As Introduced                            1            

123rd General Assembly                                             4            

   Regular Session                                  S. B. No. 190  5            

      1999-2000                                                    6            


    SENATORS BLESSING-CARNES-OELSLAGER-BRADY-HAGAN-FINGERHUT-      8            

              SHOEMAKER-KEARNS-MALLORY-McLIN-WHITE                 9            


_________________________________________________________________   11           

                          A   B I L L                                           

             To amend sections 145.28, 145.293, 145.301, 145.311,  13           

                145.312, 145.35, 145.37, 145.38, 145.45, 742.26,   14           

                742.379, 2329.66, 3305.01, 3305.06, 3307.01,       15           

                3307.013, 3307.02, 3307.021, 3307.022, 3307.05,                 

                3307.07, 3307.08, 3307.09, 3307.10, 3307.11,       16           

                3307.111, 3307.14, 3307.15, 3307.19, 3307.20,      17           

                3307.201, 3307.21, 3307.22, 3307.26, 3307.28,      18           

                3307.281, 3307.282, 3307.283, 3307.29, 3307.30,    19           

                3307.31, 3307.311, 3307.32, 3307.33, 3307.35,      20           

                3307.36, 3307.371, 3307.38, 3307.381, 3307.382,    21           

                3307.383, 3307.384, 3307.39, 3307.40, 3307.401,    22           

                3307.402, 3307.403, 3307.404, 3307.405, 3307.406,               

                3307.407, 3307.408, 3307.409, 3307.4010,           23           

                3307.4011, 3307.4012, 3307.4013, 3307.41,          24           

                3307.411, 3307.412, 3307.42, 3307.421, 3307.43,    25           

                3307.431, 3307.44, 3307.46, 3307.47, 3307.48,                   

                3307.49, 3307.50, 3307.51, 3307.511, 3307.512,     26           

                3307.515, 3307.53, 3307.56, 3307.58, 3307.59,      27           

                3307.60, 3307.61, 3307.62, 3307.64, 3307.65,                    

                3307.651, 3307.66, 3307.68, 3307.69, 3307.70,      28           

                3307.71, 3307.711, 3307.712, 3307.72, 3307.73,     29           

                3307.74, 3307.741, 3307.751, 3307.78, 3307.80,     30           

                3309.021, 3309.261, 3309.262, 3309.301, 3309.31,                

                3309.341, 3309.35, 3309.39, 3309.45, 3313.975,     31           

                3317.011, 3317.13, 3319.08, 5101.181, 5505.161,    32           

                and 5505.202; to amend, for the purpose of                      

                adopting new section numbers as indicated in       33           

                                                          2      


                                                                 
                parentheses, sections 3307.013 (3307.501),         34           

                3307.02 (3307.75), 3307.021 (3307.751), 3307.022   35           

                (3307.752), 3307.111 (3307.151), 3307.14                        

                (3307.181), 3307.20 (3307.51), 3307.201            36           

                (3307.512), 3307.21 (3307.20), 3307.22 (3307.73),  37           

                3307.26 (3307.241), 3307.27 (3307.24), 3307.28                  

                (3307.71), 3307.281 (3307.70), 3307.282            38           

                (3307.711), 3307.283 (3307.712), 3307.29           39           

                (3307.23), 3307.30 (3307.231), 3307.31 (3307.53),  40           

                3307.311 (3307.78), 3307.32 (3307.74), 3307.33                  

                (3307.741), 3307.35 (3307.54), 3307.36 (3307.52),  41           

                3307.371 (3307.69), 3307.38 (3307.58), 3307.381    42           

                (3307.35), 3307.382 (3307.691), 3307.383           43           

                (3307.79), 3307.384 (3307.692), 3307.39                         

                (3307.59), 3307.40 (3307.392), 3307.401            44           

                (3307.693), 3307.402 (3307.694), 3307.403          45           

                (3307.67), 3307.404 (3307.695), 3307.405                        

                (3307.61), 3307.406 (3307.696), 3307.407           46           

                (3307.697), 3307.408 (3307.671), 3307.409          47           

                (3307.698), 3307.4010 (3307.699), 3307.4011                     

                (3307.6910), 3307.4012 (3307.46), 3307.4013        48           

                (3307.6911), 3307.41 (3307.57), 3307.411           49           

                (3307.76), 3307.412 (3307.761), 3307.42                         

                (3307.62), 3307.421 (3307.513), 3307.43            50           

                (3307.63), 3307.431 (3307.631), 3307.44            51           

                (3307.64), 3307.46 (3307.56), 3307.47 (3307.561),  52           

                3307.48 (3307.562), 3307.49 (3307.66), 3307.50                  

                (3307.60), 3307.51 (3307.26), 3307.511             53           

                (3307.261), 3307.512 (3307.77), 3307.515           54           

                (3307.771), 3307.53 (3307.28), 3307.56 (3307.31),  55           

                3307.58 (3307.21), 3307.59 (3307.211), 3307.60                  

                (3307.212), 3307.61 (3307.29), 3307.62             56           

                (3307.291), 3307.63 (3307.213), 3307.64            57           

                (3307.30), 3307.65 (3307.14), 3307.651                          

                                                          3      


                                                                 
                (3307.142), 3307.66 (3307.141), 3307.68            58           

                (3307.96), 3307.69 (3307.97), 3307.70 (3307.98),   59           

                3307.71 (3307.41), 3307.711 (3307.42), 3307.712    60           

                (3307.44), 3307.72 (3307.37), 3307.73 (3307.72),   61           

                3307.74 (3307.39), 3307.741 (3307.391), 3307.75                 

                (3307.32), 3307.751 (3307.47), 3307.78             62           

                (3307.6912), and 3307.80 (3307.563); to enact new  64           

                sections 3307.27, 3307.33, 3307.50, 3307.511, and  65           

                3307.80 and sections 3307.031, 3307.121, 3307.25,  66           

                3307.251, 3307.252, 3307.661, 3307.6913,           67           

                3307.6914, 3307.81, 3307.811, 3307.812, 3307.82,   68           

                3307.821, 3307.83, 3307.84, 3307.86, 3307.88,      69           

                3307.881, 3307.882, and 3307.89; and to repeal     70           

                sections 3307.012, 3307.34, 3307.37, 3307.513,     71           

                and 3307.514 of the Revised Code to increase                    

                certain benefits paid by the State Teachers        72           

                Retirement System and to require the System to     73           

                establish a defined contribution plan that                      

                members can select as an alternative to the        75           

                System's existing defined benefit plan.                         




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        77           

      Section 1.  That sections 145.28, 145.293, 145.301,          79           

145.311, 145.312, 145.35, 145.37, 145.38, 145.45, 742.26,          80           

742.379, 2329.66, 3305.01, 3305.06, 3307.01, 3307.013, 3307.02,    81           

3307.021, 3307.022, 3307.05, 3307.07, 3307.08, 3307.09, 3307.10,   82           

3307.11, 3307.111, 3307.14, 3307.15, 3307.19, 3307.20, 3307.201,   84           

3307.21, 3307.22, 3307.26, 3307.28, 3307.281, 3307.282, 3307.283,               

3307.29, 3307.30, 3307.31, 3307.311, 3307.32, 3307.33, 3307.35,    86           

3307.36, 3307.371, 3307.38, 3307.381, 3307.382, 3307.383,          87           

3307.384, 3307.39, 3307.40, 3307.401, 3307.402, 3307.403,          88           

3307.404, 3307.405, 3307.406, 3307.407, 3307.408, 3307.409,        89           

3307.4010, 3307.4011, 3307.4012, 3307.4013, 3307.41, 3307.411,     90           

                                                          4      


                                                                 
3307.412, 3307.42, 3307.421, 3307.43, 3307.431, 3307.44, 3307.46,  91           

3307.47, 3307.48, 3307.49, 3307.50, 3307.51, 3307.511, 3307.512,   92           

3307.515, 3307.53, 3307.56, 3307.58, 3307.59, 3307.60, 3307.61,    93           

3307.62, 3307.64, 3307.65, 3307.651, 3307.66, 3307.68, 3307.69,    94           

3307.70, 3307.71, 3307.711, 3307.712, 3307.72, 3307.73, 3307.74,   95           

3307.741, 3307.751, 3307.78, 3307.80, 3309.021, 3309.261,          96           

3309.262, 3309.301, 3309.31, 3309.341, 3309.35, 3309.39, 3309.45,  97           

3313.975, 3317.011, 3317.13, 3319.08, 5101.181, 5505.161, and      98           

5505.202 be amended; that sections 3307.013 (3307.501), 3307.02    99           

(3307.75), 3307.021 (3307.751), 3307.022 (3307.752), 3307.111      100          

(3307.151), 3307.14 (3307.181), 3307.20 (3307.51), 3307.201        101          

(3307.512), 3307.21 (3307.20), 3307.22 (3307.73), 3307.26          102          

(3307.241), 3307.27 (3307.24), 3307.28 (3307.71), 3307.281         103          

(3307.70), 3307.282 (3307.711), 3307.283 (3307.712), 3307.29       104          

(3307.23), 3307.30 (3307.231), 3307.31 (3307.53), 3307.311         105          

(3307.78), 3307.32 (3307.74), 3307.33 (3307.741), 3307.35          106          

(3307.54), 3307.36 (3307.52), 3307.371 (3307.69), 3307.38          107          

(3307.58), 3307.381 (3307.35), 3307.382 (3307.691), 3307.383       108          

(3307.79), 3307.384 (3307.692), 3307.39 (3307.59), 3307.40         109          

(3307.392), 3307.401 (3307.693), 3307.402 (3307.694), 3307.403     110          

(3307.67), 3307.404 (3307.695), 3307.405 (3307.61), 3307.406       111          

(3307.696), 3307.407 (3307.697), 3307.408 (3307.671), 3307.409     112          

(3307.698), 3307.4010 (3307.699), 3307.4011 (3307.6910),           113          

3307.4012 (3307.46), 3307.4013 (3307.6911), 3307.41 (3307.57),     114          

3307.411 (3307.76), 3307.412 (3307.761), 3307.42 (3307.62),        115          

3307.421 (3307.513), 3307.43 (3307.63), 3307.431 (3307.631),       116          

3307.44 (3307.64), 3307.46 (3307.56), 3307.47 (3307.561), 3307.48  117          

(3307.562), 3307.49 (3307.66), 3307.50 (3307.60), 3307.51          118          

(3307.26), 3307.511 (3307.261), 3307.512 (3307.77), 3307.515       119          

(3307.771), 3307.53 (3307.28), 3307.56 (3307.31), 3307.58          120          

(3307.21), 3307.59 (3307.211), 3307.60 (3307.212), 3307.61         121          

(3307.29), 3307.62 (3307.291), 3307.63 (3307.213), 3307.64         122          

(3307.30), 3307.65 (3307.14), 3307.651 (3307.142), 3307.66         123          

(3307.141), 3307.68 (3307.96), 3307.69 (3307.97), 3307.70          124          

                                                          5      


                                                                 
(3307.98), 3307.71 (3307.41), 3307.711 (3307.42), 3307.712         125          

(3307.44), 3307.72 (3307.37), 3307.73 (3307.72), 3307.74           126          

(3307.39), 3307.741 (3307.391), 3307.75 (3307.32), 3307.751        127          

(3307.47), 3307.78 (3307.6912), and 3307.80 (3307.563) be          128          

amended, for the purpose of adopting new section numbers as        129          

indicated in parentheses; and that new sections 3307.27, 3307.33,  130          

3307.50, 3307.511, and 3307.80 and sections 3307.031, 3307.121,    133          

3307.25, 3307.251, 3307.252, 3307.661, 3307.6913, 3307.6914,       134          

3307.81, 3307.811, 3307.812, 3307.82, 3307.821, 3307.83, 3307.84,  135          

3307.86, 3307.88, 3307.881, 3307.882, and 3307.89 of the Revised   136          

Code be enacted read as follows:                                   137          

      Sec. 145.28.  (A)(1)  Except as provided in division (A)(2)  146          

of this section, a member of the public employees retirement       147          

system with at least eighteen months of contributing service in    148          

the system, the state teachers retirement system, or the school    149          

employees retirement system who exempted himself SELF from         150          

membership in one or more of the systems pursuant to section       152          

145.03 or 3309.23 of the Revised Code, or former section 3307.25   153          

or 3309.25 of the Revised Code, or was exempt under section        154          

3307.27 3307.24 of the Revised Code, may purchase credit for each  156          

year or portion of a year of service for which he THE MEMBER was   157          

exempted.                                                                       

      (2)  A member may not purchase credit under this section     159          

for exempted service if the service was exempted from              160          

contribution under section 145.03 of the Revised Code and subject  161          

to the tax on wages imposed by the "Federal Insurance              162          

Contributions Act," 68A Stat. 415 (1954), 26 U.S.C.A. 3101, as     163          

amended.                                                           164          

      (B)  For each year or portion of a year of credit purchased  166          

under this section, a member shall pay to the retirement system    167          

an amount determined by multiplying the member's earnable salary   168          

for the twelve months of contributing service preceding the month  169          

in which he THE MEMBER applies to purchase the credit by a         170          

percentage rate established by rule of the public employees        172          

                                                          6      


                                                                 
retirement board adopted under division (F) of this section.       173          

      (C)  Subject to board rules, a member may purchase all or    175          

part of the credit he THE MEMBER is eligible to purchase under     176          

this section in one or more payments.  If the member purchases     178          

the credit in more than one payment, compound interest at a rate   179          

specified by rule of the board shall be charged on the balance     180          

remaining after the first payment is made.                         181          

      (D)  Credit purchasable under this section shall not exceed  183          

one year of service for any twelve-month period.  If the period    184          

of service for which credit is purchasable under this section is   185          

concurrent with a period of service that will be used to           186          

calculate a retirement benefit from this system, the state         187          

teachers retirement system, or school employees retirement         188          

system, the amount of the credit shall be adjusted in accordance   189          

with rules adopted by the public employees retirement board.       190          

      A member who is also a member of the state teachers          192          

retirement system or the school employees retirement system shall  193          

purchase credit for any service for which he THE MEMBER exempted   194          

himself SELF under section 145.03 or 3309.23 of the Revised Code,  196          

or former section 3307.25 or 3309.25 of the Revised Code, or was   197          

exempt under section 3307.27 3307.24 of the Revised Code, from     198          

the retirement system in which he THE MEMBER has the greatest      200          

number of years of service credit.  If the member receives         202          

benefits under section 145.37 of the Revised Code, the retirement  203          

system that determines and pays the benefit shall receive from     204          

the other system or systems the amounts paid by the member for     205          

purchase of credit for exempt service plus interest at the         206          

actuarial assumption rate of the system paying that amount.  The   207          

interest shall be for the period beginning on the date of the      208          

member's last payment for purchase of the credit and ending on     209          

the date of the member's retirement.                                            

      (E)  If a member dies or withdraws from service, any         211          

payment made by the member under this section shall be considered  212          

as accumulated contributions of the member.                        213          

                                                          7      


                                                                 
      (F)  The retirement board shall adopt rules to implement     215          

this section.                                                      216          

      Sec. 145.293.  (A)  Service credit purchased under this      225          

section shall be included in the member's total service credit.    226          

Credit may be purchased for the following:                         227          

      (1)  Service rendered in another state, and service in any   229          

entity operated by the United States government, that, if served   230          

in a comparable position in Ohio, would be covered by the public   231          

employees retirement system, Ohio police and fire pension fund,    233          

state teachers retirement system, school employees retirement      234          

system, or state highway patrol retirement system;                 235          

      (2)  Service for which contributions were made by the        237          

member or on the member's behalf to a municipal retirement system  239          

in this state.                                                                  

      The number of years purchased under this section shall not   241          

exceed the lesser of five years or the member's total accumulated  242          

number of years of Ohio service.                                   243          

      (B)  For each year of service purchased, a member shall pay  245          

to the public employees retirement system for credit to the        246          

member's accumulated account an amount equal to the member's       248          

retirement contribution for full-time employment for the first     249          

year of Ohio service following termination of the service to be    250          

purchased.  To this amount shall be added an amount equal to       251          

compound interest at a rate established by the public employees    252          

retirement board from the date of membership in the public         253          

employees retirement system to date of payment.  The member may    254          

choose to purchase only part of such credit in any one payment,    255          

subject to board rules.                                            256          

      (C)  A member is ineligible to purchase under this section   258          

service for which the member has obtained credit under section     260          

145.44 of the Revised Code or service that is used in the          261          

calculation of any retirement benefit currently being paid or      262          

payable in the future to the member under any other retirement     263          

program except social security.  At the time the credit is         264          

                                                          8      


                                                                 
purchased the member shall certify on a form furnished by the      265          

retirement board that the member does and will conform to this     266          

requirement.                                                                    

      (D)  Credit purchased under this section may be combined     268          

pursuant to section 145.37 with credit purchased under sections    269          

3307.32 3307.74 and 3309.31 of the Revised Code, except that not   271          

more than an aggregate total of five years' service credit         272          

purchased under this section and sections 3307.32 3307.74 and      273          

3309.31 shall be used in determining retirement eligibility or     275          

calculating benefits under section 145.37 of the Revised Code.     276          

      Sec. 145.301.  (A)  A member may purchase service credit     285          

that shall be considered as the equivalent of Ohio service for     286          

each year of service incurred by reason of having been on active   287          

duty as a member of the armed forces of the United States, as      288          

defined in section 145.30 of the Revised Code.  The credit may be  289          

purchased at any time prior to receipt of a retirement allowance.  290          

The number of years purchased shall not exceed five.  The member   292          

may choose to purchase only part of such credit in any one         293          

payment, subject to board rules.                                                

      (B)  For the purposes of this division, "prisoner of war"    295          

means any regularly appointed, enrolled, enlisted, or inducted     296          

member of the armed forces of the United States who was captured,  297          

separated, and incarcerated by an enemy of the United States.      298          

      A member may purchase service credit that shall be           300          

considered as the equivalent of Ohio service for each year of      301          

service such member was a prisoner of war.  The number of years    302          

purchased under this division shall not exceed five.  Service      303          

credit may be purchased under this division for the same years of  304          

service used to purchase service credit under division (A) of      305          

this section.  The member may choose to purchase only part of      306          

such credit in any one payment, subject to board rules.            307          

      (C)  The total number of years purchased under this section  309          

shall not exceed the member's total accumulated number of years    310          

of Ohio service.                                                   311          

                                                          9      


                                                                 
      (D)  For each year of service purchased under division (A)   313          

or (B) of this section, the member shall pay to the public         314          

employees retirement system for credit to the member's             315          

accumulated account an amount determined by the member rate of     317          

contribution in effect at the time the military service began,     318          

multiplied by the member's salary, earnable salary, or             319          

compensation for full-time employment during the first year of     320          

service covered by a state retirement system or the Cincinnati     321          

retirement system following termination of military service.  If,  322          

however, a limit on maximum salary or maximum contribution was in  323          

effect at the time the military service began, the limit shall be  324          

applied to the salary, earnable salary, or compensation received   326          

during the first year of service covered by a state retirement     327          

system or the Cincinnati retirement system to calculate the        328          

amount of payment.  To this amount shall be added an amount equal  329          

to compound interest at a rate established by the public           330          

employees retirement board from the date active military service   331          

terminated to date of payment.                                                  

      (E)  A member is ineligible to purchase service credit       333          

under this section for any year of military service that was:      334          

      (1)  Used in the calculation of any retirement benefit       337          

currently being paid to the member or payable in the future under  338          

any other retirement program, except social security, or for       339          

retired pay for nonregular service under Chapter 1223 of Section   342          

1662 of Title XVI of the "National Defense Authorization Act for   348          

Fiscal Year 1995," 108 Stat. 2998 (1994), 10 U.S.C.A. 12731 to     353          

12739;                                                                          

      (2)  Used to obtain service credit pursuant to section       355          

145.30 or 145.302 of the Revised Code.                             358          

      At the time the credit is purchased, the member shall        361          

certify on a form furnished by the retirement board that the       362          

member does and will conform to this requirement.                  364          

      (F)  Credit purchased under this section may be combined     366          

pursuant to section 145.37 with credit for military service        367          

                                                          10     


                                                                 
purchased under sections 3307.021 3307.751 and 3309.021, except    369          

that not more than an aggregate total of five years of credit      370          

purchased under division (A) of this section, division (A) of      371          

section 3307.021 3307.751, and division (A) of section 3309.021,   372          

and not more than an aggregate total of five years of credit       374          

purchased under division (B) of this section, division (B) of      375          

section 3307.021 3307.751, and division (B) of section 3309.021    377          

shall be used in determining retirement eligibility or             378          

calculating benefits under section 145.37 of the Revised Code.     379          

      Sec. 145.311.  (A)  A member of the public employees         388          

retirement system who has at least eighteen months of              389          

contributing service credit in the system, the OHIO police and     390          

firemen's disability and FIRE pension fund, school employees       392          

retirement system, state teachers retirement system, or state      393          

highway patrol retirement system, and is a former member of or no  394          

longer contributing to the school employees retirement system or   395          

state teachers retirement system may restore service credit under  396          

section 3307.28 3307.71 or 3309.26 of the Revised Code by making   398          

payments pursuant to this section through a payroll deduction      399          

plan established under section 145.294 of the Revised Code, a.  A  400          

member seeking to restore this service credit shall notify the     402          

public employees retirement system on a form approved by the       403          

public employees retirement board.  After receiving the notice,    404          

the public employees retirement system shall request that the      405          

former retirement system calculate under section 3307.283                       

3307.712 or 3309.262 of the Revised Code the cost to the member    407          

to restore service credit for each year or portion of a year of    409          

service for which the member seeks to restore the service credit.  410          

The amount the former retirement system certifies as the cost of   411          

restoring the service credit, plus interest described in division  412          

(B) of this section, is the cost to the member of restoring the    413          

service credit.  On receiving the certification from the former    414          

retirement system, the public employees retirement system shall    415          

notify the member of the cost.                                     416          

                                                          11     


                                                                 
      (B)  For each year or portion of a year of service credit    418          

restored under section 3307.28 3307.71 or 3309.26 of the Revised   420          

Code, a member shall pay to the public employees retirement        421          

system the amount certified by the former retirement system plus   422          

interest at a rate specified by the former retirement system       423          

under section 3307.283 3307.712 or 3309.262 of the Revised Code    425          

for the period during which deductions are made under section      426          

145.294 of the Revised Code.                                       427          

      (C)  The public employees retirement board shall annually    430          

notify the former retirement system that a payment to restore      431          

service credit under section 3307.28 3307.71 or 3309.26 of the     433          

Revised Code has been made.  At the time the payment is            434          

transferred under division (D) of this section, the former         435          

retirement system shall restore the service credit for the year    436          

or portion of a year for which the payment was made.               438          

      (D)  On application for a payment of accumulated             440          

contributions or an age and service retirement, disability, or     442          

survivor benefit under Chapter 145., 3307., or 3309. of the        443          

Revised Code by a member who made payments under this section to   445          

restore service credit in a former retirement system, the public   446          

employees retirement system shall pay to the former retirement     447          

system an amount equal to the total amount paid by the member      449          

under this section.                                                             

      (E)  The board shall adopt rules to implement this section.  451          

      Sec. 145.312.  After receiving a request from the state      461          

teachers retirement system under division (A) of section 3307.282  462          

3307.711 or the school employees retirement system under division  464          

(A) of section 3309.261 of the Revised Code, the public employees  467          

retirement system shall do both of the following:                  468          

      (A)  Calculate and certify to the requesting retirement      471          

system the cost to a former member to restore service credit       472          

under section 145.31 of the Revised Code for each year or portion  473          

of a year for which the former member seeks to restore service     475          

credit under that section.                                                      

                                                          12     


                                                                 
      (B)  Inform the requesting retirement system of the rate of  477          

interest charged to a member under a payroll deduction plan        478          

authorized under section 145.294 of the Revised Code.              479          

      Sec. 145.35.  (A)  As used in this section, "on-duty         488          

illness or injury" means an illness or injury that occurred        489          

during or resulted from performance of duties under the direct     490          

supervision of a member's appointing authority.                    491          

      (B)  The public employees retirement system shall provide    493          

disability coverage to each member who has at least five years of  494          

total service credit and disability coverage for on-duty illness   495          

or injury to each member who is a law enforcement officer,         496          

regardless of length of service.                                   497          

      Not later than October 16, 1992, the public employees        499          

retirement board shall give each person who is a member on July    500          

29, 1992, the opportunity to elect disability coverage either      502          

under section 145.36 of the Revised Code or under section 145.361  503          

of the Revised Code.  The board shall mail notice of the           504          

election, accompanied by an explanation of the coverage under      505          

each of the Revised Code sections and a form on which the          506          

election is to be made, to each member at the member's last known  508          

address.  The board shall also provide the explanation and form    509          

to any member on request.                                                       

      Regardless of whether the member actually receives notice    511          

of the right to make an election, a member who fails to file a     512          

valid election under this section shall be considered to have      513          

elected disability coverage under section 145.36 of the Revised    514          

Code.  To be valid, an election must be made on the form provided  515          

by the retirement board, signed by the member, and filed with the  516          

board not later than one hundred eighty days after the date the    517          

notice was mailed, or, in the case of a form provided at the       518          

request of a member, a date specified by rule of the retirement    519          

board.  Once made, an election is irrevocable, but if the member   520          

ceases to be a member of the retirement system, the election is    521          

void.  If a person who makes an election under this section also   522          

                                                          13     


                                                                 
makes an election under section 3307.42 3307.62 or 3309.39 of the  524          

Revised Code, the election made for the system that pays a         525          

disability benefit to that person shall govern the benefit.        526          

      Disability coverage shall be provided under section 145.361  528          

of the Revised Code for persons who become members after July 29,  530          

1992, and for members who elect under this division to be covered  531          

under section 145.361 of the Revised Code.                         532          

      The retirement board may adopt rules governing elections     534          

made under this division.                                          535          

      (C)  Application for a disability benefit may be made by a   537          

member, by a person acting in the member's behalf, or by the       538          

member's employer, provided the member has disability coverage     540          

under section 145.36 or 145.361 of the Revised Code and is not     541          

receiving a disability benefit under any other Ohio state or       542          

municipal retirement program.  Application must be made within     543          

two years from the date the member's contributing service          544          

terminated, unless the retirement board determines that the        545          

member's medical records demonstrate conclusively that at the      546          

time the two-year period expired, the member was physically or     547          

mentally incapacitated for duty and unable to make an              548          

application.  Application may not be made by or for any person     549          

receiving age and service retirement benefits under section        550          

145.33, 145.331, 145.34, or 145.37 of the Revised Code or any      551          

person who, pursuant to section 145.40 of the Revised Code, has    552          

been paid the accumulated contributions standing to the credit of  553          

the person's individual account in the employees' savings fund.    555          

The application shall be made on a form provided by the                         

retirement board.                                                  556          

      (D)  The benefit payable to any member who is approved for   558          

a disability benefit shall become effective on the first day of    559          

the month immediately following the later of the following:        560          

      (1)  The last day for which compensation was paid;           562          

      (2)  The attainment of eligibility for a disability          564          

benefit.                                                           565          

                                                          14     


                                                                 
      (E)  Medical examination of a member who has applied for a   568          

disability benefit shall be conducted by a competent                            

disinterested physician or physicians selected by the board to     569          

determine whether the member is mentally or physically             570          

incapacitated for the performance of duty by a disabling           571          

condition either permanent or presumed to be permanent.  The       573          

disability must have occurred since last becoming a member or                   

have increased since last becoming a member to such extent as to   574          

make the disability permanent or presumed to be permanent.  A      575          

disability is presumed to be permanent if it is expected to last   576          

for a continuous period of not less than twelve months following   577          

the filing of the application.                                     578          

      If the physician or physicians determine that the member     580          

qualifies for a disability benefit, the board concurs with the     582          

determination, and the member agrees to medical treatment as       583          

specified in division (F) of this section, the member shall        584          

receive a disability benefit under section 145.36 or 145.361 of    585          

the Revised Code.  The action of the board shall be final.         586          

      (F)  The public employees retirement board shall adopt       588          

rules requiring a disability benefit recipient, as a condition of  590          

continuing to receive a disability benefit, to agree in writing    591          

to obtain any medical treatment recommended by the board's         592          

physician and submit medical reports regarding the treatment.  If  594          

the board determines that a disability benefit recipient is not                 

obtaining the medical treatment or the board does not receive a    595          

required medical report, the disability benefit shall be           597          

suspended until the treatment is obtained, the report is received  598          

by the board, or the board's physician certifies that the          599          

treatment is no longer helpful or advisable.  Should the           600          

recipient's failure to obtain treatment or submit a medical        601          

report continue for one year, the recipient's right to the         603          

disability benefit shall be terminated as of the effective date    604          

of the original suspension.                                                     

      (G)  In the event an employer files an application for a     606          

                                                          15     


                                                                 
disability benefit as a result of a member having been separated   607          

from service because the member is considered to be mentally or    609          

physically incapacitated for the performance of the member's       610          

present duty, and the physician or physicians selected by the      611          

board reports to the board that the member is physically and       612          

mentally capable of performing service similar to that from which  613          

the member was separated and the board concurs in the report, the  615          

board shall so certify to the employer and the employer shall      616          

restore the member to the member's previous position and salary    618          

or to a similar position and salary.                                            

      Sec. 145.37.  (A)  As used in this section:                  627          

      (1)  "State retirement system" means the public employees    629          

retirement system, school employees retirement system, or state    630          

teachers retirement system.                                        631          

      (2)  "Total service credit" means all service credit earned  633          

in the state retirement systems, except credit for service         634          

subject to section 145.38 of the Revised Code.  Total service      635          

credit shall not exceed one year of credit for any twelve-month    636          

period.                                                            637          

      (3)  In addition to the meaning given in division (N) of     639          

section 145.01 of the Revised Code, "disability benefit" means     640          

"disability benefit" as defined in sections 3307.01 and 3309.01    641          

of the Revised Code.                                               642          

      (B)  To coordinate and integrate membership in the state     644          

retirement systems, the following provisions apply:                645          

      (1)  At the option of a member, total contributions and      647          

service credit in all state retirement systems, including amounts  648          

paid to restore service credit under sections 145.311, 3307.282,   649          

and 3309.261 of the Revised Code, shall be used in determining     651          

the eligibility and total retirement or disability benefit         652          

payable.  When total contributions and service credit are so       653          

combined, the following provisions apply:                                       

      (a)  Age and service retirement or disability benefits are   655          

effective on the first day of the month immediately following the  656          

                                                          16     


                                                                 
later of:                                                          657          

      (i)  The last day for which compensation was paid;           659          

      (ii)  The attainment of minimum age or service credit        661          

eligibility for benefits provided under this section.              662          

      (b)  In determining eligibility for a disability benefit,    664          

the medical examiner's report to the retirement board of any       665          

state retirement system, showing that the member's disability      666          

incapacitates the member for the performance of duty, may be       667          

accepted by the state retirement boards as sufficient for          669          

granting a disability benefit.                                     670          

      (c)  The state retirement system in which the member had     672          

the greatest service credit, without adjustment, shall determine   673          

and pay the total retirement or disability benefit.  Where the     674          

member's credit is equal in two or more state retirement systems,  676          

the system having the largest total contributions of the member    677          

shall determine and pay the total benefit.                         678          

      (d)  In determining the total credit to be used in           680          

calculating a retirement or disability benefit, credit shall not   681          

be reduced below that certified by the system or systems           682          

transferring credit, except that such total combined service       683          

credit shall not exceed one year of credit for any one "year" as   684          

defined in the law of the system making the calculation.           685          

      (e)  The state retirement system determining and paying a    687          

retirement or disability benefit shall receive from the other      688          

system or systems the member's refundable account at retirement    689          

or the effective date of a disability benefit plus an equal        690          

amount from the employer's accumulation fund.                      691          

      (i)  The annuity rates and mortality tables of the state     693          

retirement system making the calculation and paying the benefit    694          

shall be exclusively applicable.                                   695          

      (ii)  Deposits made for the purpose of an additional         697          

annuity, and including guaranteed interest, upon the request of    698          

the member, shall be transferred to the state retirement system    699          

paying the benefit.  The return upon such deposits shall be that   700          

                                                          17     


                                                                 
offered by the state retirement system making the calculation and  701          

paying the benefit.                                                702          

      (2)  A former member receiving a retirement or disability    704          

benefit under this section, who accepts employment amenable to     705          

coverage in any state retirement system that participated in the   706          

former member's combined benefit, shall be subject to the          708          

applicable provisions of law governing such re-employment.  If     709          

the former member is subject to section 3307.381 3307.35 of the    710          

Revised Code and exceeds the limits on re-employment established   712          

by that section, the state retirement system paying a combined     713          

benefit shall terminate the entire pension portion of the benefit  714          

for the period of re-employment that exceeds the limit in that     715          

section.  If a former member should be paid any amount in a        716          

retirement benefit, to which the former member is not entitled     717          

under the applicable provisions of law governing such              719          

re-employment, such amount shall be recovered by the state         720          

retirement system paying such benefit by utilizing any recovery    721          

procedure available under the code provisions of the state         722          

retirement system covering such re-employment.                                  

      (C)  A PERS retirant or other system retirant, as defined    724          

in section 145.38 of the Revised Code, is not eligible to receive  725          

any benefit under this section for service subject to section      726          

145.38 of the Revised Code.                                        727          

      Sec. 145.38.  (A)  As used in this section:                  736          

      (1)  "PERS retirant" means a former member of the public     738          

employees retirement system who is receiving either of the         739          

following:                                                                      

      (a)  Age and service retirement benefits under section       741          

145.32, 145.33, 145.331, 145.34, or 145.46 of the Revised Code;    742          

      (b)  Age and service retirement benefits paid by the public  744          

employees retirement system under section 145.37 of the Revised    745          

Code.                                                              746          

      (2)  "Other system retirant" means both of the following:    748          

      (a)  A member or former member of the Ohio police and        750          

                                                          18     


                                                                 
firemen's fire pension fund, state teachers retirement system,     751          

school employees retirement system, state highway patrol           752          

retirement system, or Cincinnati retirement system who is          753          

receiving age and service or commuted age and service retirement   754          

benefits or a disability benefit from a system of which the        755          

person is a member or former member;                               756          

      (b)  A member or former member of the public employees       758          

retirement system who is receiving age and service retirement      759          

benefits or a disability benefit under section 145.37 of the       760          

Revised Code paid by the school employees retirement system or     761          

the state teachers retirement system.                              762          

      (B)(1)  Subject to this section, a PERS retirant or other    764          

system retirant may be employed by a public employer.  If so       765          

employed, the PERS retirant or other system retirant shall         766          

contribute to the public employees retirement system in            767          

accordance with section 145.47 of the Revised Code, and the        768          

employer shall make contributions in accordance with section       769          

145.48 of the Revised Code.                                        770          

      (2)  A public employer that employs a PERS retirant or       772          

other system retirant, or enters into a contract for services as   773          

an independent contractor with a PERS retirant who was employed    774          

by the public employer at the time of the retirant's retirement    776          

shall notify the retirement board of the employment or contract                 

not later than the end of the month in which the employment or     777          

contract commences.  Any overpayment of benefits to a PERS         778          

retirant by the retirement system resulting from delay or failure  779          

of the employer to give the notice shall be repaid to the          780          

retirement system by the employer.                                 781          

      (3)  On receipt of notice from a public employer that a      783          

person who is an other system retirant has been employed, the      784          

retirement system shall notify the retirement system of which the  785          

other system retirant was a member of such employment.             786          

      (4)(a)  A PERS retirant who has received a retirement        788          

allowance for less than six months when employment subject to      789          

                                                          19     


                                                                 
this section commences shall forfeit the retirement allowance for  790          

the period that begins on the date the employment commences and    791          

ends on the date that is six months after the date on which the    792          

retirement allowance commenced.  Service and contributions for     793          

that period shall not be included in calculation of any benefits   794          

payable to the PERS retirant and those contributions shall be      795          

refunded on the retirant's death or termination of the             796          

employment.  For purposes of this division, "employment" shall     797          

include service for which the retirant or the retirant's           798          

employer, or both, have waived any earnable salary for such        799          

service.                                                                        

      (b)  An other system retirant who has received a retirement  801          

allowance or disability benefit for less than two months when      803          

employment subject to this section commences shall forfeit the     804          

retirement allowance or disability benefit for the period that     805          

begins on the date the employment commences and ends on the date   806          

that is two months after the date on which the retirement          807          

allowance or disability benefit commenced.  Service and            808          

contributions for that period shall not be included in the                      

calculation of any benefits payable to the other system retirant   809          

and those contributions shall be refunded on the retirant's death  811          

or termination of the employment.                                               

      (5)  On receipt of notice from the Ohio police and fire      814          

pension fund, school employees retirement system, or state         816          

teachers retirement system of the re-employment of a PERS          817          

retirant, the public employees retirement system shall not pay,                 

or if paid, shall recover, the amount to be forfeited by the PERS  818          

retirant in accordance with section 742.26, 3307.381 3307.35, or   820          

3309.341 of the Revised Code.                                      821          

      (6)  A PERS retirant who enters into a contract to provide   823          

services as an independent contractor to the employer by which     824          

the retirant was employed at the time of retirement or, less than  826          

two months after the retirement allowance commences, begins                     

providing services as an independent contractor pursuant to a      827          

                                                          20     


                                                                 
contract with another public employer, shall forfeit the pension   828          

portion of the retirement benefit for the period beginning the     829          

first day of the month following the month in which the services   830          

begin and ending on the first day of the month following the       831          

month in which the services end.  The annuity portion of the       832          

retirement allowance shall be suspended on the day services under  833          

the contract begin and shall accumulate to the credit of the       834          

retirant to be paid in a single payment after services provided    835          

under the contract terminate.  A PERS retirant subject to          836          

division (B)(6) of this section shall not contribute to the        837          

retirement system and shall not become a member of the system.     838          

      (C)(1)  Except as provided in division (C)(4) of this        840          

section, a PERS retirant employed pursuant to this section shall   842          

elect one of the following:                                                     

      (a)  To receive both compensation for the employment and a   845          

retirement allowance;                                                           

      (b)  To receive compensation for the employment and forfeit  848          

the pension portion of the retirement allowance.                                

      (2)  A PERS retirant who is described in division (C)(4) of  851          

this section or elects to forfeit the pension portion of the       852          

retirement allowance under division (C)(1)(b) of this section      853          

shall become a new member of the public employees retirement       854          

system with all the rights, privileges, and obligations of         855          

membership, except that the new membership does not include        856          

survivor benefits provided pursuant to section 145.45 of the       857          

Revised Code.  The pension portion of the PERS retirant's                       

retirement allowance shall cease on the first day of the first     858          

month following commencement of the employment and shall           859          

thereafter be forfeited until the first day of the first month     860          

following termination of the employment.  The annuity portion of   861          

the retirement allowance shall be suspended on the first day of    862          

the first month following commencement of the employment and       863          

shall thereafter accumulate to the credit of the PERS retirant to  864          

be paid in a single payment after termination of the employment.   865          

                                                          21     


                                                                 
The retirement allowance shall resume on the first day of the      866          

first month following termination of the employment.  On           867          

termination of the employment, the PERS retirant shall elect to    868          

receive either a refund of the retirant's contributions to the     870          

retirement system during the period of employment subject to this  871          

section or a supplemental retirement allowance based on the        872          

retirant's contributions and service credit for that period of     873          

employment.                                                                     

      (3)  Except as provided in division (B)(4) of this section,  875          

there shall be no suspension or forfeiture of any portion of the   876          

retirement allowance payable to other system retirants or to PERS  877          

retirants who make an election under division (C)(1)(a) of this    878          

section.                                                           879          

      (4)  A PERS retirant shall elect division (C)(1)(b) of this  882          

section if both of the following apply:                                         

      (a)  The retirant held elective office in this state, or in  884          

any municipal corporation, county, or other subdivision of this    885          

state at the time of retirement under Chapter 145. of the Revised  886          

Code;                                                                           

      (b)  The retirant was elected or appointed to the same       888          

office for the remainder of the term or the term immediately       889          

following the term during which the retirement occurred.           890          

      (D)(1)  On termination of employment under this section,     892          

the PERS retirant who makes an election under division (C)(1)(a)   893          

of this section or other system retirant may file an application   894          

with the public employees retirement system for a benefit under    895          

this division, which shall consist of a single life annuity        896          

having a reserve equal to the amount of the retirant's             897          

accumulated contributions for the period of employment and an      898          

equal amount of the employer's contributions.  The PERS retirant   899          

or other system retirant shall elect either to receive the         900          

benefit as a monthly annuity for life or a lump-sum payment        901          

discounted to the present value using the current actuarial        902          

assumption rate of interest, except that if the monthly annuity    903          

                                                          22     


                                                                 
would be less than twenty-five dollars per month, the retirant     904          

shall receive a lump-sum payment.                                  905          

      (2)  A benefit payable under this division shall commence    907          

on the latest of the following:                                    908          

      (a)  The last day for which compensation for employment      910          

subject to this section was paid;                                  911          

      (b)  Attainment by the PERS retirant or other system         913          

retirant of age sixty-five;                                        914          

      (c)  If the PERS retirant or other system retirant was       916          

previously employed under this section and is receiving or         917          

previously received a benefit under this division, completion of   918          

a period of twelve months since the effective date of the last     919          

benefit under this division.                                       920          

      (3)(a)  If a PERS retirant or other system retirant dies     922          

while employed in employment subject to this section, a lump-sum   923          

payment calculated in accordance with division (D)(1) of this      924          

section shall be paid to the retirant's beneficiary under          925          

division (G) of this section.                                      926          

      (b)  If at the time of death a PERS retirant or other        928          

system retirant receiving a monthly annuity has received less      929          

than the retirant would have received as a lump-sum payment, the   931          

difference between the amount received and the amount that would   932          

have been received as a lump-sum payment shall be paid to the      933          

retirant's beneficiary under division (G) of this section.         934          

      (4)(a)  A PERS retirant or other system retirant subject to  936          

this division is not a member of the public employees retirement   937          

system, does not have any of the rights, privileges, or            938          

obligations of membership, except as specified in this section,    939          

and, except as specified in division (D)(4)(b) of this section,    940          

is not eligible to receive health, medical, hospital, or surgical  941          

benefits under section 145.58 of the Revised Code for employment   942          

subject to this section.  No amount received under this division   943          

shall be included in determining an additional benefit under       944          

section 145.323 of the Revised Code or any other post-retirement   945          

                                                          23     


                                                                 
benefit increase.                                                  946          

      (b)  A PERS retirant who makes an election under division    948          

(C)(1)(a) of this section shall receive primary health, medical,   949          

hospital, or surgical insurance coverage from the retirant's       950          

employer, if the employer provides coverage to other employees     951          

performing comparable work.  Neither the employer nor the PERS     952          

retirant may waive the employer's coverage, except that the PERS   953          

retirant may waive the employer's coverage if the retirant has     954          

coverage comparable to that provided by the employer from a        955          

source other than the employer or the public employees retirement  956          

system.  If a claim is made, the employer's coverage shall be the  957          

primary coverage and shall pay first.  The benefits provided       958          

under section 145.58 of the Revised Code shall pay only those      959          

medical expenses not paid through the employer's coverage or       960          

coverage the PERS retirant receives through a source other than    961          

the retirement system.                                             962          

      (E)  If the disability benefit of an other system retirant   964          

employed under this section is terminated, the retirant shall      965          

become a member of the public employees retirement system,         966          

effective on the first day of the month next following the         967          

termination with all the rights, privileges, and obligations of    968          

membership.  If such person, after the termination of the          969          

disability benefit, earns two years of service credit under this   970          

system or under the Ohio police and fire pension fund, state       972          

teachers retirement system, school employees retirement system,    973          

or state highway patrol retirement system, the person's prior      974          

contributions as an other system retirant under this section       975          

shall be included in the person's total service credit as a        976          

public employees retirement system member, and the person shall    977          

forfeit all rights and benefits of this section.  Not more than    978          

one year of credit may be given for any period of twelve months.   979          

      (F)  A PERS retirant who performs services for a public      981          

employer as an independent contractor pursuant to a contract with  982          

the employer shall not make contributions to the public employees  983          

                                                          24     


                                                                 
retirement system or become a member of the system.  Except as     984          

provided in division (B)(6) of this section, there shall be no     985          

suspension or forfeiture of the retirant's retirement allowance.   986          

      (G)  A PERS retirant or other system retirant employed       988          

under this section may designate one or more persons as            989          

beneficiary to receive any benefits payable under this section     990          

due to death.  The designation shall be in writing duly executed   992          

on a form provided by the public employees retirement board,       993          

signed by the PERS retirant or other system retirant, and filed    994          

with the board prior to death.  The last designation of a          995          

beneficiary revokes all previous designations.  The PERS                        

retirant's or other system retirant's marriage, divorce, marriage  996          

dissolution, legal separation, withdrawal of account, birth of a   998          

child, or adoption of a child revokes all previous designations.   999          

If there is no designated beneficiary, the beneficiary is the      1,000        

beneficiary determined under division (D) of section 145.43 of     1,001        

the Revised Code.  If any benefit payable under this section due   1,002        

to the death of a PERS retirant or other system retirant is not    1,003        

claimed by a beneficiary within five years after the death, the    1,004        

amount payable shall be transferred to the income fund and         1,005        

thereafter paid to the beneficiary or the estate of the PERS       1,006        

retirant or other system retirant on application to the board.                  

      (H)  This section does not affect the receipt of benefits    1,008        

by or eligibility for benefits of any person who on August 20,     1,009        

1976, was receiving a disability benefit or service retirement     1,010        

pension or allowance from a state or municipal retirement system   1,011        

in Ohio and was a member of any other state or municipal           1,012        

retirement system of this state.                                   1,013        

      (I)  The public employees retirement board may adopt rules   1,015        

to carry out this section.                                         1,016        

      Sec. 145.45.  Except as provided in division (C)(1) of this  1,026        

section, in lieu of accepting the payment of the accumulated       1,027        

account of a member who dies before service retirement, a          1,028        

beneficiary, as determined in this section or section 145.43 of    1,029        

                                                          25     


                                                                 
the Revised Code, may elect to forfeit the accumulated             1,030        

contributions and to substitute certain other benefits under       1,031        

division (A) or (B) of this section.                                            

      (A)  If a deceased member was eligible for a service         1,033        

retirement benefit as provided in section 145.33, 145.331, or      1,034        

145.34 of the Revised Code, a surviving spouse or other sole       1,035        

dependent beneficiary may elect to receive a monthly benefit       1,037        

computed as the joint-survivor benefit designated as "plan D" in   1,038        

section 145.46 of the Revised Code, which the member would have    1,039        

received had the member retired on the last day of the month of    1,040        

death and had the member at that time selected such                1,042        

joint-survivor plan.  Payment shall begin with the month           1,044        

subsequent to the member's death, except that a surviving spouse   1,045        

who is less than sixty-five years old may defer receipt of such    1,046        

benefit.  Upon receipt, the benefit shall be calculated based      1,047        

upon the spouse's age at the time of first payment, and shall      1,048        

accrue regular interest during the time of deferral.               1,049        

      (B)  If a deceased member had at least one and one-half      1,051        

years of contributing service credit, with at least one-quarter    1,052        

year of contributing service credit within the two and one-half    1,053        

years prior to the date of death, or was receiving at the time of  1,054        

death a disability benefit as provided in section 145.36,          1,055        

145.361, or 145.37 of the Revised Code, certain qualified          1,056        

survivors may elect to receive monthly benefits as provided in     1,059        

divisions (B)(1) and (5) of this section.                                       

      (1)  Number                                                  1,061        

      of Qualified                                     Or          1,062        

      survivors        Annual Benefit as a Per   Monthly Benefit   1,063        

      affecting        Cent of Decedent's Final  shall not be      1,064        

      the benefit      Average Salary            less than         1,065        

          1                 25%                     $ 96           1,066        

          2                 40                       186           1,067        

          3                 50                       236           1,068        

          4                 55                       236           1,069        

                                                          26     


                                                                 
          5 or more         60                       236           1,070        

      (2)  Benefits shall begin as qualified survivors meet        1,073        

eligibility requirements as follows:                               1,074        

      (a)  A qualified spouse is the surviving spouse of the       1,076        

deceased member, who is age sixty-two, or age fifty if the         1,079        

deceased member had ten or more years of Ohio service credit, or   1,080        

regardless of age if caring for a qualified child, or regardless   1,081        

of age if adjudged physically or mentally incompetent.  A spouse   1,083        

of a member who died prior to August 27, 1970, whose eligibility   1,084        

was determined at the member's death, and who is physically or     1,085        

mentally incompetent on or after August 20, 1976, shall be paid    1,086        

the monthly benefit which that person would otherwise receive      1,087        

when qualified by age.                                                          

      (b)  A qualified child is any unmarried child of the         1,091        

deceased member under age eighteen, or under age twenty-two if     1,092        

the child is attending an institution of learning or training      1,093        

pursuant to a program designed to complete in each school year     1,094        

the equivalent of at least two-thirds of the full-time curriculum  1,095        

requirements of such institution and as further determined by      1,096        

board policy, or regardless of age if adjudged physically or       1,097        

mentally incompetent at the time of the member's death.            1,098        

      (c)  A qualified parent is a dependent parent aged           1,100        

sixty-five or older or regardless of age if physically or          1,102        

mentally incompetent, a dependent parent whose eligibility was     1,103        

determined by the member's death prior to August 20, 1976, and     1,104        

who is physically or mentally incompetent on or after August 20,   1,105        

1976, shall be paid the monthly benefit for which that person      1,106        

would otherwise qualify.                                                        

      (3)  "Physically or mentally incompetent" as used in this    1,108        

section may be determined by a court of jurisdiction, or by a      1,109        

physician appointed by the retirement board.  Incapability of      1,110        

making a living because of a physically or mentally disabling      1,111        

condition shall meet the qualifications of this division.          1,112        

      (4)  Benefits to a qualified survivor shall terminate upon   1,115        

                                                          27     


                                                                 
ceasing to meet eligibility requirements as provided in this       1,116        

division, a first marriage, abandonment, adoption, or during       1,118        

active military service.  Benefits to a deceased member's          1,119        

surviving spouse that were terminated under a former version of    1,120        

this section that required termination due to remarriage and were  1,121        

not resumed prior to the effective date of this amendment          1,122        

SEPTEMBER 16, 1998, shall resume on the first day of the month     1,123        

immediately following receipt by the board of an application on a  1,124        

form provided by the board.                                        1,125        

      Upon the death of any subsequent spouse who was a member of  1,128        

the public employees retirement system, state teachers retirement  1,129        

system, or school employees retirement system, the surviving       1,130        

spouse of such member may elect to continue receiving benefits     1,131        

under this division, or to receive survivor's benefits, based      1,132        

upon the subsequent spouse's membership in one or more of the      1,133        

systems, for which such surviving spouse is eligible under this    1,134        

section or section 3307.49 3307.66 or 3309.45 of the Revised       1,135        

Code.  If the surviving spouse elects to continue receiving        1,137        

benefits under this division, such election shall not preclude     1,138        

the payment of benefits under this division to any other           1,139        

qualified survivor.                                                             

      Benefits shall begin or resume on the first day of the       1,141        

month following the attainment of eligibility and shall terminate  1,142        

on the first day of the month following loss of eligibility.       1,143        

      (5)  Benefits to a qualified spouse shall be paid in the     1,145        

amount determined for the first qualifying survivor in division    1,147        

(B)(1) of this section, but shall not be less than one hundred     1,148        

six dollars per month if the deceased member had ten or more       1,149        

years of Ohio service credit.  All other qualifying survivors      1,151        

shall share equally in the benefit or remaining portion thereof.   1,152        

      (6)  The beneficiary of a member who is also a member of     1,154        

the state teachers retirement system or of the school employees    1,155        

retirement system, must forfeit the member's accumulated           1,156        

contributions in those systems and in the public employees         1,157        

                                                          28     


                                                                 
retirement system, if the beneficiary takes a survivor benefit.    1,160        

Such benefit shall be exclusively governed by section 145.37 of                 

the Revised Code.                                                  1,161        

      (C)(1)  Regardless of whether the member is survived by a    1,165        

spouse or designated beneficiary, if the public employees                       

retirement system receives notice that a deceased member           1,166        

described in division (A) or (B) of this section has one or more   1,167        

qualified children, all persons who are qualified survivors under  1,169        

division (B) of this section shall receive monthly benefits as     1,171        

provided in division (B) of this section.                          1,172        

      If, after determining the monthly benefits to be paid under  1,174        

division (B) of this section, the system receives notice that      1,175        

there is a qualified survivor who was not considered when the      1,176        

determination was made, the system shall, notwithstanding section  1,177        

145.561 of the Revised Code, recalculate the monthly benefits      1,179        

with that qualified survivor included, even if the benefits to     1,180        

qualified survivors already receiving benefits are reduced as a    1,181        

result.  The benefits shall be calculated as if the qualified      1,182        

survivor who is the subject of the notice became eligible on the                

date the notice was received and shall be paid to qualified        1,183        

survivors effective on the first day of the first month following  1,184        

the system's receipt of the notice.                                1,185        

      If the retirement system did not receive notice that a       1,187        

deceased member has one or more qualified children prior to        1,189        

making payment under section 145.43 of the Revised Code to a       1,192        

beneficiary as determined by the retirement system, the payment    1,193        

is a full discharge and release of the system from any future      1,194        

claims under this section or section 145.43 of the Revised Code.   1,195        

      (2)  If benefits under division (C)(1) of this section to    1,198        

all persons, or to all persons other than a surviving spouse or    1,200        

other sole beneficiary, terminate, there are no children under                  

the age of twenty-two years, and the surviving spouse or           1,201        

beneficiary qualifies for benefits under division (A) of this      1,203        

section, the surviving spouse or beneficiary may elect to receive  1,204        

                                                          29     


                                                                 
benefits under division (A) of this section.  The benefits shall   1,205        

be effective on the first day of the month immediately following   1,206        

the termination.                                                                

      (D)  If the survivor benefits due and paid under this        1,208        

section are in a total amount less than the member's accumulated   1,209        

account that was transferred from the public employees' savings    1,210        

fund to the survivors' benefit fund, then the difference between   1,211        

the total amount of the benefits paid shall be paid to the         1,212        

beneficiary under section 145.43 of the Revised Code.              1,213        

      Sec. 742.26.  (A)  As used in this section:                  1,222        

      (1)  "Actuarial present value" means the calculation under   1,224        

which the probability of occurrence, based on a specified          1,225        

mortality table, and the discount for future monetary growth at a  1,226        

specified interest rate are considered by an actuary to determine  1,227        

the value of an annuity.                                           1,228        

      (2)  "Other system retirant" means a former member of the    1,230        

public employees retirement system, state teachers retirement      1,231        

system, school employees retirement system, state highway patrol   1,232        

retirement system, or Cincinnati retirement system who is          1,233        

receiving a disability benefit or an age and service or commuted   1,234        

age and service retirement benefit or allowance from a system of   1,235        

which the person is a former member.                               1,236        

      (3)  "OPFPF retirant" means any person who is receiving a    1,239        

retirement allowance, other than a disability benefit, from the    1,240        

Ohio police and fire pension fund.                                 1,241        

      (B)  The mortality table and interest rate used in           1,243        

determining actuarial present value shall be determined by the     1,244        

board of trustees of the fund based on the recommendations of an   1,245        

actuary employed by the board.                                     1,246        

      (C)(1)  An OPFPF retirant or other system retirant may be    1,249        

employed as a member of a police or fire department.  If so        1,250        

employed, the retirant shall make contributions to the fund in     1,252        

accordance with section 742.31 of the Revised Code, and the        1,253        

employer shall make contributions in accordance with sections      1,254        

                                                          30     


                                                                 
742.33 and 742.34 of the Revised Code.                             1,255        

      (2)  An employer that employs An OPFPF retirant or other     1,258        

system retirant shall notify the board of trustees of the fund of  1,259        

the employment not later than the end of the month in which the    1,260        

employment commences.  On receipt of notice from an employer that  1,261        

a person who is an other system retirant has been employed, the    1,262        

fund shall notify the retirement system of which the other system  1,263        

retirant was a member of such employment.                          1,264        

      (D)  An OPFPF retirant or other system retirant who has      1,267        

received a retirement allowance or benefit for less than two       1,268        

months when employment subject to this section commences shall     1,269        

forfeit the retirement allowance or benefit for the period that    1,271        

begins on the date the employment commences and ends on the date                

that is two months after the date on which the retirement          1,272        

allowance or benefit commenced.  Service and contributions for     1,273        

that period shall not be included in the calculation of any        1,274        

benefits payable under this section, and those contributions       1,275        

shall be refunded on the retirant's death or termination of the    1,277        

employment.                                                                     

      (E)  On receipt of notice from the public employees          1,279        

retirement system, school employees retirement system, or state    1,280        

teachers retirement system of the re-employment of an OPFPF        1,282        

retirant, the Ohio police and fire pension fund shall not pay, or  1,284        

if paid shall recover, the amount to be forfeited by the OPFPF     1,285        

retirant in accordance with section 145.38, 3307.381 3307.35, or   1,287        

3309.341 of the Revised Code.                                                   

      (F)(1)(a)  On termination of employment under this section,  1,289        

an OPFPF retirant or other system retirant shall elect one of the  1,291        

following:                                                         1,292        

      (i)  A monthly annuity the actuarial present value of which  1,294        

is equal to two times the sum of all amounts deducted from the     1,295        

salary of the OPFPF retirant or other system retirant and          1,297        

credited to the retirant's individual account in the fund,         1,298        

together with interest credited thereon at the rate determined by  1,300        

                                                          31     


                                                                 
the board, provided the annuity equals or exceeds twenty-five      1,301        

dollars per month.                                                 1,302        

      (ii)  A lump-sum payment equal to two times the sum of all   1,304        

amounts deducted from the salary of the OPFPF retirant or other    1,306        

system retirant and credited to the retirant's individual account  1,308        

in the fund, together with interest credited thereon at the rate   1,309        

determined by the board.                                           1,310        

      (b)  Interest shall be credited to accounts only at the      1,312        

time of calculation of a benefit payable under division (F)(1) of  1,313        

this section.                                                      1,314        

      (2)  A benefit payable under this division shall commence    1,316        

on the first day of the month immediately after the latest of the  1,317        

following:                                                         1,318        

      (a)  The last day for which compensation for employment      1,320        

subject to this section was paid;                                  1,321        

      (b)  Attainment by the OPFPF retirant or other system        1,324        

retirant of age sixty;                                             1,325        

      (c)  If the OPFPF retirant or other system retirant was      1,328        

previously employed under this section and is receiving or         1,329        

previously received a benefit under this division, completion of   1,330        

a period of twelve months since the last benefit paid under this   1,331        

section commenced.                                                 1,332        

      (3)  No amount received under this division shall be         1,334        

included in determining an additional benefit under section        1,335        

742.3711, 742.3716, or 742.3717 of the Revised Code or any other   1,336        

post-retirement benefit increase.                                  1,337        

      (G)(1)  If an OPFPF retirant or other system retirant dies   1,340        

while employed in employment subject to this section, a lump-sum   1,341        

payment calculated in accordance with division (F)(1)(a)(ii) of    1,342        

this section shall be paid to the retirant's surviving spouse, or  1,344        

if there is no surviving spouse, to the retirant's estate.         1,345        

      (2)  If at the time of death an OPFPF retirant or other      1,348        

system retirant receiving a monthly annuity under division         1,349        

(F)(1)(a)(i) of this section has received less than would have     1,350        

                                                          32     


                                                                 
been received as a lump-sum payment under division (F)(1)(a)(ii)   1,351        

of this section, the difference between the amount received and    1,353        

the amount that would have been received as a lump-sum payment     1,356        

shall be paid to the retirant's surviving spouse, or if there is   1,357        

no surviving spouse, to the retirant's estate.                                  

