Termination option; vesting.
Oklahoma City Municipal Code § 40-70
in effect§ 40-70. - Termination option; vesting.
(a) Vesting. When an Employee's service terminates after five years of Vesting Service, but before his/her Normal Retirement Age, his/her Employee Contributions to the System shall cease. For each Employee hired or rehired by the City on or after January 1, 2008, five years of service in the preceding sentence shall mean five Consecutive Years of Vesting Service. He/she may elect either (1) to leave his/her Employee Contribution Account on deposit with the System and be a Deferred Vested Participant, or (2) to receive, in lieu of all other benefits, a refund of his/her Employee Contribution Account. If a Participant makes an election to receive a refund of his/her Employee Contribution Account, he/she shall receive payment no earlier than 91 days after his/her date of Termination of Employment and provided such Participant is not an employee of the City in any capacity at the time of the refund and has not been employed by the City in any capacity since his/her date of Termination of Employment. Effective January 1, 2012, an Employee is fully vested upon attainment of his/her Normal Retirement Age.
(b) Deferred Vested Participant. If such a Participant fails to elect either (1) or (2) under Section 40-70(a) within 90 days after his/her Termination of Employment, he/she shall be deemed to have elected to leave his/her Employee Contribution Account, regardless of amount, on deposit with the System and become a Deferred Vested Participant. A Deferred Vested Participant shall be entitled to a deferred Retirement Benefit. Such deferred Retirement Benefit shall be payable commencing on the Deferred Vested Participant's Normal Retirement Age. A Deferred Vested Participant may elect at any time prior to his/her Normal Retirement Age, to receive, in lieu of all other benefits, a refund of his/her Employee Contribution Account.
(c) Early commencement. In lieu of receiving the deferred retirement benefit upon his/her normal retirement date, the deferred vested participant may elect to receive a reduced retirement benefit beginning anytime subsequent to his/her attainment of age 55 with at least five years, but less than 25 years of service. For each employee hired or rehired by the City on or after January 1, 2008, 25 years of service in the preceding sentence shall mean 25 Consecutive Years of Vesting Service. The reduction shall be as provided in Section 40-69.
(d) Determination of Retirement Benefit for Re-employed Deferred Vested Participant.
(1) Re-employed Prior to January 1, 2008: Each re-employed Deferred Vested Participant who began his/her subsequent period of service prior to January 1, 2008, shall have his/her Retirement Benefit based upon his/her Average Final Compensation. A Deferred Vested Participant who subsequently re-enters service may qualify to receive additional service credits under Section 40-75 for any subsequent period or periods of consecutive employment.
(2) Re-employed On or After January 1, 2008:
a. Without Five Consecutive Years of Vesting Service. Each re-employed Deferred Vested Participant who begins his/her subsequent period of service on or after January 1, 2008, must have five Consecutive Years of Vesting Service in order to obtain a vested right in the years of service acquired during the subsequent employment period, otherwise, upon the Participant's subsequent Termination of Employment, the Deferred Vested Participant shall only be entitled to receive a refund of his/her Employee Contribution Account attributable to the period of re-employment. Such Deferred Vested Participant's Retirement Benefit shall be based on the prior period of employment only, which Retirement Benefit will be determined in accordance with the System's formula and Average Final Compensation for computing the Retirement Benefit and the ordinances in effect at the Participant's prior termination of employment.
b. With Five Consecutive Years of Vesting Service. If the re-employed Deferred Vested Participant obtains five Consecutive Years of Vesting Service during the Participant's subsequent period of employment, the Deferred Vested Participant shall vest for the subsequent period of employment and upon his/her subsequent Termination of Employment, his/her Retirement Benefit shall be determined based on the System's formula and Average Final Compensation for computing the Retirement Benefit and the ordinances in effect at the Participant's subsequent Termination of Employment if a greater benefit is produced, and if not, the total Retirement Benefit will be determined by adding the Retirement Benefit as calculated at the prior Termination of Employment plus the subsequent Retirement Benefit calculated at the time of the subsequent Termination of Employment to determine each portion of the Retirement Benefit.
(e) No Commencement of Retirement Benefits While Employed. A Deferred Vested Participant may not commence Retirement Benefits at any time while he/she is employed as an Employee of the City.
(f) Death of Deferred Vested Participant While Re-employed. In the event a Deferred Vested Participant dies while re-employed, then the Participant's Retirement Benefit shall be payable in accordance with Section 40-73.
(g) Death of Deferred Vested Participant. In the event of the death of any Deferred Vested Participant who had not been awarded retirement pay but was eligible because he/she had attained the age of 55 prior to death, the surviving spouse of that deceased Deferred Vested Participant may elect to receive monthly, as a Joint Annuitant pursuant to Option A as described in Sections 40-71 and 40-72, for life, the amount of the Retirement Benefit for which the Participant would have been eligible at the time of death under the provisions of Section 40-65. However, if the Deferred Vested Participant had not been eligible at the time of death to receive retirement pay, the surviving spouse is entitled to a refund of the Deferred Vested Participant's Employee Contribution Account.
(Ord. No. 21916, § 2, 2-12-02; Ord. No. 22486, § 1, 7-7-04; Ord. No. 23463, § 2, 10-9-07; Ord. No. 23758, § 2, 12-9-08, eff. 1-1-09; Ord. No. 24499, § 1, 7-31-12; Ord. No. 26063, § 3, 12-18-18)
Source: City of Oklahoma City, Municipal Code and City Charter (Municode Library, library.municode.com)URL: https://library.municode.com/ok/oklahoma_city/codes/code_of_ordinances?nodeId=OKMUCO2020_CH40PERESY_ARTIIIPERE_DIV1EMREPR_PTBGEPR_S40-70TEOPVEFetched: 10/28/2026