SECTION 590:40-1-1. Purpose

(a)   Policies, procedures and guidelines. The rules in this Chapter are adopted to ensure the efficient and orderly administration of the Defined Contribution System, to establish policies and procedures for implementing and administering the DC System, and to provide guidelines for the investment of funds which have been contributed for the benefit of Employees.

(b)   Establishment of Defined Contribution System. The Defined Contribution System has been established by statute to be composed of defined contribution plans pursuant to the Code Sections 401(a) and 457(b). The Board of Trustees is authorized to create a plan under Section 401(a) of the Code, which is intended to qualify as a tax-qualified money purchase governmental plan within the meaning of Code Section 414(d). The Board is authorized to take the necessary action to obtain a determination letter for the 401(a) plan. The Board is also authorized to establish a plan under Section 457(b) of the Code, which is intended to meet the requirements for an eligible governmental plan and to take the necessary action to obtain confirmation from the Internal Revenue Service that the 457(b) plan is consistent with the requirements of Code Section 457(b). The Plans are not subject to the Employee Retirement Income Security Act of 1974 ("ERISA"). The Plans and related Trust or Trusts are intended to meet the requirements of Code Sections 401(a), 457(b), and 501(a) respectively.

[Source: Added at 32 Ok Reg 2179, eff 9-11-15]