58
13.4 Medicare Gap Benefit Option ......................................................................................................... 58
TABLE 1: EARLY RETIREMENT REDUCTION FACTORS .............................................................................. 60
TABLE 2: REDUCTION FACTORS FOR RETIREMENT OPTION A ................................................................ 61
TABLE 3: REDUCTION FACTORS FOR RETIREMENT OPTION B ................................................................ 62
TABLE 4: REDUCTION FACTORS FOR RETIREMENT OPTION C ................................................................ 63
CHAPTER 14: CALCULATION OF RETIREMENT BENEFITS .........................................................64
14.1 Introduction ................................................................................................................................... 64
14.2 Deductions from Salary While Employed ....................................................................................... 65
14.3 Early (Reduced) Retirement Benefits .............................................................................................. 65
14.4 Combining Elected and Non‐Elected Participating Service ............................................................. 65
14.5 Part‐Time Employment ................................................................................................................... 66
14.6 Limitations on Retirement Benefits ................................................................................................ 66
14.7 2.5% Step‐Up ................................................................................................................................. 66
CHAPTER 15: RETIREMENT BENEFIT CALCULATION EXAMPLES ..............................................70
Retirement Benefit Worksheet ................................................................................................................ 72
CHAPTER 16: TAXATION OF RETIREMENT BENEFITS ...............................................................73
16.1 Oklahoma State Income Tax ........................................................................................................... 73
16.2 Federal Income Tax ......................................................................................................................... 73
CHAPTER 17: GROUP INSURANCE AFTER RETIREMENT ..........................................................74
CHAPTER 18: INSURANCE FOR RETIREES RETURNING TO WORK ............................................76
CHAPTER 19: POST-RETIREMENT EMPLOYMENT ....................................................................77
19.1 Post‐Retirement Employment (Form 515‐117B) ............................................................................ 79
19.2 Contract Employment ..................................................................................................................... 79
19.3 Termination of Post‐Retirement Employment (Form 515‐178) ..................................................... 79
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CHAPTER 20: BENEFICIARY DESIGNATION ..............................................................................80
CHAPTER 21: BENEFICIARY CHANGES.....................................................................................81
21.1 Change or Designation of Beneficiary ............................................................................................ 81
21.2 Divorce ........................................................................................................................................... 81
CHAPTER 22: BENEFITS UPON THE DEATH OF AN ACTIVE OR VESTED MEMBER .....................82
22.1 Taxation of Distribution of a Member’s Accumulated Contributions............................................. 82
22.2 Beneficiary's Application For Death Benefit (Form 515‐123E) ....................................................... 82
CHAPTER 23: PROBATE WAIVERS ...........................................................................................83
CHAPTER 24: BENEFITS UPON THE DEATH OF A RETIRED MEMBER ........................................84
24.1 $5,000 Death Benefit ...................................................................................................................... 84
24.2 Taxation ......................................................................................................................................... 84
24.3 Additional Distributions .................................................................................................................. 84
24.4 Applying for Retired Member Death Benefits ................................................................................ 85
CHAPTER 25: HAZARDOUS DUTY PROVISIONS .......................................................................86
25.1 Membership ................................................................................................................................... 86
25.2 Contributions ................................................................................................................................ 86
25.3 Purchase of Incentive Credit ........................................................................................................... 87
25.4 Eligibility for Retirement ................................................................................................................. 87
25.5 Retirement Benefit Calculation for Hazardous Duty Members ...................................................... 89
25.6 Retirement Benefit Calculation for Former Hazardous Duty Members ......................................... 89
25.7 Retirement Options ........................................................................................................................ 89
25.8 Retirement Notice and Application for Hazardous Duty Members (Form 515‐117HD) ................. 89
25.9 In‐The‐Line‐Of‐Duty Benefit ............................................................................................................ 89
25.10 Fugitive Apprehension Agents (FAA) ............................................................................................ 90
25.11 Oklahoma Military Department (OMD) Firefighters ..................................................................... 90
CHAPTER 26: LEGISLATIVE SESSION EMPLOYEES ....................................................................91
CHAPTER 27: ELECTED OFFICIALS ...........................................................................................92
27.1 Membership ................................................................................................................................... 92
27.2 Contributions ................................................................................................................................. 92
27.3 Increase of Contribution Rate ......................................................................................................... 93
27.4 Credited Service .............................................................................................................................. 93
27.5 Eligibility for Retirement ................................................................................................................. 94
27.6 Retirement Options ........................................................................................................................ 95
27.7 Election of a Vested Benefit ............................................................................................................ 95
27.8 Survivor Benefits ............................................................................................................................. 95
27.9 Retirement Notice and Application: Elected Officials (Form 515‐117E) ........................................ 95
27.10 Calculation of Retirement Benefits: Elected Officials .................................................................. 96
27.11 Participating Service as a Non‐Elected Employee ......................................................................... 97
TABLE 5: EARLY RETIREMENT REDUCTION FACTORS FOR ELECTED OFFICIALS ...................................... 98
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GLOSSARY OF RETIREMENT TERMS ........................................................................................99
PARTICIPATING OPERS EMPLOYERS ..................................................................................... 104
INDEX .................................................................................................................................. 109
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OKLAHOMA PUBLIC EMPLOYEES RETIREMENT SYSTEM
BOARD OF TRUSTEES
Don Kilpatrick, Chairman
Appointee of the President Pro Tempore of the Senate
Steve Paris, Vice Chairman
Appointee of the Governor
Michael D. Evans
Appointee of the Supreme Court
Jonathan Barry Forman
Appointee of the Governor
Jill Geiger
Designee of State Finance Director
James R. “Rusty” Hale
Appointee of the Speaker of the House of Representatives
Oscar B. Jackson, Jr.
Administrator of the Office of Personnel Management
Thomas E. Kemp, Jr.
Member of Tax Commission selected by Commission
Brian Maddy
Appointee of the President Pro Tempore of the Senate
DeWayne McAnally
Appointee of the Governor
Dana Murphy
Member of Corporation Commission selected by Commission
Frank Stone
Designee of the State Insurance Commissioner
Vacant
Appointee of the Speaker of the House of Representatives
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ABOUT THIS MANUAL
This manual is a summary of the provisions of the Oklahoma Public Employees Retirement System’s
defined benefit plan, written in layperson’s terms. It is not a plan document. As much as possible, this
manual has been written without technical terms, avoiding the formal language of the retirement laws
and rules. The Oklahoma Public Employees Retirement System reserves the right to correct any errors
contained herein to comply with federal or state statutes, rules, and regulations that govern the Plan.
Any information contained in the manual that refers to federal or state tax regulations is not intended to
be tax advice. Members or participants are encouraged to consult a professional tax advisor before
receiving any distribution from the plans mentioned in this booklet. If questions of interpretation arise
as a result of the attempt to make the retirement provisions easy to understand, federal and state law,
rules and regulations remain the final authority.
The information contained in this manual is made available as a public service. No information provided
is intended to constitute legal or investment advice. While we have made every attempt to provide
correct information, we do not guarantee the accuracy of information, or the accuracy of other
publications referenced herein. No one shall be entitled to claim detrimental reliance on any
information herein.
The information provided in this manual is based on the Oklahoma Public Employees Retirement System
laws and rules in existence as of July 1, 2010 and subject to change or modification based on changes in
law, rule, or policy.
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A MESSAGE FROM THE EXECUTIVE DIRECTOR
Dear Retirement Coordinator:
At the Oklahoma Public Employees Retirement System, we have committed ourselves to customer
service, teamwork and communication. As the retirement coordinator for your agency, you are a vital
part of our extended OPERS team and a partner in communicating effectively with our active
membership.
One of your primary responsibilities is to distribute retirement‐related information to the employees in
your agency and be available for questions. Among the types of OPERS communications you will be
required to distribute are the member handbook and all official notices. There are also a variety of
enrollment and payroll procedures and other duties that you must perform. This manual is designed to
help you effectively fulfill your responsibilities and answer questions from the employees of your
agency.
We believe this manual will allow you to properly carry out your duties in nearly every situation you will
face as a retirement coordinator. However, if you find that not all issues and problems that you face are
addressed in this publication or if you encounter a problem or issue that is too complex or difficult to
handle, please do not hesitate to call us and ask for assistance. A list of staff members and their
telephone numbers is provided on the next page. You can reach us by phone at 1‐800‐733‐9008 or (405)
858‐6737 in the OKC area. Our website address is www.opers.ok.gov.
We know that many of you wear a variety of “hats” in your job – and that being retirement coordinator
is just one of them. Your dedication to this important role is very much appreciated!
Sincerely,
Tom Spencer
Executive Director
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CONTACT INFORMATION
P.O. Box 53007 Oklahoma City, Oklahoma 73152‐3007
(800) 733‐9008 toll‐free (405) 858‐6737 okc area (405) 848‐5946 fax
www.opers.ok.gov
Active Member Issues Questions regarding enrollments, service credit, purchases of service, vesting, benefit
estimates, or active member deaths
Kristen Lancaster 858‐6736 klancaster@opers.ok.gov
Lloyd Thompson 858‐6778 lthompson@opers.ok.gov
Njambi Keenan 858‐6756 nkeenan@opers.ok.gov
Thy Tran 858‐6738 ttran@opers.ok.gov
Billy Cox 858‐6767 bcox@opers.ok.gov
Termination Issues Questions regarding withdrawal or rollover of member contributions or applying to vest for
future benefits
Margie Kelley 858‐6771 mkelley@opers.ok.gov
Charles Bachle 858‐6728 cbachle@opers.ok.gov
Christi Koehn 858‐6729 ckoehn@opers.ok.gov
Seminars Questions regarding seminar dates and enrollment
Toll Free (800) 733‐9008
Local (OKC area) 858‐6737
New Retiree Issues Questions for those members currently going through the retirement process regarding vital
documents, setting up tax withholding and direct deposit
Karen Anderson 858‐6774 kanderson@opers.ok.gov
Colleen Cook 858‐6775 ccook@opers.ok.gov
Nelda Nance 858‐6715 nnance@opers.ok.gov
James Small 858‐6779 jsmall@opers.ok.gov
Anna Stetnish 858‐6777 astetnish@opers.ok.gov
Retiree Issues Questions for those members already retired regarding changing tax withholding and direct
deposit instructions, or retired member deaths
Dennis French 858‐6722 dfrench@opers.ok.gov
Tanna Harrington 858‐6727 tharrington@opers.ok.gov
Shelly Owens 858‐6782 sowens@opers.ok.gov
Forms Ordering forms by phone or online/Pre‐Retirement Seminar inquiries
Mark Wehling 858‐6795 mwehling@opers.ok.gov
www.opers.ok.gov/online‐form‐orders
Call Center Teresa Moore 858‐6723 tmoore@opers.ok.gov
Gaye Williams 858‐6758 gwilliams@opers.ok.gov
Other OPERS Contacts Rebecca Catlett 858‐6770 rcatlett@opers.ok.gov
Patrick W. Lane 858‐6720 plane@opers.ok.gov
Linda Webb 858‐6794 lwebb@opers.ok.gov
SoonerSave Questions regarding SoonerSave 401(a) and 457 Plans participation
Andrea Gabel 858‐6796 agabel@opers.ok.gov
Marva Parsons 858‐6705 mparsons@opers.ok.gov
Chris Jones 858‐6781 cjones@opers.ok.gov
Ray Pool 858‐6710 rpool@opers.ok.gov
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DRIVING DIRECTIONS TO OPERS OFFICES
The OPERS office is not actually accessible from the Broadway Extension. Our office is only accessible
via Robinson Avenue, which is one block west of the Broadway Extension (US-77/I-235), as shown on
the map below. Visitors are advised to use one of the driving routes explained on this page rather than
trying to obtain driving directions using online mapping services.
