As Passed by the House 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-REPRESENTATIVES GARDNER-HARRIS-METTLER- 11
VAN VYVEN-HOLLISTER-SUTTON-OLMAN-SCHURING-VESPER-BRADING- 12
J. BEATTY-WILLAMOWSKI-SMITH-WOMER BENJAMIN-GOODING-SYKES-
SCHULER-BUCHY-COUGHLIN-NETZLEY-TAYLOR-O'BRIEN-R. MILLER- 13
GERBERRY-OGG-BENDER-SULZER-LOGAN-A. CORE-TIBERI-TERWILLEGER- 14
WILSON-ROBINSON-BRITTON-BARRETT-HOOPS-STAPLETON-EVANS-ALLEN- 15
PATTON-DISTEL-AUSTRIA-GRENDELL-ASLANIDES-PETERSON-AMSTUTZ-MYERS- 16
MEAD-SALERNO-ROMAN-GOODMAN-METZGER-SULLIVAN-VERICH-REDFERN-YOUNG- 17
CLANCY-FLANNERY-CAREY-JOLIVETTE-KRUPINSKI-JERSE-METELSKY-WINKLER- 18
BUEHRER-STEVENS 19
_________________________________________________________________ 22
A B I L L
To amend sections 145.28, 145.293, 145.301, 145.311, 24
145.312, 145.35, 145.37, 145.38, 145.45, 171.04, 25
742.26, 742.379, 2329.66, 3305.01, 3305.06, 26
3307.01, 3307.013, 3307.02, 3307.021, 3307.022,
3307.05, 3307.07, 3307.08, 3307.09, 3307.10, 27
3307.11, 3307.111, 3307.14, 3307.15, 3307.19, 28
3307.20, 3307.201, 3307.21, 3307.22, 3307.26, 29
3307.28, 3307.281, 3307.282, 3307.283, 3307.29,
3307.30, 3307.31, 3307.311, 3307.32, 3307.33, 31
3307.35, 3307.36, 3307.371, 3307.38, 3307.381, 32
3307.382, 3307.383, 3307.384, 3307.39, 3307.40,
3307.401, 3307.402, 3307.403, 3307.404, 3307.405, 33
3307.406, 3307.407, 3307.408, 3307.409, 34
3307.4010, 3307.4011, 3307.4012, 3307.4013, 35
3307.41, 3307.411, 3307.412, 3307.42, 3307.421,
3307.43, 3307.431, 3307.44, 3307.46, 3307.47, 36
3307.48, 3307.49, 3307.50, 3307.51, 3307.511, 37
2
3307.512, 3307.515, 3307.53, 3307.56, 3307.58, 38
3307.59, 3307.60, 3307.61, 3307.62, 3307.64,
3307.65, 3307.651, 3307.66, 3307.68, 3307.69, 39
3307.70, 3307.71, 3307.711, 3307.712, 3307.72, 40
3307.73, 3307.74, 3307.741, 3307.751, 3307.78,
3307.80, 3309.021, 3309.261, 3309.262, 3309.301, 41
3309.31, 3309.341, 3309.35, 3309.39, 3309.45, 42
3313.975, 3317.011, 3317.13, 3319.08, 5101.181, 43
5505.161, and 5505.202; to amend, for the purpose
of adopting new section numbers as indicated in 44
parentheses, sections 3307.013 (3307.501), 45
3307.02 (3307.75), 3307.021 (3307.751), 3307.022 46
(3307.752), 3307.111 (3307.151), 3307.14
(3307.181), 3307.20 (3307.51), 3307.201 47
(3307.512), 3307.21 (3307.20), 3307.22 (3307.73), 48
3307.26 (3307.241), 3307.27 (3307.24), 3307.28
(3307.71), 3307.281 (3307.70), 3307.282 49
(3307.711), 3307.283 (3307.712), 3307.29 50
(3307.23), 3307.30 (3307.231), 3307.31 (3307.53), 51
3307.311 (3307.78), 3307.32 (3307.74), 3307.33
(3307.741), 3307.35 (3307.54), 3307.36 (3307.52), 52
3307.371 (3307.69), 3307.38 (3307.58), 3307.381 53
(3307.35), 3307.382 (3307.691), 3307.383 54
(3307.79), 3307.384 (3307.692), 3307.39
(3307.59), 3307.40 (3307.392), 3307.401 55
(3307.693), 3307.402 (3307.694), 3307.403 56
(3307.67), 3307.404 (3307.695), 3307.405
(3307.61), 3307.406 (3307.696), 3307.407 57
(3307.697), 3307.408 (3307.671), 3307.409 58
(3307.698), 3307.4010 (3307.699), 3307.4011
(3307.6910), 3307.4012 (3307.46), 3307.4013 59
(3307.6911), 3307.41 (3307.57), 3307.411 60
(3307.76), 3307.412 (3307.761), 3307.42
(3307.62), 3307.421 (3307.513), 3307.43 61
3
(3307.63), 3307.431 (3307.631), 3307.44 62
(3307.64), 3307.46 (3307.56), 3307.47 (3307.561), 63
3307.48 (3307.562), 3307.49 (3307.66), 3307.50
(3307.60), 3307.51 (3307.26), 3307.511 64
(3307.261), 3307.512 (3307.77), 3307.515 65
(3307.771), 3307.53 (3307.28), 3307.56 (3307.31), 66
3307.58 (3307.21), 3307.59 (3307.211), 3307.60
(3307.212), 3307.61 (3307.29), 3307.62 67
(3307.291), 3307.63 (3307.213), 3307.64 68
(3307.30), 3307.65 (3307.14), 3307.651
(3307.142), 3307.66 (3307.141), 3307.68 69
(3307.96), 3307.69 (3307.97), 3307.70 (3307.98), 70
3307.71 (3307.41), 3307.711 (3307.42), 3307.712 71
(3307.44), 3307.72 (3307.37), 3307.73 (3307.72), 72
3307.74 (3307.39), 3307.741 (3307.391), 3307.75
(3307.32), 3307.751 (3307.47), 3307.78 73
(3307.6912), and 3307.80 (3307.563); to enact new 75
sections 3307.27, 3307.33, 3307.50, 3307.511, and 76
3307.80 and sections 145.391, 742.3721, 3307.031, 77
3307.121, 3307.214, 3307.25, 3307.251, 3307.252, 78
3307.461, 3307.661, 3307.6913, 3307.6914,
3307.81, 3307.811, 3307.812, 3307.83, 3307.84, 79
3307.86, 3307.87, 3307.88, 3307.881, 3307.882, 80
3307.89, 3309.3712, and 5505.177; and to repeal 81
sections 3307.012, 3307.34, 3307.37, 3307.513, 82
and 3307.514 of the Revised Code to increase
certain benefits paid by the State Teachers 83
Retirement System (STRS), to require STRS to 84
establish a defined contribution plan that
members can select as an alternative to its 86
existing defined benefit plan, to permit STRS and
Ohio's other state retirement systems to 87
establish excess benefit arrangements under the
Internal Revenue Code of 1986, to require the 90
4
Ohio Retirement Study Council to review
semiannually the investment programs of Ohio's 91
state retirement systems and to review at least 92
once every ten years each system's actuarial
valuations and investigations, and to maintain 94
the provisions of this act on and after July 1, 95
2000, by amending the versions of sections 96
3307.21 and 5101.181 of the Revised Code that 97
take effect on that date and by amending, for the 98
purpose of adopting a new section number as
indicated in parentheses, the version of section 99
3307.21 (3307.20) of the Revised Code that takes 100
effect on that date.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 102
Section 1. That sections 145.28, 145.293, 145.301, 104
145.311, 145.312, 145.35, 145.37, 145.38, 145.45, 171.04, 742.26, 105
742.379, 2329.66, 3305.01, 3305.06, 3307.01, 3307.013, 3307.02, 106
3307.021, 3307.022, 3307.05, 3307.07, 3307.08, 3307.09, 3307.10, 107
3307.11, 3307.111, 3307.14, 3307.15, 3307.19, 3307.20, 3307.201, 109
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, 111
3307.36, 3307.371, 3307.38, 3307.381, 3307.382, 3307.383, 112
3307.384, 3307.39, 3307.40, 3307.401, 3307.402, 3307.403, 113
3307.404, 3307.405, 3307.406, 3307.407, 3307.408, 3307.409, 114
3307.4010, 3307.4011, 3307.4012, 3307.4013, 3307.41, 3307.411, 115
3307.412, 3307.42, 3307.421, 3307.43, 3307.431, 3307.44, 3307.46, 116
3307.47, 3307.48, 3307.49, 3307.50, 3307.51, 3307.511, 3307.512, 117
3307.515, 3307.53, 3307.56, 3307.58, 3307.59, 3307.60, 3307.61, 118
3307.62, 3307.64, 3307.65, 3307.651, 3307.66, 3307.68, 3307.69, 119
3307.70, 3307.71, 3307.711, 3307.712, 3307.72, 3307.73, 3307.74, 120
3307.741, 3307.751, 3307.78, 3307.80, 3309.021, 3309.261, 121
3309.262, 3309.301, 3309.31, 3309.341, 3309.35, 3309.39, 3309.45, 122
5
3313.975, 3317.011, 3317.13, 3319.08, 5101.181, 5505.161, and 123
5505.202 be amended; that sections 3307.013 (3307.501), 3307.02 124
(3307.75), 3307.021 (3307.751), 3307.022 (3307.752), 3307.111 125
(3307.151), 3307.14 (3307.181), 3307.20 (3307.51), 3307.201 126
(3307.512), 3307.21 (3307.20), 3307.22 (3307.73), 3307.26 127
(3307.241), 3307.27 (3307.24), 3307.28 (3307.71), 3307.281 128
(3307.70), 3307.282 (3307.711), 3307.283 (3307.712), 3307.29 129
(3307.23), 3307.30 (3307.231), 3307.31 (3307.53), 3307.311 130
(3307.78), 3307.32 (3307.74), 3307.33 (3307.741), 3307.35 131
(3307.54), 3307.36 (3307.52), 3307.371 (3307.69), 3307.38 132
(3307.58), 3307.381 (3307.35), 3307.382 (3307.691), 3307.383 133
(3307.79), 3307.384 (3307.692), 3307.39 (3307.59), 3307.40 134
(3307.392), 3307.401 (3307.693), 3307.402 (3307.694), 3307.403 135
(3307.67), 3307.404 (3307.695), 3307.405 (3307.61), 3307.406 136
(3307.696), 3307.407 (3307.697), 3307.408 (3307.671), 3307.409 137
(3307.698), 3307.4010 (3307.699), 3307.4011 (3307.6910), 138
3307.4012 (3307.46), 3307.4013 (3307.6911), 3307.41 (3307.57), 139
3307.411 (3307.76), 3307.412 (3307.761), 3307.42 (3307.62), 140
3307.421 (3307.513), 3307.43 (3307.63), 3307.431 (3307.631), 141
3307.44 (3307.64), 3307.46 (3307.56), 3307.47 (3307.561), 3307.48 142
(3307.562), 3307.49 (3307.66), 3307.50 (3307.60), 3307.51 143
(3307.26), 3307.511 (3307.261), 3307.512 (3307.77), 3307.515 144
(3307.771), 3307.53 (3307.28), 3307.56 (3307.31), 3307.58 145
(3307.21), 3307.59 (3307.211), 3307.60 (3307.212), 3307.61 146
(3307.29), 3307.62 (3307.291), 3307.63 (3307.213), 3307.64 147
(3307.30), 3307.65 (3307.14), 3307.651 (3307.142), 3307.66 148
(3307.141), 3307.68 (3307.96), 3307.69 (3307.97), 3307.70 149
(3307.98), 3307.71 (3307.41), 3307.711 (3307.42), 3307.712 150
(3307.44), 3307.72 (3307.37), 3307.73 (3307.72), 3307.74 151
(3307.39), 3307.741 (3307.391), 3307.75 (3307.32), 3307.751 152
(3307.47), 3307.78 (3307.6912), and 3307.80 (3307.563) be 153
amended, for the purpose of adopting new section numbers as 154
indicated in parentheses; and that new sections 3307.27, 3307.33, 155
3307.50, 3307.511, and 3307.80 and sections 145.391, 742.3721, 157
6
3307.031, 3307.121, 3307.214, 3307.25, 3307.251, 3307.252, 158
3307.461, 3307.661, 3307.6913, 3307.6914, 3307.81, 3307.811, 160
3307.812, 3307.83, 3307.84, 3307.86, 3307.87, 3307.88, 3307.881, 161
3307.882, 3307.89, 3309.3712, and 5505.177 of the Revised Code be 164
enacted to read as follows: 165
Sec. 145.28. (A)(1) Except as provided in division (A)(2) 174
of this section, a member of the public employees retirement 175
system with at least eighteen months of contributing service in 176
the system, the state teachers retirement system, or the school 177
employees retirement system who exempted himself SELF from 178
membership in one or more of the systems pursuant to section 180
145.03 or 3309.23 of the Revised Code, or former section 3307.25 181
or 3309.25 of the Revised Code, or was exempt under section 182
3307.27 3307.24 of the Revised Code, may purchase credit for each 184
year or portion of a year of service for which he THE MEMBER was 185
exempted.
(2) A member may not purchase credit under this section 187
for exempted service if the service was exempted from 188
contribution under section 145.03 of the Revised Code and subject 189
to the tax on wages imposed by the "Federal Insurance 190
Contributions Act," 68A Stat. 415 (1954), 26 U.S.C.A. 3101, as 191
amended. 192
(B) For each year or portion of a year of credit purchased 194
under this section, a member shall pay to the retirement system 195
an amount determined by multiplying the member's earnable salary 196
for the twelve months of contributing service preceding the month 197
in which he THE MEMBER applies to purchase the credit by a 198
percentage rate established by rule of the public employees 200
retirement board adopted under division (F) of this section. 201
(C) Subject to board rules, a member may purchase all or 203
part of the credit he THE MEMBER is eligible to purchase under 204
this section in one or more payments. If the member purchases 206
the credit in more than one payment, compound interest at a rate 207
specified by rule of the board shall be charged on the balance 208
7
remaining after the first payment is made. 209
(D) Credit purchasable under this section shall not exceed 211
one year of service for any twelve-month period. If the period 212
of service for which credit is purchasable under this section is 213
concurrent with a period of service that will be used to 214
calculate a retirement benefit from this system, the state 215
teachers retirement system, or school employees retirement 216
system, the amount of the credit shall be adjusted in accordance 217
with rules adopted by the public employees retirement board. 218
A member who is also a member of the state teachers 220
retirement system or the school employees retirement system shall 221
purchase credit for any service for which he THE MEMBER exempted 222
himself SELF under section 145.03 or 3309.23 of the Revised Code, 224
or former section 3307.25 or 3309.25 of the Revised Code, or was 225
exempt under section 3307.27 3307.24 of the Revised Code, from 226
the retirement system in which he THE MEMBER has the greatest 228
number of years of service credit. If the member receives 230
benefits under section 145.37 of the Revised Code, the retirement 231
system that determines and pays the benefit shall receive from 232
the other system or systems the amounts paid by the member for 233
purchase of credit for exempt service plus interest at the 234
actuarial assumption rate of the system paying that amount. The 235
interest shall be for the period beginning on the date of the 236
member's last payment for purchase of the credit and ending on 237
the date of the member's retirement.
(E) If a member dies or withdraws from service, any 239
payment made by the member under this section shall be considered 240
as accumulated contributions of the member. 241
(F) The retirement board shall adopt rules to implement 243
this section. 244
Sec. 145.293. (A) Service credit purchased under this 253
section shall be included in the member's total service credit. 254
Credit may be purchased for the following: 255
(1) Service rendered in another state, and service in any 257
8
entity operated by the United States government, that, if served 258
in a comparable position in Ohio, would be covered by the public 259
employees retirement system, Ohio police and fire pension fund, 261
state teachers retirement system, school employees retirement 262
system, or state highway patrol retirement system; 263
(2) Service for which contributions were made by the 265
member or on the member's behalf to a municipal retirement system 267
in this state.
The number of years purchased under this section shall not 269
exceed the lesser of five years or the member's total accumulated 270
number of years of Ohio service. 271
(B) For each year of service purchased, a member shall pay 273
to the public employees retirement system for credit to the 274
member's accumulated account an amount equal to the member's 276
retirement contribution for full-time employment for the first 277
year of Ohio service following termination of the service to be 278
purchased. To this amount shall be added an amount equal to 279
compound interest at a rate established by the public employees 280
retirement board from the date of membership in the public 281
employees retirement system to date of payment. The member may 282
choose to purchase only part of such credit in any one payment, 283
subject to board rules. 284
(C) A member is ineligible to purchase under this section 286
service for which the member has obtained credit under section 288
145.44 of the Revised Code or service that is used in the 289
calculation of any retirement benefit currently being paid or 290
payable in the future to the member under any other retirement 291
program except social security. At the time the credit is 292
purchased the member shall certify on a form furnished by the 293
retirement board that the member does and will conform to this 294
requirement.
(D) Credit purchased under this section may be combined 296
pursuant to section 145.37 with credit purchased under sections 297
3307.32 3307.74 and 3309.31 of the Revised Code, except that not 299
9
more than an aggregate total of five years' service credit 300
purchased under this section and sections 3307.32 3307.74 and 301
3309.31 shall be used in determining retirement eligibility or 303
calculating benefits under section 145.37 of the Revised Code. 304
Sec. 145.301. (A) A member may purchase service credit 313
that shall be considered as the equivalent of Ohio service for 314
each year of service incurred by reason of having been on active 315
duty as a member of the armed forces of the United States, as 316
defined in section 145.30 of the Revised Code. The credit may be 317
purchased at any time prior to receipt of a retirement allowance. 318
The number of years purchased shall not exceed five. The member 320
may choose to purchase only part of such credit in any one 321
payment, subject to public employees retirement board rules. 322
(B) For the purposes of this division, "prisoner of war" 324
means any regularly appointed, enrolled, enlisted, or inducted 325
member of the armed forces of the United States who was captured, 326
separated, and incarcerated by an enemy of the United States. 327
A member may purchase service credit that shall be 329
considered as the equivalent of Ohio service for each year of 330
service such member was a prisoner of war. The number of years 331
purchased under this division shall not exceed five. Service 332
credit may be purchased under this division for the same years of 333
service used to purchase service credit under division (A) of 334
this section. The member may choose to purchase only part of 335
such credit in any one payment, subject to board rules. 336
(C) The total number of years purchased under this section 338
shall not exceed the member's total accumulated number of years 339
of Ohio service. 340
(D) For each year of service purchased under division (A) 342
or (B) of this section, the member shall pay to the public 343
employees retirement system for credit to the member's 344
accumulated account an amount specified by the retirement board 346
that shall be not less than fifty per cent of the additional 347
liability resulting from the purchase of that year of service as 348
10
determined by an actuary employed by the board. 349
(E) A member is ineligible to purchase service credit 351
under this section for any year of military service that was: 352
(1) Used in the calculation of any retirement benefit 355
currently being paid to the member or payable in the future under 356
any other retirement program, except social security, or for 357
retired pay for nonregular service under Chapter 1223 of Section 358
1662 of Title XVI of the "National Defense Authorization Act for 360
Fiscal Year 1995," 108 Stat. 2998 (1994), 10 U.S.C.A. 12731 to 361
12739;
(2) Used to obtain service credit pursuant to section 362
145.30 or 145.302 of the Revised Code. 363
At the time the credit is purchased, the member shall 366
certify on a form furnished by the retirement board that the 367
member does and will conform to this requirement. 368
(F) A member who, on the effective date of this amendment 372
MARCH 17, 2000, is purchasing service credit under this section 373
by making installment payments to the system or by a payroll 374
deduction plan authorized under section 145.294 of the Revised 375
Code may elect, on a form provided by the board, to have a 376
portion of the cost of the service credit recalculated under 377
division (D) of this section as amended by House Bill 186 of the 379
123rd general assembly. The recalculation shall apply only to 380
the amount still owed by the member as of the date the election 381
is filed with the board. 382
For each member who makes an election, the board shall do 384
all of the following: 385
(1) Determine the amount of the total cost of the service 387
credit still owed by the member as of the date the election is 388
filed with the board and the number of years or portion of a year 389
of service credit attributable to that amount; 390
(2) Recalculate under division (D) of this section the 392
cost of the service credit described in division (F)(1) of this 393
section;
11
(3) Notify the member of the recalculated amount. 395
If the recalculated amount is less than the amount still 397
owed by the member as of the date the election is filed, the 398
recalculated amount shall be the amount owed by the member. 399
(G) Credit purchased under this section may be combined 401
pursuant to section 145.37 with credit for military service 402
purchased under sections 3307.021 3307.751 and 3309.021, except 404
that not more than an aggregate total of five years of credit 405
purchased under division (A) of this section, division (A) of 406
section 3307.021 3307.751, and division (A) of section 3309.021, 407
and not more than an aggregate total of five years of credit 409
purchased under division (B) of this section, division (B) of 410
section 3307.021 3307.751, and division (B) of section 3309.021 412
shall be used in determining retirement eligibility or 413
calculating benefits under section 145.37 of the Revised Code. 414
Sec. 145.311. (A) A member of the public employees 423
retirement system who has at least eighteen months of 424
contributing service credit in the system, the OHIO police and 425
firemen's disability and FIRE pension fund, school employees 427
retirement system, state teachers retirement system, or state 428
highway patrol retirement system, and is a former member of or no 429
longer contributing to the school employees retirement system or 430
state teachers retirement system may restore service credit under 431
section 3307.28 3307.71 or 3309.26 of the Revised Code by making 433
payments pursuant to this section through a payroll deduction 434
plan established under section 145.294 of the Revised Code, a. A 435
member seeking to restore this service credit shall notify the 437
public employees retirement system on a form approved by the 438
public employees retirement board. After receiving the notice, 439
the public employees retirement system shall request that the 440
former retirement system calculate under section 3307.283
3307.712 or 3309.262 of the Revised Code the cost to the member 442
to restore service credit for each year or portion of a year of 444
service for which the member seeks to restore the service credit. 445
12
The amount the former retirement system certifies as the cost of 446
restoring the service credit, plus interest described in division 447
(B) of this section, is the cost to the member of restoring the 448
service credit. On receiving the certification from the former 449
retirement system, the public employees retirement system shall 450
notify the member of the cost. 451
(B) For each year or portion of a year of service credit 453
restored under section 3307.28 3307.71 or 3309.26 of the Revised 455
Code, a member shall pay to the public employees retirement 456
system the amount certified by the former retirement system plus 457
interest at a rate specified by the former retirement system 458
under section 3307.283 3307.712 or 3309.262 of the Revised Code 460
for the period during which deductions are made under section 461
145.294 of the Revised Code. 462
(C) The public employees retirement board shall annually 465
notify the former retirement system that a payment to restore 466
service credit under section 3307.28 3307.71 or 3309.26 of the 468
Revised Code has been made. At the time the payment is 469
transferred under division (D) of this section, the former 470
retirement system shall restore the service credit for the year 471
or portion of a year for which the payment was made. 473
(D) On application for a payment of accumulated 475
contributions or an age and service retirement, disability, or 477
survivor benefit under Chapter 145., 3307., or 3309. of the 478
Revised Code by a member who made payments under this section to 480
restore service credit in a former retirement system, the public 481
employees retirement system shall pay to the former retirement 482
system an amount equal to the total amount paid by the member 484
under this section.
