As Introduced 1
122nd General Assembly 4
Regular Session H. B. No. 339 5
1997-1998 6
REPRESENTATIVES VESPER-TIBERI-PADGETT-CORBIN-BENDER-MOTTLEY- 8
LUCAS-OPFER-COLONNA-TERWILLEGER-MALLORY-HAINES-BRITTON 9
11
A B I L L
To amend sections 3307.38 and 3307.384 and to enact 13
section 3307.4013 of the Revised Code to increase 14
benefits under the State Teachers Retirement 16
System. 17
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 19
Section 1. That sections 3307.38 and 3307.384 be amended 20
and section 3307.4013 of the Revised Code be enacted to read as 21
follows:
Sec. 3307.38. Any member who has five years of service 23
credit and has attained age sixty, or who has twenty-five years 24
of service credit and has attained age fifty-five, or who has 25
thirty years of service credit shall be granted service 26
retirement after filing with the state teachers retirement board 27
a completed application on a form approved by the board. 28
(A) Service retirement shall be effective on the first day 30
of the month next following the later of: 31
(1) The last day for which compensation was paid; or 33
(2) The attainment of minimum age or service credit 35
eligibility for benefits provided under this section. 36
Except as otherwise provided in division (D) of this 38
section, the service retirement benefit shall be the greater of 39
the benefits provided in divisions (B) and (C) of this section. 40
(B)(1) Subject to any adjustment made under division 42
(B)(2) of this section, the annual single lifetime benefit of a 44
member shall be the greater of the amounts determined by his THE
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MEMBER'S Ohio service credit multiplied by one of the following: 46
(a) Eighty-six dollars; 48
(b) Two and one-tenth per cent of his THE MEMBER'S final 50
average salary, except that if the member has more than thirty 51
years service credit earned under section 3307.31 or purchased 52
under section 3307.512 of the Revised Code, two and five-tenths 53
THE per cent of his SHALL BE THE PER CENT SHOWN IN THE FOLLOWING 54
SCHEDULE TIMES THE MEMBER'S final average salary for each 55
CORRESPONDING year or fraction of a year of service credit earned 56
or purchased under those sections that is in excess of thirty 57
years:
YEAR PER YEAR PER 60
OF CENT OF CENT 61
SERVICE FOR THAT SERVICE FOR THAT 63
CREDIT YEAR CREDIT YEAR 64
30.01-31.00 2.5% 37.01-38.00 3.2% 65
31.01-32.00 2.6 38.01-39.00 3.3 66
32.01-33.00 2.7 39.01-40.00 3.4 67
33.01-34.00 2.8 40.01-41.00 3.5 68
34.01-35.00 2.9 41.01-42.00 3.6 69
35.01-36.00 3.0 42.01-43.00 3.7 70
36.01-37.00 3.1 71
FOR PURPOSES OF THIS SCHEDULE, YEARS OF SERVICE CREDIT SHALL BE 75
ROUNDED TO THE NEAREST ONE-HUNDREDTH OF A YEAR.
(2) The annual single lifetime benefit of a member 77
determined under division (B)(1) of this section shall be 78
adjusted by the greater per cent shown in the following schedule 79
opposite his THE MEMBER'S attained age or Ohio service credit. 80
Years of Per Cent 82
Attained or Ohio Service of Base 83
Age Credit Amount 84
58 25 75% 85
59 26 80 86
60 27 85 87
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61 88 88
28 90 89
62 91 90
63 94 91
29 95 92
64 97 93
65 30 or more 100 94
Members shall vest the right to a benefit in accordance 97
with the following schedule, based on the member's attained age 98
by September 1, 1976: 99
Per Cent 101
Attained of Base 102
Age Amount 103
66 102% 105
67 104 106
68 106 107
69 108 108
70 or more 110 109
(3) The annual single lifetime benefit determined under 112
this division shall not exceed the lesser of one hundred per cent 113
of the final average salary or the limit established by section 114
415 of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 115
U.S.C.A. 415, as amended. 116
(C) The annual single lifetime benefit of a member shall 118
not exceed the lesser of the sum of the following amounts or the 119
limit established by section 415 of the "Internal Revenue Code of 120
1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended: 121
(1) An annuity with a reserve equal to the member's 123
accumulated contributions; 124
(2) A pension equal to the amount in division (C)(1) of 126
this section; 127
(3) An additional pension of forty dollars annually 129
multiplied by the number of years of prior and military service 130
credit, except years of credit purchased under section 3307.021 131
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of the Revised Code; 132
(4) An additional basic annual pension of one hundred 134
eighty dollars, provided the member had ten or more years of Ohio 135
service credit as of October 1, 1956, except that such THE 136
additional basic annual pension shall not exceed the sum of the 137
annual benefits provided by divisions (C)(1), (2), and (3) of 138
this section. 139
(D) Benefits determined under this section shall be paid 141
as provided in section 3307.50 of the Revised Code. 142
Sec. 3307.384. A retirant who on the effective date of 144
this section AMENDMENT is eligible to receive an annual single 146
lifetime benefit under section 3307.38, 3307.41, or 3307.50 of 147
the Revised Code of less than six NINE thousand SIX HUNDRED 148
dollars or its actuarial equivalent shall have such THAT benefit 149
increased to six NINE thousand SIX HUNDRED dollars or its 150
actuarial equivalent if the benefit is based on an award arising 151
from thirty or more years of Ohio service credit. The benefit 152
increase provided by this section AMENDMENT shall take effect on 153
the first day of the first month following the effective date of 154
this section AMENDMENT and shall not be subject to any final 155
average salary limitation.
