As Passed by the House 1
122nd General Assembly 4
Regular Session Am. 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
GRENDELL-BOGGS-COLONNA-VERICH-JOHNSON-WOMER BENJAMIN- 11
MILLER-WACHTMANN-HARRIS-MYERS-WILLAMOWSKI-METZGER-PRENTISS- 12
ROBERTS-LUCAS-SCHULER-O'BRIEN-BOYD-MOTTL-DAMSCHRODER- 13
MALLORY-BRADY-STAPLETON-CALLENDER-WINKLER-EVANS-JONES- 14
SULZER-SALERNO-WILSON-SUTTON 15
17
A B I L L
To amend sections 145.30, 3305.05, 3305.06, 3309.36, 19
3309.38, 3309.50, and 3309.69, to enact section 20
3305.051, and to repeal section 3309.37 of the 21
Revised Code to increase the School Employees 22
Retirement System (SERS) service retirement 23
benefit for retirants with more than 30 years' 24
service credit, to increase the SERS death 25
benefit to $1,000, to increase the SERS 26
reimbursement for insurance coverage under 27
Medicare Part B, to make changes with regard to 29
military service credit granted by the Public 30
Employees Retirement System, to make changes to 31
the law governing alternative retirement programs 32
for employees of public institutions of higher 34
education, and to change the date by which the 36
Ohio Retirement Study Commission is required to 37
have completed and submitted an actuarial study 38
of the alternative retirement program for 39
employees of public institutions of higher 40
education. 41
2
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 43
Section 1. That sections 145.30, 3305.05, 3305.06, 45
3309.36, 3309.38, 3309.50, and 3309.69 be amended and section 46
3305.051 of the Revised Code be enacted to read as follows: 47
Sec. 145.30. (A) As used in this section and section 56
145.301 of the Revised Code: 57
(1) "Armed forces" of the United States includes the 59
following:
(a) Army, navy, air force, marine corps, coast guard, 61
auxiliary corps as established by congress, red cross nurse 62
serving with the army, navy, air force, or hospital service of 63
the United States, army nurse corps, navy nurse corps, full-time 64
service with the American red cross in a combat zone, and such 65
other service as may be designated by congress as included
therein;
(b) Personnel of the Ohio national guard and the reserve 67
components of any of the armed forces enumerated in division 68
(A)(1) of this section who are called to active duty pursuant to 69
an executive order issued by the president of the United States 70
or an act of congress;
(c) Persons on whom United States merchant marine veteran 72
status has been conferred for service aboard oceangoing merchant 73
ships in service to the United States during World War II. 74
(2) "State retirement system" means any of the following: 76
the police and firemen's disability and pension fund, public 77
employees retirement system, school employees retirement system, 78
state highway patrol retirement system, or the state teachers 79
retirement system.
(B) Upon reemployment in the public service and completion 81
of one year of service credit as covered by a state retirement 82
system or the Cincinnati retirement system, within two years 83
after service in the uniformed services ARMED FORCES that is 85
terminated in a manner other than as described in section 4304 of
Title 38 of the United States Code, "Uniformed Services 86
3
Employment and Reemployment Rights Act of 1994," 108 Stat. 3149, 87
38 U.S.C.A. 4304, and presentation of documentation of the 88
service and subject to rules adopted by the retirement board, any 89
member of the public employees retirement system who was a member 90
with not less than one year of payroll deductions before entering
active duty with the armed forces and maintained membership in 91
the public employees retirement system as provided by section 92
145.41 of the Revised Code, and who was or is out of active 93
service as a public employee by reason of having become a member 94
of the armed forces of the United States on active duty or 95
service shall have such military service, not in excess of ten
years, considered as the equivalent of prior service. Uniformed 97
service SERVICE IN THE ARMED FORCES as established by 99
documentation of the service, not in excess of ten years, shall
also be considered prior service for a person who was a public 100
employee and who has acquired service credit for five years prior 101
to, and within the one year preceding, the date of entering on 102
active duty in the armed forces of the United States if such 103
person was reemployed in the public service within one year after 104
service in the uniformed services ARMED FORCES that is terminated 105
in a manner other than as described in section 4304 of Title 38 106
of the United States Code, "Uniformed Services Employment and 107
Reemployment Rights Act of 1994," 108 Stat. 3149, 38 U.S.C.A. 108
4304, AND ESTABLISHED TOTAL SERVICE CREDIT AS DEFINED IN SECTION 109
145.01 OF THE REVISED CODE of twenty years exclusive of credit
for SERVICE IN THE uniformed service SERVICES, AS DEFINED IN 111
SECTION 145.302 OF THE REVISED CODE. This division shall not 112
serve to cancel any military service credit earned or granted 113
prior to November 1, 1965.