(E) The board shall adopt rules to implement this section. 486
Sec. 145.312. After receiving a request from the state 496
teachers retirement system under division (A) of section 3307.282 497
3307.711 or the school employees retirement system under division 499
(A) of section 3309.261 of the Revised Code, the public employees 502
13
retirement system shall do both of the following: 503
(A) Calculate and certify to the requesting retirement 506
system the cost to a former member to restore service credit 507
under section 145.31 of the Revised Code for each year or portion 508
of a year for which the former member seeks to restore service 510
credit under that section.
(B) Inform the requesting retirement system of the rate of 512
interest charged to a member under a payroll deduction plan 513
authorized under section 145.294 of the Revised Code. 514
Sec. 145.35. (A) As used in this section, "on-duty 523
illness or injury" means an illness or injury that occurred 524
during or resulted from performance of duties under the direct 525
supervision of a member's appointing authority. 526
(B) The public employees retirement system shall provide 528
disability coverage to each member who has at least five years of 529
total service credit and disability coverage for on-duty illness 530
or injury to each member who is a law enforcement officer, 531
regardless of length of service. 532
Not later than October 16, 1992, the public employees 534
retirement board shall give each person who is a member on July 535
29, 1992, the opportunity to elect disability coverage either 537
under section 145.36 of the Revised Code or under section 145.361 538
of the Revised Code. The board shall mail notice of the 539
election, accompanied by an explanation of the coverage under 540
each of the Revised Code sections and a form on which the 541
election is to be made, to each member at the member's last known 543
address. The board shall also provide the explanation and form 544
to any member on request.
Regardless of whether the member actually receives notice 546
of the right to make an election, a member who fails to file a 547
valid election under this section shall be considered to have 548
elected disability coverage under section 145.36 of the Revised 549
Code. To be valid, an election must be made on the form provided 550
by the retirement board, signed by the member, and filed with the 551
14
board not later than one hundred eighty days after the date the 552
notice was mailed, or, in the case of a form provided at the 553
request of a member, a date specified by rule of the retirement 554
board. Once made, an election is irrevocable, but if the member 555
ceases to be a member of the retirement system, the election is 556
void. If a person who makes an election under this section also 557
makes an election under section 3307.42 3307.62 or 3309.39 of the 559
Revised Code, the election made for the system that pays a 560
disability benefit to that person shall govern the benefit. 561
Disability coverage shall be provided under section 145.361 563
of the Revised Code for persons who become members after July 29, 565
1992, and for members who elect under this division to be covered 566
under section 145.361 of the Revised Code. 567
The retirement board may adopt rules governing elections 569
made under this division. 570
(C) Application for a disability benefit may be made by a 572
member, by a person acting in the member's behalf, or by the 573
member's employer, provided the member has disability coverage 575
under section 145.36 or 145.361 of the Revised Code and is not 576
receiving a disability benefit under any other Ohio state or 577
municipal retirement program. Application must be made within 578
two years from the date the member's contributing service 579
terminated, unless the retirement board determines that the 580
member's medical records demonstrate conclusively that at the 581
time the two-year period expired, the member was physically or 582
mentally incapacitated for duty and unable to make an 583
application. Application may not be made by or for any person 584
receiving age and service retirement benefits under section 585
145.33, 145.331, 145.34, or 145.37 of the Revised Code or any 586
person who, pursuant to section 145.40 of the Revised Code, has 587
been paid the accumulated contributions standing to the credit of 588
the person's individual account in the employees' savings fund. 590
The application shall be made on a form provided by the
retirement board. 591
15
(D) The benefit payable to any member who is approved for 593
a disability benefit shall become effective on the first day of 594
the month immediately following the later of the following: 595
(1) The last day for which compensation was paid; 597
(2) The attainment of eligibility for a disability 599
benefit. 600
(E) Medical examination of a member who has applied for a 603
disability benefit shall be conducted by a competent
disinterested physician or physicians selected by the board to 604
determine whether the member is mentally or physically 605
incapacitated for the performance of duty by a disabling 606
condition either permanent or presumed to be permanent. The 608
disability must have occurred since last becoming a member or
have increased since last becoming a member to such extent as to 609
make the disability permanent or presumed to be permanent. A 610
disability is presumed to be permanent if it is expected to last 611
for a continuous period of not less than twelve months following 612
the filing of the application. 613
If the physician or physicians determine that the member 615
qualifies for a disability benefit, the board concurs with the 617
determination, and the member agrees to medical treatment as 618
specified in division (F) of this section, the member shall 619
receive a disability benefit under section 145.36 or 145.361 of 620
the Revised Code. The action of the board shall be final. 621
(F) The public employees retirement board shall adopt 623
rules requiring a disability benefit recipient, as a condition of 625
continuing to receive a disability benefit, to agree in writing 626
to obtain any medical treatment recommended by the board's 627
physician and submit medical reports regarding the treatment. If 629
the board determines that a disability benefit recipient is not
obtaining the medical treatment or the board does not receive a 630
required medical report, the disability benefit shall be 632
suspended until the treatment is obtained, the report is received 633
by the board, or the board's physician certifies that the 634
16
treatment is no longer helpful or advisable. Should the 635
recipient's failure to obtain treatment or submit a medical 636
report continue for one year, the recipient's right to the 638
disability benefit shall be terminated as of the effective date 639
of the original suspension.
(G) In the event an employer files an application for a 641
disability benefit as a result of a member having been separated 642
from service because the member is considered to be mentally or 644
physically incapacitated for the performance of the member's 645
present duty, and the physician or physicians selected by the 646
board reports to the board that the member is physically and 647
mentally capable of performing service similar to that from which 648
the member was separated and the board concurs in the report, the 650
board shall so certify to the employer and the employer shall 651
restore the member to the member's previous position and salary 653
or to a similar position and salary.
Sec. 145.37. (A) As used in this section: 662
(1) "State retirement system" means the public employees 664
retirement system, school employees retirement system, or state 665
teachers retirement system. 666
(2) "Total service credit" means all service credit earned 668
in the state retirement systems, except credit for service 669
subject to section 145.38 of the Revised Code. Total service 670
credit shall not exceed one year of credit for any twelve-month 671
period. 672
(3) In addition to the meaning given in division (N) of 674
section 145.01 of the Revised Code, "disability benefit" means 675
"disability benefit" as defined in sections 3307.01 and 3309.01 676
of the Revised Code. 677
(B) To coordinate and integrate membership in the state 679
retirement systems, the following provisions apply: 680
(1) At the option of a member, total contributions and 682
service credit in all state retirement systems, including amounts 683
paid to restore service credit under sections 145.311, 3307.282 684
17
3307.711, and 3309.261 of the Revised Code, shall be used in 686
determining the eligibility and total retirement or disability 687
benefit payable. When total contributions and service credit are 688
so combined, the following provisions apply: 689
(a) Age and service retirement or disability benefits are 691
effective on the first day of the month immediately following the 692
later of: 693
(i) The last day for which compensation was paid; 695
(ii) The attainment of minimum age or service credit 697
eligibility for benefits provided under this section. 698
(b) In determining eligibility for a disability benefit, 700
the medical examiner's report to the retirement board of any 701
state retirement system, showing that the member's disability 702
incapacitates the member for the performance of duty, may be 703
accepted by the state retirement boards as sufficient for 705
granting a disability benefit. 706
(c) The state retirement system in which the member had 708
the greatest service credit, without adjustment, shall determine 709
and pay the total retirement or disability benefit. Where the 710
member's credit is equal in two or more state retirement systems, 712
the system having the largest total contributions of the member 713
shall determine and pay the total benefit. 714
(d) In determining the total credit to be used in 716
calculating a retirement or disability benefit, credit shall not 717
be reduced below that certified by the system or systems 718
transferring credit, except that such total combined service 719
credit shall not exceed one year of credit for any one "year" as 720
defined in the law of the system making the calculation. 721
(e) The state retirement system determining and paying a 723
retirement or disability benefit shall receive from the other 724
system or systems the member's refundable account at retirement 725
or the effective date of a disability benefit plus an equal 726
amount from the employer's accumulation fund. 727
(i) The annuity rates and mortality tables of the state 729
18
retirement system making the calculation and paying the benefit 730
shall be exclusively applicable. 731
(ii) Deposits made for the purpose of an additional 733
annuity, and including guaranteed interest, upon the request of 734
the member, shall be transferred to the state retirement system 735
paying the benefit. The return upon such deposits shall be that 736
offered by the state retirement system making the calculation and 737
paying the benefit. 738
(2) A former member receiving a retirement or disability 740
benefit under this section, who accepts employment amenable to 741
coverage in any state retirement system that participated in the 742
former member's combined benefit, shall be subject to the 744
applicable provisions of law governing such re-employment. If 745
the former member is subject to section 3307.381 3307.35 of the 746
Revised Code and exceeds the limits on re-employment established 748
by that section, the state retirement system paying a combined 749
benefit shall terminate the entire pension portion of the benefit 750
for the period of re-employment that exceeds the limit in that 751
section. If a former member should be paid any amount in a 752
retirement benefit, to which the former member is not entitled 753
under the applicable provisions of law governing such 755
re-employment, such amount shall be recovered by the state 756
retirement system paying such benefit by utilizing any recovery 757
procedure available under the code provisions of the state 758
retirement system covering such re-employment.
(C) A PERS retirant or other system retirant, as defined 760
in section 145.38 of the Revised Code, is not eligible to receive 761
any benefit under this section for service subject to section 762
145.38 of the Revised Code. 763
Sec. 145.38. (A) As used in this section: 772
(1) "PERS retirant" means a former member of the public 774
employees retirement system who is receiving either of the 775
following:
(a) Age and service retirement benefits under section 777
19
145.32, 145.33, 145.331, 145.34, or 145.46 of the Revised Code; 778
(b) Age and service retirement benefits paid by the public 780
employees retirement system under section 145.37 of the Revised 781
Code. 782
(2) "Other system retirant" means both of the following: 784
(a) A member or former member of the Ohio police and 786
firemen's fire pension fund, state teachers retirement system, 787
school employees retirement system, state highway patrol 788
retirement system, or Cincinnati retirement system who is 789
receiving age and service or commuted age and service retirement 790
benefits or a disability benefit from a system of which the 791
person is a member or former member; 792
(b) A member or former member of the public employees 794
retirement system who is receiving age and service retirement 795
benefits or a disability benefit under section 145.37 of the 796
Revised Code paid by the school employees retirement system or 797
the state teachers retirement system. 798
(B)(1) Subject to this section, a PERS retirant or other 800
system retirant may be employed by a public employer. If so 801
employed, the PERS retirant or other system retirant shall 802
contribute to the public employees retirement system in 803
accordance with section 145.47 of the Revised Code, and the 804
employer shall make contributions in accordance with section 805
145.48 of the Revised Code. 806
(2) A public employer that employs a PERS retirant or 808
other system retirant, or enters into a contract for services as 809
an independent contractor with a PERS retirant who was employed 810
by the public employer at the time of the retirant's retirement 812
shall notify the retirement board of the employment or contract
not later than the end of the month in which the employment or 813
contract commences. Any overpayment of benefits to a PERS 814
retirant by the retirement system resulting from delay or failure 815
of the employer to give the notice shall be repaid to the 816
retirement system by the employer. 817
20
(3) On receipt of notice from a public employer that a 819
person who is an other system retirant has been employed, the 820
retirement system shall notify the retirement system of which the 821
other system retirant was a member of such employment. 822
(4)(a) A PERS retirant who has received a retirement 824
allowance for less than six months when employment subject to 825
this section commences shall forfeit the retirement allowance for 826
the period that begins on the date the employment commences and 827
ends on the date that is six months after the date on which the 828
retirement allowance commenced. Service and contributions for 829
that period shall not be included in calculation of any benefits 830
payable to the PERS retirant and those contributions shall be 831
refunded on the retirant's death or termination of the 832
employment. For purposes of this division, "employment" shall 833
include service for which the retirant or the retirant's 834
employer, or both, have waived any earnable salary for such 835
service.
(b) An other system retirant who has received a retirement 837
allowance or disability benefit for less than two months when 839
employment subject to this section commences shall forfeit the 840
retirement allowance or disability benefit for the period that 841
begins on the date the employment commences and ends on the date 842
that is two months after the date on which the retirement 843
allowance or disability benefit commenced. Service and 844
contributions for that period shall not be included in the
calculation of any benefits payable to the other system retirant 845
and those contributions shall be refunded on the retirant's death 847
or termination of the employment.
(5) On receipt of notice from the Ohio police and fire 850
pension fund, school employees retirement system, or state 852
teachers retirement system of the re-employment of a PERS 853
retirant, the public employees retirement system shall not pay,
or if paid, shall recover, the amount to be forfeited by the PERS 854
retirant in accordance with section 742.26, 3307.381 3307.35, or 856
21
3309.341 of the Revised Code. 857
(6) A PERS retirant who enters into a contract to provide 859
services as an independent contractor to the employer by which 860
the retirant was employed at the time of retirement or, less than 862
two months after the retirement allowance commences, begins
providing services as an independent contractor pursuant to a 863
contract with another public employer, shall forfeit the pension 864
portion of the retirement benefit for the period beginning the 865
first day of the month following the month in which the services 866
begin and ending on the first day of the month following the 867
month in which the services end. The annuity portion of the 868
retirement allowance shall be suspended on the day services under 869
the contract begin and shall accumulate to the credit of the 870
retirant to be paid in a single payment after services provided 871
under the contract terminate. A PERS retirant subject to 872
division (B)(6) of this section shall not contribute to the 873
retirement system and shall not become a member of the system. 874
(C)(1) Except as provided in division (C)(4) of this 876
section, a PERS retirant employed pursuant to this section shall 878
elect one of the following:
(a) To receive both compensation for the employment and a 881
retirement allowance;
(b) To receive compensation for the employment and forfeit 884
the pension portion of the retirement allowance.
(2) A PERS retirant who is described in division (C)(4) of 887
this section or elects to forfeit the pension portion of the 888
retirement allowance under division (C)(1)(b) of this section 889
shall become a new member of the public employees retirement 890
system with all the rights, privileges, and obligations of 891
membership, except that the new membership does not include 892
survivor benefits provided pursuant to section 145.45 of the 893
Revised Code. The pension portion of the PERS retirant's
retirement allowance shall cease on the first day of the first 894
month following commencement of the employment and shall 895
22
thereafter be forfeited until the first day of the first month 896
following termination of the employment. The annuity portion of 897
the retirement allowance shall be suspended on the first day of 898
the first month following commencement of the employment and 899
shall thereafter accumulate to the credit of the PERS retirant to 900
be paid in a single payment after termination of the employment. 901
The retirement allowance shall resume on the first day of the 902
first month following termination of the employment. On 903
termination of the employment, the PERS retirant shall elect to 904
receive either a refund of the retirant's contributions to the 906
retirement system during the period of employment subject to this 907
section or a supplemental retirement allowance based on the 908
retirant's contributions and service credit for that period of 909
employment.
(3) Except as provided in division (B)(4) of this section, 911
there shall be no suspension or forfeiture of any portion of the 912
retirement allowance payable to other system retirants or to PERS 913
retirants who make an election under division (C)(1)(a) of this 914
section. 915
(4) A PERS retirant shall elect division (C)(1)(b) of this 918
section if both of the following apply:
(a) The retirant held elective office in this state, or in 920
any municipal corporation, county, or other subdivision of this 921
state at the time of retirement under Chapter 145. of the Revised 922
Code;
(b) The retirant was elected or appointed to the same 924
office for the remainder of the term or the term immediately 925
following the term during which the retirement occurred. 926
(D)(1) On termination of employment under this section, 928
the PERS retirant who makes an election under division (C)(1)(a) 929
of this section or other system retirant may file an application 930
with the public employees retirement system for a benefit under 931
this division, which shall consist of a single life annuity 932
having a reserve equal to the amount of the retirant's 933
23
accumulated contributions for the period of employment and an 934
equal amount of the employer's contributions. The PERS retirant 935
or other system retirant shall elect either to receive the 936
benefit as a monthly annuity for life or a lump-sum payment 937
discounted to the present value using the current actuarial 938
assumption rate of interest, except that if the monthly annuity 939
would be less than twenty-five dollars per month, the retirant 940
shall receive a lump-sum payment. 941
(2) A benefit payable under this division shall commence 943
on the latest of the following: 944
(a) The last day for which compensation for employment 946
subject to this section was paid; 947
(b) Attainment by the PERS retirant or other system 949
retirant of age sixty-five; 950
(c) If the PERS retirant or other system retirant was 952
previously employed under this section and is receiving or 953
previously received a benefit under this division, completion of 954
a period of twelve months since the effective date of the last 955
benefit under this division. 956
(3)(a) If a PERS retirant or other system retirant dies 958
while employed in employment subject to this section, a lump-sum 959
payment calculated in accordance with division (D)(1) of this 960
section shall be paid to the retirant's beneficiary under 961
division (G) of this section. 962
(b) If at the time of death a PERS retirant or other 964
system retirant receiving a monthly annuity has received less 965
than the retirant would have received as a lump-sum payment, the 967
difference between the amount received and the amount that would 968
have been received as a lump-sum payment shall be paid to the 969
retirant's beneficiary under division (G) of this section. 970
(4)(a) A PERS retirant or other system retirant subject to 972
this division is not a member of the public employees retirement 973
system, does not have any of the rights, privileges, or 974
obligations of membership, except as specified in this section, 975
24
and, except as specified in division (D)(4)(b) of this section, 976
is not eligible to receive health, medical, hospital, or surgical 977
benefits under section 145.58 of the Revised Code for employment 978
subject to this section. No amount received under this division 979
shall be included in determining an additional benefit under 980
section 145.323 of the Revised Code or any other post-retirement 981
benefit increase. 982
(b) A PERS retirant who makes an election under division 984
(C)(1)(a) of this section shall receive primary health, medical, 985
hospital, or surgical insurance coverage from the retirant's 986
employer, if the employer provides coverage to other employees 987
performing comparable work. Neither the employer nor the PERS 988
retirant may waive the employer's coverage, except that the PERS 989
retirant may waive the employer's coverage if the retirant has 990
coverage comparable to that provided by the employer from a 991
source other than the employer or the public employees retirement 992
system. If a claim is made, the employer's coverage shall be the 993
primary coverage and shall pay first. The benefits provided 994
under section 145.58 of the Revised Code shall pay only those 995
medical expenses not paid through the employer's coverage or 996
coverage the PERS retirant receives through a source other than 997
the retirement system. 998
(E) If the disability benefit of an other system retirant 1,000
employed under this section is terminated, the retirant shall 1,001
become a member of the public employees retirement system, 1,002
effective on the first day of the month next following the 1,003
termination with all the rights, privileges, and obligations of 1,004
membership. If such person, after the termination of the 1,005
disability benefit, earns two years of service credit under this 1,006
system or under the Ohio police and fire pension fund, state 1,008
teachers retirement system, school employees retirement system, 1,009
or state highway patrol retirement system, the person's prior 1,010
contributions as an other system retirant under this section 1,011
shall be included in the person's total service credit as a 1,012
25
public employees retirement system member, and the person shall 1,013
forfeit all rights and benefits of this section. Not more than 1,014
one year of credit may be given for any period of twelve months. 1,015
(F) A PERS retirant who performs services for a public 1,017
employer as an independent contractor pursuant to a contract with 1,018
the employer shall not make contributions to the public employees 1,019
retirement system or become a member of the system. Except as 1,020
provided in division (B)(6) of this section, there shall be no 1,021
suspension or forfeiture of the retirant's retirement allowance. 1,022
(G) A PERS retirant or other system retirant employed 1,024
under this section may designate one or more persons as 1,025
beneficiary to receive any benefits payable under this section 1,026
due to death. The designation shall be in writing duly executed 1,028
on a form provided by the public employees retirement board, 1,029
signed by the PERS retirant or other system retirant, and filed 1,030
with the board prior to death. The last designation of a 1,031
beneficiary revokes all previous designations. The PERS
retirant's or other system retirant's marriage, divorce, marriage 1,032
dissolution, legal separation, withdrawal of account, birth of a 1,034
child, or adoption of a child revokes all previous designations. 1,035
If there is no designated beneficiary, the beneficiary is the 1,036
beneficiary determined under division (D) of section 145.43 of 1,037
the Revised Code. If any benefit payable under this section due 1,038
to the death of a PERS retirant or other system retirant is not 1,039
claimed by a beneficiary within five years after the death, the 1,040
amount payable shall be transferred to the income fund and 1,041
thereafter paid to the beneficiary or the estate of the PERS 1,042
retirant or other system retirant on application to the board.
(H) This section does not affect the receipt of benefits 1,044
by or eligibility for benefits of any person who on August 20, 1,045
1976, was receiving a disability benefit or service retirement 1,046
pension or allowance from a state or municipal retirement system 1,047
in Ohio and was a member of any other state or municipal 1,048
retirement system of this state. 1,049
26
(I) The public employees retirement board may adopt rules 1,051
to carry out this section. 1,052
Sec. 145.391. THE PUBLIC EMPLOYEES RETIREMENT BOARD MAY 1,054
ESTABLISH AND MAINTAIN A QUALIFIED GOVERNMENTAL EXCESS BENEFIT 1,055
ARRANGEMENT THAT MEETS THE REQUIREMENTS OF DIVISION (m) OF 1,056
SECTION 415 OF THE "INTERNAL REVENUE CODE OF 1986," 100 STAT. 1,058
2085, 26 U.S.C.A. 415, AS AMENDED, AND ANY REGULATIONS ADOPTED 1,060
THEREUNDER. IF ESTABLISHED, THE ARRANGEMENT SHALL BE A SEPARATE 1,061
PORTION OF THE PUBLIC EMPLOYEES RETIREMENT SYSTEM AND BE 1,062
MAINTAINED SOLELY FOR THE PURPOSE OF PROVIDING TO RETIRED MEMBERS 1,063
THAT PART OF A BENEFIT OTHERWISE PAYABLE UNDER SECTIONS 145.01 TO 1,064
145.59 OF THE REVISED CODE THAT EXCEEDS THE LIMITS ESTABLISHED BY 1,066
SECTION 415 OF THE "INTERNAL REVENUE CODE OF 1986," AS AMENDED. 1,067
MEMBERS PARTICIPATING IN AN ARRANGEMENT ESTABLISHED UNDER 1,069
THIS SECTION SHALL NOT BE PERMITTED TO ELECT TO DEFER 1,070
COMPENSATION TO THE ARRANGEMENT. CONTRIBUTIONS TO AND BENEFITS 1,071
PAID UNDER AN ARRANGEMENT SHALL NOT BE PAYABLE FROM A TRUST THAT 1,072
IS PART OF THE SYSTEM UNLESS THE TRUST IS MAINTAINED SOLELY FOR 1,073
THE PURPOSE OF PROVIDING SUCH BENEFITS. 1,074
THE BOARD SHALL ADOPT RULES TO ADMINISTER AN ARRANGEMENT 1,076
ESTABLISHED UNDER THIS SECTION. 1,077
Sec. 145.45. Except as provided in division (C)(1) of this 1,087
section, in lieu of accepting the payment of the accumulated 1,088
account of a member who dies before service retirement, a 1,089
beneficiary, as determined in this section or section 145.43 of 1,090
the Revised Code, may elect to forfeit the accumulated 1,091
contributions and to substitute certain other benefits under 1,092
division (A) or (B) of this section.
