As Passed by the House                        1            

122nd General Assembly                                             4            

   Regular Session                              Am. H. B. No. 339  5            

      1997-1998                                                    6            


   REPRESENTATIVES VESPER-TIBERI-PADGETT-CORBIN-MOTTLEY-LUCAS-     8            

    COLONNA-TERWILLEGER-HAINES-BRITTON-BRADING-MAIER-TAYLOR-       9            

   WESTON-PATTON-SCHURING-VAN VYVEN-TAVARES-COUGHLIN-GARDNER-      10           

     OGG-METZGER-HARRIS-SULZER-SAWYER-REID-VERICH-GERBERRY-        11           

      BEATTY-WILSON-STAPLETON-THOMAS-PERZ-FOX-ROBERTS-CORE-        12           

      HOUSEHOLDER-GARCIA-CAREY-BRADY-JONES-HEALY-KRUPINSKI-        13           

        SUTTON-BUCHY-PRINGLE-OLMAN-MASON-ROMAN-METELSKY-           14           

                      JOHNSON-MYERS-SALERNO                        15           


                                                                   17           

                           A   B I L L                                          

             To amend sections 3307.38 and 3307.384 and to enact   19           

                section 3307.4013 of the Revised Code to increase  20           

                benefits  under the State Teachers Retirement      22           

                System.                                            23           




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        25           

      Section 1.  That sections 3307.38 and 3307.384 be amended    26           

and section 3307.4013 of the Revised Code be enacted to read as    27           

follows:                                                                        

      Sec. 3307.38.  Any member who has five years of service      29           

credit and has attained age sixty, or who has twenty-five years    30           

of service credit and has attained age fifty-five, or who has      31           

thirty years of service credit shall be granted service            32           

retirement after filing with the state teachers retirement board   33           

a completed application on a form approved by the board.           34           

      (A)  Service retirement shall be effective on the first day  36           

of the month next following the later of:                          37           

      (1)  The last day for which compensation was paid; or        39           

      (2)  The attainment of minimum age or service credit         41           

eligibility for benefits provided under this section.              42           

                                                          2      

                                                                 
      Except as otherwise provided in division (D) of this         44           

section, the service retirement benefit shall be the greater of    45           

the benefits provided in divisions (B) and (C) of this section.    46           

      (B)(1)  Subject to any adjustment made under division        48           

(B)(2) of this section, the annual single lifetime benefit of a    50           

member shall be the greater of the amounts determined by his THE                

MEMBER'S Ohio service credit multiplied by one of the following:   52           

      (a)  Eighty-six dollars;                                     54           

      (b)  Two and one-tenth per cent of his THE MEMBER'S final    56           

average salary, except that if the member has more than thirty     57           

years service credit earned under section 3307.31 or purchased     58           

under section 3307.512 of the Revised Code, two and five-tenths    59           

THE per cent of his SHALL BE THE PER CENT SHOWN IN THE FOLLOWING   60           

SCHEDULE TIMES THE MEMBER'S final average salary for each          61           

CORRESPONDING year or fraction of a year of service credit earned  62           

or purchased under those sections that is in excess of thirty      63           

years:                                                                          

     YEAR             PER              YEAR             PER        66           

      OF              CENT              OF              CENT       67           

   SERVICE          FOR THAT         SERVICE          FOR THAT     69           

    CREDIT            YEAR            CREDIT            YEAR       70           

 30.01-31.00          2.5%         37.01-38.00          3.2%       71           

 31.01-32.00          2.6          38.01-39.00          3.3        72           

 32.01-33.00          2.7          39.01-40.00          3.4        73           

 33.01-34.00          2.8          40.01-41.00          3.5        74           

 34.01-35.00          2.9          41.01-42.00          3.6        75           

 35.01-36.00          3.0          42.01-43.00          3.7        76           

 36.01-37.00          3.1                                          77           

FOR PURPOSES OF THIS SCHEDULE, YEARS OF SERVICE CREDIT SHALL BE    81           

ROUNDED TO THE NEAREST ONE-HUNDREDTH OF A YEAR.                                 

