As Passed by the Senate 1
123rd General Assembly 4
Regular Session Sub. S. B. No. 190 5
1999-2000 6
SENATORS BLESSING-CARNES-OELSLAGER-BRADY-HAGAN-SHOEMAKER- 8
KEARNS-MALLORY-McLIN-WHITE-HERINGTON-DiDONATO-SPADA- 9
LATELL-LATTA-PRENTISS 10
_________________________________________________________________ 12
A B I L L
To amend sections 145.28, 145.293, 145.301, 145.311, 14
145.312, 145.35, 145.37, 145.38, 145.45, 171.04, 15
742.26, 742.379, 2329.66, 3305.01, 3305.06, 16
3307.01, 3307.013, 3307.02, 3307.021, 3307.022,
3307.05, 3307.07, 3307.08, 3307.09, 3307.10, 17
3307.11, 3307.111, 3307.14, 3307.15, 3307.19, 18
3307.20, 3307.201, 3307.21, 3307.22, 3307.26, 19
3307.28, 3307.281, 3307.282, 3307.283, 3307.29,
3307.30, 3307.31, 3307.311, 3307.32, 3307.33, 21
3307.35, 3307.36, 3307.371, 3307.38, 3307.381, 22
3307.382, 3307.383, 3307.384, 3307.39, 3307.40,
3307.401, 3307.402, 3307.403, 3307.404, 3307.405, 23
3307.406, 3307.407, 3307.408, 3307.409, 24
3307.4010, 3307.4011, 3307.4012, 3307.4013, 25
3307.41, 3307.411, 3307.412, 3307.42, 3307.421,
3307.43, 3307.431, 3307.44, 3307.46, 3307.47, 26
3307.48, 3307.49, 3307.50, 3307.51, 3307.511, 27
3307.512, 3307.515, 3307.53, 3307.56, 3307.58, 28
3307.59, 3307.60, 3307.61, 3307.62, 3307.64,
3307.65, 3307.651, 3307.66, 3307.68, 3307.69, 29
3307.70, 3307.71, 3307.711, 3307.712, 3307.72, 30
3307.73, 3307.74, 3307.741, 3307.751, 3307.78,
3307.80, 3309.021, 3309.261, 3309.262, 3309.301, 31
3309.31, 3309.341, 3309.35, 3309.39, 3309.45, 32
3313.975, 3317.011, 3317.13, 3319.08, 5101.181, 33
5505.161, and 5505.202; to amend, for the purpose
2
of adopting new section numbers as indicated in 34
parentheses, sections 3307.013 (3307.501), 35
3307.02 (3307.75), 3307.021 (3307.751), 3307.022 36
(3307.752), 3307.111 (3307.151), 3307.14
(3307.181), 3307.20 (3307.51), 3307.201 37
(3307.512), 3307.21 (3307.20), 3307.22 (3307.73), 38
3307.26 (3307.241), 3307.27 (3307.24), 3307.28
(3307.71), 3307.281 (3307.70), 3307.282 39
(3307.711), 3307.283 (3307.712), 3307.29 40
(3307.23), 3307.30 (3307.231), 3307.31 (3307.53), 41
3307.311 (3307.78), 3307.32 (3307.74), 3307.33
(3307.741), 3307.35 (3307.54), 3307.36 (3307.52), 42
3307.371 (3307.69), 3307.38 (3307.58), 3307.381 43
(3307.35), 3307.382 (3307.691), 3307.383 44
(3307.79), 3307.384 (3307.692), 3307.39
(3307.59), 3307.40 (3307.392), 3307.401 45
(3307.693), 3307.402 (3307.694), 3307.403 46
(3307.67), 3307.404 (3307.695), 3307.405
(3307.61), 3307.406 (3307.696), 3307.407 47
(3307.697), 3307.408 (3307.671), 3307.409 48
(3307.698), 3307.4010 (3307.699), 3307.4011
(3307.6910), 3307.4012 (3307.46), 3307.4013 49
(3307.6911), 3307.41 (3307.57), 3307.411 50
(3307.76), 3307.412 (3307.761), 3307.42
(3307.62), 3307.421 (3307.513), 3307.43 51
(3307.63), 3307.431 (3307.631), 3307.44 52
(3307.64), 3307.46 (3307.56), 3307.47 (3307.561), 53
3307.48 (3307.562), 3307.49 (3307.66), 3307.50
(3307.60), 3307.51 (3307.26), 3307.511 54
(3307.261), 3307.512 (3307.77), 3307.515 55
(3307.771), 3307.53 (3307.28), 3307.56 (3307.31), 56
3307.58 (3307.21), 3307.59 (3307.211), 3307.60
(3307.212), 3307.61 (3307.29), 3307.62 57
(3307.291), 3307.63 (3307.213), 3307.64 58
3
(3307.30), 3307.65 (3307.14), 3307.651
(3307.142), 3307.66 (3307.141), 3307.68 59
(3307.96), 3307.69 (3307.97), 3307.70 (3307.98), 60
3307.71 (3307.41), 3307.711 (3307.42), 3307.712 61
(3307.44), 3307.72 (3307.37), 3307.73 (3307.72), 62
3307.74 (3307.39), 3307.741 (3307.391), 3307.75
(3307.32), 3307.751 (3307.47), 3307.78 63
(3307.6912), and 3307.80 (3307.563); to enact new 65
sections 3307.27, 3307.33, 3307.50, 3307.511, and 66
3307.80 and sections 145.391, 742.3721, 3307.031, 67
3307.121, 3307.214, 3307.25, 3307.251, 3307.252, 68
3307.461, 3307.661, 3307.6913, 3307.6914,
3307.81, 3307.811, 3307.812, 3307.83, 3307.84, 69
3307.86, 3307.87, 3307.88, 3307.881, 3307.882, 70
3307.89, 3309.3712, and 5505.177; and to repeal 71
sections 3307.012, 3307.34, 3307.37, 3307.513, 72
and 3307.514 of the Revised Code to increase
certain benefits paid by the State Teachers 73
Retirement System (STRS), to require STRS to 74
establish a defined contribution plan that
members can select as an alternative to its 76
existing defined benefit plan, to permit STRS and
Ohio's other state retirement systems to 77
establish excess benefit arrangements under the
Internal Revenue Code of 1986, to require the 80
Ohio Retirement Study Council to review
semiannually the investment programs of Ohio's 81
state retirement systems and to review at least 82
once every ten years each system's actuarial
valuations and investigations, and to maintain 84
the provisions of this act on and after July 1, 85
2000, by amending the versions of sections 86
3307.21 and 5101.181 of the Revised Code that 87
take effect on that date and by amending, for the 88
4
purpose of adopting a new section number as
indicated in parentheses, the version of section 89
3307.21 (3307.20) of the Revised Code that takes 90
effect on that date.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 92
Section 1. That sections 145.28, 145.293, 145.301, 94
145.311, 145.312, 145.35, 145.37, 145.38, 145.45, 171.04, 742.26, 95
742.379, 2329.66, 3305.01, 3305.06, 3307.01, 3307.013, 3307.02, 96
3307.021, 3307.022, 3307.05, 3307.07, 3307.08, 3307.09, 3307.10, 97
3307.11, 3307.111, 3307.14, 3307.15, 3307.19, 3307.20, 3307.201, 99
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, 101
3307.36, 3307.371, 3307.38, 3307.381, 3307.382, 3307.383, 102
3307.384, 3307.39, 3307.40, 3307.401, 3307.402, 3307.403, 103
3307.404, 3307.405, 3307.406, 3307.407, 3307.408, 3307.409, 104
3307.4010, 3307.4011, 3307.4012, 3307.4013, 3307.41, 3307.411, 105
3307.412, 3307.42, 3307.421, 3307.43, 3307.431, 3307.44, 3307.46, 106
3307.47, 3307.48, 3307.49, 3307.50, 3307.51, 3307.511, 3307.512, 107
3307.515, 3307.53, 3307.56, 3307.58, 3307.59, 3307.60, 3307.61, 108
3307.62, 3307.64, 3307.65, 3307.651, 3307.66, 3307.68, 3307.69, 109
3307.70, 3307.71, 3307.711, 3307.712, 3307.72, 3307.73, 3307.74, 110
3307.741, 3307.751, 3307.78, 3307.80, 3309.021, 3309.261, 111
3309.262, 3309.301, 3309.31, 3309.341, 3309.35, 3309.39, 3309.45, 112
3313.975, 3317.011, 3317.13, 3319.08, 5101.181, 5505.161, and 113
5505.202 be amended; that sections 3307.013 (3307.501), 3307.02 114
(3307.75), 3307.021 (3307.751), 3307.022 (3307.752), 3307.111 115
(3307.151), 3307.14 (3307.181), 3307.20 (3307.51), 3307.201 116
(3307.512), 3307.21 (3307.20), 3307.22 (3307.73), 3307.26 117
(3307.241), 3307.27 (3307.24), 3307.28 (3307.71), 3307.281 118
(3307.70), 3307.282 (3307.711), 3307.283 (3307.712), 3307.29 119
(3307.23), 3307.30 (3307.231), 3307.31 (3307.53), 3307.311 120
(3307.78), 3307.32 (3307.74), 3307.33 (3307.741), 3307.35 121
5
(3307.54), 3307.36 (3307.52), 3307.371 (3307.69), 3307.38 122
(3307.58), 3307.381 (3307.35), 3307.382 (3307.691), 3307.383 123
(3307.79), 3307.384 (3307.692), 3307.39 (3307.59), 3307.40 124
(3307.392), 3307.401 (3307.693), 3307.402 (3307.694), 3307.403 125
(3307.67), 3307.404 (3307.695), 3307.405 (3307.61), 3307.406 126
(3307.696), 3307.407 (3307.697), 3307.408 (3307.671), 3307.409 127
(3307.698), 3307.4010 (3307.699), 3307.4011 (3307.6910), 128
3307.4012 (3307.46), 3307.4013 (3307.6911), 3307.41 (3307.57), 129
3307.411 (3307.76), 3307.412 (3307.761), 3307.42 (3307.62), 130
3307.421 (3307.513), 3307.43 (3307.63), 3307.431 (3307.631), 131
3307.44 (3307.64), 3307.46 (3307.56), 3307.47 (3307.561), 3307.48 132
(3307.562), 3307.49 (3307.66), 3307.50 (3307.60), 3307.51 133
(3307.26), 3307.511 (3307.261), 3307.512 (3307.77), 3307.515 134
(3307.771), 3307.53 (3307.28), 3307.56 (3307.31), 3307.58 135
(3307.21), 3307.59 (3307.211), 3307.60 (3307.212), 3307.61 136
(3307.29), 3307.62 (3307.291), 3307.63 (3307.213), 3307.64 137
(3307.30), 3307.65 (3307.14), 3307.651 (3307.142), 3307.66 138
(3307.141), 3307.68 (3307.96), 3307.69 (3307.97), 3307.70 139
(3307.98), 3307.71 (3307.41), 3307.711 (3307.42), 3307.712 140
(3307.44), 3307.72 (3307.37), 3307.73 (3307.72), 3307.74 141
(3307.39), 3307.741 (3307.391), 3307.75 (3307.32), 3307.751 142
(3307.47), 3307.78 (3307.6912), and 3307.80 (3307.563) be 143
amended, for the purpose of adopting new section numbers as 144
indicated in parentheses; and that new sections 3307.27, 3307.33, 145
3307.50, 3307.511, and 3307.80 and sections 145.391, 742.3721, 147
3307.031, 3307.121, 3307.214, 3307.25, 3307.251, 3307.252, 148
3307.461, 3307.661, 3307.6913, 3307.6914, 3307.81, 3307.811, 150
3307.812, 3307.83, 3307.84, 3307.86, 3307.87, 3307.88, 3307.881, 151
3307.882, 3307.89, 3309.3712, and 5505.177 of the Revised Code be 154
enacted to read as follows: 155
Sec. 145.28. (A)(1) Except as provided in division (A)(2) 164
of this section, a member of the public employees retirement 165
system with at least eighteen months of contributing service in 166
the system, the state teachers retirement system, or the school 167
6
employees retirement system who exempted himself SELF from 168
membership in one or more of the systems pursuant to section 170
145.03 or 3309.23 of the Revised Code, or former section 3307.25 171
or 3309.25 of the Revised Code, or was exempt under section 172
3307.27 3307.24 of the Revised Code, may purchase credit for each 174
year or portion of a year of service for which he THE MEMBER was 175
exempted.
(2) A member may not purchase credit under this section 177
for exempted service if the service was exempted from 178
contribution under section 145.03 of the Revised Code and subject 179
to the tax on wages imposed by the "Federal Insurance 180
Contributions Act," 68A Stat. 415 (1954), 26 U.S.C.A. 3101, as 181
amended. 182
(B) For each year or portion of a year of credit purchased 184
under this section, a member shall pay to the retirement system 185
an amount determined by multiplying the member's earnable salary 186
for the twelve months of contributing service preceding the month 187
in which he THE MEMBER applies to purchase the credit by a 188
percentage rate established by rule of the public employees 190
retirement board adopted under division (F) of this section. 191
(C) Subject to board rules, a member may purchase all or 193
part of the credit he THE MEMBER is eligible to purchase under 194
this section in one or more payments. If the member purchases 196
the credit in more than one payment, compound interest at a rate 197
specified by rule of the board shall be charged on the balance 198
remaining after the first payment is made. 199
(D) Credit purchasable under this section shall not exceed 201
one year of service for any twelve-month period. If the period 202
of service for which credit is purchasable under this section is 203
concurrent with a period of service that will be used to 204
calculate a retirement benefit from this system, the state 205
teachers retirement system, or school employees retirement 206
system, the amount of the credit shall be adjusted in accordance 207
with rules adopted by the public employees retirement board. 208
7
A member who is also a member of the state teachers 210
retirement system or the school employees retirement system shall 211
purchase credit for any service for which he THE MEMBER exempted 212
himself SELF under section 145.03 or 3309.23 of the Revised Code, 214
or former section 3307.25 or 3309.25 of the Revised Code, or was 215
exempt under section 3307.27 3307.24 of the Revised Code, from 216
the retirement system in which he THE MEMBER has the greatest 218
number of years of service credit. If the member receives 220
benefits under section 145.37 of the Revised Code, the retirement 221
system that determines and pays the benefit shall receive from 222
the other system or systems the amounts paid by the member for 223
purchase of credit for exempt service plus interest at the 224
actuarial assumption rate of the system paying that amount. The 225
interest shall be for the period beginning on the date of the 226
member's last payment for purchase of the credit and ending on 227
the date of the member's retirement.
(E) If a member dies or withdraws from service, any 229
payment made by the member under this section shall be considered 230
as accumulated contributions of the member. 231
(F) The retirement board shall adopt rules to implement 233
this section. 234
Sec. 145.293. (A) Service credit purchased under this 243
section shall be included in the member's total service credit. 244
Credit may be purchased for the following: 245
(1) Service rendered in another state, and service in any 247
entity operated by the United States government, that, if served 248
in a comparable position in Ohio, would be covered by the public 249
employees retirement system, Ohio police and fire pension fund, 251
state teachers retirement system, school employees retirement 252
system, or state highway patrol retirement system; 253
(2) Service for which contributions were made by the 255
member or on the member's behalf to a municipal retirement system 257
in this state.
The number of years purchased under this section shall not 259
8
exceed the lesser of five years or the member's total accumulated 260
number of years of Ohio service. 261
(B) For each year of service purchased, a member shall pay 263
to the public employees retirement system for credit to the 264
member's accumulated account an amount equal to the member's 266
retirement contribution for full-time employment for the first 267
year of Ohio service following termination of the service to be 268
purchased. To this amount shall be added an amount equal to 269
compound interest at a rate established by the public employees 270
retirement board from the date of membership in the public 271
employees retirement system to date of payment. The member may 272
choose to purchase only part of such credit in any one payment, 273
subject to board rules. 274
(C) A member is ineligible to purchase under this section 276
service for which the member has obtained credit under section 278
145.44 of the Revised Code or service that is used in the 279
calculation of any retirement benefit currently being paid or 280
payable in the future to the member under any other retirement 281
program except social security. At the time the credit is 282
purchased the member shall certify on a form furnished by the 283
retirement board that the member does and will conform to this 284
requirement.
(D) Credit purchased under this section may be combined 286
pursuant to section 145.37 with credit purchased under sections 287
3307.32 3307.74 and 3309.31 of the Revised Code, except that not 289
more than an aggregate total of five years' service credit 290
purchased under this section and sections 3307.32 3307.74 and 291
3309.31 shall be used in determining retirement eligibility or 293
calculating benefits under section 145.37 of the Revised Code. 294
Sec. 145.301. (A) A member may purchase service credit 303
that shall be considered as the equivalent of Ohio service for 304
each year of service incurred by reason of having been on active 305
duty as a member of the armed forces of the United States, as 306
defined in section 145.30 of the Revised Code. The credit may be 307
9
purchased at any time prior to receipt of a retirement allowance. 308
The number of years purchased shall not exceed five. The member 310
may choose to purchase only part of such credit in any one 311
payment, subject to public employees retirement board rules. 312
(B) For the purposes of this division, "prisoner of war" 314
means any regularly appointed, enrolled, enlisted, or inducted 315
member of the armed forces of the United States who was captured, 316
separated, and incarcerated by an enemy of the United States. 317
A member may purchase service credit that shall be 319
considered as the equivalent of Ohio service for each year of 320
service such member was a prisoner of war. The number of years 321
purchased under this division shall not exceed five. Service 322
credit may be purchased under this division for the same years of 323
service used to purchase service credit under division (A) of 324
this section. The member may choose to purchase only part of 325
such credit in any one payment, subject to board rules. 326
(C) The total number of years purchased under this section 328
shall not exceed the member's total accumulated number of years 329
of Ohio service. 330
(D) For each year of service purchased under division (A) 332
or (B) of this section, the member shall pay to the public 333
employees retirement system for credit to the member's 334
accumulated account an amount specified by the retirement board 336
that shall be not less than fifty per cent of the additional 337
liability resulting from the purchase of that year of service as 338
determined by an actuary employed by the board. 339
(E) A member is ineligible to purchase service credit 341
under this section for any year of military service that was: 342
(1) Used in the calculation of any retirement benefit 345
currently being paid to the member or payable in the future under 346
any other retirement program, except social security, or for 347
retired pay for nonregular service under Chapter 1223 of Section 348
1662 of Title XVI of the "National Defense Authorization Act for 350
Fiscal Year 1995," 108 Stat. 2998 (1994), 10 U.S.C.A. 12731 to 351
10
12739;
(2) Used to obtain service credit pursuant to section 352
145.30 or 145.302 of the Revised Code. 353
At the time the credit is purchased, the member shall 356
certify on a form furnished by the retirement board that the 357
member does and will conform to this requirement. 358
(F) A member who, on the effective date of this amendment 362
MARCH 17, 2000, is purchasing service credit under this section 363
by making installment payments to the system or by a payroll 364
deduction plan authorized under section 145.294 of the Revised 365
Code may elect, on a form provided by the board, to have a 366
portion of the cost of the service credit recalculated under 367
division (D) of this section as amended by House Bill 186 of the 369
123rd general assembly. The recalculation shall apply only to 370
the amount still owed by the member as of the date the election 371
is filed with the board. 372
For each member who makes an election, the board shall do 374
all of the following: 375
(1) Determine the amount of the total cost of the service 377
credit still owed by the member as of the date the election is 378
filed with the board and the number of years or portion of a year 379
of service credit attributable to that amount; 380
(2) Recalculate under division (D) of this section the 382
cost of the service credit described in division (F)(1) of this 383
section;
(3) Notify the member of the recalculated amount. 385
If the recalculated amount is less than the amount still 387
owed by the member as of the date the election is filed, the 388
recalculated amount shall be the amount owed by the member. 389
(G) Credit purchased under this section may be combined 391
pursuant to section 145.37 with credit for military service 392
purchased under sections 3307.021 3307.751 and 3309.021, except 394
that not more than an aggregate total of five years of credit 395
purchased under division (A) of this section, division (A) of 396
11
section 3307.021 3307.751, and division (A) of section 3309.021, 397
and not more than an aggregate total of five years of credit 399
purchased under division (B) of this section, division (B) of 400
section 3307.021 3307.751, and division (B) of section 3309.021 402
shall be used in determining retirement eligibility or 403
calculating benefits under section 145.37 of the Revised Code. 404
Sec. 145.311. (A) A member of the public employees 413
retirement system who has at least eighteen months of 414
contributing service credit in the system, the OHIO police and 415
firemen's disability and FIRE pension fund, school employees 417
retirement system, state teachers retirement system, or state 418
highway patrol retirement system, and is a former member of or no 419
longer contributing to the school employees retirement system or 420
state teachers retirement system may restore service credit under 421
section 3307.28 3307.71 or 3309.26 of the Revised Code by making 423
payments pursuant to this section through a payroll deduction 424
plan established under section 145.294 of the Revised Code, a. A 425
member seeking to restore this service credit shall notify the 427
public employees retirement system on a form approved by the 428
public employees retirement board. After receiving the notice, 429
the public employees retirement system shall request that the 430
former retirement system calculate under section 3307.283
3307.712 or 3309.262 of the Revised Code the cost to the member 432
to restore service credit for each year or portion of a year of 434
service for which the member seeks to restore the service credit. 435
The amount the former retirement system certifies as the cost of 436
restoring the service credit, plus interest described in division 437
(B) of this section, is the cost to the member of restoring the 438
service credit. On receiving the certification from the former 439
retirement system, the public employees retirement system shall 440
notify the member of the cost. 441
(B) For each year or portion of a year of service credit 443
restored under section 3307.28 3307.71 or 3309.26 of the Revised 445
Code, a member shall pay to the public employees retirement 446
12
system the amount certified by the former retirement system plus 447
interest at a rate specified by the former retirement system 448
under section 3307.283 3307.712 or 3309.262 of the Revised Code 450
for the period during which deductions are made under section 451
145.294 of the Revised Code. 452
(C) The public employees retirement board shall annually 455
notify the former retirement system that a payment to restore 456
service credit under section 3307.28 3307.71 or 3309.26 of the 458
Revised Code has been made. At the time the payment is 459
transferred under division (D) of this section, the former 460
retirement system shall restore the service credit for the year 461
or portion of a year for which the payment was made. 463
(D) On application for a payment of accumulated 465
contributions or an age and service retirement, disability, or 467
survivor benefit under Chapter 145., 3307., or 3309. of the 468
Revised Code by a member who made payments under this section to 470
restore service credit in a former retirement system, the public 471
employees retirement system shall pay to the former retirement 472
system an amount equal to the total amount paid by the member 474
under this section.
(E) The board shall adopt rules to implement this section. 476
Sec. 145.312. After receiving a request from the state 486
teachers retirement system under division (A) of section 3307.282 487
3307.711 or the school employees retirement system under division 489
(A) of section 3309.261 of the Revised Code, the public employees 492
retirement system shall do both of the following: 493
(A) Calculate and certify to the requesting retirement 496
system the cost to a former member to restore service credit 497
under section 145.31 of the Revised Code for each year or portion 498
of a year for which the former member seeks to restore service 500
credit under that section.
(B) Inform the requesting retirement system of the rate of 502
interest charged to a member under a payroll deduction plan 503
authorized under section 145.294 of the Revised Code. 504
13
Sec. 145.35. (A) As used in this section, "on-duty 513
illness or injury" means an illness or injury that occurred 514
during or resulted from performance of duties under the direct 515
supervision of a member's appointing authority. 516
(B) The public employees retirement system shall provide 518
disability coverage to each member who has at least five years of 519
total service credit and disability coverage for on-duty illness 520
or injury to each member who is a law enforcement officer, 521
regardless of length of service. 522
Not later than October 16, 1992, the public employees 524
retirement board shall give each person who is a member on July 525
29, 1992, the opportunity to elect disability coverage either 527
under section 145.36 of the Revised Code or under section 145.361 528
of the Revised Code. The board shall mail notice of the 529
election, accompanied by an explanation of the coverage under 530
each of the Revised Code sections and a form on which the 531
election is to be made, to each member at the member's last known 533
address. The board shall also provide the explanation and form 534
to any member on request.
Regardless of whether the member actually receives notice 536
of the right to make an election, a member who fails to file a 537
valid election under this section shall be considered to have 538
elected disability coverage under section 145.36 of the Revised 539
Code. To be valid, an election must be made on the form provided 540
by the retirement board, signed by the member, and filed with the 541
board not later than one hundred eighty days after the date the 542
notice was mailed, or, in the case of a form provided at the 543
request of a member, a date specified by rule of the retirement 544
board. Once made, an election is irrevocable, but if the member 545
ceases to be a member of the retirement system, the election is 546
void. If a person who makes an election under this section also 547
makes an election under section 3307.42 3307.62 or 3309.39 of the 549
Revised Code, the election made for the system that pays a 550
disability benefit to that person shall govern the benefit. 551
14
Disability coverage shall be provided under section 145.361 553
of the Revised Code for persons who become members after July 29, 555
1992, and for members who elect under this division to be covered 556
under section 145.361 of the Revised Code. 557
The retirement board may adopt rules governing elections 559
made under this division. 560
(C) Application for a disability benefit may be made by a 562
member, by a person acting in the member's behalf, or by the 563
member's employer, provided the member has disability coverage 565
under section 145.36 or 145.361 of the Revised Code and is not 566
receiving a disability benefit under any other Ohio state or 567
municipal retirement program. Application must be made within 568
two years from the date the member's contributing service 569
terminated, unless the retirement board determines that the 570
member's medical records demonstrate conclusively that at the 571
time the two-year period expired, the member was physically or 572
mentally incapacitated for duty and unable to make an 573
application. Application may not be made by or for any person 574
receiving age and service retirement benefits under section 575
145.33, 145.331, 145.34, or 145.37 of the Revised Code or any 576
person who, pursuant to section 145.40 of the Revised Code, has 577
been paid the accumulated contributions standing to the credit of 578
the person's individual account in the employees' savings fund. 580
The application shall be made on a form provided by the
retirement board. 581
(D) The benefit payable to any member who is approved for 583
a disability benefit shall become effective on the first day of 584
the month immediately following the later of the following: 585
(1) The last day for which compensation was paid; 587
(2) The attainment of eligibility for a disability 589
benefit. 590
(E) Medical examination of a member who has applied for a 593
disability benefit shall be conducted by a competent
disinterested physician or physicians selected by the board to 594
15
determine whether the member is mentally or physically 595
incapacitated for the performance of duty by a disabling 596
condition either permanent or presumed to be permanent. The 598
disability must have occurred since last becoming a member or
have increased since last becoming a member to such extent as to 599
make the disability permanent or presumed to be permanent. A 600
disability is presumed to be permanent if it is expected to last 601
for a continuous period of not less than twelve months following 602
the filing of the application. 603
If the physician or physicians determine that the member 605
qualifies for a disability benefit, the board concurs with the 607
determination, and the member agrees to medical treatment as 608
specified in division (F) of this section, the member shall 609
receive a disability benefit under section 145.36 or 145.361 of 610
the Revised Code. The action of the board shall be final. 611
(F) The public employees retirement board shall adopt 613
rules requiring a disability benefit recipient, as a condition of 615
continuing to receive a disability benefit, to agree in writing 616
to obtain any medical treatment recommended by the board's 617
physician and submit medical reports regarding the treatment. If 619
the board determines that a disability benefit recipient is not
obtaining the medical treatment or the board does not receive a 620
required medical report, the disability benefit shall be 622
suspended until the treatment is obtained, the report is received 623
by the board, or the board's physician certifies that the 624
treatment is no longer helpful or advisable. Should the 625
recipient's failure to obtain treatment or submit a medical 626
report continue for one year, the recipient's right to the 628
disability benefit shall be terminated as of the effective date 629
of the original suspension.
(G) In the event an employer files an application for a 631
disability benefit as a result of a member having been separated 632
from service because the member is considered to be mentally or 634
physically incapacitated for the performance of the member's 635
16
present duty, and the physician or physicians selected by the 636
board reports to the board that the member is physically and 637
mentally capable of performing service similar to that from which 638
the member was separated and the board concurs in the report, the 640
board shall so certify to the employer and the employer shall 641
restore the member to the member's previous position and salary 643
or to a similar position and salary.
Sec. 145.37. (A) As used in this section: 652
(1) "State retirement system" means the public employees 654
retirement system, school employees retirement system, or state 655
teachers retirement system. 656
(2) "Total service credit" means all service credit earned 658
in the state retirement systems, except credit for service 659
subject to section 145.38 of the Revised Code. Total service 660
credit shall not exceed one year of credit for any twelve-month 661
period. 662
(3) In addition to the meaning given in division (N) of 664
section 145.01 of the Revised Code, "disability benefit" means 665
"disability benefit" as defined in sections 3307.01 and 3309.01 666
of the Revised Code. 667
(B) To coordinate and integrate membership in the state 669
retirement systems, the following provisions apply: 670
(1) At the option of a member, total contributions and 672
service credit in all state retirement systems, including amounts 673
paid to restore service credit under sections 145.311, 3307.282 674
3307.711, and 3309.261 of the Revised Code, shall be used in 676
determining the eligibility and total retirement or disability 677
benefit payable. When total contributions and service credit are 678
so combined, the following provisions apply: 679
(a) Age and service retirement or disability benefits are 681
effective on the first day of the month immediately following the 682
later of: 683
(i) The last day for which compensation was paid; 685
(ii) The attainment of minimum age or service credit 687
17
eligibility for benefits provided under this section. 688
(b) In determining eligibility for a disability benefit, 690
the medical examiner's report to the retirement board of any 691
state retirement system, showing that the member's disability 692
incapacitates the member for the performance of duty, may be 693
accepted by the state retirement boards as sufficient for 695
granting a disability benefit. 696
(c) The state retirement system in which the member had 698
the greatest service credit, without adjustment, shall determine 699
and pay the total retirement or disability benefit. Where the 700
member's credit is equal in two or more state retirement systems, 702
the system having the largest total contributions of the member 703
shall determine and pay the total benefit. 704
(d) In determining the total credit to be used in 706
calculating a retirement or disability benefit, credit shall not 707
be reduced below that certified by the system or systems 708
transferring credit, except that such total combined service 709
credit shall not exceed one year of credit for any one "year" as 710
defined in the law of the system making the calculation. 711
(e) The state retirement system determining and paying a 713
retirement or disability benefit shall receive from the other 714
system or systems the member's refundable account at retirement 715
or the effective date of a disability benefit plus an equal 716
amount from the employer's accumulation fund. 717
(i) The annuity rates and mortality tables of the state 719
retirement system making the calculation and paying the benefit 720
shall be exclusively applicable. 721
(ii) Deposits made for the purpose of an additional 723
annuity, and including guaranteed interest, upon the request of 724
the member, shall be transferred to the state retirement system 725
paying the benefit. The return upon such deposits shall be that 726
offered by the state retirement system making the calculation and 727
paying the benefit. 728
(2) A former member receiving a retirement or disability 730
18
benefit under this section, who accepts employment amenable to 731
coverage in any state retirement system that participated in the 732
former member's combined benefit, shall be subject to the 734
applicable provisions of law governing such re-employment. If 735
the former member is subject to section 3307.381 3307.35 of the 736
Revised Code and exceeds the limits on re-employment established 738
by that section, the state retirement system paying a combined 739
benefit shall terminate the entire pension portion of the benefit 740
for the period of re-employment that exceeds the limit in that 741
section. If a former member should be paid any amount in a 742
retirement benefit, to which the former member is not entitled 743
under the applicable provisions of law governing such 745
re-employment, such amount shall be recovered by the state 746
retirement system paying such benefit by utilizing any recovery 747
procedure available under the code provisions of the state 748
retirement system covering such re-employment.
(C) A PERS retirant or other system retirant, as defined 750
in section 145.38 of the Revised Code, is not eligible to receive 751
any benefit under this section for service subject to section 752
145.38 of the Revised Code. 753
Sec. 145.38. (A) As used in this section: 762
(1) "PERS retirant" means a former member of the public 764
employees retirement system who is receiving either of the 765
following:
(a) Age and service retirement benefits under section 767
145.32, 145.33, 145.331, 145.34, or 145.46 of the Revised Code; 768
(b) Age and service retirement benefits paid by the public 770
employees retirement system under section 145.37 of the Revised 771
Code. 772
(2) "Other system retirant" means both of the following: 774
(a) A member or former member of the Ohio police and 776
firemen's fire pension fund, state teachers retirement system, 777
school employees retirement system, state highway patrol 778
retirement system, or Cincinnati retirement system who is 779
19
receiving age and service or commuted age and service retirement 780
benefits or a disability benefit from a system of which the 781
person is a member or former member; 782
(b) A member or former member of the public employees 784
retirement system who is receiving age and service retirement 785
benefits or a disability benefit under section 145.37 of the 786
Revised Code paid by the school employees retirement system or 787
the state teachers retirement system. 788
(B)(1) Subject to this section, a PERS retirant or other 790
system retirant may be employed by a public employer. If so 791
employed, the PERS retirant or other system retirant shall 792
contribute to the public employees retirement system in 793
accordance with section 145.47 of the Revised Code, and the 794
employer shall make contributions in accordance with section 795
145.48 of the Revised Code. 796
(2) A public employer that employs a PERS retirant or 798
other system retirant, or enters into a contract for services as 799
an independent contractor with a PERS retirant who was employed 800
by the public employer at the time of the retirant's retirement 802
shall notify the retirement board of the employment or contract
not later than the end of the month in which the employment or 803
contract commences. Any overpayment of benefits to a PERS 804
retirant by the retirement system resulting from delay or failure 805
of the employer to give the notice shall be repaid to the 806
retirement system by the employer. 807
(3) On receipt of notice from a public employer that a 809
person who is an other system retirant has been employed, the 810
retirement system shall notify the retirement system of which the 811
other system retirant was a member of such employment. 812
(4)(a) A PERS retirant who has received a retirement 814
allowance for less than six months when employment subject to 815
this section commences shall forfeit the retirement allowance for 816
the period that begins on the date the employment commences and 817
ends on the date that is six months after the date on which the 818
20
retirement allowance commenced. Service and contributions for 819
that period shall not be included in calculation of any benefits 820
payable to the PERS retirant and those contributions shall be 821
refunded on the retirant's death or termination of the 822
employment. For purposes of this division, "employment" shall 823
include service for which the retirant or the retirant's 824
employer, or both, have waived any earnable salary for such 825
service.
(b) An other system retirant who has received a retirement 827
allowance or disability benefit for less than two months when 829
employment subject to this section commences shall forfeit the 830
retirement allowance or disability benefit for the period that 831
begins on the date the employment commences and ends on the date 832
that is two months after the date on which the retirement 833
allowance or disability benefit commenced. Service and 834
contributions for that period shall not be included in the
calculation of any benefits payable to the other system retirant 835
and those contributions shall be refunded on the retirant's death 837
or termination of the employment.
(5) On receipt of notice from the Ohio police and fire 840
pension fund, school employees retirement system, or state 842
teachers retirement system of the re-employment of a PERS 843
retirant, the public employees retirement system shall not pay,
or if paid, shall recover, the amount to be forfeited by the PERS 844
retirant in accordance with section 742.26, 3307.381 3307.35, or 846
3309.341 of the Revised Code. 847
(6) A PERS retirant who enters into a contract to provide 849
services as an independent contractor to the employer by which 850
the retirant was employed at the time of retirement or, less than 852
two months after the retirement allowance commences, begins
providing services as an independent contractor pursuant to a 853
contract with another public employer, shall forfeit the pension 854
portion of the retirement benefit for the period beginning the 855
first day of the month following the month in which the services 856
21
begin and ending on the first day of the month following the 857
month in which the services end. The annuity portion of the 858
retirement allowance shall be suspended on the day services under 859
the contract begin and shall accumulate to the credit of the 860
retirant to be paid in a single payment after services provided 861
under the contract terminate. A PERS retirant subject to 862
division (B)(6) of this section shall not contribute to the 863
retirement system and shall not become a member of the system. 864
(C)(1) Except as provided in division (C)(4) of this 866
section, a PERS retirant employed pursuant to this section shall 868
elect one of the following:
(a) To receive both compensation for the employment and a 871
retirement allowance;
(b) To receive compensation for the employment and forfeit 874
the pension portion of the retirement allowance.
(2) A PERS retirant who is described in division (C)(4) of 877
this section or elects to forfeit the pension portion of the 878
retirement allowance under division (C)(1)(b) of this section 879
shall become a new member of the public employees retirement 880
system with all the rights, privileges, and obligations of 881
membership, except that the new membership does not include 882
survivor benefits provided pursuant to section 145.45 of the 883
Revised Code. The pension portion of the PERS retirant's
retirement allowance shall cease on the first day of the first 884
month following commencement of the employment and shall 885
thereafter be forfeited until the first day of the first month 886
following termination of the employment. The annuity portion of 887
the retirement allowance shall be suspended on the first day of 888
the first month following commencement of the employment and 889
shall thereafter accumulate to the credit of the PERS retirant to 890
be paid in a single payment after termination of the employment. 891
The retirement allowance shall resume on the first day of the 892
first month following termination of the employment. On 893
termination of the employment, the PERS retirant shall elect to 894
22
receive either a refund of the retirant's contributions to the 896
retirement system during the period of employment subject to this 897
section or a supplemental retirement allowance based on the 898
retirant's contributions and service credit for that period of 899
employment.
(3) Except as provided in division (B)(4) of this section, 901
there shall be no suspension or forfeiture of any portion of the 902
retirement allowance payable to other system retirants or to PERS 903
retirants who make an election under division (C)(1)(a) of this 904
section. 905
(4) A PERS retirant shall elect division (C)(1)(b) of this 908
section if both of the following apply:
(a) The retirant held elective office in this state, or in 910
any municipal corporation, county, or other subdivision of this 911
state at the time of retirement under Chapter 145. of the Revised 912
Code;
(b) The retirant was elected or appointed to the same 914
office for the remainder of the term or the term immediately 915
following the term during which the retirement occurred. 916
(D)(1) On termination of employment under this section, 918
the PERS retirant who makes an election under division (C)(1)(a) 919
of this section or other system retirant may file an application 920
with the public employees retirement system for a benefit under 921
this division, which shall consist of a single life annuity 922
having a reserve equal to the amount of the retirant's 923
accumulated contributions for the period of employment and an 924
equal amount of the employer's contributions. The PERS retirant 925
or other system retirant shall elect either to receive the 926
benefit as a monthly annuity for life or a lump-sum payment 927
discounted to the present value using the current actuarial 928
assumption rate of interest, except that if the monthly annuity 929
would be less than twenty-five dollars per month, the retirant 930
shall receive a lump-sum payment. 931
(2) A benefit payable under this division shall commence 933
23
on the latest of the following: 934
(a) The last day for which compensation for employment 936
subject to this section was paid; 937
(b) Attainment by the PERS retirant or other system 939
retirant of age sixty-five; 940
(c) If the PERS retirant or other system retirant was 942
previously employed under this section and is receiving or 943
previously received a benefit under this division, completion of 944
a period of twelve months since the effective date of the last 945
benefit under this division. 946
(3)(a) If a PERS retirant or other system retirant dies 948
while employed in employment subject to this section, a lump-sum 949
payment calculated in accordance with division (D)(1) of this 950
section shall be paid to the retirant's beneficiary under 951
division (G) of this section. 952
(b) If at the time of death a PERS retirant or other 954
system retirant receiving a monthly annuity has received less 955
than the retirant would have received as a lump-sum payment, the 957
difference between the amount received and the amount that would 958
have been received as a lump-sum payment shall be paid to the 959
retirant's beneficiary under division (G) of this section. 960
(4)(a) A PERS retirant or other system retirant subject to 962
this division is not a member of the public employees retirement 963
system, does not have any of the rights, privileges, or 964
obligations of membership, except as specified in this section, 965
and, except as specified in division (D)(4)(b) of this section, 966
is not eligible to receive health, medical, hospital, or surgical 967
benefits under section 145.58 of the Revised Code for employment 968
subject to this section. No amount received under this division 969
shall be included in determining an additional benefit under 970
section 145.323 of the Revised Code or any other post-retirement 971
benefit increase. 972
(b) A PERS retirant who makes an election under division 974
(C)(1)(a) of this section shall receive primary health, medical, 975
24
hospital, or surgical insurance coverage from the retirant's 976
employer, if the employer provides coverage to other employees 977
performing comparable work. Neither the employer nor the PERS 978
retirant may waive the employer's coverage, except that the PERS 979
retirant may waive the employer's coverage if the retirant has 980
coverage comparable to that provided by the employer from a 981
source other than the employer or the public employees retirement 982
system. If a claim is made, the employer's coverage shall be the 983
primary coverage and shall pay first. The benefits provided 984
under section 145.58 of the Revised Code shall pay only those 985
medical expenses not paid through the employer's coverage or 986
coverage the PERS retirant receives through a source other than 987
the retirement system. 988
(E) If the disability benefit of an other system retirant 990
employed under this section is terminated, the retirant shall 991
become a member of the public employees retirement system, 992
effective on the first day of the month next following the 993
termination with all the rights, privileges, and obligations of 994
membership. If such person, after the termination of the 995
disability benefit, earns two years of service credit under this 996
system or under the Ohio police and fire pension fund, state 998
teachers retirement system, school employees retirement system, 999
or state highway patrol retirement system, the person's prior 1,000
contributions as an other system retirant under this section 1,001
shall be included in the person's total service credit as a 1,002
public employees retirement system member, and the person shall 1,003
forfeit all rights and benefits of this section. Not more than 1,004
one year of credit may be given for any period of twelve months. 1,005
(F) A PERS retirant who performs services for a public 1,007
employer as an independent contractor pursuant to a contract with 1,008
the employer shall not make contributions to the public employees 1,009
retirement system or become a member of the system. Except as 1,010
provided in division (B)(6) of this section, there shall be no 1,011
suspension or forfeiture of the retirant's retirement allowance. 1,012
25
(G) A PERS retirant or other system retirant employed 1,014
under this section may designate one or more persons as 1,015
beneficiary to receive any benefits payable under this section 1,016
due to death. The designation shall be in writing duly executed 1,018
on a form provided by the public employees retirement board, 1,019
signed by the PERS retirant or other system retirant, and filed 1,020
with the board prior to death. The last designation of a 1,021
beneficiary revokes all previous designations. The PERS
retirant's or other system retirant's marriage, divorce, marriage 1,022
dissolution, legal separation, withdrawal of account, birth of a 1,024
child, or adoption of a child revokes all previous designations. 1,025
If there is no designated beneficiary, the beneficiary is the 1,026
beneficiary determined under division (D) of section 145.43 of 1,027
the Revised Code. If any benefit payable under this section due 1,028
to the death of a PERS retirant or other system retirant is not 1,029
claimed by a beneficiary within five years after the death, the 1,030
amount payable shall be transferred to the income fund and 1,031
thereafter paid to the beneficiary or the estate of the PERS 1,032
retirant or other system retirant on application to the board.
(H) This section does not affect the receipt of benefits 1,034
by or eligibility for benefits of any person who on August 20, 1,035
1976, was receiving a disability benefit or service retirement 1,036
pension or allowance from a state or municipal retirement system 1,037
in Ohio and was a member of any other state or municipal 1,038
retirement system of this state. 1,039
(I) The public employees retirement board may adopt rules 1,041
to carry out this section. 1,042
Sec. 145.391. THE PUBLIC EMPLOYEES RETIREMENT BOARD MAY 1,044
ESTABLISH AND MAINTAIN A QUALIFIED GOVERNMENTAL EXCESS BENEFIT 1,045
ARRANGEMENT THAT MEETS THE REQUIREMENTS OF DIVISION (m) OF 1,046
SECTION 415 OF THE "INTERNAL REVENUE CODE OF 1986," 100 STAT. 1,048
2085, 26 U.S.C.A. 415, AS AMENDED, AND ANY REGULATIONS ADOPTED 1,050
THEREUNDER. IF ESTABLISHED, THE ARRANGEMENT SHALL BE A SEPARATE 1,051
PORTION OF THE PUBLIC EMPLOYEES RETIREMENT SYSTEM AND BE 1,052
26
MAINTAINED SOLELY FOR THE PURPOSE OF PROVIDING TO RETIRED MEMBERS 1,053
THAT PART OF A BENEFIT OTHERWISE PAYABLE UNDER SECTIONS 145.01 TO 1,054
145.59 OF THE REVISED CODE THAT EXCEEDS THE LIMITS ESTABLISHED BY 1,056
SECTION 415 OF THE "INTERNAL REVENUE CODE OF 1986," AS AMENDED. 1,057
MEMBERS PARTICIPATING IN AN ARRANGEMENT ESTABLISHED UNDER 1,059
THIS SECTION SHALL NOT BE PERMITTED TO ELECT TO DEFER 1,060
COMPENSATION TO THE ARRANGEMENT. CONTRIBUTIONS TO AND BENEFITS 1,061
PAID UNDER AN ARRANGEMENT SHALL NOT BE PAYABLE FROM A TRUST THAT 1,062
IS PART OF THE SYSTEM UNLESS THE TRUST IS MAINTAINED SOLELY FOR 1,063
THE PURPOSE OF PROVIDING SUCH BENEFITS. 1,064
THE BOARD SHALL ADOPT RULES TO ADMINISTER AN ARRANGEMENT 1,066
ESTABLISHED UNDER THIS SECTION. 1,067
Sec. 145.45. Except as provided in division (C)(1) of this 1,077
section, in lieu of accepting the payment of the accumulated 1,078
account of a member who dies before service retirement, a 1,079
beneficiary, as determined in this section or section 145.43 of 1,080
the Revised Code, may elect to forfeit the accumulated 1,081
contributions and to substitute certain other benefits under 1,082
division (A) or (B) of this section.
(A) If a deceased member was eligible for a service 1,084
retirement benefit as provided in section 145.33, 145.331, or 1,085
145.34 of the Revised Code, a surviving spouse or other sole 1,086
dependent beneficiary may elect to receive a monthly benefit 1,088
computed as the joint-survivor benefit designated as "plan D" in 1,089
section 145.46 of the Revised Code, which the member would have 1,090
received had the member retired on the last day of the month of 1,091
death and had the member at that time selected such 1,093
joint-survivor plan. Payment shall begin with the month 1,095
subsequent to the member's death, except that a surviving spouse 1,096
who is less than sixty-five years old may defer receipt of such 1,097
benefit. Upon receipt, the benefit shall be calculated based 1,098
upon the spouse's age at the time of first payment, and shall 1,099
accrue regular interest during the time of deferral. 1,100
(B) If a deceased member had at least one and one-half 1,102
27
years of contributing service credit, with at least one-quarter 1,103
year of contributing service credit within the two and one-half 1,104
years prior to the date of death, or was receiving at the time of 1,105
death a disability benefit as provided in section 145.36, 1,106
145.361, or 145.37 of the Revised Code, certain qualified 1,107
survivors may elect to receive monthly benefits as provided in 1,110
divisions (B)(1) and (5) of this section.
(1) Number 1,112
of Qualified Or 1,113
survivors Annual Benefit as a Per Monthly Benefit 1,114
affecting Cent of Decedent's Final shall not be 1,115
the benefit Average Salary less than 1,116
1 25% $ 96 1,117
2 40 186 1,118
3 50 236 1,119
4 55 236 1,120
5 or more 60 236 1,121
(2) Benefits shall begin as qualified survivors meet 1,124
eligibility requirements as follows: 1,125
(a) A qualified spouse is the surviving spouse of the 1,127
deceased member, who is age sixty-two, or age fifty if the 1,130
deceased member had ten or more years of Ohio service credit, or 1,131
regardless of age if caring for a qualified child, or regardless 1,132
of age if adjudged physically or mentally incompetent. A spouse 1,134
of a member who died prior to August 27, 1970, whose eligibility 1,135
was determined at the member's death, and who is physically or 1,136
mentally incompetent on or after August 20, 1976, shall be paid 1,137
the monthly benefit which that person would otherwise receive 1,138
when qualified by age.
(b) A qualified child is any unmarried child of the 1,142
deceased member under age eighteen, or under age twenty-two if 1,143
the child is attending an institution of learning or training 1,144
pursuant to a program designed to complete in each school year 1,145
the equivalent of at least two-thirds of the full-time curriculum 1,146
28
requirements of such institution and as further determined by 1,147
board policy, or regardless of age if adjudged physically or 1,148
mentally incompetent at the time of the member's death. 1,149
(c) A qualified parent is a dependent parent aged 1,151
sixty-five or older or regardless of age if physically or 1,153
mentally incompetent, a dependent parent whose eligibility was 1,154
determined by the member's death prior to August 20, 1976, and 1,155
who is physically or mentally incompetent on or after August 20, 1,156
1976, shall be paid the monthly benefit for which that person 1,157
would otherwise qualify.
(3) "Physically or mentally incompetent" as used in this 1,159
section may be determined by a court of jurisdiction, or by a 1,160
physician appointed by the retirement board. Incapability of 1,161
making a living because of a physically or mentally disabling 1,162
condition shall meet the qualifications of this division. 1,163
(4) Benefits to a qualified survivor shall terminate upon 1,166
ceasing to meet eligibility requirements as provided in this 1,167
division, a first marriage, abandonment, adoption, or during 1,169
active military service. Benefits to a deceased member's 1,170
surviving spouse that were terminated under a former version of 1,171
this section that required termination due to remarriage and were 1,172
not resumed prior to the effective date of this amendment 1,173
SEPTEMBER 16, 1998, shall resume on the first day of the month 1,174
immediately following receipt by the board of an application on a 1,175
form provided by the board. 1,176
Upon the death of any subsequent spouse who was a member of 1,179
the public employees retirement system, state teachers retirement 1,180
system, or school employees retirement system, the surviving 1,181
spouse of such member may elect to continue receiving benefits 1,182
under this division, or to receive survivor's benefits, based 1,183
upon the subsequent spouse's membership in one or more of the 1,184
systems, for which such surviving spouse is eligible under this 1,185
section or section 3307.49 3307.66 or 3309.45 of the Revised 1,186
Code. If the surviving spouse elects to continue receiving 1,188
29
benefits under this division, such election shall not preclude 1,189
the payment of benefits under this division to any other 1,190
qualified survivor.
Benefits shall begin or resume on the first day of the 1,192
month following the attainment of eligibility and shall terminate 1,193
on the first day of the month following loss of eligibility. 1,194
(5) Benefits to a qualified spouse shall be paid in the 1,196
amount determined for the first qualifying survivor in division 1,198
(B)(1) of this section, but shall not be less than one hundred 1,199
six dollars per month if the deceased member had ten or more 1,200
years of Ohio service credit. All other qualifying survivors 1,202
shall share equally in the benefit or remaining portion thereof. 1,203
(6) The beneficiary of a member who is also a member of 1,205
the state teachers retirement system or of the school employees 1,206
retirement system, must forfeit the member's accumulated 1,207
contributions in those systems and in the public employees 1,208
retirement system, if the beneficiary takes a survivor benefit. 1,211
Such benefit shall be exclusively governed by section 145.37 of
the Revised Code. 1,212
(C)(1) Regardless of whether the member is survived by a 1,216
spouse or designated beneficiary, if the public employees
retirement system receives notice that a deceased member 1,217
described in division (A) or (B) of this section has one or more 1,218
qualified children, all persons who are qualified survivors under 1,220
division (B) of this section shall receive monthly benefits as 1,222
provided in division (B) of this section. 1,223
If, after determining the monthly benefits to be paid under 1,225
division (B) of this section, the system receives notice that 1,226
there is a qualified survivor who was not considered when the 1,227
determination was made, the system shall, notwithstanding section 1,228
145.561 of the Revised Code, recalculate the monthly benefits 1,230
with that qualified survivor included, even if the benefits to 1,231
qualified survivors already receiving benefits are reduced as a 1,232
result. The benefits shall be calculated as if the qualified 1,233
30
survivor who is the subject of the notice became eligible on the
date the notice was received and shall be paid to qualified 1,234
survivors effective on the first day of the first month following 1,235
the system's receipt of the notice. 1,236
If the retirement system did not receive notice that a 1,238
deceased member has one or more qualified children prior to 1,240
making payment under section 145.43 of the Revised Code to a 1,243
beneficiary as determined by the retirement system, the payment 1,244
is a full discharge and release of the system from any future 1,245
claims under this section or section 145.43 of the Revised Code. 1,246
(2) If benefits under division (C)(1) of this section to 1,249
all persons, or to all persons other than a surviving spouse or 1,251
other sole beneficiary, terminate, there are no children under
the age of twenty-two years, and the surviving spouse or 1,252
beneficiary qualifies for benefits under division (A) of this 1,254
section, the surviving spouse or beneficiary may elect to receive 1,255
benefits under division (A) of this section. The benefits shall 1,256
be effective on the first day of the month immediately following 1,257
the termination.
(D) If the survivor benefits due and paid under this 1,259
section are in a total amount less than the member's accumulated 1,260
account that was transferred from the public employees' savings 1,261
fund to the survivors' benefit fund, then the difference between 1,262
the total amount of the benefits paid shall be paid to the 1,263
beneficiary under section 145.43 of the Revised Code. 1,264
Sec. 171.04. The Ohio retirement study council shall: 1,274
(A) Make an impartial review from time to time of all laws 1,276
governing the administration and financing of the pension and 1,277
retirement funds under Chapters 145., 146., 742., 3307., 3309., 1,278
and 5505. of the Revised Code and recommend to the general 1,279
assembly any changes it may find desirable with respect to the 1,280
allowances and benefits, sound financing of the cost of benefits, 1,281
the prudent investment of funds, and the improvement of the 1,282
language, structure, and organization of the laws; 1,283
31
(B) Make an annual report to the governor and to the 1,285
general assembly covering its evaluation and recommendations with 1,286
respect to the operations of the state retirement systems and 1,287
their funds; 1,288
(C) Study all changes in the retirement laws proposed to 1,290
the general assembly and report to the general assembly on their 1,291
probable costs, actuarial implications, and desirability as a 1,292
matter of public policy; 1,293
(D) REVIEW SEMIANNUALLY THE POLICIES, OBJECTIVES, AND 1,295
CRITERIA ADOPTED UNDER SECTIONS 145.11, 742.11, 3307.15, 3309.15, 1,296
AND 5505.06 OF THE REVISED CODE FOR THE OPERATION OF THE 1,297
INVESTMENT PROGRAMS OF THE STATE RETIREMENT SYSTEMS, INCLUDING A 1,298
REVIEW OF ASSET ALLOCATION TARGETS AND RANGES, RISK FACTORS,
ASSET CLASS BENCHMARKS, TIME HORIZONS, TOTAL RETURN OBJECTIVES, 1,299
RELATIVE VOLATILITY, AND PERFORMANCE EVALUATION GUIDELINES. THE
COUNCIL SHALL, NOT LATER THAN THIRTY DAYS AFTER COMPLETING A 1,300
REVIEW, SUBMIT TO THE GOVERNOR AND THE GENERAL ASSEMBLY A REPORT 1,301
SUMMARIZING ITS FINDINGS. 1,302
(E) HAVE PREPARED BY AN INDEPENDENT ACTUARY, AT LEAST ONCE 1,304
EVERY TEN YEARS, AN ACTUARIAL REVIEW OF THE ANNUAL ACTUARIAL 1,305
VALUATIONS AND QUINQUENNIAL ACTUARIAL INVESTIGATIONS PREPARED 1,306
UNDER SECTIONS 145.22, 742.14, 3307.20, 3309.21, AND 5505.12 OF 1,307
THE REVISED CODE, INCLUDING A REVIEW OF THE ACTUARIAL ASSUMPTIONS 1,309
AND METHODS, THE DATA UNDERLYING THE VALUATIONS AND 1,310
INVESTIGATIONS, AND THE ADEQUACY OF EACH SYSTEM'S EMPLOYEE AND 1,311
EMPLOYER CONTRIBUTION RATES TO AMORTIZE ITS UNFUNDED ACTUARIAL 1,313
PENSION LIABILITY, IF ANY, AND TO SUPPORT THE PAYMENT OF BENEFITS 1,314
AUTHORIZED BY CHAPTER 145., 742., 3307., 3309., OR 5505. OF THE 1,315
REVISED CODE. THE COUNCIL SHALL SUBMIT TO THE GOVERNOR AND THE 1,317
GENERAL ASSEMBLY A REPORT SUMMARIZING THE REVIEW. 1,318
Sec. 742.26. (A) As used in this section: 1,328
(1) "Actuarial present value" means the calculation under 1,330
which the probability of occurrence, based on a specified 1,331
mortality table, and the discount for future monetary growth at a 1,332
32
specified interest rate are considered by an actuary to determine 1,333
the value of an annuity. 1,334
(2) "Other system retirant" means a former member of the 1,336
public employees retirement system, state teachers retirement 1,337
system, school employees retirement system, state highway patrol 1,338
retirement system, or Cincinnati retirement system who is 1,339
receiving a disability benefit or an age and service or commuted 1,340
age and service retirement benefit or allowance from a system of 1,341
which the person is a former member. 1,342
(3) "OPFPF retirant" means any person who is receiving a 1,345
retirement allowance, other than a disability benefit, from the 1,346
Ohio police and fire pension fund. 1,347
(B) The mortality table and interest rate used in 1,349
determining actuarial present value shall be determined by the 1,350
board of trustees of the fund based on the recommendations of an 1,351
actuary employed by the board. 1,352
(C)(1) An OPFPF retirant or other system retirant may be 1,355
employed as a member of a police or fire department. If so 1,356
employed, the retirant shall make contributions to the fund in 1,358
accordance with section 742.31 of the Revised Code, and the 1,359
employer shall make contributions in accordance with sections 1,360
742.33 and 742.34 of the Revised Code. 1,361
(2) An employer that employs An OPFPF retirant or other 1,364
system retirant shall notify the board of trustees of the fund of 1,365
the employment not later than the end of the month in which the 1,366
employment commences. On receipt of notice from an employer that 1,367
a person who is an other system retirant has been employed, the 1,368
fund shall notify the retirement system of which the other system 1,369
retirant was a member of such employment. 1,370
(D) An OPFPF retirant or other system retirant who has 1,373
received a retirement allowance or benefit for less than two 1,374
months when employment subject to this section commences shall 1,375
forfeit the retirement allowance or benefit for the period that 1,377
begins on the date the employment commences and ends on the date
33
that is two months after the date on which the retirement 1,378
allowance or benefit commenced. Service and contributions for 1,379
that period shall not be included in the calculation of any 1,380
benefits payable under this section, and those contributions 1,381
shall be refunded on the retirant's death or termination of the 1,383
employment.
