SECTION 715:10-19-9. Withdrawals for financial hardship

(a)   Financial hardship is defined as an immediate and heavy financial need experienced by the member, resulting from a sudden and unexpected illness or accident of the member or of a dependent of the member, loss of the member's property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the member. The circumstances that constitute a financial hardship will depend upon the relevant facts and circumstances of each case, but, in any case, payment may not be made to the extent that such financial hardship is or may be relieved:

(1)   through reimbursement or compensation by insurance or otherwise;

(2)   by liquidation of the member's assets, to the extent the liquidation of these assets would not itself cause severe financial hardship;

(3)   by cessation of salary reduction contributions under the Program; or

(4)   by other distributions and nontaxable (at the time of the loan) loans from plans maintained by the employer, by any other employer, the employer(s) of the member's spouse, or by borrowing from commercial sources on reasonable commercial terms, in an amount sufficient to satisfy the need.

(b)   Specific needs that are deemed to satisfy the requirements of a hardship withdrawal include, but are not limited to:

(1)   Medical expenses incurred by the member, the member's spouse or dependents which are not covered by insurance or other reimbursement;

(2)   Costs directly related to the purchase of a principal residence for the member (excluding mortgage payments);

(3)   Payment of tuition, related educational fees, and room and board expenses, for the next twelve (12) months of post-secondary education for the member, or the member's spouse or dependents; or

(4)   Payments necessary to prevent the eviction of the employee from the employee's principal residence or foreclosure on the mortgage of that residence.

(c)   Withdrawal amounts are permitted only to the extent reasonably necessary to satisfy the financial hardship. Withdrawal of credited earnings in the member's account is not permitted.

(d)   The participating employer is responsible for the determination of hardship, in accordance with procedures established under the employer's plan.

(e)   Distributions made via a hardship withdrawal request may be subject to an early distribution penalty of ten percent (10%).

(f)   A member who receives a hardship withdrawal is required to cease salary reduction contributions for six (6) months following the withdrawal.

(g)   In lieu of the provisions of this section, an employer may prescribe hardship withdrawal requirements.

[Source: Amended at 11 Ok Reg 4409, eff 7-14-94 through 7-14-95 (emergency); Amended at 12 Ok Reg 3285, eff 7-27-95; Amended at 13 Ok Reg 3899, eff 8-5-96 through 7-14-97 (emergency); Amended at 14 Ok Reg 3216, eff 7-25-97; Amended at 19 Ok Reg 2729, eff 7-11-02; Amended at 22 Ok Reg 2255, eff 6-25-05; Amended at 27 Ok Reg 131, eff 10-2-09 (emergency); Amended at 27 Ok Reg 1282, eff 5-27-10]

Note

EDITOR’S NOTE: This emergency action expired before being superseded by a permanent action. Upon expiration of an emergency amendatory action, the last prior permanent text is reinstated. Therefore, on 7-15-95 (after the 7-14-95 expiration of the emergency action), the text of section 715:10-19-9 reverted back to the permanent text that was effective prior to enactment of the emergency action on 7-14-94, and remained as such until amended again by permanent action on 7-27-95.

EDITOR’S NOTE: This emergency action expired before being superseded by a permanent action. Upon expiration of an emergency amendatory action, the last prior permanent text is reinstated. Therefore, on 7-15-97 (after the 7-14-97 expiration of the emergency action), the text of section 715:10-19-9 reverted back to the permanent text that became effective 7-27-95, as was last published in the 1996 Edition of the OAC, and remained as such until amended again by permanent action on 7-25-97.