Driving from the North
Travel south on I‐35 to the I‐44 West exit (#133) to Lawton/Amarillo. Merge onto I‐44 W. Take the I‐
235/US‐77 North exit (#127), towards Edmond. Keep right at the fork in the ramp then immediately take
the 63rd street exit. Use caution. At the light, turn left. Take the inside lane on 63rd street one block
west to the light at Robinson. Make a left and continue to the Paragon Building.
From the South
Travel north on I‐35 to I‐235 North (the State Capitol/Edmond exit) which becomes Broadway Extension.
Merge into the right lane prior to the 63rd Street exit but use caution. Look for merging traffic. Exit to
63rd Street. Turn left at the light on 63rd Street. Take the inside lane on 63rd street one block west to
the light at Robinson. Make a left and continue to the Paragon Building.
From the East or West
Travel on I‐40 to I‐235 North (the State Capitol/ Edmond exit) which becomes Broadway Extension.
Merge into the right lane prior to the 63rd Street exit but use caution. Look for merging traffic. Exit to
63rd Street. Turn left at the light on 63rd Street. Take the inside lane on 63rd street one block west to
the light at Robinson. Make a left and continue to the Paragon Building.
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CHAPTER 1: RETIREMENT COORDINATOR RESPONSIBILITIES
The Appointing Authority of each state agency and the governing body of any participating county, city,
town, county hospital, or emergency medical district shall designate a Retirement Coordinator and at
least one alternate coordinator to serve as a representative between OPERS and the participating
employer. The Retirement Coordinator shall be responsible for the proper enrollment of members and
completion of the various forms necessary for the operation of OPERS in accordance with the
Retirement Coordinator’s Manual. Any information provided by a Retirement Coordinator will not
supersede or modify the statutes or rules and regulations governing OPERS.
1.1 PREPARATION & IDENTIFICATION OF DOCUMENTS
All retirement documents prepared by a Retirement Coordinator concerning any employee should be
prepared in duplicate. The Retirement Coordinator always should keep a copy of every document for his
or her files. Please see that all correspondence has the employee’s name and Social Security number as
well as the agency’s name. It is important that every form that requires a signature contain an original
signature in ink, not a copy created by a copy machine or a facsimile machine.
Retirement Coordinators are responsible for ensuring that each participating OPERS member is provided
the most current Member Handbook and all other Official Notices from OPERS. Each Retirement
Coordinator must establish and maintain sufficient documentation to verify compliance with this rule
and shall furnish it upon request by OPERS (OAC 590 § 1‐1.5).
1.2 FALSE STATEMENTS
“Any person who shall knowingly make false statements, or who shall falsify or permit to be falsified any
record necessary for carrying out the intent of the Retirement System law for the purpose of committing
fraud, shall be guilty of a misdemeanor, and upon conviction, shall be punished by a fine not exceeding
Five Hundred Dollars ($500) or by imprisonment for not exceeding one year . . .” (74 O.S. §924, as may
be amended).
1.3 CONFIDENTIAL INFORMATION
OPERS strives to protect the confidentiality of information contained in a member’s file. Though it has
long been the practice of OPERS to avoid discussing personal information over the telephone, our aim is
to provide accurate and timely information that meets the needs of our members. In an effort to be
flexible in this regard, some information may be discussed over the telephone with members. Those
members must verify their identity by providing accurate confidential information when asked. The
caller must provide information that is consistent with the member’s information in our computer
records to verify his or her identity. OPERS staff members may decline to provide information in any
instance where they feel there is a confidentiality risk, or if the caller does not sufficiently verify his or
her identity.
Certain member information will be disclosed without the member’s consent if requested in writing for a
specific purpose. The disclosed member information may include:
 Name;
 Age;
 Amount of contributions paid;
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 Benefits being paid (and verifying documents); and,
 Amount of credited service (and verifying documents).
All other information related to a member, as kept in his or her retirement file, shall be kept confidential
unless the member has consented in writing to its release. Any information in a member’s retirement
file is subject to subpoenas or court order.
1.4 ACTIVE MEMBER NAME CHANGE
OPERS no longer requires written confirmation and/or documentation from an active member when a
name change occurs. The system will update the new name from the payroll records. Please make sure
that the member’s information is correct on your payroll reports.
Vested and retired members will need to provide a written request and documentation to make a name
change.
 While OPERS no longer requires documentation to change a name, it is still a good idea for the member to send us those
documents. At retirement, it is likely we will request verification of the name change if it differs from member records.
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CHAPTER 2: RESPONSIBILITIES OF MEMBERSHIP
2.1 HEARINGS BEFORE THE BOARD OF TRUSTEES
Title 74, Section 904 of the Oklahoma Statutes governing OPERS makes provision for aggrieved persons
to have an administrative hearing to address their grievance. This procedure is available to appeal any
administrative action of the agency. A request for a hearing must be submitted in writing to the
Executive Director at the OPERS office in Oklahoma City within 30 days of notice of the action from
which the person is appealing. The request for a hearing should clearly set forth the facts and the basis
for the grievance, along with the relief requested.
The hearing procedures can be found in the Permanent Rules at 590:1‐1‐6. A hearing examiner will
conduct the evidentiary hearing with the Board of Trustees issuing the Final Order. The hearing shall be
conducted in accordance with the Administrative Procedures Act as provided for in 75 O.S.2001, sections
250 through 323, as amended. This is the exclusive remedy for aggrieved persons. As a general rule,
no court action can be pursued until this remedy is exhausted.
2.2 FORFEITURE OF BENEFITS
As a public employee, honorable service is a condition of both employment and the receipt of any
employment related benefits. Title 51 of the Oklahoma Statutes, Section 24.1 provides, among other
things, for the forfeiture of an OPERS member’s retirement benefits if the member is convicted of, or
pleads guilty or nolo contendere to, a felony or other crime which violates that member’s oath of office.
Benefits will not be forfeited if the member successfully completes a deferred sentence; however, he or
she will not be eligible to receive benefits while serving the deferred sentence.
Forfeiture applies to all benefits accrued after September of 1981, but does not include the member’s
contributions to OPERS. The statute prevents vesting of the member’s right to receive retirement
benefits if certain offenses are committed prior to retirement. However, benefit forfeiture can also
occur after retirement if the offense occurred while the member was a public employee, even if he or
she was not convicted until after retirement.
2.3 ADDRESS CHANGES
It is important that members notify OPERS of mailing address changes. Members who change their
address should submit a Change of Address form (Form 515‐160). OPERS accepts mailing address
changes for active or vested members by fax. Originals and faxes must have the member’s name, Social
Security number and bear a signature.
2.4 BENEFICIARY CHANGES
When a new employee is enrolled in OPERS, he or she is required to designate a primary and contingent
beneficiary on the Active Member Designation of Beneficiary form (Form 515‐116AV). The designation
of a beneficiary is extremely important because it allows OPERS, upon the death of the member, to pay a
member’s accumulated contributions. Furthermore, in the event of the death of a retired member, a
beneficiary designation allows OPERS to pay a death benefit to a person chosen by the member.
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Retirement Coordinators should encourage members to keep their beneficiary designations current,
and provide Form 515-116AV to active members. Vested and retired members should be instructed to
contact OPERS directly for the correct form(s). See CHAPTER 20: BENEFICIARY DESIGNATION for
designation guidelines.
2.5 CORRESPONDENCE
In all correspondence with OPERS, members are encouraged to provide their full name, Social Security
number, the name of the agency they work for, a current mailing address and their signature. The
Member Request form (Form 515‐135) has been created for those members who need information
about their accumulated contributions, accrued service credit, or those who would like to purchase
service credit, or request a retirement benefit estimate.
2.6 DIVORCE
Valuation of a Retirement Benefit
Members who are in the process of obtaining a divorce often request that OPERS calculate the value of
their retirement benefit. If a member does not have enough service credit to be eligible to elect a
vested benefit, OPERS can only provide the amount of the member’s accumulated contributions. If the
member has enough service credit to be eligible to elect a vested benefit, OPERS cannot determine the
present value of his or her retirement benefit. However, OPERS will, upon request, provide the amount
of monthly benefits the member would receive based on his or her service to date and the date he or
she would be eligible to receive them.
This information can be obtained from OPERS approximately 14 days after receipt of the request.
OPERS will not release this information to an attorney or spouse without the member’s written
consent. This information will not be released over the telephone under any circumstances.
Qualified Domestic Relations Orders (QDRO)
Benefits under OPERS cannot be assigned or alienated. However, OPERS may comply with a state court
order requiring benefit payments to a spouse, former spouse or for the support of a minor child or
children if the order meets the statutory criteria for a Qualified Domestic Relations Order (QDRO). (See
20 O.S. §1111.) The QDRO must be approved and filed with OPERS to be enforceable. Members are
encouraged to have their attorney submit a draft of the QDRO to OPERS for approval prior to obtaining
the final order.
2.7 ROLLOVERS INTO THE OPERS DEFINED BENEFIT PLAN
A member may request that OPERS accept a transfer/rollover from an eligible plan or Individual
Retirement Account (IRA) and deposit it in the defined benefit plan for the purpose of repaying a
withdrawal or to purchase eligible service credit. OPERS will provide the appropriate form upon request.
If members wish to roll over funds into one of the plans administered by SoonerSave, they should
contact SoonerSave.
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CHAPTER 3: ELIGIBILITY FOR MEMBERSHIP
3.1 MEMBERSHIP REQUIREMENTS
Each new employee of a participating employer becomes a member of OPERS on the first day of the
month immediately following the date of employment, provided all three following requirements are
met:
A. The position the employee holds is permanent, not seasonal or temporary (Please note that in
light of the fact that there are many different variations of employment status, the
determination as to the status of the employee is left to the discretion of the participating
employer. Caution should be exercised in determining an employee’s status and any potential
errors should be avoided by favoring participation in OPERS over non‐participation. Employer
questions as to an employee’s membership eligibility because of doubt in an employee’s status
should be directed to OPERS.);
AND
B. The position the employee holds requires at least 1,000 hours work per year (within 12 months
after the first day of employment);
AND
C. The salary of a full-time employee must be equal to or greater than the minimum wage.
Employees who meet these three requirements above are eligible for membership. With limited
exceptions, membership is mandatory for all employees who are eligible.
A. The age of an employee is not a factor in determining eligibility for membership in OPERS.
B. For eligible employees, membership is a condition of continuing employment.
C. Members of OPERS whose hours worked and/or salary earned falls below eligibility levels after
they have established eligibility in OPERS (with no break in service) remain eligible for
participation and must continue to participate.
Special provisions for determining eligibility
A. Any eligible employee of a county superintendent of schools who is not currently participating in
the Teachers Retirement System shall be a member of OPERS.
B. Any retired member of a reserve or regular component of one of the Armed Services of the
United States is eligible.
C. Those persons currently receiving or eligible to receive pensions for service rendered as a
volunteer fireman are eligible to participate in OPERS.
D. An employee who has retired from another retirement system authorized by the laws of the
state of Oklahoma is eligible for membership including the:
 Oklahoma Firefighters Pension and Retirement System;
 Oklahoma Police Pension and Retirement System;
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 Uniform Retirement System for Justices and Judges;
 Oklahoma Law Enforcement Retirement System; or
 Oklahoma Teachers Retirement System.
E. All officers, appointees or employees of the offices of the District Attorneys shall participate in
OPERS except those employed in Oklahoma and Tulsa counties and who are already
participating in that county's retirement plan.
F. OPERS retirees who return to work for a participating employer after retirement must
participate regardless of the number of hours worked, salary earned or even if their
employment is temporary, seasonal, or part‐time. Participation begins the first day of
reemployment. As a Retirement Coordinator, it is very important that you determine where
your new employees have previously been employed and whether or not they have retired from
OPERS. For more information, refer to Chapter 19: Post‐Retirement Employment.