(E) On receipt of notice from the public employees 1,385
retirement system, school employees retirement system, or state 1,386
teachers retirement system of the re-employment of an OPFPF 1,388
retirant, the Ohio police and fire pension fund shall not pay, or 1,390
if paid shall recover, the amount to be forfeited by the OPFPF 1,391
retirant in accordance with section 145.38, 3307.381 3307.35, or 1,393
3309.341 of the Revised Code.
(F)(1)(a) On termination of employment under this section, 1,395
an OPFPF retirant or other system retirant shall elect one of the 1,397
following: 1,398
(i) A monthly annuity the actuarial present value of which 1,400
is equal to two times the sum of all amounts deducted from the 1,401
salary of the OPFPF retirant or other system retirant and 1,403
credited to the retirant's individual account in the fund, 1,404
together with interest credited thereon at the rate determined by 1,406
the board, provided the annuity equals or exceeds twenty-five 1,407
dollars per month. 1,408
(ii) A lump-sum payment equal to two times the sum of all 1,410
amounts deducted from the salary of the OPFPF retirant or other 1,412
system retirant and credited to the retirant's individual account 1,414
in the fund, together with interest credited thereon at the rate 1,415
determined by the board. 1,416
(b) Interest shall be credited to accounts only at the 1,418
time of calculation of a benefit payable under division (F)(1) of 1,419
this section. 1,420
(2) A benefit payable under this division shall commence 1,422
on the first day of the month immediately after the latest of the 1,423
following: 1,424
34
(a) The last day for which compensation for employment 1,426
subject to this section was paid; 1,427
(b) Attainment by the OPFPF retirant or other system 1,430
retirant of age sixty; 1,431
(c) If the OPFPF retirant or other system retirant was 1,434
previously employed under this section and is receiving or 1,435
previously received a benefit under this division, completion of 1,436
a period of twelve months since the last benefit paid under this 1,437
section commenced. 1,438
(3) No amount received under this division shall be 1,440
included in determining an additional benefit under section 1,441
742.3711, 742.3716, or 742.3717 of the Revised Code or any other 1,442
post-retirement benefit increase. 1,443
(G)(1) If an OPFPF retirant or other system retirant dies 1,446
while employed in employment subject to this section, a lump-sum 1,447
payment calculated in accordance with division (F)(1)(a)(ii) of 1,448
this section shall be paid to the retirant's surviving spouse, or 1,450
if there is no surviving spouse, to the retirant's estate. 1,451
(2) If at the time of death an OPFPF retirant or other 1,454
system retirant receiving a monthly annuity under division 1,455
(F)(1)(a)(i) of this section has received less than would have 1,456
been received as a lump-sum payment under division (F)(1)(a)(ii) 1,457
of this section, the difference between the amount received and 1,459
the amount that would have been received as a lump-sum payment 1,462
shall be paid to the retirant's surviving spouse, or if there is 1,463
no surviving spouse, to the retirant's estate.
(H) An other system retirant subject to this section is 1,465
not a member of the Ohio police and fire pension fund, does not 1,467
have any of the rights, privileges, or obligations of membership, 1,468
except as specified in this section, and is not eligible to 1,469
receive health, medical, hospital, or surgical benefits under 1,470
section 742.45 of the Revised Code for employment subject to this 1,471
section.
(I) If any payment is made by the Ohio police and fire 1,474
35
pension fund to an OPFPF retirant or other system retirant to 1,476
which the retirant is not entitled, the retirant shall repay it 1,478
to the fund. If the retirant fails to make the repayment, the 1,479
fund shall withhold the amount due from any allowances or other 1,480
amounts due the OPFPF retirant or other system retirant. 1,481
(J) An OPFPF retirant who is employed under this section 1,485
is not eligible to receive any benefits under section 742.37 of 1,486
the Revised Code for the employment under this section. 1,487
(K) This section does not affect the receipt of benefits 1,489
by or eligibility for benefits of any person who on August 20, 1,490
1976, was receiving a disability benefit or service retirement 1,491
pension or allowance from a state or municipal retirement system 1,492
in Ohio and was a member of any other state or municipal 1,493
retirement system of this state. 1,494
(L) The board of trustees of the fund may adopt rules to 1,496
carry out this section. 1,497
Sec. 742.379. (A) As used in this section: 1,506
(1) "Full-time service" has the meaning established by 1,508
rule of the board of trustees of the Ohio police and fire pension 1,510
fund.
(2) "Qualified contributions" means contributions to the 1,512
public employees retirement system, school employees retirement 1,513
system, or state teachers retirement system attributable to 1,514
full-time service or purchase of credit for service in the armed 1,515
forces of the United States. 1,516
(B) In computing the pension and benefits payable under 1,518
section 742.37 or 742.39 of the Revised Code, the Ohio police and 1,520
fire pension fund shall give a member of the fund who is in the 1,521
active service of a police or fire department and is not 1,522
receiving a pension or benefit payment from the fund full credit 1,523
for service credit earned for full-time service as a member of 1,524
the Cincinnati retirement system or purchased from the retirement 1,525
system for service in the armed forces of the United States if, 1,527
for each year of service credit, the fund receives the sum of the 1,529
36
following:
(1) An amount, which shall be paid by the member, equal to 1,531
the amount withdrawn by the member from the retirement system 1,533
that is attributable to the year of service credit, with interest 1,534
on that amount from the date of withdrawal to the date of 1,536
payment;
(2) Interest, which shall be paid either by the member or 1,539
the retirement system, on the amount withdrawn by the member from 1,540
the retirement system that is attributable to the year of service
from the last day of the year for which the service credit was 1,542
earned or in which military service credit was purchased or 1,543
obtained to the date the withdrawal was made; 1,544
(3) An amount, which shall be paid by either the member or 1,547
the retirement system, equal to the lesser of the amount
contributed by the employer to the retirement system for the year 1,549
of service or the amount that would have been contributed by the 1,550
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 1,552
department, with interest on that amount from the last day of the 1,553
year for which the service credit was earned or in which military 1,554
service was purchased or obtained to the date the payment is 1,555
made;
(4) If the member became a member of the fund on or after 1,557
September 16, 1998, the amount, which shall be paid by the 1,560
member, determined pursuant to division (I) of this section. 1,561
Interest shall be determined in accordance with division 1,563
(H) of this section. 1,564
(C) In computing the pension and benefits payable under 1,567
section 742.37 or 742.39 of the Revised Code, the fund shall give 1,568
a member of the fund who is in the active service of a police or 1,570
fire department, is not receiving a pension or benefit payment 1,571
from the fund, and has withdrawn the member's contributions from 1,572
the public employees retirement system, school employees 1,573
retirement system, or state teachers retirement system full 1,574
37
credit for service credit earned for full-time service as a 1,575
member of the public employees retirement system, school 1,576
employees retirement system, or state teachers retirement system 1,577
or purchased from one of those retirement systems for service in 1,578
the armed forces of the United States if, for each year of 1,579
service, the fund receives the sum of the following: 1,581
(1) An amount, which shall be paid by the member, equal to 1,584
the amount withdrawn by the member from the former retirement 1,586
system that is attributable to that year of service credit, with 1,588
interest on that amount from the date of withdrawal to the date 1,589
of payment;
(2) Interest, which shall be transferred by the former 1,592
retirement system, on the amount withdrawn by the member from the 1,593
retirement system that is attributable to the year of service
from the last day of the year for which the service credit was 1,594
earned or in which military service credit was purchased or 1,595
obtained to the date the withdrawal was made; 1,596
(3) An amount, which shall be transferred by the former 1,599
retirement system, equal to the lesser of the amount contributed 1,600
by the employer to the retirement system for the year of service 1,601
or the amount that would have been contributed by the employer 1,602
for the year of service had the member been employed by the 1,603
member's current employer as a member of a police or fire 1,604
department, with interest on the amount transferred from the last 1,605
day of the year for which the service credit was earned or in 1,606
which military service credit was purchased or obtained to the 1,608
date the transfer is made;
(4) If the member became a member of the fund on or after 1,611
September 16, 1998, the amount, which shall be paid by the 1,613
member, determined pursuant to division (I) of this section. 1,614
On receipt of payment from the member, the fund shall 1,616
notify the former retirement system, and on receipt of the 1,617
notice, the retirement system shall make the transfer. Interest 1,618
shall be determined in accordance with division (H) of this 1,620
38
section.
(D) In computing the pension and benefits payable under 1,622
section 742.37 or 742.39 of the Revised Code, the fund shall give 1,624
a member of the fund who is in the active service of a police or 1,625
fire department, is not receiving a pension or benefit from the 1,626
fund, and has contributions on deposit with the public employees 1,627
retirement system, school employees retirement system, or state 1,628
teachers retirement system full credit for service credit earned 1,629
for full-time service as a member of one of those retirement 1,630
systems or purchased from one of the retirement systems for 1,631
service in the armed forces of the United States if both of the 1,633
following occur: 1,634
(1) The retirement system transfers to the fund, for each 1,637
year of service, the sum of the following: 1,638
(a) An amount equal to the member's qualified 1,641
contributions;
(b) An amount equal to the lesser of the employer's 1,644
qualified contributions to the retirement system or the amount 1,645
that would have been contributed by the employer for the 1,646
full-time service had the member been employed by the member's 1,647
current employer as a member of a police or fire department; 1,648
(c) Interest on the amounts specified in divisions 1,650
(D)(1)(a) and (b) of this section from the last day of the year 1,652
for which the service credit was earned or in which military 1,653
service credit was purchased or obtained to the date the transfer 1,654
is made. 1,655
(2) If the member became a member of the fund on or after 1,658
September 16, 1998, the member pays the amount determined 1,660
pursuant to division (I) of this section. 1,661
On receipt of a request from the member, the appropriate 1,664
retirement system shall make the transfer specified in division 1,665
(D)(1) of this section. Interest shall be determined in 1,666
accordance with division (H) of this section. 1,667
(E) Subject to board rules, a member of the fund may 1,669
39
choose to purchase in any one payment only part of the credit the 1,670
member is eligible to purchase under division (B) or (C)(1) of 1,672
this section. 1,673
(F) At the request of the fund, the public employees 1,675
retirement system, school employees retirement system, state 1,676
teachers retirement system, or Cincinnati retirement system shall 1,677
certify to the fund a copy of the records of the service and 1,679
contributions of a member of the fund who seeks service credit 1,680
under this section. 1,681
(G) A member of the fund is ineligible to receive credit 1,684
under this section for service that is used in the calculation of 1,685
any retirement benefit currently being paid or payable in the 1,686
future to the member, or service rendered concurrently with any 1,687
other period for which service credit has already been granted. 1,688
(H) Interest charged under this section shall be 1,691
calculated separately for each year of service credit at the 1,692
lesser of the actuarial assumption rate for that year of the fund 1,693
or of the retirement system in which the credit was earned. The 1,694
interest shall be compounded annually. 1,695
The board may, by rule, establish procedures for the 1,697
receipt of service credit under this section. 1,698
(I) The amount to be paid pursuant to division (B)(4), 1,701
(C)(4), or (D)(2) of this section is the sum of the following: 1,702
(1) An amount equal to the difference between the amount 1,705
the member paid as employee contributions for the service and the 1,706
amount the member would have paid had the member been employed by 1,707
the member's current employer as a member of a police or fire 1,708
department;
(2) An amount equal to the difference between the amount 1,711
paid or transferred under division (B)(3), (C)(3), or (D)(1)(b) 1,712
of this section and the amount that would have been contributed 1,713
by the employer for the service had the member been employed by 1,714
the member's current employer as a member of a police or fire 1,716
department;
40
(3) Interest, determined in accordance with division (H) 1,719
of this section, on the amounts specified in divisions (I)(1) and 1,721
(2) of this section.
At the request of a member, in lieu of requiring payment of 1,724
all or part of the amount determined under this division the fund 1,725
may grant the member an amount of service credit under division 1,726
(B), (C), or (D) of this section that is less than the amount for 1,728
which the member is eligible. The service credit granted shall 1,729
be the same percentage of the service credit for which the member 1,730
is eligible that the amount the fund receives under division (B), 1,731
(C), or (D) of this section is of the total amount it would 1,733
receive under those divisions if the full amount determined under 1,734
this division was paid.
(J)(1) Except as provided in division (J)(2) of this 1,737
section and notwithstanding any contrary provision of this
section, the board shall, in computing a pension or benefit under 1,739
section 742.37 or 742.39 of the Revised Code, give a member of 1,740
the fund who is not receiving a pension or disability benefit 1,741
from the fund full credit for service credit purchased under this 1,742
section for service that was less than full-time service if the 1,743
member provides evidence satisfactory to the board that, after 1,744
receiving written notice from the fund indicating that the member 1,746
would be permitted to purchase service credit for service that
was less than full-time, the member changed or ceased the 1,747
member's employment with the understanding that the credit 1,748
identified in the notice would be used in computing a pension or 1,749
benefit. If the board has canceled service credit purchased 1,751
under this section for service that was less than full-time 1,752
service and the member meets the requirements of division (J)(1) 1,753
of this section, the board shall restore the service credit on 1,754
repayment to the fund of the amount refunded to the member at the 1,756
time of cancellation.
(2) If a member of the fund who is not receiving a pension 1,759
or disability benefit from the fund purchased credit under this 1,760
41
section for service that was less than full-time service and does 1,761
not meet the requirements of division (J)(1) of this section, the 1,762
board shall refund to the member any amounts paid to purchase the 1,764
credit, with interest at a rate determined by the board from the 1,765
date the member purchased the credit to the date of the refund. 1,766
(K) A member of the fund who has purchased service credit 1,768
under this section, or the member's estate, is entitled to a 1,769
refund of the amount or portion of the amount paid to purchase 1,770
the credit if the purchased credit or portion of credit does not 1,771
increase a pension or benefit payable under section 742.37 or 1,772
742.39 of the Revised Code. The refund cancels an equivalent 1,773
amount of service credit. 1,774
(L) If a member or former member of the fund who is not a 1,776
current contributor and has not received a refund of accumulated 1,778
contributions elects to receive credit under section 145.295, 1,779
3307.412 3307.761, or 3309.351 of the Revised Code for service 1,780
for which the member contributed to the fund or purchased credit 1,781
for service in the armed forces of the United States, the fund 1,782
shall transfer to the public employees retirement system, school 1,784
employees retirement system, or state teachers retirement system 1,785
the amount specified in division (A) of section 145.295 of the 1,786
Revised Code, division (A) of section 3307.412 3307.761 of the 1,787
Revised Code, or division (A) of section 3309.351 of the Revised 1,789
Code.
(M) The board shall adopt rules establishing a payroll 1,792
deduction plan for the purchase of service credit under this 1,793
section. The rules shall meet the requirements described in
section 742.56 of the Revised Code. 1,795
Sec. 742.3721. THE BOARD OF TRUSTEES OF THE OHIO POLICE 1,797
AND FIRE PENSION FUND MAY ESTABLISH AND MAINTAIN A QUALIFIED 1,798
GOVERNMENTAL EXCESS BENEFIT ARRANGEMENT THAT MEETS THE
REQUIREMENTS OF DIVISION (m) OF SECTION 415 OF THE "INTERNAL 1,799
REVENUE CODE OF 1986," 100 STAT. 2085, 26 U.S.C.A. 415, AS 1,802
AMENDED, AND ANY REGULATIONS ADOPTED THEREUNDER. IF ESTABLISHED, 1,803
42
THE ARRANGEMENT SHALL BE A SEPARATE PORTION OF THE FUND AND BE 1,804
MAINTAINED SOLELY FOR THE PURPOSE OF PROVIDING TO RETIRED MEMBERS 1,805
THAT PART OF A BENEFIT OTHERWISE PAYABLE UNDER THIS CHAPTER THAT 1,806
EXCEEDS THE LIMITS ESTABLISHED BY SECTION 415 OF THE "INTERNAL 1,807
REVENUE CODE OF 1986," AS AMENDED.
MEMBERS PARTICIPATING IN AN ARRANGEMENT ESTABLISHED UNDER 1,809
THIS SECTION SHALL NOT BE PERMITTED TO ELECT TO DEFER 1,810
COMPENSATION TO THE ARRANGEMENT. CONTRIBUTIONS TO AND BENEFITS 1,811
PAID UNDER AN ARRANGEMENT SHALL NOT BE PAYABLE FROM A TRUST THAT 1,812
IS PART OF THE FUND UNLESS THE TRUST IS MAINTAINED SOLELY FOR THE 1,813
PURPOSE OF PROVIDING SUCH BENEFITS. 1,814
THE BOARD SHALL ADOPT RULES TO ADMINISTER AN ARRANGEMENT 1,816
ESTABLISHED UNDER THIS SECTION. 1,817
Sec. 2329.66. (A) Every person who is domiciled in this 1,826
state may hold property exempt from execution, garnishment, 1,827
attachment, or sale to satisfy a judgment or order, as follows: 1,828
(1)(a) In the case of a judgment or order regarding money 1,830
owed for health care services rendered or health care supplies 1,831
provided to the person or a dependent of the person, one parcel 1,832
or item of real or personal property that the person or a 1,833
dependent of the person uses as a residence. Division (A)(1)(a) 1,834
of this section does not preclude, affect, or invalidate the 1,835
creation under this chapter of a judgment lien upon the exempted 1,836
property but only delays the enforcement of the lien until the 1,837
property is sold or otherwise transferred by the owner or in 1,838
accordance with other applicable laws to a person or entity other 1,839
than the surviving spouse or surviving minor children of the 1,840
judgment debtor. Every person who is domiciled in this state may 1,841
hold exempt from a judgment lien created pursuant to division 1,842
(A)(1)(a) of this section the person's interest, not to exceed 1,843
five thousand dollars, in the exempted property. 1,844
(b) In the case of all other judgments and orders, the 1,846
person's interest, not to exceed five thousand dollars, in one 1,847
parcel or item of real or personal property that the person or a 1,848
43
dependent of the person uses as a residence. 1,849
(2) The person's interest, not to exceed one thousand 1,851
dollars, in one motor vehicle; 1,852
(3) The person's interest, not to exceed two hundred 1,854
dollars in any particular item, in wearing apparel, beds, and 1,855
bedding, and the person's interest, not to exceed three hundred 1,856
dollars in each item, in one cooking unit and one refrigerator or 1,857
other food preservation unit; 1,858
(4)(a) The person's interest, not to exceed four hundred 1,860
dollars, in cash on hand, money due and payable, money to become 1,861
due within ninety days, tax refunds, and money on deposit with a 1,862
bank, savings and loan association, credit union, public utility, 1,863
landlord, or other person. Division (A)(4)(a) of this section 1,864
applies only in bankruptcy proceedings. This exemption may 1,865
include the portion of personal earnings that is not exempt under 1,866
division (A)(13) of this section. 1,867
(b) Subject to division (A)(4)(d) of this section, the 1,869
person's interest, not to exceed two hundred dollars in any 1,870
particular item, in household furnishings, household goods, 1,871
appliances, books, animals, crops, musical instruments, firearms, 1,872
and hunting and fishing equipment, that are held primarily for 1,873
the personal, family, or household use of the person; 1,874
(c) Subject to division (A)(4)(d) of this section, the 1,876
person's interest in one or more items of jewelry, not to exceed 1,877
four hundred dollars in one item of jewelry and not to exceed two 1,878
hundred dollars in every other item of jewelry; 1,879
(d) Divisions (A)(4)(b) and (c) of this section do not 1,881
include items of personal property listed in division (A)(3) of 1,882
this section. 1,883
If the person does not claim an exemption under division 1,885
(A)(1) of this section, the total exemption claimed under 1,886
division (A)(4)(b) of this section shall be added to the total 1,887
exemption claimed under division (A)(4)(c) of this section, and 1,888
the total shall not exceed two thousand dollars. If the person 1,889
44
claims an exemption under division (A)(1) of this section, the 1,890
total exemption claimed under division (A)(4)(b) of this section 1,891
shall be added to the total exemption claimed under division 1,892
(A)(4)(c) of this section, and the total shall not exceed one 1,893
thousand five hundred dollars. 1,894
(5) The person's interest, not to exceed an aggregate of 1,896
seven hundred fifty dollars, in all implements, professional 1,897
books, or tools of the person's profession, trade, or business, 1,898
including agriculture; 1,900
(6)(a) The person's interest in a beneficiary fund set 1,902
apart, appropriated, or paid by a benevolent association or 1,903
society, as exempted by section 2329.63 of the Revised Code; 1,904
(b) The person's interest in contracts of life or 1,906
endowment insurance or annuities, as exempted by section 3911.10 1,907
of the Revised Code; 1,908
(c) The person's interest in a policy of group insurance 1,910
or the proceeds of a policy of group insurance, as exempted by 1,911
section 3917.05 of the Revised Code; 1,912
(d) The person's interest in money, benefits, charity, 1,914
relief, or aid to be paid, provided, or rendered by a fraternal 1,915
benefit society, as exempted by section 3921.18 of the Revised 1,916
Code; 1,917
(e) The person's interest in the portion of benefits under 1,919
policies of sickness and accident insurance and in lump-sum 1,920
payments for dismemberment and other losses insured under those 1,921
policies, as exempted by section 3923.19 of the Revised Code. 1,922
(7) The person's professionally prescribed or medically 1,924
necessary health aids; 1,925
(8) The person's interest in a burial lot, including, but 1,927
not limited to, exemptions under section 517.09 or 1721.07 of the 1,928
Revised Code; 1,929
(9) The person's interest in the following: 1,931
(a) Moneys paid or payable for living maintenance or 1,933
rights, as exempted by section 3304.19 of the Revised Code; 1,934
45
(b) Workers' compensation, as exempted by section 4123.67 1,937
of the Revised Code; 1,938
(c) Unemployment compensation benefits, as exempted by 1,940
section 4141.32 of the Revised Code; 1,941
(d) Cash assistance payments under the Ohio works first 1,943
program, as exempted by section 5107.75 of the Revised Code; 1,945
(e) Disability assistance payments, as exempted by section 1,947
5115.07 of the Revised Code. 1,948
(10)(a) Except in cases in which the person was convicted 1,950
of or pleaded guilty to a violation of section 2921.41 of the 1,951
Revised Code and in which an order for the withholding of 1,952
restitution from payments was issued under division (C)(2)(b) of 1,953
that section or in cases in which an order for withholding was 1,954
issued under section 2907.15 of the Revised Code, and only to the 1,955
extent provided in the order, and except as provided in sections 1,959
3105.171, 3105.63, 3111.23, and 3113.21 of the Revised Code, the 1,961
person's right to a pension, benefit, annuity, retirement 1,962
allowance, or accumulated contributions, the person's right to a 1,963
participant account in any deferred compensation program offered 1,964
by the Ohio public employees deferred compensation board, a 1,965
government unit, or a municipal corporation, or the person's 1,966
other accrued or accruing rights, as exempted by section 145.56, 1,967
145.75, 146.13, 742.47, 3307.71 3307.41, 3309.66, or 5505.22 of 1,968
the Revised Code, and the person's right to benefits from the 1,970
Ohio public safety officers death benefit fund; 1,972
(b) Except as provided in sections 3111.23 and 3113.21 of 1,975
the Revised Code, the person's right to receive a payment under 1,976
any pension, annuity, or similar plan or contract, not including 1,977
a payment from a stock bonus or profit-sharing plan or a payment 1,978
included in division (A)(6)(b) or (10)(a) of this section, on 1,979
account of illness, disability, death, age, or length of service, 1,980
to the extent reasonably necessary for the support of the person 1,981
and any of the person's dependents, except if all the following 1,982
apply: 1,983
46
(i) The plan or contract was established by or under the 1,985
auspices of an insider that employed the person at the time the 1,986
person's rights under the plan or contract arose. 1,987
(ii) The payment is on account of age or length of 1,989
service. 1,990
(iii) The plan or contract is not qualified under the 1,992
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C. 1, as 1,993
amended. 1,994
(c) Except for any portion of the assets that were 1,996
deposited for the purpose of evading the payment of any debt and 1,997
except as provided in sections 3111.23 and 3113.21 of the Revised 1,999
Code, the person's right in the assets held in, or to receive any 2,001
payment under, any individual retirement account, individual 2,002
retirement annuity, "Roth IRA," or education individual 2,003
retirement account that provides benefits by reason of illness, 2,005
disability, death, or age, to the extent that the assets, 2,006
payments, or benefits described in division (A)(10)(c) of this 2,007
section are attributable to any of the following: 2,008
(i) Contributions of the person that were less than or 2,011
equal to the applicable limits on deductible contributions to an 2,012
individual retirement account or individual retirement annuity in 2,013
the year that the contributions were made, whether or not the 2,014
person was eligible to deduct the contributions on the person's 2,015
federal tax return for the year in which the contributions were 2,016
made;
(ii) Contributions of the person that were less than or 2,019
equal to the applicable limits on contributions to a Roth IRA or 2,020
education individual retirement account in the year that the 2,021
contributions were made;
(iii) Contributions of the person that are within the 2,024
applicable limits on rollover contributions under subsections 2,025
219, 402(c), 403(a)(4), 403(b)(8), 408(b), 408(d)(3), 2,026
408A(c)(3)(B), 408A(d)(3), and 530(d)(5) of the "Internal Revenue 2,029
Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended. 2,031
47
(d) Except for any portion of the assets that were 2,034
deposited for the purpose of evading the payment of any debt and 2,035
except as provided in sections 3111.23 and 3113.21 of the Revised 2,036
Code, the person's right in the assets held in, or to receive any 2,037
payment under, any Keogh or "H.R. 10" plan that provides benefits 2,038
by reason of illness, disability, death, or age, to the extent 2,039
reasonably necessary for the support of the person and any of the 2,040
person's dependents. 2,041
(11) The person's right to receive spousal support, child 2,043
support, an allowance, or other maintenance to the extent 2,044
reasonably necessary for the support of the person and any of the 2,045
person's dependents; 2,047
(12) The person's right to receive, or moneys received 2,049
during the preceding twelve calendar months from, any of the 2,050
following: 2,051
(a) An award of reparations under sections 2743.51 to 2,053
2743.72 of the Revised Code, to the extent exempted by division 2,054
(D) of section 2743.66 of the Revised Code; 2,055
(b) A payment on account of the wrongful death of an 2,057
individual of whom the person was a dependent on the date of the 2,058
individual's death, to the extent reasonably necessary for the 2,059
support of the person and any of the person's dependents; 2,060
(c) Except in cases in which the person who receives the 2,062
payment is an inmate, as defined in section 2969.21 of the 2,063
Revised Code, and in which the payment resulted from a civil 2,064
action or appeal against a government entity or employee, as 2,065
defined in section 2969.21 of the Revised Code, a payment, not to
exceed five thousand dollars, on account of personal bodily 2,067
injury, not including pain and suffering or compensation for 2,068
actual pecuniary loss, of the person or an individual for whom 2,069
the person is a dependent;
(d) A payment in compensation for loss of future earnings 2,071
of the person or an individual of whom the person is or was a 2,072
dependent, to the extent reasonably necessary for the support of 2,073
48
the debtor and any of the debtor's dependents. 2,074
(13) Except as provided in sections 3111.23 and 3113.21 of 2,077
the Revised Code, personal earnings of the person owed to the
person for services in an amount equal to the greater of the 2,078
following amounts: 2,079
(a) If paid weekly, thirty times the current federal 2,081
minimum hourly wage; if paid biweekly, sixty times the current 2,082
federal minimum hourly wage; if paid semimonthly, sixty-five 2,083
times the current federal minimum hourly wage; or if paid 2,084
monthly, one hundred thirty times the current federal minimum 2,085
hourly wage that is in effect at the time the earnings are 2,086
payable, as prescribed by the "Fair Labor Standards Act of 1938," 2,087
52 Stat. 1060, 29 U.S.C. 206(a)(1), as amended; 2,088
(b) Seventy-five per cent of the disposable earnings owed 2,090
to the person. 2,091
(14) The person's right in specific partnership property, 2,093
as exempted by division (B)(3) of section 1775.24 of the Revised 2,094
Code; 2,095
(15) A seal and official register of a notary public, as 2,097
exempted by section 147.04 of the Revised Code; 2,098
(16) The person's interest in a tuition credit or a 2,100
payment under section 3334.09 of the Revised Code pursuant to a 2,101
tuition credit contract, as exempted by section 3334.15 of the 2,102
Revised Code;
(17) Any other property that is specifically exempted from 2,104
execution, attachment, garnishment, or sale by federal statutes 2,105
other than the "Bankruptcy Reform Act of 1978," 92 Stat. 2549, 11 2,106
U.S.C.A. 101, as amended; 2,107
(18) The person's interest, not to exceed four hundred 2,109
dollars, in any property, except that division (A)(18) of this 2,110
section applies only in bankruptcy proceedings. 2,111
(B) As used in this section: 2,113
(1) "Disposable earnings" means net earnings after the 2,115
garnishee has made deductions required by law, excluding the 2,116
49
deductions ordered pursuant to section 3111.23 or 3113.21 of the 2,118
Revised Code. 2,119
(2) "Insider" means: 2,121
(a) If the person who claims an exemption is an 2,123
individual, a relative of the individual, a relative of a general 2,124
partner of the individual, a partnership in which the individual 2,125
is a general partner, a general partner of the individual, or a 2,126
corporation of which the individual is a director, officer, or in 2,127
control; 2,128
(b) If the person who claims an exemption is a 2,130
corporation, a director or officer of the corporation; a person 2,131
in control of the corporation; a partnership in which the 2,132
corporation is a general partner; a general partner of the 2,133
corporation; or a relative of a general partner, director, 2,134
officer, or person in control of the corporation; 2,135
(c) If the person who claims an exemption is a 2,137
partnership, a general partner in the partnership; a general 2,138
partner of the partnership; a person in control of the 2,139
partnership; a partnership in which the partnership is a general 2,140
partner; or a relative in, a general partner of, or a person in 2,141
control of the partnership; 2,142
(d) An entity or person to which or whom any of the 2,144
following applies: 2,145
(i) The entity directly or indirectly owns, controls, or 2,147
holds with power to vote, twenty per cent or more of the 2,148
outstanding voting securities of the person who claims an 2,149
exemption, unless the entity holds the securities in a fiduciary 2,150
or agency capacity without sole discretionary power to vote the 2,151
securities or holds the securities solely to secure to debt and 2,152
the entity has not in fact exercised the power to vote. 2,153
(ii) The entity is a corporation, twenty per cent or more 2,155
of whose outstanding voting securities are directly or indirectly 2,156
owned, controlled, or held with power to vote, by the person who 2,157
claims an exemption or by an entity to which division 2,158
50
(B)(2)(d)(i) of this section applies. 2,159
(iii) A person whose business is operated under a lease or 2,161
operating agreement by the person who claims an exemption, or a 2,162
person substantially all of whose business is operated under an 2,163
operating agreement with the person who claims an exemption. 2,164
(iv) The entity operates the business or all or 2,166
substantially all of the property of the person who claims an 2,167
exemption under a lease or operating agreement. 2,168
(e) An insider, as otherwise defined in this section, of a 2,170
person or entity to which division (B)(2)(d)(i), (ii), (iii), or 2,171
(iv) of this section applies, as if the person or entity were a 2,172
person who claims an exemption; 2,173
(f) A managing agent of the person who claims an 2,175
exemption. 2,176
(3) "Participant account" has the same meaning as in 2,178
section 145.71 of the Revised Code. 2,179
(4) "Government unit" has the same meaning as in section 2,181
145.74 of the Revised Code. 2,182
(C) For purposes of this section, "interest" shall be 2,184
determined as follows: 2,185
(1) In bankruptcy proceedings, as of the date a petition 2,187
is filed with the bankruptcy court commencing a case under Title 2,188
11 of the United States Code; 2,189
(2) In all cases other than bankruptcy proceedings, as of 2,191
the date of an appraisal, if necessary under section 2329.68 of 2,192
the Revised Code, or the issuance of a writ of execution. 2,193
An interest, as determined under division (C)(1) or (2) of 2,195
this section, shall not include the amount of any lien otherwise 2,196
valid pursuant to section 2329.661 of the Revised Code. 2,197
Sec. 3305.01. As used in this chapter: 2,206
(A) "Public institution of higher education" means a state 2,209
university as defined in section 3345.011 of the Revised Code, 2,210
the medical college of Ohio at Toledo, the northeastern Ohio 2,211
universities college of medicine, or a university branch, 2,212
51
technical college, state community college, community college, or 2,213
municipal university established or operating under Chapter 2,214
3345., 3349., 3355., 3357., or 3358. of the Revised Code. 2,215
(B) "State retirement system" means the public employees 2,218
retirement system created under Chapter 145. of the Revised Code, 2,219
the state teachers retirement system created under Chapter 3307. 2,221
of the Revised Code, or the school employees retirement system 2,223
created under Chapter 3309. of the Revised Code. 2,224
(C) "Academic or administrative employee" means any 2,227
full-time employee who is a member of the faculty or 2,228
administrative staff of a public institution of higher education 2,229
serving in a position in the unclassified civil service pursuant 2,230
to section 124.11 of the Revised Code and is not receiving any 2,231
benefit, allowance, or other payment from a state retirement 2,232
system. In all cases of doubt, the board of trustees of the 2,233
public institution of higher education shall determine whether 2,234
any person is an academic or administrative employee for purposes 2,236
of this chapter, and the board's decision shall be final. 2,237
(D) "Electing employee" means any academic or 2,239
administrative employee who elects, pursuant to section 3305.05 2,240
of the Revised Code, to participate in an alternative retirement 2,241
plan provided pursuant to this chapter.
(E) An electing employee is "continuously employed" if no 2,243
more than one year intervenes between each period of employment 2,245
by a public institution of higher education in a position for 2,246
which three or more alternative retirement plans are available 2,247
under this chapter.
(F) "Compensation," for purposes of an electing employee, 2,249
has the same meaning as the applicable one of the following: 2,250
(1) If the electing employee would be subject to Chapter 2,252
145. of the Revised Code had the employee not made an election 2,253
pursuant to section 3305.05 of the Revised Code, "earnable 2,255
salary" as defined in division (R) of section 145.01 of the
Revised Code; 2,256
52
(2) If the electing employee would be subject to Chapter 2,258
3307. of the Revised Code had the employee not made an election 2,259
pursuant to section 3305.05 of the Revised Code, "compensation" 2,261
as defined in division (U)(L) of section 3307.01 of the Revised 2,262
Code; 2,263
(3) If the electing employee would be subject to Chapter 2,265
3309. of the Revised Code had the employee not made an election 2,266
pursuant to section 3305.05 of the Revised Code, "compensation" 2,268
as defined in division (V) of section 3309.01 of the Revised
Code. 2,269
Sec. 3305.06. (A) Each electing employee shall contribute 2,278
an amount, which shall be a certain percentage of the employee's 2,279
compensation, to the alternative retirement plan in which the 2,280
employee participates. This percentage shall be the percentage 2,281
the electing employee would have otherwise been required to 2,282
contribute to the state retirement system that applies to the
employee's position, except that the percentage shall not be less 2,283
than three per cent. Employee contributions under this division 2,284
may be treated as employer contributions in accordance with 2,285
Internal Revenue Code 414(h). 2,286
(B) Each public institution of higher education employing 2,288
an electing employee shall contribute an amount, which shall be a 2,289
certain percentage of the employee's compensation, to the 2,290
alternative retirement plan the employee has elected. This 2,291
percentage shall be determined by the board of trustees of the 2,292
public institution.
(C)(1) In no event shall the amount contributed by the 2,295
electing employee pursuant to division (A) of this section and on 2,296
the electing employee's behalf pursuant to division (B) of this
section be less than the amount necessary to qualify the plan as 2,297
a state retirement system pursuant to Internal Revenue Code 2,298
3121(B)(7) and the regulations adopted thereunder. 2,299
(2) The full amount of the electing employee's 2,301
contribution under division (A) of this section and the full 2,302
53
amount of the employer's contribution made on behalf of that 2,303
employee under division (B) of this section shall be paid to the 2,304
entity providing the employee's alternative retirement plan for 2,305
application to that plan in accordance with any contract the 2,306
electing employee has entered into for purposes of that plan. In
no event shall any benefits be paid under that plan prior to the 2,307
time an electing employee ceases to be continuously employed. 2,308
(D) An electing employee may make voluntary deposits to 2,310
the employee's alternative retirement plan in addition to the 2,311
employee contribution required under division (A) of this 2,313
section.
(E) Each public institution of higher education employing 2,315
an electing employee shall contribute on behalf of that employee 2,316
to the state retirement system that otherwise applies to the 2,317
electing employee's position an amount equal to six per cent of 2,318
the electing employee's compensation to mitigate any negative 2,319
financial impact of the alternative retirement program on the 2,321
state retirement system; provided that on the first day of July
following the first year after the department of insurance 2,323
designates an alternative retirement plan under section 3305.03 2,324
of the Revised Code and every third year thereafter, the Ohio
retirement study council shall cause an independent actuarial 2,327
study to be completed and submitted to the Ohio board of regents. 2,328
The study shall determine any adjustments in contributions
necessary to reflect any change in the level of the negative 2,329
financial impact resulting from the establishment of the 2,330
alternative retirement program. The amount contributed to the 2,332
state retirement system pursuant to this division shall be
increased or decreased to reflect the amount needed to mitigate 2,333
the negative financial impact, if any, on the system, as 2,334
determined by each actuarial study. Any increase or decrease in 2,335
contributions shall become effective on the first day of July in 2,336
the year in which the actuarial study is completed. 2,337
Contributions on behalf of an electing employee shall continue in 2,338
54
accordance with this division until the occurrence of the 2,339
following:
(1) If the electing employee would be subject to Chapter 2,341
145. of the Revised Code had the employee not made an election 2,342
pursuant to section 3305.05 of the Revised Code, until the 2,344
unfunded actuarial accrued liability for all benefits, except 2,346
health care benefits provided under section 145.325 or 145.58 of 2,347
the Revised Code, is fully amortized, as determined by the annual 2,348
actuarial valuation prepared under section 145.22 of the Revised 2,349
Code;
(2) If the electing employee would be subject to Chapter 2,351
3307. of the Revised Code had the employee not made an election 2,352
pursuant to section 3305.05 of the Revised Code, until the 2,353
unfunded actuarial accrued liability for all benefits, except 2,354
health care benefits provided under section 3307.405 3307.39 or 2,355
3307.74 3307.61 of the Revised Code, is fully amortized, as 2,357
determined by the annual actuarial valuation prepared under
section 3307.20 3307.51 of the Revised Code; 2,358
(3) If the electing employee would be subject to Chapter 2,360
3309. of the Revised Code had the employee not made an election 2,361
pursuant to section 3305.05 of the Revised Code, until the 2,362
unfunded actuarial accrued liability for all benefits, except 2,363
health care benefits provided under section 3309.375 or 3309.69 2,364
of the Revised Code, is fully amortized, as determined by the 2,365
annual actuarial valuation prepared under section 3309.21 of the 2,366
Revised Code.
Sec. 3307.01. As used in this chapter: 2,375
(A) "Employer" means the board of education, school 2,377
district, governing authority of any community school established 2,378
under Chapter 3314. of the Revised Code, college, university, 2,379
institution, or other agency within the state by which a teacher 2,381
is employed and paid.
(B) "Teacher" means any ALL OF THE FOLLOWING: 2,383
(1) ANY person paid from public funds and employed in the 2,386
55
public schools of the state under any type of contract described 2,387
in section 3319.08 of the Revised Code in a position for which 2,388
the person is required to have a license issued pursuant to 2,390
sections 3319.22 to 3319.31 of the Revised Code; any
(2) ANY person employed as a teacher by a community school 2,393
pursuant to Chapter 3314. of the Revised Code; and any 2,395
(3) ANY PERSON HOLDING AN INTERNSHIP CERTIFICATE ISSUED 2,398
UNDER SECTION 3319.28 OF THE REVISED CODE AND EMPLOYED IN A 2,400
PUBLIC SCHOOL IN THIS STATE;
(4) ANY PERSON HAVING A LICENSE ISSUED PURSUANT TO 2,403
SECTIONS 3319.22 TO 3319.31 OF THE REVISED CODE AND EMPLOYED IN A 2,404
PUBLIC SCHOOL IN THIS STATE IN AN EDUCATIONAL POSITION, AS 2,406
DETERMINED BY THE STATE BOARD OF EDUCATION, UNDER PROGRAMS
PROVIDED FOR BY FEDERAL ACTS OR REGULATIONS AND FINANCED IN WHOLE 2,407
OR IN PART FROM FEDERAL FUNDS, BUT FOR WHICH NO LICENSURE 2,408
REQUIREMENTS FOR THE POSITION CAN BE MADE UNDER THE PROVISIONS OF 2,409
SUCH FEDERAL ACTS OR REGULATIONS;
(5) ANY other teacher or faculty member employed in any 2,411
school, college, university, institution, or other agency wholly 2,413
controlled and managed, and supported in whole or in part, by the 2,414
state or any political subdivision thereof, including Central 2,415
state university, Cleveland state university, the university of 2,416
Toledo, and the medical college of Ohio at Toledo.; 2,417
(6) The educational employees of the department of 2,420
education, as determined by the state superintendent of public 2,421
instruction, shall be considered teachers for the purpose of 2,422
membership in this system. In 2,423
IN all cases of doubt, the state teachers retirement board 2,426
shall determine whether any person is a teacher, and its decision 2,427
shall be final.
"Teacher" does not include any academic or administrative 2,429
employee of a public institution of higher education, as defined 2,430
in section 3305.01 of the Revised Code, who participates in an 2,431
alternative retirement plan established under Chapter 3305. of 2,432
56
the Revised Code.
(C) "Prior service" means all service as a teacher before 2,434
September 1, 1920, military service credit, all service prior to 2,435
September 1, 1920, as an employee of any employer who comes 2,436
within the public employees retirement system, the school 2,437
employees retirement system, or any other state retirement system 2,438
established under the laws of Ohio, and similar service in 2,439
another state, credit for which was procured by a member under 2,440
section 3307.33 of the Revised Code, prior to June 25, 1945. 2,441
Prior service credit shall not be granted to any member for 2,442
service for which credit or benefits have been received in any 2,443
other state retirement system in Ohio or for credit that was 2,444
forfeited by withdrawal of contributions, unless the credit has 2,445
been restored. If the teacher served as an employee in any two 2,446
or all of the capacities, "prior service" means the total 2,447
combined service in the capacities prior to September 1, 1920. 2,448
If a teacher who has been granted prior service credit for 2,450
service rendered prior to September 1, 1920, as an employee of an 2,451
employer who comes within the public employees retirement system 2,452
or the school employees retirement system, establishes, 2,453
subsequent to September 16, 1957, and before retirement, three 2,454
years of contributing service in the public employees retirement 2,455
system, or one year in the school employees retirement system, 2,456
the prior service credit granted shall become, at retirement, the 2,458
liability of the other system if the prior service or employment 2,460
was in a capacity covered by that system.
(D) "Total service," "total service credit," except as 2,462
provided in section 3307.41 of the Revised Code, or "Ohio service 2,463
credit" means all service of a member of the state teachers 2,464
retirement system since last becoming a member and, in addition 2,465
thereto, restored service credit under section 3307.28 of the 2,466
Revised Code, all prior service credit, all military service 2,468
credit computed as provided in this chapter, and all other 2,469
service credit established under sections 3307.22, 3307.31, 2,470
57
3307.311, 3307.32, 3307.35, 3307.411, 3307.412, 3307.51, 2,472
3307.512, 3307.513, 3307.514, 3307.515, and 3307.73 and former 2,474
section 3307.52 of the Revised Code, and Section 3 of Amended 2,475
Substitute Senate Bill No. 530 of the 114th general assembly. 2,476
All service credit purchased under section 3307.33 of the Revised 2,477
Code shall be used exclusively for the purpose of qualifying for 2,478
service retirement. 2,479
(E) "Member" means any person included in the membership 2,481
of the state teachers retirement system, which shall consist of 2,482
all teachers and contributors as defined in divisions (B) and 2,484
(F)(D) of this section and all disability benefit recipients, AS 2,485
DEFINED IN SECTION 3307.50 OF THE REVISED CODE. However, for 2,487
purposes of this chapter, the following persons shall not be
considered members: 2,488
(1) A student, intern, or resident who is not a member 2,490
while employed part-time by a school, college, or university at 2,492
which the student, intern, or resident is regularly attending 2,493
classes;
(2) A person denied membership pursuant to section 3307.27 2,495
3307.24 of the Revised Code; 2,497
(3) A superannuate or AN other system retirant, as defined 2,500
in section 3307.381 3307.35 of the Revised Code, OR A 2,501
SUPERANNUATE; 2,502
(4) An individual employed in a program established 2,504
pursuant to the "Job Training Partnership Act," 96 Stat. 1322 2,505
(1982), 29 U.S.C.A. 1501. 2,506
(F)(D) "Contributor" means any person who has an account 2,508
in the teachers' savings fund OR DEFINED CONTRIBUTION FUND. 2,509
(G)(E) "Beneficiary" means any person eligible to receive, 2,511
or in receipt of, a retirement allowance or other benefit 2,513
provided by this chapter. 2,514
(H)(1) "Service retirement" means retirement as provided 2,516
in section 3307.38 or 3307.39 of the Revised Code. 2,517
(2) "Disability retirement" means retirement as provided 2,519
58
in section 3307.43 of the Revised Code. 2,520
(I) "Accumulated contributions" means the sum of all 2,522
amounts credited to a contributor's individual account in the 2,523
teachers' savings fund, together with interest credited thereon 2,524
at the rates approved by the state teachers retirement board 2,525
prior to retirement. 2,526
(J) "Annuity" means payments for life derived from 2,528
contributions made by a contributor and paid from the annuity and 2,529
pension reserve fund. All annuities shall be paid in twelve 2,530
equal monthly installments. 2,531
(K) "Pensions" means annual payments for life derived from 2,533
appropriations made by an employer and paid from the annuity and 2,534
pension reserve fund. All pensions shall be paid in twelve equal 2,535
monthly installments. 2,536
(L)(1) "Allowance" or "benefit" means the pension plus the 2,538
annuity, or any other payment under this chapter, and includes a 2,539
disability allowance or disability benefit. 2,540
(2) "Disability allowance" means an allowance paid on 2,542
account of disability under section 3307.431 of the Revised Code. 2,543
(3) "Disability benefit" means a benefit paid as 2,545
disability retirement under section 3307.43 of the Revised Code, 2,546
as a disability allowance under section 3307.431 of the Revised 2,547
Code, or as a disability benefit under section 3307.41 of the 2,548
Revised Code. 2,549
(M) "Annuity reserve" means the present value, computed 2,551
upon the basis of mortality tables adopted by the state teachers 2,552
retirement board with interest, of all payments to be made on 2,553
account of any annuity, or benefit in lieu of any annuity, 2,554
granted to a member. 2,555
(N) "Pension reserve" means the present value, computed 2,557
upon the basis of mortality tables adopted by the state teachers 2,558
retirement board with interest, of all payments to be made on 2,559
account of any pension, or benefit in lieu of any pension, 2,560
granted to a member or to a beneficiary. 2,561
59
(O)(F) "Year" means the year beginning the first day of 2,563
July and ending with the thirtieth day of June next following, 2,564
except that for the purpose of determining final average salary 2,565
UNDER THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE 2,566
REVISED CODE, "year" may mean the contract year. 2,568
(P)(G) "Local district pension system" means any school 2,570
teachers pension fund created in any school district of the state 2,571
in accordance with the laws of the state prior to September 1, 2,572
1920. 2,573
(Q)(H) "Employer contribution" means the amount paid by an 2,575
employer, as determined by the employer rate, including the 2,576
normal and deficiency rates, contributions, and funds wherever 2,577
used in this chapter. 2,578
(R)(I) "Five years of service credit," for the exclusive 2,581
purpose of satisfying the service credit requirements and 2,582
determining eligibility for benefits under section 3307.38 of the 2,583
Revised Code, means employment covered under this chapter and 2,584
employment covered under a former retirement plan operated, 2,585
recognized, or endorsed by a college, institute, university, or 2,586
political subdivision of this state prior to coverage under this 2,587
chapter. 2,588
(S)(J) "Actuary" means the actuarial consultant to the 2,590
state teachers retirement board, who shall be either of the 2,591
following:
(1) A member of the American academy of actuaries; 2,593
(2) A firm, partnership, or corporation of which at least 2,595
one person is a member of the American academy of actuaries. 2,596
(T)(K) "Fiduciary" means a person who does any of the 2,598
following: 2,599
(1) Exercises any discretionary authority or control with 2,601
respect to the management of the system, or with respect to the 2,602
management or disposition of its assets; 2,603
(2) Renders investment advice for a fee, direct or 2,605
indirect, with respect to money or property of the system; 2,606
60
(3) Has any discretionary authority or responsibility in 2,608
the administration of the system. 2,609
(U)(L)(1) Except as otherwise provided in this division, 2,612
"compensation" means all salary, wages, and other earnings paid 2,613
to a teacher by reason of the teacher's employment, including 2,614
compensation paid pursuant to a supplemental contract. The 2,615
salary, wages, and other earnings shall be determined prior to 2,616
determination of the amount required to be contributed to the 2,617
teachers' savings fund OR DEFINED CONTRIBUTION FUND under section 2,618
3307.51 3307.26 of the Revised Code and without regard to whether 2,621
any of the salary, wages, or other earnings are treated as 2,622
deferred income for federal income tax purposes.
(2) Compensation does not include any of the following: 2,624
(a) Payments for accrued but unused sick leave or personal 2,626
leave, including payments made under a plan established pursuant 2,627
to section 124.39 of the Revised Code or any other plan 2,628
established by the employer; 2,629
(b) Payments made for accrued but unused vacation leave, 2,631
including payments made pursuant to section 124.13 of the Revised 2,632
Code or a plan established by the employer; 2,633
(c) Payments made for vacation pay covering concurrent 2,635
periods for which other salary, compensation, or benefits under 2,636
this chapter are paid; 2,637
(d) Amounts paid by the employer to provide life 2,639
insurance, sickness, accident, endowment, health, medical, 2,640
hospital, dental, or surgical coverage, or other insurance for 2,641
the teacher or the teacher's family, or amounts paid by the 2,642
employer to the teacher in lieu of providing the insurance; 2,643
(e) Incidental benefits, including lodging, food, laundry, 2,645
parking, or services furnished by the employer, use of the 2,646
employer's property or equipment, and reimbursement for 2,647
job-related expenses authorized by the employer, including moving 2,648
and travel expenses and expenses related to professional 2,649
development; 2,650
61
(f) Payments made by the employer in exchange for a 2,652
member's waiver of a right to receive any payment, amount, or 2,653
benefit described in division (U)(L)(2) of this section; 2,654
(g) Payments by the employer for services not actually 2,656
rendered; 2,657
(h) Any amount paid by the employer as a retroactive 2,659
increase in salary, wages, or other earnings, unless the increase 2,660
is one of the following: 2,661
(i) A retroactive increase paid to a member employed by a 2,663
school district board of education in a position that requires a 2,664
license designated for teaching and not designated for being an 2,665
administrator issued under section 3319.22 of the Revised Code 2,666
that is paid in accordance with uniform criteria applicable to 2,667
all members employed by the board in positions requiring the 2,668
licenses; 2,669
(ii) A retroactive increase paid to a member employed by a 2,671
school district board of education in a position that requires a 2,672
license designated for being an administrator issued under 2,673
section 3319.22 of the Revised Code that is paid in accordance 2,674
with uniform criteria applicable to all members employed by the 2,675
board in positions requiring the licenses; 2,676
(iii) A retroactive increase paid to a member employed by 2,678
a school district board of education as a superintendent that is 2,679
also paid as described in division (U)(L)(2)(h)(i) of this 2,680
section; 2,681
(iv) A retroactive increase paid to a member employed by 2,683
an employer other than a school district board of education in 2,684
accordance with uniform criteria applicable to all members 2,685
employed by the employer. 2,686
(i) Payments made to or on behalf of a teacher that are in 2,688
excess of the annual compensation that may be taken into account 2,689
by the retirement system under division (a)(17) of section 401 of 2,690
the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 2,691
401(a)(17), as amended. For a teacher who first establishes 2,692
62
membership before July 1, 1996, the annual compensation that may 2,693
be taken into account by the retirement system shall be 2,694
determined under division (d)(3) of section 13212 of the "Omnibus 2,695
Budget Reconciliation Act of 1993," Pub. L. No. 103-66, 107 Stat. 2,697
472.
(j) Payments made under division (B) or (D) of section 2,699
5923.05 of the Revised Code or Section 4 of Substitute Senate 2,701
Bill No. 3 of the 119th general assembly; 2,702
(k) Anything of value received by the teacher that is 2,704
based on or attributable to retirement or an agreement to retire. 2,705
(3) The retirement board shall determine by rule both of 2,707
the following: 2,708
(a) Whether particular forms of earnings are included in 2,710
any of the categories enumerated in this division; 2,711
(b) Whether any form of earnings not enumerated in this 2,713
division is to be included in compensation. 2,714
Decisions of the board made under this division shall be 2,716
final. 2,717
(V) "Retirant" means any former member who is granted age 2,719
and service retirement as provided in sections 3307.38, 3307.39, 2,720
3307.41, and 3307.50 of the Revised Code. 2,721
(W) "Disability benefit recipient" means a member who is 2,723
receiving a disability benefit. 2,724
(M) "SUPERANNUATE" MEANS BOTH OF THE FOLLOWING: 2,726
(1) A FORMER TEACHER RECEIVING FROM THE SYSTEM A 2,728
RETIREMENT ALLOWANCE UNDER SECTION 3307.58 OR 3307.59 OF THE 2,729
REVISED CODE; 2,730
(2) A FORMER TEACHER RECEIVING ANY BENEFIT FROM THE SYSTEM 2,732
UNDER A PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE REVISED 2,734
CODE.
FOR PURPOSES OF SECTION 3307.35 OF THE REVISED CODE, 2,736
"SUPERANNUATE" ALSO MEANS A FORMER TEACHER RECEIVING FROM THE 2,737
SYSTEM A COMBINED SERVICE RETIREMENT BENEFIT PAID IN ACCORDANCE 2,738
WITH SECTION 3307.57 OF THE REVISED CODE, REGARDLESS OF WHICH 2,739
63
RETIREMENT SYSTEM IS PAYING THE BENEFIT. 2,740
Sec. 3307.031. THE STATE TEACHERS RETIREMENT SYSTEM SHALL 2,743
CONSIST OF THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 AND 2,744
THE ONE OR MORE PLANS ESTABLISHED UNDER SECTION 3307.81 OF THE 2,747
REVISED CODE.
Sec. 3307.05. The state teachers retirement board shall 2,756
consist of the following nine members: 2,757
(A) The superintendent of public instruction; 2,759
(B) The auditor of state; 2,761
(C) The attorney general; 2,763
(D) Five members, known as teacher members, who shall be 2,765
members of the state teachers retirement system; 2,766
(E) A former member of the system, known as the retired 2,768
teacher member, who shall be a recipient of service retirement 2,769
benefits under section 3307.38 or 3307.39 of the Revised Code 2,770
SUPERANNUATE.
