As Introduced 1
122nd General Assembly 4
Regular Session H. B. No. 673 5
1997-1998 6
REPRESENTATIVES PADGETT-WESTON-COUGHLIN-LOGAN-FORD-OPFER- 8
REID-CAREY-TERWILLEGER-PERZ-VESPER-OGG-BRITTON-GARCIA- 9
METELSKY-THOMAS-MOTTLEY-HOUSEHOLDER-ROMAN-WHALEN- 9/1
BENDER-SAWYER 9/2
9/4
A B I L L
To amend sections 3309.36, 3309.38, 3309.50, and 9/6
3309.69 and to repeal section 3309.37 of the 9/7
Revised Code to increase the School Employees 9/8
Retirement System (SERS) service retirement 17
benefit for retirants with more than 30 years' 18
service credit, to increase the SERS death 19
benefit to $1,000, and to increase the SERS 20
reimbursement for insurance coverage under 21
Medicare Part B. 22
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 24
Section 1. That sections 3309.36, 3309.38, 3309.50, and 26
3309.69 of the Revised Code be amended to read as follows: 27
Sec. 3309.36. (A) A member retiring on service retirement 36
shall be granted a retirement allowance consisting of the lesser 37
of the sum of the following amounts or the limit established by 38
section 415 of the "Internal Revenue Code of 1986," 100 Stat. 39
2085, 26 U.S.C.A. 415, as amended: 40
(A)(1) An annuity having a reserve equal to the amount of 42
the employee's accumulated contributions at that time; 43
(B)(2) A pension of equivalent amount; 45
(C)(3) An additional pension of forty dollars multiplied 47
by the number of years of such prior service credit; 48
(D)(4) For members who have ten or more years of service 50
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credit accumulated prior to October 1, 1956, a basic annual 51
pension equal to one hundred eighty dollars, except that such 52
basic annual pension shall not exceed the sum of the total annual 53
benefits provided by divisions (A)(1), (B)(2), and (C)(3) of this 55
section.
(E)(B)(1) When a member retires on service retirement and 57
his, THE MEMBER'S allowance when computed as an annual single 60
lifetime allowance as provided in divisions (A)(1), (B)(2), 62
(C)(3), and (D)(4) of this section and section 3309.38 of the 63
Revised Code, based upon attained age sixty-five or thirty years 64
of total service credit, is SHALL BE NOT less than the greater of 66
the amounts determined by multiplying his THE MEMBER'S total 67
service credit by eighty-six THE FOLLOWING: 68
(a) EIGHTY-SIX dollars, or by two; 70
(b) TWO and one-tenth per cent of his THE MEMBER'S final 73
average salary, then the allowance shall be increased to such 75
greater amount. If such member's attained age is other than 76
sixty-five, or his total service credit is other than thirty 78
years, then he shall receive an adjusted FOR EACH OF THE FIRST 79
THIRTY YEARS OF SERVICE CREDIT OR FRACTION THEREOF PLUS TWO AND
ONE-HALF PER CENT OF THE MEMBER'S FINAL AVERAGE SALARY FOR EACH 80
SUBSEQUENT YEAR OF SERVICE CREDIT OR FRACTION THEREOF. 81
(2) THE annual single lifetime allowance which DETERMINED 85
UNDER DIVISION (B)(1) OF THIS SECTION shall be ADJUSTED BY the 86
higher percentage of a base amount determined by GREATER 88
PERCENTAGE SHOWN IN the following schedule: OPPOSITE THE MEMBER'S 89
ATTAINED AGE OR YEARS OF OHIO SERVICE CREDIT. 90
Years of Per Cent 95
Attained or Ohio Service of 99
Age Credit Base Amount 102
58 25 75% 105
59 26 80 108
60 27 85 111
61 88 114
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28 90 117
62 91 120
63 94 123
29 95 126
64 97 129
65 30 or more 100. 132
Members shall vest the right to a benefit in accordance with the 135
following schedule, based on the member's attained age by 136
September 1, 1976: 137
Per Cent 138
Attained of 139
Age Base Amount 140
66 102 141
67 104 142
68 106 143
69 108 144
70 or more 110. 145
(2)(3) The annual single lifetime allowance which a 147
retirant shall receive under this division shall not exceed the 148
lesser of ninety per cent of his THE MEMBER'S final average 149
salary or the limit established by section 415 of the "Internal 151
Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415, as 152
amended.
