As Reported by the House Health, Retirement and Aging Committee 1
122nd General Assembly 4
Regular Session Sub. 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-MAIER-BRADING-BEATTY-PATTON-OLMAN 10
12
A B I L L
To amend sections 145.30, 3305.05, 3305.06, 3309.36, 14
3309.38, 3309.50, and 3309.69, to enact section 15
3305.051, and to repeal section 3309.37 of the 16
Revised Code to increase the School Employees 17
Retirement System (SERS) service retirement 18
benefit for retirants with more than 30 years' 19
service credit, to increase the SERS death 20
benefit to $1,000, to increase the SERS 21
reimbursement for insurance coverage under 22
Medicare Part B, to make changes with regard to 24
military service credit granted by the Public 25
Employees Retirement System, to make changes to 26
the law governing alternative retirement programs 27
for employees of public institutions of higher 29
education, and to change the date by which the 31
Ohio Retirement Study Commission is required to 32
have completed and submitted an actuarial study 33
of the alternative retirement program for 34
employees of public institutions of higher 35
education. 36
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 38
Section 1. That sections 145.30, 3305.05, 3305.06, 40
3309.36, 3309.38, 3309.50, and 3309.69 be amended and section 41
3305.051 of the Revised Code be enacted to read as follows: 42
2
Sec. 145.30. (A) As used in this section and section 51
145.301 of the Revised Code: 52
(1) "Armed forces" of the United States includes the 54
following:
(a) Army, navy, air force, marine corps, coast guard, 56
auxiliary corps as established by congress, red cross nurse 57
serving with the army, navy, air force, or hospital service of 58
the United States, army nurse corps, navy nurse corps, full-time 59
service with the American red cross in a combat zone, and such 60
other service as may be designated by congress as included
therein;
(b) Personnel of the Ohio national guard and the reserve 62
components of any of the armed forces enumerated in division 63
(A)(1) of this section who are called to active duty pursuant to 64
an executive order issued by the president of the United States 65
or an act of congress;
(c) Persons on whom United States merchant marine veteran 67
status has been conferred for service aboard oceangoing merchant 68
ships in service to the United States during World War II. 69
(2) "State retirement system" means any of the following: 71
the police and firemen's disability and pension fund, public 72
employees retirement system, school employees retirement system, 73
state highway patrol retirement system, or the state teachers 74
retirement system.
(B) Upon reemployment in the public service and completion 76
of one year of service credit as covered by a state retirement 77
system or the Cincinnati retirement system, within two years 78
after service in the uniformed services ARMED FORCES that is 80
terminated in a manner other than as described in section 4304 of
Title 38 of the United States Code, "Uniformed Services 81
Employment and Reemployment Rights Act of 1994," 108 Stat. 3149, 82
38 U.S.C.A. 4304, and presentation of documentation of the 83
service and subject to rules adopted by the retirement board, any 84
member of the public employees retirement system who was a member 85
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with not less than one year of payroll deductions before entering
active duty with the armed forces and maintained membership in 86
the public employees retirement system as provided by section 87
145.41 of the Revised Code, and who was or is out of active 88
service as a public employee by reason of having become a member 89
of the armed forces of the United States on active duty or 90
service shall have such military service, not in excess of ten
years, considered as the equivalent of prior service. Uniformed 92
service SERVICE IN THE ARMED FORCES as established by 94
documentation of the service, not in excess of ten years, shall
also be considered prior service for a person who was a public 95
employee and who has acquired service credit for five years prior 96
to, and within the one year preceding, the date of entering on 97
active duty in the armed forces of the United States if such 98
person was reemployed in the public service within one year after 99
service in the uniformed services ARMED FORCES that is terminated 100
in a manner other than as described in section 4304 of Title 38 101
of the United States Code, "Uniformed Services Employment and 102
Reemployment Rights Act of 1994," 108 Stat. 3149, 38 U.S.C.A. 103
4304, AND ESTABLISHED TOTAL SERVICE CREDIT AS DEFINED IN SECTION 104
145.01 OF THE REVISED CODE of twenty years exclusive of credit
for SERVICE IN THE uniformed service SERVICES, AS DEFINED IN 106
SECTION 145.302 OF THE REVISED CODE. This division shall not 107
serve to cancel any military service credit earned or granted 108
prior to November 1, 1965.