Sec. 3307.07. All elections of members of the state 2,779
teachers retirement board shall be held under the direction of 2,780
the board. Any member of the state teachers retirement system, 2,781
who has been nominated by a petition signed by five hundred or 2,782
more members of the system, shall be eligible for election as a 2,783
teacher member of the board. The petition shall contain the 2,784
signatures of twenty or more members of the system from each of 2,785
at least ten counties wherein members of the system are employed. 2,786
Any retired teacher who is a recipient of service 2,788
retirement benefits under section 3307.38 or 3307.39 of the 2,789
Revised Code SUPERANNUATE and is a resident of Ohio is eligible 2,791
for election as the retired teacher member of the board, if such 2,792
retired teacher has been nominated by a petition signed by five 2,793
hundred or more retired teachers, who are also recipients of 2,794
benefits under section 3307.38 or 3307.39 of the Revised Code 2,795
SUPERANNUATES. The petition shall contain the signatures of 2,797
twenty or more retired teachers from each of at least ten 2,798
counties wherein retirants SUPERANNUATES under the system reside. 2,800
64
The board shall place the name of any eligible candidate 2,802
upon the appropriate ballot as a regular candidate. At any 2,803
election, qualified voters, as defined in this section, may vote 2,804
for the regular candidates or for other eligible candidates, in 2,805
which case the names of such persons shall be written upon the 2,806
appropriate ballots, except that members of the system and former 2,807
members of the system who are recipients of service retirement 2,808
benefits under section 3307.38 or 3307.39 of the Revised Code 2,809
SUPERANNUATES shall vote respectively for teacher members and the 2,811
retired teacher member of the board. The candidate who receives 2,812
the highest number of votes for any term of office shall be 2,813
elected to the board. If, at any election, teacher members are 2,814
to be elected for concurrent terms, eligible candidates shall be 2,815
placed on the ballot, and the candidates who receive the highest 2,816
numbers of votes shall be elected to the board. 2,817
Elected members of the board shall be elected on the basis 2,819
of the total number of ballots cast by qualified voters, who 2,820
shall consist of members of the system and former members of the 2,821
system who are recipients of service retirement benefits under 2,822
section 3307.38 or 3307.39 of the Revised Code SUPERANNUATES. 2,823
Sec. 3307.08. Each member of the state teachers retirement 2,832
board upon appointment or election shall take an oath of office 2,833
that he THE MEMBER will support the constitution of the United 2,835
States, the constitution of the state, and that he THE MEMBER 2,836
will diligently and honestly administer the affairs of the said 2,837
board, and that he THE MEMBER will not knowingly violate or 2,839
willfully permit to be violated any law applicable to sections 2,841
3307.01 to 3307.72, inclusive, of the Revised Code THIS CHAPTER. 2,842
Such oath shall be subscribed to by the member making it, and 2,843
certified by the officer before whom it is taken, and shall be 2,844
immediately filed in the office of the secretary of state. 2,845
Sec. 3307.09. A majority of the members of the state 2,854
teachers retirement board constitutes a quorum for the 2,855
transaction of any business. All meetings of the board shall be 2,856
65
open to the public except executive sessions as set forth in 2,857
division (G) of section 121.22 of the Revised Code, and any
portions of any sessions discussing medical records or the degree 2,858
of disability of a member excluded from public inspection by 2,859
section 3307.21 3307.20 of the Revised Code. 2,860
Sec. 3307.10. (A) The members of the state teachers 2,869
retirement board shall serve without compensation, except that 2,870
members shall be reimbursed from the expense fund for all actual 2,871
necessary expenses incurred while serving on the board. 2,872
(B) The board may secure insurance coverage designed to 2,874
indemnify board members and employees for their actions or 2,875
conduct in the performance of official duties, and may pay 2,876
required premiums for such coverage from the expense fund. 2,877
(C) If the officers of the board determine that a meeting 2,879
of the entire membership, or any part thereof, is necessary, such 2,880
determination shall be final, and teacher members shall be given 2,881
time off from their employment to attend any such meeting. The 2,882
employer of a teacher member shall not reduce the member's earned 2,883
compensation as a teacher or any contribution required under 2,884
section 3307.51 3307.26 of the Revised Code, because of the 2,885
teacher member's absence from employment to attend any such 2,886
meeting.
The portion of the employer contribution required under 2,888
section 3307.53 3307.28 of the Revised Code that represents 2,890
earned compensation of a teacher member paid for the period of an 2,891
absence from employment to attend a board meeting, shall be
annually transferred from the expense fund and forwarded to the 2,892
employer of the teacher member. 2,893
(D) The board shall adopt rules in accordance with section 2,896
111.15 of the Revised Code establishing a policy for 2,898
reimbursement of travel expenses incurred by board members in the 2,900
performance of their official duties. As part of any audit
performed under Chapter 117. of the Revised Code, an inquiry 2,903
shall be made into whether board members have complied with these 2,904
66
rules.
(E) No board member shall accept payment or reimbursement 2,907
for travel expenses, other than for meals and other food and 2,908
beverages provided to the member, from any source other than the 2,909
expense fund. Except in the case of an emergency, no 2,910
out-of-state travel expenses shall be reimbursed unless approved 2,911
in advance by a majority of the board at a regular board meeting. 2,912
Sec. 3307.11. The state teachers retirement board shall 2,921
elect from its membership, a chairman CHAIRPERSON and a vice 2,922
chairman VICE-CHAIRPERSON. The board shall employ an executive 2,924
director who shall serve as secretary, and shall employ other 2,925
persons necessary to operate the system and to fulfill the 2,926
board's duties and responsibilities under Chapter 3307. of the 2,927
Revised Code. The compensation of all employees and all other 2,928
expenses of the board necessary for the proper operation of the 2,929
system shall be paid in such amounts as the board approves. 2,930
Every expense voucher of an employee, officer, or board 2,932
member of the state teachers retirement system shall itemize all 2,933
purchases and expenditures. 2,934
The board shall receive all applications for retirement 2,936
UNDER THE PLANS DESCRIBED IN SECTION 3307.031 OF THE REVISED 2,937
CODE, shall provide for the payment of all retirement allowances 2,938
and other benefits PAYABLE UNDER THIS CHAPTER, and shall make 2,939
other EXPENDITURES authorized by Chapter 3307. of the Revised 2,940
Code THIS CHAPTER. 2,941
Sec. 3307.121. THE TREASURER OF STATE SHALL FURNISH 2,943
ANNUALLY TO THE STATE TEACHERS RETIREMENT BOARD A SWORN STATEMENT 2,944
OF THE AMOUNT OF THE FUNDS IN THE TREASURER OF STATE'S CUSTODY 2,945
BELONGING TO THE STATE TEACHERS RETIREMENT SYSTEM. 2,946
Sec. 3307.65 3307.14. The state teachers retirement board 2,955
shall be the trustee of certain funds hereby created as follows: 2,956
(A) The "teachers' savings fund" is the fund in which 2,958
shall be accumulated the contributions deducted from the 2,959
compensation of teachers and faculty members PARTICIPATING IN THE 2,960
67
PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED 2,961
CODE, as provided by section 3307.51 3307.26 of the Revised Code, 2,962
together with the interest credited thereon. Such accumulated 2,964
contributions refunded upon withdrawal, or payable to an estate 2,965
or beneficiary as provided in this chapter, shall be paid from 2,966
this fund. Any accumulated contributions forfeited by the 2,967
failure of a contributor, an estate, or a beneficiary to claim 2,968
the same shall be transferred from this fund to the guarantee 2,969
fund. The accumulated contributions of a member or of a teacher 2,970
who qualifies for a benefit under section 3307.381 3307.35 of the 2,971
Revised Code shall be transferred at his THE MEMBER'S OR 2,973
TEACHER'S retirement from the teachers' savings fund to the 2,975
annuity and pension reserve fund. The accumulated contributions 2,976
of a member who dies prior to superannuation retirement that are 2,977
forfeited by the qualified beneficiary in exchange for monthly 2,978
survivor benefits, as provided by section 3307.49 3307.66 of the 2,979
Revised Code, shall be transferred to the survivors' benefit 2,981
fund. The accumulated contributions of a superannuate or other 2,982
system retirant as defined in section 3307.381 3307.35 of the 2,983
Revised Code shall be transferred to the survivors' benefit fund 2,985
for payment of a lump-sum benefit to a beneficiary as provided in 2,986
THAT section 3307.381 of the Revised Code. AS USED IN THIS 2,987
DIVISION, "ACCUMULATED CONTRIBUTIONS" HAS THE SAME MEANING AS IN 2,988
SECTION 3307.50 OF THE REVISED CODE.
(B) The "employers' trust fund" is the fund to which the 2,990
employer contribution MADE ON BEHALF OF A TEACHER PARTICIPATING 2,991
IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE 2,992
REVISED CODE shall be credited and in which shall be accumulated 2,994
the reserves held in trust for the payment of all pensions or 2,995
other benefits provided by sections 3307.38 3307.35, 3307.381 2,997
3307.58, 3307.39 3307.59, 3307.43 3307.60, 3307.431 3307.63, 2,998
3307.49 3307.631, 3307.50 3307.66, 3307.70 3307.6912, and 3307.78 3,001
3307.98 of the Revised Code, to teachers retiring or receiving 3,003
disability benefits in the future or to their qualified
68
beneficiaries, and from which the reserves for such pensions and 3,004
other benefits shall be transferred to the annuity and pension 3,005
reserve fund and to the survivors' benefit fund. The balances as 3,006
of August 31, 1957, in the employers accumulation fund shall be 3,007
transferred to this fund. As of September 1, 1957, an additional 3,008
amount shall be transferred from the employers' trust fund to the 3,009
annuity and pension reserve fund in the amount required to 3,010
complete the funding of the prior service, AS DEFINED IN SECTION 3,011
3307.50 OF THE REVISED CODE, and military service pensions then 3,013
payable.
(C) The "annuity and pension reserve fund" is the fund 3,015
from which shall be paid all annuities, pensions, and disability 3,016
benefits UNDER THE PLAN DESCRIBED IN SECTION 3307.50 TO 3307.79 3,017
OF THE REVISED CODE for which reserves have been transferred from 3,018
the teachers' savings fund and the employers' trust fund. 3,019
(D) The "survivors' benefit fund" is the fund from which 3,021
shall be paid the survivors' benefits provided by section 3307.49 3,022
3307.66 of the Revised Code and the lump sum payment to 3,024
beneficiaries as provided in section 3307.381 3307.35 of the 3,025
Revised Code, and to which shall be transferred from the 3,027
employers' trust fund the amount required to fund all liabilities 3,028
as of the end of each year.
(E) The "guarantee fund" is the fund from which interest 3,030
is transferred and credited on the amounts in the funds described 3,031
in divisions (A), (B), (C), and (D) of this section, and is a 3,032
contingent fund from which the special requirements of said funds 3,033
may be paid by transfer from this fund. All income derived from 3,034
the investment of funds by the state teachers retirement board as 3,035
trustee under section 3307.15 of the Revised Code, together with 3,036
all gifts and bequests, or the income therefrom, shall be paid 3,037
into this fund. 3,038
Any deficit occurring in any other fund that will not be 3,040
covered by payments to that fund, as otherwise provided in this 3,041
chapter, shall be paid by transfers of amounts from the guarantee 3,042
69
fund to such fund or funds. Should the amount in the guarantee 3,043
fund be insufficient at any time to meet the amounts payable 3,044
therefrom, the amount of such deficiency, with regular interest, 3,045
shall be paid by an additional employer rate of contribution as 3,046
determined by the actuary and shall be approved by the state 3,047
teachers retirement board, and the amount of such additional 3,048
employer contribution shall be credited to the guarantee fund. 3,049
The state teachers retirement board may accept gifts and 3,051
bequests. Any funds that may come into the possession of the 3,052
state teachers retirement board in this manner or that may be 3,053
transferred from the teachers' savings fund by reason of lack of 3,054
a claimant, or any surplus in any fund created by IN DIVISIONS 3,056
(A) TO (F) OF this section, or any other funds whose disposition 3,057
is not otherwise provided for, shall be credited to the guarantee 3,058
fund.
(F) The expense fund is the fund from which shall be paid 3,060
the expenses for the administration and management of the state 3,061
teachers retirement system as provided by this chapter. 3,062
(G) THE "DEFINED CONTRIBUTION FUND" IS THE FUND IN WHICH 3,064
SHALL BE ACCUMULATED THE CONTRIBUTIONS DEDUCTED FROM THE 3,065
COMPENSATION OF TEACHERS PARTICIPATING IN A PLAN ESTABLISHED 3,066
UNDER SECTION 3307.81 OF THE REVISED CODE, AS PROVIDED IN SECTION 3,068
3307.26 OF THE REVISED CODE, TOGETHER WITH ANY EARNINGS AND 3,070
EMPLOYER CONTRIBUTIONS CREDITED THEREON.
Sec. 3307.66 3307.141. Wherever in sections 3307.01 to 3,079
3307.72, inclusive, of the Revised Code THIS CHAPTER, reference 3,081
is made to the teachers' savings fund, the employers' normal 3,083
accumulation fund, the employers' deficiency accumulation TRUST 3,084
fund, the annuity and pension reserve fund, the guarantee fund, 3,085
the survivors' benefit fund, or the expense fund, OR THE DEFINED 3,086
CONTRIBUTION FUND, such reference shall be construed to have been 3,087
made to each as a separate legal entity. This section does not 3,088
prevent the deposit or investment of all such moneys intermingled 3,089
for such purpose but such funds shall be separate and distinct 3,090
70
legal entities for all other purposes.
Sec. 3307.651 3307.142. (A) Interest compounded annually 3,100
shall be credited to the accounts of members PARTICIPATING IN THE 3,101
PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE 3,102
and to the various funds LISTED IN DIVISIONS (A) TO (F) OF 3,103
SECTION 3307.14 OF THE REVISED CODE, and shall be assumed in
determining actuarial factors, at rates recommended by the 3,105
actuary and approved by the STATE TEACHERS retirement board, but 3,106
not less than three and twenty-five hundredths per cent effective 3,108
September 1, 1965, except as follows:
(1) For the years stated the rates shall be as follows: 3,110
Years Rates 3,112
9-1-1920/8-31-1955 4.00% 3,113
9-1-1955/8-31-1963 3.00 3,114
9-1-1963/8-31-1965 3.25 3,115
(2) Subsequent to August 31, 1959, interest shall be 3,118
credited to accounts only at retirement. 3,120
(3) If the amount of the account at retirement is not a 3,122
factor in determining the allowance, interest shall not be 3,123
credited to such account after September 1, 1964. 3,124
(4) The actuary shall estimate the amount of interest 3,126
reserve required in the teachers savings fund for credit to 3,127
accounts when interest is to be a factor in determining the 3,128
allowance, and the balance of the interest reserve in such fund 3,129
shall be transferred to the employers trust fund as of September
1, 1965.
(B) INTEREST SHALL BE CREDITED TO THE ACCOUNTS OF MEMBERS 3,131
PARTICIPATING IN A PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE 3,132
REVISED CODE AND TO THE DEFINED CONTRIBUTION FUND IN ACCORDANCE 3,133
WITH THAT PLAN.
Sec. 3307.15. (A) The members of the state teachers 3,142
retirement board shall be the trustees of the funds created by 3,143
section 3307.65 3307.14 of the Revised Code. The board shall 3,144
have full power to invest the funds. The board and other 3,146
71
fiduciaries shall discharge their duties with respect to the 3,147
funds solely in the interest of the participants and 3,148
beneficiaries; for the exclusive purpose of providing benefits to 3,149
participants and their beneficiaries and defraying reasonable 3,150
expenses of administering the system; with care, skill, prudence, 3,151
and diligence under the circumstances then prevailing that a 3,152
prudent person acting in a like capacity and familiar with these 3,153
matters would use in the conduct of an enterprise of a like 3,155
character and with like aims; and by diversifying the investments 3,156
of the system so as to minimize the risk of large losses, unless 3,157
under the circumstances it is clearly prudent not to do so. 3,158
To facilitate investment of the funds, the board may 3,160
establish a partnership, trust, limited liability company, 3,161
corporation, including a corporation exempt from taxation under 3,162
the Internal Revenue Code, 100 Stat. 2085, 26 U.S.C. 1, as 3,164
amended, or any other legal entity authorized to transact
business in this state. 3,165
(B) In exercising its fiduciary responsibility with 3,167
respect to the investment of the funds, it shall be the intent of 3,168
the board to give consideration to investments that enhance the 3,169
general welfare of the state and its citizens where the 3,170
investments offer quality, return, and safety comparable to other 3,172
investments currently available to the board. In fulfilling this 3,173
intent, equal consideration shall also be given to investments 3,174
otherwise qualifying under this section that involve minority 3,175
owned and controlled firms and firms owned and controlled by 3,176
women, either alone or in joint venture with other firms. 3,177
The board shall adopt, in regular meeting, policies, 3,179
objectives, or criteria for the operation of the investment 3,180
program that include asset allocation targets and ranges, risk 3,181
factors, asset class benchmarks, time horizons, total return 3,182
objectives, and performance evaluation guidelines. In adopting 3,184
policies and criteria for the selection of agents with whom the 3,185
board may contract for the administration of the funds, the board 3,186
72
shall give equal consideration to minority owned and controlled 3,187
firms, firms owned and controlled by women, and ventures 3,188
involving minority owned and controlled firms and firms owned and 3,189
controlled by women that otherwise meet the policies and criteria 3,190
established by the board. Amendments and additions to the 3,191
policies and criteria shall be adopted in regular meeting. The 3,192
board shall publish its policies, objectives, and criteria under 3,193
this provision no less often than annually and shall make copies 3,195
available to interested parties.
When reporting on the performance of investments, the board 3,197
shall comply with the performance presentation standards 3,198
established by the association for investment management and 3,199
research.
(C) All bonds, notes, certificates, stocks, or other 3,202
evidences of investments purchased by the board shall be 3,204
delivered to the treasurer of state, who is hereby designated as 3,205
custodian thereof, or to the treasurer of state's authorized 3,206
agent, and the treasurer of state or the agent shall collect the 3,208
principal, interest, dividends, and distributions that become due 3,211
and payable and place them when so collected into the custodial 3,212
funds. Evidences of title of the investments may be deposited by 3,214
the treasurer of state for safekeeping with an authorized agent, 3,215
selected by the treasurer of state, who is a qualified trustee 3,216
under section 135.18 of the Revised Code. The treasurer of state 3,217
shall pay for the investments purchased by the retirement board 3,220
on receipt of written or electronic instructions from the board 3,222
or the board's designated agent authorizing the purchase and 3,224
pending receipt of the evidence of title of the investment by the
treasurer of state or the treasurer of state's authorized agent. 3,225
The board may sell investments held by the board, and the 3,226
treasurer of state or the treasurer of state's authorized agent 3,227
shall accept payment from the purchaser and deliver evidence of 3,228
title of the investment to the purchaser on receipt of written or 3,229
electronic instructions from the board or the board's designated
73
agent authorizing the sale, and pending receipt of the moneys for 3,232
the investments. The amount received shall be placed into the 3,234
custodial funds. The board and the treasurer of state may enter 3,235
into agreements to establish procedures for the purchase and sale 3,236
of investments under this division and the custody of the
investments. 3,237
(D) No purchase or sale of any investment shall be made 3,240
under this section except as authorized by the state teachers
retirement board. 3,241
(E) Any statement of financial position distributed by the 3,243
board shall include the fair value, as of the statement date, of 3,246
all investments held by the board under this section.
Sec. 3307.111 3307.151. The state teachers retirement 3,255
system shall make no investments through, purchases from, or 3,258
otherwise do any business with any individual who is, or any 3,259
partnership, association, or corporation that is owned or
controlled by, a person, who within the preceding three years was 3,260
employed by, an officer, or a board member of the system or in 3,261
which a person, who within the preceding three years was employed 3,262
by, a board member of, or an officer of the system holds a 3,263
fiduciary, administrative, supervisory or trust position, or any 3,264
other position in which such person would be involved, on behalf
of his THE PERSON'S employer, in decisions or recommendations 3,266
affecting the investment policy of the state teachers retirement 3,267
system, and in which such person would benefit by any monetary 3,269
gain.
Sec. 3307.14 3307.181. (A) Except as provided in division 3,278
(B) of this section, a fiduciary shall not cause the state 3,280
teachers retirement system to engage in a transaction, if he THE 3,281
FIDUCIARY knows or should know that such transaction constitutes 3,283
a direct or indirect: 3,284
(1) Sale or exchange, or leasing, of any property between 3,286
the system and a party in interest; 3,287
(2) Lending of money or other extension of credit between 3,289
74
the system and a party in interest; 3,290
(3) Furnishing of goods, services, or facilities between 3,292
the system and a party in interest; 3,293
(4) Transfer to, or use by or for the benefit of a party 3,295
in interest, of any assets of the system; or 3,296
(5) Acquisition, on behalf of the system, of any employer 3,298
security or employer real property. 3,299
(B) Nothing in this section shall prohibit any transaction 3,301
between the state teachers retirement system and any fiduciary or 3,302
party in interest if: 3,303
(1) All the terms and conditions of the transaction are 3,305
comparable to the terms and conditions which might reasonably be 3,306
expected in a similar transaction between similar parties who are 3,307
not parties in interest; and 3,308
(2) The transaction is consistent with the fiduciary 3,310
duties described in Chapter 3307. of the Revised Code. 3,311
(C) A fiduciary shall not: 3,313
(1) Deal with the assets of the system in his THE 3,315
FIDUCIARY'S own interest or for his THE FIDUCIARY'S own account; 3,317
(2) In his THE FIDUCIARY'S individual or in any other 3,319
capacity act in any transaction involving the system on behalf of 3,321
a party (or represent a party) whose interests are adverse to the 3,322
interests of the system or the interests of its participants or 3,323
beneficiaries; or 3,324
(3) Receive any consideration for his THE FIDUCIARY'S own 3,326
personal account from any party dealing with such system in 3,328
connection with a transaction involving the assets of the system. 3,329
(D) In addition to any liability which he THE FIDUCIARY 3,331
may have under any other provision, a fiduciary with respect to 3,333
the system shall be liable for a breach of fiduciary 3,334
responsibility of any fiduciary with respect to the system in the 3,335
following circumstances: 3,336
(1) If he THE FIDUCIARY participates knowingly in, or 3,338
knowingly undertakes to conceal, an act or omission of such other 3,339
75
fiduciary, knowing such act or omission is a breach; 3,340
(2) If, by his THE FIDUCIARY'S failure to comply with 3,342
Chapter 3307. of the Revised Code, he THE FIDUCIARY has enabled 3,344
such other fiduciary to commit a breach; or 3,346
(3) If he THE FIDUCIARY has knowledge of a breach by such 3,348
other fiduciary, unless he THE FIDUCIARY makes reasonable efforts 3,349
under the circumstances to remedy the breach. 3,351
(E) Every fiduciary of the system shall be bonded or 3,353
insured to an amount of not less than one million dollars for 3,354
loss by reason of acts of fraud or dishonesty. 3,355
Sec. 3307.19. The state teachers retirement board shall 3,364
provide for the maintenance of an individual account with FOR 3,365
each contributor MEMBER showing the amount of his THE MEMBER'S 3,368
contributions and the interest ANY accumulations thereon. It 3,370
shall collect and keep in convenient form such data as is 3,372
necessary for the preparation of the required mortality and 3,373
service tables, and for the compilation of such other information 3,374
as is required for the actuarial valuation of the assets and 3,375
liabilities of the various funds created by section 3307.65 of 3,376
the Revised Code. Upon the basis of the mortality and service 3,377
experience of the members, retirants, and beneficiaries of the 3,378
state teachers retirement system, and other system retirants 3,379
contributing in accordance with section 3307.381 of the Revised 3,380
Code, the board shall adopt the tables to be used for valuation 3,381
purposes and for determining the amount of annuities to be 3,382
allowed on the basis of the contributions. 3,383
Sec. 3307.21 3307.20. (A) The treasurer of state shall 3,392
furnish annually to the state teachers retirement board a sworn 3,394
statement of the amount of the funds in the treasurer's custody 3,395
belonging to the state teachers retirement system. 3,396
(B)(1) As used in this division, "personal SECTION: 3,398
(1) "PERSONAL history record" means information maintained 3,401
by the STATE TEACHERS RETIREMENT board on a member, former 3,402
member, contributor, former contributor, retirant, or beneficiary 3,403
76
that includes the address, telephone number, social security 3,404
number, record of contributions, correspondence with the STATE 3,405
TEACHERS RETIREMENT system, or other information the board 3,407
determines to be confidential.
(2) "RETIRANT" HAS THE SAME MEANING AS IN SECTION 3307.50 3,409
OF THE REVISED CODE.
(B) The records of the board shall be open to public 3,411
inspection, except for the following, which shall be excluded, 3,412
except with the written authorization of the individual 3,413
concerned: 3,414
(a)(1) The individual's personal records provided for in 3,416
section 3307.29 3307.23 of the Revised Code; 3,417
(b)(2) The individual's personal history record; 3,419
(c)(3) Any information identifying, by name and address, 3,421
the amount of a monthly allowance or benefit paid to the 3,422
individual.
(C) All medical reports and recommendations under sections 3,424
3307.42 3307.62, 3307.44 3307.64, and 3307.49 3307.66 of the 3,426
Revised Code are privileged, except that copies of such medical 3,427
reports or recommendations shall be made available to the 3,428
personal physician, attorney, or authorized agent of the 3,429
individual concerned upon written release received from the 3,430
individual or the individual's agent, or, when necessary for the 3,431
proper administration of the fund, to the board assigned 3,432
physician.
(D) Any person who is a member or contributor of the 3,434
system shall be furnished, on written request, with a statement 3,436
of the amount to the credit of the person's account. The board 3,437
need not answer more than one request of a person in any one 3,438
year.
(E) Notwithstanding the exceptions to public inspection in 3,440
division (B)(2) of this section, the board may furnish the 3,441
following information: 3,442
(1) If a member, former member, retirant, contributor, or 3,444
77
former contributor is subject to an order issued under section 3,445
2907.15 of the Revised Code or is convicted of or pleads guilty 3,446
to a violation of section 2921.41 of the Revised Code, on written 3,447
request of a prosecutor as defined in section 2935.01 of the 3,448
Revised Code, the board shall furnish to the prosecutor the 3,449
information requested from the individual's personal history 3,450
record. 3,451
(2) Pursuant to a court or administrative order issued 3,453
under section 3111.23 or 3113.21 of the Revised Code, the board 3,454
shall furnish to a court or child support enforcement agency the 3,455
information required under that section. 3,456
(3) At the written request of any person, the board shall 3,458
provide to the person a list of the names and addresses of 3,459
members, former members, retirants, contributors, former 3,460
contributors, or beneficiaries. The costs of compiling, copying, 3,461
and mailing the list shall be paid by such person. 3,462
(4) Within fourteen days after receiving from the director 3,464
of human services a list of the names and social security numbers 3,465
of recipients of public assistance pursuant to section 5101.181 3,466
of the Revised Code, the board shall inform the auditor of state 3,467
of the name, current or most recent employer address, and social 3,468
security number of each member whose name and social security 3,469
number are the same as that of a person whose name or social 3,470
security number was submitted by the director. The board and its 3,471
employees shall, except for purposes of furnishing the auditor of 3,472
state with information required by this section, preserve the 3,473
confidentiality of recipients of public assistance in compliance 3,474
with division (A) of section 5101.181 of the Revised Code. 3,475
(F) A statement that contains information obtained from 3,477
the system's records that is signed by an officer of the 3,478
retirement system and to which the system's official seal is 3,479
affixed, or copies of the system's records to which the signature 3,480
and seal are attached, shall be received as true copies of the 3,481
system's records in any court or before any officer of this 3,482
78
state. 3,483
THIS IS AN INTERIM SECTION EFFECTIVE UNTIL JULY 1, 2000. 3,485
Sec. 3307.58 3307.21. Each employer, before employing any 3,494
teacher to whom sections 3307.01 to 3307.72, inclusive, of the 3,496
Revised Code, THIS CHAPTER applies, shall notify such person of 3,498
his THE PERSON'S duties and obligations under such sections THIS 3,499
CHAPTER as a condition of his THE PERSON'S employment. 3,501
Any such appointment or reappointment of any teacher in the 3,503
public day schools of the state, or service upon indefinite 3,504
tenure, shall be conditioned upon the teacher's acceptance of 3,505
such sections THIS CHAPTER, as a part of the contract. 3,506
Sec. 3307.59 3307.211. During September of each year, or 3,515
at such other time as the state teachers retirement board 3,517
approves, each employer shall certify to the board the names of 3,518
all teachers to whom sections 3307.01 to 3307.72, inclusive, of 3,519
the Revised Code, apply THIS CHAPTER APPLIES.
Sec. 3307.60 3307.212. Each employer shall on the first 3,528
day of each calendar month, or at such less frequent intervals as 3,530
the state teachers retirement board approves, notify the board of 3,531
the employment of new teachers, removals, withdrawals, and 3,532
changes in compensation of teachers that have occurred during the 3,533
month preceding or the period since the period covered by the
last notification. 3,534
NOT LATER THAN TEN DAYS AFTER THE DATE OF HIRE, EACH 3,536
EMPLOYER SHALL NOTIFY THE BOARD OF THE EMPLOYMENT OF A NEW 3,537
TEACHER. NOTICE SHALL BE ON A FORM PROVIDED BY THE BOARD. 3,538
Sec. 3307.63 3307.213. Each employer shall keep such 3,547
records and shall furnish such information and assistance to the 3,549
state teachers retirement board as it requires in the discharge 3,550
of its duties.
Sec. 3307.214. ON RECEIPT OF NOTICE UNDER SECTION 3307.212 3,552
OF THE REVISED CODE OF THE EMPLOYMENT OF A NEW TEACHER, THE STATE 3,553
TEACHERS RETIREMENT SYSTEM SHALL INFORM THE TEACHER OF THE 3,554
REQUIREMENTS OF SECTION 3307.25 OF THE REVISED CODE AND THE
79
PROVISIONS OF SECTIONS 3307.88 AND 3307.881 OF THE REVISED CODE. 3,555
Sec. 3307.29 3307.23. Each teacher, upon becoming 3,564
employed, shall file a detailed statement of all his THE 3,566
TEACHER'S previous service as a teacher and of such other service 3,567
as comes under this chapter, and shall furnish such other facts 3,568
as the state teachers retirement board requires for the proper 3,569
operation of the state teachers retirement system. If a teacher 3,570
fails to file the required membership record within ninety days 3,571
after becoming employed, the secretary shall so advise his THE 3,572
TEACHER'S employer who shall thereafter withhold all salary 3,573
payments to such teacher until such record is filed with the 3,574
state teachers retirement board. 3,575
Sec. 3307.30 3307.231. To the extent to which it is used 3,584
in determining the liability of any fund created by section 3,586
3307.65 3307.14 of the Revised Code, the state teachers 3,587
retirement board shall verify the statement provided for in 3,588
section 3307.29 3307.23 of the Revised Code by the best evidence 3,590
it is able to obtain. If official records are not available as 3,591
to the length of service, compensation, or other information 3,592
required, the board may use its discretion as to the evidence to
be accepted. 3,593
Sec. 3307.27 3307.24. The state teachers retirement board 3,602
may deny the right to contribute or the right to become members 3,604
to any class of teachers whose compensation is partly paid by the 3,605
state, who are not serving on a per annum basis, who are on a 3,606
temporary basis, or who are not required to have an educator 3,607
license, and it may also make optional with teachers in any such
class their right to contribute, or their right to individual 3,608
entrance into membership. 3,609
The state teachers retirement board may at any time deny 3,611
the right to contribute or the right to membership to any teacher 3,612
whose compensation, though disbursed by an employer, is 3,613
reimbursed to the employer, in whole or in part, from other than 3,614
public funds.
80
Sec. 3307.26 3307.241. Members of a local district pension 3,623
system maintained under the laws of the state from appropriations 3,625
or contributions made wholly or in part by any employer and 3,626
existing on August 8, 1919, are hereby excluded from membership 3,627
in the state teachers retirement system.
If a majority of all the teachers participating in any such 3,629
local district pension system apply for membership in the state 3,630
teachers retirement system by a petition duly signed and 3,631
verified, approved by their employer, and filed with the state 3,632
teachers retirement board, all the teachers included in the
membership of such local district pension system shall become 3,633
members of the state teachers retirement system at such time 3,634
within three months after the filing of such petition and the 3,635
compliance with sections 3307.01 to 3307.72, inclusive, of the 3,637
Revised Code THIS CHAPTER, relative to the dissolution and 3,638
discontinuance of such local district pension system as the board 3,639
designates.
Sec. 3307.25. (A) AN INDIVIDUAL WHO BECOMES A MEMBER OF 3,641
THE STATE TEACHERS RETIREMENT SYSTEM ON OR AFTER THE DATE ON 3,643
WHICH THE STATE TEACHERS RETIREMENT BOARD ESTABLISHES A PLAN 3,644
UNDER SECTION 3307.81 OF THE REVISED CODE SHALL MAKE AN ELECTION 3,645
UNDER THIS SECTION. NOT LATER THAN ONE HUNDRED EIGHTY DAYS AFTER 3,646
THE DATE ON WHICH EMPLOYMENT BEGINS, THE INDIVIDUAL SHALL ELECT 3,647
TO PARTICIPATE EITHER IN THE PLAN DESCRIBED IN SECTIONS 3307.50 3,648
TO 3307.79 OF THE REVISED CODE OR ONE OF THE PLANS ESTABLISHED 3,650
UNDER SECTION 3307.81 OF THE REVISED CODE. IF A FORM EVIDENCING 3,651
AN ELECTION UNDER THIS SECTION IS NOT ON FILE WITH THE EMPLOYER 3,652
AT THE END OF THE ONE-HUNDRED-EIGHTY-DAY PERIOD, THE INDIVIDUAL 3,654
IS DEEMED TO HAVE ELECTED TO PARTICIPATE IN THE PLAN DESCRIBED IN 3,656
SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE. 3,657
(B) AN ELECTION UNDER THIS SECTION SHALL BE MADE IN 3,659
WRITING ON A FORM PROVIDED BY THE RETIREMENT SYSTEM AND FILED 3,660
WITH THE EMPLOYER'S PERSONNEL OFFICER. NOT LATER THAN TEN DAYS 3,662
AFTER RECEIVING THE FORM EVIDENCING THE ELECTION, THE EMPLOYER 3,663
81
SHALL TRANSMIT TO THE SYSTEM A COPY THAT INCLUDES A STATEMENT 3,664
CERTIFYING THAT IT IS A TRUE AND ACCURATE COPY OF THE ORIGINAL. 3,665
(C) AN ELECTION UNDER THIS SECTION SHALL TAKE EFFECT ON 3,667
THE DATE EMPLOYMENT BEGAN AND, EXCEPT AS PROVIDED IN SECTION 3,668
3307.88 OF THE REVISED CODE, IS IRREVOCABLE ON RECEIPT BY THE 3,669
EMPLOYER. 3,670
(D) AN INDIVIDUAL IS INELIGIBLE TO MAKE AN ELECTION UNDER 3,672
THIS SECTION IF ONE OF THE FOLLOWING APPLIES: 3,673
(1) AT THE TIME EMPLOYMENT BEGINS, THE INDIVIDUAL IS 3,675
ALREADY A MEMBER OR CONTRIBUTOR PARTICIPATING IN THE PLAN 3,676
DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE OR A 3,677
SUPERANNUATE OF THE SYSTEM; 3,679
(2) AN ELECTION TO PARTICIPATE IN AN ALTERNATIVE 3,681
RETIREMENT PLAN UNDER SECTION 3305.05 OF THE REVISED CODE IS IN 3,682
EFFECT FOR EMPLOYMENT COVERED BY THE SYSTEM. 3,683
Sec. 3307.251. AS USED IN THIS SECTION, "ACCUMULATED 3,685
CONTRIBUTIONS" AND "TOTAL SERVICE CREDIT" HAVE THE SAME MEANINGS 3,686
AS IN SECTION 3307.50 OF THE REVISED CODE. 3,687
(A) A MEMBER OF THE STATE TEACHERS RETIREMENT SYSTEM WHO, 3,689
AS OF THE THIRTIETH DAY OF JUNE IMMEDIATELY PRECEDING THE DATE ON 3,691
WHICH THE SYSTEM ESTABLISHES A PLAN UNDER SECTION 3307.81 OF THE 3,693
REVISED CODE, HAS LESS THAN FIVE YEARS OF TOTAL SERVICE CREDIT IS 3,694
ELIGIBLE TO MAKE AN ELECTION UNDER THIS SECTION.
NOT LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE DAY THE 3,696
BOARD FIRST ESTABLISHES ONE OR MORE PLANS UNDER SECTION 3307.81 3,697
OF THE REVISED CODE, AN ELIGIBLE MEMBER MAY ELECT TO PARTICIPATE 3,699
IN A PLAN ESTABLISHED UNDER THAT SECTION. IF AN ELECTION IS NOT 3,700
MADE, A MEMBER TO WHOM THIS SECTION APPLIES IS DEEMED TO HAVE 3,702
ELECTED TO CONTINUE PARTICIPATING IN THE PLAN DESCRIBED IN 3,703
SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE. 3,704
(B) AN ELECTION UNDER THIS SECTION SHALL BE MADE IN 3,706
WRITING ON A FORM PROVIDED BY THE SYSTEM AND FILED WITH THE 3,707
SYSTEM.
(C) ON RECEIPT OF AN ELECTION UNDER THIS SECTION, THE 3,709
82
SYSTEM SHALL DO BOTH OF THE FOLLOWING: 3,710
(1) CREDIT TO THE ACCOUNT OF THE MEMBER IN THE DEFINED 3,712
CONTRIBUTION FUND THE ACCUMULATED CONTRIBUTIONS STANDING TO THE 3,713
MEMBER'S CREDIT IN THE TEACHERS' SAVINGS FUND, PLUS AN AMOUNT 3,714
CALCULATED UNDER SECTION 3307.563 OF THE REVISED CODE; 3,715
(2) CANCEL ALL SERVICE CREDIT AND ELIGIBILITY FOR ANY 3,717
PAYMENT, BENEFIT, OR RIGHT UNDER THE PLAN DESCRIBED IN SECTIONS 3,718
3307.50 TO 3307.79 OF THE REVISED CODE. 3,719
(D) AN ELECTION UNDER THIS SECTION SHALL BE IRREVOCABLE ON 3,722
RECEIPT BY THE SYSTEM. 3,723
Sec. 3307.252. A MEMBER OF THE STATE TEACHERS RETIREMENT 3,725
SYSTEM WHO ELECTS TO PARTICIPATE IN A PLAN ESTABLISHED UNDER 3,726
SECTION 3307.81 OF THE REVISED CODE SHALL BE INELIGIBLE FOR ANY 3,728
BENEFIT OR PAYMENT UNDER SECTIONS 3307.50 TO 3307.79 OF THE 3,729
REVISED CODE AND, EXCEPT AS PROVIDED IN SECTION 3307.88 OF THE 3,731
REVISED CODE, SHALL BE FOREVER BARRED FROM CLAIMING OR PURCHASING 3,733
SERVICE CREDIT WITH THE SYSTEM OR ANY OTHER OHIO STATE RETIREMENT 3,734
SYSTEM, AS DEFINED IN SECTION 3307.741 OF THE REVISED CODE, FOR 3,735
SERVICE COVERED BY THE ELECTION. 3,736
Sec. 3307.51 3307.26. Each teacher shall contribute eight 3,745
per cent of his THE TEACHER'S earned compensation to the 3,747
teachers' savings fund, except that the state teachers retirement 3,749
board may raise the contribution rate to the fund to a rate not 3,750
greater than ten per cent of the teacher's earned compensation. 3,751
Such FOR TEACHERS PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3,752
3307.50 TO 3307.79 OF THE REVISED CODE, CONTRIBUTIONS SHALL BE 3,754
DEPOSITED IN THE TEACHERS' SAVINGS FUND. FOR TEACHERS 3,755
PARTICIPATING IN A PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE 3,756
REVISED CODE, CONTRIBUTIONS SHALL BE DEPOSITED IN THE DEFINED 3,758
CONTRIBUTION FUND. CONTRIBUTIONS MADE PURSUANT TO THIS SECTION 3,759
SHALL NOT EXCEED THE LIMITS ESTABLISHED BY SECTION 415 OF THE 3,760
"INTERNAL REVENUE CODE OF 1986," 100 STAT. 2085, 26 U.S.C.A. 415, 3,764
AS AMENDED.
THE contribution FOR ALL TEACHERS shall be deducted by the 3,768
83
employer on each payroll in an amount equal to the applicable per 3,769
cent of such contributors' THE TEACHERS' paid compensation for 3,771
such payroll period or other period as the state teachers 3,772
retirement board may approve, provided all. ALL CONTRIBUTIONS ON 3,773
EARNED COMPENSATION FOR TEACHERS PARTICIPATING IN PLANS
ESTABLISHED UNDER SECTION 3307.81 OF THE REVISED CODE SHALL BE 3,774
REMITTED AT INTERVALS REQUIRED BY THE STATE TEACHERS RETIREMENT 3,775
SYSTEM UNDER SECTION 3307.86 OF THE REVISED CODE. ALL
contributions on earned compensation are FOR TEACHERS 3,777
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3,778
3307.79 OF THE REVISED CODE SHALL BE remitted to the state 3,779
teachers retirement system by the thirtieth day of June of each 3,780
year. Each school district shall encumber sufficient moneys by 3,781
the thirtieth day of June of each year to account for the 3,782
difference, if any, that may exist between contributions that 3,783
would be withheld based upon compensation earned by a teacher 3,784
during the year ending the thirtieth day of June and the 3,785
contributions withheld based upon compensation paid to the 3,786
teacher for the year. Deductions from payroll for contributions 3,787
under this section, on an annual basis, shall not exceed eight 3,788
per cent or other percentage established by the state teachers 3,789
retirement board authorized by this section. 3,790
At retirement UNDER THE PLAN DESCRIBED IN SECTIONS 3307.50 3,792
TO 3307.79 OF THE REVISED CODE, or upon a member's death prior to 3,793
retirement UNDER THAT PLAN, if contributions have been made after 3,794
September 1, 1959, in excess of the contributions normally 3,796
required to provide the retirement or survivor benefit, such THE 3,797
excess contributions may be refunded to the member, to his THE 3,799
MEMBER'S beneficiary, or to his THE MEMBER'S estate in a lump 3,801
sum, or may be used to provide additional income.
The board may determine with regard to any member 3,803
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3,804
3307.79 OF THE REVISED CODE whether the limits established by 3,805
division (B)(3)(C) of section 3307.38 3307.58 OF THE REVISED CODE 3,806
84
have resulted in exclusion from use in the calculation of 3,808
benefits under section 3307.38 3307.58, 3307.39 3307.59, or 3,810
3307.50 3307.60 of the Revised Code of any compensation on which 3,811
contributions have been made under this section. The board may 3,812
adopt rules in accordance with section 111.15 of the Revised Code 3,813
providing for the disposition of contributions attributable to 3,814
such compensation and may dispose of the contributions in 3,815
accordance with those rules. Any disposition of contributions 3,816
made by the board in accordance with the rules shall be final. 3,817
The deductions UNDER THIS SECTION shall be made even though 3,819
the minimum compensation provided by law for any teacher shall be 3,820
reduced thereby. Every teacher shall be deemed to consent to the 3,821
deductions made and shall receipt in full for his salary or 3,823
compensation, and payment. PAYMENT less the deductions shall be 3,825
a complete discharge and acquittance of all claims and demands 3,826
for the services rendered by the person during the period covered 3,827
by the payment. 3,828
Additional deposits may be made to a member's account IN 3,830
THE TEACHERS' SAVINGS FUND OR DEFINED CONTRIBUTION FUND, subject 3,832
to rules of the board. At retirement, the amount deposited with 3,833
interest may be used to provide additional annuity income. The 3,834
additional deposits may be refunded to the member before 3,835
retirement, and shall be refunded if the member withdraws his THE 3,836
MEMBER'S refundable account. The deposits may be refunded to the 3,837
beneficiary or estate if the member dies before retirement. 3,838
Sec. 3307.511 3307.261. Except as otherwise provided in 3,847
section 124.385 of the Revised Code, any teacher who is granted 3,849
disability leave pursuant to a program sponsored by his THE 3,850
TEACHER'S employer, whereby the teacher receives a percentage of 3,851
his THE TEACHER'S salary while on disability leave, shall not be 3,852
required to make contributions for time off while on disability 3,853
leave.
Except as otherwise provided in section 124.385 of the 3,855
Revised Code, each employer described in division (A) of section 3,856
85
3307.01 of the Revised Code who sponsors a disability leave 3,857
program shall make the periodic employee and employer 3,858
contributions, in the amounts set pursuant to sections 3307.51
3307.26 and 3307.53 3307.28 of the Revised Code, for teachers 3,860
granted disability leave, based on the teacher's rate of pay in 3,862
effect at the time disability leave was granted.
Sec. 3307.27. THE CONTRIBUTIONS REQUIRED UNDER SECTION 3,864
3307.26 OF THE REVISED CODE MAY BE PAID BY THE EMPLOYER IN 3,865
ACCORDANCE WITH DIVISION (h) OF SECTION 414 OF THE "INTERNAL 3,868
REVENUE CODE OF 1986," 100 STAT. 2085, 26 U.S.C.A. 414(h), AS 3,871
AMENDED.
Sec. 3307.53 3307.28. Each employer shall pay annually to 3,880
the employers' trust fund STATE TEACHERS RETIREMENT SYSTEM an 3,881
amount certified by the secretary which shall be a certain per 3,883
cent of the earnable compensation of all members, and which shall 3,884
be known as the "employer contribution." The FOR MEMBERS 3,885
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3,886
3307.79 OF THE REVISED CODE, THE EMPLOYER CONTRIBUTION SHALL BE 3,888
DEPOSITED INTO THE EMPLOYERS' TRUST FUND. FOR MEMBERS
PARTICIPATING IN A PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE 3,890
REVISED CODE, THE EMPLOYER CONTRIBUTION SHALL BE DEPOSITED INTO 3,892
THE DEFINED CONTRIBUTION FUND IN ACCORDANCE WITH THE PLAN
SELECTED BY THE MEMBER, LESS THE AMOUNT TRANSFERRED UNDER SECTION 3,895
3307.84 OF THE REVISED CODE. 3,896
THE rate per cent of such THE contribution shall be fixed 3,899
by the actuary on the basis of his THE ACTUARY'S evaluation of 3,900
the liabilities of the state teachers retirement system, not to 3,902
exceed fourteen per cent, and shall be approved by the state 3,903
teachers retirement board. The state teachers retirement board 3,904
may raise the rate per cent of the contribution to fourteen per 3,905
cent of the earnable compensation of all members. In making such 3,906
evaluation, the actuary shall use, as the actuarial assumptions, 3,907
such interest rates and mortality and other tables as are adopted 3,908
by the state teachers retirement board. He THE ACTUARY shall 3,909
86
compute the percentage of such earnable compensation, to be known 3,911
as the "employer rate," required annually to fund the liability 3,912
for all benefits provided by this chapter UNDER SECTIONS 3307.50 3,913
TO 3307.79 OF THE REVISED CODE, after deducting therefrom the 3,914
annuity and other benefits provided by the member's accumulated 3,915
contributions, AS DEFINED IN SECTION 3307.50 OF THE REVISED CODE, 3,916
deposits, and other appropriations, and to fund any deficiencies 3,917
in the various funds described in DIVISIONS (A) TO (F) OF section 3,919
3307.65 3307.14 of the Revised Code. 3,920
Sec. 3307.61 3307.29. Each employer shall cause to be 3,929
deducted, on each payroll of a contributor for each payroll 3,931
period, the contribution payable by such contributor as provided 3,932
in sections 3307.01 to 3307.72, inclusive, of the Revised Code 3,933
THIS CHAPTER. Each employer shall certify to the treasurer of 3,934
said employer on each payroll a statement as voucher for the 3,935
amounts so deducted and for the amount of the normal contribution 3,936
and the deficiency contribution payable by the employer. Each 3,937
employer shall send a duplicate of such statement to the
secretary of the state teachers retirement board. 3,938
Sec. 3307.62 3307.291. The treasurer of each employer, on 3,948
receipt from the employer of the voucher for deductions from the 3,949
compensation of teachers and for the contributions of the 3,950
employer, shall transmit monthly or at such times as the state 3,952
teachers retirement board designates the amounts specified in
such voucher to the secretary of the board. The secretary of the 3,953
board, after making a record of all such receipts, shall pay them 3,955
to the treasurer of state for use according to sections 3307.01 3,957
to 3307.72 of the Revised Code THIS CHAPTER. 3,958
Sec. 3307.64 3307.30. Employers who obtain funds directly 3,967
by taxation shall levy annually such additional taxes as are 3,969
required to provide the additional funds necessary to meet the 3,970
financial requirements imposed upon them by sections 3307.01 to 3,971
3307.72, inclusive, of the Revised Code THIS CHAPTER, and said 3,972
tax shall be placed before and in preference to all other items 3,973
87
except for sinking fund or interest purposes. 3,974
Sec. 3307.56 3307.31. Payments by boards of education to 3,983
the employers' trust fund of the state teachers retirement 3,984
system, as provided in sections 3307.61 3307.29 and 3307.62 3,985
3307.291 of the Revised Code, shall be made from the amount 3,987
allocated under Chapter 3317. of the Revised Code prior to its 3,988
distribution to the individual school districts. The amount due 3,989
from each school district shall be certified by the secretary of 3,990
the system to the superintendent of public instruction monthly, 3,991
or at such times as may be determined by the state teachers 3,992
retirement board.
The superintendent shall deduct, from the amount allocated 3,994
to each district under Chapter 3317. of the Revised Code, the 3,995
entire amounts due to the system from such district upon the 3,996
certification to him THE SUPERINTENDENT by the secretary thereof. 3,998
The superintendent shall certify to the director of budget 4,000
and management the amounts thus due the system for payment. 4,001
Sec. 3307.75 3307.32. All amounts due the state teachers 4,010
retirement system from the state treasury pursuant to this 4,012
chapter shall be promptly paid upon warrant of the auditor of 4,013
state pursuant to a voucher approved by the director of budget
and management. 4,014
Sec. 3307.33. MEMBERSHIP IN THE STATE TEACHERS RETIREMENT 4,016
SYSTEM SHALL CEASE ON OCCURRENCE OF ANY OF THE FOLLOWING: 4,017
RECEIPT OF PAYMENT PURSUANT TO SECTION 3307.56 OF THE REVISED 4,018
CODE OR UNDER A PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE 4,020
REVISED CODE; RETIREMENT AS PROVIDED IN SECTIONS 3307.58 AND 4,021
3307.59 OF THE REVISED CODE OR UNDER A PLAN ESTABLISHED UNDER 4,023
SECTION 3307.81 OF THE REVISED CODE; DEATH; OR DENIAL OF 4,024
MEMBERSHIP PURSUANT TO SECTION 3307.24 OF THE REVISED CODE. 4,025
Sec. 3307.381 3307.35. (A) As used in this section: 4,034
(1) "Superannuate" means a former teacher receiving a 4,036
service retirement allowance under section 3307.38 or 3307.39 of 4,037
the Revised Code from the state teachers retirement system or a 4,038
88
combined service retirement benefit paid in accordance with 4,039
section 3307.41 of the Revised Code, regardless of which 4,040
retirement system is paying the benefit. 4,041
(2), "Other OTHER system retirant" means a member or former 4,044
member of the public employees retirement system, Ohio police and 4,046
fire pension fund, school employees retirement system, state 4,048
highway patrol retirement system, or Cincinnati retirement system 4,049
who is receiving age and service or commuted age and service 4,050
retirement, or a disability benefit from a system of which the 4,051
retirant is a member or former member.
(B) A superannuate may be employed for temporary service 4,053
as a teacher, provided: 4,054
(1) At least two months have elapsed since the effective 4,056
date of the superannuate's retirement UNDER THIS CHAPTER. 4,057
(2) Such employment does not exceed eighty-five school 4,059
days, or the equivalent thereof in fractional service, during any 4,060
school year. 4,061
(C) A superannuate may be employed as a full-time teacher, 4,063
provided: 4,064
(1) The superannuate has received a retirement AN 4,066
allowance OR BENEFIT from the state teachers retirement system 4,069
UNDER THIS CHAPTER for at least eighteen months. 4,070
(2) The employer requests the retirement board of the 4,072
state teachers retirement system to authorize such employment. 4,073
(D) An other system retirant may be employed as a teacher, 4,075
provided at least two months have elapsed since the effective 4,076
date of the retirant's retirement or receipt of a disability 4,077
benefit. 4,078
(E) If a superannuate or other system retirant is employed 4,080
in accordance with division (B), (C), or (D) of this section, the 4,082
superannuate or retirant shall contribute to the state teachers
retirement system in accordance with section 3307.51 3307.26 of 4,084
the Revised Code and the employer shall contribute in accordance 4,086
with sections 3307.53 3307.28 and 3307.56 3307.31 of the Revised 4,088
89
Code. Such contributions shall be received as specified in 4,090
section 3307.65 3307.14 of the Revised Code. A superannuate or 4,092
other system retirant employed as a teacher is not a member of 4,093
the state teachers retirement system, does not have any of the 4,094
rights, privileges, or obligations of membership, except as 4,095
provided in this section, and is not eligible to receive health, 4,096
medical, hospital, or surgical benefits under section 3307.74 4,097
3307.39 of the Revised Code for employment subject to this 4,099
section.
(F) The employer that employs a superannuate or other 4,101
system retirant shall notify the state teachers retirement board 4,102
of the employment not later than the end of the month in which 4,103
the employment commences. Any overpayment of benefits to a 4,104
superannuate by the retirement system resulting from an 4,105
employer's failure to give timely notice may be charged to the 4,106
employer and may be certified and deducted as provided in section 4,107
3307.56 3307.31 of the Revised Code. 4,108
(G) On receipt of notice from an employer that a person 4,110
who is an other system retirant has been employed, the state 4,111
teachers retirement system shall notify the state retirement 4,112
system of which the other system retirant was a member of such 4,113
employment. 4,114
(H) A superannuate or other system retirant who has 4,116
received a retirement AN allowance or disability benefit for less 4,119
than the applicable period under division (B), (C), or (D) of 4,120
this section when employment as a teacher commences shall forfeit 4,122
the retirement allowance or disability benefit for any month the 4,124
superannuate or retirant is employed prior to the expiration of 4,125
such period. Contributions shall be made to the retirement 4,126
system from the first day of such employment, but service and 4,127
contributions for that period shall not be used in the 4,128
calculation of any benefit payable to the superannuate or other 4,129
system retirant, and those contributions shall be refunded on the 4,130
superannuate's or retirant's death or termination of the 4,132
90
employment. Contributions made on compensation earned after the 4,133
expiration of such period shall be used in calculation of the
benefit or payment due under this section. 4,134
(I) On receipt of notice from the Ohio police and fire 4,137
pension fund, public employees retirement system, or school 4,139
employees retirement system of the re-employment of a
superannuate, the state teachers retirement system shall not pay, 4,140
or if paid shall recover, the amount to be forfeited by the 4,141
superannuate in accordance with section 145.38, 742.26, or 4,142
3309.341 of the Revised Code. 4,143
(J)(1) On termination of employment under this section, a 4,145
superannuate or other system retirant may file an application 4,146
with the state teachers retirement system for a benefit under 4,147
this division, which shall consist of a single life annuity 4,148
having a reserve equal to the amount of the superannuate's or 4,149
retirant's accumulated contributions, AS DEFINED IN SECTION 4,151
3307.50 OF THE REVISED CODE, for the period of employment and an 4,152
equal amount from the employers' trust created by section 3307.65 4,153
3307.14 of the Revised Code, plus interest credited to the date 4,155
of retirement at the then current actuarial rate of interest. 4,156
The superannuate or other system retirant shall elect either to 4,157
receive the benefit as a monthly annuity for life or a lump-sum 4,158
payment discounted to the present value using the current 4,159
actuarial assumption rate of interest, except that if the monthly 4,160
annuity would be less than twenty-five dollars per month the 4,162
superannuate or retirant shall receive a lump-sum payment. 4,164
(2) A benefit payable under this division shall commence 4,166
on the latest of the following: 4,167
(a) The last day for which compensation for employment as 4,169
a teacher was paid; 4,170
(b) Attainment by the superannuate or other system 4,172
retirant of age sixty-five; 4,173
(c) If the superannuate or other system retirant was 4,175
previously employed under this section and previously received or 4,176
91
is receiving a benefit under this division, completion of a 4,177
period of twelve months since the effective date of the last 4,178
benefit under this division. 4,179
(3)(a) If a superannuate or other system retirant dies 4,181
while employed in employment subject to this section, a lump-sum 4,182
payment calculated in accordance with division (J)(1) of this 4,183
section shall be paid to the beneficiary designated under 4,184
division (D) of section 3307.48 3307.562 of the Revised Code. 4,185
(b) If at the time of death a superannuate or other system 4,188
retirant receiving a monthly annuity has received less than the 4,189
superannuate or retirant would have received as a lump-sum 4,190
payment, the difference between the amount received and the 4,191
amount that would have been received as a lump-sum payment shall 4,193
be paid to the superannuate's or retirant's beneficiary 4,194
designated under division (D) of section 3307.48 3307.562 of the 4,196
Revised Code. 4,197
(4) No amount received under this section shall be 4,199
included in determining an additional benefit under section 4,200
3307.403 3307.67 of the Revised Code or any other post-retirement 4,202
benefit increase. 4,203
(K) If the disability benefit of an other system retirant 4,205
employed under this section is terminated, the retirant shall 4,206
become a member of the state teachers retirement system, 4,208
effective on the first day of the month next following the 4,209
termination, with all the rights, privileges, and obligations of 4,210
membership. If such person, after the termination of the 4,211
retirant's disability benefit, earns two years of service credit 4,213
under this retirement system or under the public employees 4,214
retirement system, Ohio police and fire pension fund, school 4,215
employees retirement system, or state highway patrol retirement 4,217
system, the retirant's prior contributions as an other system 4,219
retirant under this section shall be included in the retirant's 4,220
total service credit, AS DEFINED IN SECTION 3307.50 OF THE 4,221
REVISED CODE, as a state teachers retirement system member, and 4,223
92
the retirant shall forfeit all rights and benefits of this 4,225
section. Not more than one year of credit may be given for any 4,226
period of twelve months.
