Oklahoma Administrative Code Title 590 - Oklahoma Public Employees Retirement System
Oklahoma Administrative Code Title 590 specifically addresses the Oklahoma Public Employees Retirement System (OPERS). This title, in conjunction with the Oklahoma Statutes (primarily Title 74, Sections 901-935), provides the framework for the administration and operation of OPERS.
Here's a breakdown of the typical structure and key provisions you'd find in Title 590:
Chapter Organization:
Chapter 1 - Administrative Operations: This chapter covers the general governance and administrative procedures of the OPERS Board of Trustees. It outlines how the system operates, including:
Board structure and duties.
Executive Director's powers and duties.
Roles of Retirement Coordinators for participating employers.
Procedures for petitions for rulemaking.
Dispute resolution and appeals processes for members.
Chapter 10 - Public Employees Retirement System: This is the most extensive chapter, delving into the core aspects of the defined benefit retirement plan for eligible public employees. It includes subchapters on:
General Provisions: Foundational rules and principles.
Definitions: Clarifying terms used throughout the code, such as "compensation," "credited service," and "participating employer."
Credited Service: Rules for how service time is earned, calculated, and recognized for retirement purposes, including provisions for transported or portable service credit.
Contributions and Compensation: Details on employee and employer contribution rates, and what constitutes "compensation" for retirement benefit calculations (e.g., excluding overtime, certain allowances).
Retirement Benefits: Eligibility requirements for normal, early, and disability retirement, benefit calculation formulas (often based on years of service, final average salary, and a computation factor), and various retirement options.
Survivors and Beneficiaries: Rules for benefits paid to surviving spouses and designated beneficiaries upon a member's death.
Special Provisions: Specific rules for certain groups, such as Department of Corrections employees, or related to issues like excess contributions or limited retirement benefits.
Post-Retirement Employment: Regulations concerning retired members returning to work for a participating employer, often with limitations on earnings or benefit suspension.
Qualified Domestic Relations Orders (QDROs): Procedures for dividing retirement benefits in divorce or legal separation cases. It's explicitly stated that OPERS is not subject to ERISA for these purposes.
Chapter 15 - Uniform Retirement System for Justices and Judges: This chapter outlines the specific administrative and benefit rules for the retirement system governing Oklahoma's justices and judges, which is also administered by OPERS.
Chapter 20 - Investments: This chapter likely details the investment policies and guidelines followed by the OPERS Board of Trustees in managing the system's assets.
Chapter 25 - Deferred Compensation: Covers the Oklahoma State Employees Deferred Compensation Plan (DCP), a Section 457(b) plan, which allows eligible state employees to supplement their retirement savings through pre-tax contributions.
Chapter 30 - Qualified Domestic Relations Orders: While also touched upon in Chapter 10, this chapter specifically provides more detailed rules and procedures for handling QDROs across the various plans administered by OPERS.
Chapter 35 - Deferred Savings Incentive Plan: Covers the Oklahoma State Employees Deferred Savings Incentive Plan (SIP), a Section 401(a) plan, which often involves employer contributions (e.g., $25/month for state employees contributing to the DCP).
Chapter 40 - Defined Contribution System: This is particularly relevant for state employees hired on or after November 1, 2015, who primarily participate in the "Pathfinder Plan" (a defined contribution plan) rather than the traditional defined benefit plan. This chapter covers eligibility, participation, contributions, and distributions for these defined contribution plans.
Key Concepts and Principles:
Defined Benefit vs. Defined Contribution: OPERS primarily manages a defined benefit plan (where benefits are determined by a formula), but also administers defined contribution plans (like Pathfinder, where benefits depend on contributions and investment performance).
Mandatory Participation: Participation in OPERS is generally mandatory for eligible state and local government employees in Oklahoma.
Vesting: Members must accumulate a certain amount of service credit (typically eight years) to be "vested" and entitled to a lifetime monthly retirement benefit.
Benefit Calculation: Benefits are commonly calculated using a formula involving years of service, final average salary, and a computation factor (e.g., 2% or an elected "step-up" to 2.5%).
Legislation and Updates: The Oklahoma Administrative Code is regularly updated to reflect new legislation (e.g., changes to COLA adjustments, eligibility rules, or contribution rates) passed by the Oklahoma Legislature. It's crucial to refer to the most current version.
For the most accurate and up-to-date information, it is always recommended to consult the official Oklahoma Administrative Code or the Oklahoma Public Employees Retirement System (OPERS) website, which often provides direct access to the relevant statutes and administrative rules.
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