Okla. Admin. Code § 590:10-5-8

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

Section 590:10-5-8 - Compensation for retirement purposes

(a) Compensation for retirement purposes, as determined by the Board of Trustees, shall be limited to salary and wages as follows:

(1) "Salary" means a predetermined or fixed amount of cash remuneration that is made payable by the participating employer to the employee in exchange for services rendered personally by the employee for the participating employer but excluding any type of overtime payments paid to an employee for service rendered in excess of full-time;

(2) "Wages" means cash remuneration, dependent upon the hours of work, that is made payable by the participating employer to the employee in exchange for services rendered personally by the employee for the participating employer excluding any type of overtime payments paid to an employee for service rendered in excess of full-time.

(b) Subject to the limitations contained elsewhere in the retirement act or in these rules, salary and wages include, by way of example and not by limitation, the following:

(1) any longevity payments made to employees based upon a standardized plan which recognizes length of service to the employer,

(2) pay differential which is paid to employees in return for special or hazardous shifts or in return for additional training or duties,

(3) amounts deducted from the employee's paycheck for retirement and deferred compensation contributions,

(4) pre-tax cafeteria purchases which are not funded by the employer or the employee's benefit allowance,

(5) performance, skill, or mission critical based pay adjustments.

(c) Any payments made by an employer to an employee which do not meet the definition of salary or wages as set forth in subsection (a) of this rule are not to be considered compensation for retirement purposes, including but not limited to the following:

(1) payments which are for reimbursement for expenses incurred by the employee,

(2) payments for maintenance or allowances, including, but not limited to, uniform allowances, clothing allowances, or housing allowances,

(3) any payments or amounts made available to an employee for insurance benefits or benefits allowances, including any amounts paid directly to the employee,

(4) illegal payments made to an employee by an employer,

(5) payments made in error to an employee,

(6) payments made by the employer for services rendered by the employee, which services are not part of the employee's job duties and responsibilities of his or her job position with the participating employer,

(7) payments in the form of tips or commissions paid to an employee in the course of his or her employment,

(8) payments made to other than the employee by the participating employer which are not deducted from the employee's paycheck,

(9) workers compensation benefit payments,

(10) any payments made by a participating employer to a non-employee, such as compensation to Board or Commission members,

(11) payments made in anticipation of employment, such as signing bonuses,

(12) any payments which are excluded from retirement compensation by law.

(d) The provisions of this rule shall be effective for all compensation paid for service by an employee to the employer on or after July 1, 2003. It shall be the responsibility of the employer to ensure that the appropriate retirement contributions are deducted or paid correctly and in accordance with this rule.

(e) The compensation of each member as set forth above shall be used for calculating the monthly retirement compensation for each retiring member. Provided, however, the calculation shall include the compensation prior to July 1, 2003, for which retirement contributions were withheld in determining the final average compensation, if applicable, for the highest three (3) years of the last ten (10) years of service.

Okla. Admin. Code § 590:10-5-8

Added as 590:10-1-14 at 20 Ok Reg 2809, eff 6-19-03 (emergency); Added at 21 Ok Reg 1759, eff 6-11-04