(C) A member of the public employees retirement system is 115
ineligible to receive service credit under this section for any 116
year of military service credit used in the calculation of any 117
retirement benefit currently being paid to the member or payable 118
in the future under any other retirement program, except social 119
4
security, or used to obtain service credit pursuant to section
145.301 or 145.302 of the Revised Code. At the time such credit 120
is requested, the member shall certify on a form supplied by the 121
retirement board that the member does and will conform to this 122
requirement. This division does not cancel any military service 123
credit earned prior to March 15, 1979.
Sec. 3305.05. (A) A person whose employment as an 132
academic or administrative employee of a public institution of 133
higher education commences after the initial date on which the 134
board of trustees of the public institution establishes the 135
alternative retirement program may, not later than ninety days 136
after the starting date of employment, make an election to
participate in an alternative retirement plan available at the 137
public institution. If no election to an alternative retirement 138
plan is in effect at the end of ninety days after the person's 139
starting date of employment, the person shall be deemed to have 141
elected participation in the state retirement system that applies 142
to the person's employment. Except as provided under division
(F) of this section, an election that is made under this division 143
or division (B) of this section and that is in effect at the end 144
of ninety days after the person's starting date of employment, 145
shall be irrevocable while the electing employee remains 147
continuously employed. A person who makes an election to
participate in an alternative retirement plan shall be forever 148
barred from claiming or purchasing service credit under any state 149
retirement system for the period of that person's employment that 151
the election is in effect. If a person ceases to be continuously 153
employed and subsequently is employed by a public institution of
higher education in a position for which an alternative 154
retirement plan is available under this chapter, the person may 155
make another election under this division. Each public 156
institution of higher education employing a person eligible to 157
make an election under this division shall notify, within ten 158
days of the person's employment, that THE state retirement system 159
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that applies to that person's employment in the manner specified 161
by that state retirement system, which notice shall include the 163
new employee's name and address.
This division does not apply to any person who has made an 165
election under this division or division (B) of this section 166
unless the person has ceased to be continuously employed. 167
(B)(1) Not later than one hundred twenty days after the 169
date on which the board of trustees of a public institution of 171
higher education establishes the initial alternative retirement 172
program for that public institution, each ELIGIBLE academic or 174
administrative employee of the public institution with less than 175
five years of total service credit in the state retirement system 176
in which the person is a member on that initial establishment 178
date may make an election to participate in an alternative
retirement plan available at the public institution. If a person 179
to whom this division applies fails to make an election, the 180
person shall be deemed to have elected continued participation in 181
the state retirement system in which the person is a member. 182
(2)(a) IF A PUBLIC INSTITUTION'S ALTERNATIVE RETIREMENT 184
PROGRAM IS ESTABLISHED NOT LATER THAN SIX MONTHS AFTER THE 185
DEPARTMENT OF INSURANCE MAKES A DESIGNATION UNDER SECTION 3305.03 186
OF THE REVISED CODE, A MEMBER OF THE PUBLIC EMPLOYEES RETIREMENT 187
SYSTEM OR SCHOOL EMPLOYEES RETIREMENT SYSTEM WHO IS AN ACADEMIC 188
OR ADMINISTRATIVE EMPLOYEE OF THE PUBLIC INSTITUTION IS ELIGIBLE
TO ELECT TO PARTICIPATE IF THE MEMBER HAS LESS THAN FIVE YEARS OF 189
SERVICE CREDIT IN THE RETIREMENT SYSTEM ON THE LAST DAY OF THE 190
MONTH IN WHICH THE DESIGNATION IS MADE. IF A PUBLIC 191
INSTITUTION'S ALTERNATIVE RETIREMENT PROGRAM IS ESTABLISHED MORE 192
THAN SIX MONTHS AFTER THE DEPARTMENT OF INSURANCE MAKES THE
DESIGNATION, A MEMBER OF THE PUBLIC EMPLOYEES RETIREMENT SYSTEM 193
OR SCHOOL EMPLOYEES RETIREMENT SYSTEM WHO IS AN ACADEMIC OR 194
ADMINISTRATIVE EMPLOYEE OF THE PUBLIC INSTITUTION IS ELIGIBLE TO 195
ELECT TO PARTICIPATE IF THE MEMBER HAS LESS THAN FIVE YEARS OF 196
SERVICE CREDIT IN THE RETIREMENT SYSTEM ON THE FIRST DAY THE 197
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MONTH IN WHICH THE PROGRAM IS ESTABLISHED.