(A) If a deceased member was eligible for a service 1,094
retirement benefit as provided in section 145.33, 145.331, or 1,095
145.34 of the Revised Code, a surviving spouse or other sole 1,096
dependent beneficiary may elect to receive a monthly benefit 1,098
computed as the joint-survivor benefit designated as "plan D" in 1,099
section 145.46 of the Revised Code, which the member would have 1,100
27
received had the member retired on the last day of the month of 1,101
death and had the member at that time selected such 1,103
joint-survivor plan. Payment shall begin with the month 1,105
subsequent to the member's death, except that a surviving spouse 1,106
who is less than sixty-five years old may defer receipt of such 1,107
benefit. Upon receipt, the benefit shall be calculated based 1,108
upon the spouse's age at the time of first payment, and shall 1,109
accrue regular interest during the time of deferral. 1,110
(B) If a deceased member had at least one and one-half 1,112
years of contributing service credit, with at least one-quarter 1,113
year of contributing service credit within the two and one-half 1,114
years prior to the date of death, or was receiving at the time of 1,115
death a disability benefit as provided in section 145.36, 1,116
145.361, or 145.37 of the Revised Code, certain qualified 1,117
survivors may elect to receive monthly benefits as provided in 1,120
divisions (B)(1) and (5) of this section.
(1) Number 1,122
of Qualified Or 1,123
survivors Annual Benefit as a Per Monthly Benefit 1,124
affecting Cent of Decedent's Final shall not be 1,125
the benefit Average Salary less than 1,126
1 25% $ 96 1,127
2 40 186 1,128
3 50 236 1,129
4 55 236 1,130
5 or more 60 236 1,131
(2) Benefits shall begin as qualified survivors meet 1,134
eligibility requirements as follows: 1,135
(a) A qualified spouse is the surviving spouse of the 1,137
deceased member, who is age sixty-two, or age fifty if the 1,140
deceased member had ten or more years of Ohio service credit, or 1,141
regardless of age if caring for a qualified child, or regardless 1,142
of age if adjudged physically or mentally incompetent. A spouse 1,144
of a member who died prior to August 27, 1970, whose eligibility 1,145
28
was determined at the member's death, and who is physically or 1,146
mentally incompetent on or after August 20, 1976, shall be paid 1,147
the monthly benefit which that person would otherwise receive 1,148
when qualified by age.
(b) A qualified child is any unmarried child of the 1,152
deceased member under age eighteen, or under age twenty-two if 1,153
the child is attending an institution of learning or training 1,154
pursuant to a program designed to complete in each school year 1,155
the equivalent of at least two-thirds of the full-time curriculum 1,156
requirements of such institution and as further determined by 1,157
board policy, or regardless of age if adjudged physically or 1,158
mentally incompetent at the time of the member's death. 1,159
(c) A qualified parent is a dependent parent aged 1,161
sixty-five or older or regardless of age if physically or 1,163
mentally incompetent, a dependent parent whose eligibility was 1,164
determined by the member's death prior to August 20, 1976, and 1,165
who is physically or mentally incompetent on or after August 20, 1,166
1976, shall be paid the monthly benefit for which that person 1,167
would otherwise qualify.
(3) "Physically or mentally incompetent" as used in this 1,169
section may be determined by a court of jurisdiction, or by a 1,170
physician appointed by the retirement board. Incapability of 1,171
making a living because of a physically or mentally disabling 1,172
condition shall meet the qualifications of this division. 1,173
(4) Benefits to a qualified survivor shall terminate upon 1,176
ceasing to meet eligibility requirements as provided in this 1,177
division, a first marriage, abandonment, adoption, or during 1,179
active military service. Benefits to a deceased member's 1,180
surviving spouse that were terminated under a former version of 1,181
this section that required termination due to remarriage and were 1,182
not resumed prior to the effective date of this amendment 1,183
SEPTEMBER 16, 1998, shall resume on the first day of the month 1,184
immediately following receipt by the board of an application on a 1,185
form provided by the board. 1,186
29
Upon the death of any subsequent spouse who was a member of 1,189
the public employees retirement system, state teachers retirement 1,190
system, or school employees retirement system, the surviving 1,191
spouse of such member may elect to continue receiving benefits 1,192
under this division, or to receive survivor's benefits, based 1,193
upon the subsequent spouse's membership in one or more of the 1,194
systems, for which such surviving spouse is eligible under this 1,195
section or section 3307.49 3307.66 or 3309.45 of the Revised 1,196
Code. If the surviving spouse elects to continue receiving 1,198
benefits under this division, such election shall not preclude 1,199
the payment of benefits under this division to any other 1,200
qualified survivor.
Benefits shall begin or resume on the first day of the 1,202
month following the attainment of eligibility and shall terminate 1,203
on the first day of the month following loss of eligibility. 1,204
(5) Benefits to a qualified spouse shall be paid in the 1,206
amount determined for the first qualifying survivor in division 1,208
(B)(1) of this section, but shall not be less than one hundred 1,209
six dollars per month if the deceased member had ten or more 1,210
years of Ohio service credit. All other qualifying survivors 1,212
shall share equally in the benefit or remaining portion thereof. 1,213
(6) The beneficiary of a member who is also a member of 1,215
the state teachers retirement system or of the school employees 1,216
retirement system, must forfeit the member's accumulated 1,217
contributions in those systems and in the public employees 1,218
retirement system, if the beneficiary takes a survivor benefit. 1,221
Such benefit shall be exclusively governed by section 145.37 of
the Revised Code. 1,222
(C)(1) Regardless of whether the member is survived by a 1,226
spouse or designated beneficiary, if the public employees
retirement system receives notice that a deceased member 1,227
described in division (A) or (B) of this section has one or more 1,228
qualified children, all persons who are qualified survivors under 1,230
division (B) of this section shall receive monthly benefits as 1,232
30
provided in division (B) of this section. 1,233
If, after determining the monthly benefits to be paid under 1,235
division (B) of this section, the system receives notice that 1,236
there is a qualified survivor who was not considered when the 1,237
determination was made, the system shall, notwithstanding section 1,238
145.561 of the Revised Code, recalculate the monthly benefits 1,240
with that qualified survivor included, even if the benefits to 1,241
qualified survivors already receiving benefits are reduced as a 1,242
result. The benefits shall be calculated as if the qualified 1,243
survivor who is the subject of the notice became eligible on the
date the notice was received and shall be paid to qualified 1,244
survivors effective on the first day of the first month following 1,245
the system's receipt of the notice. 1,246
If the retirement system did not receive notice that a 1,248
deceased member has one or more qualified children prior to 1,250
making payment under section 145.43 of the Revised Code to a 1,253
beneficiary as determined by the retirement system, the payment 1,254
is a full discharge and release of the system from any future 1,255
claims under this section or section 145.43 of the Revised Code. 1,256
(2) If benefits under division (C)(1) of this section to 1,259
all persons, or to all persons other than a surviving spouse or 1,261
other sole beneficiary, terminate, there are no children under
the age of twenty-two years, and the surviving spouse or 1,262
beneficiary qualifies for benefits under division (A) of this 1,264
section, the surviving spouse or beneficiary may elect to receive 1,265
benefits under division (A) of this section. The benefits shall 1,266
be effective on the first day of the month immediately following 1,267
the termination.
(D) If the survivor benefits due and paid under this 1,269
section are in a total amount less than the member's accumulated 1,270
account that was transferred from the public employees' savings 1,271
fund to the survivors' benefit fund, then the difference between 1,272
the total amount of the benefits paid shall be paid to the 1,273
beneficiary under section 145.43 of the Revised Code. 1,274
31
Sec. 171.04. The Ohio retirement study council shall: 1,284
(A) Make an impartial review from time to time of all laws 1,286
governing the administration and financing of the pension and 1,287
retirement funds under Chapters 145., 146., 742., 3307., 3309., 1,288
and 5505. of the Revised Code and recommend to the general 1,289
assembly any changes it may find desirable with respect to the 1,290
allowances and benefits, sound financing of the cost of benefits, 1,291
the prudent investment of funds, and the improvement of the 1,292
language, structure, and organization of the laws; 1,293
(B) Make an annual report to the governor and to the 1,295
general assembly covering its evaluation and recommendations with 1,296
respect to the operations of the state retirement systems and 1,297
their funds; 1,298
(C) Study all changes in the retirement laws proposed to 1,300
the general assembly and report to the general assembly on their 1,301
probable costs, actuarial implications, and desirability as a 1,302
matter of public policy; 1,303
(D) REVIEW SEMIANNUALLY THE POLICIES, OBJECTIVES, AND 1,305
CRITERIA ADOPTED UNDER SECTIONS 145.11, 742.11, 3307.15, 3309.15, 1,306
AND 5505.06 OF THE REVISED CODE FOR THE OPERATION OF THE 1,307
INVESTMENT PROGRAMS OF THE STATE RETIREMENT SYSTEMS, INCLUDING A 1,308
REVIEW OF ASSET ALLOCATION TARGETS AND RANGES, RISK FACTORS,
ASSET CLASS BENCHMARKS, TIME HORIZONS, TOTAL RETURN OBJECTIVES, 1,309
RELATIVE VOLATILITY, AND PERFORMANCE EVALUATION GUIDELINES. THE
COUNCIL SHALL, NOT LATER THAN THIRTY DAYS AFTER COMPLETING A 1,310
REVIEW, SUBMIT TO THE GOVERNOR AND THE GENERAL ASSEMBLY A REPORT 1,311
SUMMARIZING ITS FINDINGS. 1,312
(E) HAVE PREPARED BY AN INDEPENDENT ACTUARY, AT LEAST ONCE 1,314
EVERY TEN YEARS, AN ACTUARIAL REVIEW OF THE ANNUAL ACTUARIAL 1,315
VALUATIONS AND QUINQUENNIAL ACTUARIAL INVESTIGATIONS PREPARED 1,316
UNDER SECTIONS 145.22, 742.14, 3307.20, 3309.21, AND 5505.12 OF 1,317
THE REVISED CODE, INCLUDING A REVIEW OF THE ACTUARIAL ASSUMPTIONS 1,319
AND METHODS, THE DATA UNDERLYING THE VALUATIONS AND 1,320
INVESTIGATIONS, AND THE ADEQUACY OF EACH SYSTEM'S EMPLOYEE AND 1,321
32
EMPLOYER CONTRIBUTION RATES TO AMORTIZE ITS UNFUNDED ACTUARIAL 1,323
PENSION LIABILITY, IF ANY, AND TO SUPPORT THE PAYMENT OF BENEFITS 1,324
AUTHORIZED BY CHAPTER 145., 742., 3307., 3309., OR 5505. OF THE 1,325
REVISED CODE. THE COUNCIL SHALL SUBMIT TO THE GOVERNOR AND THE 1,327
GENERAL ASSEMBLY A REPORT SUMMARIZING THE REVIEW. 1,328
Sec. 742.26. (A) As used in this section: 1,338
(1) "Actuarial present value" means the calculation under 1,340
which the probability of occurrence, based on a specified 1,341
mortality table, and the discount for future monetary growth at a 1,342
specified interest rate are considered by an actuary to determine 1,343
the value of an annuity. 1,344
(2) "Other system retirant" means a former member of the 1,346
public employees retirement system, state teachers retirement 1,347
system, school employees retirement system, state highway patrol 1,348
retirement system, or Cincinnati retirement system who is 1,349
receiving a disability benefit or an age and service or commuted 1,350
age and service retirement benefit or allowance from a system of 1,351
which the person is a former member. 1,352
(3) "OPFPF retirant" means any person who is receiving a 1,355
retirement allowance, other than a disability benefit, from the 1,356
Ohio police and fire pension fund. 1,357
(B) The mortality table and interest rate used in 1,359
determining actuarial present value shall be determined by the 1,360
board of trustees of the fund based on the recommendations of an 1,361
actuary employed by the board. 1,362
(C)(1) An OPFPF retirant or other system retirant may be 1,365
employed as a member of a police or fire department. If so 1,366
employed, the retirant shall make contributions to the fund in 1,368
accordance with section 742.31 of the Revised Code, and the 1,369
employer shall make contributions in accordance with sections 1,370
742.33 and 742.34 of the Revised Code. 1,371
(2) An employer that employs An OPFPF retirant or other 1,374
system retirant shall notify the board of trustees of the fund of 1,375
the employment not later than the end of the month in which the 1,376
33
employment commences. On receipt of notice from an employer that 1,377
a person who is an other system retirant has been employed, the 1,378
fund shall notify the retirement system of which the other system 1,379
retirant was a member of such employment. 1,380
(D) An OPFPF retirant or other system retirant who has 1,383
received a retirement allowance or benefit for less than two 1,384
months when employment subject to this section commences shall 1,385
forfeit the retirement allowance or benefit for the period that 1,387
begins on the date the employment commences and ends on the date
that is two months after the date on which the retirement 1,388
allowance or benefit commenced. Service and contributions for 1,389
that period shall not be included in the calculation of any 1,390
benefits payable under this section, and those contributions 1,391
shall be refunded on the retirant's death or termination of the 1,393
employment.
(E) On receipt of notice from the public employees 1,395
retirement system, school employees retirement system, or state 1,396
teachers retirement system of the re-employment of an OPFPF 1,398
retirant, the Ohio police and fire pension fund shall not pay, or 1,400
if paid shall recover, the amount to be forfeited by the OPFPF 1,401
retirant in accordance with section 145.38, 3307.381 3307.35, or 1,403
3309.341 of the Revised Code.
(F)(1)(a) On termination of employment under this section, 1,405
an OPFPF retirant or other system retirant shall elect one of the 1,407
following: 1,408
(i) A monthly annuity the actuarial present value of which 1,410
is equal to two times the sum of all amounts deducted from the 1,411
salary of the OPFPF retirant or other system retirant and 1,413
credited to the retirant's individual account in the fund, 1,414
together with interest credited thereon at the rate determined by 1,416
the board, provided the annuity equals or exceeds twenty-five 1,417
dollars per month. 1,418
(ii) A lump-sum payment equal to two times the sum of all 1,420
amounts deducted from the salary of the OPFPF retirant or other 1,422
34
system retirant and credited to the retirant's individual account 1,424
in the fund, together with interest credited thereon at the rate 1,425
determined by the board. 1,426
(b) Interest shall be credited to accounts only at the 1,428
time of calculation of a benefit payable under division (F)(1) of 1,429
this section. 1,430
(2) A benefit payable under this division shall commence 1,432
on the first day of the month immediately after the latest of the 1,433
following: 1,434
(a) The last day for which compensation for employment 1,436
subject to this section was paid; 1,437
(b) Attainment by the OPFPF retirant or other system 1,440
retirant of age sixty; 1,441
(c) If the OPFPF retirant or other system retirant was 1,444
previously employed under this section and is receiving or 1,445
previously received a benefit under this division, completion of 1,446
a period of twelve months since the last benefit paid under this 1,447
section commenced. 1,448
(3) No amount received under this division shall be 1,450
included in determining an additional benefit under section 1,451
742.3711, 742.3716, or 742.3717 of the Revised Code or any other 1,452
post-retirement benefit increase. 1,453
(G)(1) If an OPFPF retirant or other system retirant dies 1,456
while employed in employment subject to this section, a lump-sum 1,457
payment calculated in accordance with division (F)(1)(a)(ii) of 1,458
this section shall be paid to the retirant's surviving spouse, or 1,460
if there is no surviving spouse, to the retirant's estate. 1,461
(2) If at the time of death an OPFPF retirant or other 1,464
system retirant receiving a monthly annuity under division 1,465
(F)(1)(a)(i) of this section has received less than would have 1,466
been received as a lump-sum payment under division (F)(1)(a)(ii) 1,467
of this section, the difference between the amount received and 1,469
the amount that would have been received as a lump-sum payment 1,472
shall be paid to the retirant's surviving spouse, or if there is 1,473
35
no surviving spouse, to the retirant's estate.
(H) An other system retirant subject to this section is 1,475
not a member of the Ohio police and fire pension fund, does not 1,477
have any of the rights, privileges, or obligations of membership, 1,478
except as specified in this section, and is not eligible to 1,479
receive health, medical, hospital, or surgical benefits under 1,480
section 742.45 of the Revised Code for employment subject to this 1,481
section.
(I) If any payment is made by the Ohio police and fire 1,484
pension fund to an OPFPF retirant or other system retirant to 1,486
which the retirant is not entitled, the retirant shall repay it 1,488
to the fund. If the retirant fails to make the repayment, the 1,489
fund shall withhold the amount due from any allowances or other 1,490
amounts due the OPFPF retirant or other system retirant. 1,491
(J) An OPFPF retirant who is employed under this section 1,495
is not eligible to receive any benefits under section 742.37 of 1,496
the Revised Code for the employment under this section. 1,497
(K) This section does not affect the receipt of benefits 1,499
by or eligibility for benefits of any person who on August 20, 1,500
1976, was receiving a disability benefit or service retirement 1,501
pension or allowance from a state or municipal retirement system 1,502
in Ohio and was a member of any other state or municipal 1,503
retirement system of this state. 1,504
(L) The board of trustees of the fund may adopt rules to 1,506
carry out this section. 1,507
Sec. 742.379. (A) As used in this section: 1,516
(1) "Full-time service" has the meaning established by 1,518
rule of the board of trustees of the Ohio police and fire pension 1,520
fund.
(2) "Qualified contributions" means contributions to the 1,522
public employees retirement system, school employees retirement 1,523
system, or state teachers retirement system attributable to 1,524
full-time service or purchase of credit for service in the armed 1,525
forces of the United States. 1,526
36
(B) In computing the pension and benefits payable under 1,528
section 742.37 or 742.39 of the Revised Code, the Ohio police and 1,530
fire pension fund shall give a member of the fund who is in the 1,531
active service of a police or fire department and is not 1,532
receiving a pension or benefit payment from the fund full credit 1,533
for service credit earned for full-time service as a member of 1,534
the Cincinnati retirement system or purchased from the retirement 1,535
system for service in the armed forces of the United States if, 1,537
for each year of service credit, the fund receives the sum of the 1,539
following:
(1) An amount, which shall be paid by the member, equal to 1,541
the amount withdrawn by the member from the retirement system 1,543
that is attributable to the year of service credit, with interest 1,544
on that amount from the date of withdrawal to the date of 1,546
payment;
(2) Interest, which shall be paid either by the member or 1,549
the retirement system, on the amount withdrawn by the member from 1,550
the retirement system that is attributable to the year of service
from the last day of the year for which the service credit was 1,552
earned or in which military service credit was purchased or 1,553
obtained to the date the withdrawal was made; 1,554
(3) An amount, which shall be paid by either the member or 1,557
the retirement system, equal to the lesser of the amount
contributed by the employer to the retirement system for the year 1,559
of service or the amount that would have been contributed by the 1,560
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 1,562
department, with interest on that amount from the last day of the 1,563
year for which the service credit was earned or in which military 1,564
service was purchased or obtained to the date the payment is 1,565
made;
(4) If the member became a member of the fund on or after 1,567
September 16, 1998, the amount, which shall be paid by the 1,570
member, determined pursuant to division (I) of this section. 1,571
37
Interest shall be determined in accordance with division 1,573
(H) of this section. 1,574
(C) In computing the pension and benefits payable under 1,577
section 742.37 or 742.39 of the Revised Code, the fund shall give 1,578
a member of the fund who is in the active service of a police or 1,580
fire department, is not receiving a pension or benefit payment 1,581
from the fund, and has withdrawn the member's contributions from 1,582
the public employees retirement system, school employees 1,583
retirement system, or state teachers retirement system full 1,584
credit for service credit earned for full-time service as a 1,585
member of the public employees retirement system, school 1,586
employees retirement system, or state teachers retirement system 1,587
or purchased from one of those retirement systems for service in 1,588
the armed forces of the United States if, for each year of 1,589
service, the fund receives the sum of the following: 1,591
(1) An amount, which shall be paid by the member, equal to 1,594
the amount withdrawn by the member from the former retirement 1,596
system that is attributable to that year of service credit, with 1,598
interest on that amount from the date of withdrawal to the date 1,599
of payment;
(2) Interest, which shall be transferred by the former 1,602
retirement system, on the amount withdrawn by the member from the 1,603
retirement system that is attributable to the year of service
from the last day of the year for which the service credit was 1,604
earned or in which military service credit was purchased or 1,605
obtained to the date the withdrawal was made; 1,606
(3) An amount, which shall be transferred by the former 1,609
retirement system, equal to the lesser of the amount contributed 1,610
by the employer to the retirement system for the year of service 1,611
or the amount that would have been contributed by the employer 1,612
for the year of service had the member been employed by the 1,613
member's current employer as a member of a police or fire 1,614
department, with interest on the amount transferred from the last 1,615
day of the year for which the service credit was earned or in 1,616
38
which military service credit was purchased or obtained to the 1,618
date the transfer is made;
(4) If the member became a member of the fund on or after 1,621
September 16, 1998, the amount, which shall be paid by the 1,623
member, determined pursuant to division (I) of this section. 1,624
On receipt of payment from the member, the fund shall 1,626
notify the former retirement system, and on receipt of the 1,627
notice, the retirement system shall make the transfer. Interest 1,628
shall be determined in accordance with division (H) of this 1,630
section.
(D) In computing the pension and benefits payable under 1,632
section 742.37 or 742.39 of the Revised Code, the fund shall give 1,634
a member of the fund who is in the active service of a police or 1,635
fire department, is not receiving a pension or benefit from the 1,636
fund, and has contributions on deposit with the public employees 1,637
retirement system, school employees retirement system, or state 1,638
teachers retirement system full credit for service credit earned 1,639
for full-time service as a member of one of those retirement 1,640
systems or purchased from one of the retirement systems for 1,641
service in the armed forces of the United States if both of the 1,643
following occur: 1,644
(1) The retirement system transfers to the fund, for each 1,647
year of service, the sum of the following: 1,648
(a) An amount equal to the member's qualified 1,651
contributions;
(b) An amount equal to the lesser of the employer's 1,654
qualified contributions to the retirement system or the amount 1,655
that would have been contributed by the employer for the 1,656
full-time service had the member been employed by the member's 1,657
current employer as a member of a police or fire department; 1,658
(c) Interest on the amounts specified in divisions 1,660
(D)(1)(a) and (b) of this section from the last day of the year 1,662
for which the service credit was earned or in which military 1,663
service credit was purchased or obtained to the date the transfer 1,664
39
is made. 1,665
(2) If the member became a member of the fund on or after 1,668
September 16, 1998, the member pays the amount determined 1,670
pursuant to division (I) of this section. 1,671
On receipt of a request from the member, the appropriate 1,674
retirement system shall make the transfer specified in division 1,675
(D)(1) of this section. Interest shall be determined in 1,676
accordance with division (H) of this section. 1,677
(E) Subject to board rules, a member of the fund may 1,679
choose to purchase in any one payment only part of the credit the 1,680
member is eligible to purchase under division (B) or (C)(1) of 1,682
this section. 1,683
(F) At the request of the fund, the public employees 1,685
retirement system, school employees retirement system, state 1,686
teachers retirement system, or Cincinnati retirement system shall 1,687
certify to the fund a copy of the records of the service and 1,689
contributions of a member of the fund who seeks service credit 1,690
under this section. 1,691
(G) A member of the fund is ineligible to receive credit 1,694
under this section for service that is used in the calculation of 1,695
any retirement benefit currently being paid or payable in the 1,696
future to the member, or service rendered concurrently with any 1,697
other period for which service credit has already been granted. 1,698
(H) Interest charged under this section shall be 1,701
calculated separately for each year of service credit at the 1,702
lesser of the actuarial assumption rate for that year of the fund 1,703
or of the retirement system in which the credit was earned. The 1,704
interest shall be compounded annually. 1,705
The board may, by rule, establish procedures for the 1,707
receipt of service credit under this section. 1,708
(I) The amount to be paid pursuant to division (B)(4), 1,711
(C)(4), or (D)(2) of this section is the sum of the following: 1,712
(1) An amount equal to the difference between the amount 1,715
the member paid as employee contributions for the service and the 1,716
40
amount the member would have paid had the member been employed by 1,717
the member's current employer as a member of a police or fire 1,718
department;
(2) An amount equal to the difference between the amount 1,721
paid or transferred under division (B)(3), (C)(3), or (D)(1)(b) 1,722
of this section and the amount that would have been contributed 1,723
by the employer for the service had the member been employed by 1,724
the member's current employer as a member of a police or fire 1,726
department;
(3) Interest, determined in accordance with division (H) 1,729
of this section, on the amounts specified in divisions (I)(1) and 1,731
(2) of this section.
