As Reported by the Senate Ways and Means Committee 1
123rd General Assembly 4
Regular Session Sub. S. B. No. 190 5
1999-2000 6
SENATORS BLESSING-CARNES-OELSLAGER-BRADY-HAGAN-FINGERHUT- 8
SHOEMAKER-KEARNS-MALLORY-McLIN-WHITE-HERINGTON-DiDONATO 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, 171.04, 14
742.26, 742.379, 2329.66, 3305.01, 3305.06, 15
3307.01, 3307.013, 3307.02, 3307.021, 3307.022,
3307.05, 3307.07, 3307.08, 3307.09, 3307.10, 16
3307.11, 3307.111, 3307.14, 3307.15, 3307.19, 17
3307.20, 3307.201, 3307.21, 3307.22, 3307.26, 18
3307.28, 3307.281, 3307.282, 3307.283, 3307.29,
3307.30, 3307.31, 3307.311, 3307.32, 3307.33, 20
3307.35, 3307.36, 3307.371, 3307.38, 3307.381, 21
3307.382, 3307.383, 3307.384, 3307.39, 3307.40,
3307.401, 3307.402, 3307.403, 3307.404, 3307.405, 22
3307.406, 3307.407, 3307.408, 3307.409, 23
3307.4010, 3307.4011, 3307.4012, 3307.4013, 24
3307.41, 3307.411, 3307.412, 3307.42, 3307.421,
3307.43, 3307.431, 3307.44, 3307.46, 3307.47, 25
3307.48, 3307.49, 3307.50, 3307.51, 3307.511, 26
3307.512, 3307.515, 3307.53, 3307.56, 3307.58, 27
3307.59, 3307.60, 3307.61, 3307.62, 3307.64,
3307.65, 3307.651, 3307.66, 3307.68, 3307.69, 28
3307.70, 3307.71, 3307.711, 3307.712, 3307.72, 29
3307.73, 3307.74, 3307.741, 3307.751, 3307.78,
3307.80, 3309.021, 3309.261, 3309.262, 3309.301, 30
3309.31, 3309.341, 3309.35, 3309.39, 3309.45, 31
3313.975, 3317.011, 3317.13, 3319.08, 5101.181, 32
5505.161, 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 145.391, 742.3721, 3307.031, 66
3307.121, 3307.214, 3307.25, 3307.251, 3307.252, 67
3307.461, 3307.661, 3307.6913, 3307.6914,
3307.81, 3307.811, 3307.812, 3307.83, 3307.84, 68
3307.86, 3307.87, 3307.88, 3307.881, 3307.882, 69
3307.89, 3309.3712, and 5505.177; 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 (STRS), to require STRS to 73
establish a defined contribution plan that
members can select as an alternative to its 75
existing defined benefit plan, to permit STRS and
Ohio's other state retirement systems to 76
establish excess benefit arrangements under the
Internal Revenue Code of 1986, to require the 79
Ohio Retirement Study Council to review
semiannually the investment programs of Ohio's 80
state retirement systems and to review at least 81
once every ten years each system's actuarial
valuations and investigations, and to maintain 83
the provisions of this act on and after July 1, 84
2000, by amending the versions of sections 85
3307.21 and 5101.181 of the Revised Code that 86
take effect on that date and by amending, for the 87
purpose of adopting a new section number as
4
indicated in parentheses, the version of section 88
3307.21 (3307.20) of the Revised Code that takes 89
effect on that date.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 91
Section 1. That sections 145.28, 145.293, 145.301, 93
145.311, 145.312, 145.35, 145.37, 145.38, 145.45, 171.04, 742.26, 94
742.379, 2329.66, 3305.01, 3305.06, 3307.01, 3307.013, 3307.02, 95
3307.021, 3307.022, 3307.05, 3307.07, 3307.08, 3307.09, 3307.10, 96
3307.11, 3307.111, 3307.14, 3307.15, 3307.19, 3307.20, 3307.201, 98
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, 100
3307.36, 3307.371, 3307.38, 3307.381, 3307.382, 3307.383, 101
3307.384, 3307.39, 3307.40, 3307.401, 3307.402, 3307.403, 102
3307.404, 3307.405, 3307.406, 3307.407, 3307.408, 3307.409, 103
3307.4010, 3307.4011, 3307.4012, 3307.4013, 3307.41, 3307.411, 104
3307.412, 3307.42, 3307.421, 3307.43, 3307.431, 3307.44, 3307.46, 105
3307.47, 3307.48, 3307.49, 3307.50, 3307.51, 3307.511, 3307.512, 106
3307.515, 3307.53, 3307.56, 3307.58, 3307.59, 3307.60, 3307.61, 107
3307.62, 3307.64, 3307.65, 3307.651, 3307.66, 3307.68, 3307.69, 108
3307.70, 3307.71, 3307.711, 3307.712, 3307.72, 3307.73, 3307.74, 109
3307.741, 3307.751, 3307.78, 3307.80, 3309.021, 3309.261, 110
3309.262, 3309.301, 3309.31, 3309.341, 3309.35, 3309.39, 3309.45, 111
3313.975, 3317.011, 3317.13, 3319.08, 5101.181, 5505.161, and 112
5505.202 be amended; that sections 3307.013 (3307.501), 3307.02 113
(3307.75), 3307.021 (3307.751), 3307.022 (3307.752), 3307.111 114
(3307.151), 3307.14 (3307.181), 3307.20 (3307.51), 3307.201 115
(3307.512), 3307.21 (3307.20), 3307.22 (3307.73), 3307.26 116
(3307.241), 3307.27 (3307.24), 3307.28 (3307.71), 3307.281 117
(3307.70), 3307.282 (3307.711), 3307.283 (3307.712), 3307.29 118
(3307.23), 3307.30 (3307.231), 3307.31 (3307.53), 3307.311 119
(3307.78), 3307.32 (3307.74), 3307.33 (3307.741), 3307.35 120
(3307.54), 3307.36 (3307.52), 3307.371 (3307.69), 3307.38 121
5
(3307.58), 3307.381 (3307.35), 3307.382 (3307.691), 3307.383 122
(3307.79), 3307.384 (3307.692), 3307.39 (3307.59), 3307.40 123
(3307.392), 3307.401 (3307.693), 3307.402 (3307.694), 3307.403 124
(3307.67), 3307.404 (3307.695), 3307.405 (3307.61), 3307.406 125
(3307.696), 3307.407 (3307.697), 3307.408 (3307.671), 3307.409 126
(3307.698), 3307.4010 (3307.699), 3307.4011 (3307.6910), 127
3307.4012 (3307.46), 3307.4013 (3307.6911), 3307.41 (3307.57), 128
3307.411 (3307.76), 3307.412 (3307.761), 3307.42 (3307.62), 129
3307.421 (3307.513), 3307.43 (3307.63), 3307.431 (3307.631), 130
3307.44 (3307.64), 3307.46 (3307.56), 3307.47 (3307.561), 3307.48 131
(3307.562), 3307.49 (3307.66), 3307.50 (3307.60), 3307.51 132
(3307.26), 3307.511 (3307.261), 3307.512 (3307.77), 3307.515 133
(3307.771), 3307.53 (3307.28), 3307.56 (3307.31), 3307.58 134
(3307.21), 3307.59 (3307.211), 3307.60 (3307.212), 3307.61 135
(3307.29), 3307.62 (3307.291), 3307.63 (3307.213), 3307.64 136
(3307.30), 3307.65 (3307.14), 3307.651 (3307.142), 3307.66 137
(3307.141), 3307.68 (3307.96), 3307.69 (3307.97), 3307.70 138
(3307.98), 3307.71 (3307.41), 3307.711 (3307.42), 3307.712 139
(3307.44), 3307.72 (3307.37), 3307.73 (3307.72), 3307.74 140
(3307.39), 3307.741 (3307.391), 3307.75 (3307.32), 3307.751 141
(3307.47), 3307.78 (3307.6912), and 3307.80 (3307.563) be 142
amended, for the purpose of adopting new section numbers as 143
indicated in parentheses; and that new sections 3307.27, 3307.33, 144
3307.50, 3307.511, and 3307.80 and sections 145.391, 742.3721, 146
3307.031, 3307.121, 3307.214, 3307.25, 3307.251, 3307.252, 147
3307.461, 3307.661, 3307.6913, 3307.6914, 3307.81, 3307.811, 149
3307.812, 3307.83, 3307.84, 3307.86, 3307.87, 3307.88, 3307.881, 150
3307.882, 3307.89, 3309.3712, and 5505.177 of the Revised Code be 153
enacted to read as follows: 154
Sec. 145.28. (A)(1) Except as provided in division (A)(2) 163
of this section, a member of the public employees retirement 164
system with at least eighteen months of contributing service in 165
the system, the state teachers retirement system, or the school 166
employees retirement system who exempted himself SELF from 167
6
membership in one or more of the systems pursuant to section 169
145.03 or 3309.23 of the Revised Code, or former section 3307.25 170
or 3309.25 of the Revised Code, or was exempt under section 171
3307.27 3307.24 of the Revised Code, may purchase credit for each 173
year or portion of a year of service for which he THE MEMBER was 174
exempted.
(2) A member may not purchase credit under this section 176
for exempted service if the service was exempted from 177
contribution under section 145.03 of the Revised Code and subject 178
to the tax on wages imposed by the "Federal Insurance 179
Contributions Act," 68A Stat. 415 (1954), 26 U.S.C.A. 3101, as 180
amended. 181
(B) For each year or portion of a year of credit purchased 183
under this section, a member shall pay to the retirement system 184
an amount determined by multiplying the member's earnable salary 185
for the twelve months of contributing service preceding the month 186
in which he THE MEMBER applies to purchase the credit by a 187
percentage rate established by rule of the public employees 189
retirement board adopted under division (F) of this section. 190
(C) Subject to board rules, a member may purchase all or 192
part of the credit he THE MEMBER is eligible to purchase under 193
this section in one or more payments. If the member purchases 195
the credit in more than one payment, compound interest at a rate 196
specified by rule of the board shall be charged on the balance 197
remaining after the first payment is made. 198
(D) Credit purchasable under this section shall not exceed 200
one year of service for any twelve-month period. If the period 201
of service for which credit is purchasable under this section is 202
concurrent with a period of service that will be used to 203
calculate a retirement benefit from this system, the state 204
teachers retirement system, or school employees retirement 205
system, the amount of the credit shall be adjusted in accordance 206
with rules adopted by the public employees retirement board. 207
A member who is also a member of the state teachers 209
7
retirement system or the school employees retirement system shall 210
purchase credit for any service for which he THE MEMBER exempted 211
himself SELF under section 145.03 or 3309.23 of the Revised Code, 213
or former section 3307.25 or 3309.25 of the Revised Code, or was 214
exempt under section 3307.27 3307.24 of the Revised Code, from 215
the retirement system in which he THE MEMBER has the greatest 217
number of years of service credit. If the member receives 219
benefits under section 145.37 of the Revised Code, the retirement 220
system that determines and pays the benefit shall receive from 221
the other system or systems the amounts paid by the member for 222
purchase of credit for exempt service plus interest at the 223
actuarial assumption rate of the system paying that amount. The 224
interest shall be for the period beginning on the date of the 225
member's last payment for purchase of the credit and ending on 226
the date of the member's retirement.
(E) If a member dies or withdraws from service, any 228
payment made by the member under this section shall be considered 229
as accumulated contributions of the member. 230
(F) The retirement board shall adopt rules to implement 232
this section. 233
Sec. 145.293. (A) Service credit purchased under this 242
section shall be included in the member's total service credit. 243
Credit may be purchased for the following: 244
(1) Service rendered in another state, and service in any 246
entity operated by the United States government, that, if served 247
in a comparable position in Ohio, would be covered by the public 248
employees retirement system, Ohio police and fire pension fund, 250
state teachers retirement system, school employees retirement 251
system, or state highway patrol retirement system; 252
(2) Service for which contributions were made by the 254
member or on the member's behalf to a municipal retirement system 256
in this state.
The number of years purchased under this section shall not 258
exceed the lesser of five years or the member's total accumulated 259
8
number of years of Ohio service. 260
(B) For each year of service purchased, a member shall pay 262
to the public employees retirement system for credit to the 263
member's accumulated account an amount equal to the member's 265
retirement contribution for full-time employment for the first 266
year of Ohio service following termination of the service to be 267
purchased. To this amount shall be added an amount equal to 268
compound interest at a rate established by the public employees 269
retirement board from the date of membership in the public 270
employees retirement system to date of payment. The member may 271
choose to purchase only part of such credit in any one payment, 272
subject to board rules. 273
(C) A member is ineligible to purchase under this section 275
service for which the member has obtained credit under section 277
145.44 of the Revised Code or service that is used in the 278
calculation of any retirement benefit currently being paid or 279
payable in the future to the member under any other retirement 280
program except social security. At the time the credit is 281
purchased the member shall certify on a form furnished by the 282
retirement board that the member does and will conform to this 283
requirement.
(D) Credit purchased under this section may be combined 285
pursuant to section 145.37 with credit purchased under sections 286
3307.32 3307.74 and 3309.31 of the Revised Code, except that not 288
more than an aggregate total of five years' service credit 289
purchased under this section and sections 3307.32 3307.74 and 290
3309.31 shall be used in determining retirement eligibility or 292
calculating benefits under section 145.37 of the Revised Code. 293
Sec. 145.301. (A) A member may purchase service credit 302
that shall be considered as the equivalent of Ohio service for 303
each year of service incurred by reason of having been on active 304
duty as a member of the armed forces of the United States, as 305
defined in section 145.30 of the Revised Code. The credit may be 306
purchased at any time prior to receipt of a retirement allowance. 307
9
The number of years purchased shall not exceed five. The member 309
may choose to purchase only part of such credit in any one 310
payment, subject to public employees retirement board rules. 311
(B) For the purposes of this division, "prisoner of war" 313
means any regularly appointed, enrolled, enlisted, or inducted 314
member of the armed forces of the United States who was captured, 315
separated, and incarcerated by an enemy of the United States. 316
A member may purchase service credit that shall be 318
considered as the equivalent of Ohio service for each year of 319
service such member was a prisoner of war. The number of years 320
purchased under this division shall not exceed five. Service 321
credit may be purchased under this division for the same years of 322
service used to purchase service credit under division (A) of 323
this section. The member may choose to purchase only part of 324
such credit in any one payment, subject to board rules. 325
(C) The total number of years purchased under this section 327
shall not exceed the member's total accumulated number of years 328
of Ohio service. 329
(D) For each year of service purchased under division (A) 331
or (B) of this section, the member shall pay to the public 332
employees retirement system for credit to the member's 333
accumulated account an amount specified by the retirement board 335
that shall be not less than fifty per cent of the additional 336
liability resulting from the purchase of that year of service as 337
determined by an actuary employed by the board. 338
(E) A member is ineligible to purchase service credit 340
under this section for any year of military service that was: 341
(1) Used in the calculation of any retirement benefit 344
currently being paid to the member or payable in the future under 345
any other retirement program, except social security, or for 346
retired pay for nonregular service under Chapter 1223 of Section 347
1662 of Title XVI of the "National Defense Authorization Act for 349
Fiscal Year 1995," 108 Stat. 2998 (1994), 10 U.S.C.A. 12731 to 350
12739;
10
(2) Used to obtain service credit pursuant to section 351
145.30 or 145.302 of the Revised Code. 352
At the time the credit is purchased, the member shall 355
certify on a form furnished by the retirement board that the 356
member does and will conform to this requirement. 357
(F) A member who, on the effective date of this amendment 361
MARCH 17, 2000, is purchasing service credit under this section 362
by making installment payments to the system or by a payroll 363
deduction plan authorized under section 145.294 of the Revised 364
Code may elect, on a form provided by the board, to have a 365
portion of the cost of the service credit recalculated under 366
division (D) of this section as amended by House Bill 186 of the 368
123rd general assembly. The recalculation shall apply only to 369
the amount still owed by the member as of the date the election 370
is filed with the board. 371
For each member who makes an election, the board shall do 373
all of the following: 374
(1) Determine the amount of the total cost of the service 376
credit still owed by the member as of the date the election is 377
filed with the board and the number of years or portion of a year 378
of service credit attributable to that amount; 379
(2) Recalculate under division (D) of this section the 381
cost of the service credit described in division (F)(1) of this 382
section;
(3) Notify the member of the recalculated amount. 384
If the recalculated amount is less than the amount still 386
owed by the member as of the date the election is filed, the 387
recalculated amount shall be the amount owed by the member. 388
(G) Credit purchased under this section may be combined 390
pursuant to section 145.37 with credit for military service 391
purchased under sections 3307.021 3307.751 and 3309.021, except 393
that not more than an aggregate total of five years of credit 394
purchased under division (A) of this section, division (A) of 395
section 3307.021 3307.751, and division (A) of section 3309.021, 396
11
and not more than an aggregate total of five years of credit 398
purchased under division (B) of this section, division (B) of 399
section 3307.021 3307.751, and division (B) of section 3309.021 401
shall be used in determining retirement eligibility or 402
calculating benefits under section 145.37 of the Revised Code. 403
Sec. 145.311. (A) A member of the public employees 412
retirement system who has at least eighteen months of 413
contributing service credit in the system, the OHIO police and 414
firemen's disability and FIRE pension fund, school employees 416
retirement system, state teachers retirement system, or state 417
highway patrol retirement system, and is a former member of or no 418
longer contributing to the school employees retirement system or 419
state teachers retirement system may restore service credit under 420
section 3307.28 3307.71 or 3309.26 of the Revised Code by making 422
payments pursuant to this section through a payroll deduction 423
plan established under section 145.294 of the Revised Code, a. A 424
member seeking to restore this service credit shall notify the 426
public employees retirement system on a form approved by the 427
public employees retirement board. After receiving the notice, 428
the public employees retirement system shall request that the 429
former retirement system calculate under section 3307.283
3307.712 or 3309.262 of the Revised Code the cost to the member 431
to restore service credit for each year or portion of a year of 433
service for which the member seeks to restore the service credit. 434
The amount the former retirement system certifies as the cost of 435
restoring the service credit, plus interest described in division 436
(B) of this section, is the cost to the member of restoring the 437
service credit. On receiving the certification from the former 438
retirement system, the public employees retirement system shall 439
notify the member of the cost. 440
(B) For each year or portion of a year of service credit 442
restored under section 3307.28 3307.71 or 3309.26 of the Revised 444
Code, a member shall pay to the public employees retirement 445
system the amount certified by the former retirement system plus 446
12
interest at a rate specified by the former retirement system 447
under section 3307.283 3307.712 or 3309.262 of the Revised Code 449
for the period during which deductions are made under section 450
145.294 of the Revised Code. 451
(C) The public employees retirement board shall annually 454
notify the former retirement system that a payment to restore 455
service credit under section 3307.28 3307.71 or 3309.26 of the 457
Revised Code has been made. At the time the payment is 458
transferred under division (D) of this section, the former 459
retirement system shall restore the service credit for the year 460
or portion of a year for which the payment was made. 462
(D) On application for a payment of accumulated 464
contributions or an age and service retirement, disability, or 466
survivor benefit under Chapter 145., 3307., or 3309. of the 467
Revised Code by a member who made payments under this section to 469
restore service credit in a former retirement system, the public 470
employees retirement system shall pay to the former retirement 471
system an amount equal to the total amount paid by the member 473
under this section.
(E) The board shall adopt rules to implement this section. 475
Sec. 145.312. After receiving a request from the state 485
teachers retirement system under division (A) of section 3307.282 486
3307.711 or the school employees retirement system under division 488
(A) of section 3309.261 of the Revised Code, the public employees 491
retirement system shall do both of the following: 492
(A) Calculate and certify to the requesting retirement 495
system the cost to a former member to restore service credit 496
under section 145.31 of the Revised Code for each year or portion 497
of a year for which the former member seeks to restore service 499
credit under that section.
(B) Inform the requesting retirement system of the rate of 501
interest charged to a member under a payroll deduction plan 502
authorized under section 145.294 of the Revised Code. 503
Sec. 145.35. (A) As used in this section, "on-duty 512
13
illness or injury" means an illness or injury that occurred 513
during or resulted from performance of duties under the direct 514
supervision of a member's appointing authority. 515
(B) The public employees retirement system shall provide 517
disability coverage to each member who has at least five years of 518
total service credit and disability coverage for on-duty illness 519
or injury to each member who is a law enforcement officer, 520
regardless of length of service. 521
Not later than October 16, 1992, the public employees 523
retirement board shall give each person who is a member on July 524
29, 1992, the opportunity to elect disability coverage either 526
under section 145.36 of the Revised Code or under section 145.361 527
of the Revised Code. The board shall mail notice of the 528
election, accompanied by an explanation of the coverage under 529
each of the Revised Code sections and a form on which the 530
election is to be made, to each member at the member's last known 532
address. The board shall also provide the explanation and form 533
to any member on request.
Regardless of whether the member actually receives notice 535
of the right to make an election, a member who fails to file a 536
valid election under this section shall be considered to have 537
elected disability coverage under section 145.36 of the Revised 538
Code. To be valid, an election must be made on the form provided 539
by the retirement board, signed by the member, and filed with the 540
board not later than one hundred eighty days after the date the 541
notice was mailed, or, in the case of a form provided at the 542
request of a member, a date specified by rule of the retirement 543
board. Once made, an election is irrevocable, but if the member 544
ceases to be a member of the retirement system, the election is 545
void. If a person who makes an election under this section also 546
makes an election under section 3307.42 3307.62 or 3309.39 of the 548
Revised Code, the election made for the system that pays a 549
disability benefit to that person shall govern the benefit. 550
Disability coverage shall be provided under section 145.361 552
14
of the Revised Code for persons who become members after July 29, 554
1992, and for members who elect under this division to be covered 555
under section 145.361 of the Revised Code. 556
The retirement board may adopt rules governing elections 558
made under this division. 559
(C) Application for a disability benefit may be made by a 561
member, by a person acting in the member's behalf, or by the 562
member's employer, provided the member has disability coverage 564
under section 145.36 or 145.361 of the Revised Code and is not 565
receiving a disability benefit under any other Ohio state or 566
municipal retirement program. Application must be made within 567
two years from the date the member's contributing service 568
terminated, unless the retirement board determines that the 569
member's medical records demonstrate conclusively that at the 570
time the two-year period expired, the member was physically or 571
mentally incapacitated for duty and unable to make an 572
application. Application may not be made by or for any person 573
receiving age and service retirement benefits under section 574
145.33, 145.331, 145.34, or 145.37 of the Revised Code or any 575
person who, pursuant to section 145.40 of the Revised Code, has 576
been paid the accumulated contributions standing to the credit of 577
the person's individual account in the employees' savings fund. 579
The application shall be made on a form provided by the
retirement board. 580
(D) The benefit payable to any member who is approved for 582
a disability benefit shall become effective on the first day of 583
the month immediately following the later of the following: 584
(1) The last day for which compensation was paid; 586
(2) The attainment of eligibility for a disability 588
benefit. 589
(E) Medical examination of a member who has applied for a 592
disability benefit shall be conducted by a competent
disinterested physician or physicians selected by the board to 593
determine whether the member is mentally or physically 594
15
incapacitated for the performance of duty by a disabling 595
condition either permanent or presumed to be permanent. The 597
disability must have occurred since last becoming a member or
have increased since last becoming a member to such extent as to 598
make the disability permanent or presumed to be permanent. A 599
disability is presumed to be permanent if it is expected to last 600
for a continuous period of not less than twelve months following 601
the filing of the application. 602
If the physician or physicians determine that the member 604
qualifies for a disability benefit, the board concurs with the 606
determination, and the member agrees to medical treatment as 607
specified in division (F) of this section, the member shall 608
receive a disability benefit under section 145.36 or 145.361 of 609
the Revised Code. The action of the board shall be final. 610
(F) The public employees retirement board shall adopt 612
rules requiring a disability benefit recipient, as a condition of 614
continuing to receive a disability benefit, to agree in writing 615
to obtain any medical treatment recommended by the board's 616
physician and submit medical reports regarding the treatment. If 618
the board determines that a disability benefit recipient is not
obtaining the medical treatment or the board does not receive a 619
required medical report, the disability benefit shall be 621
suspended until the treatment is obtained, the report is received 622
by the board, or the board's physician certifies that the 623
treatment is no longer helpful or advisable. Should the 624
recipient's failure to obtain treatment or submit a medical 625
report continue for one year, the recipient's right to the 627
disability benefit shall be terminated as of the effective date 628
of the original suspension.
(G) In the event an employer files an application for a 630
disability benefit as a result of a member having been separated 631
from service because the member is considered to be mentally or 633
physically incapacitated for the performance of the member's 634
present duty, and the physician or physicians selected by the 635
16
board reports to the board that the member is physically and 636
mentally capable of performing service similar to that from which 637
the member was separated and the board concurs in the report, the 639
board shall so certify to the employer and the employer shall 640
restore the member to the member's previous position and salary 642
or to a similar position and salary.
Sec. 145.37. (A) As used in this section: 651
(1) "State retirement system" means the public employees 653
retirement system, school employees retirement system, or state 654
teachers retirement system. 655
(2) "Total service credit" means all service credit earned 657
in the state retirement systems, except credit for service 658
subject to section 145.38 of the Revised Code. Total service 659
credit shall not exceed one year of credit for any twelve-month 660
period. 661
(3) In addition to the meaning given in division (N) of 663
section 145.01 of the Revised Code, "disability benefit" means 664
"disability benefit" as defined in sections 3307.01 and 3309.01 665
of the Revised Code. 666
(B) To coordinate and integrate membership in the state 668
retirement systems, the following provisions apply: 669
(1) At the option of a member, total contributions and 671
service credit in all state retirement systems, including amounts 672
paid to restore service credit under sections 145.311, 3307.282 673
3307.711, and 3309.261 of the Revised Code, shall be used in 675
determining the eligibility and total retirement or disability 676
benefit payable. When total contributions and service credit are 677
so combined, the following provisions apply: 678
(a) Age and service retirement or disability benefits are 680
effective on the first day of the month immediately following the 681
later of: 682
(i) The last day for which compensation was paid; 684
(ii) The attainment of minimum age or service credit 686
eligibility for benefits provided under this section. 687
17
(b) In determining eligibility for a disability benefit, 689
the medical examiner's report to the retirement board of any 690
state retirement system, showing that the member's disability 691
incapacitates the member for the performance of duty, may be 692
accepted by the state retirement boards as sufficient for 694
granting a disability benefit. 695
(c) The state retirement system in which the member had 697
the greatest service credit, without adjustment, shall determine 698
and pay the total retirement or disability benefit. Where the 699
member's credit is equal in two or more state retirement systems, 701
the system having the largest total contributions of the member 702
shall determine and pay the total benefit. 703
(d) In determining the total credit to be used in 705
calculating a retirement or disability benefit, credit shall not 706
be reduced below that certified by the system or systems 707
transferring credit, except that such total combined service 708
credit shall not exceed one year of credit for any one "year" as 709
defined in the law of the system making the calculation. 710
(e) The state retirement system determining and paying a 712
retirement or disability benefit shall receive from the other 713
system or systems the member's refundable account at retirement 714
or the effective date of a disability benefit plus an equal 715
amount from the employer's accumulation fund. 716
(i) The annuity rates and mortality tables of the state 718
retirement system making the calculation and paying the benefit 719
shall be exclusively applicable. 720
(ii) Deposits made for the purpose of an additional 722
annuity, and including guaranteed interest, upon the request of 723
the member, shall be transferred to the state retirement system 724
paying the benefit. The return upon such deposits shall be that 725
offered by the state retirement system making the calculation and 726
paying the benefit. 727
(2) A former member receiving a retirement or disability 729
benefit under this section, who accepts employment amenable to 730
18
coverage in any state retirement system that participated in the 731
former member's combined benefit, shall be subject to the 733
applicable provisions of law governing such re-employment. If 734
the former member is subject to section 3307.381 3307.35 of the 735
Revised Code and exceeds the limits on re-employment established 737
by that section, the state retirement system paying a combined 738
benefit shall terminate the entire pension portion of the benefit 739
for the period of re-employment that exceeds the limit in that 740
section. If a former member should be paid any amount in a 741
retirement benefit, to which the former member is not entitled 742
under the applicable provisions of law governing such 744
re-employment, such amount shall be recovered by the state 745
retirement system paying such benefit by utilizing any recovery 746
procedure available under the code provisions of the state 747
retirement system covering such re-employment.
(C) A PERS retirant or other system retirant, as defined 749
in section 145.38 of the Revised Code, is not eligible to receive 750
any benefit under this section for service subject to section 751
145.38 of the Revised Code. 752
Sec. 145.38. (A) As used in this section: 761
(1) "PERS retirant" means a former member of the public 763
employees retirement system who is receiving either of the 764
following:
(a) Age and service retirement benefits under section 766
145.32, 145.33, 145.331, 145.34, or 145.46 of the Revised Code; 767
(b) Age and service retirement benefits paid by the public 769
employees retirement system under section 145.37 of the Revised 770
Code. 771
(2) "Other system retirant" means both of the following: 773
(a) A member or former member of the Ohio police and 775
firemen's fire pension fund, state teachers retirement system, 776
school employees retirement system, state highway patrol 777
retirement system, or Cincinnati retirement system who is 778
receiving age and service or commuted age and service retirement 779
19
benefits or a disability benefit from a system of which the 780
person is a member or former member; 781
(b) A member or former member of the public employees 783
retirement system who is receiving age and service retirement 784
benefits or a disability benefit under section 145.37 of the 785
Revised Code paid by the school employees retirement system or 786
the state teachers retirement system. 787
(B)(1) Subject to this section, a PERS retirant or other 789
system retirant may be employed by a public employer. If so 790
employed, the PERS retirant or other system retirant shall 791
contribute to the public employees retirement system in 792
accordance with section 145.47 of the Revised Code, and the 793
employer shall make contributions in accordance with section 794
145.48 of the Revised Code. 795
(2) A public employer that employs a PERS retirant or 797
other system retirant, or enters into a contract for services as 798
an independent contractor with a PERS retirant who was employed 799
by the public employer at the time of the retirant's retirement 801
shall notify the retirement board of the employment or contract
not later than the end of the month in which the employment or 802
contract commences. Any overpayment of benefits to a PERS 803
retirant by the retirement system resulting from delay or failure 804
of the employer to give the notice shall be repaid to the 805
retirement system by the employer. 806
(3) On receipt of notice from a public employer that a 808
person who is an other system retirant has been employed, the 809
retirement system shall notify the retirement system of which the 810
other system retirant was a member of such employment. 811
(4)(a) A PERS retirant who has received a retirement 813
allowance for less than six months when employment subject to 814
this section commences shall forfeit the retirement allowance for 815
the period that begins on the date the employment commences and 816
ends on the date that is six months after the date on which the 817
retirement allowance commenced. Service and contributions for 818
20
that period shall not be included in calculation of any benefits 819
payable to the PERS retirant and those contributions shall be 820
refunded on the retirant's death or termination of the 821
employment. For purposes of this division, "employment" shall 822
include service for which the retirant or the retirant's 823
employer, or both, have waived any earnable salary for such 824
service.
(b) An other system retirant who has received a retirement 826
allowance or disability benefit for less than two months when 828
employment subject to this section commences shall forfeit the 829
retirement allowance or disability benefit for the period that 830
begins on the date the employment commences and ends on the date 831
that is two months after the date on which the retirement 832
allowance or disability benefit commenced. Service and 833
contributions for that period shall not be included in the
calculation of any benefits payable to the other system retirant 834
and those contributions shall be refunded on the retirant's death 836
or termination of the employment.
(5) On receipt of notice from the Ohio police and fire 839
pension fund, school employees retirement system, or state 841
teachers retirement system of the re-employment of a PERS 842
retirant, the public employees retirement system shall not pay,
or if paid, shall recover, the amount to be forfeited by the PERS 843
retirant in accordance with section 742.26, 3307.381 3307.35, or 845
3309.341 of the Revised Code. 846
(6) A PERS retirant who enters into a contract to provide 848
services as an independent contractor to the employer by which 849
the retirant was employed at the time of retirement or, less than 851
two months after the retirement allowance commences, begins
providing services as an independent contractor pursuant to a 852
contract with another public employer, shall forfeit the pension 853
portion of the retirement benefit for the period beginning the 854
first day of the month following the month in which the services 855
begin and ending on the first day of the month following the 856
21
month in which the services end. The annuity portion of the 857
retirement allowance shall be suspended on the day services under 858
the contract begin and shall accumulate to the credit of the 859
retirant to be paid in a single payment after services provided 860
under the contract terminate. A PERS retirant subject to 861
division (B)(6) of this section shall not contribute to the 862
retirement system and shall not become a member of the system. 863
(C)(1) Except as provided in division (C)(4) of this 865
section, a PERS retirant employed pursuant to this section shall 867
elect one of the following:
(a) To receive both compensation for the employment and a 870
retirement allowance;
(b) To receive compensation for the employment and forfeit 873
the pension portion of the retirement allowance.
(2) A PERS retirant who is described in division (C)(4) of 876
this section or elects to forfeit the pension portion of the 877
retirement allowance under division (C)(1)(b) of this section 878
shall become a new member of the public employees retirement 879
system with all the rights, privileges, and obligations of 880
membership, except that the new membership does not include 881
survivor benefits provided pursuant to section 145.45 of the 882
Revised Code. The pension portion of the PERS retirant's
retirement allowance shall cease on the first day of the first 883
month following commencement of the employment and shall 884
thereafter be forfeited until the first day of the first month 885
following termination of the employment. The annuity portion of 886
the retirement allowance shall be suspended on the first day of 887
the first month following commencement of the employment and 888
shall thereafter accumulate to the credit of the PERS retirant to 889
be paid in a single payment after termination of the employment. 890
The retirement allowance shall resume on the first day of the 891
first month following termination of the employment. On 892
termination of the employment, the PERS retirant shall elect to 893
receive either a refund of the retirant's contributions to the 895
22
retirement system during the period of employment subject to this 896
section or a supplemental retirement allowance based on the 897
retirant's contributions and service credit for that period of 898
employment.
(3) Except as provided in division (B)(4) of this section, 900
there shall be no suspension or forfeiture of any portion of the 901
retirement allowance payable to other system retirants or to PERS 902
retirants who make an election under division (C)(1)(a) of this 903
section. 904
(4) A PERS retirant shall elect division (C)(1)(b) of this 907
section if both of the following apply:
(a) The retirant held elective office in this state, or in 909
any municipal corporation, county, or other subdivision of this 910
state at the time of retirement under Chapter 145. of the Revised 911
Code;
(b) The retirant was elected or appointed to the same 913
office for the remainder of the term or the term immediately 914
following the term during which the retirement occurred. 915
(D)(1) On termination of employment under this section, 917
the PERS retirant who makes an election under division (C)(1)(a) 918
of this section or other system retirant may file an application 919
with the public employees retirement system for a benefit under 920
this division, which shall consist of a single life annuity 921
having a reserve equal to the amount of the retirant's 922
accumulated contributions for the period of employment and an 923
equal amount of the employer's contributions. The PERS retirant 924
or other system retirant shall elect either to receive the 925
benefit as a monthly annuity for life or a lump-sum payment 926
discounted to the present value using the current actuarial 927
assumption rate of interest, except that if the monthly annuity 928
would be less than twenty-five dollars per month, the retirant 929
shall receive a lump-sum payment. 930
(2) A benefit payable under this division shall commence 932
on the latest of the following: 933
23
(a) The last day for which compensation for employment 935
subject to this section was paid; 936
(b) Attainment by the PERS retirant or other system 938
retirant of age sixty-five; 939
(c) If the PERS retirant or other system retirant was 941
previously employed under this section and is receiving or 942
previously received a benefit under this division, completion of 943
a period of twelve months since the effective date of the last 944
benefit under this division. 945
(3)(a) If a PERS retirant or other system retirant dies 947
while employed in employment subject to this section, a lump-sum 948
payment calculated in accordance with division (D)(1) of this 949
section shall be paid to the retirant's beneficiary under 950
division (G) of this section. 951
(b) If at the time of death a PERS retirant or other 953
system retirant receiving a monthly annuity has received less 954
than the retirant would have received as a lump-sum payment, the 956
difference between the amount received and the amount that would 957
have been received as a lump-sum payment shall be paid to the 958
retirant's beneficiary under division (G) of this section. 959
(4)(a) A PERS retirant or other system retirant subject to 961
this division is not a member of the public employees retirement 962
system, does not have any of the rights, privileges, or 963
obligations of membership, except as specified in this section, 964
and, except as specified in division (D)(4)(b) of this section, 965
is not eligible to receive health, medical, hospital, or surgical 966
benefits under section 145.58 of the Revised Code for employment 967
subject to this section. No amount received under this division 968
shall be included in determining an additional benefit under 969
section 145.323 of the Revised Code or any other post-retirement 970
benefit increase. 971
(b) A PERS retirant who makes an election under division 973
(C)(1)(a) of this section shall receive primary health, medical, 974
hospital, or surgical insurance coverage from the retirant's 975
24
employer, if the employer provides coverage to other employees 976
performing comparable work. Neither the employer nor the PERS 977
retirant may waive the employer's coverage, except that the PERS 978
retirant may waive the employer's coverage if the retirant has 979
coverage comparable to that provided by the employer from a 980
source other than the employer or the public employees retirement 981
system. If a claim is made, the employer's coverage shall be the 982
primary coverage and shall pay first. The benefits provided 983
under section 145.58 of the Revised Code shall pay only those 984
medical expenses not paid through the employer's coverage or 985
coverage the PERS retirant receives through a source other than 986
the retirement system. 987
(E) If the disability benefit of an other system retirant 989
employed under this section is terminated, the retirant shall 990
become a member of the public employees retirement system, 991
effective on the first day of the month next following the 992
termination with all the rights, privileges, and obligations of 993
membership. If such person, after the termination of the 994
disability benefit, earns two years of service credit under this 995
system or under the Ohio police and fire pension fund, state 997
teachers retirement system, school employees retirement system, 998
or state highway patrol retirement system, the person's prior 999
contributions as an other system retirant under this section 1,000
shall be included in the person's total service credit as a 1,001
public employees retirement system member, and the person shall 1,002
forfeit all rights and benefits of this section. Not more than 1,003
one year of credit may be given for any period of twelve months. 1,004
(F) A PERS retirant who performs services for a public 1,006
employer as an independent contractor pursuant to a contract with 1,007
the employer shall not make contributions to the public employees 1,008
retirement system or become a member of the system. Except as 1,009
provided in division (B)(6) of this section, there shall be no 1,010
suspension or forfeiture of the retirant's retirement allowance. 1,011
(G) A PERS retirant or other system retirant employed 1,013
25
under this section may designate one or more persons as 1,014
beneficiary to receive any benefits payable under this section 1,015
due to death. The designation shall be in writing duly executed 1,017
on a form provided by the public employees retirement board, 1,018
signed by the PERS retirant or other system retirant, and filed 1,019
with the board prior to death. The last designation of a 1,020
beneficiary revokes all previous designations. The PERS
retirant's or other system retirant's marriage, divorce, marriage 1,021
dissolution, legal separation, withdrawal of account, birth of a 1,023
child, or adoption of a child revokes all previous designations. 1,024
If there is no designated beneficiary, the beneficiary is the 1,025
beneficiary determined under division (D) of section 145.43 of 1,026
the Revised Code. If any benefit payable under this section due 1,027
to the death of a PERS retirant or other system retirant is not 1,028
claimed by a beneficiary within five years after the death, the 1,029
amount payable shall be transferred to the income fund and 1,030
thereafter paid to the beneficiary or the estate of the PERS 1,031
retirant or other system retirant on application to the board.
(H) This section does not affect the receipt of benefits 1,033
by or eligibility for benefits of any person who on August 20, 1,034
1976, was receiving a disability benefit or service retirement 1,035
pension or allowance from a state or municipal retirement system 1,036
in Ohio and was a member of any other state or municipal 1,037
retirement system of this state. 1,038
(I) The public employees retirement board may adopt rules 1,040
to carry out this section. 1,041
Sec. 145.391. THE PUBLIC EMPLOYEES RETIREMENT BOARD MAY 1,043
ESTABLISH AND MAINTAIN A QUALIFIED GOVERNMENTAL EXCESS BENEFIT 1,044
ARRANGEMENT THAT MEETS THE REQUIREMENTS OF DIVISION (m) OF 1,045
SECTION 415 OF THE "INTERNAL REVENUE CODE OF 1986," 100 STAT. 1,047
2085, 26 U.S.C.A. 415, AS AMENDED, AND ANY REGULATIONS ADOPTED 1,049
THEREUNDER. IF ESTABLISHED, THE ARRANGEMENT SHALL BE A SEPARATE 1,050
PORTION OF THE PUBLIC EMPLOYEES RETIREMENT SYSTEM AND BE 1,051
MAINTAINED SOLELY FOR THE PURPOSE OF PROVIDING TO RETIRED MEMBERS 1,052
26
THAT PART OF A BENEFIT OTHERWISE PAYABLE UNDER SECTIONS 145.01 TO 1,053
145.59 OF THE REVISED CODE THAT EXCEEDS THE LIMITS ESTABLISHED BY 1,055
SECTION 415 OF THE "INTERNAL REVENUE CODE OF 1986," AS AMENDED. 1,056
MEMBERS PARTICIPATING IN AN ARRANGEMENT ESTABLISHED UNDER 1,058
THIS SECTION SHALL NOT BE PERMITTED TO ELECT TO DEFER 1,059
COMPENSATION TO THE ARRANGEMENT. CONTRIBUTIONS TO AND BENEFITS 1,060
PAID UNDER AN ARRANGEMENT SHALL NOT BE PAYABLE FROM A TRUST THAT 1,061
IS PART OF THE SYSTEM UNLESS THE TRUST IS MAINTAINED SOLELY FOR 1,062
THE PURPOSE OF PROVIDING SUCH BENEFITS. 1,063
THE BOARD SHALL ADOPT RULES TO ADMINISTER AN ARRANGEMENT 1,065
ESTABLISHED UNDER THIS SECTION. 1,066
Sec. 145.45. Except as provided in division (C)(1) of this 1,076
section, in lieu of accepting the payment of the accumulated 1,077
account of a member who dies before service retirement, a 1,078
beneficiary, as determined in this section or section 145.43 of 1,079
the Revised Code, may elect to forfeit the accumulated 1,080
contributions and to substitute certain other benefits under 1,081
division (A) or (B) of this section.
(A) If a deceased member was eligible for a service 1,083
retirement benefit as provided in section 145.33, 145.331, or 1,084
145.34 of the Revised Code, a surviving spouse or other sole 1,085
dependent beneficiary may elect to receive a monthly benefit 1,087
computed as the joint-survivor benefit designated as "plan D" in 1,088
section 145.46 of the Revised Code, which the member would have 1,089
received had the member retired on the last day of the month of 1,090
death and had the member at that time selected such 1,092
joint-survivor plan. Payment shall begin with the month 1,094
subsequent to the member's death, except that a surviving spouse 1,095
who is less than sixty-five years old may defer receipt of such 1,096
benefit. Upon receipt, the benefit shall be calculated based 1,097
upon the spouse's age at the time of first payment, and shall 1,098
accrue regular interest during the time of deferral. 1,099
(B) If a deceased member had at least one and one-half 1,101
years of contributing service credit, with at least one-quarter 1,102
27
year of contributing service credit within the two and one-half 1,103
years prior to the date of death, or was receiving at the time of 1,104
death a disability benefit as provided in section 145.36, 1,105
145.361, or 145.37 of the Revised Code, certain qualified 1,106
survivors may elect to receive monthly benefits as provided in 1,109
divisions (B)(1) and (5) of this section.
(1) Number 1,111
of Qualified Or 1,112
survivors Annual Benefit as a Per Monthly Benefit 1,113
affecting Cent of Decedent's Final shall not be 1,114
the benefit Average Salary less than 1,115
1 25% $ 96 1,116
2 40 186 1,117
3 50 236 1,118
4 55 236 1,119
5 or more 60 236 1,120
(2) Benefits shall begin as qualified survivors meet 1,123
eligibility requirements as follows: 1,124
(a) A qualified spouse is the surviving spouse of the 1,126
deceased member, who is age sixty-two, or age fifty if the 1,129
deceased member had ten or more years of Ohio service credit, or 1,130
regardless of age if caring for a qualified child, or regardless 1,131
of age if adjudged physically or mentally incompetent. A spouse 1,133
of a member who died prior to August 27, 1970, whose eligibility 1,134
was determined at the member's death, and who is physically or 1,135
mentally incompetent on or after August 20, 1976, shall be paid 1,136
the monthly benefit which that person would otherwise receive 1,137
when qualified by age.
(b) A qualified child is any unmarried child of the 1,141
deceased member under age eighteen, or under age twenty-two if 1,142
the child is attending an institution of learning or training 1,143
pursuant to a program designed to complete in each school year 1,144
the equivalent of at least two-thirds of the full-time curriculum 1,145
requirements of such institution and as further determined by 1,146
28
board policy, or regardless of age if adjudged physically or 1,147
mentally incompetent at the time of the member's death. 1,148
(c) A qualified parent is a dependent parent aged 1,150
sixty-five or older or regardless of age if physically or 1,152
mentally incompetent, a dependent parent whose eligibility was 1,153
determined by the member's death prior to August 20, 1976, and 1,154
who is physically or mentally incompetent on or after August 20, 1,155
1976, shall be paid the monthly benefit for which that person 1,156
would otherwise qualify.
(3) "Physically or mentally incompetent" as used in this 1,158
section may be determined by a court of jurisdiction, or by a 1,159
physician appointed by the retirement board. Incapability of 1,160
making a living because of a physically or mentally disabling 1,161
condition shall meet the qualifications of this division. 1,162
(4) Benefits to a qualified survivor shall terminate upon 1,165
ceasing to meet eligibility requirements as provided in this 1,166
division, a first marriage, abandonment, adoption, or during 1,168
active military service. Benefits to a deceased member's 1,169
surviving spouse that were terminated under a former version of 1,170
this section that required termination due to remarriage and were 1,171
not resumed prior to the effective date of this amendment 1,172
SEPTEMBER 16, 1998, shall resume on the first day of the month 1,173
immediately following receipt by the board of an application on a 1,174
form provided by the board. 1,175
Upon the death of any subsequent spouse who was a member of 1,178
the public employees retirement system, state teachers retirement 1,179
system, or school employees retirement system, the surviving 1,180
spouse of such member may elect to continue receiving benefits 1,181
under this division, or to receive survivor's benefits, based 1,182
upon the subsequent spouse's membership in one or more of the 1,183
systems, for which such surviving spouse is eligible under this 1,184
section or section 3307.49 3307.66 or 3309.45 of the Revised 1,185
Code. If the surviving spouse elects to continue receiving 1,187
benefits under this division, such election shall not preclude 1,188
29
the payment of benefits under this division to any other 1,189
qualified survivor.
Benefits shall begin or resume on the first day of the 1,191
month following the attainment of eligibility and shall terminate 1,192
on the first day of the month following loss of eligibility. 1,193
(5) Benefits to a qualified spouse shall be paid in the 1,195
amount determined for the first qualifying survivor in division 1,197
(B)(1) of this section, but shall not be less than one hundred 1,198
six dollars per month if the deceased member had ten or more 1,199
years of Ohio service credit. All other qualifying survivors 1,201
shall share equally in the benefit or remaining portion thereof. 1,202
(6) The beneficiary of a member who is also a member of 1,204
the state teachers retirement system or of the school employees 1,205
retirement system, must forfeit the member's accumulated 1,206
contributions in those systems and in the public employees 1,207
retirement system, if the beneficiary takes a survivor benefit. 1,210
Such benefit shall be exclusively governed by section 145.37 of
the Revised Code. 1,211
(C)(1) Regardless of whether the member is survived by a 1,215
spouse or designated beneficiary, if the public employees
retirement system receives notice that a deceased member 1,216
described in division (A) or (B) of this section has one or more 1,217
qualified children, all persons who are qualified survivors under 1,219
division (B) of this section shall receive monthly benefits as 1,221
provided in division (B) of this section. 1,222
If, after determining the monthly benefits to be paid under 1,224
division (B) of this section, the system receives notice that 1,225
there is a qualified survivor who was not considered when the 1,226
determination was made, the system shall, notwithstanding section 1,227
145.561 of the Revised Code, recalculate the monthly benefits 1,229
with that qualified survivor included, even if the benefits to 1,230
qualified survivors already receiving benefits are reduced as a 1,231
result. The benefits shall be calculated as if the qualified 1,232
survivor who is the subject of the notice became eligible on the
30
date the notice was received and shall be paid to qualified 1,233
survivors effective on the first day of the first month following 1,234
the system's receipt of the notice. 1,235
If the retirement system did not receive notice that a 1,237
deceased member has one or more qualified children prior to 1,239
making payment under section 145.43 of the Revised Code to a 1,242
beneficiary as determined by the retirement system, the payment 1,243
is a full discharge and release of the system from any future 1,244
claims under this section or section 145.43 of the Revised Code. 1,245
(2) If benefits under division (C)(1) of this section to 1,248
all persons, or to all persons other than a surviving spouse or 1,250
other sole beneficiary, terminate, there are no children under
the age of twenty-two years, and the surviving spouse or 1,251
beneficiary qualifies for benefits under division (A) of this 1,253
section, the surviving spouse or beneficiary may elect to receive 1,254
benefits under division (A) of this section. The benefits shall 1,255
be effective on the first day of the month immediately following 1,256
the termination.
(D) If the survivor benefits due and paid under this 1,258
section are in a total amount less than the member's accumulated 1,259
account that was transferred from the public employees' savings 1,260
fund to the survivors' benefit fund, then the difference between 1,261
the total amount of the benefits paid shall be paid to the 1,262
beneficiary under section 145.43 of the Revised Code. 1,263
Sec. 171.04. The Ohio retirement study council shall: 1,273
(A) Make an impartial review from time to time of all laws 1,275
governing the administration and financing of the pension and 1,276
retirement funds under Chapters 145., 146., 742., 3307., 3309., 1,277
and 5505. of the Revised Code and recommend to the general 1,278
assembly any changes it may find desirable with respect to the 1,279
allowances and benefits, sound financing of the cost of benefits, 1,280
the prudent investment of funds, and the improvement of the 1,281
language, structure, and organization of the laws; 1,282
(B) Make an annual report to the governor and to the 1,284
31
general assembly covering its evaluation and recommendations with 1,285
respect to the operations of the state retirement systems and 1,286
their funds; 1,287
(C) Study all changes in the retirement laws proposed to 1,289
the general assembly and report to the general assembly on their 1,290
probable costs, actuarial implications, and desirability as a 1,291
matter of public policy; 1,292
(D) REVIEW SEMIANNUALLY THE POLICIES, OBJECTIVES, AND 1,294
CRITERIA ADOPTED UNDER SECTIONS 145.11, 742.11, 3307.15, 3309.15, 1,295
AND 5505.06 OF THE REVISED CODE FOR THE OPERATION OF THE 1,296
INVESTMENT PROGRAMS OF THE STATE RETIREMENT SYSTEMS, INCLUDING A 1,297
REVIEW OF ASSET ALLOCATION TARGETS AND RANGES, RISK FACTORS,
ASSET CLASS BENCHMARKS, TIME HORIZONS, TOTAL RETURN OBJECTIVES, 1,298
RELATIVE VOLATILITY, AND PERFORMANCE EVALUATION GUIDELINES. THE
COUNCIL SHALL, NOT LATER THAN THIRTY DAYS AFTER COMPLETING A 1,299
REVIEW, SUBMIT TO THE GOVERNOR AND THE GENERAL ASSEMBLY A REPORT 1,300
SUMMARIZING ITS FINDINGS. 1,301
(E) HAVE PREPARED BY AN INDEPENDENT ACTUARY, AT LEAST ONCE 1,303
EVERY TEN YEARS, AN ACTUARIAL REVIEW OF THE ANNUAL ACTUARIAL 1,304
VALUATIONS AND QUINQUENNIAL ACTUARIAL INVESTIGATIONS PREPARED 1,305
UNDER SECTIONS 145.22, 742.14, 3307.20, 3309.21, AND 5505.12 OF 1,306
THE REVISED CODE, INCLUDING A REVIEW OF THE ACTUARIAL ASSUMPTIONS 1,308
AND METHODS, THE DATA UNDERLYING THE VALUATIONS AND 1,309
INVESTIGATIONS, AND THE ADEQUACY OF EACH SYSTEM'S EMPLOYEE AND 1,310
EMPLOYER CONTRIBUTION RATES TO AMORTIZE ITS UNFUNDED ACTUARIAL 1,312
PENSION LIABILITY, IF ANY, AND TO SUPPORT THE PAYMENT OF BENEFITS 1,313
AUTHORIZED BY CHAPTER 145., 742., 3307., 3309., OR 5505. OF THE 1,314
REVISED CODE. THE COUNCIL SHALL SUBMIT TO THE GOVERNOR AND THE 1,316
GENERAL ASSEMBLY A REPORT SUMMARIZING THE REVIEW. 1,317
Sec. 742.26. (A) As used in this section: 1,327
(1) "Actuarial present value" means the calculation under 1,329
which the probability of occurrence, based on a specified 1,330
mortality table, and the discount for future monetary growth at a 1,331
specified interest rate are considered by an actuary to determine 1,332
32
the value of an annuity. 1,333
(2) "Other system retirant" means a former member of the 1,335
public employees retirement system, state teachers retirement 1,336
system, school employees retirement system, state highway patrol 1,337
retirement system, or Cincinnati retirement system who is 1,338
receiving a disability benefit or an age and service or commuted 1,339
age and service retirement benefit or allowance from a system of 1,340
which the person is a former member. 1,341
(3) "OPFPF retirant" means any person who is receiving a 1,344
retirement allowance, other than a disability benefit, from the 1,345
Ohio police and fire pension fund. 1,346
(B) The mortality table and interest rate used in 1,348
determining actuarial present value shall be determined by the 1,349
board of trustees of the fund based on the recommendations of an 1,350
actuary employed by the board. 1,351
(C)(1) An OPFPF retirant or other system retirant may be 1,354
employed as a member of a police or fire department. If so 1,355
employed, the retirant shall make contributions to the fund in 1,357
accordance with section 742.31 of the Revised Code, and the 1,358
employer shall make contributions in accordance with sections 1,359
742.33 and 742.34 of the Revised Code. 1,360
(2) An employer that employs An OPFPF retirant or other 1,363
system retirant shall notify the board of trustees of the fund of 1,364
the employment not later than the end of the month in which the 1,365
employment commences. On receipt of notice from an employer that 1,366
a person who is an other system retirant has been employed, the 1,367
fund shall notify the retirement system of which the other system 1,368
retirant was a member of such employment. 1,369
(D) An OPFPF retirant or other system retirant who has 1,372
received a retirement allowance or benefit for less than two 1,373
months when employment subject to this section commences shall 1,374
forfeit the retirement allowance or benefit for the period that 1,376
begins on the date the employment commences and ends on the date
that is two months after the date on which the retirement 1,377
33
allowance or benefit commenced. Service and contributions for 1,378
that period shall not be included in the calculation of any 1,379
benefits payable under this section, and those contributions 1,380
shall be refunded on the retirant's death or termination of the 1,382
employment.
(E) On receipt of notice from the public employees 1,384
retirement system, school employees retirement system, or state 1,385
teachers retirement system of the re-employment of an OPFPF 1,387
retirant, the Ohio police and fire pension fund shall not pay, or 1,389
if paid shall recover, the amount to be forfeited by the OPFPF 1,390
retirant in accordance with section 145.38, 3307.381 3307.35, or 1,392
3309.341 of the Revised Code.
(F)(1)(a) On termination of employment under this section, 1,394
an OPFPF retirant or other system retirant shall elect one of the 1,396
following: 1,397
(i) A monthly annuity the actuarial present value of which 1,399
is equal to two times the sum of all amounts deducted from the 1,400
salary of the OPFPF retirant or other system retirant and 1,402
credited to the retirant's individual account in the fund, 1,403
together with interest credited thereon at the rate determined by 1,405
the board, provided the annuity equals or exceeds twenty-five 1,406
dollars per month. 1,407
(ii) A lump-sum payment equal to two times the sum of all 1,409
amounts deducted from the salary of the OPFPF retirant or other 1,411
system retirant and credited to the retirant's individual account 1,413
in the fund, together with interest credited thereon at the rate 1,414
determined by the board. 1,415
(b) Interest shall be credited to accounts only at the 1,417
time of calculation of a benefit payable under division (F)(1) of 1,418
this section. 1,419
(2) A benefit payable under this division shall commence 1,421
on the first day of the month immediately after the latest of the 1,422
following: 1,423
(a) The last day for which compensation for employment 1,425
34
subject to this section was paid; 1,426
(b) Attainment by the OPFPF retirant or other system 1,429
retirant of age sixty; 1,430
(c) If the OPFPF retirant or other system retirant was 1,433
previously employed under this section and is receiving or 1,434
previously received a benefit under this division, completion of 1,435
a period of twelve months since the last benefit paid under this 1,436
section commenced. 1,437
(3) No amount received under this division shall be 1,439
included in determining an additional benefit under section 1,440
742.3711, 742.3716, or 742.3717 of the Revised Code or any other 1,441
post-retirement benefit increase. 1,442
(G)(1) If an OPFPF retirant or other system retirant dies 1,445
while employed in employment subject to this section, a lump-sum 1,446
payment calculated in accordance with division (F)(1)(a)(ii) of 1,447
this section shall be paid to the retirant's surviving spouse, or 1,449
if there is no surviving spouse, to the retirant's estate. 1,450
(2) If at the time of death an OPFPF retirant or other 1,453
system retirant receiving a monthly annuity under division 1,454
(F)(1)(a)(i) of this section has received less than would have 1,455
been received as a lump-sum payment under division (F)(1)(a)(ii) 1,456
of this section, the difference between the amount received and 1,458
the amount that would have been received as a lump-sum payment 1,461
shall be paid to the retirant's surviving spouse, or if there is 1,462
no surviving spouse, to the retirant's estate.
