title 270. oklahoma firefighters pension and retirement system

TITLE 270. OKLAHOMA FIREFIGHTERS PENSION AND RETIREMENT SYSTEM

CHAPTER 10. FIREFIGHTERS PENSION AND RETIREMENT PLAN

270:10-1-8. Standard operating procedures

(a) Benefits.

(1) All pension benefits are paid in arrears the last

working day of the month.

(2) In determining a paid member's normal retirement date,

fractional round-up of months and days shall not be used even

if the member has volunteer credited service.

(3) If a member serves the majority of the final month of

service, the final month will count as a full month of

credited service.

(4) Where longevity pay or other salary which requires

contributions is paid in a lump sum to a member, only the

amount that would have been paid for a member's last thirty

(30) months of credited service will be used for determining

final average salary.

(5) Retirement pursuant to 11 O.S. § 49-106 has at times

included reemployment of a member by a participating

municipality in a position which is not covered by the

System. Thus, in-service distributions from the System to

such a member are permitted. If a retired member is

reemployed by a participating municipality in a paid position

which is covered by the System, such member's monthly

retirement payments shall cease during such period.

(b) Clerks and fire chiefs.

(1) The clerk and/or the fire chief of a participating

municipality, fire protection district, county fire

department or development authority are responsible for the

administration of local retirement issues affecting all

members of the System, including but not limited to

enrollment of eligible members, assisting members in making

application for benefits, and collection and payment of

employer and member contributions.

(2) The clerk and/or the fire chief shall notify the System

of any changes regarding active members such as termination,

mailing addresses, and deaths. The fire chief will assist the

clerk in obtaining necessary information concerning active

members. Notices of termination must be provided on the

System's Form 8 and shall be signed by the Fire Chief.

(1) A member of the System changing status from a paid

member to a volunteer member is not entitled to combine the

paid credited service and the subsequent volunteer credited

service towards a paid or a volunteer pension. If a paid

member whose first service with a participating employer of

the System occurs prior to November 1, 2013, has completed

ten (10) years but less than twenty (20) years of credited

service, or a paid member whose first service with a

participating employer of the System occurs on or after

November 1, 2013, has completed eleven (11) years but less

than twenty-two (22) years of credited service, such member

would be eligible for a paid vested benefit upon meeting the

requirements set forth in 11 O.S. Section 49-117.1. The

member whose first service with a participating employer of

the System occurs prior to November 1, 2013, would need to

complete ten (10) or more years as a volunteer member to be

eligible to receive a vested volunteer benefit and a member

whose first service with a participating employer of the

System occurs on or after November 1, 2013 would need to

complete eleven (11) or more years as a volunteer member to

be eligible to receive a vested volunteer benefit as set

forth in 11 O.S. Section 49-101.

(2) Volunteer members are deemed to be employees of a fire

department of a participating municipality for the purposes

of the administration of the System.

(d) State Board.

(1) Applications for pension benefits will not be considered

by the State Board until the applicant terminates employment

with the fire department of a participating municipality on

or before the date of the meeting of the State Board in which

the application is considered.

(2) Applications for pension benefits, entrance into the

system, refunds of contributions, etc. will be placed on the

State Board agenda when all paperwork has been properly

completed and received by the system. All necessary paperwork

should be filed with the system no later than the Friday

preceding the State Board's regular meeting so as to allow

for sufficient time to process the application.

(e) Member deaths and beneficiaries.

(1) Guardian checks will be addressed with the Guardian's

name and the statement: "Guardian of " on

the face of the check.

(2) The Estate of the retiree or beneficiary shall be

entitled to the benefit check written for the month a retiree

or beneficiary dies.

(3) To continue monthly benefits on a child who has reached

eighteen (18) years of age, verification that the child is

enrolled full-time in an accredited school of learning must

be received by the System. Documentation is required each

semester until the child reaches twenty-two (22) years of age

or marries at which time the benefits will cease.