(b) A MEMBER OF THE STATE TEACHERS RETIREMENT SYSTEM WHO 199
IS AN ACADEMIC OR ADMINISTRATIVE EMPLOYEE OF A PUBLIC INSTITUTION 200
THAT ESTABLISHES AN ALTERNATIVE RETIREMENT PROGRAM IS ELIGIBLE TO 201
PARTICIPATE IN THE PROGRAM IF THE MEMBER HAS LESS THAN FIVE YEARS 202
OF SERVICE CREDIT IN THE RETIREMENT SYSTEM ON THE THIRTIETH DAY 203
OF JUNE IMMEDIATELY PRECEDING THE DATE THE PROGRAM IS 204
ESTABLISHED.
(C) Each academic or administrative employee shall make 206
any AN election under division (A) or (B) of this section in 207
writing and submit the election to the designated officer of the 208
employee's employing public institution of higher education. The 209
officer shall file a certified copy of the election within ten 210
days with the state retirement system to which, apart from this 212
election, the employee's employment would be subject. 213
(D)(1) Each election made under division (A) of this 215
section shall be effective on the electing employee's starting 216
date of employment. 217
(2) Each IN THE CASE OF A MEMBER OF THE PUBLIC EMPLOYEES 219
RETIREMENT SYSTEM OR SCHOOL EMPLOYEES RETIREMENT SYSTEM, AN 220
election made under division (B) of this section shall be 222
effective on the first day of the month next following the date
on which the electing employee submits the election under 223
division (C) of this section DATE DESCRIBED IN DIVISION (B)(2)(a) 224
OF THIS SECTION. IN THE CASE OF A MEMBER OF THE STATE TEACHERS 226
RETIREMENT SYSTEM, AN ELECTION SHALL BE EFFECTIVE ON THE DATE 227
DESCRIBED IN DIVISION (B)(2)(b) OF THIS SECTION. 228
(E) Any election made under division (A) or (B) of this 231
section shall only apply to the electing employee's employment in
positions for which an alternative retirement program is 232
available pursuant to this chapter. Employment of the electing 233
employee in any other position shall be subject to the applicable 234
state retirement system.
(F) The board of trustees of a public institution of 236
7
higher education shall permit an electing employee to change the 237
alternative retirement plan in which the electing employee 238
participates if the plan ceases, pursuant to division (C) of 240
section 3305.03 of the Revised Code, to be a designated plan. 242
Sec. 3305.051. THE STATE RETIREMENT SYSTEM THAT COVERS THE 244
POSITION HELD BY AN EMPLOYEE OF A PUBLIC INSTITUTION OF HIGHER 245
EDUCATION WHO MAKES AN ELECTION UNDER DIVISION (A) OF SECTION 246
3305.06 OF THE REVISED CODE TO PARTICIPATE IN THE PUBLIC 247
INSTITUTION'S ALTERNATIVE RETIREMENT PROGRAM SHALL RETURN TO THE
PUBLIC INSTITUTION ANY EMPLOYEE AND EMPLOYER CONTRIBUTIONS MADE 248
TO THE RETIREMENT SYSTEM FOR THE NINETY-DAY PERIOD DESCRIBED IN 249
THAT DIVISION LESS THE AMOUNT DUE THE RETIREMENT SYSTEM PURSUANT 250
TO DIVISION (E) OF SECTION 3305.06 OF THE REVISED CODE FOR THAT 251
PERIOD.