(H) An other system retirant subject to this section is 1,464
not a member of the Ohio police and fire pension fund, does not 1,466
have any of the rights, privileges, or obligations of membership, 1,467
except as specified in this section, and is not eligible to 1,468
receive health, medical, hospital, or surgical benefits under 1,469
section 742.45 of the Revised Code for employment subject to this 1,470
section.
(I) If any payment is made by the Ohio police and fire 1,473
pension fund to an OPFPF retirant or other system retirant to 1,475
35
which the retirant is not entitled, the retirant shall repay it 1,477
to the fund. If the retirant fails to make the repayment, the 1,478
fund shall withhold the amount due from any allowances or other 1,479
amounts due the OPFPF retirant or other system retirant. 1,480
(J) An OPFPF retirant who is employed under this section 1,484
is not eligible to receive any benefits under section 742.37 of 1,485
the Revised Code for the employment under this section. 1,486
(K) This section does not affect the receipt of benefits 1,488
by or eligibility for benefits of any person who on August 20, 1,489
1976, was receiving a disability benefit or service retirement 1,490
pension or allowance from a state or municipal retirement system 1,491
in Ohio and was a member of any other state or municipal 1,492
retirement system of this state. 1,493
(L) The board of trustees of the fund may adopt rules to 1,495
carry out this section. 1,496
Sec. 742.379. (A) As used in this section: 1,505
(1) "Full-time service" has the meaning established by 1,507
rule of the board of trustees of the Ohio police and fire pension 1,509
fund.
(2) "Qualified contributions" means contributions to the 1,511
public employees retirement system, school employees retirement 1,512
system, or state teachers retirement system attributable to 1,513
full-time service or purchase of credit for service in the armed 1,514
forces of the United States. 1,515
(B) In computing the pension and benefits payable under 1,517
section 742.37 or 742.39 of the Revised Code, the Ohio police and 1,519
fire pension fund shall give a member of the fund who is in the 1,520
active service of a police or fire department and is not 1,521
receiving a pension or benefit payment from the fund full credit 1,522
for service credit earned for full-time service as a member of 1,523
the Cincinnati retirement system or purchased from the retirement 1,524
system for service in the armed forces of the United States if, 1,526
for each year of service credit, the fund receives the sum of the 1,528
following:
36
(1) An amount, which shall be paid by the member, equal to 1,530
the amount withdrawn by the member from the retirement system 1,532
that is attributable to the year of service credit, with interest 1,533
on that amount from the date of withdrawal to the date of 1,535
payment;
(2) Interest, which shall be paid either by the member or 1,538
the retirement system, on the amount withdrawn by the member from 1,539
the retirement system that is attributable to the year of service
from the last day of the year for which the service credit was 1,541
earned or in which military service credit was purchased or 1,542
obtained to the date the withdrawal was made; 1,543
(3) An amount, which shall be paid by either the member or 1,546
the retirement system, equal to the lesser of the amount
contributed by the employer to the retirement system for the year 1,548
of service or the amount that would have been contributed by the 1,549
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 1,551
department, with interest on that amount from the last day of the 1,552
year for which the service credit was earned or in which military 1,553
service was purchased or obtained to the date the payment is 1,554
made;
(4) If the member became a member of the fund on or after 1,556
September 16, 1998, the amount, which shall be paid by the 1,559
member, determined pursuant to division (I) of this section. 1,560
Interest shall be determined in accordance with division 1,562
(H) of this section. 1,563
(C) In computing the pension and benefits payable under 1,566
section 742.37 or 742.39 of the Revised Code, the fund shall give 1,567
a member of the fund who is in the active service of a police or 1,569
fire department, is not receiving a pension or benefit payment 1,570
from the fund, and has withdrawn the member's contributions from 1,571
the public employees retirement system, school employees 1,572
retirement system, or state teachers retirement system full 1,573
credit for service credit earned for full-time service as a 1,574
37
member of the public employees retirement system, school 1,575
employees retirement system, or state teachers retirement system 1,576
or purchased from one of those retirement systems for service in 1,577
the armed forces of the United States if, for each year of 1,578
service, the fund receives the sum of the following: 1,580
(1) An amount, which shall be paid by the member, equal to 1,583
the amount withdrawn by the member from the former retirement 1,585
system that is attributable to that year of service credit, with 1,587
interest on that amount from the date of withdrawal to the date 1,588
of payment;
(2) Interest, which shall be transferred by the former 1,591
retirement system, on the amount withdrawn by the member from the 1,592
retirement system that is attributable to the year of service
from the last day of the year for which the service credit was 1,593
earned or in which military service credit was purchased or 1,594
obtained to the date the withdrawal was made; 1,595
(3) An amount, which shall be transferred by the former 1,598
retirement system, equal to the lesser of the amount contributed 1,599
by the employer to the retirement system for the year of service 1,600
or the amount that would have been contributed by the employer 1,601
for the year of service had the member been employed by the 1,602
member's current employer as a member of a police or fire 1,603
department, with interest on the amount transferred from the last 1,604
day of the year for which the service credit was earned or in 1,605
which military service credit was purchased or obtained to the 1,607
date the transfer is made;
(4) If the member became a member of the fund on or after 1,610
September 16, 1998, the amount, which shall be paid by the 1,612
member, determined pursuant to division (I) of this section. 1,613
On receipt of payment from the member, the fund shall 1,615
notify the former retirement system, and on receipt of the 1,616
notice, the retirement system shall make the transfer. Interest 1,617
shall be determined in accordance with division (H) of this 1,619
section.
38
(D) In computing the pension and benefits payable under 1,621
section 742.37 or 742.39 of the Revised Code, the fund shall give 1,623
a member of the fund who is in the active service of a police or 1,624
fire department, is not receiving a pension or benefit from the 1,625
fund, and has contributions on deposit with the public employees 1,626
retirement system, school employees retirement system, or state 1,627
teachers retirement system full credit for service credit earned 1,628
for full-time service as a member of one of those retirement 1,629
systems or purchased from one of the retirement systems for 1,630
service in the armed forces of the United States if both of the 1,632
following occur: 1,633
(1) The retirement system transfers to the fund, for each 1,636
year of service, the sum of the following: 1,637
(a) An amount equal to the member's qualified 1,640
contributions;
(b) An amount equal to the lesser of the employer's 1,643
qualified contributions to the retirement system or the amount 1,644
that would have been contributed by the employer for the 1,645
full-time service had the member been employed by the member's 1,646
current employer as a member of a police or fire department; 1,647
(c) Interest on the amounts specified in divisions 1,649
(D)(1)(a) and (b) of this section from the last day of the year 1,651
for which the service credit was earned or in which military 1,652
service credit was purchased or obtained to the date the transfer 1,653
is made. 1,654
(2) If the member became a member of the fund on or after 1,657
September 16, 1998, the member pays the amount determined 1,659
pursuant to division (I) of this section. 1,660
On receipt of a request from the member, the appropriate 1,663
retirement system shall make the transfer specified in division 1,664
(D)(1) of this section. Interest shall be determined in 1,665
accordance with division (H) of this section. 1,666
(E) Subject to board rules, a member of the fund may 1,668
choose to purchase in any one payment only part of the credit the 1,669
39
member is eligible to purchase under division (B) or (C)(1) of 1,671
this section. 1,672
(F) At the request of the fund, the public employees 1,674
retirement system, school employees retirement system, state 1,675
teachers retirement system, or Cincinnati retirement system shall 1,676
certify to the fund a copy of the records of the service and 1,678
contributions of a member of the fund who seeks service credit 1,679
under this section. 1,680
(G) A member of the fund is ineligible to receive credit 1,683
under this section for service that is used in the calculation of 1,684
any retirement benefit currently being paid or payable in the 1,685
future to the member, or service rendered concurrently with any 1,686
other period for which service credit has already been granted. 1,687
(H) Interest charged under this section shall be 1,690
calculated separately for each year of service credit at the 1,691
lesser of the actuarial assumption rate for that year of the fund 1,692
or of the retirement system in which the credit was earned. The 1,693
interest shall be compounded annually. 1,694
The board may, by rule, establish procedures for the 1,696
receipt of service credit under this section. 1,697
(I) The amount to be paid pursuant to division (B)(4), 1,700
(C)(4), or (D)(2) of this section is the sum of the following: 1,701
(1) An amount equal to the difference between the amount 1,704
the member paid as employee contributions for the service and the 1,705
amount the member would have paid had the member been employed by 1,706
the member's current employer as a member of a police or fire 1,707
department;
(2) An amount equal to the difference between the amount 1,710
paid or transferred under division (B)(3), (C)(3), or (D)(1)(b) 1,711
of this section and the amount that would have been contributed 1,712
by the employer for the service had the member been employed by 1,713
the member's current employer as a member of a police or fire 1,715
department;
(3) Interest, determined in accordance with division (H) 1,718
40
of this section, on the amounts specified in divisions (I)(1) and 1,720
(2) of this section.
At the request of a member, in lieu of requiring payment of 1,723
all or part of the amount determined under this division the fund 1,724
may grant the member an amount of service credit under division 1,725
(B), (C), or (D) of this section that is less than the amount for 1,727
which the member is eligible. The service credit granted shall 1,728
be the same percentage of the service credit for which the member 1,729
is eligible that the amount the fund receives under division (B), 1,730
(C), or (D) of this section is of the total amount it would 1,732
receive under those divisions if the full amount determined under 1,733
this division was paid.
(J)(1) Except as provided in division (J)(2) of this 1,736
section and notwithstanding any contrary provision of this
section, the board shall, in computing a pension or benefit under 1,738
section 742.37 or 742.39 of the Revised Code, give a member of 1,739
the fund who is not receiving a pension or disability benefit 1,740
from the fund full credit for service credit purchased under this 1,741
section for service that was less than full-time service if the 1,742
member provides evidence satisfactory to the board that, after 1,743
receiving written notice from the fund indicating that the member 1,745
would be permitted to purchase service credit for service that
was less than full-time, the member changed or ceased the 1,746
member's employment with the understanding that the credit 1,747
identified in the notice would be used in computing a pension or 1,748
benefit. If the board has canceled service credit purchased 1,750
under this section for service that was less than full-time 1,751
service and the member meets the requirements of division (J)(1) 1,752
of this section, the board shall restore the service credit on 1,753
repayment to the fund of the amount refunded to the member at the 1,755
time of cancellation.
(2) If a member of the fund who is not receiving a pension 1,758
or disability benefit from the fund purchased credit under this 1,759
section for service that was less than full-time service and does 1,760
41
not meet the requirements of division (J)(1) of this section, the 1,761
board shall refund to the member any amounts paid to purchase the 1,763
credit, with interest at a rate determined by the board from the 1,764
date the member purchased the credit to the date of the refund. 1,765
(K) A member of the fund who has purchased service credit 1,767
under this section, or the member's estate, is entitled to a 1,768
refund of the amount or portion of the amount paid to purchase 1,769
the credit if the purchased credit or portion of credit does not 1,770
increase a pension or benefit payable under section 742.37 or 1,771
742.39 of the Revised Code. The refund cancels an equivalent 1,772
amount of service credit. 1,773
(L) If a member or former member of the fund who is not a 1,775
current contributor and has not received a refund of accumulated 1,777
contributions elects to receive credit under section 145.295, 1,778
3307.412 3307.761, or 3309.351 of the Revised Code for service 1,779
for which the member contributed to the fund or purchased credit 1,780
for service in the armed forces of the United States, the fund 1,781
shall transfer to the public employees retirement system, school 1,783
employees retirement system, or state teachers retirement system 1,784
the amount specified in division (A) of section 145.295 of the 1,785
Revised Code, division (A) of section 3307.412 3307.761 of the 1,786
Revised Code, or division (A) of section 3309.351 of the Revised 1,788
Code.
(M) The board shall adopt rules establishing a payroll 1,791
deduction plan for the purchase of service credit under this 1,792
section. The rules shall meet the requirements described in
section 742.56 of the Revised Code. 1,794
Sec. 742.3721. THE BOARD OF TRUSTEES OF THE OHIO POLICE 1,796
AND FIRE PENSION FUND MAY ESTABLISH AND MAINTAIN A QUALIFIED 1,797
GOVERNMENTAL EXCESS BENEFIT ARRANGEMENT THAT MEETS THE
REQUIREMENTS OF DIVISION (m) OF SECTION 415 OF THE "INTERNAL 1,798
REVENUE CODE OF 1986," 100 STAT. 2085, 26 U.S.C.A. 415, AS 1,801
AMENDED, AND ANY REGULATIONS ADOPTED THEREUNDER. IF ESTABLISHED, 1,802
THE ARRANGEMENT SHALL BE A SEPARATE PORTION OF THE FUND AND BE 1,803
42
MAINTAINED SOLELY FOR THE PURPOSE OF PROVIDING TO RETIRED MEMBERS 1,804
THAT PART OF A BENEFIT OTHERWISE PAYABLE UNDER THIS CHAPTER THAT 1,805
EXCEEDS THE LIMITS ESTABLISHED BY SECTION 415 OF THE "INTERNAL 1,806
REVENUE CODE OF 1986," AS AMENDED.
MEMBERS PARTICIPATING IN AN ARRANGEMENT ESTABLISHED UNDER 1,808
THIS SECTION SHALL NOT BE PERMITTED TO ELECT TO DEFER 1,809
COMPENSATION TO THE ARRANGEMENT. CONTRIBUTIONS TO AND BENEFITS 1,810
PAID UNDER AN ARRANGEMENT SHALL NOT BE PAYABLE FROM A TRUST THAT 1,811
IS PART OF THE FUND UNLESS THE TRUST IS MAINTAINED SOLELY FOR THE 1,812
PURPOSE OF PROVIDING SUCH BENEFITS. 1,813
THE BOARD SHALL ADOPT RULES TO ADMINISTER AN ARRANGEMENT 1,815
ESTABLISHED UNDER THIS SECTION. 1,816
Sec. 2329.66. (A) Every person who is domiciled in this 1,825
state may hold property exempt from execution, garnishment, 1,826
attachment, or sale to satisfy a judgment or order, as follows: 1,827
(1)(a) In the case of a judgment or order regarding money 1,829
owed for health care services rendered or health care supplies 1,830
provided to the person or a dependent of the person, one parcel 1,831
or item of real or personal property that the person or a 1,832
dependent of the person uses as a residence. Division (A)(1)(a) 1,833
of this section does not preclude, affect, or invalidate the 1,834
creation under this chapter of a judgment lien upon the exempted 1,835
property but only delays the enforcement of the lien until the 1,836
property is sold or otherwise transferred by the owner or in 1,837
accordance with other applicable laws to a person or entity other 1,838
than the surviving spouse or surviving minor children of the 1,839
judgment debtor. Every person who is domiciled in this state may 1,840
hold exempt from a judgment lien created pursuant to division 1,841
(A)(1)(a) of this section the person's interest, not to exceed 1,842
five thousand dollars, in the exempted property. 1,843
(b) In the case of all other judgments and orders, the 1,845
person's interest, not to exceed five thousand dollars, in one 1,846
parcel or item of real or personal property that the person or a 1,847
dependent of the person uses as a residence. 1,848
43
(2) The person's interest, not to exceed one thousand 1,850
dollars, in one motor vehicle; 1,851
(3) The person's interest, not to exceed two hundred 1,853
dollars in any particular item, in wearing apparel, beds, and 1,854
bedding, and the person's interest, not to exceed three hundred 1,855
dollars in each item, in one cooking unit and one refrigerator or 1,856
other food preservation unit; 1,857
(4)(a) The person's interest, not to exceed four hundred 1,859
dollars, in cash on hand, money due and payable, money to become 1,860
due within ninety days, tax refunds, and money on deposit with a 1,861
bank, savings and loan association, credit union, public utility, 1,862
landlord, or other person. Division (A)(4)(a) of this section 1,863
applies only in bankruptcy proceedings. This exemption may 1,864
include the portion of personal earnings that is not exempt under 1,865
division (A)(13) of this section. 1,866
(b) Subject to division (A)(4)(d) of this section, the 1,868
person's interest, not to exceed two hundred dollars in any 1,869
particular item, in household furnishings, household goods, 1,870
appliances, books, animals, crops, musical instruments, firearms, 1,871
and hunting and fishing equipment, that are held primarily for 1,872
the personal, family, or household use of the person; 1,873
(c) Subject to division (A)(4)(d) of this section, the 1,875
person's interest in one or more items of jewelry, not to exceed 1,876
four hundred dollars in one item of jewelry and not to exceed two 1,877
hundred dollars in every other item of jewelry; 1,878
(d) Divisions (A)(4)(b) and (c) of this section do not 1,880
include items of personal property listed in division (A)(3) of 1,881
this section. 1,882
If the person does not claim an exemption under division 1,884
(A)(1) of this section, the total exemption claimed under 1,885
division (A)(4)(b) of this section shall be added to the total 1,886
exemption claimed under division (A)(4)(c) of this section, and 1,887
the total shall not exceed two thousand dollars. If the person 1,888
claims an exemption under division (A)(1) of this section, the 1,889
44
total exemption claimed under division (A)(4)(b) of this section 1,890
shall be added to the total exemption claimed under division 1,891
(A)(4)(c) of this section, and the total shall not exceed one 1,892
thousand five hundred dollars. 1,893
(5) The person's interest, not to exceed an aggregate of 1,895
seven hundred fifty dollars, in all implements, professional 1,896
books, or tools of the person's profession, trade, or business, 1,897
including agriculture; 1,899
(6)(a) The person's interest in a beneficiary fund set 1,901
apart, appropriated, or paid by a benevolent association or 1,902
society, as exempted by section 2329.63 of the Revised Code; 1,903
(b) The person's interest in contracts of life or 1,905
endowment insurance or annuities, as exempted by section 3911.10 1,906
of the Revised Code; 1,907
(c) The person's interest in a policy of group insurance 1,909
or the proceeds of a policy of group insurance, as exempted by 1,910
section 3917.05 of the Revised Code; 1,911
(d) The person's interest in money, benefits, charity, 1,913
relief, or aid to be paid, provided, or rendered by a fraternal 1,914
benefit society, as exempted by section 3921.18 of the Revised 1,915
Code; 1,916
(e) The person's interest in the portion of benefits under 1,918
policies of sickness and accident insurance and in lump-sum 1,919
payments for dismemberment and other losses insured under those 1,920
policies, as exempted by section 3923.19 of the Revised Code. 1,921
(7) The person's professionally prescribed or medically 1,923
necessary health aids; 1,924
(8) The person's interest in a burial lot, including, but 1,926
not limited to, exemptions under section 517.09 or 1721.07 of the 1,927
Revised Code; 1,928
(9) The person's interest in the following: 1,930
(a) Moneys paid or payable for living maintenance or 1,932
rights, as exempted by section 3304.19 of the Revised Code; 1,933
(b) Workers' compensation, as exempted by section 4123.67 1,936
45
of the Revised Code; 1,937
(c) Unemployment compensation benefits, as exempted by 1,939
section 4141.32 of the Revised Code; 1,940
(d) Cash assistance payments under the Ohio works first 1,942
program, as exempted by section 5107.75 of the Revised Code; 1,944
(e) Disability assistance payments, as exempted by section 1,946
5115.07 of the Revised Code. 1,947
(10)(a) Except in cases in which the person was convicted 1,949
of or pleaded guilty to a violation of section 2921.41 of the 1,950
Revised Code and in which an order for the withholding of 1,951
restitution from payments was issued under division (C)(2)(b) of 1,952
that section or in cases in which an order for withholding was 1,953
issued under section 2907.15 of the Revised Code, and only to the 1,954
extent provided in the order, and except as provided in sections 1,958
3105.171, 3105.63, 3111.23, and 3113.21 of the Revised Code, the 1,960
person's right to a pension, benefit, annuity, retirement 1,961
allowance, or accumulated contributions, the person's right to a 1,962
participant account in any deferred compensation program offered 1,963
by the Ohio public employees deferred compensation board, a 1,964
government unit, or a municipal corporation, or the person's 1,965
other accrued or accruing rights, as exempted by section 145.56, 1,966
145.75, 146.13, 742.47, 3307.71 3307.41, 3309.66, or 5505.22 of 1,967
the Revised Code, and the person's right to benefits from the 1,969
Ohio public safety officers death benefit fund; 1,971
(b) Except as provided in sections 3111.23 and 3113.21 of 1,974
the Revised Code, the person's right to receive a payment under 1,975
any pension, annuity, or similar plan or contract, not including 1,976
a payment from a stock bonus or profit-sharing plan or a payment 1,977
included in division (A)(6)(b) or (10)(a) of this section, on 1,978
account of illness, disability, death, age, or length of service, 1,979
to the extent reasonably necessary for the support of the person 1,980
and any of the person's dependents, except if all the following 1,981
apply: 1,982
(i) The plan or contract was established by or under the 1,984
46
auspices of an insider that employed the person at the time the 1,985
person's rights under the plan or contract arose. 1,986
(ii) The payment is on account of age or length of 1,988
service. 1,989
(iii) The plan or contract is not qualified under the 1,991
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C. 1, as 1,992
amended. 1,993
(c) Except for any portion of the assets that were 1,995
deposited for the purpose of evading the payment of any debt and 1,996
except as provided in sections 3111.23 and 3113.21 of the Revised 1,998
Code, the person's right in the assets held in, or to receive any 2,000
payment under, any individual retirement account, individual 2,001
retirement annuity, "Roth IRA," or education individual 2,002
retirement account that provides benefits by reason of illness, 2,004
disability, death, or age, to the extent that the assets, 2,005
payments, or benefits described in division (A)(10)(c) of this 2,006
section are attributable to any of the following: 2,007
(i) Contributions of the person that were less than or 2,010
equal to the applicable limits on deductible contributions to an 2,011
individual retirement account or individual retirement annuity in 2,012
the year that the contributions were made, whether or not the 2,013
person was eligible to deduct the contributions on the person's 2,014
federal tax return for the year in which the contributions were 2,015
made;
(ii) Contributions of the person that were less than or 2,018
equal to the applicable limits on contributions to a Roth IRA or 2,019
education individual retirement account in the year that the 2,020
contributions were made;
(iii) Contributions of the person that are within the 2,023
applicable limits on rollover contributions under subsections 2,024
219, 402(c), 403(a)(4), 403(b)(8), 408(b), 408(d)(3), 2,025
408A(c)(3)(B), 408A(d)(3), and 530(d)(5) of the "Internal Revenue 2,028
Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended. 2,030
(d) Except for any portion of the assets that were 2,033
47
deposited for the purpose of evading the payment of any debt and 2,034
except as provided in sections 3111.23 and 3113.21 of the Revised 2,035
Code, the person's right in the assets held in, or to receive any 2,036
payment under, any Keogh or "H.R. 10" plan that provides benefits 2,037
by reason of illness, disability, death, or age, to the extent 2,038
reasonably necessary for the support of the person and any of the 2,039
person's dependents. 2,040
(11) The person's right to receive spousal support, child 2,042
support, an allowance, or other maintenance to the extent 2,043
reasonably necessary for the support of the person and any of the 2,044
person's dependents; 2,046
(12) The person's right to receive, or moneys received 2,048
during the preceding twelve calendar months from, any of the 2,049
following: 2,050
(a) An award of reparations under sections 2743.51 to 2,052
2743.72 of the Revised Code, to the extent exempted by division 2,053
(D) of section 2743.66 of the Revised Code; 2,054
(b) A payment on account of the wrongful death of an 2,056
individual of whom the person was a dependent on the date of the 2,057
individual's death, to the extent reasonably necessary for the 2,058
support of the person and any of the person's dependents; 2,059
(c) Except in cases in which the person who receives the 2,061
payment is an inmate, as defined in section 2969.21 of the 2,062
Revised Code, and in which the payment resulted from a civil 2,063
action or appeal against a government entity or employee, as 2,064
defined in section 2969.21 of the Revised Code, a payment, not to
exceed five thousand dollars, on account of personal bodily 2,066
injury, not including pain and suffering or compensation for 2,067
actual pecuniary loss, of the person or an individual for whom 2,068
the person is a dependent;
(d) A payment in compensation for loss of future earnings 2,070
of the person or an individual of whom the person is or was a 2,071
dependent, to the extent reasonably necessary for the support of 2,072
the debtor and any of the debtor's dependents. 2,073
48
(13) Except as provided in sections 3111.23 and 3113.21 of 2,076
the Revised Code, personal earnings of the person owed to the
person for services in an amount equal to the greater of the 2,077
following amounts: 2,078
(a) If paid weekly, thirty times the current federal 2,080
minimum hourly wage; if paid biweekly, sixty times the current 2,081
federal minimum hourly wage; if paid semimonthly, sixty-five 2,082
times the current federal minimum hourly wage; or if paid 2,083
monthly, one hundred thirty times the current federal minimum 2,084
hourly wage that is in effect at the time the earnings are 2,085
payable, as prescribed by the "Fair Labor Standards Act of 1938," 2,086
52 Stat. 1060, 29 U.S.C. 206(a)(1), as amended; 2,087
(b) Seventy-five per cent of the disposable earnings owed 2,089
to the person. 2,090
(14) The person's right in specific partnership property, 2,092
as exempted by division (B)(3) of section 1775.24 of the Revised 2,093
Code; 2,094
(15) A seal and official register of a notary public, as 2,096
exempted by section 147.04 of the Revised Code; 2,097
(16) The person's interest in a tuition credit or a 2,099
payment under section 3334.09 of the Revised Code pursuant to a 2,100
tuition credit contract, as exempted by section 3334.15 of the 2,101
Revised Code;
(17) Any other property that is specifically exempted from 2,103
execution, attachment, garnishment, or sale by federal statutes 2,104
other than the "Bankruptcy Reform Act of 1978," 92 Stat. 2549, 11 2,105
U.S.C.A. 101, as amended; 2,106
(18) The person's interest, not to exceed four hundred 2,108
dollars, in any property, except that division (A)(18) of this 2,109
section applies only in bankruptcy proceedings. 2,110
(B) As used in this section: 2,112
(1) "Disposable earnings" means net earnings after the 2,114
garnishee has made deductions required by law, excluding the 2,115
deductions ordered pursuant to section 3111.23 or 3113.21 of the 2,117
49
Revised Code. 2,118
(2) "Insider" means: 2,120
(a) If the person who claims an exemption is an 2,122
individual, a relative of the individual, a relative of a general 2,123
partner of the individual, a partnership in which the individual 2,124
is a general partner, a general partner of the individual, or a 2,125
corporation of which the individual is a director, officer, or in 2,126
control; 2,127
(b) If the person who claims an exemption is a 2,129
corporation, a director or officer of the corporation; a person 2,130
in control of the corporation; a partnership in which the 2,131
corporation is a general partner; a general partner of the 2,132
corporation; or a relative of a general partner, director, 2,133
officer, or person in control of the corporation; 2,134
(c) If the person who claims an exemption is a 2,136
partnership, a general partner in the partnership; a general 2,137
partner of the partnership; a person in control of the 2,138
partnership; a partnership in which the partnership is a general 2,139
partner; or a relative in, a general partner of, or a person in 2,140
control of the partnership; 2,141
(d) An entity or person to which or whom any of the 2,143
following applies: 2,144
(i) The entity directly or indirectly owns, controls, or 2,146
holds with power to vote, twenty per cent or more of the 2,147
outstanding voting securities of the person who claims an 2,148
exemption, unless the entity holds the securities in a fiduciary 2,149
or agency capacity without sole discretionary power to vote the 2,150
securities or holds the securities solely to secure to debt and 2,151
the entity has not in fact exercised the power to vote. 2,152
(ii) The entity is a corporation, twenty per cent or more 2,154
of whose outstanding voting securities are directly or indirectly 2,155
owned, controlled, or held with power to vote, by the person who 2,156
claims an exemption or by an entity to which division 2,157
(B)(2)(d)(i) of this section applies. 2,158
50
(iii) A person whose business is operated under a lease or 2,160
operating agreement by the person who claims an exemption, or a 2,161
person substantially all of whose business is operated under an 2,162
operating agreement with the person who claims an exemption. 2,163
(iv) The entity operates the business or all or 2,165
substantially all of the property of the person who claims an 2,166
exemption under a lease or operating agreement. 2,167
(e) An insider, as otherwise defined in this section, of a 2,169
person or entity to which division (B)(2)(d)(i), (ii), (iii), or 2,170
(iv) of this section applies, as if the person or entity were a 2,171
person who claims an exemption; 2,172
(f) A managing agent of the person who claims an 2,174
exemption. 2,175
(3) "Participant account" has the same meaning as in 2,177
section 145.71 of the Revised Code. 2,178
(4) "Government unit" has the same meaning as in section 2,180
145.74 of the Revised Code. 2,181
(C) For purposes of this section, "interest" shall be 2,183
determined as follows: 2,184
(1) In bankruptcy proceedings, as of the date a petition 2,186
is filed with the bankruptcy court commencing a case under Title 2,187
11 of the United States Code; 2,188
(2) In all cases other than bankruptcy proceedings, as of 2,190
the date of an appraisal, if necessary under section 2329.68 of 2,191
the Revised Code, or the issuance of a writ of execution. 2,192
An interest, as determined under division (C)(1) or (2) of 2,194
this section, shall not include the amount of any lien otherwise 2,195
valid pursuant to section 2329.661 of the Revised Code. 2,196
Sec. 3305.01. As used in this chapter: 2,205
(A) "Public institution of higher education" means a state 2,208
university as defined in section 3345.011 of the Revised Code, 2,209
the medical college of Ohio at Toledo, the northeastern Ohio 2,210
universities college of medicine, or a university branch, 2,211
technical college, state community college, community college, or 2,212
51
municipal university established or operating under Chapter 2,213
3345., 3349., 3355., 3357., or 3358. of the Revised Code. 2,214
(B) "State retirement system" means the public employees 2,217
retirement system created under Chapter 145. of the Revised Code, 2,218
the state teachers retirement system created under Chapter 3307. 2,220
of the Revised Code, or the school employees retirement system 2,222
created under Chapter 3309. of the Revised Code. 2,223
(C) "Academic or administrative employee" means any 2,226
full-time employee who is a member of the faculty or 2,227
administrative staff of a public institution of higher education 2,228
serving in a position in the unclassified civil service pursuant 2,229
to section 124.11 of the Revised Code and is not receiving any 2,230
benefit, allowance, or other payment from a state retirement 2,231
system. In all cases of doubt, the board of trustees of the 2,232
public institution of higher education shall determine whether 2,233
any person is an academic or administrative employee for purposes 2,235
of this chapter, and the board's decision shall be final. 2,236
(D) "Electing employee" means any academic or 2,238
administrative employee who elects, pursuant to section 3305.05 2,239
of the Revised Code, to participate in an alternative retirement 2,240
plan provided pursuant to this chapter.
(E) An electing employee is "continuously employed" if no 2,242
more than one year intervenes between each period of employment 2,244
by a public institution of higher education in a position for 2,245
which three or more alternative retirement plans are available 2,246
under this chapter.
(F) "Compensation," for purposes of an electing employee, 2,248
has the same meaning as the applicable one of the following: 2,249
(1) If the electing employee would be subject to Chapter 2,251
145. of the Revised Code had the employee not made an election 2,252
pursuant to section 3305.05 of the Revised Code, "earnable 2,254
salary" as defined in division (R) of section 145.01 of the
Revised Code; 2,255
(2) If the electing employee would be subject to Chapter 2,257
52
3307. of the Revised Code had the employee not made an election 2,258
pursuant to section 3305.05 of the Revised Code, "compensation" 2,260
as defined in division (U)(L) of section 3307.01 of the Revised 2,261
Code; 2,262
(3) If the electing employee would be subject to Chapter 2,264
3309. of the Revised Code had the employee not made an election 2,265
pursuant to section 3305.05 of the Revised Code, "compensation" 2,267
as defined in division (V) of section 3309.01 of the Revised
Code. 2,268
Sec. 3305.06. (A) Each electing employee shall contribute 2,277
an amount, which shall be a certain percentage of the employee's 2,278
compensation, to the alternative retirement plan in which the 2,279
employee participates. This percentage shall be the percentage 2,280
the electing employee would have otherwise been required to 2,281
contribute to the state retirement system that applies to the
employee's position, except that the percentage shall not be less 2,282
than three per cent. Employee contributions under this division 2,283
may be treated as employer contributions in accordance with 2,284
Internal Revenue Code 414(h). 2,285
(B) Each public institution of higher education employing 2,287
an electing employee shall contribute an amount, which shall be a 2,288
certain percentage of the employee's compensation, to the 2,289
alternative retirement plan the employee has elected. This 2,290
percentage shall be determined by the board of trustees of the 2,291
public institution.
(C)(1) In no event shall the amount contributed by the 2,294
electing employee pursuant to division (A) of this section and on 2,295
the electing employee's behalf pursuant to division (B) of this
section be less than the amount necessary to qualify the plan as 2,296
a state retirement system pursuant to Internal Revenue Code 2,297
3121(B)(7) and the regulations adopted thereunder. 2,298
(2) The full amount of the electing employee's 2,300
contribution under division (A) of this section and the full 2,301
amount of the employer's contribution made on behalf of that 2,302
53
employee under division (B) of this section shall be paid to the 2,303
entity providing the employee's alternative retirement plan for 2,304
application to that plan in accordance with any contract the 2,305
electing employee has entered into for purposes of that plan. In
no event shall any benefits be paid under that plan prior to the 2,306
time an electing employee ceases to be continuously employed. 2,307
(D) An electing employee may make voluntary deposits to 2,309
the employee's alternative retirement plan in addition to the 2,310
employee contribution required under division (A) of this 2,312
section.
(E) Each public institution of higher education employing 2,314
an electing employee shall contribute on behalf of that employee 2,315
to the state retirement system that otherwise applies to the 2,316
electing employee's position an amount equal to six per cent of 2,317
the electing employee's compensation to mitigate any negative 2,318
financial impact of the alternative retirement program on the 2,320
state retirement system; provided that on the first day of July
following the first year after the department of insurance 2,322
designates an alternative retirement plan under section 3305.03 2,323
of the Revised Code and every third year thereafter, the Ohio
retirement study council shall cause an independent actuarial 2,326
study to be completed and submitted to the Ohio board of regents. 2,327
The study shall determine any adjustments in contributions
necessary to reflect any change in the level of the negative 2,328
financial impact resulting from the establishment of the 2,329
alternative retirement program. The amount contributed to the 2,331
state retirement system pursuant to this division shall be
increased or decreased to reflect the amount needed to mitigate 2,332
the negative financial impact, if any, on the system, as 2,333
determined by each actuarial study. Any increase or decrease in 2,334
contributions shall become effective on the first day of July in 2,335
the year in which the actuarial study is completed. 2,336
Contributions on behalf of an electing employee shall continue in 2,337
accordance with this division until the occurrence of the 2,338
54
following:
(1) If the electing employee would be subject to Chapter 2,340
145. of the Revised Code had the employee not made an election 2,341
pursuant to section 3305.05 of the Revised Code, until the 2,343
unfunded actuarial accrued liability for all benefits, except 2,345
health care benefits provided under section 145.325 or 145.58 of 2,346
the Revised Code, is fully amortized, as determined by the annual 2,347
actuarial valuation prepared under section 145.22 of the Revised 2,348
Code;
(2) If the electing employee would be subject to Chapter 2,350
3307. of the Revised Code had the employee not made an election 2,351
pursuant to section 3305.05 of the Revised Code, until the 2,352
unfunded actuarial accrued liability for all benefits, except 2,353
health care benefits provided under section 3307.405 3307.39 or 2,354
3307.74 3307.61 of the Revised Code, is fully amortized, as 2,356
determined by the annual actuarial valuation prepared under
section 3307.20 3307.51 of the Revised Code; 2,357
(3) If the electing employee would be subject to Chapter 2,359
3309. of the Revised Code had the employee not made an election 2,360
pursuant to section 3305.05 of the Revised Code, until the 2,361
unfunded actuarial accrued liability for all benefits, except 2,362
health care benefits provided under section 3309.375 or 3309.69 2,363
of the Revised Code, is fully amortized, as determined by the 2,364
annual actuarial valuation prepared under section 3309.21 of the 2,365
Revised Code.
Sec. 3307.01. As used in this chapter: 2,374
(A) "Employer" means the board of education, school 2,376
district, governing authority of any community school established 2,377
under Chapter 3314. of the Revised Code, college, university, 2,378
institution, or other agency within the state by which a teacher 2,380
is employed and paid.
(B) "Teacher" means any ALL OF THE FOLLOWING: 2,382
(1) ANY person paid from public funds and employed in the 2,385
public schools of the state under any type of contract described 2,386
55
in section 3319.08 of the Revised Code in a position for which 2,387
the person is required to have a license issued pursuant to 2,389
sections 3319.22 to 3319.31 of the Revised Code; any
(2) ANY person employed as a teacher by a community school 2,392
pursuant to Chapter 3314. of the Revised Code; and any 2,394
(3) ANY PERSON HOLDING AN INTERNSHIP CERTIFICATE ISSUED 2,397
UNDER SECTION 3319.28 OF THE REVISED CODE AND EMPLOYED IN A 2,399
PUBLIC SCHOOL IN THIS STATE;
(4) ANY PERSON HAVING A LICENSE ISSUED PURSUANT TO 2,402
SECTIONS 3319.22 TO 3319.31 OF THE REVISED CODE AND EMPLOYED IN A 2,403
PUBLIC SCHOOL IN THIS STATE IN AN EDUCATIONAL POSITION, AS 2,405
DETERMINED BY THE STATE BOARD OF EDUCATION, UNDER PROGRAMS
PROVIDED FOR BY FEDERAL ACTS OR REGULATIONS AND FINANCED IN WHOLE 2,406
OR IN PART FROM FEDERAL FUNDS, BUT FOR WHICH NO LICENSURE 2,407
REQUIREMENTS FOR THE POSITION CAN BE MADE UNDER THE PROVISIONS OF 2,408
SUCH FEDERAL ACTS OR REGULATIONS;
(5) ANY other teacher or faculty member employed in any 2,410
school, college, university, institution, or other agency wholly 2,412
controlled and managed, and supported in whole or in part, by the 2,413
state or any political subdivision thereof, including Central 2,414
state university, Cleveland state university, the university of 2,415
Toledo, and the medical college of Ohio at Toledo.; 2,416
(6) The educational employees of the department of 2,419
education, as determined by the state superintendent of public 2,420
instruction, shall be considered teachers for the purpose of 2,421
membership in this system. In 2,422
IN all cases of doubt, the state teachers retirement board 2,425
shall determine whether any person is a teacher, and its decision 2,426
shall be final.
"Teacher" does not include any academic or administrative 2,428
employee of a public institution of higher education, as defined 2,429
in section 3305.01 of the Revised Code, who participates in an 2,430
alternative retirement plan established under Chapter 3305. of 2,431
the Revised Code.
56
(C) "Prior service" means all service as a teacher before 2,433
September 1, 1920, military service credit, all service prior to 2,434
September 1, 1920, as an employee of any employer who comes 2,435
within the public employees retirement system, the school 2,436
employees retirement system, or any other state retirement system 2,437
established under the laws of Ohio, and similar service in 2,438
another state, credit for which was procured by a member under 2,439
section 3307.33 of the Revised Code, prior to June 25, 1945. 2,440
Prior service credit shall not be granted to any member for 2,441
service for which credit or benefits have been received in any 2,442
other state retirement system in Ohio or for credit that was 2,443
forfeited by withdrawal of contributions, unless the credit has 2,444
been restored. If the teacher served as an employee in any two 2,445
or all of the capacities, "prior service" means the total 2,446
combined service in the capacities prior to September 1, 1920. 2,447
If a teacher who has been granted prior service credit for 2,449
service rendered prior to September 1, 1920, as an employee of an 2,450
employer who comes within the public employees retirement system 2,451
or the school employees retirement system, establishes, 2,452
subsequent to September 16, 1957, and before retirement, three 2,453
years of contributing service in the public employees retirement 2,454
system, or one year in the school employees retirement system, 2,455
the prior service credit granted shall become, at retirement, the 2,457
liability of the other system if the prior service or employment 2,459
was in a capacity covered by that system.
(D) "Total service," "total service credit," except as 2,461
provided in section 3307.41 of the Revised Code, or "Ohio service 2,462
credit" means all service of a member of the state teachers 2,463
retirement system since last becoming a member and, in addition 2,464
thereto, restored service credit under section 3307.28 of the 2,465
Revised Code, all prior service credit, all military service 2,467
credit computed as provided in this chapter, and all other 2,468
service credit established under sections 3307.22, 3307.31, 2,469
3307.311, 3307.32, 3307.35, 3307.411, 3307.412, 3307.51, 2,471
57
3307.512, 3307.513, 3307.514, 3307.515, and 3307.73 and former 2,473
section 3307.52 of the Revised Code, and Section 3 of Amended 2,474
Substitute Senate Bill No. 530 of the 114th general assembly. 2,475
All service credit purchased under section 3307.33 of the Revised 2,476
Code shall be used exclusively for the purpose of qualifying for 2,477
service retirement. 2,478
(E) "Member" means any person included in the membership 2,480
of the state teachers retirement system, which shall consist of 2,481
all teachers and contributors as defined in divisions (B) and 2,483
(F)(D) of this section and all disability benefit recipients, AS 2,484
DEFINED IN SECTION 3307.50 OF THE REVISED CODE. However, for 2,486
purposes of this chapter, the following persons shall not be
considered members: 2,487
(1) A student, intern, or resident who is not a member 2,489
while employed part-time by a school, college, or university at 2,491
which the student, intern, or resident is regularly attending 2,492
classes;
(2) A person denied membership pursuant to section 3307.27 2,494
3307.24 of the Revised Code; 2,496
(3) A superannuate or AN other system retirant, as defined 2,499
in section 3307.381 3307.35 of the Revised Code, OR A 2,500
SUPERANNUATE; 2,501
(4) An individual employed in a program established 2,503
pursuant to the "Job Training Partnership Act," 96 Stat. 1322 2,504
(1982), 29 U.S.C.A. 1501. 2,505
(F)(D) "Contributor" means any person who has an account 2,507
in the teachers' savings fund OR DEFINED CONTRIBUTION FUND. 2,508
(G)(E) "Beneficiary" means any person eligible to receive, 2,510
or in receipt of, a retirement allowance or other benefit 2,512
provided by this chapter. 2,513
(H)(1) "Service retirement" means retirement as provided 2,515
in section 3307.38 or 3307.39 of the Revised Code. 2,516
(2) "Disability retirement" means retirement as provided 2,518
in section 3307.43 of the Revised Code. 2,519
58
(I) "Accumulated contributions" means the sum of all 2,521
amounts credited to a contributor's individual account in the 2,522
teachers' savings fund, together with interest credited thereon 2,523
at the rates approved by the state teachers retirement board 2,524
prior to retirement. 2,525
(J) "Annuity" means payments for life derived from 2,527
contributions made by a contributor and paid from the annuity and 2,528
pension reserve fund. All annuities shall be paid in twelve 2,529
equal monthly installments. 2,530
(K) "Pensions" means annual payments for life derived from 2,532
appropriations made by an employer and paid from the annuity and 2,533
pension reserve fund. All pensions shall be paid in twelve equal 2,534
monthly installments. 2,535
(L)(1) "Allowance" or "benefit" means the pension plus the 2,537
annuity, or any other payment under this chapter, and includes a 2,538
disability allowance or disability benefit. 2,539
(2) "Disability allowance" means an allowance paid on 2,541
account of disability under section 3307.431 of the Revised Code. 2,542
(3) "Disability benefit" means a benefit paid as 2,544
disability retirement under section 3307.43 of the Revised Code, 2,545
as a disability allowance under section 3307.431 of the Revised 2,546
Code, or as a disability benefit under section 3307.41 of the 2,547
Revised Code. 2,548
(M) "Annuity reserve" means the present value, computed 2,550
upon the basis of mortality tables adopted by the state teachers 2,551
retirement board with interest, of all payments to be made on 2,552
account of any annuity, or benefit in lieu of any annuity, 2,553
granted to a member. 2,554
(N) "Pension reserve" means the present value, computed 2,556
upon the basis of mortality tables adopted by the state teachers 2,557
retirement board with interest, of all payments to be made on 2,558
account of any pension, or benefit in lieu of any pension, 2,559
granted to a member or to a beneficiary. 2,560
(O)(F) "Year" means the year beginning the first day of 2,562
59
July and ending with the thirtieth day of June next following, 2,563
except that for the purpose of determining final average salary 2,564
UNDER THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE 2,565
REVISED CODE, "year" may mean the contract year. 2,567
(P)(G) "Local district pension system" means any school 2,569
teachers pension fund created in any school district of the state 2,570
in accordance with the laws of the state prior to September 1, 2,571
1920. 2,572
(Q)(H) "Employer contribution" means the amount paid by an 2,574
employer, as determined by the employer rate, including the 2,575
normal and deficiency rates, contributions, and funds wherever 2,576
used in this chapter. 2,577
(R)(I) "Five years of service credit," for the exclusive 2,580
purpose of satisfying the service credit requirements and 2,581
determining eligibility for benefits under section 3307.38 of the 2,582
Revised Code, means employment covered under this chapter and 2,583
employment covered under a former retirement plan operated, 2,584
recognized, or endorsed by a college, institute, university, or 2,585
political subdivision of this state prior to coverage under this 2,586
chapter. 2,587
(S)(J) "Actuary" means the actuarial consultant to the 2,589
state teachers retirement board, who shall be either of the 2,590
following:
(1) A member of the American academy of actuaries; 2,592
(2) A firm, partnership, or corporation of which at least 2,594
one person is a member of the American academy of actuaries. 2,595
(T)(K) "Fiduciary" means a person who does any of the 2,597
following: 2,598
(1) Exercises any discretionary authority or control with 2,600
respect to the management of the system, or with respect to the 2,601
management or disposition of its assets; 2,602
(2) Renders investment advice for a fee, direct or 2,604
indirect, with respect to money or property of the system; 2,605
(3) Has any discretionary authority or responsibility in 2,607
60
the administration of the system. 2,608
(U)(L)(1) Except as otherwise provided in this division, 2,611
"compensation" means all salary, wages, and other earnings paid 2,612
to a teacher by reason of the teacher's employment, including 2,613
compensation paid pursuant to a supplemental contract. The 2,614
salary, wages, and other earnings shall be determined prior to 2,615
determination of the amount required to be contributed to the 2,616
teachers' savings fund OR DEFINED CONTRIBUTION FUND under section 2,617
3307.51 3307.26 of the Revised Code and without regard to whether 2,620
any of the salary, wages, or other earnings are treated as 2,621
deferred income for federal income tax purposes.
(2) Compensation does not include any of the following: 2,623
(a) Payments for accrued but unused sick leave or personal 2,625
leave, including payments made under a plan established pursuant 2,626
to section 124.39 of the Revised Code or any other plan 2,627
established by the employer; 2,628
(b) Payments made for accrued but unused vacation leave, 2,630
including payments made pursuant to section 124.13 of the Revised 2,631
Code or a plan established by the employer; 2,632
(c) Payments made for vacation pay covering concurrent 2,634
periods for which other salary, compensation, or benefits under 2,635
this chapter are paid; 2,636
(d) Amounts paid by the employer to provide life 2,638
insurance, sickness, accident, endowment, health, medical, 2,639
hospital, dental, or surgical coverage, or other insurance for 2,640
the teacher or the teacher's family, or amounts paid by the 2,641
employer to the teacher in lieu of providing the insurance; 2,642
(e) Incidental benefits, including lodging, food, laundry, 2,644
parking, or services furnished by the employer, use of the 2,645
employer's property or equipment, and reimbursement for 2,646
job-related expenses authorized by the employer, including moving 2,647
and travel expenses and expenses related to professional 2,648
development; 2,649
(f) Payments made by the employer in exchange for a 2,651
61
member's waiver of a right to receive any payment, amount, or 2,652
benefit described in division (U)(L)(2) of this section; 2,653
(g) Payments by the employer for services not actually 2,655
rendered; 2,656
(h) Any amount paid by the employer as a retroactive 2,658
increase in salary, wages, or other earnings, unless the increase 2,659
is one of the following: 2,660
(i) A retroactive increase paid to a member employed by a 2,662
school district board of education in a position that requires a 2,663
license designated for teaching and not designated for being an 2,664
administrator issued under section 3319.22 of the Revised Code 2,665
that is paid in accordance with uniform criteria applicable to 2,666
all members employed by the board in positions requiring the 2,667
licenses; 2,668
(ii) A retroactive increase paid to a member employed by a 2,670
school district board of education in a position that requires a 2,671
license designated for being an administrator issued under 2,672
section 3319.22 of the Revised Code that is paid in accordance 2,673
with uniform criteria applicable to all members employed by the 2,674
board in positions requiring the licenses; 2,675
(iii) A retroactive increase paid to a member employed by 2,677
a school district board of education as a superintendent that is 2,678
also paid as described in division (U)(L)(2)(h)(i) of this 2,679
section; 2,680
(iv) A retroactive increase paid to a member employed by 2,682
an employer other than a school district board of education in 2,683
accordance with uniform criteria applicable to all members 2,684
employed by the employer. 2,685
(i) Payments made to or on behalf of a teacher that are in 2,687
excess of the annual compensation that may be taken into account 2,688
by the retirement system under division (a)(17) of section 401 of 2,689
the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 2,690
401(a)(17), as amended. For a teacher who first establishes 2,691
membership before July 1, 1996, the annual compensation that may 2,692
62
be taken into account by the retirement system shall be 2,693
determined under division (d)(3) of section 13212 of the "Omnibus 2,694
Budget Reconciliation Act of 1993," Pub. L. No. 103-66, 107 Stat. 2,696
472.
(j) Payments made under division (B) or (D) of section 2,698
5923.05 of the Revised Code or Section 4 of Substitute Senate 2,700
Bill No. 3 of the 119th general assembly; 2,701
(k) Anything of value received by the teacher that is 2,703
based on or attributable to retirement or an agreement to retire. 2,704
(3) The retirement board shall determine by rule both of 2,706
the following: 2,707
(a) Whether particular forms of earnings are included in 2,709
any of the categories enumerated in this division; 2,710
(b) Whether any form of earnings not enumerated in this 2,712
division is to be included in compensation. 2,713
Decisions of the board made under this division shall be 2,715
final. 2,716
(V) "Retirant" means any former member who is granted age 2,718
and service retirement as provided in sections 3307.38, 3307.39, 2,719
3307.41, and 3307.50 of the Revised Code. 2,720
(W) "Disability benefit recipient" means a member who is 2,722
receiving a disability benefit. 2,723
(M) "SUPERANNUATE" MEANS BOTH OF THE FOLLOWING: 2,725
(1) A FORMER TEACHER RECEIVING FROM THE SYSTEM A 2,727
RETIREMENT ALLOWANCE UNDER SECTION 3307.58 OR 3307.59 OF THE 2,728
REVISED CODE; 2,729
(2) A FORMER TEACHER RECEIVING ANY BENEFIT FROM THE SYSTEM 2,731
UNDER A PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE REVISED 2,733
CODE.
FOR PURPOSES OF SECTION 3307.35 OF THE REVISED CODE, 2,735
"SUPERANNUATE" ALSO MEANS A FORMER TEACHER RECEIVING FROM THE 2,736
SYSTEM A COMBINED SERVICE RETIREMENT BENEFIT PAID IN ACCORDANCE 2,737
WITH SECTION 3307.57 OF THE REVISED CODE, REGARDLESS OF WHICH 2,738
RETIREMENT SYSTEM IS PAYING THE BENEFIT. 2,739
63
Sec. 3307.031. THE STATE TEACHERS RETIREMENT SYSTEM SHALL 2,742
CONSIST OF THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 AND 2,743
THE ONE OR MORE PLANS ESTABLISHED UNDER SECTION 3307.81 OF THE 2,746
REVISED CODE.
Sec. 3307.05. The state teachers retirement board shall 2,755
consist of the following nine members: 2,756
(A) The superintendent of public instruction; 2,758
(B) The auditor of state; 2,760
(C) The attorney general; 2,762
(D) Five members, known as teacher members, who shall be 2,764
members of the state teachers retirement system; 2,765
(E) A former member of the system, known as the retired 2,767
teacher member, who shall be a recipient of service retirement 2,768
benefits under section 3307.38 or 3307.39 of the Revised Code 2,769
SUPERANNUATE.
Sec. 3307.07. All elections of members of the state 2,778
teachers retirement board shall be held under the direction of 2,779
the board. Any member of the state teachers retirement system, 2,780
who has been nominated by a petition signed by five hundred or 2,781
more members of the system, shall be eligible for election as a 2,782
teacher member of the board. The petition shall contain the 2,783
signatures of twenty or more members of the system from each of 2,784
at least ten counties wherein members of the system are employed. 2,785
Any retired teacher who is a recipient of service 2,787
retirement benefits under section 3307.38 or 3307.39 of the 2,788
Revised Code SUPERANNUATE and is a resident of Ohio is eligible 2,790
for election as the retired teacher member of the board, if such 2,791
retired teacher has been nominated by a petition signed by five 2,792
hundred or more retired teachers, who are also recipients of 2,793
benefits under section 3307.38 or 3307.39 of the Revised Code 2,794
SUPERANNUATES. The petition shall contain the signatures of 2,796
twenty or more retired teachers from each of at least ten 2,797
counties wherein retirants SUPERANNUATES under the system reside. 2,799
The board shall place the name of any eligible candidate 2,801
64
upon the appropriate ballot as a regular candidate. At any 2,802
election, qualified voters, as defined in this section, may vote 2,803
for the regular candidates or for other eligible candidates, in 2,804
which case the names of such persons shall be written upon the 2,805
appropriate ballots, except that members of the system and former 2,806
members of the system who are recipients of service retirement 2,807
benefits under section 3307.38 or 3307.39 of the Revised Code 2,808
SUPERANNUATES shall vote respectively for teacher members and the 2,810
retired teacher member of the board. The candidate who receives 2,811
the highest number of votes for any term of office shall be 2,812
elected to the board. If, at any election, teacher members are 2,813
to be elected for concurrent terms, eligible candidates shall be 2,814
placed on the ballot, and the candidates who receive the highest 2,815
numbers of votes shall be elected to the board. 2,816
Elected members of the board shall be elected on the basis 2,818
of the total number of ballots cast by qualified voters, who 2,819
shall consist of members of the system and former members of the 2,820
system who are recipients of service retirement benefits under 2,821
section 3307.38 or 3307.39 of the Revised Code SUPERANNUATES. 2,822
Sec. 3307.08. Each member of the state teachers retirement 2,831
board upon appointment or election shall take an oath of office 2,832
that he THE MEMBER will support the constitution of the United 2,834
States, the constitution of the state, and that he THE MEMBER 2,835
will diligently and honestly administer the affairs of the said 2,836
board, and that he THE MEMBER will not knowingly violate or 2,838
willfully permit to be violated any law applicable to sections 2,840
3307.01 to 3307.72, inclusive, of the Revised Code THIS CHAPTER. 2,841
Such oath shall be subscribed to by the member making it, and 2,842
certified by the officer before whom it is taken, and shall be 2,843
immediately filed in the office of the secretary of state. 2,844
Sec. 3307.09. A majority of the members of the state 2,853
teachers retirement board constitutes a quorum for the 2,854
transaction of any business. All meetings of the board shall be 2,855
open to the public except executive sessions as set forth in 2,856
65
division (G) of section 121.22 of the Revised Code, and any
portions of any sessions discussing medical records or the degree 2,857
of disability of a member excluded from public inspection by 2,858
section 3307.21 3307.20 of the Revised Code. 2,859
Sec. 3307.10. (A) The members of the state teachers 2,868
retirement board shall serve without compensation, except that 2,869
members shall be reimbursed from the expense fund for all actual 2,870
necessary expenses incurred while serving on the board. 2,871
(B) The board may secure insurance coverage designed to 2,873
indemnify board members and employees for their actions or 2,874
conduct in the performance of official duties, and may pay 2,875
required premiums for such coverage from the expense fund. 2,876
(C) If the officers of the board determine that a meeting 2,878
of the entire membership, or any part thereof, is necessary, such 2,879
determination shall be final, and teacher members shall be given 2,880
time off from their employment to attend any such meeting. The 2,881
employer of a teacher member shall not reduce the member's earned 2,882
compensation as a teacher or any contribution required under 2,883
section 3307.51 3307.26 of the Revised Code, because of the 2,884
teacher member's absence from employment to attend any such 2,885
meeting.
