Effective July 1, 1999, upon the death of a retired member, the Plan will pay a $5,000 death benefit to
the member's beneficiary or estate of the member if there is no living beneficiary. Prior to July 1,
1999, a $4,000 lump sum death benefit was payable. The death benefit will be paid in addition to any
excess employee contributions or survivor benefits due to the beneficiary. Death benefits paid for the
years ended June 30, 2000 and 1999, totaled approximately $3,635,000 and $2,716,000, respectively.
Legislation was enacted in 1999 to provide a limited additional benefit for certain terminated members
eligible to vest as of July 1, 1998. This limited benefit is paid as an additional $200 monthly benefit
upon their retirement up to the total amount of certain excess contributions paid by the participant.
The estimated liability for this limited additional benefit of approximately $1 million has been included
in the calculation of the actuarial liability of the Plan at June 30, 2000 and 1999. Payment of such
additional benefit is dependent upon receipt of approval by federal taxing authorities.
For the years ended June 30, 2000 and 1999, the Plan remitted up to $75 per month per eligible
member receiving retirement benefits, excluding beneficiaries and surviving spouses, for health
insurance premiums to the Oklahoma State and Education Employees Group Insurance Board, which
administers various group health benefit plans for the State. The Plan is required by statute to remit
this payment for eligible members but has no administrative functions related to the payment and no
portion of the contribution amounts of either active members or state and local agencies is specifically
identified by statute as relating to such payment. Accordingly, the provisions of GASB Statement No.
26, "Financial Reporting for Postemployment Healthcare Plans Administered by Defined Benefit
Pension Plans," are deemed not to apply. The amount remitted for the years ended June 30, 2000
and 1999, for such premiums was approximately $12,027,000 and $11,855,000, respectively.
The contribution rates for each member category of the Plan are established by the Oklahoma
Legislature and as recommended by the Board based on an actuarial calculation, which is performed
to determine the adequacy of such contribution rates.
Each member participates based on their qualifying gross salary earned, excluding overtime. There is
no cap on the qualifying gross salary earned, subject to Internal Revenue Service ("IRS") limitations
The following contribution rates were in effect:
State, County, and Local Agency Employees
State employees and agencies - For 2000, State Agency employers contributed 10% on all salary.
For 1999, employers contributed 12.5% on all salary. State employees contributed 3.0% on the
first $25,000 of salary and 3.5% on salary above $25,000 for both years.
Participating county and local agencies - For 2000, contributions totaled 13.5% of salary,
composed of a minimum employee contribution rate of 3.5%) up to a maximum of 8.5% and a
minimum employer contribution rate of 5% and a maximum of 10%. For 1999, contributions totaled
16%) of salary, composed of a minimum employee contribution rate of 3.5% up to a maximum of
8.5% and a minimum employer contribution rate of 7.5%) and up to a maximum of 12.5%.
Elected officials' employee contributions are based on the maximum compensation levels set for all
members, and the participating employers are required to contribute on the elected officials' covered
salary using the same percentage and limits as applicable for State agencies. Elected officials must
select an employee contribution rate of 4.5%, 6.0%, 7.5%, 8.5%), 9.0% or 10%.
Effective July 1, 1999, elected officials must affirmatively elect or decline participation in the Plan
within 90 days after taking office. This decision is irrevocable and failure of an elected official to
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