      (H)  An other system retirant subject to this section is     1,359        

not a member of the Ohio police and fire pension fund, does not    1,361        

have any of the rights, privileges, or obligations of membership,  1,362        

except as specified in this section, and is not eligible to        1,363        

receive health, medical, hospital, or surgical benefits under      1,364        

section 742.45 of the Revised Code for employment subject to this  1,365        

section.                                                                        

      (I)  If any payment is made by the Ohio police and fire      1,368        

pension fund to an OPFPF retirant or other system retirant to      1,370        

which the retirant is not entitled, the retirant shall repay it    1,372        

to the fund.  If the retirant fails to make the repayment, the     1,373        

fund shall withhold the amount due from any allowances or other    1,374        

amounts due the OPFPF retirant or other system retirant.           1,375        

      (J)  An OPFPF retirant who is employed under this section    1,379        

is not eligible to receive any benefits under section 742.37 of    1,380        

the Revised Code for the employment under this section.            1,381        

      (K)  This section does not affect the receipt of benefits    1,383        

by or eligibility for benefits of any person who on August 20,     1,384        

1976, was receiving a disability benefit or service retirement     1,385        

pension or allowance from a state or municipal retirement system   1,386        

in Ohio and was a member of any other state or municipal           1,387        

retirement system of this state.                                   1,388        

      (L)  The board of trustees of the fund may adopt rules to    1,390        

carry out this section.                                            1,391        

      Sec. 742.379.  (A)  As used in this section:                 1,400        

      (1)  "Full-time service" has the meaning established by      1,402        

rule of the board of trustees of the Ohio police and fire pension  1,404        

fund.                                                                           

      (2)  "Qualified contributions" means contributions to the    1,406        

                                                          33     


                                                                 
public employees retirement system, school employees retirement    1,407        

system, or state teachers retirement system attributable to        1,408        

full-time service or purchase of credit for service in the armed   1,409        

forces of the United States.                                       1,410        

      (B)  In computing the pension and benefits payable under     1,412        

section 742.37 or 742.39 of the Revised Code, the Ohio police and  1,414        

fire pension fund shall give a member of the fund who is in the    1,415        

active service of a police or fire department and is not           1,416        

receiving a pension or benefit payment from the fund full credit   1,417        

for service credit earned for full-time service as a member of     1,418        

the Cincinnati retirement system or purchased from the retirement  1,419        

system for service in the armed forces of the United States if,    1,421        

for each year of service credit, the fund receives the sum of the  1,423        

following:                                                                      

      (1)  An amount, which shall be paid by the member, equal to  1,425        

the amount withdrawn by the member from the retirement system      1,427        

that is attributable to the year of service credit, with interest  1,428        

on that amount from the date of withdrawal to the date of          1,430        

payment;                                                                        

      (2)  Interest, which shall be paid either by the member or   1,433        

the retirement system, on the amount withdrawn by the member from  1,434        

the retirement system that is attributable to the year of service               

from the last day of the year for which the service credit was     1,436        

earned or in which military service credit was purchased or        1,437        

obtained to the date the withdrawal was made;                      1,438        

      (3)  An amount, which shall be paid by either the member or  1,441        

the retirement system, equal to the lesser of the amount                        

contributed by the employer to the retirement system for the year  1,443        

of service or the amount that would have been contributed by the   1,444        

employer for the year of service had the member been employed by                

the member's current employer as a member of a police or fire      1,446        

department, with interest on that amount from the last day of the  1,447        

year for which the service credit was earned or in which military  1,448        

service was purchased or obtained to the date the payment is       1,449        

                                                          34     


                                                                 
made;                                                                           

      (4)  If the member became a member of the fund on or after   1,451        

September 16, 1998, the amount, which shall be paid by the         1,454        

member, determined pursuant to division (I) of this section.       1,455        

      Interest shall be determined in accordance with division     1,457        

(H) of this section.                                               1,458        

      (C)  In computing the pension and benefits payable under     1,461        

section 742.37 or 742.39 of the Revised Code, the fund shall give  1,462        

a member of the fund who is in the active service of a police or   1,464        

fire department, is not receiving a pension or benefit payment     1,465        

from the fund, and has withdrawn the member's contributions from   1,466        

the public employees retirement system, school employees           1,467        

retirement system, or state teachers retirement system full        1,468        

credit for service credit earned for full-time service as a        1,469        

member of the public employees retirement system, school           1,470        

employees retirement system, or state teachers retirement system   1,471        

or purchased from one of those retirement systems for service in   1,472        

the armed forces of the United States if, for each year of         1,473        

service, the fund receives the sum of the following:               1,475        

      (1)  An amount, which shall be paid by the member, equal to  1,478        

the amount withdrawn by the member from the former retirement      1,480        

system that is attributable to that year of service credit, with   1,482        

interest on that amount from the date of withdrawal to the date    1,483        

of payment;                                                                     

      (2)  Interest, which shall be transferred by the former      1,486        

retirement system, on the amount withdrawn by the member from the  1,487        

retirement system that is attributable to the year of service                   

from the last day of the year for which the service credit was     1,488        

earned or in which military service credit was purchased or        1,489        

obtained to the date the withdrawal was made;                      1,490        

      (3)  An amount, which shall be transferred by the former     1,493        

retirement system, equal to the lesser of the amount contributed   1,494        

by the employer to the retirement system for the year of service   1,495        

or the amount that would have been contributed by the employer     1,496        

                                                          35     


                                                                 
for the year of service had the member been employed by the        1,497        

member's current employer as a member of a police or fire          1,498        

department, with interest on the amount transferred from the last  1,499        

day of the year for which the service credit was earned or in      1,500        

which military service credit was purchased or obtained to the     1,502        

date the transfer is made;                                                      

      (4)  If the member became a member of the fund on or after   1,505        

September 16, 1998, the amount, which shall be paid by the         1,507        

member, determined pursuant to division (I) of this section.       1,508        

      On receipt of payment from the member, the fund shall        1,510        

notify the former retirement system, and on receipt of the         1,511        

notice, the retirement system shall make the transfer.  Interest   1,512        

shall be determined in accordance with division (H) of this        1,514        

section.                                                                        

      (D)  In computing the pension and benefits payable under     1,516        

section 742.37 or 742.39 of the Revised Code, the fund shall give  1,518        

a member of the fund who is in the active service of a police or   1,519        

fire department, is not receiving a pension or benefit from the    1,520        

fund, and has contributions on deposit with the public employees   1,521        

retirement system, school employees retirement system, or state    1,522        

teachers retirement system full credit for service credit earned   1,523        

for full-time service as a member of one of those retirement       1,524        

systems or purchased from one of the retirement systems for        1,525        

service in the armed forces of the United States if both of the    1,527        

following occur:                                                   1,528        

      (1)  The retirement system transfers to the fund, for each   1,531        

year of service, the sum of the following:                         1,532        

      (a)  An amount equal to the member's qualified               1,535        

contributions;                                                                  

      (b)  An amount equal to the lesser of the employer's         1,538        

qualified contributions to the retirement system or the amount     1,539        

that would have been contributed by the employer for the           1,540        

full-time service had the member been employed by the member's     1,541        

current employer as a member of a police or fire department;       1,542        

                                                          36     


                                                                 
      (c)  Interest on the amounts specified in divisions          1,544        

(D)(1)(a) and (b) of this section from the last day of the year    1,546        

for which the service credit was earned or in which military       1,547        

service credit was purchased or obtained to the date the transfer  1,548        

is made.                                                           1,549        

      (2)  If the member became a member of the fund on or after   1,552        

September 16, 1998, the member pays the amount determined          1,554        

pursuant to division (I) of this section.                          1,555        

      On receipt of a request from the member, the appropriate     1,558        

retirement system shall make the transfer specified in division    1,559        

(D)(1) of this section.  Interest shall be determined in           1,560        

accordance with division (H) of this section.                      1,561        

      (E)  Subject to board rules, a member of the fund may        1,563        

choose to purchase in any one payment only part of the credit the  1,564        

member is eligible to purchase under division (B) or (C)(1) of     1,566        

this section.                                                      1,567        

      (F)  At the request of the fund, the public employees        1,569        

retirement system, school employees retirement system, state       1,570        

teachers retirement system, or Cincinnati retirement system shall  1,571        

certify to the fund a copy of the records of the service and       1,573        

contributions of a member of the fund who seeks service credit     1,574        

under this section.                                                1,575        

      (G)  A member of the fund is ineligible to receive credit    1,578        

under this section for service that is used in the calculation of  1,579        

any retirement benefit currently being paid or payable in the      1,580        

future to the member, or service rendered concurrently with any    1,581        

other period for which service credit has already been granted.    1,582        

      (H)  Interest charged under this section shall be            1,585        

calculated separately for each year of service credit at the       1,586        

lesser of the actuarial assumption rate for that year of the fund  1,587        

or of the retirement system in which the credit was earned.  The   1,588        

interest shall be compounded annually.                             1,589        

      The board may, by rule, establish procedures for the         1,591        

receipt of service credit under this section.                      1,592        

                                                          37     


                                                                 
      (I)  The amount to be paid pursuant to division (B)(4),      1,595        

(C)(4), or (D)(2) of this section is the sum of the following:     1,596        

      (1)  An amount equal to the difference between the amount    1,599        

the member paid as employee contributions for the service and the  1,600        

amount the member would have paid had the member been employed by  1,601        

the member's current employer as a member of a police or fire      1,602        

department;                                                                     

      (2)  An amount equal to the difference between the amount    1,605        

paid or transferred under division (B)(3), (C)(3), or (D)(1)(b)    1,606        

of this section and the amount that would have been contributed    1,607        

by the employer for the service had the member been employed by    1,608        

the member's current employer as a member of a police or fire      1,610        

department;                                                                     

      (3)  Interest, determined in accordance with division (H)    1,613        

of this section, on the amounts specified in divisions (I)(1) and  1,615        

(2) of this section.                                                            

      At the request of a member, in lieu of requiring payment of  1,618        

all or part of the amount determined under this division the fund  1,619        

may grant the member an amount of service credit under division    1,620        

(B), (C), or (D) of this section that is less than the amount for  1,622        

which the member is eligible.  The service credit granted shall    1,623        

be the same percentage of the service credit for which the member  1,624        

is eligible that the amount the fund receives under division (B),  1,625        

(C), or (D) of this section is of the total amount it would        1,627        

receive under those divisions if the full amount determined under  1,628        

this division was paid.                                                         

      (J)(1)  Except as provided in division (J)(2) of this        1,631        

section and notwithstanding any contrary provision of this                      

section, the board shall, in computing a pension or benefit under  1,633        

section 742.37 or 742.39 of the Revised Code, give a member of     1,634        

the fund who is not receiving a pension or disability benefit      1,635        

from the fund full credit for service credit purchased under this  1,636        

section for service that was less than full-time service if the    1,637        

member provides evidence satisfactory to the board that, after     1,638        

                                                          38     


                                                                 
receiving written notice from the fund indicating that the member  1,640        

would be permitted to purchase service credit for service that                  

was less than full-time, the member changed or ceased the          1,641        

member's employment with the understanding that the credit         1,642        

identified in the notice would be used in computing a pension or   1,643        

benefit.  If the board has canceled service credit purchased       1,645        

under this section for service that was less than full-time        1,646        

service and the member meets the requirements of division (J)(1)   1,647        

of this section, the board shall restore the service credit on     1,648        

repayment to the fund of the amount refunded to the member at the  1,650        

time of cancellation.                                                           

      (2)  If a member of the fund who is not receiving a pension  1,653        

or disability benefit from the fund purchased credit under this    1,654        

section for service that was less than full-time service and does  1,655        

not meet the requirements of division (J)(1) of this section, the  1,656        

board shall refund to the member any amounts paid to purchase the  1,658        

credit, with interest at a rate determined by the board from the   1,659        

date the member purchased the credit to the date of the refund.    1,660        

      (K)  A member of the fund who has purchased service credit   1,662        

under this section, or the member's estate, is entitled to a       1,663        

refund of the amount or portion of the amount paid to purchase     1,664        

the credit if the purchased credit or portion of credit does not   1,665        

increase a pension or benefit payable under section 742.37 or      1,666        

742.39 of the Revised Code.  The refund cancels an equivalent      1,667        

amount of service credit.                                          1,668        

      (L)  If a member or former member of the fund who is not a   1,670        

current contributor and has not received a refund of accumulated   1,672        

contributions elects to receive credit under section 145.295,      1,673        

3307.412 3307.761, or 3309.351 of the Revised Code for service     1,674        

for which the member contributed to the fund or purchased credit   1,675        

for service in the armed forces of the United States, the fund     1,676        

shall transfer to the public employees retirement system, school   1,678        

employees retirement system, or state teachers retirement system   1,679        

the amount specified in division (A) of section 145.295 of the     1,680        

                                                          39     


                                                                 
Revised Code, division (A) of section 3307.412 3307.761 of the     1,681        

Revised Code, or division (A) of section 3309.351 of the Revised   1,683        

Code.                                                                           

      (M)  The board shall adopt rules establishing a payroll      1,686        

deduction plan for the purchase of service credit under this       1,687        

section.  The rules shall meet the requirements described in                    

section 742.56 of the Revised Code.                                1,689        

      Sec. 2329.66.  (A)  Every person who is domiciled in this    1,698        

state may hold property exempt from execution, garnishment,        1,699        

attachment, or sale to satisfy a judgment or order, as follows:    1,700        

      (1)(a)  In the case of a judgment or order regarding money   1,702        

owed for health care services rendered or health care supplies     1,703        

provided to the person or a dependent of the person, one parcel    1,704        

or item of real or personal property that the person or a          1,705        

dependent of the person uses as a residence.  Division (A)(1)(a)   1,706        

of this section does not preclude, affect, or invalidate the       1,707        

creation under this chapter of a judgment lien upon the exempted   1,708        

property but only delays the enforcement of the lien until the     1,709        

property is sold or otherwise transferred by the owner or in       1,710        

accordance with other applicable laws to a person or entity other  1,711        

than the surviving spouse or surviving minor children of the       1,712        

judgment debtor.  Every person who is domiciled in this state may  1,713        

hold exempt from a judgment lien created pursuant to division      1,714        

(A)(1)(a) of this section the person's interest, not to exceed     1,715        

five thousand dollars, in the exempted property.                   1,716        

      (b)  In the case of all other judgments and orders, the      1,718        

person's interest, not to exceed five thousand dollars, in one     1,719        

parcel or item of real or personal property that the person or a   1,720        

dependent of the person uses as a residence.                       1,721        

      (2)  The person's interest, not to exceed one thousand       1,723        

dollars, in one motor vehicle;                                     1,724        

      (3)  The person's interest, not to exceed two hundred        1,726        

dollars in any particular item, in wearing apparel, beds, and      1,727        

bedding, and the person's interest, not to exceed three hundred    1,728        

                                                          40     


                                                                 
dollars in each item, in one cooking unit and one refrigerator or  1,729        

other food preservation unit;                                      1,730        

      (4)(a)  The person's interest, not to exceed four hundred    1,732        

dollars, in cash on hand, money due and payable, money to become   1,733        

due within ninety days, tax refunds, and money on deposit with a   1,734        

bank, savings and loan association, credit union, public utility,  1,735        

landlord, or other person.  Division (A)(4)(a) of this section     1,736        

applies only in bankruptcy proceedings.  This exemption may        1,737        

include the portion of personal earnings that is not exempt under  1,738        

division (A)(13) of this section.                                  1,739        

      (b)  Subject to division (A)(4)(d) of this section, the      1,741        

person's interest, not to exceed two hundred dollars in any        1,742        

particular item, in household furnishings, household goods,        1,743        

appliances, books, animals, crops, musical instruments, firearms,  1,744        

and hunting and fishing equipment, that are held primarily for     1,745        

the personal, family, or household use of the person;              1,746        

      (c)  Subject to division (A)(4)(d) of this section, the      1,748        

person's interest in one or more items of jewelry, not to exceed   1,749        

four hundred dollars in one item of jewelry and not to exceed two  1,750        

hundred dollars in every other item of jewelry;                    1,751        

      (d)  Divisions (A)(4)(b) and (c) of this section do not      1,753        

include items of personal property listed in division (A)(3) of    1,754        

this section.                                                      1,755        

      If the person does not claim an exemption under division     1,757        

(A)(1) of this section, the total exemption claimed under          1,758        

division (A)(4)(b) of this section shall be added to the total     1,759        

exemption claimed under division (A)(4)(c) of this section, and    1,760        

the total shall not exceed two thousand dollars.  If the person    1,761        

claims an exemption under division (A)(1) of this section, the     1,762        

total exemption claimed under division (A)(4)(b) of this section   1,763        

shall be added to the total exemption claimed under division       1,764        

(A)(4)(c) of this section, and the total shall not exceed one      1,765        

thousand five hundred dollars.                                     1,766        

      (5)  The person's interest, not to exceed an aggregate of    1,768        

                                                          41     


                                                                 
seven hundred fifty dollars, in all implements, professional       1,769        

books, or tools of the person's profession, trade, or business,    1,770        

including agriculture;                                             1,772        

      (6)(a)  The person's interest in a beneficiary fund set      1,774        

apart, appropriated, or paid by a benevolent association or        1,775        

society, as exempted by section 2329.63 of the Revised Code;       1,776        

      (b)  The person's interest in contracts of life or           1,778        

endowment insurance or annuities, as exempted by section 3911.10   1,779        

of the Revised Code;                                               1,780        

      (c)  The person's interest in a policy of group insurance    1,782        

or the proceeds of a policy of group insurance, as exempted by     1,783        

section 3917.05 of the Revised Code;                               1,784        

      (d)  The person's interest in money, benefits, charity,      1,786        

relief, or aid to be paid, provided, or rendered by a fraternal    1,787        

benefit society, as exempted by section 3921.18 of the Revised     1,788        

Code;                                                              1,789        

      (e)  The person's interest in the portion of benefits under  1,791        

policies of sickness and accident insurance and in lump-sum        1,792        

payments for dismemberment and other losses insured under those    1,793        

policies, as exempted by section 3923.19 of the Revised Code.      1,794        

      (7)  The person's professionally prescribed or medically     1,796        

necessary health aids;                                             1,797        

      (8)  The person's interest in a burial lot, including, but   1,799        

not limited to, exemptions under section 517.09 or 1721.07 of the  1,800        

Revised Code;                                                      1,801        

      (9)  The person's interest in the following:                 1,803        

      (a)  Moneys paid or payable for living maintenance or        1,805        

rights, as exempted by section 3304.19 of the Revised Code;        1,806        

      (b)  Workers' compensation, as exempted by section 4123.67   1,809        

of the Revised Code;                                               1,810        

      (c)  Unemployment compensation benefits, as exempted by      1,812        

section 4141.32 of the Revised Code;                               1,813        

      (d)  Cash assistance payments under the Ohio works first     1,815        

program, as exempted by section 5107.75 of the Revised Code;       1,817        

                                                          42     


                                                                 
      (e)  Disability assistance payments, as exempted by section  1,819        

5115.07 of the Revised Code.                                       1,820        

      (10)(a)  Except in cases in which the person was convicted   1,822        

of or pleaded guilty to a violation of section 2921.41 of the      1,823        

Revised Code and in which an order for the withholding of          1,824        

restitution from payments was issued under division (C)(2)(b) of   1,825        

that section or in cases in which an order for withholding was     1,826        

issued under section 2907.15 of the Revised Code, and only to the  1,827        

extent provided in the order, and except as provided in sections   1,831        

3105.171, 3105.63, 3111.23, and 3113.21 of the Revised Code, the   1,833        

person's right to a pension, benefit, annuity, retirement          1,834        

allowance, or accumulated contributions, the person's right to a   1,835        

participant account in any deferred compensation program offered   1,836        

by the Ohio public employees deferred compensation board, a        1,837        

government unit, or a municipal corporation, or the person's       1,838        

other accrued or accruing rights, as exempted by section 145.56,   1,839        

145.75, 146.13, 742.47, 3307.71 3307.41, 3309.66, or 5505.22 of    1,840        

the Revised Code, and the person's right to benefits from the      1,842        

Ohio public safety officers death benefit fund;                    1,844        

      (b)  Except as provided in sections 3111.23 and 3113.21 of   1,847        

the Revised Code, the person's right to receive a payment under    1,848        

any pension, annuity, or similar plan or contract, not including   1,849        

a payment from a stock bonus or profit-sharing plan or a payment   1,850        

included in division (A)(6)(b) or (10)(a) of this section, on      1,851        

account of illness, disability, death, age, or length of service,  1,852        

to the extent reasonably necessary for the support of the person   1,853        

and any of the person's dependents, except if all the following    1,854        

apply:                                                             1,855        

      (i)  The plan or contract was established by or under the    1,857        

auspices of an insider that employed the person at the time the    1,858        

person's rights under the plan or contract arose.                  1,859        

      (ii)  The payment is on account of age or length of          1,861        

service.                                                           1,862        

      (iii)  The plan or contract is not qualified under the       1,864        

                                                          43     


                                                                 
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C. 1, as   1,865        

amended.                                                           1,866        

      (c)  Except for any portion of the assets that were          1,868        

deposited for the purpose of evading the payment of any debt and   1,869        

except as provided in sections 3111.23 and 3113.21 of the Revised  1,871        

Code, the person's right in the assets held in, or to receive any  1,873        

payment under, any individual retirement account, individual       1,874        

retirement annuity, "Roth IRA," or education individual            1,875        

retirement account that provides benefits by reason of illness,    1,877        

disability, death, or age, to the extent that the assets,          1,878        

payments, or benefits described in division (A)(10)(c) of this     1,879        

section are attributable to any of the following:                  1,880        

      (i)  Contributions of the person that were less than or      1,883        

equal to the applicable limits on deductible contributions to an   1,884        

individual retirement account or individual retirement annuity in  1,885        

the year that the contributions were made, whether or not the      1,886        

person was eligible to deduct the contributions on the person's    1,887        

federal tax return for the year in which the contributions were    1,888        

made;                                                                           

      (ii)  Contributions of the person that were less than or     1,891        

equal to the applicable limits on contributions to a Roth IRA or   1,892        

education individual retirement account in the year that the       1,893        

contributions were made;                                                        

      (iii)  Contributions of the person that are within the       1,896        

applicable limits on rollover contributions under subsections      1,897        

219, 402(c), 403(a)(4), 403(b)(8), 408(b), 408(d)(3),              1,898        

408A(c)(3)(B), 408A(d)(3), and 530(d)(5) of the "Internal Revenue  1,901        

Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended.          1,903        

      (d)  Except for any portion of the assets that were          1,906        

deposited for the purpose of evading the payment of any debt and   1,907        

except as provided in sections 3111.23 and 3113.21 of the Revised  1,908        

Code, the person's right in the assets held in, or to receive any  1,909        

payment under, any Keogh or "H.R. 10" plan that provides benefits  1,910        

by reason of illness, disability, death, or age, to the extent     1,911        

                                                          44     


                                                                 
reasonably necessary for the support of the person and any of the  1,912        

person's dependents.                                               1,913        

      (11)  The person's right to receive spousal support, child   1,915        

support, an allowance, or other maintenance to the extent          1,916        

reasonably necessary for the support of the person and any of the  1,917        

person's dependents;                                               1,919        

      (12)  The person's right to receive, or moneys received      1,921        

during the preceding twelve calendar months from, any of the       1,922        

following:                                                         1,923        

      (a)  An award of reparations under sections 2743.51 to       1,925        

2743.72 of the Revised Code, to the extent exempted by division    1,926        

(D) of section 2743.66 of the Revised Code;                        1,927        

      (b)  A payment on account of the wrongful death of an        1,929        

individual of whom the person was a dependent on the date of the   1,930        

individual's death, to the extent reasonably necessary for the     1,931        

support of the person and any of the person's dependents;          1,932        

      (c)  Except in cases in which the person who receives the    1,934        

payment is an inmate, as defined in section 2969.21 of the         1,935        

Revised Code, and in which the payment resulted from a civil       1,936        

action or appeal against a government entity or employee, as       1,937        

defined in section 2969.21 of the Revised Code, a payment, not to               

exceed five thousand dollars, on account of personal bodily        1,939        

injury, not including pain and suffering or compensation for       1,940        

actual pecuniary loss, of the person or an individual for whom     1,941        

the person is a dependent;                                                      

      (d)  A payment in compensation for loss of future earnings   1,943        

of the person or an individual of whom the person is or was a      1,944        

dependent, to the extent reasonably necessary for the support of   1,945        

the debtor and any of the debtor's dependents.                     1,946        

      (13)  Except as provided in sections 3111.23 and 3113.21 of  1,949        

the Revised Code, personal earnings of the person owed to the                   

person for services in an amount equal to the greater of the       1,950        

following amounts:                                                 1,951        

      (a)  If paid weekly, thirty times the current federal        1,953        

                                                          45     


                                                                 
minimum hourly wage; if paid biweekly, sixty times the current     1,954        

federal minimum hourly wage; if paid semimonthly, sixty-five       1,955        

times the current federal minimum hourly wage; or if paid          1,956        

monthly, one hundred thirty times the current federal minimum      1,957        

hourly wage that is in effect at the time the earnings are         1,958        

payable, as prescribed by the "Fair Labor Standards Act of 1938,"  1,959        

52 Stat. 1060, 29 U.S.C. 206(a)(1), as amended;                    1,960        

      (b)  Seventy-five per cent of the disposable earnings owed   1,962        

to the person.                                                     1,963        

      (14)  The person's right in specific partnership property,   1,965        

as exempted by division (B)(3) of section 1775.24 of the Revised   1,966        

Code;                                                              1,967        

      (15)  A seal and official register of a notary public, as    1,969        

exempted by section 147.04 of the Revised Code;                    1,970        

      (16)  The person's interest in a tuition credit or a         1,972        

payment under section 3334.09 of the Revised Code pursuant to a    1,973        

tuition credit contract, as exempted by section 3334.15 of the     1,974        

Revised Code;                                                                   

      (17)  Any other property that is specifically exempted from  1,976        

execution, attachment, garnishment, or sale by federal statutes    1,977        

other than the "Bankruptcy Reform Act of 1978," 92 Stat. 2549, 11  1,978        

U.S.C.A. 101, as amended;                                          1,979        

      (18)  The person's interest, not to exceed four hundred      1,981        

dollars, in any property, except that division (A)(18) of this     1,982        

section applies only in bankruptcy proceedings.                    1,983        

      (B)  As used in this section:                                1,985        

      (1)  "Disposable earnings" means net earnings after the      1,987        

garnishee has made deductions required by law, excluding the       1,988        

deductions ordered pursuant to section 3111.23 or 3113.21 of the   1,990        

Revised Code.                                                      1,991        

      (2)  "Insider" means:                                        1,993        

      (a)  If the person who claims an exemption is an             1,995        

individual, a relative of the individual, a relative of a general  1,996        

partner of the individual, a partnership in which the individual   1,997        

                                                          46     


                                                                 
is a general partner, a general partner of the individual, or a    1,998        

corporation of which the individual is a director, officer, or in  1,999        

control;                                                           2,000        

      (b)  If the person who claims an exemption is a              2,002        

corporation, a director or officer of the corporation; a person    2,003        

in control of the corporation; a partnership in which the          2,004        

corporation is a general partner; a general partner of the         2,005        

corporation; or a relative of a general partner, director,         2,006        

officer, or person in control of the corporation;                  2,007        

      (c)  If the person who claims an exemption is a              2,009        

partnership, a general partner in the partnership; a general       2,010        

partner of the partnership; a person in control of the             2,011        

partnership; a partnership in which the partnership is a general   2,012        

partner; or a relative in, a general partner of, or a person in    2,013        

control of the partnership;                                        2,014        

      (d)  An entity or person to which or whom any of the         2,016        

following applies:                                                 2,017        

      (i)  The entity directly or indirectly owns, controls, or    2,019        

holds with power to vote, twenty per cent or more of the           2,020        

outstanding voting securities of the person who claims an          2,021        

exemption, unless the entity holds the securities in a fiduciary   2,022        

or agency capacity without sole discretionary power to vote the    2,023        

securities or holds the securities solely to secure to debt and    2,024        

the entity has not in fact exercised the power to vote.            2,025        

      (ii)  The entity is a corporation, twenty per cent or more   2,027        

of whose outstanding voting securities are directly or indirectly  2,028        

owned, controlled, or held with power to vote, by the person who   2,029        

claims an exemption or by an entity to which division              2,030        

(B)(2)(d)(i) of this section applies.                              2,031        

      (iii)  A person whose business is operated under a lease or  2,033        

operating agreement by the person who claims an exemption, or a    2,034        

person substantially all of whose business is operated under an    2,035        

operating agreement with the person who claims an exemption.       2,036        

      (iv)  The entity operates the business or all or             2,038        

                                                          47     


                                                                 
substantially all of the property of the person who claims an      2,039        

exemption under a lease or operating agreement.                    2,040        

      (e)  An insider, as otherwise defined in this section, of a  2,042        

person or entity to which division (B)(2)(d)(i), (ii), (iii), or   2,043        

(iv) of this section applies, as if the person or entity were a    2,044        

person who claims an exemption;                                    2,045        

      (f)  A managing agent of the person who claims an            2,047        

exemption.                                                         2,048        

      (3)  "Participant account" has the same meaning as in        2,050        

section 145.71 of the Revised Code.                                2,051        

      (4)  "Government unit" has the same meaning as in section    2,053        

145.74 of the Revised Code.                                        2,054        

      (C)  For purposes of this section, "interest" shall be       2,056        

determined as follows:                                             2,057        

      (1)  In bankruptcy proceedings, as of the date a petition    2,059        

is filed with the bankruptcy court commencing a case under Title   2,060        

11 of the United States Code;                                      2,061        

      (2)  In all cases other than bankruptcy proceedings, as of   2,063        

the date of an appraisal, if necessary under section 2329.68 of    2,064        

the Revised Code, or the issuance of a writ of execution.          2,065        

      An interest, as determined under division (C)(1) or (2) of   2,067        

this section, shall not include the amount of any lien otherwise   2,068        

valid pursuant to section 2329.661 of the Revised Code.            2,069        

      Sec. 3305.01.  As used in this chapter:                      2,078        

      (A)  "Public institution of higher education" means a state  2,081        

university as defined in section 3345.011 of the Revised Code,     2,082        

the medical college of Ohio at Toledo, the northeastern Ohio       2,083        

universities college of medicine, or a university branch,          2,084        

technical college, state community college, community college, or  2,085        

municipal university established or operating under Chapter        2,086        

3345., 3349., 3355., 3357., or 3358. of the Revised Code.          2,087        

      (B)  "State retirement system" means the public employees    2,090        

retirement system created under Chapter 145. of the Revised Code,  2,091        

the state teachers retirement system created under Chapter 3307.   2,093        

                                                          48     


                                                                 
of the Revised Code, or the school employees retirement system     2,095        

created under Chapter 3309. of the Revised Code.                   2,096        

      (C)  "Academic or administrative employee" means any         2,099        

full-time employee who is a member of the faculty or               2,100        

administrative staff of a public institution of higher education   2,101        

serving in a position in the unclassified civil service pursuant   2,102        

to section 124.11 of the Revised Code and is not receiving any     2,103        

benefit, allowance, or other payment from a state retirement       2,104        

system.  In all cases of doubt, the board of trustees of the       2,105        

public institution of higher education shall determine whether     2,106        

any person is an academic or administrative employee for purposes  2,108        

of this chapter, and the board's decision shall be final.          2,109        

      (D)  "Electing employee" means any academic or               2,111        

administrative employee who elects, pursuant to section 3305.05    2,112        

of the Revised Code, to participate in an alternative retirement   2,113        

plan provided pursuant to this chapter.                                         

      (E)  An electing employee is "continuously employed" if no   2,115        

more than one year intervenes between each period of employment    2,117        

by a public institution of higher education in a position for      2,118        

which three or more alternative retirement plans are available     2,119        

under this chapter.                                                             

      (F)  "Compensation," for purposes of an electing employee,   2,121        

has the same meaning as the applicable one of the following:       2,122        

      (1)  If the electing employee would be subject to Chapter    2,124        

145. of the Revised Code had the employee not made an election     2,125        

pursuant to section 3305.05 of the Revised Code, "earnable         2,127        

salary" as defined in division (R) of section 145.01 of the                     

Revised Code;                                                      2,128        

      (2)  If the electing employee would be subject to Chapter    2,130        

3307. of the Revised Code had the employee not made an election    2,131        

pursuant to section 3305.05 of the Revised Code, "compensation"    2,133        

as defined in division (U)(L) of section 3307.01 of the Revised    2,134        

Code;                                                              2,135        

      (3)  If the electing employee would be subject to Chapter    2,137        

                                                          49     


                                                                 
3309. of the Revised Code had the employee not made an election    2,138        

pursuant to section 3305.05 of the Revised Code, "compensation"    2,140        

as defined in division (V) of section 3309.01 of the Revised                    

Code.                                                              2,141        

      Sec. 3305.06.  (A)  Each electing employee shall contribute  2,150        

an amount, which shall be a certain percentage of the employee's   2,151        

compensation, to the alternative retirement plan in which the      2,152        

employee participates.  This percentage shall be the percentage    2,153        

the electing employee would have otherwise been required to        2,154        

contribute to the state retirement system that applies to the                   

employee's position, except that the percentage shall not be less  2,155        

than three per cent.  Employee contributions under this division   2,156        

may be treated as employer contributions in accordance with        2,157        

Internal Revenue Code 414(h).                                      2,158        

      (B)  Each public institution of higher education employing   2,160        

an electing employee shall contribute an amount, which shall be a  2,161        

certain percentage of the employee's compensation, to the          2,162        

alternative retirement plan the employee has elected.  This        2,163        

percentage shall be determined by the board of trustees of the     2,164        

public institution.                                                             

      (C)(1)  In no event shall the amount contributed by the      2,167        

electing employee pursuant to division (A) of this section and on  2,168        

the electing employee's behalf pursuant to division (B) of this                 

section be less than the amount necessary to qualify the plan as   2,169        

a state retirement system pursuant to Internal Revenue Code        2,170        

3121(B)(7) and the regulations adopted thereunder.                 2,171        

      (2)  The full amount of the electing employee's              2,173        

contribution under division (A) of this section and the full       2,174        

amount of the employer's contribution made on behalf of that       2,175        

employee under division (B) of this section shall be paid to the   2,176        

entity providing the employee's alternative retirement plan for    2,177        

application to that plan in accordance with any contract the       2,178        

electing employee has entered into for purposes of that plan.  In               

no event shall any benefits be paid under that plan prior to the   2,179        

                                                          50     


                                                                 
time an electing employee ceases to be continuously employed.      2,180        

      (D)  An electing employee may make voluntary deposits to     2,182        

the employee's alternative retirement plan in addition to the      2,183        

employee contribution required under division (A) of this          2,185        

section.                                                                        

      (E)  Each public institution of higher education employing   2,187        

an electing employee shall contribute on behalf of that employee   2,188        

to the state retirement system that otherwise applies to the       2,189        

electing employee's position an amount equal to six per cent of    2,190        

the electing employee's compensation to mitigate any negative      2,191        

financial impact of the alternative retirement program on the      2,193        

state retirement system; provided that on the first day of July                 

following the first year after the department of insurance         2,195        

designates an alternative retirement plan under section 3305.03    2,196        

of the Revised Code and every third year thereafter, the Ohio                   

retirement study council shall cause an independent actuarial      2,199        

study to be completed and submitted to the Ohio board of regents.  2,200        

The study shall determine any adjustments in contributions                      

necessary to reflect any change in the level of the negative       2,201        

financial impact resulting from the establishment of the           2,202        

alternative retirement program.  The amount contributed to the     2,204        

state retirement system pursuant to this division shall be                      

increased or decreased to reflect the amount needed to mitigate    2,205        

the negative financial impact, if any, on the system, as           2,206        

determined by each actuarial study.  Any increase or decrease in   2,207        

contributions shall become effective on the first day of July in   2,208        

the year in which the actuarial study is completed.                2,209        

Contributions on behalf of an electing employee shall continue in  2,210        

accordance with this division until the occurrence of the          2,211        

following:                                                                      

      (1)  If the electing employee would be subject to Chapter    2,213        

145. of the Revised Code had the employee not made an election     2,214        

pursuant to section 3305.05 of the Revised Code, until the         2,216        

unfunded actuarial accrued liability for all benefits, except      2,218        

                                                          51     


                                                                 
health care benefits provided under section 145.325 or 145.58 of   2,219        

the Revised Code, is fully amortized, as determined by the annual  2,220        

actuarial valuation prepared under section 145.22 of the Revised   2,221        

Code;                                                                           

      (2)  If the electing employee would be subject to Chapter    2,223        

3307. of the Revised Code had the employee not made an election    2,224        

pursuant to section 3305.05 of the Revised Code, until the         2,225        

unfunded actuarial accrued liability for all benefits, except      2,226        

health care benefits provided under section 3307.405 3307.39 or    2,227        

3307.74 3307.61 of the Revised Code, is fully amortized, as        2,229        

determined by the annual actuarial valuation prepared under                     

section 3307.20 3307.51 of the Revised Code;                       2,230        

      (3)  If the electing employee would be subject to Chapter    2,232        

3309. of the Revised Code had the employee not made an election    2,233        

pursuant to section 3305.05 of the Revised Code, until the         2,234        

unfunded actuarial accrued liability for all benefits, except      2,235        

health care benefits provided under section 3309.375 or 3309.69    2,236        

of the Revised Code, is fully amortized, as determined by the      2,237        

annual actuarial valuation prepared under section 3309.21 of the   2,238        

Revised Code.                                                                   

      Sec. 3307.01.  As used in this chapter:                      2,247        

      (A)  "Employer" means the board of education, school         2,249        

district, governing authority of any community school established  2,250        

under Chapter 3314. of the Revised Code, college, university,      2,251        

institution, or other agency within the state by which a teacher   2,253        

is employed and paid.                                                           

      (B)  "Teacher" means any ALL OF THE FOLLOWING:               2,255        

      (1)  ANY person paid from public funds and employed in the   2,258        

public schools of the state under any type of contract described   2,259        

in section 3319.08 of the Revised Code in a position for which     2,260        

the person is required to have a license issued pursuant to        2,262        

sections 3319.22 to 3319.31 of the Revised Code; any                            

      (2)  ANY person employed as a teacher by a community school  2,265        

pursuant to Chapter 3314. of the Revised Code; and any             2,267        

                                                          52     


                                                                 
      (3)  ANY PERSON HOLDING AN INTERNSHIP CERTIFICATE ISSUED     2,270        

UNDER SECTION 3319.28 OF THE REVISED CODE AND EMPLOYED IN A        2,272        

PUBLIC SCHOOL IN THIS STATE;                                                    

      (4)  ANY PERSON HAVING A LICENSE ISSUED PURSUANT TO          2,275        

SECTIONS 3319.22 TO 3319.31 OF THE REVISED CODE AND EMPLOYED IN A  2,276        

PUBLIC SCHOOL IN THIS STATE IN AN EDUCATIONAL POSITION, AS         2,278        

DETERMINED BY THE STATE BOARD OF EDUCATION, UNDER PROGRAMS                      

PROVIDED FOR BY FEDERAL ACTS OR REGULATIONS AND FINANCED IN WHOLE  2,279        

OR IN PART FROM FEDERAL FUNDS, BUT FOR WHICH NO LICENSURE          2,280        

REQUIREMENTS FOR THE POSITION CAN BE MADE UNDER THE PROVISIONS OF  2,281        

SUCH FEDERAL ACTS OR REGULATIONS;                                               

      (5)  ANY other teacher or faculty member employed in any     2,283        

school, college, university, institution, or other agency wholly   2,285        

controlled and managed, and supported in whole or in part, by the  2,286        

state or any political subdivision thereof, including Central      2,287        

state university, Cleveland state university, the university of    2,288        

Toledo, and the medical college of Ohio at Toledo.;                2,289        

      (6)  The educational employees of the department of          2,292        

education, as determined by the state superintendent of public     2,293        

instruction, shall be considered teachers for the purpose of       2,294        

membership in this system.  In                                     2,295        

      IN all cases of doubt, the state teachers retirement board   2,298        

shall determine whether any person is a teacher, and its decision  2,299        

shall be final.                                                                 

      "Teacher" does not include any academic or administrative    2,301        

employee of a public institution of higher education, as defined   2,302        

in section 3305.01 of the Revised Code, who participates in an     2,303        

alternative retirement plan established under Chapter 3305. of     2,304        

the Revised Code.                                                               

      (C)  "Prior service" means all service as a teacher before   2,306        

September 1, 1920, military service credit, all service prior to   2,307        

September 1, 1920, as an employee of any employer who comes        2,308        

within the public employees retirement system, the school          2,309        

employees retirement system, or any other state retirement system  2,310        

                                                          53     


                                                                 
established under the laws of Ohio, and similar service in         2,311        

another state, credit for which was procured by a member under     2,312        

section 3307.33 of the Revised Code, prior to June 25, 1945.       2,313        

Prior service credit shall not be granted to any member for        2,314        

service for which credit or benefits have been received in any     2,315        

other state retirement system in Ohio or for credit that was       2,316        

forfeited by withdrawal of contributions, unless the credit has    2,317        

been restored.  If the teacher served as an employee in any two    2,318        

or all of the capacities, "prior service" means the total          2,319        

combined service in the capacities prior to September 1, 1920.     2,320        

      If a teacher who has been granted prior service credit for   2,322        

service rendered prior to September 1, 1920, as an employee of an  2,323        

employer who comes within the public employees retirement system   2,324        

or the school employees retirement system, establishes,            2,325        

subsequent to September 16, 1957, and before retirement, three     2,326        

years of contributing service in the public employees retirement   2,327        

system, or one year in the school employees retirement system,     2,328        

the prior service credit granted shall become, at retirement, the  2,330        

liability of the other system if the prior service or employment   2,332        

was in a capacity covered by that system.                                       

      (D)  "Total service," "total service credit," except as      2,334        

provided in section 3307.41 of the Revised Code, or "Ohio service  2,335        

credit" means all service of a member of the state teachers        2,336        

retirement system since last becoming a member and, in addition    2,337        

thereto, restored service credit under section 3307.28 of the      2,338        

Revised Code, all prior service credit, all military service       2,340        

credit computed as provided in this chapter, and all other         2,341        

service credit established under sections 3307.22, 3307.31,        2,342        

3307.311, 3307.32, 3307.35, 3307.411, 3307.412, 3307.51,           2,344        

3307.512, 3307.513, 3307.514, 3307.515, and 3307.73 and former     2,346        

section 3307.52 of the Revised Code, and Section 3 of Amended      2,347        

Substitute Senate Bill No. 530 of the 114th general assembly.      2,348        

All service credit purchased under section 3307.33 of the Revised  2,349        

Code shall be used exclusively for the purpose of qualifying for   2,350        

                                                          54     


                                                                 
service retirement.                                                2,351        

      (E)  "Member" means any person included in the membership    2,353        

of the state teachers retirement system, which shall consist of    2,354        

all teachers and contributors as defined in divisions (B) and      2,356        

(F)(D) of this section and all disability benefit recipients, AS   2,357        

DEFINED IN SECTION 3307.50 OF THE REVISED CODE.  However, for      2,359        

purposes of this chapter, the following persons shall not be                    

considered members:                                                2,360        

      (1)  A student, intern, or resident who is not a member      2,362        

while employed part-time by a school, college, or university at    2,364        

which the student, intern, or resident is regularly attending      2,365        

classes;                                                                        

      (2)  A person denied membership pursuant to section 3307.27  2,367        

3307.24 of the Revised Code;                                       2,369        

      (3)  A superannuate or AN other system retirant, as defined  2,372        

in section 3307.381 3307.35 of the Revised Code, OR A              2,373        

SUPERANNUATE;                                                      2,374        

      (4)  An individual employed in a program established         2,376        

pursuant to the "Job Training Partnership Act," 96 Stat. 1322      2,377        

(1982), 29 U.S.C.A. 1501.                                          2,378        

      (F)(D)  "Contributor" means any person who has an account    2,380        

in the teachers' savings fund OR DEFINED CONTRIBUTION FUND.        2,381        

      (G)(E)  "Beneficiary" means any person eligible to receive,  2,383        

or in receipt of, a retirement allowance or other benefit          2,385        

provided by this chapter.                                          2,386        

      (H)(1)  "Service retirement" means retirement as provided    2,388        

in section 3307.38 or 3307.39 of the Revised Code.                 2,389        

      (2)  "Disability retirement" means retirement as provided    2,391        

in section 3307.43 of the Revised Code.                            2,392        

      (I)  "Accumulated contributions" means the sum of all        2,394        

amounts credited to a contributor's individual account in the      2,395        

teachers' savings fund, together with interest credited thereon    2,396        

at the rates approved by the state teachers retirement board       2,397        

prior to retirement.                                               2,398        

                                                          55     


                                                                 
      (J)  "Annuity" means payments for life derived from          2,400        

contributions made by a contributor and paid from the annuity and  2,401        

pension reserve fund.  All annuities shall be paid in twelve       2,402        

equal monthly installments.                                        2,403        

      (K)  "Pensions" means annual payments for life derived from  2,405        

appropriations made by an employer and paid from the annuity and   2,406        

pension reserve fund.  All pensions shall be paid in twelve equal  2,407        

monthly installments.                                              2,408        

      (L)(1)  "Allowance" or "benefit" means the pension plus the  2,410        

annuity, or any other payment under this chapter, and includes a   2,411        

disability allowance or disability benefit.                        2,412        

      (2)  "Disability allowance" means an allowance paid on       2,414        

account of disability under section 3307.431 of the Revised Code.  2,415        

      (3)  "Disability benefit" means a benefit paid as            2,417        

disability retirement under section 3307.43 of the Revised Code,   2,418        

as a disability allowance under section 3307.431 of the Revised    2,419        

Code, or as a disability benefit under section 3307.41 of the      2,420        

Revised Code.                                                      2,421        

      (M)  "Annuity reserve" means the present value, computed     2,423        

upon the basis of mortality tables adopted by the state teachers   2,424        

retirement board with interest, of all payments to be made on      2,425        

account of any annuity, or benefit in lieu of any annuity,         2,426        

granted to a member.                                               2,427        

      (N)  "Pension reserve" means the present value, computed     2,429        

upon the basis of mortality tables adopted by the state teachers   2,430        

retirement board with interest, of all payments to be made on      2,431        

account of any pension, or benefit in lieu of any pension,         2,432        

granted to a member or to a beneficiary.                           2,433        

      (O)(F)  "Year" means the year beginning the first day of     2,435        

July and ending with the thirtieth day of June next following,     2,436        

except that for the purpose of determining final average salary    2,437        

UNDER THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE     2,438        

REVISED CODE, "year" may mean the contract year.                   2,440        

      (P)(G)  "Local district pension system" means any school     2,442        

                                                          56     


                                                                 
teachers pension fund created in any school district of the state  2,443        

in accordance with the laws of the state prior to September 1,     2,444        

1920.                                                              2,445        

      (Q)(H)  "Employer contribution" means the amount paid by an  2,447        

employer, as determined by the employer rate, including the        2,448        

normal and deficiency rates, contributions, and funds wherever     2,449        

used in this chapter.                                              2,450        

      (R)(I)  "Five years of service credit," for the exclusive    2,453        

purpose of satisfying the service credit requirements and          2,454        

determining eligibility for benefits under section 3307.38 of the  2,455        

Revised Code, means employment covered under this chapter and      2,456        

employment covered under a former retirement plan operated,        2,457        

recognized, or endorsed by a college, institute, university, or    2,458        

political subdivision of this state prior to coverage under this   2,459        

chapter.                                                           2,460        

      (S)(J)  "Actuary" means the actuarial consultant to the      2,462        

state teachers retirement board, who shall be either of the        2,463        

following:                                                                      

      (1)  A member of the American academy of actuaries;          2,465        

      (2)  A firm, partnership, or corporation of which at least   2,467        

one person is a member of the American academy of actuaries.       2,468        

      (T)(K)  "Fiduciary" means a person who does any of the       2,470        

following:                                                         2,471        

      (1)  Exercises any discretionary authority or control with   2,473        

respect to the management of the system, or with respect to the    2,474        

management or disposition of its assets;                           2,475        

      (2)  Renders investment advice for a fee, direct or          2,477        

indirect, with respect to money or property of the system;         2,478        

      (3)  Has any discretionary authority or responsibility in    2,480        

the administration of the system.                                  2,481        

      (U)(L)(1)  Except as otherwise provided in this division,    2,484        

"compensation" means all salary, wages, and other earnings paid    2,485        

to a teacher by reason of the teacher's employment, including      2,486        

compensation paid pursuant to a supplemental contract.  The        2,487        

                                                          57     


                                                                 
salary, wages, and other earnings shall be determined prior to     2,488        

determination of the amount required to be contributed to the      2,489        

teachers' savings fund under section 3307.51 3307.26 of the        2,490        

Revised Code and without regard to whether any of the salary,      2,492        

wages, or other earnings are treated as deferred income for        2,493        

federal income tax purposes.                                                    

      (2)  Compensation does not include any of the following:     2,495        

      (a)  Payments for accrued but unused sick leave or personal  2,497        

leave, including payments made under a plan established pursuant   2,498        

to section 124.39 of the Revised Code or any other plan            2,499        

established by the employer;                                       2,500        

      (b)  Payments made for accrued but unused vacation leave,    2,502        

including payments made pursuant to section 124.13 of the Revised  2,503        

Code or a plan established by the employer;                        2,504        

      (c)  Payments made for vacation pay covering concurrent      2,506        

periods for which other salary, compensation, or benefits under    2,507        

this chapter are paid;                                             2,508        

      (d)  Amounts paid by the employer to provide life            2,510        

insurance, sickness, accident, endowment, health, medical,         2,511        

hospital, dental, or surgical coverage, or other insurance for     2,512        

the teacher or the teacher's family, or amounts paid by the        2,513        

employer to the teacher in lieu of providing the insurance;        2,514        

      (e)  Incidental benefits, including lodging, food, laundry,  2,516        

parking, or services furnished by the employer, use of the         2,517        

employer's property or equipment, and reimbursement for            2,518        

job-related expenses authorized by the employer, including moving  2,519        

and travel expenses and expenses related to professional           2,520        

development;                                                       2,521        

      (f)  Payments made by the employer in exchange for a         2,523        

member's waiver of a right to receive any payment, amount, or      2,524        

benefit described in division (U)(L)(2) of this section;           2,525        

      (g)  Payments by the employer for services not actually      2,527        

rendered;                                                          2,528        

      (h)  Any amount paid by the employer as a retroactive        2,530        

                                                          58     


                                                                 
increase in salary, wages, or other earnings, unless the increase  2,531        

is one of the following:                                           2,532        

      (i)  A retroactive increase paid to a member employed by a   2,534        

school district board of education in a position that requires a   2,535        

license designated for teaching and not designated for being an    2,536        

administrator issued under section 3319.22 of the Revised Code     2,537        

that is paid in accordance with uniform criteria applicable to     2,538        

all members employed by the board in positions requiring the       2,539        

licenses;                                                          2,540        

      (ii)  A retroactive increase paid to a member employed by a  2,542        

school district board of education in a position that requires a   2,543        

license designated for being an administrator issued under         2,544        

section 3319.22 of the Revised Code that is paid in accordance     2,545        

with uniform criteria applicable to all members employed by the    2,546        

board in positions requiring the licenses;                         2,547        

      (iii)  A retroactive increase paid to a member employed by   2,549        

a school district board of education as a superintendent that is   2,550        

also paid as described in division (U)(L)(2)(h)(i) of this         2,551        

section;                                                           2,552        

      (iv)  A retroactive increase paid to a member employed by    2,554        

an employer other than a school district board of education in     2,555        

accordance with uniform criteria applicable to all members         2,556        

employed by the employer.                                          2,557        

      (i)  Payments made to or on behalf of a teacher that are in  2,559        

excess of the annual compensation that may be taken into account   2,560        

by the retirement system under division (a)(17) of section 401 of  2,561        

the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A.   2,562        

401(a)(17), as amended.  For a teacher who first establishes       2,563        

membership before July 1, 1996, the annual compensation that may   2,564        

be taken into account by the retirement system shall be            2,565        

determined under division (d)(3) of section 13212 of the "Omnibus  2,566        

Budget Reconciliation Act of 1993," Pub. L. No. 103-66, 107 Stat.  2,568        

472.                                                                            

      (j)  Payments made under division (B) or (D) of section      2,570        

                                                          59     


                                                                 
5923.05 of the Revised Code or Section 4 of Substitute Senate      2,572        

Bill No. 3 of the 119th general assembly;                          2,573        

      (k)  Anything of value received by the teacher that is       2,575        

based on or attributable to retirement or an agreement to retire.  2,576        

      (3)  The retirement board shall determine by rule both of    2,578        

the following:                                                     2,579        

      (a)  Whether particular forms of earnings are included in    2,581        

any of the categories enumerated in this division;                 2,582        

      (b)  Whether any form of earnings not enumerated in this     2,584        

division is to be included in compensation.                        2,585        

      Decisions of the board made under this division shall be     2,587        

final.                                                             2,588        

      (V)  "Retirant" means any former member who is granted age   2,590        

and service retirement as provided in sections 3307.38, 3307.39,   2,591        

3307.41, and 3307.50 of the Revised Code.                          2,592        

      (W)  "Disability benefit recipient" means a member who is    2,594        

receiving a disability benefit.                                    2,595        

      (M)  "SUPERANNUATE" MEANS BOTH OF THE FOLLOWING:             2,597        

      (1)  A FORMER TEACHER RECEIVING FROM THE SYSTEM A            2,599        

RETIREMENT ALLOWANCE UNDER SECTION 3307.58 OR 3307.59 OF THE       2,600        

REVISED CODE;                                                      2,601        

      (2)  A FORMER TEACHER RECEIVING ANY BENEFIT FROM THE SYSTEM  2,603        

UNDER THE PLAN ESTABLISHED UNDER SECTIONS 3307.81 TO 3307.89 OF    2,604        

THE REVISED CODE.                                                  2,605        

      FOR PURPOSES OF SECTION 3307.35 OF THE REVISED CODE,         2,607        

"SUPERANNUATE" ALSO MEANS A FORMER TEACHER RECEIVING FROM THE      2,608        

SYSTEM A COMBINED SERVICE RETIREMENT BENEFIT PAID IN ACCORDANCE    2,609        

WITH SECTION 3307.57 OF THE REVISED CODE, REGARDLESS OF WHICH      2,610        

RETIREMENT SYSTEM IS PAYING THE BENEFIT.                           2,611        

      Sec. 3307.031.  THE STATE TEACHERS RETIREMENT SYSTEM SHALL   2,614        

CONSIST OF THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 AND   2,615        

THE PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE REVISED CODE.    2,617        

      Sec. 3307.05.  The state teachers retirement board shall     2,626        

consist of the following nine members:                             2,627        

                                                          60     


                                                                 
      (A)  The superintendent of public instruction;               2,629        

      (B)  The auditor of state;                                   2,631        

      (C)  The attorney general;                                   2,633        

      (D)  Five members, known as teacher members, who shall be    2,635        

members of the state teachers retirement system;                   2,636        

      (E)  A former member of the system, known as the retired     2,638        

teacher member, who shall be a recipient of service retirement     2,639        

benefits under section 3307.38 or 3307.39 of the Revised Code      2,640        

SUPERANNUATE.                                                                   