      (2)  The annual single lifetime benefit of a member          83           

determined under division (B)(1) of this section shall be          84           

adjusted by the greater per cent shown in the following schedule   85           

opposite his THE MEMBER'S attained age or Ohio service credit.     86           

                                                          3      

                                                                 
                         Years of               Per Cent           88           

Attained      or        Ohio Service            of Base            89           

  Age                     Credit                 Amount            90           

  58                        25                    75%              91           

  59                        26                    80               92           

  60                        27                    85               93           

  61                                              88               94           

                            28                    90               95           

  62                                              91               96           

  63                                              94               97           

                            29                    95               98           

  64                                              97               99           

  65                    30 or more               100               100          

      Members shall vest the right to a benefit in accordance      103          

with the following schedule, based on the member's attained age    104          

by September 1, 1976:                                              105          

                                             Per Cent              107          

        Attained                             of Base               108          

          Age                                 Amount               109          

           66                                  102%                111          

           67                                  104                 112          

           68                                  106                 113          

           69                                  108                 114          

       70 or more                              110                 115          

      (3)  The annual single lifetime benefit determined under     118          

this division shall not exceed the lesser of one hundred per cent  119          

of the final average salary or the limit established by section    120          

415 of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26     121          

U.S.C.A. 415, as amended.                                          122          

      (C)  The annual single lifetime benefit of a member shall    124          

not exceed the lesser of the sum of the following amounts or the   125          

limit established by section 415 of the "Internal Revenue Code of  126          

1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended:                127          

      (1)  An annuity with a reserve equal to the member's         129          

                                                          4      

                                                                 
accumulated contributions;                                         130          

      (2)  A pension equal to the amount in division (C)(1) of     132          

this section;                                                      133          

      (3)  An additional pension of forty dollars annually         135          

multiplied by the number of years of prior and military service    136          

credit, except years of credit purchased under section 3307.021    137          

of the Revised Code;                                               138          

      (4)  An additional basic annual pension of one hundred       140          

eighty dollars, provided the member had ten or more years of Ohio  141          

service credit as of October 1, 1956, except that such THE         142          

additional basic annual pension shall not exceed the sum of the    143          

annual benefits provided by divisions (C)(1), (2), and (3) of      144          

this section.                                                      145          

      (D)  Benefits determined under this section shall be paid    147          

as provided in section 3307.50 of the Revised Code.                148          

      Sec. 3307.384.  A retirant who on the effective date of      150          

this section AMENDMENT is eligible to receive an annual single     152          

lifetime benefit under section 3307.38, 3307.41, or 3307.50 of     153          

the Revised Code of less than six NINE thousand SIX HUNDRED        154          

dollars or its actuarial equivalent shall have such THAT benefit   155          

increased to six NINE thousand SIX HUNDRED dollars or its          156          

actuarial equivalent if the benefit is based on an award arising   157          

from thirty or more years of Ohio service credit.  The benefit     158          

increase provided by this section AMENDMENT shall take effect on   159          

the first day of the first month following the effective date of   160          

this section AMENDMENT and shall not be subject to any final       161          

average salary limitation.                                                      

      Sec. 3307.4013.  (A)  AS USED IN THIS SECTION:               163          

      (1)  "BENEFIT" MEANS A BENEFIT, PENSION, OR ALLOWANCE UNDER  165          

SECTION 3307.38, 3307.41, 3307.43, 3307.431, 3307.49, OR 3307.50   166          

OF THE REVISED CODE.                                                            

      (2)  "CUMULATIVE PERCENTAGE CHANGE IN THE CPI" MEANS THE     168          

TOTAL PERCENTAGE CHANGE IN THE CONSUMER PRICE INDEX PREPARED BY    169          

THE UNITED STATES BUREAU OF LABOR STATISTICS FOR URBAN WAGE        171          

                                                          5      

                                                                 
EARNERS AND CLERICAL WORKERS (CPI-W:  U.S. CITY AVERAGE, ALL       172          

ITEMS) FROM THE THIRTY-FIRST DAY OF DECEMBER IMMEDIATELY           173          

PRECEDING THE YEAR IN WHICH THE ORIGINAL BENEFIT STARTED THROUGH   174          

THE THIRTY-FIRST DAY OF DECEMBER IMMEDIATELY PRECEDING THE         175          

EFFECTIVE DATE OF THIS SECTION.                                    176          

      (3)  "ELIGIBLE RECIPIENT" MEANS ANY PERSON RECEIVING A       178          

BENEFIT ON THE EFFECTIVE DATE OF THIS SECTION THAT HAS BEEN        179          

PAYABLE TO THAT PERSON OR TO ANY OTHER PERSON FOR AT LEAST TWELVE  180          

MONTHS.                                                                         