(C) A member of the public employees retirement system is 110
ineligible to receive service credit under this section for any 111
year of military service credit used in the calculation of any 112
retirement benefit currently being paid to the member or payable 113
in the future under any other retirement program, except social 114
security, or used to obtain service credit pursuant to section
145.301 or 145.302 of the Revised Code. At the time such credit 115
is requested, the member shall certify on a form supplied by the 116
retirement board that the member does and will conform to this 117
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requirement. This division does not cancel any military service 118
credit earned prior to March 15, 1979.
Sec. 3305.05. (A) A person whose employment as an 127
academic or administrative employee of a public institution of 128
higher education commences after the initial date on which the 129
board of trustees of the public institution establishes the 130
alternative retirement program may, not later than ninety days 131
after the starting date of employment, make an election to
participate in an alternative retirement plan available at the 132
public institution. If no election to an alternative retirement 133
plan is in effect at the end of ninety days after the person's 134
starting date of employment, the person shall be deemed to have 136
elected participation in the state retirement system that applies 137
to the person's employment. Except as provided under division
(F) of this section, an election that is made under this division 138
or division (B) of this section and that is in effect at the end 139
of ninety days after the person's starting date of employment, 140
shall be irrevocable while the electing employee remains 142
continuously employed. A person who makes an election to
participate in an alternative retirement plan shall be forever 143
barred from claiming or purchasing service credit under any state 144
retirement system for the period of that person's employment that 146
the election is in effect. If a person ceases to be continuously 148
employed and subsequently is employed by a public institution of
higher education in a position for which an alternative 149
retirement plan is available under this chapter, the person may 150
make another election under this division. Each public 151
institution of higher education employing a person eligible to 152
make an election under this division shall notify, within ten 153
days of the person's employment, that THE state retirement system 154
that applies to that person's employment in the manner specified 156
by that state retirement system, which notice shall include the 158
new employee's name and address.
This division does not apply to any person who has made an 160
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election under this division or division (B) of this section 161
unless the person has ceased to be continuously employed. 162
(B)(1) Not later than one hundred twenty days after the 164
date on which the board of trustees of a public institution of 166
higher education establishes the initial alternative retirement 167
program for that public institution, each ELIGIBLE academic or 169
administrative employee of the public institution with less than 170
five years of total service credit in the state retirement system 171
in which the person is a member on that initial establishment 173
date may make an election to participate in an alternative
retirement plan available at the public institution. If a person 174
to whom this division applies fails to make an election, the 175
person shall be deemed to have elected continued participation in 176
the state retirement system in which the person is a member. 177
(2)(a) IF A PUBLIC INSTITUTION'S ALTERNATIVE RETIREMENT 179
PROGRAM IS ESTABLISHED NOT LATER THAN SIX MONTHS AFTER THE 180
DEPARTMENT OF INSURANCE MAKES A DESIGNATION UNDER SECTION 3305.03 181
OF THE REVISED CODE, A MEMBER OF THE PUBLIC EMPLOYEES RETIREMENT 182
SYSTEM OR SCHOOL EMPLOYEES RETIREMENT SYSTEM WHO IS AN ACADEMIC 183
OR ADMINISTRATIVE EMPLOYEE OF THE PUBLIC INSTITUTION IS ELIGIBLE
TO ELECT TO PARTICIPATE IF THE MEMBER HAS LESS THAN FIVE YEARS OF 184
SERVICE CREDIT IN THE RETIREMENT SYSTEM ON THE LAST DAY OF THE 185
MONTH IN WHICH THE DESIGNATION IS MADE. IF A PUBLIC 186
INSTITUTION'S ALTERNATIVE RETIREMENT PROGRAM IS ESTABLISHED MORE 187
THAN SIX MONTHS AFTER THE DEPARTMENT OF INSURANCE MAKES THE
DESIGNATION, A MEMBER OF THE PUBLIC EMPLOYEES RETIREMENT SYSTEM 188
OR SCHOOL EMPLOYEES RETIREMENT SYSTEM WHO IS AN ACADEMIC OR 189
ADMINISTRATIVE EMPLOYEE OF THE PUBLIC INSTITUTION IS ELIGIBLE TO 190
ELECT TO PARTICIPATE IF THE MEMBER HAS LESS THAN FIVE YEARS OF 191
SERVICE CREDIT IN THE RETIREMENT SYSTEM ON THE FIRST DAY THE 192
MONTH IN WHICH THE PROGRAM IS ESTABLISHED.