(F)(C) Retirement allowances determined under this section 154
shall be paid as provided in section 3309.46 of the Revised Code. 155
Sec. 3309.38. (A) A member retiring on commuted service 164
retirement on or after September 30, 1963, shall be granted a 165
retirement allowance consisting of: 166
(A)(1) An annuity having a reserve equal to the amount of 168
the employee's accumulated contributions at the time; 169
(B)(2) A pension of equivalent amount; 171
(C)(3) An additional pension, if such employee has prior 173
service credit, the reserve for which, based upon regular 174
interest and the service tables approved by the board, shall be 175
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the present worth of the reserve required for the payment of the 176
prior service pension provided by section 3309.36 of the Revised 177
Code, after either age sixty or thirty-two years of service 178
credit, whichever can be first attained. The annual prior 179
service pension shall be determined by the amount of such 180
commuted reserve divided by the service annuity rate for the 181
attained annuity age of retirement;. 182
(D)(4) For members who have ten or more years of service 184
credit accumulated prior to October 1, 1956, a basic annual 185
pension equal to one hundred eighty dollars, which shall be 186
commuted in the same manner as provided for the prior service 187
pension in division (C)(A)(3) of this section, provided such 188
commuted basic annual pension shall not exceed the sum of the 190
total annual benefits provided by divisions (A)(1), (B)(2), and 191
(C)(3) of this section. 192
(E)(B) When a member retires on commuted service 194
retirement, his THE MEMBER'S annual single lifetime allowance 195
including the allowances provided in divisions (A)(1), (B)(2), 197
(C)(3), and (D)(4) of this section shall not be less than the 199
allowances provided under the provisions of division (E)(B) of 200
section 3309.36 of the Revised Code and shall not exceed the 202
limit established by division (E)(2)(B)(3) of that section. 204
(F)(C) Retirement allowances determined under this section 206
shall be paid as provided in section 3309.46 of the Revised Code. 207
Sec. 3309.50. Upon the death of a retirant or disability 216
benefit recipient, who at the time of death is receiving a 217
service retirement allowance or disability benefit from the 218
school employees retirement system, a lump-sum payment of five 219
hundred ONE THOUSAND dollars shall be paid to any designated or 220
qualified beneficiary under division (D) of section 3309.44 of 221
the Revised Code, or, if none NO SUCH DESIGNATION HAS BEEN FILED 222
OR IF THE DESIGNATED BENEFICIARY IS DECEASED OR IS NOT LOCATED 223
WITHIN NINETY DAYS, the school employees retirement board may 224
approve payment to either the person responsible for the burial 225
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expenses or to the decedent's estate following the completion of 226
an application on a form approved by the board.
Sec. 3309.69. (A) As used in this section, "ineligible 235
individual" means all of the following: 236
(1) A former member receiving benefits pursuant to section 238
3309.34, 3309.35, 3309.36, 3309.38, or 3309.381 of the Revised 239
Code for whom eligibility is established more than five years 240
after June 13, 1981, and who, at the time of establishing 241
eligibility, has accrued less than ten years of service credit, 242
exclusive of credit obtained after January 29, 1981, pursuant to 243
sections 3309.021, 3309.301, 3309.31, and 3309.33 of the Revised 244
Code; 245
(2) The spouse of the former member; 247
(3) The beneficiary of the former member receiving 249
benefits pursuant to section 3309.46 of the Revised Code. 250
(B) The school employees retirement board may enter into 252
an agreement with insurance companies, health insuring 254
corporations, or government agencies authorized to do business in 256
the state for issuance of a policy or contract of health, 257
medical, hospital, or surgical benefits, or any combination 258
thereof, for those individuals receiving service retirement or a 259
disability or survivor benefit subscribing to the plan and their 261
eligible dependents.