The portion of the employer contribution required under 2,887
section 3307.53 3307.28 of the Revised Code that represents 2,889
earned compensation of a teacher member paid for the period of an 2,890
absence from employment to attend a board meeting, shall be
annually transferred from the expense fund and forwarded to the 2,891
employer of the teacher member. 2,892
(D) The board shall adopt rules in accordance with section 2,895
111.15 of the Revised Code establishing a policy for 2,897
reimbursement of travel expenses incurred by board members in the 2,899
performance of their official duties. As part of any audit
performed under Chapter 117. of the Revised Code, an inquiry 2,902
shall be made into whether board members have complied with these 2,903
rules.
66
(E) No board member shall accept payment or reimbursement 2,906
for travel expenses, other than for meals and other food and 2,907
beverages provided to the member, from any source other than the 2,908
expense fund. Except in the case of an emergency, no 2,909
out-of-state travel expenses shall be reimbursed unless approved 2,910
in advance by a majority of the board at a regular board meeting. 2,911
Sec. 3307.11. The state teachers retirement board shall 2,920
elect from its membership, a chairman CHAIRPERSON and a vice 2,921
chairman VICE-CHAIRPERSON. The board shall employ an executive 2,923
director who shall serve as secretary, and shall employ other 2,924
persons necessary to operate the system and to fulfill the 2,925
board's duties and responsibilities under Chapter 3307. of the 2,926
Revised Code. The compensation of all employees and all other 2,927
expenses of the board necessary for the proper operation of the 2,928
system shall be paid in such amounts as the board approves. 2,929
Every expense voucher of an employee, officer, or board 2,931
member of the state teachers retirement system shall itemize all 2,932
purchases and expenditures. 2,933
The board shall receive all applications for retirement 2,935
UNDER THE PLANS DESCRIBED IN SECTION 3307.031 OF THE REVISED 2,936
CODE, shall provide for the payment of all retirement allowances 2,937
and other benefits PAYABLE UNDER THIS CHAPTER, and shall make 2,938
other EXPENDITURES authorized by Chapter 3307. of the Revised 2,939
Code THIS CHAPTER. 2,940
Sec. 3307.121. THE TREASURER OF STATE SHALL FURNISH 2,942
ANNUALLY TO THE STATE TEACHERS RETIREMENT BOARD A SWORN STATEMENT 2,943
OF THE AMOUNT OF THE FUNDS IN THE TREASURER OF STATE'S CUSTODY 2,944
BELONGING TO THE STATE TEACHERS RETIREMENT SYSTEM. 2,945
Sec. 3307.65 3307.14. The state teachers retirement board 2,954
shall be the trustee of certain funds hereby created as follows: 2,955
(A) The "teachers' savings fund" is the fund in which 2,957
shall be accumulated the contributions deducted from the 2,958
compensation of teachers and faculty members PARTICIPATING IN THE 2,959
PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED 2,960
67
CODE, as provided by section 3307.51 3307.26 of the Revised Code, 2,961
together with the interest credited thereon. Such accumulated 2,963
contributions refunded upon withdrawal, or payable to an estate 2,964
or beneficiary as provided in this chapter, shall be paid from 2,965
this fund. Any accumulated contributions forfeited by the 2,966
failure of a contributor, an estate, or a beneficiary to claim 2,967
the same shall be transferred from this fund to the guarantee 2,968
fund. The accumulated contributions of a member or of a teacher 2,969
who qualifies for a benefit under section 3307.381 3307.35 of the 2,970
Revised Code shall be transferred at his THE MEMBER'S OR 2,972
TEACHER'S retirement from the teachers' savings fund to the 2,974
annuity and pension reserve fund. The accumulated contributions 2,975
of a member who dies prior to superannuation retirement that are 2,976
forfeited by the qualified beneficiary in exchange for monthly 2,977
survivor benefits, as provided by section 3307.49 3307.66 of the 2,978
Revised Code, shall be transferred to the survivors' benefit 2,980
fund. The accumulated contributions of a superannuate or other 2,981
system retirant as defined in section 3307.381 3307.35 of the 2,982
Revised Code shall be transferred to the survivors' benefit fund 2,984
for payment of a lump-sum benefit to a beneficiary as provided in 2,985
THAT section 3307.381 of the Revised Code. AS USED IN THIS 2,986
DIVISION, "ACCUMULATED CONTRIBUTIONS" HAS THE SAME MEANING AS IN 2,987
SECTION 3307.50 OF THE REVISED CODE.
(B) The "employers' trust fund" is the fund to which the 2,989
employer contribution MADE ON BEHALF OF A TEACHER PARTICIPATING 2,990
IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE 2,991
REVISED CODE shall be credited and in which shall be accumulated 2,993
the reserves held in trust for the payment of all pensions or 2,994
other benefits provided by sections 3307.38 3307.35, 3307.381 2,996
3307.58, 3307.39 3307.59, 3307.43 3307.60, 3307.431 3307.63, 2,997
3307.49 3307.631, 3307.50 3307.66, 3307.70 3307.6912, and 3307.78 3,000
3307.98 of the Revised Code, to teachers retiring or receiving 3,002
disability benefits in the future or to their qualified
beneficiaries, and from which the reserves for such pensions and 3,003
68
other benefits shall be transferred to the annuity and pension 3,004
reserve fund and to the survivors' benefit fund. The balances as 3,005
of August 31, 1957, in the employers accumulation fund shall be 3,006
transferred to this fund. As of September 1, 1957, an additional 3,007
amount shall be transferred from the employers' trust fund to the 3,008
annuity and pension reserve fund in the amount required to 3,009
complete the funding of the prior service, AS DEFINED IN SECTION 3,010
3307.50 OF THE REVISED CODE, and military service pensions then 3,012
payable.
(C) The "annuity and pension reserve fund" is the fund 3,014
from which shall be paid all annuities, pensions, and disability 3,015
benefits UNDER THE PLAN DESCRIBED IN SECTION 3307.50 TO 3307.79 3,016
OF THE REVISED CODE for which reserves have been transferred from 3,017
the teachers' savings fund and the employers' trust fund. 3,018
(D) The "survivors' benefit fund" is the fund from which 3,020
shall be paid the survivors' benefits provided by section 3307.49 3,021
3307.66 of the Revised Code and the lump sum payment to 3,023
beneficiaries as provided in section 3307.381 3307.35 of the 3,024
Revised Code, and to which shall be transferred from the 3,026
employers' trust fund the amount required to fund all liabilities 3,027
as of the end of each year.
(E) The "guarantee fund" is the fund from which interest 3,029
is transferred and credited on the amounts in the funds described 3,030
in divisions (A), (B), (C), and (D) of this section, and is a 3,031
contingent fund from which the special requirements of said funds 3,032
may be paid by transfer from this fund. All income derived from 3,033
the investment of funds by the state teachers retirement board as 3,034
trustee under section 3307.15 of the Revised Code, together with 3,035
all gifts and bequests, or the income therefrom, shall be paid 3,036
into this fund. 3,037
Any deficit occurring in any other fund that will not be 3,039
covered by payments to that fund, as otherwise provided in this 3,040
chapter, shall be paid by transfers of amounts from the guarantee 3,041
fund to such fund or funds. Should the amount in the guarantee 3,042
69
fund be insufficient at any time to meet the amounts payable 3,043
therefrom, the amount of such deficiency, with regular interest, 3,044
shall be paid by an additional employer rate of contribution as 3,045
determined by the actuary and shall be approved by the state 3,046
teachers retirement board, and the amount of such additional 3,047
employer contribution shall be credited to the guarantee fund. 3,048
The state teachers retirement board may accept gifts and 3,050
bequests. Any funds that may come into the possession of the 3,051
state teachers retirement board in this manner or that may be 3,052
transferred from the teachers' savings fund by reason of lack of 3,053
a claimant, or any surplus in any fund created by IN DIVISIONS 3,055
(A) TO (F) OF this section, or any other funds whose disposition 3,056
is not otherwise provided for, shall be credited to the guarantee 3,057
fund.
(F) The expense fund is the fund from which shall be paid 3,059
the expenses for the administration and management of the state 3,060
teachers retirement system as provided by this chapter. 3,061
(G) THE "DEFINED CONTRIBUTION FUND" IS THE FUND IN WHICH 3,063
SHALL BE ACCUMULATED THE CONTRIBUTIONS DEDUCTED FROM THE 3,064
COMPENSATION OF TEACHERS PARTICIPATING IN A PLAN ESTABLISHED 3,065
UNDER SECTION 3307.81 OF THE REVISED CODE, AS PROVIDED IN SECTION 3,067
3307.26 OF THE REVISED CODE, TOGETHER WITH ANY EARNINGS AND 3,069
EMPLOYER CONTRIBUTIONS CREDITED THEREON.
Sec. 3307.66 3307.141. Wherever in sections 3307.01 to 3,078
3307.72, inclusive, of the Revised Code THIS CHAPTER, reference 3,080
is made to the teachers' savings fund, the employers' normal 3,082
accumulation fund, the employers' deficiency accumulation TRUST 3,083
fund, the annuity and pension reserve fund, the guarantee fund, 3,084
the survivors' benefit fund, or the expense fund, OR THE DEFINED 3,085
CONTRIBUTION FUND, such reference shall be construed to have been 3,086
made to each as a separate legal entity. This section does not 3,087
prevent the deposit or investment of all such moneys intermingled 3,088
for such purpose but such funds shall be separate and distinct 3,089
legal entities for all other purposes.
70
Sec. 3307.651 3307.142. (A) Interest compounded annually 3,099
shall be credited to the accounts of members PARTICIPATING IN THE 3,100
PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE 3,101
and to the various funds LISTED IN DIVISIONS (A) TO (F) OF 3,102
SECTION 3307.14 OF THE REVISED CODE, and shall be assumed in
determining actuarial factors, at rates recommended by the 3,104
actuary and approved by the STATE TEACHERS retirement board, but 3,105
not less than three and twenty-five hundredths per cent effective 3,107
September 1, 1965, except as follows:
(1) For the years stated the rates shall be as follows: 3,109
Years Rates 3,111
9-1-1920/8-31-1955 4.00% 3,112
9-1-1955/8-31-1963 3.00 3,113
9-1-1963/8-31-1965 3.25 3,114
(2) Subsequent to August 31, 1959, interest shall be 3,117
credited to accounts only at retirement. 3,119
(3) If the amount of the account at retirement is not a 3,121
factor in determining the allowance, interest shall not be 3,122
credited to such account after September 1, 1964. 3,123
(4) The actuary shall estimate the amount of interest 3,125
reserve required in the teachers savings fund for credit to 3,126
accounts when interest is to be a factor in determining the 3,127
allowance, and the balance of the interest reserve in such fund 3,128
shall be transferred to the employers trust fund as of September
1, 1965.
(B) INTEREST SHALL BE CREDITED TO THE ACCOUNTS OF MEMBERS 3,130
PARTICIPATING IN A PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE 3,131
REVISED CODE AND TO THE DEFINED CONTRIBUTION FUND IN ACCORDANCE 3,132
WITH THAT PLAN.
Sec. 3307.15. (A) The members of the state teachers 3,141
retirement board shall be the trustees of the funds created by 3,142
section 3307.65 3307.14 of the Revised Code. The board shall 3,143
have full power to invest the funds. The board and other 3,145
fiduciaries shall discharge their duties with respect to the 3,146
71
funds solely in the interest of the participants and 3,147
beneficiaries; for the exclusive purpose of providing benefits to 3,148
participants and their beneficiaries and defraying reasonable 3,149
expenses of administering the system; with care, skill, prudence, 3,150
and diligence under the circumstances then prevailing that a 3,151
prudent person acting in a like capacity and familiar with these 3,152
matters would use in the conduct of an enterprise of a like 3,154
character and with like aims; and by diversifying the investments 3,155
of the system so as to minimize the risk of large losses, unless 3,156
under the circumstances it is clearly prudent not to do so. 3,157
To facilitate investment of the funds, the board may 3,159
establish a partnership, trust, limited liability company, 3,160
corporation, including a corporation exempt from taxation under 3,161
the Internal Revenue Code, 100 Stat. 2085, 26 U.S.C. 1, as 3,163
amended, or any other legal entity authorized to transact
business in this state. 3,164
(B) In exercising its fiduciary responsibility with 3,166
respect to the investment of the funds, it shall be the intent of 3,167
the board to give consideration to investments that enhance the 3,168
general welfare of the state and its citizens where the 3,169
investments offer quality, return, and safety comparable to other 3,171
investments currently available to the board. In fulfilling this 3,172
intent, equal consideration shall also be given to investments 3,173
otherwise qualifying under this section that involve minority 3,174
owned and controlled firms and firms owned and controlled by 3,175
women, either alone or in joint venture with other firms. 3,176
The board shall adopt, in regular meeting, policies, 3,178
objectives, or criteria for the operation of the investment 3,179
program that include asset allocation targets and ranges, risk 3,180
factors, asset class benchmarks, time horizons, total return 3,181
objectives, and performance evaluation guidelines. In adopting 3,183
policies and criteria for the selection of agents with whom the 3,184
board may contract for the administration of the funds, the board 3,185
shall give equal consideration to minority owned and controlled 3,186
72
firms, firms owned and controlled by women, and ventures 3,187
involving minority owned and controlled firms and firms owned and 3,188
controlled by women that otherwise meet the policies and criteria 3,189
established by the board. Amendments and additions to the 3,190
policies and criteria shall be adopted in regular meeting. The 3,191
board shall publish its policies, objectives, and criteria under 3,192
this provision no less often than annually and shall make copies 3,194
available to interested parties.
When reporting on the performance of investments, the board 3,196
shall comply with the performance presentation standards 3,197
established by the association for investment management and 3,198
research.
(C) All bonds, notes, certificates, stocks, or other 3,201
evidences of investments purchased by the board shall be 3,203
delivered to the treasurer of state, who is hereby designated as 3,204
custodian thereof, or to the treasurer of state's authorized 3,205
agent, and the treasurer of state or the agent shall collect the 3,207
principal, interest, dividends, and distributions that become due 3,210
and payable and place them when so collected into the custodial 3,211
funds. Evidences of title of the investments may be deposited by 3,213
the treasurer of state for safekeeping with an authorized agent, 3,214
selected by the treasurer of state, who is a qualified trustee 3,215
under section 135.18 of the Revised Code. The treasurer of state 3,216
shall pay for the investments purchased by the retirement board 3,219
on receipt of written or electronic instructions from the board 3,221
or the board's designated agent authorizing the purchase and 3,223
pending receipt of the evidence of title of the investment by the
treasurer of state or the treasurer of state's authorized agent. 3,224
The board may sell investments held by the board, and the 3,225
treasurer of state or the treasurer of state's authorized agent 3,226
shall accept payment from the purchaser and deliver evidence of 3,227
title of the investment to the purchaser on receipt of written or 3,228
electronic instructions from the board or the board's designated
agent authorizing the sale, and pending receipt of the moneys for 3,231
73
the investments. The amount received shall be placed into the 3,233
custodial funds. The board and the treasurer of state may enter 3,234
into agreements to establish procedures for the purchase and sale 3,235
of investments under this division and the custody of the
investments. 3,236
(D) No purchase or sale of any investment shall be made 3,239
under this section except as authorized by the state teachers
retirement board. 3,240
(E) Any statement of financial position distributed by the 3,242
board shall include the fair value, as of the statement date, of 3,245
all investments held by the board under this section.
Sec. 3307.111 3307.151. The state teachers retirement 3,254
system shall make no investments through, purchases from, or 3,257
otherwise do any business with any individual who is, or any 3,258
partnership, association, or corporation that is owned or
controlled by, a person, who within the preceding three years was 3,259
employed by, an officer, or a board member of the system or in 3,260
which a person, who within the preceding three years was employed 3,261
by, a board member of, or an officer of the system holds a 3,262
fiduciary, administrative, supervisory or trust position, or any 3,263
other position in which such person would be involved, on behalf
of his THE PERSON'S employer, in decisions or recommendations 3,265
affecting the investment policy of the state teachers retirement 3,266
system, and in which such person would benefit by any monetary 3,268
gain.
Sec. 3307.14 3307.181. (A) Except as provided in division 3,277
(B) of this section, a fiduciary shall not cause the state 3,279
teachers retirement system to engage in a transaction, if he THE 3,280
FIDUCIARY knows or should know that such transaction constitutes 3,282
a direct or indirect: 3,283
(1) Sale or exchange, or leasing, of any property between 3,285
the system and a party in interest; 3,286
(2) Lending of money or other extension of credit between 3,288
the system and a party in interest; 3,289
74
(3) Furnishing of goods, services, or facilities between 3,291
the system and a party in interest; 3,292
(4) Transfer to, or use by or for the benefit of a party 3,294
in interest, of any assets of the system; or 3,295
(5) Acquisition, on behalf of the system, of any employer 3,297
security or employer real property. 3,298
(B) Nothing in this section shall prohibit any transaction 3,300
between the state teachers retirement system and any fiduciary or 3,301
party in interest if: 3,302
(1) All the terms and conditions of the transaction are 3,304
comparable to the terms and conditions which might reasonably be 3,305
expected in a similar transaction between similar parties who are 3,306
not parties in interest; and 3,307
(2) The transaction is consistent with the fiduciary 3,309
duties described in Chapter 3307. of the Revised Code. 3,310
(C) A fiduciary shall not: 3,312
(1) Deal with the assets of the system in his THE 3,314
FIDUCIARY'S own interest or for his THE FIDUCIARY'S own account; 3,316
(2) In his THE FIDUCIARY'S individual or in any other 3,318
capacity act in any transaction involving the system on behalf of 3,320
a party (or represent a party) whose interests are adverse to the 3,321
interests of the system or the interests of its participants or 3,322
beneficiaries; or 3,323
(3) Receive any consideration for his THE FIDUCIARY'S own 3,325
personal account from any party dealing with such system in 3,327
connection with a transaction involving the assets of the system. 3,328
(D) In addition to any liability which he THE FIDUCIARY 3,330
may have under any other provision, a fiduciary with respect to 3,332
the system shall be liable for a breach of fiduciary 3,333
responsibility of any fiduciary with respect to the system in the 3,334
following circumstances: 3,335
(1) If he THE FIDUCIARY participates knowingly in, or 3,337
knowingly undertakes to conceal, an act or omission of such other 3,338
fiduciary, knowing such act or omission is a breach; 3,339
75
(2) If, by his THE FIDUCIARY'S failure to comply with 3,341
Chapter 3307. of the Revised Code, he THE FIDUCIARY has enabled 3,343
such other fiduciary to commit a breach; or 3,345
(3) If he THE FIDUCIARY has knowledge of a breach by such 3,347
other fiduciary, unless he THE FIDUCIARY makes reasonable efforts 3,348
under the circumstances to remedy the breach. 3,350
(E) Every fiduciary of the system shall be bonded or 3,352
insured to an amount of not less than one million dollars for 3,353
loss by reason of acts of fraud or dishonesty. 3,354
Sec. 3307.19. The state teachers retirement board shall 3,363
provide for the maintenance of an individual account with FOR 3,364
each contributor MEMBER showing the amount of his THE MEMBER'S 3,367
contributions and the interest ANY accumulations thereon. It 3,369
shall collect and keep in convenient form such data as is 3,371
necessary for the preparation of the required mortality and 3,372
service tables, and for the compilation of such other information 3,373
as is required for the actuarial valuation of the assets and 3,374
liabilities of the various funds created by section 3307.65 of 3,375
the Revised Code. Upon the basis of the mortality and service 3,376
experience of the members, retirants, and beneficiaries of the 3,377
state teachers retirement system, and other system retirants 3,378
contributing in accordance with section 3307.381 of the Revised 3,379
Code, the board shall adopt the tables to be used for valuation 3,380
purposes and for determining the amount of annuities to be 3,381
allowed on the basis of the contributions. 3,382
Sec. 3307.21 3307.20. (A) The treasurer of state shall 3,391
furnish annually to the state teachers retirement board a sworn 3,393
statement of the amount of the funds in the treasurer's custody 3,394
belonging to the state teachers retirement system. 3,395
(B)(1) As used in this division, "personal SECTION: 3,397
(1) "PERSONAL history record" means information maintained 3,400
by the STATE TEACHERS RETIREMENT board on a member, former 3,401
member, contributor, former contributor, retirant, or beneficiary 3,402
that includes the address, telephone number, social security 3,403
76
number, record of contributions, correspondence with the STATE 3,404
TEACHERS RETIREMENT system, or other information the board 3,406
determines to be confidential.
(2) "RETIRANT" HAS THE SAME MEANING AS IN SECTION 3307.50 3,408
OF THE REVISED CODE.
(B) The records of the board shall be open to public 3,410
inspection, except for the following, which shall be excluded, 3,411
except with the written authorization of the individual 3,412
concerned: 3,413
(a)(1) The individual's personal records provided for in 3,415
section 3307.29 3307.23 of the Revised Code; 3,416
(b)(2) The individual's personal history record; 3,418
(c)(3) Any information identifying, by name and address, 3,420
the amount of a monthly allowance or benefit paid to the 3,421
individual.
(C) All medical reports and recommendations under sections 3,423
3307.42 3307.62, 3307.44 3307.64, and 3307.49 3307.66 of the 3,425
Revised Code are privileged, except that copies of such medical 3,426
reports or recommendations shall be made available to the 3,427
personal physician, attorney, or authorized agent of the 3,428
individual concerned upon written release received from the 3,429
individual or the individual's agent, or, when necessary for the 3,430
proper administration of the fund, to the board assigned 3,431
physician.
(D) Any person who is a member or contributor of the 3,433
system shall be furnished, on written request, with a statement 3,435
of the amount to the credit of the person's account. The board 3,436
need not answer more than one request of a person in any one 3,437
year.
(E) Notwithstanding the exceptions to public inspection in 3,439
division (B)(2) of this section, the board may furnish the 3,440
following information: 3,441
(1) If a member, former member, retirant, contributor, or 3,443
former contributor is subject to an order issued under section 3,444
77
2907.15 of the Revised Code or is convicted of or pleads guilty 3,445
to a violation of section 2921.41 of the Revised Code, on written 3,446
request of a prosecutor as defined in section 2935.01 of the 3,447
Revised Code, the board shall furnish to the prosecutor the 3,448
information requested from the individual's personal history 3,449
record. 3,450
(2) Pursuant to a court or administrative order issued 3,452
under section 3111.23 or 3113.21 of the Revised Code, the board 3,453
shall furnish to a court or child support enforcement agency the 3,454
information required under that section. 3,455
(3) At the written request of any person, the board shall 3,457
provide to the person a list of the names and addresses of 3,458
members, former members, retirants, contributors, former 3,459
contributors, or beneficiaries. The costs of compiling, copying, 3,460
and mailing the list shall be paid by such person. 3,461
(4) Within fourteen days after receiving from the director 3,463
of human services a list of the names and social security numbers 3,464
of recipients of public assistance pursuant to section 5101.181 3,465
of the Revised Code, the board shall inform the auditor of state 3,466
of the name, current or most recent employer address, and social 3,467
security number of each member whose name and social security 3,468
number are the same as that of a person whose name or social 3,469
security number was submitted by the director. The board and its 3,470
employees shall, except for purposes of furnishing the auditor of 3,471
state with information required by this section, preserve the 3,472
confidentiality of recipients of public assistance in compliance 3,473
with division (A) of section 5101.181 of the Revised Code. 3,474
(F) A statement that contains information obtained from 3,476
the system's records that is signed by an officer of the 3,477
retirement system and to which the system's official seal is 3,478
affixed, or copies of the system's records to which the signature 3,479
and seal are attached, shall be received as true copies of the 3,480
system's records in any court or before any officer of this 3,481
state. 3,482
78
THIS IS AN INTERIM SECTION EFFECTIVE UNTIL JULY 1, 2000. 3,484
Sec. 3307.58 3307.21. Each employer, before employing any 3,493
teacher to whom sections 3307.01 to 3307.72, inclusive, of the 3,495
Revised Code, THIS CHAPTER applies, shall notify such person of 3,497
his THE PERSON'S duties and obligations under such sections THIS 3,498
CHAPTER as a condition of his THE PERSON'S employment. 3,500
Any such appointment or reappointment of any teacher in the 3,502
public day schools of the state, or service upon indefinite 3,503
tenure, shall be conditioned upon the teacher's acceptance of 3,504
such sections THIS CHAPTER, as a part of the contract. 3,505
Sec. 3307.59 3307.211. During September of each year, or 3,514
at such other time as the state teachers retirement board 3,516
approves, each employer shall certify to the board the names of 3,517
all teachers to whom sections 3307.01 to 3307.72, inclusive, of 3,518
the Revised Code, apply THIS CHAPTER APPLIES.
Sec. 3307.60 3307.212. Each employer shall on the first 3,527
day of each calendar month, or at such less frequent intervals as 3,529
the state teachers retirement board approves, notify the board of 3,530
the employment of new teachers, removals, withdrawals, and 3,531
changes in compensation of teachers that have occurred during the 3,532
month preceding or the period since the period covered by the
last notification. 3,533
NOT LATER THAN TEN DAYS AFTER THE DATE OF HIRE, EACH 3,535
EMPLOYER SHALL NOTIFY THE BOARD OF THE EMPLOYMENT OF A NEW 3,536
TEACHER. NOTICE SHALL BE ON A FORM PROVIDED BY THE BOARD. 3,537
Sec. 3307.63 3307.213. Each employer shall keep such 3,546
records and shall furnish such information and assistance to the 3,548
state teachers retirement board as it requires in the discharge 3,549
of its duties.
Sec. 3307.214. ON RECEIPT OF NOTICE UNDER SECTION 3307.212 3,551
OF THE REVISED CODE OF THE EMPLOYMENT OF A NEW TEACHER, THE STATE 3,552
TEACHERS RETIREMENT SYSTEM SHALL INFORM THE TEACHER OF THE 3,553
REQUIREMENTS OF SECTION 3307.25 OF THE REVISED CODE AND THE
PROVISIONS OF SECTIONS 3307.88 AND 3307.881 OF THE REVISED CODE. 3,554
79
Sec. 3307.29 3307.23. Each teacher, upon becoming 3,563
employed, shall file a detailed statement of all his THE 3,565
TEACHER'S previous service as a teacher and of such other service 3,566
as comes under this chapter, and shall furnish such other facts 3,567
as the state teachers retirement board requires for the proper 3,568
operation of the state teachers retirement system. If a teacher 3,569
fails to file the required membership record within ninety days 3,570
after becoming employed, the secretary shall so advise his THE 3,571
TEACHER'S employer who shall thereafter withhold all salary 3,572
payments to such teacher until such record is filed with the 3,573
state teachers retirement board. 3,574
Sec. 3307.30 3307.231. To the extent to which it is used 3,583
in determining the liability of any fund created by section 3,585
3307.65 3307.14 of the Revised Code, the state teachers 3,586
retirement board shall verify the statement provided for in 3,587
section 3307.29 3307.23 of the Revised Code by the best evidence 3,589
it is able to obtain. If official records are not available as 3,590
to the length of service, compensation, or other information 3,591
required, the board may use its discretion as to the evidence to
be accepted. 3,592
Sec. 3307.27 3307.24. The state teachers retirement board 3,601
may deny the right to contribute or the right to become members 3,603
to any class of teachers whose compensation is partly paid by the 3,604
state, who are not serving on a per annum basis, who are on a 3,605
temporary basis, or who are not required to have an educator 3,606
license, and it may also make optional with teachers in any such
class their right to contribute, or their right to individual 3,607
entrance into membership. 3,608
The state teachers retirement board may at any time deny 3,610
the right to contribute or the right to membership to any teacher 3,611
whose compensation, though disbursed by an employer, is 3,612
reimbursed to the employer, in whole or in part, from other than 3,613
public funds.
Sec. 3307.26 3307.241. Members of a local district pension 3,622
80
system maintained under the laws of the state from appropriations 3,624
or contributions made wholly or in part by any employer and 3,625
existing on August 8, 1919, are hereby excluded from membership 3,626
in the state teachers retirement system.
If a majority of all the teachers participating in any such 3,628
local district pension system apply for membership in the state 3,629
teachers retirement system by a petition duly signed and 3,630
verified, approved by their employer, and filed with the state 3,631
teachers retirement board, all the teachers included in the
membership of such local district pension system shall become 3,632
members of the state teachers retirement system at such time 3,633
within three months after the filing of such petition and the 3,634
compliance with sections 3307.01 to 3307.72, inclusive, of the 3,636
Revised Code THIS CHAPTER, relative to the dissolution and 3,637
discontinuance of such local district pension system as the board 3,638
designates.
Sec. 3307.25. (A) AN INDIVIDUAL WHO BECOMES A MEMBER OF 3,640
THE STATE TEACHERS RETIREMENT SYSTEM ON OR AFTER THE DATE ON 3,642
WHICH THE STATE TEACHERS RETIREMENT BOARD ESTABLISHES A PLAN 3,643
UNDER SECTION 3307.81 OF THE REVISED CODE SHALL MAKE AN ELECTION 3,644
UNDER THIS SECTION. NOT LATER THAN ONE HUNDRED EIGHTY DAYS AFTER 3,645
THE DATE ON WHICH EMPLOYMENT BEGINS, THE INDIVIDUAL SHALL ELECT 3,646
TO PARTICIPATE EITHER IN THE PLAN DESCRIBED IN SECTIONS 3307.50 3,647
TO 3307.79 OF THE REVISED CODE OR ONE OF THE PLANS ESTABLISHED 3,649
UNDER SECTION 3307.81 OF THE REVISED CODE. IF A FORM EVIDENCING 3,650
AN ELECTION UNDER THIS SECTION IS NOT ON FILE WITH THE EMPLOYER 3,651
AT THE END OF THE ONE-HUNDRED-EIGHTY-DAY PERIOD, THE INDIVIDUAL 3,653
IS DEEMED TO HAVE ELECTED TO PARTICIPATE IN THE PLAN DESCRIBED IN 3,655
SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE. 3,656
(B) AN ELECTION UNDER THIS SECTION SHALL BE MADE IN 3,658
WRITING ON A FORM PROVIDED BY THE RETIREMENT SYSTEM AND FILED 3,659
WITH THE EMPLOYER'S PERSONNEL OFFICER. NOT LATER THAN TEN DAYS 3,661
AFTER RECEIVING THE FORM EVIDENCING THE ELECTION, THE EMPLOYER 3,662
SHALL TRANSMIT TO THE SYSTEM A COPY THAT INCLUDES A STATEMENT 3,663
81
CERTIFYING THAT IT IS A TRUE AND ACCURATE COPY OF THE ORIGINAL. 3,664
(C) AN ELECTION UNDER THIS SECTION SHALL TAKE EFFECT ON 3,666
THE DATE EMPLOYMENT BEGAN AND, EXCEPT AS PROVIDED IN SECTION 3,667
3307.88 OF THE REVISED CODE, IS IRREVOCABLE ON RECEIPT BY THE 3,668
EMPLOYER. 3,669
(D) AN INDIVIDUAL IS INELIGIBLE TO MAKE AN ELECTION UNDER 3,671
THIS SECTION IF ONE OF THE FOLLOWING APPLIES: 3,672
(1) AT THE TIME EMPLOYMENT BEGINS, THE INDIVIDUAL IS 3,674
ALREADY A MEMBER OR CONTRIBUTOR PARTICIPATING IN THE PLAN 3,675
DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE OR A 3,676
SUPERANNUATE OF THE SYSTEM; 3,678
(2) AN ELECTION TO PARTICIPATE IN AN ALTERNATIVE 3,680
RETIREMENT PLAN UNDER SECTION 3305.05 OF THE REVISED CODE IS IN 3,681
EFFECT FOR EMPLOYMENT COVERED BY THE SYSTEM. 3,682
Sec. 3307.251. AS USED IN THIS SECTION, "ACCUMULATED 3,684
CONTRIBUTIONS" AND "TOTAL SERVICE CREDIT" HAVE THE SAME MEANINGS 3,685
AS IN SECTION 3307.50 OF THE REVISED CODE. 3,686
(A) A MEMBER OF THE STATE TEACHERS RETIREMENT SYSTEM WHO, 3,688
AS OF THE THIRTIETH DAY OF JUNE IMMEDIATELY PRECEDING THE DATE ON 3,690
WHICH THE SYSTEM ESTABLISHES A PLAN UNDER SECTION 3307.81 OF THE 3,692
REVISED CODE, HAS LESS THAN FIVE YEARS OF TOTAL SERVICE CREDIT IS 3,693
ELIGIBLE TO MAKE AN ELECTION UNDER THIS SECTION.
NOT LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE DAY THE 3,695
BOARD FIRST ESTABLISHES ONE OR MORE PLANS UNDER SECTION 3307.81 3,696
OF THE REVISED CODE, AN ELIGIBLE MEMBER MAY ELECT TO PARTICIPATE 3,698
IN A PLAN ESTABLISHED UNDER THAT SECTION. IF AN ELECTION IS NOT 3,699
MADE, A MEMBER TO WHOM THIS SECTION APPLIES IS DEEMED TO HAVE 3,701
ELECTED TO CONTINUE PARTICIPATING IN THE PLAN DESCRIBED IN 3,702
SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE. 3,703
(B) AN ELECTION UNDER THIS SECTION SHALL BE MADE IN 3,705
WRITING ON A FORM PROVIDED BY THE SYSTEM AND FILED WITH THE 3,706
SYSTEM.
(C) ON RECEIPT OF AN ELECTION UNDER THIS SECTION, THE 3,708
SYSTEM SHALL DO BOTH OF THE FOLLOWING: 3,709
82
(1) CREDIT TO THE ACCOUNT OF THE MEMBER IN THE DEFINED 3,711
CONTRIBUTION FUND THE ACCUMULATED CONTRIBUTIONS STANDING TO THE 3,712
MEMBER'S CREDIT IN THE TEACHERS' SAVINGS FUND, PLUS AN AMOUNT 3,713
CALCULATED UNDER SECTION 3307.563 OF THE REVISED CODE; 3,714
(2) CANCEL ALL SERVICE CREDIT AND ELIGIBILITY FOR ANY 3,716
PAYMENT, BENEFIT, OR RIGHT UNDER THE PLAN DESCRIBED IN SECTIONS 3,717
3307.50 TO 3307.79 OF THE REVISED CODE. 3,718
(D) AN ELECTION UNDER THIS SECTION SHALL BE IRREVOCABLE ON 3,721
RECEIPT BY THE SYSTEM. 3,722
Sec. 3307.252. A MEMBER OF THE STATE TEACHERS RETIREMENT 3,724
SYSTEM WHO ELECTS TO PARTICIPATE IN A PLAN ESTABLISHED UNDER 3,725
SECTION 3307.81 OF THE REVISED CODE SHALL BE INELIGIBLE FOR ANY 3,727
BENEFIT OR PAYMENT UNDER SECTIONS 3307.50 TO 3307.79 OF THE 3,728
REVISED CODE AND, EXCEPT AS PROVIDED IN SECTION 3307.88 OF THE 3,730
REVISED CODE, SHALL BE FOREVER BARRED FROM CLAIMING OR PURCHASING 3,732
SERVICE CREDIT WITH THE SYSTEM OR ANY OTHER OHIO STATE RETIREMENT 3,733
SYSTEM, AS DEFINED IN SECTION 3307.741 OF THE REVISED CODE, FOR 3,734
SERVICE COVERED BY THE ELECTION. 3,735
Sec. 3307.51 3307.26. Each teacher shall contribute eight 3,744
per cent of his THE TEACHER'S earned compensation to the 3,746
teachers' savings fund, except that the state teachers retirement 3,748
board may raise the contribution rate to the fund to a rate not 3,749
greater than ten per cent of the teacher's earned compensation. 3,750
Such FOR TEACHERS PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3,751
3307.50 TO 3307.79 OF THE REVISED CODE, CONTRIBUTIONS SHALL BE 3,753
DEPOSITED IN THE TEACHERS' SAVINGS FUND. FOR TEACHERS 3,754
PARTICIPATING IN A PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE 3,755
REVISED CODE, CONTRIBUTIONS SHALL BE DEPOSITED IN THE DEFINED 3,757
CONTRIBUTION FUND. CONTRIBUTIONS MADE PURSUANT TO THIS SECTION 3,758
SHALL NOT EXCEED THE LIMITS ESTABLISHED BY SECTION 415 OF THE 3,759
"INTERNAL REVENUE CODE OF 1986," 100 STAT. 2085, 26 U.S.C.A. 415, 3,763
AS AMENDED.
THE contribution FOR ALL TEACHERS shall be deducted by the 3,767
employer on each payroll in an amount equal to the applicable per 3,768
83
cent of such contributors' THE TEACHERS' paid compensation for 3,770
such payroll period or other period as the state teachers 3,771
retirement board may approve, provided all. ALL CONTRIBUTIONS ON 3,772
EARNED COMPENSATION FOR TEACHERS PARTICIPATING IN PLANS
ESTABLISHED UNDER SECTION 3307.81 OF THE REVISED CODE SHALL BE 3,773
REMITTED AT INTERVALS REQUIRED BY THE STATE TEACHERS RETIREMENT 3,774
SYSTEM UNDER SECTION 3307.86 OF THE REVISED CODE. ALL
contributions on earned compensation are FOR TEACHERS 3,776
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3,777
3307.79 OF THE REVISED CODE SHALL BE remitted to the state 3,778
teachers retirement system by the thirtieth day of June of each 3,779
year. Each school district shall encumber sufficient moneys by 3,780
the thirtieth day of June of each year to account for the 3,781
difference, if any, that may exist between contributions that 3,782
would be withheld based upon compensation earned by a teacher 3,783
during the year ending the thirtieth day of June and the 3,784
contributions withheld based upon compensation paid to the 3,785
teacher for the year. Deductions from payroll for contributions 3,786
under this section, on an annual basis, shall not exceed eight 3,787
per cent or other percentage established by the state teachers 3,788
retirement board authorized by this section. 3,789
At retirement UNDER THE PLAN DESCRIBED IN SECTIONS 3307.50 3,791
TO 3307.79 OF THE REVISED CODE, or upon a member's death prior to 3,792
retirement UNDER THAT PLAN, if contributions have been made after 3,793
September 1, 1959, in excess of the contributions normally 3,795
required to provide the retirement or survivor benefit, such THE 3,796
excess contributions may be refunded to the member, to his THE 3,798
MEMBER'S beneficiary, or to his THE MEMBER'S estate in a lump 3,800
sum, or may be used to provide additional income.
The board may determine with regard to any member 3,802
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3,803
3307.79 OF THE REVISED CODE whether the limits established by 3,804
division (B)(3)(C) of section 3307.38 3307.58 OF THE REVISED CODE 3,805
have resulted in exclusion from use in the calculation of 3,807
84
benefits under section 3307.38 3307.58, 3307.39 3307.59, or 3,809
3307.50 3307.60 of the Revised Code of any compensation on which 3,810
contributions have been made under this section. The board may 3,811
adopt rules in accordance with section 111.15 of the Revised Code 3,812
providing for the disposition of contributions attributable to 3,813
such compensation and may dispose of the contributions in 3,814
accordance with those rules. Any disposition of contributions 3,815
made by the board in accordance with the rules shall be final. 3,816
The deductions UNDER THIS SECTION shall be made even though 3,818
the minimum compensation provided by law for any teacher shall be 3,819
reduced thereby. Every teacher shall be deemed to consent to the 3,820
deductions made and shall receipt in full for his salary or 3,822
compensation, and payment. PAYMENT less the deductions shall be 3,824
a complete discharge and acquittance of all claims and demands 3,825
for the services rendered by the person during the period covered 3,826
by the payment. 3,827
Additional deposits may be made to a member's account IN 3,829
THE TEACHERS' SAVINGS FUND OR DEFINED CONTRIBUTION FUND, subject 3,831
to rules of the board. At retirement, the amount deposited with 3,832
interest may be used to provide additional annuity income. The 3,833
additional deposits may be refunded to the member before 3,834
retirement, and shall be refunded if the member withdraws his THE 3,835
MEMBER'S refundable account. The deposits may be refunded to the 3,836
beneficiary or estate if the member dies before retirement. 3,837
Sec. 3307.511 3307.261. Except as otherwise provided in 3,846
section 124.385 of the Revised Code, any teacher who is granted 3,848
disability leave pursuant to a program sponsored by his THE 3,849
TEACHER'S employer, whereby the teacher receives a percentage of 3,850
his THE TEACHER'S salary while on disability leave, shall not be 3,851
required to make contributions for time off while on disability 3,852
leave.
Except as otherwise provided in section 124.385 of the 3,854
Revised Code, each employer described in division (A) of section 3,855
3307.01 of the Revised Code who sponsors a disability leave 3,856
85
program shall make the periodic employee and employer 3,857
contributions, in the amounts set pursuant to sections 3307.51
3307.26 and 3307.53 3307.28 of the Revised Code, for teachers 3,859
granted disability leave, based on the teacher's rate of pay in 3,861
effect at the time disability leave was granted.
Sec. 3307.27. THE CONTRIBUTIONS REQUIRED UNDER SECTION 3,863
3307.26 OF THE REVISED CODE MAY BE PAID BY THE EMPLOYER IN 3,864
ACCORDANCE WITH DIVISION (h) OF SECTION 414 OF THE "INTERNAL 3,867
REVENUE CODE OF 1986," 100 STAT. 2085, 26 U.S.C.A. 414(h), AS 3,870
AMENDED.
Sec. 3307.53 3307.28. Each employer shall pay annually to 3,879
the employers' trust fund STATE TEACHERS RETIREMENT SYSTEM an 3,880
amount certified by the secretary which shall be a certain per 3,882
cent of the earnable compensation of all members, and which shall 3,883
be known as the "employer contribution." The FOR MEMBERS 3,884
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3,885
3307.79 OF THE REVISED CODE, THE EMPLOYER CONTRIBUTION SHALL BE 3,887
DEPOSITED INTO THE EMPLOYERS' TRUST FUND. FOR MEMBERS
PARTICIPATING IN A PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE 3,889
REVISED CODE, THE EMPLOYER CONTRIBUTION SHALL BE DEPOSITED INTO 3,891
THE DEFINED CONTRIBUTION FUND IN ACCORDANCE WITH THE PLAN
SELECTED BY THE MEMBER, LESS THE AMOUNT TRANSFERRED UNDER SECTION 3,894
3307.84 OF THE REVISED CODE. 3,895
THE rate per cent of such THE contribution shall be fixed 3,898
by the actuary on the basis of his THE ACTUARY'S evaluation of 3,899
the liabilities of the state teachers retirement system, not to 3,901
exceed fourteen per cent, and shall be approved by the state 3,902
teachers retirement board. The state teachers retirement board 3,903
may raise the rate per cent of the contribution to fourteen per 3,904
cent of the earnable compensation of all members. In making such 3,905
evaluation, the actuary shall use, as the actuarial assumptions, 3,906
such interest rates and mortality and other tables as are adopted 3,907
by the state teachers retirement board. He THE ACTUARY shall 3,908
compute the percentage of such earnable compensation, to be known 3,910
86
as the "employer rate," required annually to fund the liability 3,911
for all benefits provided by this chapter UNDER SECTIONS 3307.50 3,912
TO 3307.79 OF THE REVISED CODE, after deducting therefrom the 3,913
annuity and other benefits provided by the member's accumulated 3,914
contributions, AS DEFINED IN SECTION 3307.50 OF THE REVISED CODE, 3,915
deposits, and other appropriations, and to fund any deficiencies 3,916
in the various funds described in DIVISIONS (A) TO (F) OF section 3,918
3307.65 3307.14 of the Revised Code. 3,919
Sec. 3307.61 3307.29. Each employer shall cause to be 3,928
deducted, on each payroll of a contributor for each payroll 3,930
period, the contribution payable by such contributor as provided 3,931
in sections 3307.01 to 3307.72, inclusive, of the Revised Code 3,932
THIS CHAPTER. Each employer shall certify to the treasurer of 3,933
said employer on each payroll a statement as voucher for the 3,934
amounts so deducted and for the amount of the normal contribution 3,935
and the deficiency contribution payable by the employer. Each 3,936
employer shall send a duplicate of such statement to the
secretary of the state teachers retirement board. 3,937
Sec. 3307.62 3307.291. The treasurer of each employer, on 3,947
receipt from the employer of the voucher for deductions from the 3,948
compensation of teachers and for the contributions of the 3,949
employer, shall transmit monthly or at such times as the state 3,951
teachers retirement board designates the amounts specified in
such voucher to the secretary of the board. The secretary of the 3,952
board, after making a record of all such receipts, shall pay them 3,954
to the treasurer of state for use according to sections 3307.01 3,956
to 3307.72 of the Revised Code THIS CHAPTER. 3,957
Sec. 3307.64 3307.30. Employers who obtain funds directly 3,966
by taxation shall levy annually such additional taxes as are 3,968
required to provide the additional funds necessary to meet the 3,969
financial requirements imposed upon them by sections 3307.01 to 3,970
3307.72, inclusive, of the Revised Code THIS CHAPTER, and said 3,971
tax shall be placed before and in preference to all other items 3,972
except for sinking fund or interest purposes. 3,973
87
Sec. 3307.56 3307.31. Payments by boards of education to 3,982
the employers' trust fund of the state teachers retirement 3,983
system, as provided in sections 3307.61 3307.29 and 3307.62 3,984
3307.291 of the Revised Code, shall be made from the amount 3,986
allocated under Chapter 3317. of the Revised Code prior to its 3,987
distribution to the individual school districts. The amount due 3,988
from each school district shall be certified by the secretary of 3,989
the system to the superintendent of public instruction monthly, 3,990
or at such times as may be determined by the state teachers 3,991
retirement board.
The superintendent shall deduct, from the amount allocated 3,993
to each district under Chapter 3317. of the Revised Code, the 3,994
entire amounts due to the system from such district upon the 3,995
certification to him THE SUPERINTENDENT by the secretary thereof. 3,997
The superintendent shall certify to the director of budget 3,999
and management the amounts thus due the system for payment. 4,000
Sec. 3307.75 3307.32. All amounts due the state teachers 4,009
retirement system from the state treasury pursuant to this 4,011
chapter shall be promptly paid upon warrant of the auditor of 4,012
state pursuant to a voucher approved by the director of budget
and management. 4,013
Sec. 3307.33. MEMBERSHIP IN THE STATE TEACHERS RETIREMENT 4,015
SYSTEM SHALL CEASE ON OCCURRENCE OF ANY OF THE FOLLOWING: 4,016
RECEIPT OF PAYMENT PURSUANT TO SECTION 3307.56 OF THE REVISED 4,017
CODE OR UNDER A PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE 4,019
REVISED CODE; RETIREMENT AS PROVIDED IN SECTIONS 3307.58 AND 4,020
3307.59 OF THE REVISED CODE OR UNDER A PLAN ESTABLISHED UNDER 4,022
SECTION 3307.81 OF THE REVISED CODE; DEATH; OR DENIAL OF 4,023
MEMBERSHIP PURSUANT TO SECTION 3307.24 OF THE REVISED CODE. 4,024
Sec. 3307.381 3307.35. (A) As used in this section: 4,033
(1) "Superannuate" means a former teacher receiving a 4,035
service retirement allowance under section 3307.38 or 3307.39 of 4,036
the Revised Code from the state teachers retirement system or a 4,037
combined service retirement benefit paid in accordance with 4,038
88
section 3307.41 of the Revised Code, regardless of which 4,039
retirement system is paying the benefit. 4,040
(2), "Other OTHER system retirant" means a member or former 4,043
member of the public employees retirement system, Ohio police and 4,045
fire pension fund, school employees retirement system, state 4,047
highway patrol retirement system, or Cincinnati retirement system 4,048
who is receiving age and service or commuted age and service 4,049
retirement, or a disability benefit from a system of which the 4,050
retirant is a member or former member.
(B) A superannuate may be employed for temporary service 4,052
as a teacher, provided: 4,053
(1) At least two months have elapsed since the effective 4,055
date of the superannuate's retirement UNDER THIS CHAPTER. 4,056
(2) Such employment does not exceed eighty-five school 4,058
days, or the equivalent thereof in fractional service, during any 4,059
school year. 4,060
(C) A superannuate may be employed as a full-time teacher, 4,062
provided: 4,063
(1) The superannuate has received a retirement AN 4,065
allowance OR BENEFIT from the state teachers retirement system 4,068
UNDER THIS CHAPTER for at least eighteen months. 4,069
(2) The employer requests the retirement board of the 4,071
state teachers retirement system to authorize such employment. 4,072
(D) An other system retirant may be employed as a teacher, 4,074
provided at least two months have elapsed since the effective 4,075
date of the retirant's retirement or receipt of a disability 4,076
benefit. 4,077
(E) If a superannuate or other system retirant is employed 4,079
in accordance with division (B), (C), or (D) of this section, the 4,081
superannuate or retirant shall contribute to the state teachers
retirement system in accordance with section 3307.51 3307.26 of 4,083
the Revised Code and the employer shall contribute in accordance 4,085
with sections 3307.53 3307.28 and 3307.56 3307.31 of the Revised 4,087
Code. Such contributions shall be received as specified in 4,089
89
section 3307.65 3307.14 of the Revised Code. A superannuate or 4,091
other system retirant employed as a teacher is not a member of 4,092
the state teachers retirement system, does not have any of the 4,093
rights, privileges, or obligations of membership, except as 4,094
provided in this section, and is not eligible to receive health, 4,095
medical, hospital, or surgical benefits under section 3307.74 4,096
3307.39 of the Revised Code for employment subject to this 4,098
section.
(F) The employer that employs a superannuate or other 4,100
system retirant shall notify the state teachers retirement board 4,101
of the employment not later than the end of the month in which 4,102
the employment commences. Any overpayment of benefits to a 4,103
superannuate by the retirement system resulting from an 4,104
employer's failure to give timely notice may be charged to the 4,105
employer and may be certified and deducted as provided in section 4,106
3307.56 3307.31 of the Revised Code. 4,107
(G) On receipt of notice from an employer that a person 4,109
who is an other system retirant has been employed, the state 4,110
teachers retirement system shall notify the state retirement 4,111
system of which the other system retirant was a member of such 4,112
employment. 4,113
(H) A superannuate or other system retirant who has 4,115
received a retirement AN allowance or disability benefit for less 4,118
than the applicable period under division (B), (C), or (D) of 4,119
this section when employment as a teacher commences shall forfeit 4,121
the retirement allowance or disability benefit for any month the 4,123
superannuate or retirant is employed prior to the expiration of 4,124
such period. Contributions shall be made to the retirement 4,125
system from the first day of such employment, but service and 4,126
contributions for that period shall not be used in the 4,127
calculation of any benefit payable to the superannuate or other 4,128
system retirant, and those contributions shall be refunded on the 4,129
superannuate's or retirant's death or termination of the 4,131
employment. Contributions made on compensation earned after the 4,132
90
expiration of such period shall be used in calculation of the
benefit or payment due under this section. 4,133
(I) On receipt of notice from the Ohio police and fire 4,136
pension fund, public employees retirement system, or school 4,138
employees retirement system of the re-employment of a
superannuate, the state teachers retirement system shall not pay, 4,139
or if paid shall recover, the amount to be forfeited by the 4,140
superannuate in accordance with section 145.38, 742.26, or 4,141
3309.341 of the Revised Code. 4,142
(J)(1) On termination of employment under this section, a 4,144
superannuate or other system retirant may file an application 4,145
with the state teachers retirement system for a benefit under 4,146
this division, which shall consist of a single life annuity 4,147
having a reserve equal to the amount of the superannuate's or 4,148
retirant's accumulated contributions, AS DEFINED IN SECTION 4,150
3307.50 OF THE REVISED CODE, for the period of employment and an 4,151
equal amount from the employers' trust created by section 3307.65 4,152
3307.14 of the Revised Code, plus interest credited to the date 4,154
of retirement at the then current actuarial rate of interest. 4,155
The superannuate or other system retirant shall elect either to 4,156
receive the benefit as a monthly annuity for life or a lump-sum 4,157
payment discounted to the present value using the current 4,158
actuarial assumption rate of interest, except that if the monthly 4,159
annuity would be less than twenty-five dollars per month the 4,161
superannuate or retirant shall receive a lump-sum payment. 4,163
(2) A benefit payable under this division shall commence 4,165
on the latest of the following: 4,166
(a) The last day for which compensation for employment as 4,168
a teacher was paid; 4,169
(b) Attainment by the superannuate or other system 4,171
retirant of age sixty-five; 4,172
(c) If the superannuate or other system retirant was 4,174
previously employed under this section and previously received or 4,175
is receiving a benefit under this division, completion of a 4,176
91
period of twelve months since the effective date of the last 4,177
benefit under this division. 4,178
(3)(a) If a superannuate or other system retirant dies 4,180
while employed in employment subject to this section, a lump-sum 4,181
payment calculated in accordance with division (J)(1) of this 4,182
section shall be paid to the beneficiary designated under 4,183
division (D) of section 3307.48 3307.562 of the Revised Code. 4,184
(b) If at the time of death a superannuate or other system 4,187
retirant receiving a monthly annuity has received less than the 4,188
superannuate or retirant would have received as a lump-sum 4,189
payment, the difference between the amount received and the 4,190
amount that would have been received as a lump-sum payment shall 4,192
be paid to the superannuate's or retirant's beneficiary 4,193
designated under division (D) of section 3307.48 3307.562 of the 4,195
Revised Code. 4,196
(4) No amount received under this section shall be 4,198
included in determining an additional benefit under section 4,199
3307.403 3307.67 of the Revised Code or any other post-retirement 4,201
benefit increase. 4,202
(K) If the disability benefit of an other system retirant 4,204
employed under this section is terminated, the retirant shall 4,205
become a member of the state teachers retirement system, 4,207
effective on the first day of the month next following the 4,208
termination, with all the rights, privileges, and obligations of 4,209
membership. If such person, after the termination of the 4,210
retirant's disability benefit, earns two years of service credit 4,212
under this retirement system or under the public employees 4,213
retirement system, Ohio police and fire pension fund, school 4,214
employees retirement system, or state highway patrol retirement 4,216
system, the retirant's prior contributions as an other system 4,218
retirant under this section shall be included in the retirant's 4,219
total service credit, AS DEFINED IN SECTION 3307.50 OF THE 4,220
REVISED CODE, as a state teachers retirement system member, and 4,222
the retirant shall forfeit all rights and benefits of this 4,224
92
section. Not more than one year of credit may be given for any 4,225
period of twelve months.
