§ 11-50-110 — Contributions by members of System - Picked up

Oklahoma § 11-50-110

• Jurisdiction: Oklahoma
• Title 11: Cities And Towns

Text

contributions. A. Each member in the Oklahoma Police Pension and Retirement System prior to the effective date of this act shall contribute to the System a minimum of eight percent (8%) of the member’s actual paid base salary. On or after the effective date of this act, each member shall contribute to the System a minimum of nine percent (9%). At the option of the participating municipality, the participating municipality may pay all or any part of the member’s required contribution. The sums contributed shall be paid online to the System as provided in this article within ten (10) days following the payroll period on which the contributions are based. Amounts deducted from the salary of a member and not paid to the System after thirty (30) days from each ending payroll date shall be subject to a monthly late charge of five percent (5%) of the unpaid balance to be paid by the municipality to the System. All funds received by a participating municipality for police retirement purposes shall be forwarded to the Oklahoma Police Pension and Retirement Board for credit to the Oklahoma Police Pension and Retirement Fund. B. Each municipality shall pick up under the provisions of Section 414(h)(2) of the Internal Revenue Code of 1986 and pay the contribution which the member is required by law to make to the System for all compensation earned after December 31, 1988. Although the contributions so picked up are designated as member contributions, such contributions shall be treated as contributions being paid by the municipality in lieu of contributions by the member in determining tax treatment under the Internal Revenue Code of 1986 and such picked-up contributions shall not be includable in the gross income of the member until such amounts are distributed or made available to the member or the beneficiary of the member. The member, by the terms of this System, shall not have any option to choose to receive the contributions so picked up directly and the picked-up contributions must be paid by the municipality to the System. Member contributions which are picked up shall be treated in the same manner and to the same extent as member contributions made prior to the date on which member contributions were picked up by the municipality. Member contributions so picked up shall be included in gross salary for purposes of determining benefits and contributions under the System. The municipality shall pay the member contributions from the same source of funds used in paying salary to the member, by effecting an equal cash reduction in gross salary of the member.

Legislative History

Added by Laws 1977, c. 256, § 50-110, eff. July 1, 1978. Amended by Laws 1980, c. 356, § 15, eff. Jan. 1, 1981; Laws 1988, c. 267, § 8, operative July 1, 1988; Laws 1992, c. 376, § 2, eff. July 1, 1992; Laws 2023, c. 53, § 2, eff. Nov. 1, 2023; Laws 2024, c. 105, § 1, emerg. eff. April 23, 2024; Laws 2024, c. 357, § 4, eff. July 1, 2025.