At the request of a member, in lieu of requiring payment of 1,734
all or part of the amount determined under this division the fund 1,735
may grant the member an amount of service credit under division 1,736
(B), (C), or (D) of this section that is less than the amount for 1,738
which the member is eligible. The service credit granted shall 1,739
be the same percentage of the service credit for which the member 1,740
is eligible that the amount the fund receives under division (B), 1,741
(C), or (D) of this section is of the total amount it would 1,743
receive under those divisions if the full amount determined under 1,744
this division was paid.
(J)(1) Except as provided in division (J)(2) of this 1,747
section and notwithstanding any contrary provision of this
section, the board shall, in computing a pension or benefit under 1,749
section 742.37 or 742.39 of the Revised Code, give a member of 1,750
the fund who is not receiving a pension or disability benefit 1,751
from the fund full credit for service credit purchased under this 1,752
section for service that was less than full-time service if the 1,753
member provides evidence satisfactory to the board that, after 1,754
receiving written notice from the fund indicating that the member 1,756
would be permitted to purchase service credit for service that
was less than full-time, the member changed or ceased the 1,757
member's employment with the understanding that the credit 1,758
41
identified in the notice would be used in computing a pension or 1,759
benefit. If the board has canceled service credit purchased 1,761
under this section for service that was less than full-time 1,762
service and the member meets the requirements of division (J)(1) 1,763
of this section, the board shall restore the service credit on 1,764
repayment to the fund of the amount refunded to the member at the 1,766
time of cancellation.
(2) If a member of the fund who is not receiving a pension 1,769
or disability benefit from the fund purchased credit under this 1,770
section for service that was less than full-time service and does 1,771
not meet the requirements of division (J)(1) of this section, the 1,772
board shall refund to the member any amounts paid to purchase the 1,774
credit, with interest at a rate determined by the board from the 1,775
date the member purchased the credit to the date of the refund. 1,776
(K) A member of the fund who has purchased service credit 1,778
under this section, or the member's estate, is entitled to a 1,779
refund of the amount or portion of the amount paid to purchase 1,780
the credit if the purchased credit or portion of credit does not 1,781
increase a pension or benefit payable under section 742.37 or 1,782
742.39 of the Revised Code. The refund cancels an equivalent 1,783
amount of service credit. 1,784
(L) If a member or former member of the fund who is not a 1,786
current contributor and has not received a refund of accumulated 1,788
contributions elects to receive credit under section 145.295, 1,789
3307.412 3307.761, or 3309.351 of the Revised Code for service 1,790
for which the member contributed to the fund or purchased credit 1,791
for service in the armed forces of the United States, the fund 1,792
shall transfer to the public employees retirement system, school 1,794
employees retirement system, or state teachers retirement system 1,795
the amount specified in division (A) of section 145.295 of the 1,796
Revised Code, division (A) of section 3307.412 3307.761 of the 1,797
Revised Code, or division (A) of section 3309.351 of the Revised 1,799
Code.
(M) The board shall adopt rules establishing a payroll 1,802
42
deduction plan for the purchase of service credit under this 1,803
section. The rules shall meet the requirements described in
section 742.56 of the Revised Code. 1,805
Sec. 742.3721. THE BOARD OF TRUSTEES OF THE OHIO POLICE 1,807
AND FIRE PENSION FUND MAY ESTABLISH AND MAINTAIN A QUALIFIED 1,808
GOVERNMENTAL EXCESS BENEFIT ARRANGEMENT THAT MEETS THE
REQUIREMENTS OF DIVISION (m) OF SECTION 415 OF THE "INTERNAL 1,809
REVENUE CODE OF 1986," 100 STAT. 2085, 26 U.S.C.A. 415, AS 1,812
AMENDED, AND ANY REGULATIONS ADOPTED THEREUNDER. IF ESTABLISHED, 1,813
THE ARRANGEMENT SHALL BE A SEPARATE PORTION OF THE FUND AND BE 1,814
MAINTAINED SOLELY FOR THE PURPOSE OF PROVIDING TO RETIRED MEMBERS 1,815
THAT PART OF A BENEFIT OTHERWISE PAYABLE UNDER THIS CHAPTER THAT 1,816
EXCEEDS THE LIMITS ESTABLISHED BY SECTION 415 OF THE "INTERNAL 1,817
REVENUE CODE OF 1986," AS AMENDED.
MEMBERS PARTICIPATING IN AN ARRANGEMENT ESTABLISHED UNDER 1,819
THIS SECTION SHALL NOT BE PERMITTED TO ELECT TO DEFER 1,820
COMPENSATION TO THE ARRANGEMENT. CONTRIBUTIONS TO AND BENEFITS 1,821
PAID UNDER AN ARRANGEMENT SHALL NOT BE PAYABLE FROM A TRUST THAT 1,822
IS PART OF THE FUND UNLESS THE TRUST IS MAINTAINED SOLELY FOR THE 1,823
PURPOSE OF PROVIDING SUCH BENEFITS. 1,824
THE BOARD SHALL ADOPT RULES TO ADMINISTER AN ARRANGEMENT 1,826
ESTABLISHED UNDER THIS SECTION. 1,827
Sec. 2329.66. (A) Every person who is domiciled in this 1,836
state may hold property exempt from execution, garnishment, 1,837
attachment, or sale to satisfy a judgment or order, as follows: 1,838
(1)(a) In the case of a judgment or order regarding money 1,840
owed for health care services rendered or health care supplies 1,841
provided to the person or a dependent of the person, one parcel 1,842
or item of real or personal property that the person or a 1,843
dependent of the person uses as a residence. Division (A)(1)(a) 1,844
of this section does not preclude, affect, or invalidate the 1,845
creation under this chapter of a judgment lien upon the exempted 1,846
property but only delays the enforcement of the lien until the 1,847
property is sold or otherwise transferred by the owner or in 1,848
43
accordance with other applicable laws to a person or entity other 1,849
than the surviving spouse or surviving minor children of the 1,850
judgment debtor. Every person who is domiciled in this state may 1,851
hold exempt from a judgment lien created pursuant to division 1,852
(A)(1)(a) of this section the person's interest, not to exceed 1,853
five thousand dollars, in the exempted property. 1,854
(b) In the case of all other judgments and orders, the 1,856
person's interest, not to exceed five thousand dollars, in one 1,857
parcel or item of real or personal property that the person or a 1,858
dependent of the person uses as a residence. 1,859
(2) The person's interest, not to exceed one thousand 1,861
dollars, in one motor vehicle; 1,862
(3) The person's interest, not to exceed two hundred 1,864
dollars in any particular item, in wearing apparel, beds, and 1,865
bedding, and the person's interest, not to exceed three hundred 1,866
dollars in each item, in one cooking unit and one refrigerator or 1,867
other food preservation unit; 1,868
(4)(a) The person's interest, not to exceed four hundred 1,870
dollars, in cash on hand, money due and payable, money to become 1,871
due within ninety days, tax refunds, and money on deposit with a 1,872
bank, savings and loan association, credit union, public utility, 1,873
landlord, or other person. Division (A)(4)(a) of this section 1,874
applies only in bankruptcy proceedings. This exemption may 1,875
include the portion of personal earnings that is not exempt under 1,876
division (A)(13) of this section. 1,877
(b) Subject to division (A)(4)(d) of this section, the 1,879
person's interest, not to exceed two hundred dollars in any 1,880
particular item, in household furnishings, household goods, 1,881
appliances, books, animals, crops, musical instruments, firearms, 1,882
and hunting and fishing equipment, that are held primarily for 1,883
the personal, family, or household use of the person; 1,884
(c) Subject to division (A)(4)(d) of this section, the 1,886
person's interest in one or more items of jewelry, not to exceed 1,887
four hundred dollars in one item of jewelry and not to exceed two 1,888
44
hundred dollars in every other item of jewelry; 1,889
(d) Divisions (A)(4)(b) and (c) of this section do not 1,891
include items of personal property listed in division (A)(3) of 1,892
this section. 1,893
If the person does not claim an exemption under division 1,895
(A)(1) of this section, the total exemption claimed under 1,896
division (A)(4)(b) of this section shall be added to the total 1,897
exemption claimed under division (A)(4)(c) of this section, and 1,898
the total shall not exceed two thousand dollars. If the person 1,899
claims an exemption under division (A)(1) of this section, the 1,900
total exemption claimed under division (A)(4)(b) of this section 1,901
shall be added to the total exemption claimed under division 1,902
(A)(4)(c) of this section, and the total shall not exceed one 1,903
thousand five hundred dollars. 1,904
(5) The person's interest, not to exceed an aggregate of 1,906
seven hundred fifty dollars, in all implements, professional 1,907
books, or tools of the person's profession, trade, or business, 1,908
including agriculture; 1,910
(6)(a) The person's interest in a beneficiary fund set 1,912
apart, appropriated, or paid by a benevolent association or 1,913
society, as exempted by section 2329.63 of the Revised Code; 1,914
(b) The person's interest in contracts of life or 1,916
endowment insurance or annuities, as exempted by section 3911.10 1,917
of the Revised Code; 1,918
(c) The person's interest in a policy of group insurance 1,920
or the proceeds of a policy of group insurance, as exempted by 1,921
section 3917.05 of the Revised Code; 1,922
(d) The person's interest in money, benefits, charity, 1,924
relief, or aid to be paid, provided, or rendered by a fraternal 1,925
benefit society, as exempted by section 3921.18 of the Revised 1,926
Code; 1,927
(e) The person's interest in the portion of benefits under 1,929
policies of sickness and accident insurance and in lump-sum 1,930
payments for dismemberment and other losses insured under those 1,931
45
policies, as exempted by section 3923.19 of the Revised Code. 1,932
(7) The person's professionally prescribed or medically 1,934
necessary health aids; 1,935
(8) The person's interest in a burial lot, including, but 1,937
not limited to, exemptions under section 517.09 or 1721.07 of the 1,938
Revised Code; 1,939
(9) The person's interest in the following: 1,941
(a) Moneys paid or payable for living maintenance or 1,943
rights, as exempted by section 3304.19 of the Revised Code; 1,944
(b) Workers' compensation, as exempted by section 4123.67 1,947
of the Revised Code; 1,948
(c) Unemployment compensation benefits, as exempted by 1,950
section 4141.32 of the Revised Code; 1,951
(d) Cash assistance payments under the Ohio works first 1,953
program, as exempted by section 5107.75 of the Revised Code; 1,955
(e) Disability assistance payments, as exempted by section 1,957
5115.07 of the Revised Code. 1,958
(10)(a) Except in cases in which the person was convicted 1,960
of or pleaded guilty to a violation of section 2921.41 of the 1,961
Revised Code and in which an order for the withholding of 1,962
restitution from payments was issued under division (C)(2)(b) of 1,963
that section or in cases in which an order for withholding was 1,964
issued under section 2907.15 of the Revised Code, and only to the 1,965
extent provided in the order, and except as provided in sections 1,969
3105.171, 3105.63, 3111.23, and 3113.21 of the Revised Code, the 1,971
person's right to a pension, benefit, annuity, retirement 1,972
allowance, or accumulated contributions, the person's right to a 1,973
participant account in any deferred compensation program offered 1,974
by the Ohio public employees deferred compensation board, a 1,975
government unit, or a municipal corporation, or the person's 1,976
other accrued or accruing rights, as exempted by section 145.56, 1,977
145.75, 146.13, 742.47, 3307.71 3307.41, 3309.66, or 5505.22 of 1,978
the Revised Code, and the person's right to benefits from the 1,980
Ohio public safety officers death benefit fund; 1,982
46
(b) Except as provided in sections 3111.23 and 3113.21 of 1,985
the Revised Code, the person's right to receive a payment under 1,986
any pension, annuity, or similar plan or contract, not including 1,987
a payment from a stock bonus or profit-sharing plan or a payment 1,988
included in division (A)(6)(b) or (10)(a) of this section, on 1,989
account of illness, disability, death, age, or length of service, 1,990
to the extent reasonably necessary for the support of the person 1,991
and any of the person's dependents, except if all the following 1,992
apply: 1,993
(i) The plan or contract was established by or under the 1,995
auspices of an insider that employed the person at the time the 1,996
person's rights under the plan or contract arose. 1,997
(ii) The payment is on account of age or length of 1,999
service. 2,000
(iii) The plan or contract is not qualified under the 2,002
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C. 1, as 2,003
amended. 2,004
(c) Except for any portion of the assets that were 2,006
deposited for the purpose of evading the payment of any debt and 2,007
except as provided in sections 3111.23 and 3113.21 of the Revised 2,009
Code, the person's right in the assets held in, or to receive any 2,011
payment under, any individual retirement account, individual 2,012
retirement annuity, "Roth IRA," or education individual 2,013
retirement account that provides benefits by reason of illness, 2,015
disability, death, or age, to the extent that the assets, 2,016
payments, or benefits described in division (A)(10)(c) of this 2,017
section are attributable to any of the following: 2,018
(i) Contributions of the person that were less than or 2,021
equal to the applicable limits on deductible contributions to an 2,022
individual retirement account or individual retirement annuity in 2,023
the year that the contributions were made, whether or not the 2,024
person was eligible to deduct the contributions on the person's 2,025
federal tax return for the year in which the contributions were 2,026
made;
47
(ii) Contributions of the person that were less than or 2,029
equal to the applicable limits on contributions to a Roth IRA or 2,030
education individual retirement account in the year that the 2,031
contributions were made;
(iii) Contributions of the person that are within the 2,034
applicable limits on rollover contributions under subsections 2,035
219, 402(c), 403(a)(4), 403(b)(8), 408(b), 408(d)(3), 2,036
408A(c)(3)(B), 408A(d)(3), and 530(d)(5) of the "Internal Revenue 2,039
Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended. 2,041
(d) Except for any portion of the assets that were 2,044
deposited for the purpose of evading the payment of any debt and 2,045
except as provided in sections 3111.23 and 3113.21 of the Revised 2,046
Code, the person's right in the assets held in, or to receive any 2,047
payment under, any Keogh or "H.R. 10" plan that provides benefits 2,048
by reason of illness, disability, death, or age, to the extent 2,049
reasonably necessary for the support of the person and any of the 2,050
person's dependents. 2,051
(11) The person's right to receive spousal support, child 2,053
support, an allowance, or other maintenance to the extent 2,054
reasonably necessary for the support of the person and any of the 2,055
person's dependents; 2,057
(12) The person's right to receive, or moneys received 2,059
during the preceding twelve calendar months from, any of the 2,060
following: 2,061
(a) An award of reparations under sections 2743.51 to 2,063
2743.72 of the Revised Code, to the extent exempted by division 2,064
(D) of section 2743.66 of the Revised Code; 2,065
(b) A payment on account of the wrongful death of an 2,067
individual of whom the person was a dependent on the date of the 2,068
individual's death, to the extent reasonably necessary for the 2,069
support of the person and any of the person's dependents; 2,070
(c) Except in cases in which the person who receives the 2,072
payment is an inmate, as defined in section 2969.21 of the 2,073
Revised Code, and in which the payment resulted from a civil 2,074
48
action or appeal against a government entity or employee, as 2,075
defined in section 2969.21 of the Revised Code, a payment, not to
exceed five thousand dollars, on account of personal bodily 2,077
injury, not including pain and suffering or compensation for 2,078
actual pecuniary loss, of the person or an individual for whom 2,079
the person is a dependent;
(d) A payment in compensation for loss of future earnings 2,081
of the person or an individual of whom the person is or was a 2,082
dependent, to the extent reasonably necessary for the support of 2,083
the debtor and any of the debtor's dependents. 2,084
(13) Except as provided in sections 3111.23 and 3113.21 of 2,087
the Revised Code, personal earnings of the person owed to the
person for services in an amount equal to the greater of the 2,088
following amounts: 2,089
(a) If paid weekly, thirty times the current federal 2,091
minimum hourly wage; if paid biweekly, sixty times the current 2,092
federal minimum hourly wage; if paid semimonthly, sixty-five 2,093
times the current federal minimum hourly wage; or if paid 2,094
monthly, one hundred thirty times the current federal minimum 2,095
hourly wage that is in effect at the time the earnings are 2,096
payable, as prescribed by the "Fair Labor Standards Act of 1938," 2,097
52 Stat. 1060, 29 U.S.C. 206(a)(1), as amended; 2,098
(b) Seventy-five per cent of the disposable earnings owed 2,100
to the person. 2,101
(14) The person's right in specific partnership property, 2,103
as exempted by division (B)(3) of section 1775.24 of the Revised 2,104
Code; 2,105
(15) A seal and official register of a notary public, as 2,107
exempted by section 147.04 of the Revised Code; 2,108
(16) The person's interest in a tuition credit or a 2,110
payment under section 3334.09 of the Revised Code pursuant to a 2,111
tuition credit contract, as exempted by section 3334.15 of the 2,112
Revised Code;
(17) Any other property that is specifically exempted from 2,114
49
execution, attachment, garnishment, or sale by federal statutes 2,115
other than the "Bankruptcy Reform Act of 1978," 92 Stat. 2549, 11 2,116
U.S.C.A. 101, as amended; 2,117
(18) The person's interest, not to exceed four hundred 2,119
dollars, in any property, except that division (A)(18) of this 2,120
section applies only in bankruptcy proceedings. 2,121
(B) As used in this section: 2,123
(1) "Disposable earnings" means net earnings after the 2,125
garnishee has made deductions required by law, excluding the 2,126
deductions ordered pursuant to section 3111.23 or 3113.21 of the 2,128
Revised Code. 2,129
(2) "Insider" means: 2,131
(a) If the person who claims an exemption is an 2,133
individual, a relative of the individual, a relative of a general 2,134
partner of the individual, a partnership in which the individual 2,135
is a general partner, a general partner of the individual, or a 2,136
corporation of which the individual is a director, officer, or in 2,137
control; 2,138
(b) If the person who claims an exemption is a 2,140
corporation, a director or officer of the corporation; a person 2,141
in control of the corporation; a partnership in which the 2,142
corporation is a general partner; a general partner of the 2,143
corporation; or a relative of a general partner, director, 2,144
officer, or person in control of the corporation; 2,145
(c) If the person who claims an exemption is a 2,147
partnership, a general partner in the partnership; a general 2,148
partner of the partnership; a person in control of the 2,149
partnership; a partnership in which the partnership is a general 2,150
partner; or a relative in, a general partner of, or a person in 2,151
control of the partnership; 2,152
(d) An entity or person to which or whom any of the 2,154
following applies: 2,155
(i) The entity directly or indirectly owns, controls, or 2,157
holds with power to vote, twenty per cent or more of the 2,158
50
outstanding voting securities of the person who claims an 2,159
exemption, unless the entity holds the securities in a fiduciary 2,160
or agency capacity without sole discretionary power to vote the 2,161
securities or holds the securities solely to secure to debt and 2,162
the entity has not in fact exercised the power to vote. 2,163
(ii) The entity is a corporation, twenty per cent or more 2,165
of whose outstanding voting securities are directly or indirectly 2,166
owned, controlled, or held with power to vote, by the person who 2,167
claims an exemption or by an entity to which division 2,168
(B)(2)(d)(i) of this section applies. 2,169
(iii) A person whose business is operated under a lease or 2,171
operating agreement by the person who claims an exemption, or a 2,172
person substantially all of whose business is operated under an 2,173
operating agreement with the person who claims an exemption. 2,174
(iv) The entity operates the business or all or 2,176
substantially all of the property of the person who claims an 2,177
exemption under a lease or operating agreement. 2,178
(e) An insider, as otherwise defined in this section, of a 2,180
person or entity to which division (B)(2)(d)(i), (ii), (iii), or 2,181
(iv) of this section applies, as if the person or entity were a 2,182
person who claims an exemption; 2,183
(f) A managing agent of the person who claims an 2,185
exemption. 2,186
(3) "Participant account" has the same meaning as in 2,188
section 145.71 of the Revised Code. 2,189
(4) "Government unit" has the same meaning as in section 2,191
145.74 of the Revised Code. 2,192
(C) For purposes of this section, "interest" shall be 2,194
determined as follows: 2,195
(1) In bankruptcy proceedings, as of the date a petition 2,197
is filed with the bankruptcy court commencing a case under Title 2,198
11 of the United States Code; 2,199
(2) In all cases other than bankruptcy proceedings, as of 2,201
the date of an appraisal, if necessary under section 2329.68 of 2,202
51
the Revised Code, or the issuance of a writ of execution. 2,203
An interest, as determined under division (C)(1) or (2) of 2,205
this section, shall not include the amount of any lien otherwise 2,206
valid pursuant to section 2329.661 of the Revised Code. 2,207
Sec. 3305.01. As used in this chapter: 2,216
(A) "Public institution of higher education" means a state 2,219
university as defined in section 3345.011 of the Revised Code, 2,220
the medical college of Ohio at Toledo, the northeastern Ohio 2,221
universities college of medicine, or a university branch, 2,222
technical college, state community college, community college, or 2,223
municipal university established or operating under Chapter 2,224
3345., 3349., 3355., 3357., or 3358. of the Revised Code. 2,225
(B) "State retirement system" means the public employees 2,228
retirement system created under Chapter 145. of the Revised Code, 2,229
the state teachers retirement system created under Chapter 3307. 2,231
of the Revised Code, or the school employees retirement system 2,233
created under Chapter 3309. of the Revised Code. 2,234
(C) "Academic or administrative employee" means any 2,237
full-time employee who is a member of the faculty or 2,238
administrative staff of a public institution of higher education 2,239
serving in a position in the unclassified civil service pursuant 2,240
to section 124.11 of the Revised Code and is not receiving any 2,241
benefit, allowance, or other payment from a state retirement 2,242
system. In all cases of doubt, the board of trustees of the 2,243
public institution of higher education shall determine whether 2,244
any person is an academic or administrative employee for purposes 2,246
of this chapter, and the board's decision shall be final. 2,247
(D) "Electing employee" means any academic or 2,249
administrative employee who elects, pursuant to section 3305.05 2,250
of the Revised Code, to participate in an alternative retirement 2,251
plan provided pursuant to this chapter.
(E) An electing employee is "continuously employed" if no 2,253
more than one year intervenes between each period of employment 2,255
by a public institution of higher education in a position for 2,256
52
which three or more alternative retirement plans are available 2,257
under this chapter.