(L) A superannuate shall not receive the pension portions 4,227
of a retirement PORTION OF AN allowance OR BENEFIT THAT IS 4,228
ATTRIBUTABLE TO CONTRIBUTIONS MADE UNDER SECTION 3307.28 OF THE 4,229
REVISED CODE for any period for which the superannuate is 4,231
compensated under a private contract, or through an independent 4,232
contractor, whereby the superannuate is to perform personal or 4,234
professional services for the employer by which the superannuate 4,235
was employed at the time of retirement. 4,237
(M) This section does not affect the receipt of benefits 4,239
by or eligibility for benefits of any person who on August 20, 4,240
1976, was receiving a disability benefit or service retirement 4,241
pension or allowance from a state or municipal retirement system 4,242
in Ohio and was a member of any other state or municipal 4,243
retirement system of this state. 4,244
(N) The retirement board of the state teachers retirement 4,246
system BOARD may make the necessary rules to carry into effect 4,247
this section and to prevent the abuse of the rights and 4,249
privileges thereunder. 4,250
Sec. 3307.72 3307.37. (A) Notwithstanding any other 4,259
provision of this chapter, any payment that is to be made under a 4,261
pension, annuity, allowance, or other type of benefit PAYABLE 4,262
UNDER THIS CHAPTER, other than a survivorship benefit, that has 4,264
been granted to a person under this chapter, any payment of 4,265
accumulated contributions standing to a person's credit under 4,266
this chapter, and any payment of any other amounts to be paid to 4,267
a person under this chapter upon the person's withdrawal of 4,268
contributions pursuant to this chapter shall be subject to any 4,269
withholding order issued pursuant to section 2907.15 of the
Revised Code or division (C)(2)(b) of section 2921.41 of the 4,270
Revised Code, and the state teacher's retirement board shall 4,271
comply with that withholding order in making the payment. 4,272
(B) Notwithstanding any other provision of this chapter, 4,274
93
if the board receives notice pursuant to section 2907.15 of the 4,275
Revised Code or division (D) of section 2921.41 of the Revised 4,276
Code that a person who has accumulated contributions standing to 4,277
the person's credit pursuant to this chapter is charged with a 4,279
violation of section 2907.02, 2907.03, 2907.04, 2907.05, or 4,280
2921.41 of the Revised Code, no payment of those accumulated 4,281
contributions, of any other amounts to be paid under this chapter 4,282
upon the person's withdrawal of contributions pursuant to this 4,283
chapter, or of any amount to be paid as a lump sum or single 4,285
payment under section 3307.381 3307.35 of the Revised Code shall 4,286
be made prior to whichever of the following is applicable: 4,288
(1) If the person is convicted of or pleads guilty to the 4,290
charge and no motion for a withholding order for purposes of 4,291
restitution has been filed under section 2907.15 of the Revised 4,292
Code or division (C)(2)(b)(i) of section 2921.41 of the Revised 4,294
Code, thirty days after the day on which final disposition of the 4,295
charge is made;
(2) If the person is convicted of or pleads guilty to the 4,297
charge and a motion for a withholding order for purposes of 4,298
restitution has been filed under section 2907.15 of the Revised 4,300
Code or division (C)(2)(b)(i) of section 2921.41 of the Revised 4,302
Code, the day on which the court decides the motion; 4,303
(3) If the charge is dismissed or the person is found not 4,305
guilty or not guilty by reason of insanity of the charge, the day 4,306
on which final disposition of the charge is made. 4,307
Sec. 3307.74 3307.39. (A) The state teachers retirement 4,316
board may enter into an agreement with insurance companies, 4,318
health insuring corporations, or government agencies authorized 4,320
to do business in the state for issuance of a policy or contract 4,321
of health, medical, hospital, or surgical benefits, or any 4,322
combination thereof, for those individuals receiving, UNDER THE 4,323
PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED 4,324
CODE, service retirement or a disability or survivor benefit 4,326
subscribing WHO SUBSCRIBE to the plan. Notwithstanding any other 4,327
94
provision of this chapter, the policy or contract may also 4,328
include coverage for any eligible individual's spouse and 4,329
dependent children and for any of the individual's sponsored 4,330
dependents as the board considers appropriate. If all or any 4,332
portion of the policy or contract premium is to be paid by any 4,333
individual receiving service retirement or a disability or 4,334
survivor benefit, the individual shall, by written authorization, 4,335
instruct the board to deduct the premium agreed to be paid by the 4,337
individual to the companies, corporations, or agencies. 4,338
The board may contract for coverage on the basis of part or 4,341
all of the cost of the coverage to be paid from appropriate funds 4,342
of the state teachers retirement system. The cost paid from the 4,343
funds of the system shall be included in the employer's 4,345
contribution rate provided by section 3307.53 3307.28 of the 4,346
Revised Code. 4,347
THE BOARD MAY ENTER INTO AN AGREEMENT UNDER THIS DIVISION 4,349
FOR COVERAGE OF RECIPIENTS OF BENEFITS UNDER A PLAN ESTABLISHED 4,350
UNDER SECTION 3307.81 OF THE REVISED CODE IF THE PLAN SELECTED 4,351
INCLUDES HEALTH, MEDICAL, HOSPITAL, OR SURGICAL BENEFITS, OR ANY 4,352
COMBINATION THEREOF. THE BOARD MAY CONTRACT FOR COVERAGE ON THE 4,353
BASIS THAT THE COST OF THE COVERAGE WILL BE PAID BY THE RECIPIENT 4,355
OR BY THE PLAN TO WHICH THE RECIPIENT CONTRIBUTED UNDER THIS 4,356
CHAPTER. THE BOARD MAY OFFER TO RECIPIENTS PLANS THAT PROVIDE 4,357
FOR DIFFERENT LEVELS OF COVERAGE OR FOR PREPAYMENT OF THE COST OF 4,358
COVERAGE.
The board may provide for self-insurance of risk or level 4,360
of risk as set forth in the contract with the companies, 4,361
corporations, or agencies, and may provide through the 4,362
self-insurance method specific benefits as authorized by the 4,363
rules of the board. 4,364
(B) If the board provides health, medical, hospital, or 4,366
surgical benefits through any means other than a health insuring 4,368
corporation, it shall offer to each individual eligible for the 4,370
benefits the alternative of receiving benefits through enrollment 4,371
95
in a health insuring corporation, if all of the following apply: 4,373
(1) The health insuring corporation provides health care 4,376
services in the geographical area in which the individual lives; 4,378
(2) The eligible individual was receiving health care 4,380
benefits through a health maintenance organization or a health 4,382
insuring corporation before retirement; 4,383
(3) The rate and coverage provided by the health insuring 4,386
corporation to eligible individuals is comparable to that 4,389
currently provided by the board under division (A) of this
section. If the rate or coverage provided by the health insuring 4,391
corporation is not comparable to that currently provided by the 4,393
board under division (A) of this section, the board may deduct 4,394
the additional cost from the eligible individual's monthly 4,395
benefit.
The health insuring corporation shall accept as an enrollee 4,399
any eligible individual who requests enrollment.
The board shall permit each eligible individual to change 4,401
from one plan to another at least once a year at a time 4,402
determined by the board. 4,403
(C) The board shall, beginning the month following receipt 4,405
of satisfactory evidence of the payment for coverage, make a 4,406
monthly payment to each recipient of service retirement, or a 4,407
disability or survivor benefit under the state teachers 4,408
retirement system PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 4,409
OF THE REVISED CODE who is eligible for insurance coverage under 4,410
part B of "The Social Security Amendments of 1965," 79 Stat. 301, 4,411
42 U.S.C.A. 1395j, as amended, AND MAY MAKE A MONTHLY PAYMENT TO 4,413
A RECIPIENT OF BENEFITS UNDER A PLAN ESTABLISHED UNDER SECTION 4,414
3307.81 OF THE REVISED CODE WHO IS ELIGIBLE FOR THAT INSURANCE 4,415
COVERAGE IF THE MONTHLY PAYMENTS ARE FUNDED THROUGH THE PLAN 4,417
SELECTED BY THE RECIPIENT. The payment shall be the greater of 4,418
the following:
(1) Twenty-nine dollars and ninety cents; 4,420
(2) An amount determined by multiplying the basic premium 4,423
96
for the coverage by a percentage, not exceeding ninety per cent, 4,424
determined by multiplying the years of service used in 4,425
calculating the service retirement or benefit OR, IN THE CASE OF 4,426
A RECIPIENT OF BENEFITS UNDER A PLAN ESTABLISHED UNDER SECTION 4,427
3307.81 OF THE REVISED CODE, THE PARTICIPANT'S YEARS OF SERVICE
by a percentage determined by the board not exceeding three per 4,428
cent. 4,429
THE BOARD SHALL MAKE ALL PAYMENTS UNDER THIS DIVISION 4,431
BEGINNING THE MONTH FOLLOWING RECEIPT OF SATISFACTORY EVIDENCE OF 4,432
THE PAYMENT FOR THE COVERAGE. 4,433
(D) The board shall establish by rule requirements for the 4,435
coordination of any coverage, payment, or benefit provided under 4,437
this section or section 3307.405 3307.61 of the Revised Code with 4,439
any similar coverage, payment, or benefit made available to the 4,440
same individual by the public employees retirement system, Ohio 4,441
police and fire pension fund, school employees retirement system, 4,443
or state highway patrol retirement system. 4,444
(E) The board shall make all other necessary rules 4,446
pursuant to the purpose and intent of this section. 4,447
Sec. 3307.741 3307.391. The state teachers retirement 4,456
board shall establish a program under which members of the STATE 4,458
TEACHERS retirement system, employers on behalf of members, and 4,460
persons receiving service, disability, or survivor benefits UNDER 4,461
THIS CHAPTER are permitted to participate in contracts for 4,463
long-term health care insurance. Participation may include 4,464
dependents and family members. If a participant in a contract 4,465
for long-term care insurance leaves employment, the participant 4,466
and the participant's dependents and family members may, at their 4,468
election, continue to participate in a program established under 4,469
this section in the same manner as if the participant had not 4,470
left employment, except that no part of the cost of the insurance 4,472
shall be paid by the participant's former employer. 4,473
Such program may be established independently or jointly 4,475
with one or more of the other retirement systems. For purposes 4,476
97
of this section, "retirement systems" has the same meaning as in 4,477
division (A) of section 145.581 of the Revised Code. 4,478
The board may enter into an agreement with insurance 4,480
companies, health insuring corporations, or government agencies 4,482
authorized to do business in the state for issuance of a 4,483
long-term care insurance policy or contract. However, prior to 4,484
entering into such an agreement with an insurance company or 4,485
health insuring corporation, the board shall request the 4,486
superintendent of insurance to certify the financial condition of 4,489
the company or corporation. The board shall not enter into the 4,490
agreement if, according to that certification, the company or 4,491
corporation is insolvent, is determined by the superintendent to 4,492
be potentially unable to fulfill its contractual obligations, or 4,494
is placed under an order of rehabilitation or conservation by a 4,495
court of competent jurisdiction or under an order of supervision 4,496
by the superintendent. 4,497
The board shall adopt rules in accordance with section 4,499
111.15 of the Revised Code governing the program. The rules 4,500
shall establish methods of payment for participation under this 4,501
section, which may include establishment of a payroll deduction 4,502
plan under section 3307.281 3307.70 of the Revised Code, 4,503
deduction of the full premium charged from a person's service, 4,505
disability, or survivor benefit, or any other method of payment 4,506
considered appropriate by the board. If the program is 4,507
established jointly with one or more of the other retirement 4,508
systems, the rules also shall establish the terms and conditions 4,509
of such joint participation. 4,510
Sec. 3307.40 3307.392. (A) Upon the death of a retirant 4,519
or disability benefit recipient who at the time of death is 4,521
receiving a service retirement allowance or disability benefit 4,522
pursuant to this chapter, a lump sum payment of one thousand 4,523
dollars shall be paid to any designated or qualified beneficiary 4,524
under division (D) of section 3307.48 of the Revised Code, or if 4,525
none, the state teachers retirement board may approve payment to 4,526
98
either the person responsible for the burial expenses or to the 4,527
decedent's estate following the completion of an application on a 4,528
form approved by the board. 4,529
(B) The state teachers retirement board may establish a 4,531
death benefit plan providing for a lump sum payment to eligible 4,532
beneficiaries, in addition to the lump sum payment made under 4,533
division (A) of this section 3307.661 OF THE REVISED CODE, on the 4,534
death of a person receiving a service retirement AN allowance or 4,537
disability benefit pursuant to this chapter. Any plan 4,539
established under this division SECTION shall be administered 4,541
separately from any other benefit or plan governed by this 4,542
chapter and shall require that charges paid by participants cover 4,543
the additional liability resulting from the death benefit as 4,544
determined by an actuary employed by the board. Participation 4,545
shall be limited to persons receiving a service retirement AN 4,546
allowance or disability benefit pursuant to this chapter. 4,548
The board shall establish charges and conditions of 4,550
eligibility for participation in any plan established under this 4,551
division SECTION. A person who elects to participate in a plan 4,552
by written authorization shall instruct the board to deduct the 4,554
amount charged under the plan from his service retirement THE 4,556
PERSON'S allowance or disability benefit. The board may enter 4,557
into contracts with insurance companies, financial institutions, 4,558
or other entities for the purpose of providing a death benefit 4,559
plan under this division SECTION. 4,560
Sec. 3307.71 3307.41. The right of a person to a pension, 4,569
an annuity, or a retirement allowance itself, any optional 4,572
benefit, OR any other right OR BENEFIT accrued or accruing to any 4,574
person, under sections 3307.01 to 3307.74 of the Revised Code
THIS CHAPTER, or the various funds created by section 3307.65 4,577
3307.14 of the Revised Code and all moneys and investments and 4,579
income thereof, are exempt from any state tax, except the tax
imposed by section 5747.02 of the Revised Code and are exempt 4,581
from any county, municipal, or other local tax, except taxes 4,582
99
imposed pursuant to section 5748.02 or 5748.08 of the Revised 4,583
Code and, except as provided in sections 3111.23, 3113.21, and 4,585
3307.72 3307.37 of the Revised Code, shall not be subject to 4,586
execution, garnishment, attachment, the operation of bankruptcy 4,587
or insolvency laws, or any other process of law whatsoever, and 4,588
shall be unassignable except as specifically provided in THIS 4,589
CHAPTER OR sections 3111.23, AND 3113.21, and 3307.01 to 3307.74 4,590
of the Revised Code. 4,591
Sec. 3307.711 3307.42. The granting TO ANY PERSON of a 4,601
retirement AN allowance, annuity, or pension to any person, AS 4,602
DEFINED IN SECTION 3307.50 OF THE REVISED CODE, OR THE GRANTING
OF A BENEFIT UNDER A PLAN ESTABLISHED UNDER SECTION 3307.81 OF 4,604
THE REVISED CODE, pursuant to AN action of the state teachers'
retirement board vests a right in such person, so long as he THE 4,606
PERSON remains the beneficiary of any of the funds established by 4,608
section 3307.65 3307.14 of the Revised Code, to receive such 4,609
retirement THE allowance, annuity, or pension, OR BENEFIT at the 4,611
rate fixed at the time of granting such retirement THE allowance, 4,612
annuity, or pension, OR BENEFIT. Such right shall also be vested 4,614
with equal effect in the beneficiary of a grant heretofore made
from any of the funds named in section 3307.65 3307.14 of the 4,615
Revised Code. 4,616
Sec. 3307.712 3307.44. (A) Any person who is receiving an 4,625
allowance, AS DEFINED IN SECTION 3307.50 OF THE REVISED CODE, 4,626
benefit, or any increase under this chapter may, at any time, 4,628
waive his THE PERSON'S rights thereto, or to a portion thereof, 4,629
by filing a written notice of waiver with the state teachers 4,630
retirement board. Except as provided in division (B) of this 4,631
section, such waiver shall remain in effect until the first day 4,632
of the month following his THE PERSON'S death or the filing of 4,633
his THE PERSON'S written cancellation of such waiver with the 4,635
state teachers retirement board. Any amount so waived shall 4,636
forever be forfeited.
(B) If a beneficiary waives in writing all claim to any 4,638
100
benefits under this chapter prior to receipt of the first 4,639
benefit, the waiver shall put into effect the succession of 4,640
beneficiaries as provided in division (C) of section 3307.48 4,641
3307.562 of the Revised Code and shall be irrevocable. 4,643
Sec. 3307.4012 3307.46. Whenever the limits established by 4,652
section 415 of the "Internal Revenue Code of 1986," 100 Stat. 4,654
2085, 26 U.S.C.A. 415, as amended, are raised, the state teachers 4,655
retirement board may increase the amount of the pension, benefit, 4,656
or allowance of any person whose pension, benefit, or allowance 4,657
payable under section 3307.38 3307.58, 3307.39 3307.59, 3307.403 4,658
3307.63, 3307.43 3307.631, or 3307.431 3307.67 of the Revised 4,660
Code OR A PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE REVISED 4,661
CODE was limited by the application of section 415. The amount 4,663
of the increased pension, benefit, or allowance shall not exceed
the lesser of the amount the person would have received if the 4,664
limits established by section 415 had not been applied or the 4,665
amount the person is eligible to receive subject to the new 4,666
limits established by section 415.
Sec. 3307.461. THE STATE TEACHERS RETIREMENT BOARD MAY 4,668
ESTABLISH AND MAINTAIN A QUALIFIED GOVERNMENTAL EXCESS BENEFIT 4,669
ARRANGEMENT THAT MEETS THE REQUIREMENTS OF DIVISION (m) OF 4,670
SECTION 415 OF THE "INTERNAL REVENUE CODE OF 1986," 100 STAT. 4,672
2085, 26 U.S.C.A. 415, AS AMENDED, AND ANY REGULATIONS ADOPTED 4,674
THEREUNDER. IF ESTABLISHED, THE ARRANGEMENT SHALL BE A SEPARATE 4,675
PORTION OF THE STATE TEACHERS RETIREMENT SYSTEM AND BE MAINTAINED 4,676
SOLELY FOR THE PURPOSE OF PROVIDING TO RETIRED MEMBERS THAT PART 4,677
OF A BENEFIT OTHERWISE PAYABLE UNDER THIS CHAPTER THAT EXCEEDS 4,678
THE LIMITS ESTABLISHED BY SECTION 415 OF THE "INTERNAL REVENUE 4,679
CODE OF 1986," AS AMENDED. 4,680
MEMBERS PARTICIPATING IN AN ARRANGEMENT ESTABLISHED UNDER 4,682
THIS SECTION SHALL NOT BE PERMITTED TO ELECT TO DEFER 4,683
COMPENSATION TO THE ARRANGEMENT. CONTRIBUTIONS TO AND BENEFITS 4,684
PAID UNDER AN ARRANGEMENT SHALL NOT BE PAYABLE FROM A TRUST THAT 4,685
IS PART OF THE SYSTEM UNLESS THE TRUST IS MAINTAINED SOLELY FOR 4,686
101
THE PURPOSE OF PROVIDING SUCH BENEFITS. 4,687
THE BOARD SHALL ADOPT RULES TO ADMINISTER AN ARRANGEMENT 4,689
ESTABLISHED UNDER THIS SECTION. 4,690
Sec. 3307.751 3307.47. If a member, former member, 4,699
contributor, former contributor, retirant, or beneficiary PERSON 4,701
is paid any benefit by the state teachers retirement system UNDER 4,703
THE PLANS DESCRIBED IN SECTION 3307.031 OF THE REVISED CODE to
which he THE PERSON is not entitled, the benefit shall be repaid 4,706
to the retirement system by him THE PERSON. If he THE PERSON 4,708
fails to make the repayment, the retirement system shall withhold 4,709
the amount due from any benefit due him THE PERSON or his THE 4,710
PERSON'S beneficiary under this chapter, or may collect the 4,711
amount in any other manner provided by law. 4,712
Sec. 3307.50. AS USED IN SECTIONS 3307.50 TO 3307.79 OF 4,714
THE REVISED CODE: 4,716
(A) "PRIOR SERVICE" MEANS ALL SERVICE AS A TEACHER BEFORE 4,718
SEPTEMBER 1, 1920, MILITARY SERVICE CREDIT, ALL SERVICE PRIOR TO 4,719
SEPTEMBER 1, 1920, AS AN EMPLOYEE OF ANY EMPLOYER WHO COMES 4,720
WITHIN THE PUBLIC EMPLOYEES RETIREMENT SYSTEM, THE SCHOOL 4,721
EMPLOYEES RETIREMENT SYSTEM, OR ANY OTHER STATE RETIREMENT SYSTEM 4,722
ESTABLISHED UNDER THE LAWS OF OHIO, AND SIMILAR SERVICE IN 4,723
ANOTHER STATE, CREDIT FOR WHICH WAS PROCURED BY A MEMBER UNDER 4,724
FORMER SECTION 3307.33 OF THE REVISED CODE, PRIOR TO JUNE 25, 4,726
1945. PRIOR SERVICE CREDIT SHALL NOT BE GRANTED TO ANY MEMBER 4,727
FOR SERVICE FOR WHICH CREDIT OR BENEFITS HAVE BEEN RECEIVED IN 4,728
ANY OTHER STATE RETIREMENT SYSTEM IN OHIO OR FOR CREDIT THAT WAS 4,729
FORFEITED BY WITHDRAWAL OF CONTRIBUTIONS, UNLESS THE CREDIT HAS 4,730
BEEN RESTORED. IF THE TEACHER SERVED AS AN EMPLOYEE IN ANY TWO 4,731
OR ALL OF THE CAPACITIES, "PRIOR SERVICE" MEANS THE TOTAL 4,732
COMBINED SERVICE IN THE CAPACITIES PRIOR TO SEPTEMBER 1, 1920. 4,733
IF A TEACHER WHO HAS BEEN GRANTED PRIOR SERVICE CREDIT FOR 4,735
SERVICE RENDERED PRIOR TO SEPTEMBER 1, 1920, AS AN EMPLOYEE OF AN 4,736
EMPLOYER WHO COMES WITHIN THE PUBLIC EMPLOYEES RETIREMENT SYSTEM 4,737
OR THE SCHOOL EMPLOYEES RETIREMENT SYSTEM, ESTABLISHES, 4,738
102
SUBSEQUENT TO SEPTEMBER 16, 1957, AND BEFORE RETIREMENT, THREE 4,739
YEARS OF CONTRIBUTING SERVICE IN THE PUBLIC EMPLOYEES RETIREMENT 4,740
SYSTEM, OR ONE YEAR IN THE SCHOOL EMPLOYEES RETIREMENT SYSTEM, 4,741
THE PRIOR SERVICE CREDIT GRANTED SHALL BECOME, AT RETIREMENT, THE 4,743
LIABILITY OF THE OTHER SYSTEM IF THE PRIOR SERVICE OR EMPLOYMENT 4,745
WAS IN A CAPACITY COVERED BY THAT SYSTEM.
(B) "TOTAL SERVICE," "TOTAL SERVICE CREDIT," EXCEPT AS 4,747
PROVIDED IN SECTION 3307.57 OF THE REVISED CODE, OR "OHIO SERVICE 4,749
CREDIT" MEANS ALL SERVICE OF A MEMBER OF THE STATE TEACHERS 4,750
RETIREMENT SYSTEM SINCE LAST BECOMING A MEMBER AND, IN ADDITION 4,751
THERETO, RESTORED SERVICE CREDIT UNDER SECTION 3307.71 OF THE 4,752
REVISED CODE, ALL PRIOR SERVICE CREDIT, ALL MILITARY SERVICE 4,755
CREDIT COMPUTED AS PROVIDED IN THIS CHAPTER, AND ALL OTHER 4,756
SERVICE CREDIT ESTABLISHED UNDER SECTIONS 3307.26, FORMER 4,758
3307.513, FORMER 3307.514, 3307.53, 3307.54, 3307.72, 3307.73, 4,759
3307.74, 3307.76, 3307.761, 3307.77, 3307.771, AND 33.07.78 AND 4,760
FORMER SECTION 3307.52 OF THE REVISED CODE, AND SECTION 3 OF 4,762
AMENDED SUBSTITUTE SENATE BILL NO. 530 OF THE 114TH GENERAL 4,763
ASSEMBLY. ALL SERVICE CREDIT PURCHASED UNDER SECTION 3307.741 OF 4,766
THE REVISED CODE SHALL BE USED EXCLUSIVELY FOR THE PURPOSE OF 4,768
QUALIFYING FOR SERVICE RETIREMENT. 4,769
(C)(1) "SERVICE RETIREMENT" MEANS RETIREMENT AS PROVIDED 4,771
IN SECTION 3307.58 OR 3307.59 OF THE REVISED CODE. 4,772
(2) "DISABILITY RETIREMENT" MEANS RETIREMENT AS PROVIDED 4,774
IN SECTION 3307.63 OF THE REVISED CODE. 4,775
(D) "ACCUMULATED CONTRIBUTIONS" MEANS THE SUM OF ALL 4,777
AMOUNTS CREDITED TO A CONTRIBUTOR'S INDIVIDUAL ACCOUNT IN THE 4,778
TEACHERS' SAVINGS FUND, TOGETHER WITH INTEREST CREDITED THEREON 4,779
AT THE RATES APPROVED BY THE STATE TEACHERS RETIREMENT BOARD 4,780
PRIOR TO RETIREMENT. 4,781
(E) "ANNUITY" MEANS PAYMENTS FOR LIFE DERIVED FROM 4,783
CONTRIBUTIONS MADE BY A CONTRIBUTOR AND PAID FROM THE ANNUITY AND 4,784
PENSION RESERVE FUND. ALL ANNUITIES SHALL BE PAID IN TWELVE 4,785
EQUAL MONTHLY INSTALLMENTS. 4,786
103
(F) "PENSIONS" MEANS ANNUAL PAYMENTS FOR LIFE DERIVED FROM 4,788
APPROPRIATIONS MADE BY AN EMPLOYER AND PAID FROM THE ANNUITY AND 4,789
PENSION RESERVE FUND. ALL PENSIONS SHALL BE PAID IN TWELVE EQUAL 4,790
MONTHLY INSTALLMENTS. 4,791
(G)(1) "ALLOWANCE" MEANS THE PENSION PLUS THE ANNUITY, OR 4,794
ANY OTHER PAYMENT UNDER SECTIONS 3307.50 TO 3307.79 OF THE 4,795
REVISED CODE, AND INCLUDES A DISABILITY ALLOWANCE OR DISABILITY 4,796
BENEFIT.
(2) "DISABILITY ALLOWANCE" MEANS AN ALLOWANCE PAID ON 4,798
ACCOUNT OF DISABILITY UNDER SECTION 3307.631 OF THE REVISED CODE. 4,800
(3) "DISABILITY BENEFIT" MEANS A BENEFIT PAID AS 4,802
DISABILITY RETIREMENT UNDER SECTION 3307.63 OF THE REVISED CODE, 4,804
AS A DISABILITY ALLOWANCE UNDER SECTION 3307.631 OF THE REVISED 4,806
CODE, OR AS A DISABILITY BENEFIT UNDER SECTION 3307.57 OF THE 4,807
REVISED CODE.
(H) "ANNUITY RESERVE" MEANS THE PRESENT VALUE, COMPUTED 4,809
UPON THE BASIS OF MORTALITY TABLES ADOPTED BY THE STATE TEACHERS 4,810
RETIREMENT BOARD WITH INTEREST, OF ALL PAYMENTS TO BE MADE ON 4,811
ACCOUNT OF ANY ANNUITY, OR BENEFIT IN LIEU OF ANY ANNUITY, 4,812
GRANTED TO A MEMBER. 4,813
(I) "PENSION RESERVE" MEANS THE PRESENT VALUE, COMPUTED 4,815
UPON THE BASIS OF MORTALITY TABLES ADOPTED BY THE STATE TEACHERS 4,816
RETIREMENT BOARD WITH INTEREST, OF ALL PAYMENTS TO BE MADE ON 4,817
ACCOUNT OF ANY PENSION, OR BENEFIT IN LIEU OF ANY PENSION, 4,818
GRANTED TO A MEMBER OR TO A BENEFICIARY. 4,819
(J) "RETIRANT" MEANS ANY FORMER MEMBER WHO IS GRANTED AGE 4,821
AND SERVICE RETIREMENT AS PROVIDED IN SECTIONS 3307.57, 3307.58, 4,822
3307.59, AND 3307.60 OF THE REVISED CODE. 4,823
(K) "DISABILITY BENEFIT RECIPIENT" MEANS A MEMBER WHO IS 4,825
RECEIVING A DISABILITY BENEFIT. 4,826
Sec. 3307.013 3307.501. (A) As used in this section, 4,835
"percentage increase" means the percentage that an increase in 4,837
compensation is of the compensation paid prior to the increase. 4,838
(B) Notwithstanding division (U)(L) of section 3307.01 of 4,840
104
the Revised Code, for the purpose of determining final average 4,842
salary under this section, "compensation" has the same meaning as 4,843
in that division, except that it does not include any amount 4,844
resulting from a percentage increase paid to a member during the 4,845
member's two highest years of compensation that exceeds the 4,847
greater of the following, unless the percentage increase results 4,848
from employment by a different employer or promotion to a 4,849
position held by another employee within the twelve-month period 4,850
preceding the promotion; 4,851
(1) The highest percentage increase in compensation paid 4,853
to the member during any of the three years immediately preceding 4,854
the member's two highest years of compensation and any subsequent 4,855
partial year of compensation used in calculating the member's 4,856
final average salary; 4,857
(2) A percentage increase paid to the member as part of an 4,859
increase generally applicable to members employed by the 4,860
employer. An increase shall be considered generally applicable 4,861
if it is paid to members employed by a school district board of 4,862
education in positions requiring a license issued under section 4,864
3319.22 of the Revised Code in accordance with uniform criteria 4,865
applicable to all such members or if paid to members employed by 4,866
an employer other than a school district board of education in 4,867
accordance with uniform criteria applicable to all such members. 4,868
(C) The state teachers retirement board shall determine 4,870
the final average salary of a member by dividing the sum of the 4,871
member's annual compensation for the three highest years of 4,872
compensation for which the member made contributions plus any 4,873
amount determined under division (E) of this section by three, 4,874
except that if the member has a partial year of contributing 4,875
service in the year the member's employment terminates and the 4,876
compensation for the partial year is at a rate higher than the 4,877
rate of compensation for any one of the member's highest three 4,878
years of compensation, the board shall substitute the 4,879
compensation for the partial year for the compensation for the 4,880
105
same portion of the lowest of the member's three highest years of 4,881
compensation. If a member has less than three years of 4,882
contributing membership, the member's final average salary shall 4,883
be the member's total compensation for the period of contributing 4,884
membership plus any amount determined under division (E) of this 4,885
section divided by the total years, including any portion of a 4,886
year, of contributing service.
For the purpose of calculating benefits payable to a member 4,888
qualifying for service credit under division (R)(I) of section 4,890
3307.01 of the Revised Code, the board shall calculate the 4,891
member's final average salary by dividing the member's total 4,892
compensation as a teacher covered under this chapter plus any 4,893
amount determined under division (E) of this section by the total 4,894
number of years, including any portion of a year, of contributing 4,895
membership during that period. If contributions were made for 4,896
less than twelve months, the member's final average salary is the 4,897
total amount of compensation paid to the member during all 4,898
periods of contributions under this chapter. 4,899
(D) Contributions made by a member and an employer on 4,901
amounts that, pursuant to division (B) of this section, are not 4,902
compensation or are not included, pursuant to division (E) of 4,903
this section, for the purpose of determining final average salary 4,904
shall be treated as additional deposits to the member's account 4,905
under section 3307.51 3307.26 of the Revised Code and used to 4,906
provide additional annuity income. 4,908
(E) The state teachers retirement board shall adopt rules 4,910
establishing criteria and procedures for administering this 4,911
division. 4,912
The board shall notify each applicant for retirement of any 4,914
amount excluded from the applicant's compensation in accordance 4,915
with division (B) of this section and of the procedures 4,916
established by the board for requesting a hearing on this 4,917
exclusion. 4,918
Any applicant for retirement who has had any amount 4,920
106
excluded from the applicant's compensation in accordance with 4,922
division (B) of this section may request a hearing on this 4,923
exclusion. Upon receiving such a request, the board shall 4,924
determine in accordance with its criteria and procedures whether, 4,925
for good cause as determined by the board, all or any portion of 4,926
any amount excluded from the applicant's compensation in 4,927
accordance with division (B) of this section, up to a maximum of 4,928
seventy-five hundred dollars, is to be included in the 4,929
determination of final average salary under division (C) of this 4,930
section. Any determination of the board under this division 4,931
shall be final.
Sec. 3307.20 3307.51. (A) The state teachers retirement 4,940
board shall have prepared annually by or under the supervision of 4,943
an actuary an actuarial valuation of the pension assets, 4,944
liabilities, and funding requirements of the state teachers 4,945
retirement system as established pursuant to this chapter PLAN 4,946
DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE.
The actuary shall complete the valuation in accordance with 4,947
actuarial standards of practice promulgated by the actuarial 4,948
standards board of the American academy of actuaries and prepare 4,949
a report of the valuation. The report shall include all of the 4,950
following:
(1) A summary of the benefit provisions evaluated; 4,952
(2) A summary of the census data and financial information 4,954
used in the valuation; 4,955
(3) A description of the actuarial assumptions, actuarial 4,957
cost method, and asset valuation method used in the valuation, 4,958
including a statement of the assumed rate of payroll growth and 4,959
assumed rate of growth or decline in the number of members 4,960
contributing to the retirement system;
(4) A summary of findings that includes a statement of the 4,962
actuarial accrued pension liabilities and unfunded actuarial 4,963
accrued pension liabilities; 4,964
(5) A schedule showing the effect of any changes in the 4,966
107
benefit provisions, actuarial assumptions, or cost methods since 4,967
the last annual actuarial valuation; 4,968
(6) A statement of whether contributions to the retirement 4,970
system are expected to be sufficient to satisfy the funding 4,971
objectives established by the board. 4,972
The board shall submit the report to the Ohio retirement 4,975
study commission COUNCIL and the standing committees of the house 4,976
of representatives and the senate with primary responsibility for 4,978
retirement legislation not later than the first day of May 4,979
JANUARY following the year for which the valuation was made. 4,980
(B) At such times as the state teachers retirement board 4,983
determines, and at least once in each quinquennial period, the 4,984
board shall have prepared by or under the supervision of an 4,985
actuary an actuarial investigation of the mortality, service, and 4,987
other experience of the members, retirants, and beneficiaries of 4,989
the system, and other system retirants as defined in section 4,992
3307.381 3307.35 of the Revised Code to update the actuarial 4,993
assumptions used in the actuarial valuation required by division 4,996
(A) of this section. The actuary shall prepare a report of the 4,997
actuarial investigation. The report shall be prepared and any 4,998
recommended changes in actuarial assumptions shall be made in 5,000
accordance with the actuarial standards of practice promulgated
by the actuarial standards board of the American academy of 5,002
actuaries. The report shall include all of the following:
(1) A summary of relevant decrement and economic 5,004
assumption experience observed over the period of the 5,005
investigation;
(2) Recommended changes in actuarial assumptions to be 5,007
used in subsequent actuarial valuations required by division (A) 5,009
of this section;
(3) A measurement of the financial effect of the 5,011
recommended changes in actuarial assumptions. 5,012
The board shall submit the report to the Ohio retirement 5,015
study commission COUNCIL and the standing committees of the house 5,016
108
of representatives and the senate with primary responsibility for 5,018
retirement legislation not later than the first day of May 5,019
following the last fiscal year of the period the report covers. 5,020
(C) The board may at any time request the actuary to make 5,022
any other studies or actuarial valuations to determine the 5,024
adequacy of the normal and deficiency rates of contribution 5,025
provided by section 3307.53 3307.28 of the Revised Code, and 5,026
those rates may be adjusted by the board, as recommended by the 5,029
actuary, effective as of the first of any year thereafter. 5,030
(D) The board shall have prepared by or under the 5,032
supervision of an actuary an actuarial analysis of any introduced 5,033
legislation expected to have a measurable financial impact on the 5,034
retirement system. The actuarial analysis shall be completed in 5,035
accordance with the actuarial standards of practice promulgated 5,036
by the actuarial standards board of the American academy of 5,037
actuaries. The actuary shall prepare a report of the actuarial 5,038
analysis, which shall include all of the following: 5,039
(1) A summary of the statutory changes that are being 5,041
evaluated;
(2) A description of or reference to the actuarial 5,043
assumptions and actuarial cost method used in the report; 5,044
(3) A description of the participant group or groups 5,046
included in the report; 5,047
(4) A statement of the financial impact of the 5,049
legislation, including the resulting increase, if any, in the 5,050
employer normal cost percentage; the increase, if any, in 5,051
actuarial accrued liabilities; and the per cent of payroll that 5,052
would be required to amortize the increase in actuarial accrued
liabilities as a level per cent of covered payroll for all active 5,053
members over a period not to exceed thirty years; 5,054
(5) A statement of whether the scheduled contributions to 5,056
the system after the proposed change is enacted are expected to 5,057
be sufficient to satisfy the funding objectives established by 5,058
the board.
109
Not later than sixty days from the date of introduction of 5,060
the legislation, the board shall submit a copy of the actuarial 5,061
analysis to the legislative budget office of the legislative 5,062
service commission, the standing committees of the house of 5,063
representatives and the senate with primary responsibility for 5,064
retirement legislation, and the Ohio retirement study commission 5,065
COUNCIL.
(E) The board shall have prepared annually a report giving 5,068
a full accounting of the revenues and costs relating to the 5,069
provision of benefits under sections 3307.405 3307.39 and 3307.74 5,070
3307.61 of the Revised Code. The report shall be made as of June 5,073
30, 1997, and the thirtieth day of June of each year thereafter. 5,074
The report shall include the following: 5,075
(1) A description of the statutory authority for the 5,077
benefits provided; 5,078
(2) A summary of the benefits; 5,080
(3) A summary of the eligibility requirements for the 5,082
benefits; 5,083
(4) A statement of the number of participants eligible for 5,085
the benefits; 5,086
(5) A description of the accounting, asset valuation, and 5,088
funding method used to provide the benefits; 5,089
(6) A statement of the net assets available for the 5,091
provisions of benefits as of the last day of the fiscal year; 5,093
(7) A statement of any changes in the net assets available 5,096
for the provision of benefits, including participant and employer 5,097
contributions, net investment income, administrative expenses, 5,098
and benefits provided to participants, as of the last day of the 5,099
fiscal year;
(8) For the last six consecutive fiscal years, a schedule 5,101
of the net assets available for the benefits, the annual cost of 5,103
benefits, administrative expenses incurred, and annual employer 5,104
contributions allocated for the provision of benefits; 5,105
(9) A description of any significant changes that affect 5,107
110
the comparability of the report required under this division; 5,109
(10) A statement of the amount paid under division (C) of 5,111
section 3307.74 3307.39 of the Revised Code. 5,112
The board shall submit the report to the Ohio retirement 5,115
study commission COUNCIL and the standing committees of the house 5,116
of representatives and the senate with primary responsibility for 5,117
retirement legislation not later than the thirty-first day of 5,118
December following the year for which the report was made. 5,120
Sec. 3307.511. THE STATE TEACHERS RETIREMENT BOARD SHALL 5,122
COLLECT AND KEEP IN CONVENIENT FORM SUCH DATA AS IS NECESSARY FOR 5,123
THE PREPARATION OF THE REQUIRED MORTALITY AND SERVICE TABLES, AND 5,124
FOR THE COMPILATION OF SUCH OTHER INFORMATION AS IS REQUIRED FOR 5,125
THE ACTUARIAL VALUATION OF THE ASSETS AND LIABILITIES OF THE 5,126
FUNDS LISTED IN DIVISIONS (A) TO (F) OF SECTION 3307.14 OF THE 5,128
REVISED CODE. ON THE BASIS OF MORTALITY AND SERVICE EXPERIENCE 5,129
OF THE MEMBERS, RETIRANTS, AND BENEFICIARIES OF THE STATE 5,130
TEACHERS RETIREMENT SYSTEM, AND OTHER SYSTEM RETIRANTS 5,131
CONTRIBUTING IN ACCORDANCE WITH SECTION 3307.35 OF THE REVISED 5,133
CODE, THE BOARD SHALL ADOPT TABLES TO BE USED FOR VALUATION 5,135
PURPOSES AND FOR DETERMINING THE AMOUNT OF ANNUITIES TO BE
ALLOWED ON THE BASIS OF THE CONTRIBUTIONS. 5,136
Sec. 3307.201 3307.512. The state teachers retirement 5,145
board shall establish a period of not more than thirty years to 5,148
amortize the state teachers retirement system's unfunded
actuarial accrued pension liabilities FOR BENEFITS PAID UNDER 5,149
SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE. If in any year 5,150
the period necessary to amortize the unfunded actuarial accrued 5,152
pension liability exceeds thirty years, as determined by the
annual actuarial valuation required by section 3307.20 3307.51 of 5,155
the Revised Code, the board, not later than ninety days after 5,157
receipt of the valuation, shall prepare and submit to the Ohio 5,158
retirement study commission COUNCIL and the standing committees 5,159
of the house of representatives and the senate with primary 5,160
responsibility for retirement legislation a report that includes 5,161
111
the following information: 5,162
(A) The number of years needed to amortize the unfunded 5,165
actuarial accrued pension liability as determined by the annual 5,166
actuarial valuation;
(B) A plan approved by the board that indicates how the 5,169
board will reduce the amortization period of unfunded actuarial 5,170
accrued pension liability to not more than thirty years.
Sec. 3307.421 3307.513. Not later than September 1, 2000, 5,180
and each first day of September for the succeeding five years, 5,181
the state teachers retirement board shall make and submit a 5,182
report for the preceding fiscal year of the disability retirement 5,183
experience of each employer. The report shall specify the total 5,184
number of disability applications submitted UNDER SECTION 3307.62 5,185
OF THE REVISED CODE, the status of each application as of the 5,187
last day of the fiscal year, total applications granted or 5,188
denied, and the percentage of disability benefit recipients, AS 5,189
DEFINED IN SECTION 3307.50 OF THE REVISED CODE, to the total 5,191
number of the employer's employees who are members of the state 5,192
teachers retirement system. The report shall be submitted to the 5,193
governor, the Ohio retirement study council, and the chairpersons 5,195
of the standing committees and subcommittees of the senate and 5,196
house of representatives with primary responsibility for 5,197
retirement legislation.
Sec. 3307.36 3307.52. At THE TIME OF retirement UNDER THE 5,207
PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED
CODE, the total service credited a teacher shall consist of all 5,209
his THE TEACHER'S service as a teacher since he THE TEACHER last 5,210
became a member and, if he THE TEACHER has a prior service 5,211
certificate which is in full force and effect, all service 5,213
certified on such prior service certificate, together with
purchased service credit as provided in section 3307.33 3307.741 5,214
of the Revised Code. 5,215
Sec. 3307.31 3307.53. The state teachers retirement board 5,224
shall credit a year of service to any teacher PARTICIPATING IN 5,226
112
THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED 5,227
CODE who is employed on a full-time basis in a school district 5,228
for the number of months the regular day schools of such district 5,229
are in session in said district within any year. The board shall 5,230
adopt appropriate rules and regulations for the determination of 5,231
credit for less than a complete year of service, and shall be the 5,232
final authority in determining the number of years of service 5,233
credit. The board shall credit not more than one year for all 5,234
service rendered in any year. 5,235
If concurrent contributions are made to two or more 5,237
retirement systems, service credit shall be on the basis of the 5,238
ratio that contributions to this system bear to the total 5,239
contributions in all such systems. 5,240
THE BOARD SHALL ADOPT RULES FOR THE PURPOSE OF DETERMINING 5,242
THE NUMBER OF YEARS OR PARTIAL YEARS OF SERVICE CREDIT TO BE 5,243
GRANTED TO A MEMBER UNDER SECTION 3307.88 OF THE REVISED CODE. 5,244
THE AMOUNT OF SERVICE CREDIT SHALL BE BASED ON THE MEMBER'S 5,246
LENGTH OF PARTICIPATION IN AND CONTRIBUTION TO A PLAN ESTABLISHED 5,247
UNDER SECTION 3307.81 OF THE REVISED CODE. THE BOARD SHALL BE 5,248
THE FINAL AUTHORITY IN DETERMINING THE AMOUNT OF SERVICE CREDIT. 5,249
Sec. 3307.35 3307.54. An employer may establish a 5,258
retirement incentive plan for its employees who are members of 5,259
the state teachers retirement system PARTICIPATING IN THE PLAN 5,260
DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE. 5,261
The plan shall provide for purchase by the employer of service 5,262
credit for eligible employees who choose to participate in the 5,263
plan and for payment by the employer of the entire cost of such 5,264
service credit. A plan established under this section shall 5,265
remain in effect until terminated by the employer, except that, 5,266
once established, the plan must remain in effect for at least one 5,267
year.
An employee who is a member of the state teachers 5,269
retirement system shall be eligible to participate in a 5,270
retirement incentive plan if the employee has attained age fifty 5,272
113
and the employee agrees to retire and retires under section 5,273
3307.38 3307.58 of the Revised Code effective within ninety days 5,275
after receiving notice from the state teachers retirement system 5,276
that service credit has been purchased for the member under this 5,277
section.
Participation in the plan shall be available to all 5,279
eligible employees except that the employer may limit the number 5,280
of persons for whom it purchases credit in any calendar year to a 5,281
specified percentage of its employees who, ON THE FIRST DAY OF 5,283
JANUARY OF THAT YEAR, are members of the state teachers 5,284
retirement system on the first day of January of that year 5,285
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO
3307.79 OF THE REVISED CODE. The percentage shall not be less 5,286
than five per cent of such employees. If participation is 5,287
limited, employees with a greater length of service with the 5,288
employer have the right to elect to have credit purchased before 5,289
employees with a lesser length of service with the employer. 5,290
The amount of service credit purchased for any participant 5,292
shall be uniformly determined but shall not exceed the lesser of 5,293
the following: 5,294
(A) Five years of service credit; 5,296
(B) An amount of service credit equal to one-fifth of the 5,298
total service credited to the participant under FORMER sections 5,299
3307.02, 3307.021, 3307.022, 3307.22, 3307.28, 3307.31, 3307.311, 5,300
3307.32, 3307.41, 3307.411, 3307.412, 3307.512, 3307.513, 5,301
3307.514, 3307.515, AND 3307.52, and 3307.73 OR SECTIONS 3307.53, 5,303
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 5,305
the Revised Code.
For each year of service credit purchased under this 5,307
section, the employer shall pay an amount specified by the state 5,308
teachers retirement board equal to the additional liability 5,309
resulting from the purchase of that year of service credit as 5,310
determined by an actuary employed by the board. Payments shall 5,311
114
be made in accordance with rules adopted by the board, and the 5,312
board shall notify each member when the member is credited with 5,314
service purchased under this section. 5,315
No payment made to the state teachers retirement system 5,317
under this section shall affect any payment required by section 5,318
3307.53 3307.28 of the Revised Code. 5,319
Sec. 3307.46 3307.56. (A)(1) Subject to sections 3307.47 5,329
3307.37 and 3307.72 3307.561 of the Revised Code, a member 5,330
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 5,331
3307.79 OF THE REVISED CODE who ceases to be a teacher for any
cause other than death, retirement, receipt of a disability 5,334
benefit, or election of an alternative retirement plan under 5,335
section 3305.05 of the Revised Code, upon application, shall be
paid the accumulated contributions standing to the credit of the 5,337
member's individual account in the teachers' savings fund plus an 5,338
amount calculated in accordance with section 3307.80 3307.563 of 5,339
the Revised Code. If the member or the member's legal 5,341
representative cannot be found within ten years after the member 5,343
ceased making contributions pursuant to section 3307.51 3307.26 5,344
of the Revised Code, the accumulated contributions may be 5,347
transferred to the guarantee fund and thereafter paid to the 5,348
member, to the member's beneficiaries, or to the member's estate, 5,349
upon proper application.
(2) A member described in division (A)(1) of this section 5,352
who is married at the time of application for payment and is
eligible for age and service retirement under section 3307.38 5,353
3307.58 or 3307.39 3307.59 of the Revised Code shall submit with 5,356
the application a written statement by the member's spouse
attesting that the spouse consents to the payment of the member's 5,357
accumulated contributions. Consent shall be valid only if it is 5,358
signed and witnessed by a notary public. If the statement is not 5,360
submitted under this division, the application shall be
considered an application for service retirement and shall be 5,361
subject to division (F)(1) of section 3307.50 3307.60 of the 5,362
115
Revised Code. 5,363
(B) This division applies to any member who ceases to be a 5,366
teacher by electing an alternative retirement plan pursuant to 5,367
section 3305.05 of the Revised Code and who is not otherwise 5,368
employed as a teacher in a position to which the election does 5,369
not apply. For purposes of this division, "continuously 5,370
employed" has the same meaning as in section 3305.01 of the 5,371
Revised Code. 5,372
(1) Subject to sections 3307.47 3307.37 and 3307.72 5,374
3307.561 of the Revised Code, upon application of any member to 5,377
whom this division applies who is continuously employed, the 5,378
state teachers retirement board shall pay the accumulated 5,379
contributions standing to the credit of the member's individual 5,380
account in the teachers' savings fund plus an amount calculated 5,381
in accordance with section 3307.80 3307.563 of the Revised Code 5,382
to the entity providing the alternative retirement plan for 5,384
application to that plan in accordance with any contract the 5,385
member has entered into for purposes of that plan. 5,386
(2) Subject to sections 3307.47 3307.37 and 3307.72 5,388
3307.561 of the Revised Code, upon application of any member to 5,391
whom this division applies who has ceased to be continuously 5,392
employed, the state teachers retirement board shall pay the 5,393
accumulated contributions standing to the credit of the member's 5,394
individual account in the teachers' savings fund plus an amount 5,396
calculated in accordance with section 3307.80 3307.563 of the 5,398
Revised Code to the entity providing the alternative retirement 5,399
plan for application to that plan in accordance with any contract 5,400
the member has entered into for purposes of that plan. 5,401
Sec. 3307.47 3307.561. A member of the state teachers 5,410
retirement system PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 5,411
3307.50 TO 3307.79 OF THE REVISED CODE who has ceased to be a 5,413
teacher, and who is also a member of either the public employees
retirement system or the school employees retirement system, or 5,414
both, may not withdraw his THE MEMBER'S accumulated contributions 5,416
116
unless he THE MEMBER also withdraws his THE MEMBER'S 5,417
contributions from such THE other systems. 5,418
Sec. 3307.48 3307.562. (A) As used in this section and 5,427
section 3307.49 3307.66 of the Revised Code: 5,429
(1) "Child" means a biological or legally adopted child of 5,433
a deceased member. If a court hearing for an interlocutory 5,434
decree for adoption was held prior to the member's death, "child" 5,435
includes the child who was the subject of the hearing if a final 5,436
decree of adoption adjudging the member's spouse as the adoptive 5,437
parent is made subsequent to the member's death. 5,438
(2) "Parent" is a parent or legally adoptive parent of a 5,441
deceased member. 5,442
(3) "Dependent" means a beneficiary who receives one-half 5,444
of the beneficiary's support from a member during the twelve 5,445
months prior to the member's death. 5,446
(4) "Surviving spouse" means an individual who establishes 5,449
a valid marriage to a member at the time of the member's death by 5,450
marriage certificate or pursuant to division (E) of this section. 5,451
(5) "Survivor" means a spouse, child, or dependent parent. 5,454
(B) Except as provided in division (G)(1)(B) of section 5,457
3307.49 3307.563 or division (B)(G)(1) of section 3307.80 3307.66 5,459
of the Revised Code, should a member WHO IS PARTICIPATING IN THE 5,460
PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE 5,461
die before service retirement, the member's accumulated 5,462
contributions, plus an amount calculated in accordance with 5,463
section 3307.80 3307.563 of the Revised Code, and any amounts 5,464
owed and unpaid to a disability benefit recipient shall be paid 5,465
to such beneficiaries as the member has nominated by written 5,467
designation signed by the member and filed with the state 5,469
teachers retirement board prior to death. The nomination of 5,470
beneficiary shall be on a form provided by the retirement board.
The last nomination of any beneficiary revokes all previous 5,472
nominations. The member's marriage, divorce, marriage 5,473
dissolution, legal separation, or withdrawal of account, or the 5,474
117
birth of the member's child, or the member's adoption of a child, 5,475
shall constitute an automatic revocation of the member's previous 5,476
designation. If a deceased member was also a member of the 5,477
public employees retirement system or the school employees 5,478
retirement system, the beneficiary last established among the
systems shall be the sole beneficiary in all the systems. 5,479
Any beneficiary ineligible for monthly survivor benefits as 5,481
provided by section 3307.49 3307.66 of the Revised Code may waive 5,483
in writing all claim to any benefits and such waiver shall 5,484
thereby put in effect the succession of beneficiaries under 5,485
division (C) of this section, provided the beneficiary thereunder 5,486
is immediately eligible and agrees in writing to accept survivor 5,487
benefits as provided by section 3307.49 3307.66 of the Revised 5,488
Code. If the accumulated contributions of a deceased member are 5,490
not claimed by a beneficiary, or by the estate of the deceased 5,491
member, within ten years, they shall be transferred to the 5,492
guarantee fund and thereafter paid to such beneficiary or to the 5,493
member's estate upon application to the board. The board shall 5,494
formulate and adopt rules governing all designations of 5,495
beneficiaries. 5,496
(C) Except as provided in division (G)(1) of section 5,498
3307.49 3307.66 of the Revised Code, if a member dies before 5,499
service retirement and is not survived by a designated 5,502
beneficiary, any beneficiaries shall qualify, in the following 5,503
order of precedence, with all attendant rights and privileges: 5,504
(1) Surviving spouse; 5,506
(2) Children, share and share alike; 5,508
(3) A dependent parent, if that parent elects to take 5,510
survivor benefits under division (C)(2) of section 3307.49 5,511
3307.66 of the Revised Code; 5,513
(4) Parents, share and share alike; 5,515
(5) Estate. 5,517
If any survivor dies before payment is made under this 5,519
section or is not located prior to the ninety-first day after the 5,520
118
board receives notification of the member's death, the survivor 5,521
next in order of precedence shall qualify as a beneficiary, 5,522
provided that benefits under division (C)(2) of section 3307.49 5,523
3307.66 of the Revised Code are elected. In the event that the 5,524
beneficiary originally determined is subsequently located, the 5,525
beneficiary may qualify for benefits under division (C)(2) of 5,526
section 3307.49 3307.66 of the Revised Code upon meeting the 5,527
conditions of eligibility set forth in division (B) of that 5,529
section, but in no case earlier than the first day of the month 5,530
following application by such beneficiary. Any payment made to a 5,531
beneficiary as determined by the board shall be a full discharge 5,532
and release to the board from any future claims. 5,533
(D) Any amount due any person, as an annuitant, receiving 5,535
a monthly benefit, and unpaid to the annuitant at death, shall be 5,537
paid to the beneficiary named by written designation signed by
the annuitant and filed with the board. If no such designation 5,539
has been filed, or if the beneficiary designated is deceased or
is not located prior to the ninety-first day after the board 5,540
receives notification of the annuitant's death, such amount shall 5,541
be paid, in the following order of precedence to the annuitant's: 5,542
(1) Surviving spouse; 5,544
(2) Children, share and share alike; 5,546
(3) Parents, share and share alike; 5,548
(4) Estate. 5,550
For purposes of this division an "annuitant" is the last 5,552
person who received a monthly benefit pursuant to the plan of 5,553
payment selected by the former member. Such payment shall be a 5,554
full discharge and release to the board from any future claim for 5,555
such payment. 5,556
(E) If the validity of marriage cannot be established to 5,558
the satisfaction of the board for the purpose of disbursing any 5,559
amount due under this section or section 3307.49 3307.66 of the 5,561
Revised Code, the board may accept a decision rendered by a court 5,562
having jurisdiction in the state in which the member was 5,563
119
domiciled at the time of death that the relationship constituted 5,564
a valid marriage at the time of death, or the "spouse" would have 5,565
the same status as a widow or widower for purposes of sharing the 5,566
distribution of the member's intestate personal property. 5,567
If the death of a member is caused by one of the following 5,570
beneficiaries, no amount due under this chapter to the 5,571
beneficiary shall be paid to the beneficiary in the absence of a 5,572
court order to the contrary filed with the board: 5,573
(1) A beneficiary who is convicted of, pleads guilty to, 5,575
or is found not guilty by reason of insanity of a violation of or 5,577
complicity in the violation of either of the following: 5,578
(a) Section 2903.01, 2903.02, or 2903.03 of the Revised 5,581
Code;
(b) An existing or former law of any other state, the 5,584
United States, or a foreign nation that is substantially 5,586
equivalent to section 2903.01, 2903.02, or 2903.03 of the Revised 5,588
Code; 5,589
(2) A beneficiary who is indicted for a violation of or 5,591
complicity in the violation of the sections or laws described in 5,592
division (F)(1)(a) or (b) of this section and is adjudicated 5,594
incompetent to stand trial;
(3) A beneficiary who is a juvenile found to be a 5,596
delinquent child by reason of committing an act that, if 5,597
committed by an adult, would be a violation of or complicity in 5,598
the violation of the sections or laws described in division 5,600
(F)(1)(a) or (b) of this section. 5,601
Sec. 3307.80 3307.563. For the purposes of this section, 5,610
"service credit" includes only service credit obtained pursuant 5,612
to sections 3307.28 3307.53, 3307.31 3307.71, 3307.512 3307.72, 5,614
and 3307.73 3307.77 of the Revised Code.
(A) The state teachers retirement system shall add to a 5,616
member's accumulated contributions to be paid under section 5,617
3307.46 3307.56 or 3307.48 3307.562 of the Revised Code an amount 5,620
paid from the employers' trust fund equal to one of the
120
following:
(1) If the member has less than three full years of 5,622
service credit, an amount equal to interest on the member's 5,623
accumulated contributions, compounded annually, at a rate not 5,625
greater than four per cent established by the board;
(2) If the member has three or more full years of service 5,627
credit, but less than five full years, an amount equal to 5,628
interest on the member's accumulated contributions, compounded 5,630
annually, at a rate not greater than six per cent established by
the board; 5,631
(3) If the member has five or more full years of service 5,633
credit, the sum of the following amounts: 5,634
(a) An amount equal to interest on the member's 5,636
accumulated contributions, compounded annually, at a rate not 5,638
greater than six per cent established by the board; 5,639
(b) An amount equal to fifty per cent of the sum of the 5,641
member's contributions and payments under sections 3307.28 5,642
3307.26, 3307.51 3307.71, and 3307.512 3307.77 of the Revised 5,644
Code plus an amount equal to interest on that amount at a rate 5,645
not greater than six per cent established by the board. 5,647
Interest for each year included in the calculation under 5,649
this section shall be calculated from the first day of the 5,650
following year to the last day of the month preceding payment 5,652
under section 3307.46 3307.56 or 3307.48 3307.562 of the Revised 5,653
Code.
