The Tax-Sheltered Annuity Program provided by Section 17-101 et seq. of this title shall satisfy the applicable qualification requirements for grandfathered governmental tax-sheltered annuity programs as specified in 26 U.S.C. § 403(b) and the relevant regulatory provisions and guidance related thereto. In order to satisfy these requirements and guidelines, the Teachers' Retirement Tax-Sheltered Annuity Program shall be subject to the following provisions, notwithstanding any other provision of the law governing the Oklahoma Teachers' Retirement System:

1. (1) The Board of Trustees shall administer and distribute the corpus and income of the Tax-Sheltered Annuity Program to members and their beneficiaries pursuant to the applicable requirements under 26 U.S.C. § 403(b), relevant regulatory provisions and guidance under 26 U.S.C. § 403(b), and in accordance with the law governing the Oklahoma Teachers' Retirement System.
2. (2) All benefits paid from the retirement system shall be distributed in accordance with the applicable requirements of 26 U.S.C. §§ 403(b)(10) and 401(a)(9) and the regulations thereto.
3. (3) To the extent required by 26 U.S.C. §§ 403(b)(10) and 401(a)(31), the retirement system shall allow members and qualified beneficiaries to elect a direct rollover of eligible distributions to another eligible retirement plan.
4. (4) To the extent required under 26 U.S.C. § 403(b)(11) and the regulations thereto, distributions under the Tax-Sheltered Annuity Program shall only be paid when the member attains the age of fifty-nine and one-half (59 1/2) years, separates from service, dies, becomes disabled, or in the case of hardship.

Laws 1994, HB 2096, c. 380, § 2, emerg. eff. July 1, 1994.