(b) A MEMBER OF THE STATE TEACHERS RETIREMENT SYSTEM WHO 194
IS AN ACADEMIC OR ADMINISTRATIVE EMPLOYEE OF A PUBLIC INSTITUTION 195
THAT ESTABLISHES AN ALTERNATIVE RETIREMENT PROGRAM IS ELIGIBLE TO 196
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PARTICIPATE IN THE PROGRAM IF THE MEMBER HAS LESS THAN FIVE YEARS 197
OF SERVICE CREDIT IN THE RETIREMENT SYSTEM ON THE THIRTIETH DAY 198
OF JUNE IMMEDIATELY PRECEDING THE DATE THE PROGRAM IS 199
ESTABLISHED.
(C) Each academic or administrative employee shall make 201
any AN election under division (A) or (B) of this section in 202
writing and submit the election to the designated officer of the 203
employee's employing public institution of higher education. The 204
officer shall file a certified copy of the election within ten 205
days with the state retirement system to which, apart from this 207
election, the employee's employment would be subject. 208
(D)(1) Each election made under division (A) of this 210
section shall be effective on the electing employee's starting 211
date of employment. 212
(2) Each IN THE CASE OF A MEMBER OF THE PUBLIC EMPLOYEES 214
RETIREMENT SYSTEM OR SCHOOL EMPLOYEES RETIREMENT SYSTEM, AN 215
election made under division (B) of this section shall be 217
effective on the first day of the month next following the date
on which the electing employee submits the election under 218
division (C) of this section DATE DESCRIBED IN DIVISION (B)(2)(a) 219
OF THIS SECTION. IN THE CASE OF A MEMBER OF THE STATE TEACHERS 221
RETIREMENT SYSTEM, AN ELECTION SHALL BE EFFECTIVE ON THE DATE 222
DESCRIBED IN DIVISION (B)(2)(b) OF THIS SECTION. 223
(E) Any election made under division (A) or (B) of this 226
section shall only apply to the electing employee's employment in
positions for which an alternative retirement program is 227
available pursuant to this chapter. Employment of the electing 228
employee in any other position shall be subject to the applicable 229
state retirement system.
(F) The board of trustees of a public institution of 231
higher education shall permit an electing employee to change the 232
alternative retirement plan in which the electing employee 233
participates if the plan ceases, pursuant to division (C) of 235
section 3305.03 of the Revised Code, to be a designated plan. 237
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Sec. 3305.051. THE STATE RETIREMENT SYSTEM THAT COVERS THE 239
POSITION HELD BY AN EMPLOYEE OF A PUBLIC INSTITUTION OF HIGHER 240
EDUCATION WHO MAKES AN ELECTION UNDER DIVISION (A) OF SECTION 241
3305.06 OF THE REVISED CODE TO PARTICIPATE IN THE PUBLIC 242
INSTITUTION'S ALTERNATIVE RETIREMENT PROGRAM SHALL RETURN TO THE
PUBLIC INSTITUTION ANY EMPLOYEE AND EMPLOYER CONTRIBUTIONS MADE 243
TO THE RETIREMENT SYSTEM FOR THE NINETY-DAY PERIOD DESCRIBED IN 244
THAT DIVISION LESS THE AMOUNT DUE THE RETIREMENT SYSTEM PURSUANT 245
TO DIVISION (E) OF SECTION 3305.06 OF THE REVISED CODE FOR THAT 246
PERIOD.