(B) Notwithstanding sections 3307.46 3307.56 and 3307.48 5,656
3307.562 of the Revised Code, neither the beneficiaries, 5,657
survivors, nor estate of a deceased member who was granted
disability benefits prior to death is eligible for the payment of 5,658
any amount calculated under this section. 5,659
Sec. 3307.41 3307.57. To coordinate and integrate 5,668
membership in the state retirement systems, the following 5,670
provisions apply:
(A) As used in this section: 5,672
121
(1) "Retirement systems" means the public employees 5,674
retirement system, the state teachers retirement system, and the 5,675
school employees retirement system. 5,676
(2) In addition to the meaning given in division (L) of 5,678
section 3307.01 3307.50 of the Revised Code, "disability benefit" 5,680
means "disability benefit" as defined in sections 145.01 and 5,681
3309.01 of the Revised Code. 5,682
(B) At the member's option OF A MEMBER PARTICIPATING IN 5,684
THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED 5,685
CODE, total contributions and service credit in all retirement 5,686
systems, including amounts paid to restore service credit under 5,687
sections 145.311, 3307.282, and 3309.261 of the Revised Code, 5,688
shall be used in determining the eligibility for benefits. If 5,689
total contributions and service credit are combined, the 5,690
following provisions apply:
(1) Service retirement or a disability benefit is 5,692
effective on the first day of the month next following the later 5,693
of: 5,694
(a) The last day for which compensation was paid; 5,696
(b) The attainment of minimum age or service credit for 5,698
benefits provided under this section. 5,699
(2) "Total service credit" includes the total credit in 5,701
all retirement systems except that such credit shall not exceed 5,702
one year for any period of twelve months. 5,703
(3) In determining eligibility for a disability benefit, 5,705
the medical examiner's report to the board of any retirement 5,706
system, showing that the member's disability incapacitates the 5,707
member for the performance of duty, may be accepted as sufficient 5,709
for granting a disability benefit. 5,710
(4) The retirement system in which the member had the 5,712
greatest service credit, without adjustment, shall determine and 5,713
pay the total benefit. If the member's credit is equal in two or 5,715
more retirement systems, the system having the member's largest 5,716
total contributions shall determine and pay the total benefit. 5,717
122
(5) In determining the total credit to be used in 5,719
calculating a benefit, credit shall not be reduced below that 5,720
certified by the system or systems transferring credit, except 5,721
that such total combined service credit shall not exceed one year 5,722
of credit for any one "year" as defined in the statute governing 5,723
the system making the calculation. 5,724
(6) The retirement system determining and paying the 5,726
benefit shall receive from the other system or systems the 5,727
member's refundable account at retirement or the effective date 5,728
of a disability benefit plus an equal amount from the employers' 5,729
trust fund. 5,730
(a) The annuity rates and mortality tables of the 5,732
retirement system making the calculation and paying the benefit 5,733
shall be applicable. 5,734
(b) Deposits made for the purchase of additional income, 5,736
with guaranteed interest, upon the member's request, shall be 5,737
transferred to the retirement system paying the regular benefit. 5,738
The return upon such deposits shall be that offered by the 5,739
retirement system making the calculation and paying the regular 5,740
benefit. 5,741
(C) A person receiving a benefit under this section, who 5,743
accepts employment amenable to coverage in any retirement system 5,744
that participated in the person's combined benefit, shall be 5,745
subject to the applicable provisions of law governing such 5,747
re-employment. If the person is subject to section 3307.381 5,748
3307.35 of the Revised Code and exceeds the limits on 5,749
re-employment established by that section, the retirement system 5,750
paying a combined benefit shall terminate the entire pension 5,751
portion of the benefit for the period of re-employment that 5,752
exceeds the limit in that section.
If a retirant should be paid any amount to which the 5,754
retirant is not entitled under the applicable provisions of law 5,756
governing such re-employment, such amount shall be recouped by 5,757
the retirement system paying such benefit by utilizing any 5,758
123
recovery procedure available under the law of the retirement 5,759
system covering such re-employment. 5,760
Sec. 3307.38 3307.58. Any member PARTICIPATING IN THE PLAN 5,769
DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE who 5,770
has five years of service credit and has attained age sixty, or 5,772
who has twenty-five years of service credit and has attained age 5,773
fifty-five, or who has thirty years of service credit shall be 5,774
granted service retirement after filing with the state teachers 5,775
retirement board a completed application on a form approved by 5,776
the board.
(A) Service retirement shall be effective on the first day 5,778
of the month next following the later of: 5,779
(1) The last day for which compensation was paid; or 5,781
(2) The attainment of minimum age or service credit 5,783
eligibility for benefits provided under this section. 5,784
Except as otherwise provided in division (D)(E) of this 5,786
section, the service retirement benefit shall be the greater of 5,787
the benefits provided in divisions (B) and (C)(D) of this 5,788
section. 5,789
(B)(1) Subject to any adjustment made under division 5,791
(B)(2)(C) of this section, the annual single lifetime benefit of 5,793
a member shall be the greater of the amounts determined by the 5,794
member's Ohio service credit multiplied by one of the following: 5,796
(a)(1) Eighty-six dollars; 5,798
(b) Two (2)(a) THE SUM OF THE FOLLOWING AMOUNTS: 5,800
(i) FOR EACH OF THE FIRST THIRTY YEARS OF OHIO SERVICE 5,802
CREDIT, TWO and one-tenth TWO-TENTHS per cent of the member's 5,804
final average salary, except that OR, SUBJECT TO THE LIMITATION 5,806
DESCRIBED IN DIVISION (B)(2)(b) OF THIS SECTION, TWO AND 5,807
FIVE-TENTHS PER CENT OF THE MEMBER'S FINAL AVERAGE SALARY IF THE 5,808
MEMBER HAS THIRTY-FIVE OR MORE YEARS OF SERVICE CREDIT UNDER 5,809
SECTION 3307.53, 3307.57, 3307.75, 3307.751, 3307.752, 3307.761, 5,811
3307.77, OR 3307.771 OF THE REVISED CODE, DIVISION (A)(2) OR (B) 5,812
OF FORMER SECTION 3307.513 OF THE REVISED CODE, FORMER SECTION 5,813
124
3307.514 OF THE REVISED CODE, SECTION 3307.72 OF THE REVISED CODE 5,814
EARNED AFTER JULY 1, 1978, OR ANY COMBINATION OF SERVICE CREDIT 5,815
UNDER THOSE SECTIONS;
(ii) FOR EACH YEAR OR FRACTION OF A YEAR OF OHIO SERVICE 5,817
CREDIT IN EXCESS OF THIRTY YEARS, TWO AND TWO-TENTHS PER CENT OF 5,819
THE MEMBER'S FINAL AVERAGE SALARY OR, SUBJECT TO THE LIMITATION 5,821
DESCRIBED IN DIVISION (B)(2)(b) OF THIS SECTION, if the member 5,823
has more than thirty years service credit earned under section 5,824
3307.31 or purchased under section 3307.512 3307.53, 3307.57, 5,828
3307.75, 3307.751, 3307.752, 3307.761, 3307.77, OR 3307.771 of 5,829
the Revised Code, the per cent shall be DIVISION (A)(2) OR (B) OF 5,831
FORMER SECTION 3307.513 OF THE REVISED CODE, FORMER SECTION 5,832
3307.514 OF THE REVISED CODE, SECTION 3307.72 OF THE REVISED CODE
EARNED AFTER JULY 1, 1978, OR ANY COMBINATION OF SERVICE CREDIT 5,833
UNDER THOSE SECTIONS, the per cent OF FINAL AVERAGE SALARY shown 5,835
in the following schedule times the member's final average salary 5,837
for each corresponding year or fraction of a year of service 5,838
credit earned or purchased under those sections that is in excess 5,840
of thirty years:
Year Per Year Per 5,843
of Cent of Cent 5,844
Service for that Service for that 5,846
Credit Year Credit Year 5,847
30.01-3100 31.00 2.5% 37.01-3800 38.00 3.2% 5,849
31.01-3200 32.00 2.6 38.01-3900 39.00 3.3 5,851
32.01-33.00 2.7 39.01-40.00 3.4 5,852
33.01-34.00 2.8 40.01-41.00 3.5 5,853
34.01-35.00 2.9 41.01-42.00 3.6 5,854
35.01-36.00 3.0 42.01-43.00 3.7 5,855
36.01-37.00 3.1 5,856
For purposes of this schedule, years of service credit shall be 5,860
rounded to the nearest one-hundredth of a year.
(b) FOR PURPOSES OF DIVISION (B)(2)(a) OF THIS SECTION, A 5,863
PERCENTAGE OF FINAL AVERAGE SALARY IN EXCESS OF TWO AND 5,864
125
TWO-TENTHS PER CENT SHALL BE APPLIED TO SERVICE CREDIT UNDER 5,865
SECTION 3307.57 OR 3307.761 OF THE REVISED CODE ONLY IF THE 5,866
SERVICE CREDIT WAS ESTABLISHED BY CONTRIBUTIONS MADE UNDER 5,867
SECTION 145.47, 742.31, 3309.47, 3309.58, OR 5505.15 OF THE 5,868
REVISED CODE OR RESTORED UNDER SECTION 145.31, 742.371, 3309.26, 5,869
OR 5505.20 OF THE REVISED CODE.
(2)(C) The annual single lifetime benefit of a member 5,871
determined under division (B)(1) of this section shall be 5,872
adjusted by the greater per cent shown in the following schedule 5,873
opposite the member's attained age or Ohio service credit. 5,874
Years of Per Cent 5,876
Attained or Ohio Service of Base 5,877
Age Credit Amount 5,878
58 25 75% 5,879
59 26 80 5,880
60 27 85 5,881
61 88 5,882
28 90 5,883
62 91 5,884
63 94 5,885
29 95 5,886
64 97 5,887
65 30 or more 100 5,888
Members shall vest the right to a benefit in accordance 5,891
with the following schedule, based on the member's attained age 5,892
by September 1, 1976: 5,893
Per Cent 5,895
Attained of Base 5,896
Age Amount 5,897
66 102% 5,899
67 104 5,900
68 106 5,901
69 108 5,902
70 or more 110 5,903
126
(3) The annual single lifetime benefit determined under 5,906
this division (B) OF THIS SECTION shall not exceed the lesser of 5,908
one hundred per cent of the final average salary or the limit 5,910
established by section 415 of the "Internal Revenue Code of 5,911
1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended. 5,912
(C)(D) The annual single lifetime benefit of a member 5,914
shall not exceed the lesser of the sum of the following amounts 5,915
or the limit established by section 415 of the "Internal Revenue 5,916
Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended: 5,917
(1) An annuity with a reserve equal to the member's 5,919
accumulated contributions; 5,920
(2) A pension equal to the amount in division (C)(D)(1) of 5,922
this section; 5,923
(3) An additional pension of forty dollars annually 5,925
multiplied by the number of years of prior and military service 5,926
credit, except years of credit purchased under section 3307.021 5,927
3307.751 OR 3307.752 of the Revised Code; 5,930
(4) An additional basic annual pension of one hundred 5,932
eighty dollars, provided the member had ten or more years of Ohio 5,933
service credit as of October 1, 1956, except that the additional 5,935
basic annual pension shall not exceed the sum of the annual
benefits provided by divisions (C)(D)(1), (2), and (3) of this 5,936
section. 5,937
(D)(E) Benefits determined under this section shall be 5,939
paid as provided in section 3307.50 3307.60 of the Revised Code. 5,940
Sec. 3307.39 3307.59. (A) A recipient of a disability 5,949
allowance under section 3307.431 3307.631 of the Revised Code who 5,951
is subject to division (C)(3) of that section may make 5,953
application for service retirement under this section. 5,954
Retirement shall be effective on the first day of the first month 5,955
following the last day for which the disability allowance is 5,956
paid.
(B) The annual allowance payable under this section shall 5,958
consist of the sum of the amounts determined under divisions 5,959
127
(B)(1) and (2) of this section: 5,960
(1) The greater of the following: 5,962
(a) An allowance calculated as provided in section 3307.38 5,964
3307.58 of the Revised Code, excluding any period during which 5,965
the applicant received a disability benefit under section 5,966
3307.431 3307.631 of the Revised Code; 5,968
(b) An allowance calculated by multiplying the applicant's 5,970
total service credit, including service credit for the last 5,971
continuous period during which he THE APPLICANT received a 5,972
disability benefit under section 3307.431 3307.631 of the Revised 5,974
Code, by two and one-tenth TWO-TENTHS per cent of his THE 5,975
APPLICANT'S final average salary, except that the allowance shall 5,978
be determined without application of division (B) of section 5,979
3307.013 3307.501 of the Revised Code and shall not exceed 5,980
forty-five per cent of the applicant's final average salary. 5,981
(2) An amount equal to the additional allowance the 5,983
recipient would receive under section 3307.403 3307.67 of the 5,984
Revised Code, plus any other additional amount he THE RECIPIENT 5,986
would receive under this chapter, had he THE RECIPIENT retired 5,988
under section 3307.38 3307.58 of the Revised Code effective on 5,990
the effective date of his THE RECIPIENT'S most recent continuous 5,992
period of receipt of a disability benefit under section 3307.431 5,993
3307.631 of the Revised Code.
(C) The allowance calculated under division (B) of this 5,995
section, exclusive of any amount added under division (B)(2) of 5,996
this section based on section 3307.403 3307.67 of the Revised 5,997
Code, shall be the base for all future additional allowances 5,999
under section 3307.403 3307.67 of the Revised Code. 6,000
The anniversary date for future additional allowances under 6,002
section 3307.403 3307.67 of the Revised Code shall be the 6,003
effective date of the recipient's most recent continuous period 6,005
of receipt of a disability benefit under section 3307.431 6,006
3307.631 of the Revised Code. 6,007
(D) The retirement allowance determined under this section 6,009
128
shall be paid as provided in section 3307.38 3307.58 of the 6,010
Revised Code. 6,011
Sec. 3307.50 3307.60. (A) Upon application for retirement 6,020
as provided in section 3307.38 3307.58 or 3307.39 3307.59 of the 6,022
Revised Code, the retirant may elect to receive a single lifetime 6,023
benefit, or may elect to receive the actuarial equivalent of the 6,025
retirant's benefit in a lesser amount, payable for life, and 6,026
continuing after death to a beneficiary under one of the 6,028
following optional plans:
(1) Option 1. The retirant's lesser benefit shall be paid 6,030
for life to the sole beneficiary named at retirement. 6,032
(2) Option 2. Some other portion of the retirant's 6,034
benefit shall be paid for life to the sole beneficiary named at 6,036
retirement. The beneficiary's monthly amount shall not exceed 6,038
the monthly amount payable to the retirant during the retirant's 6,039
lifetime.
(3) Option 3. The retirant's lesser benefit established 6,041
as provided under option 1 or option 2 shall be paid for life to 6,043
the sole beneficiary named at retirement, except that in the 6,045
event of the death of the sole beneficiary or termination of a 6,046
marital relationship between the retirant and the sole 6,047
beneficiary the retirant may elect to return to a single lifetime 6,048
benefit equivalent as determined by the state teachers retirement 6,049
board, if, in the case of termination of a marital relationship, 6,051
the election is made with the written consent of the beneficiary 6,052
or pursuant to an order of the court with jurisdiction over 6,053
termination of the marital relationship. 6,054
(4) Option 4. Upon the retirant's death before the 6,056
expiration of a certain period from the retirement date and 6,058
elected by the retirant, and approved by the board, the 6,060
retirant's benefit shall be continued for the remainder of such 6,062
period to the beneficiary. Monthly benefits shall not be paid to 6,063
joint beneficiaries, but they may receive the present value of 6,064
any remaining payments in a lump sum settlement. If all 6,065
129
beneficiaries die before the expiration of the certain period, 6,066
the present value of all payments yet remaining in such period 6,067
shall be paid to the estate of the beneficiary last receiving. 6,068
(5) Option 5. A plan of payment established by the state 6,070
teachers retirement board combining any of the features of 6,071
options 1, 2, and 4. 6,072
(B) Until the first payment is made to a former member 6,074
under section 3307.38 3307.58 or 3307.39 3307.59 of the Revised 6,076
Code, the former member may change the selection of a plan of 6,078
payment. If death occurs prior to an election of a plan of 6,080
payment, option 1 shall be paid to the spouse or other sole 6,081
dependent beneficiary.
(C) If the total benefit paid under this section is less 6,083
than the balance in the teachers' savings fund, the difference 6,085
shall be paid to the beneficiary provided under division (D) of 6,086
section 3307.48 3307.562 of the Revised Code. 6,087
(D) In the case of a retirant who elected an optional plan 6,089
prior to September 15, 1989: 6,090
(1) The death of the spouse or other designated 6,092
beneficiary following retirement shall, at the election of the 6,093
retirant, cancel any optional plan selected at retirement to 6,094
provide continuing lifetime benefits to the spouse or other 6,095
beneficiary and return the retirant to a single lifetime benefit 6,097
equivalent as determined by the board.
(2) A divorce, annulment, or marriage dissolution shall, 6,099
at the election of the retirant, cancel any optional plan 6,100
selected at retirement to provide continuing lifetime benefits to 6,101
the spouse as designated beneficiary and return the retirant to a 6,103
single lifetime benefit equivalent as determined by the board if 6,105
the election is made with the written consent of the beneficiary 6,106
or pursuant to an order of a court of common pleas or the court 6,107
of another state with jurisdiction over the termination of the 6,108
marriage.
(E) Following marriage or remarriage, a retirant may elect 6,110
130
a new optional plan of payment based on the actuarial equivalent 6,111
of the retirant's single lifetime benefit, as determined by the 6,113
board, except that if the retirant is receiving a retirement 6,114
allowance under an optional plan that provides for continuation 6,115
of benefits after death to a former spouse, the retirant may 6,116
elect a new optional plan of payment only with the written 6,117
consent of the former spouse or pursuant to an order of the court 6,118
with jurisdiction over the termination of the marriage. Such 6,119
plan shall become effective the first of the month following an 6,120
application on a form approved by the board. 6,121
(F)(1) Unless one of the following occurs, an application 6,123
for service retirement made pursuant to section 3307.38 3307.58 6,124
or 3307.39 3307.59 of the Revised Code by a married person shall 6,126
be considered an election of a benefit under option 2 as provided 6,127
for in division (A)(2) of this section under which one-half of 6,128
the lesser benefit payable during the life of the retirant will 6,129
be paid after death to the retirant's spouse for life as sole 6,130
beneficiary:
(a) The retirant selects an optional plan under division 6,132
(A) of this section providing for payment after death to the 6,134
retirant's spouse for life as sole beneficiary of more than 6,135
one-half of the lesser benefit payable during the life of the 6,136
retirant.
(b) The retirant submits to the retirement board a written 6,138
statement signed by the spouse attesting that the spouse consents 6,139
to the retirant's election to receive a single lifetime annuity 6,142
or a payment under an optional benefit plan under which after the 6,143
death of the retirant the surviving spouse will receive less than 6,144
one-half of the lesser benefit payable during the life of the 6,145
retirant.
(2) An application for retirement shall include an 6,147
explanation of all of the following: 6,148
(a) That, if the member is married, unless the spouse 6,151
consents to another plan of payment, the member's retirement 6,152
131
allowance will be paid under "option 2" and consist of the 6,153
actuarial equivalent of the member's retirement allowance in a 6,154
lesser amount payable for life and one-half of the lesser 6,155
allowance continuing after death to the surviving spouse for the
life of the spouse; 6,156
(b) A description of the alternative plans of payment 6,159
available with the consent of the spouse;
(c) That the spouse may consent to another plan of payment 6,162
and the procedure for giving consent;
(d) That consent is irrevocable once notice of consent is 6,164
filed with the board. 6,165
Consent shall be valid only if it is signed, in writing, 6,167
and witnessed by a notary public. 6,168
(3) If the retirant does not select an optional plan of 6,170
payment as described in division (F)(1)(a) of this section and 6,171
the board does not receive the written statement provided for in 6,172
division (F)(1)(b) of this section, it shall determine and pay 6,173
the retirement allowance in accordance with this division, except 6,175
that the board may provide by rule for waiver by the board of the 6,176
statement and payment of the benefits other than in accordance 6,177
with this division or payment under section 3307.46 3307.56 of 6,178
the Revised Code if the retirant is unable to obtain the 6,181
statement due to absence or incapacity of the spouse or other 6,182
cause specified by the board. 6,183
(G) For the purpose of determining actuarial equivalence 6,185
under this section, on the advice of an actuary employed by the 6,186
board, the board shall adopt mortality tables that may take into 6,187
consideration the membership experience of the state teachers 6,188
retirement system and may also include the membership experience 6,189
of the public employees retirement system and the school 6,190
employees retirement system. 6,191
Sec. 3307.405 3307.61. The board of the state teachers 6,200
retirement system BOARD shall make available to each member or 6,202
former member receiving a monthly allowance or benefit UNDER 6,204
132
SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE on or after 6,205
January 1, 1968, who has attained the age of sixty-five years, 6,206
and who is not eligible to receive hospital insurance benefits 6,207
under the federal old age, survivors, and disability insurance 6,208
program, hospital insurance coverage substantially equivalent to 6,209
the federal hospital insurance benefits, Social Security 6,210
Amendments of 1965, 79 Stat. 291, 42 U.S.C.A. 1395c, as amended. 6,211
This coverage shall also be made available, to the wife, husband, 6,212
widow, or widower of such member or former member, provided such 6,213
wife, husband, widow, or widower has attained age sixty-five and 6,214
is not eligible to receive hospital insurance benefits under the 6,215
federal old age, survivors, and disability insurance program. 6,216
The widow or widower of a member or former member shall be 6,217
eligible for such coverage only if he or she is the recipient of 6,218
a monthly allowance or benefit from this system. One-half of the 6,219
cost of the premium for such coverage shall be paid from the 6,220
appropriate funds of the state teachers retirement system and 6,221
one-half by the recipient of the allowance or benefit. 6,222
The cost of such coverage, paid from the funds of the 6,224
system, shall be included in the employer's contribution rate 6,225
provided by sections 3307.53 3307.28, 3307.56 3307.30, and 6,227
3307.64 3307.31 of the Revised Code. The retirement board is 6,228
authorized to make all necessary rules pursuant to the purpose 6,229
and intent of this section, and shall contract for such coverage 6,230
as provided in section 3307.74 3307.39 of the Revised Code. 6,232
Notwithstanding sections 3307.53 3307.28, 3307.56 3307.30, 6,235
and 3307.64 3307.31 of the Revised Code, the employer's 6,236
contribution rate shall not be increased until July 1, 1969, or 6,237
later to reflect the increased costs created by this section. 6,238
Sec. 3307.42 3307.62. (A) The state teachers retirement 6,247
system shall provide disability coverage to each member 6,249
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 6,250
3307.79 OF THE REVISED CODE who has at least five years of total 6,251
service credit.
133
Not later than October 16, 1992, the state teachers 6,253
retirement board shall give each person who is a member on July 6,254
29, 1992, the opportunity to elect disability coverage either 6,256
under FORMER section 3307.43 of the Revised Code or under FORMER 6,258
section 3307.431 of the Revised Code. The board shall mail 6,260
notice of the election, accompanied by an explanation of the 6,261
coverage under each of the Revised Code sections and a form on 6,262
which the election is to be made, to each member at the member's 6,263
last known address. The board shall also provide the explanation
and form to any member on the member's request. 6,264
Regardless of whether the member actually receives notice 6,266
of the right to make an election, a member who fails to file a 6,268
valid election under this section shall be considered to have
elected disability coverage under section 3307.43 3307.63 of the 6,270
Revised Code. To be valid, an election must be made on the form 6,271
provided by the retirement board, signed by the member, and filed 6,272
with the board not later than one hundred eighty days after the 6,273
date the notice was mailed, or, in the case of a form provided at 6,274
the request of a member, a date specified by rule of the 6,275
retirement board. Once made, an election is irrevocable, but if 6,276
the member ceases to be a member of the retirement system, the 6,277
election is void. If a person who makes an election under this 6,278
section also makes an election under section 145.35 or 3309.39 of 6,279
the Revised Code, the election made for the system that pays a 6,280
disability benefit to that person shall govern the benefit. 6,281
Disability coverage shall be provided under section 6,283
3307.431 3307.631 of the Revised Code for persons who become 6,284
members after July 29, 1992, and for members who elect under this 6,287
division to be covered under section 3307.431 3307.631 of the 6,289
Revised Code.
The retirement board may adopt rules governing elections 6,291
made under this division. 6,292
(B) Application for a disability benefit may be made by a 6,294
member, by a person acting in the member's behalf, or by the 6,295
134
member's employer, provided IF the member IS PARTICIPATING IN THE 6,297
PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED 6,298
CODE, has at least five years of total service credit, and has 6,301
disability coverage under section 3307.43 3307.63 or 3307.431 6,302
3307.631 of the Revised Code. The application for a disability 6,304
benefit shall be made on a form approved by the state teachers 6,305
retirement board. The benefit payable to any member whose 6,306
application is approved shall become effective on the first day 6,307
of the month next following the later of the following:
(1) The last day for which compensation was paid; 6,309
(2) The attainment of eligibility for a disability 6,311
benefit. 6,312
(C) Medical examination of the member shall be conducted 6,314
by a competent, disinterested physician or physicians selected by 6,315
the retirement board to determine whether the member is mentally 6,316
or physically incapacitated for the performance of duty by a 6,317
disabling condition, either permanent or presumed to be permanent 6,318
for twelve continuous months following the filing of an 6,319
application. The disability must have occurred since last 6,321
becoming a member, or it must have increased since last becoming 6,322
a member to such an extent as to make the disability permanent or 6,323
presumably permanent for twelve continuous months following the 6,324
filing of an application. 6,325
(D) Application for a disability benefit must be made 6,327
within two years from the date the member's contributing service 6,328
terminated, unless the retirement board determines that the 6,329
member's medical records demonstrate conclusively that at the 6,330
time the two-year period expired, the member was physically or 6,331
mentally incapacitated for duty as a teacher and unable to make 6,332
application. Application may not be made by any person receiving 6,333
service retirement benefits under section 3307.38 3307.58 or 6,334
3307.39 3307.59 of the Revised Code or any person who, pursuant 6,336
to section 3307.46 3307.56 of the Revised Code, has been paid the 6,337
accumulated contributions standing to the credit of the person's 6,339
135
individual account in the teachers' savings fund. 6,340
(E) If the physician or physicians determine that the 6,344
member qualifies for a disability benefit, the retirement board 6,345
concurs with the determination, and the member agrees to medical 6,346
treatment as specified in division (G) of this section, the 6,347
member shall receive a disability benefit under section 3307.43 6,348
3307.63 or 3307.431 3307.631 of the Revised Code. If such 6,350
physician or physicians determine that the member does not 6,351
qualify for a disability benefit, the report of the examiner or 6,352
examiners shall be evaluated by a board of medical review 6,353
composed of three physicians appointed by the retirement board. 6,354
(F) The state teachers retirement board shall render an 6,356
order determining whether or not the applicant shall be granted a 6,357
disability benefit. Notification to the applicant shall be 6,358
issued, and upon the request of an applicant who is denied a 6,359
disability benefit, a hearing or appeal relative to such order 6,360
shall be conducted in accordance with procedures established by 6,361
the retirement board. 6,362
(G) The state teachers retirement board shall adopt rules 6,365
requiring each disability benefit recipient, as a condition of 6,366
continuing to receive a disability benefit, to agree in writing 6,367
to obtain any medical treatment recommended by the board's 6,368
physician and submit medical reports regarding the treatment. If 6,370
the board determines that a disability benefit recipient is not 6,371
obtaining the medical treatment or the board does not receive a
required medical report, the disability benefit shall be 6,372
suspended until the treatment is obtained, the report is received 6,374
by the board, or the board's physician certifies that the 6,375
treatment is no longer helpful or advisable. Should the 6,377
recipient's failure to obtain treatment or submit a medical
report continue for one year, the recipient's right to the 6,379
disability benefit shall be terminated as of the effective date 6,380
of the original suspension.
(H) If an employer files an application for a disability 6,382
136
benefit as a result of a member having been separated from 6,383
service because the member is considered to be incapacitated for 6,385
the performance of duty, and the board denies the disability
benefit, the board shall so certify to the employer and such THE 6,386
employer shall restore the member to the member's previous 6,388
position and salary or to a similar position and salary. 6,389
Sec. 3307.43 3307.63. A member PARTICIPATING IN THE PLAN 6,399
DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE who 6,400
has elected disability coverage under this section, has, not 6,402
attained age sixty, and is determined by the state teachers 6,404
retirement board under section 3307.42 3307.62 of the Revised 6,406
Code to qualify for a disability benefit shall be retired on 6,407
disability under this section.
Upon disability retirement, a member shall receive an 6,409
annual amount that shall consist of: 6,410
(A) An annuity having a reserve equal to the amount of the 6,412
member's accumulated contributions at that time; 6,413
(B) A pension that shall be the difference between the 6,415
annuity and an annual amount determined by multiplying the number 6,416
of years of Ohio service credit of such member, and in addition 6,417
the number of years and fraction of a year between the effective 6,418
date of his THE MEMBER'S disability retirement and the date he 6,420
THE MEMBER attained age sixty, assuming continuous service, by 6,421
eighty-six dollars, or by two per cent of his THE MEMBER'S final 6,422
average salary, whichever is greater. Such disability retirement 6,424
shall not be less than thirty per cent nor more than seventy-five 6,425
per cent of his THE MEMBER'S final average salary, except that it 6,427
shall not exceed any limit to which the retirement system is 6,428
subject under section 415 of the "Internal Revenue Code of 1986," 6,429
100 Stat. 2085, 26 U.S.C.A. 415, as amended.
If the member is not receiving a disability benefit under 6,431
section 3307.41 3307.57 of the Revised Code, but is receiving a 6,433
disability benefit from either the public employees retirement 6,434
system or the school employees retirement system, then such 6,435
137
member shall not be eligible for service credit based upon the 6,436
number of years and fractions thereof between the date of 6,437
disability and the date he THE MEMBER attained age sixty as 6,438
otherwise provided in this section. 6,440
A disability retirant under this section whose disability 6,442
retirement has been terminated, when eligible, may apply for 6,443
service retirement provided by section 3307.38 3307.58 of the 6,444
Revised Code. 6,446
Sec. 3307.431 3307.631. (A) A member with PARTICIPATING 6,456
IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE
REVISED CODE WHO HAS disability coverage under this section who 6,458
AND is determined by the state teachers retirement board under 6,459
section 3307.42 3307.62 of the Revised Code to qualify for a 6,461
disability benefit shall receive a disability allowance under 6,462
this section. The allowance shall be an annual amount equal to 6,463
the greater of the following:
(1) Forty-five per cent of the member's final average 6,465
salary; 6,466
(2) The member's total service credit multiplied by two 6,468
and one-tenth TWO-TENTHS per cent of his THE MEMBER'S final 6,470
average salary, not exceeding sixty per cent of his THE MEMBER'S 6,472
final average salary.
(B) Sufficient reserves for payment of the disability 6,474
allowance shall be transferred to the annuity and pension reserve 6,475
fund from the employers' trust fund. The accumulated 6,476
contributions of the member shall remain in the teachers' savings 6,477
fund. No part of the allowance paid under this section shall be 6,478
charged against the member's accumulated contributions. 6,479
(C) A disability allowance paid under this section shall 6,481
terminate at the earliest of the following: 6,482
(1) The effective date of service retirement under section 6,484
3307.38 3307.57 or 3307.41 3307.58 of the Revised Code; 6,486
(2) The date the allowance is terminated under section 6,488
3307.44 3307.64 of the Revised Code; 6,489
138
(3) The later of the last day of the month in which the 6,491
recipient attains age sixty-five, or the last day of the month in 6,492
which the benefit period ends as follows: 6,493
Attained Age at Effective Date 6,495
of Disability Allowance Benefit Period 6,496
60 or 61 60 months 6,497
62 or 63 48 months 6,498
64 or 65 36 months 6,499
66, 67, or 68 24 months 6,500
69 or older 12 months 6,501
Sec. 3307.44 3307.64. A disability benefit recipient, 6,511
notwithstanding section 3319.13 of the Revised Code, shall retain 6,512
membership in the state teachers retirement system and shall be 6,513
considered on leave of absence during the first five years 6,515
following the effective date of a disability benefit.
The state teachers retirement board shall require any 6,517
disability benefit recipient to submit to an annual medical 6,519
examination by a physician selected by the board, except that the 6,520
board may waive the medical examination if the board's physician 6,521
certifies that the recipient's disability is ongoing. If a 6,522
disability benefit recipient refuses to submit to a medical 6,524
examination, the recipient's disability benefit shall be
suspended until the recipient withdraws the refusal. If the 6,526
refusal continues for one year, all the recipient's rights under 6,528
and to the disability benefit shall be terminated as of the 6,529
effective date of the original suspension. 6,530
After the examination, the examiner shall report and 6,533
certify to the board whether the disability benefit recipient is 6,534
no longer physically and mentally incapable of resuming the 6,535
service from which the recipient was found disabled. If the 6,537
board concurs in a report by the examining physician that the 6,539
disability benefit recipient is no longer incapable, the payment 6,541
of a disability benefit shall be terminated not later than the 6,542
following thirty-first day of August or upon employment as a 6,543
139
teacher prior thereto. If the leave of absence has not expired, 6,544
the board shall so certify to the disability benefit recipient's 6,545
last employer before being found disabled that the recipient is 6,546
no longer physically and mentally incapable of resuming service 6,548
that is the same or similar to that from which the recipient was 6,549
found disabled. If the recipient was under contract at the time 6,551
the recipient was found disabled, the employer by the first day 6,553
of the next succeeding year shall restore the recipient to the 6,554
recipient's previous position and salary or to a position and 6,555
salary similar thereto, unless the recipient was dismissed or 6,557
resigned in lieu of dismissal for dishonesty, misfeasance, 6,558
malfeasance, or conviction of a felony. 6,559
A disability benefit shall terminate if the disability 6,562
benefit recipient becomes employed as a teacher in any public or 6,563
private school or institution in this state or elsewhere. An 6,564
individual receiving a disability benefit from the state teachers 6,566
retirement system shall be ineligible for any employment as a 6,567
teacher and it shall be unlawful for any employer to employ the 6,568
individual as a teacher. If any employer should employ or 6,570
reemploy the individual prior to the termination of a disability 6,571
benefit, the employer shall file notice of employment with the 6,572
state teachers retirement board designating the date of the 6,574
employment. If the individual should be paid both a disability 6,576
benefit and also compensation for teaching service for all or any 6,577
part of the same month, the secretary of the state teachers 6,578
retirement board shall certify to the employer or to the
superintendent of public instruction the amount of the disability 6,579
benefit received by the individual during the employment, which 6,581
amount shall be deducted from any amount due the employing 6,582
district under Chapter 3317. of the Revised Code or shall be paid 6,583
by the employer to the annuity and pension reserve fund. 6,584
Each disability benefit recipient shall file with the board 6,588
an annual statement of earnings, current medical information on 6,590
the recipient's condition, and any other information required in 6,591
140
rules adopted by the board. The board may waive the requirement 6,593
that a disability benefit recipient file an annual statement of 6,594
earnings or current medical information if the board's physician 6,595
certifies that the recipient's disability is ongoing. 6,596
The board shall annually examine the information submitted 6,598
by the recipient. If a disability benefit recipient refuses to 6,599
file the statement or information, the disability benefit shall 6,601
be suspended until the statement and information are filed. If 6,602
the refusal continues for one year, the recipient's right to the 6,603
disability benefit shall be terminated as of the effective date 6,604
of the original suspension. 6,605
A disability benefit also may be terminated by the board at 6,607
the request of the disability benefit recipient. 6,608
If disability retirement under section 3307.43 3307.63 of 6,610
the Revised Code is terminated for any reason, the annuity and 6,611
pension reserves at that time in the annuity and pension reserve 6,612
fund shall be transferred to the teachers' savings fund and the 6,613
employers' trust fund, respectively. If the total disability 6,614
benefit paid was less than the amount of the accumulated 6,615
contributions of the member transferred to the annuity and 6,616
pension reserve fund at the time of the member's disability 6,617
retirement, then the difference shall be transferred from the 6,618
annuity and pension reserve fund to another fund as required. In 6,619
determining the amount of a member's account following the 6,620
termination of disability retirement for any reason, the total 6,621
amount paid shall be charged against the member's refundable 6,622
account. 6,623
If a disability allowance paid under section 3307.431 6,625
3307.631 of the Revised Code is terminated for any reason, the 6,627
reserve on the allowance at that time in the annuity and pension 6,628
reserve fund shall be transferred from that fund to the 6,629
employers' trust fund.
If a former disability benefit recipient again becomes a 6,631
contributor, other than as an other system retirant under section 6,632
141
3307.381 3307.35 of the Revised Code, to this retirement system, 6,634
the school employees retirement system, or the public employees 6,635
retirement system, and completes at least two additional years of 6,636
service credit, the former disability benefit recipient shall 6,637
receive credit for the period as a disability benefit recipient. 6,638
Sec. 3307.49 3307.66. (A) As used in this section, 6,647
"physically or mentally incompetent" means incapable of earning a 6,649
living because of a physically or mentally disabling condition. 6,650
Physical or mental incompetency may be determined by a court or 6,651
by a doctor of medicine or osteopathic medicine appointed by the 6,652
state teachers retirement board. 6,653
(B) For the purposes of this section: 6,655
(1) A qualified spouse is the surviving spouse of a 6,658
deceased member of the state teachers retirement system 6,659
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 6,660
3307.79 OF THE REVISED CODE who is one of the following: 6,661
(a) Age sixty-two or any age if the deceased member had 6,663
ten or more years of Ohio service credit; 6,664
(b) Caring for a qualified child; 6,666
(c) Adjudged physically or mentally incompetent; 6,668
(d) Any age if the deceased member was eligible for a 6,670
service retirement allowance as provided in section 3307.38 6,671
3307.58 of the Revised Code and the surviving spouse elects to 6,673
receive a benefit under division (C)(1) of this section. 6,674
(2) A qualified child is the child of a deceased member 6,679
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO
3307.79 OF THE REVISED CODE who is both of the following: 6,680
(a) Unmarried; 6,682
(b) Under age eighteen, or under age twenty-two if 6,685
attending an institution of learning or training pursuant to a 6,686
program designed to complete in each school year the equivalent 6,687
of at least two-thirds of the full-time curriculum requirements 6,688
of such institution and as further determined by board policy, or 6,689
any age if adjudged physically or mentally incompetent. 6,690
142
(3) A qualified parent is a dependent parent of a deceased 6,694
member PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO
3307.79 OF THE REVISED CODE who is age sixty-five or older. 6,695
(4) A person is a "qualified survivor" if the person 6,697
qualifies as a surviving spouse, child, or dependent parent. 6,700
(C) Except as provided in division (G)(1) of this section, 6,703
in lieu of accepting the payment of the accumulated account of a 6,704
member PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 6,705
3307.79 OF THE REVISED CODE who dies before service retirement, a
beneficiary, as determined in section 3307.48 3307.562 of the 6,706
Revised Code, may elect to forfeit the accumulated account and to 6,708
substitute benefits under this division. 6,709
(1) If a deceased member was eligible for a service 6,711
retirement allowance as provided in section 3307.38 3307.58 or 6,712
3307.39 3307.59 of the Revised Code, a surviving spouse or an 6,714
individual designated as the member's sole beneficiary pursuant 6,715
to division (B) of section 3307.48 3307.562 of the Revised Code 6,716
who was a qualified child or dependent parent of the member or 6,718
received one-half or more of support from the member during the 6,719
twelve-month period preceding the member's death may elect to 6,720
receive a monthly benefit computed as the joint-survivor 6,721
allowance designated as option 1 in section 3307.50 3307.60 of 6,722
the Revised Code, which the member would have received had the 6,724
member retired on the last day of the month of death and had the 6,726
member at that time selected such joint-survivor plan. Payment 6,728
shall begin with the month subsequent to the member's death. 6,729
(2) If a deceased member had completed at least one and 6,731
one-half years of credit for Ohio service, with at least 6,732
one-quarter year of Ohio contributing service credit within the 6,733
two and one-half years prior to the date of death, or was 6,734
receiving at the time of death a disability benefit as provided 6,735
in section 3307.43 3307.63 or 3307.431 3307.631 of the Revised 6,737
Code, a surviving spouse or other qualified survivor may elect to 6,739
receive monthly benefits as provided in division (C)(2) of this 6,740
143
section. The surviving spouse or other qualified survivor shall 6,741
elect one of the following methods of calculating benefits 6,743
elected under division (C)(2) of this section, which shall, 6,744
except as provided in division (G)(1) of this section, remain in 6,745
effect without regard to any change in the number of qualified 6,746
survivors:
Or 6,748
(a) Number Annual benefit as a Monthly benefit 6,749
of qualified per cent of member's shall not be 6,750
survivors final average salary less than 6,751
1 25% $ 96 6,754
2 40 186 6,755
3 50 236 6,756
4 55 236 6,757
5 or more 60 236 6,758
Annual benefit as a 6,761
per cent of member's 6,762
(b) Years of service final average salary 6,763
20 29% 6,766
21 33 6,767
22 37 6,768
23 41 6,769
24 45 6,770
25 48 6,771
26 51 6,772
27 54 6,773
28 57 6,774
29 60 6,775
(D) If a benefit is calculated pursuant to division 6,778
(C)(2)(a) of this section, benefits to a surviving spouse shall 6,779
be paid in the amount determined for the first qualifying 6,780
survivor in division (C)(2)(a) of this section, but shall not be 6,782
less than one hundred six dollars per month if the deceased 6,783
member had ten or more years of Ohio service credit. All other 6,784
144
qualifying survivors shall share equally in the benefit or 6,786
remaining portion thereof. 6,787
If a benefit is calculated pursuant to division (C)(2)(b) 6,789
of this section and is payable to more than one qualified 6,790
survivor, the benefit shall be apportioned equally among the 6,792
qualified survivors, except that if there is a surviving spouse, 6,794
the portion of the benefit allocated to the surviving spouse 6,795
shall be as follows: 6,796
Number of 6,798
survivors Spouse's share of total benefit 6,799
2 62.5% 6,802
3 50.0% 6,803
4 45.45% 6,804
5 or more 41.67% 6,805
(E) Benefits payable under division (C)(2) of this section 6,808
shall begin or resume on the first day of the month following the 6,809
day a person becomes a qualified survivor and terminate or be 6,811
suspended on the first day of the month following the day the 6,812
person ceases to be a qualified survivor. 6,814
Benefits to a qualified survivor shall terminate upon a 6,817
first marriage, abandonment, adoption, or during active military 6,819
service. Benefits to a deceased member's surviving spouse that 6,820
were terminated under a former version of this section that
required termination due to remarriage and were not resumed prior 6,821
to the effective date of this amendment shall resume on the first 6,822
day of the month immediately following receipt by the board of an 6,823
application on a form provided by the board. 6,824
Upon the death of any subsequent spouse who was a member of 6,827
the public employees retirement system, state teachers retirement 6,828
system, or school employees retirement system, the surviving 6,829
spouse of such member may elect to continue receiving benefits 6,830
under this division, or to receive survivor's benefits, based 6,831
upon the subsequent spouse's membership in one or more of the 6,832
systems, for which such surviving spouse is eligible under this 6,833
145
section or section 145.45 or 3309.45 of the Revised Code. If the 6,834
surviving spouse elects to continue receiving benefits under this 6,835
division, such election shall not preclude the payment of 6,836
benefits under this division to any other qualified survivor. 6,837
(F) The beneficiary of a member who is also a member of 6,839
the public employees retirement system, or the school employees 6,840
retirement system, must forfeit the member's accumulated 6,841
contributions in those systems, if the beneficiary elects to 6,842
receive a benefit under division (C) of this section. Such 6,844
benefit shall be exclusively governed by section 3307.41 3307.57 6,845
of the Revised Code. 6,846
(G)(1) Regardless of whether the member is survived by a 6,849
spouse or designated beneficiary, if the state teachers 6,850
retirement system receives notice that a deceased member 6,852
described in division (C)(1) or (2) of this section has one or 6,853
more qualified children, all persons who are qualified survivors 6,855
under division (C)(2) of this section shall receive monthly 6,858
benefits as provided in division (C)(2) of this section. 6,859
If, after determining the monthly benefits to be paid under 6,861
division (C)(2) of this section, the system receives notice that 6,862
there is a qualified survivor who was not considered when the 6,863
determination was made, the system shall, notwithstanding section 6,864
3307.711 3307.42 of the Revised Code, recalculate the monthly 6,865
benefits with that qualified survivor included, even if the 6,867
benefits to qualified survivors already receiving benefits are 6,868
reduced as a result. The benefits shall be calculated as if the
qualified survivor who is the subject of the notice became 6,869
eligible on the date the notice was received and shall be paid to 6,870
qualified survivors effective on the first day of the first month 6,871
following the system's receipt of the notice. 6,872
If the retirement system did not receive notice that a 6,874
deceased member has one or more qualified children prior to 6,876
making payment under section 3307.48 3307.562 of the Revised Code 6,877
to a beneficiary as determined by the retirement system, the 6,878
146
payment is a full discharge and release of the system from any 6,879
future claims under this section or section 3307.48 3307.562 of 6,880
the Revised Code.
(2) If benefits under division (C)(2) of this section to 6,883
all persons, or to all persons other than a surviving spouse or 6,885
sole beneficiary, terminate, there are no children under the age
of twenty-two years, and the surviving spouse or beneficiary 6,888
qualifies for benefits under division (C)(1) of this section, the 6,889
surviving spouse or beneficiary may elect to receive benefits 6,890
under division (C)(1) of this section. The benefit shall be 6,892
calculated based on the age of the spouse or beneficiary at the 6,893
time of the member's death and is effective on the first day of 6,894
the month following receipt by the board of an application for 6,895
benefits under division (C)(1) of this section. 6,896
(H) If the benefits due and paid under division (C) of 6,898
this section are in a total amount less than the member's 6,899
accumulated account that was transferred from the teachers' 6,900
savings fund, school employees retirement fund, and public 6,901
employees retirement fund, to the survivors' benefit fund, then 6,902
the difference between the total amount of the benefits paid 6,903
shall be paid to the beneficiary under section 3307.48 3307.562 6,905
of the Revised Code. 6,906
Sec. 3307.661. ON THE DEATH OF A RETIRANT OR DISABILITY 6,908
BENEFIT RECIPIENT WHO AT THE TIME OF DEATH IS RECEIVING, UNDER 6,909
THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED 6,910
CODE, A SERVICE RETIREMENT ALLOWANCE OR DISABILITY BENEFIT, THE 6,912
STATE TEACHERS RETIREMENT SYSTEM SHALL MAKE A LUMP-SUM PAYMENT OF 6,913
ONE THOUSAND DOLLARS TO ANY DESIGNATED OR QUALIFIED BENEFICIARY 6,914
UNDER DIVISION (D) OF SECTION 3307.562 OF THE REVISED CODE. IF 6,915
THERE IS NO BENEFICIARY, THE STATE TEACHERS RETIREMENT BOARD MAY 6,917
APPROVE PAYMENT TO EITHER THE PERSON RESPONSIBLE FOR THE BURIAL 6,918
EXPENSES OR TO THE DECEDENT'S ESTATE FOLLOWING THE COMPLETION OF 6,919
AN APPLICATION ON A FORM APPROVED BY THE BOARD. 6,920
Sec. 3307.403 3307.67. (A) Beginning April 1, 1971, and 6,929
147
each year thereafter, the board of the state teachers retirement 6,931
system BOARD shall determine the average percentage change in the 6,933
consumer price index prepared by the United States bureau of 6,934
labor statistics (U.S. City Average for Urban Wage Earners and 6,935
Clerical Workers: "All Items 1982-84=100") for the 6,936
twelve-calendar-month period prior to the first day of January 6,938
over the next preceding twelve-calendar-month period, as reported 6,939
by the bureau.
Upon a determination by the board in any year that the 6,941
change in the consumer price index is an increase or that the 6,943
change plus the accumulation described in division (B) of this 6,944
section is an increase, the board shall increase each allowance 6,945
or benefit payable under this chapter SECTIONS 3307.50 TO 3307.79 6,946
OF THE REVISED CODE by a percentage equal to the percentage 6,947
increase in the consumer price index or to that increase plus the 6,948
accumulation, except that the increase shall not exceed three per 6,949
cent and no allowance or benefit shall exceed the limit 6,951
established by section 415 of the "Internal Revenue Code of 6,952
1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended. 6,953
The first increase is payable to all persons becoming 6,955
eligible after June 30, 1971, upon such persons receiving an 6,956
allowance or benefit for twelve months. The increased amount is 6,958
payable for the ensuing twelve-month period or until the next 6,959
increase is granted under this section, whichever is later. 6,960
Subsequent increases shall be determined from the date of the 6,961
first increase paid to the former member in the case of an
allowance being paid a beneficiary under an option, or from the 6,962
date of the first increase to the survivor first receiving an 6,963
allowance or benefit in the case of an allowance or benefit being 6,964
paid to the subsequent survivors of the former member. 6,965
The date of the first increase under this section becomes 6,968
the anniversary date for any future increases.
The allowance or benefit used in the first calculation of 6,970
an increase under this section shall remain as the base for all 6,971
148
future increases, unless a new base is established. 6,972
(B) Any percentage of change in the consumer price index 6,974
in any year that is in excess of three per cent shall be 6,975
accumulated and used to determine increases under this section in 6,976
subsequent years. Any percentage of change in the consumer price 6,977
index accumulated by an eligible person prior to the effective 6,978
date of this amendment SEPTEMBER 27, 1996, shall be used in 6,979
determining any future increases under this section. 6,980
(C) The board shall make all rules necessary to carry out 6,982
this section. 6,983
Sec. 3307.408 3307.671. In December, 1980, and in December 6,993
of each year thereafter, the state teachers retirement board may 6,994
allocate an amount from the guarantee fund created in division 6,995
(E) of section 3307.65 3307.14 of the Revised Code to establish a 6,996
temporary supplemental benefit fund for the purpose of making a 6,998
lump sum benefit payment to all persons receiving an allowance, 6,999
pension, or benefit under Chapter 3307. SECTIONS 3307.50 TO 7,000
3307.79 of the Revised Code for each of the twelve months 7,002
preceding the first day of the following January. 7,003
On or after July 1, 1980, and on or after the first day of 7,005
July of each year thereafter, the board may determine the amount 7,006
to be placed in a temporary supplemental benefit fund. Such 7,007
amount, if placed, shall be not more than twenty-five per cent of 7,008
the income from investments for the twelve months preceding the 7,009
first day of July not otherwise required to be credited to the 7,010
several funds set forth in section 3307.65 3307.14 of the Revised 7,012
Code.
The board shall adopt rules to administer this supplemental 7,014
benefit. The rules shall recognize the effective date of the 7,015
allowance, pension, or benefit and the years of Ohio service 7,016
credit for each recipient as an equitable basis for allocating 7,017
the amount payable to each recipient. 7,018
If the board determines that a supplemental benefit shall 7,020
be paid under this section, it shall pay such amount within sixty 7,021
149
calendar days following its allocation to the supplemental 7,022
benefit fund. 7,023
Amounts paid pursuant to this section shall not be included 7,025
in the base for increasing an allowance, pension, or benefit 7,026
provided in section 3307.403 3307.67 of the Revised Code and 7,027
shall not incur any obligation or liability for future payments 7,029
under this section. 7,030
Sec. 3307.371 3307.69. (A) On and after the first day of 7,039
the month following the effective date of this section DECEMBER 7,041
14, 1992, each person eligible to receive a benefit, pursuant to 7,042
FORMER sections 3307.38, 3307.41, 3307.43, 3307.50, AND division 7,043
(C)(1) of FORMER section 3307.49, and section 3307.50 of the 7,045
Revised Code, that was based upon an award made effective before 7,046
June 30, 1955, shall have the benefit payable as of September 30, 7,047
1974, recalculated by the state teachers retirement board so that 7,048
each such person shall receive an annual single lifetime benefit 7,049
or its actuarial equivalent of not less than one hundred forty 7,050
dollars for each year of the member's total service credit, 7,051
except that service credit exceeding thirty-two years shall not 7,052
be used in the recalculation, and a final average salary 7,053
limitation shall not be applied.
If the amount of the benefit recalculated under this 7,055
division is less than the amount that is payable on the effective 7,056
date of this section, then the greater benefit shall be 7,057
continued. 7,058
(B) On and after the first day of the month following the 7,060
effective date of this section DECEMBER 14, 1992, each person 7,062
receiving a benefit, pursuant to FORMER sections 3307.38, 7,063
3307.41, 3307.43, 3307.50 AND division (C)(1) of FORMER section 7,065
3307.49, and section 3307.50 of the Revised Code, that was 7,067
effective on and after June 30, 1955, through June 30, 1971,
shall be paid an increased benefit as follows: 7,068
Effective Date of the Per Cent of Increase: 7,070
Member's Benefit: 7,071
150
June 30, 1955, through
June 29, 1959 33 7,072
June 30, 1959, through
October 31, 1965 21 7,073
November 1, 1965 through
June 30, 1968 14 7,074
July 1, 1968, through
June 30, 1971 5 7,075
The increase shall be applied to the benefit payable on the 7,077
effective date of this section DECEMBER 14, 1992. 7,078
(C) On and after the first day of the month following the 7,080
effective date of this section DECEMBER 14, 1992, each person 7,082
receiving or qualified to receive a benefit, pursuant to division 7,083
(C)(2) of FORMER section 3307.49 of the Revised Code, that was 7,084
effective on and after June 14, 1951, through August 26, 1970, 7,085
shall receive an increase in such benefit in the amount of twenty 7,086
per cent.
Sec. 3307.382 3307.691. On and after the effective date of 7,095
this section AUGUST 20, 1976, the allowances of retirants 7,098
receiving benefits based upon an award from the state teachers 7,099
retirement system made before July 1, 1971, shall have the 7,100
benefit recalculated by the state teachers retirement system so 7,101
that each such person shall receive an annual lifetime benefit or 7,102
its actuarial equivalent of not less than one hundred forty 7,103
dollars for each year of the member's total service credit, 7,104
multiplied by the total number of years of service credit, except 7,105
that service credit exceeding thirty-two years shall not be used 7,106
in the recalculation, and a final average salary limitation shall 7,107
not be applied.
If the amount of the benefit recalculated under this 7,109
section is less than the amount that is payable on the effective 7,110
date of this section AUGUST 20, 1976, then the greater benefit 7,112
shall be continued. 7,113
Sec. 3307.384 3307.692. A retirant who on the effective 7,122
151
date of this amendment AUGUST 6, 1997, is eligible to receive an 7,126
annual single lifetime benefit under FORMER section 3307.38, 7,127
3307.41, or 3307.50 of the Revised Code of less than nine 7,129
thousand six hundred dollars or its actuarial equivalent shall 7,130
have that benefit increased to nine thousand six hundred dollars 7,132
or its actuarial equivalent if the benefit is based on an award
arising from thirty or more years of Ohio service credit. The 7,134
benefit increase provided by this amendment SECTION shall take 7,135
effect on the first day of the first month following the 7,137
effective date of this amendment AUGUST 6, 1997, and shall not be 7,139
subject to any final average salary limitation.