(F) "Compensation," for purposes of an electing employee, 2,259
has the same meaning as the applicable one of the following: 2,260
(1) If the electing employee would be subject to Chapter 2,262
145. of the Revised Code had the employee not made an election 2,263
pursuant to section 3305.05 of the Revised Code, "earnable 2,265
salary" as defined in division (R) of section 145.01 of the
Revised Code; 2,266
(2) If the electing employee would be subject to Chapter 2,268
3307. of the Revised Code had the employee not made an election 2,269
pursuant to section 3305.05 of the Revised Code, "compensation" 2,271
as defined in division (U)(L) of section 3307.01 of the Revised 2,272
Code; 2,273
(3) If the electing employee would be subject to Chapter 2,275
3309. of the Revised Code had the employee not made an election 2,276
pursuant to section 3305.05 of the Revised Code, "compensation" 2,278
as defined in division (V) of section 3309.01 of the Revised
Code. 2,279
Sec. 3305.06. (A) Each electing employee shall contribute 2,288
an amount, which shall be a certain percentage of the employee's 2,289
compensation, to the alternative retirement plan in which the 2,290
employee participates. This percentage shall be the percentage 2,291
the electing employee would have otherwise been required to 2,292
contribute to the state retirement system that applies to the
employee's position, except that the percentage shall not be less 2,293
than three per cent. Employee contributions under this division 2,294
may be treated as employer contributions in accordance with 2,295
Internal Revenue Code 414(h). 2,296
(B) Each public institution of higher education employing 2,298
an electing employee shall contribute an amount, which shall be a 2,299
certain percentage of the employee's compensation, to the 2,300
alternative retirement plan the employee has elected. This 2,301
percentage shall be determined by the board of trustees of the 2,302
53
public institution.
(C)(1) In no event shall the amount contributed by the 2,305
electing employee pursuant to division (A) of this section and on 2,306
the electing employee's behalf pursuant to division (B) of this
section be less than the amount necessary to qualify the plan as 2,307
a state retirement system pursuant to Internal Revenue Code 2,308
3121(B)(7) and the regulations adopted thereunder. 2,309
(2) The full amount of the electing employee's 2,311
contribution under division (A) of this section and the full 2,312
amount of the employer's contribution made on behalf of that 2,313
employee under division (B) of this section shall be paid to the 2,314
entity providing the employee's alternative retirement plan for 2,315
application to that plan in accordance with any contract the 2,316
electing employee has entered into for purposes of that plan. In
no event shall any benefits be paid under that plan prior to the 2,317
time an electing employee ceases to be continuously employed. 2,318
(D) An electing employee may make voluntary deposits to 2,320
the employee's alternative retirement plan in addition to the 2,321
employee contribution required under division (A) of this 2,323
section.
(E) Each public institution of higher education employing 2,325
an electing employee shall contribute on behalf of that employee 2,326
to the state retirement system that otherwise applies to the 2,327
electing employee's position an amount equal to six per cent of 2,328
the electing employee's compensation to mitigate any negative 2,329
financial impact of the alternative retirement program on the 2,331
state retirement system; provided that on the first day of July
following the first year after the department of insurance 2,333
designates an alternative retirement plan under section 3305.03 2,334
of the Revised Code and every third year thereafter, the Ohio
retirement study council shall cause an independent actuarial 2,337
study to be completed and submitted to the Ohio board of regents. 2,338
The study shall determine any adjustments in contributions
necessary to reflect any change in the level of the negative 2,339
54
financial impact resulting from the establishment of the 2,340
alternative retirement program. The amount contributed to the 2,342
state retirement system pursuant to this division shall be
increased or decreased to reflect the amount needed to mitigate 2,343
the negative financial impact, if any, on the system, as 2,344
determined by each actuarial study. Any increase or decrease in 2,345
contributions shall become effective on the first day of July in 2,346
the year in which the actuarial study is completed. 2,347
Contributions on behalf of an electing employee shall continue in 2,348
accordance with this division until the occurrence of the 2,349
following:
(1) If the electing employee would be subject to Chapter 2,351
145. of the Revised Code had the employee not made an election 2,352
pursuant to section 3305.05 of the Revised Code, until the 2,354
unfunded actuarial accrued liability for all benefits, except 2,356
health care benefits provided under section 145.325 or 145.58 of 2,357
the Revised Code, is fully amortized, as determined by the annual 2,358
actuarial valuation prepared under section 145.22 of the Revised 2,359
Code;
(2) If the electing employee would be subject to Chapter 2,361
3307. of the Revised Code had the employee not made an election 2,362
pursuant to section 3305.05 of the Revised Code, until the 2,363
unfunded actuarial accrued liability for all benefits, except 2,364
health care benefits provided under section 3307.405 3307.39 or 2,365
3307.74 3307.61 of the Revised Code, is fully amortized, as 2,367
determined by the annual actuarial valuation prepared under
section 3307.20 3307.51 of the Revised Code; 2,368
(3) If the electing employee would be subject to Chapter 2,370
3309. of the Revised Code had the employee not made an election 2,371
pursuant to section 3305.05 of the Revised Code, until the 2,372
unfunded actuarial accrued liability for all benefits, except 2,373
health care benefits provided under section 3309.375 or 3309.69 2,374
of the Revised Code, is fully amortized, as determined by the 2,375
annual actuarial valuation prepared under section 3309.21 of the 2,376
55
Revised Code.
Sec. 3307.01. As used in this chapter: 2,385
(A) "Employer" means the board of education, school 2,387
district, governing authority of any community school established 2,388
under Chapter 3314. of the Revised Code, college, university, 2,389
institution, or other agency within the state by which a teacher 2,391
is employed and paid.
(B) "Teacher" means any ALL OF THE FOLLOWING: 2,393
(1) ANY person paid from public funds and employed in the 2,396
public schools of the state under any type of contract described 2,397
in section 3319.08 of the Revised Code in a position for which 2,398
the person is required to have a license issued pursuant to 2,400
sections 3319.22 to 3319.31 of the Revised Code; any
(2) ANY person employed as a teacher by a community school 2,403
pursuant to Chapter 3314. of the Revised Code; and any 2,405
(3) ANY PERSON HOLDING AN INTERNSHIP CERTIFICATE ISSUED 2,408
UNDER SECTION 3319.28 OF THE REVISED CODE AND EMPLOYED IN A 2,410
PUBLIC SCHOOL IN THIS STATE;
(4) ANY PERSON HAVING A LICENSE ISSUED PURSUANT TO 2,413
SECTIONS 3319.22 TO 3319.31 OF THE REVISED CODE AND EMPLOYED IN A 2,414
PUBLIC SCHOOL IN THIS STATE IN AN EDUCATIONAL POSITION, AS 2,416
DETERMINED BY THE STATE BOARD OF EDUCATION, UNDER PROGRAMS
PROVIDED FOR BY FEDERAL ACTS OR REGULATIONS AND FINANCED IN WHOLE 2,417
OR IN PART FROM FEDERAL FUNDS, BUT FOR WHICH NO LICENSURE 2,418
REQUIREMENTS FOR THE POSITION CAN BE MADE UNDER THE PROVISIONS OF 2,419
SUCH FEDERAL ACTS OR REGULATIONS;
(5) ANY other teacher or faculty member employed in any 2,421
school, college, university, institution, or other agency wholly 2,423
controlled and managed, and supported in whole or in part, by the 2,424
state or any political subdivision thereof, including Central 2,425
state university, Cleveland state university, the university of 2,426
Toledo, and the medical college of Ohio at Toledo.; 2,427
(6) The educational employees of the department of 2,430
education, as determined by the state superintendent of public 2,431
56
instruction, shall be considered teachers for the purpose of 2,432
membership in this system. In 2,433
IN all cases of doubt, the state teachers retirement board 2,436
shall determine whether any person is a teacher, and its decision 2,437
shall be final.
"Teacher" does not include any academic or administrative 2,439
employee of a public institution of higher education, as defined 2,440
in section 3305.01 of the Revised Code, who participates in an 2,441
alternative retirement plan established under Chapter 3305. of 2,442
the Revised Code.
(C) "Prior service" means all service as a teacher before 2,444
September 1, 1920, military service credit, all service prior to 2,445
September 1, 1920, as an employee of any employer who comes 2,446
within the public employees retirement system, the school 2,447
employees retirement system, or any other state retirement system 2,448
established under the laws of Ohio, and similar service in 2,449
another state, credit for which was procured by a member under 2,450
section 3307.33 of the Revised Code, prior to June 25, 1945. 2,451
Prior service credit shall not be granted to any member for 2,452
service for which credit or benefits have been received in any 2,453
other state retirement system in Ohio or for credit that was 2,454
forfeited by withdrawal of contributions, unless the credit has 2,455
been restored. If the teacher served as an employee in any two 2,456
or all of the capacities, "prior service" means the total 2,457
combined service in the capacities prior to September 1, 1920. 2,458
If a teacher who has been granted prior service credit for 2,460
service rendered prior to September 1, 1920, as an employee of an 2,461
employer who comes within the public employees retirement system 2,462
or the school employees retirement system, establishes, 2,463
subsequent to September 16, 1957, and before retirement, three 2,464
years of contributing service in the public employees retirement 2,465
system, or one year in the school employees retirement system, 2,466
the prior service credit granted shall become, at retirement, the 2,468
liability of the other system if the prior service or employment 2,470
57
was in a capacity covered by that system.
(D) "Total service," "total service credit," except as 2,472
provided in section 3307.41 of the Revised Code, or "Ohio service 2,473
credit" means all service of a member of the state teachers 2,474
retirement system since last becoming a member and, in addition 2,475
thereto, restored service credit under section 3307.28 of the 2,476
Revised Code, all prior service credit, all military service 2,478
credit computed as provided in this chapter, and all other 2,479
service credit established under sections 3307.22, 3307.31, 2,480
3307.311, 3307.32, 3307.35, 3307.411, 3307.412, 3307.51, 2,482
3307.512, 3307.513, 3307.514, 3307.515, and 3307.73 and former 2,484
section 3307.52 of the Revised Code, and Section 3 of Amended 2,485
Substitute Senate Bill No. 530 of the 114th general assembly. 2,486
All service credit purchased under section 3307.33 of the Revised 2,487
Code shall be used exclusively for the purpose of qualifying for 2,488
service retirement. 2,489
(E) "Member" means any person included in the membership 2,491
of the state teachers retirement system, which shall consist of 2,492
all teachers and contributors as defined in divisions (B) and 2,494
(F)(D) of this section and all disability benefit recipients, AS 2,495
DEFINED IN SECTION 3307.50 OF THE REVISED CODE. However, for 2,497
purposes of this chapter, the following persons shall not be
considered members: 2,498
(1) A student, intern, or resident who is not a member 2,500
while employed part-time by a school, college, or university at 2,502
which the student, intern, or resident is regularly attending 2,503
classes;
(2) A person denied membership pursuant to section 3307.27 2,505
3307.24 of the Revised Code; 2,507
(3) A superannuate or AN other system retirant, as defined 2,510
in section 3307.381 3307.35 of the Revised Code, OR A 2,511
SUPERANNUATE; 2,512
(4) An individual employed in a program established 2,514
pursuant to the "Job Training Partnership Act," 96 Stat. 1322 2,515
58
(1982), 29 U.S.C.A. 1501. 2,516
(F)(D) "Contributor" means any person who has an account 2,518
in the teachers' savings fund OR DEFINED CONTRIBUTION FUND. 2,519
(G)(E) "Beneficiary" means any person eligible to receive, 2,521
or in receipt of, a retirement allowance or other benefit 2,523
provided by this chapter. 2,524
(H)(1) "Service retirement" means retirement as provided 2,526
in section 3307.38 or 3307.39 of the Revised Code. 2,527
(2) "Disability retirement" means retirement as provided 2,529
in section 3307.43 of the Revised Code. 2,530
(I) "Accumulated contributions" means the sum of all 2,532
amounts credited to a contributor's individual account in the 2,533
teachers' savings fund, together with interest credited thereon 2,534
at the rates approved by the state teachers retirement board 2,535
prior to retirement. 2,536
(J) "Annuity" means payments for life derived from 2,538
contributions made by a contributor and paid from the annuity and 2,539
pension reserve fund. All annuities shall be paid in twelve 2,540
equal monthly installments. 2,541
(K) "Pensions" means annual payments for life derived from 2,543
appropriations made by an employer and paid from the annuity and 2,544
pension reserve fund. All pensions shall be paid in twelve equal 2,545
monthly installments. 2,546
(L)(1) "Allowance" or "benefit" means the pension plus the 2,548
annuity, or any other payment under this chapter, and includes a 2,549
disability allowance or disability benefit. 2,550
(2) "Disability allowance" means an allowance paid on 2,552
account of disability under section 3307.431 of the Revised Code. 2,553
(3) "Disability benefit" means a benefit paid as 2,555
disability retirement under section 3307.43 of the Revised Code, 2,556
as a disability allowance under section 3307.431 of the Revised 2,557
Code, or as a disability benefit under section 3307.41 of the 2,558
Revised Code. 2,559
(M) "Annuity reserve" means the present value, computed 2,561
59
upon the basis of mortality tables adopted by the state teachers 2,562
retirement board with interest, of all payments to be made on 2,563
account of any annuity, or benefit in lieu of any annuity, 2,564
granted to a member. 2,565
(N) "Pension reserve" means the present value, computed 2,567
upon the basis of mortality tables adopted by the state teachers 2,568
retirement board with interest, of all payments to be made on 2,569
account of any pension, or benefit in lieu of any pension, 2,570
granted to a member or to a beneficiary. 2,571
(O)(F) "Year" means the year beginning the first day of 2,573
July and ending with the thirtieth day of June next following, 2,574
except that for the purpose of determining final average salary 2,575
UNDER THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE 2,576
REVISED CODE, "year" may mean the contract year. 2,578
(P)(G) "Local district pension system" means any school 2,580
teachers pension fund created in any school district of the state 2,581
in accordance with the laws of the state prior to September 1, 2,582
1920. 2,583
(Q)(H) "Employer contribution" means the amount paid by an 2,585
employer, as determined by the employer rate, including the 2,586
normal and deficiency rates, contributions, and funds wherever 2,587
used in this chapter. 2,588
(R)(I) "Five years of service credit," for the exclusive 2,591
purpose of satisfying the service credit requirements and 2,592
determining eligibility for benefits under section 3307.38 of the 2,593
Revised Code, means employment covered under this chapter and 2,594
employment covered under a former retirement plan operated, 2,595
recognized, or endorsed by a college, institute, university, or 2,596
political subdivision of this state prior to coverage under this 2,597
chapter. 2,598
(S)(J) "Actuary" means the actuarial consultant to the 2,600
state teachers retirement board, who shall be either of the 2,601
following:
(1) A member of the American academy of actuaries; 2,603
60
(2) A firm, partnership, or corporation of which at least 2,605
one person is a member of the American academy of actuaries. 2,606
(T)(K) "Fiduciary" means a person who does any of the 2,608
following: 2,609
(1) Exercises any discretionary authority or control with 2,611
respect to the management of the system, or with respect to the 2,612
management or disposition of its assets; 2,613
(2) Renders investment advice for a fee, direct or 2,615
indirect, with respect to money or property of the system; 2,616
(3) Has any discretionary authority or responsibility in 2,618
the administration of the system. 2,619
(U)(L)(1) Except as otherwise provided in this division, 2,622
"compensation" means all salary, wages, and other earnings paid 2,623
to a teacher by reason of the teacher's employment, including 2,624
compensation paid pursuant to a supplemental contract. The 2,625
salary, wages, and other earnings shall be determined prior to 2,626
determination of the amount required to be contributed to the 2,627
teachers' savings fund OR DEFINED CONTRIBUTION FUND under section 2,628
3307.51 3307.26 of the Revised Code and without regard to whether 2,631
any of the salary, wages, or other earnings are treated as 2,632
deferred income for federal income tax purposes.
(2) Compensation does not include any of the following: 2,634
(a) Payments for accrued but unused sick leave or personal 2,636
leave, including payments made under a plan established pursuant 2,637
to section 124.39 of the Revised Code or any other plan 2,638
established by the employer; 2,639
(b) Payments made for accrued but unused vacation leave, 2,641
including payments made pursuant to section 124.13 of the Revised 2,642
Code or a plan established by the employer; 2,643
(c) Payments made for vacation pay covering concurrent 2,645
periods for which other salary, compensation, or benefits under 2,646
this chapter are paid; 2,647
(d) Amounts paid by the employer to provide life 2,649
insurance, sickness, accident, endowment, health, medical, 2,650
61
hospital, dental, or surgical coverage, or other insurance for 2,651
the teacher or the teacher's family, or amounts paid by the 2,652
employer to the teacher in lieu of providing the insurance; 2,653
(e) Incidental benefits, including lodging, food, laundry, 2,655
parking, or services furnished by the employer, use of the 2,656
employer's property or equipment, and reimbursement for 2,657
job-related expenses authorized by the employer, including moving 2,658
and travel expenses and expenses related to professional 2,659
development; 2,660
(f) Payments made by the employer in exchange for a 2,662
member's waiver of a right to receive any payment, amount, or 2,663
benefit described in division (U)(L)(2) of this section; 2,664
(g) Payments by the employer for services not actually 2,666
rendered; 2,667
(h) Any amount paid by the employer as a retroactive 2,669
increase in salary, wages, or other earnings, unless the increase 2,670
is one of the following: 2,671
(i) A retroactive increase paid to a member employed by a 2,673
school district board of education in a position that requires a 2,674
license designated for teaching and not designated for being an 2,675
administrator issued under section 3319.22 of the Revised Code 2,676
that is paid in accordance with uniform criteria applicable to 2,677
all members employed by the board in positions requiring the 2,678
licenses; 2,679
(ii) A retroactive increase paid to a member employed by a 2,681
school district board of education in a position that requires a 2,682
license designated for being an administrator issued under 2,683
section 3319.22 of the Revised Code that is paid in accordance 2,684
with uniform criteria applicable to all members employed by the 2,685
board in positions requiring the licenses; 2,686
(iii) A retroactive increase paid to a member employed by 2,688
a school district board of education as a superintendent that is 2,689
also paid as described in division (U)(L)(2)(h)(i) of this 2,690
section; 2,691
62
(iv) A retroactive increase paid to a member employed by 2,693
an employer other than a school district board of education in 2,694
accordance with uniform criteria applicable to all members 2,695
employed by the employer. 2,696
(i) Payments made to or on behalf of a teacher that are in 2,698
excess of the annual compensation that may be taken into account 2,699
by the retirement system under division (a)(17) of section 401 of 2,700
the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 2,701
401(a)(17), as amended. For a teacher who first establishes 2,702
membership before July 1, 1996, the annual compensation that may 2,703
be taken into account by the retirement system shall be 2,704
determined under division (d)(3) of section 13212 of the "Omnibus 2,705
Budget Reconciliation Act of 1993," Pub. L. No. 103-66, 107 Stat. 2,707
472.
(j) Payments made under division (B) or (D) of section 2,709
5923.05 of the Revised Code or Section 4 of Substitute Senate 2,711
Bill No. 3 of the 119th general assembly; 2,712
(k) Anything of value received by the teacher that is 2,714
based on or attributable to retirement or an agreement to retire. 2,715
(3) The retirement board shall determine by rule both of 2,717
the following: 2,718
(a) Whether particular forms of earnings are included in 2,720
any of the categories enumerated in this division; 2,721
(b) Whether any form of earnings not enumerated in this 2,723
division is to be included in compensation. 2,724
Decisions of the board made under this division shall be 2,726
final. 2,727
(V) "Retirant" means any former member who is granted age 2,729
and service retirement as provided in sections 3307.38, 3307.39, 2,730
3307.41, and 3307.50 of the Revised Code. 2,731
(W) "Disability benefit recipient" means a member who is 2,733
receiving a disability benefit. 2,734
(M) "SUPERANNUATE" MEANS BOTH OF THE FOLLOWING: 2,736
(1) A FORMER TEACHER RECEIVING FROM THE SYSTEM A 2,738
63
RETIREMENT ALLOWANCE UNDER SECTION 3307.58 OR 3307.59 OF THE 2,739
REVISED CODE; 2,740
(2) A FORMER TEACHER RECEIVING ANY BENEFIT FROM THE SYSTEM 2,742
UNDER A PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE REVISED 2,744
CODE.
FOR PURPOSES OF SECTION 3307.35 OF THE REVISED CODE, 2,746
"SUPERANNUATE" ALSO MEANS A FORMER TEACHER RECEIVING FROM THE 2,747
SYSTEM A COMBINED SERVICE RETIREMENT BENEFIT PAID IN ACCORDANCE 2,748
WITH SECTION 3307.57 OF THE REVISED CODE, REGARDLESS OF WHICH 2,749
RETIREMENT SYSTEM IS PAYING THE BENEFIT. 2,750
Sec. 3307.031. THE STATE TEACHERS RETIREMENT SYSTEM SHALL 2,753
CONSIST OF THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 AND 2,754
THE ONE OR MORE PLANS ESTABLISHED UNDER SECTION 3307.81 OF THE 2,757
REVISED CODE.
Sec. 3307.05. The state teachers retirement board shall 2,766
consist of the following nine members: 2,767
(A) The superintendent of public instruction; 2,769
(B) The auditor of state; 2,771
(C) The attorney general; 2,773
(D) Five members, known as teacher members, who shall be 2,775
members of the state teachers retirement system; 2,776
(E) A former member of the system, known as the retired 2,778
teacher member, who shall be a recipient of service retirement 2,779
benefits under section 3307.38 or 3307.39 of the Revised Code 2,780
SUPERANNUATE.