THE STATE RETIREMENT SYSTEM THAT COVERS THE POSITION HELD 248
BY AN EMPLOYEE OF A PUBLIC INSTITUTION OF HIGHER EDUCATION WHO 249
MAKES AN ELECTION UNDER DIVISION (B) OF SECTION 3305.06 OF THE 250
REVISED CODE TO PARTICIPATE IN THE PUBLIC INSTITUTION'S 251
ALTERNATIVE RETIREMENT PROGRAM SHALL RETURN TO THE PUBLIC
INSTITUTION ANY EMPLOYEE AND EMPLOYER CONTRIBUTIONS MADE TO THE 252
RETIREMENT SYSTEM FOR ANY PERIOD COMMENCING AFTER THE APPLICABLE 253
DATE DESCRIBED IN DIVISION (B)(2)(a) OR (b) OF SECTION 3305.06 OF 255
THE REVISED CODE LESS THE AMOUNT DUE THE RETIREMENT SYSTEM
PURSUANT TO DIVISION (E) OF SECTION 3305.06 OF THE REVISED CODE 256
FOR THAT PERIOD.
Sec. 3305.06. (A) Each electing employee shall contribute 265
an amount, which shall be a certain percentage of the employee's 266
compensation, to the alternative retirement plan in which the 267
employee participates. This percentage shall be the percentage 268
the electing employee would have otherwise been required to 269
contribute to the state retirement system that applies to the
employee's position, except that the percentage shall not be less 270
than three per cent. Employee contributions under this division 271
may be treated as employer contributions in accordance with 272
Internal Revenue Code 414 (h). 273
(B) Each public institution of higher education employing 275
an electing employee shall contribute an amount, which shall be a 276
certain percentage of the employee's compensation, to the 277
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alternative retirement plan the employee has elected. This 278
percentage shall be determined by the board of trustees of the 279
public institution.
(C)(1) In no event shall the amount contributed by the 282
electing employee pursuant to division (A) of this section and on 283
the electing employee's behalf pursuant to division (B) of this
section be less than the amount necessary to qualify the plan as 284
a state retirement system pursuant to Internal Revenue Code 285
3121(B)(7) and the regulations adopted thereunder. 286
(2) The full amount of the electing employee's 288
contribution under division (A) of this section and the full 289
amount of the employer's contribution made on behalf of that 290
employee under division (B) of this section shall be paid to the 291
entity providing the employee's alternative retirement plan for 292
application to that plan in accordance with any contract the 293
electing employee has entered into for purposes of that plan. In
no event shall any benefits be paid under that plan prior to the 294
time an electing employee ceases to be continuously employed. 295
(D) An electing employee may make voluntary deposits to 297
the employee's alternative retirement plan in addition to the 298
employee contribution required under division (A) of this 300
section.
(E) Each public institution of higher education employing 302
an electing employee shall contribute on behalf of that employee 303
to the state retirement system that otherwise applies to the 304
electing employee's position an amount equal to six per cent of 305
the electing employee's compensation to mitigate any negative 306
financial impact of the alternative retirement program on the 308
state retirement system; provided that on the first day of July
following the first year after the effective date of this section 309
DEPARTMENT OF INSURANCE DESIGNATES AN ALTERNATIVE RETIREMENT PLAN 310
UNDER SECTION 3305.03 OF THE REVISED CODE and every third year 311
thereafter, the Ohio retirement study commission shall cause an 312
independent actuarial study to be completed and submitted to the 313
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Ohio board of regents. The study shall determine any adjustments 314
in contributions necessary to reflect any change in the level of 315
the negative financial impact resulting from the establishment of 316
the alternative retirement program. The amount contributed to 318
the state retirement system pursuant to this division shall be
increased or decreased to reflect the amount needed to mitigate 319
the negative financial impact, if any, on the system, as 320
determined by each actuarial study. Any increase or decrease in 321
contributions shall become effective on the first day of July in 322
the year in which the actuarial study is completed. 323
Contributions on behalf of an electing employee shall continue in 324
accordance with this division until the occurrence of the 325
following:
(1) If the electing employee would be subject to Chapter 327
145. of the Revised Code had the employee not made an election 328
pursuant to section 3305.05 of the Revised Code, until the 330
unfunded actuarial accrued liability for all benefits, except 332
health care benefits provided under section 145.325 or 145.58 of 333
the Revised Code, is fully amortized, as determined by the annual 334
actuarial valuation prepared under section 145.22 of the Revised 335
Code;
(2) If the electing employee would be subject to Chapter 337
3307. of the Revised Code had the employee not made an election 338
pursuant to section 3305.05 of the Revised Code, until the 339
unfunded actuarial accrued liability for all benefits, except 340
health care benefits provided under section 3307.405 or 3307.74 341
of the Revised Code, is fully amortized, as determined by the 342
annual actuarial valuation prepared under section 3307.20 of the 343
Revised Code;
(3) If the electing employee would be subject to Chapter 345
3309. of the Revised Code had the employee not made an election 346
pursuant to section 3305.05 of the Revised Code, until the 347
unfunded actuarial accrued liability for all benefits, except 348
health care benefits provided under section 3309.375 or 3309.69 349
10
of the Revised Code, is fully amortized, as determined by the 350
annual actuarial valuation prepared under section 3309.21 of the 351
Revised Code.