      Sec. 3307.07.  All elections of members of the state         2,649        

teachers retirement board shall be held under the direction of     2,650        

the board.  Any member of the state teachers retirement system,    2,651        

who has been nominated by a petition signed by five hundred or     2,652        

more members of the system, shall be eligible for election as a    2,653        

teacher member of the board.  The petition shall contain the       2,654        

signatures of twenty or more members of the system from each of    2,655        

at least ten counties wherein members of the system are employed.  2,656        

      Any retired teacher who is a recipient of service            2,658        

retirement benefits under section 3307.38 or 3307.39 of the        2,659        

Revised Code SUPERANNUATE and is a resident of Ohio is eligible    2,661        

for election as the retired teacher member of the board, if such   2,662        

retired teacher has been nominated by a petition signed by five    2,663        

hundred or more retired teachers, who are also recipients of       2,664        

benefits under section 3307.38 or 3307.39 of the Revised Code      2,665        

SUPERANNUATES.  The petition shall contain the signatures of       2,667        

twenty or more retired teachers from each of at least ten          2,668        

counties wherein retirants SUPERANNUATES under the system reside.  2,670        

      The board shall place the name of any eligible candidate     2,672        

upon the appropriate ballot as a regular candidate.  At any        2,673        

election, qualified voters, as defined in this section, may vote   2,674        

for the regular candidates or for other eligible candidates, in    2,675        

which case the names of such persons shall be written upon the     2,676        

appropriate ballots, except that members of the system and former  2,677        

members of the system who are recipients of service retirement     2,678        

                                                          61     


                                                                 
benefits under section 3307.38 or 3307.39 of the Revised Code      2,679        

SUPERANNUATES shall vote respectively for teacher members and the  2,681        

retired teacher member of the board.  The candidate who receives   2,682        

the highest number of votes for any term of office shall be        2,683        

elected to the board.  If, at any election, teacher members are    2,684        

to be elected for concurrent terms, eligible candidates shall be   2,685        

placed on the ballot, and the candidates who receive the highest   2,686        

numbers of votes shall be elected to the board.                    2,687        

      Elected members of the board shall be elected on the basis   2,689        

of the total number of ballots cast by qualified voters, who       2,690        

shall consist of members of the system and former members of the   2,691        

system who are recipients of service retirement benefits under     2,692        

section 3307.38 or 3307.39 of the Revised Code SUPERANNUATES.      2,693        

      Sec. 3307.08.  Each member of the state teachers retirement  2,702        

board upon appointment or election shall take an oath of office    2,703        

that he THE MEMBER will support the constitution of the United     2,705        

States, the constitution of the state, and that he THE MEMBER      2,706        

will diligently and honestly administer the affairs of the said    2,707        

board, and that he THE MEMBER will not knowingly violate or        2,709        

willfully permit to be violated any law applicable to sections     2,711        

3307.01 to 3307.72, inclusive, of the Revised Code THIS CHAPTER.   2,712        

Such oath shall be subscribed to by the member making it, and      2,713        

certified by the officer before whom it is taken, and shall be     2,714        

immediately filed in the office of the secretary of state.         2,715        

      Sec. 3307.09.  A majority of the members of the state        2,724        

teachers retirement board constitutes a quorum for the             2,725        

transaction of any business.  All meetings of the board shall be   2,726        

open to the public except executive sessions as set forth in       2,727        

division (G) of section 121.22 of the Revised Code, and any                     

portions of any sessions discussing medical records or the degree  2,728        

of disability of a member excluded from public inspection by       2,729        

section 3307.21 3307.20 of the Revised Code.                       2,730        

      Sec. 3307.10.  (A)  The members of the state teachers        2,739        

retirement board shall serve without compensation, except that     2,740        

                                                          62     


                                                                 
members shall be reimbursed from the expense fund for all actual   2,741        

necessary expenses incurred while serving on the board.            2,742        

      (B)  The board may secure insurance coverage designed to     2,744        

indemnify board members and employees for their actions or         2,745        

conduct in the performance of official duties, and may pay         2,746        

required premiums for such coverage from the expense fund.         2,747        

      (C)  If the officers of the board determine that a meeting   2,749        

of the entire membership, or any part thereof, is necessary, such  2,750        

determination shall be final, and teacher members shall be given   2,751        

time off from their employment to attend any such meeting.  The    2,752        

employer of a teacher member shall not reduce the member's earned  2,753        

compensation as a teacher or any contribution required under       2,754        

section 3307.51 3307.26 of the Revised Code, because of the        2,755        

teacher member's absence from employment to attend any such        2,756        

meeting.                                                                        

      The portion of the employer contribution required under      2,758        

section 3307.53 3307.28 of the Revised Code that represents        2,760        

earned compensation of a teacher member paid for the period of an  2,761        

absence from employment to attend a board meeting, shall be                     

annually transferred from the expense fund and forwarded to the    2,762        

employer of the teacher member.                                    2,763        

      (D)  The board shall adopt rules in accordance with section  2,766        

111.15 of the Revised Code establishing a policy for               2,768        

reimbursement of travel expenses incurred by board members in the  2,770        

performance of their official duties.  As part of any audit                     

performed under Chapter 117. of the Revised Code, an inquiry       2,773        

shall be made into whether board members have complied with these  2,774        

rules.                                                                          

      (E)  No board member shall accept payment or reimbursement   2,777        

for travel expenses, other than for meals and other food and       2,778        

beverages provided to the member, from any source other than the   2,779        

expense fund.  Except in the case of an emergency, no              2,780        

out-of-state travel expenses shall be reimbursed unless approved   2,781        

in advance by a majority of the board at a regular board meeting.  2,782        

                                                          63     


                                                                 
      Sec. 3307.11.  The state teachers retirement board shall     2,791        

elect from its membership, a chairman CHAIRPERSON and a vice       2,792        

chairman VICE-CHAIRPERSON.  The board shall employ an executive    2,794        

director who shall serve as secretary, and shall employ other      2,795        

persons necessary to operate the system and to fulfill the         2,796        

board's duties and responsibilities under Chapter 3307. of the     2,797        

Revised Code.  The compensation of all employees and all other     2,798        

expenses of the board necessary for the proper operation of the    2,799        

system shall be paid in such amounts as the board approves.        2,800        

      Every expense voucher of an employee, officer, or board      2,802        

member of the state teachers retirement system shall itemize all   2,803        

purchases and expenditures.                                        2,804        

      The board shall receive all applications for retirement      2,806        

UNDER THE PLANS DESCRIBED IN SECTION 3307.031 OF THE REVISED       2,807        

CODE, shall provide for the payment of all retirement allowances   2,808        

and other benefits PAYABLE UNDER THIS CHAPTER, and shall make      2,809        

other authorized by Chapter 3307. of the Revised Code THIS         2,810        

CHAPTER.                                                                        

      Sec. 3307.121.  THE TREASURER OF STATE SHALL FURNISH         2,812        

ANNUALLY TO THE STATE TEACHERS RETIREMENT BOARD A SWORN STATEMENT  2,813        

OF THE AMOUNT OF THE FUNDS IN THE TREASURER OF STATE'S CUSTODY     2,814        

BELONGING TO THE STATE TEACHERS RETIREMENT SYSTEM.                 2,815        

      Sec. 3307.65 3307.14.  The state teachers retirement board   2,824        

shall be the trustee of certain funds hereby created as follows:   2,826        

      (A)  The "teachers' savings fund" is the fund in which       2,828        

shall be accumulated the contributions deducted from the           2,829        

compensation of teachers and faculty members PARTICIPATING IN THE  2,830        

PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED       2,831        

CODE, as provided by section 3307.51 3307.26 of the Revised Code,  2,832        

together with the interest credited thereon.  Such accumulated     2,834        

contributions refunded upon withdrawal, or payable to an estate    2,835        

or beneficiary as provided in this chapter, shall be paid from     2,836        

this fund.  Any accumulated contributions forfeited by the         2,837        

failure of a contributor, an estate, or a beneficiary to claim     2,838        

                                                          64     


                                                                 
the same shall be transferred from this fund to the guarantee      2,839        

fund.  The accumulated contributions of a member or of a teacher   2,840        

who qualifies for a benefit under section 3307.381 3307.35 of the  2,841        

Revised Code shall be transferred at his THE MEMBER'S OR           2,843        

TEACHER'S retirement from the teachers' savings fund to the        2,845        

annuity and pension reserve fund.  The accumulated contributions   2,846        

of a member who dies prior to superannuation retirement that are   2,847        

forfeited by the qualified beneficiary in exchange for monthly     2,848        

survivor benefits, as provided by section 3307.49 3307.66 of the   2,849        

Revised Code, shall be transferred to the survivors' benefit       2,851        

fund.  The accumulated contributions of a superannuate or other    2,852        

system retirant as defined in section 3307.381 3307.35 of the      2,853        

Revised Code shall be transferred to the survivors' benefit fund   2,855        

for payment of a lump-sum benefit to a beneficiary as provided in  2,856        

THAT section 3307.381 of the Revised Code.  AS USED IN THIS        2,857        

DIVISION, "ACCUMULATED CONTRIBUTIONS" HAS THE SAME MEANING AS IN   2,858        

SECTION 3307.50 OF THE REVISED CODE.                                            

      (B)  The "employers' trust fund" is the fund to which the    2,860        

employer contribution MADE ON BEHALF OF A TEACHER PARTICIPATING    2,861        

IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE        2,862        

REVISED CODE shall be credited and in which shall be accumulated   2,864        

the reserves held in trust for the payment of all pensions or      2,865        

other benefits provided by sections 3307.38 3307.35, 3307.381      2,867        

3307.58, 3307.39 3307.59, 3307.43 3307.60, 3307.431 3307.63,       2,868        

3307.49 3307.631, 3307.50 3307.66, 3307.70 3307.6912, and 3307.78  2,871        

3307.98 of the Revised Code, to teachers retiring or receiving     2,873        

disability benefits in the future or to their qualified                         

beneficiaries, and from which the reserves for such pensions and   2,874        

other benefits shall be transferred to the annuity and pension     2,875        

reserve fund and to the survivors' benefit fund.  The balances as  2,876        

of August 31, 1957, in the employers accumulation fund shall be    2,877        

transferred to this fund.  As of September 1, 1957, an additional  2,878        

amount shall be transferred from the employers' trust fund to the  2,879        

annuity and pension reserve fund in the amount required to         2,880        

                                                          65     


                                                                 
complete the funding of the prior service, AS DEFINED IN SECTION   2,881        

3307.50 OF THE REVISED CODE, and military service pensions then    2,883        

payable.                                                                        

      (C)  The "annuity and pension reserve fund" is the fund      2,885        

from which shall be paid all annuities, pensions, and disability   2,886        

benefits UNDER THE PLAN DESCRIBED IN SECTION 3307.50 TO 3307.79    2,887        

OF THE REVISED CODE for which reserves have been transferred from  2,888        

the teachers' savings fund and the employers' trust fund.          2,889        

      (D)  The "survivors' benefit fund" is the fund from which    2,891        

shall be paid the survivors' benefits provided by section 3307.49  2,892        

3307.66 of the Revised Code and the lump sum payment to            2,894        

beneficiaries as provided in section 3307.381 3307.35 of the       2,895        

Revised Code, and to which shall be transferred from the           2,897        

employers' trust fund the amount required to fund all liabilities  2,898        

as of the end of each year.                                                     

      (E)  The "guarantee fund" is the fund from which interest    2,900        

is transferred and credited on the amounts in the funds described  2,901        

in divisions (A), (B), (C), and (D) of this section, and is a      2,902        

contingent fund from which the special requirements of said funds  2,903        

may be paid by transfer from this fund.  All income derived from   2,904        

the investment of funds by the state teachers retirement board as  2,905        

trustee under section 3307.15 of the Revised Code, together with   2,906        

all gifts and bequests, or the income therefrom, shall be paid     2,907        

into this fund.                                                    2,908        

      Any deficit occurring in any other fund that will not be     2,910        

covered by payments to that fund, as otherwise provided in this    2,911        

chapter, shall be paid by transfers of amounts from the guarantee  2,912        

fund to such fund or funds.  Should the amount in the guarantee    2,913        

fund be insufficient at any time to meet the amounts payable       2,914        

therefrom, the amount of such deficiency, with regular interest,   2,915        

shall be paid by an additional employer rate of contribution as    2,916        

determined by the actuary and shall be approved by the state       2,917        

teachers retirement board, and the amount of such additional       2,918        

employer contribution shall be credited to the guarantee fund.     2,919        

                                                          66     


                                                                 
      The state teachers retirement board may accept gifts and     2,921        

bequests.  Any funds that may come into the possession of the      2,922        

state teachers retirement board in this manner or that may be      2,923        

transferred from the teachers' savings fund by reason of lack of   2,924        

a claimant, or any surplus in any fund created by IN DIVISIONS     2,926        

(A) TO (F) OF this section, or any other funds whose disposition   2,927        

is not otherwise provided for, shall be credited to the guarantee  2,928        

fund.                                                                           

      (F)  The expense fund is the fund from which shall be paid   2,930        

the expenses for the administration and management of the state    2,931        

teachers retirement system as provided by this chapter.            2,932        

      (G)  THE "DEFINED CONTRIBUTION FUND" IS THE FUND IN WHICH    2,934        

SHALL BE ACCUMULATED THE CONTRIBUTIONS DEDUCTED FROM THE           2,935        

COMPENSATION OF TEACHERS PARTICIPATING IN THE PLAN ESTABLISHED     2,936        

UNDER SECTION 3307.81 OF THE REVISED CODE, AS PROVIDED IN SECTION  2,938        

3307.26 OF THE REVISED CODE, TOGETHER WITH ANY EARNINGS AND        2,940        

EMPLOYER CONTRIBUTIONS CREDITED THEREON.                                        

      Sec. 3307.66 3307.141.  Wherever in sections 3307.01 to      2,949        

3307.72, inclusive, of the Revised Code THIS CHAPTER, reference    2,951        

is made to the teachers' savings fund, the employers' normal       2,953        

accumulation fund, the employers' deficiency accumulation fund,                 

the annuity and pension reserve fund, the guarantee fund, the      2,954        

survivors' benefit fund, or the expense fund, OR THE DEFINED       2,955        

CONTRIBUTION FUND, such reference shall be construed to have been  2,956        

made to each as a separate legal entity.  This section does not    2,957        

prevent the deposit or investment of all such moneys intermingled  2,958        

for such purpose but such funds shall be separate and distinct     2,959        

legal entities for all other purposes.                                          

      Sec. 3307.651 3307.142.  (A)  Interest compounded annually   2,969        

shall be credited to the accounts of members PARTICIPATING IN THE  2,970        

PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE  2,971        

and to the various funds LISTED IN DIVISIONS (A) TO (F) OF         2,972        

SECTION 3307.14 OF THE REVISED CODE, and shall be assumed in                    

determining actuarial factors, at rates recommended by the         2,974        

                                                          67     


                                                                 
actuary and approved by the STATE TEACHERS retirement board, but   2,975        

not less than three and twenty-five hundredths per cent effective  2,977        

September 1, 1965, except as follows:                                           

      (1)  For the years stated the rates shall be as follows:     2,979        

                    Years                   Rates                  2,981        

              9-1-1920/8-31-1955            4.00%                  2,982        

              9-1-1955/8-31-1963            3.00                   2,983        

              9-1-1963/8-31-1965            3.25                   2,984        

      (2)  Subsequent to August 31, 1959, interest shall be        2,987        

credited to accounts only at retirement.                           2,989        

      (3)  If the amount of the account at retirement is not a     2,991        

factor in determining the allowance, interest shall not be         2,992        

credited to such account after September 1, 1964.                  2,993        

      (4)  The actuary shall estimate the amount of interest       2,995        

reserve required in the teachers savings fund for credit to        2,996        

accounts when interest is to be a factor in determining the        2,997        

allowance, and the balance of the interest reserve in such fund    2,998        

shall be transferred to the employers trust fund as of September                

1, 1965.                                                                        

      (B)  INTEREST SHALL BE CREDITED TO THE ACCOUNTS OF MEMBERS   3,000        

PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.80 TO         3,001        

3307.89 OF THE REVISED CODE AND TO THE DEFINED CONTRIBUTION FUND   3,002        

IN ACCORDANCE WITH THE PLAN ESTABLISHED UNDER SECTION 3307.81 OF   3,003        

THE REVISED CODE.                                                               

      Sec. 3307.15.  (A)  The members of the state teachers        3,012        

retirement board shall be the trustees of the funds created by     3,013        

section 3307.65 3307.14 of the Revised Code.  The board shall      3,014        

have full power to invest the funds.  The board and other          3,016        

fiduciaries shall discharge their duties with respect to the       3,017        

funds solely in the interest of the participants and               3,018        

beneficiaries; for the exclusive purpose of providing benefits to  3,019        

participants and their beneficiaries and defraying reasonable      3,020        

expenses of administering the system; with care, skill, prudence,  3,021        

and diligence under the circumstances then prevailing that a       3,022        

                                                          68     


                                                                 
prudent person acting in a like capacity and familiar with these   3,023        

matters would use in the conduct of an enterprise of a like        3,025        

character and with like aims; and by diversifying the investments  3,026        

of the system so as to minimize the risk of large losses, unless   3,027        

under the circumstances it is clearly prudent not to do so.        3,028        

      To facilitate investment of the funds, the board may         3,030        

establish a partnership, trust, limited liability company,         3,031        

corporation, including a corporation exempt from taxation under    3,032        

the Internal Revenue Code, 100 Stat. 2085, 26 U.S.C. 1, as         3,034        

amended, or any other legal entity authorized to transact                       

business in this state.                                            3,035        

      (B)  In exercising its fiduciary responsibility with         3,037        

respect to the investment of the funds, it shall be the intent of  3,038        

the board to give consideration to investments that enhance the    3,039        

general welfare of the state and its citizens where the            3,040        

investments offer quality, return, and safety comparable to other  3,042        

investments currently available to the board.  In fulfilling this  3,043        

intent, equal consideration shall also be given to investments     3,044        

otherwise qualifying under this section that involve minority      3,045        

owned and controlled firms and firms owned and controlled by       3,046        

women, either alone or in joint venture with other firms.          3,047        

      The board shall adopt, in regular meeting, policies,         3,049        

objectives, or criteria for the operation of the investment        3,050        

program that include asset allocation targets and ranges, risk     3,051        

factors, asset class benchmarks, time horizons, total return       3,052        

objectives, and performance evaluation guidelines.  In adopting    3,054        

policies and criteria for the selection of agents with whom the    3,055        

board may contract for the administration of the funds, the board  3,056        

shall give equal consideration to minority owned and controlled    3,057        

firms, firms owned and controlled by women, and ventures           3,058        

involving minority owned and controlled firms and firms owned and  3,059        

controlled by women that otherwise meet the policies and criteria  3,060        

established by the board.  Amendments and additions to the         3,061        

policies and criteria shall be adopted in regular meeting.  The    3,062        

                                                          69     


                                                                 
board shall publish its policies, objectives, and criteria under   3,063        

this provision no less often than annually and shall make copies   3,065        

available to interested parties.                                                

      When reporting on the performance of investments, the board  3,067        

shall comply with the performance presentation standards           3,068        

established by the association for investment management and       3,069        

research.                                                                       

      (C)  All bonds, notes, certificates, stocks, or other        3,072        

evidences of investments purchased by the board shall be           3,074        

delivered to the treasurer of state, who is hereby designated as   3,075        

custodian thereof, or to the treasurer of state's authorized       3,076        

agent, and the treasurer of state or the agent shall collect the   3,078        

principal, interest, dividends, and distributions that become due  3,081        

and payable and place them when so collected into the custodial    3,082        

funds.  Evidences of title of the investments may be deposited by  3,084        

the treasurer of state for safekeeping with an authorized agent,   3,085        

selected by the treasurer of state, who is a qualified trustee     3,086        

under section 135.18 of the Revised Code.  The treasurer of state  3,087        

shall pay for the investments purchased by the retirement board    3,090        

on receipt of written or electronic instructions from the board    3,092        

or the board's designated agent authorizing the purchase and       3,094        

pending receipt of the evidence of title of the investment by the               

treasurer of state or the treasurer of state's authorized agent.   3,095        

The board may sell investments held by the board, and the          3,096        

treasurer of state or the treasurer of state's authorized agent    3,097        

shall accept payment from the purchaser and deliver evidence of    3,098        

title of the investment to the purchaser on receipt of written or  3,099        

electronic instructions from the board or the board's designated                

agent authorizing the sale, and pending receipt of the moneys for  3,102        

the investments.  The amount received shall be placed into the     3,104        

custodial funds.  The board and the treasurer of state may enter   3,105        

into agreements to establish procedures for the purchase and sale  3,106        

of investments under this division and the custody of the                       

investments.                                                       3,107        

                                                          70     


                                                                 
      (D)  No purchase or sale of any investment shall be made     3,110        

under this section except as authorized by the state teachers                   

retirement board.                                                  3,111        

      (E)  Any statement of financial position distributed by the  3,113        

board shall include the fair value, as of the statement date, of   3,116        

all investments held by the board under this section.                           

      Sec. 3307.111 3307.151.  The state teachers retirement       3,125        

system shall make no investments through, purchases from, or       3,128        

otherwise do any business with any individual who is, or any       3,129        

partnership, association, or corporation that is owned or                       

controlled by, a person, who within the preceding three years was  3,130        

employed by, an officer, or a board member of the system or in     3,131        

which a person, who within the preceding three years was employed  3,132        

by, a board member of, or an officer of the system holds a         3,133        

fiduciary, administrative, supervisory or trust position, or any   3,134        

other position in which such person would be involved, on behalf                

of his THE PERSON'S employer, in decisions or recommendations      3,136        

affecting the investment policy of the state teachers retirement   3,137        

system, and in which such person would benefit by any monetary     3,139        

gain.                                                                           

      Sec. 3307.14 3307.181.  (A)  Except as provided in division  3,148        

(B) of this section, a fiduciary shall not cause the state         3,150        

teachers retirement system to engage in a transaction, if he THE   3,151        

FIDUCIARY knows or should know that such transaction constitutes   3,153        

a direct or indirect:                                              3,154        

      (1)  Sale or exchange, or leasing, of any property between   3,156        

the system and a party in interest;                                3,157        

      (2)  Lending of money or other extension of credit between   3,159        

the system and a party in interest;                                3,160        

      (3)  Furnishing of goods, services, or facilities between    3,162        

the system and a party in interest;                                3,163        

      (4)  Transfer to, or use by or for the benefit of a party    3,165        

in interest, of any assets of the system; or                       3,166        

      (5)  Acquisition, on behalf of the system, of any employer   3,168        

                                                          71     


                                                                 
security or employer real property.                                3,169        

      (B)  Nothing in this section shall prohibit any transaction  3,171        

between the state teachers retirement system and any fiduciary or  3,172        

party in interest if:                                              3,173        

      (1)  All the terms and conditions of the transaction are     3,175        

comparable to the terms and conditions which might reasonably be   3,176        

expected in a similar transaction between similar parties who are  3,177        

not parties in interest; and                                       3,178        

      (2)  The transaction is consistent with the fiduciary        3,180        

duties described in Chapter 3307. of the Revised Code.             3,181        

      (C)  A fiduciary shall not:                                  3,183        

      (1)  Deal with the assets of the system in his THE           3,185        

FIDUCIARY'S own interest or for his THE FIDUCIARY'S own account;   3,187        

      (2)  In his THE FIDUCIARY'S individual or in any other       3,189        

capacity act in any transaction involving the system on behalf of  3,191        

a party (or represent a party) whose interests are adverse to the  3,192        

interests of the system or the interests of its participants or    3,193        

beneficiaries; or                                                  3,194        

      (3)  Receive any consideration for his THE FIDUCIARY'S own   3,196        

personal account from any party dealing with such system in        3,198        

connection with a transaction involving the assets of the system.  3,199        

      (D)  In addition to any liability which he THE FIDUCIARY     3,201        

may have under any other provision, a fiduciary with respect to    3,203        

the system shall be liable for a breach of fiduciary               3,204        

responsibility of any fiduciary with respect to the system in the  3,205        

following circumstances:                                           3,206        

      (1)  If he THE FIDUCIARY participates knowingly in, or       3,208        

knowingly undertakes to conceal, an act or omission of such other  3,209        

fiduciary, knowing such act or omission is a breach;               3,210        

      (2)  If, by his THE FIDUCIARY'S failure to comply with       3,212        

Chapter 3307. of the Revised Code, he THE FIDUCIARY has enabled    3,214        

such other fiduciary to commit a breach; or                        3,216        

      (3)  If he THE FIDUCIARY has knowledge of a breach by such   3,218        

other fiduciary, unless he THE FIDUCIARY makes reasonable efforts  3,219        

                                                          72     


                                                                 
under the circumstances to remedy the breach.                      3,221        

      (E)  Every fiduciary of the system shall be bonded or        3,223        

insured to an amount of not less than one million dollars for      3,224        

loss by reason of acts of fraud or dishonesty.                     3,225        

      Sec. 3307.19.  The state teachers retirement board shall     3,234        

provide for the maintenance of an individual account with FOR      3,235        

each contributor MEMBER showing the amount of his THE MEMBER'S     3,238        

contributions and the interest ANY accumulations thereon.  It      3,240        

shall collect and keep in convenient form such data as is          3,242        

necessary for the preparation of the required mortality and        3,243        

service tables, and for the compilation of such other information  3,244        

as is required for the actuarial valuation of the assets and       3,245        

liabilities of the various funds created by section 3307.65 of     3,246        

the Revised Code.  Upon the basis of the mortality and service     3,247        

experience of the members, retirants, and beneficiaries of the     3,248        

state teachers retirement system, and other system retirants       3,249        

contributing in accordance with section 3307.381 of the Revised    3,250        

Code, the board shall adopt the tables to be used for valuation    3,251        

purposes and for determining the amount of annuities to be         3,252        

allowed on the basis of the contributions.                         3,253        

      Sec. 3307.21 3307.20.  (A)  The treasurer of state shall     3,262        

furnish annually to the state teachers retirement board a sworn    3,264        

statement of the amount of the funds in the treasurer's custody    3,265        

belonging to the state teachers retirement system.                 3,266        

      (B)(1)  As used in this division, "personal SECTION:         3,268        

      (1)  "PERSONAL history record" means information maintained  3,271        

by the STATE TEACHERS RETIREMENT board on a member, former         3,272        

member, contributor, former contributor, retirant, or beneficiary  3,273        

that includes the address, telephone number, social security       3,274        

number, record of contributions, correspondence with the STATE     3,275        

TEACHERS RETIREMENT system, or other information the board         3,277        

determines to be confidential.                                                  

      (2)  "RETIRANT" HAS THE SAME MEANING AS IN SECTION 3307.50   3,279        

OF THE REVISED CODE.                                                            

                                                          73     


                                                                 
      (B)  The records of the board shall be open to public        3,281        

inspection, except for the following, which shall be excluded,     3,282        

except with the written authorization of the individual            3,283        

concerned:                                                         3,284        

      (a)(1)  The individual's personal records provided for in    3,286        

section 3307.29 3307.23 of the Revised Code;                       3,287        

      (b)(2)  The individual's personal history record;            3,289        

      (c)(3)  Any information identifying, by name and address,    3,291        

the amount of a monthly allowance or benefit paid to the           3,292        

individual.                                                                     

      (C)  All medical reports and recommendations under sections  3,294        

3307.42 3307.62, 3307.44 3307.64, and 3307.49 3307.66 of the       3,296        

Revised Code are privileged, except that copies of such medical    3,297        

reports or recommendations shall be made available to the          3,298        

personal physician, attorney, or authorized agent of the           3,299        

individual concerned upon written release received from the        3,300        

individual or the individual's agent, or, when necessary for the   3,301        

proper administration of the fund, to the board assigned           3,302        

physician.                                                                      

      (D)  Any person who is a member or contributor of the        3,304        

system shall be furnished, on written request, with a statement    3,306        

of the amount to the credit of the person's account.  The board    3,307        

need not answer more than one request of a person in any one       3,308        

year.                                                                           

      (E)  Notwithstanding the exceptions to public inspection in  3,310        

division (B)(2) of this section, the board may furnish the         3,311        

following information:                                             3,312        

      (1)  If a member, former member, retirant, contributor, or   3,314        

former contributor is subject to an order issued under section     3,315        

2907.15 of the Revised Code or is convicted of or pleads guilty    3,316        

to a violation of section 2921.41 of the Revised Code, on written  3,317        

request of a prosecutor as defined in section 2935.01 of the       3,318        

Revised Code, the board shall furnish to the prosecutor the        3,319        

information requested from the individual's personal history       3,320        

                                                          74     


                                                                 
record.                                                            3,321        

      (2)  Pursuant to a court or administrative order issued      3,323        

under section 3111.23 or 3113.21 of the Revised Code, the board    3,324        

shall furnish to a court or child support enforcement agency the   3,325        

information required under that section.                           3,326        

      (3)  At the written request of any person, the board shall   3,328        

provide to the person a list of the names and addresses of         3,329        

members, former members, retirants, contributors, former           3,330        

contributors, or beneficiaries.  The costs of compiling, copying,  3,331        

and mailing the list shall be paid by such person.                 3,332        

      (4)  Within fourteen days after receiving from the director  3,334        

of human services a list of the names and social security numbers  3,335        

of recipients of public assistance pursuant to section 5101.181    3,336        

of the Revised Code, the board shall inform the auditor of state   3,337        

of the name, current or most recent employer address, and social   3,338        

security number of each member whose name and social security      3,339        

number are the same as that of a person whose name or social       3,340        

security number was submitted by the director.  The board and its  3,341        

employees shall, except for purposes of furnishing the auditor of  3,342        

state with information required by this section, preserve the      3,343        

confidentiality of recipients of public assistance in compliance   3,344        

with division (A) of section 5101.181 of the Revised Code.         3,345        

      (F)  A statement that contains information obtained from     3,347        

the system's records that is signed by an officer of the           3,348        

retirement system and to which the system's official seal is       3,349        

affixed, or copies of the system's records to which the signature  3,350        

and seal are attached, shall be received as true copies of the     3,351        

system's records in any court or before any officer of this        3,352        

state.                                                             3,353        

      Sec. 3307.58 3307.21.  Each employer, before employing any   3,362        

teacher to whom sections 3307.01 to 3307.72, inclusive, of the     3,364        

Revised Code, THIS CHAPTER applies, shall notify such person of    3,366        

his THE PERSON'S duties and obligations under such sections as a   3,367        

condition of his THE PERSON'S employment.                          3,368        

                                                          75     


                                                                 
      Any such appointment or reappointment of any teacher in the  3,370        

public day schools of the state, or service upon indefinite        3,371        

tenure, shall be conditioned upon the teacher's acceptance of      3,372        

such sections THIS CHAPTER, as a part of the contract.             3,373        

      Sec. 3307.59 3307.211.  During September of each year, or    3,382        

at such other time as the state teachers retirement board          3,384        

approves, each employer shall certify to the board the names of    3,385        

all teachers to whom sections 3307.01 to 3307.72, inclusive, of    3,386        

the Revised Code, apply THIS CHAPTER APPLIES.                                   

      Sec. 3307.60 3307.212.  Each employer shall on the first     3,395        

day of each calendar month, or at such less frequent intervals as  3,397        

the state teachers retirement board approves, notify the board of  3,398        

the employment of new teachers, removals, withdrawals, and         3,399        

changes in compensation of teachers that have occurred during the  3,400        

month preceding or the period since the period covered by the                   

last notification.                                                 3,401        

      NOT LATER THAN TEN DAYS AFTER THE DATE OF HIRE, EACH         3,403        

EMPLOYER SHALL NOTIFY THE BOARD OF THE EMPLOYMENT OF A NEW         3,404        

TEACHER.  NOTICE SHALL BE ON A FORM PROVIDED BY THE BOARD.         3,405        

      Sec. 3307.63 3307.213.  Each employer shall keep such        3,414        

records and shall furnish such information and assistance to the   3,416        

state teachers retirement board as it requires in the discharge    3,417        

of its duties.                                                                  

      Sec. 3307.29 3307.23.  Each teacher, upon becoming           3,426        

employed, shall file a detailed statement of all his THE           3,428        

TEACHER'S previous service as a teacher and of such other service  3,429        

as comes under this chapter, and shall furnish such other facts    3,430        

as the state teachers retirement board requires for the proper     3,431        

operation of the state teachers retirement system.  If a teacher   3,432        

fails to file the required membership record within ninety days    3,433        

after becoming employed, the secretary shall so advise his THE     3,434        

TEACHER'S employer who shall thereafter withhold all salary        3,435        

payments to such teacher until such record is filed with the       3,436        

state teachers retirement board.                                   3,437        

                                                          76     


                                                                 
      Sec. 3307.30 3307.231.  To the extent to which it is used    3,446        

in determining the liability of any fund created by section        3,448        

3307.65 3307.14 of the Revised Code, the state teachers            3,449        

retirement board shall verify the statement provided for in        3,450        

section 3307.29 3307.23 of the Revised Code by the best evidence   3,452        

it is able to obtain.  If official records are not available as    3,453        

to the length of service, compensation, or other information       3,454        

required, the board may use its discretion as to the evidence to                

be accepted.                                                       3,455        

      Sec. 3307.27 3307.24.  The state teachers retirement board   3,464        

may deny the right to contribute or the right to become members    3,466        

to any class of teachers whose compensation is partly paid by the  3,467        

state, who are not serving on a per annum basis, who are on a      3,468        

temporary basis, or who are not required to have an educator       3,469        

license, and it may also make optional with teachers in any such                

class their right to contribute, or their right to individual      3,470        

entrance into membership.                                          3,471        

      The state teachers retirement board may at any time deny     3,473        

the right to contribute or the right to membership to any teacher  3,474        

whose compensation, though disbursed by an employer, is            3,475        

reimbursed to the employer, in whole or in part, from other than   3,476        

public funds.                                                                   

      Sec. 3307.26 3307.241.  Members of a local district pension  3,485        

system maintained under the laws of the state from appropriations  3,487        

or contributions made wholly or in part by any employer and        3,488        

existing on August 8, 1919, are hereby excluded from membership    3,489        

in the state teachers retirement system.                                        

      If a majority of all the teachers participating in any such  3,491        

local district pension system apply for membership in the state    3,492        

teachers retirement system by a petition duly signed and           3,493        

verified, approved by their employer, and filed with the state     3,494        

teachers retirement board, all the teachers included in the                     

membership of such local district pension system shall become      3,495        

members of the state teachers retirement system at such time       3,496        

                                                          77     


                                                                 
within three months after the filing of such petition and the      3,497        

compliance with sections 3307.01 to 3307.72, inclusive, of the     3,499        

Revised Code THIS CHAPTER, relative to the dissolution and         3,500        

discontinuance of such local district pension system as the board  3,501        

designates.                                                                     

      Sec. 3307.25.  (A)  A MEMBER WHOSE EMPLOYMENT AS A TEACHER   3,503        

BEGINS ON OR AFTER THE DATE ON WHICH THE STATE TEACHERS            3,504        

RETIREMENT BOARD ESTABLISHES A PLAN UNDER SECTION 3307.81 OF THE   3,506        

REVISED CODE SHALL MAKE AN ELECTION UNDER THIS SECTION.  NOT       3,507        

LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE DATE ON WHICH                      

EMPLOYMENT BEGINS, THE MEMBER SHALL ELECT TO PARTICIPATE EITHER    3,508        

IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE        3,509        

REVISED CODE OR THE PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE  3,511        

REVISED CODE.  IF A FORM EVIDENCING AN ELECTION UNDER THIS         3,513        

SECTION IS NOT ON FILE WITH THE EMPLOYER AT THE END OF THE                      

ONE-HUNDRED-EIGHTY-DAY PERIOD, THE MEMBER IS DEEMED TO HAVE        3,515        

ELECTED TO PARTICIPATE IN THE PLAN DESCRIBED IN SECTIONS 3307.50   3,517        

TO 3307.79 OF THE REVISED CODE.                                    3,518        

      (B)  AN ELECTION UNDER THIS SECTION SHALL BE MADE IN         3,520        

WRITING ON A FORM PROVIDED BY THE STATE TEACHERS RETIREMENT        3,521        

SYSTEM AND FILED WITH THE EMPLOYER'S PERSONNEL OFFICER.  PRIOR TO  3,522        

ACCEPTING AN ELECTION UNDER THIS SECTION, THE EMPLOYER SHALL       3,523        

INFORM THE MEMBER OF THE PROVISIONS OF SECTIONS 3307.88 AND        3,525        

3307.881 OF THE REVISED CODE.  NOT LATER THAN TEN DAYS AFTER       3,527        

RECEIVING THE FORM EVIDENCING THE ELECTION, THE EMPLOYER SHALL                  

TRANSMIT TO THE SYSTEM A COPY THAT INCLUDES A STATEMENT            3,528        

CERTIFYING THAT IT IS A TRUE AND ACCURATE COPY OF THE ORIGINAL.    3,529        

      (C)  AN ELECTION UNDER THIS SECTION SHALL TAKE EFFECT ON     3,531        

THE DATE EMPLOYMENT BEGAN AND, EXCEPT AS PROVIDED IN SECTION       3,532        

3307.88 OF THE REVISED CODE, IS IRREVOCABLE ON RECEIPT BY THE      3,533        

EMPLOYER.                                                          3,534        

      (D)  A MEMBER IS INELIGIBLE TO MAKE AN ELECTION UNDER THIS   3,536        

SECTION IF ONE OF THE FOLLOWING APPLIES:                           3,537        

      (1)  AT THE TIME EMPLOYMENT BEGINS, THE MEMBER IS ALREADY A  3,539        

                                                          78     


                                                                 
MEMBER OR CONTRIBUTOR PARTICIPATING IN THE PLAN DESCRIBED IN       3,540        

SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE OR A SUPERANNUATE  3,541        

OF THE SYSTEM;                                                     3,543        

      (2)  AN ELECTION TO PARTICIPATE IN AN ALTERNATIVE            3,545        

RETIREMENT PLAN UNDER SECTION 3305.05 OF THE REVISED CODE IS IN    3,546        

EFFECT FOR EMPLOYMENT COVERED BY THE SYSTEM.                       3,547        

      Sec. 3307.251.  AS USED IN THIS SECTION, "ACCUMULATED        3,549        

CONTRIBUTIONS" AND "TOTAL SERVICE CREDIT" HAVE THE SAME MEANINGS   3,550        

AS IN SECTION 3307.50 OF THE REVISED CODE.                         3,551        

      (A)  A MEMBER OF THE STATE TEACHERS RETIREMENT SYSTEM WHO,   3,553        

AS OF THE THIRTIETH DAY OF JUNE IMMEDIATELY PRECEDING THE DATE ON  3,555        

WHICH THE SYSTEM ESTABLISHES A PLAN UNDER SECTION 3307.81 OF THE   3,557        

REVISED CODE, HAS LESS THAN FIVE YEARS OF TOTAL SERVICE CREDIT IS  3,558        

ELIGIBLE TO MAKE AN ELECTION UNDER THIS SECTION.                                

      NOT LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE DAY THE     3,560        

BOARD FIRST ESTABLISHES A PLAN UNDER SECTION 3307.81 OF THE        3,562        

REVISED CODE, AN ELIGIBLE MEMBER MAY ELECT TO PARTICIPATE IN THE   3,564        

PLAN.  IF AN ELECTION IS NOT MADE, A MEMBER TO WHOM THIS SECTION                

APPLIES IS DEEMED TO HAVE ELECTED TO CONTINUE PARTICIPATING IN     3,565        

THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED   3,566        

CODE.                                                              3,567        

      (B)  AN ELECTION UNDER THIS SECTION SHALL BE MADE IN         3,569        

WRITING ON A FORM PROVIDED BY THE SYSTEM AND FILED WITH THE        3,570        

SYSTEM.  PRIOR TO ACCEPTING AN ELECTION UNDER THIS SECTION, THE    3,571        

SYSTEM SHALL INFORM THE MEMBER OF THE PROVISIONS OF SECTIONS       3,573        

3307.88 AND 3307.881 OF THE REVISED CODE.                                       

      (C)  ON RECEIPT OF AN ELECTION UNDER THIS SECTION, THE       3,575        

SYSTEM SHALL DO BOTH OF THE FOLLOWING:                             3,576        

      (1)  CREDIT TO THE ACCOUNT OF THE MEMBER IN THE DEFINED      3,578        

CONTRIBUTION FUND THE ACCUMULATED CONTRIBUTIONS STANDING TO THE    3,579        

MEMBER'S CREDIT IN THE TEACHERS' SAVINGS FUND, PLUS AN AMOUNT      3,580        

CALCULATED UNDER SECTION 3307.563 OF THE REVISED CODE;             3,581        

      (2)  CANCEL ALL SERVICE CREDIT AND ELIGIBILITY FOR ANY       3,583        

PAYMENT, BENEFIT, OR RIGHT UNDER THE PLAN DESCRIBED IN SECTIONS    3,584        

                                                          79     


                                                                 
3307.50 TO 3307.79 OF THE REVISED CODE.                            3,585        

      (D)  EXCEPT AS PROVIDED IN SECTION 3307.88 OF THE REVISED    3,588        

CODE, AN ELECTION UNDER THIS SECTION SHALL BE IRREVOCABLE ON       3,589        

RECEIPT BY THE SYSTEM.                                             3,590        

      Sec. 3307.252.  A MEMBER OF THE STATE TEACHERS RETIREMENT    3,592        

SYSTEM WHO ELECTS TO PARTICIPATE IN THE PLAN ESTABLISHED UNDER     3,593        

SECTION 3307.81 OF THE REVISED CODE SHALL BE INELIGIBLE FOR ANY    3,595        

BENEFIT OR PAYMENT UNDER SECTIONS 3307.50 TO 3307.79 OF THE        3,596        

REVISED CODE AND, EXCEPT AS PROVIDED IN SECTION 3307.88 OF THE     3,598        

REVISED CODE, SHALL BE FOREVER BARRED FROM CLAIMING OR PURCHASING  3,600        

SERVICE CREDIT WITH THE SYSTEM OR ANY OTHER OHIO STATE RETIREMENT  3,601        

SYSTEM, AS DEFINED IN SECTION 3307.741 OF THE REVISED CODE, FOR    3,602        

SERVICE COVERED BY THE ELECTION.                                   3,603        

      Sec. 3307.51 3307.26.  Each teacher shall contribute eight   3,612        

per cent of his THE TEACHER'S earned compensation to the           3,614        

teachers' savings fund, except that the state teachers retirement  3,616        

board may raise the contribution rate to the fund to a rate not    3,617        

greater than ten per cent of the teacher's earned compensation.    3,618        

Such FOR TEACHERS PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS  3,619        

3307.50 TO 3307.79 OF THE REVISED CODE, CONTRIBUTIONS SHALL BE     3,621        

DEPOSITED IN THE TEACHERS' SAVINGS FUND.  FOR TEACHERS             3,622        

PARTICIPATING IN THE PLAN ESTABLISHED UNDER SECTION 3307.81 OF     3,623        

THE REVISED CODE, CONTRIBUTIONS SHALL BE DEPOSITED IN THE DEFINED  3,625        

CONTRIBUTION FUND.                                                              

      THE contribution shall be deducted by the employer on each   3,629        

payroll in an amount equal to the applicable per cent of such THE  3,630        

contributors' paid compensation for such payroll period or other   3,631        

period as the state teachers retirement board may approve,         3,632        

provided all contributions on earned compensation are remitted to  3,633        

the state teachers retirement system by the thirtieth day of June  3,634        

of each year. Each school district shall encumber sufficient       3,635        

moneys by the thirtieth day of June of each year to account for    3,636        

the difference, if any, that may exist between contributions that  3,637        

would be withheld based upon compensation earned by a teacher      3,638        

                                                          80     


                                                                 
during the year ending the thirtieth day of June and the           3,639        

contributions withheld based upon compensation paid to the         3,640        

teacher for the year.  Deductions from payroll for contributions   3,641        

under this section, on an annual basis, shall not exceed eight     3,642        

per cent or other percentage established by the state teachers     3,643        

retirement board authorized by this section.                       3,644        

      At retirement UNDER THE PLAN DESCRIBED IN SECTIONS 3307.50   3,646        

TO 3307.79 OF THE REVISED CODE, or upon a member's death prior to  3,647        

retirement UNDER THAT PLAN, if contributions have been made after  3,648        

September 1, 1959, in excess of the contributions normally         3,650        

required to provide the retirement or survivor benefit, such THE   3,651        

excess contributions may be refunded to the member, to his THE     3,653        

MEMBER'S beneficiary, or to his THE MEMBER'S estate in a lump      3,655        

sum, or may be used to provide additional income.                               

      The board may determine with regard to any member            3,657        

PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO         3,658        

3307.79 OF THE REVISED CODE whether the limits established by      3,659        

division (B)(3)(C) of section 3307.38 3307.58 OF THE REVISED CODE  3,660        

have resulted in exclusion from use in the calculation of          3,662        

benefits under section 3307.38 3307.58, 3307.39 3307.59, or        3,664        

3307.50 3307.60 of the Revised Code of any compensation on which   3,665        

contributions have been made under this section.  The board may    3,666        

adopt rules in accordance with section 111.15 of the Revised Code  3,667        

providing for the disposition of contributions attributable to     3,668        

such compensation and may dispose of the contributions in          3,669        

accordance with those rules.  Any disposition of contributions     3,670        

made by the board in accordance with the rules shall be final.     3,671        

      The deductions UNDER THIS SECTION shall be made even though  3,673        

the minimum compensation provided by law for any teacher shall be  3,674        

reduced thereby.  Every teacher shall be deemed to consent to the  3,675        

deductions made and shall receipt in full for his THE TEACHER'S    3,676        

salary or compensation, and payment less the deductions shall be   3,678        

a complete discharge and acquittance of all claims and demands     3,679        

for the services rendered by the person during the period covered  3,680        

                                                          81     


                                                                 
by the payment.                                                    3,681        

      Additional deposits may be made to a member's account IN     3,683        

THE TEACHERS' SAVINGS FUND OR DEFINED CONTRIBUTION FUND, subject   3,685        

to rules of the board.  At retirement, the amount deposited with   3,686        

interest may be used to provide additional annuity income.  The    3,687        

additional deposits may be refunded to the member before           3,688        

retirement, and shall be refunded if the member withdraws his THE  3,689        

MEMBER'S refundable account.  The deposits may be refunded to the  3,690        

beneficiary or estate if the member dies before retirement.        3,691        

      Sec. 3307.511 3307.261.  Except as otherwise provided in     3,700        

section 124.385 of the Revised Code, any teacher who is granted    3,702        

disability leave pursuant to a program sponsored by his THE        3,703        

TEACHER'S employer, whereby the teacher receives a percentage of   3,704        

his THE TEACHER'S salary while on disability leave, shall not be   3,705        

required to make contributions for time off while on disability    3,706        

leave.                                                                          

      Except as otherwise provided in section 124.385 of the       3,708        

Revised Code, each employer described in division (A) of section   3,709        

3307.01 of the Revised Code who sponsors a disability leave        3,710        

program shall make the periodic employee and employer              3,711        

contributions, in the amounts set pursuant to sections 3307.51                  

3307.26 and 3307.53 3307.28 of the Revised Code, for teachers      3,713        

granted disability leave, based on the teacher's rate of pay in    3,715        

effect at the time disability leave was granted.                                

      Sec. 3307.27.  THE CONTRIBUTIONS REQUIRED UNDER SECTION      3,717        

3307.26 OF THE REVISED CODE MAY BE PAID BY THE EMPLOYER IN         3,718        

ACCORDANCE WITH DIVISION (h) OF SECTION 414 OF THE "INTERNAL       3,721        

REVENUE CODE OF 1986," 100 STAT. 2085, 26 U.S.C.A. 414(h), AS      3,724        

AMENDED.                                                                        

      Sec. 3307.53 3307.28.  Each employer shall pay annually to   3,733        

the employers' trust fund STATE TEACHERS RETIREMENT SYSTEM an      3,734        

amount certified by the secretary which shall be a certain per     3,736        

cent of the earnable compensation of all members, and which shall  3,737        

be known as the "employer contribution."  The FOR MEMBERS          3,738        

                                                          82     


                                                                 
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO         3,739        

3307.79 OF THE REVISED CODE, THE EMPLOYER CONTRIBUTION SHALL BE    3,741        

DEPOSITED INTO THE EMPLOYERS' TRUST FUND.  FOR MEMBERS                          

PARTICIPATING IN THE PLAN ESTABLISHED UNDER SECTION 3307.81 OF     3,743        

THE REVISED CODE, THE EMPLOYER CONTRIBUTION SHALL BE DEPOSITED     3,744        

INTO THE DEFINED CONTRIBUTION FUND IN ACCORDANCE WITH THE BENEFIT  3,745        

OPTION SELECTED BY THE MEMBER UNDER SECTION 3307.82 OF THE         3,747        

REVISED CODE, LESS THE AMOUNT TRANSFERRED UNDER SECTION 3307.84    3,748        

OF THE REVISED CODE.                                               3,749        

      THE rate per cent of such THE contribution shall be fixed    3,752        

by the actuary on the basis of his THE ACTUARY'S evaluation of     3,753        

the liabilities of the state teachers retirement system, not to    3,755        

exceed fourteen per cent, and shall be approved by the state       3,756        

teachers retirement board.  The state teachers retirement board    3,757        

may raise the rate per cent of the contribution to fourteen per    3,758        

cent of the earnable compensation of all members.  In making such  3,759        

evaluation, the actuary shall use, as the actuarial assumptions,   3,760        

such interest rates and mortality and other tables as are adopted  3,761        

by the state teachers retirement board.  He THE ACTUARY shall      3,762        

compute the percentage of such earnable compensation, to be known  3,764        

as the "employer rate," required annually to fund the liability    3,765        

for all benefits provided by this chapter UNDER SECTIONS 3307.50   3,766        

TO 3307.79 OF THE REVISED CODE, after deducting therefrom the      3,767        

annuity and other benefits provided by the member's accumulated    3,768        

contributions, AS DEFINED IN SECTION 3307.50 OF THE REVISED CODE,  3,769        

deposits, and other appropriations, and to fund any deficiencies   3,770        

in the various funds described in DIVISIONS (A) TO (F) OF section  3,772        

3307.65 3307.14 of the Revised Code.                               3,773        

      Sec. 3307.61 3307.29.  Each employer shall cause to be       3,782        

deducted, on each payroll of a contributor for each payroll        3,784        

period, the contribution payable by such contributor as provided   3,785        

in sections 3307.01 to 3307.72, inclusive, of the Revised Code     3,786        

THIS CHAPTER.  Each employer shall certify to the treasurer of     3,787        

said employer on each payroll a statement as voucher for the       3,788        

                                                          83     


                                                                 
amounts so deducted and for the amount of the normal contribution  3,789        

and the deficiency contribution payable by the employer.  Each     3,790        

employer shall send a duplicate of such statement to the                        

secretary of the state teachers retirement board.                  3,791        

      Sec. 3307.62 3307.291.  The treasurer of each employer, on   3,801        

receipt from the employer of the voucher for deductions from the   3,802        

compensation of teachers and for the contributions of the          3,803        

employer, shall transmit monthly or at such times as the state     3,805        

teachers retirement board designates the amounts specified in                   

such voucher to the secretary of the board.  The secretary of the  3,806        

board, after making a record of all such receipts, shall pay them  3,808        

to the treasurer of state for use according to sections 3307.01    3,810        

to 3307.72 of the Revised Code THIS CHAPTER.                       3,811        

      Sec. 3307.64 3307.30.  Employers who obtain funds directly   3,820        

by taxation shall levy annually such additional taxes as are       3,822        

required to provide the additional funds necessary to meet the     3,823        

financial requirements imposed upon them by sections 3307.01 to    3,824        

3307.72, inclusive, of the Revised Code THIS CHAPTER, and said     3,825        

tax shall be placed before and in preference to all other items    3,826        

except for sinking fund or interest purposes.                      3,827        

      Sec. 3307.56 3307.31.  Payments by boards of education to    3,836        

the employers' trust fund of the state teachers retirement         3,837        

system, as provided in sections 3307.61 3307.29 and 3307.62        3,838        

3307.291 of the Revised Code, shall be made from the amount        3,840        

allocated under Chapter 3317. of the Revised Code prior to its     3,841        

distribution to the individual school districts.  The amount due   3,842        

from each school district shall be certified by the secretary of   3,843        

the system to the superintendent of public instruction monthly,    3,844        

or at such times as may be determined by the state teachers        3,845        

retirement board.                                                               

      The superintendent shall deduct, from the amount allocated   3,847        

to each district under Chapter 3317. of the Revised Code, the      3,848        

entire amounts due to the system from such district upon the       3,849        

certification to him THE SUPERINTENDENT by the secretary thereof.  3,851        

                                                          84     


                                                                 
      The superintendent shall certify to the director of budget   3,853        

and management the amounts thus due the system for payment.        3,854        

      Sec. 3307.75 3307.32.  All amounts due the state teachers    3,863        

retirement system from the state treasury pursuant to this         3,865        

chapter shall be promptly paid upon warrant of the auditor of      3,866        

state pursuant to a voucher approved by the director of budget                  

and management.                                                    3,867        

      Sec. 3307.33.  MEMBERSHIP IN THE STATE TEACHERS RETIREMENT   3,869        

SYSTEM SHALL CEASE ON OCCURRENCE OF ANY OF THE FOLLOWING:          3,870        

RECEIPT OF PAYMENT PURSUANT TO SECTION 3307.56 OF THE REVISED      3,871        

CODE OR UNDER A PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE      3,873        

REVISED CODE; RETIREMENT AS PROVIDED IN SECTIONS 3307.58 AND       3,874        

3307.59 OF THE REVISED CODE OR UNDER A PLAN ESTABLISHED UNDER      3,876        

SECTION 3307.81 OF THE REVISED CODE; DEATH; OR DENIAL OF           3,877        

MEMBERSHIP PURSUANT TO SECTION 3307.24 OF THE REVISED CODE.        3,878        

      Sec. 3307.381 3307.35.  (A)  As used in this section:        3,887        

      (1)  "Superannuate" means a former teacher receiving a       3,889        

service retirement allowance under section 3307.38 or 3307.39 of   3,890        

the Revised Code from the state teachers retirement system or a    3,891        

combined service retirement benefit paid in accordance with        3,892        

section 3307.41 of the Revised Code, regardless of which           3,893        

retirement system is paying the benefit.                           3,894        

      (2), "Other OTHER system retirant" means a member or former  3,897        

member of the public employees retirement system, Ohio police and  3,899        

fire pension fund, school employees retirement system, state       3,901        

highway patrol retirement system, or Cincinnati retirement system  3,902        

who is receiving age and service or commuted age and service       3,903        

retirement, or a disability benefit from a system of which the     3,904        

retirant is a member or former member.                                          

      (B)  A superannuate may be employed for temporary service    3,906        

as a teacher, provided:                                            3,907        

      (1)  At least two months have elapsed since the effective    3,909        

date of the superannuate's retirement UNDER THIS CHAPTER.          3,910        

      (2)  Such employment does not exceed eighty-five school      3,912        

                                                          85     


                                                                 
days, or the equivalent thereof in fractional service, during any  3,913        

school year.                                                       3,914        

      (C)  A superannuate may be employed as a full-time teacher,  3,916        

provided:                                                          3,917        

      (1)  The superannuate has received a retirement AN           3,919        

allowance OR BENEFIT from the state teachers retirement system     3,922        

UNDER THIS CHAPTER for at least eighteen months.                   3,923        

      (2)  The employer requests the retirement board of the       3,925        

state teachers retirement system to authorize such employment.     3,926        

      (D)  An other system retirant may be employed as a teacher,  3,928        

provided at least two months have elapsed since the effective      3,929        

date of the retirant's retirement or receipt of a disability       3,930        

benefit.                                                           3,931        

      (E)  If a superannuate or other system retirant is employed  3,933        

in accordance with division (B), (C), or (D) of this section, the  3,935        

superannuate or retirant shall contribute to the state teachers                 

retirement system in accordance with section 3307.51 3307.26 of    3,937        

the Revised Code and the employer shall contribute in accordance   3,939        

with sections 3307.53 3307.28 and 3307.56 3307.31 of the Revised   3,941        

Code.  Such contributions shall be received as specified in        3,943        

section 3307.65 3307.14 of the Revised Code.  A superannuate or    3,945        

other system retirant employed as a teacher is not a member of     3,946        

the state teachers retirement system, does not have any of the     3,947        

rights, privileges, or obligations of membership, except as        3,948        

provided in this section, and is not eligible to receive health,   3,949        

medical, hospital, or surgical benefits under section 3307.74      3,950        

3307.39 of the Revised Code for employment subject to this         3,952        

section.                                                                        

      (F)  The employer that employs a superannuate or other       3,954        

system retirant shall notify the state teachers retirement board   3,955        

of the employment not later than the end of the month in which     3,956        

the employment commences.  Any overpayment of benefits to a        3,957        

superannuate by the retirement system resulting from an            3,958        

employer's failure to give timely notice may be charged to the     3,959        

                                                          86     


                                                                 
employer and may be certified and deducted as provided in section  3,960        

3307.56 3307.31 of the Revised Code.                               3,961        

      (G)  On receipt of notice from an employer that a person     3,963        

who is an other system retirant has been employed, the state       3,964        

teachers retirement system shall notify the state retirement       3,965        

system of which the other system retirant was a member of such     3,966        

employment.                                                        3,967        

      (H)  A superannuate or other system retirant who has         3,969        

received a retirement AN allowance or disability benefit for less  3,972        

than the applicable period under division (B), (C), or (D) of      3,973        

this section when employment as a teacher commences shall forfeit  3,975        

the retirement allowance or disability benefit for any month the   3,977        

superannuate or retirant is employed prior to the expiration of    3,978        

such period.  Contributions shall be made to the retirement        3,979        

system from the first day of such employment, but service and      3,980        

contributions for that period shall not be used in the             3,981        

calculation of any benefit payable to the superannuate or other    3,982        

system retirant, and those contributions shall be refunded on the  3,983        

superannuate's or retirant's death or termination of the           3,985        

employment.  Contributions made on compensation earned after the   3,986        

expiration of such period shall be used in calculation of the                   

benefit or payment due under this section.                         3,987        

      (I)  On receipt of notice from the Ohio police and fire      3,990        

pension fund, public employees retirement system, or school        3,992        

employees retirement system of the re-employment of a                           

superannuate, the state teachers retirement system shall not pay,  3,993        

or if paid shall recover, the amount to be forfeited by the        3,994        

superannuate in accordance with section 145.38, 742.26, or         3,995        

3309.341 of the Revised Code.                                      3,996        

      (J)(1)  On termination of employment under this section, a   3,998        

superannuate or other system retirant may file an application      3,999        

with the state teachers retirement system for a benefit under      4,000        

this division, which shall consist of a single life annuity        4,001        

having a reserve equal to the amount of the superannuate's or      4,002        

                                                          87     


                                                                 
retirant's accumulated contributions, AS DEFINED IN SECTION        4,004        

3307.50 OF THE REVISED CODE, for the period of employment and an   4,005        

equal amount from the employers' trust created by section 3307.65  4,006        

3307.14 of the Revised Code, plus interest credited to the date    4,008        

of retirement at the then current actuarial rate of interest.      4,009        

The superannuate or other system retirant shall elect either to    4,010        

receive the benefit as a monthly annuity for life or a lump-sum    4,011        

payment discounted to the present value using the current          4,012        

actuarial assumption rate of interest, except that if the monthly  4,013        

annuity would be less than twenty-five dollars per month the       4,015        

superannuate or retirant shall receive a lump-sum payment.         4,017        

      (2)  A benefit payable under this division shall commence    4,019        

on the latest of the following:                                    4,020        

      (a)  The last day for which compensation for employment as   4,022        

a teacher was paid;                                                4,023        

      (b)  Attainment by the superannuate or other system          4,025        

retirant of age sixty-five;                                        4,026        

      (c)  If the superannuate or other system retirant was        4,028        

previously employed under this section and previously received or  4,029        

is receiving a benefit under this division, completion of a        4,030        

period of twelve months since the effective date of the last       4,031        

benefit under this division.                                       4,032        

      (3)(a)  If a superannuate or other system retirant dies      4,034        

while employed in employment subject to this section, a lump-sum   4,035        

payment calculated in accordance with division (J)(1) of this      4,036        

section shall be paid to the beneficiary designated under          4,037        

division (D) of section 3307.48 3307.562 of the Revised Code.      4,038        

      (b)  If at the time of death a superannuate or other system  4,041        

retirant receiving a monthly annuity has received less than the    4,042        

superannuate or retirant would have received as a lump-sum         4,043        

payment, the difference between the amount received and the        4,044        

amount that would have been received as a lump-sum payment shall   4,046        

be paid to the superannuate's or retirant's beneficiary            4,047        

designated under division (D) of section 3307.48 3307.562 of the   4,049        

                                                          88     


                                                                 
Revised Code.                                                      4,050        

      (4)  No amount received under this section shall be          4,052        

included in determining an additional benefit under section        4,053        

3307.403 3307.67 of the Revised Code or any other post-retirement  4,055        

benefit increase.                                                  4,056        

      (K)  If the disability benefit of an other system retirant   4,058        

employed under this section is terminated, the retirant shall      4,059        

become a member of the state teachers retirement system,           4,061        

effective on the first day of the month next following the         4,062        

termination, with all the rights, privileges, and obligations of   4,063        

membership.  If such person, after the termination of the          4,064        

retirant's disability benefit, earns two years of service credit   4,066        

under this retirement system or under the public employees         4,067        

retirement system, Ohio police and fire pension fund, school       4,068        

employees retirement system, or state highway patrol retirement    4,070        

system, the retirant's prior contributions as an other system      4,072        

retirant under this section shall be included in the retirant's    4,073        

total service credit, AS DEFINED IN SECTION 3307.50 OF THE         4,074        

REVISED CODE, as a state teachers retirement system member, and    4,076        

the retirant shall forfeit all rights and benefits of this         4,078        

section.  Not more than one year of credit may be given for any    4,079        

period of twelve months.                                                        