G. OPERS members who leave employment and participation in OPERS and do not withdraw their
contributions must resume participation in OPERS on the first day of their new employment in
an eligible position. Such a return to employment cancels any application for withdrawal.
H. County Election Board Secretaries are considered full‐time employees and are eligible to
participate in OPERS. Other employees of the Election Board Office who are part‐time
employees (less than 40 hours work per week) accrue service credit according to the actual
hours worked.
I. Employees of the Housing Finance Agency hired prior to July 1, 1997, may elect to continue
benefits under the benefits plan provided by the Housing Finance Agency. Employees of the
Housing Finance Agency hired on or after July 1, 1997, must participate in OPERS. For more
information about the rights of Housing Finance Agency employees hired before July 1, 1997,
contact OPERS.
J. Employees of the George Nigh Rehabilitation Institute who elected to retain membership in
OPERS by January 1, 2000, are considered eligible members.
K. Former employees of the Medical Technology and Research Authority (MTRA) who elected to
retain membership in OPERS by December 31, 2001, are considered eligible members.
L. Employees of the Quartz Mountain Center who elected to retain membership in OPERS by
January 15, 2002, are considered eligible members.
Membership Ineligibility
A. Employees of county extension offices were transferred to the Teachers Retirement System July
1, 1987. They are no longer eligible for membership in OPERS.
B. An OPERS member is not allowed to simultaneously participate in OPERS and in another
Oklahoma state retirement system on the same job (position).
C. Employees who are making contributions to the Federal Civil Service Retirement System on any
job are ineligible for membership in OPERS.
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Optional Membership
A. Effective January 1, 1989, and after, membership in OPERS is optional for temporary employees
of the State Senate, the House of Representatives, or Legislative Services for the full duration of
a regular legislative session. However, once the employee chooses to participate or not to
participate in OPERS, that choice shall be binding for all future legislative sessions. The
employee shall receive six months of full‐time participating service for each full regular session
in which he or she participates.
B. Membership is optional for state and county elected officials who are otherwise eligible to
become members of OPERS. However, all county elected officials who were participating in
OPERS as of July 1, 1988, are required by law to continue membership and to participate as
elected officials. (See Chapter 27 for more information about elected officials.)
3.2 WHEN TO BEGIN CONTRIBUTIONS
The Rules
An employee who has never been a member of OPERS begins paying contributions to OPERS the first of
the month following the date he or she was hired in an eligible position. The employer must also begin
paying contributions to OPERS the first day of the month following the date the employee was hired.
However, employees who are already OPERS members when they are hired in an eligible position must
begin paying contributions the first day they are hired. Likewise, employer contributions begin the first
day the employee is hired. Failure to pay contributions may be very costly. The employer is responsible
for all employee and employer costs when an error in participation occurs. This employer responsibility
also applies to any failure to withhold additional Step‐Up contributions when a member has elected the
Step‐Up Option.
The Law
An OPERS member is defined as an “eligible employee or elected official who is in the System and is
making the required employee or elected official contributions, or any former employee or elected
official who shall have made the required contributions to the System and shall have not received a
refund or withdrawal.” 74 O.S.Supp. 1997 §902(22) Employees are eligible for membership in OPERS if
their “employment is not seasonal or temporary and . . . [they work] at least one thousand (1,000) hours
. . . per year and [their] salary or wage is equal to the hourly rate of the monthly minimum wage . . . .” 74
O.S.Supp. 1997 §902(14)
Each eligible employee “shall be a member of OPERS on the first day of the month immediately following
employment.” 74 O.S.Supp. 1997 §911(2) When an eligible employee does become a member, the
participating employer is required to pay contributions “monthly, or as the Board may otherwise
provide, to the Executive Director for deposit in the Oklahoma Public Employees Retirement Fund.” 74
O.S.Supp. 1997 §919.1(2).
In summary, if the employee is not an OPERS member when he or she is hired by a participating
employer, the employee does not become a member until the first day of the month immediately
following employment. Then, each and every month the employee earns salary, the participating
employer is obligated to pay employer and employee contributions. This continues as long as the
employee retains membership in OPERS and continues to earn salary with a participating employer.
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Example: Barbara began her career with Employer A, an OPERS participating employer. Since Barbara
was not an OPERS member before, Employer A did not have to pay employee and employer
contributions to OPERS until the month following the date Employer A hired Barbara. After working with
Employer A for three years, Barbara terminates her employment and chooses to not withdraw her
accumulated contributions from OPERS. Employer B, another OPERS participating employer, then hires
Barbara in an eligible position. Because Barbara did not withdraw her accumulated contributions, she
still retains her OPERS membership. Thus, Barbara is still an OPERS member when Employer B hires her,
so Employer B must pay employer and employee contributions for her, beginning the first day of her
employment with Employer B.
If Barbara had withdrawn her accumulated contributions after she terminated her employment with
Employer A, she would have no longer been an OPERS member. Under this scenario, when Barbara was
later employed by Employer B, she would not contribute again until the first day of the month
immediately after employment with Employer B. Employer B would not pay contributions to OPERS on
behalf of Barbara until the month immediately following her employment.
Contact OPERS
If you do not know when an employee is eligible to begin contributing, contact the Member Services
division of OPERS for instructions.
3.3 ENROLLMENT PROCESS
How to enroll a new employee in the Oklahoma Public Employees Retirement System:
A. Make sure the new employee is eligible. If eligible, membership is mandatory. (See 3.2: When
to Begin Contributions.) NOTE: A probationary period is still considered permanent
employment.
B. Use the secure online employer website to enroll a new employee. When verifying
employment data, list participating service the employee had with any other participating
employer. As the Retirement Coordinator, your user name and password are used in place of a
signature.
C. The accuracy of the Social Security number should be checked against the number that is on
the payroll and the employee’s Social Security card. It is best to obtain a copy of the
employee’s Social Security card. If the employee furnishes proof of birth, provide it for
verification.
D. Members should be enrolled in a timely manner. The enrollment information can be printed
from the website and you should retain a copy for your personnel records. It is your
responsibility as Retirement Coordinator to inform the employee that contributions will be
deducted.
E. Beneficiary designations are not submitted online. Inform the employee that in the event of
death, OPERS must have a Designation of Beneficiary Form (Form 515‐116AV) in order to return
the contributions to the designated beneficiary. Please follow up to make sure that the member
has completed a Designation of Beneficiary Form correctly verifying required information (such
as Social Security numbers, addresses of beneficiaries, etc.).
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F. You should strongly advise all payroll clerks to determine the Step-Up election status of
employees who are newly hired or who transfer from another OPERS participating employer
before adding them to the payroll. If necessary, call our Member Services division and one of
our representatives can check this information.
IMPORTANT: Errors can be costly! If an employee has previously elected the Step‐Up and the
employer does not withhold retirement contributions at the Step‐Up rate (currently an additional
2.91%) from the first day of employment, state law requires the employer to pay the unpaid
employee contributions – plus interest – when the error is discovered.
For more information about the Step‐Up program, see page 68.
NOTE: Effective July 1, 2009, paper enrollments forms are no longer accepted. All enrollments must be
submitted online.
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CHAPTER 4: MONTHLY MEMBER & PARTICIPATING EMPLOYER CONTRIBUTIONS
4.1 HISTORY OF STATE AGENCY & MEMBER CONTRIBUTION RATES
Below you will find a history of OPERS contribution rates.
January 1, 1964 through June 30, 1968
Based on $6,600 Maximum Salary Cap
$0 to $4,500 $4,500 to $6,600
Employee Employer Total Employee Employer Total
3.0% 3.0% 6.0% 4.0% 3.0% 7.0%
July 1, 1968 through May 31, 1969
Based on $7,800 Maximum Salary Cap
$0 to $4,500 $4,500 to $7,800
Employee Employer Total Employee Employer Total
3.0% 3.0% 6.0% 4.0% 3.0% 7.0%
June 1, 1969 through June 30, 1970
Based on $7,800 Maximum Salary Cap
$0 to $4,500 $4,500 to $7,800
Employee Employer Total Employee Employer Total
3.0% 5.0% 8.0% 4.0% 5.0% 9.0%
July 1, 1970 through June 30, 1972
Based on $12,000 Maximum Salary Cap
Employee Employer Total
4% 6% 10%
July 1, 1972 through June 30, 1976
Based on $12,000 Maximum Salary Cap
Employee Employer Total
0% 10% 10%
July 1, 1976 through June 30, 1977
Based on $15,000 Maximum Salary Cap
Employee Employer Total
1% 10% 11%
July 1, 1977 through June 30, 1979
Based on $15,000 Maximum Salary Cap
Employee Employer Total
0% 13% 13%
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July 1, 1979 through June 30, 1980
Based on $15,000 Maximum Salary Cap
Employee Employer Total
0% 14% 14%
July 1, 1980 through June 30, 1981
Based on $16,600 Maximum Salary Cap
Employee Employer Total
0% 14% 14%
July 1, 1981 through June 30, 1982
Based on $18,900 Maximum Salary Cap
Employee Employer Total
1% 14% 15%
July 1, 1982 through June 30, 1987
Based on $25,000 Maximum Salary Cap
Employee Employer Total
2% 14% 16%
July 1, 1987 through June 30, 1988
Based on $40,000 Optional Maximum Salary Cap
$0 to $25,000 $25,000 to $40,000
Employee Employer Total Employee Employer Total
0.0% 8.0% 8.0% 10.0% 8.0% 18.0%
July 1, 1988 through June 30, 1990
Based on $40,000 Optional Maximum Salary Cap
$0 to $25,000 $25,000 to $40,000
Employee Employer Total Employee Employer Total
2.0% 14.0% 16.0% 10.0% 14.0% 24.0%
July 1, 1990 through June 30, 1991
Based on $40,000 Optional Maximum Salary Cap
$0 to $25,000 $25,000 to $40,000
Employee Employer Total Employee Employer Total
2.0% 10.5% 12.5% 10.0% 10.5% 20.5%
July 1, 1991 through June 30, 1994
Based on $40,000 Optional Maximum Salary Cap
$0 to $25,000 $25,000 to $40,000
Employee Employer Total Employee Employer Total
2.0% 11.5% 13.5% 10.0% 11.5% 21.5%
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July 1, 1994 through June 30, 1995
Based on $50,000 Maximum Salary Cap
$0 to $25,000 $25,000 to $40,000 $40,000 to $50,000
Employee Employer Total Employee Employer Total Employee Employer Total
2.0% 11.5% 13.5% 3.5% 11.5% 15% 10.0% 0.0% 10.0%
July 1, 1995 through June 30, 1996
Based on $60,000 Maximum Salary Cap
$0 to $25,000 Over $25,000
Employee Employer Total Employee Employer Total
2.0% 11.5% 13.5% 3.5% 11.5% 15.0%
Maximum Monthly Amounts
$41.67 $239.58 $281.25 $102.08 $335.42 $437.50
July 1, 1996 through June 30, 1997
Based on $70,000 Maximum Salary Cap
$0 to $25,000 Over $25,000
Employee Employer Total Employee Employer Total
2.5% 12% 14.5% 3.5% 12% 15.5%
Maximum Monthly Amounts
$52.08 $250 $302.08 $131.25 $450 $581.25
July 1, 1997 through June 30, 1998
Based on $80,000 Maximum Salary Cap
$0 to $25,000 Over $25,000
Employee Employer Total Employee Employer Total
3.0% 12.5% 15.5% 3.5% 12.5% 16%
Maximum Monthly Amounts
$62.50 $260.42 $322.92 $160.41 $573.91 $733.32
July 1, 1998 through June 30, 1999
$0 to $25,000 Over $25,000
Employee Employer Total Employee Employer Total
3.0% 12.5% 15.5% 3.5% 12.5% 16%
Maximum Monthly Amounts
$62.50 $260.42 $322.92
July 1, 1999 through June 30, 2005
$0 to $25,000 Over $25,000
Employee Employer Total Employee Employer Total
3.0% 10% 13% 3.5% 10% 13.5%
Maximum Monthly Amounts
$62.50 $208.33 $270.83
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July 1, 2005 through June 30, 2006
$0 to $25,000 Over $25,000
Employee Employer Total Employee Employer Total
3.0% 11.5% 14.5% 3.5% 11.5% 15%
Maximum Monthly Amounts
$62.50 $208.33 $270.83
July 1, 2006 through June 30, 2007
Employee Employer Total
3.5% 12.5% 16%
July 1, 2007 through June 30, 2008
Employee Employer Total
3.5% 13.5% 17%
July 1, 2008 through June 30, 2009
Employee Employer Total
3.5% 14.5% 18%
July 1, 2009 through June 30, 2011
Employee Employer Total
3.5% 15.5% 19%
4.2 STATE AGENCY & MEMBER CONTRIBUTION RATES
The contribution rates for state agencies and their employees are given below.