Sec. 3307.401 3307.693. On and after October 1, 1957, all 7,148
persons in receipt of, or who are or become eligible to receive, 7,150
a monthly allowance, pension, or other benefit effective prior to 7,151
June 29, 1955, which is payable or becomes payable pursuant to 7,152
the provisions of FORMER sections 3307.26, 3307.38, 3307.43, and 7,153
3307.50 of the Revised Code, or an allowance payable at any time 7,155
under an option elected by a member and effective prior to that 7,156
date, shall be paid an increased allowance, pension, or benefit 7,157
as follows: 7,158
(A) An amount determined by increasing the original 7,160
allowance, pension, or benefit by the following percentages as 7,161
determined by the calendar year in which the allowance, pension, 7,162
or benefit became effective: 7,163
Calendar Year Per Cent of 7,165
Effective Increase
1921-1939 100 7,166
1940 94
1941 89 7,167
1942 77
1943 70
1944 68 7,168
1945 66
1946 55
152
1947 35 7,169
1948 23
1949 25
1950 23 7,170
1951 8
1952 4
1953 3 7,171
1954 2
Prior to June 29, 1955 2 7,172
(B) If the amount of any such allowance, pension, or other 7,175
benefit is increased by division (A) of this section to an amount 7,176
less than one hundred ten per cent of the present amount payable 7,177
immediately prior to October 1, 1957, such present amount shall 7,178
be increased by ten per cent. 7,179
(C) On and after August 1, 1959, the monthly allowance, 7,181
pension, or other benefit effective prior to June 29, 1955, 7,182
(exclusive of any amount receivable monthly by reason of a 7,183
voluntary deposit made for additional annuity, or for purchase of 7,184
out-of-state credit on or after June 25, 1945), together with the 7,185
supplemental allowance payable pursuant to divisions (A) and (B) 7,186
of this section, shall be increased by twelve per cent. 7,187
(D) Effective November 1, 1965, the allowances of all 7,189
persons who retired before June 30, 1955, and who are receiving 7,190
benefits as of October 31, 1965, except those granted under 7,191
FORMER section 3307.49 of the Revised Code, shall be increased 7,192
ten dollars per month, notwithstanding the seventy-five per cent 7,193
final average salary limitation in FORMER section 3307.38 of the 7,194
Revised Code and the sixty per cent final average salary 7,196
limitation in FORMER section 3307.43 of the Revised Code. 7,197
(E) Effective November 1, 1965, the allowances of all 7,199
persons who retired on or after June 30, 1955, and who are 7,200
receiving benefits as of October 31, 1965, except those granted 7,201
under FORMER section 3307.49 of the Revised Code, but including 7,202
allowances payable at any time under an option elected by a 7,203
153
member, shall be increased by ten dollars per month, which when 7,204
added to the allowance in effect on October 31, 1965, shall not 7,205
exceed the seventy-five per cent final average salary limitation 7,206
in FORMER section 3307.38 of the Revised Code or the sixty per 7,207
cent final average salary limitation in FORMER section 3307.43 of 7,208
the Revised Code, provided that the increase shall not be less 7,210
than six dollars per month. 7,211
(F) Beginning November 1, 1965, the monthly benefit 7,213
payable under division (C)(2) of FORMER section 3307.49 of the 7,214
Revised Code shall be increased six dollars for each survivor 7,215
beneficiary receiving a benefit on October 31, 1965, and for each 7,216
successor to such benefit. Beginning November 1, 1965, all 7,217
survivor beneficiaries receiving benefits as of October 31, 1965, 7,218
under division (C)(1) of FORMER section 3307.49 of the Revised 7,219
Code shall be increased six dollars per month. 7,220
On or before August 1, 1982, and on or before the first day 7,222
of August in each year thereafter, the state teachers retirement 7,223
board shall certify to the treasurer of state the amount required 7,224
to be paid in the preceding fiscal year under divisions (A) and 7,225
(B) of this section. Upon receipt of this certification, the 7,226
treasurer of state shall pay the amount certified. The amount 7,227
received by the state teachers retirement board shall be credited 7,228
to the proper fund from which such additional payments are paid. 7,229
Sec. 3307.402 3307.694. On and after July 1, 1968, all 7,238
allowances, pensions, or other benefits which were payable before 7,240
July 1, 1968, pursuant to the provisions of FORMER sections 7,241
3307.26, 3307.38, 3307.41, 3307.43, 3307.49, and 3307.50 of the 7,242
Revised Code, shall be increased by the percentages determined by 7,243
the effective date of the allowance, pension, or benefit, as 7,244
follows:
Effective Date of Benefit Percentage of Increase 7,246
Calendar Year 7,247
1920 through 1955 24.3 7,249
1956 22.5 7,250
154
1957 18.4 7,251
1958 15.2 7,252
1959 14.3 7,253
1960 12.5 7,254
1961 11.3 7,255
1962 10.1 7,256
1963 8.7 7,257
1964 7.3 7,258
1965 5.6 7,259
1966 2.6 7,260
1967 2.0 7,261
January 1, 1968, through 7,262
June 30, 1968 2.0
All increases determined by applying the percentages in the 7,265
preceding table shall be reduced by the dollar amount of the 7,266
increases granted in 1965 pursuant to divisions (D), (E), and (F) 7,267
of FORMER section 3307.401 of the Revised Code, except that no 7,268
allowance, pension, or benefit shall be reduced below the amount 7,269
due on June 30, 1968, and no allowance granted under this section 7,270
shall be less than a total annual sum of thirty-six dollars. 7,271
The allowances increased by this section shall exclude any 7,273
monthly amount payable by reason of any voluntary deposits made 7,274
under the provisions of sections 3307.33 3307.26 and 3307.51 7,276
3307.741 of the Revised Code, except for prior service purchased 7,277
before June 25, 1945. 7,278
The increases provided by this section shall be granted 7,280
notwithstanding the final average salary limitation in FORMER 7,281
sections 3307.38 and 3307.43 of the Revised Code. 7,282
The cost of the increases provided by this section shall be 7,284
included in the employer's contribution rate provided by sections 7,285
3307.53 3307.28, 3307.56 3307.30, and 3307.64 3307.31 of the 7,287
Revised Code. Such employer's contribution rate shall not be 7,288
increased until July 1, 1969, or later to reflect the increased 7,289
costs created by this section. 7,290
155
Sec. 3307.404 3307.695. On and after December 31, 1971, 7,299
all persons who retired and were eligible to receive a pension 7,301
that was payable prior to July 1, 1968, pursuant to FORMER 7,302
section 3307.38 or 3307.43 of the Revised Code, or in the event 7,303
of the death of such persons, the person designated by the 7,304
deceased to receive payments under FORMER section 3307.50 of the 7,305
Revised Code, shall receive an additional monthly payment of two 7,307
dollars for each year between the member's effective date of 7,308
retirement or disability and December 31, 1971, or an additional 7,309
fifty dollars, whichever is less. On or before the first day of 7,310
August in 1980 and on or before the first day of August in each 7,311
year thereafter, the state teachers retirement board shall 7,312
certify to the treasurer of state the amount required to be paid 7,313
in the preceding fiscal year under this section. Upon receipt of 7,314
such certification, the treasurer of state shall pay to the state 7,315
teachers retirement system the amount certified. 7,316
Sec. 3307.406 3307.696. Each person receiving benefits 7,325
under FORMER section 3307.49 of the Revised Code who became 7,327
eligible to receive such benefits under FORMER section 3307.48 of 7,329
the Revised Code by virtue of the death of a member prior to July
1, 1968, shall receive an additional monthly payment of two 7,330
dollars for each year between the date of such member's death and 7,331
December 31, 1972, or an additional fifty dollars, whichever is 7,332
less.
Sec. 3307.407 3307.697. On and after the effective date of 7,341
this section DECEMBER 19, 1973, any person who retired or his THE 7,344
RETIREE'S beneficiary, who was eligible to receive an allowance 7,346
that was first payable on or after July 1, 1968, and prior to 7,347
July 1, 1971, and the beneficiary of a member who died before 7,349
service retirement on or after July 1, 1968, and prior to July 1, 7,350
1971, receiving an allowance or benefit pursuant to FORMER 7,352
sections 3307.38, 3307.41, 3307.43, 3307.49, or 3307.50 of the
Revised Code, shall receive an additional monthly payment of two 7,354
dollars for each year between the member's effective date of 7,355
156
retirement, disability or death and July 1, 1973. 7,356
Sec. 3307.409 3307.698. (A) Effective July 1, 1981, each 7,365
person eligible to receive an allowance, pension, or benefit 7,367
pursuant to FORMER sections 3307.38, 3307.41, 3307.43, division 7,368
(C)(1) of FORMER section 3307.49, and FORMER section 3307.50 of 7,370
the Revised Code that was based upon an award made effective 7,371
before July 1, 1974, shall have his THE PERSON'S monthly 7,373
allowance, pension, or benefit increased by five per cent, except 7,374
that the twelve-month sum of such increases shall not exceed five 7,375
per cent of the first five thousand dollars of the annual 7,376
allowance, pension, or benefit.
(B) Effective July 1, 1981, each person receiving or 7,378
qualified to receive a benefit, pursuant to division (C)(2) of 7,379
FORMER section 3307.49 of the Revised Code, that was effective on 7,380
and after June 14, 1951, through August 26, 1970, shall receive 7,381
an increase in such benefit of five per cent. 7,382
(C) The increases provided in divisions (A) and (B) of 7,384
this section shall be applied to the benefit payable on and after 7,385
July 1, 1981. 7,386
(D) The increase in the monthly allowance, pension, or 7,388
benefit provided in divisions (A) and (B) of this section shall 7,389
be included in the calculation of additional benefits to 7,390
recipients under section 3307.403 3307.67 of the Revised Code. 7,391
(E) The benefit provided in divisions (A) and (B) of this 7,393
section is a continuation of those first provided in Am. Sub. 7,394
H.B. 204 as passed by the 113th general assembly. 7,395
(F) On or before the first day of August, 1982, and on or 7,397
before the first day of August in each year thereafter, the state 7,398
teachers retirement board shall certify to the treasurer of state 7,399
the amounts needed to pay the cost of the additional payments 7,400
required under this section for the preceding fiscal year. Upon 7,401
receipt of these certifications, the treasurer of state shall pay 7,402
the amount certified. 7,403
Sec. 3307.4010 3307.699. As used in this section and 7,412
157
section 3307.4011 3307.6910 of the Revised Code, "benefit" means 7,414
any allowance, pension, or other benefit to which an individual 7,415
is entitled and that he THE INDIVIDUAL receives pursuant to 7,416
FORMER section 3307.38, 3307.41, 3307.43, 3307.49, or 3307.50 of 7,417
the Revised Code.
The annual amount of each benefit that was payable prior to 7,419
February 1, 1983, shall, after the adjustments required by FORMER 7,421
section 3307.403 of the Revised Code, be increased by five per 7,423
cent.
Sec. 3307.4011 3307.6910. (A) The annual amount of each 7,432
benefit that was based on an award made effective before July 1, 7,434
1979, shall be increased as follows: 7,435
Effective Date of Per Cent of 7,437
Award Increase in Benefit 7,438
Prior to July 1, 1971 4.15 7,439
July 1, 1971, through 7,440
August 31, 1976 2.65 7,441
September 1, 1976, through 7,442
June 30, 1979 1.4 7,443
(B) Effective June 1, 1990, in addition to the increase 7,446
provided under division (A) of this section, the annual amount of 7,447
each benefit that was based on an award made effective before 7,448
July 1, 1979, shall be increased as follows: 7,449
Effective Date of Per Cent of 7,451
Award Increase in Benefit 7,452
Prior to July 1, 1971 4.15 7,453
July 1, 1971, through 7,454
August 31, 1976 2.65 7,455
September 1, 1976, through 7,456
June 30, 1979 1.4 7,457
(C) Amounts paid pursuant to this section shall not be 7,460
included in the base for future increases under FORMER section 7,461
3307.403 of the Revised Code in any benefit. 7,462
Sec. 3307.4013 3307.6911. (A) As used in this section: 7,471
158
(1) "Benefit" means a benefit, pension, or allowance 7,473
PAYABLE under FORMER section 3307.38, 3307.41, 3307.43, 3307.431, 7,475
3307.49, or 3307.50 of the Revised Code.
(2) "Cumulative percentage change in the CPI" means the 7,477
total percentage change in the consumer price index prepared by 7,478
the United States bureau of labor statistics for urban wage 7,480
earners and clerical workers (CPI-W: U.S. city average, all 7,481
items) from the thirty-first day of December immediately 7,482
preceding the year in which the original benefit started through 7,483
the thirty-first day of December immediately preceding the 7,484
effective date of this section AUGUST 6, 1997. 7,485
(3) "Eligible recipient" means any person receiving a 7,487
benefit on the effective date of this section AUGUST 6, 1997, 7,488
that has been payable to that person or to any other person for 7,490
at least twelve months.
(4) "Original benefit amount" means the initial amount of 7,492
a benefit granted to the initial recipient of the benefit. 7,493
(B) As of the effective date of this section AUGUST 6, 7,496
1997, the state teachers retirement board shall determine an 7,497
amount for each eligible recipient equal to the sum of the 7,498
following amounts:
(1) An amount equal to seventy per cent of the original 7,500
benefit amount for the recipient; 7,501
(2) An amount equal to the product obtained when seventy 7,503
per cent of the original benefit amount is multiplied by the 7,504
cumulative percentage change in the CPI for the recipient. 7,505
(C)(1) Except as provided in division (C)(2) of this 7,507
section, if the amount of the annual benefit payable to an 7,508
eligible recipient on the effective date of this section AUGUST 7,509
6, 1997, is less than the amount determined for the recipient 7,511
under division (B) of this section, the board shall recalculate 7,512
that annual benefit so that it equals the amount determined under 7,513
division (B) of this section.
(2) If the recalculated benefit determined under division 7,515
159
(C)(1) of this section for an eligible recipient whose retirement 7,516
was effective before July 1, 1979, is less than one hundred three 7,517
per cent of the annual benefit payable to the recipient on the 7,518
effective date of this section AUGUST 6, 1997, the board shall 7,520
recalculate the annual benefit so that it equals one hundred
three per cent of the annual benefit payable to the recipient on 7,521
the effective date of this section AUGUST 6, 1997. 7,523
An increase granted by division (C)(1) or (2) of this 7,525
section to a benefit amount shall apply on and after the first 7,526
day of the month following the effective date of this section 7,527
AUGUST 6, 1997. 7,528
(D) The board shall include the increase in amount paid 7,530
under this section in a person's base for purposes of future 7,531
increases in any benefit under section 3307.403 3307.67 of the 7,532
Revised Code.
Sec. 3307.78 3307.6912. Effective September 1, 1947, the 7,541
retirement allowances of retired Ohio teachers, or their 7,543
beneficiaries under options elected at retirement and still in 7,544
effect, on the retired list as of that date shall be recalculated 7,545
and paid in accordance with the following: 7,546
(A) Members retired on superannuation effective prior to 7,548
August 31, 1945, shall have the prior service portion of their 7,549
allowances recalculated as of the date of retirement in 7,550
accordance with division (C) of FORMER section 3307.38 of the 7,551
Revised Code, with their "final average salary" determined as 7,552
defined in FORMER section 3307.01 of the Revised Code. Any 7,553
allowance payable to members who retired on superannuation under 7,554
an option selected at retirement, or payable to a beneficiary 7,555
pursuant to such option, shall be adjusted upon the basis of the 7,556
amount of allowance payable in accordance with this division. 7,557
(B) Members retired on disability retirement prior to July 7,559
1, 1945, shall have their allowances recalculated as of the date 7,560
of retirement in accordance with divisions (A) and (B) of FORMER 7,561
section 3307.43 of the Revised Code, and with their final average 7,563
160
salaries determined as defined in FORMER section 3307.01 of the 7,564
Revised Code. 7,565
(C) Members retired on superannuation, commuted 7,567
superannuation, or disability prior to June 30, 1947, with 7,568
fifteen or more years of service credit shall receive a total 7,569
allowance at the rate of not less than twenty dollars annually 7,570
for each year of such service credit, except that a member 7,571
retired on commuted superannuation shall have the reserve for any 7,572
additional pension required to provide such minimum allowance 7,573
commuted as of the date of retirement in the manner prescribed 7,574
for the prior service pension in division (C) of FORMER section 7,575
3307.40 of the Revised Code. Any allowance payable to members 7,577
who retired on superannuation under an option selected at 7,578
retirement, or payable to a beneficiary pursuant to such option, 7,579
shall be adjusted upon the basis of the amount of allowance 7,580
payable in accordance with this division. All pensions continued 7,581
to pensioners following the merger of local district pension 7,582
systems with the state teachers retirement system pursuant to 7,583
FORMER sections 3307.68, 3307.69, and 3307.70 of the Revised Code 7,584
shall be increased ten dollars per month provided no other 7,585
benefit is payable by this section. 7,586
(D) In no case shall any recalculated allowance be 7,588
increased in excess of twenty-five dollars per month by divisions 7,589
(A), (B), and (C) of this section and in no case shall any 7,590
allowances be decreased thereby. In no case shall any such 7,591
increases be payable prior to September 1, 1947. The cost of 7,592
providing such increased superannuation and commuted 7,593
superannuation allowances shall be included in the prior service 7,594
pension deficiency contribution rate provided for in FORMER 7,595
section 3307.54 of the Revised Code. The cost of providing such 7,596
increased disability allowances shall be included in the normal 7,597
contribution rate provided for in section 3307.53 3307.28 of the 7,599
Revised Code. 7,600
Sec. 3307.6913. (A) AS USED IN THIS SECTION AND IN 7,602
161
SECTION 3307.6914 OF THE REVISED CODE, "ELIGIBLE RECIPIENT" MEANS 7,604
ANY PERSON RECEIVING A BENEFIT ON JULY 1, 1999. 7,605
(B) FOR EACH ELIGIBLE RECIPIENT OF A BENEFIT PAYABLE UNDER 7,607
SECTION 3307.58, 3307.59, OR 3307.60 OF THE REVISED CODE, THE 7,609
STATE TEACHERS RETIREMENT BOARD SHALL RECALCULATE THE ANNUAL 7,610
SINGLE LIFETIME BENEFIT, EXCLUDING ANY INCREASES GRANTED UNDER 7,611
SECTION 3307.67 OF THE REVISED CODE, OF THE BENEFIT PAYABLE TO 7,612
THE RECIPIENT USING DIVISION (B) OF SECTION 3307.38 OF THE 7,614
REVISED CODE AS THAT SECTION EXISTED IMMEDIATELY PRIOR TO THE 7,616
EFFECTIVE DATE OF THIS SECTION, EXCEPT THAT THE RECALCULATED
ANNUAL SINGLE LIFETIME BENEFIT SHALL BE ADJUSTED BY THE PER CENT 7,617
SHOWN IN THE SCHEDULE IN THE VERSION OF DIVISION (B) OF SECTION 7,618
3307.38 OF THE REVISED CODE THAT WAS IN EFFECT AT THE TIME THE 7,619
INITIAL RECIPIENT'S BENEFIT WAS CALCULATED ON THE BASIS OF AGE 7,620
AND SERVICE.
(C) IF THE AMOUNT DETERMINED UNDER DIVISION (B) OF THIS 7,623
SECTION IS GREATER THAN THE ANNUAL SINGLE LIFETIME BENEFIT 7,624
GRANTED THE RECIPIENT, THE BOARD SHALL RECALCULATE THE 7,626
RECIPIENT'S BENEFIT SO THAT IT EQUALS THE ANNUAL SINGLE LIFETIME
BENEFIT DETERMINED UNDER DIVISION (B) OF THIS SECTION OR ITS 7,627
ACTUARIAL EQUIVALENT. 7,628
(D) THE BOARD SHALL INCLUDE THE INCREASE IN AMOUNT PAID 7,630
UNDER THIS SECTION IN AN INDIVIDUAL'S BASE FOR PURPOSES OF FUTURE 7,631
INCREASE IN ANY BENEFIT UNDER SECTION 3307.67 OF THE REVISED 7,632
CODE.
(E) THE BOARD SHALL MAKE THE RECALCULATIONS REQUIRED UNDER 7,634
THIS SECTION NOT LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE 7,635
EFFECTIVE DATE OF THIS SECTION. THE BOARD MAY ADOPT RULES TO 7,636
IMPLEMENT THIS SECTION. 7,637
Sec. 3307.6914. (A) AS USED IN THIS SECTION: 7,639
(1) "CUMULATIVE PERCENTAGE CHANGE IN THE CPI" MEANS THE 7,641
TOTAL PERCENTAGE CHANGE IN THE CONSUMER PRICE INDEX PREPARED BY 7,642
THE UNITED STATES BUREAU OF LABOR STATISTICS FOR URBAN WAGE 7,644
EARNERS AND CLERICAL WORKERS (CPI-W: U.S. CITY AVERAGE, ALL 7,647
162
ITEMS) FROM THE THIRTY-FIRST DAY OF DECEMBER IMMEDIATELY 7,648
PRECEDING THE YEAR IN WHICH THE ORIGINAL BENEFIT STARTED THROUGH
THE THIRTY-FIRST DAY OF DECEMBER IMMEDIATELY PRECEDING THE 7,650
EFFECTIVE DATE OF THIS SECTION. 7,651
(2) "ORIGINAL BENEFIT AMOUNT" HAS THE SAME MEANING AS IN 7,653
SECTION 3307.6911 OF THE REVISED CODE. 7,654
(B)(1) EXCEPT AS PROVIDED IN DIVISION (B)(2) OF THIS 7,656
SECTION, FOR EACH ELIGIBLE RECIPIENT OF A BENEFIT PAYABLE UNDER 7,657
SECTION 3307.58, 3307.59, 3307.60, 3307.63, 3307.631, OR 3307.66 7,658
OF THE REVISED CODE, THE BOARD SHALL DETERMINE AN AMOUNT EQUAL TO 7,660
THE SUM OF THE FOLLOWING AMOUNTS:
(a) AN AMOUNT EQUAL TO EIGHTY-FIVE PER CENT OF THE 7,662
ORIGINAL BENEFIT AMOUNT, EXCEPT THAT IF THE RECIPIENT IS NOT THE 7,663
INDIVIDUAL TO WHOM THE ORIGINAL BENEFIT AMOUNT WAS GRANTED, THE 7,664
AMOUNT SHALL EQUAL EIGHTY-FIVE PER CENT OF THE PRODUCT OBTAINED 7,665
WHEN THE ORIGINAL BENEFIT AMOUNT IS MULTIPLIED BY THE PERCENTAGE 7,666
OF THE ORIGINAL BENEFIT AMOUNT BEING PAID TO THE RECIPIENT; 7,667
(b) AN AMOUNT EQUAL TO THE PRODUCT OBTAINED WHEN THE 7,669
AMOUNT DETERMINED UNDER DIVISION (B)(1) OF THIS SECTION IS 7,670
MULTIPLIED BY THE CUMULATIVE PERCENTAGE CHANGE IN THE CPI. 7,671
(2) FOR EACH ELIGIBLE RECIPIENT OF A BENEFIT UNDER SECTION 7,673
3307.66 OF THE REVISED CODE THAT IS PAYABLE BY REASON OF THE 7,674
DEATH OF A MEMBER WHO, AT THE TIME OF DEATH, WAS RECEIVING A 7,676
BENEFIT UNDER SECTION 3307.63 OR 3307.631 OF THE REVISED CODE, 7,677
THE BOARD SHALL DETERMINE ALL OF THE FOLLOWING: 7,678
(a) THE PRODUCT OBTAINED BY MULTIPLYING THE DECEASED 7,680
MEMBER'S FINAL AVERAGE SALARY BY THE CUMULATIVE PERCENTAGE CHANGE 7,681
IN THE CPI. 7,682
(b) EIGHTY-FIVE PER CENT OF THE PRODUCT OBTAINED UNDER 7,685
DIVISION (B)(2)(a) OF THIS SECTION. 7,686
(c) THE AMOUNT OF THE BENEFIT THAT WOULD BE PAYABLE UNDER 7,688
SECTION 3307.66 OF THE REVISED CODE IF THE PRODUCT OBTAINED UNDER 7,689
DIVISION (B)(2)(b) OF THIS SECTION WAS USED AS THE DECEASED 7,691
MEMBER'S FINAL AVERAGE SALARY. 7,692
163
(C) IF THE AMOUNT DETERMINED UNDER DIVISION (B) OF THIS 7,694
SECTION IS GREATER THAN THE ANNUAL BENEFIT BEING PAID TO THE 7,696
RECIPIENT, THE BOARD SHALL RECALCULATE THE ANNUAL BENEFIT PAYABLE 7,697
ON THE EFFECTIVE DATE OF THIS SECTION SO THAT IT EQUALS THE 7,698
AMOUNT DETERMINED UNDER THAT DIVISION. IF THE RECIPIENT'S 7,699
BENEFIT WAS RECALCULATED UNDER DIVISION (C) OF SECTION 3307.6913 7,700
OF THE REVISED CODE, THE BOARD SHALL USE THE RECALCULATED BENEFIT 7,702
IN MAKING A DETERMINATION UNDER THIS SECTION. 7,703
(D) THE BOARD SHALL INCLUDE THE INCREASE IN AMOUNT PAID 7,705
UNDER THIS SECTION IN AN INDIVIDUAL'S BASE FOR PURPOSES OF FUTURE 7,706
INCREASE IN ANY BENEFIT UNDER SECTION 3307.67 OF THE REVISED 7,707
CODE.
(E) THE BOARD SHALL MAKE THE RECALCULATIONS REQUIRED UNDER 7,709
THIS SECTION NOT LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE 7,710
EFFECTIVE DATE OF THIS SECTION. THE BOARD MAY ADOPT RULES TO 7,711
IMPLEMENT THIS SECTION. 7,712
Sec. 3307.281 3307.70. (A) The state teachers retirement 7,721
board may establish by rule payroll deduction plans for payment 7,723
of the following: 7,725
(1) The cost of restoring service credit under section 7,727
3307.28 3307.71 or 3307.282 3307.711 of the Revised Code or 7,729
purchasing any service credit members of the state teachers 7,731
retirement system are eligible to purchase under this chapter; 7,732
(2) Charges for participation in programs established 7,734
under section 3307.741 3307.391 of the Revised Code. 7,735
(B) In addition to any other matter considered relevant by 7,737
the board, the rules adopted under this section shall specify all 7,738
of the following: 7,739
(1) The types of service credit that may be paid for 7,741
through payroll deduction, including the section of the Revised 7,742
Code that authorizes the purchase of each type of service credit 7,743
for which payment may be made by payroll deduction; 7,744
(2) The procedure for informing the member's employer and 7,749
the system that the member wishes to use payroll deduction to 7,751
164
purchase service credit or pay for participation in programs
established under section 3307.741 3307.391 of the Revised Code; 7,753
(3) The procedure to be followed by the system and 7,755
employers to determine for each request the amount to be 7,756
deducted, the number of deductions to be made, and the interval 7,757
at which deductions will be made. The rules may provide for a 7,758
minimum amount for each deduction. They may also provide for a 7,759
maximum number of deductions for the purchase of any type of 7,760
service credit. 7,761
(4) The procedure to be followed by employers in 7,763
transmitting amounts deducted from the compensation of their 7,764
employees to the system; 7,765
(5) The procedure to be followed by the system in 7,767
crediting service credit to members who choose to purchase it 7,768
through payroll deduction; 7,769
(6) The time period within which employers are required to 7,771
transmit amounts deducted from payrolls to the system. 7,772
(C)(1) If the board establishes a payroll deduction plan 7,774
under this section, it shall certify to the member's employer, 7,775
for each member for whom deductions are to be made, the amount of 7,776
each deduction and the payrolls from which deductions are to be 7,777
made. The employer shall make the deductions as certified and 7,778
transmit the amounts deducted in accordance with the rules 7,779
established by the board under this section. 7,780
(2) If an employer does not transmit amounts deducted from 7,782
the compensation of an employee to the system within the time 7,783
period specified in rules adopted under division (B)(6) of this 7,784
section, the employer shall pay interest on the deducted amount 7,785
compounded annually at a rate to be determined by the board from 7,786
the date the amount is deducted to the date it is transmitted to 7,787
the system. 7,788
(D) Rules adopted under this section shall not affect any 7,790
right to purchase service credit conferred by any other section 7,791
of the Revised Code, including the right of a member under any 7,792
165
such section to purchase only part of the service credit the 7,793
member is eligible to purchase. 7,795
(E) No payroll deduction made pursuant to this section may 7,797
exceed the amount of a member's net compensation after all other 7,798
deductions and withholdings required by law. 7,799
(F) No payments made to the system under this section 7,801
shall affect any contribution required by section 3307.51 3307.26 7,803
or 3307.53 3307.28 of the Revised Code. 7,804
Sec. 3307.28 3307.71. The membership of any person in the 7,813
state teachers retirement system shall cease on occurrence of any 7,816
of the following: receipt of payment pursuant to section 3307.46 7,817
of the Revised Code; retirement as provided in section 3307.38 or 7,818
3307.39 of the Revised Code; death; or denial of membership 7,819
pursuant to section 3307.27 of the Revised Code.
Except as provided in this section, a member or former 7,821
member of the state teachers retirement system with PARTICIPATING 7,823
IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE 7,824
REVISED CODE WHO HAS at least one and one-half years of
contributing service credit in this system, the public employees 7,825
retirement system, the school employees retirement system, the 7,826
Ohio police and fire pension fund, or the state highway patrol 7,829
retirement system after the withdrawal and cancellation of 7,830
service credit in this system may restore all or part of such 7,831
service credit by repayment of the amount withdrawn. To this 7,832
amount shall be added interest at a rate per annum, compounded 7,833
annually, to be determined by the STATE TEACHERS retirement 7,834
board. Interest shall be payable from the first of the month of 7,836
withdrawal through the month of repayment. A member may choose 7,837
to purchase only part of such credit in any one payment. The 7,838
cost for restoring partial service shall be calculated as the 7,839
proportion that it bears to the total cost at the time of 7,840
purchase and is subject to the rules established by the board. 7,841
If a former member is eligible to buy the service credit as a 7,842
member of the Ohio police and fire pension fund or state highway 7,845
166
patrol retirement system, the former member is ineligible to 7,846
restore that service credit under this section. 7,847
The total payment to restore canceled service credit shall 7,850
be credited as follows:
(A) The amount that equals contributions made pursuant to 7,852
section 3307.51 3307.26 of the Revised Code, plus any interest on 7,854
the contributions paid by the member pursuant to this section, to 7,855
the member's account in the teachers' savings fund; 7,856
(B) The amount that equals the amount paid under section 7,858
3307.80 3307.563 of the Revised Code, to the employers trust 7,859
fund;
(C) The remainder of the payment to restore canceled 7,861
service credit, to the guarantee fund. 7,862
Sec. 3307.282 3307.711. (A) A member of the state 7,871
teachers retirement system who has at least eighteen months of 7,874
contributing service credit in the system, the police and
firemen's disability and pension fund, public employees 7,876
retirement system, school employees retirement system, or state 7,877
highway patrol retirement system, and is a former member of or no 7,878
longer contributing to the public employees retirement system or 7,879
school employees retirement system may restore service credit 7,880
under section 145.31 or 3309.26 of the Revised Code by making 7,881
payments pursuant to this section through a payroll deduction 7,882
plan established under section 3307.281 3307.70 of the Revised 7,884
Code. A member seeking to restore this service credit shall 7,886
notify the state teachers retirement system on a form approved by
the state teachers retirement board. After receiving the notice, 7,888
the state teachers retirement system shall request that the 7,889
former retirement system calculate under section 145.312 or 7,890
3309.262 of the Revised Code the cost to the member to restore 7,892
service credit for each year or portion of a year of service for 7,893
which the member seeks to restore the service credit. The amount 7,894
the former retirement system certifies as the cost of restoring 7,895
the service credit, plus interest described in division (B) of 7,896
167
this section, is the cost to the member of restoring the service 7,897
credit. On receiving the certification from the former
retirement system, the state teachers retirement system shall 7,899
notify the member of the cost. 7,900
(B) For each year or portion of a year of service credit 7,902
restored under section 145.31 or 3309.26 of the Revised Code, a 7,903
member shall pay to the state teachers retirement system the 7,905
amount certified by the former retirement system plus interest at 7,906
a rate specified by the former retirement system under section 7,907
145.312 or 3309.262 of the Revised Code for the period during 7,908
which deductions are made under section 3307.281 3307.70 of the 7,909
Revised Code. 7,911
(C) The state teachers retirement board shall annually 7,914
notify the former retirement system that a payment to restore 7,915
service credit under section 145.31 or 3309.26 of the Revised 7,916
Code has been made. At the time the payment is transferred under 7,917
division (D) of this section, the former retirement system shall 7,918
restore the service credit for the year or portion of a year for 7,919
which the payment was made. 7,920
(D) On application for a payment of accumulated 7,922
contributions or an age and service retirement, disability, or 7,924
survivor benefit under Chapter 145., 3307., or 3309. of the 7,925
Revised Code by a member who made payments under this section to 7,927
restore service credit in a former retirement system, the state 7,928
teachers retirement system shall pay to the former retirement 7,929
system an amount equal to the total amount paid by the member 7,931
under this section.
(E) The board shall adopt rules to implement this section. 7,933
Sec. 3307.283 3307.712. After receiving a request from the 7,942
public employees retirement system under division (A) of section 7,944
145.311 or the school employees retirement system under division 7,946
(A) of section 3309.261 of the Revised Code, the state teachers 7,949
retirement system shall do both of the following: 7,950
(A) Calculate and certify to the requesting retirement 7,953
168
system the cost to a former member to restore service credit 7,954
under section 3307.28 3307.71 of the Revised Code for each year 7,955
or portion of a year for which the former member seeks to restore 7,957
service credit under that section.
(B) Inform the requesting retirement system of the rate of 7,959
interest charged to a member under a payroll deduction plan 7,960
authorized under section 3307.281 3307.70 of the Revised Code. 7,961
Sec. 3307.73 3307.72. The state teachers retirement board 7,970
shall credit years of service to a member PARTICIPATING IN THE 7,972
PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE 7,973
who was employed for teaching service by an employer who failed 7,974
to make retirement contributions to the state teachers retirement 7,975
system during any year or years beginning on or after September 7,976
1, 1920, if the member deposits in the teachers' savings fund a 7,977
per cent of the member's annual compensation for such service, at 7,979
the rate of contribution then in effect, plus interest compounded 7,980
annually at a rate established by the retirement board. The 7,981
member may choose to purchase only part of such credit in any one 7,982
payment, subject to board rules. 7,983
The employer shall, upon the request of such member, 7,985
certify the amount of compensation by years of employment to the 7,987
secretary of the board. For teaching service on or after July 1, 7,988
1978, the employer shall pay an amount equal to the employer 7,989
contributions due at the time the service occurred, plus compound
interest at a rate determined by the board from the date the 7,990
service began to the date of payment. 7,991
Sec. 3307.22 3307.73. (A)(1) Except as provided in 8,000
division (A)(2) of this section, a member of the state teachers 8,001
retirement system with PARTICIPATING IN THE PLAN DESCRIBED IN 8,002
SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE WHO HAS at least 8,003
eighteen months of contributing service in the system, the public 8,005
employees retirement system, or the school employees retirement 8,006
system who CHOSE TO BE exempted himself from membership in one or 8,009
more of the systems pursuant to section 145.03, or 3309.23 of the 8,010
169
Revised Code, or former section 3307.25 or 3309.25 of the Revised 8,011
Code, or was exempt under section 3307.27 3307.24 of the Revised 8,013
Code, may purchase credit for each year or portion of a year of 8,014
service for which he THE MEMBER was exempted.
(2) A member may not purchase credit under this section 8,016
for service that was exempted from contribution under section 8,017
3307.27 3307.24 of the Revised Code and subject to the tax on 8,018
wages imposed by the "Federal Insurance Contributions Act," 68A 8,020
Stat. 415 (1954), 26 U.S.C.A. 3101, as amended. 8,021
(B) For each year or portion of a year of credit purchased 8,023
under this section, a member shall pay to the STATE TEACHERS 8,024
retirement system an amount determined by multiplying the 8,026
member's compensation for the twelve months of contributing 8,027
service preceding the month in which he THE MEMBER applies to 8,028
purchase the credit by a percentage rate established by rule of 8,030
the state teachers retirement board adopted under division (F) of 8,031
this section.
(C) Subject to board rules, a member may purchase all or 8,033
part of the credit he THE MEMBER is eligible to purchase under 8,034
this section in one or more payments. If the member purchases 8,036
the credit in more than one payment, compound interest at a rate 8,037
specified by rule of the board shall be charged on the balance 8,038
remaining after the first payment is made. 8,039
(D) Credit purchasable under this section shall not exceed 8,041
one year of service for any twelve-month period. If the period 8,042
of service for which credit is purchasable under this section is 8,043
concurrent with a period of service that will be used to 8,044
calculate a retirement benefit from this system, the public 8,045
employees retirement system, or the school employees retirement 8,046
system, the amount of the credit shall be adjusted in accordance 8,047
with rules adopted by the state teachers retirement board. 8,048
A member who is also a member of the public employees 8,050
retirement system or the school employees retirement system shall 8,051
purchase credit for any service for which he THE MEMBER exempted 8,052
170
himself SELF under section 145.03 or 3309.23 of the Revised Code, 8,054
or former section 3307.25 or 3309.25 of the Revised Code, or was 8,055
exempt under section 3307.27 3307.24 of the Revised Code, from 8,056
the retirement system in which he THE MEMBER has the greatest 8,058
number of years of service credit. If the member receives 8,060
benefits under section 3307.41 3307.57 of the Revised Code, the 8,062
state retirement system that determines and pays the retirement 8,063
benefit shall receive from the other system or systems the 8,064
amounts paid by the member for purchase of credit for exempt 8,065
service plus interest at the actuarial assumption rate of the 8,066
system paying that amount. The interest shall be for the period 8,067
beginning on the date of the member's last payment for purchase 8,068
of the credit and ending on the date of the member's retirement. 8,069
(E) If a member dies or withdraws from service, any 8,071
payment made by the member under this section shall be considered 8,072
as accumulated contributions of the member. 8,073
(F) The retirement board shall adopt rules to implement 8,075
this section. 8,076
Sec. 3307.32 3307.74. (A) Service credit purchased under 8,085
this section shall be included in the member's total service 8,087
credit. Credit may be purchased BY A MEMBER PARTICIPATING IN THE 8,088
PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE 8,089
for the following:
(1) Teaching service in a public or private school, 8,091
college, or university of this or another state, and for teaching 8,092
service in any school or entity operated by or for the United 8,093
States government. Teaching credit purchased under this section 8,094
shall be limited to service rendered in schools, colleges, or 8,095
universities chartered or accredited by the appropriate 8,096
governmental agency. 8,097
(2) Public service with another state or the United States 8,099
government, provided that such credit shall be limited to service 8,100
that would have been covered by the state teachers retirement 8,101
system, the school employees retirement system, the Ohio police 8,103
171
and fire pension fund, the state highway patrol retirement 8,106
system, or the public employees retirement system if served in a 8,107
comparable public position in this state.
(3) Service for which contributions were made by the 8,109
member or on the member's behalf to a municipal retirement system 8,111
in this state. 8,112
The number of years of service purchased under this section 8,114
shall not exceed the lesser of five years or the member's total 8,115
accumulated number of years of Ohio service. 8,116
(B)(1) Except as otherwise provided in division (B)(2) of 8,118
this section, for each year of service purchased under this 8,119
section, a member shall pay to the state teachers retirement 8,120
system for credit to the member's accumulated account an amount 8,122
equal to the member's retirement contribution for full-time 8,123
employment for the first year of Ohio service following 8,125
termination of the service to be purchased. To this amount shall 8,126
be added an amount equal to compound interest at a rate 8,127
established by the state teachers retirement board from the date 8,128
of membership in the state teachers retirement system to the date 8,129
of payment.
(2) For each year of service described in division (A) of 8,131
this section that commenced on or after July 1, 1989, and, 8,132
without regard to when the service commenced, for each year of 8,133
service purchased under division (A) of this section by a member 8,134
who first established membership in the retirement system on or 8,135
after July 1, 1989, the member shall pay to the retirement system 8,136
for credit to the member's individual account an amount specified 8,138
by the state teachers retirement board that shall be not less 8,139
than fifty per cent of the additional liability resulting from 8,140
the purchase of that year of service as determined by an actuary 8,141
employed by the board. 8,142
(3) A member may choose to purchase only part of the 8,144
credit the member is eligible to purchase under this section in 8,146
any one payment, subject to board rules. 8,147
172
(C) A member is ineligible to purchase under this section 8,149
service that is used in the calculation of any retirement benefit 8,150
currently being paid or payable in the future to such member 8,151
under any other retirement program, except social security. At 8,152
the time the credit is purchased, the member shall certify on a 8,153
form furnished by the retirement board that the member does and 8,155
will conform to this requirement. 8,156
(D) Credit purchased under this section may be combined 8,158
pursuant to section 3307.41 3307.57 of the Revised Code with 8,159
credit purchased under sections 145.293 and 3309.31 of the 8,161
Revised Code, except that not more than a total of five years' 8,162
service credit purchased under this section and sections 145.293 8,163
and 3309.31 of the Revised Code shall be used in determining 8,164
retirement eligibility or calculating benefits under section 8,165
3307.41 3307.57 of the Revised Code. 8,167
(E) The retirement board shall establish a policy to 8,169
determine eligibility to purchase credit under this section, and 8,170
its decision shall be final. 8,171
Sec. 3307.33 3307.741. (A) As used in this section, 8,180
"other Ohio state retirement system" means the public employees 8,182
retirement system, the school employees retirement system, the 8,183
Ohio police and fire pension fund, or the state highway patrol 8,186
retirement system.
(B) Any member PARTICIPATING IN THE PLAN DESCRIBED IN 8,188
SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE, in addition to 8,189
service as a teacher, may purchase credit for either of the 8,190
following:
(1) Similar service as a teacher in the public day 8,192
schools, in state universities, state normal schools, and other 8,193
state or municipal institutions of a character similar to the 8,194
state or municipally supported schools of Ohio in which 8,195
membership in the state teachers retirement system is allowed, of 8,196
another state of the United States, or of any territory or 8,197
possession of the United States, or of the District of Columbia; 8,198
173
(2) Similar service as an employee of an employer who 8,200
comes within any other Ohio state retirement system but for 8,201
service which is rendered at any time in another state of the 8,202
United States or of any territory or possession thereof, or for 8,203
service as an employee of the United States government, provided 8,204
credit cannot be purchased for service credit or benefits 8,205
received in any other state retirement system in Ohio. 8,206
(C) Any member who has at least ten years of total service 8,208
credit may also purchase credit for similar service as a teacher 8,209
in a private school, college, university, or other educational 8,210
institution that is located in this or another state, in any 8,211
territory or possession of the United States, or in the District 8,212
of Columbia, and is chartered or accredited by the appropriate 8,213
governmental agency. 8,214
(D) The state teachers retirement board shall have final 8,216
authority to determine and fix the amount of the payment that 8,217
shall be made for credit for service purchased under this 8,218
section, provided that if the member established membership in 8,219
the state teachers retirement system on or after July 1, 1989, or 8,220
the credit is for service described in division (B) or (C) of 8,221
this section that commenced on or after July 1, 1989, the amount 8,222
of the payment fixed by the board shall be not less than fifty 8,223
per cent of the additional liability resulting from the credit as 8,224
specified by an actuary employed by the board. 8,225
A member may choose to purchase only part of the credit the 8,227
member is eligible to purchase under this section in any one 8,229
payment, subject to board rules. Such payment, together with 8,230
interest compounded annually at a rate to be determined by the 8,231
board, may be refunded under the same conditions and in the same 8,232
manner as refunds are made under section 3307.51 3307.26 of the 8,233
Revised Code, and the credit provided by such payment shall be 8,235
canceled. At superannuation or commuted superannuation 8,236
retirement such payment for service, with regular interest 8,237
compounded annually at a rate to be determined by the board, 8,238
174
shall be deposited in the annuity and pension reserve fund as the 8,239
reserve for additional annuity as provided in section 3307.51 8,240
3307.26 of the Revised Code, excepting moneys charged for any 8,242
additional liabilities resulting from the purchase of the service 8,243
credit as determined by the actuary employed by the board. 8,244
Sec. 3307.02 3307.75. (A) As used in this section, "armed 8,253
forces" of the United States includes both: 8,255
(1) Army, navy, air force, marine corps, coast guard, 8,257
auxiliary corps as established by congress, army nurse corps, 8,258
navy nurse corps, red cross nurse serving with the army, navy, 8,259
air force, or hospital service of the United States, full-time 8,260
service with the American red cross in a combat zone, and such 8,261
other service as is designated by the congress as included 8,262
therein; 8,263
(2) Personnel of the Ohio national guard, the Ohio 8,265
military reserve, the Ohio naval militia, and the reserve 8,266
components of the armed forces enumerated in division (A)(1) of 8,267
this section who are called to active duty pursuant to an 8,268
executive order issued by the president of the United States or 8,269
an act of congress. 8,270
(B) Upon presentation of an honorable discharge or 8,272
certificate of service, and subject to rules adopted by the state 8,273
teachers retirement board, any member of the state teachers 8,274
retirement system PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 8,275
3307.50 TO 3307.79 OF THE REVISED CODE who was or is out of 8,277
active service as a teacher by reason of having become a member 8,278
of the armed forces of the United States on active duty or 8,279
service shall be considered as on indefinite leave of absence and 8,280
shall have such service not in excess of ten years considered as 8,281
the equivalent of prior service, provided the member returns to 8,282
service as a teacher within two years after the effective date of 8,283
discharge and establishes one year of service credit, or becomes 8,284
a member of either the public employees retirement system or the 8,285
school employees retirement system within such two-year period 8,286
175
and establishes at least one year of service credit. The 8,287
retirement board shall extend such two-year period an additional 8,288
year if failure to return is due to continuous professional 8,289
training as determined by said board. If such member, otherwise 8,290
qualified for such credit, canceled membership by the withdrawal 8,292
of the member's accumulated account, such military service credit 8,293
shall be granted following the restoration of the member's 8,294
canceled service credit as provided by section 3307.28 3307.71 of 8,296
the Revised Code. Any member of the state teachers retirement 8,298
system or anyone who becomes a new entrant who is assigned or 8,299
called to take charge of special training for essential national 8,300
defense work or veterans' training courses in any of the public 8,301
schools or universities of the state may make regular 8,302
contributions to the state teachers retirement system even though 8,303
the member's or new entrant's salary is paid from federal funds, 8,306
provided the member's or new entrant's salary is disbursed by an 8,307
employer.
(C) A member of the state teachers retirement system is 8,309
ineligible to receive service credit under this section for any 8,310
year of military service credit used in the calculation of any 8,311
retirement benefit currently being paid to the member or payable 8,312
in the future under any other retirement program, except social 8,313
security, or used to obtain service credit pursuant to section 8,314
3307.021 3307.751 or 3307.022 3307.752 of the Revised Code. At 8,316
the time such credit is requested, the member shall certify on a 8,318
form supplied by the retirement board that the member does and 8,319
will conform to this requirement. This division does not cancel 8,320
any military service credit earned prior to March 15, 1979. 8,321
Sec. 3307.021 3307.751. (A) A member PARTICIPATING IN THE 8,330
PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE 8,331
may purchase service credit that shall be considered as the 8,333
equivalent of Ohio service for each year of service incurred by 8,334
reason of having been on active duty as a member of the armed 8,335
forces of the United States, as defined in section 3307.02 8,336
176
3307.75 of the Revised Code. The credit may be purchased at any 8,338
time prior to the effective date of a benefit. The number of 8,339
years purchased under this division shall not exceed five. 8,340
(B) For the purposes of this division, "prisoner of war" 8,342
means any regularly appointed, enrolled, enlisted, or inducted 8,343
member of the armed forces of the United States who was captured, 8,344
separated, and incarcerated by an enemy of the United States. 8,345
A member PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 8,347
3307.50 TO 3307.79 OF THE REVISED CODE may purchase service 8,348
credit that shall be considered as the equivalent of Ohio service 8,349
for each year of service such member was a prisoner of war. The 8,350
number of years purchased under this division shall not exceed 8,351
five. Service credit may be purchased under this division for 8,352
the same years of service used to purchase service credit under 8,353
division (A) of this section. 8,354
(C) The total number of years purchased under this section 8,356
shall not exceed the member's total accumulated number of years 8,357
of Ohio service. 8,358
(D)(1) Except as otherwise provided in division (D)(2) of 8,360
this section, for each year of service purchased under division 8,361
(A) or (B) of this section, the member shall pay to the state 8,362
teachers retirement system for credit to the member's accumulated 8,364
account an amount determined by the member rate of contribution 8,365
in effect at the time the military service began multiplied by 8,366
the member's annual compensation for full-time employment during 8,368
the first year of service in Ohio following termination of 8,369
military service. If, however, a limit on maximum salary or 8,370
maximum contribution was in effect at the time the military 8,371
service began, the limit shall be applied to the salary received 8,372
during the first year of service in Ohio to calculate the amount 8,373
of payment. To this amount shall be added an amount equal to 8,374
compound interest at a rate established by the state teachers 8,375
retirement board from the date active military service terminated 8,376
to date of payment.
177
(2) For each year of service purchased under division (A) 8,378
or (B) of this section for military service that commenced on or 8,379
after July 1, 1989, and, without regard to when the military 8,380
service commenced, for each year of service purchased under 8,381
division (A) or (B) of this section by a member who first 8,382
established membership in the retirement system on or after July 8,383
1, 1989, the member shall pay to the retirement system for credit 8,384
to the member's individual account an amount specified by the 8,386
state teachers retirement board that shall be not less than fifty 8,387
per cent of the additional liability resulting from the purchase 8,388
of that year of service as determined by an actuary employed by 8,389
the board. 8,390
(3) A member may choose to purchase only part of the 8,392
credit the member is eligible to purchase under this section in 8,394
any one payment, subject to board rules. 8,395
(E) A member of the state teachers retirement system is 8,397
ineligible to purchase service credit under this section for any 8,398
year of military service that was: 8,399
(1) Used in the calculation of any retirement benefit 8,402
currently being paid to such member or payable in the future 8,403
under any other retirement program, except for retired pay for 8,404
non-regular service under Chapter 1223 of Section 1662 of Title 8,406
XVI of the "National Defense Authorization Act for Fiscal Year 8,407
1995," 108 Stat. 2998 (1994), 10 U.S.C.A. 12731 to 12739, or 8,408
social security; 8,409
(2) Used to obtain service credit pursuant to section 8,411
3307.02 3307.75 or 3307.022 3307.752 of the Revised Code. 8,413
At the time the credit is purchased, the member shall 8,416
certify on a form furnished by the retirement board that the 8,417
member does and will conform to this requirement. 8,419
(F) Credit purchased under this section may be combined 8,421
pursuant to section 3307.41 3307.57 of the Revised Code with 8,422
credit for military service purchased under sections 145.301 and 8,424
3309.021 of the Revised Code, except that not more than a total 8,425
178
of five years of credit purchased under division (A) of this 8,426
section, division (A) of section 145.301, and division (A) of 8,427
section 3309.021 and not more than a total of five years of 8,428
credit purchased under division (B) of this section, division (B) 8,429
of section 145.301, and division (B) of section 3309.021 of the 8,430
Revised Code shall be used in determining retirement eligibility 8,431
or calculating benefits under section 3307.41 3307.57 of the 8,432
Revised Code.
Sec. 3307.022 3307.752. (A) As used in this section: 8,442
(1) "Service in the uniformed services" means the 8,444
performance of duty on a voluntary or involuntary basis in a 8,445
uniformed service under competent authority and includes active 8,446
duty, active duty for training, initial active duty for training, 8,448
inactive duty training, full-time national guard duty, and a 8,449
period for which a person is absent from a position of employment 8,450
for the purpose of an examination to determine the fitness of the 8,451
person to perform any such duty.
(2) "Uniformed services" means the army, navy, air force, 8,453
marine corps, coast guard, or any reserve components of such 8,454
services; national guard; the commissioned corps of the United 8,456
States public health service; service as a red cross nurse with 8,458
the army, navy, air force, or hospital service of the United 8,459
States, army nurse corps, navy nurse corps, or serving full-time 8,461
with the American red cross in a combat zone; and any other 8,463
category of persons designated by the president in time of war or 8,464
emergency.
(B) On THE re-employment of a member PARTICIPATING IN THE 8,467
PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE 8,468
as a teacher by the same public employer that employed the member 8,469
prior to the member's service in the uniformed services, the 8,470
member may apply to the state teachers retirement system on a 8,471
form provided by the system to purchase service credit for 8,472
service in the uniformed services that shall be considered the 8,473
equivalent of Ohio service credit. On receipt of the 8,475
179
application, the retirement system shall request from the 8,476
employer that employed the member as a teacher prior to the 8,477
military service a certification that the member was employed by 8,478
the employer prior to, and returned to employment with the 8,479
employer within three months of honorable discharge or release 8,480
from, service in the uniformed services. If the employer can so 8,481
certify, it shall do so and shall pay to the retirement system 8,482
the employer's contribution required by this section. The 8,483
service credit shall be granted the member if all of the 8,484
following requirements are met:
(1) The member was a member of and maintained membership 8,486
in the state teachers retirement system throughout service in the 8,488
uniformed services;
(2) The member was out of active service as a teacher by 8,490
reason of service in the uniformed services; 8,491
(3) The member was honorably discharged or released from 8,493
service in the uniformed services; 8,494
(4) The member pays contributions to the retirement system 8,497
in accordance with this section.
(C) Credit may be purchased pursuant to this section at 8,500
any time prior to receipt of a benefit. The member may choose to 8,501
purchase only part of the credit in any one payment, subject to 8,502
board rules. The retirement system shall grant service credit 8,503
under this section, not to exceed five years, for each period of 8,504
service in the uniformed services for which contributions have 8,505
been received. 8,506
(D) For service purchased under this section, the member 8,509
and the member's employer, subject to board rules, shall pay to 8,510
the retirement system for credit to the member's accumulated 8,511
account an amount equal to the contributions that would have been 8,512
paid pursuant to sections 3307.51 3307.26 and 3307.53 3307.28 of 8,514
the Revised Code if the member had not been out of active service 8,517
as a teacher by reason of service in the uniformed services. 8,518
If a member pays all or any portion of the contributions 8,520
180
required by section 3307.51 3307.26 of the Revised Code later 8,523
than the lesser of five years or a period that is three times the 8,524
member's period of service in the uniformed services beginning 8,525
from the later of the member's date of re-employment as a teacher 8,526
or the effective date of this section OCTOBER 29, 1996, an amount 8,527
equal to compound interest at a rate established by the board 8,529
from the later of the member's date of re-employment as a teacher 8,530
or the effective date of this section OCTOBER 29, 1996, to the 8,531
date of payment shall be added to the remaining amount to be paid 8,533
by the member to purchase service credit under this section. 8,534
(E) This section does not cancel any military service 8,537
credit or service in the uniformed services earned or granted 8,538
under this chapter prior to the effective date of this section 8,539
OCTOBER 29, 1996. 8,540
(F) If a member purchased service credit under section 8,543
3307.021 3307.751 of the Revised Code prior to the effective date 8,547
of this section OCTOBER 29, 1996, is not receiving a benefit, and 8,548
would have been eligible to obtain service credit pursuant to 8,549
this section had it been in effect at the time of purchase, the 8,550
retirement system shall refund the amounts paid by the member for 8,551
the purchase if both of the following requirements are met: 8,552
(1) The member makes a written request for a refund on a 8,554
form provided by the retirement system; 8,555
(2) The member pays to the retirement system the 8,557
contributions required by this section. 8,558
(G) If the member meets the requirements of division (F) 8,562
of this section, the employer shall pay to the retirement system 8,563
the employer's contributions required by this section. 8,564
Sec. 3307.411 3307.76. (A) A member of the state teachers 8,573
retirement system PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 8,574
3307.50 TO 3307.79 OF THE REVISED CODE shall, in computing years 8,575
of total service, be given full credit for time served in the 8,576
public employees retirement system under Chapter 145. of the 8,577
Revised Code or in the school employees retirement system under 8,578
181
Chapter 3309. of the Revised Code, provided that the member pays 8,579
to the state teachers retirement system the amount specified in 8,580
division (B) of this section. 8,581
(B) For each year of service described in division (A) of 8,583
this section , a member shall pay an amount specified by the 8,584
state teachers retirement board, which shall be not less than 8,585
fifty per cent of the additional liability resulting from the 8,586
purchase of that year of service as determined by an actuary 8,587
employed by the board. 8,588
(C) A member may choose to purchase only part of the 8,590
credit the member is eligible to purchase under this section in 8,592
any one payment, subject to board rules. 8,593
A member is ineligible to purchase credit under this 8,595
section if credit for the service may be obtained from the public 8,597
employees retirement system or school employees retirement system 8,598
or if the credit is for service that is used in the calculation 8,599
of any retirement benefit currently being paid or payable in the 8,600
future to the member.