(4) Step-children and grandchildren of members are not

beneficiaries unless they are adopted by the member.

(5) Children adopted prior to January 1, 1981, are

considered beneficiaries even though the child(ren) may have

been adopted after the member's retirement date.

(6) A valid marriage certificate or other necessary proof of

marriage is required before an Application of Surviving

Spouse for Pension can be considered by the State Board.

(f) Membership.

(1) A part-time firefighter shall not belong to the System.

(2) All firefighters must be members of the System if their

employer is a participating municipality in the System.

(3) A candidate for a paid firefighter position must first

complete a required State Board approved pre-employment

physical performance/agility test and physical examination in

order to participate and receive any benefits from the

System. The physical examination will be reviewed by a

physician, selected by the State Board, to determine if the

applicant meets the required medical standards. When the

System receives all the information necessary for entrance

into the System, including the written notice from the

physician, selected by the State Board, that the candidate

has met the minimum medical requirements for entrance, the

Executive Director shall have the authority to approve an

entrance date for the candidate no earlier than the date all

the necessary information for entrance is received or the

actual hire date whichever is later, provided that the date

between the time of the administration of the physical

examination and the approval for membership in the System by

the Executive Director and the candidate's actual hire date

by the participating municipality is less than six (6)

months. The State Board shall have the authority to deny or

revoke the membership of a candidate submitting false

information in such candidate's membership application and

shall have the final authority in determining eligibility for

membership in the System.

(4) An applicant for a paid firefighter position, who is an

active volunteer firefighter with the same fire department,

and who has passed the physical performance/agility test

approved by the State Board as a condition for entrance as a

volunteer firefighter shall only be required to pass the

physical examination upon being employed as a paid

firefighter if employed by the same fire department.

(5) A terminated paid firefighter who returns to work as a

paid firefighter within six (6) months of his or her

termination date will not be required to complete another

physical examination.

(6) The classification of a paid firefighter shall be a

firefighter who is carried on the city payroll as a paid

firefighter and who receives a salary which is more than

twice the amount of the minimum pension of a volunteer

firefighter. Any firefighter making more than this amount

will need to complete the required physical

performance/agility test and physical exam and his or her

employer must remit both the employee and employer

contributions to the System.

(g) Credited Service.

(1) If a firefighter is off the participating municipality's

payroll for a period of time and employer and employee

contributions are not received by the System, that period of

time will not count as credited service until said

contributions are received by the System.

(2) New volunteer cities joining the System may purchase up

to five (5) years of credited service for each member of the

department at the annual rate in effect as of the date of

purchase, provided verifiable evidence of active firefighter

service for the purchased years for each individual is

provided to the System. Even though a city is exempt from

contributions, contributions must be paid for a volunteer

firefighter to receive purchased credit.

(3) If a question arises concerning a member's correct

amount of service time, the member must submit to the State

Board three (3) affidavits, based upon the actual knowledge

of the member's correct service time, and all other necessary

documentation, as may be required by the State Board. The

Chairman of the State Board may direct a member of the State

Board or an employee of the System to visit the member and

the city in question for further verification. Service time

may be corrected to allow not more than twenty (20) years of

service for a member of the Oklahoma Firefighters Pension and

Retirement System whose first employment with a participating

employer of the System occurs prior to November 1, 2013, or

not more than twenty-two (22) years of service for a member

of the Oklahoma Firefighters Pension and Retirement System

whose first employment with a participating employer of the

System occurs on or after November 1, 2013.

(4) Credited Service under 11 O.S. Section 49-138(C)(2)

includes service in the following areas of responsibility and

during the following time periods:

(A) former Yugoslavia (including Bosnia-Herzegovina,

Croatia, and Macedonia) from November 21, 1995 to October

12, 1998;

(B) Kosovo from March 24, 1999 to May 1, 2000;

to December 18, 2014; and

(D) the Iraq war from March 3, 2003 to December 15, 2011.