      (4)  "ORIGINAL BENEFIT AMOUNT" MEANS THE INITIAL AMOUNT OF   182          

A BENEFIT GRANTED TO THE INITIAL RECIPIENT OF THE BENEFIT.         183          

      (B)  AS OF THE EFFECTIVE DATE OF THIS SECTION, THE STATE     185          

TEACHERS RETIREMENT BOARD SHALL DETERMINE AN AMOUNT FOR EACH       186          

ELIGIBLE RECIPIENT EQUAL TO THE SUM OF THE FOLLOWING AMOUNTS:      187          

      (1)  AN AMOUNT EQUAL TO SEVENTY PER CENT OF THE ORIGINAL     189          

BENEFIT AMOUNT FOR THE RECIPIENT;                                  190          

      (2)  AN AMOUNT EQUAL TO THE PRODUCT OBTAINED WHEN SEVENTY    192          

PER CENT OF THE ORIGINAL BENEFIT AMOUNT IS MULTIPLIED BY THE       193          

CUMULATIVE PERCENTAGE CHANGE IN THE CPI FOR THE RECIPIENT.         194          

      (C)(1)  EXCEPT AS PROVIDED IN DIVISION (C)(2) OF THIS        196          

SECTION, IF THE AMOUNT OF THE ANNUAL BENEFIT PAYABLE TO AN         197          

ELIGIBLE RECIPIENT ON THE EFFECTIVE DATE OF THIS SECTION IS LESS   198          

THAN THE AMOUNT DETERMINED FOR THE RECIPIENT UNDER DIVISION (B)    199          

OF THIS SECTION, THE BOARD SHALL RECALCULATE THAT ANNUAL BENEFIT   200          

SO THAT IT EQUALS THE AMOUNT DETERMINED UNDER DIVISION (B) OF      201          

THIS SECTION.                                                                   

      (2)  IF THE RECALCULATED BENEFIT DETERMINED UNDER DIVISION   203          

(C)(1) OF THIS SECTION FOR AN ELIGIBLE RECIPIENT WHOSE RETIREMENT  204          

WAS EFFECTIVE BEFORE JULY 1, 1979, IS LESS THAN ONE HUNDRED THREE  205          

PER CENT OF THE ANNUAL BENEFIT PAYABLE TO THE RECIPIENT ON THE     206          

EFFECTIVE DATE OF THIS SECTION, THE BOARD SHALL RECALCULATE THE    207          

ANNUAL BENEFIT SO THAT IT EQUALS ONE HUNDRED THREE PER CENT OF     208          

THE ANNUAL BENEFIT PAYABLE TO THE RECIPIENT ON THE EFFECTIVE DATE  209          

OF THIS SECTION.                                                                

                                                          6      

                                                                 
      AN INCREASE GRANTED BY DIVISION (C)(1) OR (2) OF THIS        211          

SECTION TO A BENEFIT AMOUNT SHALL APPLY ON AND AFTER THE FIRST     212          

DAY OF THE MONTH FOLLOWING THE EFFECTIVE DATE OF THIS SECTION.     213          

      (D)  THE BOARD SHALL INCLUDE THE INCREASE IN AMOUNT PAID     215          

UNDER THIS SECTION IN A PERSON'S BASE FOR PURPOSES OF FUTURE       216          

INCREASES IN ANY BENEFIT UNDER SECTION 3307.403 OF THE REVISED     217          

CODE.                                                                           

      Section 2.  That existing sections 3307.38 and 3307.384 of   219          

the Revised Code are hereby repealed.                              220          

      Section 3.  Any retirant granted service retirement, as      222          

provided in section 3307.38 of the Revised Code, that is based on  223          

thirty-one or more years service credit earned under section       224          

3307.31 or purchased under section 3307.512 of the Revised Code    225          

and is effective on or after July 1, 1997, but before the                       

effective date of this act may, no later than December 31, 1997,   226          

make application to the State Teachers Retirement Board to have    227          

the retirant's benefit recalculated under section 3307.38 of the   228          

Revised Code, as amended by this act, and section 3307.50 of the   229          

Revised Code.  On receipt of the application, the Board shall      230          

inform the applicant of the benefit and options to which the       231          

applicant is entitled under this act and the applicant may elect                

to receive a recalculated benefit.  If the applicant makes that    232          

election, the Board shall pay the recalculated benefit.            233          

      If the recalculated benefit is greater than the applicant's  235          

benefit prior to the recalculation, the Board shall make one       236          

additional payment to the applicant equal to the difference        237          

between the benefits the applicant received between July 1, 1997,  238          

and the date of the payment and the increased benefit the          239          

applicant would have received had the act gone into effect on                   

July 1, 1997.                                                      240          

      The Board shall give written notice to each retirant         242          

subject to this section that the retirant may, no later than       243          

December 31, 1997, make application to the Board to have the       244          

retirant's benefit recalculated under section 3307.38 of the       245          

                                                          7      

                                                                 
Revised Code, as amended by this act, and section 3307.50 of the                

Revised Code.  The Board shall deliver the notice to each          246          

retirant by certified mail, return receipt requested.              247