July 1, 2011 through June 30, 2012
Employee Employer Total
3.5% 16.5% 20%
2.5% Step-Up
Members may also make an irrevocable election to increase or “step‐up” their benefit computation
factor from 2.0% to 2.5%. A higher retirement contribution rate (currently an additional 2.91%) is
required of the members making this election. For more information about this provision, see Section
14.7 on page 68.
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4.3 LOCAL GOVERNMENT & NON-STATE FINANCE AGENCY CONTRIBUTION RATES
Contributions for local government employers and their employees for July 1, 2011, are given in the
tables on page 18. Local government employers can elect the rate at which the organization will
contribute and the rate each employee will contribute subject to certain minimum and maximum
contribution rates. Employer contribution rates for Regular Local Government Employees cannot exceed
16.5% and cannot be less than 11.5%. For the fiscal year ending June 30, 2011, the total employer and
employee contributions are 20%. The table shows the different contribution rate combinations which
local government organizations may choose for Regular Local Government Employees. Each mix has a
letter code that identifies that combination.
OPERS Code Employer Employee Total
C 11.5% 8.5% 20.0%
Z 12.0% 8.0% 20.0%
F 12.5% 7.5% 20.0%
G 13.0% 7.0% 20.0%
H 13.5% 6.5% 20.0%
U 14.0% 6.0% 20.0%
I 14.5% 5.5% 20.0%
L 15.0% 5.0% 20.0%
N 15.5% 4.5% 20.0%
T 16.0% 4.0% 20.0%
P 16.5% 3.5% 20.0%
For those employees participating in the 2.5% Step‐Up (See Section 14.7, page 67), a “W” must precede
the above letter code. See Table below:
OPERS Code Employer Employee Total
WC 11.5% 8.5% + 2.91% = 11.41% 22.91%
WZ 12.0% 8.0% + 2.91% = 10.91% 22.91%
WF 12.5% 7.5% + 2.91% = 10.41% 22.91%
WG 13.0% 7.0% + 2.91% = 9.91% 22.91%
WH 13.5% 6.5% + 2.91% = 9.41% 22.91%
WU 14.0% 6.0% + 2.91% = 8.91% 22.91%
WI 14.5% 5.5% + 2.91% = 8.41% 22.91%
WL 15.0% 5.0% + 2.91% = 7.91% 22.91%
WN 15.5% 4.5% + 2.91% = 7.41% 22.91%
WT 16.0% 4.0% + 2.91% = 6.91% 22.91%
WP 16.5% 3.5% + 2.91% = 6.41% 22.91%
For non-state agency employers, all contributions and documentation are due on or before the 15th of
the month following the month for which the contributions are payable. If the contributions are paid
over 30 days after the due dates, they are subject to a late charge of 1.5% of the unpaid balance.
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4.4 LOCAL GOVERNMENT AGENCY PICK-UP PROVISION
The majority of local government employees contribute to OPERS with salary that has already been
taxed. In this situation, the employee does not get the benefit of excluding the portion of their salary
they contribute to OPERS from their current taxable income. Accordingly, if a member chooses to
withdraw his or her contributions, or the member’s contributions are distributed to a beneficiary
sometime in the future, those contributions will not be subject to taxation at that time. However,
Oklahoma law allows local government employers to take advantage of an IRS provision called the “Pick‐
Up” Provision, which allows employees to exclude the portion of their salary that was contributed to
OPERS from their taxable income for the current year.
To take advantage of the “Pick‐Up” Provision, the governing body of the local government agency will
need to adopt a resolution stating that they wish to adopt the “Pick‐Up” Provisions codified in 74
O.S.SUPP.1998 § 920A, (E) & (F) and submit it to OPERS. The resolution must be on the agency’s
letterhead, signed by each member of the governing body, with an appropriate attestation.
If your organization adopts the “Pick‐Up” Provision, please note that the Retirement Coordinator will
report “picked‐up” contributions in the taxable column of the monthly report (See Chapter 5). OPERS
tracks the amount of before‐tax and after‐tax contributions for each member and reports these annually
to each member. Therefore, in the event a distribution from OPERS is made (e.g. withdrawal or a
monthly retirement benefit), OPERS will be able to ascertain the appropriate tax treatment for the
amount distributed.
Local government employers who participate in the “Pick‐up” Provision who need information on the
appropriate method of calculating F.I.C.A. and Medicare taxes, should contact the Internal Revenue
Service.
4.5 CONTRIBUTIONS PAID ON ACCRUED SICK/VACATION LEAVE AT TERMINATION OF
EMPLOYMENT
Lump‐sum payment made to the member for accrued or earned vacation or sick leave is not subject to
retirement contributions. Also, do not pay retirement contributions on vacation, annual leave or
holiday pay which is paid to a member who is receiving both their regular salary and payment for their
vacation, annual leave or holiday pay.
4.6 CONTRIBUTIONS PAID ON OVERTIME WAGES
It is illegal to pay retirement contributions on overtime wages or compensatory time received by exempt
employees. Overtime hours and wages cannot be used in determining a member's service credit time or
average compensation when computing retirement benefits. Wages that are paid to a member for
overtime work should not be reported in the hours worked column or any other place on the payroll
report.
4.7 CONTRIBUTIONS PAID ON COMMISSIONS AND TIPS
Retirement contributions cannot be paid on commissions or tips received by members of OPERS.
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4.8 CONTRIBUTIONS ARE NOT ASSIGNABLE
The accumulated contributions in a member’s account are not subject to execution, garnishment, or
attachment, and are not assignable except under Qualified Domestic Relations Orders (QDROs). OPERS
can provide a form for this purpose. The QDRO must be approved and on file with OPERS. Encourage
members to have their attorney submit a draft of the QDRO to OPERS for approval prior to obtaining the
final order.
4.9 APPLICATION FOR REFUND (EMPLOYEE & EMPLOYER) (Form 515-120)
This form is to be used only to request a refund of employee and/or employer contributions erroneously
paid to OPERS. Refunds are paid on the last working day of the month. If the applications are submitted
in a timely manner, payment can be expected approximately three months after the month in which the
error occurred. Refunds of state agency employer contributions will be made to the agency by credit
from the Office of State Finance (OSF). Refund payments to a local government agency will be made by
a warrant issued directly to the employer, provided the employer owes nothing to OPERS.
State agencies also may apply directly to OSF for refunds of employee and employer retirement
contributions or execute reversals through the CORE payroll program.
4.10 DEADLINES AND PENALTIES
All participating employers must remit retirement contributions to OPERS monthly.
A. For non‐state agency employers, all contributions and documentation are due on or before the
15th of the month following the month for which the contributions are payable.
B. For state agencies, all contributions must be received by OPERS on or before the 15th day
following the last day of the pay period for which they are due.
If the contributions are paid over 30 days from the due dates, they are subject to a late charge of 3.0% of
the unpaid balance.
4.11 LIMITED BENEFIT
In 1987, members whose annual salary exceeded $25,000 were given the opportunity to make
contributions on salary in excess of $25,000 but not exceeding $40,000. Some members elected to pay
these additional retirement contributions on salary in excess of $25,000 in order to be entitled to a
higher retirement benefit. However, subsequent legislation eliminated the need for these additional
contributions and provided for the return of those additional contributions in the form of temporarily
increased monthly benefit payments.
Those members who made contributions on salary in excess of $25,000 prior to 1994, but were not
active members on July 1, 1998, will receive a limited additional monthly retirement benefit when they
retire provided they meet the following criteria:
A. The member was not an actively participating or a retired OPERS member on July 1, 1998; and,
B. The member had either vested his or her retirement benefits or was eligible to vest his or her
retirement benefits as of July 1, 1998; and,
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C. The member had not retired or begun to receive retirement benefits as of July 1, 1998; and,
D. The member paid contributions on compensation earned in excess of $25,000 prior to July 1,
1994.
After these members retire, they will receive an additional payment of $200 per month until the total
amount paid equals the amount of excess contributions the member paid on compensation earned in
excess of $25,000 prior to 1994.
4.12 2.5% STEP-UP
Effective in 2004, members may make an irrevocable election to increase or “step‐up” their benefit
computation factor from 2.0% to 2.5%. In order to Step‐Up their retirement benefit, members are
required to make an additional retirement contribution. Currently, this actuarially determined amount
is an additional 2.91% of the compensation for retirement purposes. To determine the Step‐Up
contribution rate, add an additional 2.91% to the current retirement contribution rate. These rates
could change in the future.
For more information about Step‐Up, see Section 14.7 on page 68.
4.13 EXCESS BENEFIT PLAN
Members electing the Step‐Up are not permitted to participate in the Excess Benefit Plan to the extent
any excess benefit is attributable to the Step‐Up election. The Excess Benefit Plan applies only to a very
small number of members. If you have questions about the Excess Benefit Plan, please call OPERS.
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CHAPTER 5: PAYROLL FOR LOCAL GOVERNMENT &
NON-STATE FINANCE OFFICE EMPLOYERS
5.1 MEMBERSHIP PAYROLL & MONTHLY REPORT
A membership payroll is available online [https://connect.opers.state.ok.us] for the Retirement
Coordinator with the previous month's salaries and retirement data. It is the Payroll Coordinator’s
responsibility to adjust the figures to correspond with the current month's payroll and to return to
OPERS. This updated report together with the correct remittance and completed Certificate of
Remittance (Form 515‐106), a Payment Remittal (Form 515‐107) and other applicable forms are due no
later than the 15th day of each month, preferably by the 10th day of each month.
How to prepare the Payroll Report:
A. Make corrections in the Total Earnings and Hours Worked on the online report. Please double‐check
your total contributions since a variety of percentages may apply to your agency's report.
These are the amounts you carry forward to your Certificate of Remittance (Form 515‐106).
B. Overtime wages and hours are not subject to retirement contributions, and should not be
included on your payroll report. Unused vacation wages paid to an employee after their last
date on payroll (usually a lump sum) are also not subject to contributions.
C. Make any necessary corrections in name, Social Security number, etc. on the online report.
Also, submit an Employer’s Report of Additions or Deletions to Monthly Payroll (Form 515‐102)
to record changes of this type. This form will be used to make changes on the OPERS “alpha”
records. When an employee is removed from the monthly payroll, for whatever reason, delete
from the online report, Social Security number, and payroll even though the employee may later
return and be re‐entered on a subsequent payroll report.
D. Retroactive Pay Raises & Longevity Pay ‐ Retroactive pay raises and longevity pay should be on
an online supplement report separate from the monthly report. The current month’s salary on
the online report should be changed to include the raise. Do not include hours on the online
report.