(h) Disability.

(1) Applications for disability pensions shall provide

medical evidence certifying the disability, proof of injury

unless otherwise provided, and that the applicant can no

longer perform the duties of a firefighter. The proof of

injury must be proof of the specific injury that prevented

the disability pension applicant from continuing the duties

of a firefighter from the time of injury until present. In a

case where a disability applicant returned to performing the

duties of a firefighter at any time following the injury, the

proof of injury must be accompanied by proof that certifies

cumulative evidence of a continuing condition relating to

that specific injury until the time of filing the disability

application. In a case where a firefighter returned to a

"light duty" or "restricted duty" only status, proof

certifying the disability applicant's work status from the

injury time until present shall be submitted along with the

disability application. The application shall be filed with

the Local Board, if the Local Board exists, or the Executive

Director of the System. The existing Local Board or the

Executive Director of the System will determine if additional

medical evidence is required. If additional medical evidence

is required, the State Board shall be responsible for payment

of any physical examinations and certifications.

(2) If any additional medical evidence is produced

concerning a disability pension application, said medical

evidence must be presented to the Local Board, if the Local

Board exists, or the Executive Director before the State

Board considers the application. If an applicant requests a

hearing before the State Board, all evidence concerning the

application may be presented providing all parties affected

by the hearing agree.

(3) A stroke condition that has been medically certified to

be caused by heart disease shall be categorized as heart

disease for the purpose of applying line of duty presumptions

pursuant to 11 O.S. §49-110.

(4) Any additional medical testing requested by a physician

for the purpose of certification of a disability at the

request of an existing Local Board shall be approved by the

Executive Director of the System prior to the medical

testing.

(5) A volunteer member who has completed more than ten (10)

years of credited service shall be eligible for consideration

of a disability in line of duty pension and entitled to the

presumptions pursuant to the provisions of 11 O.S. §49-110

provided that competent medical evidence is presented to

support the certification of said disability request.

(6) A participating municipality may make an application for

a disability pension on behalf of a member provided that

medical evidence is presented supporting the existence of a

disability. The member may present medical evidence to the

contrary.

(7) If there are physician's statements presented which

disagree or there is only one physician statement presented,

then the Local Board, if one exists, or the Executive

Director shall have the medical records examined by a

physician of their choosing. If the participating

municipality has made the application request and the member

presents contrary medical evidence it shall be the

responsibility of the existing Local Board or the Executive

Director to obtain an authorization of release of medical

records from the member prior to the third physician

examination.

(i) Local Boards.

(1) If an existing Local Board desires to have a member, who

is receiving a disability pension, re-examined by a physician

for the purposes of certifying if a disability still exists,

the request shall be approved by the State Board.

(2) An existing Local Board meets when necessary to review

applications for benefits and disability benefits. The Local

Board minutes must show action taken by roll call vote. In

cities and towns where the city clerk and city treasurer hold

both positions the local board becomes a five (5) member

board. The board members shall elect a vice-chairman from

among all board members who shall assume the duties of the

mayor/chairman in that person's absence.

(3) Any action taken by the local board must be documented.

The local board must present objective evidence to the State

Board regarding its recommendation. The State Board will

consider only the evidence actually presented. The State

Board will act upon the evidence presented and render a final

decision.

(4) If the city charter provides, the city council or

similar authority, in the absence of the mayor, city clerk or

the treasurer, may designate an authorized official as a

replacement member of the local board, such as a vice-mayor

if he or she has the responsibilities of the mayor. A

firefighter member of the local board cannot send a

replacement. Only local board members present at a local

board meeting may vote. The chairman shall have a casting

vote with the members only when necessary to avoid a tie vote

among local board members. All local board meetings are

subject to the Open Meeting Act.

(j) Contributions.