Sec. 3307.07. All elections of members of the state 2,789
teachers retirement board shall be held under the direction of 2,790
the board. Any member of the state teachers retirement system, 2,791
who has been nominated by a petition signed by five hundred or 2,792
more members of the system, shall be eligible for election as a 2,793
teacher member of the board. The petition shall contain the 2,794
signatures of twenty or more members of the system from each of 2,795
at least ten counties wherein members of the system are employed. 2,796
Any retired teacher who is a recipient of service 2,798
64
retirement benefits under section 3307.38 or 3307.39 of the 2,799
Revised Code SUPERANNUATE and is a resident of Ohio is eligible 2,801
for election as the retired teacher member of the board, if such 2,802
retired teacher has been nominated by a petition signed by five 2,803
hundred or more retired teachers, who are also recipients of 2,804
benefits under section 3307.38 or 3307.39 of the Revised Code 2,805
SUPERANNUATES. The petition shall contain the signatures of 2,807
twenty or more retired teachers from each of at least ten 2,808
counties wherein retirants SUPERANNUATES under the system reside. 2,810
The board shall place the name of any eligible candidate 2,812
upon the appropriate ballot as a regular candidate. At any 2,813
election, qualified voters, as defined in this section, may vote 2,814
for the regular candidates or for other eligible candidates, in 2,815
which case the names of such persons shall be written upon the 2,816
appropriate ballots, except that members of the system and former 2,817
members of the system who are recipients of service retirement 2,818
benefits under section 3307.38 or 3307.39 of the Revised Code 2,819
SUPERANNUATES shall vote respectively for teacher members and the 2,821
retired teacher member of the board. The candidate who receives 2,822
the highest number of votes for any term of office shall be 2,823
elected to the board. If, at any election, teacher members are 2,824
to be elected for concurrent terms, eligible candidates shall be 2,825
placed on the ballot, and the candidates who receive the highest 2,826
numbers of votes shall be elected to the board. 2,827
Elected members of the board shall be elected on the basis 2,829
of the total number of ballots cast by qualified voters, who 2,830
shall consist of members of the system and former members of the 2,831
system who are recipients of service retirement benefits under 2,832
section 3307.38 or 3307.39 of the Revised Code SUPERANNUATES. 2,833
Sec. 3307.08. Each member of the state teachers retirement 2,842
board upon appointment or election shall take an oath of office 2,843
that he THE MEMBER will support the constitution of the United 2,845
States, the constitution of the state, and that he THE MEMBER 2,846
will diligently and honestly administer the affairs of the said 2,847
65
board, and that he THE MEMBER will not knowingly violate or 2,849
willfully permit to be violated any law applicable to sections 2,851
3307.01 to 3307.72, inclusive, of the Revised Code THIS CHAPTER. 2,852
Such oath shall be subscribed to by the member making it, and 2,853
certified by the officer before whom it is taken, and shall be 2,854
immediately filed in the office of the secretary of state. 2,855
Sec. 3307.09. A majority of the members of the state 2,864
teachers retirement board constitutes a quorum for the 2,865
transaction of any business. All meetings of the board shall be 2,866
open to the public except executive sessions as set forth in 2,867
division (G) of section 121.22 of the Revised Code, and any
portions of any sessions discussing medical records or the degree 2,868
of disability of a member excluded from public inspection by 2,869
section 3307.21 3307.20 of the Revised Code. 2,870
Sec. 3307.10. (A) The members of the state teachers 2,879
retirement board shall serve without compensation, except that 2,880
members shall be reimbursed from the expense fund for all actual 2,881
necessary expenses incurred while serving on the board. 2,882
(B) The board may secure insurance coverage designed to 2,884
indemnify board members and employees for their actions or 2,885
conduct in the performance of official duties, and may pay 2,886
required premiums for such coverage from the expense fund. 2,887
(C) If the officers of the board determine that a meeting 2,889
of the entire membership, or any part thereof, is necessary, such 2,890
determination shall be final, and teacher members shall be given 2,891
time off from their employment to attend any such meeting. The 2,892
employer of a teacher member shall not reduce the member's earned 2,893
compensation as a teacher or any contribution required under 2,894
section 3307.51 3307.26 of the Revised Code, because of the 2,895
teacher member's absence from employment to attend any such 2,896
meeting.
The portion of the employer contribution required under 2,898
section 3307.53 3307.28 of the Revised Code that represents 2,900
earned compensation of a teacher member paid for the period of an 2,901
66
absence from employment to attend a board meeting, shall be
annually transferred from the expense fund and forwarded to the 2,902
employer of the teacher member. 2,903
(D) The board shall adopt rules in accordance with section 2,906
111.15 of the Revised Code establishing a policy for 2,908
reimbursement of travel expenses incurred by board members in the 2,910
performance of their official duties. As part of any audit
performed under Chapter 117. of the Revised Code, an inquiry 2,913
shall be made into whether board members have complied with these 2,914
rules.
(E) No board member shall accept payment or reimbursement 2,917
for travel expenses, other than for meals and other food and 2,918
beverages provided to the member, from any source other than the 2,919
expense fund. Except in the case of an emergency, no 2,920
out-of-state travel expenses shall be reimbursed unless approved 2,921
in advance by a majority of the board at a regular board meeting. 2,922
Sec. 3307.11. The state teachers retirement board shall 2,931
elect from its membership, a chairman CHAIRPERSON and a vice 2,932
chairman VICE-CHAIRPERSON. The board shall employ an executive 2,934
director who shall serve as secretary, and shall employ other 2,935
persons necessary to operate the system and to fulfill the 2,936
board's duties and responsibilities under Chapter 3307. of the 2,937
Revised Code. The compensation of all employees and all other 2,938
expenses of the board necessary for the proper operation of the 2,939
system shall be paid in such amounts as the board approves. 2,940
Every expense voucher of an employee, officer, or board 2,942
member of the state teachers retirement system shall itemize all 2,943
purchases and expenditures. 2,944
The board shall receive all applications for retirement 2,946
UNDER THE PLANS DESCRIBED IN SECTION 3307.031 OF THE REVISED 2,947
CODE, shall provide for the payment of all retirement allowances 2,948
and other benefits PAYABLE UNDER THIS CHAPTER, and shall make 2,949
other EXPENDITURES authorized by Chapter 3307. of the Revised 2,950
Code THIS CHAPTER. 2,951
67
Sec. 3307.121. THE TREASURER OF STATE SHALL FURNISH 2,953
ANNUALLY TO THE STATE TEACHERS RETIREMENT BOARD A SWORN STATEMENT 2,954
OF THE AMOUNT OF THE FUNDS IN THE TREASURER OF STATE'S CUSTODY 2,955
BELONGING TO THE STATE TEACHERS RETIREMENT SYSTEM. 2,956
Sec. 3307.65 3307.14. The state teachers retirement board 2,965
shall be the trustee of certain funds hereby created as follows: 2,966
(A) The "teachers' savings fund" is the fund in which 2,968
shall be accumulated the contributions deducted from the 2,969
compensation of teachers and faculty members PARTICIPATING IN THE 2,970
PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED 2,971
CODE, as provided by section 3307.51 3307.26 of the Revised Code, 2,972
together with the interest credited thereon. Such accumulated 2,974
contributions refunded upon withdrawal, or payable to an estate 2,975
or beneficiary as provided in this chapter, shall be paid from 2,976
this fund. Any accumulated contributions forfeited by the 2,977
failure of a contributor, an estate, or a beneficiary to claim 2,978
the same shall be transferred from this fund to the guarantee 2,979
fund. The accumulated contributions of a member or of a teacher 2,980
who qualifies for a benefit under section 3307.381 3307.35 of the 2,981
Revised Code shall be transferred at his THE MEMBER'S OR 2,983
TEACHER'S retirement from the teachers' savings fund to the 2,985
annuity and pension reserve fund. The accumulated contributions 2,986
of a member who dies prior to superannuation retirement that are 2,987
forfeited by the qualified beneficiary in exchange for monthly 2,988
survivor benefits, as provided by section 3307.49 3307.66 of the 2,989
Revised Code, shall be transferred to the survivors' benefit 2,991
fund. The accumulated contributions of a superannuate or other 2,992
system retirant as defined in section 3307.381 3307.35 of the 2,993
Revised Code shall be transferred to the survivors' benefit fund 2,995
for payment of a lump-sum benefit to a beneficiary as provided in 2,996
THAT section 3307.381 of the Revised Code. AS USED IN THIS 2,997
DIVISION, "ACCUMULATED CONTRIBUTIONS" HAS THE SAME MEANING AS IN 2,998
SECTION 3307.50 OF THE REVISED CODE.
(B) The "employers' trust fund" is the fund to which the 3,000
68
employer contribution MADE ON BEHALF OF A TEACHER PARTICIPATING 3,001
IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE 3,002
REVISED CODE shall be credited and in which shall be accumulated 3,004
the reserves held in trust for the payment of all pensions or 3,005
other benefits provided by sections 3307.38 3307.35, 3307.381 3,007
3307.58, 3307.39 3307.59, 3307.43 3307.60, 3307.431 3307.63, 3,008
3307.49 3307.631, 3307.50 3307.66, 3307.70 3307.6912, and 3307.78 3,011
3307.98 of the Revised Code, to teachers retiring or receiving 3,013
disability benefits in the future or to their qualified
beneficiaries, and from which the reserves for such pensions and 3,014
other benefits shall be transferred to the annuity and pension 3,015
reserve fund and to the survivors' benefit fund. The balances as 3,016
of August 31, 1957, in the employers accumulation fund shall be 3,017
transferred to this fund. As of September 1, 1957, an additional 3,018
amount shall be transferred from the employers' trust fund to the 3,019
annuity and pension reserve fund in the amount required to 3,020
complete the funding of the prior service, AS DEFINED IN SECTION 3,021
3307.50 OF THE REVISED CODE, and military service pensions then 3,023
payable.
(C) The "annuity and pension reserve fund" is the fund 3,025
from which shall be paid all annuities, pensions, and disability 3,026
benefits UNDER THE PLAN DESCRIBED IN SECTION 3307.50 TO 3307.79 3,027
OF THE REVISED CODE for which reserves have been transferred from 3,028
the teachers' savings fund and the employers' trust fund. 3,029
(D) The "survivors' benefit fund" is the fund from which 3,031
shall be paid the survivors' benefits provided by section 3307.49 3,032
3307.66 of the Revised Code and the lump sum payment to 3,034
beneficiaries as provided in section 3307.381 3307.35 of the 3,035
Revised Code, and to which shall be transferred from the 3,037
employers' trust fund the amount required to fund all liabilities 3,038
as of the end of each year.
(E) The "guarantee fund" is the fund from which interest 3,040
is transferred and credited on the amounts in the funds described 3,041
in divisions (A), (B), (C), and (D) of this section, and is a 3,042
69
contingent fund from which the special requirements of said funds 3,043
may be paid by transfer from this fund. All income derived from 3,044
the investment of funds by the state teachers retirement board as 3,045
trustee under section 3307.15 of the Revised Code, together with 3,046
all gifts and bequests, or the income therefrom, shall be paid 3,047
into this fund. 3,048
Any deficit occurring in any other fund that will not be 3,050
covered by payments to that fund, as otherwise provided in this 3,051
chapter, shall be paid by transfers of amounts from the guarantee 3,052
fund to such fund or funds. Should the amount in the guarantee 3,053
fund be insufficient at any time to meet the amounts payable 3,054
therefrom, the amount of such deficiency, with regular interest, 3,055
shall be paid by an additional employer rate of contribution as 3,056
determined by the actuary and shall be approved by the state 3,057
teachers retirement board, and the amount of such additional 3,058
employer contribution shall be credited to the guarantee fund. 3,059
The state teachers retirement board may accept gifts and 3,061
bequests. Any funds that may come into the possession of the 3,062
state teachers retirement board in this manner or that may be 3,063
transferred from the teachers' savings fund by reason of lack of 3,064
a claimant, or any surplus in any fund created by IN DIVISIONS 3,066
(A) TO (F) OF this section, or any other funds whose disposition 3,067
is not otherwise provided for, shall be credited to the guarantee 3,068
fund.
(F) The expense fund is the fund from which shall be paid 3,070
the expenses for the administration and management of the state 3,071
teachers retirement system as provided by this chapter. 3,072
(G) THE "DEFINED CONTRIBUTION FUND" IS THE FUND IN WHICH 3,074
SHALL BE ACCUMULATED THE CONTRIBUTIONS DEDUCTED FROM THE 3,075
COMPENSATION OF TEACHERS PARTICIPATING IN A PLAN ESTABLISHED 3,076
UNDER SECTION 3307.81 OF THE REVISED CODE, AS PROVIDED IN SECTION 3,078
3307.26 OF THE REVISED CODE, TOGETHER WITH ANY EARNINGS AND 3,080
EMPLOYER CONTRIBUTIONS CREDITED THEREON.
Sec. 3307.66 3307.141. Wherever in sections 3307.01 to 3,089
70
3307.72, inclusive, of the Revised Code THIS CHAPTER, reference 3,091
is made to the teachers' savings fund, the employers' normal 3,093
accumulation fund, the employers' deficiency accumulation TRUST 3,094
fund, the annuity and pension reserve fund, the guarantee fund, 3,095
the survivors' benefit fund, or the expense fund, OR THE DEFINED 3,096
CONTRIBUTION FUND, such reference shall be construed to have been 3,097
made to each as a separate legal entity. This section does not 3,098
prevent the deposit or investment of all such moneys intermingled 3,099
for such purpose but such funds shall be separate and distinct 3,100
legal entities for all other purposes.
Sec. 3307.651 3307.142. (A) Interest compounded annually 3,110
shall be credited to the accounts of members PARTICIPATING IN THE 3,111
PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE 3,112
and to the various funds LISTED IN DIVISIONS (A) TO (F) OF 3,113
SECTION 3307.14 OF THE REVISED CODE, and shall be assumed in
determining actuarial factors, at rates recommended by the 3,115
actuary and approved by the STATE TEACHERS retirement board, but 3,116
not less than three and twenty-five hundredths per cent effective 3,118
September 1, 1965, except as follows:
(1) For the years stated the rates shall be as follows: 3,120
Years Rates 3,122
9-1-1920/8-31-1955 4.00% 3,123
9-1-1955/8-31-1963 3.00 3,124
9-1-1963/8-31-1965 3.25 3,125
(2) Subsequent to August 31, 1959, interest shall be 3,128
credited to accounts only at retirement. 3,130
(3) If the amount of the account at retirement is not a 3,132
factor in determining the allowance, interest shall not be 3,133
credited to such account after September 1, 1964. 3,134
(4) The actuary shall estimate the amount of interest 3,136
reserve required in the teachers savings fund for credit to 3,137
accounts when interest is to be a factor in determining the 3,138
allowance, and the balance of the interest reserve in such fund 3,139
shall be transferred to the employers trust fund as of September
71
1, 1965.
(B) INTEREST SHALL BE CREDITED TO THE ACCOUNTS OF MEMBERS 3,141
PARTICIPATING IN A PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE 3,142
REVISED CODE AND TO THE DEFINED CONTRIBUTION FUND IN ACCORDANCE 3,143
WITH THAT PLAN.
Sec. 3307.15. (A) The members of the state teachers 3,152
retirement board shall be the trustees of the funds created by 3,153
section 3307.65 3307.14 of the Revised Code. The board shall 3,154
have full power to invest the funds. The board and other 3,156
fiduciaries shall discharge their duties with respect to the 3,157
funds solely in the interest of the participants and 3,158
beneficiaries; for the exclusive purpose of providing benefits to 3,159
participants and their beneficiaries and defraying reasonable 3,160
expenses of administering the system; with care, skill, prudence, 3,161
and diligence under the circumstances then prevailing that a 3,162
prudent person acting in a like capacity and familiar with these 3,163
matters would use in the conduct of an enterprise of a like 3,165
character and with like aims; and by diversifying the investments 3,166
of the system so as to minimize the risk of large losses, unless 3,167
under the circumstances it is clearly prudent not to do so. 3,168
To facilitate investment of the funds, the board may 3,170
establish a partnership, trust, limited liability company, 3,171
corporation, including a corporation exempt from taxation under 3,172
the Internal Revenue Code, 100 Stat. 2085, 26 U.S.C. 1, as 3,174
amended, or any other legal entity authorized to transact
business in this state. 3,175
(B) In exercising its fiduciary responsibility with 3,177
respect to the investment of the funds, it shall be the intent of 3,178
the board to give consideration to investments that enhance the 3,179
general welfare of the state and its citizens where the 3,180
investments offer quality, return, and safety comparable to other 3,182
investments currently available to the board. In fulfilling this 3,183
intent, equal consideration shall also be given to investments 3,184
otherwise qualifying under this section that involve minority 3,185
72
owned and controlled firms and firms owned and controlled by 3,186
women, either alone or in joint venture with other firms. 3,187
The board shall adopt, in regular meeting, policies, 3,189
objectives, or criteria for the operation of the investment 3,190
program that include asset allocation targets and ranges, risk 3,191
factors, asset class benchmarks, time horizons, total return 3,192
objectives, and performance evaluation guidelines. In adopting 3,194
policies and criteria for the selection of agents with whom the 3,195
board may contract for the administration of the funds, the board 3,196
shall give equal consideration to minority owned and controlled 3,197
firms, firms owned and controlled by women, and ventures 3,198
involving minority owned and controlled firms and firms owned and 3,199
controlled by women that otherwise meet the policies and criteria 3,200
established by the board. Amendments and additions to the 3,201
policies and criteria shall be adopted in regular meeting. The 3,202
board shall publish its policies, objectives, and criteria under 3,203
this provision no less often than annually and shall make copies 3,205
available to interested parties.
When reporting on the performance of investments, the board 3,207
shall comply with the performance presentation standards 3,208
established by the association for investment management and 3,209
research.
(C) All bonds, notes, certificates, stocks, or other 3,212
evidences of investments purchased by the board shall be 3,214
delivered to the treasurer of state, who is hereby designated as 3,215
custodian thereof, or to the treasurer of state's authorized 3,216
agent, and the treasurer of state or the agent shall collect the 3,218
principal, interest, dividends, and distributions that become due 3,221
and payable and place them when so collected into the custodial 3,222
funds. Evidences of title of the investments may be deposited by 3,224
the treasurer of state for safekeeping with an authorized agent, 3,225
selected by the treasurer of state, who is a qualified trustee 3,226
under section 135.18 of the Revised Code. The treasurer of state 3,227
shall pay for the investments purchased by the retirement board 3,230
73
on receipt of written or electronic instructions from the board 3,232
or the board's designated agent authorizing the purchase and 3,234
pending receipt of the evidence of title of the investment by the
treasurer of state or the treasurer of state's authorized agent. 3,235
The board may sell investments held by the board, and the 3,236
treasurer of state or the treasurer of state's authorized agent 3,237
shall accept payment from the purchaser and deliver evidence of 3,238
title of the investment to the purchaser on receipt of written or 3,239
electronic instructions from the board or the board's designated
agent authorizing the sale, and pending receipt of the moneys for 3,242
the investments. The amount received shall be placed into the 3,244
custodial funds. The board and the treasurer of state may enter 3,245
into agreements to establish procedures for the purchase and sale 3,246
of investments under this division and the custody of the
investments. 3,247
(D) No purchase or sale of any investment shall be made 3,250
under this section except as authorized by the state teachers
retirement board. 3,251
(E) Any statement of financial position distributed by the 3,253
board shall include the fair value, as of the statement date, of 3,256
all investments held by the board under this section.
Sec. 3307.111 3307.151. The state teachers retirement 3,265
system shall make no investments through, purchases from, or 3,268
otherwise do any business with any individual who is, or any 3,269
partnership, association, or corporation that is owned or
controlled by, a person, who within the preceding three years was 3,270
employed by, an officer, or a board member of the system or in 3,271
which a person, who within the preceding three years was employed 3,272
by, a board member of, or an officer of the system holds a 3,273
fiduciary, administrative, supervisory or trust position, or any 3,274
other position in which such person would be involved, on behalf
of his THE PERSON'S employer, in decisions or recommendations 3,276
affecting the investment policy of the state teachers retirement 3,277
system, and in which such person would benefit by any monetary 3,279
74
gain.
Sec. 3307.14 3307.181. (A) Except as provided in division 3,288
(B) of this section, a fiduciary shall not cause the state 3,290
teachers retirement system to engage in a transaction, if he THE 3,291
FIDUCIARY knows or should know that such transaction constitutes 3,293
a direct or indirect: 3,294
(1) Sale or exchange, or leasing, of any property between 3,296
the system and a party in interest; 3,297
(2) Lending of money or other extension of credit between 3,299
the system and a party in interest; 3,300
(3) Furnishing of goods, services, or facilities between 3,302
the system and a party in interest; 3,303
(4) Transfer to, or use by or for the benefit of a party 3,305
in interest, of any assets of the system; or 3,306
(5) Acquisition, on behalf of the system, of any employer 3,308
security or employer real property. 3,309
(B) Nothing in this section shall prohibit any transaction 3,311
between the state teachers retirement system and any fiduciary or 3,312
party in interest if: 3,313
(1) All the terms and conditions of the transaction are 3,315
comparable to the terms and conditions which might reasonably be 3,316
expected in a similar transaction between similar parties who are 3,317
not parties in interest; and 3,318
(2) The transaction is consistent with the fiduciary 3,320
duties described in Chapter 3307. of the Revised Code. 3,321
(C) A fiduciary shall not: 3,323
(1) Deal with the assets of the system in his THE 3,325
FIDUCIARY'S own interest or for his THE FIDUCIARY'S own account; 3,327
(2) In his THE FIDUCIARY'S individual or in any other 3,329
capacity act in any transaction involving the system on behalf of 3,331
a party (or represent a party) whose interests are adverse to the 3,332
interests of the system or the interests of its participants or 3,333
beneficiaries; or 3,334
(3) Receive any consideration for his THE FIDUCIARY'S own 3,336
75
personal account from any party dealing with such system in 3,338
connection with a transaction involving the assets of the system. 3,339
(D) In addition to any liability which he THE FIDUCIARY 3,341
may have under any other provision, a fiduciary with respect to 3,343
the system shall be liable for a breach of fiduciary 3,344
responsibility of any fiduciary with respect to the system in the 3,345
following circumstances: 3,346
(1) If he THE FIDUCIARY participates knowingly in, or 3,348
knowingly undertakes to conceal, an act or omission of such other 3,349
fiduciary, knowing such act or omission is a breach; 3,350
(2) If, by his THE FIDUCIARY'S failure to comply with 3,352
Chapter 3307. of the Revised Code, he THE FIDUCIARY has enabled 3,354
such other fiduciary to commit a breach; or 3,356
(3) If he THE FIDUCIARY has knowledge of a breach by such 3,358
other fiduciary, unless he THE FIDUCIARY makes reasonable efforts 3,359
under the circumstances to remedy the breach. 3,361
(E) Every fiduciary of the system shall be bonded or 3,363
insured to an amount of not less than one million dollars for 3,364
loss by reason of acts of fraud or dishonesty. 3,365
Sec. 3307.19. The state teachers retirement board shall 3,374
provide for the maintenance of an individual account with FOR 3,375
each contributor MEMBER showing the amount of his THE MEMBER'S 3,378
contributions and the interest ANY accumulations thereon. It 3,380
shall collect and keep in convenient form such data as is 3,382
necessary for the preparation of the required mortality and 3,383
service tables, and for the compilation of such other information 3,384
as is required for the actuarial valuation of the assets and 3,385
liabilities of the various funds created by section 3307.65 of 3,386
the Revised Code. Upon the basis of the mortality and service 3,387
experience of the members, retirants, and beneficiaries of the 3,388
state teachers retirement system, and other system retirants 3,389
contributing in accordance with section 3307.381 of the Revised 3,390
Code, the board shall adopt the tables to be used for valuation 3,391
purposes and for determining the amount of annuities to be 3,392
76
allowed on the basis of the contributions. 3,393
Sec. 3307.21 3307.20. (A) The treasurer of state shall 3,402
furnish annually to the state teachers retirement board a sworn 3,404
statement of the amount of the funds in the treasurer's custody 3,405
belonging to the state teachers retirement system. 3,406
(B)(1) As used in this division, "personal SECTION: 3,408
(1) "PERSONAL history record" means information maintained 3,411
by the STATE TEACHERS RETIREMENT board on a member, former 3,412
member, contributor, former contributor, retirant, or beneficiary 3,413
that includes the address, telephone number, social security 3,414
number, record of contributions, correspondence with the STATE 3,415
TEACHERS RETIREMENT system, or other information the board 3,417
determines to be confidential.
(2) "RETIRANT" HAS THE SAME MEANING AS IN SECTION 3307.50 3,419
OF THE REVISED CODE.
(B) The records of the board shall be open to public 3,421
inspection, except for the following, which shall be excluded, 3,422
except with the written authorization of the individual 3,423
concerned: 3,424
(a)(1) The individual's personal records provided for in 3,426
section 3307.29 3307.23 of the Revised Code; 3,427
(b)(2) The individual's personal history record; 3,429
(c)(3) Any information identifying, by name and address, 3,431
the amount of a monthly allowance or benefit paid to the 3,432
individual.