If all or any portion of the policy or contract premium is 263
to be paid by any individual receiving service retirement or a 265
disability or survivor benefit, the person shall, by written 266
authorization, instruct the board to deduct the premiums agreed 267
to be paid by the individual to the companies, corporations, or 269
agencies.
The board may contract for coverage on the basis of part or 272
all of the cost of the coverage to be paid from appropriate funds 273
of the school employees retirement system. The cost paid from 274
the funds of the system shall be included in the employer's 276
contribution rate provided by sections 3309.49 and 3309.491 of 277
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the Revised Code. The board shall not pay or reimburse the cost 278
for health care under this section or section 3309.375 of the 279
Revised Code for any ineligible individual. 280
The board may provide for self-insurance of risk or level 282
of risk as set forth in the contract with the companies, 283
corporations, or agencies, and may provide through the 284
self-insurance method specific benefits as authorized by the 285
rules of the board. 286
(C) If the board provides health, medical, hospital, or 288
surgical benefits through any means other than a health insuring 290
corporation, it shall offer to each individual eligible for the 293
benefits the alternative of receiving benefits through enrollment 295
in a health insuring corporation, if all of the following apply: 297
(1) The health insuring corporation provides health care 300
services in the geographical area in which the individual lives; 302
(2) The eligible individual was receiving health care 304
benefits through a health maintenance organization or a health 305
insuring corporation before retirement; 307
(3) The rate and coverage provided by the health insuring 310
corporation to eligible individuals is comparable to that 312
currently provided by the board under division (B) of this 313
section. If the rate or coverage provided by the health insuring 314
corporation is not comparable to that currently provided by the 316
board under division (B) of this section, the board may deduct 317
the additional cost from the eligible individual's monthly 318
benefit.
The health insuring corporation shall accept as an enrollee 322
any eligible individual who requests enrollment.
The board shall permit each eligible individual to change 324
from one plan to another at least once a year at a time 325
determined by the board. 326
(D) The board shall, beginning the month following receipt 328
of satisfactory evidence of the payment for coverage, make a 329
monthly payment to each recipient of service retirement, or a 330
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disability or survivor benefit under the school employees 331
retirement system who is eligible for insurance coverage under 332
part B of "The Social Security Amendments of 1965," 79 Stat. 301, 333
42 U.S.C.A. 1395j, as amended, except that the board shall make 334
no such payment to any ineligible individual. The EFFECTIVE ON 335
THE FIRST DAY OF THE MONTH AFTER THE EFFECTIVE DATE OF THIS 336
AMENDMENT, THE amount of the payment shall be the lesser of an 338
amount equal to the basic premium for such coverage, or an amount 339
equal to the basic premium in effect on January 1, 1988 1992. 340
(E) The board shall establish by rule requirements for the 342
coordination of any coverage, payment, or benefit provided under 344
this section or section 3309.375 of the Revised Code with any 346
similar coverage, payment, or benefit made available to the same 347
individual by the public employees retirement system, police and 348
firemen's disability and pension fund, state teachers retirement 349
system, or state highway patrol retirement system. 350
(F) The board shall make all other necessary rules 352
pursuant to the purpose and intent of this section. 353
Section 2. That existing sections 3309.36, 3309.38, 355
3309.50, and 3309.69 and section 3309.37 of the Revised Code are 356
hereby repealed.
Section 3. The School Employees Retirement System should 358
make a one-time payment to each person who is a current recipient 359
of service retirement or a disability or survivor benefit from 360
the System and was eligible to receive a monthly payment pursuant 361
to division (D) of section 3309.69 of the Revised Code for 362
insurance coverage under Part B of "The Social Security
Amendments of 1965," 79 Stat. 301, 42 U.S.C.A. 1935j, as amended, 363
at any time during the period commencing January 1, 1992, and 364
ending on the effective date of this section. The amount of the 365
payment to each recipient shall be equal to the sum of the 366
differences between:
(A) Each monthly payment the recipient was eligible to 368
receive under division (D) of section 3309.69 of the Revised Code 369
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during the period commencing January 1, 1992, and ending on the 370
effective date of this section; and
(B) The amount of the monthly payment that is authorized 372
by division (D) of section 3309.69 of the Revised Code as enacted 373
by this act.