(1) There shall be a sixty (60) day waiting period of refund

of contributions. If the firefighter requesting the refund of

contributions was terminated from service, which resulted in

litigation or administrative action, the refund of

contributions will not be made until there is a final

judgment or conclusion to the litigation or administrative

action.

(2) Gross salary shall include but not be limited to base

salary, longevity pay, fire service training and other

education pay, scuba pay, out of class pay, one time bonus

pay earned during the current twelve (12) month period of

employment, and buy back pay when paid on an annual basis and

available to all firefighters. Gross salary shall not include

payment for unscheduled overtime, payment for accumulated

sick, annual or any other similar leave upon termination from

employment, any uniform or clothing allowance, car allowance

or any other compensation for reimbursement of out-of-pocket

expenses. All other compensation not specifically mentioned

must have contributions paid on them. Contributions shall be

deducted from gross salary prior to federal and state income

tax withholdings deductions.

(3) Volunteer pension contributions are due on July 1 of

each year. Cities, towns or fire protection districts subject

to the statutory exemption from payment of volunteer

contributions shall file for the exemption with the System on

an annual basis.

(4) Workers Compensation benefits shall not be considered a

part of gross salary for the purpose of determining pension

benefits. The System will not accept member contributions

related to workers compensation.

(5) If a paid member terminated employment prior to January

1, 1981, and then subsequently returns to work as a paid

member after January 1, 1981 and then again terminates,

contributions paid in prior to January 1, 1981 would not be

refundable.

(6) Salary means a predetermined sum payable at specified

and regular times for services rendered, including benefits

accumulated and paid as salary; furthermore, any salary

received that is to be used in computing a "final average

salary" shall be reduced or pro-rated to a monthly amount. It

shall be a violation of this section to establish a special

pay plan for the purpose of evading the intent of this

section.

(k) Reinstatement of Prior Service.

(1) If a paid firefighter terminates employment and receives

a refund of contributions and then subsequently returns to

work for a participating municipality, all withdrawn

contributions must be paid back to the System plus 10 percent

(10%) interest per annum (from the date the member received

his or her accumulated contributions to the date of

repayment) in order for the member to receive credit for the

missed credited service time.

(2) The member's payment must be made to the System within

ninety (90) days following acceptance of the member's

application for reinstatement of prior service.

(3) The member may pay for reinstatement of prior service by

a lump-sum payment by check or money order. The member may

also pay for reinstatement of prior service by a lump-sum

payment (with interest) of non-Roth funds from a Code Section

403(b) annuity, a governmental 457 plan within Oklahoma or a

Code Section 401(a) qualified plan.

(l) Deferred Option Plan (Plan B).

(1) Upon termination of employment, a member participating

in the Deferred Option Plan (Plan B) pursuant to 11 O.S.

Section 49-106.1 A, B, C, D, E and F shall have the following

options:

(A) Receive a lump sum payment of the member's total

account balance, an annuity, a partial lump sum payment or

withdrawal, or installment payments of the member's

accumulated Plan B balance as described below. Direct

rollovers are permitted pursuant to the provisions of 11.

O.S. Section 49-106.3. Pursuant to 11 O.S., Section 49-

106.1.F., the approved method of payment for any interest

earnings credited to a member's Plan B account balance on

or about June 30, 2018, and thereafter, as described in

(E) of this paragraph, is either a direct lump sum payment

of the interest earned for the applicable plan year, or

the payment or transfer of the interest earned for the

applicable plan year to an Eligible Retirement Plan as

defined in 11 O.S., Section 49-106.3. Failure to make an

election of either a direct lump sum payment of the

interest earned for the applicable plan year, or the

payment or transfer of the interest earned for the

applicable plan year to an Eligible Retirement Plan shall

result in:

(i) an automatic rollover of the interest earned for

the applicable plan year to an individual retirement

plan, consistent with the mandatory distribution rules

of Section 401(a)(31) of the Internal Revenue Code of

1986, as amended, for any member before the member

attains the later of age 62 or the member's normal

retirement date; and

(ii) a direct lump sum distribution to the member for

any other member before such member attains age seventy

and one-half (70 ½).