(L) A superannuate shall not receive the pension portions 4,228
of a retirement PORTION OF AN allowance OR BENEFIT THAT IS 4,229
ATTRIBUTABLE TO CONTRIBUTIONS MADE UNDER SECTION 3307.28 OF THE 4,230
REVISED CODE for any period for which the superannuate is 4,232
compensated under a private contract, or through an independent 4,233
contractor, whereby the superannuate is to perform personal or 4,235
professional services for the employer by which the superannuate 4,236
was employed at the time of retirement. 4,238
(M) This section does not affect the receipt of benefits 4,240
by or eligibility for benefits of any person who on August 20, 4,241
1976, was receiving a disability benefit or service retirement 4,242
pension or allowance from a state or municipal retirement system 4,243
in Ohio and was a member of any other state or municipal 4,244
retirement system of this state. 4,245
(N) The retirement board of the state teachers retirement 4,247
system BOARD may make the necessary rules to carry into effect 4,248
this section and to prevent the abuse of the rights and 4,250
privileges thereunder. 4,251
Sec. 3307.72 3307.37. (A) Notwithstanding any other 4,260
provision of this chapter, any payment that is to be made under a 4,262
pension, annuity, allowance, or other type of benefit PAYABLE 4,263
UNDER THIS CHAPTER, other than a survivorship benefit, that has 4,265
been granted to a person under this chapter, any payment of 4,266
accumulated contributions standing to a person's credit under 4,267
this chapter, and any payment of any other amounts to be paid to 4,268
a person under this chapter upon the person's withdrawal of 4,269
contributions pursuant to this chapter shall be subject to any 4,270
withholding order issued pursuant to section 2907.15 of the
Revised Code or division (C)(2)(b) of section 2921.41 of the 4,271
Revised Code, and the state teacher's retirement board shall 4,272
comply with that withholding order in making the payment. 4,273
93
(B) Notwithstanding any other provision of this chapter, 4,275
if the board receives notice pursuant to section 2907.15 of the 4,276
Revised Code or division (D) of section 2921.41 of the Revised 4,277
Code that a person who has accumulated contributions standing to 4,278
the person's credit pursuant to this chapter is charged with a 4,280
violation of section 2907.02, 2907.03, 2907.04, 2907.05, or 4,281
2921.41 of the Revised Code, no payment of those accumulated 4,282
contributions, of any other amounts to be paid under this chapter 4,283
upon the person's withdrawal of contributions pursuant to this 4,284
chapter, or of any amount to be paid as a lump sum or single 4,286
payment under section 3307.381 3307.35 of the Revised Code shall 4,287
be made prior to whichever of the following is applicable: 4,289
(1) If the person is convicted of or pleads guilty to the 4,291
charge and no motion for a withholding order for purposes of 4,292
restitution has been filed under section 2907.15 of the Revised 4,293
Code or division (C)(2)(b)(i) of section 2921.41 of the Revised 4,295
Code, thirty days after the day on which final disposition of the 4,296
charge is made;
(2) If the person is convicted of or pleads guilty to the 4,298
charge and a motion for a withholding order for purposes of 4,299
restitution has been filed under section 2907.15 of the Revised 4,301
Code or division (C)(2)(b)(i) of section 2921.41 of the Revised 4,303
Code, the day on which the court decides the motion; 4,304
(3) If the charge is dismissed or the person is found not 4,306
guilty or not guilty by reason of insanity of the charge, the day 4,307
on which final disposition of the charge is made. 4,308
Sec. 3307.74 3307.39. (A) The state teachers retirement 4,317
board may enter into an agreement with insurance companies, 4,319
health insuring corporations, or government agencies authorized 4,321
to do business in the state for issuance of a policy or contract 4,322
of health, medical, hospital, or surgical benefits, or any 4,323
combination thereof, for those individuals receiving, UNDER THE 4,324
PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED 4,325
CODE, service retirement or a disability or survivor benefit 4,327
94
subscribing WHO SUBSCRIBE to the plan. Notwithstanding any other 4,328
provision of this chapter, the policy or contract may also 4,329
include coverage for any eligible individual's spouse and 4,330
dependent children and for any of the individual's sponsored 4,331
dependents as the board considers appropriate. If all or any 4,333
portion of the policy or contract premium is to be paid by any 4,334
individual receiving service retirement or a disability or 4,335
survivor benefit, the individual shall, by written authorization, 4,336
instruct the board to deduct the premium agreed to be paid by the 4,338
individual to the companies, corporations, or agencies. 4,339
The board may contract for coverage on the basis of part or 4,342
all of the cost of the coverage to be paid from appropriate funds 4,343
of the state teachers retirement system. The cost paid from the 4,344
funds of the system shall be included in the employer's 4,346
contribution rate provided by section 3307.53 3307.28 of the 4,347
Revised Code. 4,348
THE BOARD MAY ENTER INTO AN AGREEMENT UNDER THIS DIVISION 4,350
FOR COVERAGE OF RECIPIENTS OF BENEFITS UNDER A PLAN ESTABLISHED 4,351
UNDER SECTION 3307.81 OF THE REVISED CODE IF THE PLAN SELECTED 4,352
INCLUDES HEALTH, MEDICAL, HOSPITAL, OR SURGICAL BENEFITS, OR ANY 4,353
COMBINATION THEREOF. THE BOARD MAY CONTRACT FOR COVERAGE ON THE 4,354
BASIS THAT THE COST OF THE COVERAGE WILL BE PAID BY THE RECIPIENT 4,356
OR BY THE PLAN TO WHICH THE RECIPIENT CONTRIBUTED UNDER THIS 4,357
CHAPTER. THE BOARD MAY OFFER TO RECIPIENTS PLANS THAT PROVIDE 4,358
FOR DIFFERENT LEVELS OF COVERAGE OR FOR PREPAYMENT OF THE COST OF 4,359
COVERAGE.
The board may provide for self-insurance of risk or level 4,361
of risk as set forth in the contract with the companies, 4,362
corporations, or agencies, and may provide through the 4,363
self-insurance method specific benefits as authorized by the 4,364
rules of the board. 4,365
(B) If the board provides health, medical, hospital, or 4,367
surgical benefits through any means other than a health insuring 4,369
corporation, it shall offer to each individual eligible for the 4,371
95
benefits the alternative of receiving benefits through enrollment 4,372
in a health insuring corporation, if all of the following apply: 4,374
(1) The health insuring corporation provides health care 4,377
services in the geographical area in which the individual lives; 4,379
(2) The eligible individual was receiving health care 4,381
benefits through a health maintenance organization or a health 4,383
insuring corporation before retirement; 4,384
(3) The rate and coverage provided by the health insuring 4,387
corporation to eligible individuals is comparable to that 4,390
currently provided by the board under division (A) of this
section. If the rate or coverage provided by the health insuring 4,392
corporation is not comparable to that currently provided by the 4,394
board under division (A) of this section, the board may deduct 4,395
the additional cost from the eligible individual's monthly 4,396
benefit.
The health insuring corporation shall accept as an enrollee 4,400
any eligible individual who requests enrollment.
The board shall permit each eligible individual to change 4,402
from one plan to another at least once a year at a time 4,403
determined by the board. 4,404
(C) The board shall, beginning the month following receipt 4,406
of satisfactory evidence of the payment for coverage, make a 4,407
monthly payment to each recipient of service retirement, or a 4,408
disability or survivor benefit under the state teachers 4,409
retirement system PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 4,410
OF THE REVISED CODE who is eligible for insurance coverage under 4,411
part B of "The Social Security Amendments of 1965," 79 Stat. 301, 4,412
42 U.S.C.A. 1395j, as amended, AND MAY MAKE A MONTHLY PAYMENT TO 4,414
A RECIPIENT OF BENEFITS UNDER A PLAN ESTABLISHED UNDER SECTION 4,415
3307.81 OF THE REVISED CODE WHO IS ELIGIBLE FOR THAT INSURANCE 4,416
COVERAGE IF THE MONTHLY PAYMENTS ARE FUNDED THROUGH THE PLAN 4,418
SELECTED BY THE RECIPIENT. The payment shall be the greater of 4,419
the following:
(1) Twenty-nine dollars and ninety cents; 4,421
96
(2) An amount determined by multiplying the basic premium 4,424
for the coverage by a percentage, not exceeding ninety per cent, 4,425
determined by multiplying the years of service used in 4,426
calculating the service retirement or benefit OR, IN THE CASE OF 4,427
A RECIPIENT OF BENEFITS UNDER A PLAN ESTABLISHED UNDER SECTION 4,428
3307.81 OF THE REVISED CODE, THE PARTICIPANT'S YEARS OF SERVICE
by a percentage determined by the board not exceeding three per 4,429
cent. 4,430
THE BOARD SHALL MAKE ALL PAYMENTS UNDER THIS DIVISION 4,432
BEGINNING THE MONTH FOLLOWING RECEIPT OF SATISFACTORY EVIDENCE OF 4,433
THE PAYMENT FOR THE COVERAGE. 4,434
(D) The board shall establish by rule requirements for the 4,436
coordination of any coverage, payment, or benefit provided under 4,438
this section or section 3307.405 3307.61 of the Revised Code with 4,440
any similar coverage, payment, or benefit made available to the 4,441
same individual by the public employees retirement system, Ohio 4,442
police and fire pension fund, school employees retirement system, 4,444
or state highway patrol retirement system. 4,445
(E) The board shall make all other necessary rules 4,447
pursuant to the purpose and intent of this section. 4,448
Sec. 3307.741 3307.391. The state teachers retirement 4,457
board shall establish a program under which members of the STATE 4,459
TEACHERS retirement system, employers on behalf of members, and 4,461
persons receiving service, disability, or survivor benefits UNDER 4,462
THIS CHAPTER are permitted to participate in contracts for 4,464
long-term health care insurance. Participation may include 4,465
dependents and family members. If a participant in a contract 4,466
for long-term care insurance leaves employment, the participant 4,467
and the participant's dependents and family members may, at their 4,469
election, continue to participate in a program established under 4,470
this section in the same manner as if the participant had not 4,471
left employment, except that no part of the cost of the insurance 4,473
shall be paid by the participant's former employer. 4,474
Such program may be established independently or jointly 4,476
97
with one or more of the other retirement systems. For purposes 4,477
of this section, "retirement systems" has the same meaning as in 4,478
division (A) of section 145.581 of the Revised Code. 4,479
The board may enter into an agreement with insurance 4,481
companies, health insuring corporations, or government agencies 4,483
authorized to do business in the state for issuance of a 4,484
long-term care insurance policy or contract. However, prior to 4,485
entering into such an agreement with an insurance company or 4,486
health insuring corporation, the board shall request the 4,487
superintendent of insurance to certify the financial condition of 4,490
the company or corporation. The board shall not enter into the 4,491
agreement if, according to that certification, the company or 4,492
corporation is insolvent, is determined by the superintendent to 4,493
be potentially unable to fulfill its contractual obligations, or 4,495
is placed under an order of rehabilitation or conservation by a 4,496
court of competent jurisdiction or under an order of supervision 4,497
by the superintendent. 4,498
The board shall adopt rules in accordance with section 4,500
111.15 of the Revised Code governing the program. The rules 4,501
shall establish methods of payment for participation under this 4,502
section, which may include establishment of a payroll deduction 4,503
plan under section 3307.281 3307.70 of the Revised Code, 4,504
deduction of the full premium charged from a person's service, 4,506
disability, or survivor benefit, or any other method of payment 4,507
considered appropriate by the board. If the program is 4,508
established jointly with one or more of the other retirement 4,509
systems, the rules also shall establish the terms and conditions 4,510
of such joint participation. 4,511
Sec. 3307.40 3307.392. (A) Upon the death of a retirant 4,520
or disability benefit recipient who at the time of death is 4,522
receiving a service retirement allowance or disability benefit 4,523
pursuant to this chapter, a lump sum payment of one thousand 4,524
dollars shall be paid to any designated or qualified beneficiary 4,525
under division (D) of section 3307.48 of the Revised Code, or if 4,526
98
none, the state teachers retirement board may approve payment to 4,527
either the person responsible for the burial expenses or to the 4,528
decedent's estate following the completion of an application on a 4,529
form approved by the board. 4,530
(B) The state teachers retirement board may establish a 4,532
death benefit plan providing for a lump sum payment to eligible 4,533
beneficiaries, in addition to the lump sum payment made under 4,534
division (A) of this section 3307.661 OF THE REVISED CODE, on the 4,535
death of a person receiving a service retirement AN allowance or 4,538
disability benefit pursuant to this chapter. Any plan 4,540
established under this division SECTION shall be administered 4,542
separately from any other benefit or plan governed by this 4,543
chapter and shall require that charges paid by participants cover 4,544
the additional liability resulting from the death benefit as 4,545
determined by an actuary employed by the board. Participation 4,546
shall be limited to persons receiving a service retirement AN 4,547
allowance or disability benefit pursuant to this chapter. 4,549
The board shall establish charges and conditions of 4,551
eligibility for participation in any plan established under this 4,552
division SECTION. A person who elects to participate in a plan 4,553
by written authorization shall instruct the board to deduct the 4,555
amount charged under the plan from his service retirement THE 4,557
PERSON'S allowance or disability benefit. The board may enter 4,558
into contracts with insurance companies, financial institutions, 4,559
or other entities for the purpose of providing a death benefit 4,560
plan under this division SECTION. 4,561
Sec. 3307.71 3307.41. The right of a person to a pension, 4,570
an annuity, or a retirement allowance itself, any optional 4,573
benefit, OR any other right OR BENEFIT accrued or accruing to any 4,575
person, under sections 3307.01 to 3307.74 of the Revised Code
THIS CHAPTER, or the various funds created by section 3307.65 4,578
3307.14 of the Revised Code and all moneys and investments and 4,580
income thereof, are exempt from any state tax, except the tax
imposed by section 5747.02 of the Revised Code and are exempt 4,582
99
from any county, municipal, or other local tax, except taxes 4,583
imposed pursuant to section 5748.02 or 5748.08 of the Revised 4,584
Code and, except as provided in sections 3111.23, 3113.21, and 4,586
3307.72 3307.37 of the Revised Code, shall not be subject to 4,587
execution, garnishment, attachment, the operation of bankruptcy 4,588
or insolvency laws, or any other process of law whatsoever, and 4,589
shall be unassignable except as specifically provided in THIS 4,590
CHAPTER OR sections 3111.23, AND 3113.21, and 3307.01 to 3307.74 4,591
of the Revised Code. 4,592
Sec. 3307.711 3307.42. The granting TO ANY PERSON of a 4,602
retirement AN allowance, annuity, or pension to any person, AS 4,603
DEFINED IN SECTION 3307.50 OF THE REVISED CODE, OR THE GRANTING
OF A BENEFIT UNDER A PLAN ESTABLISHED UNDER SECTION 3307.81 OF 4,605
THE REVISED CODE, pursuant to AN action of the state teachers'
retirement board vests a right in such person, so long as he THE 4,607
PERSON remains the beneficiary of any of the funds established by 4,609
section 3307.65 3307.14 of the Revised Code, to receive such 4,610
retirement THE allowance, annuity, or pension, OR BENEFIT at the 4,612
rate fixed at the time of granting such retirement THE allowance, 4,613
annuity, or pension, OR BENEFIT. Such right shall also be vested 4,615
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 4,616
Revised Code. 4,617
Sec. 3307.712 3307.44. (A) Any person who is receiving an 4,626
allowance, AS DEFINED IN SECTION 3307.50 OF THE REVISED CODE, 4,627
benefit, or any increase under this chapter may, at any time, 4,629
waive his THE PERSON'S rights thereto, or to a portion thereof, 4,630
by filing a written notice of waiver with the state teachers 4,631
retirement board. Except as provided in division (B) of this 4,632
section, such waiver shall remain in effect until the first day 4,633
of the month following his THE PERSON'S death or the filing of 4,634
his THE PERSON'S written cancellation of such waiver with the 4,636
state teachers retirement board. Any amount so waived shall 4,637
forever be forfeited.
100
(B) If a beneficiary waives in writing all claim to any 4,639
benefits under this chapter prior to receipt of the first 4,640
benefit, the waiver shall put into effect the succession of 4,641
beneficiaries as provided in division (C) of section 3307.48 4,642
3307.562 of the Revised Code and shall be irrevocable. 4,644
Sec. 3307.4012 3307.46. Whenever the limits established by 4,653
section 415 of the "Internal Revenue Code of 1986," 100 Stat. 4,655
2085, 26 U.S.C.A. 415, as amended, are raised, the state teachers 4,656
retirement board may increase the amount of the pension, benefit, 4,657
or allowance of any person whose pension, benefit, or allowance 4,658
payable under section 3307.38 3307.58, 3307.39 3307.59, 3307.403 4,659
3307.63, 3307.43 3307.631, or 3307.431 3307.67 of the Revised 4,661
Code OR A PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE REVISED 4,662
CODE was limited by the application of section 415. The amount 4,664
of the increased pension, benefit, or allowance shall not exceed
the lesser of the amount the person would have received if the 4,665
limits established by section 415 had not been applied or the 4,666
amount the person is eligible to receive subject to the new 4,667
limits established by section 415.
Sec. 3307.461. THE STATE TEACHERS RETIREMENT BOARD MAY 4,669
ESTABLISH AND MAINTAIN A QUALIFIED GOVERNMENTAL EXCESS BENEFIT 4,670
ARRANGEMENT THAT MEETS THE REQUIREMENTS OF DIVISION (m) OF 4,671
SECTION 415 OF THE "INTERNAL REVENUE CODE OF 1986," 100 STAT. 4,673
2085, 26 U.S.C.A. 415, AS AMENDED, AND ANY REGULATIONS ADOPTED 4,675
THEREUNDER. IF ESTABLISHED, THE ARRANGEMENT SHALL BE A SEPARATE 4,676
PORTION OF THE STATE TEACHERS RETIREMENT SYSTEM AND BE MAINTAINED 4,677
SOLELY FOR THE PURPOSE OF PROVIDING TO RETIRED MEMBERS THAT PART 4,678
OF A BENEFIT OTHERWISE PAYABLE UNDER THIS CHAPTER THAT EXCEEDS 4,679
THE LIMITS ESTABLISHED BY SECTION 415 OF THE "INTERNAL REVENUE 4,680
CODE OF 1986," AS AMENDED. 4,681
MEMBERS PARTICIPATING IN AN ARRANGEMENT ESTABLISHED UNDER 4,683
THIS SECTION SHALL NOT BE PERMITTED TO ELECT TO DEFER 4,684
COMPENSATION TO THE ARRANGEMENT. CONTRIBUTIONS TO AND BENEFITS 4,685
PAID UNDER AN ARRANGEMENT SHALL NOT BE PAYABLE FROM A TRUST THAT 4,686
101
IS PART OF THE SYSTEM UNLESS THE TRUST IS MAINTAINED SOLELY FOR 4,687
THE PURPOSE OF PROVIDING SUCH BENEFITS. 4,688
THE BOARD SHALL ADOPT RULES TO ADMINISTER AN ARRANGEMENT 4,690
ESTABLISHED UNDER THIS SECTION. 4,691
Sec. 3307.751 3307.47. If a member, former member, 4,700
contributor, former contributor, retirant, or beneficiary PERSON 4,702
is paid any benefit by the state teachers retirement system UNDER 4,704
THE PLANS DESCRIBED IN SECTION 3307.031 OF THE REVISED CODE to
which he THE PERSON is not entitled, the benefit shall be repaid 4,707
to the retirement system by him THE PERSON. If he THE PERSON 4,709
fails to make the repayment, the retirement system shall withhold 4,710
the amount due from any benefit due him THE PERSON or his THE 4,711
PERSON'S beneficiary under this chapter, or may collect the 4,712
amount in any other manner provided by law. 4,713
Sec. 3307.50. AS USED IN SECTIONS 3307.50 TO 3307.79 OF 4,715
THE REVISED CODE: 4,717
(A) "PRIOR SERVICE" MEANS ALL SERVICE AS A TEACHER BEFORE 4,719
SEPTEMBER 1, 1920, MILITARY SERVICE CREDIT, ALL SERVICE PRIOR TO 4,720
SEPTEMBER 1, 1920, AS AN EMPLOYEE OF ANY EMPLOYER WHO COMES 4,721
WITHIN THE PUBLIC EMPLOYEES RETIREMENT SYSTEM, THE SCHOOL 4,722
EMPLOYEES RETIREMENT SYSTEM, OR ANY OTHER STATE RETIREMENT SYSTEM 4,723
ESTABLISHED UNDER THE LAWS OF OHIO, AND SIMILAR SERVICE IN 4,724
ANOTHER STATE, CREDIT FOR WHICH WAS PROCURED BY A MEMBER UNDER 4,725
FORMER SECTION 3307.33 OF THE REVISED CODE, PRIOR TO JUNE 25, 4,727
1945. PRIOR SERVICE CREDIT SHALL NOT BE GRANTED TO ANY MEMBER 4,728
FOR SERVICE FOR WHICH CREDIT OR BENEFITS HAVE BEEN RECEIVED IN 4,729
ANY OTHER STATE RETIREMENT SYSTEM IN OHIO OR FOR CREDIT THAT WAS 4,730
FORFEITED BY WITHDRAWAL OF CONTRIBUTIONS, UNLESS THE CREDIT HAS 4,731
BEEN RESTORED. IF THE TEACHER SERVED AS AN EMPLOYEE IN ANY TWO 4,732
OR ALL OF THE CAPACITIES, "PRIOR SERVICE" MEANS THE TOTAL 4,733
COMBINED SERVICE IN THE CAPACITIES PRIOR TO SEPTEMBER 1, 1920. 4,734
IF A TEACHER WHO HAS BEEN GRANTED PRIOR SERVICE CREDIT FOR 4,736
SERVICE RENDERED PRIOR TO SEPTEMBER 1, 1920, AS AN EMPLOYEE OF AN 4,737
EMPLOYER WHO COMES WITHIN THE PUBLIC EMPLOYEES RETIREMENT SYSTEM 4,738
102
OR THE SCHOOL EMPLOYEES RETIREMENT SYSTEM, ESTABLISHES, 4,739
SUBSEQUENT TO SEPTEMBER 16, 1957, AND BEFORE RETIREMENT, THREE 4,740
YEARS OF CONTRIBUTING SERVICE IN THE PUBLIC EMPLOYEES RETIREMENT 4,741
SYSTEM, OR ONE YEAR IN THE SCHOOL EMPLOYEES RETIREMENT SYSTEM, 4,742
THE PRIOR SERVICE CREDIT GRANTED SHALL BECOME, AT RETIREMENT, THE 4,744
LIABILITY OF THE OTHER SYSTEM IF THE PRIOR SERVICE OR EMPLOYMENT 4,746
WAS IN A CAPACITY COVERED BY THAT SYSTEM.
(B) "TOTAL SERVICE," "TOTAL SERVICE CREDIT," EXCEPT AS 4,748
PROVIDED IN SECTION 3307.57 OF THE REVISED CODE, OR "OHIO SERVICE 4,750
CREDIT" MEANS ALL SERVICE OF A MEMBER OF THE STATE TEACHERS 4,751
RETIREMENT SYSTEM SINCE LAST BECOMING A MEMBER AND, IN ADDITION 4,752
THERETO, RESTORED SERVICE CREDIT UNDER SECTION 3307.71 OF THE 4,753
REVISED CODE, ALL PRIOR SERVICE CREDIT, ALL MILITARY SERVICE 4,756
CREDIT COMPUTED AS PROVIDED IN THIS CHAPTER, AND ALL OTHER 4,757
SERVICE CREDIT ESTABLISHED UNDER SECTIONS 3307.26, FORMER 4,759
3307.513, FORMER 3307.514, 3307.53, 3307.54, 3307.72, 3307.73, 4,760
3307.74, 3307.76, 3307.761, 3307.77, 3307.771, AND 33.07.78 AND 4,761
FORMER SECTION 3307.52 OF THE REVISED CODE, AND SECTION 3 OF 4,763
AMENDED SUBSTITUTE SENATE BILL NO. 530 OF THE 114TH GENERAL 4,764
ASSEMBLY. ALL SERVICE CREDIT PURCHASED UNDER SECTION 3307.741 OF 4,767
THE REVISED CODE SHALL BE USED EXCLUSIVELY FOR THE PURPOSE OF 4,769
QUALIFYING FOR SERVICE RETIREMENT. 4,770
(C)(1) "SERVICE RETIREMENT" MEANS RETIREMENT AS PROVIDED 4,772
IN SECTION 3307.58 OR 3307.59 OF THE REVISED CODE. 4,773
(2) "DISABILITY RETIREMENT" MEANS RETIREMENT AS PROVIDED 4,775
IN SECTION 3307.63 OF THE REVISED CODE. 4,776
(D) "ACCUMULATED CONTRIBUTIONS" MEANS THE SUM OF ALL 4,778
AMOUNTS CREDITED TO A CONTRIBUTOR'S INDIVIDUAL ACCOUNT IN THE 4,779
TEACHERS' SAVINGS FUND, TOGETHER WITH INTEREST CREDITED THEREON 4,780
AT THE RATES APPROVED BY THE STATE TEACHERS RETIREMENT BOARD 4,781
PRIOR TO RETIREMENT. 4,782
(E) "ANNUITY" MEANS PAYMENTS FOR LIFE DERIVED FROM 4,784
CONTRIBUTIONS MADE BY A CONTRIBUTOR AND PAID FROM THE ANNUITY AND 4,785
PENSION RESERVE FUND. ALL ANNUITIES SHALL BE PAID IN TWELVE 4,786
103
EQUAL MONTHLY INSTALLMENTS. 4,787
(F) "PENSIONS" MEANS ANNUAL PAYMENTS FOR LIFE DERIVED FROM 4,789
APPROPRIATIONS MADE BY AN EMPLOYER AND PAID FROM THE ANNUITY AND 4,790
PENSION RESERVE FUND. ALL PENSIONS SHALL BE PAID IN TWELVE EQUAL 4,791
MONTHLY INSTALLMENTS. 4,792
(G)(1) "ALLOWANCE" MEANS THE PENSION PLUS THE ANNUITY, OR 4,795
ANY OTHER PAYMENT UNDER SECTIONS 3307.50 TO 3307.79 OF THE 4,796
REVISED CODE, AND INCLUDES A DISABILITY ALLOWANCE OR DISABILITY 4,797
BENEFIT.
(2) "DISABILITY ALLOWANCE" MEANS AN ALLOWANCE PAID ON 4,799
ACCOUNT OF DISABILITY UNDER SECTION 3307.631 OF THE REVISED CODE. 4,801
(3) "DISABILITY BENEFIT" MEANS A BENEFIT PAID AS 4,803
DISABILITY RETIREMENT UNDER SECTION 3307.63 OF THE REVISED CODE, 4,805
AS A DISABILITY ALLOWANCE UNDER SECTION 3307.631 OF THE REVISED 4,807
CODE, OR AS A DISABILITY BENEFIT UNDER SECTION 3307.57 OF THE 4,808
REVISED CODE.
(H) "ANNUITY RESERVE" MEANS THE PRESENT VALUE, COMPUTED 4,810
UPON THE BASIS OF MORTALITY TABLES ADOPTED BY THE STATE TEACHERS 4,811
RETIREMENT BOARD WITH INTEREST, OF ALL PAYMENTS TO BE MADE ON 4,812
ACCOUNT OF ANY ANNUITY, OR BENEFIT IN LIEU OF ANY ANNUITY, 4,813
GRANTED TO A MEMBER. 4,814
(I) "PENSION RESERVE" MEANS THE PRESENT VALUE, COMPUTED 4,816
UPON THE BASIS OF MORTALITY TABLES ADOPTED BY THE STATE TEACHERS 4,817
RETIREMENT BOARD WITH INTEREST, OF ALL PAYMENTS TO BE MADE ON 4,818
ACCOUNT OF ANY PENSION, OR BENEFIT IN LIEU OF ANY PENSION, 4,819
GRANTED TO A MEMBER OR TO A BENEFICIARY. 4,820
(J) "RETIRANT" MEANS ANY FORMER MEMBER WHO IS GRANTED AGE 4,822
AND SERVICE RETIREMENT AS PROVIDED IN SECTIONS 3307.57, 3307.58, 4,823
3307.59, AND 3307.60 OF THE REVISED CODE. 4,824
(K) "DISABILITY BENEFIT RECIPIENT" MEANS A MEMBER WHO IS 4,826
RECEIVING A DISABILITY BENEFIT. 4,827
Sec. 3307.013 3307.501. (A) As used in this section, 4,836
"percentage increase" means the percentage that an increase in 4,838
compensation is of the compensation paid prior to the increase. 4,839
104
(B) Notwithstanding division (U)(L) of section 3307.01 of 4,841
the Revised Code, for the purpose of determining final average 4,843
salary under this section, "compensation" has the same meaning as 4,844
in that division, except that it does not include any amount 4,845
resulting from a percentage increase paid to a member during the 4,846
member's two highest years of compensation that exceeds the 4,848
greater of the following, unless the percentage increase results 4,849
from employment by a different employer or promotion to a 4,850
position held by another employee within the twelve-month period 4,851
preceding the promotion; 4,852
(1) The highest percentage increase in compensation paid 4,854
to the member during any of the three years immediately preceding 4,855
the member's two highest years of compensation and any subsequent 4,856
partial year of compensation used in calculating the member's 4,857
final average salary; 4,858
(2) A percentage increase paid to the member as part of an 4,860
increase generally applicable to members employed by the 4,861
employer. An increase shall be considered generally applicable 4,862
if it is paid to members employed by a school district board of 4,863
education in positions requiring a license issued under section 4,865
3319.22 of the Revised Code in accordance with uniform criteria 4,866
applicable to all such members or if paid to members employed by 4,867
an employer other than a school district board of education in 4,868
accordance with uniform criteria applicable to all such members. 4,869
(C) The state teachers retirement board shall determine 4,871
the final average salary of a member by dividing the sum of the 4,872
member's annual compensation for the three highest years of 4,873
compensation for which the member made contributions plus any 4,874
amount determined under division (E) of this section by three, 4,875
except that if the member has a partial year of contributing 4,876
service in the year the member's employment terminates and the 4,877
compensation for the partial year is at a rate higher than the 4,878
rate of compensation for any one of the member's highest three 4,879
years of compensation, the board shall substitute the 4,880
105
compensation for the partial year for the compensation for the 4,881
same portion of the lowest of the member's three highest years of 4,882
compensation. If a member has less than three years of 4,883
contributing membership, the member's final average salary shall 4,884
be the member's total compensation for the period of contributing 4,885
membership plus any amount determined under division (E) of this 4,886
section divided by the total years, including any portion of a 4,887
year, of contributing service.
For the purpose of calculating benefits payable to a member 4,889
qualifying for service credit under division (R)(I) of section 4,891
3307.01 of the Revised Code, the board shall calculate the 4,892
member's final average salary by dividing the member's total 4,893
compensation as a teacher covered under this chapter plus any 4,894
amount determined under division (E) of this section by the total 4,895
number of years, including any portion of a year, of contributing 4,896
membership during that period. If contributions were made for 4,897
less than twelve months, the member's final average salary is the 4,898
total amount of compensation paid to the member during all 4,899
periods of contributions under this chapter. 4,900
(D) Contributions made by a member and an employer on 4,902
amounts that, pursuant to division (B) of this section, are not 4,903
compensation or are not included, pursuant to division (E) of 4,904
this section, for the purpose of determining final average salary 4,905
shall be treated as additional deposits to the member's account 4,906
under section 3307.51 3307.26 of the Revised Code and used to 4,907
provide additional annuity income. 4,909
(E) The state teachers retirement board shall adopt rules 4,911
establishing criteria and procedures for administering this 4,912
division. 4,913
The board shall notify each applicant for retirement of any 4,915
amount excluded from the applicant's compensation in accordance 4,916
with division (B) of this section and of the procedures 4,917
established by the board for requesting a hearing on this 4,918
exclusion. 4,919
106
Any applicant for retirement who has had any amount 4,921
excluded from the applicant's compensation in accordance with 4,923
division (B) of this section may request a hearing on this 4,924
exclusion. Upon receiving such a request, the board shall 4,925
determine in accordance with its criteria and procedures whether, 4,926
for good cause as determined by the board, all or any portion of 4,927
any amount excluded from the applicant's compensation in 4,928
accordance with division (B) of this section, up to a maximum of 4,929
seventy-five hundred dollars, is to be included in the 4,930
determination of final average salary under division (C) of this 4,931
section. Any determination of the board under this division 4,932
shall be final.
Sec. 3307.20 3307.51. (A) The state teachers retirement 4,941
board shall have prepared annually by or under the supervision of 4,944
an actuary an actuarial valuation of the pension assets, 4,945
liabilities, and funding requirements of the state teachers 4,946
retirement system as established pursuant to this chapter PLAN 4,947
DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE.
The actuary shall complete the valuation in accordance with 4,948
actuarial standards of practice promulgated by the actuarial 4,949
standards board of the American academy of actuaries and prepare 4,950
a report of the valuation. The report shall include all of the 4,951
following:
(1) A summary of the benefit provisions evaluated; 4,953
(2) A summary of the census data and financial information 4,955
used in the valuation; 4,956
(3) A description of the actuarial assumptions, actuarial 4,958
cost method, and asset valuation method used in the valuation, 4,959
including a statement of the assumed rate of payroll growth and 4,960
assumed rate of growth or decline in the number of members 4,961
contributing to the retirement system;
(4) A summary of findings that includes a statement of the 4,963
actuarial accrued pension liabilities and unfunded actuarial 4,964
accrued pension liabilities; 4,965
107
(5) A schedule showing the effect of any changes in the 4,967
benefit provisions, actuarial assumptions, or cost methods since 4,968
the last annual actuarial valuation; 4,969
(6) A statement of whether contributions to the retirement 4,971
system are expected to be sufficient to satisfy the funding 4,972
objectives established by the board. 4,973
The board shall submit the report to the Ohio retirement 4,976
study commission COUNCIL and the standing committees of the house 4,977
of representatives and the senate with primary responsibility for 4,979
retirement legislation not later than the first day of May 4,980
JANUARY following the year for which the valuation was made. 4,981
(B) At such times as the state teachers retirement board 4,984
determines, and at least once in each quinquennial period, the 4,985
board shall have prepared by or under the supervision of an 4,986
actuary an actuarial investigation of the mortality, service, and 4,988
other experience of the members, retirants, and beneficiaries of 4,990
the system, and other system retirants as defined in section 4,993
3307.381 3307.35 of the Revised Code to update the actuarial 4,994
assumptions used in the actuarial valuation required by division 4,997
(A) of this section. The actuary shall prepare a report of the 4,998
actuarial investigation. The report shall be prepared and any 4,999
recommended changes in actuarial assumptions shall be made in 5,001
accordance with the actuarial standards of practice promulgated
by the actuarial standards board of the American academy of 5,003
actuaries. The report shall include all of the following:
(1) A summary of relevant decrement and economic 5,005
assumption experience observed over the period of the 5,006
investigation;
(2) Recommended changes in actuarial assumptions to be 5,008
used in subsequent actuarial valuations required by division (A) 5,010
of this section;
(3) A measurement of the financial effect of the 5,012
recommended changes in actuarial assumptions. 5,013
The board shall submit the report to the Ohio retirement 5,016
108
study commission COUNCIL and the standing committees of the house 5,017
of representatives and the senate with primary responsibility for 5,019
retirement legislation not later than the first day of May 5,020
following the last fiscal year of the period the report covers. 5,021
(C) The board may at any time request the actuary to make 5,023
any other studies or actuarial valuations to determine the 5,025
adequacy of the normal and deficiency rates of contribution 5,026
provided by section 3307.53 3307.28 of the Revised Code, and 5,027
those rates may be adjusted by the board, as recommended by the 5,030
actuary, effective as of the first of any year thereafter. 5,031
(D) The board shall have prepared by or under the 5,033
supervision of an actuary an actuarial analysis of any introduced 5,034
legislation expected to have a measurable financial impact on the 5,035
retirement system. The actuarial analysis shall be completed in 5,036
accordance with the actuarial standards of practice promulgated 5,037
by the actuarial standards board of the American academy of 5,038
actuaries. The actuary shall prepare a report of the actuarial 5,039
analysis, which shall include all of the following: 5,040
(1) A summary of the statutory changes that are being 5,042
evaluated;
(2) A description of or reference to the actuarial 5,044
assumptions and actuarial cost method used in the report; 5,045
(3) A description of the participant group or groups 5,047
included in the report; 5,048
(4) A statement of the financial impact of the 5,050
legislation, including the resulting increase, if any, in the 5,051
employer normal cost percentage; the increase, if any, in 5,052
actuarial accrued liabilities; and the per cent of payroll that 5,053
would be required to amortize the increase in actuarial accrued
liabilities as a level per cent of covered payroll for all active 5,054
members over a period not to exceed thirty years; 5,055
(5) A statement of whether the scheduled contributions to 5,057
the system after the proposed change is enacted are expected to 5,058
be sufficient to satisfy the funding objectives established by 5,059
109
the board.
Not later than sixty days from the date of introduction of 5,061
the legislation, the board shall submit a copy of the actuarial 5,062
analysis to the legislative budget office of the legislative 5,063
service commission, the standing committees of the house of 5,064
representatives and the senate with primary responsibility for 5,065
retirement legislation, and the Ohio retirement study commission 5,066
COUNCIL.
(E) The board shall have prepared annually a report giving 5,069
a full accounting of the revenues and costs relating to the 5,070
provision of benefits under sections 3307.405 3307.39 and 3307.74 5,071
3307.61 of the Revised Code. The report shall be made as of June 5,074
30, 1997, and the thirtieth day of June of each year thereafter. 5,075
The report shall include the following: 5,076
(1) A description of the statutory authority for the 5,078
benefits provided; 5,079
(2) A summary of the benefits; 5,081
(3) A summary of the eligibility requirements for the 5,083
benefits; 5,084
(4) A statement of the number of participants eligible for 5,086
the benefits; 5,087
(5) A description of the accounting, asset valuation, and 5,089
funding method used to provide the benefits; 5,090
(6) A statement of the net assets available for the 5,092
provisions of benefits as of the last day of the fiscal year; 5,094
(7) A statement of any changes in the net assets available 5,097
for the provision of benefits, including participant and employer 5,098
contributions, net investment income, administrative expenses, 5,099
and benefits provided to participants, as of the last day of the 5,100
fiscal year;
(8) For the last six consecutive fiscal years, a schedule 5,102
of the net assets available for the benefits, the annual cost of 5,104
benefits, administrative expenses incurred, and annual employer 5,105
contributions allocated for the provision of benefits; 5,106
110
(9) A description of any significant changes that affect 5,108
the comparability of the report required under this division; 5,110
(10) A statement of the amount paid under division (C) of 5,112
section 3307.74 3307.39 of the Revised Code. 5,113
The board shall submit the report to the Ohio retirement 5,116
study commission COUNCIL and the standing committees of the house 5,117
of representatives and the senate with primary responsibility for 5,118
retirement legislation not later than the thirty-first day of 5,119
December following the year for which the report was made. 5,121
Sec. 3307.511. THE STATE TEACHERS RETIREMENT BOARD SHALL 5,123
COLLECT AND KEEP IN CONVENIENT FORM SUCH DATA AS IS NECESSARY FOR 5,124
THE PREPARATION OF THE REQUIRED MORTALITY AND SERVICE TABLES, AND 5,125
FOR THE COMPILATION OF SUCH OTHER INFORMATION AS IS REQUIRED FOR 5,126
THE ACTUARIAL VALUATION OF THE ASSETS AND LIABILITIES OF THE 5,127
FUNDS LISTED IN DIVISIONS (A) TO (F) OF SECTION 3307.14 OF THE 5,129
REVISED CODE. ON THE BASIS OF MORTALITY AND SERVICE EXPERIENCE 5,130
OF THE MEMBERS, RETIRANTS, AND BENEFICIARIES OF THE STATE 5,131
TEACHERS RETIREMENT SYSTEM, AND OTHER SYSTEM RETIRANTS 5,132
CONTRIBUTING IN ACCORDANCE WITH SECTION 3307.35 OF THE REVISED 5,134
CODE, THE BOARD SHALL ADOPT TABLES TO BE USED FOR VALUATION 5,136
PURPOSES AND FOR DETERMINING THE AMOUNT OF ANNUITIES TO BE
ALLOWED ON THE BASIS OF THE CONTRIBUTIONS. 5,137
Sec. 3307.201 3307.512. The state teachers retirement 5,146
board shall establish a period of not more than thirty years to 5,149
amortize the state teachers retirement system's unfunded
actuarial accrued pension liabilities FOR BENEFITS PAID UNDER 5,150
SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE. If in any year 5,151
the period necessary to amortize the unfunded actuarial accrued 5,153
pension liability exceeds thirty years, as determined by the
annual actuarial valuation required by section 3307.20 3307.51 of 5,156
the Revised Code, the board, not later than ninety days after 5,158
receipt of the valuation, shall prepare and submit to the Ohio 5,159
retirement study commission COUNCIL and the standing committees 5,160
of the house of representatives and the senate with primary 5,161
111
responsibility for retirement legislation a report that includes 5,162
the following information: 5,163
(A) The number of years needed to amortize the unfunded 5,166
actuarial accrued pension liability as determined by the annual 5,167
actuarial valuation;
(B) A plan approved by the board that indicates how the 5,170
board will reduce the amortization period of unfunded actuarial 5,171
accrued pension liability to not more than thirty years.
Sec. 3307.421 3307.513. Not later than September 1, 2000, 5,181
and each first day of September for the succeeding five years, 5,182
the state teachers retirement board shall make and submit a 5,183
report for the preceding fiscal year of the disability retirement 5,184
experience of each employer. The report shall specify the total 5,185
number of disability applications submitted UNDER SECTION 3307.62 5,186
OF THE REVISED CODE, the status of each application as of the 5,188
last day of the fiscal year, total applications granted or 5,189
denied, and the percentage of disability benefit recipients, AS 5,190
DEFINED IN SECTION 3307.50 OF THE REVISED CODE, to the total 5,192
number of the employer's employees who are members of the state 5,193
teachers retirement system. The report shall be submitted to the 5,194
governor, the Ohio retirement study council, and the chairpersons 5,196
of the standing committees and subcommittees of the senate and 5,197
house of representatives with primary responsibility for 5,198
retirement legislation.
Sec. 3307.36 3307.52. At THE TIME OF retirement UNDER THE 5,208
PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED
CODE, the total service credited a teacher shall consist of all 5,210
his THE TEACHER'S service as a teacher since he THE TEACHER last 5,211
became a member and, if he THE TEACHER has a prior service 5,212
certificate which is in full force and effect, all service 5,214
certified on such prior service certificate, together with
purchased service credit as provided in section 3307.33 3307.741 5,215
of the Revised Code. 5,216
Sec. 3307.31 3307.53. The state teachers retirement board 5,225
112
shall credit a year of service to any teacher PARTICIPATING IN 5,227
THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED 5,228
CODE who is employed on a full-time basis in a school district 5,229
for the number of months the regular day schools of such district 5,230
are in session in said district within any year. The board shall 5,231
adopt appropriate rules and regulations for the determination of 5,232
credit for less than a complete year of service, and shall be the 5,233
final authority in determining the number of years of service 5,234
credit. The board shall credit not more than one year for all 5,235
service rendered in any year. 5,236
If concurrent contributions are made to two or more 5,238
retirement systems, service credit shall be on the basis of the 5,239
ratio that contributions to this system bear to the total 5,240
contributions in all such systems. 5,241
THE BOARD SHALL ADOPT RULES FOR THE PURPOSE OF DETERMINING 5,243
THE NUMBER OF YEARS OR PARTIAL YEARS OF SERVICE CREDIT TO BE 5,244
GRANTED TO A MEMBER UNDER SECTION 3307.88 OF THE REVISED CODE. 5,245
THE AMOUNT OF SERVICE CREDIT SHALL BE BASED ON THE MEMBER'S 5,247
LENGTH OF PARTICIPATION IN AND CONTRIBUTION TO A PLAN ESTABLISHED 5,248
UNDER SECTION 3307.81 OF THE REVISED CODE. THE BOARD SHALL BE 5,249
THE FINAL AUTHORITY IN DETERMINING THE AMOUNT OF SERVICE CREDIT. 5,250
Sec. 3307.35 3307.54. An employer may establish a 5,259
retirement incentive plan for its employees who are members of 5,260
the state teachers retirement system PARTICIPATING IN THE PLAN 5,261
DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE. 5,262
The plan shall provide for purchase by the employer of service 5,263
credit for eligible employees who choose to participate in the 5,264
plan and for payment by the employer of the entire cost of such 5,265
service credit. A plan established under this section shall 5,266
remain in effect until terminated by the employer, except that, 5,267
once established, the plan must remain in effect for at least one 5,268
year.
An employee who is a member of the state teachers 5,270
retirement system shall be eligible to participate in a 5,271
113
retirement incentive plan if the employee has attained age fifty 5,273
and the employee agrees to retire and retires under section 5,274
3307.38 3307.58 of the Revised Code effective within ninety days 5,276
after receiving notice from the state teachers retirement system 5,277
that service credit has been purchased for the member under this 5,278
section.
Participation in the plan shall be available to all 5,280
eligible employees except that the employer may limit the number 5,281
of persons for whom it purchases credit in any calendar year to a 5,282
specified percentage of its employees who, ON THE FIRST DAY OF 5,284
JANUARY OF THAT YEAR, are members of the state teachers 5,285
retirement system on the first day of January of that year 5,286
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO
3307.79 OF THE REVISED CODE. The percentage shall not be less 5,287
than five per cent of such employees. If participation is 5,288
limited, employees with a greater length of service with the 5,289
employer have the right to elect to have credit purchased before 5,290
employees with a lesser length of service with the employer. 5,291
The amount of service credit purchased for any participant 5,293
shall be uniformly determined but shall not exceed the lesser of 5,294
the following: 5,295
(A) Five years of service credit; 5,297
(B) An amount of service credit equal to one-fifth of the 5,299
total service credited to the participant under FORMER sections 5,300
3307.02, 3307.021, 3307.022, 3307.22, 3307.28, 3307.31, 3307.311, 5,301
3307.32, 3307.41, 3307.411, 3307.412, 3307.512, 3307.513, 5,302
3307.514, 3307.515, AND 3307.52, and 3307.73 OR SECTIONS 3307.53, 5,304
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 5,306
the Revised Code.
For each year of service credit purchased under this 5,308
section, the employer shall pay an amount specified by the state 5,309
teachers retirement board equal to the additional liability 5,310
resulting from the purchase of that year of service credit as 5,311
114
determined by an actuary employed by the board. Payments shall 5,312
be made in accordance with rules adopted by the board, and the 5,313
board shall notify each member when the member is credited with 5,315
service purchased under this section. 5,316
No payment made to the state teachers retirement system 5,318
under this section shall affect any payment required by section 5,319
3307.53 3307.28 of the Revised Code. 5,320
Sec. 3307.46 3307.56. (A)(1) Subject to sections 3307.47 5,330
3307.37 and 3307.72 3307.561 of the Revised Code, a member 5,331
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 5,332
3307.79 OF THE REVISED CODE who ceases to be a teacher for any
cause other than death, retirement, receipt of a disability 5,335
benefit, or election of an alternative retirement plan under 5,336
section 3305.05 of the Revised Code, upon application, shall be
paid the accumulated contributions standing to the credit of the 5,338
member's individual account in the teachers' savings fund plus an 5,339
amount calculated in accordance with section 3307.80 3307.563 of 5,340
the Revised Code. If the member or the member's legal 5,342
representative cannot be found within ten years after the member 5,344
ceased making contributions pursuant to section 3307.51 3307.26 5,345
of the Revised Code, the accumulated contributions may be 5,348
transferred to the guarantee fund and thereafter paid to the 5,349
member, to the member's beneficiaries, or to the member's estate, 5,350
upon proper application.
(2) A member described in division (A)(1) of this section 5,353
who is married at the time of application for payment and is
eligible for age and service retirement under section 3307.38 5,354
3307.58 or 3307.39 3307.59 of the Revised Code shall submit with 5,357
the application a written statement by the member's spouse
attesting that the spouse consents to the payment of the member's 5,358
accumulated contributions. Consent shall be valid only if it is 5,359
signed and witnessed by a notary public. If the statement is not 5,361
submitted under this division, the application shall be
considered an application for service retirement and shall be 5,362
115
subject to division (F)(1) of section 3307.50 3307.60 of the 5,363
Revised Code. 5,364
(B) This division applies to any member who ceases to be a 5,367
teacher by electing an alternative retirement plan pursuant to 5,368
section 3305.05 of the Revised Code and who is not otherwise 5,369
employed as a teacher in a position to which the election does 5,370
not apply. For purposes of this division, "continuously 5,371
employed" has the same meaning as in section 3305.01 of the 5,372
Revised Code. 5,373
(1) Subject to sections 3307.47 3307.37 and 3307.72 5,375
3307.561 of the Revised Code, upon application of any member to 5,378
whom this division applies who is continuously employed, the 5,379
state teachers retirement board shall pay the accumulated 5,380
contributions standing to the credit of the member's individual 5,381
account in the teachers' savings fund plus an amount calculated 5,382
in accordance with section 3307.80 3307.563 of the Revised Code 5,383
to the entity providing the alternative retirement plan for 5,385
application to that plan in accordance with any contract the 5,386
member has entered into for purposes of that plan. 5,387
(2) Subject to sections 3307.47 3307.37 and 3307.72 5,389
3307.561 of the Revised Code, upon application of any member to 5,392
whom this division applies who has ceased to be continuously 5,393
employed, the state teachers retirement board shall pay the 5,394
accumulated contributions standing to the credit of the member's 5,395
individual account in the teachers' savings fund plus an amount 5,397
calculated in accordance with section 3307.80 3307.563 of the 5,399
Revised Code to the entity providing the alternative retirement 5,400
plan for application to that plan in accordance with any contract 5,401
the member has entered into for purposes of that plan. 5,402
Sec. 3307.47 3307.561. A member of the state teachers 5,411
retirement system PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 5,412
3307.50 TO 3307.79 OF THE REVISED CODE who has ceased to be a 5,414
teacher, and who is also a member of either the public employees
retirement system or the school employees retirement system, or 5,415
116
both, may not withdraw his THE MEMBER'S accumulated contributions 5,417
unless he THE MEMBER also withdraws his THE MEMBER'S 5,418
contributions from such THE other systems. 5,419
Sec. 3307.48 3307.562. (A) As used in this section and 5,428
section 3307.49 3307.66 of the Revised Code: 5,430
(1) "Child" means a biological or legally adopted child of 5,434
a deceased member. If a court hearing for an interlocutory 5,435
decree for adoption was held prior to the member's death, "child" 5,436
includes the child who was the subject of the hearing if a final 5,437
decree of adoption adjudging the member's spouse as the adoptive 5,438
parent is made subsequent to the member's death. 5,439
(2) "Parent" is a parent or legally adoptive parent of a 5,442
deceased member. 5,443
(3) "Dependent" means a beneficiary who receives one-half 5,445
of the beneficiary's support from a member during the twelve 5,446
months prior to the member's death. 5,447
(4) "Surviving spouse" means an individual who establishes 5,450
a valid marriage to a member at the time of the member's death by 5,451
marriage certificate or pursuant to division (E) of this section. 5,452
(5) "Survivor" means a spouse, child, or dependent parent. 5,455
(B) Except as provided in division (G)(1)(B) of section 5,458
3307.49 3307.563 or division (B)(G)(1) of section 3307.80 3307.66 5,460
of the Revised Code, should a member WHO IS PARTICIPATING IN THE 5,461
PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE 5,462
die before service retirement, the member's accumulated 5,463
contributions, plus an amount calculated in accordance with 5,464
section 3307.80 3307.563 of the Revised Code, and any amounts 5,465
owed and unpaid to a disability benefit recipient shall be paid 5,466
to such beneficiaries as the member has nominated by written 5,468
designation signed by the member and filed with the state 5,470
teachers retirement board prior to death. The nomination of 5,471
beneficiary shall be on a form provided by the retirement board.
The last nomination of any beneficiary revokes all previous 5,473
nominations. The member's marriage, divorce, marriage 5,474
117
dissolution, legal separation, or withdrawal of account, or the 5,475
birth of the member's child, or the member's adoption of a child, 5,476
shall constitute an automatic revocation of the member's previous 5,477
designation. If a deceased member was also a member of the 5,478
public employees retirement system or the school employees 5,479
retirement system, the beneficiary last established among the
systems shall be the sole beneficiary in all the systems. 5,480
Any beneficiary ineligible for monthly survivor benefits as 5,482
provided by section 3307.49 3307.66 of the Revised Code may waive 5,484
in writing all claim to any benefits and such waiver shall 5,485
thereby put in effect the succession of beneficiaries under 5,486
division (C) of this section, provided the beneficiary thereunder 5,487
is immediately eligible and agrees in writing to accept survivor 5,488
benefits as provided by section 3307.49 3307.66 of the Revised 5,489
Code. If the accumulated contributions of a deceased member are 5,491
not claimed by a beneficiary, or by the estate of the deceased 5,492
member, within ten years, they shall be transferred to the 5,493
guarantee fund and thereafter paid to such beneficiary or to the 5,494
member's estate upon application to the board. The board shall 5,495
formulate and adopt rules governing all designations of 5,496
beneficiaries. 5,497
(C) Except as provided in division (G)(1) of section 5,499
3307.49 3307.66 of the Revised Code, if a member dies before 5,500
service retirement and is not survived by a designated 5,503
beneficiary, any beneficiaries shall qualify, in the following 5,504
order of precedence, with all attendant rights and privileges: 5,505
(1) Surviving spouse; 5,507
(2) Children, share and share alike; 5,509
(3) A dependent parent, if that parent elects to take 5,511
survivor benefits under division (C)(2) of section 3307.49 5,512
3307.66 of the Revised Code; 5,514
(4) Parents, share and share alike; 5,516
(5) Estate. 5,518
If any survivor dies before payment is made under this 5,520
118
section or is not located prior to the ninety-first day after the 5,521
board receives notification of the member's death, the survivor 5,522
next in order of precedence shall qualify as a beneficiary, 5,523
provided that benefits under division (C)(2) of section 3307.49 5,524
3307.66 of the Revised Code are elected. In the event that the 5,525
beneficiary originally determined is subsequently located, the 5,526
beneficiary may qualify for benefits under division (C)(2) of 5,527
section 3307.49 3307.66 of the Revised Code upon meeting the 5,528
conditions of eligibility set forth in division (B) of that 5,530
section, but in no case earlier than the first day of the month 5,531
following application by such beneficiary. Any payment made to a 5,532
beneficiary as determined by the board shall be a full discharge 5,533
and release to the board from any future claims. 5,534
(D) Any amount due any person, as an annuitant, receiving 5,536
a monthly benefit, and unpaid to the annuitant at death, shall be 5,538
paid to the beneficiary named by written designation signed by
the annuitant and filed with the board. If no such designation 5,540
has been filed, or if the beneficiary designated is deceased or
is not located prior to the ninety-first day after the board 5,541
receives notification of the annuitant's death, such amount shall 5,542
be paid, in the following order of precedence to the annuitant's: 5,543
(1) Surviving spouse; 5,545
(2) Children, share and share alike; 5,547
(3) Parents, share and share alike; 5,549
(4) Estate. 5,551
For purposes of this division an "annuitant" is the last 5,553
person who received a monthly benefit pursuant to the plan of 5,554
payment selected by the former member. Such payment shall be a 5,555
full discharge and release to the board from any future claim for 5,556
such payment. 5,557
(E) If the validity of marriage cannot be established to 5,559
the satisfaction of the board for the purpose of disbursing any 5,560
amount due under this section or section 3307.49 3307.66 of the 5,562
Revised Code, the board may accept a decision rendered by a court 5,563
119
having jurisdiction in the state in which the member was 5,564
domiciled at the time of death that the relationship constituted 5,565
a valid marriage at the time of death, or the "spouse" would have 5,566
the same status as a widow or widower for purposes of sharing the 5,567
distribution of the member's intestate personal property. 5,568
If the death of a member is caused by one of the following 5,571
beneficiaries, no amount due under this chapter to the 5,572
beneficiary shall be paid to the beneficiary in the absence of a 5,573
court order to the contrary filed with the board: 5,574
(1) A beneficiary who is convicted of, pleads guilty to, 5,576
or is found not guilty by reason of insanity of a violation of or 5,578
complicity in the violation of either of the following: 5,579
(a) Section 2903.01, 2903.02, or 2903.03 of the Revised 5,582
Code;
(b) An existing or former law of any other state, the 5,585
United States, or a foreign nation that is substantially 5,587
equivalent to section 2903.01, 2903.02, or 2903.03 of the Revised 5,589
Code; 5,590
(2) A beneficiary who is indicted for a violation of or 5,592
complicity in the violation of the sections or laws described in 5,593
division (F)(1)(a) or (b) of this section and is adjudicated 5,595
incompetent to stand trial;
(3) A beneficiary who is a juvenile found to be a 5,597
delinquent child by reason of committing an act that, if 5,598
committed by an adult, would be a violation of or complicity in 5,599
the violation of the sections or laws described in division 5,601
(F)(1)(a) or (b) of this section. 5,602
Sec. 3307.80 3307.563. For the purposes of this section, 5,611
"service credit" includes only service credit obtained pursuant 5,613
to sections 3307.28 3307.53, 3307.31 3307.71, 3307.512 3307.72, 5,615
and 3307.73 3307.77 of the Revised Code.