THE STATE RETIREMENT SYSTEM THAT COVERS THE POSITION HELD 253
BY AN EMPLOYEE OF A PUBLIC INSTITUTION OF HIGHER EDUCATION WHO 254
MAKES AN ELECTION UNDER DIVISION (B) OF SECTION 3305.06 OF THE 255
REVISED CODE TO PARTICIPATE IN THE PUBLIC INSTITUTION'S 256
ALTERNATIVE RETIREMENT PROGRAM SHALL RETURN TO THE PUBLIC
INSTITUTION ANY EMPLOYEE AND EMPLOYER CONTRIBUTIONS MADE TO THE 257
RETIREMENT SYSTEM FOR ANY PERIOD COMMENCING AFTER THE APPLICABLE 258
DATE DESCRIBED IN DIVISION (B)(2)(a) OR (b) OF SECTION 3305.06 OF 260
THE REVISED CODE LESS THE AMOUNT DUE THE RETIREMENT SYSTEM
PURSUANT TO DIVISION (E) OF SECTION 3305.06 OF THE REVISED CODE 261
FOR THAT PERIOD.
Sec. 3305.06. (A) Each electing employee shall contribute 270
an amount, which shall be a certain percentage of the employee's 271
compensation, to the alternative retirement plan in which the 272
employee participates. This percentage shall be the percentage 273
the electing employee would have otherwise been required to 274
contribute to the state retirement system that applies to the
employee's position, except that the percentage shall not be less 275
than three per cent. Employee contributions under this division 276
may be treated as employer contributions in accordance with 277
8
Internal Revenue Code 414 (h). 278
(B) Each public institution of higher education employing 280
an electing employee shall contribute an amount, which shall be a 281
certain percentage of the employee's compensation, to the 282
alternative retirement plan the employee has elected. This 283
percentage shall be determined by the board of trustees of the 284
public institution.
(C)(1) In no event shall the amount contributed by the 287
electing employee pursuant to division (A) of this section and on 288
the electing employee's behalf pursuant to division (B) of this
section be less than the amount necessary to qualify the plan as 289
a state retirement system pursuant to Internal Revenue Code 290
3121(B)(7) and the regulations adopted thereunder. 291
(2) The full amount of the electing employee's 293
contribution under division (A) of this section and the full 294
amount of the employer's contribution made on behalf of that 295
employee under division (B) of this section shall be paid to the 296
entity providing the employee's alternative retirement plan for 297
application to that plan in accordance with any contract the 298
electing employee has entered into for purposes of that plan. In
no event shall any benefits be paid under that plan prior to the 299
time an electing employee ceases to be continuously employed. 300
(D) An electing employee may make voluntary deposits to 302
the employee's alternative retirement plan in addition to the 303
employee contribution required under division (A) of this 305
section.
(E) Each public institution of higher education employing 307
an electing employee shall contribute on behalf of that employee 308
to the state retirement system that otherwise applies to the 309
electing employee's position an amount equal to six per cent of 310
the electing employee's compensation to mitigate any negative 311
financial impact of the alternative retirement program on the 313
state retirement system; provided that on the first day of July
following the first year after the effective date of this section 314
9
DEPARTMENT OF INSURANCE DESIGNATES AN ALTERNATIVE RETIREMENT PLAN 315
UNDER SECTION 3305.03 OF THE REVISED CODE and every third year 316
thereafter, the Ohio retirement study commission shall cause an 317
independent actuarial study to be completed and submitted to the 318
Ohio board of regents. The study shall determine any adjustments 319
in contributions necessary to reflect any change in the level of 320
the negative financial impact resulting from the establishment of 321
the alternative retirement program. The amount contributed to 323
the state retirement system pursuant to this division shall be
increased or decreased to reflect the amount needed to mitigate 324
the negative financial impact, if any, on the system, as 325
determined by each actuarial study. Any increase or decrease in 326
contributions shall become effective on the first day of July in 327
the year in which the actuarial study is completed. 328
Contributions on behalf of an electing employee shall continue in 329
accordance with this division until the occurrence of the 330
following:
(1) If the electing employee would be subject to Chapter 332
145. of the Revised Code had the employee not made an election 333
pursuant to section 3305.05 of the Revised Code, until the 335
unfunded actuarial accrued liability for all benefits, except 337
health care benefits provided under section 145.325 or 145.58 of 338
the Revised Code, is fully amortized, as determined by the annual 339
actuarial valuation prepared under section 145.22 of the Revised 340
Code;
(2) If the electing employee would be subject to Chapter 342
3307. of the Revised Code had the employee not made an election 343
pursuant to section 3305.05 of the Revised Code, until the 344
unfunded actuarial accrued liability for all benefits, except 345
health care benefits provided under section 3307.405 or 3307.74 346
of the Revised Code, is fully amortized, as determined by the 347
annual actuarial valuation prepared under section 3307.20 of the 348
Revised Code;
(3) If the electing employee would be subject to Chapter 350
10
3309. of the Revised Code had the employee not made an election 351
pursuant to section 3305.05 of the Revised Code, until the 352
unfunded actuarial accrued liability for all benefits, except 353
health care benefits provided under section 3309.375 or 3309.69 354
of the Revised Code, is fully amortized, as determined by the 355
annual actuarial valuation prepared under section 3309.21 of the 356
Revised Code.