E. Salary Not Earned in the Reporting Month ‐ Salary needs to be reported to OPERS when an
employee has not been enrolled at the proper time: for example, (1) when an employee is a
transfer and contributions should have been computed the first day of hire, or (2) when an
employee is eligible, but was inadvertently omitted from the report. Please note that salary
earned in a month other than the reporting month must be submitted separately and not as a
part of your regular report as it has been in the past.
F. Job-related Injury/Illness ‐ If you have an employee who is not working due to Workers’
Compensation, you will not report any salary or hours for that month. You may leave his or her
name and Social Security number on the online report. The only exception is when Workers’
Compensation pays a certain portion of the monthly salary and the employer pays the balance, if
the employee has paid leave that can be used for this purpose. The balance would then be
reported to OPERS, contributions would be paid and the hours would be prorated for that
amount.
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G. Installment Plan Payments ‐ You must provide installment plan payments separate from the
payroll report. Be sure to identify the installment payments as such when submitting them to
OPERS. A copy of the payroll deduction form for an employee for each month should be
included with the installment payment.
H. Elected Official employee contribution rates vary according to the official's choice. (See
CHAPTER 27: ELECTED OFFICIALS.)
I. The Hours Worked column is for reporting the total number of hours each employee worked
during that particular period you are reporting, excluding overtime. A full month is 173 hours
for employees paid on a monthly basis. Full‐time for a biweekly payroll (26 payrolls in a year) is
80 hours for each two‐week payroll. It is essential this column be adjusted monthly, as
necessary, to report the actual number of hours each employee worked in order to assign
proper retirement service credit. (See 4.3 for rates and coding.) If you have hourly wage
employees whose gross salary will vary each month in accordance with the number of hours in
the payroll period, you may report the actual hours for full‐time employees instead of 173 hours
each month (i.e., 160, 168, 177, 184). When reporting hours on an online report, record hours
without decimal points (i.e., 88 not 87.5).
J. Add any new employee who is eligible for membership in OPERS to the online report. All new
eligible employees shall begin participating on the first day of the month following the month
they start to work in an eligible position. For example, if Bill went to work as an eligible
employee on April 1, he should be added to the payroll report for May 1 through May 31. If
Susan went to work April 30 as an eligible employee, she should be added to the payroll report
for May 1 through May 31. New employees who are already members of OPERS begin
participating on the first day of employment, so it is very important to know if they have prior
membership. Call OPERS to find out the status of a new employee, and ask if they participated
in the 2.5% Step‐Up (see page 67). If so, they are required to participate in the Step‐Up
program, even if they previously withdrew their retirement contributions or retired.
K. Enrollment is required for each new employee and should be submitted online. An employee
added to the payroll report must have the Social Security number listed. It is important for
Social Security numbers to be typed accurately on all forms. Please send a copy of the member's
Social Security card. NOTE: All OPERS retirees must participate in retirement, regardless of the
status of employment or number of hours worked. Retirement participation must begin with
the retiree’s first day of employment. (For more information, see CHAPTER 19: POST‐RETIREMENT
EMPLOYMENT on page 78.)
L. Add any employees who have returned from a leave of absence and include an Employer’s
Report of Additions or Deletions to Monthly Payroll (Form 515‐102) with your report.
M. The final report total for employee contributions and for employer contributions, as shown on
the online printout, is the figure that must be carried forward on the Certificate of Remittance
(Form 515‐106) and Payment Remittal (Form 515‐107). Explanations for reporting column totals
are given in the instructions for completing the Certificate of Remittance and Payment Remittal
forms.
Contact OPERS concerning any question or problem you have in preparing your monthly payroll report.
25
All personnel forms that reflect a change on your online report (i.e. new employees, terminations,
changes, corrections, etc.) should accompany the payroll affected. Please note that changes due to
retroactive pay raises, longevity payments, or salary not earned in the reporting month are not to be
reported on the online report, but on an online supplemental report.
5.2 EMPLOYER CONTRIBUTIONS DEADLINE AND PENALTY
All participating employers must remit retirement contributions to OPERS monthly.
For Local Government and Non State Finance Employers all contributions are due on or before the 15th
of the month following the month for which the contributions were payable.
If the contributions are paid over 30 days from the due date, they are subject to a late charge of 3.0% of
the unpaid balance.
5.3 MONTHLY REPORT AVAILABLE ELECTRONICALLY
OPERS provides an application online to help you prepare your monthly payroll and contribution. You
can call Charles Bachle at 1‐800‐733‐9008 or (405) 858‐6728 with questions. Our data processing unit
will prepare an online report specifically for your agency. You will initially enter the name, Social
Security number, gross salary earned and number of hours worked for each employee. The program will
calculate the correct employee and employer contributions for each member. You can print out a hard
copy of the report to retain for your records. You will return a copy to OPERS of the report along with a
Certificate of Remittance, Payment Remittal forms, changed forms and deletions to the report forms.
The online report will be available to you for your use the next month. Each month, you will only have
to enter any changes to salary and hours or add new employees. If your agency changes the relative
percentages of contributions paid by employee and employer, OPERS will prepare a new online report
for your use. The system is available Monday‐Friday 8:00 AM to 5:30 PM, excluding holidays.
OPERS also has available a procedure to submit your monthly payroll and contribution reports
electronically which provides secure submission of the data using encryption technology. If your agency
is interested in submitting your data using this method, please contact Charles Bachle for further
information.
5.4 CERTIFICATE OF REMITTANCE (Form 515-106)
It is very important that you fill in this form and submit it with the checks attached, along with a copy of
the report. The form should reflect the same month as shown on your payroll report. The form is due in
our office no later than the 15th day of each month. Remember, your report is incomplete without this
form.
A. Contributions Paid by Employees ‐ Fill in the amount of the contributions paid by your members
on the first line. This will be the exact amount deducted from employees' payroll as shown on
the total page of your payroll report.
B. Contributions Paid by Employer ‐ Fill in the total amount paid by the employer. This should be
the exact amount as shown on the total page.
C. Total Remittance ‐ The next step in filling out the form is to be certain you are remitting the
correct amount by adding the contributions paid by employees and employer. The actual total
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of your checks must equal this amount. You will be notified of any variance in amounts that you
might have underpaid or overpaid.
D. Signature of the Retirement Coordinator ‐ After entering your agency's name and number,
please be certain that the Retirement Coordinator or alternate Retirement Coordinator signs the
Certificate. The box in the lower left‐hand corner is for OPERS use. Send the original with your
payroll report and checks, and keep a copy for your records.
5.5 PAYMENT REMITTAL (Form 515-107)
It is very important that you fill in this form and submit it with the Certificate of Remittance form along
with the checks attached, and a copy of the online report. The form should reflect the same month as
shown on your payroll report. The form is due in our office no later than the 15th day of each month.
Remember your report is incomplete without this form.
A. Contributions Paid by Employees – Fill in the total amount paid by employee contributions.
B. Contributions Paid by Employers – Fill in the total amount paid by employer contributions.
C. Additional Payments – Fill in the amounts for other payments (Longevity, Shift Differential, One
Time Pay, Retro Pay Raises, Etc.)
D. Installment Payments – Include documents with name, Social Security number, and amount of
installment payment.
E. Invoice Payments – Include Return Copy of Invoices
F. Total Remittance – Total amounts of all payments
G. Signature of the Retirement Coordinator – After entering your agency’s name and number,
please be certain the Retirement Coordinator or alternate Retirement Coordinator signs the
Payment Remittal form. Send the original with your reports, forms, and checks.
5.6 EMPLOYER'S REPORT OF ADDITIONS OR DELETIONS (Form 515-102)
Fill in Form 515‐102 for each employee returning from leave, etc., at the time the employee is added
back on the online report, and submit it with the report. A duplicate copy should be retained by the
agency for its records. Use Form 515‐160, Change of Address to make any correction in address, or
Social Security number. This form is required in addition to the corrections made on the online report.
(See SECTION 1.4: ACTIVE MEMBER NAME CHANGE for more information on how to update a member’s
name)
Please do not use the Employer’s Report of Additions or Deletions (515‐102) form to report retirees who
are returning to work or terminating employment. The Post‐Retirement Employment Election (515‐117B)
form should be used for that purpose.
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CHAPTER 6: TERMINATION OF EMPLOYMENT &
WITHDRAWAL OF CONTRIBUTIONS
6.1 INTRODUCTION
Participation in OPERS is mandatory for all eligible employees. During employment with a participating
agency, a member may not withdraw the contributions paid to OPERS. These funds are not available for
loans or any other type of pretermination distribution. Furthermore, a member who has already retired
and is receiving a monthly retirement benefit cannot withdraw any contributions paid into OPERS.
However, a member who terminates employment with a participating employer may, but is not required
to, withdraw from OPERS the member’s share of the accumulated contributions. A member who
withdraws contributions loses all service credit, including prior service credit earned prior to the date of
withdrawal and is no longer considered a member of OPERS. NOTE: An enrollment must be submitted to
OPERS before a withdrawal can be completed.
6.2 LEAVING CONTRIBUTIONS WITH OPERS
A member who leaves his or her accumulated contributions with OPERS will retain OPERS membership.
A member does not lose any service credit previously accrued and upon reemployment by a
participating OPERS employer, the previously accrued service will be used to determine OPERS benefits.
Furthermore, a member who withdraws contributions may find that there are additional or different
eligibility requirements for benefits if he or she becomes an OPERS member again. By leaving the
contributions in OPERS, a member has greater certainty in their eligibility for benefits.
6.3 WITHDRAWING CONTRIBUTIONS
If a member terminates employment and wishes to withdraw his or her share of the accumulated
contributions, the member can do so provided that:
 The Application for Withdrawal (Form 515‐118W) is completed by the Retirement
Coordinator, the employee, and filed with OPERS as soon as possible after the employee’s
termination date; and,
 The member is not reemployed by any participating employer within four full calendar
months subsequent to the month of termination.* The Application for Withdrawal (Form
515-118W) must provide OPERS with a mailing address that will be valid for at least six
months from the date of termination.
Only the employee share of retirement contributions may be withdrawn. The employer share of
contributions is forfeited and remains in OPERS. OPERS will pay no accumulated interest on employee
contributions that are withdrawn.
Additional consideration is given to those members who are eligible to vest at the time they wish to
withdraw their accumulated contributions. In such a case, after receipt of the member’s Application for
Withdrawal (Form 515‐118W) OPERS will contact the member who is eligible to vest.
* There is a limited exception to the statutory four‐month waiting period for members who are terminally ill and who provide
certification from a physician that they are not expected to live beyond four months.
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The member will receive:
 A letter which shows the member’s creditable service;
 An offer that shows the member the amount his or her monthly retirement benefit will be if
a vested benefit is chosen; and,
 A Selection of Vested Benefit and Designation of Withdrawal Distribution form.
The member must at that time choose to either withdraw his or her share of the accumulated
contributions or elect a vested benefit. (See Election of a Vested Benefit, CHAPTER 10: RETIREMENT
BENEFIT ELIGIBILITY.) The member must complete and return the form to OPERS indicating his or her
choice. This form does not require the Retirement Coordinator’s signature. A member who is eligible to
vest and elects a vested benefit will be vested using the Selection of Vested Benefit and Designation of
Withdrawal Distribution form. A member who is eligible to vest but chooses not to elect a vested benefit
will not receive any monthly retirement benefits that might have been payable on that service credit.
6.4 WITHDRAWAL PAYMENTS AND ROLLOVERS
Upon receipt of the Application for Withdrawal form, OPERS will mail to the member a Withdrawal
Letter that will designate the amount and the status as taxable and/or non‐taxable of the member’s
contributions. The member will also receive a Designation of Withdrawal Distribution form and separate
Rollover Application forms for taxable and non‐taxable contributions. Additionally, information will also
be provided to the member about issues related to receiving such lump‐sum payments including a
Special Tax Notice.