(C) All medical reports and recommendations under sections 3,434
3307.42 3307.62, 3307.44 3307.64, and 3307.49 3307.66 of the 3,436
Revised Code are privileged, except that copies of such medical 3,437
reports or recommendations shall be made available to the 3,438
personal physician, attorney, or authorized agent of the 3,439
individual concerned upon written release received from the 3,440
individual or the individual's agent, or, when necessary for the 3,441
proper administration of the fund, to the board assigned 3,442
physician.
77
(D) Any person who is a member or contributor of the 3,444
system shall be furnished, on written request, with a statement 3,446
of the amount to the credit of the person's account. The board 3,447
need not answer more than one request of a person in any one 3,448
year.
(E) Notwithstanding the exceptions to public inspection in 3,450
division (B)(2) of this section, the board may furnish the 3,451
following information: 3,452
(1) If a member, former member, retirant, contributor, or 3,454
former contributor is subject to an order issued under section 3,455
2907.15 of the Revised Code or is convicted of or pleads guilty 3,456
to a violation of section 2921.41 of the Revised Code, on written 3,457
request of a prosecutor as defined in section 2935.01 of the 3,458
Revised Code, the board shall furnish to the prosecutor the 3,459
information requested from the individual's personal history 3,460
record. 3,461
(2) Pursuant to a court or administrative order issued 3,463
under section 3111.23 or 3113.21 of the Revised Code, the board 3,464
shall furnish to a court or child support enforcement agency the 3,465
information required under that section. 3,466
(3) At the written request of any person, the board shall 3,468
provide to the person a list of the names and addresses of 3,469
members, former members, retirants, contributors, former 3,470
contributors, or beneficiaries. The costs of compiling, copying, 3,471
and mailing the list shall be paid by such person. 3,472
(4) Within fourteen days after receiving from the director 3,474
of human services a list of the names and social security numbers 3,475
of recipients of public assistance pursuant to section 5101.181 3,476
of the Revised Code, the board shall inform the auditor of state 3,477
of the name, current or most recent employer address, and social 3,478
security number of each member whose name and social security 3,479
number are the same as that of a person whose name or social 3,480
security number was submitted by the director. The board and its 3,481
employees shall, except for purposes of furnishing the auditor of 3,482
78
state with information required by this section, preserve the 3,483
confidentiality of recipients of public assistance in compliance 3,484
with division (A) of section 5101.181 of the Revised Code. 3,485
(F) A statement that contains information obtained from 3,487
the system's records that is signed by an officer of the 3,488
retirement system and to which the system's official seal is 3,489
affixed, or copies of the system's records to which the signature 3,490
and seal are attached, shall be received as true copies of the 3,491
system's records in any court or before any officer of this 3,492
state. 3,493
THIS IS AN INTERIM SECTION EFFECTIVE UNTIL JULY 1, 2000. 3,495
Sec. 3307.58 3307.21. Each employer, before employing any 3,504
teacher to whom sections 3307.01 to 3307.72, inclusive, of the 3,506
Revised Code, THIS CHAPTER applies, shall notify such person of 3,508
his THE PERSON'S duties and obligations under such sections THIS 3,509
CHAPTER as a condition of his THE PERSON'S employment. 3,511
Any such appointment or reappointment of any teacher in the 3,513
public day schools of the state, or service upon indefinite 3,514
tenure, shall be conditioned upon the teacher's acceptance of 3,515
such sections THIS CHAPTER, as a part of the contract. 3,516
Sec. 3307.59 3307.211. During September of each year, or 3,525
at such other time as the state teachers retirement board 3,527
approves, each employer shall certify to the board the names of 3,528
all teachers to whom sections 3307.01 to 3307.72, inclusive, of 3,529
the Revised Code, apply THIS CHAPTER APPLIES.
Sec. 3307.60 3307.212. Each employer shall on the first 3,538
day of each calendar month, or at such less frequent intervals as 3,540
the state teachers retirement board approves, notify the board of 3,541
the employment of new teachers, removals, withdrawals, and 3,542
changes in compensation of teachers that have occurred during the 3,543
month preceding or the period since the period covered by the
last notification. 3,544
NOT LATER THAN TEN DAYS AFTER THE DATE OF HIRE, EACH 3,546
EMPLOYER SHALL NOTIFY THE BOARD OF THE EMPLOYMENT OF A NEW 3,547
79
TEACHER. NOTICE SHALL BE ON A FORM PROVIDED BY THE BOARD. 3,548
Sec. 3307.63 3307.213. Each employer shall keep such 3,557
records and shall furnish such information and assistance to the 3,559
state teachers retirement board as it requires in the discharge 3,560
of its duties.
Sec. 3307.214. ON RECEIPT OF NOTICE UNDER SECTION 3307.212 3,562
OF THE REVISED CODE OF THE EMPLOYMENT OF A NEW TEACHER, THE STATE 3,563
TEACHERS RETIREMENT SYSTEM SHALL INFORM THE TEACHER OF THE 3,564
REQUIREMENTS OF SECTION 3307.25 OF THE REVISED CODE AND THE
PROVISIONS OF SECTIONS 3307.88 AND 3307.881 OF THE REVISED CODE. 3,565
Sec. 3307.29 3307.23. Each teacher, upon becoming 3,574
employed, shall file a detailed statement of all his THE 3,576
TEACHER'S previous service as a teacher and of such other service 3,577
as comes under this chapter, and shall furnish such other facts 3,578
as the state teachers retirement board requires for the proper 3,579
operation of the state teachers retirement system. If a teacher 3,580
fails to file the required membership record within ninety days 3,581
after becoming employed, the secretary shall so advise his THE 3,582
TEACHER'S employer who shall thereafter withhold all salary 3,583
payments to such teacher until such record is filed with the 3,584
state teachers retirement board. 3,585
Sec. 3307.30 3307.231. To the extent to which it is used 3,594
in determining the liability of any fund created by section 3,596
3307.65 3307.14 of the Revised Code, the state teachers 3,597
retirement board shall verify the statement provided for in 3,598
section 3307.29 3307.23 of the Revised Code by the best evidence 3,600
it is able to obtain. If official records are not available as 3,601
to the length of service, compensation, or other information 3,602
required, the board may use its discretion as to the evidence to
be accepted. 3,603
Sec. 3307.27 3307.24. The state teachers retirement board 3,612
may deny the right to contribute or the right to become members 3,614
to any class of teachers whose compensation is partly paid by the 3,615
state, who are not serving on a per annum basis, who are on a 3,616
80
temporary basis, or who are not required to have an educator 3,617
license, and it may also make optional with teachers in any such
class their right to contribute, or their right to individual 3,618
entrance into membership. 3,619
The state teachers retirement board may at any time deny 3,621
the right to contribute or the right to membership to any teacher 3,622
whose compensation, though disbursed by an employer, is 3,623
reimbursed to the employer, in whole or in part, from other than 3,624
public funds.
Sec. 3307.26 3307.241. Members of a local district pension 3,633
system maintained under the laws of the state from appropriations 3,635
or contributions made wholly or in part by any employer and 3,636
existing on August 8, 1919, are hereby excluded from membership 3,637
in the state teachers retirement system.
If a majority of all the teachers participating in any such 3,639
local district pension system apply for membership in the state 3,640
teachers retirement system by a petition duly signed and 3,641
verified, approved by their employer, and filed with the state 3,642
teachers retirement board, all the teachers included in the
membership of such local district pension system shall become 3,643
members of the state teachers retirement system at such time 3,644
within three months after the filing of such petition and the 3,645
compliance with sections 3307.01 to 3307.72, inclusive, of the 3,647
Revised Code THIS CHAPTER, relative to the dissolution and 3,648
discontinuance of such local district pension system as the board 3,649
designates.
Sec. 3307.25. (A) AN INDIVIDUAL WHO BECOMES A MEMBER OF 3,651
THE STATE TEACHERS RETIREMENT SYSTEM ON OR AFTER THE DATE ON 3,653
WHICH THE STATE TEACHERS RETIREMENT BOARD ESTABLISHES A PLAN 3,654
UNDER SECTION 3307.81 OF THE REVISED CODE SHALL MAKE AN ELECTION 3,655
UNDER THIS SECTION. NOT LATER THAN ONE HUNDRED EIGHTY DAYS AFTER 3,656
THE DATE ON WHICH EMPLOYMENT BEGINS, THE INDIVIDUAL SHALL ELECT 3,657
TO PARTICIPATE EITHER IN THE PLAN DESCRIBED IN SECTIONS 3307.50 3,658
TO 3307.79 OF THE REVISED CODE OR ONE OF THE PLANS ESTABLISHED 3,660
81
UNDER SECTION 3307.81 OF THE REVISED CODE. IF A FORM EVIDENCING 3,661
AN ELECTION UNDER THIS SECTION IS NOT ON FILE WITH THE EMPLOYER 3,662
AT THE END OF THE ONE-HUNDRED-EIGHTY-DAY PERIOD, THE INDIVIDUAL 3,664
IS DEEMED TO HAVE ELECTED TO PARTICIPATE IN THE PLAN DESCRIBED IN 3,666
SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE. 3,667
(B) AN ELECTION UNDER THIS SECTION SHALL BE MADE IN 3,669
WRITING ON A FORM PROVIDED BY THE RETIREMENT SYSTEM AND FILED 3,670
WITH THE EMPLOYER'S PERSONNEL OFFICER. NOT LATER THAN TEN DAYS 3,672
AFTER RECEIVING THE FORM EVIDENCING THE ELECTION, THE EMPLOYER 3,673
SHALL TRANSMIT TO THE SYSTEM A COPY THAT INCLUDES A STATEMENT 3,674
CERTIFYING THAT IT IS A TRUE AND ACCURATE COPY OF THE ORIGINAL. 3,675
(C) AN ELECTION UNDER THIS SECTION SHALL TAKE EFFECT ON 3,677
THE DATE EMPLOYMENT BEGAN AND, EXCEPT AS PROVIDED IN SECTION 3,678
3307.88 OF THE REVISED CODE, IS IRREVOCABLE ON RECEIPT BY THE 3,679
EMPLOYER. 3,680
(D) AN INDIVIDUAL IS INELIGIBLE TO MAKE AN ELECTION UNDER 3,682
THIS SECTION IF ONE OF THE FOLLOWING APPLIES: 3,683
(1) AT THE TIME EMPLOYMENT BEGINS, THE INDIVIDUAL IS 3,685
ALREADY A MEMBER OR CONTRIBUTOR PARTICIPATING IN THE PLAN 3,686
DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE OR A 3,687
SUPERANNUATE OF THE SYSTEM; 3,689
(2) AN ELECTION TO PARTICIPATE IN AN ALTERNATIVE 3,691
RETIREMENT PLAN UNDER SECTION 3305.05 OF THE REVISED CODE IS IN 3,692
EFFECT FOR EMPLOYMENT COVERED BY THE SYSTEM. 3,693
Sec. 3307.251. AS USED IN THIS SECTION, "ACCUMULATED 3,695
CONTRIBUTIONS" AND "TOTAL SERVICE CREDIT" HAVE THE SAME MEANINGS 3,696
AS IN SECTION 3307.50 OF THE REVISED CODE. 3,697
(A) A MEMBER OF THE STATE TEACHERS RETIREMENT SYSTEM WHO, 3,699
AS OF THE THIRTIETH DAY OF JUNE IMMEDIATELY PRECEDING THE DATE ON 3,701
WHICH THE SYSTEM ESTABLISHES A PLAN UNDER SECTION 3307.81 OF THE 3,703
REVISED CODE, HAS LESS THAN FIVE YEARS OF TOTAL SERVICE CREDIT IS 3,704
ELIGIBLE TO MAKE AN ELECTION UNDER THIS SECTION.
NOT LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE DAY THE 3,706
BOARD FIRST ESTABLISHES ONE OR MORE PLANS UNDER SECTION 3307.81 3,707
82
OF THE REVISED CODE, AN ELIGIBLE MEMBER MAY ELECT TO PARTICIPATE 3,709
IN A PLAN ESTABLISHED UNDER THAT SECTION. IF AN ELECTION IS NOT 3,710
MADE, A MEMBER TO WHOM THIS SECTION APPLIES IS DEEMED TO HAVE 3,712
ELECTED TO CONTINUE PARTICIPATING IN THE PLAN DESCRIBED IN 3,713
SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE. 3,714
(B) AN ELECTION UNDER THIS SECTION SHALL BE MADE IN 3,716
WRITING ON A FORM PROVIDED BY THE SYSTEM AND FILED WITH THE 3,717
SYSTEM.
(C) ON RECEIPT OF AN ELECTION UNDER THIS SECTION, THE 3,719
SYSTEM SHALL DO BOTH OF THE FOLLOWING: 3,720
(1) CREDIT TO THE ACCOUNT OF THE MEMBER IN THE DEFINED 3,722
CONTRIBUTION FUND THE ACCUMULATED CONTRIBUTIONS STANDING TO THE 3,723
MEMBER'S CREDIT IN THE TEACHERS' SAVINGS FUND, PLUS AN AMOUNT 3,724
CALCULATED UNDER SECTION 3307.563 OF THE REVISED CODE; 3,725
(2) CANCEL ALL SERVICE CREDIT AND ELIGIBILITY FOR ANY 3,727
PAYMENT, BENEFIT, OR RIGHT UNDER THE PLAN DESCRIBED IN SECTIONS 3,728
3307.50 TO 3307.79 OF THE REVISED CODE. 3,729
(D) AN ELECTION UNDER THIS SECTION SHALL BE IRREVOCABLE ON 3,732
RECEIPT BY THE SYSTEM. 3,733
Sec. 3307.252. A MEMBER OF THE STATE TEACHERS RETIREMENT 3,735
SYSTEM WHO ELECTS TO PARTICIPATE IN A PLAN ESTABLISHED UNDER 3,736
SECTION 3307.81 OF THE REVISED CODE SHALL BE INELIGIBLE FOR ANY 3,738
BENEFIT OR PAYMENT UNDER SECTIONS 3307.50 TO 3307.79 OF THE 3,739
REVISED CODE AND, EXCEPT AS PROVIDED IN SECTION 3307.88 OF THE 3,741
REVISED CODE, SHALL BE FOREVER BARRED FROM CLAIMING OR PURCHASING 3,743
SERVICE CREDIT WITH THE SYSTEM OR ANY OTHER OHIO STATE RETIREMENT 3,744
SYSTEM, AS DEFINED IN SECTION 3307.741 OF THE REVISED CODE, FOR 3,745
SERVICE COVERED BY THE ELECTION. 3,746
Sec. 3307.51 3307.26. Each teacher shall contribute eight 3,755
per cent of his THE TEACHER'S earned compensation to the 3,757
teachers' savings fund, except that the state teachers retirement 3,759
board may raise the contribution rate to the fund to a rate not 3,760
greater than ten per cent of the teacher's earned compensation. 3,761
Such FOR TEACHERS PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3,762
83
3307.50 TO 3307.79 OF THE REVISED CODE, CONTRIBUTIONS SHALL BE 3,764
DEPOSITED IN THE TEACHERS' SAVINGS FUND. FOR TEACHERS 3,765
PARTICIPATING IN A PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE 3,766
REVISED CODE, CONTRIBUTIONS SHALL BE DEPOSITED IN THE DEFINED 3,768
CONTRIBUTION FUND. CONTRIBUTIONS MADE PURSUANT TO THIS SECTION 3,769
SHALL NOT EXCEED THE LIMITS ESTABLISHED BY SECTION 415 OF THE 3,770
"INTERNAL REVENUE CODE OF 1986," 100 STAT. 2085, 26 U.S.C.A. 415, 3,774
AS AMENDED.
THE contribution FOR ALL TEACHERS shall be deducted by the 3,778
employer on each payroll in an amount equal to the applicable per 3,779
cent of such contributors' THE TEACHERS' paid compensation for 3,781
such payroll period or other period as the state teachers 3,782
retirement board may approve, provided all. ALL CONTRIBUTIONS ON 3,783
EARNED COMPENSATION FOR TEACHERS PARTICIPATING IN PLANS
ESTABLISHED UNDER SECTION 3307.81 OF THE REVISED CODE SHALL BE 3,784
REMITTED AT INTERVALS REQUIRED BY THE STATE TEACHERS RETIREMENT 3,785
SYSTEM UNDER SECTION 3307.86 OF THE REVISED CODE. ALL
contributions on earned compensation are FOR TEACHERS 3,787
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3,788
3307.79 OF THE REVISED CODE SHALL BE remitted to the state 3,789
teachers retirement system by the thirtieth day of June of each 3,790
year. Each school district shall encumber sufficient moneys by 3,791
the thirtieth day of June of each year to account for the 3,792
difference, if any, that may exist between contributions that 3,793
would be withheld based upon compensation earned by a teacher 3,794
during the year ending the thirtieth day of June and the 3,795
contributions withheld based upon compensation paid to the 3,796
teacher for the year. Deductions from payroll for contributions 3,797
under this section, on an annual basis, shall not exceed eight 3,798
per cent or other percentage established by the state teachers 3,799
retirement board authorized by this section. 3,800
At retirement UNDER THE PLAN DESCRIBED IN SECTIONS 3307.50 3,802
TO 3307.79 OF THE REVISED CODE, or upon a member's death prior to 3,803
retirement UNDER THAT PLAN, if contributions have been made after 3,804
84
September 1, 1959, in excess of the contributions normally 3,806
required to provide the retirement or survivor benefit, such THE 3,807
excess contributions may be refunded to the member, to his THE 3,809
MEMBER'S beneficiary, or to his THE MEMBER'S estate in a lump 3,811
sum, or may be used to provide additional income.
The board may determine with regard to any member 3,813
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3,814
3307.79 OF THE REVISED CODE whether the limits established by 3,815
division (B)(3)(C) of section 3307.38 3307.58 OF THE REVISED CODE 3,816
have resulted in exclusion from use in the calculation of 3,818
benefits under section 3307.38 3307.58, 3307.39 3307.59, or 3,820
3307.50 3307.60 of the Revised Code of any compensation on which 3,821
contributions have been made under this section. The board may 3,822
adopt rules in accordance with section 111.15 of the Revised Code 3,823
providing for the disposition of contributions attributable to 3,824
such compensation and may dispose of the contributions in 3,825
accordance with those rules. Any disposition of contributions 3,826
made by the board in accordance with the rules shall be final. 3,827
The deductions UNDER THIS SECTION shall be made even though 3,829
the minimum compensation provided by law for any teacher shall be 3,830
reduced thereby. Every teacher shall be deemed to consent to the 3,831
deductions made and shall receipt in full for his salary or 3,833
compensation, and payment. PAYMENT less the deductions shall be 3,835
a complete discharge and acquittance of all claims and demands 3,836
for the services rendered by the person during the period covered 3,837
by the payment. 3,838
Additional deposits may be made to a member's account IN 3,840
THE TEACHERS' SAVINGS FUND OR DEFINED CONTRIBUTION FUND, subject 3,842
to rules of the board. At retirement, the amount deposited with 3,843
interest may be used to provide additional annuity income. The 3,844
additional deposits may be refunded to the member before 3,845
retirement, and shall be refunded if the member withdraws his THE 3,846
MEMBER'S refundable account. The deposits may be refunded to the 3,847
beneficiary or estate if the member dies before retirement. 3,848
85
Sec. 3307.511 3307.261. Except as otherwise provided in 3,857
section 124.385 of the Revised Code, any teacher who is granted 3,859
disability leave pursuant to a program sponsored by his THE 3,860
TEACHER'S employer, whereby the teacher receives a percentage of 3,861
his THE TEACHER'S salary while on disability leave, shall not be 3,862
required to make contributions for time off while on disability 3,863
leave.
Except as otherwise provided in section 124.385 of the 3,865
Revised Code, each employer described in division (A) of section 3,866
3307.01 of the Revised Code who sponsors a disability leave 3,867
program shall make the periodic employee and employer 3,868
contributions, in the amounts set pursuant to sections 3307.51
3307.26 and 3307.53 3307.28 of the Revised Code, for teachers 3,870
granted disability leave, based on the teacher's rate of pay in 3,872
effect at the time disability leave was granted.
Sec. 3307.27. THE CONTRIBUTIONS REQUIRED UNDER SECTION 3,874
3307.26 OF THE REVISED CODE MAY BE PAID BY THE EMPLOYER IN 3,875
ACCORDANCE WITH DIVISION (h) OF SECTION 414 OF THE "INTERNAL 3,878
REVENUE CODE OF 1986," 100 STAT. 2085, 26 U.S.C.A. 414(h), AS 3,881
AMENDED.
Sec. 3307.53 3307.28. Each employer shall pay annually to 3,890
the employers' trust fund STATE TEACHERS RETIREMENT SYSTEM an 3,891
amount certified by the secretary which shall be a certain per 3,893
cent of the earnable compensation of all members, and which shall 3,894
be known as the "employer contribution." The FOR MEMBERS 3,895
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3,896
3307.79 OF THE REVISED CODE, THE EMPLOYER CONTRIBUTION SHALL BE 3,898
DEPOSITED INTO THE EMPLOYERS' TRUST FUND. FOR MEMBERS
PARTICIPATING IN A PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE 3,900
REVISED CODE, THE EMPLOYER CONTRIBUTION SHALL BE DEPOSITED INTO 3,902
THE DEFINED CONTRIBUTION FUND IN ACCORDANCE WITH THE PLAN
SELECTED BY THE MEMBER, LESS THE AMOUNT TRANSFERRED UNDER SECTION 3,905
3307.84 OF THE REVISED CODE. 3,906
THE rate per cent of such THE contribution shall be fixed 3,909
86
by the actuary on the basis of his THE ACTUARY'S evaluation of 3,910
the liabilities of the state teachers retirement system, not to 3,912
exceed fourteen per cent, and shall be approved by the state 3,913
teachers retirement board. The state teachers retirement board 3,914
may raise the rate per cent of the contribution to fourteen per 3,915
cent of the earnable compensation of all members. In making such 3,916
evaluation, the actuary shall use, as the actuarial assumptions, 3,917
such interest rates and mortality and other tables as are adopted 3,918
by the state teachers retirement board. He THE ACTUARY shall 3,919
compute the percentage of such earnable compensation, to be known 3,921
as the "employer rate," required annually to fund the liability 3,922
for all benefits provided by this chapter UNDER SECTIONS 3307.50 3,923
TO 3307.79 OF THE REVISED CODE, after deducting therefrom the 3,924
annuity and other benefits provided by the member's accumulated 3,925
contributions, AS DEFINED IN SECTION 3307.50 OF THE REVISED CODE, 3,926
deposits, and other appropriations, and to fund any deficiencies 3,927
in the various funds described in DIVISIONS (A) TO (F) OF section 3,929
3307.65 3307.14 of the Revised Code. 3,930
Sec. 3307.61 3307.29. Each employer shall cause to be 3,939
deducted, on each payroll of a contributor for each payroll 3,941
period, the contribution payable by such contributor as provided 3,942
in sections 3307.01 to 3307.72, inclusive, of the Revised Code 3,943
THIS CHAPTER. Each employer shall certify to the treasurer of 3,944
said employer on each payroll a statement as voucher for the 3,945
amounts so deducted and for the amount of the normal contribution 3,946
and the deficiency contribution payable by the employer. Each 3,947
employer shall send a duplicate of such statement to the
secretary of the state teachers retirement board. 3,948
Sec. 3307.62 3307.291. The treasurer of each employer, on 3,958
receipt from the employer of the voucher for deductions from the 3,959
compensation of teachers and for the contributions of the 3,960
employer, shall transmit monthly or at such times as the state 3,962
teachers retirement board designates the amounts specified in
such voucher to the secretary of the board. The secretary of the 3,963
87
board, after making a record of all such receipts, shall pay them 3,965
to the treasurer of state for use according to sections 3307.01 3,967
to 3307.72 of the Revised Code THIS CHAPTER. 3,968
Sec. 3307.64 3307.30. Employers who obtain funds directly 3,977
by taxation shall levy annually such additional taxes as are 3,979
required to provide the additional funds necessary to meet the 3,980
financial requirements imposed upon them by sections 3307.01 to 3,981
3307.72, inclusive, of the Revised Code THIS CHAPTER, and said 3,982
tax shall be placed before and in preference to all other items 3,983
except for sinking fund or interest purposes. 3,984
Sec. 3307.56 3307.31. Payments by boards of education to 3,993
the employers' trust fund of the state teachers retirement 3,994
system, as provided in sections 3307.61 3307.29 and 3307.62 3,995
3307.291 of the Revised Code, shall be made from the amount 3,997
allocated under Chapter 3317. of the Revised Code prior to its 3,998
distribution to the individual school districts. The amount due 3,999
from each school district shall be certified by the secretary of 4,000
the system to the superintendent of public instruction monthly, 4,001
or at such times as may be determined by the state teachers 4,002
retirement board.
