OK SB577

Amends the Oklahoma Police Pension and Retirement System (OPPRS) to ensure compliance with Internal Revenue Service regulations under Section 401(a)(9) of the Internal Revenue Code, effective September 8, 2009.

Allows nonspouse designated beneficiaries to make direct rollovers to Roth IRAs and inherited individual retirement accounts (IRAs) for distributions made after December 31, 2006, subject to applicable IRS limitations and regulatory guidance.

Updates minimum distribution requirements for calendar years 2001-2004 and 2005 onward to align with IRS regulations issued in January 2001, April 2002, and June 2004, with no minimum distribution required for 2009 under Section 401(a)(9)(H).

Clarifies that distributions to nonspouse designated beneficiaries are subject to Section 402(c)(11) of the Internal Revenue Code and specifies treatment of after-tax contributions in rollovers from January 1, 2002 forward.

Declares an emergency to make the act effective immediately upon passage and approval.