      (L)  A superannuate shall not receive the pension portions   4,081        

of a retirement AN allowance, AS DEFINED IN SECTION 3307.50 OF     4,083        

THE REVISED CODE, for any period for which the superannuate is     4,084        

compensated under a private contract, or through an independent    4,085        

contractor, whereby the superannuate is to perform personal or     4,087        

professional services for the employer by which the superannuate   4,088        

was employed at the time of retirement.                            4,090        

      (M)  This section does not affect the receipt of benefits    4,092        

by or eligibility for benefits of any person who on August 20,     4,093        

1976, was receiving a disability benefit or service retirement     4,094        

pension or allowance from a state or municipal retirement system   4,095        

in Ohio and was a member of any other state or municipal           4,096        

                                                          89     


                                                                 
retirement system of this state.                                   4,097        

      (N)  The retirement board of the state teachers retirement   4,099        

system BOARD may make the necessary rules to carry into effect     4,100        

this section and to prevent the abuse of the rights and            4,102        

privileges thereunder.                                             4,103        

      Sec. 3307.72 3307.37.  (A)  Notwithstanding any other        4,112        

provision of this chapter, any payment that is to be made under a  4,114        

pension, annuity, allowance, or other type of benefit PAYABLE      4,115        

UNDER THIS CHAPTER, other than a survivorship benefit, that has    4,117        

been granted to a person under this chapter, any payment of        4,118        

accumulated contributions standing to a person's credit under      4,119        

this chapter, and any payment of any other amounts to be paid to   4,120        

a person under this chapter upon the person's withdrawal of        4,121        

contributions pursuant to this chapter shall be subject to any     4,122        

withholding order issued pursuant to section 2907.15 of the                     

Revised Code or division (C)(2)(b) of section 2921.41 of the       4,123        

Revised Code, and the state teacher's retirement board shall       4,124        

comply with that withholding order in making the payment.          4,125        

      (B)  Notwithstanding any other provision of this chapter,    4,127        

if the board receives notice pursuant to section 2907.15 of the    4,128        

Revised Code or division (D) of section 2921.41 of the Revised     4,129        

Code that a person who has accumulated contributions standing to   4,130        

the person's credit pursuant to this chapter is charged with a     4,132        

violation of section 2907.02, 2907.03, 2907.04, 2907.05, or        4,133        

2921.41 of the Revised Code, no payment of those accumulated       4,134        

contributions, of any other amounts to be paid under this chapter  4,135        

upon the person's withdrawal of contributions pursuant to this     4,136        

chapter, or of any amount to be paid as a lump sum or single       4,138        

payment under section 3307.381 3307.35 of the Revised Code shall   4,139        

be made prior to whichever of the following is applicable:         4,141        

      (1)  If the person is convicted of or pleads guilty to the   4,143        

charge and no motion for a withholding order for purposes of       4,144        

restitution has been filed under section 2907.15 of the Revised    4,145        

Code or division (C)(2)(b)(i) of section 2921.41 of the Revised    4,147        

                                                          90     


                                                                 
Code, thirty days after the day on which final disposition of the  4,148        

charge is made;                                                                 

      (2)  If the person is convicted of or pleads guilty to the   4,150        

charge and a motion for a withholding order for purposes of        4,151        

restitution has been filed under section 2907.15 of the Revised    4,153        

Code or division (C)(2)(b)(i) of section 2921.41 of the Revised    4,155        

Code, the day on which the court decides the motion;               4,156        

      (3)  If the charge is dismissed or the person is found not   4,158        

guilty or not guilty by reason of insanity of the charge, the day  4,159        

on which final disposition of the charge is made.                  4,160        

      Sec. 3307.74 3307.39.  (A)  The state teachers retirement    4,169        

board may enter into an agreement with insurance companies,        4,171        

health insuring corporations, or government agencies authorized    4,173        

to do business in the state for issuance of a policy or contract   4,174        

of health, medical, hospital, or surgical benefits, or any         4,175        

combination thereof, for those individuals receiving, UNDER THE    4,176        

PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED       4,177        

CODE, service retirement or a disability or survivor benefit       4,179        

subscribing WHO SUBSCRIBE to the plan.  Notwithstanding any other  4,180        

provision of this chapter, the policy or contract may also         4,181        

include coverage for any eligible individual's spouse and          4,182        

dependent children and for any of the individual's sponsored       4,183        

dependents as the board considers appropriate.  If all or any      4,185        

portion of the policy or contract premium is to be paid by any     4,186        

individual receiving service retirement or a disability or         4,187        

survivor benefit, the individual shall, by written authorization,  4,188        

instruct the board to deduct the premium agreed to be paid by the  4,190        

individual to the companies, corporations, or agencies.            4,191        

      The board may contract for coverage on the basis of part or  4,194        

all of the cost of the coverage to be paid from appropriate funds  4,195        

of the state teachers retirement system.  The cost paid from the   4,196        

funds of the system shall be included in the employer's            4,198        

contribution rate provided by section 3307.53 3307.28 of the       4,199        

Revised Code.                                                      4,200        

                                                          91     


                                                                 
      THE BOARD MAY ENTER INTO AN AGREEMENT UNDER THIS DIVISION    4,202        

FOR COVERAGE OF RECIPIENTS OF BENEFITS UNDER A PLAN ESTABLISHED    4,203        

UNDER SECTION 3307.81 OF THE REVISED CODE IF THE PLAN SELECTED     4,204        

INCLUDES HEALTH, MEDICAL, HOSPITAL, OR SURGICAL BENEFITS, OR ANY   4,205        

COMBINATION THEREOF.  THE BOARD MAY CONTRACT FOR COVERAGE ON THE   4,206        

BASIS THAT THE COST OF THE COVERAGE WILL BE PAID BY THE            4,208        

RECIPIENT.  THE BOARD MAY OFFER TO RECIPIENTS PLANS THAT PROVIDE   4,209        

FOR DIFFERENT LEVELS OF COVERAGE OR FOR PREPAYMENT OF THE COST OF  4,210        

COVERAGE.                                                                       

      The board may provide for self-insurance of risk or level    4,212        

of risk as set forth in the contract with the companies,           4,213        

corporations, or agencies, and may provide through the             4,214        

self-insurance method specific benefits as authorized by the       4,215        

rules of the board.                                                4,216        

      (B)  If the board provides health, medical, hospital, or     4,218        

surgical benefits through any means other than a health insuring   4,220        

corporation, it shall offer to each individual eligible for the    4,222        

benefits the alternative of receiving benefits through enrollment  4,223        

in a health insuring corporation, if all of the following apply:   4,225        

      (1)  The health insuring corporation provides health care    4,228        

services in the geographical area in which the individual lives;   4,230        

      (2)  The eligible individual was receiving health care       4,232        

benefits through a health maintenance organization or a health     4,234        

insuring corporation before retirement;                            4,235        

      (3)  The rate and coverage provided by the health insuring   4,238        

corporation to eligible individuals is comparable to that          4,241        

currently provided by the board under division (A) of this                      

section.  If the rate or coverage provided by the health insuring  4,243        

corporation is not comparable to that currently provided by the    4,245        

board under division (A) of this section, the board may deduct     4,246        

the additional cost from the eligible individual's monthly         4,247        

benefit.                                                                        

      The health insuring corporation shall accept as an enrollee  4,251        

any eligible individual who requests enrollment.                                

                                                          92     


                                                                 
      The board shall permit each eligible individual to change    4,253        

from one plan to another at least once a year at a time            4,254        

determined by the board.                                           4,255        

      (C)  The board shall, beginning the month following receipt  4,257        

of satisfactory evidence of the payment for coverage, make a       4,258        

monthly payment to each recipient of service retirement, or a      4,259        

disability or survivor benefit under the state teachers            4,260        

retirement system PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79    4,261        

OF THE REVISED CODE who is eligible for insurance coverage under   4,262        

part B of "The Social Security Amendments of 1965," 79 Stat. 301,  4,263        

42 U.S.C.A. 1395j, as amended.  The payment shall be the greater   4,265        

of the following:                                                               

      (1)  Twenty-nine dollars and ninety cents;                   4,267        

      (2)  An amount determined by multiplying the basic premium   4,270        

for the coverage by a percentage, not exceeding ninety per cent,   4,271        

determined by multiplying the years of service used in             4,272        

calculating the service retirement or benefit by a percentage      4,273        

determined by the board not exceeding three per cent.              4,274        

      (D)  The board shall establish by rule requirements for the  4,276        

coordination of any coverage, payment, or benefit provided under   4,278        

this section or section 3307.405 3307.61 of the Revised Code with  4,280        

any similar coverage, payment, or benefit made available to the    4,281        

same individual by the public employees retirement system, Ohio    4,282        

police and fire pension fund, school employees retirement system,  4,284        

or state highway patrol retirement system.                         4,285        

      (E)  The board shall make all other necessary rules          4,287        

pursuant to the purpose and intent of this section.                4,288        

      Sec. 3307.741 3307.391.  The state teachers retirement       4,297        

board shall establish a program under which members of the STATE   4,299        

TEACHERS retirement system, employers on behalf of members, and    4,301        

persons receiving service, disability, or survivor benefits UNDER  4,302        

THIS CHAPTER are permitted to participate in contracts for         4,304        

long-term health care insurance.  Participation may include        4,305        

dependents and family members.  If a participant in a contract     4,306        

                                                          93     


                                                                 
for long-term care insurance leaves employment, the participant    4,307        

and the participant's dependents and family members may, at their  4,309        

election, continue to participate in a program established under   4,310        

this section in the same manner as if the participant had not      4,311        

left employment, except that no part of the cost of the insurance  4,313        

shall be paid by the participant's former employer.                4,314        

      Such program may be established independently or jointly     4,316        

with one or more of the other retirement systems.  For purposes    4,317        

of this section, "retirement systems" has the same meaning as in   4,318        

division (A) of section 145.581 of the Revised Code.               4,319        

      The board may enter into an agreement with insurance         4,321        

companies, health insuring corporations, or government agencies    4,323        

authorized to do business in the state for issuance of a           4,324        

long-term care insurance policy or contract.   However, prior to   4,325        

entering into such an agreement with an insurance company or       4,326        

health insuring corporation, the board shall request the           4,327        

superintendent of insurance to certify the financial condition of  4,330        

the company or corporation.  The board shall not enter into the    4,331        

agreement if, according to that certification, the company or      4,332        

corporation is insolvent, is determined by the superintendent to   4,333        

be potentially unable to fulfill its contractual obligations, or   4,335        

is placed under an order of rehabilitation or conservation by a    4,336        

court of competent jurisdiction or under an order of supervision   4,337        

by the superintendent.                                             4,338        

      The board shall adopt rules in accordance with section       4,340        

111.15 of the Revised Code governing the program.  The rules       4,341        

shall establish methods of payment for participation under this    4,342        

section, which may include establishment of a payroll deduction    4,343        

plan under section 3307.281 3307.70 of the Revised Code,           4,344        

deduction of the full premium charged from a person's service,     4,346        

disability, or survivor benefit, or any other method of payment    4,347        

considered appropriate by the board.  If the program is            4,348        

established jointly with one or more of the other retirement       4,349        

systems, the rules also shall establish the terms and conditions   4,350        

                                                          94     


                                                                 
of such joint participation.                                       4,351        

      Sec. 3307.40 3307.392.  (A)  Upon the death of a retirant    4,360        

or disability benefit recipient who at the time of death is        4,362        

receiving a service retirement allowance or disability benefit     4,363        

pursuant to this chapter, a lump sum payment of one thousand       4,364        

dollars shall be paid to any designated or qualified beneficiary   4,365        

under division (D) of section 3307.48 of the Revised Code, or if   4,366        

none, the state teachers retirement board may approve payment to   4,367        

either the person responsible for the burial expenses or to the    4,368        

decedent's estate following the completion of an application on a  4,369        

form approved by the board.                                        4,370        

      (B)  The state teachers retirement board may establish a     4,372        

death benefit plan providing for a lump sum payment to eligible    4,373        

beneficiaries, in addition to the lump sum payment made under      4,374        

division (A) of this section 3307.661 OF THE REVISED CODE, on the  4,375        

death of a person receiving a service retirement AN allowance or   4,378        

disability benefit pursuant to this chapter.  Any plan             4,380        

established under this division SECTION shall be administered      4,382        

separately from any other benefit or plan governed by this         4,383        

chapter and shall require that charges paid by participants cover  4,384        

the additional liability resulting from the death benefit as       4,385        

determined by an actuary employed by the board. Participation      4,386        

shall be limited to persons receiving a service retirement AN      4,387        

allowance or disability benefit pursuant to this chapter.          4,389        

      The board shall establish charges and conditions of          4,391        

eligibility for participation in any plan established under this   4,392        

division SECTION.  A person who elects to participate in a plan    4,393        

by written authorization shall instruct the board to deduct the    4,395        

amount charged under the plan from his service retirement THE      4,397        

PERSON'S allowance or disability benefit.  The board may enter     4,398        

into contracts with insurance companies, financial institutions,   4,399        

or other entities for the purpose of providing a death benefit     4,400        

plan under this division SECTION.                                  4,401        

      Sec. 3307.71 3307.41.  The right of a person to a pension,   4,410        

                                                          95     


                                                                 
an annuity, or a retirement allowance itself, any optional         4,413        

benefit, OR any other right OR BENEFIT accrued or accruing to any  4,415        

person, under sections 3307.01 to 3307.74 of the Revised Code                   

THIS CHAPTER, or the various funds created by section 3307.65      4,418        

3307.14 of the Revised Code and all moneys and investments and     4,420        

income thereof, are exempt from any state tax, except the tax                   

imposed by section 5747.02 of the Revised Code and are exempt      4,422        

from any county, municipal, or other local tax, except taxes       4,423        

imposed pursuant to section 5748.02 or 5748.08 of the Revised      4,424        

Code and, except as provided in sections 3111.23, 3113.21, and     4,426        

3307.72 3307.37 of the Revised Code, shall not be subject to       4,427        

execution, garnishment, attachment, the operation of bankruptcy    4,428        

or insolvency laws, or any other process of law whatsoever, and    4,429        

shall be unassignable except as specifically provided in THIS      4,430        

CHAPTER OR sections 3111.23, AND 3113.21, and 3307.01 to 3307.74   4,431        

of the Revised Code.                                               4,432        

      Sec. 3307.711 3307.42.  The granting TO ANY PERSON of a      4,442        

retirement AN allowance, annuity, or pension to any person, AS     4,443        

DEFINED IN SECTION 3307.50 OF THE REVISED CODE, OR THE GRANTING                 

OF A BENEFIT UNDER THE PLAN DESCRIBED IN SECTIONS 3307.80 TO       4,444        

3307.89 OF THE REVISED CODE, pursuant to AN action of the state    4,445        

teachers' retirement board vests a right in such person, so long   4,447        

as he THE PERSON remains the beneficiary of any of the funds       4,449        

established by section 3307.65 3307.14 of the Revised Code, to     4,450        

receive such retirement THE allowance, annuity, or pension, OR     4,451        

BENEFIT at the rate fixed at the time of granting such retirement  4,453        

THE allowance, annuity, or pension, OR BENEFIT.  Such right shall  4,454        

also be vested with equal effect in the beneficiary of a grant     4,455        

heretofore made from any of the funds named in section 3307.65     4,456        

3307.14 of the Revised Code.                                       4,457        

      Sec. 3307.712 3307.44.  (A)  Any person who is receiving an  4,466        

allowance, AS DEFINED IN SECTION 3307.50 OF THE REVISED CODE,      4,467        

benefit, or any increase under this chapter may, at any time,      4,469        

waive his THE PERSON'S rights thereto, or to a portion thereof,    4,470        

                                                          96     


                                                                 
by filing a written notice of waiver with the state teachers       4,471        

retirement board.  Except as provided in division (B) of this      4,472        

section, such waiver shall remain in effect until the first day    4,473        

of the month following his THE PERSON'S death or the filing of     4,474        

his THE PERSON'S written cancellation of such waiver with the      4,476        

state teachers retirement board.  Any amount so waived shall       4,477        

forever be forfeited.                                                           

      (B)  If a beneficiary waives in writing all claim to any     4,479        

benefits under this chapter prior to receipt of the first          4,480        

benefit, the waiver shall put into effect the succession of        4,481        

beneficiaries as provided in division (C) of section 3307.48       4,482        

3307.562 of the Revised Code and shall be irrevocable.             4,484        

      Sec. 3307.4012 3307.46.  Whenever the limits established by  4,493        

section 415 of the "Internal Revenue Code of 1986," 100 Stat.      4,495        

2085, 26 U.S.C.A. 415, as amended, are raised, the state teachers  4,496        

retirement board may increase the amount of the pension, benefit,  4,497        

or allowance of any person whose pension, benefit, or allowance    4,498        

payable under section 3307.38 3307.58, 3307.39 3307.59, 3307.403   4,499        

3307.63, 3307.43 3307.631, or 3307.431 3307.67 of the Revised      4,501        

Code OR THE PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE REVISED  4,502        

CODE was limited by the application of section 415.  The amount    4,504        

of the increased pension, benefit, or allowance shall not exceed                

the lesser of the amount the person would have received if the     4,505        

limits established by section 415 had not been applied or the      4,506        

amount the person is eligible to receive subject to the new        4,507        

limits established by section 415.                                              

      Sec. 3307.751 3307.47.  If a member, former member,          4,516        

contributor, former contributor, retirant, or beneficiary PERSON   4,518        

is paid any benefit by the state teachers retirement system UNDER  4,520        

THE PLANS DESCRIBED IN SECTION 3307.031 OF THE REVISED CODE to                  

which he THE PERSON is not entitled, the benefit shall be repaid   4,523        

to the retirement system by him THE PERSON.  If he THE PERSON      4,525        

fails to make the repayment, the retirement system shall withhold  4,526        

the amount due from any benefit due him THE PERSON or his THE      4,527        

                                                          97     


                                                                 
PERSON'S beneficiary under this chapter, or may collect the        4,528        

amount in any other manner provided by law.                        4,529        

      Sec. 3307.50.  AS USED IN SECTIONS 3307.50 TO 3307.79 OF     4,531        

THE REVISED CODE:                                                  4,533        

      (A)  "PRIOR SERVICE" MEANS ALL SERVICE AS A TEACHER BEFORE   4,535        

SEPTEMBER 1, 1920, MILITARY SERVICE CREDIT, ALL SERVICE PRIOR TO   4,536        

SEPTEMBER 1, 1920, AS AN EMPLOYEE OF ANY EMPLOYER WHO COMES        4,537        

WITHIN THE PUBLIC EMPLOYEES RETIREMENT SYSTEM, THE SCHOOL          4,538        

EMPLOYEES RETIREMENT SYSTEM, OR ANY OTHER STATE RETIREMENT SYSTEM  4,539        

ESTABLISHED UNDER THE LAWS OF OHIO, AND SIMILAR SERVICE IN         4,540        

ANOTHER STATE, CREDIT FOR WHICH WAS PROCURED BY A MEMBER UNDER     4,541        

FORMER SECTION 3307.33 OF THE REVISED CODE, PRIOR TO JUNE 25,      4,543        

1945.  PRIOR SERVICE CREDIT SHALL NOT BE GRANTED TO ANY MEMBER     4,544        

FOR SERVICE FOR WHICH CREDIT OR BENEFITS HAVE BEEN RECEIVED IN     4,545        

ANY OTHER STATE RETIREMENT SYSTEM IN OHIO OR FOR CREDIT THAT WAS   4,546        

FORFEITED BY WITHDRAWAL OF CONTRIBUTIONS, UNLESS THE CREDIT HAS    4,547        

BEEN RESTORED.  IF THE TEACHER SERVED AS AN EMPLOYEE IN ANY TWO    4,548        

OR ALL OF THE CAPACITIES, "PRIOR SERVICE" MEANS THE TOTAL          4,549        

COMBINED SERVICE IN THE CAPACITIES PRIOR TO SEPTEMBER 1, 1920.     4,550        

      IF A TEACHER WHO HAS BEEN GRANTED PRIOR SERVICE CREDIT FOR   4,552        

SERVICE RENDERED PRIOR TO SEPTEMBER 1, 1920, AS AN EMPLOYEE OF AN  4,553        

EMPLOYER WHO COMES WITHIN THE PUBLIC EMPLOYEES RETIREMENT SYSTEM   4,554        

OR THE SCHOOL EMPLOYEES RETIREMENT SYSTEM, ESTABLISHES,            4,555        

SUBSEQUENT TO SEPTEMBER 16, 1957, AND BEFORE RETIREMENT, THREE     4,556        

YEARS OF CONTRIBUTING SERVICE IN THE PUBLIC EMPLOYEES RETIREMENT   4,557        

SYSTEM, OR ONE YEAR IN THE SCHOOL EMPLOYEES RETIREMENT SYSTEM,     4,558        

THE PRIOR SERVICE CREDIT GRANTED SHALL BECOME, AT RETIREMENT, THE  4,560        

LIABILITY OF THE OTHER SYSTEM IF THE PRIOR SERVICE OR EMPLOYMENT   4,562        

WAS IN A CAPACITY COVERED BY THAT SYSTEM.                                       

      (B)  "TOTAL SERVICE," "TOTAL SERVICE CREDIT," EXCEPT AS      4,564        

PROVIDED IN SECTION 3307.57 OF THE REVISED CODE, OR "OHIO SERVICE  4,566        

CREDIT" MEANS ALL SERVICE OF A MEMBER OF THE STATE TEACHERS        4,567        

RETIREMENT SYSTEM SINCE LAST BECOMING A MEMBER AND, IN ADDITION    4,568        

THERETO, RESTORED SERVICE CREDIT UNDER SECTION 3307.71 OF THE      4,569        

                                                          98     


                                                                 
REVISED CODE, ALL PRIOR SERVICE CREDIT, ALL MILITARY SERVICE       4,572        

CREDIT COMPUTED AS PROVIDED IN THIS CHAPTER, AND ALL OTHER         4,573        

SERVICE CREDIT ESTABLISHED UNDER SECTIONS 3307.26, FORMER          4,575        

3307.513, FORMER 3307.514, 3307.53, 3307.54, 3307.72, 3307.73,     4,576        

3307.74, 3307.76, 3307.761, 3307.77, 3307.771, AND 33.07.78 AND    4,577        

FORMER SECTION 3307.52 OF THE REVISED CODE, AND SECTION 3 OF       4,579        

AMENDED SUBSTITUTE SENATE BILL NO. 530 OF THE 114TH GENERAL        4,580        

ASSEMBLY.  ALL SERVICE CREDIT PURCHASED UNDER SECTION 3307.741 OF  4,583        

THE REVISED CODE SHALL BE USED EXCLUSIVELY FOR THE PURPOSE OF      4,585        

QUALIFYING FOR SERVICE RETIREMENT.                                 4,586        

      (C)(1)  "SERVICE RETIREMENT" MEANS RETIREMENT AS PROVIDED    4,588        

IN SECTION 3307.58 OR 3307.59 OF THE REVISED CODE.                 4,589        

      (2)  "DISABILITY RETIREMENT" MEANS RETIREMENT AS PROVIDED    4,591        

IN SECTION 3307.63 OF THE REVISED CODE.                            4,592        

      (D)  "ACCUMULATED CONTRIBUTIONS" MEANS THE SUM OF ALL        4,594        

AMOUNTS CREDITED TO A CONTRIBUTOR'S INDIVIDUAL ACCOUNT IN THE      4,595        

TEACHERS' SAVINGS FUND, TOGETHER WITH INTEREST CREDITED THEREON    4,596        

AT THE RATES APPROVED BY THE STATE TEACHERS RETIREMENT BOARD       4,597        

PRIOR TO RETIREMENT.                                               4,598        

      (E)  "ANNUITY" MEANS PAYMENTS FOR LIFE DERIVED FROM          4,600        

CONTRIBUTIONS MADE BY A CONTRIBUTOR AND PAID FROM THE ANNUITY AND  4,601        

PENSION RESERVE FUND.  ALL ANNUITIES SHALL BE PAID IN TWELVE       4,602        

EQUAL MONTHLY INSTALLMENTS.                                        4,603        

      (F)  "PENSIONS" MEANS ANNUAL PAYMENTS FOR LIFE DERIVED FROM  4,605        

APPROPRIATIONS MADE BY AN EMPLOYER AND PAID FROM THE ANNUITY AND   4,606        

PENSION RESERVE FUND.  ALL PENSIONS SHALL BE PAID IN TWELVE EQUAL  4,607        

MONTHLY INSTALLMENTS.                                              4,608        

      (G)(1)  "ALLOWANCE" MEANS THE PENSION PLUS THE ANNUITY, OR   4,611        

ANY OTHER PAYMENT UNDER SECTIONS 3307.50 TO 3307.79 OF THE         4,612        

REVISED CODE, AND INCLUDES A DISABILITY ALLOWANCE OR DISABILITY    4,613        

BENEFIT.                                                                        

      (2)  "DISABILITY ALLOWANCE" MEANS AN ALLOWANCE PAID ON       4,615        

ACCOUNT OF DISABILITY UNDER SECTION 3307.631 OF THE REVISED CODE.  4,617        

      (3)  "DISABILITY BENEFIT" MEANS A BENEFIT PAID AS            4,619        

                                                          99     


                                                                 
DISABILITY RETIREMENT UNDER SECTION 3307.63 OF THE REVISED CODE,   4,621        

AS A DISABILITY ALLOWANCE UNDER SECTION 3307.631 OF THE REVISED    4,623        

CODE, OR AS A DISABILITY BENEFIT UNDER SECTION 3307.57 OF THE      4,624        

REVISED CODE.                                                                   

      (H)  "ANNUITY RESERVE" MEANS THE PRESENT VALUE, COMPUTED     4,626        

UPON THE BASIS OF MORTALITY TABLES ADOPTED BY THE STATE TEACHERS   4,627        

RETIREMENT BOARD WITH INTEREST, OF ALL PAYMENTS TO BE MADE ON      4,628        

ACCOUNT OF ANY ANNUITY, OR BENEFIT IN LIEU OF ANY ANNUITY,         4,629        

GRANTED TO A MEMBER.                                               4,630        

      (I)  "PENSION RESERVE" MEANS THE PRESENT VALUE, COMPUTED     4,632        

UPON THE BASIS OF MORTALITY TABLES ADOPTED BY THE STATE TEACHERS   4,633        

RETIREMENT BOARD WITH INTEREST, OF ALL PAYMENTS TO BE MADE ON      4,634        

ACCOUNT OF ANY PENSION, OR BENEFIT IN LIEU OF ANY PENSION,         4,635        

GRANTED TO A MEMBER OR TO A BENEFICIARY.                           4,636        

      (J)  "RETIRANT" MEANS ANY FORMER MEMBER WHO IS GRANTED AGE   4,638        

AND SERVICE RETIREMENT AS PROVIDED IN SECTIONS 3307.57, 3307.58,   4,639        

3307.59, AND 3307.60 OF THE REVISED CODE.                          4,640        

      (K)  "DISABILITY BENEFIT RECIPIENT" MEANS A MEMBER WHO IS    4,642        

RECEIVING A DISABILITY BENEFIT.                                    4,643        

      Sec. 3307.013 3307.501.  (A)  As used in this section,       4,652        

"percentage increase" means the percentage that an increase in     4,654        

compensation is of the compensation paid prior to the increase.    4,655        

      (B)  Notwithstanding division (U)(L) of section 3307.01 of   4,657        

the Revised Code, for the purpose of determining final average     4,659        

salary under this section, "compensation" has the same meaning as  4,660        

in that division, except that it does not include any amount       4,661        

resulting from a percentage increase paid to a member during the   4,662        

member's two highest years of compensation that exceeds the        4,664        

greater of the following, unless the percentage increase results   4,665        

from employment by a different employer or promotion to a          4,666        

position held by another employee within the twelve-month period   4,667        

preceding the promotion;                                           4,668        

      (1)  The highest percentage increase in compensation paid    4,670        

to the member during any of the three years immediately preceding  4,671        

                                                          100    


                                                                 
the member's two highest years of compensation and any subsequent  4,672        

partial year of compensation used in calculating the member's      4,673        

final average salary;                                              4,674        

      (2)  A percentage increase paid to the member as part of an  4,676        

increase generally applicable to members employed by the           4,677        

employer.  An increase shall be considered generally applicable    4,678        

if it is paid to members employed by a school district board of    4,679        

education in positions requiring a license issued under section    4,681        

3319.22 of the Revised Code in accordance with uniform criteria    4,682        

applicable to all such members or if paid to members employed by   4,683        

an employer other than a school district board of education in     4,684        

accordance with uniform criteria applicable to all such members.   4,685        

      (C)  The state teachers retirement board shall determine     4,687        

the final average salary of a member by dividing the sum of the    4,688        

member's annual compensation for the three highest years of        4,689        

compensation for which the member made contributions plus any      4,690        

amount determined under division (E) of this section by three,     4,691        

except that if the member has a partial year of contributing       4,692        

service in the year the member's employment terminates and the     4,693        

compensation for the partial year is at a rate higher than the     4,694        

rate of compensation for any one of the member's highest three     4,695        

years of compensation, the board shall substitute the              4,696        

compensation for the partial year for the compensation for the     4,697        

same portion of the lowest of the member's three highest years of  4,698        

compensation.  If a member has less than three years of            4,699        

contributing membership, the member's final average salary shall   4,700        

be the member's total compensation for the period of contributing  4,701        

membership plus any amount determined under division (E) of this   4,702        

section divided by the total years, including any portion of a     4,703        

year, of contributing service.                                                  

      For the purpose of calculating benefits payable to a member  4,705        

qualifying for service credit under division (R)(I) of section     4,707        

3307.01 of the Revised Code, the board shall calculate the         4,708        

member's final average salary by dividing the member's total       4,709        

                                                          101    


                                                                 
compensation as a teacher covered under this chapter plus any      4,710        

amount determined under division (E) of this section by the total  4,711        

number of years, including any portion of a year, of contributing  4,712        

membership during that period.  If contributions were made for     4,713        

less than twelve months, the member's final average salary is the  4,714        

total amount of compensation paid to the member during all         4,715        

periods of contributions under this chapter.                       4,716        

      (D)  Contributions made by a member and an employer on       4,718        

amounts that, pursuant to division (B) of this section, are not    4,719        

compensation or are not included, pursuant to division (E) of      4,720        

this section, for the purpose of determining final average salary  4,721        

shall be treated as additional deposits to the member's account    4,722        

under section 3307.51 3307.26 of the Revised Code and used to      4,723        

provide additional annuity income.                                 4,725        

      (E)  The state teachers retirement board shall adopt rules   4,727        

establishing criteria and procedures for administering this        4,728        

division.                                                          4,729        

      The board shall notify each applicant for retirement of any  4,731        

amount excluded from the applicant's compensation in accordance    4,732        

with division (B) of this section and of the procedures            4,733        

established by the board for requesting a hearing on this          4,734        

exclusion.                                                         4,735        

      Any applicant for retirement who has had any amount          4,737        

excluded from the applicant's compensation in accordance with      4,739        

division (B) of this section may request a hearing on this         4,740        

exclusion.  Upon receiving such a request, the board shall         4,741        

determine in accordance with its criteria and procedures whether,  4,742        

for good cause as determined by the board, all or any portion of   4,743        

any amount excluded from the applicant's compensation in           4,744        

accordance with division (B) of this section, up to a maximum of   4,745        

seventy-five hundred dollars, is to be included in the             4,746        

determination of final average salary under division (C) of this   4,747        

section.  Any determination of the board under this division       4,748        

shall be final.                                                                 

                                                          102    


                                                                 
      Sec. 3307.20 3307.51.  (A)  The state teachers retirement    4,757        

board shall have prepared annually by or under the supervision of  4,760        

an actuary an actuarial valuation of the pension assets,           4,761        

liabilities, and funding requirements of the state teachers        4,762        

retirement system as established pursuant to this chapter PLAN     4,763        

DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE.                   

The actuary shall complete the valuation in accordance with        4,764        

actuarial standards of practice promulgated by the actuarial       4,765        

standards board of the American academy of actuaries and prepare   4,766        

a report of the valuation.  The report shall include all of the    4,767        

following:                                                                      

      (1)  A summary of the benefit provisions evaluated;          4,769        

      (2)  A summary of the census data and financial information  4,771        

used in the valuation;                                             4,772        

      (3)  A description of the actuarial assumptions, actuarial   4,774        

cost method, and asset valuation method used in the valuation,     4,775        

including a statement of the assumed rate of payroll growth and    4,776        

assumed rate of growth or decline in the number of members         4,777        

contributing to the retirement system;                                          

      (4)  A summary of findings that includes a statement of the  4,779        

actuarial accrued pension liabilities and unfunded actuarial       4,780        

accrued pension liabilities;                                       4,781        

      (5)  A schedule showing the effect of any changes in the     4,783        

benefit provisions, actuarial assumptions, or cost methods since   4,784        

the last annual actuarial valuation;                               4,785        

      (6)  A statement of whether contributions to the retirement  4,787        

system are expected to be sufficient to satisfy the funding        4,788        

objectives established by the board.                               4,789        

      The board shall submit the report to the Ohio retirement     4,792        

study commission COUNCIL and the standing committees of the house  4,793        

of representatives and the senate with primary responsibility for  4,795        

retirement legislation not later than the first day of May         4,796        

following the year for which the valuation was made.               4,797        

      (B)  At such times as the state teachers retirement board    4,800        

                                                          103    


                                                                 
determines, and at least once in each quinquennial period, the     4,801        

board shall have prepared by or under the supervision of an        4,802        

actuary an actuarial investigation of the mortality, service, and  4,804        

other experience of the members, retirants, and beneficiaries of   4,806        

the system, and other system retirants as defined in section       4,809        

3307.381 3307.35 of the Revised Code to update the actuarial       4,810        

assumptions used in the actuarial valuation required by division   4,813        

(A) of this section.  The actuary shall prepare a report of the    4,814        

actuarial investigation.  The report shall be prepared and any     4,815        

recommended changes in actuarial assumptions shall be made in      4,817        

accordance with the actuarial standards of practice promulgated                 

by the actuarial standards board of the American academy of        4,819        

actuaries.  The report shall include all of the following:                      

      (1)  A summary of relevant decrement and economic            4,821        

assumption experience observed over the period of the              4,822        

investigation;                                                                  

      (2)  Recommended changes in actuarial assumptions to be      4,824        

used in subsequent actuarial valuations required by division (A)   4,826        

of this section;                                                                

      (3)  A measurement of the financial effect of the            4,828        

recommended changes in actuarial assumptions.                      4,829        

      The board shall submit the report to the Ohio retirement     4,832        

study commission COUNCIL and the standing committees of the house  4,833        

of representatives and the senate with primary responsibility for  4,835        

retirement legislation not later than the first day of May         4,836        

following the last fiscal year of the period the report covers.    4,837        

      (C)  The board may at any time request the actuary to make   4,839        

any other studies or actuarial valuations to determine the         4,841        

adequacy of the normal and deficiency rates of contribution        4,842        

provided by section 3307.53 3307.28 of the Revised Code, and       4,843        

those rates may be adjusted by the board, as recommended by the    4,846        

actuary, effective as of the first of any year thereafter.         4,847        

      (D)  The board shall have prepared by or under the           4,849        

supervision of an actuary an actuarial analysis of any introduced  4,850        

                                                          104    


                                                                 
legislation expected to have a measurable financial impact on the  4,851        

retirement system.  The actuarial analysis shall be completed in   4,852        

accordance with the actuarial standards of practice promulgated    4,853        

by the actuarial standards board of the American academy of        4,854        

actuaries.  The actuary shall prepare a report of the actuarial    4,855        

analysis, which shall include all of the following:                4,856        

      (1)  A summary of the statutory changes that are being       4,858        

evaluated;                                                                      

      (2)  A description of or reference to the actuarial          4,860        

assumptions and actuarial cost method used in the report;          4,861        

      (3)  A description of the participant group or groups        4,863        

included in the report;                                            4,864        

      (4)  A statement of the financial impact of the              4,866        

legislation, including the resulting increase, if any, in the      4,867        

employer normal cost percentage; the increase, if any, in          4,868        

actuarial accrued liabilities; and the per cent of payroll that    4,869        

would be required to amortize the increase in actuarial accrued                 

liabilities as a level per cent of covered payroll for all active  4,870        

members over a period not to exceed thirty years;                  4,871        

      (5)  A statement of whether the scheduled contributions to   4,873        

the system after the proposed change is enacted are expected to    4,874        

be sufficient to satisfy the funding objectives established by     4,875        

the board.                                                                      

      Not later than sixty days from the date of introduction of   4,877        

the legislation, the board shall submit a copy of the actuarial    4,878        

analysis to the legislative budget office of the legislative       4,879        

service commission, the standing committees of the house of        4,880        

representatives and the senate with primary responsibility for     4,881        

retirement legislation, and the Ohio retirement study commission   4,882        

COUNCIL.                                                                        

      (E)  The board shall have prepared annually a report giving  4,885        

a full accounting of the revenues and costs relating to the        4,886        

provision of benefits under sections 3307.405 3307.39 and 3307.74  4,887        

3307.61 of the Revised Code.  The report shall be made as of June  4,890        

                                                          105    


                                                                 
30, 1997, and the thirtieth day of June of each year thereafter.   4,891        

The report shall include the following:                            4,892        

      (1)  A description of the statutory authority for the        4,894        

benefits provided;                                                 4,895        

      (2)  A summary of the benefits;                              4,897        

      (3)  A summary of the eligibility requirements for the       4,899        

benefits;                                                          4,900        

      (4)  A statement of the number of participants eligible for  4,902        

the benefits;                                                      4,903        

      (5)  A description of the accounting, asset valuation, and   4,905        

funding method used to provide the benefits;                       4,906        

      (6)  A statement of the net assets available for the         4,908        

provisions of benefits as of the last day of the fiscal year;      4,910        

      (7)  A statement of any changes in the net assets available  4,913        

for the provision of benefits, including participant and employer  4,914        

contributions, net investment income, administrative expenses,     4,915        

and benefits provided to participants, as of the last day of the   4,916        

fiscal year;                                                                    

      (8)  For the last six consecutive fiscal years, a schedule   4,918        

of the net assets available for the benefits, the annual cost of   4,920        

benefits, administrative expenses incurred, and annual employer    4,921        

contributions allocated for the provision of benefits;             4,922        

      (9)  A description of any significant changes that affect    4,924        

the comparability of the report required under this division;      4,926        

      (10)  A statement of the amount paid under division (C) of   4,928        

section 3307.74 3307.39 of the Revised Code.                       4,929        

      The board shall submit the report to the Ohio retirement     4,932        

study commission COUNCIL and the standing committees of the house  4,933        

of representatives and the senate with primary responsibility for  4,934        

retirement legislation not later than the thirty-first day of      4,935        

December following the year for which the report was made.         4,937        

      Sec. 3307.511.  THE STATE TEACHERS RETIREMENT BOARD SHALL    4,939        

COLLECT AND KEEP IN CONVENIENT FORM SUCH DATA AS IS NECESSARY FOR  4,940        

THE PREPARATION OF THE REQUIRED MORTALITY AND SERVICE TABLES, AND  4,941        

                                                          106    


                                                                 
FOR THE COMPILATION OF SUCH OTHER INFORMATION AS IS REQUIRED FOR   4,942        

THE ACTUARIAL VALUATION OF THE ASSETS AND LIABILITIES OF THE       4,943        

FUNDS LISTED IN DIVISIONS (A) TO (F) OF SECTION 3307.14 OF THE     4,945        

REVISED CODE.  ON THE BASIS OF MORTALITY AND SERVICE EXPERIENCE    4,946        

OF THE MEMBERS, RETIRANTS, AND BENEFICIARIES OF THE STATE          4,947        

TEACHERS RETIREMENT SYSTEM, AND OTHER SYSTEM RETIRANTS             4,948        

CONTRIBUTING IN ACCORDANCE WITH SECTION 3307.35 OF THE REVISED     4,950        

CODE, THE BOARD SHALL ADOPT TABLES TO BE USED FOR VALUATION        4,952        

PURPOSES AND FOR DETERMINING THE AMOUNT OF ANNUITIES TO BE                      

ALLOWED ON THE BASIS OF THE CONTRIBUTIONS.                         4,953        

      Sec. 3307.201 3307.512.  The state teachers retirement       4,962        

board shall establish a period of not more than thirty years to    4,965        

amortize the state teachers retirement system's unfunded                        

actuarial accrued pension liabilities FOR BENEFITS PAID UNDER      4,966        

SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE.  If in any year   4,967        

the period necessary to amortize the unfunded actuarial accrued    4,969        

pension liability exceeds thirty years, as determined by the                    

annual actuarial valuation required by section 3307.20 3307.51 of  4,972        

the Revised Code, the board, not later than ninety days after      4,974        

receipt of the valuation, shall prepare and submit to the Ohio     4,975        

retirement study commission COUNCIL and the standing committees    4,976        

of the house of representatives and the senate with primary        4,977        

responsibility for retirement legislation a report that includes   4,978        

the following information:                                         4,979        

      (A)  The number of years needed to amortize the unfunded     4,982        

actuarial accrued pension liability as determined by the annual    4,983        

actuarial valuation;                                                            

      (B)  A plan approved by the board that indicates how the     4,986        

board will reduce the amortization period of unfunded actuarial    4,987        

accrued pension liability to not more than thirty years.                        

      Sec. 3307.421 3307.513.  Not later than September 1, 2000,   4,997        

and each first day of September for the succeeding five years,     4,998        

the state teachers retirement board shall make and submit a        4,999        

report for the preceding fiscal year of the disability retirement  5,000        

                                                          107    


                                                                 
experience of each employer.  The report shall specify the total   5,001        

number of disability applications submitted UNDER SECTION 3307.62  5,002        

OF THE REVISED CODE, the status of each application as of the      5,004        

last day of the fiscal year, total applications granted or         5,005        

denied, and the percentage of disability benefit recipients, AS    5,006        

DEFINED IN SECTION 3307.50 OF THE REVISED CODE, to the total       5,008        

number of the employer's employees who are members of the state    5,009        

teachers retirement system.  The report shall be submitted to the  5,010        

governor, the Ohio retirement study council, and the chairpersons  5,012        

of the standing committees and subcommittees of the senate and     5,013        

house of representatives with primary responsibility for           5,014        

retirement legislation.                                                         

      Sec. 3307.36 3307.52.  At THE TIME OF retirement UNDER THE   5,024        

PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED                    

CODE, the total service credited a teacher shall consist of all    5,026        

his THE TEACHER'S service as a teacher since he THE TEACHER last   5,027        

became a member and, if he THE TEACHER has a prior service         5,028        

certificate which is in full force and effect, all service         5,030        

certified on such prior service certificate, together with                      

purchased service credit as provided in section 3307.33 3307.741   5,031        

of the Revised Code.                                               5,032        

      Sec. 3307.31 3307.53.  The state teachers retirement board   5,041        

shall credit a year of service to any teacher PARTICIPATING IN     5,043        

THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED   5,044        

CODE who is employed on a full-time basis in a school district     5,045        

for the number of months the regular day schools of such district  5,046        

are in session in said district within any year.  The board shall  5,047        

adopt appropriate rules and regulations for the determination of   5,048        

credit for less than a complete year of service, and shall be the  5,049        

final authority in determining the number of years of service      5,050        

credit.  The board shall credit not more than one year for all     5,051        

service rendered in any year.                                      5,052        

      If concurrent contributions are made to two or more          5,054        

retirement systems, service credit shall be on the basis of the    5,055        

                                                          108    


                                                                 
ratio that contributions to this system bear to the total          5,056        

contributions in all such systems.                                 5,057        

      Sec. 3307.35 3307.54.  An employer may establish a           5,066        

retirement incentive plan for its employees who are members of     5,067        

the state teachers retirement system PARTICIPATING IN THE PLAN     5,068        

DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE.      5,069        

The plan shall provide for purchase by the employer of service     5,070        

credit for eligible employees who choose to participate in the     5,071        

plan and for payment by the employer of the entire cost of such    5,072        

service credit.  A plan established under this section shall       5,073        

remain in effect until terminated by the employer, except that,    5,074        

once established, the plan must remain in effect for at least one  5,075        

year.                                                                           

      An employee who is a member of the state teachers            5,077        

retirement system shall be eligible to participate in a            5,078        

retirement incentive plan if the employee has attained age fifty   5,080        

and the employee agrees to retire and retires under section        5,081        

3307.38 3307.58 of the Revised Code effective within ninety days   5,083        

after receiving notice from the state teachers retirement system   5,084        

that service credit has been purchased for the member under this   5,085        

section.                                                                        

      Participation in the plan shall be available to all          5,087        

eligible employees except that the employer may limit the number   5,088        

of persons for whom it purchases credit in any calendar year to a  5,089        

specified percentage of its employees who are members of the       5,090        

state teachers retirement system on the first day of January of    5,091        

that year.  The percentage shall not be less than five per cent    5,092        

of such employees.  If participation is limited, employees with a  5,093        

greater length of service with the employer have the right to      5,094        

elect to have credit purchased before employees with a lesser      5,095        

length of service with the employer.                               5,096        

      The amount of service credit purchased for any participant   5,098        

shall be uniformly determined but shall not exceed the lesser of   5,099        

the following:                                                     5,100        

                                                          109    


                                                                 
      (A)  Five years of service credit;                           5,102        

      (B)  An amount of service credit equal to one-fifth of the   5,104        

total service credited to the participant under FORMER sections    5,105        

3307.02, 3307.021, 3307.022, 3307.22, 3307.28, 3307.31, 3307.311,  5,106        

3307.32, 3307.41, 3307.411, 3307.412, 3307.512, 3307.513,          5,107        

3307.514, 3307.515, AND 3307.52, and 3307.73 OR SECTIONS 3307.53,  5,109        

3307.57, 3307.71, 3307.72, 3307.73, 3307.74, 3307.75, 3307.751,                 

3307.752, 3307.76, 3307.761, 3307.77, 3307.771, AND 3307.78 of     5,111        

the Revised Code.                                                               

      For each year of service credit purchased under this         5,113        

section, the employer shall pay an amount specified by the state   5,114        

teachers retirement board equal to the additional liability        5,115        

resulting from the purchase of that year of service credit as      5,116        

determined by an actuary employed by the board.  Payments shall    5,117        

be made in accordance with rules adopted by the board, and the     5,118        

board shall notify each member when the member is credited with    5,120        

service purchased under this section.                              5,121        

      No payment made to the state teachers retirement system      5,123        

under this section shall affect any payment required by section    5,124        

3307.53 3307.28 of the Revised Code.                               5,125        

      Sec. 3307.46 3307.56.  (A)(1)  Subject to sections 3307.47   5,135        

3307.37 and 3307.72 3307.561 of the Revised Code, a member         5,136        

PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO         5,137        

3307.79 OF THE REVISED CODE who ceases to be a teacher for any                  

cause other than death, retirement, receipt of a disability        5,140        

benefit, or election of an alternative retirement plan under       5,141        

section 3305.05 of the Revised Code, upon application, shall be                 

paid the accumulated contributions standing to the credit of the   5,143        

member's individual account in the teachers' savings fund plus an  5,144        

amount calculated in accordance with section 3307.80 3307.563 of   5,145        

the Revised Code.   If the member or the member's legal            5,147        

representative cannot be found within ten years after the member   5,149        

ceased making contributions pursuant to section 3307.51 3307.26    5,150        

of the Revised Code, the accumulated contributions may be          5,153        

                                                          110    


                                                                 
transferred to the guarantee fund and thereafter paid to the       5,154        

member, to the member's beneficiaries, or to the member's estate,  5,155        

upon proper application.                                                        

      (2)  A member described in division (A)(1) of this section   5,158        

who is married at the time of application for payment and is                    

eligible for age and service retirement under section 3307.38      5,159        

3307.58 or 3307.39 3307.59 of the Revised Code shall submit with   5,162        

the application a written statement by the member's spouse                      

attesting that the spouse consents to the payment of the member's  5,163        

accumulated contributions.  Consent shall be valid only if it is   5,164        

signed and witnessed by a notary public.  If the statement is not  5,166        

submitted under this division, the application shall be                         

considered an application for service retirement and shall be      5,167        

subject to division (F)(1) of section 3307.50 3307.60 of the       5,168        

Revised Code.                                                      5,169        

      (B)  This division applies to any member who ceases to be a  5,172        

teacher by electing an alternative retirement plan pursuant to     5,173        

section 3305.05 of the Revised Code and who is not otherwise       5,174        

employed as a teacher in a position to which the election does     5,175        

not apply.  For purposes of this division, "continuously           5,176        

employed" has the same meaning as in section 3305.01 of the        5,177        

Revised Code.                                                      5,178        

      (1)  Subject to sections 3307.47 3307.37 and 3307.72         5,180        

3307.561 of the Revised Code, upon application of any member to    5,183        

whom this division applies who is continuously employed, the       5,184        

state teachers retirement board shall pay the accumulated          5,185        

contributions standing to the credit of the member's individual    5,186        

account in the teachers' savings fund plus an amount calculated    5,187        

in accordance with section 3307.80 3307.563 of the Revised Code    5,188        

to the entity providing the alternative retirement plan for        5,190        

application to that plan in accordance with any contract the       5,191        

member has entered into for purposes of that plan.                 5,192        

      (2)  Subject to sections 3307.47 3307.37 and 3307.72         5,194        

3307.561 of the Revised Code, upon application of any member to    5,197        

                                                          111    


                                                                 
whom this division applies who has ceased to be continuously       5,198        

employed, the state teachers retirement board shall pay the        5,199        

accumulated contributions standing to the credit of the member's   5,200        

individual account in the teachers' savings fund plus an amount    5,202        

calculated in accordance with section 3307.80 3307.563 of the      5,204        

Revised Code to the entity providing the alternative retirement    5,205        

plan for application to that plan in accordance with any contract  5,206        

the member has entered into for purposes of that plan.             5,207        

      Sec. 3307.47 3307.561.  A member of the state teachers       5,216        

retirement system PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS  5,217        

3307.50 TO 3307.79 OF THE REVISED CODE who has ceased to be a      5,219        

teacher, and who is also a member of either the public employees                

retirement system or the school employees retirement system, or    5,220        

both, may not withdraw his THE MEMBER'S accumulated contributions  5,222        

unless he THE MEMBER also withdraws his THE MEMBER'S               5,223        

contributions from such THE other systems.                         5,224        

      Sec. 3307.48 3307.562.  (A)  As used in this section and     5,233        

section 3307.49 3307.66 of the Revised Code:                       5,235        

      (1)  "Child" means a biological or legally adopted child of  5,239        

a deceased member.  If a court hearing for an interlocutory        5,240        

decree for adoption was held prior to the member's death, "child"  5,241        

includes the child who was the subject of the hearing if a final   5,242        

decree of adoption adjudging the member's spouse as the adoptive   5,243        

parent is made subsequent to the member's death.                   5,244        

      (2)  "Parent" is a parent or legally adoptive parent of a    5,247        

deceased member.                                                   5,248        

      (3)  "Dependent" means a beneficiary who receives one-half   5,250        

of the beneficiary's support from a member during the twelve       5,251        

months prior to the member's death.                                5,252        

      (4)  "Surviving spouse" means an individual who establishes  5,255        

a valid marriage to a member at the time of the member's death by  5,256        

marriage certificate or pursuant to division (E) of this section.  5,257        

      (5)  "Survivor" means a spouse, child, or dependent parent.  5,260        

      (B)  Except as provided in division (G)(1)(B) of section     5,263        

                                                          112    


                                                                 
3307.49 3307.563 or division (B)(G)(1) of section 3307.80 3307.66  5,265        

of the Revised Code, should a member WHO IS PARTICIPATING IN THE   5,266        

PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE  5,267        

die before service retirement, the member's accumulated            5,268        

contributions, plus an amount calculated in accordance with        5,269        

section 3307.80 3307.563 of the Revised Code, and any amounts      5,270        

owed and unpaid to a disability benefit recipient shall be paid    5,271        

to such beneficiaries as the member has nominated by written       5,273        

designation signed by the member and filed with the state          5,275        

teachers retirement board prior to death.  The nomination of       5,276        

beneficiary shall be on a form provided by the retirement board.                