(A) The state teachers retirement system shall add to a 5,617
member's accumulated contributions to be paid under section 5,618
3307.46 3307.56 or 3307.48 3307.562 of the Revised Code an amount 5,621
120
paid from the employers' trust fund equal to one of the
following:
(1) If the member has less than three full years of 5,623
service credit, an amount equal to interest on the member's 5,624
accumulated contributions, compounded annually, at a rate not 5,626
greater than four per cent established by the board;
(2) If the member has three or more full years of service 5,628
credit, but less than five full years, an amount equal to 5,629
interest on the member's accumulated contributions, compounded 5,631
annually, at a rate not greater than six per cent established by
the board; 5,632
(3) If the member has five or more full years of service 5,634
credit, the sum of the following amounts: 5,635
(a) An amount equal to interest on the member's 5,637
accumulated contributions, compounded annually, at a rate not 5,639
greater than six per cent established by the board; 5,640
(b) An amount equal to fifty per cent of the sum of the 5,642
member's contributions and payments under sections 3307.28 5,643
3307.26, 3307.51 3307.71, and 3307.512 3307.77 of the Revised 5,645
Code plus an amount equal to interest on that amount at a rate 5,646
not greater than six per cent established by the board. 5,648
Interest for each year included in the calculation under 5,650
this section shall be calculated from the first day of the 5,651
following year to the last day of the month preceding payment 5,653
under section 3307.46 3307.56 or 3307.48 3307.562 of the Revised 5,654
Code.
(B) Notwithstanding sections 3307.46 3307.56 and 3307.48 5,657
3307.562 of the Revised Code, neither the beneficiaries, 5,658
survivors, nor estate of a deceased member who was granted
disability benefits prior to death is eligible for the payment of 5,659
any amount calculated under this section. 5,660
Sec. 3307.41 3307.57. To coordinate and integrate 5,669
membership in the state retirement systems, the following 5,671
provisions apply:
121
(A) As used in this section: 5,673
(1) "Retirement systems" means the public employees 5,675
retirement system, the state teachers retirement system, and the 5,676
school employees retirement system. 5,677
(2) In addition to the meaning given in division (L) of 5,679
section 3307.01 3307.50 of the Revised Code, "disability benefit" 5,681
means "disability benefit" as defined in sections 145.01 and 5,682
3309.01 of the Revised Code. 5,683
(B) At the member's option OF A MEMBER PARTICIPATING IN 5,685
THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED 5,686
CODE, total contributions and service credit in all retirement 5,687
systems, including amounts paid to restore service credit under 5,688
sections 145.311, 3307.282, and 3309.261 of the Revised Code, 5,689
shall be used in determining the eligibility for benefits. If 5,690
total contributions and service credit are combined, the 5,691
following provisions apply:
(1) Service retirement or a disability benefit is 5,693
effective on the first day of the month next following the later 5,694
of: 5,695
(a) The last day for which compensation was paid; 5,697
(b) The attainment of minimum age or service credit for 5,699
benefits provided under this section. 5,700
(2) "Total service credit" includes the total credit in 5,702
all retirement systems except that such credit shall not exceed 5,703
one year for any period of twelve months. 5,704
(3) In determining eligibility for a disability benefit, 5,706
the medical examiner's report to the board of any retirement 5,707
system, showing that the member's disability incapacitates the 5,708
member for the performance of duty, may be accepted as sufficient 5,710
for granting a disability benefit. 5,711
(4) The retirement system in which the member had the 5,713
greatest service credit, without adjustment, shall determine and 5,714
pay the total benefit. If the member's credit is equal in two or 5,716
more retirement systems, the system having the member's largest 5,717
122
total contributions shall determine and pay the total benefit. 5,718
(5) In determining the total credit to be used in 5,720
calculating a benefit, credit shall not be reduced below that 5,721
certified by the system or systems transferring credit, except 5,722
that such total combined service credit shall not exceed one year 5,723
of credit for any one "year" as defined in the statute governing 5,724
the system making the calculation. 5,725
(6) The retirement system determining and paying the 5,727
benefit shall receive from the other system or systems the 5,728
member's refundable account at retirement or the effective date 5,729
of a disability benefit plus an equal amount from the employers' 5,730
trust fund. 5,731
(a) The annuity rates and mortality tables of the 5,733
retirement system making the calculation and paying the benefit 5,734
shall be applicable. 5,735
(b) Deposits made for the purchase of additional income, 5,737
with guaranteed interest, upon the member's request, shall be 5,738
transferred to the retirement system paying the regular benefit. 5,739
The return upon such deposits shall be that offered by the 5,740
retirement system making the calculation and paying the regular 5,741
benefit. 5,742
(C) A person receiving a benefit under this section, who 5,744
accepts employment amenable to coverage in any retirement system 5,745
that participated in the person's combined benefit, shall be 5,746
subject to the applicable provisions of law governing such 5,748
re-employment. If the person is subject to section 3307.381 5,749
3307.35 of the Revised Code and exceeds the limits on 5,750
re-employment established by that section, the retirement system 5,751
paying a combined benefit shall terminate the entire pension 5,752
portion of the benefit for the period of re-employment that 5,753
exceeds the limit in that section.
If a retirant should be paid any amount to which the 5,755
retirant is not entitled under the applicable provisions of law 5,757
governing such re-employment, such amount shall be recouped by 5,758
123
the retirement system paying such benefit by utilizing any 5,759
recovery procedure available under the law of the retirement 5,760
system covering such re-employment. 5,761
Sec. 3307.38 3307.58. Any member PARTICIPATING IN THE PLAN 5,770
DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE who 5,771
has five years of service credit and has attained age sixty, or 5,773
who has twenty-five years of service credit and has attained age 5,774
fifty-five, or who has thirty years of service credit shall be 5,775
granted service retirement after filing with the state teachers 5,776
retirement board a completed application on a form approved by 5,777
the board.
(A) Service retirement shall be effective on the first day 5,779
of the month next following the later of: 5,780
(1) The last day for which compensation was paid; or 5,782
(2) The attainment of minimum age or service credit 5,784
eligibility for benefits provided under this section. 5,785
Except as otherwise provided in division (D)(E) of this 5,787
section, the service retirement benefit shall be the greater of 5,788
the benefits provided in divisions (B) and (C)(D) of this 5,789
section. 5,790
(B)(1) Subject to any adjustment made under division 5,792
(B)(2)(C) of this section, the annual single lifetime benefit of 5,794
a member shall be the greater of the amounts determined by the 5,795
member's Ohio service credit multiplied by one of the following: 5,797
(a)(1) Eighty-six dollars; 5,799
(b) Two (2)(a) THE SUM OF THE FOLLOWING AMOUNTS: 5,801
(i) FOR EACH OF THE FIRST THIRTY YEARS OF OHIO SERVICE 5,803
CREDIT, TWO and one-tenth TWO-TENTHS per cent of the member's 5,805
final average salary, except that OR, SUBJECT TO THE LIMITATION 5,807
DESCRIBED IN DIVISION (B)(2)(b) OF THIS SECTION, TWO AND 5,808
FIVE-TENTHS PER CENT OF THE MEMBER'S FINAL AVERAGE SALARY IF THE 5,809
MEMBER HAS THIRTY-FIVE OR MORE YEARS OF SERVICE CREDIT UNDER 5,810
SECTION 3307.53, 3307.57, 3307.75, 3307.751, 3307.752, 3307.761, 5,812
3307.77, OR 3307.771 OF THE REVISED CODE, DIVISION (A)(2) OR (B) 5,813
124
OF FORMER SECTION 3307.513 OF THE REVISED CODE, FORMER SECTION 5,814
3307.514 OF THE REVISED CODE, SECTION 3307.72 OF THE REVISED CODE 5,815
EARNED AFTER JULY 1, 1978, OR ANY COMBINATION OF SERVICE CREDIT 5,816
UNDER THOSE SECTIONS;
(ii) FOR EACH YEAR OR FRACTION OF A YEAR OF OHIO SERVICE 5,818
CREDIT IN EXCESS OF THIRTY YEARS, TWO AND TWO-TENTHS PER CENT OF 5,820
THE MEMBER'S FINAL AVERAGE SALARY OR, SUBJECT TO THE LIMITATION 5,822
DESCRIBED IN DIVISION (B)(2)(b) OF THIS SECTION, if the member 5,824
has more than thirty years service credit earned under section 5,825
3307.31 or purchased under section 3307.512 3307.53, 3307.57, 5,829
3307.75, 3307.751, 3307.752, 3307.761, 3307.77, OR 3307.771 of 5,830
the Revised Code, the per cent shall be DIVISION (A)(2) OR (B) OF 5,832
FORMER SECTION 3307.513 OF THE REVISED CODE, FORMER SECTION 5,833
3307.514 OF THE REVISED CODE, SECTION 3307.72 OF THE REVISED CODE
EARNED AFTER JULY 1, 1978, OR ANY COMBINATION OF SERVICE CREDIT 5,834
UNDER THOSE SECTIONS, the per cent OF FINAL AVERAGE SALARY shown 5,836
in the following schedule times the member's final average salary 5,838
for each corresponding year or fraction of a year of service 5,839
credit earned or purchased under those sections that is in excess 5,841
of thirty years:
Year Per Year Per 5,844
of Cent of Cent 5,845
Service for that Service for that 5,847
Credit Year Credit Year 5,848
30.01-3100 31.00 2.5% 37.01-3800 38.00 3.2% 5,850
31.01-3200 32.00 2.6 38.01-3900 39.00 3.3 5,852
32.01-33.00 2.7 39.01-40.00 3.4 5,853
33.01-34.00 2.8 40.01-41.00 3.5 5,854
34.01-35.00 2.9 41.01-42.00 3.6 5,855
35.01-36.00 3.0 42.01-43.00 3.7 5,856
36.01-37.00 3.1 5,857
For purposes of this schedule, years of service credit shall be 5,861
rounded to the nearest one-hundredth of a year.
(b) FOR PURPOSES OF DIVISION (B)(2)(a) OF THIS SECTION, A 5,864
125
PERCENTAGE OF FINAL AVERAGE SALARY IN EXCESS OF TWO AND 5,865
TWO-TENTHS PER CENT SHALL BE APPLIED TO SERVICE CREDIT UNDER 5,866
SECTION 3307.57 OR 3307.761 OF THE REVISED CODE ONLY IF THE 5,867
SERVICE CREDIT WAS ESTABLISHED BY CONTRIBUTIONS MADE UNDER 5,868
SECTION 145.47, 742.31, 3309.47, 3309.58, OR 5505.15 OF THE 5,869
REVISED CODE OR RESTORED UNDER SECTION 145.31, 742.371, 3309.26, 5,870
OR 5505.20 OF THE REVISED CODE.
(2)(C) The annual single lifetime benefit of a member 5,872
determined under division (B)(1) of this section shall be 5,873
adjusted by the greater per cent shown in the following schedule 5,874
opposite the member's attained age or Ohio service credit. 5,875
Years of Per Cent 5,877
Attained or Ohio Service of Base 5,878
Age Credit Amount 5,879
58 25 75% 5,880
59 26 80 5,881
60 27 85 5,882
61 88 5,883
28 90 5,884
62 91 5,885
63 94 5,886
29 95 5,887
64 97 5,888
65 30 or more 100 5,889
Members shall vest the right to a benefit in accordance 5,892
with the following schedule, based on the member's attained age 5,893
by September 1, 1976: 5,894
Per Cent 5,896
Attained of Base 5,897
Age Amount 5,898
66 102% 5,900
67 104 5,901
68 106 5,902
69 108 5,903
126
70 or more 110 5,904
(3) The annual single lifetime benefit determined under 5,907
this division (B) OF THIS SECTION shall not exceed the lesser of 5,909
one hundred per cent of the final average salary or the limit 5,911
established by section 415 of the "Internal Revenue Code of 5,912
1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended. 5,913
(C)(D) The annual single lifetime benefit of a member 5,915
shall not exceed the lesser of the sum of the following amounts 5,916
or the limit established by section 415 of the "Internal Revenue 5,917
Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended: 5,918
(1) An annuity with a reserve equal to the member's 5,920
accumulated contributions; 5,921
(2) A pension equal to the amount in division (C)(D)(1) of 5,923
this section; 5,924
(3) An additional pension of forty dollars annually 5,926
multiplied by the number of years of prior and military service 5,927
credit, except years of credit purchased under section 3307.021 5,928
3307.751 OR 3307.752 of the Revised Code; 5,931
(4) An additional basic annual pension of one hundred 5,933
eighty dollars, provided the member had ten or more years of Ohio 5,934
service credit as of October 1, 1956, except that the additional 5,936
basic annual pension shall not exceed the sum of the annual
benefits provided by divisions (C)(D)(1), (2), and (3) of this 5,937
section. 5,938
(D)(E) Benefits determined under this section shall be 5,940
paid as provided in section 3307.50 3307.60 of the Revised Code. 5,941
Sec. 3307.39 3307.59. (A) A recipient of a disability 5,950
allowance under section 3307.431 3307.631 of the Revised Code who 5,952
is subject to division (C)(3) of that section may make 5,954
application for service retirement under this section. 5,955
Retirement shall be effective on the first day of the first month 5,956
following the last day for which the disability allowance is 5,957
paid.
(B) The annual allowance payable under this section shall 5,959
127
consist of the sum of the amounts determined under divisions 5,960
(B)(1) and (2) of this section: 5,961
(1) The greater of the following: 5,963
(a) An allowance calculated as provided in section 3307.38 5,965
3307.58 of the Revised Code, excluding any period during which 5,966
the applicant received a disability benefit under section 5,967
3307.431 3307.631 of the Revised Code; 5,969
(b) An allowance calculated by multiplying the applicant's 5,971
total service credit, including service credit for the last 5,972
continuous period during which he THE APPLICANT received a 5,973
disability benefit under section 3307.431 3307.631 of the Revised 5,975
Code, by two and one-tenth TWO-TENTHS per cent of his THE 5,976
APPLICANT'S final average salary, except that the allowance shall 5,979
be determined without application of division (B) of section 5,980
3307.013 3307.501 of the Revised Code and shall not exceed 5,981
forty-five per cent of the applicant's final average salary. 5,982
(2) An amount equal to the additional allowance the 5,984
recipient would receive under section 3307.403 3307.67 of the 5,985
Revised Code, plus any other additional amount he THE RECIPIENT 5,987
would receive under this chapter, had he THE RECIPIENT retired 5,989
under section 3307.38 3307.58 of the Revised Code effective on 5,991
the effective date of his THE RECIPIENT'S most recent continuous 5,993
period of receipt of a disability benefit under section 3307.431 5,994
3307.631 of the Revised Code.
(C) The allowance calculated under division (B) of this 5,996
section, exclusive of any amount added under division (B)(2) of 5,997
this section based on section 3307.403 3307.67 of the Revised 5,998
Code, shall be the base for all future additional allowances 6,000
under section 3307.403 3307.67 of the Revised Code. 6,001
The anniversary date for future additional allowances under 6,003
section 3307.403 3307.67 of the Revised Code shall be the 6,004
effective date of the recipient's most recent continuous period 6,006
of receipt of a disability benefit under section 3307.431 6,007
3307.631 of the Revised Code. 6,008
128
(D) The retirement allowance determined under this section 6,010
shall be paid as provided in section 3307.38 3307.58 of the 6,011
Revised Code. 6,012
Sec. 3307.50 3307.60. (A) Upon application for retirement 6,021
as provided in section 3307.38 3307.58 or 3307.39 3307.59 of the 6,023
Revised Code, the retirant may elect to receive a single lifetime 6,024
benefit, or may elect to receive the actuarial equivalent of the 6,026
retirant's benefit in a lesser amount, payable for life, and 6,027
continuing after death to a beneficiary under one of the 6,029
following optional plans:
(1) Option 1. The retirant's lesser benefit shall be paid 6,031
for life to the sole beneficiary named at retirement. 6,033
(2) Option 2. Some other portion of the retirant's 6,035
benefit shall be paid for life to the sole beneficiary named at 6,037
retirement. The beneficiary's monthly amount shall not exceed 6,039
the monthly amount payable to the retirant during the retirant's 6,040
lifetime.
(3) Option 3. The retirant's lesser benefit established 6,042
as provided under option 1 or option 2 shall be paid for life to 6,044
the sole beneficiary named at retirement, except that in the 6,046
event of the death of the sole beneficiary or termination of a 6,047
marital relationship between the retirant and the sole 6,048
beneficiary the retirant may elect to return to a single lifetime 6,049
benefit equivalent as determined by the state teachers retirement 6,050
board, if, in the case of termination of a marital relationship, 6,052
the election is made with the written consent of the beneficiary 6,053
or pursuant to an order of the court with jurisdiction over 6,054
termination of the marital relationship. 6,055
(4) Option 4. Upon the retirant's death before the 6,057
expiration of a certain period from the retirement date and 6,059
elected by the retirant, and approved by the board, the 6,061
retirant's benefit shall be continued for the remainder of such 6,063
period to the beneficiary. Monthly benefits shall not be paid to 6,064
joint beneficiaries, but they may receive the present value of 6,065
129
any remaining payments in a lump sum settlement. If all 6,066
beneficiaries die before the expiration of the certain period, 6,067
the present value of all payments yet remaining in such period 6,068
shall be paid to the estate of the beneficiary last receiving. 6,069
(5) Option 5. A plan of payment established by the state 6,071
teachers retirement board combining any of the features of 6,072
options 1, 2, and 4. 6,073
(B) Until the first payment is made to a former member 6,075
under section 3307.38 3307.58 or 3307.39 3307.59 of the Revised 6,077
Code, the former member may change the selection of a plan of 6,079
payment. If death occurs prior to an election of a plan of 6,081
payment, option 1 shall be paid to the spouse or other sole 6,082
dependent beneficiary.
(C) If the total benefit paid under this section is less 6,084
than the balance in the teachers' savings fund, the difference 6,086
shall be paid to the beneficiary provided under division (D) of 6,087
section 3307.48 3307.562 of the Revised Code. 6,088
(D) In the case of a retirant who elected an optional plan 6,090
prior to September 15, 1989: 6,091
(1) The death of the spouse or other designated 6,093
beneficiary following retirement shall, at the election of the 6,094
retirant, cancel any optional plan selected at retirement to 6,095
provide continuing lifetime benefits to the spouse or other 6,096
beneficiary and return the retirant to a single lifetime benefit 6,098
equivalent as determined by the board.
(2) A divorce, annulment, or marriage dissolution shall, 6,100
at the election of the retirant, cancel any optional plan 6,101
selected at retirement to provide continuing lifetime benefits to 6,102
the spouse as designated beneficiary and return the retirant to a 6,104
single lifetime benefit equivalent as determined by the board if 6,106
the election is made with the written consent of the beneficiary 6,107
or pursuant to an order of a court of common pleas or the court 6,108
of another state with jurisdiction over the termination of the 6,109
marriage.
130
(E) Following marriage or remarriage, a retirant may elect 6,111
a new optional plan of payment based on the actuarial equivalent 6,112
of the retirant's single lifetime benefit, as determined by the 6,114
board, except that if the retirant is receiving a retirement 6,115
allowance under an optional plan that provides for continuation 6,116
of benefits after death to a former spouse, the retirant may 6,117
elect a new optional plan of payment only with the written 6,118
consent of the former spouse or pursuant to an order of the court 6,119
with jurisdiction over the termination of the marriage. Such 6,120
plan shall become effective the first of the month following an 6,121
application on a form approved by the board. 6,122
(F)(1) Unless one of the following occurs, an application 6,124
for service retirement made pursuant to section 3307.38 3307.58 6,125
or 3307.39 3307.59 of the Revised Code by a married person shall 6,127
be considered an election of a benefit under option 2 as provided 6,128
for in division (A)(2) of this section under which one-half of 6,129
the lesser benefit payable during the life of the retirant will 6,130
be paid after death to the retirant's spouse for life as sole 6,131
beneficiary:
(a) The retirant selects an optional plan under division 6,133
(A) of this section providing for payment after death to the 6,135
retirant's spouse for life as sole beneficiary of more than 6,136
one-half of the lesser benefit payable during the life of the 6,137
retirant.
(b) The retirant submits to the retirement board a written 6,139
statement signed by the spouse attesting that the spouse consents 6,140
to the retirant's election to receive a single lifetime annuity 6,143
or a payment under an optional benefit plan under which after the 6,144
death of the retirant the surviving spouse will receive less than 6,145
one-half of the lesser benefit payable during the life of the 6,146
retirant.
(2) An application for retirement shall include an 6,148
explanation of all of the following: 6,149
(a) That, if the member is married, unless the spouse 6,152
131
consents to another plan of payment, the member's retirement 6,153
allowance will be paid under "option 2" and consist of the 6,154
actuarial equivalent of the member's retirement allowance in a 6,155
lesser amount payable for life and one-half of the lesser 6,156
allowance continuing after death to the surviving spouse for the
life of the spouse; 6,157
(b) A description of the alternative plans of payment 6,160
available with the consent of the spouse;
(c) That the spouse may consent to another plan of payment 6,163
and the procedure for giving consent;
(d) That consent is irrevocable once notice of consent is 6,165
filed with the board. 6,166
Consent shall be valid only if it is signed, in writing, 6,168
and witnessed by a notary public. 6,169
(3) If the retirant does not select an optional plan of 6,171
payment as described in division (F)(1)(a) of this section and 6,172
the board does not receive the written statement provided for in 6,173
division (F)(1)(b) of this section, it shall determine and pay 6,174
the retirement allowance in accordance with this division, except 6,176
that the board may provide by rule for waiver by the board of the 6,177
statement and payment of the benefits other than in accordance 6,178
with this division or payment under section 3307.46 3307.56 of 6,179
the Revised Code if the retirant is unable to obtain the 6,182
statement due to absence or incapacity of the spouse or other 6,183
cause specified by the board. 6,184
(G) For the purpose of determining actuarial equivalence 6,186
under this section, on the advice of an actuary employed by the 6,187
board, the board shall adopt mortality tables that may take into 6,188
consideration the membership experience of the state teachers 6,189
retirement system and may also include the membership experience 6,190
of the public employees retirement system and the school 6,191
employees retirement system. 6,192
Sec. 3307.405 3307.61. The board of the state teachers 6,201
retirement system BOARD shall make available to each member or 6,203
132
former member receiving a monthly allowance or benefit UNDER 6,205
SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE on or after 6,206
January 1, 1968, who has attained the age of sixty-five years, 6,207
and who is not eligible to receive hospital insurance benefits 6,208
under the federal old age, survivors, and disability insurance 6,209
program, hospital insurance coverage substantially equivalent to 6,210
the federal hospital insurance benefits, Social Security 6,211
Amendments of 1965, 79 Stat. 291, 42 U.S.C.A. 1395c, as amended. 6,212
This coverage shall also be made available, to the wife, husband, 6,213
widow, or widower of such member or former member, provided such 6,214
wife, husband, widow, or widower has attained age sixty-five and 6,215
is not eligible to receive hospital insurance benefits under the 6,216
federal old age, survivors, and disability insurance program. 6,217
The widow or widower of a member or former member shall be 6,218
eligible for such coverage only if he or she is the recipient of 6,219
a monthly allowance or benefit from this system. One-half of the 6,220
cost of the premium for such coverage shall be paid from the 6,221
appropriate funds of the state teachers retirement system and 6,222
one-half by the recipient of the allowance or benefit. 6,223
The cost of such coverage, paid from the funds of the 6,225
system, shall be included in the employer's contribution rate 6,226
provided by sections 3307.53 3307.28, 3307.56 3307.30, and 6,228
3307.64 3307.31 of the Revised Code. The retirement board is 6,229
authorized to make all necessary rules pursuant to the purpose 6,230
and intent of this section, and shall contract for such coverage 6,231
as provided in section 3307.74 3307.39 of the Revised Code. 6,233
Notwithstanding sections 3307.53 3307.28, 3307.56 3307.30, 6,236
and 3307.64 3307.31 of the Revised Code, the employer's 6,237
contribution rate shall not be increased until July 1, 1969, or 6,238
later to reflect the increased costs created by this section. 6,239
Sec. 3307.42 3307.62. (A) The state teachers retirement 6,248
system shall provide disability coverage to each member 6,250
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 6,251
3307.79 OF THE REVISED CODE who has at least five years of total 6,252
133
service credit.
Not later than October 16, 1992, the state teachers 6,254
retirement board shall give each person who is a member on July 6,255
29, 1992, the opportunity to elect disability coverage either 6,257
under FORMER section 3307.43 of the Revised Code or under FORMER 6,259
section 3307.431 of the Revised Code. The board shall mail 6,261
notice of the election, accompanied by an explanation of the 6,262
coverage under each of the Revised Code sections and a form on 6,263
which the election is to be made, to each member at the member's 6,264
last known address. The board shall also provide the explanation
and form to any member on the member's request. 6,265
Regardless of whether the member actually receives notice 6,267
of the right to make an election, a member who fails to file a 6,269
valid election under this section shall be considered to have
elected disability coverage under section 3307.43 3307.63 of the 6,271
Revised Code. To be valid, an election must be made on the form 6,272
provided by the retirement board, signed by the member, and filed 6,273
with the board not later than one hundred eighty days after the 6,274
date the notice was mailed, or, in the case of a form provided at 6,275
the request of a member, a date specified by rule of the 6,276
retirement board. Once made, an election is irrevocable, but if 6,277
the member ceases to be a member of the retirement system, the 6,278
election is void. If a person who makes an election under this 6,279
section also makes an election under section 145.35 or 3309.39 of 6,280
the Revised Code, the election made for the system that pays a 6,281
disability benefit to that person shall govern the benefit. 6,282
Disability coverage shall be provided under section 6,284
3307.431 3307.631 of the Revised Code for persons who become 6,285
members after July 29, 1992, and for members who elect under this 6,288
division to be covered under section 3307.431 3307.631 of the 6,290
Revised Code.
The retirement board may adopt rules governing elections 6,292
made under this division. 6,293
(B) Application for a disability benefit may be made by a 6,295
134
member, by a person acting in the member's behalf, or by the 6,296
member's employer, provided IF the member IS PARTICIPATING IN THE 6,298
PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED 6,299
CODE, has at least five years of total service credit, and has 6,302
disability coverage under section 3307.43 3307.63 or 3307.431 6,303
3307.631 of the Revised Code. The application for a disability 6,305
benefit shall be made on a form approved by the state teachers 6,306
retirement board. The benefit payable to any member whose 6,307
application is approved shall become effective on the first day 6,308
of the month next following the later of the following:
(1) The last day for which compensation was paid; 6,310
(2) The attainment of eligibility for a disability 6,312
benefit. 6,313
(C) Medical examination of the member shall be conducted 6,315
by a competent, disinterested physician or physicians selected by 6,316
the retirement board to determine whether the member is mentally 6,317
or physically incapacitated for the performance of duty by a 6,318
disabling condition, either permanent or presumed to be permanent 6,319
for twelve continuous months following the filing of an 6,320
application. The disability must have occurred since last 6,322
becoming a member, or it must have increased since last becoming 6,323
a member to such an extent as to make the disability permanent or 6,324
presumably permanent for twelve continuous months following the 6,325
filing of an application. 6,326
(D) Application for a disability benefit must be made 6,328
within two years from the date the member's contributing service 6,329
terminated, unless the retirement board determines that the 6,330
member's medical records demonstrate conclusively that at the 6,331
time the two-year period expired, the member was physically or 6,332
mentally incapacitated for duty as a teacher and unable to make 6,333
application. Application may not be made by any person receiving 6,334
service retirement benefits under section 3307.38 3307.58 or 6,335
3307.39 3307.59 of the Revised Code or any person who, pursuant 6,337
to section 3307.46 3307.56 of the Revised Code, has been paid the 6,338
135
accumulated contributions standing to the credit of the person's 6,340
individual account in the teachers' savings fund. 6,341
(E) If the physician or physicians determine that the 6,345
member qualifies for a disability benefit, the retirement board 6,346
concurs with the determination, and the member agrees to medical 6,347
treatment as specified in division (G) of this section, the 6,348
member shall receive a disability benefit under section 3307.43 6,349
3307.63 or 3307.431 3307.631 of the Revised Code. If such 6,351
physician or physicians determine that the member does not 6,352
qualify for a disability benefit, the report of the examiner or 6,353
examiners shall be evaluated by a board of medical review 6,354
composed of three physicians appointed by the retirement board. 6,355
(F) The state teachers retirement board shall render an 6,357
order determining whether or not the applicant shall be granted a 6,358
disability benefit. Notification to the applicant shall be 6,359
issued, and upon the request of an applicant who is denied a 6,360
disability benefit, a hearing or appeal relative to such order 6,361
shall be conducted in accordance with procedures established by 6,362
the retirement board. 6,363
(G) The state teachers retirement board shall adopt rules 6,366
requiring each disability benefit recipient, as a condition of 6,367
continuing to receive a disability benefit, to agree in writing 6,368
to obtain any medical treatment recommended by the board's 6,369
physician and submit medical reports regarding the treatment. If 6,371
the board determines that a disability benefit recipient is not 6,372
obtaining the medical treatment or the board does not receive a
required medical report, the disability benefit shall be 6,373
suspended until the treatment is obtained, the report is received 6,375
by the board, or the board's physician certifies that the 6,376
treatment is no longer helpful or advisable. Should the 6,378
recipient's failure to obtain treatment or submit a medical
report continue for one year, the recipient's right to the 6,380
disability benefit shall be terminated as of the effective date 6,381
of the original suspension.
136
(H) If an employer files an application for a disability 6,383
benefit as a result of a member having been separated from 6,384
service because the member is considered to be incapacitated for 6,386
the performance of duty, and the board denies the disability
benefit, the board shall so certify to the employer and such THE 6,387
employer shall restore the member to the member's previous 6,389
position and salary or to a similar position and salary. 6,390
Sec. 3307.43 3307.63. A member PARTICIPATING IN THE PLAN 6,400
DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE who 6,401
has elected disability coverage under this section, has, not 6,403
attained age sixty, and is determined by the state teachers 6,405
retirement board under section 3307.42 3307.62 of the Revised 6,407
Code to qualify for a disability benefit shall be retired on 6,408
disability under this section.
Upon disability retirement, a member shall receive an 6,410
annual amount that shall consist of: 6,411
(A) An annuity having a reserve equal to the amount of the 6,413
member's accumulated contributions at that time; 6,414
(B) A pension that shall be the difference between the 6,416
annuity and an annual amount determined by multiplying the number 6,417
of years of Ohio service credit of such member, and in addition 6,418
the number of years and fraction of a year between the effective 6,419
date of his THE MEMBER'S disability retirement and the date he 6,421
THE MEMBER attained age sixty, assuming continuous service, by 6,422
eighty-six dollars, or by two per cent of his THE MEMBER'S final 6,423
average salary, whichever is greater. Such disability retirement 6,425
shall not be less than thirty per cent nor more than seventy-five 6,426
per cent of his THE MEMBER'S final average salary, except that it 6,428
shall not exceed any limit to which the retirement system is 6,429
subject under section 415 of the "Internal Revenue Code of 1986," 6,430
100 Stat. 2085, 26 U.S.C.A. 415, as amended.
If the member is not receiving a disability benefit under 6,432
section 3307.41 3307.57 of the Revised Code, but is receiving a 6,434
disability benefit from either the public employees retirement 6,435
137
system or the school employees retirement system, then such 6,436
member shall not be eligible for service credit based upon the 6,437
number of years and fractions thereof between the date of 6,438
disability and the date he THE MEMBER attained age sixty as 6,439
otherwise provided in this section. 6,441
A disability retirant under this section whose disability 6,443
retirement has been terminated, when eligible, may apply for 6,444
service retirement provided by section 3307.38 3307.58 of the 6,445
Revised Code. 6,447
Sec. 3307.431 3307.631. (A) A member with PARTICIPATING 6,457
IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE
REVISED CODE WHO HAS disability coverage under this section who 6,459
AND is determined by the state teachers retirement board under 6,460
section 3307.42 3307.62 of the Revised Code to qualify for a 6,462
disability benefit shall receive a disability allowance under 6,463
this section. The allowance shall be an annual amount equal to 6,464
the greater of the following:
(1) Forty-five per cent of the member's final average 6,466
salary; 6,467
(2) The member's total service credit multiplied by two 6,469
and one-tenth TWO-TENTHS per cent of his THE MEMBER'S final 6,471
average salary, not exceeding sixty per cent of his THE MEMBER'S 6,473
final average salary.
(B) Sufficient reserves for payment of the disability 6,475
allowance shall be transferred to the annuity and pension reserve 6,476
fund from the employers' trust fund. The accumulated 6,477
contributions of the member shall remain in the teachers' savings 6,478
fund. No part of the allowance paid under this section shall be 6,479
charged against the member's accumulated contributions. 6,480
(C) A disability allowance paid under this section shall 6,482
terminate at the earliest of the following: 6,483
(1) The effective date of service retirement under section 6,485
3307.38 3307.57 or 3307.41 3307.58 of the Revised Code; 6,487
(2) The date the allowance is terminated under section 6,489
138
3307.44 3307.64 of the Revised Code; 6,490
(3) The later of the last day of the month in which the 6,492
recipient attains age sixty-five, or the last day of the month in 6,493
which the benefit period ends as follows: 6,494
Attained Age at Effective Date 6,496
of Disability Allowance Benefit Period 6,497
60 or 61 60 months 6,498
62 or 63 48 months 6,499
64 or 65 36 months 6,500
66, 67, or 68 24 months 6,501
69 or older 12 months 6,502
Sec. 3307.44 3307.64. A disability benefit recipient, 6,512
notwithstanding section 3319.13 of the Revised Code, shall retain 6,513
membership in the state teachers retirement system and shall be 6,514
considered on leave of absence during the first five years 6,516
following the effective date of a disability benefit.
The state teachers retirement board shall require any 6,518
disability benefit recipient to submit to an annual medical 6,520
examination by a physician selected by the board, except that the 6,521
board may waive the medical examination if the board's physician 6,522
certifies that the recipient's disability is ongoing. If a 6,523
disability benefit recipient refuses to submit to a medical 6,525
examination, the recipient's disability benefit shall be
suspended until the recipient withdraws the refusal. If the 6,527
refusal continues for one year, all the recipient's rights under 6,529
and to the disability benefit shall be terminated as of the 6,530
effective date of the original suspension. 6,531
After the examination, the examiner shall report and 6,534
certify to the board whether the disability benefit recipient is 6,535
no longer physically and mentally incapable of resuming the 6,536
service from which the recipient was found disabled. If the 6,538
board concurs in a report by the examining physician that the 6,540
disability benefit recipient is no longer incapable, the payment 6,542
of a disability benefit shall be terminated not later than the 6,543
139
following thirty-first day of August or upon employment as a 6,544
teacher prior thereto. If the leave of absence has not expired, 6,545
the board shall so certify to the disability benefit recipient's 6,546
last employer before being found disabled that the recipient is 6,547
no longer physically and mentally incapable of resuming service 6,549
that is the same or similar to that from which the recipient was 6,550
found disabled. If the recipient was under contract at the time 6,552
the recipient was found disabled, the employer by the first day 6,554
of the next succeeding year shall restore the recipient to the 6,555
recipient's previous position and salary or to a position and 6,556
salary similar thereto, unless the recipient was dismissed or 6,558
resigned in lieu of dismissal for dishonesty, misfeasance, 6,559
malfeasance, or conviction of a felony. 6,560
A disability benefit shall terminate if the disability 6,563
benefit recipient becomes employed as a teacher in any public or 6,564
private school or institution in this state or elsewhere. An 6,565
individual receiving a disability benefit from the state teachers 6,567
retirement system shall be ineligible for any employment as a 6,568
teacher and it shall be unlawful for any employer to employ the 6,569
individual as a teacher. If any employer should employ or 6,571
reemploy the individual prior to the termination of a disability 6,572
benefit, the employer shall file notice of employment with the 6,573
state teachers retirement board designating the date of the 6,575
employment. If the individual should be paid both a disability 6,577
benefit and also compensation for teaching service for all or any 6,578
part of the same month, the secretary of the state teachers 6,579
retirement board shall certify to the employer or to the
superintendent of public instruction the amount of the disability 6,580
benefit received by the individual during the employment, which 6,582
amount shall be deducted from any amount due the employing 6,583
district under Chapter 3317. of the Revised Code or shall be paid 6,584
by the employer to the annuity and pension reserve fund. 6,585
Each disability benefit recipient shall file with the board 6,589
an annual statement of earnings, current medical information on 6,591
140
the recipient's condition, and any other information required in 6,592
rules adopted by the board. The board may waive the requirement 6,594
that a disability benefit recipient file an annual statement of 6,595
earnings or current medical information if the board's physician 6,596
certifies that the recipient's disability is ongoing. 6,597
The board shall annually examine the information submitted 6,599
by the recipient. If a disability benefit recipient refuses to 6,600
file the statement or information, the disability benefit shall 6,602
be suspended until the statement and information are filed. If 6,603
the refusal continues for one year, the recipient's right to the 6,604
disability benefit shall be terminated as of the effective date 6,605
of the original suspension. 6,606
A disability benefit also may be terminated by the board at 6,608
the request of the disability benefit recipient. 6,609
If disability retirement under section 3307.43 3307.63 of 6,611
the Revised Code is terminated for any reason, the annuity and 6,612
pension reserves at that time in the annuity and pension reserve 6,613
fund shall be transferred to the teachers' savings fund and the 6,614
employers' trust fund, respectively. If the total disability 6,615
benefit paid was less than the amount of the accumulated 6,616
contributions of the member transferred to the annuity and 6,617
pension reserve fund at the time of the member's disability 6,618
retirement, then the difference shall be transferred from the 6,619
annuity and pension reserve fund to another fund as required. In 6,620
determining the amount of a member's account following the 6,621
termination of disability retirement for any reason, the total 6,622
amount paid shall be charged against the member's refundable 6,623
account. 6,624
If a disability allowance paid under section 3307.431 6,626
3307.631 of the Revised Code is terminated for any reason, the 6,628
reserve on the allowance at that time in the annuity and pension 6,629
reserve fund shall be transferred from that fund to the 6,630
employers' trust fund.
If a former disability benefit recipient again becomes a 6,632
141
contributor, other than as an other system retirant under section 6,633
3307.381 3307.35 of the Revised Code, to this retirement system, 6,635
the school employees retirement system, or the public employees 6,636
retirement system, and completes at least two additional years of 6,637
service credit, the former disability benefit recipient shall 6,638
receive credit for the period as a disability benefit recipient. 6,639
Sec. 3307.49 3307.66. (A) As used in this section, 6,648
"physically or mentally incompetent" means incapable of earning a 6,650
living because of a physically or mentally disabling condition. 6,651
Physical or mental incompetency may be determined by a court or 6,652
by a doctor of medicine or osteopathic medicine appointed by the 6,653
state teachers retirement board. 6,654
(B) For the purposes of this section: 6,656
(1) A qualified spouse is the surviving spouse of a 6,659
deceased member of the state teachers retirement system 6,660
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 6,661
3307.79 OF THE REVISED CODE who is one of the following: 6,662
(a) Age sixty-two or any age if the deceased member had 6,664
ten or more years of Ohio service credit; 6,665
(b) Caring for a qualified child; 6,667
(c) Adjudged physically or mentally incompetent; 6,669
(d) Any age if the deceased member was eligible for a 6,671
service retirement allowance as provided in section 3307.38 6,672
3307.58 of the Revised Code and the surviving spouse elects to 6,674
receive a benefit under division (C)(1) of this section. 6,675
(2) A qualified child is the child of a deceased member 6,680
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO
3307.79 OF THE REVISED CODE who is both of the following: 6,681
(a) Unmarried; 6,683
(b) Under age eighteen, or under age twenty-two if 6,686
attending an institution of learning or training pursuant to a 6,687
program designed to complete in each school year the equivalent 6,688
of at least two-thirds of the full-time curriculum requirements 6,689
of such institution and as further determined by board policy, or 6,690
142
any age if adjudged physically or mentally incompetent. 6,691
(3) A qualified parent is a dependent parent of a deceased 6,695
member PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO
3307.79 OF THE REVISED CODE who is age sixty-five or older. 6,696
(4) A person is a "qualified survivor" if the person 6,698
qualifies as a surviving spouse, child, or dependent parent. 6,701
(C) Except as provided in division (G)(1) of this section, 6,704
in lieu of accepting the payment of the accumulated account of a 6,705
member PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 6,706
3307.79 OF THE REVISED CODE who dies before service retirement, a
beneficiary, as determined in section 3307.48 3307.562 of the 6,707
Revised Code, may elect to forfeit the accumulated account and to 6,709
substitute benefits under this division. 6,710
(1) If a deceased member was eligible for a service 6,712
retirement allowance as provided in section 3307.38 3307.58 or 6,713
3307.39 3307.59 of the Revised Code, a surviving spouse or an 6,715
individual designated as the member's sole beneficiary pursuant 6,716
to division (B) of section 3307.48 3307.562 of the Revised Code 6,717
who was a qualified child or dependent parent of the member or 6,719
received one-half or more of support from the member during the 6,720
twelve-month period preceding the member's death may elect to 6,721
receive a monthly benefit computed as the joint-survivor 6,722
allowance designated as option 1 in section 3307.50 3307.60 of 6,723
the Revised Code, which the member would have received had the 6,725
member retired on the last day of the month of death and had the 6,727
member at that time selected such joint-survivor plan. Payment 6,729
shall begin with the month subsequent to the member's death. 6,730
(2) If a deceased member had completed at least one and 6,732
one-half years of credit for Ohio service, with at least 6,733
one-quarter year of Ohio contributing service credit within the 6,734
two and one-half years prior to the date of death, or was 6,735
receiving at the time of death a disability benefit as provided 6,736
in section 3307.43 3307.63 or 3307.431 3307.631 of the Revised 6,738
Code, a surviving spouse or other qualified survivor may elect to 6,740
143
receive monthly benefits as provided in division (C)(2) of this 6,741
section. The surviving spouse or other qualified survivor shall 6,742
elect one of the following methods of calculating benefits 6,744
elected under division (C)(2) of this section, which shall, 6,745
except as provided in division (G)(1) of this section, remain in 6,746
effect without regard to any change in the number of qualified 6,747
survivors:
Or 6,749
(a) Number Annual benefit as a Monthly benefit 6,750
of qualified per cent of member's shall not be 6,751
survivors final average salary less than 6,752
1 25% $ 96 6,755
2 40 186 6,756
3 50 236 6,757
4 55 236 6,758
5 or more 60 236 6,759
Annual benefit as a 6,762
per cent of member's 6,763
(b) Years of service final average salary 6,764
20 29% 6,767
21 33 6,768
22 37 6,769
23 41 6,770
24 45 6,771
25 48 6,772
26 51 6,773
27 54 6,774
28 57 6,775
29 60 6,776
(D) If a benefit is calculated pursuant to division 6,779
(C)(2)(a) of this section, benefits to a surviving spouse shall 6,780
be paid in the amount determined for the first qualifying 6,781
survivor in division (C)(2)(a) of this section, but shall not be 6,783
less than one hundred six dollars per month if the deceased 6,784
144
member had ten or more years of Ohio service credit. All other 6,785
qualifying survivors shall share equally in the benefit or 6,787
remaining portion thereof. 6,788
If a benefit is calculated pursuant to division (C)(2)(b) 6,790
of this section and is payable to more than one qualified 6,791
survivor, the benefit shall be apportioned equally among the 6,793
qualified survivors, except that if there is a surviving spouse, 6,795
the portion of the benefit allocated to the surviving spouse 6,796
shall be as follows: 6,797
Number of 6,799
survivors Spouse's share of total benefit 6,800
2 62.5% 6,803
3 50.0% 6,804
4 45.45% 6,805
5 or more 41.67% 6,806
(E) Benefits payable under division (C)(2) of this section 6,809
shall begin or resume on the first day of the month following the 6,810
day a person becomes a qualified survivor and terminate or be 6,812
suspended on the first day of the month following the day the 6,813
person ceases to be a qualified survivor. 6,815
Benefits to a qualified survivor shall terminate upon a 6,818
first marriage, abandonment, adoption, or during active military 6,820
service. Benefits to a deceased member's surviving spouse that 6,821
were terminated under a former version of this section that
required termination due to remarriage and were not resumed prior 6,822
to the effective date of this amendment shall resume on the first 6,823
day of the month immediately following receipt by the board of an 6,824
application on a form provided by the board. 6,825
Upon the death of any subsequent spouse who was a member of 6,828
the public employees retirement system, state teachers retirement 6,829
system, or school employees retirement system, the surviving 6,830
spouse of such member may elect to continue receiving benefits 6,831
under this division, or to receive survivor's benefits, based 6,832
upon the subsequent spouse's membership in one or more of the 6,833
145
systems, for which such surviving spouse is eligible under this 6,834
section or section 145.45 or 3309.45 of the Revised Code. If the 6,835
surviving spouse elects to continue receiving benefits under this 6,836
division, such election shall not preclude the payment of 6,837
benefits under this division to any other qualified survivor. 6,838
(F) The beneficiary of a member who is also a member of 6,840
the public employees retirement system, or the school employees 6,841
retirement system, must forfeit the member's accumulated 6,842
contributions in those systems, if the beneficiary elects to 6,843
receive a benefit under division (C) of this section. Such 6,845
benefit shall be exclusively governed by section 3307.41 3307.57 6,846
of the Revised Code. 6,847
(G)(1) Regardless of whether the member is survived by a 6,850
spouse or designated beneficiary, if the state teachers 6,851
retirement system receives notice that a deceased member 6,853
described in division (C)(1) or (2) of this section has one or 6,854
more qualified children, all persons who are qualified survivors 6,856
under division (C)(2) of this section shall receive monthly 6,859
benefits as provided in division (C)(2) of this section. 6,860
If, after determining the monthly benefits to be paid under 6,862
division (C)(2) of this section, the system receives notice that 6,863
there is a qualified survivor who was not considered when the 6,864
determination was made, the system shall, notwithstanding section 6,865
3307.711 3307.42 of the Revised Code, recalculate the monthly 6,866
benefits with that qualified survivor included, even if the 6,868
benefits to qualified survivors already receiving benefits are 6,869
reduced as a result. The benefits shall be calculated as if the
qualified survivor who is the subject of the notice became 6,870
eligible on the date the notice was received and shall be paid to 6,871
qualified survivors effective on the first day of the first month 6,872
following the system's receipt of the notice. 6,873
If the retirement system did not receive notice that a 6,875
deceased member has one or more qualified children prior to 6,877
making payment under section 3307.48 3307.562 of the Revised Code 6,878
146
to a beneficiary as determined by the retirement system, the 6,879
payment is a full discharge and release of the system from any 6,880
future claims under this section or section 3307.48 3307.562 of 6,881
the Revised Code.
(2) If benefits under division (C)(2) of this section to 6,884
all persons, or to all persons other than a surviving spouse or 6,886
sole beneficiary, terminate, there are no children under the age
of twenty-two years, and the surviving spouse or beneficiary 6,889
qualifies for benefits under division (C)(1) of this section, the 6,890
surviving spouse or beneficiary may elect to receive benefits 6,891
under division (C)(1) of this section. The benefit shall be 6,893
calculated based on the age of the spouse or beneficiary at the 6,894
time of the member's death and is effective on the first day of 6,895
the month following receipt by the board of an application for 6,896
benefits under division (C)(1) of this section. 6,897
(H) If the benefits due and paid under division (C) of 6,899
this section are in a total amount less than the member's 6,900
accumulated account that was transferred from the teachers' 6,901
savings fund, school employees retirement fund, and public 6,902
employees retirement fund, to the survivors' benefit fund, then 6,903
the difference between the total amount of the benefits paid 6,904
shall be paid to the beneficiary under section 3307.48 3307.562 6,906
of the Revised Code. 6,907
Sec. 3307.661. ON THE DEATH OF A RETIRANT OR DISABILITY 6,909
BENEFIT RECIPIENT WHO AT THE TIME OF DEATH IS RECEIVING, UNDER 6,910
THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED 6,911
CODE, A SERVICE RETIREMENT ALLOWANCE OR DISABILITY BENEFIT, THE 6,913
STATE TEACHERS RETIREMENT SYSTEM SHALL MAKE A LUMP-SUM PAYMENT OF 6,914
ONE THOUSAND DOLLARS TO ANY DESIGNATED OR QUALIFIED BENEFICIARY 6,915
UNDER DIVISION (D) OF SECTION 3307.562 OF THE REVISED CODE. IF 6,916
THERE IS NO BENEFICIARY, THE STATE TEACHERS RETIREMENT BOARD MAY 6,918
APPROVE PAYMENT TO EITHER THE PERSON RESPONSIBLE FOR THE BURIAL 6,919
EXPENSES OR TO THE DECEDENT'S ESTATE FOLLOWING THE COMPLETION OF 6,920
AN APPLICATION ON A FORM APPROVED BY THE BOARD. 6,921
147
Sec. 3307.403 3307.67. (A) Beginning April 1, 1971, and 6,930
each year thereafter, the board of the state teachers retirement 6,932
system BOARD shall determine the average percentage change in the 6,934
consumer price index prepared by the United States bureau of 6,935
labor statistics (U.S. City Average for Urban Wage Earners and 6,936
Clerical Workers: "All Items 1982-84=100") for the 6,937
twelve-calendar-month period prior to the first day of January 6,939
over the next preceding twelve-calendar-month period, as reported 6,940
by the bureau.
Upon a determination by the board in any year that the 6,942
change in the consumer price index is an increase or that the 6,944
change plus the accumulation described in division (B) of this 6,945
section is an increase, the board shall increase each allowance 6,946
or benefit payable under this chapter SECTIONS 3307.50 TO 3307.79 6,947
OF THE REVISED CODE by a percentage equal to the percentage 6,948
increase in the consumer price index or to that increase plus the 6,949
accumulation, except that the increase shall not exceed three per 6,950
cent and no allowance or benefit shall exceed the limit 6,952
established by section 415 of the "Internal Revenue Code of 6,953
1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended. 6,954
The first increase is payable to all persons becoming 6,956
eligible after June 30, 1971, upon such persons receiving an 6,957
allowance or benefit for twelve months. The increased amount is 6,959
payable for the ensuing twelve-month period or until the next 6,960
increase is granted under this section, whichever is later. 6,961
Subsequent increases shall be determined from the date of the 6,962
first increase paid to the former member in the case of an
allowance being paid a beneficiary under an option, or from the 6,963
date of the first increase to the survivor first receiving an 6,964
allowance or benefit in the case of an allowance or benefit being 6,965
paid to the subsequent survivors of the former member. 6,966
The date of the first increase under this section becomes 6,969
the anniversary date for any future increases.
The allowance or benefit used in the first calculation of 6,971
148
an increase under this section shall remain as the base for all 6,972
future increases, unless a new base is established. 6,973
(B) Any percentage of change in the consumer price index 6,975
in any year that is in excess of three per cent shall be 6,976
accumulated and used to determine increases under this section in 6,977
subsequent years. Any percentage of change in the consumer price 6,978
index accumulated by an eligible person prior to the effective 6,979
date of this amendment SEPTEMBER 27, 1996, shall be used in 6,980
determining any future increases under this section. 6,981
(C) The board shall make all rules necessary to carry out 6,983
this section. 6,984
Sec. 3307.408 3307.671. In December, 1980, and in December 6,994
of each year thereafter, the state teachers retirement board may 6,995
allocate an amount from the guarantee fund created in division 6,996
(E) of section 3307.65 3307.14 of the Revised Code to establish a 6,997
temporary supplemental benefit fund for the purpose of making a 6,999
lump sum benefit payment to all persons receiving an allowance, 7,000
pension, or benefit under Chapter 3307. SECTIONS 3307.50 TO 7,001
3307.79 of the Revised Code for each of the twelve months 7,003
preceding the first day of the following January. 7,004
On or after July 1, 1980, and on or after the first day of 7,006
July of each year thereafter, the board may determine the amount 7,007
to be placed in a temporary supplemental benefit fund. Such 7,008
amount, if placed, shall be not more than twenty-five per cent of 7,009
the income from investments for the twelve months preceding the 7,010
first day of July not otherwise required to be credited to the 7,011
several funds set forth in section 3307.65 3307.14 of the Revised 7,013
Code.
The board shall adopt rules to administer this supplemental 7,015
benefit. The rules shall recognize the effective date of the 7,016
allowance, pension, or benefit and the years of Ohio service 7,017
credit for each recipient as an equitable basis for allocating 7,018
the amount payable to each recipient. 7,019
If the board determines that a supplemental benefit shall 7,021
149
be paid under this section, it shall pay such amount within sixty 7,022
calendar days following its allocation to the supplemental 7,023
benefit fund. 7,024
Amounts paid pursuant to this section shall not be included 7,026
in the base for increasing an allowance, pension, or benefit 7,027
provided in section 3307.403 3307.67 of the Revised Code and 7,028
shall not incur any obligation or liability for future payments 7,030
under this section. 7,031
Sec. 3307.371 3307.69. (A) On and after the first day of 7,040
the month following the effective date of this section DECEMBER 7,042
14, 1992, each person eligible to receive a benefit, pursuant to 7,043
FORMER sections 3307.38, 3307.41, 3307.43, 3307.50, AND division 7,044
(C)(1) of FORMER section 3307.49, and section 3307.50 of the 7,046
Revised Code, that was based upon an award made effective before 7,047
June 30, 1955, shall have the benefit payable as of September 30, 7,048
1974, recalculated by the state teachers retirement board so that 7,049
each such person shall receive an annual single lifetime benefit 7,050
or its actuarial equivalent of not less than one hundred forty 7,051
dollars for each year of the member's total service credit, 7,052
except that service credit exceeding thirty-two years shall not 7,053
be used in the recalculation, and a final average salary 7,054
limitation shall not be applied.
If the amount of the benefit recalculated under this 7,056
division is less than the amount that is payable on the effective 7,057
date of this section, then the greater benefit shall be 7,058
continued. 7,059
(B) On and after the first day of the month following the 7,061
effective date of this section DECEMBER 14, 1992, each person 7,063
receiving a benefit, pursuant to FORMER sections 3307.38, 7,064
3307.41, 3307.43, 3307.50 AND division (C)(1) of FORMER section 7,066
3307.49, and section 3307.50 of the Revised Code, that was 7,068
effective on and after June 30, 1955, through June 30, 1971,
shall be paid an increased benefit as follows: 7,069
Effective Date of the Per Cent of Increase: 7,071
150
Member's Benefit: 7,072
June 30, 1955, through
June 29, 1959 33 7,073
June 30, 1959, through
October 31, 1965 21 7,074
November 1, 1965 through
June 30, 1968 14 7,075
July 1, 1968, through
June 30, 1971 5 7,076
The increase shall be applied to the benefit payable on the 7,078
effective date of this section DECEMBER 14, 1992. 7,079
(C) On and after the first day of the month following the 7,081
effective date of this section DECEMBER 14, 1992, each person 7,083
receiving or qualified to receive a benefit, pursuant to division 7,084
(C)(2) of FORMER section 3307.49 of the Revised Code, that was 7,085
effective on and after June 14, 1951, through August 26, 1970, 7,086
shall receive an increase in such benefit in the amount of twenty 7,087
per cent.
Sec. 3307.382 3307.691. On and after the effective date of 7,096
this section AUGUST 20, 1976, the allowances of retirants 7,099
receiving benefits based upon an award from the state teachers 7,100
retirement system made before July 1, 1971, shall have the 7,101
benefit recalculated by the state teachers retirement system so 7,102
that each such person shall receive an annual lifetime benefit or 7,103
its actuarial equivalent of not less than one hundred forty 7,104
dollars for each year of the member's total service credit, 7,105
multiplied by the total number of years of service credit, except 7,106
that service credit exceeding thirty-two years shall not be used 7,107
in the recalculation, and a final average salary limitation shall 7,108
not be applied.
If the amount of the benefit recalculated under this 7,110
section is less than the amount that is payable on the effective 7,111
date of this section AUGUST 20, 1976, then the greater benefit 7,113
shall be continued. 7,114
151
Sec. 3307.384 3307.692. A retirant who on the effective 7,123
date of this amendment AUGUST 6, 1997, is eligible to receive an 7,127
annual single lifetime benefit under FORMER section 3307.38, 7,128
3307.41, or 3307.50 of the Revised Code of less than nine 7,130
thousand six hundred dollars or its actuarial equivalent shall 7,131
have that benefit increased to nine thousand six hundred dollars 7,133
or its actuarial equivalent if the benefit is based on an award
arising from thirty or more years of Ohio service credit. The 7,135
benefit increase provided by this amendment SECTION shall take 7,136
effect on the first day of the first month following the 7,138
effective date of this amendment AUGUST 6, 1997, and shall not be 7,140
subject to any final average salary limitation.