OPERS is categorized as a 401(a) plan for IRS purposes. Although Federal law allows OPERS to roll over
taxable contributions to a traditional IRA, a 403(b) plan, a 457 governmental deferred compensation
plan, or another 401(a) qualified plan or 403(a) qualified annuity, not all of these plans will accept
rollovers. Federal law now allows the non‐taxable contributions to be rolled over to a traditional IRA or
to a qualified defined contribution plan that will separately account for the taxable and non‐taxable
portions and that is willing to accept non‐taxable rollovers. Accordingly, the member must check with
the administrator of the plan(s) to which he or she wants to roll over the contributions to determine
whether that plan will accept a rollover from OPERS.
A member who has terminated employment and decided to withdraw contributions may elect to have
OPERS:
 Pay the entire balance of the contributions directly to the member; or,
 Roll over the entire amount of the contributions to an eligible retirement plan, a traditional
IRA, a Roth IRA or any combination of the three; or,
 Pay a portion directly to the member and roll over the balance to the rollover options listed
above.
If any part of the taxable portion of the distribution is paid directly to the member, OPERS must withhold
20% for federal taxes and 5% state tax for Oklahoma residents. If the member elects to roll over the
contributions to a traditional IRA, the taxation of the taxable amount is deferred until the contributions
are ultimately distributed. A rollover to a Roth IRA is taxable, but OPERS does not withhold the tax. Non‐taxable
contributions are not subject to federal and state income tax withholding.
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Regardless of which option is selected, a member must complete and return to OPERS a Designation of
Withdrawal Distribution form to indicate his or her choice of distribution options. If a member elects to
roll over all or a part of the distribution, a separate Rollover Application for Taxable Funds and Rollover
Application or Non‐Taxable Funds must be completed by the member and the receiving Plan or IRA and
returned to OPERS. The election to roll over all or part of the distribution is limited to one receiving plan
for taxable funds and one receiving plan for non‐taxable funds.
A member who wishes to withdraw all of his or her share of accumulated contributions and who is not
eligible to vest can expect to receive payment during the fifth month after the month of termination if all
appropriate paperwork has been completed in sufficient time to process the payment. A member who
elects to receive a portion directly and roll over the balance of the funds will be paid on the same
schedule, except that no funds will be disbursed until all documents have been received by OPERS to
allow for the disbursement of all of the member’s accumulated contributions. The member’s receipt of
payment will depend on timely receipt of all required forms and documents.
A member who is eligible to vest cannot expect to receive payment of accumulated contributions until
after 1) OPERS has informed the member of the retirement benefits the member is eligible to receive
and 2) the member has declined the vested benefit in writing by returning the Selection of Vested Benefit
and Designation of Withdrawal Distribution forms to OPERS.
6.5 CANCELLATION OF PAYMENT & RETURN TO EMPLOYMENT
If a member returns to employment with a participating employer before the four‐month statutory
waiting period has elapsed, he or she or the employer must notify OPERS and the withdrawal will be
cancelled. If a member is reemployed within the four‐month statutory waiting period and does not
notify OPERS of the reemployment and receives a withdrawal payment, the employee shall repay the full
amount of the withdrawal to OPERS. If the member is reemployed before the four‐month statutory
waiting period has expired, the member must begin participation on the first day he or she is
reemployed. If a member receives a withdrawal payment after returning to employment, he or she
must return the payment to OPERS immediately. This constitutes an “in‐service contribution” and is
prohibited by IRS regulations.
6.6 TAXATION OF WITHDRAWN BENEFITS
Employee contributions paid into OPERS after January 1, 1989, by state employees are taxable in the
calendar year in which the contributions are withdrawn. Contributions that were paid in prior to January
1, 1989, are not taxable. Employee contributions paid after January 1, 1990, by local government
employees whose employer participates in the contribution “pick‐up” plan will be taxable in the
calendar year in which the contributions are withdrawn. An employee who withdraws contributions
that are taxable must have 20% federal tax and 5% state tax for Oklahoma residents withheld from the
contributions paid to them by OPERS. Individuals who withdrew taxable contributions will receive an IRS
Form 1099‐R at the end of the calendar year. The IRS Form 1099‐R will show the total amount and
taxable amount distributed to the member and the amount withheld for state and federal taxes.
Individuals who elected to roll over the contributions will also receive an IRS Form 1099‐R for each type
of rollover.
The receipt of a member’s contributions may be subject to an early distribution penalty (currently 10%).
The additional tax is imposed only in certain conditions and does have exceptions. Coordinators should
always instruct members to consult a competent tax advisor about their individual tax liability.
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The receipt of a member’s contributions may be subject to an early distribution penalty (currently 10%).
The additional tax is imposed only in certain conditions and does have exceptions. Coordinators should
always instruct members to consult a competent tax advisor about their individual tax liability.
6.7 WITHDRAWAL REPAYMENTS
A current member who previously withdrew his or her accumulated contributions and wishes to repay
the amount of the withdrawal to reinstate service credit may repay the withdrawal either in one lump
sum payment or through an installment payment plan. (See 9.5 Installment Payment Plan.)
A member must repay to OPERS the sum of the contributions withdrawn, plus interest at 10% per year.
Upon written request, OPERS will calculate the total cost to repay and the payment options available.
Withdrawn service may only be reinstated once. Subsequent withdrawals of the same service may not
be repaid.
6.8 APPLICATION FOR WITHDRAWAL (FORM 515-118W)
If a member’s employment terminates, the Retirement Coordinator should complete the employer
section of the Application for Withdrawal. Ensure the information is accurate and in agreement with
payroll information. The last date physically on the job must be completed and the form should bear
your signature as Retirement Coordinator. If the member has “leave without pay” status at the
termination of employment, please indicate the dates of leave without pay next to the last date on the
job.
Be sure the employee understands that the withdrawal payment will be paid no earlier than the month
after the four-month waiting period. The employee's mailing address on the form must be an address
that will be applicable at the time the withdrawal payment will be issued. A change of this mailing
address must be made in writing with the employee’s signature.
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CHAPTER 7: CREDITED SERVICE
Credited service is the sum of all prior and participating service.
In determining the total number of years of credited service, prior and participating service (including
unused sick leave and military service) are added together. A fractional year of six months or more of
this total service shall be considered as one additional year (rounded up).
7.1 PRIOR SERVICE
Prior service is the period of a member's employment with an eligible employer before that
employer's entry date into OPERS, or for certain military service.
A. Prior service is granted free of charge to all eligible members only if their employer became a
participating employer on or before January 1, 1975. Proof of such service must be verified in
writing by the Retirement Coordinator of each participating employer from payroll and
personnel records on file in their office.
B. If a member wishes to receive prior service credit for employment before his or her employer
became a participating employer of OPERS and the employer joined OPERS after January 1,
1975, prior service credit must be purchased at actuarial cost. If a member purchases this prior
service, it is considered as full‐time‐equivalent employment for normal retirement eligibility,
participating service for early retirement eligibility, and for eligibility to vest a member’s
retirement benefit.
C. Prior service credit will also be given to any member who was employed in an institution of
higher learning by a State Board of Regents or was employed by an Oklahoma school district
prior to July 1, 1943. Verification of such service should be obtained from the office of the State
Department of Education or the office of the county school superintendent in which the service
was performed.
D. Prior service credit for military service will be received for Merchant Marine service during the
wartime period from December 7, 1941, through August 15, 1945. Credit is given only for the
time actually served aboard ship and must be verified on a DD214 document obtained from the
U.S. Veterans Administration. (For more information on Military Service see CHAPTER 8:
MILITARY SERVICE CREDIT.)
E. Prior Service is also granted to current employees of the House of Representatives, the State
Senate, or the Legislative Services Bureau for temporary employment for the full duration of a
regular legislative session prior to the member's eligibility for membership in OPERS. Six months
shall be granted for each full regular session if the member is currently employed by the House,
the Senate or the Service Bureau and has worked six full sessions since January 1, 1983.
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Hours of Unused
Sick Leave
Months of OPERS
Service Credit
0‐159 0
160‐ 319 1
320‐479 2
480‐639 3
640‐799 4
800‐959 5
960+ 6
7.2 PARTICIPATING SERVICE
Participating service is a member’s period of contributing employment after their employer’s entry
date into OPERS. Participating service credit will be granted for the period of employment for which the
required employee and employer contributions have been paid in full, either by payroll deductions or by
the employer on behalf of the member.
A. An approved leave of absence of two years or less may not constitute a break in service, but it
shall not be counted as credited service. An employee who is not receiving pay and for whom
contributions are not being paid is not accruing participating service.
B. Members do not accrue service credit for Workers' Compensation payments, but state
employees can take advantage of the Temporary Total Disability purchase provisions explained
in CHAPTER 9: REINSTATING, PURCHASING, AND TRANSFERRING SERVICE CREDIT.
C. No deductions in service credit or salary are made for approved involuntary furloughs. (OAC 530
§ 10‐15‐48)
7.3 PART-TIME PARTICIPATING SERVICE
All part-time employment or periods of leave without pay are prorated in relation to full-time
employment (173 hours per month; 2,076 hours per year or 80 hours per pay period; 2,080 hours per
year for biweekly payrolls) for participating service accrued July 1, 1979, and after. Prior to July 1, 1979,
a member will receive a full month's credit for each calendar month in which he or she received salary
and for which retirement contributions were paid on that salary, regardless of the number of hours
worked in that calendar month.
A member who accrues part‐time participating service only accrues prorated service credit. For
example, if James works half time, he accrues service credit half time. Therefore, James must work two
years to gain one year of OPERS service credit.
7.4 UNUSED SICK LEAVE
A member who retires or terminates employment and elects
a vested benefit is entitled to add months of unused sick
leave. A maximum of six months of unused sick leave can be
added to a member’s service credit. If the addition of the
member’s unused sick leave causes the total credited service
to equal or exceed a fractional year of six months, service is
rounded up to the next higher year and the member gains a
year of service credit. If the unused sick leave results in
adding an additional year of service, the employer must pay
the cost of funding that year of service. (See CHAPTER 12:
FINAL UNUSED SICK LEAVE RECORD.)
Local government employers should immediately notify OPERS in writing of any change in the
employer's sick leave policy. Formal changes can be made on the Verification of Unused Sick
Leave Policy form, which can be downloaded from the OPERS website.
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7.5 BONUS YEARS OF PARTICIPATING SERVICE
Employee contributions required by OPERS and actually
made by employees prior to June 30, 1977, will entitle the
employee to additional years of participating service in
accordance with the schedule to the right if said funds are
not withdrawn upon termination of employment prior to
retirement. In no event shall the employee be entitled to
more than five additional years of participating service
credit. If a member has lost bonus years through a
withdrawal from OPERS, repayment of the withdrawal will
reinstate the lost bonus years.
7.6 FULL-TIME-EQUIVALENT EMPLOYMENT
Those who became members of OPERS after January 1, 1983, must have at least six complete years of
full‐time‐equivalent employment to be eligible to retire. Full‐time‐equivalent employment is different
than other types of service.
Full‐time‐equivalent employment is a term that refers to a member’s (1) actual employment (2) with a
participating employer of the Oklahoma Public Employees Retirement System. A member obtains full‐time‐
equivalent employment in two ways. The first way is obvious: working for a participating employer.
Each hour for which retirement contributions are paid, credits the member with one hour of full‐time‐equivalent
employment. Therefore, if retirement contributions were paid for 173 hours, the member
would accrue one month of full‐time‐equivalent employment. The second way to obtain full‐time‐equivalent
employment is by making certain types of service credit purchases. However, the only types
of purchases which constitute full‐time‐equivalent employment are those which represent (1) actual
employment (2) with a participating employer of the Oklahoma Public Employees Retirement System.