Sec. 3307.4013. (A) AS USED IN THIS SECTION: 157
(1) "BENEFIT" MEANS A BENEFIT, PENSION, OR ALLOWANCE UNDER 159
SECTION 3307.38, 3307.41, 3307.43, 3307.431, 3307.49, OR 3307.50 160
OF THE REVISED CODE.
(2) "CUMULATIVE PERCENTAGE CHANGE IN THE CPI" MEANS THE 162
TOTAL PERCENTAGE CHANGE IN THE CONSUMER PRICE INDEX PREPARED BY 163
THE UNITED STATES BUREAU OF LABOR STATISTICS FOR URBAN WAGE 165
EARNERS AND CLERICAL WORKERS (CPI-W: U.S. CITY AVERAGE, ALL 166
ITEMS) FROM THE THIRTY-FIRST DAY OF DECEMBER IMMEDIATELY 167
PRECEDING THE YEAR IN WHICH THE ORIGINAL BENEFIT STARTED THROUGH 168
THE THIRTY-FIRST DAY OF DECEMBER IMMEDIATELY PRECEDING THE 169
EFFECTIVE DATE OF THIS SECTION. 170
(3) "ELIGIBLE RECIPIENT" MEANS ANY PERSON RECEIVING A 172
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BENEFIT ON THE EFFECTIVE DATE OF THIS SECTION THAT HAS BEEN 173
PAYABLE TO THAT PERSON OR TO ANY OTHER PERSON FOR AT LEAST TWELVE 174
MONTHS.
(4) "ORIGINAL BENEFIT AMOUNT" MEANS THE INITIAL AMOUNT OF 176
A BENEFIT GRANTED TO THE INITIAL RECIPIENT OF THE BENEFIT. 177
(B) AS OF THE EFFECTIVE DATE OF THIS SECTION, THE STATE 179
TEACHERS RETIREMENT BOARD SHALL DETERMINE AN AMOUNT FOR EACH 180
ELIGIBLE RECIPIENT EQUAL TO THE SUM OF THE FOLLOWING AMOUNTS: 181
(1) AN AMOUNT EQUAL TO SEVENTY PER CENT OF THE ORIGINAL 183
BENEFIT AMOUNT FOR THE RECIPIENT; 184
(2) AN AMOUNT EQUAL TO THE PRODUCT OBTAINED WHEN SEVENTY 186
PER CENT OF THE ORIGINAL BENEFIT AMOUNT IS MULTIPLIED BY THE 187
CUMULATIVE PERCENTAGE CHANGE IN THE CPI FOR THE RECIPIENT. 188
(C)(1) EXCEPT AS PROVIDED IN DIVISION (C)(2) OF THIS 190
SECTION, IF THE AMOUNT OF THE ANNUAL BENEFIT PAYABLE TO AN 191
ELIGIBLE RECIPIENT ON THE EFFECTIVE DATE OF THIS SECTION IS LESS 192
THAN THE AMOUNT DETERMINED FOR THE RECIPIENT UNDER DIVISION (B) 193
OF THIS SECTION, THE BOARD SHALL RECALCULATE THAT ANNUAL BENEFIT 194
SO THAT IT EQUALS THE AMOUNT DETERMINED UNDER DIVISION (B) OF 195
THIS SECTION.
(2) IF THE RECALCULATED BENEFIT DETERMINED UNDER DIVISION 197
(C)(1) OF THIS SECTION FOR AN ELIGIBLE RECIPIENT WHOSE RETIREMENT 198
WAS EFFECTIVE BEFORE JULY 1, 1979, IS LESS THAN ONE HUNDRED THREE 199
PER CENT OF THE ANNUAL BENEFIT PAYABLE TO THE RECIPIENT ON THE 200
EFFECTIVE DATE OF THIS SECTION, THE BOARD SHALL RECALCULATE THE 201
ANNUAL BENEFIT SO THAT IT EQUALS ONE HUNDRED THREE PER CENT OF 202
THE ANNUAL BENEFIT PAYABLE TO THE RECIPIENT ON THE EFFECTIVE DATE 203
OF THIS SECTION.
AN INCREASE GRANTED BY DIVISION (C)(1) OR (2) OF THIS 205
SECTION TO A BENEFIT AMOUNT SHALL APPLY ON AND AFTER THE FIRST 206
DAY OF THE MONTH FOLLOWING THE EFFECTIVE DATE OF THIS SECTION. 207
(D) THE BOARD SHALL INCLUDE THE INCREASE IN AMOUNT PAID 209
UNDER THIS SECTION IN A PERSON'S BASE FOR PURPOSES OF FUTURE 210
INCREASES IN ANY BENEFIT UNDER SECTION 3307.403 OF THE REVISED 211
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CODE.
Section 2. That existing sections 3307.38 and 3307.384 of 213
the Revised Code are hereby repealed. 214