(B) Subject to the required minimum distribution

provisions of 11 O.S. Section 49-106 ("IRS Required

Minimum Distribution") and the mandatory interest

distribution provisions of (E) of this paragraph, the

State Board retains custody of the member's remaining

accumulated Plan B balance until there is a complete and

final payout of a member's entire Plan B balance. No more

than once a month, the member may elect, with eight (8)

working days advance written notice, to change such payout

period or payout amount for installment payments.

elect, with eight (8) working days advance written notice,

a withdrawal, but no more than one such withdrawal may be

made per month and each withdrawal must be as of the last

working day of a month. If such withdrawal is made after

installment payments have commenced, appropriate

adjustments may be made in the installment payout period

to reflect such withdrawal.

(D) To the extent the Plan B balance is to be paid to the

member's surviving spouse whether as a designated

recipient or by statute, then if the member dies with a

balance in the account, such balance will be paid in a

lump sum or will continue to be paid in the same manner as

was applicable to the member, as elected by the surviving

spouse who meets the requirements of paragraph 16 of 11

O.S., Section 49-100.1, except that automatic rollover of

the mandatory distribution of interest shall not apply.

Any designated recipient who is not the surviving spouse

shall receive a lump sum payment from the account equal to

the balance in the account of the member or any other

approved method of payment. If there are no surviving

designated recipients, a lump sum payment from the account

equal to the balance in the account shall be paid to the

member's estate. For purposes of this subparagraph, if a

trust is the designated recipient (even if the surviving

spouse is a beneficiary under such trust), the deceased

member's account balance may not remain in the Deferred

Option Plan (Plan B) after the member's death.

(E) The interest earned annually on the Plan B account

balances shall be calculated based on the return of the

investment portfolio of the fund on June 30 of each year

as provided in 11 O.S., Section 49-106.1(E)(2) and shall

be credited as of June 30 for such plan year. The

determined annual interest rate shall be applied on a pro

rata account balance in the year the rate is established.

Commencing with the plan year ending on June 30, 2018 and

for each plan year thereafter, for retired members,

disabled members and surviving spouses receiving monthly

retirement benefits from the System (Plan A benefits), the

interest earned annually on the member's accumulated Plan

B balance shall be determined as of June 30 of such plan

year and shall be distributed each year as follows:

(i) on or about June 30, 2018, and on or about each

subsequent June 30, of such plan year, the initial

distribution of interest earnings calculated based on

the actuarial assumed interest rate on the first day of

the plan year as certified by the actuary in the yearly

valuation report shall be distributed; and

(ii) by September 30 of the following plan year, a

true-up distribution of any additional earnings posted

to a member's account above the interest earnings

provided for in (i) of this subparagraph, shall be

distributed.

(F) The amount of the mandatory distribution of interest

for any plan year shall be reduced by the amount of

voluntary withdrawals from the member's Plan B balance

during the plan year. No individual shall receive both a

mandatory distribution of interest and an IRS Required

Minimum Distribution in the same calendar year. In a

calendar year in which the System would otherwise

distribute both a mandatory distribution of interest and

an IRS Required Minimum Distribution to an individual, the

IRS Required Minimum Distribution shall be made and not

the mandatory distribution of interest. If the member dies

before receiving the mandatory distribution of interest,

the member's surviving spouse will receive the mandatory

distribution of interest. If the member dies before

receiving the mandatory distribution of interest with a

nonspouse designated beneficiary (or the estate as the

recipient), such nonspouse designated beneficiary (or

estate) will receive the mandatory distribution of

interest as part of a payout of the entire account. If a

member withdraws all of his or her account balance prior

to June 30 of a given plan year, the member shall receive

at the time of withdrawal, a distribution of interest

earnings on the withdrawn amount equal to the actuarial

assumed interest rate as certified by the actuary in the

yearly valuation report of the actuary on a pro rata

basis. If the annual interest earnings calculated on June

30 of a given year exceed the actuarial assumed interest

rate as certified by the actuary in the yearly valuation

report of the actuary, a member who withdraws all of his

or her account balance prior to June 30 of said plan year

shall receive a distribution of additional interest

earnings equal to the difference between the minimum

actuarial interest rate and the calculated interest rate

on a pro rata basis.