Service granted free of charge is not full‐time‐equivalent employment because it is service granted to a
member without employee contributions (e.g. certain prior service, unused sick leave) or it is service
which was not accrued with a participating employer of OPERS (e.g. military service). The chart below
shows which types of purchased service credit constitute full‐time‐equivalent employment and which
types of service do not.
Full-time-equivalent Employment Not Full-time-equivalent Employment
 Purchased Prior Service  Prior Service Granted Free of Charge
 Repayment of Withdrawn Contributions  Military Service Granted Free of Charge
 Purchase of Elected Service  Purchased Service with Another State Retirement System
 Purchased Temporary Total Disability  Unused Sick Leave
 Purchases Made Pursuant to USERRA  Transported Service
 Delinquent Service Paid by the Employer  Termination Credit
 Bonus Years
 Purchase of Incentive Credit
Contributions Participating
Service
$1 to $500 1 year
$500.01 to $1,000 2 years
$1,000.01 to $1500 3 years
$1,500.01 to $2,000 4 years
$2,000.01 + 5 years
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CHAPTER 8: MILITARY SERVICE CREDIT
8.1 CREDITING MILITARY SERVICE
Active members of OPERS who served in the Armed Forces of the United States and received an
honorable discharge are eligible for up to five years of service credit for specified periods of active
military service during which they were a war veteran. The credit is limited to specific periods of active
military service listed in paragraph 23 of Section 902 of Title 74 of the Oklahoma Statutes, which includes
the following:*
45th Division September 16, 1940 – December 7, 1941
World War II December 7, 1941 – December 31, 1946
Korean War June 27, 1950 – January 31, 1955
Vietnam War
February 28, 1961 – May 7, 1975
(For the period from February 28, 1961 – August 4, 1964,
service must be in the Republic of Vietnam)
Gulf War/Persian Gulf War/
Operation Desert Storm August 1, 1990 – December 31, 1991
Other qualifying periods of military service include wars or military operations which lasted for 90 days
or more and are authorized by Congressional authorization or resolution or Presidential Executive Order.
Qualifying service is only for the period served in the designated area of responsibility and excludes
active duty for training only. Such wars or military operations include, but are not limited to, the
following:*
The former Yugoslavia
(including Bosnia, Herzegovina,
Croatia and Macedonia)
By Public Law 104‐117
Beginning November 21, 1995
Ending date to be determined
The Kosovo Area
By Executive Order 13119
and Public Law 106‐21
Beginning March 24, 1999
Ending date to be determined
Afghanistan/Operation
Enduring Freedom
By Executive Order 13239
and Public Law 107‐40
Beginning September 18, 2001
Ending date to be determined
Iraq War/Second Gulf
War/Operation Iraqi Freedom
By Public Law 107‐243
Beginning March 10, 2003
Ending date to be determined
* The list is for convenience only. The official periods for which military service is granted is found in Section 902(23) of Title 74
of the Oklahoma Statutes.
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To be eligible for credit, the member will need to submit an “Application for Military Service” and a
Defense Department Form 214 (“DD214”) and other military documents showing active duty dates and
honorable discharge.
Eligible military service is free for members joining OPERS prior to July 1, 2000. Members joining OPERS
after June 30, 2000, may purchase eligible military service at actuarial cost.
Employees joining OPERS after June 30, 2003, will not receive credit for military service in OPERS if the
credit was already received for the same period(s) of military service in another Oklahoma state
retirement system.
The actual periods for which military service can be granted are governed by Oklahoma State statute
and can change from time to time. Consult the statutes and OPERS before relying on the above
information.
To obtain military records, visit this website: http://archives.gov/veterans/military‐service‐records.
8.2 USERRA (Uniformed Services Employment & Reemployment Rights Act)
An employee who is absent from work due to voluntary or involuntary “uniformed” service can take
advantage of the right, created under the Uniformed Services Employment and Reemployment Rights
Act (USERRA), to buy back service credit lost during the absence.†
USERRA requires the participating employer to notify OPERS in writing within 30 days after the
reemployment of a member asserting rights under USERRA.
A. Eligibility Under USERRA
To assert rights under USERRA, a member is required to provide proof of compliance with each
of the following requirements and the participating employer must confirm in writing that the
member:
1. Held a civilian job with a participating employer before the leave;
2. Provided notice of leave to serve in the uniformed services to the employer;
3. No more than five years of cumulative uniformed service leave while working for the
participating employer (with some limited exceptions);
4. Received a release from service under “honorable conditions”;
5. Returned to a civilian job covered under OPERS in a timely manner. The term “timely
manner” means:
 For uniformed service of up to 30 days, a member must report back on the first
regular work day after discharge, plus travel and rest time of at least eight
hours, or as soon as reasonably possible thereafter.
† Some members may be able to get USERRA service for free if the service time falls within the times for creditable military
service as listed in this chapter.
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 For uniformed service of 31 to 180 days, a member must report back or reapply
within 14 days after discharge or as soon as possible thereafter.
 For uniformed service of 181 days or more, a member must report back or
reapply within 90 days.
 These deadlines can be extended for illness, accidents, hospitalization, etc.
B. Types of Service
USERRA applies to all types of uniformed service including voluntary and involuntary service
during peacetime or wartime and active or inactive duty for training.
C. Payment of Retirement Contributions
1. Members - In order to receive service credit for uniformed services leave, a member
must pay the contributions (without interest) that would have been made if the member
had been continuously participating in OPERS. The contributions must be made in a
lump sum. There is no installment plan available to those asserting their rights under
USERRA. If what the returning member would have earned is not readily ascertainable,
the computation will be based upon the member’s earnings during the last year of
employment prior to the uniformed service.
2. Participating Employers - The participating employer must pay the required
contributions (without interest) that would have been made if the member had been
continuously participating. The cost should be allocated to the last employer who
employed the member prior to the uniformed service.
3. Time of Repayment - The member has an extended period to: 1) have made a request
for service credit; and, 2) repay the missed contributions. The extended period starts on
the date of reemployment and continues for a period equal to three times the period of
uniformed service. However, the extended period cannot exceed five years.
A member who withdrew contributions upon entering uniformed service must re‐establish the former
membership by repaying the amount of the withdrawal under normal plan requirements before any
rights under USERRA can be asserted.
37
CHAPTER 9: REINSTATING, PURCHASING, AND TRANSPORTING SERVICE CREDIT
9.1 REINSTATEMENT OF WITHDRAWN SERVICE
A former member who has withdrawn his or her contributions may restore service credit lost due to the
withdrawal. The former member must meet the eligibility requirements for membership and, on
becoming a member of OPERS again, pay the sum of the accumulated contributions withdrawn plus
interest at 10% percent per year. If payment is made prior to one year from date of withdrawal, no
interest is charged. This reimbursement will entitle the member to the service credit he or she would
have received as if there had never been a withdrawal of contributions.
Reinstatement of the same service may be made one time only; any further withdrawals cannot be
repaid.
Please encourage employees who wish to reinstate service to write OPERS, furnishing the name of their
employer and dates of service affected by their withdrawal. OPERS will determine eligibility, calculate
the amount of reimbursement required, and inform the employee of the amount owed. The employee’s
payment to OPERS may be in a lump sum or through a payroll deduction for up to 60 months. This
purchase also can be made through a plan‐to‐plan transfer or rollover of pre‐tax contributions from an
eligible plan.
9.2 PURCHASE OF SERVICE CREDIT
Federal Limits on the Purchase of Service Credit
Members should use caution if their retirement planning involves the purchase of any type of retirement
credit. Federal law may limit a member’s ability to complete the purchase of retirement credit during
one calendar year. However, the purchase may still be made even if the purchase price exceeds the
federal dollar limit if the purchase of service does not cause the member’s benefit amount, including the
purchased service, to exceed the IRC 415(b) allowed benefit amount. For more information, see
CHAPTER 14, SECTION 6: LIMITATIONS ON RETIREMENT BENEFITS.
If the cost to purchase retirement credit exceeds the federal limit, a member must complete his or her
purchase of the credit under the limit set for the next calendar year or alter the amount of credit
purchased. In some cases, the federal limits may prohibit the purchase entirely. Members should
contact OPERS to determine how the federal limits apply to their purchase of retirement credit.
Methods to Purchase Service:
A. One‐time, lump‐sum payment with post‐tax dollars; or
B. Post‐tax payments through payroll deduction for up to 60 months (includes 7.5% interest); or
C. Plan‐to‐plan transfer of pre‐tax funds; or
D. Incoming rollover of pre‐tax funds; or
E. Combination of any of the above.
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Types of Service Purchase:
A. Purchase of Service Credit from Other Oklahoma State Retirement Systems
A member may receive service credit for years of credited service accumulated by the member
while a member of the following retirement systems:
 Oklahoma Firefighters Pension and Retirement System;
 Oklahoma Police Pension and Retirement System;
 Oklahoma Law Enforcement Retirement System;
 Oklahoma Teachers Retirement System; or
 Uniform Retirement System for Justices and Judges.
However, the purchase of this service is only permissible if the member is not receiving or
eligible to receive retirement credit or benefits for that service in any other public retirement
system. The cost to purchase such service shall be the actuarial cost to fund the difference
between the members' projected benefits with and without the additional service credit.
A member who wishes to purchase such service must submit to OPERS written documentation
from one of the systems listed above. The documentation must include: dates of membership,
salary for each year of membership broken down by fiscal year, and a statement that he or she is
no longer eligible for benefits from that system. This is not a direct transfer, but a purchase of
service credit.
B. Purchase of Prior Service
Members who were employed by an agency that entered OPERS after January 1, 1975, are not
eligible for free prior service credit for their employment with that agency prior to its entry into
OPERS. However, members can now purchase prior service credit for their employment with
such an agency from January 1, 1975, until the agency's entry into OPERS. The cost for the
purchase will be the actuarial cost. The member and the Retirement Coordinator for the agency
must complete and submit an Application for Purchase of Prior Service (Form 515‐144) to OPERS.
The member will be contacted directly by OPERS about the cost.
C. Purchase of Incentive Credit
Active, participating members of OPERS may purchase up to two years of “age” or participating
service. The cost of purchasing such age or service will be the actuarially determined cost of
projected incremental increase in benefits as a result of the additional age and/or service.
To purchase incentive age or service, a member must be:
 Eligible for normal or early retirement; or
 Within two points of reaching normal retirement eligibility; or
 Within two years of reaching early retirement eligibility, or
 A non‐elected OPERS retiree who has returned to work.
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Members must have at least four years of the required six years of full‐time‐equivalent
employment in order to be eligible for this purchase and must accrue six years of full‐time‐equivalent
employment prior to retirement.
Elected officials who are first elected or appointed before November 1, 2011, may only purchase
this age or service toward the attainment of 80 points.
Elected officials who are first elected or appointed on or after November 1, 2011, may purchase
up to two years of incentive age or service credit if they are within two years of reaching normal
or early retirement eligibility.
Hazardous Duty Members may purchase incentive credit to qualify for the Rule of 80 or 90 or for
early retirement, but not for the twenty year service requirement as a hazardous duty member.
Incentive credit may not be purchased to attain eligibility for Disability Retirement.
Retirees who return to work and waive receipt of their retirement benefits may purchase
incentive age or service if they have not previously purchased incentive credit. Any incentive
service purchased by a retiree who has returned to work does not count toward the 36 months
of full‐time‐equivalent post‐ retirement employment required for re‐retirement.
OPERS will provide employees with information about an incentive credit purchase upon written
request. Caution employees if their retirement planning involves the purchase of incentive
credit. The following are some things all members need to keep in mind.