The last nomination of any beneficiary revokes all previous        5,278        

nominations.  The member's marriage, divorce, marriage             5,279        

dissolution, legal separation, or withdrawal of account, or the    5,280        

birth of the member's child, or the member's adoption of a child,  5,281        

shall constitute an automatic revocation of the member's previous  5,282        

designation.  If a deceased member was also a member of the        5,283        

public employees retirement system or the school employees         5,284        

retirement system, the beneficiary last established among the                   

systems shall be the sole beneficiary in all the systems.          5,285        

      Any beneficiary ineligible for monthly survivor benefits as  5,287        

provided by section 3307.49 3307.66 of the Revised Code may waive  5,289        

in writing all claim to any benefits and such waiver shall         5,290        

thereby put in effect the succession of beneficiaries under        5,291        

division (C) of this section, provided the beneficiary thereunder  5,292        

is immediately eligible and agrees in writing to accept survivor   5,293        

benefits as provided by section 3307.49 3307.66 of the Revised     5,294        

Code.  If the accumulated contributions of a deceased member are   5,296        

not claimed by a beneficiary, or by the estate of the deceased     5,297        

member, within ten years, they shall be transferred to the         5,298        

guarantee fund and thereafter paid to such beneficiary or to the   5,299        

member's estate upon application to the board.  The board shall    5,300        

formulate and adopt rules governing all designations of            5,301        

beneficiaries.                                                     5,302        

                                                          113    


                                                                 
      (C)  Except as provided in division (G)(1) of section        5,304        

3307.49 3307.66 of the Revised Code, if a member dies before       5,305        

service retirement and is not survived by a designated             5,308        

beneficiary, any beneficiaries shall qualify, in the following     5,309        

order of precedence, with all attendant rights and privileges:     5,310        

      (1)  Surviving spouse;                                       5,312        

      (2)  Children, share and share alike;                        5,314        

      (3)  A dependent parent, if that parent elects to take       5,316        

survivor benefits under division (C)(2) of section 3307.49         5,317        

3307.66 of the Revised Code;                                       5,319        

      (4)  Parents, share and share alike;                         5,321        

      (5)  Estate.                                                 5,323        

      If any survivor dies before payment is made under this       5,325        

section or is not located prior to the ninety-first day after the  5,326        

board receives notification of the member's death, the survivor    5,327        

next in order of precedence shall qualify as a beneficiary,        5,328        

provided that benefits under division (C)(2) of section 3307.49    5,329        

3307.66 of the Revised Code are elected.  In the event that the    5,330        

beneficiary originally determined is subsequently located, the     5,331        

beneficiary may qualify for benefits under division (C)(2) of      5,332        

section 3307.49 3307.66 of the Revised Code upon meeting the       5,333        

conditions of eligibility set forth in division (B) of that        5,335        

section, but in no case earlier than the first day of the month    5,336        

following application by such beneficiary.  Any payment made to a  5,337        

beneficiary as determined by the board shall be a full discharge   5,338        

and release to the board from any future claims.                   5,339        

      (D)  Any amount due any person, as an annuitant, receiving   5,341        

a monthly benefit, and unpaid to the annuitant at death, shall be  5,343        

paid to the beneficiary named by written designation signed by                  

the annuitant and filed with the board.  If no such designation    5,345        

has been filed, or if the beneficiary designated is deceased or                 

is not located prior to the ninety-first day after the board       5,346        

receives notification of the annuitant's death, such amount shall  5,347        

be paid, in the following order of precedence to the annuitant's:  5,348        

                                                          114    


                                                                 
      (1)  Surviving spouse;                                       5,350        

      (2)  Children, share and share alike;                        5,352        

      (3)  Parents, share and share alike;                         5,354        

      (4)  Estate.                                                 5,356        

      For purposes of this division an "annuitant" is the last     5,358        

person who received a monthly benefit pursuant to the plan of      5,359        

payment selected by the former member.  Such payment shall be a    5,360        

full discharge and release to the board from any future claim for  5,361        

such payment.                                                      5,362        

      (E)  If the validity of marriage cannot be established to    5,364        

the satisfaction of the board for the purpose of disbursing any    5,365        

amount due under this section or section 3307.49 3307.66 of the    5,367        

Revised Code, the board may accept a decision rendered by a court  5,368        

having jurisdiction in the state in which the member was           5,369        

domiciled at the time of death that the relationship constituted   5,370        

a valid marriage at the time of death, or the "spouse" would have  5,371        

the same status as a widow or widower for purposes of sharing the  5,372        

distribution of the member's intestate personal property.          5,373        

      If the death of a member is caused by one of the following   5,376        

beneficiaries, no amount due under this chapter to the             5,377        

beneficiary shall be paid to the beneficiary in the absence of a   5,378        

court order to the contrary filed with the board:                  5,379        

      (1)  A beneficiary who is convicted of, pleads guilty to,    5,381        

or is found not guilty by reason of insanity of a violation of or  5,383        

complicity in the violation of either of the following:            5,384        

      (a)  Section 2903.01, 2903.02, or 2903.03 of the Revised     5,387        

Code;                                                                           

      (b)  An existing or former law of any other state, the       5,390        

United States, or a foreign nation that is substantially           5,392        

equivalent to section 2903.01, 2903.02, or 2903.03 of the Revised  5,394        

Code;                                                              5,395        

      (2)  A beneficiary who is indicted for a violation of or     5,397        

complicity in the violation of the sections or laws described in   5,398        

division (F)(1)(a) or (b) of this section and is adjudicated       5,400        

                                                          115    


                                                                 
incompetent to stand trial;                                                     

      (3)  A beneficiary who is a juvenile found to be a           5,402        

delinquent child by reason of committing an act that, if           5,403        

committed by an adult, would be a violation of or complicity in    5,404        

the violation of the sections or laws described in division        5,406        

(F)(1)(a) or (b) of this section.                                  5,407        

      Sec. 3307.80 3307.563.  For the purposes of this section,    5,416        

"service credit" includes only service credit obtained pursuant    5,418        

to sections 3307.28 3307.53, 3307.31 3307.71, 3307.512 3307.72,    5,420        

and 3307.73 3307.77 of the Revised Code.                                        

      (A)  The state teachers retirement system shall add to a     5,422        

member's accumulated contributions to be paid under section        5,423        

3307.46 3307.56 or 3307.48 3307.562 of the Revised Code an amount  5,426        

paid from the employers' trust fund equal to one of the                         

following:                                                                      

      (1)  If the member has less than three full years of         5,428        

service credit, an amount equal to interest on the member's        5,429        

accumulated contributions, compounded annually, at a rate not      5,431        

greater than four per cent established by the board;                            

      (2)  If the member has three or more full years of service   5,433        

credit, but less than five full years, an amount equal to          5,434        

interest on the member's accumulated contributions, compounded     5,436        

annually, at a rate not greater than six per cent established by                

the board;                                                         5,437        

      (3)  If the member has five or more full years of service    5,439        

credit, the sum of the following amounts:                          5,440        

      (a)  An amount equal to interest on the member's             5,442        

accumulated contributions, compounded annually, at a rate not      5,444        

greater than six per cent established by the board;                5,445        

      (b)  An amount equal to fifty per cent of the sum of the     5,447        

member's contributions and payments under sections 3307.28         5,448        

3307.26, 3307.51 3307.71, and 3307.512 3307.77 of the Revised      5,450        

Code plus an amount equal to interest on that amount at a rate     5,451        

not greater than six per cent established by the board.            5,453        

                                                          116    


                                                                 
      Interest for each year included in the calculation under     5,455        

this section shall be calculated from the first day of the         5,456        

following year to the last day of the month preceding payment      5,458        

under section 3307.46 3307.56 or 3307.48 3307.562 of the Revised   5,459        

Code.                                                                           

      (B)  Notwithstanding sections 3307.46 3307.56 and 3307.48    5,462        

3307.562 of the Revised Code, neither the beneficiaries,           5,463        

survivors, nor estate of a deceased member who was granted                      

disability benefits prior to death is eligible for the payment of  5,464        

any amount calculated under this section.                          5,465        

      Sec. 3307.41 3307.57.  To coordinate and integrate           5,474        

membership in the state retirement systems, the following          5,476        

provisions apply:                                                               

      (A)  As used in this section:                                5,478        

      (1)  "Retirement systems" means the public employees         5,480        

retirement system, the state teachers retirement system, and the   5,481        

school employees retirement system.                                5,482        

      (2)  In addition to the meaning given in division (L) of     5,484        

section 3307.01 3307.50 of the Revised Code, "disability benefit"  5,485        

means "disability benefit" as defined in sections 145.01 and       5,487        

3309.01 of the Revised Code.                                       5,488        

      (B)  At the member's option OF A MEMBER PARTICIPATING IN     5,490        

THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED   5,491        

CODE, total contributions and service credit in all retirement     5,492        

systems shall be used in determining the eligibility for           5,493        

benefits.  If total contributions and service credit are           5,494        

combined, the following provisions apply:                                       

      (1)  Service retirement or a disability benefit is           5,496        

effective on the first day of the month next following the later   5,497        

of:                                                                5,498        

      (a)  The last day for which compensation was paid;           5,500        

      (b)  The attainment of minimum age or service credit for     5,502        

benefits provided under this section.                              5,503        

      (2)  "Total service credit" includes the total credit in     5,505        

                                                          117    


                                                                 
all retirement systems except that such credit shall not exceed    5,506        

one year for any period of twelve months.                          5,507        

      (3)  In determining eligibility for a disability benefit,    5,509        

the medical examiner's report to the board of any retirement       5,510        

system, showing that the member's disability incapacitates him     5,511        

THE MEMBER for the performance of duty, may be accepted as         5,513        

sufficient for granting a disability benefit.                      5,514        

      (4)  The retirement system in which the member had the       5,516        

greatest service credit, without adjustment, shall determine and   5,517        

pay the total benefit.  If his THE MEMBER'S credit is equal in     5,518        

two or more retirement systems, the system having the member's     5,520        

largest total contributions shall determine and pay the total      5,521        

benefit.                                                                        

      (5)  In determining the total credit to be used in           5,523        

calculating a benefit, credit shall not be reduced below that      5,524        

certified by the system or systems transferring credit, except     5,525        

that such total combined service credit shall not exceed one year  5,526        

of credit for any one "year" as defined in the statute governing   5,527        

the system making the calculation.                                 5,528        

      (6)  The retirement system determining and paying the        5,530        

benefit shall receive from the other system or systems the         5,531        

member's refundable account at retirement or the effective date    5,532        

of a disability benefit plus an equal amount from the employers'   5,533        

trust fund.                                                        5,534        

      (a)  The annuity rates and mortality tables of the           5,536        

retirement system making the calculation and paying the benefit    5,537        

shall be applicable.                                               5,538        

      (b)  Deposits made for the purchase of additional income,    5,540        

with guaranteed interest, upon the member's request, shall be      5,541        

transferred to the retirement system paying the regular benefit.   5,542        

The return upon such deposits shall be that offered by the         5,543        

retirement system making the calculation and paying the regular    5,544        

benefit.                                                           5,545        

      (C)  A person receiving a benefit under this section, who    5,547        

                                                          118    


                                                                 
accepts employment amenable to coverage in any retirement system   5,548        

that participated in his THE PERSON'S combined benefit, shall be   5,549        

subject to the applicable provisions of law governing such         5,551        

re-employment.  If the person is subject to section 3307.381       5,552        

3307.35 of the Revised Code and exceeds the limits on              5,553        

re-employment established by that section, the retirement system   5,554        

paying a combined benefit shall terminate the entire pension       5,555        

portion of the benefit for the period of re-employment that        5,556        

exceeds the limit in that section.                                              

      If a retirant should be paid any amount to which he THE      5,558        

RETIRANT is not entitled under the applicable provisions of law    5,560        

governing such re-employment, such amount shall be recouped by     5,561        

the retirement system paying such benefit by utilizing any         5,562        

recovery procedure available under the law of the retirement       5,563        

system covering such re-employment.                                5,564        

      Sec. 3307.38 3307.58.  Any member PARTICIPATING IN THE PLAN  5,573        

DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE who   5,574        

has five years of service credit and has attained age sixty, or    5,576        

who has twenty-five years of service credit and has attained age   5,577        

fifty-five, or who has thirty years of service credit shall be     5,578        

granted service retirement after filing with the state teachers    5,579        

retirement board a completed application on a form approved by     5,580        

the board.                                                                      

      (A)  Service retirement shall be effective on the first day  5,582        

of the month next following the later of:                          5,583        

      (1)  The last day for which compensation was paid; or        5,585        

      (2)  The attainment of minimum age or service credit         5,587        

eligibility for benefits provided under this section.              5,588        

      Except as otherwise provided in division (D)(E) of this      5,590        

section, the service retirement benefit shall be the greater of    5,591        

the benefits provided in divisions (B) and (C)(D) of this          5,592        

section.                                                           5,593        

      (B)(1)  Subject to any adjustment made under division        5,595        

(B)(2)(C) of this section, the annual single lifetime benefit of   5,597        

                                                          119    


                                                                 
a member shall be the greater of the amounts determined by the     5,598        

member's Ohio service credit multiplied by one of the following:   5,600        

      (a)(1)  Eighty-six dollars;                                  5,602        

      (b)  Two (2)(a)  THE SUM OF THE FOLLOWING AMOUNTS:           5,604        

      (i)  FOR EACH OF THE FIRST THIRTY YEARS OF OHIO SERVICE      5,606        

CREDIT, TWO and one-tenth TWO-TENTHS per cent of the member's      5,608        

final average salary, except that OR, SUBJECT TO THE LIMITATION    5,610        

DESCRIBED IN DIVISION (B)(2)(b) OF THIS SECTION, TWO AND           5,611        

FIVE-TENTHS PER CENT OF THE MEMBER'S FINAL AVERAGE SALARY IF THE   5,612        

MEMBER HAS THIRTY-FIVE OR MORE YEARS OF SERVICE CREDIT UNDER       5,613        

SECTION 3307.53, 3307.57, 3307.761, OR 3307.77 OF THE REVISED      5,615        

CODE, SECTION 3307.72 OF THE REVISED CODE EARNED AFTER JULY 1,     5,616        

1978, OR ANY COMBINATION OF SERVICE CREDIT UNDER THOSE SECTIONS;   5,617        

      (ii)  FOR EACH YEAR OR FRACTION OF A YEAR OF OHIO SERVICE    5,619        

CREDIT IN EXCESS OF THIRTY YEARS, TWO AND TWO-TENTHS PER CENT OF   5,621        

THE MEMBER'S FINAL AVERAGE SALARY OR, SUBJECT TO THE LIMITATION    5,623        

DESCRIBED IN DIVISION (B)(2)(b) OF THIS SECTION, THE PER CENT OF   5,625        

FINAL AVERAGE SALARY SHOWN IN THE FOLLOWING SCHEDULE if the        5,626        

member has more than thirty years service credit earned under      5,627        

section 3307.31 3307.53, 3307.57, 3307.761, or purchased under     5,628        

section 3307.512 3307.77 of the Revised Code, the per cent shall   5,631        

be the per cent shown in the following schedule times the                       

member's final average salary for each corresponding year or       5,632        

fraction of a year of service credit earned or purchased under     5,633        

those sections that is in excess of thirty years SECTION 3307.72   5,634        

OF THE REVISED CODE EARNED AFTER JULY 1, 1978, OR ANY COMBINATION  5,635        

OF SERVICE CREDIT UNDER THOSE SECTIONS:                            5,636        

     Year             Per              Year             Per        5,639        

      of              Cent              of              Cent       5,640        

   Service          for that         Service          for that     5,642        

    Credit            Year            Credit            Year       5,643        

30.01-3100 31.00      2.5%        37.01-3800 38.00      3.2%       5,645        

31.01-3200 32.00      2.6         38.01-3900 39.00      3.3        5,647        

 32.01-33.00          2.7          39.01-40.00          3.4        5,648        

                                                          120    


                                                                 
 33.01-34.00          2.8          40.01-41.00          3.5        5,649        

 34.01-35.00          2.9          41.01-42.00          3.6        5,650        

 35.01-36.00          3.0          42.01-43.00          3.7        5,651        

 36.01-37.00          3.1                                          5,652        

For purposes of this schedule, years of service credit shall be    5,656        

rounded to the nearest one-hundredth of a year.                                 

      (b)  FOR PURPOSES OF DIVISION (B)(2)(a) OF THIS SECTION, A   5,659        

PERCENTAGE OF FINAL AVERAGE SALARY IN EXCESS OF TWO AND            5,660        

TWO-TENTHS PER CENT SHALL BE APPLIED TO SERVICE CREDIT UNDER       5,661        

SECTION 3307.41 OR 3307.412 OF THE REVISED CODE ONLY IF THE        5,662        

SERVICE CREDIT WAS ESTABLISHED BY CONTRIBUTIONS MADE UNDER         5,663        

SECTION 145.47, 742.31, 3309.47, 3309.58, OR 5505.15 OF THE        5,664        

REVISED CODE OR RESTORED UNDER SECTION 145.31, 742.371, 3309.26,   5,665        

OR 5505.20 OF THE REVISED CODE.                                                 

      (2)(C)  The annual single lifetime benefit of a member       5,667        

determined under division (B)(1) of this section shall be          5,668        

adjusted by the greater per cent shown in the following schedule   5,669        

opposite the member's attained age or Ohio service credit.         5,670        

                         Years of               Per Cent           5,672        

Attained      or        Ohio Service            of Base            5,673        

  Age                     Credit                 Amount            5,674        

  58                        25                    75%              5,675        

  59                        26                    80               5,676        

  60                        27                    85               5,677        

  61                                              88               5,678        

                            28                    90               5,679        

  62                                              91               5,680        

  63                                              94               5,681        

                            29                    95               5,682        

  64                                              97               5,683        

  65                    30 or more               100               5,684        

      Members shall vest the right to a benefit in accordance      5,687        

with the following schedule, based on the member's attained age    5,688        

by September 1, 1976:                                              5,689        

                                                          121    


                                                                 
                                             Per Cent              5,691        

        Attained                             of Base               5,692        

          Age                                 Amount               5,693        

           66                                  102%                5,695        

           67                                  104                 5,696        

           68                                  106                 5,697        

           69                                  108                 5,698        

       70 or more                              110                 5,699        

      (3)  The annual single lifetime benefit determined under     5,702        

this division (B) OF THIS SECTION shall not exceed the lesser of   5,704        

one hundred per cent of the final average salary or the limit      5,706        

established by section 415 of the "Internal Revenue Code of        5,707        

1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended.                5,708        

      (C)(D)  The annual single lifetime benefit of a member       5,710        

shall not exceed the lesser of the sum of the following amounts    5,711        

or the limit established by section 415 of the "Internal Revenue   5,712        

Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended:        5,713        

      (1)  An annuity with a reserve equal to the member's         5,715        

accumulated contributions;                                         5,716        

      (2)  A pension equal to the amount in division (C)(D)(1) of  5,718        

this section;                                                      5,719        

      (3)  An additional pension of forty dollars annually         5,721        

multiplied by the number of years of prior and military service    5,722        

credit, except years of credit purchased under section 3307.021    5,723        

3307.751 OR 3307.752 of the Revised Code;                          5,726        

      (4)  An additional basic annual pension of one hundred       5,728        

eighty dollars, provided the member had ten or more years of Ohio  5,729        

service credit as of October 1, 1956, except that the additional   5,731        

basic annual pension shall not exceed the sum of the annual                     

benefits provided by divisions (C)(D)(1), (2), and (3) of this     5,732        

section.                                                           5,733        

      (D)(E)  Benefits determined under this section shall be      5,735        

paid as provided in section 3307.50 3307.60 of the Revised Code.   5,736        

      Sec. 3307.39 3307.59.  (A)  A recipient of a disability      5,745        

                                                          122    


                                                                 
allowance under section 3307.431 3307.631 of the Revised Code who  5,747        

is subject to division (C)(3) of that section may make             5,749        

application for service retirement under this section.             5,750        

Retirement shall be effective on the first day of the first month  5,751        

following the last day for which the disability allowance is       5,752        

paid.                                                                           

      (B)  The annual allowance payable under this section shall   5,754        

consist of the sum of the amounts determined under divisions       5,755        

(B)(1) and (2) of this section:                                    5,756        

      (1)  The greater of the following:                           5,758        

      (a)  An allowance calculated as provided in section 3307.38  5,760        

3307.58 of the Revised Code, excluding any period during which     5,761        

the applicant received a disability benefit under section          5,762        

3307.431 3307.631 of the Revised Code;                             5,764        

      (b)  An allowance calculated by multiplying the applicant's  5,766        

total service credit, including service credit for the last        5,767        

continuous period during which he THE APPLICANT received a         5,768        

disability benefit under section 3307.431 3307.631 of the Revised  5,770        

Code, by two and one-tenth TWO-TENTHS per cent of his THE          5,771        

APPLICANT'S final average salary, except that the allowance shall  5,774        

be determined without application of division (B) of section       5,775        

3307.013 3307.501 of the Revised Code and shall not exceed         5,776        

forty-five per cent of the applicant's final average salary.       5,777        

      (2)  An amount equal to the additional allowance the         5,779        

recipient would receive under section 3307.403 3307.67 of the      5,780        

Revised Code, plus any other additional amount he THE RECIPIENT    5,782        

would receive under this chapter, had he THE RECIPIENT retired     5,784        

under section 3307.38 3307.58 of the Revised Code effective on     5,786        

the effective date of his THE RECIPIENT'S most recent continuous   5,788        

period of receipt of a disability benefit under section 3307.431   5,789        

3307.631 of the Revised Code.                                                   

      (C)  The allowance calculated under division (B) of this     5,791        

section, exclusive of any amount added under division (B)(2) of    5,792        

this section based on section 3307.403 3307.67 of the Revised      5,793        

                                                          123    


                                                                 
Code, shall be the base for all future additional allowances       5,795        

under section 3307.403 3307.67 of the Revised Code.                5,796        

      The anniversary date for future additional allowances under  5,798        

section 3307.403 3307.67 of the Revised Code shall be the          5,799        

effective date of the recipient's most recent continuous period    5,801        

of receipt of a disability benefit under section 3307.431          5,802        

3307.631 of the Revised Code.                                      5,803        

      (D)  The retirement allowance determined under this section  5,805        

shall be paid as provided in section 3307.38 3307.58 of the        5,806        

Revised Code.                                                      5,807        

      Sec. 3307.50 3307.60.  (A)  Upon application for retirement  5,816        

as provided in section 3307.38 3307.58 or 3307.39 3307.59 of the   5,818        

Revised Code, the retirant may elect to receive a single lifetime  5,819        

benefit, or may elect to receive the actuarial equivalent of the   5,821        

retirant's benefit in a lesser amount, payable for life, and       5,822        

continuing after death to a beneficiary under one of the           5,824        

following optional plans:                                                       

      (1)  Option 1.  The retirant's lesser benefit shall be paid  5,826        

for life to the sole beneficiary named at retirement.              5,828        

      (2)  Option 2.  Some other portion of the retirant's         5,830        

benefit shall be paid for life to the sole beneficiary named at    5,832        

retirement.  The beneficiary's monthly amount shall not exceed     5,834        

the monthly amount payable to the retirant during the retirant's   5,835        

lifetime.                                                                       

      (3)  Option 3.  The retirant's lesser benefit established    5,837        

as provided under option 1 or option 2 shall be paid for life to   5,839        

the sole beneficiary named at retirement, except that in the       5,841        

event of the death of the sole beneficiary or termination of a     5,842        

marital relationship between the retirant and the sole             5,843        

beneficiary the retirant may elect to return to a single lifetime  5,844        

benefit equivalent as determined by the state teachers retirement  5,845        

board, if, in the case of termination of a marital relationship,   5,847        

the election is made with the written consent of the beneficiary   5,848        

or pursuant to an order of the court with jurisdiction over        5,849        

                                                          124    


                                                                 
termination of the marital relationship.                           5,850        

      (4)  Option 4.  Upon the retirant's death before the         5,852        

expiration of a certain period from the retirement date and        5,854        

elected by the retirant, and approved by the board, the            5,856        

retirant's benefit shall be continued for the remainder of such    5,858        

period to the beneficiary.  Monthly benefits shall not be paid to  5,859        

joint beneficiaries, but they may receive the present value of     5,860        

any remaining payments in a lump sum settlement.  If all           5,861        

beneficiaries die before the expiration of the certain period,     5,862        

the present value of all payments yet remaining in such period     5,863        

shall be paid to the estate of the beneficiary last receiving.     5,864        

      (5)  Option 5.  A plan of payment established by the state   5,866        

teachers retirement board combining any of the features of         5,867        

options 1, 2, and 4.                                               5,868        

      (B)  Until the first payment is made to a former member      5,870        

under section 3307.38 3307.58 or 3307.39 3307.59 of the Revised    5,872        

Code, the former member may change the selection of a plan of      5,874        

payment.  If death occurs prior to an election of a plan of        5,876        

payment, option 1 shall be paid to the spouse or other sole        5,877        

dependent beneficiary.                                                          

      (C)  If the total benefit paid under this section is less    5,879        

than the balance in the teachers' savings fund, the difference     5,881        

shall be paid to the beneficiary provided under division (D) of    5,882        

section 3307.48 3307.562 of the Revised Code.                      5,883        

      (D)  In the case of a retirant who elected an optional plan  5,885        

prior to September 15, 1989:                                       5,886        

      (1)  The death of the spouse or other designated             5,888        

beneficiary following retirement shall, at the election of the     5,889        

retirant, cancel any optional plan selected at retirement to       5,890        

provide continuing lifetime benefits to the spouse or other        5,891        

beneficiary and return the retirant to a single lifetime benefit   5,893        

equivalent as determined by the board.                                          

      (2)  A divorce, annulment, or marriage dissolution shall,    5,895        

at the election of the retirant, cancel any optional plan          5,896        

                                                          125    


                                                                 
selected at retirement to provide continuing lifetime benefits to  5,897        

the spouse as designated beneficiary and return the retirant to a  5,899        

single lifetime benefit equivalent as determined by the board if   5,901        

the election is made with the written consent of the beneficiary   5,902        

or pursuant to an order of a court of common pleas or the court    5,903        

of another state with jurisdiction over the termination of the     5,904        

marriage.                                                                       

      (E)  Following marriage or remarriage, a retirant may elect  5,906        

a new optional plan of payment based on the actuarial equivalent   5,907        

of the retirant's single lifetime benefit, as determined by the    5,909        

board, except that if the retirant is receiving a retirement       5,910        

allowance under an optional plan that provides for continuation    5,911        

of benefits after death to a former spouse, the retirant may       5,912        

elect a new optional plan of payment only with the written         5,913        

consent of the former spouse or pursuant to an order of the court  5,914        

with jurisdiction over the termination of the marriage.  Such      5,915        

plan shall become effective the first of the month following an    5,916        

application on a form approved by the board.                       5,917        

      (F)(1)  Unless one of the following occurs, an application   5,919        

for service retirement made pursuant to section 3307.38 3307.58    5,920        

or 3307.39 3307.59 of the Revised Code by a married person shall   5,922        

be considered an election of a benefit under option 2 as provided  5,923        

for in division (A)(2) of this section under which one-half of     5,924        

the lesser benefit payable during the life of the retirant will    5,925        

be paid after death to the retirant's spouse for life as sole      5,926        

beneficiary:                                                                    

      (a)  The retirant selects an optional plan under division    5,928        

(A) of this section providing for payment after death to the       5,930        

retirant's spouse for life as sole beneficiary of more than        5,931        

one-half of the lesser benefit payable during the life of the      5,932        

retirant.                                                                       

      (b)  The retirant submits to the retirement board a written  5,934        

statement signed by the spouse attesting that the spouse consents  5,935        

to the retirant's election to receive a single lifetime annuity    5,938        

                                                          126    


                                                                 
or a payment under an optional benefit plan under which after the  5,939        

death of the retirant the surviving spouse will receive less than  5,940        

one-half of the lesser benefit payable during the life of the      5,941        

retirant.                                                                       

      (2)  An application for retirement shall include an          5,943        

explanation of all of the following:                               5,944        

      (a)  That, if the member is married, unless the spouse       5,947        

consents to another plan of payment, the member's retirement       5,948        

allowance will be paid under "option 2" and consist of the         5,949        

actuarial equivalent of the member's retirement allowance in a     5,950        

lesser amount payable for life and one-half of the lesser          5,951        

allowance continuing after death to the surviving spouse for the                

life of the spouse;                                                5,952        

      (b)  A description of the alternative plans of payment       5,955        

available with the consent of the spouse;                                       

      (c)  That the spouse may consent to another plan of payment  5,958        

and the procedure for giving consent;                                           

      (d)  That consent is irrevocable once notice of consent is   5,960        

filed with the board.                                              5,961        

      Consent shall be valid only if it is signed, in writing,     5,963        

and witnessed by a notary public.                                  5,964        

      (3)  If the retirant does not select an optional plan of     5,966        

payment as described in division (F)(1)(a) of this section and     5,967        

the board does not receive the written statement provided for in   5,968        

division (F)(1)(b) of this section, it shall determine and pay     5,969        

the retirement allowance in accordance with this division, except  5,971        

that the board may provide by rule for waiver by the board of the  5,972        

statement and payment of the benefits other than in accordance     5,973        

with this division or payment under section 3307.46 3307.56 of     5,974        

the Revised Code if the retirant is unable to obtain the           5,977        

statement due to absence or incapacity of the spouse or other      5,978        

cause specified by the board.                                      5,979        

      (G)  For the purpose of determining actuarial equivalence    5,981        

under this section, on the advice of an actuary employed by the    5,982        

                                                          127    


                                                                 
board, the board shall adopt mortality tables that may take into   5,983        

consideration the membership experience of the state teachers      5,984        

retirement system and may also include the membership experience   5,985        

of the public employees retirement system and the school           5,986        

employees retirement system.                                       5,987        

      Sec. 3307.405 3307.61.  The board of the state teachers      5,996        

retirement system BOARD shall make available to each member or     5,998        

former member receiving a monthly allowance or benefit UNDER       6,000        

SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE on or after        6,001        

January 1, 1968, who has attained the age of sixty-five years,     6,002        

and who is not eligible to receive hospital insurance benefits     6,003        

under the federal old age, survivors, and disability insurance     6,004        

program, hospital insurance coverage substantially equivalent to   6,005        

the federal hospital insurance benefits, Social Security           6,006        

Amendments of 1965, 79 Stat. 291, 42 U.S.C.A. 1395c, as amended.   6,007        

This coverage shall also be made available, to the wife, husband,  6,008        

widow, or widower of such member or former member, provided such   6,009        

wife, husband, widow, or widower has attained age sixty-five and   6,010        

is not eligible to receive hospital insurance benefits under the   6,011        

federal old age, survivors, and disability insurance program.      6,012        

The widow or widower of a member or former member shall be         6,013        

eligible for such coverage only if he or she is the recipient of   6,014        

a monthly allowance or benefit from this system.  One-half of the  6,015        

cost of the premium for such coverage shall be paid from the       6,016        

appropriate funds of the state teachers retirement system and      6,017        

one-half by the recipient of the allowance or benefit.             6,018        

      The cost of such coverage, paid from the funds of the        6,020        

system, shall be included in the employer's contribution rate      6,021        

provided by sections 3307.53 3307.28, 3307.56 3307.30, and         6,023        

3307.64 3307.31 of the Revised Code.  The retirement board is      6,024        

authorized to make all necessary rules pursuant to the purpose     6,025        

and intent of this section, and shall contract for such coverage   6,026        

as provided in section 3307.74 3307.39 of the Revised Code.        6,028        

      Notwithstanding sections 3307.53 3307.28, 3307.56 3307.30,   6,031        

                                                          128    


                                                                 
and 3307.64 3307.31 of the Revised Code, the employer's            6,032        

contribution rate shall not be increased until July 1, 1969, or    6,033        

later to reflect the increased costs created by this section.      6,034        

      Sec. 3307.42 3307.62.  (A)  The state teachers retirement    6,043        

system shall provide disability coverage to each member            6,045        

PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO         6,046        

3307.79 OF THE REVISED CODE who has at least five years of total   6,047        

service credit.                                                                 

      Not later than October 16, 1992, the state teachers          6,049        

retirement board shall give each person who is a member on July    6,050        

29, 1992, the opportunity to elect disability coverage either      6,052        

under FORMER section 3307.43 of the Revised Code or under FORMER   6,054        

section 3307.431 of the Revised Code.  The board shall mail        6,056        

notice of the election, accompanied by an explanation of the       6,057        

coverage under each of the Revised Code sections and a form on     6,058        

which the election is to be made, to each member at the member's   6,059        

last known address.  The board shall also provide the explanation               

and form to any member on the member's request.                    6,060        

      Regardless of whether the member actually receives notice    6,062        

of the right to make an election, a member who fails to file a     6,064        

valid election under this section shall be considered to have                   

elected disability coverage under section 3307.43 3307.63 of the   6,066        

Revised Code.  To be valid, an election must be made on the form   6,067        

provided by the retirement board, signed by the member, and filed  6,068        

with the board not later than one hundred eighty days after the    6,069        

date the notice was mailed, or, in the case of a form provided at  6,070        

the request of a member, a date specified by rule of the           6,071        

retirement board.  Once made, an election is irrevocable, but if   6,072        

the member ceases to be a member of the retirement system, the     6,073        

election is void.  If a person who makes an election under this    6,074        

section also makes an election under section 145.35 or 3309.39 of  6,075        

the Revised Code, the election made for the system that pays a     6,076        

disability benefit to that person shall govern the benefit.        6,077        

      Disability coverage shall be provided under section          6,079        

                                                          129    


                                                                 
3307.431 3307.631 of the Revised Code for persons who become       6,080        

members after July 29, 1992, and for members who elect under this  6,083        

division to be covered under section 3307.431 3307.631 of the      6,085        

Revised Code.                                                                   

      The retirement board may adopt rules governing elections     6,087        

made under this division.                                          6,088        

      (B)  Application for a disability benefit may be made by a   6,090        

member, by a person acting in the member's behalf, or by the       6,091        

member's employer, provided IF the member IS PARTICIPATING IN THE  6,093        

PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED       6,094        

CODE, has at least five years of total service credit, and has     6,097        

disability coverage under section 3307.43 3307.63 or 3307.431      6,098        

3307.631 of the Revised Code.  The application for a disability    6,100        

benefit shall be made on a form approved by the state teachers     6,101        

retirement board.  The benefit payable to any member whose         6,102        

application is approved shall become effective on the first day    6,103        

of the month next following the later of the following:                         

      (1)  The last day for which compensation was paid;           6,105        

      (2)  The attainment of eligibility for a disability          6,107        

benefit.                                                           6,108        

      (C)  Medical examination of the member shall be conducted    6,110        

by a competent, disinterested physician or physicians selected by  6,111        

the retirement board to determine whether the member is mentally   6,112        

or physically incapacitated for the performance of duty by a       6,113        

disabling condition, either permanent or presumed to be permanent  6,114        

for twelve continuous months following the filing of an            6,115        

application.  The disability must have occurred since last         6,117        

becoming a member, or it must have increased since last becoming   6,118        

a member to such an extent as to make the disability permanent or  6,119        

presumably permanent for twelve continuous months following the    6,120        

filing of an application.                                          6,121        

      (D)  Application for a disability benefit must be made       6,123        

within two years from the date the member's contributing service   6,124        

terminated, unless the retirement board determines that the        6,125        

                                                          130    


                                                                 
member's medical records demonstrate conclusively that at the      6,126        

time the two-year period expired, the member was physically or     6,127        

mentally incapacitated for duty as a teacher and unable to make    6,128        

application.  Application may not be made by any person receiving  6,129        

service retirement benefits under section 3307.38 3307.58 or       6,130        

3307.39 3307.59 of the Revised Code or any person who, pursuant    6,132        

to section 3307.46 3307.56 of the Revised Code, has been paid the  6,133        

accumulated contributions standing to the credit of the person's   6,135        

individual account in the teachers' savings fund.                  6,136        

      (E)  If the physician or physicians determine that the       6,140        

member qualifies for a disability benefit, the retirement board    6,141        

concurs with the determination, and the member agrees to medical   6,142        

treatment as specified in division (G) of this section, the        6,143        

member shall receive a disability benefit under section 3307.43    6,144        

3307.63 or 3307.431 3307.631 of the Revised Code.  If such         6,146        

physician or physicians determine that the member does not         6,147        

qualify for a disability benefit, the report of the examiner or    6,148        

examiners shall be evaluated by a board of medical review          6,149        

composed of three physicians appointed by the retirement board.    6,150        

      (F)  The state teachers retirement board shall render an     6,152        

order determining whether or not the applicant shall be granted a  6,153        

disability benefit.  Notification to the applicant shall be        6,154        

issued, and upon the request of an applicant who is denied a       6,155        

disability benefit, a hearing or appeal relative to such order     6,156        

shall be conducted in accordance with procedures established by    6,157        

the retirement board.                                              6,158        

      (G)  The state teachers retirement board shall adopt rules   6,161        

requiring each disability benefit recipient, as a condition of     6,162        

continuing to receive a disability benefit, to agree in writing    6,163        

to obtain any medical treatment recommended by the board's         6,164        

physician and submit medical reports regarding the treatment.  If  6,166        

the board determines that a disability benefit recipient is not    6,167        

obtaining the medical treatment or the board does not receive a                 

required medical report, the disability benefit shall be           6,168        

                                                          131    


                                                                 
suspended until the treatment is obtained, the report is received  6,170        

by the board, or the board's physician certifies that the          6,171        

treatment is no longer helpful or advisable.  Should the           6,173        

recipient's failure to obtain treatment or submit a medical                     

report continue for one year, the recipient's right to the         6,175        

disability benefit shall be terminated as of the effective date    6,176        

of the original suspension.                                                     

      (H)  If an employer files an application for a disability    6,178        

benefit as a result of a member having been separated from         6,179        

service because the member is considered to be incapacitated for   6,181        

the performance of duty, and the board denies the disability                    

benefit, the board shall so certify to the employer and such THE   6,182        

employer shall restore the member to the member's previous         6,184        

position and salary or to a similar position and salary.           6,185        

      Sec. 3307.43 3307.63.  A member PARTICIPATING IN THE PLAN    6,195        

DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE who   6,196        

has elected disability coverage under this section, has, not       6,198        

attained age sixty, and is determined by the state teachers        6,200        

retirement board under section 3307.42 3307.62 of the Revised      6,202        

Code to qualify for a disability benefit shall be retired on       6,203        

disability under this section.                                                  

      Upon disability retirement, a member shall receive an        6,205        

annual amount that shall consist of:                               6,206        

      (A)  An annuity having a reserve equal to the amount of the  6,208        

member's accumulated contributions at that time;                   6,209        

      (B)  A pension that shall be the difference between the      6,211        

annuity and an annual amount determined by multiplying the number  6,212        

of years of Ohio service credit of such member, and in addition    6,213        

the number of years and fraction of a year between the effective   6,214        

date of his THE MEMBER'S disability retirement and the date he     6,216        

THE MEMBER attained age sixty, assuming continuous service, by     6,217        

eighty-six dollars, or by two per cent of his THE MEMBER'S final   6,218        

average salary, whichever is greater. Such disability retirement   6,220        

shall not be less than thirty per cent nor more than seventy-five  6,221        

                                                          132    


                                                                 
per cent of his THE MEMBER'S final average salary, except that it  6,223        

shall not exceed any limit to which the retirement system is       6,224        

subject under section 415 of the "Internal Revenue Code of 1986,"  6,225        

100 Stat. 2085, 26 U.S.C.A. 415, as amended.                                    

      If the member is not receiving a disability benefit under    6,227        

section 3307.41 3307.57 of the Revised Code, but is receiving a    6,229        

disability benefit from either the public employees retirement     6,230        

system or the school employees retirement system, then such        6,231        

member shall not be eligible for service credit based upon the     6,232        

number of years and fractions thereof between the date of          6,233        

disability and the date he THE MEMBER attained age sixty as        6,234        

otherwise provided in this section.                                6,236        

      A disability retirant under this section whose disability    6,238        

retirement has been terminated, when eligible, may apply for       6,239        

service retirement provided by section 3307.38 3307.58 of the      6,240        

Revised Code.                                                      6,242        

      Sec. 3307.431 3307.631.  (A)  A member with PARTICIPATING    6,252        

IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE                     

REVISED CODE WHO HAS disability coverage under this section who    6,254        

AND is determined by the state teachers retirement board under     6,255        

section 3307.42 3307.62 of the Revised Code to qualify for a       6,257        

disability benefit shall receive a disability allowance under      6,258        

this section.  The allowance shall be an annual amount equal to    6,259        

the greater of the following:                                                   

      (1)  Forty-five per cent of the member's final average       6,261        

salary;                                                            6,262        

      (2)  The member's total service credit multiplied by two     6,264        

and one-tenth TWO-TENTHS per cent of his THE MEMBER'S final        6,266        

average salary, not exceeding sixty per cent of his THE MEMBER'S   6,268        

final average salary.                                                           

      (B)  Sufficient reserves for payment of the disability       6,270        

allowance shall be transferred to the annuity and pension reserve  6,271        

fund from the employers' trust fund.  The accumulated              6,272        

contributions of the member shall remain in the teachers' savings  6,273        

                                                          133    


                                                                 
fund.  No part of the allowance paid under this section shall be   6,274        

charged against the member's accumulated contributions.            6,275        

      (C)  A disability allowance paid under this section shall    6,277        

terminate at the earliest of the following:                        6,278        

      (1)  The effective date of service retirement under section  6,280        

3307.38 3307.57 or 3307.41 3307.58 of the Revised Code;            6,282        

      (2)  The date the allowance is terminated under section      6,284        

3307.44 3307.64 of the Revised Code;                               6,285        

      (3)  The later of the last day of the month in which the     6,287        

recipient attains age sixty-five, or the last day of the month in  6,288        

which the benefit period ends as follows:                          6,289        

    Attained Age at Effective Date                                 6,291        

      of Disability Allowance          Benefit Period              6,292        

           60 or 61                       60 months                6,293        

           62 or 63                       48 months                6,294        

           64 or 65                       36 months                6,295        

           66, 67, or 68                  24 months                6,296        

           69 or older                    12 months                6,297        

      Sec. 3307.44 3307.64.  A disability benefit recipient,       6,307        

notwithstanding section 3319.13 of the Revised Code, shall retain  6,308        

membership in the state teachers retirement system and shall be    6,309        

considered on leave of absence during the first five years         6,311        

following the effective date of a disability benefit.                           

      The state teachers retirement board shall require any        6,313        

disability benefit recipient to submit to an annual medical        6,315        

examination by a physician selected by the board, except that the  6,316        

board may waive the medical examination if the board's physician   6,317        

certifies that the recipient's disability is ongoing.  If a        6,318        

disability benefit recipient refuses to submit to a medical        6,320        

examination, the recipient's disability benefit shall be                        

suspended until the recipient withdraws the refusal.  If the       6,322        

refusal continues for one year, all the recipient's rights under   6,324        

and to the disability benefit shall be terminated as of the        6,325        

effective date of the original suspension.                         6,326        

                                                          134    


                                                                 
      After the examination, the examiner shall report and         6,329        

certify to the board whether the disability benefit recipient is   6,330        

no longer physically and mentally incapable of resuming the        6,331        

service from which the recipient was found disabled.  If the       6,333        

board concurs in a report by the examining physician that the      6,335        

disability benefit recipient is no longer incapable, the payment   6,337        

of a disability benefit shall be terminated not later than the     6,338        

following thirty-first day of August or upon employment as a       6,339        

teacher prior thereto.  If the leave of absence has not expired,   6,340        

the board shall so certify to the disability benefit recipient's   6,341        

last employer before being found disabled that the recipient is    6,342        

no longer physically and mentally incapable of resuming service    6,344        

that is the same or similar to that from which the recipient was   6,345        

found disabled.  If the recipient was under contract at the time   6,347        

the recipient was found disabled, the employer by the first day    6,349        

of the next succeeding year shall restore the recipient to the     6,350        

recipient's previous position and salary or to a position and      6,351        

salary similar thereto, unless the recipient was dismissed or      6,353        

resigned in lieu of dismissal for dishonesty, misfeasance,         6,354        

malfeasance, or conviction of a felony.                            6,355        

      A disability benefit shall terminate if the disability       6,358        

benefit recipient becomes employed as a teacher in any public or   6,359        

private school or institution in this state or elsewhere.  An      6,360        

individual receiving a disability benefit from the state teachers  6,362        

retirement system shall be ineligible for any employment as a      6,363        

teacher and it shall be unlawful for any employer to employ the    6,364        

individual as a teacher.  If any employer should employ or         6,366        

reemploy the individual prior to the termination of a disability   6,367        

benefit, the employer shall file notice of employment with the     6,368        

state teachers retirement board designating the date of the        6,370        

employment.  If the individual should be paid both a disability    6,372        

benefit and also compensation for teaching service for all or any  6,373        

part of the same month, the secretary of the state teachers        6,374        

retirement board shall certify to the employer or to the                        

                                                          135    


                                                                 
superintendent of public instruction the amount of the disability  6,375        

benefit received by the individual during the employment, which    6,377        

amount shall be deducted from any amount due the employing         6,378        

district under Chapter 3317. of the Revised Code or shall be paid  6,379        

by the employer to the annuity and pension reserve fund.           6,380        

      Each disability benefit recipient shall file with the board  6,384        

an annual statement of earnings, current medical information on    6,386        

the recipient's condition, and any other information required in   6,387        

rules adopted by the board.  The board may waive the requirement   6,389        

that a disability benefit recipient file an annual statement of    6,390        

earnings or current medical information if the board's physician   6,391        

certifies that the recipient's disability is ongoing.              6,392        

      The board shall annually examine the information submitted   6,394        

by the recipient.  If a disability benefit recipient refuses to    6,395        

file the statement or information, the disability benefit shall    6,397        

be suspended until the statement and information are filed.  If    6,398        

the refusal continues for one year, the recipient's right to the   6,399        

disability benefit shall be terminated as of the effective date    6,400        

of the original suspension.                                        6,401        

      A disability benefit also may be terminated by the board at  6,403        

the request of the disability benefit recipient.                   6,404        

      If disability retirement under section 3307.43 3307.63 of    6,406        

the Revised Code is terminated for any reason, the annuity and     6,407        

pension reserves at that time in the annuity and pension reserve   6,408        

fund shall be transferred to the teachers' savings fund and the    6,409        

employers' trust fund, respectively.  If the total disability      6,410        

benefit paid was less than the amount of the accumulated           6,411        

contributions of the member transferred to the annuity and         6,412        

pension reserve fund at the time of the member's disability        6,413        

retirement, then the difference shall be transferred from the      6,414        

annuity and pension reserve fund to another fund as required.  In  6,415        

determining the amount of a member's account following the         6,416        

termination of disability retirement for any reason, the total     6,417        

amount paid shall be charged against the member's refundable       6,418        

                                                          136    


                                                                 
account.                                                           6,419        

      If a disability allowance paid under section 3307.431        6,421        

3307.631 of the Revised Code is terminated for any reason, the     6,423        

reserve on the allowance at that time in the annuity and pension   6,424        

reserve fund shall be transferred from that fund to the            6,425        

employers' trust fund.                                                          

      If a former disability benefit recipient again becomes a     6,427        

contributor, other than as an other system retirant under section  6,428        

3307.381 3307.35 of the Revised Code, to this retirement system,   6,430        

the school employees retirement system, or the public employees    6,431        

retirement system, and completes at least two additional years of  6,432        

service credit, the former disability benefit recipient shall      6,433        

receive credit for the period as a disability benefit recipient.   6,434        

      Sec. 3307.49 3307.66.  (A)  As used in this section,         6,443        

"physically or mentally incompetent" means incapable of earning a  6,445        

living because of a physically or mentally disabling condition.    6,446        

Physical or mental incompetency may be determined by a court or    6,447        

by a doctor of medicine or osteopathic medicine appointed by the   6,448        

state teachers retirement board.                                   6,449        

      (B)  For the purposes of this section:                       6,451        

      (1)  A qualified spouse is the surviving spouse of a         6,454        

deceased member of the state teachers retirement system            6,455        

PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO         6,456        

3307.79 OF THE REVISED CODE who is one of the following:           6,457        

      (a)  Age sixty-two or any age if the deceased member had     6,459        

ten or more years of Ohio service credit;                          6,460        

      (b)  Caring for a qualified child;                           6,462        

      (c)  Adjudged physically or mentally incompetent;            6,464        

      (d)  Any age if the deceased member was eligible for a       6,466        

service retirement allowance as provided in section 3307.38        6,467        

3307.58 of the Revised Code and the surviving spouse elects to     6,469        

receive a benefit under division (C)(1) of this section.           6,470        

      (2) A qualified child is the child of a deceased member      6,475        

PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO                      

                                                          137    


                                                                 
3307.79 OF THE REVISED CODE who is both of the following:          6,476        

      (a)  Unmarried;                                              6,478        

      (b)  Under age eighteen, or under age twenty-two if          6,481        

attending an institution of learning or training pursuant to a     6,482        

program designed to complete in each school year the equivalent    6,483        

of at least two-thirds of the full-time curriculum requirements    6,484        

of such institution and as further determined by board policy, or  6,485        

any age if adjudged physically or mentally incompetent.            6,486        

      (3)  A qualified parent is a dependent parent of a deceased  6,490        

member PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO               

3307.79 OF THE REVISED CODE who is age sixty-five or older.        6,491        

      (4)  A person is a "qualified survivor" if the person        6,493        

qualifies as a surviving spouse, child, or dependent parent.       6,496        

      (C)  Except as provided in division (G)(1) of this section,  6,499        

in lieu of accepting the payment of the accumulated account of a   6,500        

member PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO  6,501        

3307.79 OF THE REVISED CODE who dies before service retirement, a               

beneficiary, as determined in section 3307.48 3307.562 of the      6,502        

Revised Code, may elect to forfeit the accumulated account and to  6,504        

substitute benefits under this division.                           6,505        

      (1)  If a deceased member was eligible for a service         6,507        

retirement allowance as provided in section 3307.38 3307.58 or     6,508        

3307.39 3307.59 of the Revised Code, a surviving spouse or an      6,510        

individual designated as the member's sole beneficiary pursuant    6,511        

to division (B) of section 3307.48 3307.562 of the Revised Code    6,512        

who was a qualified child or dependent parent of the member or     6,514        

received one-half or more of support from the member during the    6,515        

twelve-month period preceding the member's death may elect to      6,516        

receive a monthly benefit computed as the joint-survivor           6,517        

allowance designated as option 1 in section 3307.50 3307.60 of     6,518        

the Revised Code, which the member would have received had the     6,520        

member retired on the last day of the month of death and had the   6,522        

member at that time selected such joint-survivor plan.  Payment    6,524        

shall begin with the month subsequent to the member's death.       6,525        

                                                          138    


                                                                 
      (2)  If a deceased member had completed at least one and     6,527        

one-half years of credit for Ohio service, with at least           6,528        

one-quarter year of Ohio contributing service credit within the    6,529        

two and one-half years prior to the date of death, or was          6,530        

receiving at the time of death a disability benefit as provided    6,531        

in section 3307.43 3307.63 or 3307.431 3307.631 of the Revised     6,533        

Code, a surviving spouse or other qualified survivor may elect to  6,535        

receive monthly benefits as provided in division (C)(2) of this    6,536        

section.  The surviving spouse or other qualified survivor shall   6,537        

elect one of the following methods of calculating benefits         6,539        

elected under division (C)(2) of this section, which shall,        6,540        

except as provided in division (G)(1) of this section, remain in   6,541        

effect without regard to any change in the number of qualified     6,542        

survivors:                                                                      

                                                   Or              6,544        

  (a) Number        Annual benefit as a        Monthly benefit     6,545        

of qualified       per cent of member's         shall not be       6,546        

  survivors        final average salary         less than          6,547        

     1                      25%                   $ 96             6,550        

     2                      40                     186             6,551        

     3                      50                     236             6,552        

     4                      55                     236             6,553        

     5 or more              60                     236             6,554        

                                   Annual benefit as a             6,557        

                                  per cent of member's             6,558        

    (b) Years of service          final average salary             6,559        

              20                            29%                    6,562        

              21                            33                     6,563        

              22                            37                     6,564        

              23                            41                     6,565        

              24                            45                     6,566        

              25                            48                     6,567        

              26                            51                     6,568        

              27                            54                     6,569        

                                                          139    


                                                                 
              28                            57                     6,570        

              29                            60                     6,571        

      (D)  If a benefit is calculated pursuant to division         6,574        

(C)(2)(a) of this section, benefits to a surviving spouse shall    6,575        

be paid in the amount determined for the first qualifying          6,576        

survivor in division (C)(2)(a) of this section, but shall not be   6,578        

less than one hundred six dollars per month if the deceased        6,579        

member had ten or more years of Ohio service credit.  All other    6,580        

qualifying survivors shall share equally in the benefit or         6,582        

remaining portion thereof.                                         6,583        

      If a benefit is calculated pursuant to division (C)(2)(b)    6,585        

of this section and is payable to more than one qualified          6,586        

survivor, the benefit shall be apportioned equally among the       6,588        

qualified survivors, except that if there is a surviving spouse,   6,590        

the portion of the benefit allocated to the surviving spouse       6,591        

shall be as follows:                                               6,592        

Number of                                                          6,594        

     survivors             Spouse's share of total benefit         6,595        

        2                                62.5%                     6,598        

        3                                50.0%                     6,599        

        4                                45.45%                    6,600        

        5 or more                        41.67%                    6,601        

      (E)  Benefits payable under division (C)(2) of this section  6,604        

shall begin or resume on the first day of the month following the  6,605        

day a person becomes a qualified survivor and terminate or be      6,607        

suspended on the first day of the month following the day the      6,608        

person ceases to be a qualified survivor.                          6,610        

      Benefits to a qualified survivor shall terminate upon a      6,613        

first marriage, abandonment, adoption, or during active military   6,615        

service.  Benefits to a deceased member's surviving spouse that    6,616        

were terminated under a former version of this section that                     

required termination due to remarriage and were not resumed prior  6,617        

to the effective date of this amendment shall resume on the first  6,618        

day of the month immediately following receipt by the board of an  6,619        

                                                          140    


                                                                 
application on a form provided by the board.                       6,620        

      Upon the death of any subsequent spouse who was a member of  6,623        

the public employees retirement system, state teachers retirement  6,624        

system, or school employees retirement system, the surviving       6,625        

spouse of such member may elect to continue receiving benefits     6,626        

under this division, or to receive survivor's benefits, based      6,627        

upon the subsequent spouse's membership in one or more of the      6,628        

systems, for which such surviving spouse is eligible under this    6,629        

section or section 145.45 or 3309.45 of the Revised Code.  If the  6,630        

surviving spouse elects to continue receiving benefits under this  6,631        

division, such election shall not preclude the payment of          6,632        

benefits under this division to any other qualified survivor.      6,633        

      (F)  The beneficiary of a member who is also a member of     6,635        

the public employees retirement system, or the school employees    6,636        

retirement system, must forfeit the member's accumulated           6,637        

contributions in those systems, if the beneficiary elects to       6,638        

receive a benefit under division (C) of this section.  Such        6,640        

benefit shall be exclusively governed by section 3307.41 3307.57   6,641        

of the Revised Code.                                               6,642        

      (G)(1)  Regardless of whether the member is survived by a    6,645        

spouse or designated beneficiary, if the state teachers            6,646        

retirement system receives notice that a deceased member           6,648        

described in division (C)(1) or (2) of this section has one or     6,649        

more qualified children, all persons who are qualified survivors   6,651        

under division (C)(2) of this section shall receive monthly        6,654        

benefits as provided in division (C)(2) of this section.           6,655        

      If, after determining the monthly benefits to be paid under  6,657        

division (C)(2) of this section, the system receives notice that   6,658        

there is a qualified survivor who was not considered when the      6,659        

determination was made, the system shall, notwithstanding section  6,660        

3307.711 3307.42 of the Revised Code, recalculate the monthly      6,661        

benefits with that qualified survivor included, even if the        6,663        

benefits to qualified survivors already receiving benefits are     6,664        

reduced as a result.  The benefits shall be calculated as if the                

                                                          141    


                                                                 
qualified survivor who is the subject of the notice became         6,665        

eligible on the date the notice was received and shall be paid to  6,666        

qualified survivors effective on the first day of the first month  6,667        

following the system's receipt of the notice.                      6,668        

      If the retirement system did not receive notice that a       6,670        

deceased member has one or more qualified children prior to        6,672        

making payment under section 3307.48 3307.562 of the Revised Code  6,673        

to a beneficiary as determined by the retirement system, the       6,674        

payment is a full discharge and release of the system from any     6,675        

future claims under this section or section 3307.48 3307.562 of    6,676        

the Revised Code.                                                               

      (2)  If benefits under division (C)(2) of this section to    6,679        

all persons, or to all persons other than a surviving spouse or    6,681        

sole beneficiary, terminate, there are no children under the age                

of twenty-two years, and the surviving spouse or beneficiary       6,684        

qualifies for benefits under division (C)(1) of this section, the  6,685        

surviving spouse or beneficiary may elect to receive benefits      6,686        

under division (C)(1) of this section.  The benefit shall be       6,688        

calculated based on the age of the spouse or beneficiary at the    6,689        

time of the member's death and is effective on the first day of    6,690        

the month following receipt by the board of an application for     6,691        

benefits under division (C)(1) of this section.                    6,692        

      (H)  If the benefits due and paid under division (C) of      6,694        

this section are in a total amount less than the member's          6,695        

accumulated account that was transferred from the teachers'        6,696        

savings fund, school employees retirement fund, and public         6,697        

employees retirement fund, to the survivors' benefit fund, then    6,698        

the difference between the total amount of the benefits paid       6,699        

shall be paid to the beneficiary under section 3307.48 3307.562    6,701        

of the Revised Code.                                               6,702        

      Sec. 3307.661.  ON THE DEATH OF A RETIRANT OR DISABILITY     6,704        

BENEFIT RECIPIENT WHO AT THE TIME OF DEATH IS RECEIVING, UNDER     6,705        

THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED   6,706        

CODE, A SERVICE RETIREMENT ALLOWANCE OR DISABILITY BENEFIT, THE    6,708        

                                                          142    


                                                                 
STATE TEACHERS RETIREMENT SYSTEM SHALL MAKE A LUMP-SUM PAYMENT OF  6,709        

ONE THOUSAND DOLLARS TO ANY DESIGNATED OR QUALIFIED BENEFICIARY    6,710        

UNDER DIVISION (D) OF SECTION 3307.562 OF THE REVISED CODE.  IF    6,711        

THERE IS NO BENEFICIARY, THE STATE TEACHERS RETIREMENT BOARD MAY   6,713        

APPROVE PAYMENT TO EITHER THE PERSON RESPONSIBLE FOR THE BURIAL    6,714        

EXPENSES OR TO THE DECEDENT'S ESTATE FOLLOWING THE COMPLETION OF   6,715        

AN APPLICATION ON A FORM APPROVED BY THE BOARD.                    6,716        

      Sec. 3307.403 3307.67.  (A)  Beginning April 1, 1971, and    6,725        

each year thereafter, the board of the state teachers retirement   6,727        

system BOARD shall determine the average percentage change in the  6,729        

consumer price index prepared by the United States bureau of       6,730        

labor statistics (U.S. City Average for Urban Wage Earners and     6,731        

Clerical Workers:  "All Items 1982-84=100") for the                6,732        

twelve-calendar-month period prior to the first day of January     6,734        

over the next preceding twelve-calendar-month period, as reported  6,735        

by the bureau.                                                                  

      Upon a determination by the board in any year that the       6,737        

change in the consumer price index is an increase or that the      6,739        

change plus the accumulation described in division (B) of this     6,740        

section is an increase, the board shall increase each allowance    6,741        

or benefit payable under this chapter SECTIONS 3307.50 TO 3307.79  6,742        

OF THE REVISED CODE by a percentage equal to the percentage        6,743        

increase in the consumer price index or to that increase plus the  6,744        

accumulation, except that the increase shall not exceed three per  6,745        

cent and no allowance or benefit shall exceed the limit            6,747        

established by section 415 of the "Internal Revenue Code of        6,748        

1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended.                6,749        

      The first increase is payable to all persons becoming        6,751        

eligible after June 30, 1971, upon such persons receiving an       6,752        

allowance or benefit for twelve months.  The increased amount is   6,754        

payable for the ensuing twelve-month period or until the next      6,755        

increase is granted under this section, whichever is later.        6,756        

Subsequent increases shall be determined from the date of the      6,757        

first increase paid to the former member in the case of an                      

                                                          143    


                                                                 
allowance being paid a beneficiary under an option, or from the    6,758        

date of the first increase to the survivor first receiving an      6,759        

allowance or benefit in the case of an allowance or benefit being  6,760        

paid to the subsequent survivors of the former member.             6,761        

      The date of the first increase under this section becomes    6,764        

the anniversary date for any future increases.                                  