Sec. 3307.401 3307.693. On and after October 1, 1957, all 7,149
persons in receipt of, or who are or become eligible to receive, 7,151
a monthly allowance, pension, or other benefit effective prior to 7,152
June 29, 1955, which is payable or becomes payable pursuant to 7,153
the provisions of FORMER sections 3307.26, 3307.38, 3307.43, and 7,154
3307.50 of the Revised Code, or an allowance payable at any time 7,156
under an option elected by a member and effective prior to that 7,157
date, shall be paid an increased allowance, pension, or benefit 7,158
as follows: 7,159
(A) An amount determined by increasing the original 7,161
allowance, pension, or benefit by the following percentages as 7,162
determined by the calendar year in which the allowance, pension, 7,163
or benefit became effective: 7,164
Calendar Year Per Cent of 7,166
Effective Increase
1921-1939 100 7,167
1940 94
1941 89 7,168
1942 77
1943 70
1944 68 7,169
1945 66
152
1946 55
1947 35 7,170
1948 23
1949 25
1950 23 7,171
1951 8
1952 4
1953 3 7,172
1954 2
Prior to June 29, 1955 2 7,173
(B) If the amount of any such allowance, pension, or other 7,176
benefit is increased by division (A) of this section to an amount 7,177
less than one hundred ten per cent of the present amount payable 7,178
immediately prior to October 1, 1957, such present amount shall 7,179
be increased by ten per cent. 7,180
(C) On and after August 1, 1959, the monthly allowance, 7,182
pension, or other benefit effective prior to June 29, 1955, 7,183
(exclusive of any amount receivable monthly by reason of a 7,184
voluntary deposit made for additional annuity, or for purchase of 7,185
out-of-state credit on or after June 25, 1945), together with the 7,186
supplemental allowance payable pursuant to divisions (A) and (B) 7,187
of this section, shall be increased by twelve per cent. 7,188
(D) Effective November 1, 1965, the allowances of all 7,190
persons who retired before June 30, 1955, and who are receiving 7,191
benefits as of October 31, 1965, except those granted under 7,192
FORMER section 3307.49 of the Revised Code, shall be increased 7,193
ten dollars per month, notwithstanding the seventy-five per cent 7,194
final average salary limitation in FORMER section 3307.38 of the 7,195
Revised Code and the sixty per cent final average salary 7,197
limitation in FORMER section 3307.43 of the Revised Code. 7,198
(E) Effective November 1, 1965, the allowances of all 7,200
persons who retired on or after June 30, 1955, and who are 7,201
receiving benefits as of October 31, 1965, except those granted 7,202
under FORMER section 3307.49 of the Revised Code, but including 7,203
153
allowances payable at any time under an option elected by a 7,204
member, shall be increased by ten dollars per month, which when 7,205
added to the allowance in effect on October 31, 1965, shall not 7,206
exceed the seventy-five per cent final average salary limitation 7,207
in FORMER section 3307.38 of the Revised Code or the sixty per 7,208
cent final average salary limitation in FORMER section 3307.43 of 7,209
the Revised Code, provided that the increase shall not be less 7,211
than six dollars per month. 7,212
(F) Beginning November 1, 1965, the monthly benefit 7,214
payable under division (C)(2) of FORMER section 3307.49 of the 7,215
Revised Code shall be increased six dollars for each survivor 7,216
beneficiary receiving a benefit on October 31, 1965, and for each 7,217
successor to such benefit. Beginning November 1, 1965, all 7,218
survivor beneficiaries receiving benefits as of October 31, 1965, 7,219
under division (C)(1) of FORMER section 3307.49 of the Revised 7,220
Code shall be increased six dollars per month. 7,221
On or before August 1, 1982, and on or before the first day 7,223
of August in each year thereafter, the state teachers retirement 7,224
board shall certify to the treasurer of state the amount required 7,225
to be paid in the preceding fiscal year under divisions (A) and 7,226
(B) of this section. Upon receipt of this certification, the 7,227
treasurer of state shall pay the amount certified. The amount 7,228
received by the state teachers retirement board shall be credited 7,229
to the proper fund from which such additional payments are paid. 7,230
Sec. 3307.402 3307.694. On and after July 1, 1968, all 7,239
allowances, pensions, or other benefits which were payable before 7,241
July 1, 1968, pursuant to the provisions of FORMER sections 7,242
3307.26, 3307.38, 3307.41, 3307.43, 3307.49, and 3307.50 of the 7,243
Revised Code, shall be increased by the percentages determined by 7,244
the effective date of the allowance, pension, or benefit, as 7,245
follows:
Effective Date of Benefit Percentage of Increase 7,247
Calendar Year 7,248
1920 through 1955 24.3 7,250
154
1956 22.5 7,251
1957 18.4 7,252
1958 15.2 7,253
1959 14.3 7,254
1960 12.5 7,255
1961 11.3 7,256
1962 10.1 7,257
1963 8.7 7,258
1964 7.3 7,259
1965 5.6 7,260
1966 2.6 7,261
1967 2.0 7,262
January 1, 1968, through 7,263
June 30, 1968 2.0
All increases determined by applying the percentages in the 7,266
preceding table shall be reduced by the dollar amount of the 7,267
increases granted in 1965 pursuant to divisions (D), (E), and (F) 7,268
of FORMER section 3307.401 of the Revised Code, except that no 7,269
allowance, pension, or benefit shall be reduced below the amount 7,270
due on June 30, 1968, and no allowance granted under this section 7,271
shall be less than a total annual sum of thirty-six dollars. 7,272
The allowances increased by this section shall exclude any 7,274
monthly amount payable by reason of any voluntary deposits made 7,275
under the provisions of sections 3307.33 3307.26 and 3307.51 7,277
3307.741 of the Revised Code, except for prior service purchased 7,278
before June 25, 1945. 7,279
The increases provided by this section shall be granted 7,281
notwithstanding the final average salary limitation in FORMER 7,282
sections 3307.38 and 3307.43 of the Revised Code. 7,283
The cost of the increases provided by this section shall be 7,285
included in the employer's contribution rate provided by sections 7,286
3307.53 3307.28, 3307.56 3307.30, and 3307.64 3307.31 of the 7,288
Revised Code. Such employer's contribution rate shall not be 7,289
increased until July 1, 1969, or later to reflect the increased 7,290
155
costs created by this section. 7,291
Sec. 3307.404 3307.695. On and after December 31, 1971, 7,300
all persons who retired and were eligible to receive a pension 7,302
that was payable prior to July 1, 1968, pursuant to FORMER 7,303
section 3307.38 or 3307.43 of the Revised Code, or in the event 7,304
of the death of such persons, the person designated by the 7,305
deceased to receive payments under FORMER section 3307.50 of the 7,306
Revised Code, shall receive an additional monthly payment of two 7,308
dollars for each year between the member's effective date of 7,309
retirement or disability and December 31, 1971, or an additional 7,310
fifty dollars, whichever is less. On or before the first day of 7,311
August in 1980 and on or before the first day of August in each 7,312
year thereafter, the state teachers retirement board shall 7,313
certify to the treasurer of state the amount required to be paid 7,314
in the preceding fiscal year under this section. Upon receipt of 7,315
such certification, the treasurer of state shall pay to the state 7,316
teachers retirement system the amount certified. 7,317
Sec. 3307.406 3307.696. Each person receiving benefits 7,326
under FORMER section 3307.49 of the Revised Code who became 7,328
eligible to receive such benefits under FORMER section 3307.48 of 7,330
the Revised Code by virtue of the death of a member prior to July
1, 1968, shall receive an additional monthly payment of two 7,331
dollars for each year between the date of such member's death and 7,332
December 31, 1972, or an additional fifty dollars, whichever is 7,333
less.
Sec. 3307.407 3307.697. On and after the effective date of 7,342
this section DECEMBER 19, 1973, any person who retired or his THE 7,345
RETIREE'S beneficiary, who was eligible to receive an allowance 7,347
that was first payable on or after July 1, 1968, and prior to 7,348
July 1, 1971, and the beneficiary of a member who died before 7,350
service retirement on or after July 1, 1968, and prior to July 1, 7,351
1971, receiving an allowance or benefit pursuant to FORMER 7,353
sections 3307.38, 3307.41, 3307.43, 3307.49, or 3307.50 of the
Revised Code, shall receive an additional monthly payment of two 7,355
156
dollars for each year between the member's effective date of 7,356
retirement, disability or death and July 1, 1973. 7,357
Sec. 3307.409 3307.698. (A) Effective July 1, 1981, each 7,366
person eligible to receive an allowance, pension, or benefit 7,368
pursuant to FORMER sections 3307.38, 3307.41, 3307.43, division 7,369
(C)(1) of FORMER section 3307.49, and FORMER section 3307.50 of 7,371
the Revised Code that was based upon an award made effective 7,372
before July 1, 1974, shall have his THE PERSON'S monthly 7,374
allowance, pension, or benefit increased by five per cent, except 7,375
that the twelve-month sum of such increases shall not exceed five 7,376
per cent of the first five thousand dollars of the annual 7,377
allowance, pension, or benefit.
(B) Effective July 1, 1981, each person receiving or 7,379
qualified to receive a benefit, pursuant to division (C)(2) of 7,380
FORMER section 3307.49 of the Revised Code, that was effective on 7,381
and after June 14, 1951, through August 26, 1970, shall receive 7,382
an increase in such benefit of five per cent. 7,383
(C) The increases provided in divisions (A) and (B) of 7,385
this section shall be applied to the benefit payable on and after 7,386
July 1, 1981. 7,387
(D) The increase in the monthly allowance, pension, or 7,389
benefit provided in divisions (A) and (B) of this section shall 7,390
be included in the calculation of additional benefits to 7,391
recipients under section 3307.403 3307.67 of the Revised Code. 7,392
(E) The benefit provided in divisions (A) and (B) of this 7,394
section is a continuation of those first provided in Am. Sub. 7,395
H.B. 204 as passed by the 113th general assembly. 7,396
(F) On or before the first day of August, 1982, and on or 7,398
before the first day of August in each year thereafter, the state 7,399
teachers retirement board shall certify to the treasurer of state 7,400
the amounts needed to pay the cost of the additional payments 7,401
required under this section for the preceding fiscal year. Upon 7,402
receipt of these certifications, the treasurer of state shall pay 7,403
the amount certified. 7,404
157
Sec. 3307.4010 3307.699. As used in this section and 7,413
section 3307.4011 3307.6910 of the Revised Code, "benefit" means 7,415
any allowance, pension, or other benefit to which an individual 7,416
is entitled and that he THE INDIVIDUAL receives pursuant to 7,417
FORMER section 3307.38, 3307.41, 3307.43, 3307.49, or 3307.50 of 7,418
the Revised Code.
The annual amount of each benefit that was payable prior to 7,420
February 1, 1983, shall, after the adjustments required by FORMER 7,422
section 3307.403 of the Revised Code, be increased by five per 7,424
cent.
Sec. 3307.4011 3307.6910. (A) The annual amount of each 7,433
benefit that was based on an award made effective before July 1, 7,435
1979, shall be increased as follows: 7,436
Effective Date of Per Cent of 7,438
Award Increase in Benefit 7,439
Prior to July 1, 1971 4.15 7,440
July 1, 1971, through 7,441
August 31, 1976 2.65 7,442
September 1, 1976, through 7,443
June 30, 1979 1.4 7,444
(B) Effective June 1, 1990, in addition to the increase 7,447
provided under division (A) of this section, the annual amount of 7,448
each benefit that was based on an award made effective before 7,449
July 1, 1979, shall be increased as follows: 7,450
Effective Date of Per Cent of 7,452
Award Increase in Benefit 7,453
Prior to July 1, 1971 4.15 7,454
July 1, 1971, through 7,455
August 31, 1976 2.65 7,456
September 1, 1976, through 7,457
June 30, 1979 1.4 7,458
(C) Amounts paid pursuant to this section shall not be 7,461
included in the base for future increases under FORMER section 7,462
3307.403 of the Revised Code in any benefit. 7,463
158
Sec. 3307.4013 3307.6911. (A) As used in this section: 7,472
(1) "Benefit" means a benefit, pension, or allowance 7,474
PAYABLE under FORMER section 3307.38, 3307.41, 3307.43, 3307.431, 7,476
3307.49, or 3307.50 of the Revised Code.
(2) "Cumulative percentage change in the CPI" means the 7,478
total percentage change in the consumer price index prepared by 7,479
the United States bureau of labor statistics for urban wage 7,481
earners and clerical workers (CPI-W: U.S. city average, all 7,482
items) from the thirty-first day of December immediately 7,483
preceding the year in which the original benefit started through 7,484
the thirty-first day of December immediately preceding the 7,485
effective date of this section AUGUST 6, 1997. 7,486
(3) "Eligible recipient" means any person receiving a 7,488
benefit on the effective date of this section AUGUST 6, 1997, 7,489
that has been payable to that person or to any other person for 7,491
at least twelve months.
(4) "Original benefit amount" means the initial amount of 7,493
a benefit granted to the initial recipient of the benefit. 7,494
(B) As of the effective date of this section AUGUST 6, 7,497
1997, the state teachers retirement board shall determine an 7,498
amount for each eligible recipient equal to the sum of the 7,499
following amounts:
(1) An amount equal to seventy per cent of the original 7,501
benefit amount for the recipient; 7,502
(2) An amount equal to the product obtained when seventy 7,504
per cent of the original benefit amount is multiplied by the 7,505
cumulative percentage change in the CPI for the recipient. 7,506
(C)(1) Except as provided in division (C)(2) of this 7,508
section, if the amount of the annual benefit payable to an 7,509
eligible recipient on the effective date of this section AUGUST 7,510
6, 1997, is less than the amount determined for the recipient 7,512
under division (B) of this section, the board shall recalculate 7,513
that annual benefit so that it equals the amount determined under 7,514
division (B) of this section.
159
(2) If the recalculated benefit determined under division 7,516
(C)(1) of this section for an eligible recipient whose retirement 7,517
was effective before July 1, 1979, is less than one hundred three 7,518
per cent of the annual benefit payable to the recipient on the 7,519
effective date of this section AUGUST 6, 1997, the board shall 7,521
recalculate the annual benefit so that it equals one hundred
three per cent of the annual benefit payable to the recipient on 7,522
the effective date of this section AUGUST 6, 1997. 7,524
An increase granted by division (C)(1) or (2) of this 7,526
section to a benefit amount shall apply on and after the first 7,527
day of the month following the effective date of this section 7,528
AUGUST 6, 1997. 7,529
(D) The board shall include the increase in amount paid 7,531
under this section in a person's base for purposes of future 7,532
increases in any benefit under section 3307.403 3307.67 of the 7,533
Revised Code.
Sec. 3307.78 3307.6912. Effective September 1, 1947, the 7,542
retirement allowances of retired Ohio teachers, or their 7,544
beneficiaries under options elected at retirement and still in 7,545
effect, on the retired list as of that date shall be recalculated 7,546
and paid in accordance with the following: 7,547
(A) Members retired on superannuation effective prior to 7,549
August 31, 1945, shall have the prior service portion of their 7,550
allowances recalculated as of the date of retirement in 7,551
accordance with division (C) of FORMER section 3307.38 of the 7,552
Revised Code, with their "final average salary" determined as 7,553
defined in FORMER section 3307.01 of the Revised Code. Any 7,554
allowance payable to members who retired on superannuation under 7,555
an option selected at retirement, or payable to a beneficiary 7,556
pursuant to such option, shall be adjusted upon the basis of the 7,557
amount of allowance payable in accordance with this division. 7,558
(B) Members retired on disability retirement prior to July 7,560
1, 1945, shall have their allowances recalculated as of the date 7,561
of retirement in accordance with divisions (A) and (B) of FORMER 7,562
160
section 3307.43 of the Revised Code, and with their final average 7,564
salaries determined as defined in FORMER section 3307.01 of the 7,565
Revised Code. 7,566
(C) Members retired on superannuation, commuted 7,568
superannuation, or disability prior to June 30, 1947, with 7,569
fifteen or more years of service credit shall receive a total 7,570
allowance at the rate of not less than twenty dollars annually 7,571
for each year of such service credit, except that a member 7,572
retired on commuted superannuation shall have the reserve for any 7,573
additional pension required to provide such minimum allowance 7,574
commuted as of the date of retirement in the manner prescribed 7,575
for the prior service pension in division (C) of FORMER section 7,576
3307.40 of the Revised Code. Any allowance payable to members 7,578
who retired on superannuation under an option selected at 7,579
retirement, or payable to a beneficiary pursuant to such option, 7,580
shall be adjusted upon the basis of the amount of allowance 7,581
payable in accordance with this division. All pensions continued 7,582
to pensioners following the merger of local district pension 7,583
systems with the state teachers retirement system pursuant to 7,584
FORMER sections 3307.68, 3307.69, and 3307.70 of the Revised Code 7,585
shall be increased ten dollars per month provided no other 7,586
benefit is payable by this section. 7,587
(D) In no case shall any recalculated allowance be 7,589
increased in excess of twenty-five dollars per month by divisions 7,590
(A), (B), and (C) of this section and in no case shall any 7,591
allowances be decreased thereby. In no case shall any such 7,592
increases be payable prior to September 1, 1947. The cost of 7,593
providing such increased superannuation and commuted 7,594
superannuation allowances shall be included in the prior service 7,595
pension deficiency contribution rate provided for in FORMER 7,596
section 3307.54 of the Revised Code. The cost of providing such 7,597
increased disability allowances shall be included in the normal 7,598
contribution rate provided for in section 3307.53 3307.28 of the 7,600
Revised Code. 7,601
161
Sec. 3307.6913. (A) AS USED IN THIS SECTION AND IN 7,603
SECTION 3307.6914 OF THE REVISED CODE, "ELIGIBLE RECIPIENT" MEANS 7,605
ANY PERSON RECEIVING A BENEFIT ON JULY 1, 1999. 7,606
(B) FOR EACH ELIGIBLE RECIPIENT OF A BENEFIT PAYABLE UNDER 7,608
SECTION 3307.58, 3307.59, OR 3307.60 OF THE REVISED CODE, THE 7,610
STATE TEACHERS RETIREMENT BOARD SHALL RECALCULATE THE ANNUAL 7,611
SINGLE LIFETIME BENEFIT, EXCLUDING ANY INCREASES GRANTED UNDER 7,612
SECTION 3307.67 OF THE REVISED CODE, OF THE BENEFIT PAYABLE TO 7,613
THE RECIPIENT USING DIVISION (B) OF SECTION 3307.38 OF THE 7,615
REVISED CODE AS THAT SECTION EXISTED IMMEDIATELY PRIOR TO THE 7,617
EFFECTIVE DATE OF THIS SECTION, EXCEPT THAT THE RECALCULATED
ANNUAL SINGLE LIFETIME BENEFIT SHALL BE ADJUSTED BY THE PER CENT 7,618
SHOWN IN THE SCHEDULE IN THE VERSION OF DIVISION (B) OF SECTION 7,619
3307.38 OF THE REVISED CODE THAT WAS IN EFFECT AT THE TIME THE 7,620
INITIAL RECIPIENT'S BENEFIT WAS CALCULATED ON THE BASIS OF AGE 7,621
AND SERVICE.
(C) IF THE AMOUNT DETERMINED UNDER DIVISION (B) OF THIS 7,624
SECTION IS GREATER THAN THE ANNUAL SINGLE LIFETIME BENEFIT 7,625
GRANTED THE RECIPIENT, THE BOARD SHALL RECALCULATE THE 7,627
RECIPIENT'S BENEFIT SO THAT IT EQUALS THE ANNUAL SINGLE LIFETIME
BENEFIT DETERMINED UNDER DIVISION (B) OF THIS SECTION OR ITS 7,628
ACTUARIAL EQUIVALENT. 7,629
(D) THE BOARD SHALL INCLUDE THE INCREASE IN AMOUNT PAID 7,631
UNDER THIS SECTION IN AN INDIVIDUAL'S BASE FOR PURPOSES OF FUTURE 7,632
INCREASE IN ANY BENEFIT UNDER SECTION 3307.67 OF THE REVISED 7,633
CODE.
(E) THE BOARD SHALL MAKE THE RECALCULATIONS REQUIRED UNDER 7,635
THIS SECTION NOT LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE 7,636
EFFECTIVE DATE OF THIS SECTION. THE BOARD MAY ADOPT RULES TO 7,637
IMPLEMENT THIS SECTION. 7,638
Sec. 3307.6914. (A) AS USED IN THIS SECTION: 7,640
(1) "CUMULATIVE PERCENTAGE CHANGE IN THE CPI" MEANS THE 7,642
TOTAL PERCENTAGE CHANGE IN THE CONSUMER PRICE INDEX PREPARED BY 7,643
THE UNITED STATES BUREAU OF LABOR STATISTICS FOR URBAN WAGE 7,645
162
EARNERS AND CLERICAL WORKERS (CPI-W: U.S. CITY AVERAGE, ALL 7,648
ITEMS) FROM THE THIRTY-FIRST DAY OF DECEMBER IMMEDIATELY 7,649
PRECEDING THE YEAR IN WHICH THE ORIGINAL BENEFIT STARTED THROUGH
THE THIRTY-FIRST DAY OF DECEMBER IMMEDIATELY PRECEDING THE 7,651
EFFECTIVE DATE OF THIS SECTION. 7,652
(2) "ORIGINAL BENEFIT AMOUNT" HAS THE SAME MEANING AS IN 7,654
SECTION 3307.6911 OF THE REVISED CODE. 7,655
(B)(1) EXCEPT AS PROVIDED IN DIVISION (B)(2) OF THIS 7,657
SECTION, FOR EACH ELIGIBLE RECIPIENT OF A BENEFIT PAYABLE UNDER 7,658
SECTION 3307.58, 3307.59, 3307.60, 3307.63, 3307.631, OR 3307.66 7,659
OF THE REVISED CODE, THE BOARD SHALL DETERMINE AN AMOUNT EQUAL TO 7,661
THE SUM OF THE FOLLOWING AMOUNTS:
(a) AN AMOUNT EQUAL TO EIGHTY-FIVE PER CENT OF THE 7,663
ORIGINAL BENEFIT AMOUNT, EXCEPT THAT IF THE RECIPIENT IS NOT THE 7,664
INDIVIDUAL TO WHOM THE ORIGINAL BENEFIT AMOUNT WAS GRANTED, THE 7,665
AMOUNT SHALL EQUAL EIGHTY-FIVE PER CENT OF THE PRODUCT OBTAINED 7,666
WHEN THE ORIGINAL BENEFIT AMOUNT IS MULTIPLIED BY THE PERCENTAGE 7,667
OF THE ORIGINAL BENEFIT AMOUNT BEING PAID TO THE RECIPIENT; 7,668
(b) AN AMOUNT EQUAL TO THE PRODUCT OBTAINED WHEN THE 7,670
AMOUNT DETERMINED UNDER DIVISION (B)(1) OF THIS SECTION IS 7,671
MULTIPLIED BY THE CUMULATIVE PERCENTAGE CHANGE IN THE CPI. 7,672
(2) FOR EACH ELIGIBLE RECIPIENT OF A BENEFIT UNDER SECTION 7,674
3307.66 OF THE REVISED CODE THAT IS PAYABLE BY REASON OF THE 7,675
DEATH OF A MEMBER WHO, AT THE TIME OF DEATH, WAS RECEIVING A 7,677
BENEFIT UNDER SECTION 3307.63 OR 3307.631 OF THE REVISED CODE, 7,678
THE BOARD SHALL DETERMINE ALL OF THE FOLLOWING: 7,679
(a) THE PRODUCT OBTAINED BY MULTIPLYING THE DECEASED 7,681
MEMBER'S FINAL AVERAGE SALARY BY THE CUMULATIVE PERCENTAGE CHANGE 7,682
IN THE CPI. 7,683
(b) EIGHTY-FIVE PER CENT OF THE PRODUCT OBTAINED UNDER 7,686
DIVISION (B)(2)(a) OF THIS SECTION. 7,687
(c) THE AMOUNT OF THE BENEFIT THAT WOULD BE PAYABLE UNDER 7,689
SECTION 3307.66 OF THE REVISED CODE IF THE PRODUCT OBTAINED UNDER 7,690
DIVISION (B)(2)(b) OF THIS SECTION WAS USED AS THE DECEASED 7,692
163
MEMBER'S FINAL AVERAGE SALARY. 7,693
(C) IF THE AMOUNT DETERMINED UNDER DIVISION (B) OF THIS 7,695
SECTION IS GREATER THAN THE ANNUAL BENEFIT BEING PAID TO THE 7,697
RECIPIENT, THE BOARD SHALL RECALCULATE THE ANNUAL BENEFIT PAYABLE 7,698
ON THE EFFECTIVE DATE OF THIS SECTION SO THAT IT EQUALS THE 7,699
AMOUNT DETERMINED UNDER THAT DIVISION. IF THE RECIPIENT'S 7,700
BENEFIT WAS RECALCULATED UNDER DIVISION (C) OF SECTION 3307.6913 7,701
OF THE REVISED CODE, THE BOARD SHALL USE THE RECALCULATED BENEFIT 7,703
IN MAKING A DETERMINATION UNDER THIS SECTION. 7,704
(D) THE BOARD SHALL INCLUDE THE INCREASE IN AMOUNT PAID 7,706
UNDER THIS SECTION IN AN INDIVIDUAL'S BASE FOR PURPOSES OF FUTURE 7,707
INCREASE IN ANY BENEFIT UNDER SECTION 3307.67 OF THE REVISED 7,708
CODE.
(E) THE BOARD SHALL MAKE THE RECALCULATIONS REQUIRED UNDER 7,710
THIS SECTION NOT LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE 7,711
EFFECTIVE DATE OF THIS SECTION. THE BOARD MAY ADOPT RULES TO 7,712
IMPLEMENT THIS SECTION. 7,713
Sec. 3307.281 3307.70. (A) The state teachers retirement 7,722
board may establish by rule payroll deduction plans for payment 7,724
of the following: 7,726
(1) The cost of restoring service credit under section 7,728
3307.28 3307.71 or 3307.282 3307.711 of the Revised Code or 7,730
purchasing any service credit members of the state teachers 7,732
retirement system are eligible to purchase under this chapter; 7,733
(2) Charges for participation in programs established 7,735
under section 3307.741 3307.391 of the Revised Code. 7,736
(B) In addition to any other matter considered relevant by 7,738
the board, the rules adopted under this section shall specify all 7,739
of the following: 7,740
(1) The types of service credit that may be paid for 7,742
through payroll deduction, including the section of the Revised 7,743
Code that authorizes the purchase of each type of service credit 7,744
for which payment may be made by payroll deduction; 7,745
(2) The procedure for informing the member's employer and 7,750
164
the system that the member wishes to use payroll deduction to 7,752
purchase service credit or pay for participation in programs
established under section 3307.741 3307.391 of the Revised Code; 7,754
(3) The procedure to be followed by the system and 7,756
employers to determine for each request the amount to be 7,757
deducted, the number of deductions to be made, and the interval 7,758
at which deductions will be made. The rules may provide for a 7,759
minimum amount for each deduction. They may also provide for a 7,760
maximum number of deductions for the purchase of any type of 7,761
service credit. 7,762
(4) The procedure to be followed by employers in 7,764
transmitting amounts deducted from the compensation of their 7,765
employees to the system; 7,766
(5) The procedure to be followed by the system in 7,768
crediting service credit to members who choose to purchase it 7,769
through payroll deduction; 7,770
(6) The time period within which employers are required to 7,772
transmit amounts deducted from payrolls to the system. 7,773
(C)(1) If the board establishes a payroll deduction plan 7,775
under this section, it shall certify to the member's employer, 7,776
for each member for whom deductions are to be made, the amount of 7,777
each deduction and the payrolls from which deductions are to be 7,778
made. The employer shall make the deductions as certified and 7,779
transmit the amounts deducted in accordance with the rules 7,780
established by the board under this section. 7,781
(2) If an employer does not transmit amounts deducted from 7,783
the compensation of an employee to the system within the time 7,784
period specified in rules adopted under division (B)(6) of this 7,785
section, the employer shall pay interest on the deducted amount 7,786
compounded annually at a rate to be determined by the board from 7,787
the date the amount is deducted to the date it is transmitted to 7,788
the system. 7,789
(D) Rules adopted under this section shall not affect any 7,791
right to purchase service credit conferred by any other section 7,792
165
of the Revised Code, including the right of a member under any 7,793
such section to purchase only part of the service credit the 7,794
member is eligible to purchase. 7,796
(E) No payroll deduction made pursuant to this section may 7,798
exceed the amount of a member's net compensation after all other 7,799
deductions and withholdings required by law. 7,800
(F) No payments made to the system under this section 7,802
shall affect any contribution required by section 3307.51 3307.26 7,804
or 3307.53 3307.28 of the Revised Code. 7,805
Sec. 3307.28 3307.71. The membership of any person in the 7,814
state teachers retirement system shall cease on occurrence of any 7,817
of the following: receipt of payment pursuant to section 3307.46 7,818
of the Revised Code; retirement as provided in section 3307.38 or 7,819
3307.39 of the Revised Code; death; or denial of membership 7,820
pursuant to section 3307.27 of the Revised Code.
Except as provided in this section, a member or former 7,822
member of the state teachers retirement system with PARTICIPATING 7,824
IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE 7,825
REVISED CODE WHO HAS at least one and one-half years of
contributing service credit in this system, the public employees 7,826
retirement system, the school employees retirement system, the 7,827
Ohio police and fire pension fund, or the state highway patrol 7,830
retirement system after the withdrawal and cancellation of 7,831
service credit in this system may restore all or part of such 7,832
service credit by repayment of the amount withdrawn. To this 7,833
amount shall be added interest at a rate per annum, compounded 7,834
annually, to be determined by the STATE TEACHERS retirement 7,835
board. Interest shall be payable from the first of the month of 7,837
withdrawal through the month of repayment. A member may choose 7,838
to purchase only part of such credit in any one payment. The 7,839
cost for restoring partial service shall be calculated as the 7,840
proportion that it bears to the total cost at the time of 7,841
purchase and is subject to the rules established by the board. 7,842
If a former member is eligible to buy the service credit as a 7,843
166
member of the Ohio police and fire pension fund or state highway 7,846
patrol retirement system, the former member is ineligible to 7,847
restore that service credit under this section. 7,848
The total payment to restore canceled service credit shall 7,851
be credited as follows:
(A) The amount that equals contributions made pursuant to 7,853
section 3307.51 3307.26 of the Revised Code, plus any interest on 7,855
the contributions paid by the member pursuant to this section, to 7,856
the member's account in the teachers' savings fund; 7,857
(B) The amount that equals the amount paid under section 7,859
3307.80 3307.563 of the Revised Code, to the employers trust 7,860
fund;
(C) The remainder of the payment to restore canceled 7,862
service credit, to the guarantee fund. 7,863
Sec. 3307.282 3307.711. (A) A member of the state 7,872
teachers retirement system who has at least eighteen months of 7,875
contributing service credit in the system, the police and
firemen's disability and pension fund, public employees 7,877
retirement system, school employees retirement system, or state 7,878
highway patrol retirement system, and is a former member of or no 7,879
longer contributing to the public employees retirement system or 7,880
school employees retirement system may restore service credit 7,881
under section 145.31 or 3309.26 of the Revised Code by making 7,882
payments pursuant to this section through a payroll deduction 7,883
plan established under section 3307.281 3307.70 of the Revised 7,885
Code. A member seeking to restore this service credit shall 7,887
notify the state teachers retirement system on a form approved by
the state teachers retirement board. After receiving the notice, 7,889
the state teachers retirement system shall request that the 7,890
former retirement system calculate under section 145.312 or 7,891
3309.262 of the Revised Code the cost to the member to restore 7,893
service credit for each year or portion of a year of service for 7,894
which the member seeks to restore the service credit. The amount 7,895
the former retirement system certifies as the cost of restoring 7,896
167
the service credit, plus interest described in division (B) of 7,897
this section, is the cost to the member of restoring the service 7,898
credit. On receiving the certification from the former
retirement system, the state teachers retirement system shall 7,900
notify the member of the cost. 7,901
(B) For each year or portion of a year of service credit 7,903
restored under section 145.31 or 3309.26 of the Revised Code, a 7,904
member shall pay to the state teachers retirement system the 7,906
amount certified by the former retirement system plus interest at 7,907
a rate specified by the former retirement system under section 7,908
145.312 or 3309.262 of the Revised Code for the period during 7,909
which deductions are made under section 3307.281 3307.70 of the 7,910
Revised Code. 7,912
(C) The state teachers retirement board shall annually 7,915
notify the former retirement system that a payment to restore 7,916
service credit under section 145.31 or 3309.26 of the Revised 7,917
Code has been made. At the time the payment is transferred under 7,918
division (D) of this section, the former retirement system shall 7,919
restore the service credit for the year or portion of a year for 7,920
which the payment was made. 7,921
(D) On application for a payment of accumulated 7,923
contributions or an age and service retirement, disability, or 7,925
survivor benefit under Chapter 145., 3307., or 3309. of the 7,926
Revised Code by a member who made payments under this section to 7,928
restore service credit in a former retirement system, the state 7,929
teachers retirement system shall pay to the former retirement 7,930
system an amount equal to the total amount paid by the member 7,932
under this section.
(E) The board shall adopt rules to implement this section. 7,934
Sec. 3307.283 3307.712. After receiving a request from the 7,943
public employees retirement system under division (A) of section 7,945
145.311 or the school employees retirement system under division 7,947
(A) of section 3309.261 of the Revised Code, the state teachers 7,950
retirement system shall do both of the following: 7,951
168
(A) Calculate and certify to the requesting retirement 7,954
system the cost to a former member to restore service credit 7,955
under section 3307.28 3307.71 of the Revised Code for each year 7,956
or portion of a year for which the former member seeks to restore 7,958
service credit under that section.
(B) Inform the requesting retirement system of the rate of 7,960
interest charged to a member under a payroll deduction plan 7,961
authorized under section 3307.281 3307.70 of the Revised Code. 7,962
Sec. 3307.73 3307.72. The state teachers retirement board 7,971
shall credit years of service to a member PARTICIPATING IN THE 7,973
PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE 7,974
who was employed for teaching service by an employer who failed 7,975
to make retirement contributions to the state teachers retirement 7,976
system during any year or years beginning on or after September 7,977
1, 1920, if the member deposits in the teachers' savings fund a 7,978
per cent of the member's annual compensation for such service, at 7,980
the rate of contribution then in effect, plus interest compounded 7,981
annually at a rate established by the retirement board. The 7,982
member may choose to purchase only part of such credit in any one 7,983
payment, subject to board rules. 7,984
The employer shall, upon the request of such member, 7,986
certify the amount of compensation by years of employment to the 7,988
secretary of the board. For teaching service on or after July 1, 7,989
1978, the employer shall pay an amount equal to the employer 7,990
contributions due at the time the service occurred, plus compound
interest at a rate determined by the board from the date the 7,991
service began to the date of payment. 7,992
Sec. 3307.22 3307.73. (A)(1) Except as provided in 8,001
division (A)(2) of this section, a member of the state teachers 8,002
retirement system with PARTICIPATING IN THE PLAN DESCRIBED IN 8,003
SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE WHO HAS at least 8,004
eighteen months of contributing service in the system, the public 8,006
employees retirement system, or the school employees retirement 8,007
system who CHOSE TO BE exempted himself from membership in one or 8,010
169
more of the systems pursuant to section 145.03, or 3309.23 of the 8,011
Revised Code, or former section 3307.25 or 3309.25 of the Revised 8,012
Code, or was exempt under section 3307.27 3307.24 of the Revised 8,014
Code, may purchase credit for each year or portion of a year of 8,015
service for which he THE MEMBER was exempted.
(2) A member may not purchase credit under this section 8,017
for service that was exempted from contribution under section 8,018
3307.27 3307.24 of the Revised Code and subject to the tax on 8,019
wages imposed by the "Federal Insurance Contributions Act," 68A 8,021
Stat. 415 (1954), 26 U.S.C.A. 3101, as amended. 8,022
(B) For each year or portion of a year of credit purchased 8,024
under this section, a member shall pay to the STATE TEACHERS 8,025
retirement system an amount determined by multiplying the 8,027
member's compensation for the twelve months of contributing 8,028
service preceding the month in which he THE MEMBER applies to 8,029
purchase the credit by a percentage rate established by rule of 8,031
the state teachers retirement board adopted under division (F) of 8,032
this section.
(C) Subject to board rules, a member may purchase all or 8,034
part of the credit he THE MEMBER is eligible to purchase under 8,035
this section in one or more payments. If the member purchases 8,037
the credit in more than one payment, compound interest at a rate 8,038
specified by rule of the board shall be charged on the balance 8,039
remaining after the first payment is made. 8,040
(D) Credit purchasable under this section shall not exceed 8,042
one year of service for any twelve-month period. If the period 8,043
of service for which credit is purchasable under this section is 8,044
concurrent with a period of service that will be used to 8,045
calculate a retirement benefit from this system, the public 8,046
employees retirement system, or the school employees retirement 8,047
system, the amount of the credit shall be adjusted in accordance 8,048
with rules adopted by the state teachers retirement board. 8,049
A member who is also a member of the public employees 8,051
retirement system or the school employees retirement system shall 8,052
170
purchase credit for any service for which he THE MEMBER exempted 8,053
himself SELF under section 145.03 or 3309.23 of the Revised Code, 8,055
or former section 3307.25 or 3309.25 of the Revised Code, or was 8,056
exempt under section 3307.27 3307.24 of the Revised Code, from 8,057
the retirement system in which he THE MEMBER has the greatest 8,059
number of years of service credit. If the member receives 8,061
benefits under section 3307.41 3307.57 of the Revised Code, the 8,063
state retirement system that determines and pays the retirement 8,064
benefit shall receive from the other system or systems the 8,065
amounts paid by the member for purchase of credit for exempt 8,066
service plus interest at the actuarial assumption rate of the 8,067
system paying that amount. The interest shall be for the period 8,068
beginning on the date of the member's last payment for purchase 8,069
of the credit and ending on the date of the member's retirement. 8,070
(E) If a member dies or withdraws from service, any 8,072
payment made by the member under this section shall be considered 8,073
as accumulated contributions of the member. 8,074
(F) The retirement board shall adopt rules to implement 8,076
this section. 8,077
Sec. 3307.32 3307.74. (A) Service credit purchased under 8,086
this section shall be included in the member's total service 8,088
credit. Credit may be purchased BY A MEMBER PARTICIPATING IN THE 8,089
PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE 8,090
for the following:
(1) Teaching service in a public or private school, 8,092
college, or university of this or another state, and for teaching 8,093
service in any school or entity operated by or for the United 8,094
States government. Teaching credit purchased under this section 8,095
shall be limited to service rendered in schools, colleges, or 8,096
universities chartered or accredited by the appropriate 8,097
governmental agency. 8,098
(2) Public service with another state or the United States 8,100
government, provided that such credit shall be limited to service 8,101
that would have been covered by the state teachers retirement 8,102
171
system, the school employees retirement system, the Ohio police 8,104
and fire pension fund, the state highway patrol retirement 8,107
system, or the public employees retirement system if served in a 8,108
comparable public position in this state.
(3) Service for which contributions were made by the 8,110
member or on the member's behalf to a municipal retirement system 8,112
in this state. 8,113
The number of years of service purchased under this section 8,115
shall not exceed the lesser of five years or the member's total 8,116
accumulated number of years of Ohio service. 8,117
(B)(1) Except as otherwise provided in division (B)(2) of 8,119
this section, for each year of service purchased under this 8,120
section, a member shall pay to the state teachers retirement 8,121
system for credit to the member's accumulated account an amount 8,123
equal to the member's retirement contribution for full-time 8,124
employment for the first year of Ohio service following 8,126
termination of the service to be purchased. To this amount shall 8,127
be added an amount equal to compound interest at a rate 8,128
established by the state teachers retirement board from the date 8,129
of membership in the state teachers retirement system to the date 8,130
of payment.
(2) For each year of service described in division (A) of 8,132
this section that commenced on or after July 1, 1989, and, 8,133
without regard to when the service commenced, for each year of 8,134
service purchased under division (A) of this section by a member 8,135
who first established membership in the retirement system on or 8,136
after July 1, 1989, the member shall pay to the retirement system 8,137
for credit to the member's individual account an amount specified 8,139
by the state teachers retirement board that shall be not less 8,140
than fifty per cent of the additional liability resulting from 8,141
the purchase of that year of service as determined by an actuary 8,142
employed by the board. 8,143
(3) A member may choose to purchase only part of the 8,145
credit the member is eligible to purchase under this section in 8,147
172
any one payment, subject to board rules. 8,148
(C) A member is ineligible to purchase under this section 8,150
service that is used in the calculation of any retirement benefit 8,151
currently being paid or payable in the future to such member 8,152
under any other retirement program, except social security. At 8,153
the time the credit is purchased, the member shall certify on a 8,154
form furnished by the retirement board that the member does and 8,156
will conform to this requirement. 8,157
(D) Credit purchased under this section may be combined 8,159
pursuant to section 3307.41 3307.57 of the Revised Code with 8,160
credit purchased under sections 145.293 and 3309.31 of the 8,162
Revised Code, except that not more than a total of five years' 8,163
service credit purchased under this section and sections 145.293 8,164
and 3309.31 of the Revised Code shall be used in determining 8,165
retirement eligibility or calculating benefits under section 8,166
3307.41 3307.57 of the Revised Code. 8,168
(E) The retirement board shall establish a policy to 8,170
determine eligibility to purchase credit under this section, and 8,171
its decision shall be final. 8,172
Sec. 3307.33 3307.741. (A) As used in this section, 8,181
"other Ohio state retirement system" means the public employees 8,183
retirement system, the school employees retirement system, the 8,184
Ohio police and fire pension fund, or the state highway patrol 8,187
retirement system.
(B) Any member PARTICIPATING IN THE PLAN DESCRIBED IN 8,189
SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE, in addition to 8,190
service as a teacher, may purchase credit for either of the 8,191
following:
(1) Similar service as a teacher in the public day 8,193
schools, in state universities, state normal schools, and other 8,194
state or municipal institutions of a character similar to the 8,195
state or municipally supported schools of Ohio in which 8,196
membership in the state teachers retirement system is allowed, of 8,197
another state of the United States, or of any territory or 8,198
173
possession of the United States, or of the District of Columbia; 8,199
(2) Similar service as an employee of an employer who 8,201
comes within any other Ohio state retirement system but for 8,202
service which is rendered at any time in another state of the 8,203
United States or of any territory or possession thereof, or for 8,204
service as an employee of the United States government, provided 8,205
credit cannot be purchased for service credit or benefits 8,206
received in any other state retirement system in Ohio. 8,207
(C) Any member who has at least ten years of total service 8,209
credit may also purchase credit for similar service as a teacher 8,210
in a private school, college, university, or other educational 8,211
institution that is located in this or another state, in any 8,212
territory or possession of the United States, or in the District 8,213
of Columbia, and is chartered or accredited by the appropriate 8,214
governmental agency. 8,215
(D) The state teachers retirement board shall have final 8,217
authority to determine and fix the amount of the payment that 8,218
shall be made for credit for service purchased under this 8,219
section, provided that if the member established membership in 8,220
the state teachers retirement system on or after July 1, 1989, or 8,221
the credit is for service described in division (B) or (C) of 8,222
this section that commenced on or after July 1, 1989, the amount 8,223
of the payment fixed by the board shall be not less than fifty 8,224
per cent of the additional liability resulting from the credit as 8,225
specified by an actuary employed by the board. 8,226
A member may choose to purchase only part of the credit the 8,228
member is eligible to purchase under this section in any one 8,230
payment, subject to board rules. Such payment, together with 8,231
interest compounded annually at a rate to be determined by the 8,232
board, may be refunded under the same conditions and in the same 8,233
manner as refunds are made under section 3307.51 3307.26 of the 8,234
Revised Code, and the credit provided by such payment shall be 8,236
canceled. At superannuation or commuted superannuation 8,237
retirement such payment for service, with regular interest 8,238
174
compounded annually at a rate to be determined by the board, 8,239
shall be deposited in the annuity and pension reserve fund as the 8,240
reserve for additional annuity as provided in section 3307.51 8,241
3307.26 of the Revised Code, excepting moneys charged for any 8,243
additional liabilities resulting from the purchase of the service 8,244
credit as determined by the actuary employed by the board. 8,245
Sec. 3307.02 3307.75. (A) As used in this section, "armed 8,254
forces" of the United States includes both: 8,256
(1) Army, navy, air force, marine corps, coast guard, 8,258
auxiliary corps as established by congress, army nurse corps, 8,259
navy nurse corps, red cross nurse serving with the army, navy, 8,260
air force, or hospital service of the United States, full-time 8,261
service with the American red cross in a combat zone, and such 8,262
other service as is designated by the congress as included 8,263
therein; 8,264
(2) Personnel of the Ohio national guard, the Ohio 8,266
military reserve, the Ohio naval militia, and the reserve 8,267
components of the armed forces enumerated in division (A)(1) of 8,268
this section who are called to active duty pursuant to an 8,269
executive order issued by the president of the United States or 8,270
an act of congress. 8,271
(B) Upon presentation of an honorable discharge or 8,273
certificate of service, and subject to rules adopted by the state 8,274
teachers retirement board, any member of the state teachers 8,275
retirement system PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 8,276
3307.50 TO 3307.79 OF THE REVISED CODE who was or is out of 8,278
active service as a teacher by reason of having become a member 8,279
of the armed forces of the United States on active duty or 8,280
service shall be considered as on indefinite leave of absence and 8,281
shall have such service not in excess of ten years considered as 8,282
the equivalent of prior service, provided the member returns to 8,283
service as a teacher within two years after the effective date of 8,284
discharge and establishes one year of service credit, or becomes 8,285
a member of either the public employees retirement system or the 8,286
175
school employees retirement system within such two-year period 8,287
and establishes at least one year of service credit. The 8,288
retirement board shall extend such two-year period an additional 8,289
year if failure to return is due to continuous professional 8,290
training as determined by said board. If such member, otherwise 8,291
qualified for such credit, canceled membership by the withdrawal 8,293
of the member's accumulated account, such military service credit 8,294
shall be granted following the restoration of the member's 8,295
canceled service credit as provided by section 3307.28 3307.71 of 8,297
the Revised Code. Any member of the state teachers retirement 8,299
system or anyone who becomes a new entrant who is assigned or 8,300
called to take charge of special training for essential national 8,301
defense work or veterans' training courses in any of the public 8,302
schools or universities of the state may make regular 8,303
contributions to the state teachers retirement system even though 8,304
the member's or new entrant's salary is paid from federal funds, 8,307
provided the member's or new entrant's salary is disbursed by an 8,308
employer.
(C) A member of the state teachers retirement system is 8,310
ineligible to receive service credit under this section for any 8,311
year of military service credit used in the calculation of any 8,312
retirement benefit currently being paid to the member or payable 8,313
in the future under any other retirement program, except social 8,314
security, or used to obtain service credit pursuant to section 8,315
3307.021 3307.751 or 3307.022 3307.752 of the Revised Code. At 8,317
the time such credit is requested, the member shall certify on a 8,319
form supplied by the retirement board that the member does and 8,320
will conform to this requirement. This division does not cancel 8,321
any military service credit earned prior to March 15, 1979. 8,322
Sec. 3307.021 3307.751. (A) A member PARTICIPATING IN THE 8,331
PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE 8,332
may purchase service credit that shall be considered as the 8,334
equivalent of Ohio service for each year of service incurred by 8,335
reason of having been on active duty as a member of the armed 8,336
176
forces of the United States, as defined in section 3307.02 8,337
3307.75 of the Revised Code. The credit may be purchased at any 8,339
time prior to the effective date of a benefit. The number of 8,340
years purchased under this division shall not exceed five. 8,341
(B) For the purposes of this division, "prisoner of war" 8,343
means any regularly appointed, enrolled, enlisted, or inducted 8,344
member of the armed forces of the United States who was captured, 8,345
separated, and incarcerated by an enemy of the United States. 8,346
A member PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 8,348
3307.50 TO 3307.79 OF THE REVISED CODE may purchase service 8,349
credit that shall be considered as the equivalent of Ohio service 8,350
for each year of service such member was a prisoner of war. The 8,351
number of years purchased under this division shall not exceed 8,352
five. Service credit may be purchased under this division for 8,353
the same years of service used to purchase service credit under 8,354
division (A) of this section. 8,355
(C) The total number of years purchased under this section 8,357
shall not exceed the member's total accumulated number of years 8,358
of Ohio service. 8,359
(D)(1) Except as otherwise provided in division (D)(2) of 8,361
this section, for each year of service purchased under division 8,362
(A) or (B) of this section, the member shall pay to the state 8,363
teachers retirement system for credit to the member's accumulated 8,365
account an amount determined by the member rate of contribution 8,366
in effect at the time the military service began multiplied by 8,367
the member's annual compensation for full-time employment during 8,369
the first year of service in Ohio following termination of 8,370
military service. If, however, a limit on maximum salary or 8,371
maximum contribution was in effect at the time the military 8,372
service began, the limit shall be applied to the salary received 8,373
during the first year of service in Ohio to calculate the amount 8,374
of payment. To this amount shall be added an amount equal to 8,375
compound interest at a rate established by the state teachers 8,376
retirement board from the date active military service terminated 8,377
177
to date of payment.
(2) For each year of service purchased under division (A) 8,379
or (B) of this section for military service that commenced on or 8,380
after July 1, 1989, and, without regard to when the military 8,381
service commenced, for each year of service purchased under 8,382
division (A) or (B) of this section by a member who first 8,383
established membership in the retirement system on or after July 8,384
1, 1989, the member shall pay to the retirement system for credit 8,385
to the member's individual account an amount specified by the 8,387
state teachers retirement board that shall be not less than fifty 8,388
per cent of the additional liability resulting from the purchase 8,389
of that year of service as determined by an actuary employed by 8,390
the board. 8,391
(3) A member may choose to purchase only part of the 8,393
credit the member is eligible to purchase under this section in 8,395
any one payment, subject to board rules. 8,396
(E) A member of the state teachers retirement system is 8,398
ineligible to purchase service credit under this section for any 8,399
year of military service that was: 8,400
(1) Used in the calculation of any retirement benefit 8,403
currently being paid to such member or payable in the future 8,404
under any other retirement program, except for retired pay for 8,405
non-regular service under Chapter 1223 of Section 1662 of Title 8,407
XVI of the "National Defense Authorization Act for Fiscal Year 8,408
1995," 108 Stat. 2998 (1994), 10 U.S.C.A. 12731 to 12739, or 8,409
social security; 8,410
(2) Used to obtain service credit pursuant to section 8,412
3307.02 3307.75 or 3307.022 3307.752 of the Revised Code. 8,414
At the time the credit is purchased, the member shall 8,417
certify on a form furnished by the retirement board that the 8,418
member does and will conform to this requirement. 8,420
(F) Credit purchased under this section may be combined 8,422
pursuant to section 3307.41 3307.57 of the Revised Code with 8,423
credit for military service purchased under sections 145.301 and 8,425
178
3309.021 of the Revised Code, except that not more than a total 8,426
of five years of credit purchased under division (A) of this 8,427
section, division (A) of section 145.301, and division (A) of 8,428
section 3309.021 and not more than a total of five years of 8,429
credit purchased under division (B) of this section, division (B) 8,430
of section 145.301, and division (B) of section 3309.021 of the 8,431
Revised Code shall be used in determining retirement eligibility 8,432
or calculating benefits under section 3307.41 3307.57 of the 8,433
Revised Code.
Sec. 3307.022 3307.752. (A) As used in this section: 8,443
(1) "Service in the uniformed services" means the 8,445
performance of duty on a voluntary or involuntary basis in a 8,446
uniformed service under competent authority and includes active 8,447
duty, active duty for training, initial active duty for training, 8,449
inactive duty training, full-time national guard duty, and a 8,450
period for which a person is absent from a position of employment 8,451
for the purpose of an examination to determine the fitness of the 8,452
person to perform any such duty.
(2) "Uniformed services" means the army, navy, air force, 8,454
marine corps, coast guard, or any reserve components of such 8,455
services; national guard; the commissioned corps of the United 8,457
States public health service; service as a red cross nurse with 8,459
the army, navy, air force, or hospital service of the United 8,460
States, army nurse corps, navy nurse corps, or serving full-time 8,462
with the American red cross in a combat zone; and any other 8,464
category of persons designated by the president in time of war or 8,465
emergency.
(B) On THE re-employment of a member PARTICIPATING IN THE 8,468
PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE 8,469
as a teacher by the same public employer that employed the member 8,470
prior to the member's service in the uniformed services, the 8,471
member may apply to the state teachers retirement system on a 8,472
form provided by the system to purchase service credit for 8,473
service in the uniformed services that shall be considered the 8,474
179
equivalent of Ohio service credit. On receipt of the 8,476
application, the retirement system shall request from the 8,477
employer that employed the member as a teacher prior to the 8,478
military service a certification that the member was employed by 8,479
the employer prior to, and returned to employment with the 8,480
employer within three months of honorable discharge or release 8,481
from, service in the uniformed services. If the employer can so 8,482
certify, it shall do so and shall pay to the retirement system 8,483
the employer's contribution required by this section. The 8,484
service credit shall be granted the member if all of the 8,485
following requirements are met:
(1) The member was a member of and maintained membership 8,487
in the state teachers retirement system throughout service in the 8,489
uniformed services;
(2) The member was out of active service as a teacher by 8,491
reason of service in the uniformed services; 8,492
(3) The member was honorably discharged or released from 8,494
service in the uniformed services; 8,495
(4) The member pays contributions to the retirement system 8,498
in accordance with this section.
(C) Credit may be purchased pursuant to this section at 8,501
any time prior to receipt of a benefit. The member may choose to 8,502
purchase only part of the credit in any one payment, subject to 8,503
board rules. The retirement system shall grant service credit 8,504
under this section, not to exceed five years, for each period of 8,505
service in the uniformed services for which contributions have 8,506
been received. 8,507
(D) For service purchased under this section, the member 8,510
and the member's employer, subject to board rules, shall pay to 8,511
the retirement system for credit to the member's accumulated 8,512
account an amount equal to the contributions that would have been 8,513
paid pursuant to sections 3307.51 3307.26 and 3307.53 3307.28 of 8,515
the Revised Code if the member had not been out of active service 8,518
as a teacher by reason of service in the uniformed services. 8,519
180
If a member pays all or any portion of the contributions 8,521
required by section 3307.51 3307.26 of the Revised Code later 8,524
than the lesser of five years or a period that is three times the 8,525
member's period of service in the uniformed services beginning 8,526
from the later of the member's date of re-employment as a teacher 8,527
or the effective date of this section OCTOBER 29, 1996, an amount 8,528
equal to compound interest at a rate established by the board 8,530
from the later of the member's date of re-employment as a teacher 8,531
or the effective date of this section OCTOBER 29, 1996, to the 8,532
date of payment shall be added to the remaining amount to be paid 8,534
by the member to purchase service credit under this section. 8,535
(E) This section does not cancel any military service 8,538
credit or service in the uniformed services earned or granted 8,539
under this chapter prior to the effective date of this section 8,540
OCTOBER 29, 1996. 8,541
(F) If a member purchased service credit under section 8,544
3307.021 3307.751 of the Revised Code prior to the effective date 8,548
of this section OCTOBER 29, 1996, is not receiving a benefit, and 8,549
would have been eligible to obtain service credit pursuant to 8,550
this section had it been in effect at the time of purchase, the 8,551
retirement system shall refund the amounts paid by the member for 8,552
the purchase if both of the following requirements are met: 8,553
(1) The member makes a written request for a refund on a 8,555
form provided by the retirement system; 8,556
(2) The member pays to the retirement system the 8,558
contributions required by this section. 8,559
(G) If the member meets the requirements of division (F) 8,563
of this section, the employer shall pay to the retirement system 8,564
the employer's contributions required by this section. 8,565
Sec. 3307.411 3307.76. (A) A member of the state teachers 8,574
retirement system PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 8,575
3307.50 TO 3307.79 OF THE REVISED CODE shall, in computing years 8,576
of total service, be given full credit for time served in the 8,577
public employees retirement system under Chapter 145. of the 8,578
181
Revised Code or in the school employees retirement system under 8,579
Chapter 3309. of the Revised Code, provided that the member pays 8,580
to the state teachers retirement system the amount specified in 8,581
division (B) of this section. 8,582
(B) For each year of service described in division (A) of 8,584
this section , a member shall pay an amount specified by the 8,585
state teachers retirement board, which shall be not less than 8,586
fifty per cent of the additional liability resulting from the 8,587
purchase of that year of service as determined by an actuary 8,588
employed by the board. 8,589
(C) A member may choose to purchase only part of the 8,591
credit the member is eligible to purchase under this section in 8,593
any one payment, subject to board rules. 8,594
A member is ineligible to purchase credit under this 8,596
section if credit for the service may be obtained from the public 8,598
employees retirement system or school employees retirement system 8,599
or if the credit is for service that is used in the calculation 8,600
of any retirement benefit currently being paid or payable in the 8,601
future to the member.
