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This site is intended as an informational tool only. It does not constitute a plan document or summary plan description.

OPERS reserves the right to correct any errors contained herein. For additional information please review our complete disclaimer for content on the OPERS web site.


The following words and phrases shall have the following meanings, unless a different meaning is plainly required by the context:

2.5% Step-Up – Allows members to increase their retirement benefits by paying an additional contribution each pay period. The Step-Up will increase the computation factor only on participating service accrued after the election and only for full years of participating service.

Accumulated Contributions - The sum of all employee contributions by a member to OPERS, which are credited to the member's account.

Actuary - The actuary or firm of actuaries employed by the Board at any given time to monitor the income and benefit structure of the System for the purpose of keeping the retirement fund sound and financially solvent.

Beneficiary - Any person, other than a joint-annuitant, named by a member to receive any benefits as provided by the laws governing the System. If there is no beneficiary living at the time of member-employee's death, his or her estate shall be the beneficiary. An eligible OPERS beneficiary does not have to be a natural person. For example, a member can name a trust or a funeral home as a beneficiary. Contact OPERS for instruction on how to properly designate a trust as beneficiary.

Board - The governing body of the System known as the Oklahoma Public Employees Retirement System Board of Trustees.

Compensation - All salary and wages, including amounts deferred under deferred compensation agreements entered into between a member and a participating employer, but exclusive of payment of overtime, payable to a member of the System for personal services performed for a participating employer, including maintenance, or any allowance in lieu thereof provided a member as part of compensation but not including compensation or reimbursement for traveling, or moving expenses, or any compensation in excess of the maximum annual compensation. Longevity payments are included.

Coordinator, Retirement - The individual designated by each participating employer through whom System transactions and communication shall be directed.

Credited Service - The sum of participating service and prior service.

Early Retirement Date - The date on which a member may retire with permanently reduced retirement benefits as provided by the System.

Elected Official - A person elected to a state office in the legislative or executive branch of state government or a person elected to a county office (on or after July 1, 1988) for a definite number of years and an individual who is appointed to fill the unexpired term of an elected state official. County superintendents of schools are not considered elected officials.

Eligible Employer - The state and any county, county hospital, city or town, conservation districts, emergency medical districts, and any public or private trust in which a county, city or town participates and is the primary beneficiary, whose employees are covered by Social Security and are not covered by or eligible for another retirement plan authorized under the laws of the State of Oklahoma which is in operation on the initial entry date. Emergency medical service districts may join the system upon proper application to the Board.

Employee - Any officer or employee of a participating employer, whose employment is not seasonal or temporary and whose employment requires at least 1,000 hours of work per year and whose salary or wage is equal to the monthly minimum wage for state employees. Those employees who are less than full time shall have wages equal to at least one-half that amount, but an eligible employee shall not include:

  1. Any employee who is currently a contributing member of the United States Civil Service Retirement System; or,
  2. Any employee who is currently a contributing member of another retirement plan authorized under any other law of the State for the same employment (other than an elected official).

Special Instances are:

  1. The officers, appointees, or employees of the district attorney who are required to belong to OPERS unless they were employed in counties which had separate retirement systems and were enrolled in the county system and elected to remain in such county system in lieu of participating in OPERS. Effective July 1, 1981, all new employees of the District Attorney were required to belong to OPERS; and,
  2. Effective July 1, 1982, employees of the Oklahoma Employment Security Commission who were ineligible for enrollment in the Employment Security Commission Retirement Plan were required to become members of OPERS January 1, 1987. Most Oklahoma Employment Security Commission employees and all new OESC employees were transferred to membership in OPERS.

Entry Date - The date on which an eligible employer joins the System. The first entry date pursuant to the statutes governing this System is January 1, 1964. All subsequent entry dates shall be the first day of January of a given year.

Essential OPERS – A two-page reference for plan provisions. The EssentialOPERS is to be given to all new members at enrollment. Specific versions are available for State and Local, Hazardous Duty, Elected officials and URSJJ members.

Executive Director - The managing officer of the System employed by the Board.

Final Average Compensation - The average annual salary, including amounts deferred under deferred compensation agreements entered into between a member and a participating employer and longevity payment. Only salary for which the required contributions have been made may be used in computing the Final Average Compensation.

  1. Final Average Compensation for service rendered prior to July 1, 1994, is the average of the highest three of the last ten years of participating service immediately preceding retirement or termination of employment up to but not exceeding the maximum annual compensation authorized. Provided no member shall retire with a final average compensation for service rendered prior to July 1, 1994, in excess of $25,000 unless the member made the required election and has paid the contributions on such salary in excess of $25,000. No member shall retire with a final average compensation for service rendered prior to July 1, 1994, in excess of $40,000.
  2. Final Average Compensation for service rendered July 1, 1994, and thereafter is the average of the highest three of the last ten years of participating service immediately preceding retirement or termination of employment, or if participating service is less than three years, the full period of participating service after July 1, 1994, not to exceed the salary cap maximum amounts.
  3. Final Average Compensation for members who join on or after July 1, 2013 will be calculated using the highest five years out of the last 10 years of participating service prior to retirement or termination, including the highest five longevity payments upon which contributions have been made.