      The allowance or benefit used in the first calculation of    6,766        

an increase under this section shall remain as the base for all    6,767        

future increases, unless a new base is established.                6,768        

      (B)  Any percentage of change in the consumer price index    6,770        

in any year that is in excess of three per cent shall be           6,771        

accumulated and used to determine increases under this section in  6,772        

subsequent years.  Any percentage of change in the consumer price  6,773        

index accumulated by an eligible person prior to the effective     6,774        

date of this amendment SEPTEMBER 27, 1996, shall be used in        6,775        

determining any future increases under this section.               6,776        

      (C)  The board shall make all rules necessary to carry out   6,778        

this section.                                                      6,779        

      Sec. 3307.408 3307.671.  In December, 1980, and in December  6,789        

of each year thereafter, the state teachers retirement board may   6,790        

allocate an amount from the guarantee fund created in division     6,791        

(E) of section 3307.65 3307.14 of the Revised Code to establish a  6,792        

temporary supplemental benefit fund for the purpose of making a    6,794        

lump sum benefit payment to all persons receiving an allowance,    6,795        

pension, or benefit under Chapter 3307. SECTIONS 3307.50 TO        6,796        

3307.79 of the Revised Code for each of the twelve months          6,798        

preceding the first day of the following January.                  6,799        

      On or after July 1, 1980, and on or after the first day of   6,801        

July of each year thereafter, the board may determine the amount   6,802        

to be placed in a temporary supplemental benefit fund.  Such       6,803        

amount, if placed, shall be not more than twenty-five per cent of  6,804        

the income from investments for the twelve months preceding the    6,805        

first day of July not otherwise required to be credited to the     6,806        

several funds set forth in section 3307.65 3307.14 of the Revised  6,808        

                                                          144    


                                                                 
Code.                                                                           

      The board shall adopt rules to administer this supplemental  6,810        

benefit.  The rules shall recognize the effective date of the      6,811        

allowance, pension, or benefit and the years of Ohio service       6,812        

credit for each recipient as an equitable basis for allocating     6,813        

the amount payable to each recipient.                              6,814        

      If the board determines that a supplemental benefit shall    6,816        

be paid under this section, it shall pay such amount within sixty  6,817        

calendar days following its allocation to the supplemental         6,818        

benefit fund.                                                      6,819        

      Amounts paid pursuant to this section shall not be included  6,821        

in the base for increasing an allowance, pension, or benefit       6,822        

provided in section 3307.403 3307.67 of the Revised Code and       6,823        

shall not incur any obligation or liability for future payments    6,825        

under this section.                                                6,826        

      Sec. 3307.371 3307.69.  (A)  On and after the first day of   6,835        

the month following the effective date of this section DECEMBER    6,837        

14, 1992, each person eligible to receive a benefit, pursuant to   6,838        

FORMER sections 3307.38, 3307.41, 3307.43, 3307.50, AND division   6,839        

(C)(1) of FORMER section 3307.49, and section 3307.50 of the       6,841        

Revised Code, that was based upon an award made effective before   6,842        

June 30, 1955, shall have the benefit payable as of September 30,  6,843        

1974, recalculated by the state teachers retirement board so that  6,844        

each such person shall receive an annual single lifetime benefit   6,845        

or its actuarial equivalent of not less than one hundred forty     6,846        

dollars for each year of the member's total service credit,        6,847        

except that service credit exceeding thirty-two years shall not    6,848        

be used in the recalculation, and a final average salary           6,849        

limitation shall not be applied.                                                

      If the amount of the benefit recalculated under this         6,851        

division is less than the amount that is payable on the effective  6,852        

date of this section, then the greater benefit shall be            6,853        

continued.                                                         6,854        

      (B)  On and after the first day of the month following the   6,856        

                                                          145    


                                                                 
effective date of this section DECEMBER 14, 1992, each person      6,858        

receiving a benefit, pursuant to FORMER sections 3307.38,          6,859        

3307.41, 3307.43, 3307.50 AND division (C)(1) of FORMER section    6,861        

3307.49, and section 3307.50 of the Revised Code, that was         6,863        

effective on and after June 30, 1955, through June 30, 1971,                    

shall be paid an increased benefit as follows:                     6,864        

Effective Date of the              Per Cent of Increase:           6,866        

  Member's Benefit:                                                6,867        

June 30, 1955, through                                                          

   June 29, 1959                           33                      6,868        

June 30, 1959, through                                                          

   October 31, 1965                        21                      6,869        

November 1, 1965 through                                                        

   June 30, 1968                           14                      6,870        

July 1, 1968, through                                                           

   June 30, 1971                            5                      6,871        

      The increase shall be applied to the benefit payable on the  6,873        

effective date of this section DECEMBER 14, 1992.                  6,874        

      (C)  On and after the first day of the month following the   6,876        

effective date of this section DECEMBER 14, 1992, each person      6,878        

receiving or qualified to receive a benefit, pursuant to division  6,879        

(C)(2) of FORMER section 3307.49 of the Revised Code, that was     6,880        

effective on and after June 14, 1951, through August 26, 1970,     6,881        

shall receive an increase in such benefit in the amount of twenty  6,882        

per cent.                                                                       

      Sec. 3307.382 3307.691.  On and after the effective date of  6,891        

this section AUGUST 20, 1976, the allowances of retirants          6,894        

receiving benefits based upon an award from the state teachers     6,895        

retirement system made before July 1, 1971, shall have the         6,896        

benefit recalculated by the state teachers retirement system so    6,897        

that each such person shall receive an annual lifetime benefit or  6,898        

its actuarial equivalent of not less than one hundred forty        6,899        

dollars for each year of the member's total service credit,        6,900        

multiplied by the total number of years of service credit, except  6,901        

                                                          146    


                                                                 
that service credit exceeding thirty-two years shall not be used   6,902        

in the recalculation, and a final average salary limitation shall  6,903        

not be applied.                                                                 

      If the amount of the benefit recalculated under this         6,905        

section is less than the amount that is payable on the effective   6,906        

date of this section AUGUST 20, 1976, then the greater benefit     6,908        

shall be continued.                                                6,909        

      Sec. 3307.384 3307.692.  A retirant who on the effective     6,918        

date of this amendment AUGUST 6, 1997, is eligible to receive an   6,922        

annual single lifetime benefit under FORMER section 3307.38,       6,923        

3307.41, or 3307.50 of the Revised Code of less than nine          6,925        

thousand six hundred dollars or its actuarial equivalent shall     6,926        

have that benefit increased to nine thousand six hundred dollars   6,928        

or its actuarial equivalent if the benefit is based on an award                 

arising from thirty or more years of Ohio service credit.  The     6,930        

benefit increase provided by this amendment SECTION shall take     6,931        

effect on the first day of the first month following the           6,933        

effective date of this amendment AUGUST 6, 1997, and shall not be  6,935        

subject to any final average salary limitation.                                 

      Sec. 3307.401 3307.693.  On and after October 1, 1957, all   6,944        

persons in receipt of, or who are or become eligible to receive,   6,946        

a monthly allowance, pension, or other benefit effective prior to  6,947        

June 29, 1955, which is payable or becomes payable pursuant to     6,948        

the provisions of FORMER sections 3307.26, 3307.38, 3307.43, and   6,949        

3307.50 of the Revised Code, or an allowance payable at any time   6,951        

under an option elected by a member and effective prior to that    6,952        

date, shall be paid an increased allowance, pension, or benefit    6,953        

as follows:                                                        6,954        

      (A)  An amount determined by increasing the original         6,956        

allowance, pension, or benefit by the following percentages as     6,957        

determined by the calendar year in which the allowance, pension,   6,958        

or benefit became effective:                                       6,959        

              Calendar Year              Per Cent of               6,961        

                Effective                 Increase                              

                                                          147    


                                                                 
                1921-1939                    100                   6,962        

                  1940                        94                                

                  1941                        89                   6,963        

                  1942                        77                                

                  1943                        70                                

                  1944                        68                   6,964        

                  1945                        66                                

                  1946                        55                                

                  1947                        35                   6,965        

                  1948                        23                                

                  1949                        25                                

                  1950                        23                   6,966        

                  1951                         8                                

                  1952                         4                                

                  1953                         3                   6,967        

                  1954                         2                                

                  Prior to June 29, 1955       2                   6,968        

      (B)  If the amount of any such allowance, pension, or other  6,971        

benefit is increased by division (A) of this section to an amount  6,972        

less than one hundred ten per cent of the present amount payable   6,973        

immediately prior to October 1, 1957, such present amount shall    6,974        

be increased by ten per cent.                                      6,975        

      (C)  On and after August 1, 1959, the monthly allowance,     6,977        

pension, or other benefit effective prior to June 29, 1955,        6,978        

(exclusive of any amount receivable monthly by reason of a         6,979        

voluntary deposit made for additional annuity, or for purchase of  6,980        

out-of-state credit on or after June 25, 1945), together with the  6,981        

supplemental allowance payable pursuant to divisions (A) and (B)   6,982        

of this section, shall be increased by twelve per cent.            6,983        

      (D)  Effective November 1, 1965, the allowances of all       6,985        

persons who retired before June 30, 1955, and who are receiving    6,986        

benefits as of October 31, 1965, except those granted under        6,987        

FORMER section 3307.49 of the Revised Code, shall be increased     6,988        

ten dollars per month, notwithstanding the seventy-five per cent   6,989        

                                                          148    


                                                                 
final average salary limitation in FORMER section 3307.38 of the   6,990        

Revised Code and the sixty per cent final average salary           6,992        

limitation in FORMER section 3307.43 of the Revised Code.          6,993        

      (E)  Effective November 1, 1965, the allowances of all       6,995        

persons who retired on or after June 30, 1955, and who are         6,996        

receiving benefits as of October 31, 1965, except those granted    6,997        

under FORMER section 3307.49 of the Revised Code, but including    6,998        

allowances payable at any time under an option elected by a        6,999        

member, shall be increased by ten dollars per month, which when    7,000        

added to the allowance in effect on October 31, 1965, shall not    7,001        

exceed the seventy-five per cent final average salary limitation   7,002        

in FORMER section 3307.38 of the Revised Code or the sixty per     7,003        

cent final average salary limitation in FORMER section 3307.43 of  7,004        

the Revised Code, provided that the increase shall not be less     7,006        

than six dollars per month.                                        7,007        

      (F)  Beginning November 1, 1965, the monthly benefit         7,009        

payable under division (C)(2) of FORMER section 3307.49 of the     7,010        

Revised Code shall be increased six dollars for each survivor      7,011        

beneficiary receiving a benefit on October 31, 1965, and for each  7,012        

successor to such benefit.  Beginning November 1, 1965, all        7,013        

survivor beneficiaries receiving benefits as of October 31, 1965,  7,014        

under division (C)(1) of FORMER section 3307.49 of the Revised     7,015        

Code shall be increased six dollars per month.                     7,016        

      On or before August 1, 1982, and on or before the first day  7,018        

of August in each year thereafter, the state teachers retirement   7,019        

board shall certify to the treasurer of state the amount required  7,020        

to be paid in the preceding fiscal year under divisions (A) and    7,021        

(B) of this section.  Upon receipt of this certification, the      7,022        

treasurer of state shall pay the amount certified.  The amount     7,023        

received by the state teachers retirement board shall be credited  7,024        

to the proper fund from which such additional payments are paid.   7,025        

      Sec. 3307.402 3307.694.  On and after July 1, 1968, all      7,034        

allowances, pensions, or other benefits which were payable before  7,036        

July 1, 1968, pursuant to the provisions of FORMER sections        7,037        

                                                          149    


                                                                 
3307.26, 3307.38, 3307.41, 3307.43, 3307.49, and 3307.50 of the    7,038        

Revised Code, shall be increased by the percentages determined by  7,039        

the effective date of the allowance, pension, or benefit, as       7,040        

follows:                                                                        

      Effective Date of Benefit     Percentage of Increase         7,042        

            Calendar Year                                          7,043        

      1920 through 1955                      24.3                  7,045        

      1956                                   22.5                  7,046        

      1957                                   18.4                  7,047        

      1958                                   15.2                  7,048        

      1959                                   14.3                  7,049        

      1960                                   12.5                  7,050        

      1961                                   11.3                  7,051        

      1962                                   10.1                  7,052        

      1963                                    8.7                  7,053        

      1964                                    7.3                  7,054        

      1965                                    5.6                  7,055        

      1966                                    2.6                  7,056        

      1967                                    2.0                  7,057        

      January 1, 1968, through                                     7,058        

         June 30, 1968                        2.0                               

      All increases determined by applying the percentages in the  7,061        

preceding table shall be reduced by the dollar amount of the       7,062        

increases granted in 1965 pursuant to divisions (D), (E), and (F)  7,063        

of FORMER section 3307.401 of the Revised Code, except that no     7,064        

allowance, pension, or benefit shall be reduced below the amount   7,065        

due on June 30, 1968, and no allowance granted under this section  7,066        

shall be less than a total annual sum of thirty-six dollars.       7,067        

      The allowances increased by this section shall exclude any   7,069        

monthly amount payable by reason of any voluntary deposits made    7,070        

under the provisions of sections 3307.33 3307.26 and 3307.51       7,072        

3307.741 of the Revised Code, except for prior service purchased   7,073        

before June 25, 1945.                                              7,074        

      The increases provided by this section shall be granted      7,076        

                                                          150    


                                                                 
notwithstanding the final average salary limitation in FORMER      7,077        

sections 3307.38 and 3307.43 of the Revised Code.                  7,078        

      The cost of the increases provided by this section shall be  7,080        

included in the employer's contribution rate provided by sections  7,081        

3307.53 3307.28, 3307.56 3307.30, and 3307.64 3307.31 of the       7,083        

Revised Code.  Such employer's contribution rate shall not be      7,084        

increased until July 1, 1969, or later to reflect the increased    7,085        

costs created by this section.                                     7,086        

      Sec. 3307.404 3307.695.  On and after December 31, 1971,     7,095        

all persons who retired and were eligible to receive a pension     7,097        

that was payable prior to July 1, 1968, pursuant to FORMER         7,098        

section 3307.38 or 3307.43 of the Revised Code, or in the event    7,099        

of the death of such persons, the person designated by the         7,100        

deceased to receive payments under FORMER section 3307.50 of the   7,101        

Revised Code, shall receive an additional monthly payment of two   7,103        

dollars for each year between the member's effective date of       7,104        

retirement or disability and December 31, 1971, or an additional   7,105        

fifty dollars, whichever is less.  On or before the first day of   7,106        

August in 1980 and on or before the first day of August in each    7,107        

year thereafter, the state teachers retirement board shall         7,108        

certify to the treasurer of state the amount required to be paid   7,109        

in the preceding fiscal year under this section.  Upon receipt of  7,110        

such certification, the treasurer of state shall pay to the state  7,111        

teachers retirement system the amount certified.                   7,112        

      Sec. 3307.406 3307.696.  Each person receiving benefits      7,121        

under FORMER section 3307.49 of the Revised Code who became        7,123        

eligible to receive such benefits under FORMER section 3307.48 of  7,125        

the Revised Code by virtue of the death of a member prior to July               

1, 1968, shall receive an additional monthly payment of two        7,126        

dollars for each year between the date of such member's death and  7,127        

December 31, 1972, or an additional fifty dollars, whichever is    7,128        

less.                                                                           

      Sec. 3307.407 3307.697.  On and after the effective date of  7,137        

this section DECEMBER 19, 1973, any person who retired or his THE  7,140        

                                                          151    


                                                                 
RETIREE'S beneficiary, who was eligible to receive an allowance    7,142        

that was first payable on or after July 1, 1968, and prior to      7,143        

July 1, 1971, and the beneficiary of a member who died before      7,145        

service retirement on or after July 1, 1968, and prior to July 1,  7,146        

1971, receiving an allowance or benefit pursuant to FORMER         7,148        

sections 3307.38, 3307.41, 3307.43, 3307.49, or 3307.50 of the                  

Revised Code, shall receive an additional monthly payment of two   7,150        

dollars for each year between the member's effective date of       7,151        

retirement, disability or death and July 1, 1973.                  7,152        

      Sec. 3307.409 3307.698.  (A)  Effective July 1, 1981, each   7,161        

person eligible to receive an allowance, pension, or benefit       7,163        

pursuant to FORMER sections 3307.38, 3307.41, 3307.43, division    7,164        

(C)(1) of FORMER section 3307.49, and FORMER section 3307.50 of    7,166        

the Revised Code that was based upon an award made effective       7,167        

before July 1, 1974, shall have his THE PERSON'S monthly           7,169        

allowance, pension, or benefit increased by five per cent, except  7,170        

that the twelve-month sum of such increases shall not exceed five  7,171        

per cent of the first five thousand dollars of the annual          7,172        

allowance, pension, or benefit.                                                 

      (B)  Effective July 1, 1981, each person receiving or        7,174        

qualified to receive a benefit, pursuant to division (C)(2) of     7,175        

FORMER section 3307.49 of the Revised Code, that was effective on  7,176        

and after June 14, 1951, through August 26, 1970, shall receive    7,177        

an increase in such benefit of five per cent.                      7,178        

      (C)  The increases provided in divisions (A) and (B) of      7,180        

this section shall be applied to the benefit payable on and after  7,181        

July 1, 1981.                                                      7,182        

      (D)  The increase in the monthly allowance, pension, or      7,184        

benefit provided in divisions (A) and (B) of this section shall    7,185        

be included in the calculation of additional benefits to           7,186        

recipients under section 3307.403 3307.67 of the Revised Code.     7,187        

      (E)  The benefit provided in divisions (A) and (B) of this   7,189        

section is a continuation of those first provided in Am. Sub.      7,190        

H.B. 204 as passed by the 113th general assembly.                  7,191        

                                                          152    


                                                                 
      (F)  On or before the first day of August, 1982, and on or   7,193        

before the first day of August in each year thereafter, the state  7,194        

teachers retirement board shall certify to the treasurer of state  7,195        

the amounts needed to pay the cost of the additional payments      7,196        

required under this section for the preceding fiscal year.  Upon   7,197        

receipt of these certifications, the treasurer of state shall pay  7,198        

the amount certified.                                              7,199        

      Sec. 3307.4010 3307.699.  As used in this section and        7,208        

section 3307.4011 3307.6910 of the Revised Code, "benefit" means   7,210        

any allowance, pension, or other benefit to which an individual    7,211        

is entitled and that he THE INDIVIDUAL receives pursuant to        7,212        

FORMER section 3307.38, 3307.41, 3307.43, 3307.49, or 3307.50 of   7,213        

the Revised Code.                                                               

      The annual amount of each benefit that was payable prior to  7,215        

February 1, 1983, shall, after the adjustments required by FORMER  7,217        

section 3307.403 of the Revised Code, be increased by five per     7,219        

cent.                                                                           

      Sec. 3307.4011 3307.6910.  (A)  The annual amount of each    7,228        

benefit that was based on an award made effective before July 1,   7,230        

1979, shall be increased as follows:                               7,231        

      Effective Date of                    Per Cent of             7,233        

            Award                      Increase in Benefit         7,234        

      Prior to July 1, 1971                   4.15                 7,235        

      July 1, 1971, through                                        7,236        

          August 31, 1976                     2.65                 7,237        

      September 1, 1976, through                                   7,238        

          June 30, 1979                       1.4                  7,239        

      (B)  Effective June 1, 1990, in addition to the increase     7,242        

provided under division (A) of this section, the annual amount of  7,243        

each benefit that was based on an award made effective before      7,244        

July 1, 1979, shall be increased as follows:                       7,245        

      Effective Date of                    Per Cent of             7,247        

            Award                      Increase in Benefit         7,248        

      Prior to July 1, 1971                   4.15                 7,249        

                                                          153    


                                                                 
      July 1, 1971, through                                        7,250        

          August 31, 1976                     2.65                 7,251        

      September 1, 1976, through                                   7,252        

          June 30, 1979                       1.4                  7,253        

      (C)  Amounts paid pursuant to this section shall not be      7,256        

included in the base for future increases under FORMER section     7,257        

3307.403 of the Revised Code in any benefit.                       7,258        

      Sec. 3307.4013 3307.6911.  (A)  As used in this section:     7,267        

      (1)  "Benefit" means a benefit, pension, or allowance        7,269        

PAYABLE under FORMER section 3307.38, 3307.41, 3307.43, 3307.431,  7,271        

3307.49, or 3307.50 of the Revised Code.                                        

      (2)  "Cumulative percentage change in the CPI" means the     7,273        

total percentage change in the consumer price index prepared by    7,274        

the United States bureau of labor statistics for urban wage        7,276        

earners and clerical workers (CPI-W:  U.S. city average, all       7,277        

items) from the thirty-first day of December immediately           7,278        

preceding the year in which the original benefit started through   7,279        

the thirty-first day of December immediately preceding the         7,280        

effective date of this section AUGUST 6, 1997.                     7,281        

      (3)  "Eligible recipient" means any person receiving a       7,283        

benefit on the effective date of this section AUGUST 6, 1997,      7,284        

that has been payable to that person or to any other person for    7,286        

at least twelve months.                                                         

      (4)  "Original benefit amount" means the initial amount of   7,288        

a benefit granted to the initial recipient of the benefit.         7,289        

      (B)  As of the effective date of this section AUGUST 6,      7,292        

1997, the state teachers retirement board shall determine an       7,293        

amount for each eligible recipient equal to the sum of the         7,294        

following amounts:                                                              

      (1)  An amount equal to seventy per cent of the original     7,296        

benefit amount for the recipient;                                  7,297        

      (2)  An amount equal to the product obtained when seventy    7,299        

per cent of the original benefit amount is multiplied by the       7,300        

cumulative percentage change in the CPI for the recipient.         7,301        

                                                          154    


                                                                 
      (C)(1)  Except as provided in division (C)(2) of this        7,303        

section, if the amount of the annual benefit payable to an         7,304        

eligible recipient on the effective date of this section AUGUST    7,305        

6, 1997, is less than the amount determined for the recipient      7,307        

under division (B) of this section, the board shall recalculate    7,308        

that annual benefit so that it equals the amount determined under  7,309        

division (B) of this section.                                                   

      (2)  If the recalculated benefit determined under division   7,311        

(C)(1) of this section for an eligible recipient whose retirement  7,312        

was effective before July 1, 1979, is less than one hundred three  7,313        

per cent of the annual benefit payable to the recipient on the     7,314        

effective date of this section AUGUST 6, 1997, the board shall     7,316        

recalculate the annual benefit so that it equals one hundred                    

three per cent of the annual benefit payable to the recipient on   7,317        

the effective date of this section AUGUST 6, 1997.                 7,319        

      An increase granted by division (C)(1) or (2) of this        7,321        

section to a benefit amount shall apply on and after the first     7,322        

day of the month following the effective date of this section      7,323        

AUGUST 6, 1997.                                                    7,324        

      (D)  The board shall include the increase in amount paid     7,326        

under this section in a person's base for purposes of future       7,327        

increases in any benefit under section 3307.403 3307.67 of the     7,328        

Revised Code.                                                                   

      Sec. 3307.78 3307.6912.  Effective September 1, 1947, the    7,337        

retirement allowances of retired Ohio teachers, or their           7,339        

beneficiaries under options elected at retirement and still in     7,340        

effect, on the retired list as of that date shall be recalculated  7,341        

and paid in accordance with the following:                         7,342        

      (A)  Members retired on superannuation effective prior to    7,344        

August 31, 1945, shall have the prior service portion of their     7,345        

allowances recalculated as of the date of retirement in            7,346        

accordance with division (C) of FORMER section 3307.38 of the      7,347        

Revised Code, with their "final average salary" determined as      7,348        

defined in FORMER section 3307.01 of the Revised Code.  Any        7,349        

                                                          155    


                                                                 
allowance payable to members who retired on superannuation under   7,350        

an option selected at retirement, or payable to a beneficiary      7,351        

pursuant to such option, shall be adjusted upon the basis of the   7,352        

amount of allowance payable in accordance with this division.      7,353        

      (B)  Members retired on disability retirement prior to July  7,355        

1, 1945, shall have their allowances recalculated as of the date   7,356        

of retirement in accordance with divisions (A) and (B) of FORMER   7,357        

section 3307.43 of the Revised Code, and with their final average  7,359        

salaries determined as defined in FORMER section 3307.01 of the    7,360        

Revised Code.                                                      7,361        

      (C)  Members retired on superannuation, commuted             7,363        

superannuation, or disability prior to June 30, 1947, with         7,364        

fifteen or more years of service credit shall receive a total      7,365        

allowance at the rate of not less than twenty dollars annually     7,366        

for each year of such service credit, except that a member         7,367        

retired on commuted superannuation shall have the reserve for any  7,368        

additional pension required to provide such minimum allowance      7,369        

commuted as of the date of retirement in the manner prescribed     7,370        

for the prior service pension in division (C) of FORMER section    7,371        

3307.40 of the Revised Code.  Any allowance payable to members     7,373        

who retired on superannuation under an option selected at          7,374        

retirement, or payable to a beneficiary pursuant to such option,   7,375        

shall be adjusted upon the basis of the amount of allowance        7,376        

payable in accordance with this division.  All pensions continued  7,377        

to pensioners following the merger of local district pension       7,378        

systems with the state teachers retirement system pursuant to      7,379        

FORMER sections 3307.68, 3307.69, and 3307.70 of the Revised Code  7,380        

shall be increased ten dollars per month provided no other         7,381        

benefit is payable by this section.                                7,382        

      (D)  In no case shall any recalculated allowance be          7,384        

increased in excess of twenty-five dollars per month by divisions  7,385        

(A), (B), and (C) of this section and in no case shall any         7,386        

allowances be decreased thereby.  In no case shall any such        7,387        

increases be payable prior to September 1, 1947.  The cost of      7,388        

                                                          156    


                                                                 
providing such increased superannuation and commuted               7,389        

superannuation allowances shall be included in the prior service   7,390        

pension deficiency contribution rate provided for in FORMER        7,391        

section 3307.54 of the Revised Code.  The cost of providing such   7,392        

increased disability allowances shall be included in the normal    7,393        

contribution rate provided for in section 3307.53 3307.28 of the   7,395        

Revised Code.                                                      7,396        

      Sec. 3307.6913.  (A)  AS USED IN THIS SECTION AND IN         7,398        

SECTION 3307.6914 OF THE REVISED CODE, "ELIGIBLE RECIPIENT" MEANS  7,400        

ANY PERSON RECEIVING A BENEFIT ON JULY 1, 1999.                    7,401        

      (B)  FOR EACH ELIGIBLE RECIPIENT OF A BENEFIT PAYABLE UNDER  7,403        

SECTION 3307.58, 3307.59, OR 3307.60 OF THE REVISED CODE, THE      7,405        

STATE TEACHERS RETIREMENT BOARD SHALL RECALCULATE THE ANNUAL       7,406        

SINGLE LIFETIME BENEFIT, EXCLUDING ANY INCREASES GRANTED UNDER     7,407        

SECTION 3307.67 OF THE REVISED CODE, OF THE BENEFIT PAYABLE TO     7,408        

THE RECIPIENT USING THE VERSION OF DIVISION (B) OF SECTION         7,410        

3307.58 OF THE REVISED CODE THAT WAS IN EFFECT IMMEDIATELY PRIOR   7,412        

TO THE EFFECTIVE DATE OF THIS SECTION.                                          

      (C)  IF THE AMOUNT DETERMINED UNDER DIVISION (B) OF THIS     7,415        

SECTION IS GREATER THAN THE ANNUAL SINGLE LIFETIME BENEFIT OF THE  7,416        

BENEFIT BEING PAID TO THE RECIPIENT, THE BOARD SHALL RECALCULATE   7,417        

THE RECIPIENT'S BENEFIT SO THAT IT EQUALS THE ANNUAL SINGLE        7,418        

LIFETIME BENEFIT DETERMINED UNDER DIVISION (B) OF THIS SECTION OR  7,419        

ITS ACTUARIAL EQUIVALENT.                                          7,420        

      (D)  THE BOARD SHALL INCLUDE THE INCREASE IN AMOUNT PAID     7,422        

UNDER THIS SECTION IN AN INDIVIDUAL'S BASE FOR PURPOSES OF FUTURE  7,423        

INCREASE IN ANY BENEFIT UNDER SECTION 3307.67 OF THE REVISED       7,424        

CODE.                                                                           

      (E)  THE BOARD SHALL MAKE THE RECALCULATIONS REQUIRED UNDER  7,426        

THIS SECTION NOT LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE      7,427        

EFFECTIVE DATE OF THIS SECTION.  THE BOARD MAY ADOPT RULES TO      7,428        

IMPLEMENT THIS SECTION.                                            7,429        

      Sec. 3307.6914.  (A)  AS USED IN THIS SECTION:               7,431        

      (1)  "CUMULATIVE PERCENTAGE CHANGE IN THE CPI" MEANS THE     7,433        

                                                          157    


                                                                 
TOTAL PERCENTAGE CHANGE IN THE CONSUMER PRICE INDEX PREPARED BY    7,434        

THE UNITED STATES BUREAU OF LABOR STATISTICS FOR URBAN WAGE        7,436        

EARNERS AND CLERICAL WORKERS (CPI-W:  U.S. CITY AVERAGE, ALL       7,439        

ITEMS) FROM THE THIRTY-FIRST DAY OF DECEMBER IMMEDIATELY           7,440        

PRECEDING THE YEAR IN WHICH THE ORIGINAL BENEFIT STARTED THROUGH                

THE THIRTY-FIRST DAY OF DECEMBER IMMEDIATELY PRECEDING THE         7,442        

EFFECTIVE DATE OF THIS SECTION.                                    7,443        

      (2)  "ORIGINAL BENEFIT AMOUNT" HAS THE SAME MEANING AS IN    7,445        

SECTION 3307.4013 OF THE REVISED CODE.                             7,446        

      (B)  FOR EACH ELIGIBLE RECIPIENT OF A BENEFIT PAYABLE UNDER  7,448        

SECTION 3307.57, 3307.58, 3307.59, 3307.60, 3307.63, 3307.631, OR  7,449        

3307.66 OF THE REVISED CODE, THE BOARD SHALL DETERMINE AN AMOUNT   7,450        

EQUAL TO THE SUM OF THE FOLLOWING AMOUNTS:                         7,451        

      (1)  AN AMOUNT EQUAL TO EIGHTY-FIVE PER CENT OF THE          7,453        

ORIGINAL BENEFIT AMOUNT, EXCEPT THAT IF THE RECIPIENT IS NOT THE   7,454        

INDIVIDUAL TO WHOM THE ORIGINAL BENEFIT AMOUNT WAS GRANTED, THE    7,455        

AMOUNT SHALL EQUAL EIGHTY-FIVE PER CENT OF THE PRODUCT OBTAINED    7,456        

WHEN THE ORIGINAL BENEFIT AMOUNT IS MULTIPLIED BY THE PERCENTAGE   7,457        

OF THE ORIGINAL BENEFIT AMOUNT BEING PAID TO THE RECIPIENT;        7,458        

      (2)  AN AMOUNT EQUAL TO THE PRODUCT OBTAINED WHEN THE        7,460        

AMOUNT DETERMINED UNDER DIVISION (B)(1) OF THIS SECTION IS         7,461        

MULTIPLIED BY THE CUMULATIVE PERCENTAGE CHANGE IN THE CPI.         7,462        

      (C)  IF THE AMOUNT DETERMINED UNDER DIVISION (B) OF THIS     7,464        

SECTION IS GREATER THAN THE ANNUAL BENEFIT BEING PAID TO THE       7,466        

RECIPIENT, THE BOARD SHALL RECALCULATE THE ANNUAL BENEFIT PAYABLE  7,467        

ON THE EFFECTIVE DATE OF THIS SECTION SO THAT IT EQUALS THE        7,468        

AMOUNT DETERMINED UNDER THAT DIVISION.  IF THE RECIPIENT'S         7,469        

BENEFIT WAS RECALCULATED UNDER DIVISION (C) OF SECTION 3307.6913   7,470        

OF THE REVISED CODE, THE BOARD SHALL USE THE RECALCULATED BENEFIT  7,472        

IN MAKING A DETERMINATION UNDER THIS SECTION.                      7,473        

      (D)  THE BOARD SHALL INCLUDE THE INCREASE IN AMOUNT PAID     7,475        

UNDER THIS SECTION IN AN INDIVIDUAL'S BASE FOR PURPOSES OF FUTURE  7,476        

INCREASE IN ANY BENEFIT UNDER SECTION 3307.67 OF THE REVISED       7,477        

CODE.                                                                           

                                                          158    


                                                                 
      (E)  THE BOARD SHALL MAKE THE RECALCULATIONS REQUIRED UNDER  7,479        

THIS SECTION NOT LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE      7,480        

EFFECTIVE DATE OF THIS SECTION.  THE BOARD MAY ADOPT RULES TO      7,481        

IMPLEMENT THIS SECTION.                                            7,482        

      Sec. 3307.281 3307.70.  (A)  The state teachers retirement   7,491        

board may establish by rule payroll deduction plans for payment    7,493        

of the following:                                                  7,495        

      (1)  The cost of restoring service credit under section      7,497        

3307.28 3307.70 or 3307.282 3307.711 of the Revised Code or        7,499        

purchasing any service credit members of the state teachers        7,501        

retirement system are eligible to purchase under this chapter;     7,502        

      (2)  Charges for participation in programs established       7,504        

under section 3307.741 3309.391 of the Revised Code.               7,505        

      (B)  In addition to any other matter considered relevant by  7,507        

the board, the rules adopted under this section shall specify all  7,508        

of the following:                                                  7,509        

      (1)  The types of service credit that may be paid for        7,511        

through payroll deduction, including the section of the Revised    7,512        

Code that authorizes the purchase of each type of service credit   7,513        

for which payment may be made by payroll deduction;                7,514        

      (2)  The procedure for informing the member's employer and   7,519        

the system that the member wishes to use payroll deduction to      7,521        

purchase service credit or pay for participation in programs                    

established under section 3307.741 3307.391 of the Revised Code;   7,523        

      (3)  The procedure to be followed by the system and          7,525        

employers to determine for each request the amount to be           7,526        

deducted, the number of deductions to be made, and the interval    7,527        

at which deductions will be made.  The rules may provide for a     7,528        

minimum amount for each deduction.  They may also provide for a    7,529        

maximum number of deductions for the purchase of any type of       7,530        

service credit.                                                    7,531        

      (4)  The procedure to be followed by employers in            7,533        

transmitting amounts deducted from the compensation of their       7,534        

employees to the system;                                           7,535        

                                                          159    


                                                                 
      (5)  The procedure to be followed by the system in           7,537        

crediting service credit to members who choose to purchase it      7,538        

through payroll deduction;                                         7,539        

      (6)  The time period within which employers are required to  7,541        

transmit amounts deducted from payrolls to the system.             7,542        

      (C)(1)  If the board establishes a payroll deduction plan    7,544        

under this section, it shall certify to the member's employer,     7,545        

for each member for whom deductions are to be made, the amount of  7,546        

each deduction and the payrolls from which deductions are to be    7,547        

made.  The employer shall make the deductions as certified and     7,548        

transmit the amounts deducted in accordance with the rules         7,549        

established by the board under this section.                       7,550        

      (2)  If an employer does not transmit amounts deducted from  7,552        

the compensation of an employee to the system within the time      7,553        

period specified in rules adopted under division (B)(6) of this    7,554        

section, the employer shall pay interest on the deducted amount    7,555        

compounded annually at a rate to be determined by the board from   7,556        

the date the amount is deducted to the date it is transmitted to   7,557        

the system.                                                        7,558        

      (D)  Rules adopted under this section shall not affect any   7,560        

right to purchase service credit conferred by any other section    7,561        

of the Revised Code, including the right of a member under any     7,562        

such section to purchase only part of the service credit the       7,563        

member is eligible to purchase.                                    7,565        

      (E)  No payroll deduction made pursuant to this section may  7,567        

exceed the amount of a member's net compensation after all other   7,568        

deductions and withholdings required by law.                       7,569        

      (F)  No payments made to the system under this section       7,571        

shall affect any contribution required by section 3307.51 3307.26  7,573        

or 3307.53 3307.28 of the Revised Code.                            7,574        

      Sec. 3307.28 3307.71.  The membership of any person in the   7,583        

state teachers retirement system shall cease on occurrence of any  7,586        

of the following:  receipt of payment pursuant to section 3307.46  7,587        

of the Revised Code; retirement as provided in section 3307.38 or  7,588        

                                                          160    


                                                                 
3307.39 of the Revised Code; death; or denial of membership        7,589        

pursuant to section 3307.27 of the Revised Code.                                

      Except as provided in this section, a member or former       7,591        

member of the state teachers retirement system with PARTICIPATING  7,593        

IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE        7,594        

REVISED CODE WHO HAS at least one and one-half years of                         

contributing service credit in this system, the public employees   7,595        

retirement system, the school employees retirement system, the     7,596        

Ohio police and fire pension fund, or the state highway patrol     7,599        

retirement system after the withdrawal and cancellation of         7,600        

service credit in this system may restore all or part of such      7,601        

service credit by repayment of the amount withdrawn.  To this      7,602        

amount shall be added interest at a rate per annum, compounded     7,603        

annually, to be determined by the STATE TEACHERS retirement        7,604        

board.  Interest shall be payable from the first of the month of   7,606        

withdrawal through the month of repayment.  A member may choose    7,607        

to purchase only part of such credit in any one payment.  The      7,608        

cost for restoring partial service shall be calculated as the      7,609        

proportion that it bears to the total cost at the time of          7,610        

purchase and is subject to the rules established by the board.     7,611        

If a former member is eligible to buy the service credit as a      7,612        

member of the Ohio police and fire pension fund or state highway   7,615        

patrol retirement system, the former member is ineligible to       7,616        

restore that service credit under this section.                    7,617        

      The total payment to restore canceled service credit shall   7,620        

be credited as follows:                                                         

      (A)  The amount that equals contributions made pursuant to   7,622        

section 3307.51 3307.26 of the Revised Code, plus any interest on  7,624        

the contributions paid by the member pursuant to this section, to  7,625        

the member's account in the teachers' savings fund;                7,626        

      (B)  The amount that equals the amount paid under section    7,628        

3307.80 3307.563 of the Revised Code, to the employers trust       7,629        

fund;                                                                           

      (C)  The remainder of the payment to restore canceled        7,631        

                                                          161    


                                                                 
service credit, to the guarantee fund.                             7,632        

      Sec. 3307.282 3307.711.  (A)  A member of the state          7,641        

teachers retirement system who has at least eighteen months of     7,644        

contributing service credit in the system, the police and                       

firemen's disability and pension fund, public employees            7,646        

retirement system, school employees retirement system, or state    7,647        

highway patrol retirement system, and is a former member of or no  7,648        

longer contributing to the public employees retirement system or   7,649        

school employees retirement system may restore service credit      7,650        

under section 145.31 or 3309.26 of the Revised Code by making      7,651        

payments pursuant to this section through a payroll deduction      7,652        

plan established under section 3307.281 3307.70 of the Revised     7,654        

Code.  A member seeking to restore this service credit shall       7,656        

notify the state teachers retirement system on a form approved by               

the state teachers retirement board.  After receiving the notice,  7,658        

the state teachers retirement system shall request that the        7,659        

former retirement system calculate under section 145.312 or        7,660        

3309.262 of the Revised Code the cost to the member to restore     7,662        

service credit for each year or portion of a year of service for   7,663        

which the member seeks to restore the service credit.  The amount  7,664        

the former retirement system certifies as the cost of restoring    7,665        

the service credit, plus interest described in division (B) of     7,666        

this section, is the cost to the member of restoring the service   7,667        

credit.  On receiving the certification from the former                         

retirement system, the state teachers retirement system shall      7,669        

notify the member of the cost.                                     7,670        

      (B)  For each year or portion of a year of service credit    7,672        

restored under section 145.31 or 3309.26 of the Revised Code, a    7,673        

member shall pay to the state teachers retirement system the       7,675        

amount certified by the former retirement system plus interest at  7,676        

a rate specified by the former retirement system under section     7,677        

145.312 or 3309.262 of the Revised Code for the period during      7,678        

which deductions are made under section 3307.281 3307.70 of the    7,679        

Revised Code.                                                      7,681        

                                                          162    


                                                                 
      (C)  The state teachers retirement board shall annually      7,684        

notify the former retirement system that a payment to restore      7,685        

service credit under section 145.31 or 3309.26 of the Revised      7,686        

Code has been made.  At the time the payment is transferred under  7,687        

division (D) of this section, the former retirement system shall   7,688        

restore the service credit for the year or portion of a year for   7,689        

which the payment was made.                                        7,690        

      (D)  On application for a payment of accumulated             7,692        

contributions or an age and service retirement, disability, or     7,694        

survivor benefit under Chapter 145., 3307., or 3309. of the        7,695        

Revised Code by a member who made payments under this section to   7,697        

restore service credit in a former retirement system, the state    7,698        

teachers retirement system shall pay to the former retirement      7,699        

system an amount equal to the total amount paid by the member      7,701        

under this section.                                                             

      (E)  The board shall adopt rules to implement this section.  7,703        

      Sec. 3307.283 3307.712.  After receiving a request from the  7,712        

public employees retirement system under division (A) of section   7,714        

145.311 or the school employees retirement system under division   7,716        

(A) of section 3309.261 of the Revised Code, the state teachers    7,719        

retirement system shall do both of the following:                  7,720        

      (A)  Calculate and certify to the requesting retirement      7,723        

system the cost to a former member to restore service credit       7,724        

under section 3307.28 3307.71 of the Revised Code for each year    7,725        

or portion of a year for which the former member seeks to restore  7,727        

service credit under that section.                                              

      (B)  Inform the requesting retirement system of the rate of  7,729        

interest charged to a member under a payroll deduction plan        7,730        

authorized under section 3307.281 3307.70 of the Revised Code.     7,731        

      Sec. 3307.73 3307.72.  The state teachers retirement board   7,740        

shall credit years of service to a member PARTICIPATING IN THE     7,742        

PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE  7,743        

who was employed for teaching service by an employer who failed    7,744        

to make retirement contributions to the state teachers retirement  7,745        

                                                          163    


                                                                 
system during any year or years beginning on or after September    7,746        

1, 1920, if the member deposits in the teachers' savings fund a    7,747        

per cent of the member's annual compensation for such service, at  7,749        

the rate of contribution then in effect, plus interest compounded  7,750        

annually at a rate established by the retirement board.  The       7,751        

member may choose to purchase only part of such credit in any one  7,752        

payment, subject to board rules.                                   7,753        

      The employer shall, upon the request of such member,         7,755        

certify the amount of compensation by years of employment to the   7,757        

secretary of the board.  For teaching service on or after July 1,  7,758        

1978, the employer shall pay an amount equal to the employer       7,759        

contributions due at the time the service occurred, plus compound               

interest at a rate determined by the board from the date the       7,760        

service began to the date of payment.                              7,761        

      Sec. 3307.22 3307.73.  (A)(1)  Except as provided in         7,770        

division (A)(2) of this section, a member of the state teachers    7,771        

retirement system with PARTICIPATING IN THE PLAN DESCRIBED IN      7,772        

SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE WHO HAS at least   7,773        

eighteen months of contributing service in the system, the public  7,775        

employees retirement system, or the school employees retirement    7,776        

system who CHOSE TO BE exempted himself from membership in one or  7,779        

more of the systems pursuant to section 145.03, or 3309.23 of the  7,780        

Revised Code, or former section 3307.25 or 3309.25 of the Revised  7,781        

Code, or was exempt under section 3307.27 3307.24 of the Revised   7,783        

Code, may purchase credit for each year or portion of a year of    7,784        

service for which he THE MEMBER was exempted.                                   

      (2)  A member may not purchase credit under this section     7,786        

for service that was exempted from contribution under section      7,787        

3307.27 3307.24 of the Revised Code and subject to the tax on      7,788        

wages imposed by the "Federal Insurance Contributions Act," 68A    7,790        

Stat. 415 (1954), 26 U.S.C.A. 3101, as amended.                    7,791        

      (B)  For each year or portion of a year of credit purchased  7,793        

under this section, a member shall pay to the STATE TEACHERS       7,794        

retirement system an amount determined by multiplying the          7,796        

                                                          164    


                                                                 
member's compensation for the twelve months of contributing        7,797        

service preceding the month in which he THE MEMBER applies to      7,798        

purchase the credit by a percentage rate established by rule of    7,800        

the state teachers retirement board adopted under division (F) of  7,801        

this section.                                                                   

      (C)  Subject to board rules, a member may purchase all or    7,803        

part of the credit he THE MEMBER is eligible to purchase under     7,804        

this section in one or more payments.  If the member purchases     7,806        

the credit in more than one payment, compound interest at a rate   7,807        

specified by rule of the board shall be charged on the balance     7,808        

remaining after the first payment is made.                         7,809        

      (D)  Credit purchasable under this section shall not exceed  7,811        

one year of service for any twelve-month period.  If the period    7,812        

of service for which credit is purchasable under this section is   7,813        

concurrent with a period of service that will be used to           7,814        

calculate a retirement benefit from this system, the public        7,815        

employees retirement system, or the school employees retirement    7,816        

system, the amount of the credit shall be adjusted in accordance   7,817        

with rules adopted by the state teachers retirement board.         7,818        

      A member who is also a member of the public employees        7,820        

retirement system or the school employees retirement system shall  7,821        

purchase credit for any service for which he THE MEMBER exempted   7,822        

himself SELF under section 145.03 or 3309.23 of the Revised Code,  7,824        

or former section 3307.25 or 3309.25 of the Revised Code, or was   7,825        

exempt under section 3307.27 3307.24 of the Revised Code, from     7,826        

the retirement system in which he THE MEMBER has the greatest      7,828        

number of years of service credit.  If the member receives         7,830        

benefits under section 3307.41 3307.57 of the Revised Code, the    7,832        

state retirement system that determines and pays the retirement    7,833        

benefit shall receive from the other system or systems the         7,834        

amounts paid by the member for purchase of credit for exempt       7,835        

service plus interest at the actuarial assumption rate of the      7,836        

system paying that amount.  The interest shall be for the period   7,837        

beginning on the date of the member's last payment for purchase    7,838        

                                                          165    


                                                                 
of the credit and ending on the date of the member's retirement.   7,839        

      (E)  If a member dies or withdraws from service, any         7,841        

payment made by the member under this section shall be considered  7,842        

as accumulated contributions of the member.                        7,843        

      (F)  The retirement board shall adopt rules to implement     7,845        

this section.                                                      7,846        

      Sec. 3307.32 3307.74.  (A)  Service credit purchased under   7,855        

this section shall be included in the member's total service       7,857        

credit. Credit may be purchased BY A MEMBER PARTICIPATING IN THE   7,858        

PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE  7,859        

for the following:                                                              

      (1)  Teaching service in a public or private school,         7,861        

college, or university of this or another state, and for teaching  7,862        

service in any school or entity operated by or for the United      7,863        

States government.  Teaching credit purchased under this section   7,864        

shall be limited to service rendered in schools, colleges, or      7,865        

universities chartered or accredited by the appropriate            7,866        

governmental agency.                                               7,867        

      (2)  Public service with another state or the United States  7,869        

government, provided that such credit shall be limited to service  7,870        

that would have been covered by the state teachers retirement      7,871        

system, the school employees retirement system, the Ohio police    7,873        

and fire pension fund, the state highway patrol retirement         7,876        

system, or the public employees retirement system if served in a   7,877        

comparable public position in this state.                                       

      (3)  Service for which contributions were made by the        7,879        

member or on the member's behalf to a municipal retirement system  7,881        

in this state.                                                     7,882        

      The number of years of service purchased under this section  7,884        

shall not exceed the lesser of five years or the member's total    7,885        

accumulated number of years of Ohio service.                       7,886        

      (B)(1)  Except as otherwise provided in division (B)(2) of   7,888        

this section, for each year of service purchased under this        7,889        

section, a member shall pay to the state teachers retirement       7,890        

                                                          166    


                                                                 
system for credit to the member's accumulated account an amount    7,892        

equal to the member's retirement contribution for full-time        7,893        

employment for the first year of Ohio service following            7,895        

termination of the service to be purchased.  To this amount shall  7,896        

be added an amount equal to compound interest at a rate            7,897        

established by the state teachers retirement board from the date   7,898        

of membership in the state teachers retirement system to the date  7,899        

of payment.                                                                     

      (2)  For each year of service described in division (A) of   7,901        

this section that commenced on or after July 1, 1989, and,         7,902        

without regard to when the service commenced, for each year of     7,903        

service purchased under division (A) of this section by a member   7,904        

who first established membership in the retirement system on or    7,905        

after July 1, 1989, the member shall pay to the retirement system  7,906        

for credit to the member's individual account an amount specified  7,908        

by the state teachers retirement board that shall be not less      7,909        

than fifty per cent of the additional liability resulting from     7,910        

the purchase of that year of service as determined by an actuary   7,911        

employed by the board.                                             7,912        

      (3)  A member may choose to purchase only part of the        7,914        

credit the member is eligible to purchase under this section in    7,916        

any one payment, subject to board rules.                           7,917        

      (C)  A member is ineligible to purchase under this section   7,919        

service that is used in the calculation of any retirement benefit  7,920        

currently being paid or payable in the future to such member       7,921        

under any other retirement program, except social security.  At    7,922        

the time the credit is purchased, the member shall certify on a    7,923        

form furnished by the retirement board that the member does and    7,925        

will conform to this requirement.                                  7,926        

      (D)  Credit purchased under this section may be combined     7,928        

pursuant to section 3307.41 3307.57 of the Revised Code with       7,929        

credit purchased under sections 145.293 and 3309.31 of the         7,931        

Revised Code, except that not more than a total of five years'     7,932        

service credit purchased under this section and sections 145.293   7,933        

                                                          167    


                                                                 
and 3309.31 of the Revised Code shall be used in determining       7,934        

retirement eligibility or calculating benefits under section       7,935        

3307.41 3307.57 of the Revised Code.                               7,937        

      (E)  The retirement board shall establish a policy to        7,939        

determine eligibility to purchase credit under this section, and   7,940        

its decision shall be final.                                       7,941        

      Sec. 3307.33 3307.741.  (A)  As used in this section,        7,950        

"other Ohio state retirement system" means the public employees    7,952        

retirement system, the school employees retirement system, the     7,953        

Ohio police and fire pension fund, or the state highway patrol     7,956        

retirement system.                                                              

      (B)  Any member PARTICIPATING IN THE PLAN DESCRIBED IN       7,958        

SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE, in addition to    7,959        

service as a teacher, may purchase credit for either of the        7,960        

following:                                                                      

      (1)  Similar service as a teacher in the public day          7,962        

schools, in state universities, state normal schools, and other    7,963        

state or municipal institutions of a character similar to the      7,964        

state or municipally supported schools of Ohio in which            7,965        

membership in the state teachers retirement system is allowed, of  7,966        

another state of the United States, or of any territory or         7,967        

possession of the United States, or of the District of Columbia;   7,968        

       (2)  Similar service as an employee of an employer who      7,970        

comes within any other Ohio state retirement system but for        7,971        

service which is rendered at any time in another state of the      7,972        

United States or of any territory or possession thereof, or for    7,973        

service as an employee of the United States government, provided   7,974        

credit cannot be purchased for service credit or benefits          7,975        

received in any other state retirement system in Ohio.             7,976        

      (C)  Any member who has at least ten years of total service  7,978        

credit may also purchase credit for similar service as a teacher   7,979        

in a private school, college, university, or other educational     7,980        

institution that is located in this or another state, in any       7,981        

territory or possession of the United States, or in the District   7,982        

                                                          168    


                                                                 
of Columbia, and is chartered or accredited by the appropriate     7,983        

governmental agency.                                               7,984        

      (D)  The state teachers retirement board shall have final    7,986        

authority to determine and fix the amount of the payment that      7,987        

shall be made for credit for service purchased under this          7,988        

section, provided that if the member established membership in     7,989        

the state teachers retirement system on or after July 1, 1989, or  7,990        

the credit is for service described in division  (B) or (C) of     7,991        

this section that commenced on or after July 1, 1989, the amount   7,992        

of the payment fixed by the board shall be not less than fifty     7,993        

per cent of the additional liability resulting from the credit as  7,994        

specified by an actuary employed by the board.                     7,995        

      A member may choose to purchase only part of the credit the  7,997        

member is eligible to purchase under this section in any one       7,999        

payment, subject to board rules.  Such payment, together with      8,000        

interest compounded annually at a rate to be determined by the     8,001        

board, may be refunded under the same conditions and in the same   8,002        

manner as refunds are made under section 3307.51 3307.26 of the    8,003        

Revised Code, and the credit provided by such payment shall be     8,005        

canceled.  At superannuation or commuted superannuation            8,006        

retirement such payment for service, with regular interest         8,007        

compounded annually at a rate to be determined by the board,       8,008        

shall be deposited in the annuity and pension reserve fund as the  8,009        

reserve for additional annuity as provided in section 3307.51      8,010        

3307.26 of the Revised Code, excepting moneys charged for any      8,012        

additional liabilities resulting from the purchase of the service  8,013        

credit as determined by the actuary employed by the board.         8,014        

      Sec. 3307.02 3307.75.  (A)  As used in this section, "armed  8,023        

forces" of the United States includes both:                        8,025        

      (1)  Army, navy, air force, marine corps, coast guard,       8,027        

auxiliary corps as established by congress, army nurse corps,      8,028        

navy nurse corps, red cross nurse serving with the army, navy,     8,029        

air force, or hospital service of the United States, full-time     8,030        

service with the American red cross in a combat zone, and such     8,031        

                                                          169    


                                                                 
other service as is designated by the congress as included         8,032        

therein;                                                           8,033        

      (2)  Personnel of the Ohio national guard, the Ohio          8,035        

military reserve, the Ohio naval militia, and the reserve          8,036        

components of the armed forces enumerated in division (A)(1) of    8,037        

this section who are called to active duty pursuant to an          8,038        

executive order issued by the president of the United States or    8,039        

an act of congress.                                                8,040        

      (B)  Upon presentation of an honorable discharge or          8,042        

certificate of service, and subject to rules adopted by the state  8,043        

teachers retirement board, any member of the state teachers        8,044        

retirement system PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS  8,045        

3307.50 TO 3307.79 OF THE REVISED CODE who was or is out of        8,047        

active service as a teacher by reason of having become a member    8,048        

of the armed forces of the United States on active duty or         8,049        

service shall be considered as on indefinite leave of absence and  8,050        

shall have such service not in excess of ten years considered as   8,051        

the equivalent of prior service, provided the member returns to    8,052        

service as a teacher within two years after the effective date of  8,053        

discharge and establishes one year of service credit, or becomes   8,054        

a member of either the public employees retirement system or the   8,055        

school employees retirement system within such two-year period     8,056        

and establishes at least one year of service credit.  The          8,057        

retirement board shall extend such two-year period an additional   8,058        

year if failure to return is due to continuous professional        8,059        

training as determined by said board.  If such member, otherwise   8,060        

qualified for such credit, canceled membership by the withdrawal   8,062        

of the member's accumulated account, such military service credit  8,063        

shall be granted following the restoration of the member's         8,064        

canceled service credit as provided by section 3307.28 3307.71 of  8,066        

the Revised Code.  Any member of the state teachers retirement     8,068        

system or anyone who becomes a new entrant who is assigned or      8,069        

called to take charge of special training for essential national   8,070        

defense work or veterans' training courses in any of the public    8,071        

                                                          170    


                                                                 
schools or universities of the state may make regular              8,072        

contributions to the state teachers retirement system even though  8,073        

the member's or new entrant's salary is paid from federal funds,   8,076        

provided the member's or new entrant's salary is disbursed by an   8,077        

employer.                                                                       

      (C)  A member of the state teachers retirement system is     8,079        

ineligible to receive service credit under this section for any    8,080        

year of military service credit used in the calculation of any     8,081        

retirement benefit currently being paid to the member or payable   8,082        

in the future under any other retirement program, except social    8,083        

security, or used to obtain service credit pursuant to section     8,084        

3307.021 3307.751 or 3307.022 3307.752 of the Revised Code.  At    8,086        

the time such credit is requested, the member shall certify on a   8,088        

form supplied by the retirement board that the member does and     8,089        

will conform to this requirement.  This division does not cancel   8,090        

any military service credit earned prior to March 15, 1979.        8,091        

      Sec. 3307.021 3307.751.  (A)  A member PARTICIPATING IN THE  8,100        

PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE  8,101        

may purchase service credit that shall be considered as the        8,103        

equivalent of Ohio service for each year of service incurred by    8,104        

reason of having been on active duty as a member of the armed      8,105        

forces of the United States, as defined in section 3307.02         8,106        

3307.75 of the Revised Code.  The credit may be purchased at any   8,108        

time prior to the effective date of a benefit.  The number of      8,109        

years purchased under this division shall not exceed five.         8,110        

      (B)  For the purposes of this division, "prisoner of war"    8,112        

means any regularly appointed, enrolled, enlisted, or inducted     8,113        

member of the armed forces of the United States who was captured,  8,114        

separated, and incarcerated by an enemy of the United States.      8,115        

      A member PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS     8,117        

3307.50 TO 3307.79 OF THE REVISED CODE may purchase service        8,118        

credit that shall be considered as the equivalent of Ohio service  8,119        

for each year of service such member was a prisoner of war.  The   8,120        

number of years purchased under this division shall not exceed     8,121        

                                                          171    


                                                                 
five.  Service credit may be purchased under this division for     8,122        

the same years of service used to purchase service credit under    8,123        

division (A) of this section.                                      8,124        

      (C)  The total number of years purchased under this section  8,126        

shall not exceed the member's total accumulated number of years    8,127        

of Ohio service.                                                   8,128        

      (D)(1)  Except as otherwise provided in division (D)(2) of   8,130        

this section, for each year of service purchased under division    8,131        

(A) or (B) of this section, the member shall pay to the state      8,132        

teachers retirement system for credit to the member's accumulated  8,134        

account an amount determined by the member rate of contribution    8,135        

in effect at the time the military service began multiplied by     8,136        

the member's annual compensation for full-time employment during   8,138        

the first year of service in Ohio following termination of         8,139        

military service.  If, however, a limit on maximum salary or       8,140        

maximum contribution was in effect at the time the military        8,141        

service began, the limit shall be applied to the salary received   8,142        

during the first year of service in Ohio to calculate the amount   8,143        

of payment.  To this amount shall be added an amount equal to      8,144        

compound interest at a rate established by the state teachers      8,145        

retirement board from the date active military service terminated  8,146        

to date of payment.                                                             