(G) At the conclusion of a member's participation in

Plan B, the member must terminate employment and shall

start receiving the member's accrued monthly retirement

benefit from the System. Such a member may be reemployed

by a participating municipality and receive in-service

distributions of such member's accrued monthly benefit

from the System, but only in a position not covered by the

System.

(2) Participation in the Oklahoma Firefighters Deferred

Option Plan must begin the first day of a month.

(3) For a lump sum payment, direct rollover or a combination

thereof, which is paid when the regular monthly benefits

commence (Plan A), an exclusion ratio must be calculated and

applied to the distribution amount from Plan B to determine

the portion that may be excluded from income. This exclusion

ratio will equal the member's after-tax contributions to the

System divided by the expected return. The expected return is

the sum of: (A) the member's accumulated Plan B balance plus

(B) the amount of the value of the monthly pension from Plan

A that the member is expected to receive over time based on

single life expectancy factors from Table V issued as part of

the income tax regulations under Section 72 of the Internal

Revenue Code of 1986.

(4) The rules under this subsection shall only apply to a

member whose first employment with a participating employer

of the System occurred before November 1, 2013.

(m) Deferred Option Plan under the Back DROP Provision.

(1) For purposes of this subsection, the definitions as

stated in 11 O.S. Section 49-106.1 (H)(1) shall apply.

(2) In lieu of participating in the Deferred Option Plan

(Plan B) pursuant to subsections A, B, C, D, E, F and G of 11

O.S. Section 49-106.1 (referred to herein as an election

under Plan B), a member may elect to participate in the

Deferred Option Plan pursuant to 11 O.S. Section 49-106.1(H)

(referred to herein as an election under the Back DROP

provision) and this subsection.

(A) The applicant must submit his or her completed

application for participation in the Deferred Option Plan

under the Back DROP provision on the form provided by the

System.

(B) The application must be received by the System no

later than eight (8) working days from the end of the

month in order to receive a payment at the end of that

month. All distributions shall be paid on the last working

day of a month.

Deferred Option Plan under the Back DROP provision, the

member's account balance shall remain in the System under

the same conditions as described in (l) of this Section,

until distributed.

(D) A member in the Back DROP has the same distribution

options as described in (l)(1)(A), (B) and (C) of this

Section.

(E) If the member dies with a balance in the account,

such balance will be paid in a lump sum or will continue

to be paid in the same manner as was applicable, as

elected by the surviving spouse who meets the requirements

of paragraph 16 of 11 O.S. Section 49-100.1. If there is

no surviving spouse, any remaining beneficiaries shall

receive a lump sum payment(s) from the account equal to

the balance in the account of the member, or any other

approved method of payment. If there are no surviving

beneficiaries, a lump sum payment from the account equal

to the balance in the account shall be paid to the

member's estate. For purposes of this subparagraph, if a

trust is the beneficiary (even if the surviving spouse is

a beneficiary under such trust), the deceased member's

account balance may not remain in the Deferred Option Plan

(Plan B) after the member's death.

(3) At the member's termination date, his or her monthly

pension benefit shall be determined based on earlier attained

credited service and on the final average salary as of the

back drop date. The member's individual deferred option

account shall be credited with an amount equal to the

deferred benefit balance, and the member shall terminate

employment with all participating municipalities as a

firefighter and the member shall start receiving the member's

accrued monthly retirement benefit from the System. Such a

member may be reemployed by a participating municipality and

receive in-service distributions of such member's accrued

monthly retirement benefit from the System, but only in a

position not covered by the System. On the member's back drop

date, the member's retirement benefit will be frozen, and at

no time will the member be able to increase his or her

benefit due to additional years of service, salary or other

promotional increases.