Sec. 3309.36. (A) A member retiring on service retirement 365
shall be granted a retirement allowance consisting of the lesser 366
of the sum of the following amounts or the limit established by 367
section 415 of the "Internal Revenue Code of 1986," 100 Stat. 368
2085, 26 U.S.C.A. 415, as amended: 369
(A)(1) An annuity having a reserve equal to the amount of 371
the employee's accumulated contributions at that time; 372
(B)(2) A pension of equivalent amount; 374
(C)(3) An additional pension of forty dollars multiplied 376
by the number of years of such prior service credit; 377
(D)(4) For members who have ten or more years of service 379
credit accumulated prior to October 1, 1956, a basic annual 380
pension equal to one hundred eighty dollars, except that such 381
basic annual pension shall not exceed the sum of the total annual 382
benefits provided by divisions (A)(1), (B)(2), and (C)(3) of this 384
section.
(E)(B)(1) When a member retires on service retirement and 386
his, THE MEMBER'S allowance when computed as an annual single 389
lifetime allowance as provided in divisions (A)(1), (B)(2), 391
(C)(3), and (D)(4) of this section and section 3309.38 of the 392
Revised Code, based upon attained age sixty-five or thirty years 393
of total service credit, is SHALL BE NOT less than the greater of 395
the amounts determined by multiplying his THE MEMBER'S total 396
service credit by eighty-six THE FOLLOWING: 397
(a) EIGHTY-SIX dollars, or by two; 399
(b) TWO and one-tenth per cent of his THE MEMBER'S final 402
average salary, then the allowance shall be increased to such 404
11
greater amount. If such member's attained age is other than 405
sixty-five, or his total service credit is other than thirty 407
years, then he shall receive an adjusted FOR EACH OF THE FIRST 408
THIRTY YEARS OF SERVICE CREDIT OR FRACTION THEREOF PLUS TWO AND
ONE-HALF PER CENT OF THE MEMBER'S FINAL AVERAGE SALARY FOR EACH 409
SUBSEQUENT YEAR OF SERVICE CREDIT OR FRACTION THEREOF. 410
(2) THE annual single lifetime allowance which DETERMINED 414
UNDER DIVISION (B)(1) OF THIS SECTION shall be ADJUSTED BY the 415
higher percentage of a base amount determined by GREATER 417
PERCENTAGE SHOWN IN the following schedule OPPOSITE THE MEMBER'S 418
ATTAINED AGE OR YEARS OF OHIO SERVICE CREDIT: 419
Years of Per Cent 424
Attained or Ohio Service of 428
Age Credit Base Amount 431
58 25 75% 434
59 26 80 437
60 27 85 440
61 88 443
28 90 446
62 91 449
63 94 452
29 95 455
64 97 458
65 30 or more 100. 461
Members shall vest the right to a benefit in accordance with the 464
following schedule, based on the member's attained age by 465
September 1, 1976: 466
Per Cent 467
Attained of 468
Age Base Amount 469
66 102 470
67 104 471
68 106 472
69 108 473
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70 or more 110. 474
(2)(3) The annual single lifetime allowance which a 476
retirant shall receive under this division shall not exceed the 477
lesser of ninety per cent of his THE MEMBER'S final average 478
salary or the limit established by section 415 of the "Internal 480
Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415, as 481
amended.