Sec. 3307.412 3307.761. (A) A member of the state 8,610
teachers retirement system PARTICIPATING IN THE PLAN DESCRIBED IN 8,611
SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE who has
contributions on deposit with the Ohio police and fire pension 8,613
fund or the state highway patrol retirement system shall, in 8,614
computing years of total service, be given full credit for 8,615
service credit earned under Chapter 742. or 5505. of the Revised 8,618
Code or purchased for service in the armed forces of the United 8,621
States if a transfer to the state teachers retirement system is 8,623
made under this division. At the request of the member, the Ohio 8,624
police and fire pension fund or state highway patrol retirement 8,625
system shall transfer to the state teachers retirement system, 8,626
for each year of service, the sum of the following: 8,628
(1) An amount equal to the member's payments for service 8,631
in the armed forces of the United States and accumulated 8,633
contributions to the transferring fund or system; 8,634
182
(2) An amount equal to the lesser of the employer's 8,636
contributions to the Ohio police and fire pension fund or state 8,638
highway patrol retirement system or the amount that would have 8,639
been contributed by the employer for the service had the member 8,640
been a member of the state teachers retirement system; 8,641
(3) Interest, determined as provided in division (E) of 8,644
this section, on the amounts specified in divisions (A)(1) and 8,646
(2) of this section from the last day of the year for which the 8,648
service credit was earned or in which military service credit was 8,649
purchased or obtained to the date the transfer is made. 8,651
(B) A member PARTICIPATING IN THE PLAN DESCRIBED IN 8,653
SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE who has at least 8,655
eighteen months of contributing service with the state teachers 8,656
retirement system, is a former member of the Ohio police and fire 8,658
pension fund or state highway patrol retirement system, and has 8,660
received a refund of contributions to that fund or system shall, 8,661
in computing years of total service, be given full credit for 8,662
service credit earned under Chapter 742. or 5505. of the Revised 8,664
Code or purchased for service in the armed forces of the United 8,667
States if, for each year of service, the state teachers 8,669
retirement system receives the sum of the following: 8,670
(1) An amount, which shall be paid by the member, equal to 8,673
the amount refunded by the Ohio police and fire pension fund or 8,674
the state highway patrol retirement system to the member for that 8,675
year for accumulated contributions and payments for purchase of 8,676
credit for service in the armed forces of the United States, with 8,678
interest on that amount from the date of the refund to the date 8,680
of the payment; 8,681
(2) Interest, which shall be transferred by the Ohio 8,684
police and fire pension fund or state highway patrol retirement 8,687
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 8,689
the service credit was earned or in which military service credit 8,690
was purchased or obtained to the date the refund was made; 8,692
183
(3) An amount, which shall be transferred by the Ohio 8,694
police and fire pension fund or state highway patrol retirement 8,696
system, equal to the lesser of the amount contributed by the 8,697
employer to the Ohio police and fire pension fund or state 8,698
highway patrol retirement system for that year or the amount that 8,699
would have been contributed by the employer for the year had the 8,700
member been a member of the state teachers retirement system, 8,701
with interest on that amount from the last day of the year for 8,704
which the service credit was earned or in which military service 8,705
credit was purchased or obtained to the date of the transfer. 8,707
On receipt of payment from the member, the state teaches 8,710
TEACHERS retirement system shall notify the Ohio police and fire 8,712
pension fund or the state highway patrol retirement system, 8,713
which, on receipt of the notice, shall make the transfer required 8,714
by this division. Interest shall be determined as provided in 8,715
division (E) of this section. 8,716
A member may choose to purchase only part of the credit the 8,719
member is eligible to purchase under this division in any one 8,720
payment, subject to rules of the state teachers retirement board. 8,721
(C) A member is ineligible to obtain credit under this 8,724
section for service that is used in the calculation of any 8,725
retirement benefit currently being paid or payable in the future. 8,726
(D) If a member of the state teachers retirement system 8,729
who is not a current contributor elects to obtain credit under 8,730
section 742.379 or 5505.202 of the Revised Code for service for 8,731
which the member contributed to the state teachers retirement 8,732
system or purchased credit for service in the armed forces of the 8,733
United States, the state teachers retirement system shall 8,736
transfer to the Ohio police and fire pension fund or state 8,737
highway patrol retirement system, as applicable, the amount 8,738
specified in division (D) of section 742.379 or division (B)(2) 8,740
of section 5505.202 of the Revised Code. 8,741
(E) Interest charged under this section shall be 8,744
calculated separately for each year of service credit at the 8,745
184
lesser of the actuarial assumption rate for that year of the 8,746
state teachers retirement system or of the fund or retirement 8,747
system in which the credit was earned. The interest shall be 8,748
compounded annually. 8,749
(F) The state teachers retirement board shall credit to a 8,752
member's account in the teachers' savings fund the amounts 8,753
described in divisions (A)(1) and (B)(1) of this section, except 8,755
that the interest paid by the member under division (B)(1) of 8,756
this section shall be credited to the employers' trust fund. The 8,758
board shall credit to the employers' trust fund the amounts
described in divisions (A)(2), (3), and (B)(2) of this section. 8,761
Sec. 3307.512 3307.77. (A) As used in this section, 8,770
"employer" means the employer employing a member of the state 8,772
teachers retirement system at the time the member commences an 8,773
absence, or is granted a leave described in this section. 8,774
(B) Any member of the state teachers retirement system 8,776
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 8,777
3307.79 OF THE REVISED CODE who is, or has been, prevented from 8,778
making contributions under section 3307.51 3307.26 of the Revised 8,779
Code because of an absence due to his THE MEMBER'S own illness or 8,781
injury, or who is, or has been, granted a leave for educational, 8,783
professional, or other purposes pursuant to section 3319.13, 8,784
3319.131, or 3345.28 of the Revised Code or for any other reason 8,785
approved by the state teachers retirement board, may purchase 8,786
service credit, not to exceed two years for each such period of 8,787
absence or leave, either by having deductions made in accordance 8,788
with division (C) of this section or by making the payment 8,789
required by division (D) or (E) of this section.
(C) If the absence or leave begins and ends in the same 8,791
year, the member may purchase credit for the absence or leave by 8,792
having the employer deduct and transmit to the system from 8,793
payrolls in that year employee contributions on the amount 8,794
certified by the employer as the compensation the member would 8,795
have received had he THE MEMBER remained employed in the position 8,797
185
he held when the absence or leave commenced. The deductions may 8,798
be made even though the minimum compensation provided by law for 8,799
the member is reduced thereby, unless the amount to be deducted 8,800
exceeds the compensation to be paid the member from the time 8,801
deductions begin until the end of the year, in which case credit 8,802
may not be purchased under this division. The employer shall pay 8,803
the system the employer contributions on the compensation amount 8,804
certified under this division. Employee and employer 8,805
contributions shall be made at the rates in effect at the time 8,806
the absence or leave occurred. If the employee or employer rates 8,807
in effect change during the absence or leave, the contributions 8,808
for each month of the absence or leave shall be made at the rate 8,809
in effect for that month. 8,810
(D) During or following the absence or leave, but no later 8,812
than two years following the last day of the year in which the 8,813
absence or leave terminates, a member may purchase credit for the 8,814
absence or leave by paying to the employer, and the employer 8,815
transmitting to the system, employee contributions on the amount 8,816
certified by the employer as the compensation the member would 8,817
have received had he THE MEMBER remained employed in the position 8,819
he held when the absence or leave commenced. The employer shall 8,820
pay the system the employer contributions on the compensation 8,821
amount certified under this division. Employee and employer 8,822
contributions shall be made at the rates in effect at the time 8,823
the absence or leave occurred. If the employee or employer rates 8,824
in effect change during the absence or leave, the contributions 8,825
for each month of an absence or leave shall be made at the rate 8,826
in effect for that month. 8,827
(E) After two years following the last day of the year in 8,829
which an absence or leave terminated, a member may purchase 8,830
credit for the absence or leave by paying the employer, and the 8,831
employer transmitting to the system, the sum of the following for 8,832
each year of credit purchased: 8,833
(1) An amount determined by multiplying the employee rate 8,835
186
of contribution in effect at the time the absence or leave 8,836
commenced by the member's annual compensation for his THE 8,837
MEMBER'S last full year of service prior to the commencement of 8,839
the absence or leave, or, if he THE MEMBER has not had a full 8,840
year of service, the compensation the member would have received 8,842
for the year the absence or leave commenced had he THE MEMBER 8,843
continued in service for a full year; 8,845
(2) Interest compounded annually, at a rate determined by 8,847
the board, on the amount determined under division (E)(1) of this 8,848
section for the period commencing two years following the last 8,849
day of the year in which the absence or leave terminated and 8,850
ending on the date of payment; 8,851
(3) Interest compounded annually, at a rate determined by 8,853
the board, on an amount equal to the employer's contribution 8,854
required by this division for the period commencing two years 8,855
following the last day of the year in which the absence or leave 8,856
terminated and ending on the date of payment. 8,857
The employer shall pay to the system for each year of 8,859
credit purchased under this division an amount determined by 8,860
multiplying the employer contribution rate in effect at the time 8,861
the absence or leave commenced by the member's annual 8,862
compensation for his THE MEMBER'S last full year of service prior 8,864
to the commencement of the absence or leave, or, if he THE MEMBER 8,865
has not had a full year of service, the compensation the member 8,867
would have received for the year the absence or leave commenced 8,868
had he THE MEMBER continued in service for a full year. 8,870
(F) A member who chooses to purchase service credit under 8,872
division (D) or (E) of this section may choose to purchase only 8,873
part of the credit for which he THE MEMBER is eligible in any one 8,875
payment, but payments made more than two years following the last 8,876
day of the year in which the absence or leave terminated shall be 8,877
made in accordance with division (E) of this section. 8,878
(G) The state teachers retirement board may adopt rules to 8,880
implement this section. 8,881
187
Sec. 3307.515 3307.771. As used in this section, "regular 8,890
employment" means a consistent pattern of employment for twelve 8,892
or more consecutive weeks by the same employer during the year. 8,893
A member of the state teachers retirement system 8,895
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 8,896
3307.79 OF THE REVISED CODE who prior to July 1, 1982, was 8,897
granted a leave of absence for pregnancy or resigned due to 8,898
pregnancy may purchase service credit for a period for which she 8,899
did not make contributions under section 3307.51 3307.26 of the 8,900
Revised Code. Service credit purchased under this section shall 8,902
not exceed the lesser of two years or the period from the day the 8,903
leave commenced or the effective date of resignation to the date 8,904
of the member's return to regular employment as a contributor to
the retirement system. A member may purchase credit for more 8,905
than one period of absence due to pregnancy, but the total 8,906
service credit purchased under this section, FORMER section 8,907
3307.513, and FORMER section 3307.514 of the Revised Code shall 8,908
not exceed two years. The member shall submit evidence 8,909
satisfactory to the retirement board documenting that the leave 8,910
or resignation was due to pregnancy.
For each year of service credit purchased under this 8,912
section, the member shall pay to the system for credit to her 8,913
accumulated account an amount determined by multiplying the 8,914
employee rate of contribution in effect at the time the leave or 8,915
absence commenced by her annual compensation for full-time
employment during the first year of service in Ohio following 8,916
termination of the absence or leave and adding to that amount 8,917
interest compounded annually, at a rate established by the board, 8,918
from the date the absence or leave terminated to the date of 8,919
payment.
A member may purchase all or part of the credit for which 8,921
she is eligible in one or more payments. A member who purchases 8,922
service credit for an absence or leave under this section may not 8,923
purchase credit for that absence or leave under section 3307.512 8,924
188
3307.77 of the Revised Code. A member who has purchased service 8,925
credit for an absence or leave under FORMER section 3307.512, 8,926
3307.513, or 3307.514 OR SECTION 3307.77 of the Revised Code may 8,927
not purchase credit under this section for the same period of 8,928
absence or leave.
The state teachers retirement board may adopt rules to 8,930
implement this section. 8,931
Sec. 3307.311 3307.78. (A) As used in this section, 8,940
"school board member" means a member of a city, local, exempted 8,942
village, or joint vocational school district board of education 8,943
and "governing board member" means a member of an educational 8,944
service center governing board. 8,945
(B) A member of the state teachers retirement system 8,947
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 8,948
3307.79 OF THE REVISED CODE who does both of the following may 8,949
purchase credit for service as a school board or governing board 8,950
member, other than service subject to the tax on wages imposed by 8,952
the "Federal Insurance Contributions Act," 68A Stat. 415 (1954), 8,953
26 U.S.C.A. 3101, as amended, if the member is eligible to retire 8,955
under this chapter or will become eligible to retire as a result 8,956
of purchasing the credit:
(1) Agrees to retire within ninety days after receiving 8,958
notice of the additional liability under division (C) of this 8,959
section; 8,960
(2) Provides evidence satisfactory to the STATE TEACHERS 8,962
retirement board of service as a school board or governing board 8,964
member during the years for which the member wishes to purchase 8,966
credit.
Credit may be purchased for service as a school board or 8,969
governing board member between September 1, 1920, and the first
day of January of the year in which the credit is purchased. A 8,971
member is eligible to purchase one-quarter of a year's credit for 8,972
each year of service as a school board or governing board member. 8,973
Credit purchased under this section shall be included in 8,975
189
the member's total service credit for the purposes of section 8,976
3307.36 3307.52 of the Revised Code. 8,977
(C) On receipt of a request from a member eligible to 8,979
purchase credit under this section, the system shall obtain from 8,980
its actuary certification of the additional liability to the 8,981
system for each quarter year of credit the member is eligible to 8,982
purchase and shall notify the member of such additional 8,983
liability. Within ninety days after receiving notice of the 8,984
additional liability, the member may purchase in quarter-year 8,985
increments any portion of the credit the member is eligible to 8,986
purchase. For each quarter year of credit purchased, the member 8,987
shall pay to the system an amount equal to the additional 8,988
liability resulting from the purchase. Payment shall be made in 8,989
full at the time of purchase. 8,990
(D) The state teachers retirement board shall adopt rules 8,992
in accordance with section 111.15 of the Revised Code concerning 8,993
the purchase of credit under this section. In addition to any 8,994
other matters considered relevant by the board, the rules shall 8,995
specify the procedure to be followed to inform the system that a 8,997
member wishes to purchase credit for service as a school board or 8,999
governing board member.
(E) If the member does not retire within ninety days after 9,001
purchasing credit under this section, the system shall withdraw 9,002
the credit and refund the amount paid by the member. 9,003
Sec. 3307.383 3307.79. (A) A member whose death occurred 9,013
prior to July 1, 1973, who at the time of death had more than 9,014
thirty-four but less than thirty-five years of service credit 9,015
shall be presumed to have completed thirty-five years of such 9,016
credit. Any member whose death occurred on or after July 1, 9,017
1973, but prior to August 20, 1976, and who at the time of death 9,018
had more than thirty-one but less than thirty-two years of 9,019
service credit shall be presumed to have completed thirty-two 9,020
years of such credit. Any member PARTICIPATING IN THE PLAN 9,021
DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE 9,022
190
whose death occurs on or after August 20, 1976, and who at the 9,023
time of death has more than twenty-nine but less than thirty 9,024
years of service credit shall be presumed to have completed 9,025
thirty years of such credit.
Upon (B) ON the death of a member WHO IS PARTICIPATING IN 9,028
THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED
CODE prior to service retirement, the surviving spouse or 9,030
dependents of the deceased member shall have the right to 9,031
purchase any service credit the member, had the member not died, 9,033
would have been eligible to purchase pursuant to sections
3307.021 3307.71, 3307.022 3307.72, 3307.22 3307.73, 3307.28 9,035
3307.74, 3307.32 3307.741, 3307.33 3307.751, 3307.411 3307.752, 9,037
3307.412 3307.76, 3307.512 3307.761, 3307.77, and 3307.73 9,040
3307.771 of the Revised Code upon the same terms and conditions 9,041
which the deceased member could have purchased such service 9,042
credit had the deceased member not died. Any service credit 9,043
purchased under this section shall be applied under the 9,045
provisions of this chapter in the same manner as it would have 9,046
been applied had it been purchased by the deceased member during 9,047
the deceased member's lifetime. 9,048
Sec. 3307.80. THE STATE TEACHERS RETIREMENT BOARD SHALL 9,050
ADOPT RULES TO IMPLEMENT THE PLANS ESTABLISHED UNDER SECTION 9,051
3307.81 OF THE REVISED CODE. 9,052
Sec. 3307.81. THE STATE TEACHERS RETIREMENT BOARD SHALL 9,054
ESTABLISH ONE OR MORE PLANS CONSISTING OF BENEFIT OPTIONS THAT 9,055
PROVIDE FOR AN INDIVIDUAL ACCOUNT FOR EACH PARTICIPATING MEMBER 9,056
AND UNDER WHICH BENEFITS ARE BASED SOLELY ON THE AMOUNTS THAT 9,058
HAVE ACCUMULATED IN THE ACCOUNT. THE PLANS MAY INCLUDE OPTIONS 9,059
UNDER WHICH A MEMBER PARTICIPATING IN A PLAN MAY RECEIVE 9,060
DEFINITELY DETERMINABLE BENEFITS.
EACH PLAN ESTABLISHED UNDER THIS SECTION SHALL MEET THE 9,063
REQUIREMENTS OF SECTIONS 3307.81 TO 3307.89 OF THE REVISED CODE. 9,064
IT MAY INCLUDE LIFE INSURANCE, ANNUITIES, VARIABLE ANNUITIES, 9,065
REGULATED INVESTMENT TRUSTS, POOLED INVESTMENT FUNDS, OR OTHER 9,067
191
FORMS OF INVESTMENT.
THE BOARD MAY ADMINISTER THE PLANS, ENTER INTO CONTRACTS 9,069
WITH OTHER ENTITIES TO ADMINISTER THE PLANS, OR BOTH. THE BOARD 9,070
MAY CONTRACT WITH ANOTHER ENTITY TO ADMINISTER THE PLANS IF THE 9,071
ENTITY AGREES TO MEET ALL REQUIREMENTS OF THIS CHAPTER APPLICABLE 9,072
TO THE PLANS. 9,073
Sec. 3307.811. EACH PLAN ESTABLISHED UNDER SECTION 3307.81 9,076
OF THE REVISED CODE SHALL MEET THE REQUIREMENTS NECESSARY TO 9,077
QUALIFY AS A RETIREMENT SYSTEM MAINTAINED BY A STATE OR LOCAL 9,079
GOVERNMENT ENTITY UNDER DIVISION (b)(7)(F) OF SECTION 3121 OF THE 9,080
"INTERNAL REVENUE CODE OF 1986," 100 STAT. 2085, 26 U.S.C.A. 9,084
3121(b)(7)(F), AS AMENDED. EACH PARTICIPANT IN A PLAN SHALL 9,086
QUALIFY AS A MEMBER OF THAT SYSTEM. 9,087
Sec. 3307.812. IN ESTABLISHING A PLAN UNDER SECTION 9,089
3307.81 OF THE REVISED CODE, THE STATE TEACHERS RETIREMENT BOARD 9,091
MAY DO ALL THINGS NECESSARY TO AVOID THE SYSTEM BEING REQUIRED TO 9,092
PAY FEDERAL OR STATE INCOME TAXES ON CONTRIBUTIONS TO THE PLAN OR 9,094
AMOUNTS EARNED UNDER THE PLAN AND, TO THE EXTENT PERMITTED UNDER 9,096
FEDERAL OR STATE LAW, TO ALLOW MEMBERS PARTICIPATING IN THE PLAN 9,097
TO MAKE TAX DEFERRED CONTRIBUTIONS FOR PERIODS OF INTERRUPTED OR
PRIOR SERVICE. 9,098
Sec. 3307.83. THE RIGHT OF EACH MEMBER PARTICIPATING IN A 9,100
PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE REVISED CODE TO A 9,101
RETIREMENT, DISABILITY, OR SURVIVOR BENEFIT, TO HEALTH CARE 9,103
INSURANCE COVERAGE, OR TO A WITHDRAWAL OF CONTRIBUTIONS SHALL BE 9,105
GOVERNED BY THE PLAN SELECTED BY THE MEMBER UNDER SECTION 3307.25
OR 3307.251 OF THE REVISED CODE. 9,108
Sec. 3307.84. FOR EACH MEMBER PARTICIPATING IN A PLAN 9,110
ESTABLISHED UNDER SECTION 3307.81 OF THE REVISED CODE, THE STATE 9,111
TEACHERS RETIREMENT SYSTEM SHALL TRANSFER TO THE EMPLOYERS' TRUST 9,112
FUND A PORTION OF THE EMPLOYER CONTRIBUTION REQUIRED UNDER 9,113
SECTION 3307.28 OF THE REVISED CODE THAT IS EQUAL TO THE 9,114
PERCENTAGE OF COMPENSATION OF MEMBERS DESCRIBED IN THIS SECTION 9,115
FOR WHOM THE CONTRIBUTIONS ARE BEING MADE THAT IS DETERMINED BY 9,117
192
THE BOARD'S ACTUARY TO BE NECESSARY TO MITIGATE ANY NEGATIVE 9,118
FINANCIAL IMPACT ON THE STATE TEACHERS RETIREMENT SYSTEM OF THE 9,119
PARTICIPATION OF MEMBERS IN A PLAN ESTABLISHED UNDER SECTION 9,120
3307.81 OF THE REVISED CODE. THE REMAINDER SHALL BE CREDITED AS 9,122
PROVIDED IN SECTION 3307.28 OF THE REVISED CODE. 9,123
THE STATE TEACHERS RETIREMENT BOARD SHALL HAVE PREPARED 9,127
ANNUALLY AN ACTUARIAL STUDY TO DETERMINE WHETHER THE PERCENTAGE 9,128
TRANSFERRED UNDER THIS SECTION SHOULD BE CHANGED TO REFLECT A 9,129
CHANGE IN THE LEVEL OF THE NEGATIVE FINANCIAL IMPACT RESULTING 9,130
FROM PARTICIPATION OF MEMBERS IN A PLAN ESTABLISHED UNDER SECTION
3307.81 OF THE REVISED CODE. THE PERCENTAGE TRANSFERRED UNDER 9,132
THIS SECTION SHALL BE INCREASED OR DECREASED TO REFLECT THE 9,133
AMOUNT NEEDED TO MITIGATE THE NEGATIVE FINANCIAL IMPACT, IF ANY, 9,134
ON THE SYSTEM, AS DETERMINED BY THE ACTUARIAL STUDY. AN INCREASE 9,135
OR DECREASE SHALL TAKE EFFECT ON THE FIRST DAY OF THE MONTH 9,136
FOLLOWING THE DATE THE CONCLUSIONS OF THE ACTUARIAL STUDY ARE 9,137
REPORTED TO THE BOARD.
THE SYSTEM SHALL MAKE THE TRANSFER REQUIRED UNDER THIS 9,140
SECTION UNTIL THE UNFUNDED ACTUARIAL ACCRUED LIABILITY FOR ALL 9,141
BENEFITS, EXCEPT HEALTH CARE BENEFITS PROVIDED UNDER SECTION 9,142
3307.39 OR 3307.61 OF THE REVISED CODE AND BENEFIT INCREASES 9,143
PROVIDED TO MEMBERS AND FORMER MEMBERS PARTICIPATING IN THE PLAN
DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE 9,144
AFTER THE EFFECTIVE DATE OF THIS SECTION, IS FULLY AMORTIZED, AS 9,146
DETERMINED BY THE ANNUAL ACTUARIAL VALUATION PREPARED UNDER
SECTION 3307.51 OF THE REVISED CODE. 9,148
Sec. 3307.86. THE STATE TEACHERS RETIREMENT SYSTEM MAY 9,150
REQUIRE MEMBERS PARTICIPATING IN A PLAN ESTABLISHED UNDER SECTION 9,151
3307.81 OF THE REVISED CODE AND THEIR EMPLOYERS TO FURNISH THE 9,152
CONTRIBUTIONS AND INFORMATION REQUIRED UNDER THIS CHAPTER AT MORE 9,154
FREQUENT INTERVALS THAN THOSE REQUIRED FOR MEMBERS PARTICIPATING 9,155
IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE 9,156
REVISED CODE. THE SYSTEM HAS NO DUTY TO ACCEPT CONTRIBUTIONS BY 9,157
OR ON BEHALF OF A MEMBER IF A CONTRIBUTION OR INFORMATION IS NOT 9,158
193
FURNISHED AT SUCH INTERVALS.
Sec. 3307.87. (A)(1) IF A MEMBER PARTICIPATING IN A PLAN 9,160
ESTABLISHED UNDER SECTION 3307.81 OF THE REVISED CODE IS MARRIED 9,161
AT THE TIME ANY BENEFITS UNDER THE PLAN COMMENCE, BENEFITS SHALL 9,163
BE PAID IN ACCORDANCE WITH DIVISION (A)(2) OF THIS SECTION,
UNLESS THE SPOUSE HAS CONSENTED UNDER DIVISION (C) OF THIS 9,164
SECTION TO A DIFFERENT FORM OF PAYMENT. 9,165
(2) THE BENEFITS DESCRIBED IN DIVISION (A)(1) OF THIS 9,167
SECTION SHALL BE PAID IN THE FORM OF AN ANNUITY, WHICH SHALL 9,168
CONSIST OF THE ACTUARIAL EQUIVALENT OF THE MEMBER'S BENEFITS, IN 9,169
AN AMOUNT THAT IS PAYABLE FOR THE LIFE OF THE MEMBER AND ONE-HALF 9,170
OF THE AMOUNT CONTINUING AFTER THE MEMBER'S DEATH TO THE SPOUSE 9,172
FOR THE LIFE OF THE SPOUSE.
(B) IF A MEMBER PARTICIPATING IN A PLAN ESTABLISHED UNDER 9,174
SECTION 3307.81 OF THE REVISED CODE IS MARRIED AT THE TIME OF THE 9,175
MEMBER'S DEATH, ANY BENEFITS THAT ARE PAYABLE TO THE MEMBER SHALL 9,176
BE PAID TO THE MEMBER'S SPOUSE, UNLESS THE SPOUSE HAS CONSENTED 9,177
UNDER DIVISION (C) OF THIS SECTION TO THE DESIGNATION OF A 9,178
DIFFERENT BENEFICIARY. 9,179
(C) A PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE 9,181
REVISED CODE SHALL INCLUDE REQUIREMENTS FOR CONSENT UNDER THIS 9,183
SECTION THAT ARE THE SAME AS THE REQUIREMENTS SPECIFIED IN 9,184
DIVISION (a)(2) OF SECTION 417 OF THE INTERNAL REVENUE CODE, 26 9,185
U.S.C.A. 417(a)(2), AS AMENDED. EACH PLAN MAY WAIVE CONSENT IF 9,187
THE SPOUSE CANNOT BE LOCATED OR FOR ANY OTHER REASON SPECIFIED IN 9,188
THE REGULATIONS ADOPTED UNDER THAT SECTION.
CONSENT OR WAIVER IS EFFECTIVE ONLY WITH REGARD TO THE 9,190
SPOUSE WHO IS THE SUBJECT OF THE CONSENT OR WAIVER. 9,191
Sec. 3307.88. (A) THIS SECTION APPLIES TO A MEMBER OF THE 9,193
STATE TEACHERS RETIREMENT SYSTEM WHO MADE AN ELECTION UNDER 9,194
SECTION 3307.25 OF THE REVISED CODE TO PARTICIPATE IN A PLAN 9,195
ESTABLISHED UNDER SECTION 3307.81 OF THE REVISED CODE. 9,196
(B) ON THE FIRST DAY OF JULY FOLLOWING THE FOURTH 9,198
ANNIVERSARY OF THE DATE MEMBERSHIP BEGAN, A MEMBER SHALL BEGIN 9,199
194
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 9,202
3307.79 OF THE REVISED CODE UNLESS, PRIOR TO THAT DAY, THE MEMBER 9,203
ELECTS UNDER SECTION 3307.881 OF THE REVISED CODE TO REMAIN IN A 9,205
PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE REVISED CODE. 9,206
(C) WHEN, UNDER DIVISION (B) OF THIS SECTION, A MEMBER 9,208
BEGINS PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 9,210
3307.79 OF THE REVISED CODE, THE SYSTEM SHALL DO ALL OF THE 9,211
FOLLOWING:
(1) TRANSFER FROM THE MEMBER'S ACCOUNT IN THE DEFINED 9,213
CONTRIBUTION FUND TO AN ACCOUNT IN THE TEACHERS' SAVINGS FUND THE 9,214
SUM OF THE FOLLOWING: 9,215
(a) AN AMOUNT EQUAL TO THE CONTRIBUTIONS MADE PURSUANT TO 9,217
SECTION 3307.26 OF THE REVISED CODE; 9,218
(b) ANY SUPPLEMENTAL CONTRIBUTIONS MADE BY THE MEMBER; 9,220
(c) ANY EARNINGS FROM SUPPLEMENTAL CONTRIBUTIONS. 9,222
(2) TRANSFER TO THE EMPLOYERS' TRUST FUND THE SUM OF THE 9,224
FOLLOWING:
(a) AN AMOUNT EQUAL TO THE CONTRIBUTIONS MADE PURSUANT TO 9,226
SECTION 3307.28 OF THE REVISED CODE; 9,228
(b) ANY AMOUNT REMAINING IN THE MEMBER'S ACCOUNT IN THE 9,231
DEFINED CONTRIBUTION FUND AFTER THE TRANSFERS DESCRIBED IN 9,232
DIVISIONS (C)(1) AND (2)(a) OF THIS SECTION ARE MADE. 9,233
(3) GRANT SERVICE CREDIT IN ACCORDANCE WITH RULES ADOPTED 9,235
UNDER SECTION 3307.53 OF THE REVISED CODE. 9,236
(D) IF THE AMOUNT IN THE MEMBER'S ACCOUNT IN THE DEFINED 9,238
CONTRIBUTION FUND IS LESS THAN THE AMOUNT THE MEMBER WOULD HAVE 9,240
HAD IN AN ACCOUNT IN THE TEACHERS' SAVINGS FUND HAD THE MEMBER 9,241
ELECTED TO PARTICIPATE IN THE PLAN DESCRIBED IN SECTIONS 3307.50
TO 3307.79 OF THE REVISED CODE, THE SYSTEM SHALL TRANSFER FROM 9,243
THE GUARANTEE FUND ESTABLISHED UNDER SECTION 3307.14 OF THE 9,244
REVISED CODE TO THE TEACHERS' SAVINGS FUND THE AMOUNT NECESSARY 9,246
TO MAKE THE TRANSFER REQUIRED BY DIVISION (C)(1)(a) OF THIS 9,247
SECTION. 9,248
(E) EXCEPT FOR SERVICE CREDIT GRANTED UNDER DIVISION 9,251
195
(C)(3) OF THIS SECTION, A MEMBER WHO BEGINS PARTICIPATION IN THE
PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE 9,253
PURSUANT TO THIS SECTION SHALL HAVE THE SAME RIGHTS AND 9,255
PRIVILEGES UNDER THE PLAN AS A MEMBER WHO NEVER HAD MADE AN 9,257
ELECTION TO PARTICIPATE IN A PLAN ESTABLISHED UNDER SECTION 9,258
3307.81 OF THE REVISED CODE. 9,259
Sec. 3307.881. A MEMBER OF THE STATE TEACHERS RETIREMENT 9,261
SYSTEM PARTICIPATING IN A PLAN ESTABLISHED UNDER SECTION 3307.81 9,262
OF THE REVISED CODE WHO IS SUBJECT TO SECTION 3307.88 OF THE 9,265
REVISED CODE MAY ELECT TO CONTINUE PARTICIPATING IN THE PLAN. AN 9,266
ELECTION SHALL BE MADE IN WRITING ON A FORM PROVIDED BY THE STATE 9,267
TEACHERS RETIREMENT BOARD AND FILED WITH THE BOARD NOT LATER THAN
THE THIRTIETH DAY OF JUNE FOLLOWING THE FOURTH ANNIVERSARY OF THE 9,268
DATE MEMBERSHIP BEGAN. 9,269
Sec. 3307.882. NOT LATER THAN ONE HUNDRED EIGHTY DAYS 9,271
PRIOR TO THE THIRTIETH DAY OF JUNE FOLLOWING THE FOURTH 9,272
ANNIVERSARY OF THE DATE MEMBERSHIP BEGAN, THE STATE TEACHERS 9,273
RETIREMENT SYSTEM SHALL NOTIFY A MEMBER WHO IS SUBJECT TO SECTION 9,275
3307.88 OF THE REVISED CODE OF THE OPPORTUNITY TO ELECT TO 9,276
CONTINUE PARTICIPATION IN A PLAN ESTABLISHED UNDER SECTION 9,277
3307.81 OF THE REVISED CODE. THE NOTICE SHALL INCLUDE AN 9,278
EXPLANATION OF THE PROVISIONS OF SECTION 3307.881 OF THE REVISED 9,279
CODE.
Sec. 3307.89. THE STATE TEACHERS RETIREMENT BOARD MAY 9,281
OFFER TO MEMBERS PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 9,282
3307.50 TO 3307.79 OF THE REVISED CODE THE OPPORTUNITY TO ALSO 9,283
PARTICIPATE IN ONE OR MORE OF THE BENEFIT OPTIONS AVAILABLE UNDER 9,285
A PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE REVISED CODE. A 9,287
MEMBER'S CONTRIBUTIONS TO AN OPTION SHALL BE CREDITED TO AN 9,288
INDIVIDUAL ACCOUNT ESTABLISHED FOR THE MEMBER IN THE DEFINED 9,289
CONTRIBUTION FUND. 9,290
Sec. 3307.68 3307.96. If a local district pension system 9,299
votes to merge with the state teachers retirement system as 9,301
provided in section 3307.26 3307.241 of the Revised Code, the 9,304
196
state teachers retirement board shall employ an actuary to value
the assets and liabilities which will be taken over by the state 9,305
teachers retirement system hereby created in the event of such 9,306
merger. The actuary so employed shall be an actuary also 9,308
approved by the employer in whose district the local district 9,310
pension system is operated, and the expense of the valuation 9,311
shall be paid by such THE employer. The actuary shall compute 9,312
the present value of the liabilities on account of teachers in 9,313
service in the local district pension system and on account of 9,314
pensioners in the rolls of such local district pension system. 9,315
He THE ACTUARY shall also compute the present value of the 9,317
prospective amount to be received by reason of the payment of the
normal contributions by the employer on behalf of the active 9,318
teachers of such local system in the event of the contemplated 9,319
merger. From the present value of the total liability for 9,320
pensions on account of teachers in service in the local district 9,321
pension system as previously determined, the actuary shall deduct 9,322
the present value of the normal contributions.
The amount remaining, together with any excess, of the 9,324
present value of all payments, necessary to continue the pensions 9,325
of the pensioners of the local district pension system, over and 9,326
above the amount of moneys and securities of such system, shall 9,327
be known as the "accrued liability." No teacher who is a member 9,328
of a local district pension system on May 9, 1919, shall receive
a lesser total retirement allowance upon retirement after merger 9,329
of the local system with the state teachers retirement system 9,330
than said teacher would have received upon retirement under the 9,331
local system.
Sec. 3307.69 3307.97. That part of the accrued liability, 9,340
due on account of pensions to pensioners already on the rolls of 9,342
the local district pension system, referred to in section 3307.68 9,343
3307.96 of the Revised Code, remaining unpaid on September 1, 9,345
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 9,346
197
four per cent per annum on unpaid balances. Both the payment and 9,347
interest shall be payable semiannually on dates to be fixed by 9,348
the state teachers retirement board. Payments on that part of 9,349
the accrued liability due to teachers in active service in the 9,350
local district pension system shall be at the same rate per cent 9,351
of the salaries of such teachers as the deficiency contribution
rate fixed in FORMER section 3307.54 of the Revised Code, and 9,352
shall be made until the year in which the deficiency contribution 9,354
payable by other employers who had no local pension system may be 9,355
discontinued.
Sec. 3307.70 3307.98. The increasing contribution 9,364
determined as provided in sections 3307.68 3307.96 and 3307.69 9,366
3307.97 of the Revised Code by the actuary shall be paid by the 9,368
employer. In the event of merger, the moneys and securities to 9,369
the credit of the local district pension system, not exceeding an 9,370
aggregate amount equal to the present value of the payments to be 9,371
made on account of all pensions to the pensioners on the rolls of 9,372
the local district pension system, shall be transferred to the 9,373
employers' accumulation fund and the pensions then payable by the 9,374
local district pension system shall thereafter be paid from the 9,375
employers' accumulation fund until the reserves on these pensions 9,376
with the other pensions payable from the employers' accumulation 9,377
fund have been accumulated and shall be transferred to the 9,378
annuity and pension reserve fund, from which fund they shall 9,379
thereafter be payable. The pensions of the active members of the 9,380
local district pension system and of the new entrants shall 9,381
thereafter be payable as are the pensions of other members of the 9,382
state teachers retirement system. The amount of the excess of 9,383
the moneys and securities of the local district pension system 9,384
over and above the present value of the payments to be made on 9,385
account of all pensions to the pensioners of the rolls of the 9,386
local district pension system shall be transferred to the 9,387
teachers' savings fund and shall be credited pro rata to the 9,388
active teachers of such local district pensions system on the 9,389
198
basis of the amounts of their previous contributions to the local 9,390
district pension system. In case such method of distribution is 9,391
not found practicable by the state teachers retirement board, the 9,392
board may use such other method of apportionment as seems fair 9,393
and equitable to such board. The amount so credited in any case 9,394
shall be considered as a part of the teacher's accumulated 9,395
contributions, AS DEFINED IN SECTION 3307.50 OF THE REVISED CODE, 9,396
for all purposes except in the case of retirement UNDER THE PLAN 9,398
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 9,399
teacher's accumulated contributions and shall be used in 9,400
purchasing from the annuity and pension reserve fund an annuity, 9,401
in addition to any other annuity or pension benefit otherwise 9,402
provided by this chapter. 9,403
After the moneys and securities of any local district 9,405
pension system have been transferred to the employers' 9,406
accumulation fund or to the teachers' savings fund, such local 9,407
district pension system shall cease to exist. 9,408
Sec. 3309.021. (A) A member may purchase service credit 9,417
that shall be considered as the equivalent of Ohio service for 9,418
each year of service incurred by reason of having been on active 9,419
duty as a member of the armed forces of the United States, as 9,420
defined in section 3309.02 of the Revised Code. All or part of 9,421
the credit may be purchased at any time prior to receipt of a 9,422
retirement allowance. The number of years purchased under this 9,424
division shall not exceed five.
(B) For the purposes of this division, "prisoner of war" 9,426
means any regularly appointed, enrolled, enlisted, or inducted 9,427
member of the armed forces of the United States who was captured, 9,428
separated, and incarcerated by an enemy of the United States. 9,429
A member may purchase service credit that shall be 9,431
considered as the equivalent of Ohio service for each year of 9,432
service such member was a prisoner of war. The number of years 9,433
purchased under this division shall not exceed five. Service 9,434
199
credit may be purchased under this division for the same years of 9,435
service used to purchase service credit under division (A) of 9,436
this section. The member may choose to purchase only part of 9,437
such credit in any one payment, subject to board rules. 9,438
(C) The total number of years purchased under this section 9,440
shall not exceed the member's total accumulated number of years 9,441
of Ohio service. 9,442
(D) For each year of service purchased under division (A) 9,444
or (B) of this section, the member shall pay to the school 9,445
employees retirement system for credit to the member's 9,446
accumulated account an amount determined by the member rate of 9,448
contribution in effect at the time the military service began 9,449
multiplied by the annual compensation for full-time employment 9,450
during the first year of service covered by the school employees 9,451
retirement system, public employees retirement system, or state 9,452
teachers retirement system following termination of military 9,453
service. If, however, a limit on maximum salary or maximum 9,454
contribution was in effect at the time the military service 9,455
began, the limit shall be applied to the salary received during 9,456
the first year of service in Ohio to calculate the amount of 9,457
payment. To this amount shall be added an amount equal to 9,458
compound interest at a rate established by the school employees 9,459
retirement board from the date of the member's first service 9,460
covered by the school employees retirement system, public 9,461
employees retirement system, or state teachers retirement system 9,462
following termination of the military service to date of payment. 9,463
(E) A member of the school employees retirement system is 9,465
ineligible to purchase service credit under this section for any 9,466
year of military service that was: 9,467
(1) Used in the calculation of any retirement benefit 9,470
currently being paid to the member or payable in the future under 9,471
any other retirement program, except for retired pay for 9,472
nonregular service under Chapter 1223 of Section 1662 of Title 9,474
XVI of the "National Defense Authorization Act for Fiscal Year 9,475
200
1995," 108 Stat. 2998 (1994), 10 U.S.C.A. 12731 to 12739, or 9,476
social security; 9,477
(2) Used to obtain service credit pursuant to section 9,479
3309.02 or 3309.022 of the Revised Code. 9,480
At the time such credit is purchased, the member shall 9,483
certify on a form furnished by the retirement board that the 9,484
member does and will conform to this requirement. 9,486
(F) Credit purchased under this section may be combined 9,488
pursuant to section 3309.35 of the Revised Code with credit for 9,489
military service purchased under sections 145.301 and 3307.021 9,490
3307.751 of the Revised Code, except that not more than an 9,492
aggregate total of five years of credit purchased under division 9,493
(A) of this section, division (A) of section 145.301, and 9,494
division (A) of section 3307.021 3307.751 of the Revised Code, 9,495
and not more than an aggregate total of five years of credit 9,497
purchased under division (B) of this section, division (B) of 9,498
section 145.301, and division (B) of section 3307.021 3307.751 of 9,499
the Revised Code shall be used in determining retirement 9,501
eligibility or calculating benefits under section 3309.35 of the 9,502
Revised Code.
Sec. 3309.261. (A) A member of the school employees 9,511
retirement system who has at least eighteen months of 9,512
contributing service credit in the system, the OHIO police and 9,513
firemen's disability and FIRE pension fund, public employees 9,515
retirement system, state teachers retirement system, or state 9,516
highway patrol retirement system, and is a former member of or no 9,517
longer contributing to the public employees retirement system or 9,518
state teachers retirement system may restore service credit under 9,519
section 145.31 or 3307.28 3307.71 of the Revised Code by making 9,521
payments pursuant to this section through a payroll deduction 9,522
plan established under section 3309.27 of the Revised Code. A 9,523
member seeking to restore service credit shall notify the school 9,525
employees retirement system on a form approved by the school 9,526
employees retirement board. After receiving the notice, the 9,527
201
school employees retirement system shall request that the former 9,528
retirement system calculate under section 145.312 or 3307.283 9,529
3307.712 of the Revised Code the cost to the member to restore 9,532
service credit for each year or portion of a year of service for 9,533
which the member seeks to restore the service credit. The amount 9,534
the former retirement system certifies as the cost of restoring 9,535
the service credit, plus interest described in division (B) of 9,536
this section, is the cost to the member of restoring the service 9,537
credit. On receiving the certification from the former 9,538
retirement system, the school employees retirement system shall 9,539
notify the member of the cost.
(B) For each year or portion of a year of service credit 9,541
restored under section 145.31 or 3307.28 3307.71 of the Revised 9,542
Code, a member shall pay to the school employees retirement 9,544
system the amount certified by the former retirement system plus 9,545
interest at a rate specified by the former retirement system 9,546
under section 145.312 or 3307.283 3307.712 of the Revised Code 9,547
for the period during which deductions are made under section 9,549
3309.27 of the Revised Code. 9,550
(C) The school employees retirement board shall annually 9,553
notify the former retirement system that a payment to restore 9,554
service credit under section 145.31 or 3307.28 3307.71 of the 9,555
Revised Code has been made. At the time the payment is 9,556
transferred under division (D) of this section, the former 9,557
retirement system shall restore the service credit for the year 9,558
or portion of a year for which the payment was made. 9,560
(D) On application for a payment of accumulated 9,562
contributions or an age and service retirement, disability, or 9,564
survivor benefit under Chapter 145., 3307., or 3309. of the 9,565
Revised Code by a member who made payments under this section to 9,567
restore service credit in a former retirement system, the school 9,568
employees retirement system shall pay to the former retirement 9,569
system an amount equal to the total amount paid by the member 9,570
under this section.
202
(E) The board shall adopt rules to implement this section. 9,572
Sec. 3309.262. After receiving a request from the public 9,582
employees retirement system under division (A) of section 145.311 9,583
or the state teachers retirement system under division (A) of 9,586
section 3307.282 3307.711 of the Revised Code, the school 9,588
employees retirement system shall do both of the following: 9,589
(A) Calculate and certify to the requesting retirement 9,592
system the cost to a former member to restore service credit 9,593
under section 3309.26 of the Revised Code for each year or 9,594
portion of a year for which the former member seeks to purchase 9,595
service credit under that section.
(B) Inform the requesting retirement system of the rate of 9,597
interest charged to a member under a payroll deduction plan 9,598
authorized under section 3309.27 of the Revised Code. 9,599
Sec. 3309.301. (A)(1) Except as provided in division 9,608
(A)(2) of this section, a member of the school employees 9,609
retirement system with at least eighteen months of contributing 9,610
service in the system, the public employees retirement system, or 9,611
the state teachers retirement system who exempted himself SELF 9,612
from membership in one or more of the systems pursuant to section 9,614
145.03 or 3309.23 of the Revised Code, or former section 3307.25 9,615
or 3309.25 of the Revised Code, or was exempt under section 9,616
3307.27 3307.24 of the Revised Code, may purchase credit for each 9,618
year or portion of a year of service for which he THE MEMBER was 9,619
exempted. 9,620
(2) A member may not purchase credit under this section 9,622
for service that was exempted from contribution under section 9,623
3309.23 of the Revised Code and subject to the tax on wages 9,624
imposed by the "Federal Insurance Contributions Act," 68A Stat. 9,625
415 (1954), 26 U.S.C.A. 3101, as amended. 9,626
(B) Upon receipt of a request from a member eligible to 9,628
purchase credit under this section and certification of the 9,629
member's service and compensation from the employer for which the 9,630
exempt service was performed, the school employees retirement 9,631
203
system shall determine the amount of credit the member is 9,632
eligible to purchase in accordance with divisions (B)(1) and (2) 9,633
of this section. 9,634
(1) If the credit to be purchased is for service exempted 9,636
under section 3309.23 or former section 3309.25 of the Revised 9,637
Code, determine the amount of credit that would have been earned 9,638
had the service not been exempt. 9,639
(2) If the credit to be purchased is for service exempted 9,641
under section 145.03 or 3307.27 3307.24, or former section 9,642
3307.25 of the Revised Code, request certification from the 9,644
applicable retirement system that the service was exempt and the 9,645
amount of service credit that would have been earned had the 9,646
service not been exempt. 9,647
(C) For each year or portion of a year of credit purchased 9,649
under this section, a member shall pay to the retirement system 9,650
an amount determined by multiplying the member's compensation for 9,651
the twelve months of contributing service preceding the month in 9,652
which he THE MEMBER applies to purchase the credit by a 9,653
percentage rate established by rule of the school employees 9,655
retirement board adopted under division (G) of this section. 9,656
(D) Subject to board rules, a member may purchase all or 9,658
part of the credit he THE MEMBER is eligible to purchase under 9,659
this section in one or more payments. If the member purchases 9,661
the credit in more than one payment, compound interest at a rate 9,662
specified by rule of the board shall be charged on the balance 9,663
remaining after the first payment is made. 9,664
(E) Credit purchasable under this section shall not exceed 9,666
one year of service for any twelve-month period. If the period 9,667
of service for which credit is purchasable under this section is 9,668
concurrent with a period of service that will be used to 9,669
calculate a retirement benefit from this system, the public 9,670
employees retirement system, or the state teachers retirement 9,671
system, the amount of the credit shall be adjusted in accordance 9,672
with rules adopted by the school employees retirement board. 9,673
204
A member who is also a member of the public employees 9,675
retirement system or the state teachers retirement system shall 9,676
purchase credit for any service for which he THE MEMBER exempted 9,677
himself SELF under section 145.03 or 3309.23 of the Revised Code, 9,679
or former section 3307.25 or 3309.25 of the Revised Code, or was 9,680
exempt under section 3307.27 3307.24 of the Revised Code, from 9,681
the retirement system in which he THE MEMBER has the greatest 9,683
number of years of service credit. If the member receives 9,685
benefits under section 3309.35 of the Revised Code, the state 9,686
retirement system that determines and pays the retirement benefit 9,687
shall receive from the other system or systems the amounts paid 9,688
by the member for purchase of credit for exempt service plus 9,689
interest at the actuarial assumption rate of the system paying 9,690
that amount. The interest shall be for the period beginning on 9,691
the date of the member's last payment for purchase of the credit 9,692
and ending on the date of the member's retirement. 9,693
(F) If a member dies or withdraws from service, any 9,695
payment made by the member under this section shall be considered 9,696
as accumulated contributions of the member. 9,697
(G) The retirement board shall adopt rules to implement 9,699
this section. 9,700
Sec. 3309.31. Service credit purchased under this section 9,709
shall be included in the member's total service credit. Credit 9,710
may be purchased for the following: 9,711
(A) School service in a public or private school, college, 9,713
or university of this or another state, and for school service in 9,714
any school or entity operated by or for the United States 9,715
government. Credit purchased under this section for school 9,716
service shall be limited to service rendered in schools, 9,717
colleges, or universities chartered or accredited by the 9,718
appropriate governmental agency. 9,719
(B) Public service with another state or the United States 9,721
government, provided that such credit shall be limited to service 9,722
that would have been covered by the state teachers retirement 9,723
205
system, the Ohio police and fire pension fund, the state highway 9,726
patrol retirement system, or the public employees retirement 9,727
system if served in a comparable public position in this state. 9,728
(C) Service for which contributions were made by the 9,730
member or on the member's behalf to a municipal retirement system 9,732
in this state. 9,733
The number of years of service purchased under this section 9,736
shall not exceed the lesser of five years or the member's total 9,737
accumulated number of years of Ohio service.
For each year of service purchased under this section, a 9,739
member shall pay to the school employees retirement system for 9,740
credit to the member's accumulated account an amount equal to the 9,742
member's retirement contribution for full-time employment for the 9,743
first year of Ohio service following termination of the service 9,744
to be purchased. To this amount shall be added an amount equal 9,745
to compound interest at a rate established by the school 9,746
employees retirement board from the date of membership in the 9,747
school employees retirement system to date of payment. A member 9,748
may choose to purchase only part of such credit in any one 9,749
payment, subject to board rules. 9,750
A member is ineligible to purchase under this section 9,752
service that is used in the calculation of any retirement benefit 9,753
currently being paid or payable in the future to the member under 9,754
any other retirement program, except social security. At the 9,755
time the credit is purchased, the member shall certify on a form 9,756
furnished by the retirement board that the member does and will 9,758
conform to this requirement. 9,759
(D) Credit purchased under this section may be combined 9,761
pursuant to section 3309.35 of the Revised Code with credit 9,762
purchased under sections 145.293 and 3307.32 3307.74 of the 9,763
Revised Code, except that not more than an aggregate total of 9,765
five years' service credit purchased under this section and 9,766
sections 145.293 and 3307.32 3307.74 of the Revised Code shall be 9,767
used in determining retirement eligibility or calculating 9,769
206
benefits under section 3309.35 of the Revised Code. 9,770
(E) The retirement board shall establish a policy to 9,772
determine eligibility to purchase credit under this section, and 9,773
its decision shall be final. 9,774
Sec. 3309.341. (A) As used in this section: 9,783
(1) "SERS retirant" means any person who is receiving a 9,785
retirement allowance from the school employees retirement system 9,786
under section 3309.36, 3309.38, or 3309.381 of the Revised Code. 9,787
(2) "Other system retirant" means a member or former 9,789
member of the public employees retirement system, Ohio police and 9,791
fire pension fund, state teachers retirement system, state 9,792
highway patrol retirement system, or Cincinnati retirement system 9,793
who is receiving age and service or commuted age and service 9,794
retirement, or a disability benefit from a system of which the 9,795
retirant is a member or former member.
(B)(1) An SERS retirant or other system retirant may be 9,797
employed by a public employer. If so employed, the SERS retirant 9,798
or other system retirant shall contribute to the school employees 9,799
retirement system in accordance with section 3309.47 of the 9,800
Revised Code, and the employer shall make contributions in 9,801
accordance with section 3309.49 of the Revised Code. 9,802
(2) An employer that employs an SERS retirant or other 9,804
system retirant shall notify the retirement board of the 9,805
employment not later than the end of the month in which the 9,806
employment commences. On receipt of notice from an employer that 9,807
a person who is an other system retirant has been employed, the 9,808
school employees retirement system shall notify the state 9,809
retirement system of which the other system retirant was a member 9,810
of such employment. 9,811
(C) An SERS retirant or other system retirant who has 9,813
received a retirement allowance or disability benefit for less 9,815
than two months when employment subject to this section commences 9,816
shall forfeit the retirement allowance or disability benefit for 9,818
the period that begins on the date the employment commences and 9,819
207
ends on the date that is two months after the date on which the 9,820
retirement allowance or disability benefit commenced. Service 9,821
and contributions for that period shall not be included in the 9,822
calculation of any benefits payable to the SERS retirant or other 9,823
system retirant, and those contributions shall be refunded on 9,824
death or termination of the employment. 9,825
(D) On receipt of notice from the Ohio police and fire 9,828
pension fund, public employees retirement system, or state 9,830
teachers retirement system of the re-employment of an SERS 9,831
retirant, the school employees retirement system shall not pay,
or if paid shall recover, the amount to be forfeited by the SERS 9,832
retirant in accordance with section 145.38, 742.26, or 3307.381 9,833
3307.35 of the Revised Code. 9,834
(E)(1) On termination of employment under this section, an 9,836
SERS retirant or other system retirant may file an application 9,837
with the school employees retirement system for a benefit under 9,838
this division, which shall consist of a single life annuity 9,839
having a reserve equal to the amount of the retirant's 9,840
accumulated contributions for the period of employment and an 9,842
equal amount of the employer's contributions, plus interest 9,843
credited to the date of retirement at the rate provided in 9,844
division (I)(2) of section 3309.01 of the Revised Code. The SERS 9,845
retirant or other system retirant shall elect either to receive 9,846
the benefit as a monthly annuity for life or a lump-sum payment 9,847
discounted to the present value using the current actuarial 9,848
assumption rate of interest, except that if the monthly annuity 9,849
would be less than twenty-five dollars per month, the retirant 9,851
shall receive a lump-sum payment.
(2) A benefit payable under this division shall commence 9,853
on the first day of the month after the latest of the following: 9,854
(a) The last day for which compensation for employment 9,856
subject to this section was paid; 9,857
(b) Attainment by the SERS retirant or other system 9,859
retirant of age sixty-five; 9,860
208
(c) If the SERS retirant or other system retirant was 9,862
previously employed under this section and is receiving or 9,863
previously received a benefit under this division, completion of 9,864
a period of twelve months since the effective date of that 9,865
benefit. 9,866
(3) An SERS retirant or other system retirant subject to 9,868
this section is not a member of the school employees retirement 9,869
system; does not have any of the rights, privileges, or 9,870
obligations of membership, except as specified in this section; 9,871
and is not eligible to receive health, medical, hospital, or 9,872
surgical benefits under section 3309.69 of the Revised Code for 9,873
employment subject to this section. No amount received under 9,874
this division shall be included in determining an additional 9,875
benefit under section 3309.374 of the Revised Code or any other 9,876
post-retirement benefits. 9,877
(F)(1) If an SERS retirant or other system retirant dies 9,879
while employed in employment subject to this section, a lump-sum 9,880
payment calculated in accordance with division (E)(1) of this 9,881
section shall be paid to the beneficiary under division (H) of 9,882
this section. 9,883
(2) If at the time of death an SERS retirant or other 9,885
system retirant receiving a monthly annuity has received less 9,886
than the retirant would have received as a lump-sum payment, the 9,889
difference between the amount received and the amount that would 9,891
have been received as a lump-sum payment shall be paid to the 9,892
retirant's beneficiary under division (H) of this section. 9,894
(G) If the disability benefit of an other system retirant 9,896
employed under this section is terminated, the retirant shall 9,897
become a member of the school employees retirement system, 9,899
effective on the first day of the month next following the 9,900
termination, with all the rights, privileges, and obligations of 9,901
membership. If the retirant, after the termination of the 9,903
disability benefit, earns two years of service credit under this 9,905
retirement system or under the public employees retirement 9,906
209
system, Ohio police and fire pension fund, state teachers 9,907
retirement system, or state highway patrol retirement system, the 9,909
retirant's prior contributions as an other system retirant under 9,911
this section shall be included in the retirant's total service 9,912
credit as a school employees retirement system member, and the 9,914
retirant shall forfeit all rights and benefits of this section. 9,916
Not more than one year of credit may be given for any period of 9,917
twelve months.