(4) The member's credit of his or her deferred benefit

balance shall be as follows:

(A) An amount equal to the accumulated contributions the

member made to the System from his or her back drop date

to termination date with interest based upon how the

benefit would have accumulated on a compound basis as if

the member had participated in the Deferred Option Plan

(Plan B) pursuant to 11 O.S. Section 49-106.1 A-E from his

or her back drop date to termination date;

(B) An amount equal to all monthly retirement benefits

that would have been payable had the member elected to

cease employment on the back drop date and receive a

service retirement from the back drop date to the

termination date with applicable cost of living

adjustments and with interest based on how the benefit

would have accumulated on a compound basis as if the

member had participated in the Deferred Option Plan

pursuant to O.S. 11 Section 49-106.1 A-E from his or her

back drop date to termination date; and

contributions from the back drop date to the termination

date, with interest based on how the benefit would have

accumulated on a compound basis as if the member had

participated in the Deferred Option Plan pursuant to 11

O.S. Section 49-106.1 A-E from his or her back drop date

to termination date.

(5) The provisions of 11 O.S. Section 49-106.1 B, C, E, F

and G shall apply to this subsection.

(6) A member shall not participate in the Deferred Option

Plan pursuant to the Back DROP provision if the member is

participating in Plan B pursuant to subsections A, B, C, D,

E, F and G of 11 O.S. Section 49-106.1.

(7) For a lump sum payment, direct rollover or a combination

thereof, which is paid when the regular monthly benefits

commence (Plan A), an exclusion ratio must be calculated and

applied to the distribution amount from the Back DROP to

determine the portion that may be excluded from income. This

exclusion ratio will equal the member's after-tax

contributions to the System divided by the expected return.

The expected return is the sum of: (A) the member's deferred

benefit balance plus (B) the amount of the value of the

monthly pension from Plan A that the member is expected to

receive over time based on single life expectancy factors

from Table V issued as part of the income tax regulations

under Section 72 of the Internal Revenue Code of 1986.

(8) The rules under this subsection shall only apply to a

member whose first employment with a participating employer

of the System occurred before November 1, 2013.

(n) Deferred Option Plan (Plan B) For A Member of the System

Whose First Employment With A Participating Employer of the

System Occurs On Or After November 1, 2013. [RESERVED]

(o) Vested Rights.

(1) A paid firefighter who terminated active service with

more than ten (10) years of credited service with the System

prior to July 8, 1985, must return to active service as a

paid firefighter in order to establish vested rights.

(2) A volunteer firefighter who terminated active service

with ten (10) years of credited service with the System prior

to July 20, 1987, must return to active service as a

volunteer firefighter in order to establish vested rights.

(p) Automatic Rollover.

(1) "Mandatory distribution" means a distribution that is an

eligible rollover distribution subject to Section 401(a)(31)

of the Internal Revenue Code of 1986, as amended, and is made

without the member's consent to a member before the member

attains the later of age 62 or normal retirement date. A

distribution to a surviving spouse, alternate payee, or a

distribution made upon a member's death is not a mandatory

distribution for purposes of the automatic rollover

requirements of Section 401(a)(31)(B) of the Internal Revenue

Code of 1986, as amended.

(2) In the event of a mandatory distribution greater than

$1,000 made on or after June 28, 2018, if the member does not

elect to have such distribution paid directly to an eligible

retirement plan specified by the member in a direct rollover

or to receive the distribution directly, then the State Board

shall pay the distribution in a direct rollover to an

individual retirement plan designated by the State Board.

For purposes of determining whether a mandatory distribution

is greater than $1,000, the portion of the member's

distribution attributable to any rollover contribution is

included.