The purchase of incentive credit is irrevocable. For example, Sarah became a member of OPERS
prior to November 1, 2011, and is eligible to retire at age 62. At age 60, she purchases two years
of incentive age credit to become eligible for normal retirement as if she were age 62. After
Sarah makes the purchase, her circumstances change and she decides to continue working until
she is actually age 62. Sarah’s former purchase of incentive age is not helping her become
eligible to retire because she has actually worked until age 62. Sarah’s purchase was
irrevocable, so OPERS cannot refund the amount she paid for incentive age credit.
The more specific a member is about the amount of age and/or service he or she wants to buy,
the more accurately and timely OPERS can be when estimating the purchase price.
Federal law could place limits on the amount of incentive credit purchased. If a member’s
purchase price exceeds the calendar year limit, he or she may have to spread payments over
additional years to make the purchase. Those who are interested in purchasing incentive credit
should not only inquire about the purchase price but also the federal limit on purchases.
D. Purchase of OESC Service
A member may purchase OPERS service credit for any years of employment the member had
with the Oklahoma Employment Security Commission (OESC) if the member is not receiving or
eligible to receive service credit for that employment with any other public retirement system.
A member who is interested in purchasing such employment must submit written verification of
the dates of employment and the salary earned during each fiscal year. The verification must be
obtained from the Retirement Coordinator of OESC and submitted to OPERS. OPERS will notify
the member of the cost to buy the service credit.
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E. Purchase of Elected Service
A member who is currently a non‐elected member may purchase OPERS service credit for
previous service as an elected official if the member is not receiving or eligible to receive
retirement credit for said service with any other public retirement system. The cost to purchase
such service shall be the actuarial cost to fund the difference between the member's projected
benefits with and without the additional service credit. Interested members should contact
OPERS in writing and state the elected official rate they wish to pay. (See 27.2 CONTRIBUTIONS.)
The rate chosen may determine the benefits paid on each year of elected service.
F. Temporary Total Disability
Members who are state employees may purchase participating service for the time when they
received temporary total disability benefits. However, this participating service can only be
given for an absence from work due to a work‐related injury or illness incurred while engaged in
a governmental function for a said participating employer pursuant to the Worker’s
Compensation Act and subject to the following requirements:
1. The member was employed by the participating employer immediately prior to and
during the period of absence;
2. The member must notify OPERS in writing not later than four months after the
member’s return to his or her job duties with the participating employer, or termination
of employment with the participating employer, or termination of the temporary total
disability benefits, whichever is earlier, of the member’s desire to receive participating
service credit for the period of absence;
3. The participating employer must certify to OPERS in writing the date during which
temporary total disability benefits payments were paid to the member; and,
4. The member and the participating employer shall each pay their respective
contributions required for the period of absence without interest within 60 days of
invoicing by OPERS, or with interest of 7.5% compounded annually if paid after said 60
days.
Please note that a member can only purchase participating service under this provision for time
spent on temporary total disability after July 1, 1997. Only entire periods of absence on
temporary total disability can be purchased. The member may not purchase only a portion of a
temporary total disability absence. Retirement Coordinators should contact OPERS on how to
complete the sections pertaining to hours and salary.
If you have an employee who must be off work due to a work-related injury, it is critical that
you inform him or her right away (certified mail is recommended) of his or her right to make
this purchase. To make this purchase, he or she has to inform OPERS within four months of
the earliest of these three events:
1. The date they return to work;
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2. The date their employment ends; or,
3. The date of termination of temporary total disability (TTD) benefits.
9.3 REDUCTION-IN-FORCE (RIF)
Retirement Coordinators are responsible for contacting OPERS in the event their state agency or entity
conducts an approved reduction‐in‐force. OPERS must be notified in writing of the reduction‐in‐force
and will request a list of affected members. The list should include the member’s name, Social Security
number, and the amount of unused sick leave the member has accumulated. Once notified, OPERS will
then assist the participating employer with retirement‐related information. Retirement Coordinators
may also want to notify other employee benefit agencies (e.g. Oklahoma State & Education Employees
Group Insurance Board and the Employees Benefits Council) of the reduction‐in‐force.
Purchase of Termination Credit
Certain members subject to a reduction‐in‐force are eligible to purchase termination credit. A general
description of the purchase of termination credit is given below.
Members who are within six points of achieving eligibility for normal retirement under the 80/90 point
provisions or who are within three years of achieving eligibility for normal retirement are eligible to
purchase termination credit if they are subject to a reduction‐in‐force. Members must also have at least
six years of full‐time‐equivalent employment with a participating employer in order to be eligible to
purchase termination credit.
The purchase of termination credit generally allows for certain eligible OPERS members who are within
three years of normal retirement or six years of 80/90 points to preserve the same normal retirement
date as he or she would have had if the member’s position had not been terminated by a reduction‐in‐force.
In other words, termination credit allows a member to “constructively” participate as if still
employed by a participating OPERS employer until reaching eligibility for normal retirement.
The purchase of termination credit represents the amount of service that would have accrued through
the member’s normal retirement date. The cost to purchase termination credit will be an amount equal
to the employee and employer contributions that would have been paid to OPERS through the
member’s normal retirement date. Termination credit cannot be purchased in conjunction with
incentive age or service.
9.4 INVOLUNTARY FURLOUGH
Furlough refers to an involuntary, temporary reduction of work hours or the placement of an employee
on involuntary leave without pay. It is the employer’s responsibility to provide to OPERS a copy of
the approved furlough plan.
Normally, leaves of absence do not count toward a member’s retirement credit. Approved
involuntary furlough plans are the exception. For retirement purposes, mandatory involuntary furloughs
are not treated as leave without pay. Members receive service credit on involuntary furlough periods.
Although a member is not being compensated by their employer during periods of an involuntary
furlough, the final average compensation calculation for OPERS benefits is not adversely impacted. For
retirement purposes, it is as if the member was still on the job in terms of service accumulation and
compensation in the calculation of retirement benefits. OPERS accepts the liability of the lost employee
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 The Oklahoma State System of Higher
Education
 State Board of Education
 State Board of Vocational & Technical Education
 Oklahoma Department of Vocational &
Technical Education
 Oklahoma School of Science & Mathematics
 Oklahoma Center for the Advancement of
Science & Technology
 State Department of Rehabilitation Services
 Oklahoma State Regents for Higher Education
 Department of Corrections
 State Department of Education
 Oklahoma Board of Private Vocational Schools
 Board of Regents of the Oklahoma Colleges
 Oklahoma Student Loan Authority
T h R i S f Okl h
and employer contributions on furlough periods. Neither the member nor the employer are responsible
for the lost retirement contributions on furlough periods.
9.5 TRANSPORTING SERVICE FROM THE OKLAHOMA TEACHERS RETIREMENT SYSTEM
OPERS members have an alternative to purchasing service credit for service accrued with the Oklahoma
Teachers Retirement System (OTRS). Members can transport service accrued with OTRS in one of two
methods.
METHOD 1: Portable Service
An active OPERS member who is a member of the Teachers Retirement System of Oklahoma (OTRS), and
whose last service with OTRS was with one of the entities listed below may transport OTRS service to
OPERS without additional cost to the member provided the member has not previously withdrawn
contributions for said service in OTRS. A member who transports service credit from OTRS to OPERS will
receive credit for the transported service immediately upon payment from OTRS of the funds required
to transport the service.
METHOD 2: Transported Service
Members who are not eligible to transport OTRS service
under Method 1 may apply Method 2. Under Method 2
the member may either:
 Pay any difference between the amount of funds
provided by OTRS and the cost of the service in OPERS
(at actuarial cost) to receive full credit for the years
sought to be transported; or,
 Receive prorated service credit for only the amount of
service that could be purchased with the funds
provided by OTRS. Any service credit that is not
transported will be irrevocably canceled and cannot be
reinstated, transported or purchased at a later date.
More about transporting service
Certain active OTRS members have similar provisions for the transport of OPERS service. Those who
repay withdrawn OPERS contributions for the sole purpose of transporting OPERS service to OTRS can
only use Method 2.
If the transporting member’s normal retirement date calculation is based upon the sum of the member’s
age and number of years of credited service totaling 80 in OTRS, then the member shall retain 80 point
eligibility in OPERS under either the Method 1 or 2 transport.
Members who transport pursuant to Methods 1 or 2 will have all OTRS service credit cancelled.
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9.6 INSTALLMENT PAYMENT PLAN
Members, through an installment payment plan, may make different categories of purchases.* The
categories are as follows:
A. All purchases of service at actuarial cost including, but not limited to, eligible service from
another state retirement system and incentive credit.
B. Current members who, as former members, withdrew their accumulated contributions and now
wish to repay the amount of the withdrawal to reinstate service credit can repay the withdrawal
either in one lump sum payment or through the installment payment plan.
C. Elected officials who are currently contributing to OPERS but did not elect to participate during
previous elected service may purchase the previous elected service by making a lump sum
payment or through the installment payment plan.
D. Current contributing elected officials who previously contributed on their elected service at a
lower elected contribution rate prior to Dec. 1, 1999, may also pay the difference in rates and
interest charges through the installment payment plan.
Rules Governing Installment Payment Plans
A. Installment payment plans must be made only through a payroll deduction for a maximum time
period of 60 months and will include interest at an annual percentage rate of 7.5%. The
member's employer may establish a payment schedule allowing the member to make monthly
payments through payroll deductions if the employer agrees to make the deductions and remit
payments to OPERS. Payments remitted by an employer for its employees must be kept
separate from the employer’s regular retirement contributions or any other payments to OPERS
including deferred compensation. Such payments do not qualify as “pretax” contributions under
the employer “Pick‐Up” Provisions of § 414(h) of the Internal Revenue Code.
B. The minimum total monthly installment payment plan amount is $25. The member is
responsible for maintaining the payment schedule. The payment due date will be based on the
payroll schedule set by the member’s employer. An installment not paid within 60 days of the
due date will result in termination of the installment payment schedule with the member given
the option of paying the balance of the actuarial cost or receiving partial credit for payments
made under the installment schedule as provided for in paragraph D of this section.
C. The monthly payment will be determined by amortizing the total amount due for the service to
be purchased over the period of the installment schedule using an interest rate equal to the
actuarially assumed interest rate adopted by the Board of Trustees for investment earnings for
the year in which the payment schedule is commenced.
D. If the installment payment is terminated for any reason, including termination of employment,
death of the member or by cessation of payments, the member or his beneficiary will have the
option of paying the remaining balance within six months. If the balance is not paid, the
member will receive credit for service prorated for only the principal amount paid and rounded
to the last full paid month. No refunds will be paid to the member.
* Participating employers cannot use the installment payment plan to repay delinquent service.
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E. Credit for service purchased on an installment schedule will not be added to the member’s
account until the entire balance is paid, except as provided for in paragraph D of this section. All
payments must be completed in the month prior to the effective retirement date of the
member. If any member or beneficiary elects to pay the balance during the six month period
provided for in paragraph D of this section, no benefits will be payable until the completion of
said six month period, or receipt of a signed waiver. In no event will retroactive benefit
payments be made, and the effective retirement date will be adjusted to the first day of the
month following the completion of payments or receipt of waiver.
F. Payments may be made directly to the System by the member or beneficiary if the member is in
an unpaid leave status, if the payroll is not sufficient to handle the entire payment, or during the
six‐ month period referred to in paragraph D of this section.
G. If the terminated payment plan was elected by a member who was paying the required
contributions and interest on compensation in excess of $25,000 for service prior to July 1, 1994,
no partial refunds will be made. All such contributions will be returned to the member or
beneficiary and compensation prior to July 1, 1994, shall be limited to $25,000.
H. Except as provided below, if the purchase is terminated for any reason, the purcha