The Plan invests in domestic equity index funds, a domestic equity commingled trust fund,
international equity index funds and two international emerging markets commingled or mutual funds.
The Plan shares the risk of loss in these funds with other participants in proportion to its respective
investment. Because the Plan does not own any specific identifiable investment securities of these
funds, the market risk associated with any derivative investments held in these funds is not apparent.
The degree of market risk depends on the underlying portfolios of the funds, which were selected by
the Plan in accordance with its investment policy guidelines including risk assessment. The
international funds invest primarily in equity securities of entities outside the United States and may
enter into forward contracts to purchase or sell securities at specified dates in the future at a
guaranteed price in a foreign currency to protect against fluctuations in exchange rates of foreign
No investments, other than U.S. Government bonds and instrumentalities, in any one organization
represent 5% or more of plan net assets at June 30, 2000 and 1999, respectively.
4. FEDERAL INCOME TAX STATUS:
Pursuant to a determination by the IRS, the Plan is qualified under the Internal Revenue Code of
1986, as amended and, therefore, is exempt from federal income taxes. The Plan has been amended
since receiving the determination letter and a new determination letter request is pending with the IRS
at this time. The plan administrator believes that the Plan is designed and is currently being operated
in substantial compliance with the applicable requirements of the Internal Revenue Code and will
retain its status as a qualified plan.
5. PLAN AMENDMENTS:
The following summary of significant plan provision changes that were enacted by the State
Legislature during the session ending in May 2000:
Retiree Benefit Increase
Beginning with benefits paid on the last working day of July 2000, benefits for members who retired
June 1, 1999, or before, will be increased $2.13 per month for each year of credited service.
Adjustments to this increase will be made for retirees who retired early or chose one of three
alternative benefit payment options provided by the Plan.
Eligible Officers Benefits
Benefits for members who retire on or after July 1, 2000, will be determined at (a) 2.5% of the final
average compensation multiplied by the number of years of service as an eligible officer; and (b) 2.0%
of the final average compensation multiplied by the number of years of service in excess of 20 years
as an eligible officer and any other service which is not service as an officer. Members who
contributed on or before, but not after June 30, 2000, will have their retirement benefits computed at
2.5% of their final average compensation only on those years as an officer after July 1, 1990. Service
as an officer prior to July 1, 1990, will be computed at 2.25% of their final average compensation.
Normal retirement age under the Plan will be at any age after 20 years of creditable service as an
The new benefit rates will not apply to officers who stopped participating on or before June 30, 2000,
who retire as an officer after July 2000, however, they will be eligible for normal retirement when they
have accrued 20 years of service credit as an officer regardless of age.
Health Insurance Premium Contribution
Effective July 1, 2000, the maximum amount OPERS pays towards the health insurance premium of
eligible members who maintain health insurance with the Oklahoma State and Education Employees
Group Insurance Board will increase to $105 per month.
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