      (2)  For each year of service purchased under division (A)   8,148        

or (B) of this section for military service that commenced on or   8,149        

after July 1, 1989, and, without regard to when the military       8,150        

service commenced, for each year of service purchased under        8,151        

division (A) or (B) of this section by a member who first          8,152        

established membership in the retirement system on or after July   8,153        

1, 1989, the member shall pay to the retirement system for credit  8,154        

to the member's individual account an amount specified by the      8,156        

state teachers retirement board that shall be not less than fifty  8,157        

per cent of the additional liability resulting from the purchase   8,158        

of that year of service as determined by an actuary employed by    8,159        

the board.                                                         8,160        

                                                          172    


                                                                 
      (3)  A member may choose to purchase only part of the        8,162        

credit the member is eligible to purchase under this section in    8,164        

any one payment, subject to board rules.                           8,165        

      (E)  A member of the state teachers retirement system is     8,167        

ineligible to purchase service credit under this section for any   8,168        

year of military service that was:                                 8,169        

      (1)  Used in the calculation of any retirement benefit       8,172        

currently being paid to such member or payable in the future       8,173        

under any other retirement program, except for retired pay for     8,174        

non-regular service under Chapter 1223 of Section 1662 of Title    8,176        

XVI of the "National Defense Authorization Act for Fiscal Year     8,177        

1995," 108 Stat. 2998 (1994), 10 U.S.C.A. 12731 to 12739, or       8,178        

social security;                                                   8,179        

      (2)  Used to obtain service credit pursuant to section       8,181        

3307.02 3307.75 or 3307.022 3307.752 of the Revised Code.          8,183        

      At the time the credit is purchased, the member shall        8,186        

certify on a form furnished by the retirement board that the       8,187        

member does and will conform to this requirement.                  8,189        

      (F)  Credit purchased under this section may be combined     8,191        

pursuant to section 3307.41 3307.57 of the Revised Code with       8,192        

credit for military service purchased under sections 145.301 and   8,194        

3309.021 of the Revised Code, except that not more than a total    8,195        

of five years of credit purchased under division (A) of this       8,196        

section, division (A) of section 145.301, and division (A) of      8,197        

section 3309.021 and not more than a total of five years of        8,198        

credit purchased under division (B) of this section, division (B)  8,199        

of section 145.301, and division (B) of section 3309.021 of the    8,200        

Revised Code shall be used in determining retirement eligibility   8,201        

or calculating benefits under section 3307.41 3307.57 of the       8,202        

Revised Code.                                                                   

      Sec. 3307.022 3307.752.  (A)  As used in this section:       8,212        

      (1)  "Service in the uniformed services" means the           8,214        

performance of duty on a voluntary or involuntary basis in a       8,215        

uniformed service under competent authority and includes active    8,216        

                                                          173    


                                                                 
duty, active duty for training, initial active duty for training,  8,218        

inactive duty training, full-time national guard duty, and a       8,219        

period for which a person is absent from a position of employment  8,220        

for the purpose of an examination to determine the fitness of the  8,221        

person to perform any such duty.                                                

      (2)  "Uniformed services" means the army, navy, air force,   8,223        

marine corps, coast guard, or any reserve components of such       8,224        

services; national guard; the commissioned corps of the United     8,226        

States public health service; service as a red cross nurse with    8,228        

the army, navy, air force, or hospital service of the United       8,229        

States, army nurse corps, navy nurse corps, or serving full-time   8,231        

with the American red cross in a combat zone; and any other        8,233        

category of persons designated by the president in time of war or  8,234        

emergency.                                                                      

      (B)  On THE re-employment of a member PARTICIPATING IN THE   8,237        

PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE  8,238        

as a teacher by the same public employer that employed the member  8,239        

prior to the member's service in the uniformed services, the       8,240        

member may apply to the state teachers retirement system on a      8,241        

form provided by the system to purchase service credit for         8,242        

service in the uniformed services that shall be considered the     8,243        

equivalent of Ohio service credit.  On receipt of the              8,245        

application, the retirement system shall request from the          8,246        

employer that employed the member as a teacher prior to the        8,247        

military service a certification that the member was employed by   8,248        

the employer prior to, and returned to employment with the         8,249        

employer within three months of honorable discharge or release     8,250        

from, service in the uniformed services.  If the employer can so   8,251        

certify, it shall do so and shall pay to the retirement system     8,252        

the employer's contribution required by this section.  The         8,253        

service credit shall be granted the member if all of the           8,254        

following requirements are met:                                                 

      (1)  The member was a member of and maintained membership    8,256        

in the state teachers retirement system throughout service in the  8,258        

                                                          174    


                                                                 
uniformed services;                                                             

      (2)  The member was out of active service as a teacher by    8,260        

reason of service in the uniformed services;                       8,261        

      (3)  The member was honorably discharged or released from    8,263        

service in the uniformed services;                                 8,264        

      (4)  The member pays contributions to the retirement system  8,267        

in accordance with this section.                                                

      (C)  Credit may be purchased pursuant to this section at     8,270        

any time prior to receipt of a benefit.  The member may choose to  8,271        

purchase only part of the credit in any one payment, subject to    8,272        

board rules.  The retirement system shall grant service credit     8,273        

under this section, not to exceed five years, for each period of   8,274        

service in the uniformed services for which contributions have     8,275        

been received.                                                     8,276        

      (D)  For service purchased under this section, the member    8,279        

and the member's employer, subject to board rules, shall pay to    8,280        

the retirement system for credit to the member's accumulated       8,281        

account an amount equal to the contributions that would have been  8,282        

paid pursuant to sections 3307.51 3307.26 and 3307.53 3307.28 of   8,284        

the Revised Code if the member had not been out of active service  8,287        

as a teacher by reason of service in the uniformed services.       8,288        

      If a member pays all or any portion of the contributions     8,290        

required by section 3307.51 3307.26 of the Revised Code later      8,293        

than the lesser of five years or a period that is three times the  8,294        

member's period of service in the uniformed services beginning     8,295        

from the later of the member's date of re-employment as a teacher  8,296        

or the effective date of this section OCTOBER 29, 1996, an amount  8,297        

equal to compound interest at a rate established by the board      8,299        

from the later of the member's date of re-employment as a teacher  8,300        

or the effective date of this section OCTOBER 29, 1996, to the     8,301        

date of payment shall be added to the remaining amount to be paid  8,303        

by the member to purchase service credit under this section.       8,304        

      (E)  This section does not cancel any military service       8,307        

credit or service in the uniformed services earned or granted      8,308        

                                                          175    


                                                                 
under this chapter prior to the effective date of this section     8,309        

OCTOBER 29, 1996.                                                  8,310        

      (F)  If a member purchased service credit under section      8,313        

3307.021 3307.751 of the Revised Code prior to the effective date  8,317        

of this section OCTOBER 29, 1996, is not receiving a benefit, and  8,318        

would have been eligible to obtain service credit pursuant to      8,319        

this section had it been in effect at the time of purchase, the    8,320        

retirement system shall refund the amounts paid by the member for  8,321        

the purchase if both of the following requirements are met:        8,322        

      (1)  The member makes a written request for a refund on a    8,324        

form provided by the retirement system;                            8,325        

      (2)  The member pays to the retirement system the            8,327        

contributions required by this section.                            8,328        

      (G)  If the member meets the requirements of division (F)    8,332        

of this section, the employer shall pay to the retirement system   8,333        

the employer's contributions required by this section.             8,334        

      Sec. 3307.411 3307.76.  (A)  A member of the state teachers  8,343        

retirement system PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS  8,344        

3307.50 TO 3307.79 OF THE REVISED CODE shall, in computing years   8,345        

of total service, be given full credit for time served in the      8,346        

public employees retirement system under Chapter 145. of the       8,347        

Revised Code or in the school employees retirement system under    8,348        

Chapter 3309. of the Revised Code, provided that the member pays   8,349        

to the state teachers retirement system the amount specified in    8,350        

division (B) of this section.                                      8,351        

      (B)  For each year of service described in division (A) of   8,353        

this section , a member shall pay an amount specified by the       8,354        

state teachers retirement board, which shall be not less than      8,355        

fifty per cent of the additional liability resulting from the      8,356        

purchase of that year of service as determined by an actuary       8,357        

employed by the board.                                             8,358        

      (C)  A member may choose to purchase only part of the        8,360        

credit the member is eligible to purchase under this section in    8,362        

any one payment, subject to board rules.                           8,363        

                                                          176    


                                                                 
      A member is ineligible to purchase credit under this         8,365        

section if credit for the service may be obtained from the public  8,367        

employees retirement system or school employees retirement system  8,368        

or if the credit is for service that is used in the calculation    8,369        

of any retirement benefit currently being paid or payable in the   8,370        

future to the member.                                                           

      Sec. 3307.412 3307.761.  (A)  A member of the state          8,380        

teachers retirement system PARTICIPATING IN THE PLAN DESCRIBED IN  8,381        

SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE who has                         

contributions on deposit with the Ohio police and fire pension     8,383        

fund or the state highway patrol retirement system shall, in       8,384        

computing years of total service, be given full credit for         8,385        

service credit earned under Chapter 742. or 5505. of the Revised   8,388        

Code or purchased for service in the armed forces of the United    8,391        

States if a transfer to the state teachers retirement system is    8,393        

made under this division.  At the request of the member, the Ohio  8,394        

police and fire pension fund or state highway patrol retirement    8,395        

system shall transfer to the state teachers retirement system,     8,396        

for each year of service, the sum of the following:                8,398        

      (1)  An amount equal to the member's payments for service    8,401        

in the armed forces of the United States and accumulated           8,403        

contributions to the transferring fund or system;                  8,404        

      (2)  An amount equal to the lesser of the employer's         8,406        

contributions to the Ohio police and fire pension fund or state    8,408        

highway patrol retirement system or the amount that would have     8,409        

been contributed by the employer for the service had the member    8,410        

been a member of the state teachers retirement system;             8,411        

      (3)  Interest, determined as provided in division (E) of     8,414        

this section, on the amounts specified in divisions (A)(1) and     8,416        

(2) of this section from the last day of the year for which the    8,418        

service credit was earned or in which military service credit was  8,419        

purchased or obtained to the date the transfer is made.            8,421        

      (B)  A member PARTICIPATING IN THE PLAN DESCRIBED IN         8,423        

SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE who has at least   8,425        

                                                          177    


                                                                 
eighteen months of contributing service with the state teachers    8,426        

retirement system, is a former member of the Ohio police and fire  8,428        

pension fund or state highway patrol retirement system, and has    8,430        

received a refund of contributions to that fund or system shall,   8,431        

in computing years of total service, be given full credit for      8,432        

service credit earned under Chapter 742. or 5505. of the Revised   8,434        

Code or purchased for service in the armed forces of the United    8,437        

States if, for each year of service, the state teachers            8,439        

retirement system receives the sum of the following:               8,440        

      (1)  An amount, which shall be paid by the member, equal to  8,443        

the amount refunded by the Ohio police and fire pension fund or    8,444        

the state highway patrol retirement system to the member for that  8,445        

year for accumulated contributions and payments for purchase of    8,446        

credit for service in the armed forces of the United States, with  8,448        

interest on that amount from the date of the refund to the date    8,450        

of the payment;                                                    8,451        

      (2)  Interest, which shall be transferred by the Ohio        8,454        

police and fire pension fund or state highway patrol retirement    8,457        

system, on the amount refunded to the member that is attributable               

to the year of service from the last day of the year for which     8,459        

the service credit was earned or in which military service credit  8,460        

was purchased or obtained to the date the refund was made;         8,462        

      (3)  An amount, which shall be transferred by the Ohio       8,464        

police and fire pension fund or state highway patrol retirement    8,466        

system, equal to the lesser of the amount contributed by the       8,467        

employer to the Ohio police and fire pension fund or state         8,468        

highway patrol retirement system for that year or the amount that  8,469        

would have been contributed by the employer for the year had the   8,470        

member been a member of the state teachers retirement system,      8,471        

with interest on that amount from the last day of the year for     8,474        

which the service credit was earned or in which military service   8,475        

credit was purchased or obtained to the date of the transfer.      8,477        

      On receipt of payment from the member, the state teaches     8,480        

TEACHERS retirement system shall notify the Ohio police and fire   8,482        

                                                          178    


                                                                 
pension fund or the state highway patrol retirement system,        8,483        

which, on receipt of the notice, shall make the transfer required  8,484        

by this division.  Interest shall be determined as provided in     8,485        

division (E) of this section.                                      8,486        

      A member may choose to purchase only part of the credit the  8,489        

member is eligible to purchase under this division in any one      8,490        

payment, subject to rules of the state teachers retirement board.  8,491        

      (C)  A member is ineligible to obtain credit under this      8,494        

section for service that is used in the calculation of any         8,495        

retirement benefit currently being paid or payable in the future.  8,496        

      (D)  If a member of the state teachers retirement system     8,499        

who is not a current contributor elects to obtain credit under     8,500        

section 742.379 or 5505.202 of the Revised Code for service for    8,501        

which the member contributed to the state teachers retirement      8,502        

system or purchased credit for service in the armed forces of the  8,503        

United States, the state teachers retirement system shall          8,506        

transfer to the Ohio police and fire pension fund or state         8,507        

highway patrol retirement system, as applicable, the amount        8,508        

specified in division (D) of section 742.379 or division (B)(2)    8,510        

of section 5505.202 of the Revised Code.                           8,511        

      (E)  Interest charged under this section shall be            8,514        

calculated separately for each year of service credit at the       8,515        

lesser of the actuarial assumption rate for that year of the       8,516        

state teachers retirement system or of the fund or retirement      8,517        

system in which the credit was earned.  The interest shall be      8,518        

compounded annually.                                               8,519        

      (F)  The state teachers retirement board shall credit to a   8,522        

member's account in the teachers' savings fund the amounts         8,523        

described in divisions (A)(1) and (B)(1) of this section, except   8,525        

that the interest paid by the member under division (B)(1) of      8,526        

this section shall be credited to the employers' trust fund.  The  8,528        

board shall credit to the employers' trust fund the amounts                     

described in divisions (A)(2), (3), and (B)(2) of this section.    8,531        

      Sec. 3307.512 3307.77.  (A)  As used in this section,        8,540        

                                                          179    


                                                                 
"employer" means the employer employing a member of the state      8,542        

teachers retirement system at the time the member commences an     8,543        

absence, or is granted a leave described in this section.          8,544        

      (B)  Any member of the state teachers retirement system      8,546        

PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO         8,547        

3307.79 OF THE REVISED CODE who is, or has been, prevented from    8,548        

making contributions under section 3307.51 3307.26 of the Revised  8,549        

Code because of an absence due to his THE MEMBER'S own illness or  8,551        

injury, or who is, or has been, granted a leave for educational,   8,553        

professional, or other purposes pursuant to section 3319.13,       8,554        

3319.131, or 3345.28 of the Revised Code or for any other reason   8,555        

approved by the state teachers retirement board, may purchase      8,556        

service credit, not to exceed two years for each such period of    8,557        

absence or leave, either by having deductions made in accordance   8,558        

with division (C) of this section or by making the payment         8,559        

required by division (D) or (E) of this section.                                

      (C)  If the absence or leave begins and ends in the same     8,561        

year, the member may purchase credit for the absence or leave by   8,562        

having the employer deduct and transmit to the system from         8,563        

payrolls in that year employee contributions on the amount         8,564        

certified by the employer as the compensation the member would     8,565        

have received had he THE MEMBER remained employed in the position  8,567        

he held when the absence or leave commenced.  The deductions may   8,568        

be made even though the minimum compensation provided by law for   8,569        

the member is reduced thereby, unless the amount to be deducted    8,570        

exceeds the compensation to be paid the member from the time       8,571        

deductions begin until the end of the year, in which case credit   8,572        

may not be purchased under this division.  The employer shall pay  8,573        

the system the employer contributions on the compensation amount   8,574        

certified under this division.  Employee and employer              8,575        

contributions shall be made at the rates in effect at the time     8,576        

the absence or leave occurred.  If the employee or employer rates  8,577        

in effect change during the absence or leave, the contributions    8,578        

for each month of the absence or leave shall be made at the rate   8,579        

                                                          180    


                                                                 
in effect for that month.                                          8,580        

      (D)  During or following the absence or leave, but no later  8,582        

than two years following the last day of the year in which the     8,583        

absence or leave terminates, a member may purchase credit for the  8,584        

absence or leave by paying to the employer, and the employer       8,585        

transmitting to the system, employee contributions on the amount   8,586        

certified by the employer as the compensation the member would     8,587        

have received had he THE MEMBER remained employed in the position  8,589        

he held when the absence or leave commenced.  The employer shall   8,590        

pay the system the employer contributions on the compensation      8,591        

amount certified under this division.  Employee and employer       8,592        

contributions shall be made at the rates in effect at the time     8,593        

the absence or leave occurred.  If the employee or employer rates  8,594        

in effect change during the absence or leave, the contributions    8,595        

for each month of an absence or leave shall be made at the rate    8,596        

in effect for that month.                                          8,597        

      (E)  After two years following the last day of the year in   8,599        

which an absence or leave terminated, a member may purchase        8,600        

credit for the absence or leave by paying the employer, and the    8,601        

employer transmitting to the system, the sum of the following for  8,602        

each year of credit purchased:                                     8,603        

      (1)  An amount determined by multiplying the employee rate   8,605        

of contribution in effect at the time the absence or leave         8,606        

commenced by the member's annual compensation for his THE          8,607        

MEMBER'S last full year of service prior to the commencement of    8,609        

the absence or leave, or, if he THE MEMBER has not had a full      8,610        

year of service, the compensation the member would have received   8,612        

for the year the absence or leave commenced had he THE MEMBER      8,613        

continued in service for a full year;                              8,615        

      (2)  Interest compounded annually, at a rate determined by   8,617        

the board, on the amount determined under division (E)(1) of this  8,618        

section for the period commencing two years following the last     8,619        

day of the year in which the absence or leave terminated and       8,620        

ending on the date of payment;                                     8,621        

                                                          181    


                                                                 
      (3)  Interest compounded annually, at a rate determined by   8,623        

the board, on an amount equal to the employer's contribution       8,624        

required by this division for the period commencing two years      8,625        

following the last day of the year in which the absence or leave   8,626        

terminated and ending on the date of payment.                      8,627        

      The employer shall pay to the system for each year of        8,629        

credit purchased under this division an amount determined by       8,630        

multiplying the employer contribution rate in effect at the time   8,631        

the absence or leave commenced by the member's annual              8,632        

compensation for his THE MEMBER'S last full year of service prior  8,634        

to the commencement of the absence or leave, or, if he THE MEMBER  8,635        

has not had a full year of service, the compensation the member    8,637        

would have received for the year the absence or leave commenced    8,638        

had he THE MEMBER continued in service for a full year.            8,640        

      (F)  A member who chooses to purchase service credit under   8,642        

division (D) or (E) of this section may choose to purchase only    8,643        

part of the credit for which he THE MEMBER is eligible in any one  8,645        

payment, but payments made more than two years following the last  8,646        

day of the year in which the absence or leave terminated shall be  8,647        

made in accordance with division (E) of this section.              8,648        

      (G)  The state teachers retirement board may adopt rules to  8,650        

implement this section.                                            8,651        

      Sec. 3307.515 3307.771.  As used in this section, "regular   8,660        

employment" means a consistent pattern of employment for twelve    8,662        

or more consecutive weeks by the same employer during the year.    8,663        

      A member of the state teachers retirement system             8,665        

PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO         8,666        

3307.79 OF THE REVISED CODE who prior to July 1, 1982, was         8,667        

granted a leave of absence for pregnancy or resigned due to        8,668        

pregnancy may purchase service credit for a period for which she   8,669        

did not make contributions under section 3307.51 3307.26 of the    8,670        

Revised Code.  Service credit purchased under this section shall   8,672        

not exceed the lesser of two years or the period from the day the  8,673        

leave commenced or the effective date of resignation to the date   8,674        

                                                          182    


                                                                 
of the member's return to regular employment as a contributor to                

the retirement system.  A member may purchase credit for more      8,675        

than one period of absence due to pregnancy, but the total         8,676        

service credit purchased under this section, FORMER section        8,677        

3307.513, and FORMER section 3307.514 of the Revised Code shall    8,678        

not exceed two years.  The member shall submit evidence            8,679        

satisfactory to the retirement board documenting that the leave    8,680        

or resignation was due to pregnancy.                                            

      For each year of service credit purchased under this         8,682        

section, the member shall pay to the system for credit to her      8,683        

accumulated account an amount determined by multiplying the        8,684        

employee rate of contribution in effect at the time the leave or   8,685        

absence commenced by her annual compensation for full-time                      

employment during the first year of service in Ohio following      8,686        

termination of the absence or leave and adding to that amount      8,687        

interest compounded annually, at a rate established by the board,  8,688        

from the date the absence or leave terminated to the date of       8,689        

payment.                                                                        

      A member may purchase all or part of the credit for which    8,691        

she is eligible in one or more payments.  A member who purchases   8,692        

service credit for an absence or leave under this section may not  8,693        

purchase credit for that absence or leave under section 3307.512   8,694        

3307.77 of the Revised Code.  A member who has purchased service   8,695        

credit for an absence or leave under FORMER section 3307.512,      8,696        

3307.513, or 3307.514 OR SECTION 3307.77 of the Revised Code may   8,697        

not purchase credit under this section for the same period of      8,698        

absence or leave.                                                               

      The state teachers retirement board may adopt rules to       8,700        

implement this section.                                            8,701        

      Sec. 3307.311 3307.78.  (A)  As used in this section,        8,710        

"school board member" means a member of a city, local, exempted    8,712        

village, or joint vocational school district board of education    8,713        

and "governing board member" means a member of an educational      8,714        

service center governing board.                                    8,715        

                                                          183    


                                                                 
      (B)  A member of the state teachers retirement system        8,717        

PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO         8,718        

3307.79 OF THE REVISED CODE who does both of the following may     8,719        

purchase credit for service as a school board or governing board   8,720        

member, other than service subject to the tax on wages imposed by  8,722        

the "Federal Insurance Contributions Act," 68A Stat. 415 (1954),   8,723        

26 U.S.C.A. 3101, as amended, if the member is eligible to retire  8,725        

under this chapter or will become eligible to retire as a result   8,726        

of purchasing the credit:                                                       

      (1)  Agrees to retire within ninety days after receiving     8,728        

notice of the additional liability under division (C) of this      8,729        

section;                                                           8,730        

      (2)  Provides evidence satisfactory to the STATE TEACHERS    8,732        

retirement board of service as a school board or governing board   8,734        

member during the years for which the member wishes to purchase    8,736        

credit.                                                                         

      Credit may be purchased for service as a school board or     8,739        

governing board member between September 1, 1920, and the first                 

day of January of the year in which the credit is purchased.  A    8,741        

member is eligible to purchase one-quarter of a year's credit for  8,742        

each year of service as a school board or governing board member.  8,743        

      Credit purchased under this section shall be included in     8,745        

the member's total service credit for the purposes of section      8,746        

3307.36 3307.52 of the Revised Code.                               8,747        

      (C)  On receipt of a request from a member eligible to       8,749        

purchase credit under this section, the system shall obtain from   8,750        

its actuary certification of the additional liability to the       8,751        

system for each quarter year of credit the member is eligible to   8,752        

purchase and shall notify the member of such additional            8,753        

liability.  Within ninety days after receiving notice of the       8,754        

additional liability, the member may purchase in quarter-year      8,755        

increments any portion of the credit the member is eligible to     8,756        

purchase.  For each quarter year of credit purchased, the member   8,757        

shall pay to the system an amount equal to the additional          8,758        

                                                          184    


                                                                 
liability resulting from the purchase.  Payment shall be made in   8,759        

full at the time of purchase.                                      8,760        

      (D)  The state teachers retirement board shall adopt rules   8,762        

in accordance with section 111.15 of the Revised Code concerning   8,763        

the purchase of credit under this section.  In addition to any     8,764        

other matters considered relevant by the board, the rules shall    8,765        

specify the procedure to be followed to inform the system that a   8,767        

member wishes to purchase credit for service as a school board or  8,769        

governing board member.                                                         

      (E)  If the member does not retire within ninety days after  8,771        

purchasing credit under this section, the system shall withdraw    8,772        

the credit and refund the amount paid by the member.               8,773        

      Sec. 3307.383 3307.79.  (A)  A member whose death occurred   8,783        

prior to July 1, 1973, who at the time of death had more than      8,784        

thirty-four but less than thirty-five years of service credit      8,785        

shall be presumed to have completed thirty-five years of such      8,786        

credit.  Any member whose death occurred on or after July 1,       8,787        

1973, but prior to August 20, 1976, and who at the time of death   8,788        

had more than thirty-one but less than thirty-two years of         8,789        

service credit shall be presumed to have completed thirty-two      8,790        

years of such credit.  Any member PARTICIPATING IN THE PLAN        8,791        

DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE       8,792        

whose death occurs on or after August 20, 1976, and who at the     8,793        

time of death has more than twenty-nine but less than thirty       8,794        

years of service credit shall be presumed to have completed        8,795        

thirty years of such credit.                                                    

      Upon (B)  ON the death of a member WHO IS PARTICIPATING IN   8,798        

THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED                

CODE prior to service retirement, the surviving spouse or          8,800        

dependents of the deceased member shall have the right to          8,801        

purchase any service credit the member, had the member not died,   8,803        

would have been eligible to purchase pursuant to sections                       

3307.021 3307.71, 3307.022 3307.72, 3307.22 3307.73, 3307.28       8,805        

3307.74, 3307.32 3307.741, 3307.33 3307.751, 3307.411 3307.752,    8,807        

                                                          185    


                                                                 
3307.412 3307.76, 3307.512 3307.761, 3307.77, and 3307.73          8,810        

3307.771 of the Revised Code upon the same terms and conditions    8,811        

which the deceased member could have purchased such service        8,812        

credit had the deceased member not died.  Any service credit       8,813        

purchased under this section shall be applied under the            8,815        

provisions of this chapter in the same manner as it would have     8,816        

been applied had it been purchased by the deceased member during   8,817        

the deceased member's lifetime.                                    8,818        

      Sec. 3307.80.  THE STATE TEACHERS RETIREMENT BOARD SHALL     8,820        

ADOPT RULES TO IMPLEMENT THE PLAN ESTABLISHED UNDER SECTION        8,821        

3307.81 OF THE REVISED CODE.                                       8,822        

      Sec. 3307.81.  THE STATE TEACHERS RETIREMENT BOARD SHALL     8,824        

ESTABLISH A PLAN CONSISTING OF TWO OR MORE BENEFIT OPTIONS THAT    8,825        

PROVIDE FOR AN INDIVIDUAL ACCOUNT FOR EACH PARTICIPATING MEMBER    8,826        

AND UNDER WHICH BENEFITS ARE BASED SOLELY ON THE AMOUNTS THAT      8,828        

HAVE ACCUMULATED IN THE ACCOUNT.  THE PLAN MAY INCLUDE OPTIONS     8,829        

UNDER WHICH A MEMBER PARTICIPATING IN THE PLAN MAY RECEIVE         8,830        

DEFINITELY DETERMINABLE BENEFITS.                                               

      THE PLAN ESTABLISHED UNDER THIS SECTION SHALL MEET THE       8,833        

REQUIREMENTS OF THIS SECTION AND SECTIONS 3307.82 TO 3307.89 OF                 

THE REVISED CODE.  IT MAY INCLUDE LIFE INSURANCE, ANNUITIES,       8,835        

VARIABLE ANNUITIES, REGULATED INVESTMENT TRUSTS, POOLED                         

INVESTMENT FUNDS, OR OTHER FORMS OF INVESTMENT.                    8,837        

      THE BOARD MAY ADMINISTER THE PLAN, ENTER INTO CONTRACTS      8,839        

WITH OTHER ENTITIES TO ADMINISTER THE PLAN, OR BOTH.  THE BOARD    8,840        

MAY CONTRACT WITH ANOTHER ENTITY TO ADMINISTER THE PLAN IF THE     8,841        

ENTITY AGREES TO MEET ALL REQUIREMENTS OF THIS CHAPTER APPLICABLE  8,842        

TO THE PLAN.                                                       8,843        

      Sec. 3307.811.  EACH OPTION OFFERED UNDER THE PLAN           8,845        

ESTABLISHED UNDER SECTION 3307.81 OF THE REVISED CODE SHALL MEET   8,847        

THE REQUIREMENTS NECESSARY TO QUALIFY AS A RETIREMENT SYSTEM       8,849        

MAINTAINED BY A STATE OR LOCAL GOVERNMENT ENTITY UNDER DIVISION    8,850        

(b)(7)(F) OF SECTION 3121 OF THE "INTERNAL REVENUE CODE OF 1986,"  8,852        

100 STAT. 2085, 26 U.S.C.A. 3121(b)(7)(F), AS AMENDED.  EACH       8,855        

                                                          186    


                                                                 
PARTICIPANT IN THE PLAN SHALL QUALIFY AS A MEMBER OF THAT SYSTEM.  8,857        

      Sec. 3307.812.  IN ESTABLISHING THE PLAN UNDER SECTION       8,859        

3307.81 OF THE REVISED CODE, THE STATE TEACHERS RETIREMENT BOARD   8,861        

MAY DO ALL THINGS NECESSARY TO AVOID BEING REQUIRED TO PAY         8,862        

FEDERAL OR STATE INCOME TAXES ON CONTRIBUTIONS TO THE PLAN OR      8,863        

AMOUNTS EARNED UNDER THE PLAN AND, TO THE EXTENT PERMITTED UNDER   8,865        

FEDERAL OR STATE LAW, TO ALLOW MEMBERS PARTICIPATING IN THE PLAN   8,866        

TO MAKE CONTRIBUTIONS FOR PERIODS OF INTERRUPTED OR PRIOR                       

SERVICE.                                                           8,867        

      Sec. 3307.82.  (A)  NOT LATER THAN TEN DAYS AFTER RECEIVING  8,869        

A COPY OF THE FORM EVIDENCING AN ELECTION TO PARTICIPATE IN THE    8,871        

PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE REVISED CODE, THE    8,874        

STATE TEACHERS RETIREMENT SYSTEM SHALL NOTIFY THE MEMBER WHO MADE               

THE ELECTION THAT THE MEMBER MUST SELECT ONE OF THE BENEFIT        8,876        

OPTIONS OFFERED UNDER THE PLAN.  THE NOTICE SHALL INCLUDE A COPY   8,877        

OF THE FORM DESCRIBED IN DIVISION (B) OF THIS SECTION.             8,878        

      (B)  NOT LATER THAN THIRTY DAYS AFTER RECEIVING NOTICE       8,880        

UNDER DIVISION (A) OF THIS SECTION, THE MEMBER SHALL FILE WITH     8,881        

THE SYSTEM, ON A FORM PROVIDED BY THE SYSTEM, NOTICE OF THE        8,882        

MEMBER'S SELECTION OF ONE OF THE BENEFIT OPTIONS OFFERED UNDER     8,883        

THE PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE REVISED CODE.    8,885        

      Sec. 3307.821.  THE STATE TEACHERS RETIREMENT SYSTEM SHALL   8,887        

PERMIT A MEMBER PARTICIPATING IN THE PLAN ESTABLISHED UNDER        8,888        

SECTION 3307.81 OF THE REVISED CODE TO CHANGE THE BENEFIT OPTION   8,890        

SELECTED BY THE MEMBER UNDER SECTION 3307.82 OF THE REVISED CODE   8,892        

AT LEAST ONCE EACH YEAR OR AT MORE FREQUENT INTERVALS, AS          8,893        

PROVIDED IN RULES ADOPTED UNDER SECTION 3307.80 OF THE REVISED     8,894        

CODE.                                                                           

      Sec. 3307.83.  THE RIGHT OF EACH MEMBER PARTICIPATING IN     8,896        

THE PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE REVISED CODE TO  8,897        

A RETIREMENT, DISABILITY, OR SURVIVOR BENEFIT OR TO A WITHDRAWAL   8,899        

OF CONTRIBUTIONS SHALL BE GOVERNED BY THE BENEFIT OPTION SELECTED  8,900        

BY THE MEMBER UNDER SECTION 3307.82 OF THE REVISED CODE.           8,902        

      Sec. 3307.84.  FOR EACH MEMBER PARTICIPATING IN THE PLAN     8,904        

                                                          187    


                                                                 
ESTABLISHED UNDER SECTION 3307.81 OF THE REVISED CODE, THE STATE   8,905        

TEACHERS RETIREMENT SYSTEM SHALL TRANSFER TO THE EMPLOYER'S TRUST  8,906        

FUND A PORTION OF THE EMPLOYER CONTRIBUTION REQUIRED UNDER         8,907        

SECTION 3307.28 OF THE REVISED CODE THAT IS EQUAL TO THE PER CENT  8,908        

ESTABLISHED UNDER DIVISION (E) OF SECTION 3305.06 OF THE REVISED   8,910        

CODE.  THE REMAINDER SHALL BE CREDITED AS PROVIDED IN SECTION      8,912        

3307.28 OF THE REVISED CODE.                                       8,913        

      Sec. 3307.86.  THE STATE TEACHERS RETIREMENT SYSTEM MAY      8,915        

REQUIRE MEMBERS PARTICIPATING IN THE PLAN ESTABLISHED UNDER        8,916        

SECTION 3307.81 OF THE REVISED CODE AND THEIR EMPLOYERS TO         8,917        

FURNISH ANY INFORMATION REQUIRED UNDER THIS CHAPTER AT MORE        8,918        

FREQUENT INTERVALS THAN THOSE REQUIRED FOR MEMBERS PARTICIPATING   8,919        

IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE        8,920        

REVISED CODE.  THE SYSTEM HAS NO DUTY TO ACCEPT CONTRIBUTIONS BY   8,921        

OR ON BEHALF OF A MEMBER IF THE INFORMATION IS NOT FURNISHED AT    8,922        

SUCH INTERVALS.                                                                 

      Sec. 3307.88.  (A)  THIS SECTION APPLIES TO A MEMBER OF THE  8,924        

STATE TEACHERS RETIREMENT SYSTEM WHO HAS LESS THAN FOUR YEARS OF   8,925        

SERVICE CREDIT AT THE TIME THE MEMBER BEGINS PARTICIPATION IN THE  8,926        

PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE REVISED CODE.        8,927        

      (B)  ON COMPLETION BY A MEMBER OF TEACHING SERVICE EQUAL TO  8,929        

THE TEACHING SERVICE REQUIRED TO ESTABLISH FIVE YEARS OF SERVICE   8,930        

CREDIT UNDER THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF  8,931        

THE REVISED CODE, THE MEMBER SHALL BEGIN PARTICIPATING IN THE      8,933        

PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE  8,934        

UNLESS THE MEMBER ELECTS UNDER SECTION 3307.881 OF THE REVISED     8,936        

CODE TO REMAIN IN THE PLAN ESTABLISHED UNDER SECTION 3307.81 OF                 

THE REVISED CODE.                                                  8,937        

      (C)  WHEN, UNDER DIVISION (B) OF THIS SECTION, A MEMBER      8,939        

BEGINS PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO  8,941        

3307.79 OF THE REVISED CODE, THE SYSTEM SHALL DO ALL OF THE        8,942        

FOLLOWING:                                                                      

      (1)  TRANSFER FROM THE MEMBER'S ACCOUNT IN THE DEFINED       8,944        

CONTRIBUTION FUND TO AN ACCOUNT IN THE TEACHERS' SAVINGS FUND THE  8,945        

                                                          188    


                                                                 
SUM OF THE FOLLOWING:                                              8,946        

      (a)  AN AMOUNT EQUAL TO THE CONTRIBUTIONS MADE PURSUANT TO   8,948        

SECTION 3307.26 OF THE REVISED CODE;                               8,949        

      (b)  ANY SUPPLEMENTAL CONTRIBUTIONS MADE BY THE MEMBER;      8,951        

      (c)  ANY EARNINGS FROM SUPPLEMENTAL CONTRIBUTIONS.           8,953        

      (2)  TRANSFER TO THE EMPLOYERS' TRUST FUND ANY AMOUNT        8,955        

REMAINING IN THE MEMBER'S ACCOUNT IN THE DEFINED CONTRIBUTION      8,956        

FUND AFTER THE TRANSFER DESCRIBED IN DIVISION (C)(1) OF THIS       8,957        

SECTION IS MADE.                                                                

      (3)  CREDIT TO THE MEMBER FIVE YEARS OF SERVICE CREDIT       8,959        

UNDER SECTION 3307.53 OF THE REVISED CODE.                         8,960        

      (D)  IF THE AMOUNT IN THE MEMBER'S ACCOUNT IN THE DEFINED    8,962        

CONTRIBUTION FUND IS LESS THAN THE AMOUNTS REQUIRED TO BE          8,963        

TRANSFERRED UNDER DIVISIONS (C)(1) AND (2) OF THIS SECTION, THE    8,964        

SYSTEM SHALL TRANSFER FROM THE GUARANTEE FUND ESTABLISHED UNDER    8,965        

SECTION 3307.14 OF THE REVISED CODE TO THE FUNDS DESCRIBED IN      8,966        

DIVISIONS (C)(1) AND (2) OF THIS SECTION THE AMOUNTS NECESSARY TO  8,968        

MAKE THE TRANSFERS REQUIRED BY THAT DIVISION.                      8,969        

      (E)  A MEMBER WHO BEGINS PARTICIPATION IN THE PLAN           8,971        

DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE       8,972        

PURSUANT TO THIS SECTION SHALL HAVE THE SAME RIGHTS AND            8,974        

PRIVILEGES UNDER THE PLAN AS A MEMBER WHO NEVER HAD MADE AN        8,976        

ELECTION TO PARTICIPATE IN THE PLAN ESTABLISHED UNDER SECTION      8,977        

3307.81 OF THE REVISED CODE.                                       8,978        

      Sec. 3307.881.  A MEMBER OF THE STATE TEACHERS RETIREMENT    8,980        

SYSTEM PARTICIPATING IN A PLAN ESTABLISHED UNDER SECTION 3307.81   8,981        

OF THE REVISED CODE WHO IS SUBJECT TO SECTION 3307.88 OF THE       8,984        

REVISED CODE MAY ELECT TO CONTINUE PARTICIPATING IN THE PLAN.  AN  8,985        

ELECTION SHALL BE MADE IN WRITING ON A FORM PROVIDED BY THE STATE  8,986        

TEACHERS RETIREMENT BOARD AND FILED WITH THE BOARD NOT LATER THAN               

THIRTY DAYS PRIOR TO THE DATE ON WHICH THE MEMBER WOULD HAVE FIVE  8,987        

YEARS OF SERVICE CREDIT HAD THE MEMBER ELECTED TO PARTICIPATE IN   8,988        

THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED   8,989        

CODE WHEN TEACHING SERVICE BEGAN.                                  8,990        

                                                          189    


                                                                 
      Sec. 3307.882.  NOT LATER THAN ONE HUNDRED EIGHTY DAYS       8,992        

PRIOR TO THE BEGINNING OF THE  THIRTY-DAY PERIOD DESCRIBED IN      8,993        

SECTION 3307.881 OF THE REVISED CODE, THE STATE TEACHERS           8,995        

RETIREMENT SYSTEM SHALL NOTIFY A MEMBER WHO IS SUBJECT TO SECTION  8,996        

3307.88 OF THE REVISED CODE OF THE OPPORTUNITY TO ELECT TO         8,997        

CONTINUE PARTICIPATION IN THE PLAN ESTABLISHED UNDER SECTION       8,998        

3307.81 OF THE REVISED CODE.  THE NOTICE SHALL INCLUDE THE         8,999        

INFORMATION DESCRIBED IN SECTION 3307.881 OF THE REVISED CODE.     9,000        

      Sec. 3307.89.  THE STATE TEACHERS RETIREMENT BOARD MAY       9,002        

OFFER TO MEMBERS PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS   9,003        

3307.50 TO 3307.79 OF THE REVISED CODE THE OPPORTUNITY TO ALSO     9,004        

PARTICIPATE IN ONE OR MORE OF THE BENEFIT OPTIONS AVAILABLE UNDER  9,006        

THE PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE REVISED CODE.    9,008        

A MEMBER'S CONTRIBUTIONS UNDER THIS SECTION SHALL BE CREDITED TO   9,010        

AN INDIVIDUAL ACCOUNT ESTABLISHED FOR THE MEMBER IN THE DEFINED    9,011        

CONTRIBUTION FUND.                                                 9,012        

      Sec. 3307.68 3307.96.  If a local district pension system    9,021        

votes to merge with the state teachers retirement system as        9,023        

provided in section 3307.26 3307.241 of the Revised Code, the      9,026        

state teachers retirement board shall employ an actuary to value                

the assets and liabilities which will be taken over by the state   9,027        

teachers retirement system hereby created in the event of such     9,028        

merger.  The actuary so employed shall be an actuary also          9,030        

approved by the employer in whose district the local district      9,032        

pension system is operated, and the expense of the valuation       9,033        

shall be paid by such THE employer.  The actuary shall compute     9,034        

the present value of the liabilities on account of teachers in     9,035        

service in the local district pension system and on account of     9,036        

pensioners in the rolls of such local district pension system.     9,037        

He THE ACTUARY shall also compute the present value of the         9,039        

prospective amount to be received by reason of the payment of the               

normal contributions by the employer on behalf of the active       9,040        

teachers of such local system in the event of the contemplated     9,041        

merger.  From the present value of the total liability for         9,042        

                                                          190    


                                                                 
pensions on account of teachers in service in the local district   9,043        

pension system as previously determined, the actuary shall deduct  9,044        

the present value of the normal contributions.                                  

      The amount remaining, together with any excess, of the       9,046        

present value of all payments, necessary to continue the pensions  9,047        

of the pensioners of the local district pension system, over and   9,048        

above the amount of moneys and securities of such system, shall    9,049        

be known as the "accrued liability."  No teacher who is a member   9,050        

of a local district pension system on May 9, 1919, shall receive                

a lesser total retirement allowance upon retirement after merger   9,051        

of the local system with the state teachers retirement system      9,052        

than said teacher would have received upon retirement under the    9,053        

local system.                                                                   

      Sec. 3307.69 3307.97.  That part of the accrued liability,   9,062        

due on account of pensions to pensioners already on the rolls of   9,064        

the local district pension system, referred to in section 3307.68  9,065        

3307.96 of the Revised Code, remaining unpaid on September 1,      9,067        

1924, shall be paid by the employer at the rate of at least four                

per cent per annum of such accrued liability with interest at      9,068        

four per cent per annum on unpaid balances.  Both the payment and  9,069        

interest shall be payable semiannually on dates to be fixed by     9,070        

the state teachers retirement board.  Payments on that part of     9,071        

the accrued liability due to teachers in active service in the     9,072        

local district pension system shall be at the same rate per cent   9,073        

of the salaries of such teachers as the deficiency contribution                 

rate fixed in FORMER section 3307.54 of the Revised Code, and      9,074        

shall be made until the year in which the deficiency contribution  9,076        

payable by other employers who had no local pension system may be  9,077        

discontinued.                                                                   

      Sec. 3307.70 3307.98.  The increasing contribution           9,086        

determined as provided in sections 3307.68 3307.96 and 3307.69     9,088        

3307.97 of the Revised Code by the actuary shall be paid by the    9,090        

employer.  In the event of merger, the moneys and securities to    9,091        

the credit of the local district pension system, not exceeding an  9,092        

                                                          191    


                                                                 
aggregate amount equal to the present value of the payments to be  9,093        

made on account of all pensions to the pensioners on the rolls of  9,094        

the local district pension system, shall be transferred to the     9,095        

employers' accumulation fund and the pensions then payable by the  9,096        

local district pension system shall thereafter be paid from the    9,097        

employers' accumulation fund until the reserves on these pensions  9,098        

with the other pensions payable from the employers' accumulation   9,099        

fund have been accumulated and shall be transferred to the         9,100        

annuity and pension reserve fund, from which fund they shall       9,101        

thereafter be payable.  The pensions of the active members of the  9,102        

local district pension system and of the new entrants shall        9,103        

thereafter be payable as are the pensions of other members of the  9,104        

state teachers retirement system.  The amount of the excess of     9,105        

the moneys and securities of the local district pension system     9,106        

over and above the present value of the payments to be made on     9,107        

account of all pensions to the pensioners of the rolls of the      9,108        

local district pension system shall be transferred to the          9,109        

teachers' savings fund and shall be credited pro rata to the       9,110        

active teachers of such local district pensions system on the      9,111        

basis of the amounts of their previous contributions to the local  9,112        

district pension system.  In case such method of distribution is   9,113        

not found practicable by the state teachers retirement board, the  9,114        

board may use such other method of apportionment as seems fair     9,115        

and equitable to such board.  The amount so credited in any case   9,116        

shall be considered as a part of the teacher's accumulated         9,117        

contributions, AS DEFINED IN SECTION 3307.50 OF THE REVISED CODE,  9,118        

for all purposes except in the case of retirement UNDER THE PLAN   9,120        

DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE in                 

which it shall be considered as an amount in excess of the         9,121        

teacher's accumulated contributions and shall be used in           9,122        

purchasing from the annuity and pension reserve fund an annuity,   9,123        

in addition to any other annuity or pension benefit otherwise      9,124        

provided by this chapter.                                          9,125        

      After the moneys and securities of any local district        9,127        

                                                          192    


                                                                 
pension system have been transferred to the employers'             9,128        

accumulation fund or to the teachers' savings fund, such local     9,129        

district pension system shall cease to exist.                      9,130        

      Sec. 3309.021.  (A)  A member may purchase service credit    9,139        

that shall be considered as the equivalent of Ohio service for     9,140        

each year of service incurred by reason of having been on active   9,141        

duty as a member of the armed forces of the United States, as      9,142        

defined in section 3309.02 of the Revised Code.  All or part of    9,143        

the credit may be purchased at any time prior to receipt of a      9,144        

retirement allowance.  The number of years purchased under this    9,146        

division shall not exceed five.                                                 

      (B)  For the purposes of this division, "prisoner of war"    9,148        

means any regularly appointed, enrolled, enlisted, or inducted     9,149        

member of the armed forces of the United States who was captured,  9,150        

separated, and incarcerated by an enemy of the United States.      9,151        

      A member may purchase service credit that shall be           9,153        

considered as the equivalent of Ohio service for each year of      9,154        

service such member was a prisoner of war.  The number of years    9,155        

purchased under this division shall not exceed five.  Service      9,156        

credit may be purchased under this division for the same years of  9,157        

service used to purchase service credit under division (A) of      9,158        

this section.  The member may choose to purchase only part of      9,159        

such credit in any one payment, subject to board rules.            9,160        

      (C)  The total number of years purchased under this section  9,162        

shall not exceed the member's total accumulated number of years    9,163        

of Ohio service.                                                   9,164        

      (D)  For each year of service purchased under division (A)   9,166        

or (B) of this section, the member shall pay to the school         9,167        

employees retirement system for credit to the member's             9,168        

accumulated account an amount determined by the member rate of     9,170        

contribution in effect at the time the military service began      9,171        

multiplied by the annual compensation for full-time employment     9,172        

during the first year of service covered by the school employees   9,173        

retirement system, public employees retirement system, or state    9,174        

                                                          193    


                                                                 
teachers retirement system following termination of military       9,175        

service.  If, however, a limit on maximum salary or maximum        9,176        

contribution was in effect at the time the military service        9,177        

began, the limit shall be applied to the salary received during    9,178        

the first year of service in Ohio to calculate the amount of       9,179        

payment.  To this amount shall be added an amount equal to         9,180        

compound interest at a rate established by the school employees    9,181        

retirement board from the date of the member's first service       9,182        

covered by the school employees retirement system, public          9,183        

employees retirement system, or state teachers retirement system   9,184        

following termination of the military service to date of payment.  9,185        

      (E)  A member of the school employees retirement system is   9,187        

ineligible to purchase service credit under this section for any   9,188        

year of military service that was:                                 9,189        

      (1)  Used in the calculation of any retirement benefit       9,192        

currently being paid to the member or payable in the future under  9,193        

any other retirement program, except for retired pay for           9,194        

nonregular service under Chapter 1223 of Section 1662 of Title     9,196        

XVI of the "National Defense Authorization Act for Fiscal Year     9,197        

1995," 108 Stat. 2998 (1994), 10 U.S.C.A. 12731 to 12739, or       9,198        

social security;                                                   9,199        

      (2)  Used to obtain service credit pursuant to section       9,201        

3309.02 or 3309.022 of the Revised Code.                           9,202        

      At the time such credit is purchased, the member shall       9,205        

certify on a form furnished by the retirement board that the       9,206        

member does and will conform to this requirement.                  9,208        

      (F)  Credit purchased under this section may be combined     9,210        

pursuant to section 3309.35 of the Revised Code with credit for    9,211        

military service purchased under sections 145.301 and 3307.021     9,212        

3307.751 of the Revised Code, except that not more than an         9,214        

aggregate total of five years of credit purchased under division   9,215        

(A) of this section, division (A) of section 145.301, and          9,216        

division (A) of section 3307.021 3307.751 of the Revised Code,     9,217        

and not more than an aggregate total of five years of credit       9,219        

                                                          194    


                                                                 
purchased under division (B) of this section, division (B) of      9,220        

section 145.301, and division (B) of section 3307.021 3307.751 of  9,221        

the Revised Code shall be used in determining retirement           9,223        

eligibility or calculating benefits under section 3309.35 of the   9,224        

Revised Code.                                                                   

      Sec. 3309.261.  (A)  A member of the school employees        9,233        

retirement system who has at least eighteen months of              9,234        

contributing service credit in the system, the OHIO police and     9,235        

firemen's disability and FIRE pension fund, public employees       9,237        

retirement system, state teachers retirement system, or state      9,238        

highway patrol retirement system, and is a former member of or no  9,239        

longer contributing to the public employees retirement system or   9,240        

state teachers retirement system may restore service credit under  9,241        

section 145.31 or 3307.28 3307.71 of the Revised Code by making    9,243        

payments pursuant to this section through a payroll deduction      9,244        

plan established under section 3309.27 of the Revised Code.  A     9,245        

member seeking to restore service credit shall notify the school   9,247        

employees retirement system on a form approved by the school       9,248        

employees retirement board.  After receiving the notice, the       9,249        

school employees retirement system shall request that the former   9,250        

retirement system calculate under section 145.312 or 3307.283      9,251        

3307.712 of the Revised Code the cost to the member to restore     9,254        

service credit for each year or portion of a year of service for   9,255        

which the member seeks to restore the service credit.  The amount  9,256        

the former retirement system certifies as the cost of restoring    9,257        

the service credit, plus interest described in division (B) of     9,258        

this section, is the cost to the member of restoring the service   9,259        

credit.  On receiving the certification from the former            9,260        

retirement system, the school employees retirement system shall    9,261        

notify the member of the cost.                                                  

      (B)  For each year or portion of a year of service credit    9,263        

restored under section 145.31 or 3307.28 3307.71 of the Revised    9,264        

Code, a member shall pay to the school employees retirement        9,266        

system the amount certified by the former retirement system plus   9,267        

                                                          195    


                                                                 
interest at a rate specified by the former retirement system       9,268        

under section 145.312 or 3307.283 3307.712 of the Revised Code     9,269        

for the period during which deductions are made under section      9,271        

3309.27 of the Revised Code.                                       9,272        

      (C)  The school employees retirement board shall annually    9,275        

notify the former retirement system that a payment to restore      9,276        

service credit under section 145.31 or 3307.28 3307.71 of the      9,277        

Revised Code has been made.  At the time the payment is            9,278        

transferred under division (D) of this section, the former         9,279        

retirement system shall restore the service credit for the year    9,280        

or portion of a year for which the payment was made.               9,282        

      (D)  On application for a payment of accumulated             9,284        

contributions or an age and service retirement, disability, or     9,286        

survivor benefit under Chapter 145., 3307., or 3309. of the        9,287        

Revised Code by a member who made payments under this section to   9,289        

restore service credit in a former retirement system, the school   9,290        

employees retirement system shall pay to the former retirement     9,291        

system an amount equal to the total amount paid by the member      9,292        

under this section.                                                             

      (E)  The board shall adopt rules to implement this section.  9,294        

      Sec. 3309.262.  After receiving a request from the public    9,304        

employees retirement system under division (A) of section 145.311  9,305        

or the state teachers retirement system under division (A) of      9,308        

section 3307.282 3307.711 of the Revised Code, the school          9,310        

employees retirement system shall do both of the following:        9,311        

      (A)  Calculate and certify to the requesting retirement      9,314        

system the cost to a former member to restore service credit       9,315        

under section 3309.26 of the Revised Code for each year or         9,316        

portion of a year for which the former member seeks to purchase    9,317        

service credit under that section.                                              

      (B)  Inform the requesting retirement system of the rate of  9,319        

interest charged to a member under a payroll deduction plan        9,320        

authorized under section 3309.27 of the Revised Code.              9,321        

      Sec. 3309.301.  (A)(1)  Except as provided in division       9,330        

                                                          196    


                                                                 
(A)(2) of this section, a member of the school employees           9,331        

retirement system with at least eighteen months of contributing    9,332        

service in the system, the public employees retirement system, or  9,333        

the state teachers retirement system who exempted himself SELF     9,334        

from membership in one or more of the systems pursuant to section  9,336        

145.03 or 3309.23 of the Revised Code, or former section 3307.25   9,337        

or 3309.25 of the Revised Code, or was exempt under section        9,338        

3307.27 3307.24 of the Revised Code, may purchase credit for each  9,340        

year or portion of a year of service for which he THE MEMBER was   9,341        

exempted.                                                          9,342        

      (2)  A member may not purchase credit under this section     9,344        

for service that was exempted from contribution under section      9,345        

3309.23 of the Revised Code and subject to the tax on wages        9,346        

imposed by the "Federal Insurance Contributions Act," 68A Stat.    9,347        

415 (1954), 26 U.S.C.A. 3101, as amended.                          9,348        

      (B)  Upon receipt of a request from a member eligible to     9,350        

purchase credit under this section and certification of the        9,351        

member's service and compensation from the employer for which the  9,352        

exempt service was performed, the school employees retirement      9,353        

system shall determine the amount of credit the member is          9,354        

eligible to purchase in accordance with divisions (B)(1) and (2)   9,355        

of this section.                                                   9,356        

      (1)  If the credit to be purchased is for service exempted   9,358        

under section 3309.23 or former section 3309.25 of the Revised     9,359        

Code, determine the amount of credit that would have been earned   9,360        

had the service not been exempt.                                   9,361        

      (2)  If the credit to be purchased is for service exempted   9,363        

under section 145.03 or 3307.27 3307.24, or former section         9,364        

3307.25 of the Revised Code, request certification from the        9,366        

applicable retirement system that the service was exempt and the   9,367        

amount of service credit that would have been earned had the       9,368        

service not been exempt.                                           9,369        

      (C)  For each year or portion of a year of credit purchased  9,371        

under this section, a member shall pay to the retirement system    9,372        

                                                          197    


                                                                 
an amount determined by multiplying the member's compensation for  9,373        

the twelve months of contributing service preceding the month in   9,374        

which he THE MEMBER applies to purchase the credit by a            9,375        

percentage rate established by rule of the school employees        9,377        

retirement board adopted under division (G) of this section.       9,378        

      (D)  Subject to board rules, a member may purchase all or    9,380        

part of the credit he THE MEMBER is eligible to purchase under     9,381        

this section in one or more payments.  If the member purchases     9,383        

the credit in more than one payment, compound interest at a rate   9,384        

specified by rule of the board shall be charged on the balance     9,385        

remaining after the first payment is made.                         9,386        

      (E)  Credit purchasable under this section shall not exceed  9,388        

one year of service for any twelve-month period.  If the period    9,389        

of service for which credit is purchasable under this section is   9,390        

concurrent with a period of service that will be used to           9,391        

calculate a retirement benefit from this system, the public        9,392        

employees retirement system, or the state teachers retirement      9,393        

system, the amount of the credit shall be adjusted in accordance   9,394        

with rules adopted by the school employees retirement board.       9,395        

      A member who is also a member of the public employees        9,397        

retirement system or the state teachers retirement system shall    9,398        

purchase credit for any service for which he THE MEMBER exempted   9,399        

himself SELF under section 145.03 or 3309.23 of the Revised Code,  9,401        

or former section 3307.25 or 3309.25 of the Revised Code, or was   9,402        

exempt under section 3307.27 3307.24 of the Revised Code, from     9,403        

the retirement system in which he THE MEMBER has the greatest      9,405        

number of years of service credit.  If the member receives         9,407        

benefits under section 3309.35 of the Revised Code, the state      9,408        

retirement system that determines and pays the retirement benefit  9,409        

shall receive from the other system or systems the amounts paid    9,410        

by the member for purchase of credit for exempt service plus       9,411        

interest at the actuarial assumption rate of the system paying     9,412        

that amount.  The interest shall be for the period beginning on    9,413        

the date of the member's last payment for purchase of the credit   9,414        

                                                          198    


                                                                 
and ending on the date of the member's retirement.                 9,415        

      (F)  If a member dies or withdraws from service, any         9,417        

payment made by the member under this section shall be considered  9,418        

as accumulated contributions of the member.                        9,419        

      (G)  The retirement board shall adopt rules to implement     9,421        

this section.                                                      9,422        

      Sec. 3309.31.  Service credit purchased under this section   9,431        

shall be included in the member's total service credit.  Credit    9,432        

may be purchased for the following:                                9,433        

      (A)  School service in a public or private school, college,  9,435        

or university of this or another state, and for school service in  9,436        

any school or entity operated by or for the United States          9,437        

government.  Credit purchased under this section for school        9,438        

service shall be limited to service rendered in schools,           9,439        

colleges, or universities chartered or accredited by the           9,440        

appropriate governmental agency.                                   9,441        

      (B)  Public service with another state or the United States  9,443        

government, provided that such credit shall be limited to service  9,444        

that would have been covered by the state teachers retirement      9,445        

system, the Ohio police and fire pension fund, the state highway   9,448        

patrol retirement system, or the public employees retirement       9,449        

system if served in a comparable public position in this state.    9,450        

      (C)  Service for which contributions were made by the        9,452        

member or on the member's behalf to a municipal retirement system  9,454        

in this state.                                                     9,455        

      The number of years of service purchased under this section  9,458        

shall not exceed the lesser of five years or the member's total    9,459        

accumulated number of years of Ohio service.                                    