Sec. 3309.36. (A) A member retiring on service retirement 360
shall be granted a retirement allowance consisting of the lesser 361
of the sum of the following amounts or the limit established by 362
section 415 of the "Internal Revenue Code of 1986," 100 Stat. 363
2085, 26 U.S.C.A. 415, as amended: 364
(A)(1) An annuity having a reserve equal to the amount of 366
the employee's accumulated contributions at that time; 367
(B)(2) A pension of equivalent amount; 369
(C)(3) An additional pension of forty dollars multiplied 371
by the number of years of such prior service credit; 372
(D)(4) For members who have ten or more years of service 374
credit accumulated prior to October 1, 1956, a basic annual 375
pension equal to one hundred eighty dollars, except that such 376
basic annual pension shall not exceed the sum of the total annual 377
benefits provided by divisions (A)(1), (B)(2), and (C)(3) of this 379
section.
(E)(B)(1) When a member retires on service retirement and 381
his, THE MEMBER'S allowance when computed as an annual single 384
lifetime allowance as provided in divisions (A)(1), (B)(2), 386
(C)(3), and (D)(4) of this section and section 3309.38 of the 387
Revised Code, based upon attained age sixty-five or thirty years 388
of total service credit, is SHALL BE NOT less than the greater of 390
the amounts determined by multiplying his THE MEMBER'S total 391
service credit by eighty-six THE FOLLOWING: 392
(a) EIGHTY-SIX dollars, or by two; 394
(b) TWO and one-tenth per cent of his THE MEMBER'S final 397
average salary, then the allowance shall be increased to such 399
greater amount. If such member's attained age is other than 400
sixty-five, or his total service credit is other than thirty 402
years, then he shall receive an adjusted FOR EACH OF THE FIRST 403
THIRTY YEARS OF SERVICE CREDIT OR FRACTION THEREOF PLUS TWO AND
11
ONE-HALF PER CENT OF THE MEMBER'S FINAL AVERAGE SALARY FOR EACH 404
SUBSEQUENT YEAR OF SERVICE CREDIT OR FRACTION THEREOF. 405
(2) THE annual single lifetime allowance which DETERMINED 409
UNDER DIVISION (B)(1) OF THIS SECTION shall be ADJUSTED BY the 410
higher percentage of a base amount determined by GREATER 412
PERCENTAGE SHOWN IN the following schedule: 413
Years of Per Cent 418
Attained or Ohio Service of 422
Age Credit Base Amount 425
58 25 75% 428
59 26 80 431
60 27 85 434
61 88 437
28 90 440
62 91 443
63 94 446
29 95 449
64 97 452
65 30 or more 100. 455
Members shall vest the right to a benefit in accordance with the 458
following schedule, based on the member's attained age by 459
September 1, 1976: 460
Per Cent 461
Attained of 462
Age Base Amount 463
66 102 464
67 104 465
68 106 466
69 108 467
70 or more 110. 468
(2)(3) The annual single lifetime allowance which a 470
retirant shall receive under this division shall not exceed the 471
lesser of ninety per cent of his THE MEMBER'S final average 472
salary or the limit established by section 415 of the "Internal 474
12
Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415, as 475
amended.