(F)(C) Retirement allowances determined under this section 483
shall be paid as provided in section 3309.46 of the Revised Code. 484
Sec. 3309.38. (A) A member retiring on commuted service 493
retirement on or after September 30, 1963, shall be granted a 494
retirement allowance consisting of: 495
(A)(1) An annuity having a reserve equal to the amount of 497
the employee's accumulated contributions at the time; 498
(B)(2) A pension of equivalent amount; 500
(C)(3) An additional pension, if such employee has prior 502
service credit, the reserve for which, based upon regular 503
interest and the service tables approved by the board, shall be 504
the present worth of the reserve required for the payment of the 505
prior service pension provided by section 3309.36 of the Revised 506
Code, after either age sixty or thirty-two years of service 507
credit, whichever can be first attained. The annual prior 508
service pension shall be determined by the amount of such 509
commuted reserve divided by the service annuity rate for the 510
attained annuity age of retirement;. 511
(D)(4) For members who have ten or more years of service 513
credit accumulated prior to October 1, 1956, a basic annual 514
pension equal to one hundred eighty dollars, which shall be 515
commuted in the same manner as provided for the prior service 516
pension in division (C)(A)(3) of this section, provided such 517
commuted basic annual pension shall not exceed the sum of the 519
total annual benefits provided by divisions (A)(1), (B)(2), and 520
(C)(3) of this section. 521
(E)(B) When a member retires on commuted service 523
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retirement, his THE MEMBER'S annual single lifetime allowance 524
including the allowances provided in divisions (A)(1), (B)(2), 526
(C)(3), and (D)(4) of this section shall not be less than the 528
allowances provided under the provisions of division (E)(B) of 529
section 3309.36 of the Revised Code and shall not exceed the 531
limit established by division (E)(2)(B)(3) of that section. 533
(F)(C) Retirement allowances determined under this section 535
shall be paid as provided in section 3309.46 of the Revised Code. 536
Sec. 3309.50. Upon the death of a retirant or disability 545
benefit recipient, who at the time of death is receiving a 546
service retirement allowance or disability benefit from the 547
school employees retirement system, a lump-sum payment of five 548
hundred ONE THOUSAND dollars shall be paid to any designated or 549
qualified beneficiary under division (D) of section 3309.44 of 550
the Revised Code, or, if none NO SUCH DESIGNATION HAS BEEN FILED 551
OR IF THE DESIGNATED BENEFICIARY IS DECEASED OR IS NOT LOCATED 552
WITHIN NINETY DAYS, the school employees retirement board may 553
approve payment to either the person responsible for the burial 554
expenses or to the decedent's estate following the completion of 555
an application on a form approved by the board.
Sec. 3309.69. (A) As used in this section, "ineligible 564
individual" means all of the following: 565
(1) A former member receiving benefits pursuant to section 567
3309.34, 3309.35, 3309.36, 3309.38, or 3309.381 of the Revised 568
Code for whom eligibility is established more than five years 569
after June 13, 1981, and who, at the time of establishing 570
eligibility, has accrued less than ten years of service credit, 571
exclusive of credit obtained after January 29, 1981, pursuant to 572
sections 3309.021, 3309.301, 3309.31, and 3309.33 of the Revised 573
Code; 574
(2) The spouse of the former member; 576
(3) The beneficiary of the former member receiving 578
benefits pursuant to section 3309.46 of the Revised Code. 579
(B) The school employees retirement board may enter into 581
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an agreement with insurance companies, health insuring 583
corporations, or government agencies authorized to do business in 585
the state for issuance of a policy or contract of health, 586
medical, hospital, or surgical benefits, or any combination 587
thereof, for those individuals receiving service retirement or a 588
disability or survivor benefit subscribing to the plan and their 590
eligible dependents.