      For each year of service purchased under this section, a     9,461        

member shall pay to the school employees retirement system for     9,462        

credit to the member's accumulated account an amount equal to the  9,464        

member's retirement contribution for full-time employment for the  9,465        

first year of Ohio service following termination of the service    9,466        

to be purchased.  To this amount shall be added an amount equal    9,467        

                                                          199    


                                                                 
to compound interest at a rate established by the school           9,468        

employees retirement board from the date of membership in the      9,469        

school employees retirement system to date of payment.  A member   9,470        

may choose to purchase only part of such credit in any one         9,471        

payment, subject to board rules.                                   9,472        

      A member is ineligible to purchase under this section        9,474        

service that is used in the calculation of any retirement benefit  9,475        

currently being paid or payable in the future to the member under  9,476        

any other retirement program, except social security.  At the      9,477        

time the credit is purchased, the member shall certify on a form   9,478        

furnished by the retirement board that the member does and will    9,480        

conform to this requirement.                                       9,481        

      (D)  Credit purchased under this section may be combined     9,483        

pursuant to section 3309.35 of the Revised Code with credit        9,484        

purchased under sections 145.293 and 3307.32 3307.74 of the        9,485        

Revised Code, except that not more than an aggregate total of      9,487        

five years' service credit purchased under this section and        9,488        

sections 145.293 and 3307.32 3307.74 of the Revised Code shall be  9,489        

used in determining retirement eligibility or calculating          9,491        

benefits under section 3309.35 of the Revised Code.                9,492        

      (E)  The retirement board shall establish a policy to        9,494        

determine eligibility to purchase credit under this section, and   9,495        

its decision shall be final.                                       9,496        

      Sec. 3309.341.  (A)  As used in this section:                9,505        

      (1)  "SERS retirant" means any person who is receiving a     9,507        

retirement allowance from the school employees retirement system   9,508        

under section 3309.36, 3309.38, or 3309.381 of the Revised Code.   9,509        

      (2)  "Other system retirant" means a member or former        9,511        

member of the public employees retirement system, Ohio police and  9,513        

fire pension fund, state teachers retirement system, state         9,514        

highway patrol retirement system, or Cincinnati retirement system  9,515        

who is receiving age and service or commuted age and service       9,516        

retirement, or a disability benefit from a system of which the     9,517        

retirant is a member or former member.                                          

                                                          200    


                                                                 
      (B)(1)  An SERS retirant or other system retirant may be     9,519        

employed by a public employer.  If so employed, the SERS retirant  9,520        

or other system retirant shall contribute to the school employees  9,521        

retirement system in accordance with section 3309.47 of the        9,522        

Revised Code, and the employer shall make contributions in         9,523        

accordance with section 3309.49 of the Revised Code.               9,524        

      (2)  An employer that employs an SERS retirant or other      9,526        

system retirant shall notify the retirement board of the           9,527        

employment not later than the end of the month in which the        9,528        

employment commences.  On receipt of notice from an employer that  9,529        

a person who is an other system retirant has been employed, the    9,530        

school employees retirement system shall notify the state          9,531        

retirement system of which the other system retirant was a member  9,532        

of such employment.                                                9,533        

      (C)  An SERS retirant or other system retirant who has       9,535        

received a retirement allowance or disability benefit for less     9,537        

than two months when employment subject to this section commences  9,538        

shall forfeit the retirement allowance or disability benefit for   9,540        

the period that begins on the date the employment commences and    9,541        

ends on the date that is two months after the date on which the    9,542        

retirement allowance or disability benefit commenced.  Service     9,543        

and contributions for that period shall not be included in the     9,544        

calculation of any benefits payable to the SERS retirant or other  9,545        

system retirant, and those contributions shall be refunded on      9,546        

death or termination of the employment.                            9,547        

      (D)  On receipt of notice from the Ohio police and fire      9,550        

pension fund, public employees retirement system, or state         9,552        

teachers retirement system of the re-employment of an SERS         9,553        

retirant, the school employees retirement system shall not pay,                 

or if paid shall recover, the amount to be forfeited by the SERS   9,554        

retirant in accordance with section 145.38, 742.26, or 3307.381    9,555        

3307.35 of the Revised Code.                                       9,556        

      (E)(1)  On termination of employment under this section, an  9,558        

SERS retirant or other system retirant may file an application     9,559        

                                                          201    


                                                                 
with the school employees retirement system for a benefit under    9,560        

this division, which shall consist of a single life annuity        9,561        

having a reserve equal to the amount of the retirant's             9,562        

accumulated contributions for the period of employment and an      9,564        

equal amount of the employer's contributions, plus interest        9,565        

credited to the date of retirement at the rate provided in         9,566        

division (I)(2) of section 3309.01 of the Revised Code.  The SERS  9,567        

retirant or other system retirant shall elect either to receive    9,568        

the benefit as a monthly annuity for life or a lump-sum payment    9,569        

discounted to the present value using the current actuarial        9,570        

assumption rate of interest, except that if the monthly annuity    9,571        

would be less than twenty-five dollars per month, the retirant     9,573        

shall receive a lump-sum payment.                                               

      (2)  A benefit payable under this division shall commence    9,575        

on the first day of the month after the latest of the following:   9,576        

      (a)  The last day for which compensation for employment      9,578        

subject to this section was paid;                                  9,579        

      (b)  Attainment by the SERS retirant or other system         9,581        

retirant of age sixty-five;                                        9,582        

      (c)  If the SERS retirant or other system retirant was       9,584        

previously employed under this section and is receiving or         9,585        

previously received a benefit under this division, completion of   9,586        

a period of twelve months since the effective date of that         9,587        

benefit.                                                           9,588        

      (3)  An SERS retirant or other system retirant subject to    9,590        

this section is not a member of the school employees retirement    9,591        

system; does not have any of the rights, privileges, or            9,592        

obligations of membership, except as specified in this section;    9,593        

and is not eligible to receive health, medical, hospital, or       9,594        

surgical benefits under section 3309.69 of the Revised Code for    9,595        

employment subject to this section.  No amount received under      9,596        

this division shall be included in determining an additional       9,597        

benefit under section 3309.374 of the Revised Code or any other    9,598        

post-retirement benefits.                                          9,599        

                                                          202    


                                                                 
      (F)(1)  If an SERS retirant or other system retirant dies    9,601        

while employed in employment subject to this section, a lump-sum   9,602        

payment calculated in accordance with division (E)(1) of this      9,603        

section shall be paid to the beneficiary under division (H) of     9,604        

this section.                                                      9,605        

      (2)  If at the time of death an SERS retirant or other       9,607        

system retirant receiving a monthly annuity has received less      9,608        

than the retirant would have received as a lump-sum payment, the   9,611        

difference between the amount received and the amount that would   9,613        

have been received as a lump-sum payment shall be paid to the      9,614        

retirant's beneficiary under division (H) of this section.         9,616        

      (G)  If the disability benefit of an other system retirant   9,618        

employed under this section is terminated, the retirant shall      9,619        

become a member of the school employees retirement system,         9,621        

effective on the first day of the month next following the         9,622        

termination, with all the rights, privileges, and obligations of   9,623        

membership.  If the retirant, after the termination of the         9,625        

disability benefit, earns two years of service credit under this   9,627        

retirement system or under the public employees retirement         9,628        

system, Ohio police and fire pension fund, state teachers          9,629        

retirement system, or state highway patrol retirement system, the  9,631        

retirant's prior contributions as an other system retirant under   9,633        

this section shall be included in the retirant's total service     9,634        

credit as a school employees retirement system member, and the     9,636        

retirant shall forfeit all rights and benefits of this section.    9,638        

Not more than one year of credit may be given for any period of    9,639        

twelve months.                                                                  

      (H)  An SERS retirant or other system retirant employed      9,641        

under this section may designate one or more persons as            9,642        

beneficiary to receive any benefits payable under this section     9,643        

due to death.  The designation shall be in writing duly executed   9,645        

on a form provided by the school employees retirement board,       9,646        

signed by the SERS retirant or other system retirant, and filed    9,647        

with the board prior to death.  The last designation of a          9,648        

                                                          203    


                                                                 
beneficiary revokes all previous designations.  The SERS                        

retirant's or other system retirant's marriage, divorce, marriage  9,649        

dissolution, legal separation, withdrawal of account, birth of     9,650        

the retirant's child, or adoption of a child revokes all previous  9,652        

designations.  If there is no designated beneficiary, the          9,653        

beneficiary is the beneficiary designated under division (D) of    9,654        

section 3309.44 of the Revised Code.  If any benefit payable       9,655        

under this section due to the death of an SERS retirant or other   9,656        

system retirant is not claimed by a beneficiary within five years  9,657        

after the death, the amount payable shall be transferred to the    9,658        

guarantee fund and thereafter paid to the beneficiary or the       9,659        

estate of the SERS retirant or other system retirant on            9,660        

application to the board.                                          9,661        

      (I)  This section does not affect the receipt of benefits    9,663        

by or eligibility for benefits of any person who on August 29,     9,664        

1976, was receiving a disability benefit or service retirement     9,665        

pension or allowance from a state or municipal retirement system   9,666        

in Ohio and was a member of any other state or municipal           9,667        

retirement system of this state.                                   9,668        

      (J)  The school employees retirement board may adopt rules   9,670        

to carry out this section.                                         9,671        

      Sec. 3309.35.  (A)  As used in this section:                 9,680        

      (1)  "State retirement system" means the public employees    9,682        

retirement system, state teachers retirement system, or school     9,683        

employees retirement system.                                       9,684        

      (2)  "Total service credit" means all service credit earned  9,686        

in all state retirement systems, except credit for service         9,687        

subject to section 3309.341 of the Revised Code.  Total service    9,688        

credit shall not exceed one year of credit for any twelve-month    9,689        

period.                                                            9,690        

      (3)  In addition to the meaning given in division (O) of     9,692        

section 3309.01 of the Revised Code, "disability benefit" means    9,693        

"disability benefit" as defined in sections 145.01 and 3307.01 of  9,694        

the Revised Code.                                                  9,695        

                                                          204    


                                                                 
      (B)  To coordinate and integrate membership in the state     9,697        

retirement systems, at the option of a member, total               9,699        

contributions and service credit in all state retirement systems,  9,700        

including amounts paid to restore service credit under sections    9,701        

145.311, 3307.282 3307.711, and 3309.261 of the Revised Code,      9,703        

shall be used in determining the eligibility and total retirement  9,704        

or disability benefit payable.  When total contributions and       9,705        

service credit are so combined, the following provisions apply:    9,706        

      (1)  Service and commuted service retirement or a            9,708        

disability benefit is effective no sooner than the first day of    9,709        

the month next following the last day of employment for which      9,710        

compensation was paid.  If the application is filed after that     9,711        

date, the board may retire the member on the first day of the      9,712        

month next following the last day of employment for which          9,713        

compensation was paid.                                             9,714        

      (2)  In determining eligibility for a disability benefit,    9,716        

the medical examiner's report to the retirement board of any       9,717        

state retirement system, showing that the member's disability      9,718        

incapacitates the member for the performance of duty, may be       9,719        

accepted by the state retirement boards as sufficient for          9,721        

granting a disability benefit.                                     9,722        

      (3)  The state retirement system in which the member had     9,724        

the greatest service credit, without adjustment, shall determine   9,725        

and pay the total retirement or disability benefit.  Where the     9,726        

member's credit is equal in two or more state retirement systems,  9,728        

the system having the largest total contributions of the member    9,729        

shall determine and pay the total benefit.                         9,730        

      (4)  In determining the total credit to be used in           9,732        

calculating a retirement allowance or disability benefit, credit   9,733        

shall not be reduced below that certified by the system or         9,734        

systems transferring credit, except that such total combined       9,735        

service credit shall not exceed one year of credit for any one     9,736        

"year" as defined in the law of the system making the              9,737        

calculation.                                                       9,738        

                                                          205    


                                                                 
      (5)  The state retirement system determining and paying a    9,740        

retirement or disability benefit shall receive from the other      9,741        

system or systems the member's refundable account at retirement    9,742        

or the effective date of a disability benefit plus an equal        9,743        

amount from the employers' trust fund.                             9,744        

      (a)  The annuity rates and mortality tables of the state     9,746        

retirement system making the calculation and paying the benefit    9,747        

shall be exclusively applicable.                                   9,748        

      (b)  Deposits made for the purchase of an additional         9,750        

annuity, and including guaranteed interest, upon the request of    9,751        

the member, shall be transferred to the state retirement system    9,752        

paying the retirement or disability benefit.  The return upon      9,753        

such deposits shall be that offered by the state retirement        9,754        

system making the calculation and paying the retirement or         9,755        

disability benefit.                                                9,756        

      (C)  A former member receiving a retirement or disability    9,758        

benefit under this section, who accepts employment amenable to     9,759        

coverage in any state retirement system that participated in the   9,760        

member's combined benefit, shall be subject to the applicable      9,762        

provisions of law governing such re-employment.  If the former     9,763        

member is subject to section 3307.381 3307.35 of the Revised Code  9,764        

and exceeds the limits on re-employment established by that        9,766        

section, the state retirement system paying a combined benefit     9,767        

shall terminate the entire pension portion of the benefit for the  9,768        

period of re-employment that exceeds the limit in that section.    9,769        

If a former member should be paid any amount in a retirement       9,770        

allowance, to which the former member is not entitled under the    9,772        

applicable provisions of law governing such re-employment, such    9,773        

amount shall be recovered by the state retirement system paying    9,774        

such allowance by utilizing any recovery procedure available       9,775        

under the code provisions of the state retirement system covering  9,776        

such re-employment.                                                9,777        

      (D)  An SERS retirant or other system retirant, as defined   9,779        

in section 3309.341 of the Revised Code, is not eligible to        9,780        

                                                          206    


                                                                 
receive any benefit under this section for service subject to      9,781        

section 3309.341 of the Revised Code.                              9,782        

      Sec. 3309.39.  (A)  The school employees retirement system   9,791        

shall provide disability coverage to each member who has at least  9,792        

five years of total service credit.                                9,793        

      Not later than October 16, 1992, the school employees        9,795        

retirement board shall give each person who is a member on July    9,796        

29, 1992, the opportunity to elect disability coverage either      9,799        

under section 3309.40 of the Revised Code or under section         9,800        

3309.401 of the Revised Code.  The board shall mail notice of the  9,801        

election, accompanied by an explanation of the coverage under      9,802        

each of the Revised Code sections and a form on which the          9,803        

election is to be made, to each member at the member's last known  9,805        

address.  The board shall also provide the explanation and form    9,806        

to any member at the member's request.                                          

      Regardless of whether the member actually receives notice    9,808        

of the right to make an election, a member who fails to file a     9,810        

valid election under this section shall be considered to have                   

elected disability coverage under section 3309.40 of the Revised   9,811        

Code.  To be valid, an election must be made on the form provided  9,812        

by the retirement board, signed by the member, and filed with the  9,813        

board not later than one hundred eighty days after the date the    9,814        

notice was mailed, or, in the case of a form provided at the       9,815        

request of a member, a date specified by rule of the retirement    9,816        

board.  Once made, an election is irrevocable, but if the member   9,817        

ceases to be a member of the retirement system, the election is    9,818        

void.  If a person who makes an election under this section also   9,819        

makes an election under section 145.35 or 3307.42 3307.62 of the   9,821        

Revised Code, the election made for the system that pays a         9,822        

disability benefit to that person shall govern the benefit.        9,823        

      Disability coverage shall be provided under section          9,825        

3309.401 of the Revised Code for persons who become members after  9,826        

July 29, 1992, and for members who elect under this division to    9,829        

be covered under section 3309.401 of the Revised Code.             9,830        

                                                          207    


                                                                 
      The retirement board may adopt rules governing elections     9,832        

made under this division.                                          9,833        

      (B)  Application for a disability benefit may be made by a   9,835        

member, by a person acting in the member's behalf, or by the       9,836        

member's employer, provided the member has at least five years of  9,837        

total service credit and has disability coverage under section     9,838        

3309.40 or 3309.401 of the Revised Code.  The application for a    9,839        

disability benefit shall be made on a form provided by the         9,840        

retirement board.  The benefit payable to any member who is        9,841        

approved for a disability benefit shall become effective on the    9,842        

first day of the month next following the later of the following:  9,843        

      (1)  The last day for which compensation was paid;           9,845        

      (2)  The date on which the member was first incapacitated    9,847        

by the disabling condition.                                        9,848        

      (C)  Medical examination of a member who has applied for a   9,850        

disability benefit shall be conducted by a competent               9,851        

disinterested physician or physicians selected by the retirement   9,852        

board to determine whether the member is mentally or physically    9,853        

incapacitated for the performance of the member's last assigned    9,854        

primary duty as an employee by a disabling condition either        9,855        

permanent or presumed to be permanent for twelve continuous        9,856        

months following the filing of an application.  Such disability    9,858        

must have occurred since last becoming a member or have increased  9,859        

since last becoming a member to such extent as to make the         9,860        

disability permanent or presumed to be permanent for twelve        9,861        

continuous months following the filing of an application.          9,862        

      (D)  Application for a disability benefit must be made       9,864        

within two years from the date the member's contributing service   9,865        

terminated, unless the retirement board determines that the        9,866        

member's medical records demonstrate conclusively that at the      9,867        

time the two-year period expired, the member was physically or     9,868        

mentally incapacitated for duty as an employee and unable to make  9,869        

application.  Application may not be made by any person receiving  9,870        

a service retirement allowance or commuted service retirement      9,871        

                                                          208    


                                                                 
allowance under section 3309.36, 3309.38, or 3309.381 of the       9,872        

Revised Code or any person who, pursuant to section 3309.42 of     9,873        

the Revised Code, has been paid the accumulated contributions      9,874        

standing to the credit of the person's individual account in the   9,876        

employees' savings fund.                                                        

      (E)  If the physician or physicians determine that the       9,878        

member qualifies for a disability benefit, the retirement board    9,880        

concurs with the determination, and the member agrees to medical                

treatment as specified in division (F) of this section, the        9,882        

member shall receive a disability benefit under section 3309.40    9,883        

or 3309.401 of the Revised Code.  The action of the board shall    9,884        

be final.  At the time the board decides it concurs with the       9,885        

determination of the physician or physicians, the board shall      9,886        

determine the date on which the member was first incapacitated by  9,887        

the disabling condition.                                           9,888        

      (F)  The school employees retirement board shall adopt       9,890        

rules requiring a disability benefit recipient, as a condition of  9,892        

continuing to receive a disability benefit, to agree in writing    9,893        

to obtain any medical treatment recommended by the board's         9,894        

physician and submit medical reports regarding the treatment.  If  9,896        

the board determines that a disability benefit recipient is not                 

obtaining the medical treatment or the board does not receive a    9,897        

required medical report, the disability benefit shall be           9,898        

suspended until the treatment is obtained, the report is received  9,900        

by the board, or the board's physician certifies that the          9,901        

treatment is no longer helpful or advisable.  Should the           9,903        

recipient's failure to obtain treatment or submit a medical                     

report continue for one year, the recipient's right to the         9,905        

disability benefit shall be terminated as of the effective date    9,906        

of the original suspension.                                                     

      (G)  In the event an employer files an application for a     9,908        

disability benefit as a result of a member having been separated   9,909        

from service because the member is considered to be mentally or    9,911        

physically incapacitated for the performance of the member's last               

                                                          209    


                                                                 
assigned primary duty as an employee, and the physician or         9,912        

physicians selected by the board report to the board that the      9,913        

member is physically and mentally capable of performing service    9,914        

similar to that from which the member was separated, and the       9,915        

board concurs in such report, then the board shall so certify to   9,916        

the employer and the employer shall restore the member to the      9,917        

member's previous position and salary or to a similar position     9,918        

and salary.                                                                     

      Sec. 3309.45.  Except as provided in division (C)(1) of      9,927        

this section, in lieu of accepting the payment of the accumulated  9,929        

account of a member who dies before service retirement, the        9,930        

beneficiary, as determined in section 3309.44 of the Revised       9,931        

Code, may elect to forfeit the accumulated account and to          9,932        

substitute certain other benefits either under division (A) or     9,933        

(B) of this section.                                                            

      (A)  If a deceased member was eligible for a service         9,935        

retirement allowance as provided in section 3309.36, 3309.38, or   9,936        

3309.381 of the Revised Code, a surviving spouse or other sole     9,937        

dependent beneficiary may elect to receive a monthly benefit       9,939        

computed as the joint-survivor allowance designated as "plan D"    9,940        

in section 3309.46 of the Revised Code, which the member would     9,941        

have received had the member retired on the last day of the month  9,942        

of death and had the member at that time selected such             9,943        

joint-survivor plan.  Payment shall begin with the month           9,944        

subsequent to the member's death.                                  9,945        

      (B)  If the deceased member had completed at least one and   9,947        

one-half years of credit for Ohio service, with at least           9,948        

one-quarter year of Ohio contributing service credit within the    9,949        

two and one-half years prior to the date of death, or was          9,950        

receiving at the time of death a disability benefit as provided    9,951        

in section 3309.40 or 3309.401 of the Revised Code, qualified      9,952        

survivors may elect to receive monthly benefits, provided in       9,955        

divisions (B)(1) and (5) of this section.                                       

    (1)  Number of                                                 9,957        

                                                          210    


                                                                 
    Qualified                                                      9,958        

                                                       Or          9,959        

    survivors      Annual Benefit as a Per       Monthly Benefit   9,961        

    affecting        Cent of Decedent's           shall not be     9,964        

                            Final                                               

    the benefit        Average Salary               less than      9,967        

         1                   25%                      $ 96         9,970        

         2                   40                        186         9,971        

         3                   50                        236         9,972        

         4                   55                        236         9,973        

         5 or more           60                        236         9,974        

      (2)  Benefits shall begin as qualified survivors meet        9,977        

eligibility requirements as follows:                               9,978        

      (a)  A qualified spouse is the surviving spouse of the       9,980        

deceased member who is age sixty-two, or age fifty if the          9,983        

deceased member had ten or more years of Ohio service credit, or   9,984        

regardless of age if caring for a surviving child, or regardless   9,986        

of age if adjudged physically or mentally incompetent.             9,987        

      (b)  A qualified child is any unmarried child of the         9,991        

deceased member under age eighteen, or under age twenty-two if     9,992        

the child is attending an institution of learning or training      9,993        

pursuant to a program designed to complete in each school year     9,994        

the equivalent of at least two-thirds of the full-time curriculum  9,995        

requirements of such institution and as further determined by      9,996        

board policy, or regardless of age if adjudged physically or       9,997        

mentally incompetent.                                              9,998        

      (c)  A qualified parent is a dependent parent aged           10,000       

sixty-five or older.                                               10,001       

      (3)  "Physically or mentally incompetent" as used in this    10,003       

section may be determined by a court of jurisdiction, or by a      10,004       

physician appointed by the retirement board.  Incapability of      10,005       

earning a living because of a physically or mentally disabling     10,006       

condition shall meet the qualifications of this division.          10,007       

      (4)  Benefits to a qualified survivor shall terminate upon   10,010       

                                                          211    


                                                                 
a first marriage, abandonment, adoption, or during active          10,012       

military service.  Benefits to a deceased member's surviving       10,014       

spouse that were terminated under a former version of this         10,015       

section that required termination due to remarriage and were not   10,016       

resumed prior to the effective date of this amendment shall        10,017       

resume on the first day of the month immediately following                      

receipt by the board of an application on a form provided by the   10,018       

board.                                                                          

      Upon the death of any subsequent spouse who was a member of  10,021       

the public employees retirement system, state teachers retirement  10,022       

system, or school employees retirement system, the surviving       10,023       

spouse of such member may elect to continue receiving benefits     10,024       

under this division, or to receive survivor's benefits, based      10,025       

upon the subsequent spouse's membership in one or more of the      10,026       

systems, for which such surviving spouse is eligible under this    10,027       

section or section 145.45 or 3307.49 3307.66 of the Revised Code.  10,029       

If the surviving spouse elects to continue receiving benefits      10,030       

under this division, such election shall not preclude the payment  10,031       

of benefits under this division to any other qualified survivor.   10,032       

      Benefits shall begin or resume on the first day of the       10,034       

month following the attainment of eligibility and shall terminate  10,035       

on the first day of the month following loss of eligibility.       10,036       

      (5)  Benefits to a qualified spouse shall be paid in the     10,038       

amount determined for the first qualifying survivor in division    10,040       

(B)(1) of this section, but shall not be less than one hundred     10,041       

six dollars per month if the deceased member had ten or more       10,042       

years of Ohio service credit.  All other qualifying survivors      10,044       

shall share equally in the benefit or remaining portion thereof.   10,045       

      (6)  The beneficiary of a member who is also a member of     10,047       

the public employees retirement system, or of the state teachers   10,048       

retirement system, must forfeit the member's accumulated           10,049       

contributions in those systems, if the beneficiary takes a         10,052       

survivor benefit.  Such benefit shall be exclusively governed by   10,053       

section 3309.35 of the Revised Code.                               10,054       

                                                          212    


                                                                 
      (C)(1)  Regardless of whether the member is survived by a    10,058       

spouse or designated beneficiary, if the school employees                       

retirement system receives notice that a deceased member           10,059       

described in division (A) or (B) of this section has one or more   10,061       

qualified children, all persons who are qualified survivors under  10,062       

Division (B) of this section shall receive monthly benefits as     10,065       

provided in division (B) of this section.                          10,066       

      If, after determining the monthly benefits to be paid under  10,068       

division (B) of this section, the system receives notice that      10,069       

there is a qualified survivor who was not considered when the      10,070       

determination was made, the system shall, notwithstanding section  10,071       

3309.661 of the Revised Code, recalculate the monthly benefits     10,072       

with that qualified survivor included, even if the benefits to     10,073       

qualified survivors already receiving benefits are reduced as a    10,074       

result.  The benefits shall be calculated as if the qualified      10,075       

survivor who is the subject of the notice became eligible on the                

date the notice was received and shall be paid to qualified        10,076       

survivors effective on the first day of the first month following  10,077       

the system's receipt of the notice.                                10,078       

      If the retirement system did not receive notice that a       10,080       

deceased member has one or more qualified children prior to        10,082       

making payment under section 3309.44 of the Revised Code to a      10,085       

beneficiary as determined by the retirement system, the payment    10,086       

is a full discharge and release of the system from any future      10,087       

claims under this section or section 3309.44 of the Revised Code.  10,088       

      (2)  If benefits under division (C)(1) of this section to    10,091       

all persons, or to all persons other than a surviving spouse or    10,093       

other sole beneficiary, terminate, there are no children under                  

the age of twenty-two years, and the surviving spouse or           10,094       

beneficiary qualifies for benefits under division (A) of this      10,096       

section, the surviving spouse or beneficiary may elect to receive  10,097       

benefits under division (A) of this section.  Benefits shall be    10,098       

effective on the first day of the month following receipt by the   10,100       

board of an application for benefits under division (A) of this    10,101       

                                                          213    


                                                                 
section.                                                           10,102       

      (D)  If the survivor benefits due and paid under this        10,104       

section are in a total amount less than the member's accumulated   10,105       

account that was transferred from the employees' savings fund,     10,106       

the state teachers retirement fund, and the public employees       10,107       

retirement fund to the survivors' benefit fund, then the           10,108       

difference between the total amount of the benefits paid shall be  10,109       

paid to the beneficiary under section 3309.44 of the Revised       10,110       

Code.                                                              10,111       

      Sec. 3313.975.   As used in this section and in sections     10,120       

3313.975 to 3313.979 of the Revised Code, "the pilot project       10,121       

school district" or "the district" means any school district       10,124       

included in the pilot project scholarship program pursuant to      10,125       

this section.                                                                   

      (A)  The superintendent of public instruction shall          10,128       

establish a pilot project scholarship program and shall include    10,129       

in such program any school districts that are or have ever been    10,130       

under federal court order requiring supervision and operational    10,132       

management of the district by the state superintendent.  The                    

program shall provide for a number of students residing in any     10,134       

such district to receive scholarships to attend alternative        10,135       

schools, and for an equal number of students to receive tutorial   10,136       

assistance grants while attending public school in any such        10,137       

district.                                                                       

      (B)  The state superintendent shall establish an             10,139       

application process and deadline for accepting applications from   10,140       

students residing in the district to participate in the            10,141       

scholarship program.  In the initial year of the program students  10,142       

may only use a scholarship to attend school in grades              10,143       

kindergarten through third.                                                     

      The state superintendent shall award as many scholarships    10,145       

and tutorial assistance grants as can be funded given the amount   10,146       

appropriated for the program.  In no case, however, shall more     10,147       

than fifty per cent of all scholarships awarded be used by         10,148       

                                                          214    


                                                                 
students who were enrolled in a nonpublic school during the        10,149       

school year of application for a scholarship.                      10,150       

      (C)(1)  The pilot project program shall continue in effect   10,154       

each year that the general assembly has appropriated sufficient    10,155       

money to fund scholarships and tutorial assistance grants.  In     10,156       

each year the program continues, no new students may receive       10,157       

scholarships unless they are enrolled in grade kindergarten, one,  10,158       

two, or three.  However, any student who has received a            10,160       

scholarship the preceding year may continue to receive one until   10,161       

the student has completed grade eight.                                          

      (2)  If the general assembly discontinues the scholarship    10,163       

program, all students who are attending an alternative school      10,164       

under the pilot project shall be entitled to continued admittance  10,166       

to that specific school through all grades up to the eighth grade  10,167       

that are provided in such school, under the same conditions as     10,169       

when they were participating in the pilot project.  The state      10,170       

superintendent shall continue to make scholarship payments in                   

accordance with division (A) or (B) of section 3313.979 of the     10,172       

Revised Code for students who remain enrolled in an alternative    10,174       

school under this provision in any year that funds have been       10,175       

appropriated for this purpose.                                                  

      If funds are not appropriated, the tuition charged to the    10,177       

parents of a student who remains enrolled in an alternative        10,179       

school under this provision shall not be increased beyond the      10,180       

amount equal to the amount of the scholarship plus any additional  10,181       

amount charged that student's parent in the most recent year of    10,182       

attendance as a participant in the pilot project, except that      10,183       

tuition for all the students enrolled in such school may be        10,184       

increased by the same percentage.                                  10,185       

      (D)  Notwithstanding sections 124.39, 3307.35 3307.54, and   10,188       

3319.17 of the Revised Code, if the pilot project school district  10,189       

experiences a decrease in enrollment due to participation in a     10,190       

state-sponsored scholarship program pursuant to sections 3313.974  10,191       

to 3313.979 of the Revised Code, the district board of education   10,192       

                                                          215    


                                                                 
may enter into an agreement with any teacher it employs to         10,193       

provide to that teacher severance pay or early retirement          10,194       

incentives, or both, if the teacher agrees to terminate the        10,195       

employment contract with the district board, provided any          10,196       

collective bargaining agreement in force pursuant to Chapter       10,197       

4117. of the Revised Code does not prohibit such an agreement for  10,199       

termination of a teacher's employment contract.                                 

      Sec. 3317.011.  On or before the third Wednesday of each     10,208       

month, the department of education shall certify to the director   10,209       

of budget and management for payment, for each county:             10,210       

      (A)(1)  That portion of the allocation of money under        10,212       

sections 3317.022 to 3317.0211, 3317.11, 3317.16, 3317.17, and     10,213       

3317.19 of the Revised Code that is required to be paid in that    10,214       

month to each school district located wholly within the county     10,215       

subsequent to the deductions described in division (A)(2) of this  10,216       

section; and                                                       10,217       

      (2)  The amounts deducted from such allocation under         10,219       

sections 3307.56 3307.31 and 3309.51 of the Revised Code for       10,220       

payment directly to the school employees and state teachers        10,222       

retirement systems under such sections.                            10,223       

      (B)  If the district is located in more than one county, an  10,225       

apportionment of the amounts that would otherwise be certified     10,226       

under division (A) of this section.  The amounts apportioned to    10,227       

the county shall equal the amounts certified under division (A)    10,228       

of this section times the percentage of the district's resident    10,229       

pupils who reside both in the district and in the county.          10,230       

      Sec. 3317.13.  (A)  As used in this section and section      10,239       

3317.14 of the Revised Code:                                       10,240       

      (1)  "Years of service" includes the following:              10,242       

      (a)  All years of teaching service in the same school        10,244       

district or educational service center, regardless of training     10,245       

level, with each year consisting of at least one hundred twenty    10,247       

days under a teacher's contract;                                                

      (b)  All years of teaching service in a chartered,           10,249       

                                                          216    


                                                                 
nonpublic school located in Ohio as a teacher licensed pursuant    10,250       

to section 3319.22 of the Revised Code or in another public        10,251       

school, regardless of training level, with each year consisting    10,252       

of at least one hundred twenty days under a teacher's contract;    10,253       

      (c)  All years of teaching service in a chartered school or  10,255       

institution or a school or institution that subsequently became    10,256       

chartered or a chartered special education program or a special    10,257       

education program that subsequently became chartered operated by   10,258       

the state or by a subdivision or other local governmental unit of  10,259       

this state as a teacher licensed pursuant to section 3319.22 of    10,260       

the Revised Code, regardless of training level, with each year     10,261       

consisting of at least one hundred twenty days; and                10,262       

      (d)  All years of active military service in the armed       10,264       

forces of the United States, as defined in section 3307.02         10,265       

3307.75 of the Revised Code, to a maximum of five years.  For      10,267       

purposes of this calculation, a partial year of active military    10,268       

service of eight continuous months or more in the armed forces     10,269       

shall be counted as a full year.                                   10,270       

      (2)  "Teacher" means all teachers employed by the board of   10,272       

education of any school district, including any cooperative        10,274       

education or joint vocational school district and all teachers     10,275       

employed by any educational service center governing board.                     

      (B)  No teacher shall be paid a salary less than that        10,277       

provided in the schedule set forth in division (C) of this         10,278       

section.  In calculating the minimum salary any teacher shall be   10,279       

paid pursuant to this section, years of service shall include the  10,280       

sum of all years of the teacher's teaching service included in     10,281       

divisions (A)(1)(a), (b), (c), and (d) of this section; except     10,282       

that any school district or educational service center employing   10,283       

a teacher new to the district or educational service center shall  10,284       

grant such teacher a total of not more than ten years of service   10,285       

pursuant to divisions (A)(1)(b), (c), and (d) of this section.     10,286       

      Upon written complaint to the superintendent of public       10,288       

instruction that the board of education of a district or the       10,289       

                                                          217    


                                                                 
governing board of an educational service center governing board   10,290       

has failed or refused to annually adopt a salary schedule or to    10,291       

pay salaries in accordance with the salary schedule set forth in   10,292       

division (C) of this section, the superintendent of public         10,293       

instruction shall cause to be made an immediate investigation of   10,294       

such complaint. If the superintendent finds that the conditions    10,295       

complained of exist, the superintendent shall order the board to   10,296       

correct such conditions within ten days from the date of the       10,298       

finding.  No moneys shall be distributed to the district or        10,299       

educational service center under this chapter until the            10,300       

superintendent has satisfactory evidence of the board of           10,301       

education's full compliance with such order.                       10,302       

      Each teacher shall be fully credited with placement in the   10,304       

appropriate academic training level column in the district's or    10,306       

educational service center's salary schedule with years of                      

service properly credited pursuant to this section or section      10,308       

3317.14 of the Revised Code.  No rule shall be adopted or          10,309       

exercised by any board of education or educational service center  10,310       

governing board which restricts the placement or the crediting of  10,311       

annual salary increments for any teacher according to the                       

appropriate academic training level column.                        10,312       

      (C)  Minimum salaries exclusive of retirement and sick       10,314       

leave for teachers shall be as follows:                            10,315       

          Teachers                   Teachers with    Teachers     10,318       

Years     with Less   Teachers with  Five Years of      with       10,320       

of        than        a Bachelor's   Training, but   a Master's    10,322       

Service   Bachelor's     Degree       no Master's    Degree or     10,324       

          Degree                        Degree         Higher      10,325       

   Per     Dollar  Per     Dollar  Per     Dollar  Per     Dollar  10,329       

   Cent*   Amount  Cent*   Amount  Cent*   Amount  Cent*   Amount  10,331       

0   86.5  $14,705  100.0  $17,000  103.8  $17,646  109.5  $18,615  10,333       

1   90.0   15,300  103.8   17,646  108.1   18,377  114.3   19,431  10,335       

2   93.5   15,895  107.6   18,292  112.4   19,108  119.1   20,247  10,337       

3   97.0   16,490  111.4   18,938  116.7   19,839  123.9   21,063  10,339       

                                                          218    


                                                                 
4  100.5   17,085  115.2   19,584  121.0   20,570  128.7   21,879  10,341       

5  104.0   17,680  119.0   20,230  125.3   21,301  133.5   22,695  10,343       

6  104.0   17,680  122.8   20,876  129.6   22,032  138.3   23,511  10,345       

7  104.0   17,680  126.6   21,522  133.9   22,763  143.1   24,327  10,347       

8  104.0   17,680  130.4   22,168  138.2   23,494  147.9   25,143  10,349       

9  104.0   17,680  134.2   22,814  142.5   24,225  152.7   25,959  10,351       

10 104.0   17,680  138.0   23,460  146.8   24,956  157.5   26,775  10,353       

11 104.0   17,680  141.8   24,106  151.1   25,687  162.3   27,591  10,355       

      * Percentages represent the percentage which each salary is  10,358       

of the base amount.                                                10,359       

      For purposes of determining the minimum salary at any level  10,361       

of training and service, the base of one hundred per cent shall    10,362       

be the base amount.  The percentages used in this section show     10,363       

the relationships between the minimum salaries required by this    10,364       

section and the base amount and shall not be construed as          10,365       

requiring any school district or educational service center to     10,366       

adopt a schedule containing salaries in excess of the amounts set  10,368       

forth in this section for corresponding levels of training and     10,369       

experience.                                                                     

      As used in this division:                                    10,371       

      (1)  "Base amount" means seventeen thousand dollars.         10,373       

      (2)  "Five years of training" means at least one hundred     10,375       

fifty semester hours, or the equivalent, and a bachelor's degree   10,376       

from a recognized college or university.                           10,377       

      (D)  For purposes of this section, all credited training     10,379       

shall be from a recognized college or university.                  10,380       

      Sec. 3319.08.  The board of education of each city,          10,389       

exempted village, local, and joint vocational school district and  10,391       

the governing board of each educational service center shall                    

enter into written contracts for the employment and reemployment   10,393       

of all teachers.  The board of each such school district or        10,394       

service center that authorizes compensation in addition to the     10,395       

base salary stated in the teachers' salary schedule for the                     

performance of duties by a teacher that are in addition to the     10,396       

                                                          219    


                                                                 
teacher's regular teaching duties, shall enter into a              10,397       

supplemental written contract with each teacher who is to perform  10,398       

additional duties.  Such supplemental written contracts shall be   10,399       

limited contracts.  Such written contracts and supplemental        10,400       

written contracts shall set forth the teacher's duties and shall   10,401       

specify the salaries and compensation to be paid for regular       10,402       

teaching duties and additional teaching duties, respectively,      10,403       

either or both of which may be increased but not diminished        10,404       

during the term for which the contract is made, except as          10,405       

provided in section 3319.12 of the Revised Code.                   10,406       

      If a board adopts a motion or resolution to employ a         10,409       

teacher under a limited or continuing contract and the teacher     10,410       

accepts such employment, the failure of such parties to execute a  10,411       

written contract shall not void such employment contract.          10,412       

      Teachers must be paid for all time lost when the schools in  10,414       

which they are employed are closed due to an epidemic or other     10,415       

public calamity, and for time lost due to illness or otherwise     10,416       

for not less than five days annually as authorized by regulations  10,417       

which each board shall adopt.                                      10,418       

      Contracts for the employment of teachers shall be of two     10,420       

types, limited contracts and continuing contracts.                 10,421       

      (A)  A limited contract is:                                  10,423       

      (1)  For a superintendent, a contract for such term as       10,425       

authorized by section 3319.01 of the Revised Code;                 10,426       

      (2)  For an assistant superintendent, principal, assistant   10,428       

principal, or other administrator, a contract for such term as     10,429       

authorized by section 3319.02 of the Revised Code;                 10,430       

      (3)  For all other teachers, a contract for a term not to    10,432       

exceed five years.                                                 10,433       

      (B)  A continuing contract is a contract that remains in     10,435       

effect until the teacher resigns, elects to retire, or is retired  10,436       

pursuant to FORMER section 3307.37 of the Revised Code, or until   10,437       

it is terminated or suspended and shall be granted only to the     10,438       

following:                                                         10,439       

                                                          220    


                                                                 
      (1)  Any teacher holding a professional, permanent, or life  10,441       

teacher's certificate;                                             10,442       

      (2)  Any teacher holding a professional educator license     10,444       

who has completed the applicable one of the following:             10,445       

      (a)  If the teacher did not hold a masters degree at the     10,447       

time of initially receiving a teacher's certificate under former   10,448       

law or an educator license, thirty semester hours of coursework    10,449       

in the area of licensure or in an area related to the teaching     10,450       

field since the initial issuance of such certificate or license,   10,451       

as specified in rules which the state board of education shall     10,452       

adopt;                                                                          

      (b)  If the teacher held a masters degree at the time of     10,454       

initially receiving a teacher's certificate under former law or    10,455       

an educator license, six semester hours of graduate coursework in  10,456       

the area of licensure or in an area related to the teaching field  10,457       

since the initial issuance of such certificate or license, as      10,458       

specified in rules which the state board of education shall                     

adopt.                                                             10,459       

      This section applies only to contracts entered into after    10,461       

August 18, 1969.                                                                

      Sec. 5101.181.  (A)  As used in this section and section     10,470       

5101.182 of the Revised Code, "public assistance" includes, in     10,471       

addition to Ohio works first; prevention, retention, and           10,472       

contingency; medicaid; and disability assistance, general          10,474       

assistance provided prior to July 17, 1995, under former Chapter   10,476       

5113. of the Revised Code.                                         10,477       

      (B)  As part of the procedure for the determination of       10,480       

overpayment to a recipient of public assistance under Chapter      10,481       

5107., 5108., 5111., or 5115. of the Revised Code, the director    10,482       

of human services shall furnish quarterly the name and social      10,483       

security number of each individual who receives public assistance  10,484       

to the director of administrative services, the administrator of   10,485       

the bureau of workers' compensation, and each of the state's       10,486       

retirement boards.  Within fourteen days after receiving the name  10,487       

                                                          221    


                                                                 
and social security number of an individual who receives public    10,488       

assistance, the director of administrative services,               10,489       

administrator, or board shall inform the auditor of state as to    10,490       

whether such individual is receiving wages or benefits, the        10,491       

amount of any wages or benefits being received, the social         10,492       

security number, and the address of the individual.  The director  10,493       

of administrative services, administrator, boards, and any agent   10,494       

or employee of those officials and boards shall comply with the    10,495       

rules of the department of human services restricting the          10,496       

disclosure of information regarding recipients of public                        

assistance.  Any person who violates this provision shall          10,497       

thereafter be disqualified from acting as an agent or employee or  10,498       

in any other capacity under appointment or employment of any       10,499       

state board, commission, or agency.                                10,500       

      (C)  The auditor of state may enter into a reciprocal        10,502       

agreement with the director of human services or comparable        10,503       

officer of any other state for the exchange of names, current or   10,504       

most recent addresses, or social security numbers of persons       10,505       

receiving public assistance under Title IV-A or under Title XIX    10,508       

of the "Social Security Act," 49 Stat. 620 (1935), 42 U.S.C. 301,  10,509       

as amended.                                                                     

      (D)(1)  The auditor of state shall retain, for not less      10,511       

than two years, at least one copy of all information received      10,513       

under this section and sections 145.27, 742.41, 3307.21 3307.20,   10,514       

3309.22, 4123.27, 5101.182, and 5505.04 of the Revised Code.  The  10,516       

auditor shall review the information to determine whether                       

overpayments were made to recipients of public assistance under    10,518       

Chapters 5107., 5108., 5111., and 5115. of the Revised Code.  The  10,519       

auditor of state shall initiate action leading to prosecution,     10,520       

where warranted, of recipients who received overpayments by        10,521       

forwarding the name of each recipient who received overpayment,    10,522       

together with other pertinent information, to the director of      10,523       

human services and the attorney general, to the district director  10,524       

of human services of the district through which public assistance  10,525       

                                                          222    


                                                                 
was received, and to the county director of human services and     10,526       

county prosecutor of the county through which public assistance    10,527       

was received.                                                                   

      (2)  The auditor of state and the attorney general or their  10,529       

designees may examine any records, whether in computer or printed  10,530       

format, in the possession of the director of human services or     10,531       

any county director of human services.  They shall provide         10,532       

safeguards which restrict access to such records to purposes       10,533       

directly connected with an audit or investigation, prosecution,    10,534       

or criminal or civil proceeding conducted in connection with the   10,535       

administration of the programs and shall comply with the rules of  10,536       

the department of human services restricting the disclosure of     10,537       

information regarding recipients of public assistance.  Any        10,538       

person who violates this provision shall thereafter be             10,539       

disqualified from acting as an agent or employee or in any other   10,540       

capacity under appointment or employment of any state board,       10,541       

commission, or agency.                                             10,542       

      (3)  Costs incurred by the auditor of state in carrying out  10,544       

the auditor of state's duties under this division shall be borne   10,546       

by the auditor of state.                                           10,547       

      Sec. 5505.161.  On receipt of notice from the public         10,556       

employees retirement system, Ohio police and fire pension fund,    10,557       

state teachers retirement system, or school employees retirement   10,558       

system of the re-employment of a retirant, the state highway       10,559       

patrol retirement system shall not pay, or if paid shall recover,  10,560       

any amount to be forfeited by the retirant in accordance with      10,561       

section 145.38, 742.26, 3307.381 3307.35, or 3309.341 of the       10,562       

Revised Code.                                                                   

      Sec. 5505.202.  (A)  As used in this section:                10,571       

      (1)  "Full-time service" means full-time service as defined  10,573       

by rule which shall be adopted by the state highway patrol         10,574       

retirement board.                                                  10,575       

      (2)  "Qualified contributions" means contributions to the    10,577       

public employees retirement system, state teachers retirement      10,578       

                                                          223    


                                                                 
system, or school employees retirement system attributable to      10,579       

full-time service or purchase of credit for service in the armed   10,580       

forces of the United States.                                       10,581       

      (B)(1)  For purposes of computing the pension payable under  10,584       

section 5505.17 or 5505.18 of the Revised Code, a member of the    10,585       

state highway patrol retirement system who is a former member of   10,586       

the public employees retirement system, school employees           10,587       

retirement system, or state teachers retirement system and has     10,589       

received a return of contributions from the former retirement      10,591       

system shall be given full credit for service credit earned for    10,592       

full-time service as a member of the former retirement system or   10,593       

purchased for service in the armed forces of the United States     10,596       

if, for each year of service credit, the state highway patrol      10,597       

retirement system receives the sum of the following:               10,598       

      (a)  An amount, which shall be paid by the member to the     10,602       

member's credit in the employees savings fund, equal to the        10,604       

amount received by the member from the former retirement system    10,606       

for that year that is attributable to contributions made for       10,608       

full-time service and payments for credit purchased for service    10,609       

in the armed forces of the United States, plus interest on that    10,611       

amount from the date payment was made to the member by the former  10,613       

retirement system to the date the member makes the payment to the  10,615       

state highway patrol retirement system;                                         

      (b)  Interest, which shall be transferred by the former      10,618       

retirement system, on the amount received by the member that is    10,619       

attributable to the year of service from the last day of the year  10,620       

for which the service credit was earned or in which the military                

service credit was purchased or obtained to the date the amount    10,621       

was paid to the member;                                            10,622       

      (c)  An amount, which shall be transferred by the former     10,624       

retirement system, equal to the lesser of the employer's           10,625       

qualified contributions to the former retirement system for the    10,626       

year of service or the amount that would have been contributed by  10,628       

the employer for the year of service had the member been a member  10,629       

                                                          224    


                                                                 
of the state highway patrol retirement system, with interest on    10,630       

that amount from the last day of the year for which the service    10,632       

credit was earned or in which military service credit was          10,633       

purchased or obtained to the date the transfer is made.            10,634       

      On receipt of payment from the member, the state highway     10,637       

patrol retirement system shall notify the former retirement        10,638       

system, which, on receipt of the notice, shall make the transfer   10,639       

required by this division.  Interest shall be determined in        10,640       

accordance with division (E) of this section.                      10,641       

      (2)  For purposes of computing the pension payable under     10,643       

section 5505.17 or 5505.18 of the Revised Code, a member of the    10,646       

state highway patrol retirement system who has contributions on    10,648       

deposit with the public employees retirement system, school        10,649       

employees retirement system, or state teachers retirement system   10,650       

shall be given full credit for service credit earned for           10,651       

full-time service as a member of that retirement system or         10,652       

purchased for service in the armed forces of the United States     10,655       

if, for each year of service, the public employees retirement      10,657       

system, school employees retirement system, or state teachers      10,658       

retirement system transfers to the state highway patrol            10,659       

retirement system the sum of the following:                        10,660       

      (a)  An amount equal to the member's qualified               10,663       

contributions;                                                                  

      (b)  An amount equal to the lesser of the employer's         10,665       

qualified contributions to the public employees retirement         10,666       

system, school employees retirement system, or state teachers      10,667       

retirement system or the amount that would have been contributed   10,669       

by the employer for the full-time service had the member been a    10,670       

member of the state highway patrol retirement system;              10,671       

      (c)  Interest, determined in accordance with division (E)    10,674       

of this section, on the amounts specified in divisions (B)(2)(a)   10,675       

and (b) of this section from the last day of the year for which    10,678       

the service credit was earned or in which military service credit  10,679       

was purchased or obtained to the date the transfer is made.        10,680       

                                                          225    


                                                                 
      On receipt of a request from the member, the appropriate     10,683       

retirement system shall make the transfer.                                      

      (3)  For purposes of computing the pension payable under     10,685       

section 5505.17 or 5505.18 of the revised Code, a member of the    10,688       

state highway patrol retirement system who has contributions on    10,689       

deposit with the Cincinnati retirement system shall be given full  10,691       

credit for service credit earned for full-time service as a        10,692       

member of that retirement system or purchased from the retirement  10,693       

system for service in the armed forces of the United States if,    10,695       

for each year of service credit, the state highway patrol          10,696       

retirement system receives the sum of the following:               10,697       

      (a)  An amount, which shall be paid by the member to the     10,700       

member's credit in the employees savings fund, equal to the        10,701       

amount withdrawn from the Cincinnati retirement system that is     10,703       

attributable to that year of service, with interest on that                     

amount determined in accordance with division (I) of this section  10,705       

from the date of withdrawal to the date of payment;                10,706       

      (b)  Interest, which shall be paid either by the member or   10,709       

the Cincinnati retirement system, on the amount withdrawn from     10,710       

the Cincinnati retirement system that is attributable to the year  10,712       

of service from the last day of the year for which the service                  

credit was earned or in which the military service credit was      10,713       

purchased or obtained to the date the amount was withdrawn;        10,715       

      (c)  An amount, which shall be paid either by the member or  10,718       

the Cincinnati retirement system, equal to the lesser of the       10,720       

amount contributed by the employer to the Cincinnati retirement    10,721       

system for the year of service or the amount that would have been  10,723       

contributed by the employer for the year of service had the                     

member been a member of the state highway patrol retirement        10,724       

system, with interest on that amount from the last day of the      10,727       

year for which the service credit was earned or in which military  10,728       

service was purchased or obtained to the date the payment is       10,729       

made.                                                                           

      (C)  If a member who is not a current contributor and has    10,731       

                                                          226    


                                                                 
not received a refund of accumulated contributions elects to       10,734       

receive credit under section 145.295, 3307.412 3307.761, or        10,735       

3309.351 of the Revised Code for service for which the member      10,737       

contributed to the state highway patrol retirement system and      10,739       

credit purchased for service in the armed forces of the United     10,740       

States, the state highway patrol retirement system shall transfer  10,741       

to the appropriate retirement system the amount specified in       10,743       

division (A) of section 145.295, division (A) of section 3307.412  10,744       

3307.761, or division (A) of section 3309.351 of the Revised       10,746       

Code.                                                              10,747       

      (D)(1)  A member is ineligible to purchase or otherwise      10,749       

receive credit under this section for service that is used in the  10,750       

calculation of any retirement benefit currently being paid or      10,751       

that is payable in the future to the member, or service rendered   10,752       

concurrently with any other period for which service credit has    10,753       

already been granted.                                              10,754       

      (2)  Except as provided under division (D)(3) of this        10,756       

section, no service credit purchased under this section or         10,757       

received as a result of a transfer requested under this section    10,758       

shall be used to determine any member's eligibility for            10,759       

retirement under sections 5505.16 and 5505.17 of the Revised       10,760       

Code.                                                                           

      (3)  Service credit obtained under this section by a member  10,762       

for credit purchased for service in the armed forces of the        10,763       

United States or for service as a state highway patrol cadet       10,765       

attending training school pursuant to section 5503.05 of the       10,766       

Revised Code shall be used to determine the member's eligibility   10,768       

for retirement under sections 5505.16 and 5505.17 of the Revised   10,769       

Code.                                                                           

      (4)  Subject to rules of the state highway patrol            10,771       

retirement system, a member may choose to purchase only part of    10,772       

the credit the member is eligible to purchase under division       10,773       

(B)(1) or (3) of this section.                                     10,775       

      (E)  At the request of the state highway patrol retirement   10,777       

                                                          227    


                                                                 
system, the public employees retirement system, school employees   10,778       

retirement system, state teachers retirement system, or            10,779       

Cincinnati retirement system shall certify to the state highway    10,781       

patrol retirement system a copy of the records of service,         10,782       

salary, and contributions of a member who seeks service credit     10,783       

under this section.                                                             

      Interest charged under this section shall be calculated      10,786       

separately for each year of service credit at the lesser of the    10,787       

actuarial assumption rate for that year of the state highway       10,788       

patrol retirement system or of the retirement system in which the  10,789       

credit was earned.  The interest shall be compounded annually.     10,790       

      The state highway patrol retirement system board may adopt   10,792       

rules establishing procedures for the purchase of service credit   10,794       

or the transfer of contributions under this section.               10,795       

      Section 2.  That existing sections 145.28, 145.293,          10,797       

145.301, 145.311, 145.312, 145.35, 145.37, 145.38, 145.45,         10,798       

742.26, 742.379, 2329.66, 3305.01, 3305.06, 3307.01, 3307.013,     10,799       

3307.02, 3307.021, 3307.022, 3307.05, 3307.07, 3307.08, 3307.09,   10,800       

3307.10, 3307.11, 3307.111, 3307.14, 3307.15, 3307.19, 3307.20,    10,803       

3307.201, 3307.21, 3307.22, 3307.26, 3307.27, 3307.28, 3307.281,                

3307.282, 3307.283, 3307.29, 3307.30, 3307.31, 3307.311, 3307.32,  10,805       

3307.33, 3307.35, 3307.36, 3307.371, 3307.38, 3307.381, 3307.382,  10,806       

3307.383, 3307.384, 3307.39, 3307.40, 3307.401, 3307.402,          10,807       

3307.403, 3307.404, 3307.405, 3307.406, 3307.407, 3307.408,        10,808       

3307.409, 3307.4010, 3307.4011, 3307.4012, 3307.4013, 3307.41,     10,809       

3307.411, 3307.412, 3307.42, 3307.421, 3307.43, 3307.431,          10,810       

3307.44, 3307.46, 3307.47, 3307.48, 3307.49, 3307.50, 3307.51,     10,811       

3307.511, 3307.512, 3307.515, 3307.53, 3307.56, 3307.58, 3307.59,  10,812       

3307.60, 3307.61, 3307.62, 3307.63, 3307.64, 3307.65, 3307.651,    10,813       

3307.66, 3307.68, 3307.69, 3307.70, 3307.71, 3307.711, 3307.712,   10,814       

3307.72, 3307.73, 3307.74, 3307.741, 3307.75, 3307.751, 3307.78,   10,815       

3307.80, 3309.021, 3309.261, 3309.262, 3309.301, 3309.31,          10,816       

3309.341, 3309.35, 3309.39, 3309.45, 3313.975, 3317.011, 3317.13,  10,817       

3319.08, 5101.181, 5505.161, and 5505.202 and sections 3307.012,   10,818       

                                                          228    


                                                                 
3307.34, 3307.37, 3307.513, and 3307.514 of the Revised Code are   10,819       

hereby repealed.                                                                

      Section 3.  The State Teachers Retirement Board shall        10,821       

recalculate under section 3307.58, 3307.59, or 3307.631 of the     10,822       

Revised Code, as amended by this act, a benefit that is payable    10,823       

under those sections or section 3307.60 of the Revised Code and    10,824       

became effective on or after July 1, 1999, but before the          10,825       

effective date of this act.  If the recalculated benefit is        10,826       

greater than the recipient's benefit prior to the recalculation,   10,827       

the board shall do both of the following:                          10,828       

      (A)  Pay the recalculated benefit;                           10,830       

      (B)  Make a one-time payment to the recipient equal to the   10,832       

difference between the benefits paid to the recipient between      10,833       

July 1, 1999, and the date of the payment and the increased        10,834       

benefits that would have been paid to the recipient had the        10,835       

amendments to sections 3307.58, 3307.59, and 3307.631 of the       10,836       

Revised Code gone into effect on July 1, 1999.                     10,837       

      Section 4.  As used in this section, "eligible recipient"    10,839       

has the same meaning as in section 3307.6913 of the Revised Code.  10,840       

      The State Teachers Retirement Board shall make a one-time    10,842       

payment to each eligible recipient whose benefit is increased      10,843       

under section 3307.6913 or 3307.6914 of the Revised Code, as       10,844       

enacted by this act.  The payment shall equal the difference       10,845       

between the benefits paid to the recipient between July 1, 1999,   10,846       

and the date of the payment and the increased benefits that would  10,847       

have been paid to the recipient had those sections gone into       10,848       

effect on July 1, 1999.                                                         

      Section 5.  Section 3307.21 of the Revised Code is           10,850       

presented in this act as a composite of the section as amended by  10,851       

both Am. Sub. H.B. 627 and Am. Sub. H.B. 668 of the 121st General  10,852       

Assembly, with the new language of neither of the acts shown in    10,854       

capital letters.  This is in recognition of the principle stated   10,855       

in division (B) of section 1.52 of the Revised Code that such      10,856       

amendments are to be harmonized where not substantively            10,857       

                                                          229    


                                                                 
irreconcilable and constitutes a legislative finding that such is  10,858       

the resulting version in effect prior to the effective date of     10,859       

this act.