(F)(C) Retirement allowances determined under this section 477
shall be paid as provided in section 3309.46 of the Revised Code. 478
Sec. 3309.38. (A) A member retiring on commuted service 487
retirement on or after September 30, 1963, shall be granted a 488
retirement allowance consisting of: 489
(A)(1) An annuity having a reserve equal to the amount of 491
the employee's accumulated contributions at the time; 492
(B)(2) A pension of equivalent amount; 494
(C)(3) An additional pension, if such employee has prior 496
service credit, the reserve for which, based upon regular 497
interest and the service tables approved by the board, shall be 498
the present worth of the reserve required for the payment of the 499
prior service pension provided by section 3309.36 of the Revised 500
Code, after either age sixty or thirty-two years of service 501
credit, whichever can be first attained. The annual prior 502
service pension shall be determined by the amount of such 503
commuted reserve divided by the service annuity rate for the 504
attained annuity age of retirement;. 505
(D)(4) For members who have ten or more years of service 507
credit accumulated prior to October 1, 1956, a basic annual 508
pension equal to one hundred eighty dollars, which shall be 509
commuted in the same manner as provided for the prior service 510
pension in division (C)(A)(3) of this section, provided such 511
commuted basic annual pension shall not exceed the sum of the 513
total annual benefits provided by divisions (A)(1), (B)(2), and 514
(C)(3) of this section. 515
(E)(B) When a member retires on commuted service 517
retirement, his THE MEMBER'S annual single lifetime allowance 518
including the allowances provided in divisions (A)(1), (B)(2), 520
(C)(3), and (D)(4) of this section shall not be less than the 522
allowances provided under the provisions of division (E)(B) of 523
section 3309.36 of the Revised Code and shall not exceed the 525
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limit established by division (E)(2)(B)(3) of that section. 527
(F)(C) Retirement allowances determined under this section 529
shall be paid as provided in section 3309.46 of the Revised Code. 530
Sec. 3309.50. Upon the death of a retirant or disability 539
benefit recipient, who at the time of death is receiving a 540
service retirement allowance or disability benefit from the 541
school employees retirement system, a lump-sum payment of five 542
hundred ONE THOUSAND dollars shall be paid to any designated or 543
qualified beneficiary under division (D) of section 3309.44 of 544
the Revised Code, or, if none NO SUCH DESIGNATION HAS BEEN FILED 545
OR IF THE DESIGNATED BENEFICIARY IS DECEASED OR IS NOT LOCATED 546
WITHIN NINETY DAYS, the school employees retirement board may 547
approve payment to either the person responsible for the burial 548
expenses or to the decedent's estate following the completion of 549
an application on a form approved by the board.
Sec. 3309.69. (A) As used in this section, "ineligible 558
individual" means all of the following: 559
(1) A former member receiving benefits pursuant to section 561
3309.34, 3309.35, 3309.36, 3309.38, or 3309.381 of the Revised 562
Code for whom eligibility is established more than five years 563
after June 13, 1981, and who, at the time of establishing 564
eligibility, has accrued less than ten years of service credit, 565
exclusive of credit obtained after January 29, 1981, pursuant to 566
sections 3309.021, 3309.301, 3309.31, and 3309.33 of the Revised 567
Code; 568
(2) The spouse of the former member; 570
(3) The beneficiary of the former member receiving 572
benefits pursuant to section 3309.46 of the Revised Code. 573
(B) The school employees retirement board may enter into 575
an agreement with insurance companies, health insuring 577
corporations, or government agencies authorized to do business in 579
the state for issuance of a policy or contract of health, 580
medical, hospital, or surgical benefits, or any combination 581
thereof, for those individuals receiving service retirement or a 582
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disability or survivor benefit subscribing to the plan and their 584
eligible dependents.
If all or any portion of the policy or contract premium is 586
to be paid by any individual receiving service retirement or a 588
disability or survivor benefit, the person shall, by written 589
authorization, instruct the board to deduct the premiums agreed 590
to be paid by the individual to the companies, corporations, or 592
agencies.