Sec. 3307.412 3307.761. (A) A member of the state 8,611
teachers retirement system PARTICIPATING IN THE PLAN DESCRIBED IN 8,612
SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE who has
contributions on deposit with the Ohio police and fire pension 8,614
fund or the state highway patrol retirement system shall, in 8,615
computing years of total service, be given full credit for 8,616
service credit earned under Chapter 742. or 5505. of the Revised 8,619
Code or purchased for service in the armed forces of the United 8,622
States if a transfer to the state teachers retirement system is 8,624
made under this division. At the request of the member, the Ohio 8,625
police and fire pension fund or state highway patrol retirement 8,626
system shall transfer to the state teachers retirement system, 8,627
for each year of service, the sum of the following: 8,629
(1) An amount equal to the member's payments for service 8,632
in the armed forces of the United States and accumulated 8,634
182
contributions to the transferring fund or system; 8,635
(2) An amount equal to the lesser of the employer's 8,637
contributions to the Ohio police and fire pension fund or state 8,639
highway patrol retirement system or the amount that would have 8,640
been contributed by the employer for the service had the member 8,641
been a member of the state teachers retirement system; 8,642
(3) Interest, determined as provided in division (E) of 8,645
this section, on the amounts specified in divisions (A)(1) and 8,647
(2) of this section from the last day of the year for which the 8,649
service credit was earned or in which military service credit was 8,650
purchased or obtained to the date the transfer is made. 8,652
(B) A member PARTICIPATING IN THE PLAN DESCRIBED IN 8,654
SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE who has at least 8,656
eighteen months of contributing service with the state teachers 8,657
retirement system, is a former member of the Ohio police and fire 8,659
pension fund or state highway patrol retirement system, and has 8,661
received a refund of contributions to that fund or system shall, 8,662
in computing years of total service, be given full credit for 8,663
service credit earned under Chapter 742. or 5505. of the Revised 8,665
Code or purchased for service in the armed forces of the United 8,668
States if, for each year of service, the state teachers 8,670
retirement system receives the sum of the following: 8,671
(1) An amount, which shall be paid by the member, equal to 8,674
the amount refunded by the Ohio police and fire pension fund or 8,675
the state highway patrol retirement system to the member for that 8,676
year for accumulated contributions and payments for purchase of 8,677
credit for service in the armed forces of the United States, with 8,679
interest on that amount from the date of the refund to the date 8,681
of the payment; 8,682
(2) Interest, which shall be transferred by the Ohio 8,685
police and fire pension fund or state highway patrol retirement 8,688
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 8,690
the service credit was earned or in which military service credit 8,691
183
was purchased or obtained to the date the refund was made; 8,693
(3) An amount, which shall be transferred by the Ohio 8,695
police and fire pension fund or state highway patrol retirement 8,697
system, equal to the lesser of the amount contributed by the 8,698
employer to the Ohio police and fire pension fund or state 8,699
highway patrol retirement system for that year or the amount that 8,700
would have been contributed by the employer for the year had the 8,701
member been a member of the state teachers retirement system, 8,702
with interest on that amount from the last day of the year for 8,705
which the service credit was earned or in which military service 8,706
credit was purchased or obtained to the date of the transfer. 8,708
On receipt of payment from the member, the state teaches 8,711
TEACHERS retirement system shall notify the Ohio police and fire 8,713
pension fund or the state highway patrol retirement system, 8,714
which, on receipt of the notice, shall make the transfer required 8,715
by this division. Interest shall be determined as provided in 8,716
division (E) of this section. 8,717
A member may choose to purchase only part of the credit the 8,720
member is eligible to purchase under this division in any one 8,721
payment, subject to rules of the state teachers retirement board. 8,722
(C) A member is ineligible to obtain credit under this 8,725
section for service that is used in the calculation of any 8,726
retirement benefit currently being paid or payable in the future. 8,727
(D) If a member of the state teachers retirement system 8,730
who is not a current contributor elects to obtain credit under 8,731
section 742.379 or 5505.202 of the Revised Code for service for 8,732
which the member contributed to the state teachers retirement 8,733
system or purchased credit for service in the armed forces of the 8,734
United States, the state teachers retirement system shall 8,737
transfer to the Ohio police and fire pension fund or state 8,738
highway patrol retirement system, as applicable, the amount 8,739
specified in division (D) of section 742.379 or division (B)(2) 8,741
of section 5505.202 of the Revised Code. 8,742
(E) Interest charged under this section shall be 8,745
184
calculated separately for each year of service credit at the 8,746
lesser of the actuarial assumption rate for that year of the 8,747
state teachers retirement system or of the fund or retirement 8,748
system in which the credit was earned. The interest shall be 8,749
compounded annually. 8,750
(F) The state teachers retirement board shall credit to a 8,753
member's account in the teachers' savings fund the amounts 8,754
described in divisions (A)(1) and (B)(1) of this section, except 8,756
that the interest paid by the member under division (B)(1) of 8,757
this section shall be credited to the employers' trust fund. The 8,759
board shall credit to the employers' trust fund the amounts
described in divisions (A)(2), (3), and (B)(2) of this section. 8,762
Sec. 3307.512 3307.77. (A) As used in this section, 8,771
"employer" means the employer employing a member of the state 8,773
teachers retirement system at the time the member commences an 8,774
absence, or is granted a leave described in this section. 8,775
(B) Any member of the state teachers retirement system 8,777
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 8,778
3307.79 OF THE REVISED CODE who is, or has been, prevented from 8,779
making contributions under section 3307.51 3307.26 of the Revised 8,780
Code because of an absence due to his THE MEMBER'S own illness or 8,782
injury, or who is, or has been, granted a leave for educational, 8,784
professional, or other purposes pursuant to section 3319.13, 8,785
3319.131, or 3345.28 of the Revised Code or for any other reason 8,786
approved by the state teachers retirement board, may purchase 8,787
service credit, not to exceed two years for each such period of 8,788
absence or leave, either by having deductions made in accordance 8,789
with division (C) of this section or by making the payment 8,790
required by division (D) or (E) of this section.
(C) If the absence or leave begins and ends in the same 8,792
year, the member may purchase credit for the absence or leave by 8,793
having the employer deduct and transmit to the system from 8,794
payrolls in that year employee contributions on the amount 8,795
certified by the employer as the compensation the member would 8,796
185
have received had he THE MEMBER remained employed in the position 8,798
he held when the absence or leave commenced. The deductions may 8,799
be made even though the minimum compensation provided by law for 8,800
the member is reduced thereby, unless the amount to be deducted 8,801
exceeds the compensation to be paid the member from the time 8,802
deductions begin until the end of the year, in which case credit 8,803
may not be purchased under this division. The employer shall pay 8,804
the system the employer contributions on the compensation amount 8,805
certified under this division. Employee and employer 8,806
contributions shall be made at the rates in effect at the time 8,807
the absence or leave occurred. If the employee or employer rates 8,808
in effect change during the absence or leave, the contributions 8,809
for each month of the absence or leave shall be made at the rate 8,810
in effect for that month. 8,811
(D) During or following the absence or leave, but no later 8,813
than two years following the last day of the year in which the 8,814
absence or leave terminates, a member may purchase credit for the 8,815
absence or leave by paying to the employer, and the employer 8,816
transmitting to the system, employee contributions on the amount 8,817
certified by the employer as the compensation the member would 8,818
have received had he THE MEMBER remained employed in the position 8,820
he held when the absence or leave commenced. The employer shall 8,821
pay the system the employer contributions on the compensation 8,822
amount certified under this division. Employee and employer 8,823
contributions shall be made at the rates in effect at the time 8,824
the absence or leave occurred. If the employee or employer rates 8,825
in effect change during the absence or leave, the contributions 8,826
for each month of an absence or leave shall be made at the rate 8,827
in effect for that month. 8,828
(E) After two years following the last day of the year in 8,830
which an absence or leave terminated, a member may purchase 8,831
credit for the absence or leave by paying the employer, and the 8,832
employer transmitting to the system, the sum of the following for 8,833
each year of credit purchased: 8,834
186
(1) An amount determined by multiplying the employee rate 8,836
of contribution in effect at the time the absence or leave 8,837
commenced by the member's annual compensation for his THE 8,838
MEMBER'S last full year of service prior to the commencement of 8,840
the absence or leave, or, if he THE MEMBER has not had a full 8,841
year of service, the compensation the member would have received 8,843
for the year the absence or leave commenced had he THE MEMBER 8,844
continued in service for a full year; 8,846
(2) Interest compounded annually, at a rate determined by 8,848
the board, on the amount determined under division (E)(1) of this 8,849
section for the period commencing two years following the last 8,850
day of the year in which the absence or leave terminated and 8,851
ending on the date of payment; 8,852
(3) Interest compounded annually, at a rate determined by 8,854
the board, on an amount equal to the employer's contribution 8,855
required by this division for the period commencing two years 8,856
following the last day of the year in which the absence or leave 8,857
terminated and ending on the date of payment. 8,858
The employer shall pay to the system for each year of 8,860
credit purchased under this division an amount determined by 8,861
multiplying the employer contribution rate in effect at the time 8,862
the absence or leave commenced by the member's annual 8,863
compensation for his THE MEMBER'S last full year of service prior 8,865
to the commencement of the absence or leave, or, if he THE MEMBER 8,866
has not had a full year of service, the compensation the member 8,868
would have received for the year the absence or leave commenced 8,869
had he THE MEMBER continued in service for a full year. 8,871
(F) A member who chooses to purchase service credit under 8,873
division (D) or (E) of this section may choose to purchase only 8,874
part of the credit for which he THE MEMBER is eligible in any one 8,876
payment, but payments made more than two years following the last 8,877
day of the year in which the absence or leave terminated shall be 8,878
made in accordance with division (E) of this section. 8,879
(G) The state teachers retirement board may adopt rules to 8,881
187
implement this section. 8,882
Sec. 3307.515 3307.771. As used in this section, "regular 8,891
employment" means a consistent pattern of employment for twelve 8,893
or more consecutive weeks by the same employer during the year. 8,894
A member of the state teachers retirement system 8,896
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 8,897
3307.79 OF THE REVISED CODE who prior to July 1, 1982, was 8,898
granted a leave of absence for pregnancy or resigned due to 8,899
pregnancy may purchase service credit for a period for which she 8,900
did not make contributions under section 3307.51 3307.26 of the 8,901
Revised Code. Service credit purchased under this section shall 8,903
not exceed the lesser of two years or the period from the day the 8,904
leave commenced or the effective date of resignation to the date 8,905
of the member's return to regular employment as a contributor to
the retirement system. A member may purchase credit for more 8,906
than one period of absence due to pregnancy, but the total 8,907
service credit purchased under this section, FORMER section 8,908
3307.513, and FORMER section 3307.514 of the Revised Code shall 8,909
not exceed two years. The member shall submit evidence 8,910
satisfactory to the retirement board documenting that the leave 8,911
or resignation was due to pregnancy.
For each year of service credit purchased under this 8,913
section, the member shall pay to the system for credit to her 8,914
accumulated account an amount determined by multiplying the 8,915
employee rate of contribution in effect at the time the leave or 8,916
absence commenced by her annual compensation for full-time
employment during the first year of service in Ohio following 8,917
termination of the absence or leave and adding to that amount 8,918
interest compounded annually, at a rate established by the board, 8,919
from the date the absence or leave terminated to the date of 8,920
payment.
A member may purchase all or part of the credit for which 8,922
she is eligible in one or more payments. A member who purchases 8,923
service credit for an absence or leave under this section may not 8,924
188
purchase credit for that absence or leave under section 3307.512 8,925
3307.77 of the Revised Code. A member who has purchased service 8,926
credit for an absence or leave under FORMER section 3307.512, 8,927
3307.513, or 3307.514 OR SECTION 3307.77 of the Revised Code may 8,928
not purchase credit under this section for the same period of 8,929
absence or leave.
The state teachers retirement board may adopt rules to 8,931
implement this section. 8,932
Sec. 3307.311 3307.78. (A) As used in this section, 8,941
"school board member" means a member of a city, local, exempted 8,943
village, or joint vocational school district board of education 8,944
and "governing board member" means a member of an educational 8,945
service center governing board. 8,946
(B) A member of the state teachers retirement system 8,948
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 8,949
3307.79 OF THE REVISED CODE who does both of the following may 8,950
purchase credit for service as a school board or governing board 8,951
member, other than service subject to the tax on wages imposed by 8,953
the "Federal Insurance Contributions Act," 68A Stat. 415 (1954), 8,954
26 U.S.C.A. 3101, as amended, if the member is eligible to retire 8,956
under this chapter or will become eligible to retire as a result 8,957
of purchasing the credit:
(1) Agrees to retire within ninety days after receiving 8,959
notice of the additional liability under division (C) of this 8,960
section; 8,961
(2) Provides evidence satisfactory to the STATE TEACHERS 8,963
retirement board of service as a school board or governing board 8,965
member during the years for which the member wishes to purchase 8,967
credit.
Credit may be purchased for service as a school board or 8,970
governing board member between September 1, 1920, and the first
day of January of the year in which the credit is purchased. A 8,972
member is eligible to purchase one-quarter of a year's credit for 8,973
each year of service as a school board or governing board member. 8,974
189
Credit purchased under this section shall be included in 8,976
the member's total service credit for the purposes of section 8,977
3307.36 3307.52 of the Revised Code. 8,978
(C) On receipt of a request from a member eligible to 8,980
purchase credit under this section, the system shall obtain from 8,981
its actuary certification of the additional liability to the 8,982
system for each quarter year of credit the member is eligible to 8,983
purchase and shall notify the member of such additional 8,984
liability. Within ninety days after receiving notice of the 8,985
additional liability, the member may purchase in quarter-year 8,986
increments any portion of the credit the member is eligible to 8,987
purchase. For each quarter year of credit purchased, the member 8,988
shall pay to the system an amount equal to the additional 8,989
liability resulting from the purchase. Payment shall be made in 8,990
full at the time of purchase. 8,991
(D) The state teachers retirement board shall adopt rules 8,993
in accordance with section 111.15 of the Revised Code concerning 8,994
the purchase of credit under this section. In addition to any 8,995
other matters considered relevant by the board, the rules shall 8,996
specify the procedure to be followed to inform the system that a 8,998
member wishes to purchase credit for service as a school board or 9,000
governing board member.
(E) If the member does not retire within ninety days after 9,002
purchasing credit under this section, the system shall withdraw 9,003
the credit and refund the amount paid by the member. 9,004
Sec. 3307.383 3307.79. (A) A member whose death occurred 9,014
prior to July 1, 1973, who at the time of death had more than 9,015
thirty-four but less than thirty-five years of service credit 9,016
shall be presumed to have completed thirty-five years of such 9,017
credit. Any member whose death occurred on or after July 1, 9,018
1973, but prior to August 20, 1976, and who at the time of death 9,019
had more than thirty-one but less than thirty-two years of 9,020
service credit shall be presumed to have completed thirty-two 9,021
years of such credit. Any member PARTICIPATING IN THE PLAN 9,022
190
DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE 9,023
whose death occurs on or after August 20, 1976, and who at the 9,024
time of death has more than twenty-nine but less than thirty 9,025
years of service credit shall be presumed to have completed 9,026
thirty years of such credit.
Upon (B) ON the death of a member WHO IS PARTICIPATING IN 9,029
THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED
CODE prior to service retirement, the surviving spouse or 9,031
dependents of the deceased member shall have the right to 9,032
purchase any service credit the member, had the member not died, 9,034
would have been eligible to purchase pursuant to sections
3307.021 3307.71, 3307.022 3307.72, 3307.22 3307.73, 3307.28 9,036
3307.74, 3307.32 3307.741, 3307.33 3307.751, 3307.411 3307.752, 9,038
3307.412 3307.76, 3307.512 3307.761, 3307.77, and 3307.73 9,041
3307.771 of the Revised Code upon the same terms and conditions 9,042
which the deceased member could have purchased such service 9,043
credit had the deceased member not died. Any service credit 9,044
purchased under this section shall be applied under the 9,046
provisions of this chapter in the same manner as it would have 9,047
been applied had it been purchased by the deceased member during 9,048
the deceased member's lifetime. 9,049
Sec. 3307.80. THE STATE TEACHERS RETIREMENT BOARD SHALL 9,051
ADOPT RULES TO IMPLEMENT THE PLANS ESTABLISHED UNDER SECTION 9,052
3307.81 OF THE REVISED CODE. 9,053
Sec. 3307.81. THE STATE TEACHERS RETIREMENT BOARD SHALL 9,055
ESTABLISH ONE OR MORE PLANS CONSISTING OF BENEFIT OPTIONS THAT 9,056
PROVIDE FOR AN INDIVIDUAL ACCOUNT FOR EACH PARTICIPATING MEMBER 9,057
AND UNDER WHICH BENEFITS ARE BASED SOLELY ON THE AMOUNTS THAT 9,059
HAVE ACCUMULATED IN THE ACCOUNT. THE PLANS MAY INCLUDE OPTIONS 9,060
UNDER WHICH A MEMBER PARTICIPATING IN A PLAN MAY RECEIVE 9,061
DEFINITELY DETERMINABLE BENEFITS.
EACH PLAN ESTABLISHED UNDER THIS SECTION SHALL MEET THE 9,064
REQUIREMENTS OF SECTIONS 3307.81 TO 3307.89 OF THE REVISED CODE. 9,065
IT MAY INCLUDE LIFE INSURANCE, ANNUITIES, VARIABLE ANNUITIES, 9,066
191
REGULATED INVESTMENT TRUSTS, POOLED INVESTMENT FUNDS, OR OTHER 9,068
FORMS OF INVESTMENT.
THE BOARD MAY ADMINISTER THE PLANS, ENTER INTO CONTRACTS 9,070
WITH OTHER ENTITIES TO ADMINISTER THE PLANS, OR BOTH. THE BOARD 9,071
MAY CONTRACT WITH ANOTHER ENTITY TO ADMINISTER THE PLANS IF THE 9,072
ENTITY AGREES TO MEET ALL REQUIREMENTS OF THIS CHAPTER APPLICABLE 9,073
TO THE PLANS. 9,074
Sec. 3307.811. EACH PLAN ESTABLISHED UNDER SECTION 3307.81 9,077
OF THE REVISED CODE SHALL MEET THE REQUIREMENTS NECESSARY TO 9,078
QUALIFY AS A RETIREMENT SYSTEM MAINTAINED BY A STATE OR LOCAL 9,080
GOVERNMENT ENTITY UNDER DIVISION (b)(7)(F) OF SECTION 3121 OF THE 9,081
"INTERNAL REVENUE CODE OF 1986," 100 STAT. 2085, 26 U.S.C.A. 9,085
3121(b)(7)(F), AS AMENDED. EACH PARTICIPANT IN A PLAN SHALL 9,087
QUALIFY AS A MEMBER OF THAT SYSTEM. 9,088
Sec. 3307.812. IN ESTABLISHING A PLAN UNDER SECTION 9,090
3307.81 OF THE REVISED CODE, THE STATE TEACHERS RETIREMENT BOARD 9,092
MAY DO ALL THINGS NECESSARY TO AVOID THE SYSTEM BEING REQUIRED TO 9,093
PAY FEDERAL OR STATE INCOME TAXES ON CONTRIBUTIONS TO THE PLAN OR 9,095
AMOUNTS EARNED UNDER THE PLAN AND, TO THE EXTENT PERMITTED UNDER 9,097
FEDERAL OR STATE LAW, TO ALLOW MEMBERS PARTICIPATING IN THE PLAN 9,098
TO MAKE TAX DEFERRED CONTRIBUTIONS FOR PERIODS OF INTERRUPTED OR
PRIOR SERVICE. 9,099
Sec. 3307.83. THE RIGHT OF EACH MEMBER PARTICIPATING IN A 9,101
PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE REVISED CODE TO A 9,102
RETIREMENT, DISABILITY, OR SURVIVOR BENEFIT, TO HEALTH CARE 9,104
INSURANCE COVERAGE, OR TO A WITHDRAWAL OF CONTRIBUTIONS SHALL BE 9,106
GOVERNED BY THE PLAN SELECTED BY THE MEMBER UNDER SECTION 3307.25
OR 3307.251 OF THE REVISED CODE. 9,109
Sec. 3307.84. FOR EACH MEMBER PARTICIPATING IN A PLAN 9,111
ESTABLISHED UNDER SECTION 3307.81 OF THE REVISED CODE, THE STATE 9,112
TEACHERS RETIREMENT SYSTEM SHALL TRANSFER TO THE EMPLOYERS' TRUST 9,113
FUND A PORTION OF THE EMPLOYER CONTRIBUTION REQUIRED UNDER 9,114
SECTION 3307.28 OF THE REVISED CODE THAT IS EQUAL TO THE 9,115
PERCENTAGE OF COMPENSATION OF MEMBERS DESCRIBED IN THIS SECTION 9,116
192
FOR WHOM THE CONTRIBUTIONS ARE BEING MADE THAT IS DETERMINED BY 9,118
THE BOARD'S ACTUARY TO BE NECESSARY TO MITIGATE ANY NEGATIVE 9,119
FINANCIAL IMPACT ON THE STATE TEACHERS RETIREMENT SYSTEM OF THE 9,120
PARTICIPATION OF MEMBERS IN A PLAN ESTABLISHED UNDER SECTION 9,121
3307.81 OF THE REVISED CODE. THE REMAINDER SHALL BE CREDITED AS 9,123
PROVIDED IN SECTION 3307.28 OF THE REVISED CODE. 9,124
THE STATE TEACHERS RETIREMENT BOARD SHALL HAVE PREPARED 9,128
ANNUALLY AN ACTUARIAL STUDY TO DETERMINE WHETHER THE PERCENTAGE 9,129
TRANSFERRED UNDER THIS SECTION SHOULD BE CHANGED TO REFLECT A 9,130
CHANGE IN THE LEVEL OF THE NEGATIVE FINANCIAL IMPACT RESULTING 9,131
FROM PARTICIPATION OF MEMBERS IN A PLAN ESTABLISHED UNDER SECTION
3307.81 OF THE REVISED CODE. THE PERCENTAGE TRANSFERRED UNDER 9,133
THIS SECTION SHALL BE INCREASED OR DECREASED TO REFLECT THE 9,134
AMOUNT NEEDED TO MITIGATE THE NEGATIVE FINANCIAL IMPACT, IF ANY, 9,135
ON THE SYSTEM, AS DETERMINED BY THE ACTUARIAL STUDY. AN INCREASE 9,136
OR DECREASE SHALL TAKE EFFECT ON THE FIRST DAY OF THE MONTH 9,137
FOLLOWING THE DATE THE CONCLUSIONS OF THE ACTUARIAL STUDY ARE 9,138
REPORTED TO THE BOARD.
THE SYSTEM SHALL MAKE THE TRANSFER REQUIRED UNDER THIS 9,141
SECTION UNTIL THE UNFUNDED ACTUARIAL ACCRUED LIABILITY FOR ALL 9,142
BENEFITS, EXCEPT HEALTH CARE BENEFITS PROVIDED UNDER SECTION 9,143
3307.39 OR 3307.61 OF THE REVISED CODE AND BENEFIT INCREASES 9,144
PROVIDED TO MEMBERS AND FORMER MEMBERS PARTICIPATING IN THE PLAN
DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE 9,145
AFTER THE EFFECTIVE DATE OF THIS SECTION, IS FULLY AMORTIZED, AS 9,147
DETERMINED BY THE ANNUAL ACTUARIAL VALUATION PREPARED UNDER
SECTION 3307.51 OF THE REVISED CODE. 9,149
Sec. 3307.86. THE STATE TEACHERS RETIREMENT SYSTEM MAY 9,151
REQUIRE MEMBERS PARTICIPATING IN A PLAN ESTABLISHED UNDER SECTION 9,152
3307.81 OF THE REVISED CODE AND THEIR EMPLOYERS TO FURNISH THE 9,153
CONTRIBUTIONS AND INFORMATION REQUIRED UNDER THIS CHAPTER AT MORE 9,155
FREQUENT INTERVALS THAN THOSE REQUIRED FOR MEMBERS PARTICIPATING 9,156
IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE 9,157
REVISED CODE. THE SYSTEM HAS NO DUTY TO ACCEPT CONTRIBUTIONS BY 9,158
193
OR ON BEHALF OF A MEMBER IF A CONTRIBUTION OR INFORMATION IS NOT 9,159
FURNISHED AT SUCH INTERVALS.
Sec. 3307.87. (A)(1) IF A MEMBER PARTICIPATING IN A PLAN 9,161
ESTABLISHED UNDER SECTION 3307.81 OF THE REVISED CODE IS MARRIED 9,162
AT THE TIME ANY BENEFITS UNDER THE PLAN COMMENCE, BENEFITS SHALL 9,164
BE PAID IN ACCORDANCE WITH DIVISION (A)(2) OF THIS SECTION,
UNLESS THE SPOUSE HAS CONSENTED UNDER DIVISION (C) OF THIS 9,165
SECTION TO A DIFFERENT FORM OF PAYMENT. 9,166
(2) THE BENEFITS DESCRIBED IN DIVISION (A)(1) OF THIS 9,168
SECTION SHALL BE PAID IN THE FORM OF AN ANNUITY, WHICH SHALL 9,169
CONSIST OF THE ACTUARIAL EQUIVALENT OF THE MEMBER'S BENEFITS, IN 9,170
AN AMOUNT THAT IS PAYABLE FOR THE LIFE OF THE MEMBER AND ONE-HALF 9,171
OF THE AMOUNT CONTINUING AFTER THE MEMBER'S DEATH TO THE SPOUSE 9,173
FOR THE LIFE OF THE SPOUSE.
(B) IF A MEMBER PARTICIPATING IN A PLAN ESTABLISHED UNDER 9,175
SECTION 3307.81 OF THE REVISED CODE IS MARRIED AT THE TIME OF THE 9,176
MEMBER'S DEATH, ANY BENEFITS THAT ARE PAYABLE TO THE MEMBER SHALL 9,177
BE PAID TO THE MEMBER'S SPOUSE, UNLESS THE SPOUSE HAS CONSENTED 9,178
UNDER DIVISION (C) OF THIS SECTION TO THE DESIGNATION OF A 9,179
DIFFERENT BENEFICIARY. 9,180
(C) A PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE 9,182
REVISED CODE SHALL INCLUDE REQUIREMENTS FOR CONSENT UNDER THIS 9,184
SECTION THAT ARE THE SAME AS THE REQUIREMENTS SPECIFIED IN 9,185
DIVISION (a)(2) OF SECTION 417 OF THE INTERNAL REVENUE CODE, 26 9,186
U.S.C.A. 417(a)(2), AS AMENDED. EACH PLAN MAY WAIVE CONSENT IF 9,188
THE SPOUSE CANNOT BE LOCATED OR FOR ANY OTHER REASON SPECIFIED IN 9,189
THE REGULATIONS ADOPTED UNDER THAT SECTION.
CONSENT OR WAIVER IS EFFECTIVE ONLY WITH REGARD TO THE 9,191
SPOUSE WHO IS THE SUBJECT OF THE CONSENT OR WAIVER. 9,192
Sec. 3307.88. (A) THIS SECTION APPLIES TO A MEMBER OF THE 9,194
STATE TEACHERS RETIREMENT SYSTEM WHO MADE AN ELECTION UNDER 9,195
SECTION 3307.25 OF THE REVISED CODE TO PARTICIPATE IN A PLAN 9,196
ESTABLISHED UNDER SECTION 3307.81 OF THE REVISED CODE. 9,197
(B) ON THE FIRST DAY OF JULY FOLLOWING THE FOURTH 9,199
194
ANNIVERSARY OF THE DATE MEMBERSHIP BEGAN, A MEMBER SHALL BEGIN 9,200
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 9,203
3307.79 OF THE REVISED CODE UNLESS, PRIOR TO THAT DAY, THE MEMBER 9,204
ELECTS UNDER SECTION 3307.881 OF THE REVISED CODE TO REMAIN IN A 9,206
PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE REVISED CODE. 9,207
(C) WHEN, UNDER DIVISION (B) OF THIS SECTION, A MEMBER 9,209
BEGINS PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 9,211
3307.79 OF THE REVISED CODE, THE SYSTEM SHALL DO ALL OF THE 9,212
FOLLOWING:
(1) TRANSFER FROM THE MEMBER'S ACCOUNT IN THE DEFINED 9,214
CONTRIBUTION FUND TO AN ACCOUNT IN THE TEACHERS' SAVINGS FUND THE 9,215
SUM OF THE FOLLOWING: 9,216
(a) AN AMOUNT EQUAL TO THE CONTRIBUTIONS MADE PURSUANT TO 9,218
SECTION 3307.26 OF THE REVISED CODE; 9,219
(b) ANY SUPPLEMENTAL CONTRIBUTIONS MADE BY THE MEMBER; 9,221
(c) ANY EARNINGS FROM SUPPLEMENTAL CONTRIBUTIONS. 9,223
(2) TRANSFER TO THE EMPLOYERS' TRUST FUND THE SUM OF THE 9,225
FOLLOWING:
(a) AN AMOUNT EQUAL TO THE CONTRIBUTIONS MADE PURSUANT TO 9,227
SECTION 3307.28 OF THE REVISED CODE; 9,229
(b) ANY AMOUNT REMAINING IN THE MEMBER'S ACCOUNT IN THE 9,232
DEFINED CONTRIBUTION FUND AFTER THE TRANSFERS DESCRIBED IN 9,233
DIVISIONS (C)(1) AND (2)(a) OF THIS SECTION ARE MADE. 9,234
(3) GRANT SERVICE CREDIT IN ACCORDANCE WITH RULES ADOPTED 9,236
UNDER SECTION 3307.53 OF THE REVISED CODE. 9,237
(D) IF THE AMOUNT IN THE MEMBER'S ACCOUNT IN THE DEFINED 9,239
CONTRIBUTION FUND IS LESS THAN THE AMOUNT THE MEMBER WOULD HAVE 9,241
HAD IN AN ACCOUNT IN THE TEACHERS' SAVINGS FUND HAD THE MEMBER 9,242
ELECTED TO PARTICIPATE IN THE PLAN DESCRIBED IN SECTIONS 3307.50
TO 3307.79 OF THE REVISED CODE, THE SYSTEM SHALL TRANSFER FROM 9,244
THE GUARANTEE FUND ESTABLISHED UNDER SECTION 3307.14 OF THE 9,245
REVISED CODE TO THE TEACHERS' SAVINGS FUND THE AMOUNT NECESSARY 9,247
TO MAKE THE TRANSFER REQUIRED BY DIVISION (C)(1)(a) OF THIS 9,248
SECTION. 9,249
195
(E) EXCEPT FOR SERVICE CREDIT GRANTED UNDER DIVISION 9,252
(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 9,254
PURSUANT TO THIS SECTION SHALL HAVE THE SAME RIGHTS AND 9,256
PRIVILEGES UNDER THE PLAN AS A MEMBER WHO NEVER HAD MADE AN 9,258
ELECTION TO PARTICIPATE IN A PLAN ESTABLISHED UNDER SECTION 9,259
3307.81 OF THE REVISED CODE. 9,260
Sec. 3307.881. A MEMBER OF THE STATE TEACHERS RETIREMENT 9,262
SYSTEM PARTICIPATING IN A PLAN ESTABLISHED UNDER SECTION 3307.81 9,263
OF THE REVISED CODE WHO IS SUBJECT TO SECTION 3307.88 OF THE 9,266
REVISED CODE MAY ELECT TO CONTINUE PARTICIPATING IN THE PLAN. AN 9,267
ELECTION SHALL BE MADE IN WRITING ON A FORM PROVIDED BY THE STATE 9,268
TEACHERS RETIREMENT BOARD AND FILED WITH THE BOARD NOT LATER THAN
THE THIRTIETH DAY OF JUNE FOLLOWING THE FOURTH ANNIVERSARY OF THE 9,269
DATE MEMBERSHIP BEGAN. 9,270
Sec. 3307.882. NOT LATER THAN ONE HUNDRED EIGHTY DAYS 9,272
PRIOR TO THE THIRTIETH DAY OF JUNE FOLLOWING THE FOURTH 9,273
ANNIVERSARY OF THE DATE MEMBERSHIP BEGAN, THE STATE TEACHERS 9,274
RETIREMENT SYSTEM SHALL NOTIFY A MEMBER WHO IS SUBJECT TO SECTION 9,276
3307.88 OF THE REVISED CODE OF THE OPPORTUNITY TO ELECT TO 9,277
CONTINUE PARTICIPATION IN A PLAN ESTABLISHED UNDER SECTION 9,278
3307.81 OF THE REVISED CODE. THE NOTICE SHALL INCLUDE AN 9,279
EXPLANATION OF THE PROVISIONS OF SECTION 3307.881 OF THE REVISED 9,280
CODE.
Sec. 3307.89. THE STATE TEACHERS RETIREMENT BOARD MAY 9,282
OFFER TO MEMBERS PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 9,283
3307.50 TO 3307.79 OF THE REVISED CODE THE OPPORTUNITY TO ALSO 9,284
PARTICIPATE IN ONE OR MORE OF THE BENEFIT OPTIONS AVAILABLE UNDER 9,286
A PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE REVISED CODE. A 9,288
MEMBER'S CONTRIBUTIONS TO AN OPTION SHALL BE CREDITED TO AN 9,289
INDIVIDUAL ACCOUNT ESTABLISHED FOR THE MEMBER IN THE DEFINED 9,290
CONTRIBUTION FUND. 9,291
Sec. 3307.68 3307.96. If a local district pension system 9,300
votes to merge with the state teachers retirement system as 9,302
196
provided in section 3307.26 3307.241 of the Revised Code, the 9,305
state teachers retirement board shall employ an actuary to value
the assets and liabilities which will be taken over by the state 9,306
teachers retirement system hereby created in the event of such 9,307
merger. The actuary so employed shall be an actuary also 9,309
approved by the employer in whose district the local district 9,311
pension system is operated, and the expense of the valuation 9,312
shall be paid by such THE employer. The actuary shall compute 9,313
the present value of the liabilities on account of teachers in 9,314
service in the local district pension system and on account of 9,315
pensioners in the rolls of such local district pension system. 9,316
He THE ACTUARY shall also compute the present value of the 9,318
prospective amount to be received by reason of the payment of the
normal contributions by the employer on behalf of the active 9,319
teachers of such local system in the event of the contemplated 9,320
merger. From the present value of the total liability for 9,321
pensions on account of teachers in service in the local district 9,322
pension system as previously determined, the actuary shall deduct 9,323
the present value of the normal contributions.
The amount remaining, together with any excess, of the 9,325
present value of all payments, necessary to continue the pensions 9,326
of the pensioners of the local district pension system, over and 9,327
above the amount of moneys and securities of such system, shall 9,328
be known as the "accrued liability." No teacher who is a member 9,329
of a local district pension system on May 9, 1919, shall receive
a lesser total retirement allowance upon retirement after merger 9,330
of the local system with the state teachers retirement system 9,331
than said teacher would have received upon retirement under the 9,332
local system.
Sec. 3307.69 3307.97. That part of the accrued liability, 9,341
due on account of pensions to pensioners already on the rolls of 9,343
the local district pension system, referred to in section 3307.68 9,344
3307.96 of the Revised Code, remaining unpaid on September 1, 9,346
1924, shall be paid by the employer at the rate of at least four
197
per cent per annum of such accrued liability with interest at 9,347
four per cent per annum on unpaid balances. Both the payment and 9,348
interest shall be payable semiannually on dates to be fixed by 9,349
the state teachers retirement board. Payments on that part of 9,350
the accrued liability due to teachers in active service in the 9,351
local district pension system shall be at the same rate per cent 9,352
of the salaries of such teachers as the deficiency contribution
rate fixed in FORMER section 3307.54 of the Revised Code, and 9,353
shall be made until the year in which the deficiency contribution 9,355
payable by other employers who had no local pension system may be 9,356
discontinued.
Sec. 3307.70 3307.98. The increasing contribution 9,365
determined as provided in sections 3307.68 3307.96 and 3307.69 9,367
3307.97 of the Revised Code by the actuary shall be paid by the 9,369
employer. In the event of merger, the moneys and securities to 9,370
the credit of the local district pension system, not exceeding an 9,371
aggregate amount equal to the present value of the payments to be 9,372
made on account of all pensions to the pensioners on the rolls of 9,373
the local district pension system, shall be transferred to the 9,374
employers' accumulation fund and the pensions then payable by the 9,375
local district pension system shall thereafter be paid from the 9,376
employers' accumulation fund until the reserves on these pensions 9,377
with the other pensions payable from the employers' accumulation 9,378
fund have been accumulated and shall be transferred to the 9,379
annuity and pension reserve fund, from which fund they shall 9,380
thereafter be payable. The pensions of the active members of the 9,381
local district pension system and of the new entrants shall 9,382
thereafter be payable as are the pensions of other members of the 9,383
state teachers retirement system. The amount of the excess of 9,384
the moneys and securities of the local district pension system 9,385
over and above the present value of the payments to be made on 9,386
account of all pensions to the pensioners of the rolls of the 9,387
local district pension system shall be transferred to the 9,388
teachers' savings fund and shall be credited pro rata to the 9,389
198
active teachers of such local district pensions system on the 9,390
basis of the amounts of their previous contributions to the local 9,391
district pension system. In case such method of distribution is 9,392
not found practicable by the state teachers retirement board, the 9,393
board may use such other method of apportionment as seems fair 9,394
and equitable to such board. The amount so credited in any case 9,395
shall be considered as a part of the teacher's accumulated 9,396
contributions, AS DEFINED IN SECTION 3307.50 OF THE REVISED CODE, 9,397
for all purposes except in the case of retirement UNDER THE PLAN 9,399
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 9,400
teacher's accumulated contributions and shall be used in 9,401
purchasing from the annuity and pension reserve fund an annuity, 9,402
in addition to any other annuity or pension benefit otherwise 9,403
provided by this chapter. 9,404
After the moneys and securities of any local district 9,406
pension system have been transferred to the employers' 9,407
accumulation fund or to the teachers' savings fund, such local 9,408
district pension system shall cease to exist. 9,409
Sec. 3309.021. (A) A member may purchase service credit 9,418
that shall be considered as the equivalent of Ohio service for 9,419
each year of service incurred by reason of having been on active 9,420
duty as a member of the armed forces of the United States, as 9,421
defined in section 3309.02 of the Revised Code. All or part of 9,422
the credit may be purchased at any time prior to receipt of a 9,423
retirement allowance. The number of years purchased under this 9,425
division shall not exceed five.
(B) For the purposes of this division, "prisoner of war" 9,427
means any regularly appointed, enrolled, enlisted, or inducted 9,428
member of the armed forces of the United States who was captured, 9,429
separated, and incarcerated by an enemy of the United States. 9,430
A member may purchase service credit that shall be 9,432
considered as the equivalent of Ohio service for each year of 9,433
service such member was a prisoner of war. The number of years 9,434
199
purchased under this division shall not exceed five. Service 9,435
credit may be purchased under this division for the same years of 9,436
service used to purchase service credit under division (A) of 9,437
this section. The member may choose to purchase only part of 9,438
such credit in any one payment, subject to board rules. 9,439
(C) The total number of years purchased under this section 9,441
shall not exceed the member's total accumulated number of years 9,442
of Ohio service. 9,443
(D) For each year of service purchased under division (A) 9,445
or (B) of this section, the member shall pay to the school 9,446
employees retirement system for credit to the member's 9,447
accumulated account an amount determined by the member rate of 9,449
contribution in effect at the time the military service began 9,450
multiplied by the annual compensation for full-time employment 9,451
during the first year of service covered by the school employees 9,452
retirement system, public employees retirement system, or state 9,453
teachers retirement system following termination of military 9,454
service. If, however, a limit on maximum salary or maximum 9,455
contribution was in effect at the time the military service 9,456
began, the limit shall be applied to the salary received during 9,457
the first year of service in Ohio to calculate the amount of 9,458
payment. To this amount shall be added an amount equal to 9,459
compound interest at a rate established by the school employees 9,460
retirement board from the date of the member's first service 9,461
covered by the school employees retirement system, public 9,462
employees retirement system, or state teachers retirement system 9,463
following termination of the military service to date of payment. 9,464
(E) A member of the school employees retirement system is 9,466
ineligible to purchase service credit under this section for any 9,467
year of military service that was: 9,468
(1) Used in the calculation of any retirement benefit 9,471
currently being paid to the member or payable in the future under 9,472
any other retirement program, except for retired pay for 9,473
nonregular service under Chapter 1223 of Section 1662 of Title 9,475
200
XVI of the "National Defense Authorization Act for Fiscal Year 9,476
1995," 108 Stat. 2998 (1994), 10 U.S.C.A. 12731 to 12739, or 9,477
social security; 9,478
(2) Used to obtain service credit pursuant to section 9,480
3309.02 or 3309.022 of the Revised Code. 9,481
At the time such credit is purchased, the member shall 9,484
certify on a form furnished by the retirement board that the 9,485
member does and will conform to this requirement. 9,487
(F) Credit purchased under this section may be combined 9,489
pursuant to section 3309.35 of the Revised Code with credit for 9,490
military service purchased under sections 145.301 and 3307.021 9,491
3307.751 of the Revised Code, except that not more than an 9,493
aggregate total of five years of credit purchased under division 9,494
(A) of this section, division (A) of section 145.301, and 9,495
division (A) of section 3307.021 3307.751 of the Revised Code, 9,496
and not more than an aggregate total of five years of credit 9,498
purchased under division (B) of this section, division (B) of 9,499
section 145.301, and division (B) of section 3307.021 3307.751 of 9,500
the Revised Code shall be used in determining retirement 9,502
eligibility or calculating benefits under section 3309.35 of the 9,503
Revised Code.
Sec. 3309.261. (A) A member of the school employees 9,512
retirement system who has at least eighteen months of 9,513
contributing service credit in the system, the OHIO police and 9,514
firemen's disability and FIRE pension fund, public employees 9,516
retirement system, state teachers retirement system, or state 9,517
highway patrol retirement system, and is a former member of or no 9,518
longer contributing to the public employees retirement system or 9,519
state teachers retirement system may restore service credit under 9,520
section 145.31 or 3307.28 3307.71 of the Revised Code by making 9,522
payments pursuant to this section through a payroll deduction 9,523
plan established under section 3309.27 of the Revised Code. A 9,524
member seeking to restore service credit shall notify the school 9,526
employees retirement system on a form approved by the school 9,527
201
employees retirement board. After receiving the notice, the 9,528
school employees retirement system shall request that the former 9,529
retirement system calculate under section 145.312 or 3307.283 9,530
3307.712 of the Revised Code the cost to the member to restore 9,533
service credit for each year or portion of a year of service for 9,534
which the member seeks to restore the service credit. The amount 9,535
the former retirement system certifies as the cost of restoring 9,536
the service credit, plus interest described in division (B) of 9,537
this section, is the cost to the member of restoring the service 9,538
credit. On receiving the certification from the former 9,539
retirement system, the school employees retirement system shall 9,540
notify the member of the cost.
(B) For each year or portion of a year of service credit 9,542
restored under section 145.31 or 3307.28 3307.71 of the Revised 9,543
Code, a member shall pay to the school employees retirement 9,545
system the amount certified by the former retirement system plus 9,546
interest at a rate specified by the former retirement system 9,547
under section 145.312 or 3307.283 3307.712 of the Revised Code 9,548
for the period during which deductions are made under section 9,550
3309.27 of the Revised Code. 9,551
(C) The school employees retirement board shall annually 9,554
notify the former retirement system that a payment to restore 9,555
service credit under section 145.31 or 3307.28 3307.71 of the 9,556
Revised Code has been made. At the time the payment is 9,557
transferred under division (D) of this section, the former 9,558
retirement system shall restore the service credit for the year 9,559
or portion of a year for which the payment was made. 9,561
(D) On application for a payment of accumulated 9,563
contributions or an age and service retirement, disability, or 9,565
survivor benefit under Chapter 145., 3307., or 3309. of the 9,566
Revised Code by a member who made payments under this section to 9,568
restore service credit in a former retirement system, the school 9,569
employees retirement system shall pay to the former retirement 9,570
system an amount equal to the total amount paid by the member 9,571
202
under this section.
(E) The board shall adopt rules to implement this section. 9,573
Sec. 3309.262. After receiving a request from the public 9,583
employees retirement system under division (A) of section 145.311 9,584
or the state teachers retirement system under division (A) of 9,587
section 3307.282 3307.711 of the Revised Code, the school 9,589
employees retirement system shall do both of the following: 9,590
(A) Calculate and certify to the requesting retirement 9,593
system the cost to a former member to restore service credit 9,594
under section 3309.26 of the Revised Code for each year or 9,595
portion of a year for which the former member seeks to purchase 9,596
service credit under that section.
(B) Inform the requesting retirement system of the rate of 9,598
interest charged to a member under a payroll deduction plan 9,599
authorized under section 3309.27 of the Revised Code. 9,600
Sec. 3309.301. (A)(1) Except as provided in division 9,609
(A)(2) of this section, a member of the school employees 9,610
retirement system with at least eighteen months of contributing 9,611
service in the system, the public employees retirement system, or 9,612
the state teachers retirement system who exempted himself SELF 9,613
from membership in one or more of the systems pursuant to section 9,615
145.03 or 3309.23 of the Revised Code, or former section 3307.25 9,616
or 3309.25 of the Revised Code, or was exempt under section 9,617
3307.27 3307.24 of the Revised Code, may purchase credit for each 9,619
year or portion of a year of service for which he THE MEMBER was 9,620
exempted. 9,621
(2) A member may not purchase credit under this section 9,623
for service that was exempted from contribution under section 9,624
3309.23 of the Revised Code and subject to the tax on wages 9,625
imposed by the "Federal Insurance Contributions Act," 68A Stat. 9,626
415 (1954), 26 U.S.C.A. 3101, as amended. 9,627
(B) Upon receipt of a request from a member eligible to 9,629
purchase credit under this section and certification of the 9,630
member's service and compensation from the employer for which the 9,631
203
exempt service was performed, the school employees retirement 9,632
system shall determine the amount of credit the member is 9,633
eligible to purchase in accordance with divisions (B)(1) and (2) 9,634
of this section. 9,635
(1) If the credit to be purchased is for service exempted 9,637
under section 3309.23 or former section 3309.25 of the Revised 9,638
Code, determine the amount of credit that would have been earned 9,639
had the service not been exempt. 9,640
(2) If the credit to be purchased is for service exempted 9,642
under section 145.03 or 3307.27 3307.24, or former section 9,643
3307.25 of the Revised Code, request certification from the 9,645
applicable retirement system that the service was exempt and the 9,646
amount of service credit that would have been earned had the 9,647
service not been exempt. 9,648
(C) For each year or portion of a year of credit purchased 9,650
under this section, a member shall pay to the retirement system 9,651
an amount determined by multiplying the member's compensation for 9,652
the twelve months of contributing service preceding the month in 9,653
which he THE MEMBER applies to purchase the credit by a 9,654
percentage rate established by rule of the school employees 9,656
retirement board adopted under division (G) of this section. 9,657
(D) Subject to board rules, a member may purchase all or 9,659
part of the credit he THE MEMBER is eligible to purchase under 9,660
this section in one or more payments. If the member purchases 9,662
the credit in more than one payment, compound interest at a rate 9,663
specified by rule of the board shall be charged on the balance 9,664
remaining after the first payment is made. 9,665
(E) Credit purchasable under this section shall not exceed 9,667
one year of service for any twelve-month period. If the period 9,668
of service for which credit is purchasable under this section is 9,669
concurrent with a period of service that will be used to 9,670
calculate a retirement benefit from this system, the public 9,671
employees retirement system, or the state teachers retirement 9,672
system, the amount of the credit shall be adjusted in accordance 9,673
204
with rules adopted by the school employees retirement board. 9,674
A member who is also a member of the public employees 9,676
retirement system or the state teachers retirement system shall 9,677
purchase credit for any service for which he THE MEMBER exempted 9,678
himself SELF under section 145.03 or 3309.23 of the Revised Code, 9,680
or former section 3307.25 or 3309.25 of the Revised Code, or was 9,681
exempt under section 3307.27 3307.24 of the Revised Code, from 9,682
the retirement system in which he THE MEMBER has the greatest 9,684
number of years of service credit. If the member receives 9,686
benefits under section 3309.35 of the Revised Code, the state 9,687
retirement system that determines and pays the retirement benefit 9,688
shall receive from the other system or systems the amounts paid 9,689
by the member for purchase of credit for exempt service plus 9,690
interest at the actuarial assumption rate of the system paying 9,691
that amount. The interest shall be for the period beginning on 9,692
the date of the member's last payment for purchase of the credit 9,693
and ending on the date of the member's retirement. 9,694
(F) If a member dies or withdraws from service, any 9,696
payment made by the member under this section shall be considered 9,697
as accumulated contributions of the member. 9,698
(G) The retirement board shall adopt rules to implement 9,700
this section. 9,701
Sec. 3309.31. Service credit purchased under this section 9,710
shall be included in the member's total service credit. Credit 9,711
may be purchased for the following: 9,712
(A) School service in a public or private school, college, 9,714
or university of this or another state, and for school service in 9,715
any school or entity operated by or for the United States 9,716
government. Credit purchased under this section for school 9,717
service shall be limited to service rendered in schools, 9,718
colleges, or universities chartered or accredited by the 9,719
appropriate governmental agency. 9,720
(B) Public service with another state or the United States 9,722
government, provided that such credit shall be limited to service 9,723
205
that would have been covered by the state teachers retirement 9,724
system, the Ohio police and fire pension fund, the state highway 9,727
patrol retirement system, or the public employees retirement 9,728
system if served in a comparable public position in this state. 9,729
(C) Service for which contributions were made by the 9,731
member or on the member's behalf to a municipal retirement system 9,733
in this state. 9,734
The number of years of service purchased under this section 9,737
shall not exceed the lesser of five years or the member's total 9,738
accumulated number of years of Ohio service.
For each year of service purchased under this section, a 9,740
member shall pay to the school employees retirement system for 9,741
credit to the member's accumulated account an amount equal to the 9,743
member's retirement contribution for full-time employment for the 9,744
first year of Ohio service following termination of the service 9,745
to be purchased. To this amount shall be added an amount equal 9,746
to compound interest at a rate established by the school 9,747
employees retirement board from the date of membership in the 9,748
school employees retirement system to date of payment. A member 9,749
may choose to purchase only part of such credit in any one 9,750
payment, subject to board rules. 9,751
A member is ineligible to purchase under this section 9,753
service that is used in the calculation of any retirement benefit 9,754
currently being paid or payable in the future to the member under 9,755
any other retirement program, except social security. At the 9,756
time the credit is purchased, the member shall certify on a form 9,757
furnished by the retirement board that the member does and will 9,759
conform to this requirement. 9,760
(D) Credit purchased under this section may be combined 9,762
pursuant to section 3309.35 of the Revised Code with credit 9,763
purchased under sections 145.293 and 3307.32 3307.74 of the 9,764
Revised Code, except that not more than an aggregate total of 9,766
five years' service credit purchased under this section and 9,767
sections 145.293 and 3307.32 3307.74 of the Revised Code shall be 9,768
206
used in determining retirement eligibility or calculating 9,770
benefits under section 3309.35 of the Revised Code. 9,771
(E) The retirement board shall establish a policy to 9,773
determine eligibility to purchase credit under this section, and 9,774
its decision shall be final. 9,775
Sec. 3309.341. (A) As used in this section: 9,784
(1) "SERS retirant" means any person who is receiving a 9,786
retirement allowance from the school employees retirement system 9,787
under section 3309.36, 3309.38, or 3309.381 of the Revised Code. 9,788
(2) "Other system retirant" means a member or former 9,790
member of the public employees retirement system, Ohio police and 9,792
fire pension fund, state teachers retirement system, state 9,793
highway patrol retirement system, or Cincinnati retirement system 9,794
who is receiving age and service or commuted age and service 9,795
retirement, or a disability benefit from a system of which the 9,796
retirant is a member or former member.
(B)(1) An SERS retirant or other system retirant may be 9,798
employed by a public employer. If so employed, the SERS retirant 9,799
or other system retirant shall contribute to the school employees 9,800
retirement system in accordance with section 3309.47 of the 9,801
Revised Code, and the employer shall make contributions in 9,802
accordance with section 3309.49 of the Revised Code. 9,803
(2) An employer that employs an SERS retirant or other 9,805
system retirant shall notify the retirement board of the 9,806
employment not later than the end of the month in which the 9,807
employment commences. On receipt of notice from an employer that 9,808
a person who is an other system retirant has been employed, the 9,809
school employees retirement system shall notify the state 9,810
retirement system of which the other system retirant was a member 9,811
of such employment. 9,812
(C) An SERS retirant or other system retirant who has 9,814
received a retirement allowance or disability benefit for less 9,816
than two months when employment subject to this section commences 9,817
shall forfeit the retirement allowance or disability benefit for 9,819
207
the period that begins on the date the employment commences and 9,820
ends on the date that is two months after the date on which the 9,821
retirement allowance or disability benefit commenced. Service 9,822
and contributions for that period shall not be included in the 9,823
calculation of any benefits payable to the SERS retirant or other 9,824
system retirant, and those contributions shall be refunded on 9,825
death or termination of the employment. 9,826
(D) On receipt of notice from the Ohio police and fire 9,829
pension fund, public employees retirement system, or state 9,831
teachers retirement system of the re-employment of an SERS 9,832
retirant, the school employees retirement system shall not pay,
or if paid shall recover, the amount to be forfeited by the SERS 9,833
retirant in accordance with section 145.38, 742.26, or 3307.381 9,834
3307.35 of the Revised Code. 9,835
(E)(1) On termination of employment under this section, an 9,837
SERS retirant or other system retirant may file an application 9,838
with the school employees retirement system for a benefit under 9,839
this division, which shall consist of a single life annuity 9,840
having a reserve equal to the amount of the retirant's 9,841
accumulated contributions for the period of employment and an 9,843
equal amount of the employer's contributions, plus interest 9,844
credited to the date of retirement at the rate provided in 9,845
division (I)(2) of section 3309.01 of the Revised Code. The SERS 9,846
retirant or other system retirant shall elect either to receive 9,847
the benefit as a monthly annuity for life or a lump-sum payment 9,848
discounted to the present value using the current actuarial 9,849
assumption rate of interest, except that if the monthly annuity 9,850
would be less than twenty-five dollars per month, the retirant 9,852
shall receive a lump-sum payment.
(2) A benefit payable under this division shall commence 9,854
on the first day of the month after the latest of the following: 9,855
(a) The last day for which compensation for employment 9,857
subject to this section was paid; 9,858
(b) Attainment by the SERS retirant or other system 9,860
208
retirant of age sixty-five; 9,861
(c) If the SERS retirant or other system retirant was 9,863
previously employed under this section and is receiving or 9,864
previously received a benefit under this division, completion of 9,865
a period of twelve months since the effective date of that 9,866
benefit. 9,867
(3) An SERS retirant or other system retirant subject to 9,869
this section is not a member of the school employees retirement 9,870
system; does not have any of the rights, privileges, or 9,871
obligations of membership, except as specified in this section; 9,872
and is not eligible to receive health, medical, hospital, or 9,873
surgical benefits under section 3309.69 of the Revised Code for 9,874
employment subject to this section. No amount received under 9,875
this division shall be included in determining an additional 9,876
benefit under section 3309.374 of the Revised Code or any other 9,877
post-retirement benefits. 9,878
(F)(1) If an SERS retirant or other system retirant dies 9,880
while employed in employment subject to this section, a lump-sum 9,881
payment calculated in accordance with division (E)(1) of this 9,882
section shall be paid to the beneficiary under division (H) of 9,883
this section. 9,884
(2) If at the time of death an SERS retirant or other 9,886
system retirant receiving a monthly annuity has received less 9,887
than the retirant would have received as a lump-sum payment, the 9,890
difference between the amount received and the amount that would 9,892
have been received as a lump-sum payment shall be paid to the 9,893
retirant's beneficiary under division (H) of this section. 9,895
(G) If the disability benefit of an other system retirant 9,897
employed under this section is terminated, the retirant shall 9,898
become a member of the school employees retirement system, 9,900
effective on the first day of the month next following the 9,901
termination, with all the rights, privileges, and obligations of 9,902
membership. If the retirant, after the termination of the 9,904
disability benefit, earns two years of service credit under this 9,906
209
retirement system or under the public employees retirement 9,907
system, Ohio police and fire pension fund, state teachers 9,908
retirement system, or state highway patrol retirement system, the 9,910
retirant's prior contributions as an other system retirant under 9,912
this section shall be included in the retirant's total service 9,913
credit as a school employees retirement system member, and the 9,915
retirant shall forfeit all rights and benefits of this section. 9,917
Not more than one year of credit may be given for any period of 9,918
twelve months.