(H) An SERS retirant or other system retirant employed 9,919
under this section may designate one or more persons as 9,920
beneficiary to receive any benefits payable under this section 9,921
due to death. The designation shall be in writing duly executed 9,923
on a form provided by the school employees retirement board, 9,924
signed by the SERS retirant or other system retirant, and filed 9,925
with the board prior to death. The last designation of a 9,926
beneficiary revokes all previous designations. The SERS
retirant's or other system retirant's marriage, divorce, marriage 9,927
dissolution, legal separation, withdrawal of account, birth of 9,928
the retirant's child, or adoption of a child revokes all previous 9,930
designations. If there is no designated beneficiary, the 9,931
beneficiary is the beneficiary designated under division (D) of 9,932
section 3309.44 of the Revised Code. If any benefit payable 9,933
under this section due to the death of an SERS retirant or other 9,934
system retirant is not claimed by a beneficiary within five years 9,935
after the death, the amount payable shall be transferred to the 9,936
guarantee fund and thereafter paid to the beneficiary or the 9,937
estate of the SERS retirant or other system retirant on 9,938
application to the board. 9,939
(I) This section does not affect the receipt of benefits 9,941
by or eligibility for benefits of any person who on August 29, 9,942
1976, was receiving a disability benefit or service retirement 9,943
pension or allowance from a state or municipal retirement system 9,944
in Ohio and was a member of any other state or municipal 9,945
retirement system of this state. 9,946
210
(J) The school employees retirement board may adopt rules 9,948
to carry out this section. 9,949
Sec. 3309.35. (A) As used in this section: 9,958
(1) "State retirement system" means the public employees 9,960
retirement system, state teachers retirement system, or school 9,961
employees retirement system. 9,962
(2) "Total service credit" means all service credit earned 9,964
in all state retirement systems, except credit for service 9,965
subject to section 3309.341 of the Revised Code. Total service 9,966
credit shall not exceed one year of credit for any twelve-month 9,967
period. 9,968
(3) In addition to the meaning given in division (O) of 9,970
section 3309.01 of the Revised Code, "disability benefit" means 9,971
"disability benefit" as defined in sections 145.01 and 3307.01 of 9,972
the Revised Code. 9,973
(B) To coordinate and integrate membership in the state 9,975
retirement systems, at the option of a member, total 9,977
contributions and service credit in all state retirement systems, 9,978
including amounts paid to restore service credit under sections 9,979
145.311, 3307.282 3307.711, and 3309.261 of the Revised Code, 9,981
shall be used in determining the eligibility and total retirement 9,982
or disability benefit payable. When total contributions and 9,983
service credit are so combined, the following provisions apply: 9,984
(1) Service and commuted service retirement or a 9,986
disability benefit is effective no sooner than the first day of 9,987
the month next following the last day of employment for which 9,988
compensation was paid. If the application is filed after that 9,989
date, the board may retire the member on the first day of the 9,990
month next following the last day of employment for which 9,991
compensation was paid. 9,992
(2) In determining eligibility for a disability benefit, 9,994
the medical examiner's report to the retirement board of any 9,995
state retirement system, showing that the member's disability 9,996
incapacitates the member for the performance of duty, may be 9,997
211
accepted by the state retirement boards as sufficient for 9,999
granting a disability benefit. 10,000
(3) The state retirement system in which the member had 10,002
the greatest service credit, without adjustment, shall determine 10,003
and pay the total retirement or disability benefit. Where the 10,004
member's credit is equal in two or more state retirement systems, 10,006
the system having the largest total contributions of the member 10,007
shall determine and pay the total benefit. 10,008
(4) In determining the total credit to be used in 10,010
calculating a retirement allowance or disability benefit, credit 10,011
shall not be reduced below that certified by the system or 10,012
systems transferring credit, except that such total combined 10,013
service credit shall not exceed one year of credit for any one 10,014
"year" as defined in the law of the system making the 10,015
calculation. 10,016
(5) The state retirement system determining and paying a 10,018
retirement or disability benefit shall receive from the other 10,019
system or systems the member's refundable account at retirement 10,020
or the effective date of a disability benefit plus an equal 10,021
amount from the employers' trust fund. 10,022
(a) The annuity rates and mortality tables of the state 10,024
retirement system making the calculation and paying the benefit 10,025
shall be exclusively applicable. 10,026
(b) Deposits made for the purchase of an additional 10,028
annuity, and including guaranteed interest, upon the request of 10,029
the member, shall be transferred to the state retirement system 10,030
paying the retirement or disability benefit. The return upon 10,031
such deposits shall be that offered by the state retirement 10,032
system making the calculation and paying the retirement or 10,033
disability benefit. 10,034
(C) A former member receiving a retirement or disability 10,036
benefit under this section, who accepts employment amenable to 10,037
coverage in any state retirement system that participated in the 10,038
member's combined benefit, shall be subject to the applicable 10,040
212
provisions of law governing such re-employment. If the former 10,041
member is subject to section 3307.381 3307.35 of the Revised Code 10,042
and exceeds the limits on re-employment established by that 10,044
section, the state retirement system paying a combined benefit 10,045
shall terminate the entire pension portion of the benefit for the 10,046
period of re-employment that exceeds the limit in that section. 10,047
If a former member should be paid any amount in a retirement 10,048
allowance, to which the former member is not entitled under the 10,050
applicable provisions of law governing such re-employment, such 10,051
amount shall be recovered by the state retirement system paying 10,052
such allowance by utilizing any recovery procedure available 10,053
under the code provisions of the state retirement system covering 10,054
such re-employment. 10,055
(D) An SERS retirant or other system retirant, as defined 10,057
in section 3309.341 of the Revised Code, is not eligible to 10,058
receive any benefit under this section for service subject to 10,059
section 3309.341 of the Revised Code. 10,060
Sec. 3309.3712. THE SCHOOL EMPLOYEES RETIREMENT BOARD MAY 10,062
ESTABLISH AND MAINTAIN A QUALIFIED GOVERNMENTAL EXCESS BENEFIT 10,063
ARRANGEMENT THAT MEETS THE REQUIREMENTS OF DIVISION (m) OF 10,064
SECTION 415 OF THE "INTERNAL REVENUE CODE OF 1986," 100 STAT. 10,068
2085, 26 U.S.C.A. 415, AS AMENDED, AND ANY REGULATIONS ADOPTED 10,070
THEREUNDER. IF ESTABLISHED, THE ARRANGEMENT SHALL BE A SEPARATE
PORTION OF THE SCHOOL EMPLOYEES RETIREMENT SYSTEM AND BE
MAINTAINED SOLELY FOR THE PURPOSE OF PROVIDING TO RETIRED MEMBERS 10,071
THAT PART OF A BENEFIT OTHERWISE PAYABLE UNDER THIS CHAPTER THAT 10,072
EXCEEDS THE LIMITS ESTABLISHED BY SECTION 415 OF THE "INTERNAL 10,073
REVENUE CODE OF 1986," AS AMENDED. 10,074
MEMBERS PARTICIPATING IN AN ARRANGEMENT ESTABLISHED UNDER 10,076
THIS SECTION SHALL NOT BE PERMITTED TO ELECT TO DEFER 10,077
COMPENSATION TO THE ARRANGEMENT. CONTRIBUTIONS TO AND BENEFITS 10,078
PAID UNDER AN ARRANGEMENT SHALL NOT BE PAYABLE FROM A TRUST THAT 10,079
IS PART OF THE SYSTEM UNLESS THE TRUST IS MAINTAINED SOLELY FOR 10,080
THE PURPOSE OF PROVIDING SUCH BENEFITS. 10,081
213
THE BOARD SHALL ADOPT RULES TO ADMINISTER AN ARRANGEMENT 10,083
ESTABLISHED UNDER THIS SECTION. 10,084
Sec. 3309.39. (A) The school employees retirement system 10,093
shall provide disability coverage to each member who has at least 10,094
five years of total service credit. 10,095
Not later than October 16, 1992, the school employees 10,097
retirement board shall give each person who is a member on July 10,098
29, 1992, the opportunity to elect disability coverage either 10,101
under section 3309.40 of the Revised Code or under section 10,102
3309.401 of the Revised Code. The board shall mail notice of the 10,103
election, accompanied by an explanation of the coverage under 10,104
each of the Revised Code sections and a form on which the 10,105
election is to be made, to each member at the member's last known 10,107
address. The board shall also provide the explanation and form 10,108
to any member at the member's request.
Regardless of whether the member actually receives notice 10,110
of the right to make an election, a member who fails to file a 10,112
valid election under this section shall be considered to have
elected disability coverage under section 3309.40 of the Revised 10,113
Code. To be valid, an election must be made on the form provided 10,114
by the retirement board, signed by the member, and filed with the 10,115
board not later than one hundred eighty days after the date the 10,116
notice was mailed, or, in the case of a form provided at the 10,117
request of a member, a date specified by rule of the retirement 10,118
board. Once made, an election is irrevocable, but if the member 10,119
ceases to be a member of the retirement system, the election is 10,120
void. If a person who makes an election under this section also 10,121
makes an election under section 145.35 or 3307.42 3307.62 of the 10,123
Revised Code, the election made for the system that pays a 10,124
disability benefit to that person shall govern the benefit. 10,125
Disability coverage shall be provided under section 10,127
3309.401 of the Revised Code for persons who become members after 10,128
July 29, 1992, and for members who elect under this division to 10,131
be covered under section 3309.401 of the Revised Code. 10,132
214
The retirement board may adopt rules governing elections 10,134
made under this division. 10,135
(B) Application for a disability benefit may be made by a 10,137
member, by a person acting in the member's behalf, or by the 10,138
member's employer, provided the member has at least five years of 10,139
total service credit and has disability coverage under section 10,140
3309.40 or 3309.401 of the Revised Code. The application for a 10,141
disability benefit shall be made on a form provided by the 10,142
retirement board. The benefit payable to any member who is 10,143
approved for a disability benefit shall become effective on the 10,144
first day of the month next following the later of the following: 10,145
(1) The last day for which compensation was paid; 10,147
(2) The date on which the member was first incapacitated 10,149
by the disabling condition. 10,150
(C) Medical examination of a member who has applied for a 10,152
disability benefit shall be conducted by a competent 10,153
disinterested physician or physicians selected by the retirement 10,154
board to determine whether the member is mentally or physically 10,155
incapacitated for the performance of the member's last assigned 10,156
primary duty as an employee by a disabling condition either 10,157
permanent or presumed to be permanent for twelve continuous 10,158
months following the filing of an application. Such disability 10,160
must have occurred since last becoming a member or have increased 10,161
since last becoming a member to such extent as to make the 10,162
disability permanent or presumed to be permanent for twelve 10,163
continuous months following the filing of an application. 10,164
(D) Application for a disability benefit must be made 10,166
within two years from the date the member's contributing service 10,167
terminated, unless the retirement board determines that the 10,168
member's medical records demonstrate conclusively that at the 10,169
time the two-year period expired, the member was physically or 10,170
mentally incapacitated for duty as an employee and unable to make 10,171
application. Application may not be made by any person receiving 10,172
a service retirement allowance or commuted service retirement 10,173
215
allowance under section 3309.36, 3309.38, or 3309.381 of the 10,174
Revised Code or any person who, pursuant to section 3309.42 of 10,175
the Revised Code, has been paid the accumulated contributions 10,176
standing to the credit of the person's individual account in the 10,178
employees' savings fund.
(E) If the physician or physicians determine that the 10,180
member qualifies for a disability benefit, the retirement board 10,182
concurs with the determination, and the member agrees to medical
treatment as specified in division (F) of this section, the 10,184
member shall receive a disability benefit under section 3309.40 10,185
or 3309.401 of the Revised Code. The action of the board shall 10,186
be final. At the time the board decides it concurs with the 10,187
determination of the physician or physicians, the board shall 10,188
determine the date on which the member was first incapacitated by 10,189
the disabling condition. 10,190
(F) The school employees retirement board shall adopt 10,192
rules requiring a disability benefit recipient, as a condition of 10,194
continuing to receive a disability benefit, to agree in writing 10,195
to obtain any medical treatment recommended by the board's 10,196
physician and submit medical reports regarding the treatment. If 10,198
the board determines that a disability benefit recipient is not
obtaining the medical treatment or the board does not receive a 10,199
required medical report, the disability benefit shall be 10,200
suspended until the treatment is obtained, the report is received 10,202
by the board, or the board's physician certifies that the 10,203
treatment is no longer helpful or advisable. Should the 10,205
recipient's failure to obtain treatment or submit a medical
report continue for one year, the recipient's right to the 10,207
disability benefit shall be terminated as of the effective date 10,208
of the original suspension.
(G) In the event an employer files an application for a 10,210
disability benefit as a result of a member having been separated 10,211
from service because the member is considered to be mentally or 10,213
physically incapacitated for the performance of the member's last
216
assigned primary duty as an employee, and the physician or 10,214
physicians selected by the board report to the board that the 10,215
member is physically and mentally capable of performing service 10,216
similar to that from which the member was separated, and the 10,217
board concurs in such report, then the board shall so certify to 10,218
the employer and the employer shall restore the member to the 10,219
member's previous position and salary or to a similar position 10,220
and salary.
Sec. 3309.45. Except as provided in division (C)(1) of 10,229
this section, in lieu of accepting the payment of the accumulated 10,231
account of a member who dies before service retirement, the 10,232
beneficiary, as determined in section 3309.44 of the Revised 10,233
Code, may elect to forfeit the accumulated account and to 10,234
substitute certain other benefits either under division (A) or 10,235
(B) of this section.
(A) If a deceased member was eligible for a service 10,237
retirement allowance as provided in section 3309.36, 3309.38, or 10,238
3309.381 of the Revised Code, a surviving spouse or other sole 10,239
dependent beneficiary may elect to receive a monthly benefit 10,241
computed as the joint-survivor allowance designated as "plan D" 10,242
in section 3309.46 of the Revised Code, which the member would 10,243
have received had the member retired on the last day of the month 10,244
of death and had the member at that time selected such 10,245
joint-survivor plan. Payment shall begin with the month 10,246
subsequent to the member's death. 10,247
(B) If the deceased member had completed at least one and 10,249
one-half years of credit for Ohio service, with at least 10,250
one-quarter year of Ohio contributing service credit within the 10,251
two and one-half years prior to the date of death, or was 10,252
receiving at the time of death a disability benefit as provided 10,253
in section 3309.40 or 3309.401 of the Revised Code, qualified 10,254
survivors may elect to receive monthly benefits, provided in 10,257
divisions (B)(1) and (5) of this section.
(1) Number of 10,259
217
Qualified 10,260
Or 10,261
survivors Annual Benefit as a Per Monthly Benefit 10,263
affecting Cent of Decedent's shall not be 10,266
Final
the benefit Average Salary less than 10,269
1 25% $ 96 10,272
2 40 186 10,273
3 50 236 10,274
4 55 236 10,275
5 or more 60 236 10,276
(2) Benefits shall begin as qualified survivors meet 10,279
eligibility requirements as follows: 10,280
(a) A qualified spouse is the surviving spouse of the 10,282
deceased member who is age sixty-two, or age fifty if the 10,285
deceased member had ten or more years of Ohio service credit, or 10,286
regardless of age if caring for a surviving child, or regardless 10,288
of age if adjudged physically or mentally incompetent. 10,289
(b) A qualified child is any unmarried child of the 10,293
deceased member under age eighteen, or under age twenty-two if 10,294
the child is attending an institution of learning or training 10,295
pursuant to a program designed to complete in each school year 10,296
the equivalent of at least two-thirds of the full-time curriculum 10,297
requirements of such institution and as further determined by 10,298
board policy, or regardless of age if adjudged physically or 10,299
mentally incompetent. 10,300
(c) A qualified parent is a dependent parent aged 10,302
sixty-five or older. 10,303
(3) "Physically or mentally incompetent" as used in this 10,305
section may be determined by a court of jurisdiction, or by a 10,306
physician appointed by the retirement board. Incapability of 10,307
earning a living because of a physically or mentally disabling 10,308
condition shall meet the qualifications of this division. 10,309
(4) Benefits to a qualified survivor shall terminate upon 10,312
218
a first marriage, abandonment, adoption, or during active 10,314
military service. Benefits to a deceased member's surviving 10,316
spouse that were terminated under a former version of this 10,317
section that required termination due to remarriage and were not 10,318
resumed prior to the effective date of this amendment shall 10,319
resume on the first day of the month immediately following
receipt by the board of an application on a form provided by the 10,320
board.
Upon the death of any subsequent spouse who was a member of 10,323
the public employees retirement system, state teachers retirement 10,324
system, or school employees retirement system, the surviving 10,325
spouse of such member may elect to continue receiving benefits 10,326
under this division, or to receive survivor's benefits, based 10,327
upon the subsequent spouse's membership in one or more of the 10,328
systems, for which such surviving spouse is eligible under this 10,329
section or section 145.45 or 3307.49 3307.66 of the Revised Code. 10,331
If the surviving spouse elects to continue receiving benefits 10,332
under this division, such election shall not preclude the payment 10,333
of benefits under this division to any other qualified survivor. 10,334
Benefits shall begin or resume on the first day of the 10,336
month following the attainment of eligibility and shall terminate 10,337
on the first day of the month following loss of eligibility. 10,338
(5) Benefits to a qualified spouse shall be paid in the 10,340
amount determined for the first qualifying survivor in division 10,342
(B)(1) of this section, but shall not be less than one hundred 10,343
six dollars per month if the deceased member had ten or more 10,344
years of Ohio service credit. All other qualifying survivors 10,346
shall share equally in the benefit or remaining portion thereof. 10,347
(6) The beneficiary of a member who is also a member of 10,349
the public employees retirement system, or of the state teachers 10,350
retirement system, must forfeit the member's accumulated 10,351
contributions in those systems, if the beneficiary takes a 10,354
survivor benefit. Such benefit shall be exclusively governed by 10,355
section 3309.35 of the Revised Code. 10,356
219
(C)(1) Regardless of whether the member is survived by a 10,360
spouse or designated beneficiary, if the school employees
retirement system receives notice that a deceased member 10,361
described in division (A) or (B) of this section has one or more 10,363
qualified children, all persons who are qualified survivors under 10,364
Division (B) of this section shall receive monthly benefits as 10,367
provided in division (B) of this section. 10,368
If, after determining the monthly benefits to be paid under 10,370
division (B) of this section, the system receives notice that 10,371
there is a qualified survivor who was not considered when the 10,372
determination was made, the system shall, notwithstanding section 10,373
3309.661 of the Revised Code, recalculate the monthly benefits 10,374
with that qualified survivor included, even if the benefits to 10,375
qualified survivors already receiving benefits are reduced as a 10,376
result. The benefits shall be calculated as if the qualified 10,377
survivor who is the subject of the notice became eligible on the
date the notice was received and shall be paid to qualified 10,378
survivors effective on the first day of the first month following 10,379
the system's receipt of the notice. 10,380
If the retirement system did not receive notice that a 10,382
deceased member has one or more qualified children prior to 10,384
making payment under section 3309.44 of the Revised Code to a 10,387
beneficiary as determined by the retirement system, the payment 10,388
is a full discharge and release of the system from any future 10,389
claims under this section or section 3309.44 of the Revised Code. 10,390
(2) If benefits under division (C)(1) of this section to 10,393
all persons, or to all persons other than a surviving spouse or 10,395
other sole beneficiary, terminate, there are no children under
the age of twenty-two years, and the surviving spouse or 10,396
beneficiary qualifies for benefits under division (A) of this 10,398
section, the surviving spouse or beneficiary may elect to receive 10,399
benefits under division (A) of this section. Benefits shall be 10,400
effective on the first day of the month following receipt by the 10,402
board of an application for benefits under division (A) of this 10,403
220
section. 10,404
(D) If the survivor benefits due and paid under this 10,406
section are in a total amount less than the member's accumulated 10,407
account that was transferred from the employees' savings fund, 10,408
the state teachers retirement fund, and the public employees 10,409
retirement fund to the survivors' benefit fund, then the 10,410
difference between the total amount of the benefits paid shall be 10,411
paid to the beneficiary under section 3309.44 of the Revised 10,412
Code. 10,413
Sec. 3313.975. As used in this section and in sections 10,422
3313.975 to 3313.979 of the Revised Code, "the pilot project 10,423
school district" or "the district" means any school district 10,426
included in the pilot project scholarship program pursuant to 10,427
this section.
(A) The superintendent of public instruction shall 10,430
establish a pilot project scholarship program and shall include 10,431
in such program any school districts that are or have ever been 10,432
under federal court order requiring supervision and operational 10,434
management of the district by the state superintendent. The
program shall provide for a number of students residing in any 10,436
such district to receive scholarships to attend alternative 10,437
schools, and for an equal number of students to receive tutorial 10,438
assistance grants while attending public school in any such 10,439
district.
(B) The state superintendent shall establish an 10,441
application process and deadline for accepting applications from 10,442
students residing in the district to participate in the 10,443
scholarship program. In the initial year of the program students 10,444
may only use a scholarship to attend school in grades 10,445
kindergarten through third.
The state superintendent shall award as many scholarships 10,447
and tutorial assistance grants as can be funded given the amount 10,448
appropriated for the program. In no case, however, shall more 10,449
than fifty per cent of all scholarships awarded be used by 10,450
221
students who were enrolled in a nonpublic school during the 10,451
school year of application for a scholarship. 10,452
(C)(1) The pilot project program shall continue in effect 10,456
each year that the general assembly has appropriated sufficient 10,457
money to fund scholarships and tutorial assistance grants. In 10,458
each year the program continues, no new students may receive 10,459
scholarships unless they are enrolled in grade kindergarten, one, 10,460
two, or three. However, any student who has received a 10,462
scholarship the preceding year may continue to receive one until 10,463
the student has completed grade eight.
(2) If the general assembly discontinues the scholarship 10,465
program, all students who are attending an alternative school 10,466
under the pilot project shall be entitled to continued admittance 10,468
to that specific school through all grades up to the eighth grade 10,469
that are provided in such school, under the same conditions as 10,471
when they were participating in the pilot project. The state 10,472
superintendent shall continue to make scholarship payments in
accordance with division (A) or (B) of section 3313.979 of the 10,474
Revised Code for students who remain enrolled in an alternative 10,476
school under this provision in any year that funds have been 10,477
appropriated for this purpose.
If funds are not appropriated, the tuition charged to the 10,479
parents of a student who remains enrolled in an alternative 10,481
school under this provision shall not be increased beyond the 10,482
amount equal to the amount of the scholarship plus any additional 10,483
amount charged that student's parent in the most recent year of 10,484
attendance as a participant in the pilot project, except that 10,485
tuition for all the students enrolled in such school may be 10,486
increased by the same percentage. 10,487
(D) Notwithstanding sections 124.39, 3307.35 3307.54, and 10,490
3319.17 of the Revised Code, if the pilot project school district 10,491
experiences a decrease in enrollment due to participation in a 10,492
state-sponsored scholarship program pursuant to sections 3313.974 10,493
to 3313.979 of the Revised Code, the district board of education 10,494
222
may enter into an agreement with any teacher it employs to 10,495
provide to that teacher severance pay or early retirement 10,496
incentives, or both, if the teacher agrees to terminate the 10,497
employment contract with the district board, provided any 10,498
collective bargaining agreement in force pursuant to Chapter 10,499
4117. of the Revised Code does not prohibit such an agreement for 10,501
termination of a teacher's employment contract.
Sec. 3317.011. On or before the third Wednesday of each 10,510
month, the department of education shall certify to the director 10,511
of budget and management for payment, for each county: 10,512
(A)(1) That portion of the allocation of money under 10,514
sections 3317.022 to 3317.0211, 3317.11, 3317.16, 3317.17, and 10,515
3317.19 of the Revised Code that is required to be paid in that 10,516
month to each school district located wholly within the county 10,517
subsequent to the deductions described in division (A)(2) of this 10,518
section; and 10,519
(2) The amounts deducted from such allocation under 10,521
sections 3307.56 3307.31 and 3309.51 of the Revised Code for 10,522
payment directly to the school employees and state teachers 10,524
retirement systems under such sections. 10,525
(B) If the district is located in more than one county, an 10,527
apportionment of the amounts that would otherwise be certified 10,528
under division (A) of this section. The amounts apportioned to 10,529
the county shall equal the amounts certified under division (A) 10,530
of this section times the percentage of the district's resident 10,531
pupils who reside both in the district and in the county. 10,532
Sec. 3317.13. (A) As used in this section and section 10,541
3317.14 of the Revised Code: 10,542
(1) "Years of service" includes the following: 10,544
(a) All years of teaching service in the same school 10,546
district or educational service center, regardless of training 10,547
level, with each year consisting of at least one hundred twenty 10,549
days under a teacher's contract;
(b) All years of teaching service in a chartered, 10,551
223
nonpublic school located in Ohio as a teacher licensed pursuant 10,552
to section 3319.22 of the Revised Code or in another public 10,553
school, regardless of training level, with each year consisting 10,554
of at least one hundred twenty days under a teacher's contract; 10,555
(c) All years of teaching service in a chartered school or 10,557
institution or a school or institution that subsequently became 10,558
chartered or a chartered special education program or a special 10,559
education program that subsequently became chartered operated by 10,560
the state or by a subdivision or other local governmental unit of 10,561
this state as a teacher licensed pursuant to section 3319.22 of 10,562
the Revised Code, regardless of training level, with each year 10,563
consisting of at least one hundred twenty days; and 10,564
(d) All years of active military service in the armed 10,566
forces of the United States, as defined in section 3307.02 10,567
3307.75 of the Revised Code, to a maximum of five years. For 10,569
purposes of this calculation, a partial year of active military 10,570
service of eight continuous months or more in the armed forces 10,571
shall be counted as a full year. 10,572
(2) "Teacher" means all teachers employed by the board of 10,574
education of any school district, including any cooperative 10,576
education or joint vocational school district and all teachers 10,577
employed by any educational service center governing board.
(B) No teacher shall be paid a salary less than that 10,579
provided in the schedule set forth in division (C) of this 10,580
section. In calculating the minimum salary any teacher shall be 10,581
paid pursuant to this section, years of service shall include the 10,582
sum of all years of the teacher's teaching service included in 10,583
divisions (A)(1)(a), (b), (c), and (d) of this section; except 10,584
that any school district or educational service center employing 10,585
a teacher new to the district or educational service center shall 10,586
grant such teacher a total of not more than ten years of service 10,587
pursuant to divisions (A)(1)(b), (c), and (d) of this section. 10,588
Upon written complaint to the superintendent of public 10,590
instruction that the board of education of a district or the 10,591
224
governing board of an educational service center governing board 10,592
has failed or refused to annually adopt a salary schedule or to 10,593
pay salaries in accordance with the salary schedule set forth in 10,594
division (C) of this section, the superintendent of public 10,595
instruction shall cause to be made an immediate investigation of 10,596
such complaint. If the superintendent finds that the conditions 10,597
complained of exist, the superintendent shall order the board to 10,598
correct such conditions within ten days from the date of the 10,600
finding. No moneys shall be distributed to the district or 10,601
educational service center under this chapter until the 10,602
superintendent has satisfactory evidence of the board of 10,603
education's full compliance with such order. 10,604
Each teacher shall be fully credited with placement in the 10,606
appropriate academic training level column in the district's or 10,608
educational service center's salary schedule with years of
service properly credited pursuant to this section or section 10,610
3317.14 of the Revised Code. No rule shall be adopted or 10,611
exercised by any board of education or educational service center 10,612
governing board which restricts the placement or the crediting of 10,613
annual salary increments for any teacher according to the
appropriate academic training level column. 10,614
(C) Minimum salaries exclusive of retirement and sick 10,616
leave for teachers shall be as follows: 10,617
Teachers Teachers with Teachers 10,620
Years with Less Teachers with Five Years of with 10,622
of than a Bachelor's Training, but a Master's 10,624
Service Bachelor's Degree no Master's Degree or 10,626
Degree Degree Higher 10,627
Per Dollar Per Dollar Per Dollar Per Dollar 10,631
Cent* Amount Cent* Amount Cent* Amount Cent* Amount 10,633
0 86.5 $14,705 100.0 $17,000 103.8 $17,646 109.5 $18,615 10,635
1 90.0 15,300 103.8 17,646 108.1 18,377 114.3 19,431 10,637
2 93.5 15,895 107.6 18,292 112.4 19,108 119.1 20,247 10,639
3 97.0 16,490 111.4 18,938 116.7 19,839 123.9 21,063 10,641
225
4 100.5 17,085 115.2 19,584 121.0 20,570 128.7 21,879 10,643
5 104.0 17,680 119.0 20,230 125.3 21,301 133.5 22,695 10,645
6 104.0 17,680 122.8 20,876 129.6 22,032 138.3 23,511 10,647
7 104.0 17,680 126.6 21,522 133.9 22,763 143.1 24,327 10,649
8 104.0 17,680 130.4 22,168 138.2 23,494 147.9 25,143 10,651
9 104.0 17,680 134.2 22,814 142.5 24,225 152.7 25,959 10,653
10 104.0 17,680 138.0 23,460 146.8 24,956 157.5 26,775 10,655
11 104.0 17,680 141.8 24,106 151.1 25,687 162.3 27,591 10,657
* Percentages represent the percentage which each salary is 10,660
of the base amount. 10,661
For purposes of determining the minimum salary at any level 10,663
of training and service, the base of one hundred per cent shall 10,664
be the base amount. The percentages used in this section show 10,665
the relationships between the minimum salaries required by this 10,666
section and the base amount and shall not be construed as 10,667
requiring any school district or educational service center to 10,668
adopt a schedule containing salaries in excess of the amounts set 10,670
forth in this section for corresponding levels of training and 10,671
experience.
As used in this division: 10,673
(1) "Base amount" means seventeen thousand dollars. 10,675
(2) "Five years of training" means at least one hundred 10,677
fifty semester hours, or the equivalent, and a bachelor's degree 10,678
from a recognized college or university. 10,679
(D) For purposes of this section, all credited training 10,681
shall be from a recognized college or university. 10,682
Sec. 3319.08. The board of education of each city, 10,691
exempted village, local, and joint vocational school district and 10,693
the governing board of each educational service center shall
enter into written contracts for the employment and reemployment 10,695
of all teachers. The board of each such school district or 10,696
service center that authorizes compensation in addition to the 10,697
base salary stated in the teachers' salary schedule for the
performance of duties by a teacher that are in addition to the 10,698
226
teacher's regular teaching duties, shall enter into a 10,699
supplemental written contract with each teacher who is to perform 10,700
additional duties. Such supplemental written contracts shall be 10,701
limited contracts. Such written contracts and supplemental 10,702
written contracts shall set forth the teacher's duties and shall 10,703
specify the salaries and compensation to be paid for regular 10,704
teaching duties and additional teaching duties, respectively, 10,705
either or both of which may be increased but not diminished 10,706
during the term for which the contract is made, except as 10,707
provided in section 3319.12 of the Revised Code. 10,708
If a board adopts a motion or resolution to employ a 10,711
teacher under a limited or continuing contract and the teacher 10,712
accepts such employment, the failure of such parties to execute a 10,713
written contract shall not void such employment contract. 10,714
Teachers must be paid for all time lost when the schools in 10,716
which they are employed are closed due to an epidemic or other 10,717
public calamity, and for time lost due to illness or otherwise 10,718
for not less than five days annually as authorized by regulations 10,719
which each board shall adopt. 10,720
Contracts for the employment of teachers shall be of two 10,722
types, limited contracts and continuing contracts. 10,723
(A) A limited contract is: 10,725
(1) For a superintendent, a contract for such term as 10,727
authorized by section 3319.01 of the Revised Code; 10,728
(2) For an assistant superintendent, principal, assistant 10,730
principal, or other administrator, a contract for such term as 10,731
authorized by section 3319.02 of the Revised Code; 10,732
(3) For all other teachers, a contract for a term not to 10,734
exceed five years. 10,735
(B) A continuing contract is a contract that remains in 10,737
effect until the teacher resigns, elects to retire, or is retired 10,738
pursuant to FORMER section 3307.37 of the Revised Code, or until 10,739
it is terminated or suspended and shall be granted only to the 10,740
following: 10,741
227
(1) Any teacher holding a professional, permanent, or life 10,743
teacher's certificate; 10,744
(2) Any teacher holding a professional educator license 10,746
who has completed the applicable one of the following: 10,747
(a) If the teacher did not hold a masters degree at the 10,749
time of initially receiving a teacher's certificate under former 10,750
law or an educator license, thirty semester hours of coursework 10,751
in the area of licensure or in an area related to the teaching 10,752
field since the initial issuance of such certificate or license, 10,753
as specified in rules which the state board of education shall 10,754
adopt;
(b) If the teacher held a masters degree at the time of 10,756
initially receiving a teacher's certificate under former law or 10,757
an educator license, six semester hours of graduate coursework in 10,758
the area of licensure or in an area related to the teaching field 10,759
since the initial issuance of such certificate or license, as 10,760
specified in rules which the state board of education shall
adopt. 10,761
This section applies only to contracts entered into after 10,763
August 18, 1969.
Sec. 5101.181. (A) As used in this section and section 10,772
5101.182 of the Revised Code, "public assistance" includes, in 10,773
addition to Ohio works first; prevention, retention, and 10,774
contingency; medicaid; and disability assistance, general 10,776
assistance provided prior to July 17, 1995, under former Chapter 10,778
5113. of the Revised Code. 10,779
(B) As part of the procedure for the determination of 10,782
overpayment to a recipient of public assistance under Chapter 10,783
5107., 5108., 5111., or 5115. of the Revised Code, the director 10,784
of human services shall furnish quarterly the name and social 10,785
security number of each individual who receives public assistance 10,786
to the director of administrative services, the administrator of 10,787
the bureau of workers' compensation, and each of the state's 10,788
retirement boards. Within fourteen days after receiving the name 10,789
228
and social security number of an individual who receives public 10,790
assistance, the director of administrative services, 10,791
administrator, or board shall inform the auditor of state as to 10,792
whether such individual is receiving wages or benefits, the 10,793
amount of any wages or benefits being received, the social 10,794
security number, and the address of the individual. The director 10,795
of administrative services, administrator, boards, and any agent 10,796
or employee of those officials and boards shall comply with the 10,797
rules of the department of human services restricting the 10,798
disclosure of information regarding recipients of public
assistance. Any person who violates this provision shall 10,799
thereafter be disqualified from acting as an agent or employee or 10,800
in any other capacity under appointment or employment of any 10,801
state board, commission, or agency. 10,802
(C) The auditor of state may enter into a reciprocal 10,804
agreement with the director of human services or comparable 10,805
officer of any other state for the exchange of names, current or 10,806
most recent addresses, or social security numbers of persons 10,807
receiving public assistance under Title IV-A or under Title XIX 10,810
of the "Social Security Act," 49 Stat. 620 (1935), 42 U.S.C. 301, 10,811
as amended.
(D)(1) The auditor of state shall retain, for not less 10,813
than two years, at least one copy of all information received 10,815
under this section and sections 145.27, 742.41, 3307.21 3307.20, 10,816
3309.22, 4123.27, 5101.182, and 5505.04 of the Revised Code. The 10,818
auditor shall review the information to determine whether
overpayments were made to recipients of public assistance under 10,820
Chapters 5107., 5108., 5111., and 5115. of the Revised Code. The 10,821
auditor of state shall initiate action leading to prosecution, 10,822
where warranted, of recipients who received overpayments by 10,823
forwarding the name of each recipient who received overpayment, 10,824
together with other pertinent information, to the director of 10,825
human services and the attorney general, to the district director 10,826
of human services of the district through which public assistance 10,827
229
was received, and to the county director of human services and 10,828
county prosecutor of the county through which public assistance 10,829
was received.
(2) The auditor of state and the attorney general or their 10,831
designees may examine any records, whether in computer or printed 10,832
format, in the possession of the director of human services or 10,833
any county director of human services. They shall provide 10,834
safeguards which restrict access to such records to purposes 10,835
directly connected with an audit or investigation, prosecution, 10,836
or criminal or civil proceeding conducted in connection with the 10,837
administration of the programs and shall comply with the rules of 10,838
the department of human services restricting the disclosure of 10,839
information regarding recipients of public assistance. Any 10,840
person who violates this provision shall thereafter be 10,841
disqualified from acting as an agent or employee or in any other 10,842
capacity under appointment or employment of any state board, 10,843
commission, or agency. 10,844
(3) Costs incurred by the auditor of state in carrying out 10,846
the auditor of state's duties under this division shall be borne 10,848
by the auditor of state. 10,849
THIS IS AN INTERIM SECTION EFFECTIVE UNTIL JULY 1, 2000. 10,851
Sec. 5505.161. On receipt of notice from the public 10,860
employees retirement system, Ohio police and fire pension fund, 10,861
state teachers retirement system, or school employees retirement 10,862
system of the re-employment of a retirant, the state highway 10,863
patrol retirement system shall not pay, or if paid shall recover, 10,864
any amount to be forfeited by the retirant in accordance with 10,865
section 145.38, 742.26, 3307.381 3307.35, or 3309.341 of the 10,866
Revised Code.
Sec. 5505.177. THE STATE HIGHWAY PATROL RETIREMENT BOARD 10,868
MAY ESTABLISH AND MAINTAIN A QUALIFIED GOVERNMENTAL EXCESS 10,869
BENEFIT ARRANGEMENT THAT MEETS THE REQUIREMENTS OF DIVISION (m) 10,870
OF SECTION 415 OF THE "INTERNAL REVENUE CODE OF 1986," 100 STAT. 10,874
2085, 26 U.S.C.A. 415, AS AMENDED, AND ANY REGULATIONS ADOPTED 10,876
230
THEREUNDER. IF ESTABLISHED, THE ARRANGEMENT SHALL BE A SEPARATE
PORTION OF THE STATE HIGHWAY PATROL RETIREMENT SYSTEM AND BE
MAINTAINED SOLELY FOR THE PURPOSE OF PROVIDING TO RETIRED MEMBERS 10,877
THAT PART OF A BENEFIT OTHERWISE PAYABLE UNDER THIS CHAPTER THAT 10,878
EXCEEDS THE LIMITS ESTABLISHED BY SECTION 415 OF THE "INTERNAL 10,879
REVENUE CODE OF 1986," AS AMENDED. 10,880
MEMBERS PARTICIPATING IN AN ARRANGEMENT ESTABLISHED UNDER 10,882
THIS SECTION SHALL NOT BE PERMITTED TO ELECT TO DEFER 10,883
COMPENSATION TO THE ARRANGEMENT. CONTRIBUTIONS TO AND BENEFITS 10,884
PAID UNDER AN ARRANGEMENT SHALL NOT BE PAYABLE FROM A TRUST THAT 10,885
IS PART OF THE SYSTEM UNLESS THE TRUST IS MAINTAINED SOLELY FOR 10,886
THE PURPOSE OF PROVIDING SUCH BENEFITS. 10,887
THE BOARD SHALL ADOPT RULES TO ADMINISTER AN ARRANGEMENT 10,889
ESTABLISHED UNDER THIS SECTION. 10,890
Sec. 5505.202. (A) As used in this section: 10,899
(1) "Full-time service" means full-time service as defined 10,901
by rule which shall be adopted by the state highway patrol 10,902
retirement board. 10,903
(2) "Qualified contributions" means contributions to the 10,905
public employees retirement system, state teachers retirement 10,906
system, or school employees retirement system attributable to 10,907
full-time service or purchase of credit for service in the armed 10,908
forces of the United States. 10,909
(B)(1) For purposes of computing the pension payable under 10,912
section 5505.17 or 5505.18 of the Revised Code, a member of the 10,913
state highway patrol retirement system who is a former member of 10,914
the public employees retirement system, school employees 10,915
retirement system, or state teachers retirement system and has 10,917
received a return of contributions from the former retirement 10,919
system shall be given full credit for service credit earned for 10,920
full-time service as a member of the former retirement system or 10,921
purchased for service in the armed forces of the United States 10,924
if, for each year of service credit, the state highway patrol 10,925
retirement system receives the sum of the following: 10,926
231
(a) An amount, which shall be paid by the member to the 10,930
member's credit in the employees savings fund, equal to the 10,932
amount received by the member from the former retirement system 10,934
for that year that is attributable to contributions made for 10,936
full-time service and payments for credit purchased for service 10,937
in the armed forces of the United States, plus interest on that 10,939
amount from the date payment was made to the member by the former 10,941
retirement system to the date the member makes the payment to the 10,943
state highway patrol retirement system;
(b) Interest, which shall be transferred by the former 10,946
retirement system, on the amount received by the member that is 10,947
attributable to the year of service from the last day of the year 10,948
for which the service credit was earned or in which the military
service credit was purchased or obtained to the date the amount 10,949
was paid to the member; 10,950
(c) An amount, which shall be transferred by the former 10,952
retirement system, equal to the lesser of the employer's 10,953
qualified contributions to the former retirement system for the 10,954
year of service or the amount that would have been contributed by 10,956
the employer for the year of service had the member been a member 10,957
of the state highway patrol retirement system, with interest on 10,958
that amount from the last day of the year for which the service 10,960
credit was earned or in which military service credit was 10,961
purchased or obtained to the date the transfer is made. 10,962
On receipt of payment from the member, the state highway 10,965
patrol retirement system shall notify the former retirement 10,966
system, which, on receipt of the notice, shall make the transfer 10,967
required by this division. Interest shall be determined in 10,968
accordance with division (E) of this section. 10,969
(2) For purposes of computing the pension payable under 10,971
section 5505.17 or 5505.18 of the Revised Code, a member of the 10,974
state highway patrol retirement system who has contributions on 10,976
deposit with the public employees retirement system, school 10,977
employees retirement system, or state teachers retirement system 10,978
232
shall be given full credit for service credit earned for 10,979
full-time service as a member of that retirement system or 10,980
purchased for service in the armed forces of the United States 10,983
if, for each year of service, the public employees retirement 10,985
system, school employees retirement system, or state teachers 10,986
retirement system transfers to the state highway patrol 10,987
retirement system the sum of the following: 10,988
(a) An amount equal to the member's qualified 10,991
contributions;
(b) An amount equal to the lesser of the employer's 10,993
qualified contributions to the public employees retirement 10,994
system, school employees retirement system, or state teachers 10,995
retirement system or the amount that would have been contributed 10,997
by the employer for the full-time service had the member been a 10,998
member of the state highway patrol retirement system; 10,999
(c) Interest, determined in accordance with division (E) 11,002
of this section, on the amounts specified in divisions (B)(2)(a) 11,003
and (b) of this section from the last day of the year for which 11,006
the service credit was earned or in which military service credit 11,007
was purchased or obtained to the date the transfer is made. 11,008
On receipt of a request from the member, the appropriate 11,011
retirement system shall make the transfer.
(3) For purposes of computing the pension payable under 11,013
section 5505.17 or 5505.18 of the revised Code, a member of the 11,016
state highway patrol retirement system who has contributions on 11,017
deposit with the Cincinnati retirement system shall be given full 11,019
credit for service credit earned for full-time service as a 11,020
member of that retirement system or purchased from the retirement 11,021
system for service in the armed forces of the United States if, 11,023
for each year of service credit, the state highway patrol 11,024
retirement system receives the sum of the following: 11,025
(a) An amount, which shall be paid by the member to the 11,028
member's credit in the employees savings fund, equal to the 11,029
amount withdrawn from the Cincinnati retirement system that is 11,031
233
attributable to that year of service, with interest on that
amount determined in accordance with division (I) of this section 11,033
from the date of withdrawal to the date of payment; 11,034
(b) Interest, which shall be paid either by the member or 11,037
the Cincinnati retirement system, on the amount withdrawn from 11,038
the Cincinnati retirement system that is attributable to the year 11,040
of service from the last day of the year for which the service
credit was earned or in which the military service credit was 11,041
purchased or obtained to the date the amount was withdrawn; 11,043
(c) An amount, which shall be paid either by the member or 11,046
the Cincinnati retirement system, equal to the lesser of the 11,048
amount contributed by the employer to the Cincinnati retirement 11,049
system for the year of service or the amount that would have been 11,051
contributed by the employer for the year of service had the
member been a member of the state highway patrol retirement 11,052
system, with interest on that amount from the last day of the 11,055
year for which the service credit was earned or in which military 11,056
service was purchased or obtained to the date the payment is 11,057
made.
(C) If a member who is not a current contributor and has 11,059
not received a refund of accumulated contributions elects to 11,062
receive credit under section 145.295, 3307.412 3307.761, or 11,063
3309.351 of the Revised Code for service for which the member 11,065
contributed to the state highway patrol retirement system and 11,067
credit purchased for service in the armed forces of the United 11,068
States, the state highway patrol retirement system shall transfer 11,069
to the appropriate retirement system the amount specified in 11,071
division (A) of section 145.295, division (A) of section 3307.412 11,072
3307.761, or division (A) of section 3309.351 of the Revised 11,074
Code. 11,075
(D)(1) A member is ineligible to purchase or otherwise 11,077
receive credit under this section for service that is used in the 11,078
calculation of any retirement benefit currently being paid or 11,079
that is payable in the future to the member, or service rendered 11,080
234
concurrently with any other period for which service credit has 11,081
already been granted. 11,082
(2) Except as provided under division (D)(3) of this 11,084
section, no service credit purchased under this section or 11,085
received as a result of a transfer requested under this section 11,086
shall be used to determine any member's eligibility for 11,087
retirement under sections 5505.16 and 5505.17 of the Revised 11,088
Code.
(3) Service credit obtained under this section by a member 11,090
for credit purchased for service in the armed forces of the 11,091
United States or for service as a state highway patrol cadet 11,093
attending training school pursuant to section 5503.05 of the 11,094
Revised Code shall be used to determine the member's eligibility 11,096
for retirement under sections 5505.16 and 5505.17 of the Revised 11,097
Code.
(4) Subject to rules of the state highway patrol 11,099
retirement system, a member may choose to purchase only part of 11,100
the credit the member is eligible to purchase under division 11,101
(B)(1) or (3) of this section. 11,103
(E) At the request of the state highway patrol retirement 11,105
system, the public employees retirement system, school employees 11,106
retirement system, state teachers retirement system, or 11,107
Cincinnati retirement system shall certify to the state highway 11,109
patrol retirement system a copy of the records of service, 11,110
salary, and contributions of a member who seeks service credit 11,111
under this section.
Interest charged under this section shall be calculated 11,114
separately for each year of service credit at the lesser of the 11,115
actuarial assumption rate for that year of the state highway 11,116
patrol retirement system or of the retirement system in which the 11,117
credit was earned. The interest shall be compounded annually. 11,118
The state highway patrol retirement system board may adopt 11,120
rules establishing procedures for the purchase of service credit 11,122
or the transfer of contributions under this section. 11,123
235
Section 2. That existing sections 145.28, 145.293, 11,125
145.301, 145.311, 145.312, 145.35, 145.37, 145.38, 145.45, 11,126
171.04, 742.26, 742.379, 2329.66, 3305.01, 3305.06, 3307.01, 11,127
3307.013, 3307.02, 3307.021, 3307.022, 3307.05, 3307.07, 3307.08, 11,128
3307.09, 3307.10, 3307.11, 3307.111, 3307.14, 3307.15, 3307.19, 11,130
3307.20, 3307.201, 3307.21, 3307.22, 3307.26, 3307.27, 3307.28, 11,131
3307.281, 3307.282, 3307.283, 3307.29, 3307.30, 3307.31, 11,133
3307.311, 3307.32, 3307.33, 3307.35, 3307.36, 3307.371, 3307.38, 11,134
3307.381, 3307.382, 3307.383, 3307.384, 3307.39, 3307.40, 11,135
3307.401, 3307.402, 3307.403, 3307.404, 3307.405, 3307.406, 11,136
3307.407, 3307.408, 3307.409, 3307.4010, 3307.4011, 3307.4012, 11,137
3307.4013, 3307.41, 3307.411, 3307.412, 3307.42, 3307.421, 11,138
3307.43, 3307.431, 3307.44, 3307.46, 3307.47, 3307.48, 3307.49, 11,139
3307.50, 3307.51, 3307.511, 3307.512, 3307.515, 3307.53, 3307.56, 11,140
3307.58, 3307.59, 3307.60, 3307.61, 3307.62, 3307.63, 3307.64, 11,141
3307.65, 3307.651, 3307.66, 3307.68, 3307.69, 3307.70, 3307.71, 11,142
3307.711, 3307.712, 3307.72, 3307.73, 3307.74, 3307.741, 3307.75, 11,143
3307.751, 3307.78, 3307.80, 3309.021, 3309.261, 3309.262, 11,144
3309.301, 3309.31, 3309.341, 3309.35, 3309.39, 3309.45, 3313.975, 11,145
3317.011, 3317.13, 3319.08, 5101.181, 5505.161, and 5505.202 and 11,146
sections 3307.012, 3307.34, 3307.37, 3307.513, and 3307.514 of 11,147
the Revised Code are hereby repealed.
Section 3. That sections 3307.21 and 5101.181 of the 11,149
Revised Code, as amended by H.B. 471 of the 123rd General 11,150
Assembly, be amended and that section 3307.21 (3307.20) of the 11,151
Revised Code, as amended by H.B. 471 of the 123rd General 11,152
Assembly, be amended for the purpose of adopting a new section 11,153
number as indicated in parentheses, to read as follows: 11,154
Sec. 3307.21 3307.20. (A) The treasurer of state shall 11,163
furnish annually to the state teachers retirement board a sworn 11,165
statement of the amount of the funds in the treasurer's custody 11,166
belonging to the state teachers retirement system. 11,167
(B)(1) As used in this division, "personal SECTION: 11,169
(1) "PERSONAL history record" means information maintained 11,172
236
by the STATE TEACHERS RETIREMENT board on a member, former 11,173
member, contributor, former contributor, retirant, or beneficiary 11,174
that includes the address, telephone number, social security 11,175
number, record of contributions, correspondence with the STATE 11,176
TEACHERS RETIREMENT system, or other information the board 11,178
determines to be confidential.
(2) "RETIRANT" HAS THE SAME MEANING AS IN SECTION 3307.50 11,180
OF THE REVISED CODE.
(B) The records of the board shall be open to public 11,182
inspection, except for the following, which shall be excluded, 11,183
except with the written authorization of the individual 11,184
concerned: 11,185
(a)(1) The individual's personal records provided for in 11,187
section 3307.29 3307.23 of the Revised Code; 11,188
(b)(2) The individual's personal history record; 11,190
(c)(3) Any information identifying, by name and address, 11,192
the amount of a monthly allowance or benefit paid to the 11,193
individual.
(C) All medical reports and recommendations under sections 11,195
3307.42 3307.62, 3307.44 3307.64, and 3307.49 3307.66 of the 11,197
Revised Code are privileged, except that copies of such medical 11,198
reports or recommendations shall be made available to the 11,199
personal physician, attorney, or authorized agent of the 11,200
individual concerned upon written release received from the 11,201
individual or the individual's agent, or, when necessary for the 11,202
proper administration of the fund, to the board assigned 11,203
physician.
(D) Any person who is a member or contributor of the 11,205
system shall be furnished, on written request, with a statement 11,207
of the amount to the credit of the person's account. The board 11,208
need not answer more than one request of a person in any one 11,209
year.
(E) Notwithstanding the exceptions to public inspection in 11,211
division (B)(2) of this section, the board may furnish the 11,212
237
following information: 11,213
(1) If a member, former member, retirant, contributor, or 11,215
former contributor is subject to an order issued under section 11,216
2907.15 of the Revised Code or is convicted of or pleads guilty 11,217
to a violation of section 2921.41 of the Revised Code, on written 11,218
request of a prosecutor as defined in section 2935.01 of the 11,219
Revised Code, the board shall furnish to the prosecutor the 11,220
information requested from the individual's personal history 11,221
record. 11,222
(2) Pursuant to a court or administrative order issued 11,224
under section 3111.23 or 3113.21 of the Revised Code, the board 11,225
shall furnish to a court or child support enforcement agency the 11,226
information required under that section. 11,227
(3) At the written request of any person, the board shall 11,229
provide to the person a list of the names and addresses of 11,230
members, former members, retirants, contributors, former 11,231
contributors, or beneficiaries. The costs of compiling, copying, 11,232
and mailing the list shall be paid by such person. 11,233
(4) Within fourteen days after receiving from the director 11,235
of job and family services a list of the names and social 11,236
security numbers of recipients of public assistance pursuant to 11,237
section 5101.181 of the Revised Code, the board shall inform the 11,238
auditor of state of the name, current or most recent employer 11,239
address, and social security number of each member whose name and 11,240
social security number are the same as that of a person whose 11,241
name or social security number was submitted by the director. 11,242
The board and its employees shall, except for purposes of 11,243
furnishing the auditor of state with information required by this 11,244
section, preserve the confidentiality of recipients of public 11,245
assistance in compliance with division (A) of section 5101.181 of 11,246
the Revised Code.
(F) A statement that contains information obtained from 11,248
the system's records that is signed by an officer of the 11,249
retirement system and to which the system's official seal is 11,250
238
affixed, or copies of the system's records to which the signature 11,251
and seal are attached, shall be received as true copies of the 11,252
system's records in any court or before any officer of this 11,253
state. 11,254
Sec. 5101.181. (A) As used in this section and section 11,263
5101.182 of the Revised Code, "public assistance" includes, in 11,264
addition to Ohio works first; prevention, retention, and 11,265
contingency; medicaid; and disability assistance, general 11,267
assistance provided prior to July 17, 1995, under former Chapter 11,269
5113. of the Revised Code. 11,270
(B) As part of the procedure for the determination of 11,273
overpayment to a recipient of public assistance under Chapter 11,274
5107., 5108., 5111., or 5115. of the Revised Code, the director 11,275
of job and family services shall furnish quarterly the name and 11,276
social security number of each individual who receives public
assistance to the director of administrative services, the 11,277
administrator of the bureau of workers' compensation, and each of 11,278
the state's retirement boards. Within fourteen days after 11,279
receiving the name and social security number of an individual 11,280
who receives public assistance, the director of administrative 11,281
services, administrator, or board shall inform the auditor of 11,282
state as to whether such individual is receiving wages or 11,283
benefits, the amount of any wages or benefits being received, the 11,284
social security number, and the address of the individual. The 11,285
director of administrative services, administrator, boards, and 11,286
any agent or employee of those officials and boards shall comply 11,287
with the rules of the director of job and family services 11,289
restricting the disclosure of information regarding recipients of 11,290
public assistance. Any person who violates this provision shall 11,291
thereafter be disqualified from acting as an agent or employee or 11,292
in any other capacity under appointment or employment of any 11,293
state board, commission, or agency. 11,294
(C) The auditor of state may enter into a reciprocal 11,296
agreement with the director of job and family services or 11,297
239
comparable officer of any other state for the exchange of names, 11,299
current or most recent addresses, or social security numbers of 11,300
persons receiving public assistance under Title IV-A or under 11,302
Title XIX of the "Social Security Act," 49 Stat. 620 (1935), 42 11,303
U.S.C. 301, as amended. 11,304
(D)(1) The auditor of state shall retain, for not less 11,306
than two years, at least one copy of all information received 11,308
under this section and sections 145.27, 742.41, 3307.21 3307.20, 11,309
3309.22, 4123.27, 5101.182, and 5505.04 of the Revised Code. The 11,311
auditor shall review the information to determine whether
overpayments were made to recipients of public assistance under 11,313
Chapters 5107., 5108., 5111., and 5115. of the Revised Code. The 11,314
auditor of state shall initiate action leading to prosecution, 11,315
where warranted, of recipients who received overpayments by 11,316
forwarding the name of each recipient who received overpayment, 11,317
together with other pertinent information, to the director of job 11,318
and family services and the attorney general, to the district 11,320
director of job and family services of the district through which 11,322
public assistance was received, and to the county director of job 11,323
and family services and county prosecutor of the county through 11,325
which public assistance was received.
(2) The auditor of state and the attorney general or their 11,327
designees may examine any records, whether in computer or printed 11,328
format, in the possession of the director of job and family 11,330
services or any county director of job and family services. They 11,331
shall provide safeguards which restrict access to such records to 11,333
purposes directly connected with an audit or investigation, 11,334
prosecution, or criminal or civil proceeding conducted in 11,335
connection with the administration of the programs and shall 11,336
comply with the rules of the director of job and family services 11,338
restricting the disclosure of information regarding recipients of 11,339
public assistance. Any person who violates this provision shall 11,340
thereafter be disqualified from acting as an agent or employee or 11,341
in any other capacity under appointment or employment of any 11,342
240
state board, commission, or agency. 11,343
(3) Costs incurred by the auditor of state in carrying out 11,345
the auditor of state's duties under this division shall be borne 11,347
by the auditor of state. 11,348
Section 4. That all existing versions of sections 3307.21 11,350
and 5101.181 of the Revised Code are hereby repealed. 11,351
Section 5. Sections 3 and 4 of this act shall take effect 11,353
on July 1, 2000.
Section 6. The State Teachers Retirement Board shall 11,355
recalculate under section 3307.58, 3307.59, or 3307.631 of the 11,356
Revised Code, as amended by this act, a benefit that is payable 11,357
under those sections or section 3307.60 of the Revised Code and 11,358
became effective on or after July 1, 1999, but before the 11,359
effective date of this act. If the recalculated benefit is 11,360
greater than the recipient's benefit prior to the recalculation, 11,361
the board shall do both of the following: 11,362
(A) Pay the recalculated benefit; 11,364
(B) Make a one-time payment to the recipient equal to the 11,366
difference between the benefits paid to the recipient between 11,367
July 1, 1999, and the date of the payment and the increased 11,368
benefits that would have been paid to the recipient had the 11,369
amendments to sections 3307.58, 3307.59, and 3307.631 of the 11,370
Revised Code gone into effect on July 1, 1999. 11,371
Section 7. As used in this section, "eligible recipient" 11,373
has the same meaning as in section 3307.6913 of the Revised Code. 11,374
The State Teachers Retirement Board shall make a one-time 11,376
payment to each eligible recipient whose benefit is increased 11,377
under section 3307.6913 or 3307.6914 of the Revised Code, as 11,378
enacted by this act. The payment shall equal the difference 11,379
between the benefits paid to the recipient between July 1, 1999, 11,380
and the date of the payment and the increased benefits that would 11,381
have been paid to the recipient had those sections gone into 11,382
effect on July 1, 1999.
Section 8. Section 3307.21 of the Revised Code is 11,384
241
presented in Section 1 of this act as a composite of the section 11,386
as amended by both Am. Sub. H.B. 627 and Am. Sub. H.B. 668 of the 11,387
121st General Assembly, with the new language of neither of the 11,389
acts shown in capital letters. This is in recognition of the 11,390
principle stated in division (B) of section 1.52 of the Revised 11,391
Code that such amendments are to be harmonized where not 11,392
substantively irreconcilable and constitutes a legislative 11,393
finding that such is the resulting version in effect prior to the 11,394
effective date of this act.