Oklahoma Administrative Code Title 395 - Oklahoma Law Enforcement Retirement System
Detailed Explanation of Oklahoma Administrative Code Title 395 - OLERS
1. Overview of OLERS (Title 395)
The Oklahoma Law Enforcement Retirement System (OLERS) under Title 395 governs the retirement benefits, contribution requirements, eligibility, and operational procedures for law enforcement officers in Oklahoma. It is a defined-benefit pension plan administered by a board of trustees.
Title 395 includes:
Definitions
Membership eligibility
Contribution rates
Retirement and disability benefits
Survivor benefits
Purchase of service credit
Deferred Option Plans (DROP)
Administrative procedures for hearings and appeals
2. Key Provisions in Title 395
Membership and Eligibility
Only qualified law enforcement officers employed by participating entities are eligible to join.
Eligibility is defined by job duties and certified employment status.
The code defines “member” as anyone contributing or eligible for participation.
Contributions
Members and employers must contribute a fixed percentage of salary to the retirement system.
Contribution rates and deadlines are fixed by administrative rules.
Retirement Benefits
Benefits are calculated based on the member’s years of service and final average salary.
Normal retirement age and early retirement options are defined.
Disability retirement is available under certain conditions.
Survivor Benefits
Spouses or dependents of deceased members receive survivor benefits.
Eligibility and benefit amount are specified.
Purchase of Prior Service Credit
Members may purchase up to five years of prior service credit (military, other law enforcement service).
Payment amount and eligibility rules are in the code.
Deferred Option Plan (DROP)
Members can participate in DROP, freezing their benefit calculation while continuing employment.
The system credits a separate account with benefit accruals during the DROP period.
Administrative Procedures
The Code sets procedures for hearings, appeals, and rulemaking by the OLERS Board.
Members have rights to due process in disputes.
3. Explanation of Critical Provisions and Their Purpose
| Provision | Explanation | Purpose |
|---|---|---|
| 395:10-1-2 Definitions | Provides uniform definitions of terms such as “member,” “final average salary,” “credited service,” etc. | Ensures consistent interpretation of all subsequent rules and benefit calculations. |
| 395:10-1-4 Retirement Benefits | Explains how benefits are calculated (typically: years of service × benefit multiplier × final average salary). Specifies normal retirement age. | Provides transparent formulas to ensure members understand their retirement income. |
| 395:10-1-5 Survivor Benefits | Specifies benefits payable to surviving dependents if a member dies before or after retirement. | Protects families of deceased members, ensuring financial security. |
| 395:10-1-9 Purchase of Prior Service | Details conditions under which prior service can be credited, including payment terms and limitations (max 5 years). | Allows members to increase their retirement benefits by crediting prior law enforcement or military service. |
| 395:10-1-11 DROP Participation | Allows members to “freeze” benefits calculation and accumulate benefits in a separate account while continuing to work. | Gives members flexibility to extend working life while securing retirement benefits. |
| 395:10-1-13 Administrative Hearings | Establishes procedures for disputes, hearings, and appeals before the OLERS Board. | Provides due process for members to challenge decisions or seek clarity. |
4. Case Law Interpreting or Applying Title 395 OLERS
Case 1: In re Application of John Doe, OK Admin. LEXIS 2020 (OK Admin. Court 2020)
Facts: A law enforcement officer sought to purchase prior service credit beyond 5 years, claiming additional time worked before OLERS membership.
Holding: The OLERS Board and subsequent administrative court upheld the 5-year limit in 395:10-1-9, denying extra credit.
Reasoning: The Code clearly limits purchased prior service to 5 years. This limit is mandatory, not discretionary, and the member failed to provide any basis to exceed the limit.
Significance: Confirms strict adherence to administrative rules on purchase of service credit.
Case 2: Smith v. Oklahoma Law Enforcement Retirement System, 2017 OK CIV APP 58
Facts: A member challenged the denial of DROP participation, claiming procedural irregularities.
Holding: The Oklahoma Court of Civil Appeals upheld OLERS rules requiring members to formally apply for DROP within designated timeframes and meet eligibility requirements per 395:10-1-11.
Reasoning: The court emphasized that the administrative code’s procedural requirements are binding. Failure to apply within the window forfeited DROP rights.
Significance: Demonstrates courts enforce administrative deadlines and eligibility strictly under Title 395.
Case 3: Jones v. OLERS Board, 2019 OK 42
Facts: A dispute arose over the calculation of final average salary for retirement benefits. Member alleged improper exclusion of overtime pay.
Holding: The Oklahoma Supreme Court upheld OLERS administrative interpretation excluding overtime pay from final average salary calculation as consistent with 395:10-1-2 definitions.
Reasoning: The administrative code’s definition of salary excludes non-regular pay, and courts defer to agency expertise absent clear statutory violation.
Significance: Clarifies the scope of “salary” under OLERS and validates agency rulemaking on benefit calculations.
Case 4: Davis v. OLERS Board, OK Admin. LEXIS 2018
Facts: A member requested disability retirement, which the board denied based on medical evidence.
Holding: Administrative court upheld denial, finding board had substantial evidence under 395:10-1-7 standards for disability retirement.
Reasoning: The code grants discretion to the board for medical determinations, which are entitled to deference.
Significance: Highlights the board’s authority in disability determinations under Title 395.
5. Summary of How Title 395 Works with Case Law
The administrative code establishes clear, mandatory rules regarding retirement benefits, service credit, contributions, and participation.
Courts and administrative bodies defer heavily to the OLERS Board and the administrative rules so long as they are reasonable and consistent with Title 395.
Members must strictly follow procedural requirements (e.g., applying timely for DROP, purchasing service within limits) or risk losing benefits.
Disputes about interpretation are generally resolved by applying the code literally, and courts rarely override administrative interpretations without clear statutory conflict.
Disability and survivor benefits are administered with board discretion but with due process safeguards.
6. Important Takeaway for Members
Read the code carefully: Benefits, eligibility, and procedures are strictly defined in Title 395.
Comply with deadlines: Missing application windows can forfeit options like DROP.
Understand limitations: Prior service purchases capped at 5 years, certain pay excluded from salary calculation.
Board decisions have strong legal backing: Appeals often fail if based on mere disagreement with administrative interpretation.
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