Okla. Admin. Code § 715:1-1-16

Current through Vol. 42, No. 4, November 1, 2024

Section 715:1-1-16 - General IRS qualification rules

In addition to other Code provisions otherwise noted, and in order to satisfy the applicable requirements under the Code, the retirement system shall be subject to the following provisions, notwithstanding any other provision of the retirement system law:

(1) The Board of Trustees shall distribute the corpus and income of the retirement system to the members and their beneficiaries in accordance with the retirement system law.

(2) Forfeitures arising from severance of employment, death, or for any other reason may not be applied to increase the benefits any member would otherwise receive under the retirement system law.

(3) The Board of Trustees or its designee may not:

(A) determine eligibility for benefits,

(B) compute rates of contribution, or

(C) compute benefits of members or beneficiaries in a manner that discriminates in favor of members who are considered officers, supervisors, or highly compensated, as prohibited under Code Section 401(a)(4)

(4) The Board of Trustees may not engage in a transaction prohibited by Code Section 503(b).

(5) Compliance with Code Section 401(a)(2) for exclusive benefit and nondiversion of trust funds:

(A) The assets of the Plan shall never inure to the benefit of an employer and shall be held for the exclusive purpose of providing benefits to members and their beneficiaries and defraying reasonable expenses of administering the Plan.

(B) The trust fund must not revert, and no contributions shall be permitted to be returned, to the employers, except due to a mistake of fact as permitted by Revenue Ruling 91-4.

Okla. Admin. Code § 715:1-1-16

Added at 11 Ok Reg 4783, eff 9-12-94 through 7-14-95 (emergency)¹; Added at 12 Ok Reg 3283, eff 7-27-95

Amended by Oklahoma Register, Volume 34, Issue 24, September 1, 2017, eff. 9/14/2017

¹This emergency action expired before being superseded by a permanent action. Upon expiration of an emergency action enacting a new Section, the Section is no longer effective. Therefore, on 7-15-95 (after the 7-14-95 expiration of the emergency action), the text of section 715:1-1-16 was no longer effective, and remained as such until added by permanent action on 7-27-95.