Form 1099-R - A federal tax form distributed to those OPERS retirees and active members who received some type of payment from OPERS during the calendar year. The form shows the amount of the payment, the taxable portions of the payment and if any taxes were withheld.

Full-time-equivalent employment (FTE)- A term which refers to a member’s 1) actual employment 2) with a participating employer of the Oklahoma Public Employees Retirement System. A member obtains full-time-equivalent employment in two ways. The first way is obvious: working for a participating employer. Each hour for which retirement contributions are paid credits the member with one hour of full-time-equivalent employment. Therefore, if retirement contributions were paid for 173 hours, the member would accrue one month of full-time-equivalent employment. The second way a member can receive full-time-equivalent employment is by making certain types of purchases of OPERS service credit. However, the only types of purchases which constitute full-time-equivalent employment are those which represent 1) actual employment 2) with a participating employer of the Oklahoma Public Employees Retirement System. Furthermore, service granted free of charge is not full-time-equivalent employment. Such service does not constitute full-time-equivalent employment because it is either service granted to a member even though no contributions have been paid (e.g. certain prior service, unused sick leave) or it is service which was not accrued with a participating employer of our System (e.g. military service).

Hazardous Duty Member - A specific member classification with different retirement provisions as described in Chapter 25. These members currently include certain Correctional Officers, Probation & Parole Officers, Fugitive Apprehension Agents and Oklahoma Military Department Firefighters.

Joint-annuitant - A natural person who is designated by an OPERS member to receive a lifetime retirement benefit under Option A or Option B after the death of the member. A joint-annuitant designation cannot be changed after retirement.

Leave of Absence - A period of absence from employment without pay, authorized and approved by the employer and acknowledged to the Board, and which after the effective date does not exceed two years.

Medicare Gap Option – An option allowing most OPERS members who are under age 65 at retirement and who retire May 1, 2006 or later to make an irrevocable election to temporarily increase the amount of their monthly retirement benefit.

Member - An eligible employee or elected official who is in the System and is making the required employee or elected official contributions, or any former employee or elected official who shall have made the required contributions to the System and has not received a refund or withdrawal.

Military Service - Service in the Armed Forces of the United States in time of war or national emergency, as defined by the Oklahoma Statutes, from which the member was honorably discharged.

Mortally Wounded - Death ultimately caused by injuries inflicted during the performance of an Officer’s duties with the Oklahoma Department of Corrections.

Normal Retirement Date - The date on which a member may retire with full retirement benefits as provided by the System.

Participating Employer - An eligible employer who has agreed to make contributions to the System on behalf of its employees.

Participating Service - The period of employment after the entry date for which credit is granted a member. Effective March 1, 1979, part-time employment or any leave without pay will be prorated in relation to full time employment (173 hours per month).

Prior Service - The period of employment of a member by an eligible employer prior to the member’s entry date for which credit is granted a member. Prior service is free service if the employer joined OPERS on or before January 1, 1975. The employee may purchase prior service with an employer that joined OPERS after January 1, 1975. Certain military service is also considered prior service.

Retiree - A member who has retired under the System.

Retirement Benefit - A monthly income with benefits accruing from the first day of the month coinciding with or following retirement and ending on the last day of the month in which death occurs or the actuarial equivalent thereof paid in such a manner as specified by the member pursuant to the act governing this System or as otherwise authorized by the Board.

Social Security – Refers to the old-age survivors and disability section of the Federal Social Security Act.

System - The Oklahoma Public Employees Retirement System as established by an act of the Oklahoma State Legislature in 1963. (Statutory Reference: OKLA. STAT. tit. 74 § 901 et seq., as may be amended.)

Total Disability - A physical or mental disability accepted for disability benefits by the Federal Social Security Administration or Railroad Retirement Board.

Unused Sick Leave – A maximum of 960 hours of unused sick leave may be added to retirement service. Twenty days (160 hours) of sick leave equals one month of retirement service credit and will be added only in monthly segments. Fractions of a month of credit will not be given. If the unused sick leave results in adding an additional year of service, the employer must pay the cost of funding that year of service.

Vesting – Refers to when a member acquires a future interest in a retirement benefit. A member must complete at least eight years of credited service, six full years of which must be full-time-equivalent employment with a participating employer.

Withdrawal – A member may not withdrawal contributions while working with a participating employer. After termination, a member may withdraw his or her share of accumulated contributions, but the employer’s contribution will remain with OPERS.

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