1. A. An individual who has been designated, pursuant to Section 401(a)(9)(E) of the Internal Revenue Code of 1986, as amended, as the beneficiary of a deceased member and who is not the surviving spouse of the member, may elect, in accordance with Section 402(c)(11) of the Internal Revenue Code of 1986, as amended, and at the time and in the manner prescribed by the Board, to have a direct trustee-to-trustee transfer of any portion of such beneficiary’s lump-sum distribution from the Oklahoma Law Enforcement Retirement System after December 31, 2006, made to an individual retirement account or individual retirement annuity (other than an endowment contract) described in Section 408(a) or (b) of the Internal Revenue Code of 1986, as amended (IRA), that is established on behalf of such designated individual. If such transfer is made, then:

   1. 1. The transfer is treated as an eligible rollover distribution for purposes of Section 402(c)(11) of the Internal Revenue Code of 1986, as amended;
   2. 2. The transferee IRA is treated as an inherited individual retirement account or an inherited individual retirement annuity (within the meaning of Section 408(d)(3)(C) of the Internal Revenue Code of 1986, as amended), and must be titled in the name of the deceased member, for the benefit of the beneficiary; and
   3. 3. The required minimum distribution rules of Section 401(a)(9)(B), other than clause iv thereof, of the Internal Revenue Code of 1986, as amended, apply to the transferee IRA.
2. B. A trust maintained for the benefit of one or more designated beneficiaries shall be treated in the same manner as a trust designated beneficiary.
3. C. The Board shall promulgate such rules as are necessary to implement the provisions of this section.

Added by Laws 2007, SB 695, c. 152, § 9, emerg. eff. July 1, 2007; Amended by Laws 2009, SB 830, c. 169, § 10, emerg. eff. May 11, 2009 (superseded document available).