(H) An SERS retirant or other system retirant employed 9,920
under this section may designate one or more persons as 9,921
beneficiary to receive any benefits payable under this section 9,922
due to death. The designation shall be in writing duly executed 9,924
on a form provided by the school employees retirement board, 9,925
signed by the SERS retirant or other system retirant, and filed 9,926
with the board prior to death. The last designation of a 9,927
beneficiary revokes all previous designations. The SERS
retirant's or other system retirant's marriage, divorce, marriage 9,928
dissolution, legal separation, withdrawal of account, birth of 9,929
the retirant's child, or adoption of a child revokes all previous 9,931
designations. If there is no designated beneficiary, the 9,932
beneficiary is the beneficiary designated under division (D) of 9,933
section 3309.44 of the Revised Code. If any benefit payable 9,934
under this section due to the death of an SERS retirant or other 9,935
system retirant is not claimed by a beneficiary within five years 9,936
after the death, the amount payable shall be transferred to the 9,937
guarantee fund and thereafter paid to the beneficiary or the 9,938
estate of the SERS retirant or other system retirant on 9,939
application to the board. 9,940
(I) This section does not affect the receipt of benefits 9,942
by or eligibility for benefits of any person who on August 29, 9,943
1976, was receiving a disability benefit or service retirement 9,944
pension or allowance from a state or municipal retirement system 9,945
in Ohio and was a member of any other state or municipal 9,946
210
retirement system of this state. 9,947
(J) The school employees retirement board may adopt rules 9,949
to carry out this section. 9,950
Sec. 3309.35. (A) As used in this section: 9,959
(1) "State retirement system" means the public employees 9,961
retirement system, state teachers retirement system, or school 9,962
employees retirement system. 9,963
(2) "Total service credit" means all service credit earned 9,965
in all state retirement systems, except credit for service 9,966
subject to section 3309.341 of the Revised Code. Total service 9,967
credit shall not exceed one year of credit for any twelve-month 9,968
period. 9,969
(3) In addition to the meaning given in division (O) of 9,971
section 3309.01 of the Revised Code, "disability benefit" means 9,972
"disability benefit" as defined in sections 145.01 and 3307.01 of 9,973
the Revised Code. 9,974
(B) To coordinate and integrate membership in the state 9,976
retirement systems, at the option of a member, total 9,978
contributions and service credit in all state retirement systems, 9,979
including amounts paid to restore service credit under sections 9,980
145.311, 3307.282 3307.711, and 3309.261 of the Revised Code, 9,982
shall be used in determining the eligibility and total retirement 9,983
or disability benefit payable. When total contributions and 9,984
service credit are so combined, the following provisions apply: 9,985
(1) Service and commuted service retirement or a 9,987
disability benefit is effective no sooner than the first day of 9,988
the month next following the last day of employment for which 9,989
compensation was paid. If the application is filed after that 9,990
date, the board may retire the member on the first day of the 9,991
month next following the last day of employment for which 9,992
compensation was paid. 9,993
(2) In determining eligibility for a disability benefit, 9,995
the medical examiner's report to the retirement board of any 9,996
state retirement system, showing that the member's disability 9,997
211
incapacitates the member for the performance of duty, may be 9,998
accepted by the state retirement boards as sufficient for 10,000
granting a disability benefit. 10,001
(3) The state retirement system in which the member had 10,003
the greatest service credit, without adjustment, shall determine 10,004
and pay the total retirement or disability benefit. Where the 10,005
member's credit is equal in two or more state retirement systems, 10,007
the system having the largest total contributions of the member 10,008
shall determine and pay the total benefit. 10,009
(4) In determining the total credit to be used in 10,011
calculating a retirement allowance or disability benefit, credit 10,012
shall not be reduced below that certified by the system or 10,013
systems transferring credit, except that such total combined 10,014
service credit shall not exceed one year of credit for any one 10,015
"year" as defined in the law of the system making the 10,016
calculation. 10,017
(5) The state retirement system determining and paying a 10,019
retirement or disability benefit shall receive from the other 10,020
system or systems the member's refundable account at retirement 10,021
or the effective date of a disability benefit plus an equal 10,022
amount from the employers' trust fund. 10,023
(a) The annuity rates and mortality tables of the state 10,025
retirement system making the calculation and paying the benefit 10,026
shall be exclusively applicable. 10,027
(b) Deposits made for the purchase of an additional 10,029
annuity, and including guaranteed interest, upon the request of 10,030
the member, shall be transferred to the state retirement system 10,031
paying the retirement or disability benefit. The return upon 10,032
such deposits shall be that offered by the state retirement 10,033
system making the calculation and paying the retirement or 10,034
disability benefit. 10,035
(C) A former member receiving a retirement or disability 10,037
benefit under this section, who accepts employment amenable to 10,038
coverage in any state retirement system that participated in the 10,039
212
member's combined benefit, shall be subject to the applicable 10,041
provisions of law governing such re-employment. If the former 10,042
member is subject to section 3307.381 3307.35 of the Revised Code 10,043
and exceeds the limits on re-employment established by that 10,045
section, the state retirement system paying a combined benefit 10,046
shall terminate the entire pension portion of the benefit for the 10,047
period of re-employment that exceeds the limit in that section. 10,048
If a former member should be paid any amount in a retirement 10,049
allowance, to which the former member is not entitled under the 10,051
applicable provisions of law governing such re-employment, such 10,052
amount shall be recovered by the state retirement system paying 10,053
such allowance by utilizing any recovery procedure available 10,054
under the code provisions of the state retirement system covering 10,055
such re-employment. 10,056
(D) An SERS retirant or other system retirant, as defined 10,058
in section 3309.341 of the Revised Code, is not eligible to 10,059
receive any benefit under this section for service subject to 10,060
section 3309.341 of the Revised Code. 10,061
Sec. 3309.3712. THE SCHOOL EMPLOYEES RETIREMENT BOARD MAY 10,063
ESTABLISH AND MAINTAIN A QUALIFIED GOVERNMENTAL EXCESS BENEFIT 10,064
ARRANGEMENT THAT MEETS THE REQUIREMENTS OF DIVISION (m) OF 10,065
SECTION 415 OF THE "INTERNAL REVENUE CODE OF 1986," 100 STAT. 10,069
2085, 26 U.S.C.A. 415, AS AMENDED, AND ANY REGULATIONS ADOPTED 10,071
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 10,072
THAT PART OF A BENEFIT OTHERWISE PAYABLE UNDER THIS CHAPTER THAT 10,073
EXCEEDS THE LIMITS ESTABLISHED BY SECTION 415 OF THE "INTERNAL 10,074
REVENUE CODE OF 1986," AS AMENDED. 10,075
MEMBERS PARTICIPATING IN AN ARRANGEMENT ESTABLISHED UNDER 10,077
THIS SECTION SHALL NOT BE PERMITTED TO ELECT TO DEFER 10,078
COMPENSATION TO THE ARRANGEMENT. CONTRIBUTIONS TO AND BENEFITS 10,079
PAID UNDER AN ARRANGEMENT SHALL NOT BE PAYABLE FROM A TRUST THAT 10,080
IS PART OF THE SYSTEM UNLESS THE TRUST IS MAINTAINED SOLELY FOR 10,081
213
THE PURPOSE OF PROVIDING SUCH BENEFITS. 10,082
THE BOARD SHALL ADOPT RULES TO ADMINISTER AN ARRANGEMENT 10,084
ESTABLISHED UNDER THIS SECTION. 10,085
Sec. 3309.39. (A) The school employees retirement system 10,094
shall provide disability coverage to each member who has at least 10,095
five years of total service credit. 10,096
Not later than October 16, 1992, the school employees 10,098
retirement board shall give each person who is a member on July 10,099
29, 1992, the opportunity to elect disability coverage either 10,102
under section 3309.40 of the Revised Code or under section 10,103
3309.401 of the Revised Code. The board shall mail notice of the 10,104
election, accompanied by an explanation of the coverage under 10,105
each of the Revised Code sections and a form on which the 10,106
election is to be made, to each member at the member's last known 10,108
address. The board shall also provide the explanation and form 10,109
to any member at the member's request.
Regardless of whether the member actually receives notice 10,111
of the right to make an election, a member who fails to file a 10,113
valid election under this section shall be considered to have
elected disability coverage under section 3309.40 of the Revised 10,114
Code. To be valid, an election must be made on the form provided 10,115
by the retirement board, signed by the member, and filed with the 10,116
board not later than one hundred eighty days after the date the 10,117
notice was mailed, or, in the case of a form provided at the 10,118
request of a member, a date specified by rule of the retirement 10,119
board. Once made, an election is irrevocable, but if the member 10,120
ceases to be a member of the retirement system, the election is 10,121
void. If a person who makes an election under this section also 10,122
makes an election under section 145.35 or 3307.42 3307.62 of the 10,124
Revised Code, the election made for the system that pays a 10,125
disability benefit to that person shall govern the benefit. 10,126
Disability coverage shall be provided under section 10,128
3309.401 of the Revised Code for persons who become members after 10,129
July 29, 1992, and for members who elect under this division to 10,132
214
be covered under section 3309.401 of the Revised Code. 10,133
The retirement board may adopt rules governing elections 10,135
made under this division. 10,136
(B) Application for a disability benefit may be made by a 10,138
member, by a person acting in the member's behalf, or by the 10,139
member's employer, provided the member has at least five years of 10,140
total service credit and has disability coverage under section 10,141
3309.40 or 3309.401 of the Revised Code. The application for a 10,142
disability benefit shall be made on a form provided by the 10,143
retirement board. The benefit payable to any member who is 10,144
approved for a disability benefit shall become effective on the 10,145
first day of the month next following the later of the following: 10,146
(1) The last day for which compensation was paid; 10,148
(2) The date on which the member was first incapacitated 10,150
by the disabling condition. 10,151
(C) Medical examination of a member who has applied for a 10,153
disability benefit shall be conducted by a competent 10,154
disinterested physician or physicians selected by the retirement 10,155
board to determine whether the member is mentally or physically 10,156
incapacitated for the performance of the member's last assigned 10,157
primary duty as an employee by a disabling condition either 10,158
permanent or presumed to be permanent for twelve continuous 10,159
months following the filing of an application. Such disability 10,161
must have occurred since last becoming a member or have increased 10,162
since last becoming a member to such extent as to make the 10,163
disability permanent or presumed to be permanent for twelve 10,164
continuous months following the filing of an application. 10,165
(D) Application for a disability benefit must be made 10,167
within two years from the date the member's contributing service 10,168
terminated, unless the retirement board determines that the 10,169
member's medical records demonstrate conclusively that at the 10,170
time the two-year period expired, the member was physically or 10,171
mentally incapacitated for duty as an employee and unable to make 10,172
application. Application may not be made by any person receiving 10,173
215
a service retirement allowance or commuted service retirement 10,174
allowance under section 3309.36, 3309.38, or 3309.381 of the 10,175
Revised Code or any person who, pursuant to section 3309.42 of 10,176
the Revised Code, has been paid the accumulated contributions 10,177
standing to the credit of the person's individual account in the 10,179
employees' savings fund.
(E) If the physician or physicians determine that the 10,181
member qualifies for a disability benefit, the retirement board 10,183
concurs with the determination, and the member agrees to medical
treatment as specified in division (F) of this section, the 10,185
member shall receive a disability benefit under section 3309.40 10,186
or 3309.401 of the Revised Code. The action of the board shall 10,187
be final. At the time the board decides it concurs with the 10,188
determination of the physician or physicians, the board shall 10,189
determine the date on which the member was first incapacitated by 10,190
the disabling condition. 10,191
(F) The school employees retirement board shall adopt 10,193
rules requiring a disability benefit recipient, as a condition of 10,195
continuing to receive a disability benefit, to agree in writing 10,196
to obtain any medical treatment recommended by the board's 10,197
physician and submit medical reports regarding the treatment. If 10,199
the board determines that a disability benefit recipient is not
obtaining the medical treatment or the board does not receive a 10,200
required medical report, the disability benefit shall be 10,201
suspended until the treatment is obtained, the report is received 10,203
by the board, or the board's physician certifies that the 10,204
treatment is no longer helpful or advisable. Should the 10,206
recipient's failure to obtain treatment or submit a medical
report continue for one year, the recipient's right to the 10,208
disability benefit shall be terminated as of the effective date 10,209
of the original suspension.
(G) In the event an employer files an application for a 10,211
disability benefit as a result of a member having been separated 10,212
from service because the member is considered to be mentally or 10,214
216
physically incapacitated for the performance of the member's last
assigned primary duty as an employee, and the physician or 10,215
physicians selected by the board report to the board that the 10,216
member is physically and mentally capable of performing service 10,217
similar to that from which the member was separated, and the 10,218
board concurs in such report, then the board shall so certify to 10,219
the employer and the employer shall restore the member to the 10,220
member's previous position and salary or to a similar position 10,221
and salary.
Sec. 3309.45. Except as provided in division (C)(1) of 10,230
this section, in lieu of accepting the payment of the accumulated 10,232
account of a member who dies before service retirement, the 10,233
beneficiary, as determined in section 3309.44 of the Revised 10,234
Code, may elect to forfeit the accumulated account and to 10,235
substitute certain other benefits either under division (A) or 10,236
(B) of this section.
(A) If a deceased member was eligible for a service 10,238
retirement allowance as provided in section 3309.36, 3309.38, or 10,239
3309.381 of the Revised Code, a surviving spouse or other sole 10,240
dependent beneficiary may elect to receive a monthly benefit 10,242
computed as the joint-survivor allowance designated as "plan D" 10,243
in section 3309.46 of the Revised Code, which the member would 10,244
have received had the member retired on the last day of the month 10,245
of death and had the member at that time selected such 10,246
joint-survivor plan. Payment shall begin with the month 10,247
subsequent to the member's death. 10,248
(B) If the deceased member had completed at least one and 10,250
one-half years of credit for Ohio service, with at least 10,251
one-quarter year of Ohio contributing service credit within the 10,252
two and one-half years prior to the date of death, or was 10,253
receiving at the time of death a disability benefit as provided 10,254
in section 3309.40 or 3309.401 of the Revised Code, qualified 10,255
survivors may elect to receive monthly benefits, provided in 10,258
divisions (B)(1) and (5) of this section.
217
(1) Number of 10,260
Qualified 10,261
Or 10,262
survivors Annual Benefit as a Per Monthly Benefit 10,264
affecting Cent of Decedent's shall not be 10,267
Final
the benefit Average Salary less than 10,270
1 25% $ 96 10,273
2 40 186 10,274
3 50 236 10,275
4 55 236 10,276
5 or more 60 236 10,277
(2) Benefits shall begin as qualified survivors meet 10,280
eligibility requirements as follows: 10,281
(a) A qualified spouse is the surviving spouse of the 10,283
deceased member who is age sixty-two, or age fifty if the 10,286
deceased member had ten or more years of Ohio service credit, or 10,287
regardless of age if caring for a surviving child, or regardless 10,289
of age if adjudged physically or mentally incompetent. 10,290
(b) A qualified child is any unmarried child of the 10,294
deceased member under age eighteen, or under age twenty-two if 10,295
the child is attending an institution of learning or training 10,296
pursuant to a program designed to complete in each school year 10,297
the equivalent of at least two-thirds of the full-time curriculum 10,298
requirements of such institution and as further determined by 10,299
board policy, or regardless of age if adjudged physically or 10,300
mentally incompetent. 10,301
(c) A qualified parent is a dependent parent aged 10,303
sixty-five or older. 10,304
(3) "Physically or mentally incompetent" as used in this 10,306
section may be determined by a court of jurisdiction, or by a 10,307
physician appointed by the retirement board. Incapability of 10,308
earning a living because of a physically or mentally disabling 10,309
condition shall meet the qualifications of this division. 10,310
218
(4) Benefits to a qualified survivor shall terminate upon 10,313
a first marriage, abandonment, adoption, or during active 10,315
military service. Benefits to a deceased member's surviving 10,317
spouse that were terminated under a former version of this 10,318
section that required termination due to remarriage and were not 10,319
resumed prior to the effective date of this amendment shall 10,320
resume on the first day of the month immediately following
receipt by the board of an application on a form provided by the 10,321
board.
Upon the death of any subsequent spouse who was a member of 10,324
the public employees retirement system, state teachers retirement 10,325
system, or school employees retirement system, the surviving 10,326
spouse of such member may elect to continue receiving benefits 10,327
under this division, or to receive survivor's benefits, based 10,328
upon the subsequent spouse's membership in one or more of the 10,329
systems, for which such surviving spouse is eligible under this 10,330
section or section 145.45 or 3307.49 3307.66 of the Revised Code. 10,332
If the surviving spouse elects to continue receiving benefits 10,333
under this division, such election shall not preclude the payment 10,334
of benefits under this division to any other qualified survivor. 10,335
Benefits shall begin or resume on the first day of the 10,337
month following the attainment of eligibility and shall terminate 10,338
on the first day of the month following loss of eligibility. 10,339
(5) Benefits to a qualified spouse shall be paid in the 10,341
amount determined for the first qualifying survivor in division 10,343
(B)(1) of this section, but shall not be less than one hundred 10,344
six dollars per month if the deceased member had ten or more 10,345
years of Ohio service credit. All other qualifying survivors 10,347
shall share equally in the benefit or remaining portion thereof. 10,348
(6) The beneficiary of a member who is also a member of 10,350
the public employees retirement system, or of the state teachers 10,351
retirement system, must forfeit the member's accumulated 10,352
contributions in those systems, if the beneficiary takes a 10,355
survivor benefit. Such benefit shall be exclusively governed by 10,356
219
section 3309.35 of the Revised Code. 10,357
(C)(1) Regardless of whether the member is survived by a 10,361
spouse or designated beneficiary, if the school employees
retirement system receives notice that a deceased member 10,362
described in division (A) or (B) of this section has one or more 10,364
qualified children, all persons who are qualified survivors under 10,365
Division (B) of this section shall receive monthly benefits as 10,368
provided in division (B) of this section. 10,369
If, after determining the monthly benefits to be paid under 10,371
division (B) of this section, the system receives notice that 10,372
there is a qualified survivor who was not considered when the 10,373
determination was made, the system shall, notwithstanding section 10,374
3309.661 of the Revised Code, recalculate the monthly benefits 10,375
with that qualified survivor included, even if the benefits to 10,376
qualified survivors already receiving benefits are reduced as a 10,377
result. The benefits shall be calculated as if the qualified 10,378
survivor who is the subject of the notice became eligible on the
date the notice was received and shall be paid to qualified 10,379
survivors effective on the first day of the first month following 10,380
the system's receipt of the notice. 10,381
If the retirement system did not receive notice that a 10,383
deceased member has one or more qualified children prior to 10,385
making payment under section 3309.44 of the Revised Code to a 10,388
beneficiary as determined by the retirement system, the payment 10,389
is a full discharge and release of the system from any future 10,390
claims under this section or section 3309.44 of the Revised Code. 10,391
(2) If benefits under division (C)(1) of this section to 10,394
all persons, or to all persons other than a surviving spouse or 10,396
other sole beneficiary, terminate, there are no children under
the age of twenty-two years, and the surviving spouse or 10,397
beneficiary qualifies for benefits under division (A) of this 10,399
section, the surviving spouse or beneficiary may elect to receive 10,400
benefits under division (A) of this section. Benefits shall be 10,401
effective on the first day of the month following receipt by the 10,403
220
board of an application for benefits under division (A) of this 10,404
section. 10,405
(D) If the survivor benefits due and paid under this 10,407
section are in a total amount less than the member's accumulated 10,408
account that was transferred from the employees' savings fund, 10,409
the state teachers retirement fund, and the public employees 10,410
retirement fund to the survivors' benefit fund, then the 10,411
difference between the total amount of the benefits paid shall be 10,412
paid to the beneficiary under section 3309.44 of the Revised 10,413
Code. 10,414
Sec. 3313.975. As used in this section and in sections 10,423
3313.975 to 3313.979 of the Revised Code, "the pilot project 10,424
school district" or "the district" means any school district 10,427
included in the pilot project scholarship program pursuant to 10,428
this section.
(A) The superintendent of public instruction shall 10,431
establish a pilot project scholarship program and shall include 10,432
in such program any school districts that are or have ever been 10,433
under federal court order requiring supervision and operational 10,435
management of the district by the state superintendent. The
program shall provide for a number of students residing in any 10,437
such district to receive scholarships to attend alternative 10,438
schools, and for an equal number of students to receive tutorial 10,439
assistance grants while attending public school in any such 10,440
district.
(B) The state superintendent shall establish an 10,442
application process and deadline for accepting applications from 10,443
students residing in the district to participate in the 10,444
scholarship program. In the initial year of the program students 10,445
may only use a scholarship to attend school in grades 10,446
kindergarten through third.
The state superintendent shall award as many scholarships 10,448
and tutorial assistance grants as can be funded given the amount 10,449
appropriated for the program. In no case, however, shall more 10,450
221
than fifty per cent of all scholarships awarded be used by 10,451
students who were enrolled in a nonpublic school during the 10,452
school year of application for a scholarship. 10,453
(C)(1) The pilot project program shall continue in effect 10,457
each year that the general assembly has appropriated sufficient 10,458
money to fund scholarships and tutorial assistance grants. In 10,459
each year the program continues, no new students may receive 10,460
scholarships unless they are enrolled in grade kindergarten, one, 10,461
two, or three. However, any student who has received a 10,463
scholarship the preceding year may continue to receive one until 10,464
the student has completed grade eight.
(2) If the general assembly discontinues the scholarship 10,466
program, all students who are attending an alternative school 10,467
under the pilot project shall be entitled to continued admittance 10,469
to that specific school through all grades up to the eighth grade 10,470
that are provided in such school, under the same conditions as 10,472
when they were participating in the pilot project. The state 10,473
superintendent shall continue to make scholarship payments in
accordance with division (A) or (B) of section 3313.979 of the 10,475
Revised Code for students who remain enrolled in an alternative 10,477
school under this provision in any year that funds have been 10,478
appropriated for this purpose.
If funds are not appropriated, the tuition charged to the 10,480
parents of a student who remains enrolled in an alternative 10,482
school under this provision shall not be increased beyond the 10,483
amount equal to the amount of the scholarship plus any additional 10,484
amount charged that student's parent in the most recent year of 10,485
attendance as a participant in the pilot project, except that 10,486
tuition for all the students enrolled in such school may be 10,487
increased by the same percentage. 10,488
(D) Notwithstanding sections 124.39, 3307.35 3307.54, and 10,491
3319.17 of the Revised Code, if the pilot project school district 10,492
experiences a decrease in enrollment due to participation in a 10,493
state-sponsored scholarship program pursuant to sections 3313.974 10,494
222
to 3313.979 of the Revised Code, the district board of education 10,495
may enter into an agreement with any teacher it employs to 10,496
provide to that teacher severance pay or early retirement 10,497
incentives, or both, if the teacher agrees to terminate the 10,498
employment contract with the district board, provided any 10,499
collective bargaining agreement in force pursuant to Chapter 10,500
4117. of the Revised Code does not prohibit such an agreement for 10,502
termination of a teacher's employment contract.
Sec. 3317.011. On or before the third Wednesday of each 10,511
month, the department of education shall certify to the director 10,512
of budget and management for payment, for each county: 10,513
(A)(1) That portion of the allocation of money under 10,515
sections 3317.022 to 3317.0211, 3317.11, 3317.16, 3317.17, and 10,516
3317.19 of the Revised Code that is required to be paid in that 10,517
month to each school district located wholly within the county 10,518
subsequent to the deductions described in division (A)(2) of this 10,519
section; and 10,520
(2) The amounts deducted from such allocation under 10,522
sections 3307.56 3307.31 and 3309.51 of the Revised Code for 10,523
payment directly to the school employees and state teachers 10,525
retirement systems under such sections. 10,526
(B) If the district is located in more than one county, an 10,528
apportionment of the amounts that would otherwise be certified 10,529
under division (A) of this section. The amounts apportioned to 10,530
the county shall equal the amounts certified under division (A) 10,531
of this section times the percentage of the district's resident 10,532
pupils who reside both in the district and in the county. 10,533
Sec. 3317.13. (A) As used in this section and section 10,542
3317.14 of the Revised Code: 10,543
(1) "Years of service" includes the following: 10,545
(a) All years of teaching service in the same school 10,547
district or educational service center, regardless of training 10,548
level, with each year consisting of at least one hundred twenty 10,550
days under a teacher's contract;
223
(b) All years of teaching service in a chartered, 10,552
nonpublic school located in Ohio as a teacher licensed pursuant 10,553
to section 3319.22 of the Revised Code or in another public 10,554
school, regardless of training level, with each year consisting 10,555
of at least one hundred twenty days under a teacher's contract; 10,556
(c) All years of teaching service in a chartered school or 10,558
institution or a school or institution that subsequently became 10,559
chartered or a chartered special education program or a special 10,560
education program that subsequently became chartered operated by 10,561
the state or by a subdivision or other local governmental unit of 10,562
this state as a teacher licensed pursuant to section 3319.22 of 10,563
the Revised Code, regardless of training level, with each year 10,564
consisting of at least one hundred twenty days; and 10,565
(d) All years of active military service in the armed 10,567
forces of the United States, as defined in section 3307.02 10,568
3307.75 of the Revised Code, to a maximum of five years. For 10,570
purposes of this calculation, a partial year of active military 10,571
service of eight continuous months or more in the armed forces 10,572
shall be counted as a full year. 10,573
(2) "Teacher" means all teachers employed by the board of 10,575
education of any school district, including any cooperative 10,577
education or joint vocational school district and all teachers 10,578
employed by any educational service center governing board.
(B) No teacher shall be paid a salary less than that 10,580
provided in the schedule set forth in division (C) of this 10,581
section. In calculating the minimum salary any teacher shall be 10,582
paid pursuant to this section, years of service shall include the 10,583
sum of all years of the teacher's teaching service included in 10,584
divisions (A)(1)(a), (b), (c), and (d) of this section; except 10,585
that any school district or educational service center employing 10,586
a teacher new to the district or educational service center shall 10,587
grant such teacher a total of not more than ten years of service 10,588
pursuant to divisions (A)(1)(b), (c), and (d) of this section. 10,589
Upon written complaint to the superintendent of public 10,591
224
instruction that the board of education of a district or the 10,592
governing board of an educational service center governing board 10,593
has failed or refused to annually adopt a salary schedule or to 10,594
pay salaries in accordance with the salary schedule set forth in 10,595
division (C) of this section, the superintendent of public 10,596
instruction shall cause to be made an immediate investigation of 10,597
such complaint. If the superintendent finds that the conditions 10,598
complained of exist, the superintendent shall order the board to 10,599
correct such conditions within ten days from the date of the 10,601
finding. No moneys shall be distributed to the district or 10,602
educational service center under this chapter until the 10,603
superintendent has satisfactory evidence of the board of 10,604
education's full compliance with such order. 10,605
Each teacher shall be fully credited with placement in the 10,607
appropriate academic training level column in the district's or 10,609
educational service center's salary schedule with years of
service properly credited pursuant to this section or section 10,611
3317.14 of the Revised Code. No rule shall be adopted or 10,612
exercised by any board of education or educational service center 10,613
governing board which restricts the placement or the crediting of 10,614
annual salary increments for any teacher according to the
appropriate academic training level column. 10,615
(C) Minimum salaries exclusive of retirement and sick 10,617
leave for teachers shall be as follows: 10,618
Teachers Teachers with Teachers 10,621
Years with Less Teachers with Five Years of with 10,623
of than a Bachelor's Training, but a Master's 10,625
Service Bachelor's Degree no Master's Degree or 10,627
Degree Degree Higher 10,628
Per Dollar Per Dollar Per Dollar Per Dollar 10,632
Cent* Amount Cent* Amount Cent* Amount Cent* Amount 10,634
0 86.5 $14,705 100.0 $17,000 103.8 $17,646 109.5 $18,615 10,636
1 90.0 15,300 103.8 17,646 108.1 18,377 114.3 19,431 10,638
2 93.5 15,895 107.6 18,292 112.4 19,108 119.1 20,247 10,640
225
3 97.0 16,490 111.4 18,938 116.7 19,839 123.9 21,063 10,642
4 100.5 17,085 115.2 19,584 121.0 20,570 128.7 21,879 10,644
5 104.0 17,680 119.0 20,230 125.3 21,301 133.5 22,695 10,646
6 104.0 17,680 122.8 20,876 129.6 22,032 138.3 23,511 10,648
7 104.0 17,680 126.6 21,522 133.9 22,763 143.1 24,327 10,650
8 104.0 17,680 130.4 22,168 138.2 23,494 147.9 25,143 10,652
9 104.0 17,680 134.2 22,814 142.5 24,225 152.7 25,959 10,654
10 104.0 17,680 138.0 23,460 146.8 24,956 157.5 26,775 10,656
11 104.0 17,680 141.8 24,106 151.1 25,687 162.3 27,591 10,658
* Percentages represent the percentage which each salary is 10,661
of the base amount. 10,662
For purposes of determining the minimum salary at any level 10,664
of training and service, the base of one hundred per cent shall 10,665
be the base amount. The percentages used in this section show 10,666
the relationships between the minimum salaries required by this 10,667
section and the base amount and shall not be construed as 10,668
requiring any school district or educational service center to 10,669
adopt a schedule containing salaries in excess of the amounts set 10,671
forth in this section for corresponding levels of training and 10,672
experience.
As used in this division: 10,674
(1) "Base amount" means seventeen thousand dollars. 10,676
(2) "Five years of training" means at least one hundred 10,678
fifty semester hours, or the equivalent, and a bachelor's degree 10,679
from a recognized college or university. 10,680
(D) For purposes of this section, all credited training 10,682
shall be from a recognized college or university. 10,683
Sec. 3319.08. The board of education of each city, 10,692
exempted village, local, and joint vocational school district and 10,694
the governing board of each educational service center shall
enter into written contracts for the employment and reemployment 10,696
of all teachers. The board of each such school district or 10,697
service center that authorizes compensation in addition to the 10,698
base salary stated in the teachers' salary schedule for the
226
performance of duties by a teacher that are in addition to the 10,699
teacher's regular teaching duties, shall enter into a 10,700
supplemental written contract with each teacher who is to perform 10,701
additional duties. Such supplemental written contracts shall be 10,702
limited contracts. Such written contracts and supplemental 10,703
written contracts shall set forth the teacher's duties and shall 10,704
specify the salaries and compensation to be paid for regular 10,705
teaching duties and additional teaching duties, respectively, 10,706
either or both of which may be increased but not diminished 10,707
during the term for which the contract is made, except as 10,708
provided in section 3319.12 of the Revised Code. 10,709
If a board adopts a motion or resolution to employ a 10,712
teacher under a limited or continuing contract and the teacher 10,713
accepts such employment, the failure of such parties to execute a 10,714
written contract shall not void such employment contract. 10,715
Teachers must be paid for all time lost when the schools in 10,717
which they are employed are closed due to an epidemic or other 10,718
public calamity, and for time lost due to illness or otherwise 10,719
for not less than five days annually as authorized by regulations 10,720
which each board shall adopt. 10,721
Contracts for the employment of teachers shall be of two 10,723
types, limited contracts and continuing contracts. 10,724
(A) A limited contract is: 10,726
(1) For a superintendent, a contract for such term as 10,728
authorized by section 3319.01 of the Revised Code; 10,729
(2) For an assistant superintendent, principal, assistant 10,731
principal, or other administrator, a contract for such term as 10,732
authorized by section 3319.02 of the Revised Code; 10,733
(3) For all other teachers, a contract for a term not to 10,735
exceed five years. 10,736
(B) A continuing contract is a contract that remains in 10,738
effect until the teacher resigns, elects to retire, or is retired 10,739
pursuant to FORMER section 3307.37 of the Revised Code, or until 10,740
it is terminated or suspended and shall be granted only to the 10,741
227
following: 10,742
(1) Any teacher holding a professional, permanent, or life 10,744
teacher's certificate; 10,745
(2) Any teacher holding a professional educator license 10,747
who has completed the applicable one of the following: 10,748
(a) If the teacher did not hold a masters degree at the 10,750
time of initially receiving a teacher's certificate under former 10,751
law or an educator license, thirty semester hours of coursework 10,752
in the area of licensure or in an area related to the teaching 10,753
field since the initial issuance of such certificate or license, 10,754
as specified in rules which the state board of education shall 10,755
adopt;
(b) If the teacher held a masters degree at the time of 10,757
initially receiving a teacher's certificate under former law or 10,758
an educator license, six semester hours of graduate coursework in 10,759
the area of licensure or in an area related to the teaching field 10,760
since the initial issuance of such certificate or license, as 10,761
specified in rules which the state board of education shall
adopt. 10,762
This section applies only to contracts entered into after 10,764
August 18, 1969.
Sec. 5101.181. (A) As used in this section and section 10,773
5101.182 of the Revised Code, "public assistance" includes, in 10,774
addition to Ohio works first; prevention, retention, and 10,775
contingency; medicaid; and disability assistance, general 10,777
assistance provided prior to July 17, 1995, under former Chapter 10,779
5113. of the Revised Code. 10,780
(B) As part of the procedure for the determination of 10,783
overpayment to a recipient of public assistance under Chapter 10,784
5107., 5108., 5111., or 5115. of the Revised Code, the director 10,785
of human services shall furnish quarterly the name and social 10,786
security number of each individual who receives public assistance 10,787
to the director of administrative services, the administrator of 10,788
the bureau of workers' compensation, and each of the state's 10,789
228
retirement boards. Within fourteen days after receiving the name 10,790
and social security number of an individual who receives public 10,791
assistance, the director of administrative services, 10,792
administrator, or board shall inform the auditor of state as to 10,793
whether such individual is receiving wages or benefits, the 10,794
amount of any wages or benefits being received, the social 10,795
security number, and the address of the individual. The director 10,796
of administrative services, administrator, boards, and any agent 10,797
or employee of those officials and boards shall comply with the 10,798
rules of the department of human services restricting the 10,799
disclosure of information regarding recipients of public
assistance. Any person who violates this provision shall 10,800
thereafter be disqualified from acting as an agent or employee or 10,801
in any other capacity under appointment or employment of any 10,802
state board, commission, or agency. 10,803
(C) The auditor of state may enter into a reciprocal 10,805
agreement with the director of human services or comparable 10,806
officer of any other state for the exchange of names, current or 10,807
most recent addresses, or social security numbers of persons 10,808
receiving public assistance under Title IV-A or under Title XIX 10,811
of the "Social Security Act," 49 Stat. 620 (1935), 42 U.S.C. 301, 10,812
as amended.
(D)(1) The auditor of state shall retain, for not less 10,814
than two years, at least one copy of all information received 10,816
under this section and sections 145.27, 742.41, 3307.21 3307.20, 10,817
3309.22, 4123.27, 5101.182, and 5505.04 of the Revised Code. The 10,819
auditor shall review the information to determine whether
overpayments were made to recipients of public assistance under 10,821
Chapters 5107., 5108., 5111., and 5115. of the Revised Code. The 10,822
auditor of state shall initiate action leading to prosecution, 10,823
where warranted, of recipients who received overpayments by 10,824
forwarding the name of each recipient who received overpayment, 10,825
together with other pertinent information, to the director of 10,826
human services and the attorney general, to the district director 10,827
229
of human services of the district through which public assistance 10,828
was received, and to the county director of human services and 10,829
county prosecutor of the county through which public assistance 10,830
was received.
(2) The auditor of state and the attorney general or their 10,832
designees may examine any records, whether in computer or printed 10,833
format, in the possession of the director of human services or 10,834
any county director of human services. They shall provide 10,835
safeguards which restrict access to such records to purposes 10,836
directly connected with an audit or investigation, prosecution, 10,837
or criminal or civil proceeding conducted in connection with the 10,838
administration of the programs and shall comply with the rules of 10,839
the department of human services restricting the disclosure of 10,840
information regarding recipients of public assistance. Any 10,841
person who violates this provision shall thereafter be 10,842
disqualified from acting as an agent or employee or in any other 10,843
capacity under appointment or employment of any state board, 10,844
commission, or agency. 10,845
(3) Costs incurred by the auditor of state in carrying out 10,847
the auditor of state's duties under this division shall be borne 10,849
by the auditor of state. 10,850
THIS IS AN INTERIM SECTION EFFECTIVE UNTIL JULY 1, 2000. 10,852
Sec. 5505.161. On receipt of notice from the public 10,861
employees retirement system, Ohio police and fire pension fund, 10,862
state teachers retirement system, or school employees retirement 10,863
system of the re-employment of a retirant, the state highway 10,864
patrol retirement system shall not pay, or if paid shall recover, 10,865
any amount to be forfeited by the retirant in accordance with 10,866
section 145.38, 742.26, 3307.381 3307.35, or 3309.341 of the 10,867
Revised Code.
Sec. 5505.177. THE STATE HIGHWAY PATROL RETIREMENT BOARD 10,869
MAY ESTABLISH AND MAINTAIN A QUALIFIED GOVERNMENTAL EXCESS 10,870
BENEFIT ARRANGEMENT THAT MEETS THE REQUIREMENTS OF DIVISION (m) 10,871
OF SECTION 415 OF THE "INTERNAL REVENUE CODE OF 1986," 100 STAT. 10,875
230
2085, 26 U.S.C.A. 415, AS AMENDED, AND ANY REGULATIONS ADOPTED 10,877
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 10,878
THAT PART OF A BENEFIT OTHERWISE PAYABLE UNDER THIS CHAPTER THAT 10,879
EXCEEDS THE LIMITS ESTABLISHED BY SECTION 415 OF THE "INTERNAL 10,880
REVENUE CODE OF 1986," AS AMENDED. 10,881
MEMBERS PARTICIPATING IN AN ARRANGEMENT ESTABLISHED UNDER 10,883
THIS SECTION SHALL NOT BE PERMITTED TO ELECT TO DEFER 10,884
COMPENSATION TO THE ARRANGEMENT. CONTRIBUTIONS TO AND BENEFITS 10,885
PAID UNDER AN ARRANGEMENT SHALL NOT BE PAYABLE FROM A TRUST THAT 10,886
IS PART OF THE SYSTEM UNLESS THE TRUST IS MAINTAINED SOLELY FOR 10,887
THE PURPOSE OF PROVIDING SUCH BENEFITS. 10,888
THE BOARD SHALL ADOPT RULES TO ADMINISTER AN ARRANGEMENT 10,890
ESTABLISHED UNDER THIS SECTION. 10,891
Sec. 5505.202. (A) As used in this section: 10,900
(1) "Full-time service" means full-time service as defined 10,902
by rule which shall be adopted by the state highway patrol 10,903
retirement board. 10,904
(2) "Qualified contributions" means contributions to the 10,906
public employees retirement system, state teachers retirement 10,907
system, or school employees retirement system attributable to 10,908
full-time service or purchase of credit for service in the armed 10,909
forces of the United States. 10,910
(B)(1) For purposes of computing the pension payable under 10,913
section 5505.17 or 5505.18 of the Revised Code, a member of the 10,914
state highway patrol retirement system who is a former member of 10,915
the public employees retirement system, school employees 10,916
retirement system, or state teachers retirement system and has 10,918
received a return of contributions from the former retirement 10,920
system shall be given full credit for service credit earned for 10,921
full-time service as a member of the former retirement system or 10,922
purchased for service in the armed forces of the United States 10,925
if, for each year of service credit, the state highway patrol 10,926
231
retirement system receives the sum of the following: 10,927
(a) An amount, which shall be paid by the member to the 10,931
member's credit in the employees savings fund, equal to the 10,933
amount received by the member from the former retirement system 10,935
for that year that is attributable to contributions made for 10,937
full-time service and payments for credit purchased for service 10,938
in the armed forces of the United States, plus interest on that 10,940
amount from the date payment was made to the member by the former 10,942
retirement system to the date the member makes the payment to the 10,944
state highway patrol retirement system;
(b) Interest, which shall be transferred by the former 10,947
retirement system, on the amount received by the member that is 10,948
attributable to the year of service from the last day of the year 10,949
for which the service credit was earned or in which the military
service credit was purchased or obtained to the date the amount 10,950
was paid to the member; 10,951
(c) An amount, which shall be transferred by the former 10,953
retirement system, equal to the lesser of the employer's 10,954
qualified contributions to the former retirement system for the 10,955
year of service or the amount that would have been contributed by 10,957
the employer for the year of service had the member been a member 10,958
of the state highway patrol retirement system, with interest on 10,959
that amount from the last day of the year for which the service 10,961
credit was earned or in which military service credit was 10,962
purchased or obtained to the date the transfer is made. 10,963
On receipt of payment from the member, the state highway 10,966
patrol retirement system shall notify the former retirement 10,967
system, which, on receipt of the notice, shall make the transfer 10,968
required by this division. Interest shall be determined in 10,969
accordance with division (E) of this section. 10,970
(2) For purposes of computing the pension payable under 10,972
section 5505.17 or 5505.18 of the Revised Code, a member of the 10,975
state highway patrol retirement system who has contributions on 10,977
deposit with the public employees retirement system, school 10,978
232
employees retirement system, or state teachers retirement system 10,979
shall be given full credit for service credit earned for 10,980
full-time service as a member of that retirement system or 10,981
purchased for service in the armed forces of the United States 10,984
if, for each year of service, the public employees retirement 10,986
system, school employees retirement system, or state teachers 10,987
retirement system transfers to the state highway patrol 10,988
retirement system the sum of the following: 10,989
(a) An amount equal to the member's qualified 10,992
contributions;
(b) An amount equal to the lesser of the employer's 10,994
qualified contributions to the public employees retirement 10,995
system, school employees retirement system, or state teachers 10,996
retirement system or the amount that would have been contributed 10,998
by the employer for the full-time service had the member been a 10,999
member of the state highway patrol retirement system; 11,000
(c) Interest, determined in accordance with division (E) 11,003
of this section, on the amounts specified in divisions (B)(2)(a) 11,004
and (b) of this section from the last day of the year for which 11,007
the service credit was earned or in which military service credit 11,008
was purchased or obtained to the date the transfer is made. 11,009
On receipt of a request from the member, the appropriate 11,012
retirement system shall make the transfer.
(3) For purposes of computing the pension payable under 11,014
section 5505.17 or 5505.18 of the revised Code, a member of the 11,017
state highway patrol retirement system who has contributions on 11,018
deposit with the Cincinnati retirement system shall be given full 11,020
credit for service credit earned for full-time service as a 11,021
member of that retirement system or purchased from the retirement 11,022
system for service in the armed forces of the United States if, 11,024
for each year of service credit, the state highway patrol 11,025
retirement system receives the sum of the following: 11,026
(a) An amount, which shall be paid by the member to the 11,029
member's credit in the employees savings fund, equal to the 11,030
233
amount withdrawn from the Cincinnati retirement system that is 11,032
attributable to that year of service, with interest on that
amount determined in accordance with division (I) of this section 11,034
from the date of withdrawal to the date of payment; 11,035
(b) Interest, which shall be paid either by the member or 11,038
the Cincinnati retirement system, on the amount withdrawn from 11,039
the Cincinnati retirement system that is attributable to the year 11,041
of service from the last day of the year for which the service
credit was earned or in which the military service credit was 11,042
purchased or obtained to the date the amount was withdrawn; 11,044
(c) An amount, which shall be paid either by the member or 11,047
the Cincinnati retirement system, equal to the lesser of the 11,049
amount contributed by the employer to the Cincinnati retirement 11,050
system for the year of service or the amount that would have been 11,052
contributed by the employer for the year of service had the
member been a member of the state highway patrol retirement 11,053
system, with interest on that amount from the last day of the 11,056
year for which the service credit was earned or in which military 11,057
service was purchased or obtained to the date the payment is 11,058
made.
(C) If a member who is not a current contributor and has 11,060
not received a refund of accumulated contributions elects to 11,063
receive credit under section 145.295, 3307.412 3307.761, or 11,064
3309.351 of the Revised Code for service for which the member 11,066
contributed to the state highway patrol retirement system and 11,068
credit purchased for service in the armed forces of the United 11,069
States, the state highway patrol retirement system shall transfer 11,070
to the appropriate retirement system the amount specified in 11,072
division (A) of section 145.295, division (A) of section 3307.412 11,073
3307.761, or division (A) of section 3309.351 of the Revised 11,075
Code. 11,076
(D)(1) A member is ineligible to purchase or otherwise 11,078
receive credit under this section for service that is used in the 11,079
calculation of any retirement benefit currently being paid or 11,080
234
that is payable in the future to the member, or service rendered 11,081
concurrently with any other period for which service credit has 11,082
already been granted. 11,083
(2) Except as provided under division (D)(3) of this 11,085
section, no service credit purchased under this section or 11,086
received as a result of a transfer requested under this section 11,087
shall be used to determine any member's eligibility for 11,088
retirement under sections 5505.16 and 5505.17 of the Revised 11,089
Code.
(3) Service credit obtained under this section by a member 11,091
for credit purchased for service in the armed forces of the 11,092
United States or for service as a state highway patrol cadet 11,094
attending training school pursuant to section 5503.05 of the 11,095
Revised Code shall be used to determine the member's eligibility 11,097
for retirement under sections 5505.16 and 5505.17 of the Revised 11,098
Code.
(4) Subject to rules of the state highway patrol 11,100
retirement system, a member may choose to purchase only part of 11,101
the credit the member is eligible to purchase under division 11,102
(B)(1) or (3) of this section. 11,104
(E) At the request of the state highway patrol retirement 11,106
system, the public employees retirement system, school employees 11,107
retirement system, state teachers retirement system, or 11,108
Cincinnati retirement system shall certify to the state highway 11,110
patrol retirement system a copy of the records of service, 11,111
salary, and contributions of a member who seeks service credit 11,112
under this section.
Interest charged under this section shall be calculated 11,115
separately for each year of service credit at the lesser of the 11,116
actuarial assumption rate for that year of the state highway 11,117
patrol retirement system or of the retirement system in which the 11,118
credit was earned. The interest shall be compounded annually. 11,119
The state highway patrol retirement system board may adopt 11,121
rules establishing procedures for the purchase of service credit 11,123
235
or the transfer of contributions under this section. 11,124
Section 2. That existing sections 145.28, 145.293, 11,126
145.301, 145.311, 145.312, 145.35, 145.37, 145.38, 145.45, 11,127
171.04, 742.26, 742.379, 2329.66, 3305.01, 3305.06, 3307.01, 11,128
3307.013, 3307.02, 3307.021, 3307.022, 3307.05, 3307.07, 3307.08, 11,129
3307.09, 3307.10, 3307.11, 3307.111, 3307.14, 3307.15, 3307.19, 11,131
3307.20, 3307.201, 3307.21, 3307.22, 3307.26, 3307.27, 3307.28, 11,132
3307.281, 3307.282, 3307.283, 3307.29, 3307.30, 3307.31, 11,134
3307.311, 3307.32, 3307.33, 3307.35, 3307.36, 3307.371, 3307.38, 11,135
3307.381, 3307.382, 3307.383, 3307.384, 3307.39, 3307.40, 11,136
3307.401, 3307.402, 3307.403, 3307.404, 3307.405, 3307.406, 11,137
3307.407, 3307.408, 3307.409, 3307.4010, 3307.4011, 3307.4012, 11,138
3307.4013, 3307.41, 3307.411, 3307.412, 3307.42, 3307.421, 11,139
3307.43, 3307.431, 3307.44, 3307.46, 3307.47, 3307.48, 3307.49, 11,140
3307.50, 3307.51, 3307.511, 3307.512, 3307.515, 3307.53, 3307.56, 11,141
3307.58, 3307.59, 3307.60, 3307.61, 3307.62, 3307.63, 3307.64, 11,142
3307.65, 3307.651, 3307.66, 3307.68, 3307.69, 3307.70, 3307.71, 11,143
3307.711, 3307.712, 3307.72, 3307.73, 3307.74, 3307.741, 3307.75, 11,144
3307.751, 3307.78, 3307.80, 3309.021, 3309.261, 3309.262, 11,145
3309.301, 3309.31, 3309.341, 3309.35, 3309.39, 3309.45, 3313.975, 11,146
3317.011, 3317.13, 3319.08, 5101.181, 5505.161, and 5505.202 and 11,147
sections 3307.012, 3307.34, 3307.37, 3307.513, and 3307.514 of 11,148
the Revised Code are hereby repealed.
Section 3. That sections 3307.21 and 5101.181 of the 11,150
Revised Code, as amended by H.B. 471 of the 123rd General 11,151
Assembly, be amended and that section 3307.21 (3307.20) of the 11,152
Revised Code, as amended by H.B. 471 of the 123rd General 11,153
Assembly, be amended for the purpose of adopting a new section 11,154
number as indicated in parentheses, to read as follows: 11,155
Sec. 3307.21 3307.20. (A) The treasurer of state shall 11,164
furnish annually to the state teachers retirement board a sworn 11,166
statement of the amount of the funds in the treasurer's custody 11,167
belonging to the state teachers retirement system. 11,168
(B)(1) As used in this division, "personal SECTION: 11,170
236
(1) "PERSONAL history record" means information maintained 11,173
by the STATE TEACHERS RETIREMENT board on a member, former 11,174
member, contributor, former contributor, retirant, or beneficiary 11,175
that includes the address, telephone number, social security 11,176
number, record of contributions, correspondence with the STATE 11,177
TEACHERS RETIREMENT system, or other information the board 11,179
determines to be confidential.
(2) "RETIRANT" HAS THE SAME MEANING AS IN SECTION 3307.50 11,181
OF THE REVISED CODE.
(B) The records of the board shall be open to public 11,183
inspection, except for the following, which shall be excluded, 11,184
except with the written authorization of the individual 11,185
concerned: 11,186
(a)(1) The individual's personal records provided for in 11,188
section 3307.29 3307.23 of the Revised Code; 11,189
(b)(2) The individual's personal history record; 11,191
(c)(3) Any information identifying, by name and address, 11,193
the amount of a monthly allowance or benefit paid to the 11,194
individual.
(C) All medical reports and recommendations under sections 11,196
3307.42 3307.62, 3307.44 3307.64, and 3307.49 3307.66 of the 11,198
Revised Code are privileged, except that copies of such medical 11,199
reports or recommendations shall be made available to the 11,200
personal physician, attorney, or authorized agent of the 11,201
individual concerned upon written release received from the 11,202
individual or the individual's agent, or, when necessary for the 11,203
proper administration of the fund, to the board assigned 11,204
physician.
(D) Any person who is a member or contributor of the 11,206
system shall be furnished, on written request, with a statement 11,208
of the amount to the credit of the person's account. The board 11,209
need not answer more than one request of a person in any one 11,210
year.
(E) Notwithstanding the exceptions to public inspection in 11,212
237
division (B)(2) of this section, the board may furnish the 11,213
following information: 11,214
(1) If a member, former member, retirant, contributor, or 11,216
former contributor is subject to an order issued under section 11,217
2907.15 of the Revised Code or is convicted of or pleads guilty 11,218
to a violation of section 2921.41 of the Revised Code, on written 11,219
request of a prosecutor as defined in section 2935.01 of the 11,220
Revised Code, the board shall furnish to the prosecutor the 11,221
information requested from the individual's personal history 11,222
record. 11,223
(2) Pursuant to a court or administrative order issued 11,225
under section 3111.23 or 3113.21 of the Revised Code, the board 11,226
shall furnish to a court or child support enforcement agency the 11,227
information required under that section. 11,228
(3) At the written request of any person, the board shall 11,230
provide to the person a list of the names and addresses of 11,231
members, former members, retirants, contributors, former 11,232
contributors, or beneficiaries. The costs of compiling, copying, 11,233
and mailing the list shall be paid by such person. 11,234
(4) Within fourteen days after receiving from the director 11,236
of job and family services a list of the names and social 11,237
security numbers of recipients of public assistance pursuant to 11,238
section 5101.181 of the Revised Code, the board shall inform the 11,239
auditor of state of the name, current or most recent employer 11,240
address, and social security number of each member whose name and 11,241
social security number are the same as that of a person whose 11,242
name or social security number was submitted by the director. 11,243
The board and its employees shall, except for purposes of 11,244
furnishing the auditor of state with information required by this 11,245
section, preserve the confidentiality of recipients of public 11,246
assistance in compliance with division (A) of section 5101.181 of 11,247
the Revised Code.
(F) A statement that contains information obtained from 11,249
the system's records that is signed by an officer of the 11,250
238
retirement system and to which the system's official seal is 11,251
affixed, or copies of the system's records to which the signature 11,252
and seal are attached, shall be received as true copies of the 11,253
system's records in any court or before any officer of this 11,254
state. 11,255
Sec. 5101.181. (A) As used in this section and section 11,264
5101.182 of the Revised Code, "public assistance" includes, in 11,265
addition to Ohio works first; prevention, retention, and 11,266
contingency; medicaid; and disability assistance, general 11,268
assistance provided prior to July 17, 1995, under former Chapter 11,270
5113. of the Revised Code. 11,271
(B) As part of the procedure for the determination of 11,274
overpayment to a recipient of public assistance under Chapter 11,275
5107., 5108., 5111., or 5115. of the Revised Code, the director 11,276
of job and family services shall furnish quarterly the name and 11,277
social security number of each individual who receives public
assistance to the director of administrative services, the 11,278
administrator of the bureau of workers' compensation, and each of 11,279
the state's retirement boards. Within fourteen days after 11,280
receiving the name and social security number of an individual 11,281
who receives public assistance, the director of administrative 11,282
services, administrator, or board shall inform the auditor of 11,283
state as to whether such individual is receiving wages or 11,284
benefits, the amount of any wages or benefits being received, the 11,285
social security number, and the address of the individual. The 11,286
director of administrative services, administrator, boards, and 11,287
any agent or employee of those officials and boards shall comply 11,288
with the rules of the director of job and family services 11,290
restricting the disclosure of information regarding recipients of 11,291
public assistance. Any person who violates this provision shall 11,292
thereafter be disqualified from acting as an agent or employee or 11,293
in any other capacity under appointment or employment of any 11,294
state board, commission, or agency. 11,295
(C) The auditor of state may enter into a reciprocal 11,297
239
agreement with the director of job and family services or 11,298
comparable officer of any other state for the exchange of names, 11,300
current or most recent addresses, or social security numbers of 11,301
persons receiving public assistance under Title IV-A or under 11,303
Title XIX of the "Social Security Act," 49 Stat. 620 (1935), 42 11,304
U.S.C. 301, as amended. 11,305
(D)(1) The auditor of state shall retain, for not less 11,307
than two years, at least one copy of all information received 11,309
under this section and sections 145.27, 742.41, 3307.21 3307.20, 11,310
3309.22, 4123.27, 5101.182, and 5505.04 of the Revised Code. The 11,312
auditor shall review the information to determine whether
overpayments were made to recipients of public assistance under 11,314
Chapters 5107., 5108., 5111., and 5115. of the Revised Code. The 11,315
auditor of state shall initiate action leading to prosecution, 11,316
where warranted, of recipients who received overpayments by 11,317
forwarding the name of each recipient who received overpayment, 11,318
together with other pertinent information, to the director of job 11,319
and family services and the attorney general, to the district 11,321
director of job and family services of the district through which 11,323
public assistance was received, and to the county director of job 11,324
and family services and county prosecutor of the county through 11,326
which public assistance was received.
(2) The auditor of state and the attorney general or their 11,328
designees may examine any records, whether in computer or printed 11,329
format, in the possession of the director of job and family 11,331
services or any county director of job and family services. They 11,332
shall provide safeguards which restrict access to such records to 11,334
purposes directly connected with an audit or investigation, 11,335
prosecution, or criminal or civil proceeding conducted in 11,336
connection with the administration of the programs and shall 11,337
comply with the rules of the director of job and family services 11,339
restricting the disclosure of information regarding recipients of 11,340
public assistance. Any person who violates this provision shall 11,341
thereafter be disqualified from acting as an agent or employee or 11,342
240
in any other capacity under appointment or employment of any 11,343
state board, commission, or agency. 11,344
(3) Costs incurred by the auditor of state in carrying out 11,346
the auditor of state's duties under this division shall be borne 11,348
by the auditor of state. 11,349
Section 4. That all existing versions of sections 3307.21 11,351
and 5101.181 of the Revised Code are hereby repealed. 11,352
Section 5. Sections 3 and 4 of this act shall take effect 11,354
on July 1, 2000.
Section 6. The State Teachers Retirement Board shall 11,356
recalculate under section 3307.58, 3307.59, or 3307.631 of the 11,357
Revised Code, as amended by this act, a benefit that is payable 11,358
under those sections or section 3307.60 of the Revised Code and 11,359
became effective on or after July 1, 1999, but before the 11,360
effective date of this act. If the recalculated benefit is 11,361
greater than the recipient's benefit prior to the recalculation, 11,362
the board shall do both of the following: 11,363
(A) Pay the recalculated benefit; 11,365
(B) Make a one-time payment to the recipient equal to the 11,367
difference between the benefits paid to the recipient between 11,368
July 1, 1999, and the date of the payment and the increased 11,369
benefits that would have been paid to the recipient had the 11,370
amendments to sections 3307.58, 3307.59, and 3307.631 of the 11,371
Revised Code gone into effect on July 1, 1999. 11,372
Section 7. As used in this section, "eligible recipient" 11,374
has the same meaning as in section 3307.6913 of the Revised Code. 11,375
The State Teachers Retirement Board shall make a one-time 11,377
payment to each eligible recipient whose benefit is increased 11,378
under section 3307.6913 or 3307.6914 of the Revised Code, as 11,379
enacted by this act. The payment shall equal the difference 11,380
between the benefits paid to the recipient between July 1, 1999, 11,381
and the date of the payment and the increased benefits that would 11,382
have been paid to the recipient had those sections gone into 11,383
effect on July 1, 1999.
241
Section 8. Section 3307.21 of the Revised Code is 11,385
presented in Section 1 of this act as a composite of the section 11,387
as amended by both Am. Sub. H.B. 627 and Am. Sub. H.B. 668 of the 11,388
121st General Assembly, with the new language of neither of the 11,390
acts shown in capital letters. This is in recognition of the 11,391
principle stated in division (B) of section 1.52 of the Revised 11,392
Code that such amendments are to be harmonized where not 11,393
substantively irreconcilable and constitutes a legislative 11,394
finding that such is the resulting version in effect prior to the 11,395
effective date of this act.