The board may contract for coverage on the basis of part or 595
all of the cost of the coverage to be paid from appropriate funds 596
of the school employees retirement system. The cost paid from 597
the funds of the system shall be included in the employer's 599
contribution rate provided by sections 3309.49 and 3309.491 of 600
the Revised Code. The board shall not pay or reimburse the cost 601
for health care under this section or section 3309.375 of the 602
Revised Code for any ineligible individual. 603
The board may provide for self-insurance of risk or level 605
of risk as set forth in the contract with the companies, 606
corporations, or agencies, and may provide through the 607
self-insurance method specific benefits as authorized by the 608
rules of the board. 609
(C) If the board provides health, medical, hospital, or 611
surgical benefits through any means other than a health insuring 613
corporation, it shall offer to each individual eligible for the 616
benefits the alternative of receiving benefits through enrollment 618
in a health insuring corporation, if all of the following apply: 620
(1) The health insuring corporation provides health care 623
services in the geographical area in which the individual lives; 625
(2) The eligible individual was receiving health care 627
benefits through a health maintenance organization or a health 628
insuring corporation before retirement; 630
(3) The rate and coverage provided by the health insuring 633
corporation to eligible individuals is comparable to that 635
currently provided by the board under division (B) of this 636
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section. If the rate or coverage provided by the health insuring 637
corporation is not comparable to that currently provided by the 639
board under division (B) of this section, the board may deduct 640
the additional cost from the eligible individual's monthly 641
benefit.
The health insuring corporation shall accept as an enrollee 645
any eligible individual who requests enrollment.
The board shall permit each eligible individual to change 647
from one plan to another at least once a year at a time 648
determined by the board. 649
(D) The board shall, beginning the month following receipt 651
of satisfactory evidence of the payment for coverage, make a 652
monthly payment to each recipient of service retirement, or a 653
disability or survivor benefit under the school employees 654
retirement system who is eligible for insurance coverage under 655
part B of "The Social Security Amendments of 1965," 79 Stat. 301, 656
42 U.S.C.A. 1395j, as amended, except that the board shall make 657
no such payment to any ineligible individual. The EFFECTIVE ON 658
THE FIRST DAY OF THE MONTH AFTER THE EFFECTIVE DATE OF THIS 659
AMENDMENT, THE amount of the payment shall be the lesser of an 661
amount equal to the basic premium for such coverage, or an amount 662
equal to the basic premium in effect on January 1, 1988 1992. 663
(E) The board shall establish by rule requirements for the 665
coordination of any coverage, payment, or benefit provided under 667
this section or section 3309.375 of the Revised Code with any 669
similar coverage, payment, or benefit made available to the same 670
individual by the public employees retirement system, police and 671
firemen's disability and pension fund, state teachers retirement 672
system, or state highway patrol retirement system. 673
(F) The board shall make all other necessary rules 675
pursuant to the purpose and intent of this section. 676
Section 2. That existing sections 145.30, 3305.05, 678
3305.06, 3309.36, 3309.38, 3309.50, and 3309.69 and section 680
3309.37 of the Revised Code are hereby repealed.
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Section 3. The School Employees Retirement System should 682
make a one-time payment to each person who is a current recipient 683
of service retirement or a disability or survivor benefit from 684
the System and was eligible to receive a monthly payment pursuant 685
to division (D) of section 3309.69 of the Revised Code for 686
insurance coverage under Part B of "The Social Security
Amendments of 1965," 79 Stat. 301, 42 U.S.C.A. 1935j, as amended, 687
at any time during the period commencing January 1, 1992, and 688
ending on the effective date of this section. The amount of the 689
payment to each recipient shall be equal to the sum of the 690
differences between:
(A) Each monthly payment the recipient was eligible to 692
receive under division (D) of section 3309.69 of the Revised Code 693
during the period commencing January 1, 1992, and ending on the 694
effective date of this section; and
(B) The amount of the monthly payment that is authorized 696
by division (D) of section 3309.69 of the Revised Code as enacted 697
by this act.