If all or any portion of the policy or contract premium is 592
to be paid by any individual receiving service retirement or a 594
disability or survivor benefit, the person shall, by written 595
authorization, instruct the board to deduct the premiums agreed 596
to be paid by the individual to the companies, corporations, or 598
agencies.
The board may contract for coverage on the basis of part or 601
all of the cost of the coverage to be paid from appropriate funds 602
of the school employees retirement system. The cost paid from 603
the funds of the system shall be included in the employer's 605
contribution rate provided by sections 3309.49 and 3309.491 of 606
the Revised Code. The board shall not pay or reimburse the cost 607
for health care under this section or section 3309.375 of the 608
Revised Code for any ineligible individual. 609
The board may provide for self-insurance of risk or level 611
of risk as set forth in the contract with the companies, 612
corporations, or agencies, and may provide through the 613
self-insurance method specific benefits as authorized by the 614
rules of the board. 615
(C) If the board provides health, medical, hospital, or 617
surgical benefits through any means other than a health insuring 619
corporation, it shall offer to each individual eligible for the 622
benefits the alternative of receiving benefits through enrollment 624
in a health insuring corporation, if all of the following apply: 626
(1) The health insuring corporation provides health care 629
services in the geographical area in which the individual lives; 631
(2) The eligible individual was receiving health care 633
15
benefits through a health maintenance organization or a health 634
insuring corporation before retirement; 636
(3) The rate and coverage provided by the health insuring 639
corporation to eligible individuals is comparable to that 641
currently provided by the board under division (B) of this 642
section. If the rate or coverage provided by the health insuring 643
corporation is not comparable to that currently provided by the 645
board under division (B) of this section, the board may deduct 646
the additional cost from the eligible individual's monthly 647
benefit.
The health insuring corporation shall accept as an enrollee 651
any eligible individual who requests enrollment.
The board shall permit each eligible individual to change 653
from one plan to another at least once a year at a time 654
determined by the board. 655
(D) The board shall, beginning the month following receipt 657
of satisfactory evidence of the payment for coverage, make a 658
monthly payment to each recipient of service retirement, or a 659
disability or survivor benefit under the school employees 660
retirement system who is eligible for insurance coverage under 661
part B of "The Social Security Amendments of 1965," 79 Stat. 301, 662
42 U.S.C.A. 1395j, as amended, except that the board shall make 663
no such payment to any ineligible individual. The EFFECTIVE ON 664
THE FIRST DAY OF THE MONTH AFTER THE EFFECTIVE DATE OF THIS 665
AMENDMENT, THE amount of the payment shall be the lesser of an 667
amount equal to the basic premium for such coverage, or an amount 668
equal to the basic premium in effect on January 1, 1988 1992. 669
(E) The board shall establish by rule requirements for the 671
coordination of any coverage, payment, or benefit provided under 673
this section or section 3309.375 of the Revised Code with any 675
similar coverage, payment, or benefit made available to the same 676
individual by the public employees retirement system, police and 677
firemen's disability and pension fund, state teachers retirement 678
system, or state highway patrol retirement system. 679
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(F) The board shall make all other necessary rules 681
pursuant to the purpose and intent of this section. 682
Section 2. That existing sections 145.30, 3305.05, 684
3305.06, 3309.36, 3309.38, 3309.50, and 3309.69 and section 686
3309.37 of the Revised Code are hereby repealed.
Section 3. The School Employees Retirement System should 688
make a one-time payment to each person who is a current recipient 689
of service retirement or a disability or survivor benefit from 690
the System and was eligible to receive a monthly payment pursuant 691
to division (D) of section 3309.69 of the Revised Code for 692
insurance coverage under Part B of "The Social Security
Amendments of 1965," 79 Stat. 301, 42 U.S.C.A. 1935j, as amended, 693
at any time during the period commencing January 1, 1992, and 694
ending on the effective date of this section. The amount of the 695
payment to each recipient shall be equal to the sum of the 696
differences between:
(A) Each monthly payment the recipient was eligible to 698
receive under division (D) of section 3309.69 of the Revised Code 699
during the period commencing January 1, 1992, and ending on the 700
effective date of this section; and
(B) The amount of the monthly payment that is authorized 702
by division (D) of section 3309.69 of the Revised Code as enacted 703
by this act.