The superintendent shall deduct, from the amount allocated 4,004
to each district under Chapter 3317. of the Revised Code, the 4,005
entire amounts due to the system from such district upon the 4,006
certification to him THE SUPERINTENDENT by the secretary thereof. 4,008
The superintendent shall certify to the director of budget 4,010
and management the amounts thus due the system for payment. 4,011
Sec. 3307.75 3307.32. All amounts due the state teachers 4,020
retirement system from the state treasury pursuant to this 4,022
chapter shall be promptly paid upon warrant of the auditor of 4,023
state pursuant to a voucher approved by the director of budget
and management. 4,024
Sec. 3307.33. MEMBERSHIP IN THE STATE TEACHERS RETIREMENT 4,026
SYSTEM SHALL CEASE ON OCCURRENCE OF ANY OF THE FOLLOWING: 4,027
RECEIPT OF PAYMENT PURSUANT TO SECTION 3307.56 OF THE REVISED 4,028
88
CODE OR UNDER A PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE 4,030
REVISED CODE; RETIREMENT AS PROVIDED IN SECTIONS 3307.58 AND 4,031
3307.59 OF THE REVISED CODE OR UNDER A PLAN ESTABLISHED UNDER 4,033
SECTION 3307.81 OF THE REVISED CODE; DEATH; OR DENIAL OF 4,034
MEMBERSHIP PURSUANT TO SECTION 3307.24 OF THE REVISED CODE. 4,035
Sec. 3307.381 3307.35. (A) As used in this section: 4,044
(1) "Superannuate" means a former teacher receiving a 4,046
service retirement allowance under section 3307.38 or 3307.39 of 4,047
the Revised Code from the state teachers retirement system or a 4,048
combined service retirement benefit paid in accordance with 4,049
section 3307.41 of the Revised Code, regardless of which 4,050
retirement system is paying the benefit. 4,051
(2), "Other OTHER system retirant" means a member or former 4,054
member of the public employees retirement system, Ohio police and 4,056
fire pension fund, school employees retirement system, state 4,058
highway patrol retirement system, or Cincinnati retirement system 4,059
who is receiving age and service or commuted age and service 4,060
retirement, or a disability benefit from a system of which the 4,061
retirant is a member or former member.
(B) A superannuate may be employed for temporary service 4,063
as a teacher, provided: 4,064
(1) At least two months have elapsed since the effective 4,066
date of the superannuate's retirement UNDER THIS CHAPTER. 4,067
(2) Such employment does not exceed eighty-five school 4,069
days, or the equivalent thereof in fractional service, during any 4,070
school year. 4,071
(C) A superannuate may be employed as a full-time teacher, 4,073
provided: 4,074
(1) The superannuate has received a retirement AN 4,076
allowance OR BENEFIT from the state teachers retirement system 4,079
UNDER THIS CHAPTER for at least eighteen months. 4,080
(2) The employer requests the retirement board of the 4,082
state teachers retirement system to authorize such employment. 4,083
(D) An other system retirant may be employed as a teacher, 4,085
89
provided at least two months have elapsed since the effective 4,086
date of the retirant's retirement or receipt of a disability 4,087
benefit. 4,088
(E) If a superannuate or other system retirant is employed 4,090
in accordance with division (B), (C), or (D) of this section, the 4,092
superannuate or retirant shall contribute to the state teachers
retirement system in accordance with section 3307.51 3307.26 of 4,094
the Revised Code and the employer shall contribute in accordance 4,096
with sections 3307.53 3307.28 and 3307.56 3307.31 of the Revised 4,098
Code. Such contributions shall be received as specified in 4,100
section 3307.65 3307.14 of the Revised Code. A superannuate or 4,102
other system retirant employed as a teacher is not a member of 4,103
the state teachers retirement system, does not have any of the 4,104
rights, privileges, or obligations of membership, except as 4,105
provided in this section, and is not eligible to receive health, 4,106
medical, hospital, or surgical benefits under section 3307.74 4,107
3307.39 of the Revised Code for employment subject to this 4,109
section.
(F) The employer that employs a superannuate or other 4,111
system retirant shall notify the state teachers retirement board 4,112
of the employment not later than the end of the month in which 4,113
the employment commences. Any overpayment of benefits to a 4,114
superannuate by the retirement system resulting from an 4,115
employer's failure to give timely notice may be charged to the 4,116
employer and may be certified and deducted as provided in section 4,117
3307.56 3307.31 of the Revised Code. 4,118
(G) On receipt of notice from an employer that a person 4,120
who is an other system retirant has been employed, the state 4,121
teachers retirement system shall notify the state retirement 4,122
system of which the other system retirant was a member of such 4,123
employment. 4,124
(H) A superannuate or other system retirant who has 4,126
received a retirement AN allowance or disability benefit for less 4,129
than the applicable period under division (B), (C), or (D) of 4,130
90
this section when employment as a teacher commences shall forfeit 4,132
the retirement allowance or disability benefit for any month the 4,134
superannuate or retirant is employed prior to the expiration of 4,135
such period. Contributions shall be made to the retirement 4,136
system from the first day of such employment, but service and 4,137
contributions for that period shall not be used in the 4,138
calculation of any benefit payable to the superannuate or other 4,139
system retirant, and those contributions shall be refunded on the 4,140
superannuate's or retirant's death or termination of the 4,142
employment. Contributions made on compensation earned after the 4,143
expiration of such period shall be used in calculation of the
benefit or payment due under this section. 4,144
(I) On receipt of notice from the Ohio police and fire 4,147
pension fund, public employees retirement system, or school 4,149
employees retirement system of the re-employment of a
superannuate, the state teachers retirement system shall not pay, 4,150
or if paid shall recover, the amount to be forfeited by the 4,151
superannuate in accordance with section 145.38, 742.26, or 4,152
3309.341 of the Revised Code. 4,153
(J)(1) On termination of employment under this section, a 4,155
superannuate or other system retirant may file an application 4,156
with the state teachers retirement system for a benefit under 4,157
this division, which shall consist of a single life annuity 4,158
having a reserve equal to the amount of the superannuate's or 4,159
retirant's accumulated contributions, AS DEFINED IN SECTION 4,161
3307.50 OF THE REVISED CODE, for the period of employment and an 4,162
equal amount from the employers' trust created by section 3307.65 4,163
3307.14 of the Revised Code, plus interest credited to the date 4,165
of retirement at the then current actuarial rate of interest. 4,166
The superannuate or other system retirant shall elect either to 4,167
receive the benefit as a monthly annuity for life or a lump-sum 4,168
payment discounted to the present value using the current 4,169
actuarial assumption rate of interest, except that if the monthly 4,170
annuity would be less than twenty-five dollars per month the 4,172
91
superannuate or retirant shall receive a lump-sum payment. 4,174
(2) A benefit payable under this division shall commence 4,176
on the latest of the following: 4,177
(a) The last day for which compensation for employment as 4,179
a teacher was paid; 4,180
(b) Attainment by the superannuate or other system 4,182
retirant of age sixty-five; 4,183
(c) If the superannuate or other system retirant was 4,185
previously employed under this section and previously received or 4,186
is receiving a benefit under this division, completion of a 4,187
period of twelve months since the effective date of the last 4,188
benefit under this division. 4,189
(3)(a) If a superannuate or other system retirant dies 4,191
while employed in employment subject to this section, a lump-sum 4,192
payment calculated in accordance with division (J)(1) of this 4,193
section shall be paid to the beneficiary designated under 4,194
division (D) of section 3307.48 3307.562 of the Revised Code. 4,195
(b) If at the time of death a superannuate or other system 4,198
retirant receiving a monthly annuity has received less than the 4,199
superannuate or retirant would have received as a lump-sum 4,200
payment, the difference between the amount received and the 4,201
amount that would have been received as a lump-sum payment shall 4,203
be paid to the superannuate's or retirant's beneficiary 4,204
designated under division (D) of section 3307.48 3307.562 of the 4,206
Revised Code. 4,207
(4) No amount received under this section shall be 4,209
included in determining an additional benefit under section 4,210
3307.403 3307.67 of the Revised Code or any other post-retirement 4,212
benefit increase. 4,213
(K) If the disability benefit of an other system retirant 4,215
employed under this section is terminated, the retirant shall 4,216
become a member of the state teachers retirement system, 4,218
effective on the first day of the month next following the 4,219
termination, with all the rights, privileges, and obligations of 4,220
92
membership. If such person, after the termination of the 4,221
retirant's disability benefit, earns two years of service credit 4,223
under this retirement system or under the public employees 4,224
retirement system, Ohio police and fire pension fund, school 4,225
employees retirement system, or state highway patrol retirement 4,227
system, the retirant's prior contributions as an other system 4,229
retirant under this section shall be included in the retirant's 4,230
total service credit, AS DEFINED IN SECTION 3307.50 OF THE 4,231
REVISED CODE, as a state teachers retirement system member, and 4,233
the retirant shall forfeit all rights and benefits of this 4,235
section. Not more than one year of credit may be given for any 4,236
period of twelve months.
(L) A superannuate shall not receive the pension portions 4,238
of a retirement PORTION OF AN allowance OR BENEFIT THAT IS 4,239
ATTRIBUTABLE TO CONTRIBUTIONS MADE UNDER SECTION 3307.28 OF THE 4,240
REVISED CODE for any period for which the superannuate is 4,242
compensated under a private contract, or through an independent 4,243
contractor, whereby the superannuate is to perform personal or 4,245
professional services for the employer by which the superannuate 4,246
was employed at the time of retirement. 4,248
(M) This section does not affect the receipt of benefits 4,250
by or eligibility for benefits of any person who on August 20, 4,251
1976, was receiving a disability benefit or service retirement 4,252
pension or allowance from a state or municipal retirement system 4,253
in Ohio and was a member of any other state or municipal 4,254
retirement system of this state. 4,255
(N) The retirement board of the state teachers retirement 4,257
system BOARD may make the necessary rules to carry into effect 4,258
this section and to prevent the abuse of the rights and 4,260
privileges thereunder. 4,261
Sec. 3307.72 3307.37. (A) Notwithstanding any other 4,270
provision of this chapter, any payment that is to be made under a 4,272
pension, annuity, allowance, or other type of benefit PAYABLE 4,273
UNDER THIS CHAPTER, other than a survivorship benefit, that has 4,275
93
been granted to a person under this chapter, any payment of 4,276
accumulated contributions standing to a person's credit under 4,277
this chapter, and any payment of any other amounts to be paid to 4,278
a person under this chapter upon the person's withdrawal of 4,279
contributions pursuant to this chapter shall be subject to any 4,280
withholding order issued pursuant to section 2907.15 of the
Revised Code or division (C)(2)(b) of section 2921.41 of the 4,281
Revised Code, and the state teacher's retirement board shall 4,282
comply with that withholding order in making the payment. 4,283
(B) Notwithstanding any other provision of this chapter, 4,285
if the board receives notice pursuant to section 2907.15 of the 4,286
Revised Code or division (D) of section 2921.41 of the Revised 4,287
Code that a person who has accumulated contributions standing to 4,288
the person's credit pursuant to this chapter is charged with a 4,290
violation of section 2907.02, 2907.03, 2907.04, 2907.05, or 4,291
2921.41 of the Revised Code, no payment of those accumulated 4,292
contributions, of any other amounts to be paid under this chapter 4,293
upon the person's withdrawal of contributions pursuant to this 4,294
chapter, or of any amount to be paid as a lump sum or single 4,296
payment under section 3307.381 3307.35 of the Revised Code shall 4,297
be made prior to whichever of the following is applicable: 4,299
(1) If the person is convicted of or pleads guilty to the 4,301
charge and no motion for a withholding order for purposes of 4,302
restitution has been filed under section 2907.15 of the Revised 4,303
Code or division (C)(2)(b)(i) of section 2921.41 of the Revised 4,305
Code, thirty days after the day on which final disposition of the 4,306
charge is made;
(2) If the person is convicted of or pleads guilty to the 4,308
charge and a motion for a withholding order for purposes of 4,309
restitution has been filed under section 2907.15 of the Revised 4,311
Code or division (C)(2)(b)(i) of section 2921.41 of the Revised 4,313
Code, the day on which the court decides the motion; 4,314
(3) If the charge is dismissed or the person is found not 4,316
guilty or not guilty by reason of insanity of the charge, the day 4,317
94
on which final disposition of the charge is made. 4,318
Sec. 3307.74 3307.39. (A) The state teachers retirement 4,327
board may enter into an agreement with insurance companies, 4,329
health insuring corporations, or government agencies authorized 4,331
to do business in the state for issuance of a policy or contract 4,332
of health, medical, hospital, or surgical benefits, or any 4,333
combination thereof, for those individuals receiving, UNDER THE 4,334
PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED 4,335
CODE, service retirement or a disability or survivor benefit 4,337
subscribing WHO SUBSCRIBE to the plan. Notwithstanding any other 4,338
provision of this chapter, the policy or contract may also 4,339
include coverage for any eligible individual's spouse and 4,340
dependent children and for any of the individual's sponsored 4,341
dependents as the board considers appropriate. If all or any 4,343
portion of the policy or contract premium is to be paid by any 4,344
individual receiving service retirement or a disability or 4,345
survivor benefit, the individual shall, by written authorization, 4,346
instruct the board to deduct the premium agreed to be paid by the 4,348
individual to the companies, corporations, or agencies. 4,349
The board may contract for coverage on the basis of part or 4,352
all of the cost of the coverage to be paid from appropriate funds 4,353
of the state teachers retirement system. The cost paid from the 4,354
funds of the system shall be included in the employer's 4,356
contribution rate provided by section 3307.53 3307.28 of the 4,357
Revised Code. 4,358
THE BOARD MAY ENTER INTO AN AGREEMENT UNDER THIS DIVISION 4,360
FOR COVERAGE OF RECIPIENTS OF BENEFITS UNDER A PLAN ESTABLISHED 4,361
UNDER SECTION 3307.81 OF THE REVISED CODE IF THE PLAN SELECTED 4,362
INCLUDES HEALTH, MEDICAL, HOSPITAL, OR SURGICAL BENEFITS, OR ANY 4,363
COMBINATION THEREOF. THE BOARD MAY CONTRACT FOR COVERAGE ON THE 4,364
BASIS THAT THE COST OF THE COVERAGE WILL BE PAID BY THE RECIPIENT 4,366
OR BY THE PLAN TO WHICH THE RECIPIENT CONTRIBUTED UNDER THIS 4,367
CHAPTER. THE BOARD MAY OFFER TO RECIPIENTS PLANS THAT PROVIDE 4,368
FOR DIFFERENT LEVELS OF COVERAGE OR FOR PREPAYMENT OF THE COST OF 4,369
95
COVERAGE.
The board may provide for self-insurance of risk or level 4,371
of risk as set forth in the contract with the companies, 4,372
corporations, or agencies, and may provide through the 4,373
self-insurance method specific benefits as authorized by the 4,374
rules of the board. 4,375
(B) If the board provides health, medical, hospital, or 4,377
surgical benefits through any means other than a health insuring 4,379
corporation, it shall offer to each individual eligible for the 4,381
benefits the alternative of receiving benefits through enrollment 4,382
in a health insuring corporation, if all of the following apply: 4,384
(1) The health insuring corporation provides health care 4,387
services in the geographical area in which the individual lives; 4,389
(2) The eligible individual was receiving health care 4,391
benefits through a health maintenance organization or a health 4,393
insuring corporation before retirement; 4,394
(3) The rate and coverage provided by the health insuring 4,397
corporation to eligible individuals is comparable to that 4,400
currently provided by the board under division (A) of this
section. If the rate or coverage provided by the health insuring 4,402
corporation is not comparable to that currently provided by the 4,404
board under division (A) of this section, the board may deduct 4,405
the additional cost from the eligible individual's monthly 4,406
benefit.
The health insuring corporation shall accept as an enrollee 4,410
any eligible individual who requests enrollment.
The board shall permit each eligible individual to change 4,412
from one plan to another at least once a year at a time 4,413
determined by the board. 4,414
(C) The board shall, beginning the month following receipt 4,416
of satisfactory evidence of the payment for coverage, make a 4,417
monthly payment to each recipient of service retirement, or a 4,418
disability or survivor benefit under the state teachers 4,419
retirement system PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 4,420
96
OF THE REVISED CODE who is eligible for insurance coverage under 4,421
part B of "The Social Security Amendments of 1965," 79 Stat. 301, 4,422
42 U.S.C.A. 1395j, as amended, AND MAY MAKE A MONTHLY PAYMENT TO 4,424
A RECIPIENT OF BENEFITS UNDER A PLAN ESTABLISHED UNDER SECTION 4,425
3307.81 OF THE REVISED CODE WHO IS ELIGIBLE FOR THAT INSURANCE 4,426
COVERAGE IF THE MONTHLY PAYMENTS ARE FUNDED THROUGH THE PLAN 4,428
SELECTED BY THE RECIPIENT. The payment shall be the greater of 4,429
the following:
(1) Twenty-nine dollars and ninety cents; 4,431
(2) An amount determined by multiplying the basic premium 4,434
for the coverage by a percentage, not exceeding ninety per cent, 4,435
determined by multiplying the years of service used in 4,436
calculating the service retirement or benefit OR, IN THE CASE OF 4,437
A RECIPIENT OF BENEFITS UNDER A PLAN ESTABLISHED UNDER SECTION 4,438
3307.81 OF THE REVISED CODE, THE PARTICIPANT'S YEARS OF SERVICE
by a percentage determined by the board not exceeding three per 4,439
cent. 4,440
THE BOARD SHALL MAKE ALL PAYMENTS UNDER THIS DIVISION 4,442
BEGINNING THE MONTH FOLLOWING RECEIPT OF SATISFACTORY EVIDENCE OF 4,443
THE PAYMENT FOR THE COVERAGE. 4,444
(D) The board shall establish by rule requirements for the 4,446
coordination of any coverage, payment, or benefit provided under 4,448
this section or section 3307.405 3307.61 of the Revised Code with 4,450
any similar coverage, payment, or benefit made available to the 4,451
same individual by the public employees retirement system, Ohio 4,452
police and fire pension fund, school employees retirement system, 4,454
or state highway patrol retirement system. 4,455
(E) The board shall make all other necessary rules 4,457
pursuant to the purpose and intent of this section. 4,458
Sec. 3307.741 3307.391. The state teachers retirement 4,467
board shall establish a program under which members of the STATE 4,469
TEACHERS retirement system, employers on behalf of members, and 4,471
persons receiving service, disability, or survivor benefits UNDER 4,472
THIS CHAPTER are permitted to participate in contracts for 4,474
97
long-term health care insurance. Participation may include 4,475
dependents and family members. If a participant in a contract 4,476
for long-term care insurance leaves employment, the participant 4,477
and the participant's dependents and family members may, at their 4,479
election, continue to participate in a program established under 4,480
this section in the same manner as if the participant had not 4,481
left employment, except that no part of the cost of the insurance 4,483
shall be paid by the participant's former employer. 4,484
Such program may be established independently or jointly 4,486
with one or more of the other retirement systems. For purposes 4,487
of this section, "retirement systems" has the same meaning as in 4,488
division (A) of section 145.581 of the Revised Code. 4,489
The board may enter into an agreement with insurance 4,491
companies, health insuring corporations, or government agencies 4,493
authorized to do business in the state for issuance of a 4,494
long-term care insurance policy or contract. However, prior to 4,495
entering into such an agreement with an insurance company or 4,496
health insuring corporation, the board shall request the 4,497
superintendent of insurance to certify the financial condition of 4,500
the company or corporation. The board shall not enter into the 4,501
agreement if, according to that certification, the company or 4,502
corporation is insolvent, is determined by the superintendent to 4,503
be potentially unable to fulfill its contractual obligations, or 4,505
is placed under an order of rehabilitation or conservation by a 4,506
court of competent jurisdiction or under an order of supervision 4,507
by the superintendent. 4,508
The board shall adopt rules in accordance with section 4,510
111.15 of the Revised Code governing the program. The rules 4,511
shall establish methods of payment for participation under this 4,512
section, which may include establishment of a payroll deduction 4,513
plan under section 3307.281 3307.70 of the Revised Code, 4,514
deduction of the full premium charged from a person's service, 4,516
disability, or survivor benefit, or any other method of payment 4,517
considered appropriate by the board. If the program is 4,518
98
established jointly with one or more of the other retirement 4,519
systems, the rules also shall establish the terms and conditions 4,520
of such joint participation. 4,521
Sec. 3307.40 3307.392. (A) Upon the death of a retirant 4,530
or disability benefit recipient who at the time of death is 4,532
receiving a service retirement allowance or disability benefit 4,533
pursuant to this chapter, a lump sum payment of one thousand 4,534
dollars shall be paid to any designated or qualified beneficiary 4,535
under division (D) of section 3307.48 of the Revised Code, or if 4,536
none, the state teachers retirement board may approve payment to 4,537
either the person responsible for the burial expenses or to the 4,538
decedent's estate following the completion of an application on a 4,539
form approved by the board. 4,540
(B) The state teachers retirement board may establish a 4,542
death benefit plan providing for a lump sum payment to eligible 4,543
beneficiaries, in addition to the lump sum payment made under 4,544
division (A) of this section 3307.661 OF THE REVISED CODE, on the 4,545
death of a person receiving a service retirement AN allowance or 4,548
disability benefit pursuant to this chapter. Any plan 4,550
established under this division SECTION shall be administered 4,552
separately from any other benefit or plan governed by this 4,553
chapter and shall require that charges paid by participants cover 4,554
the additional liability resulting from the death benefit as 4,555
determined by an actuary employed by the board. Participation 4,556
shall be limited to persons receiving a service retirement AN 4,557
allowance or disability benefit pursuant to this chapter. 4,559
The board shall establish charges and conditions of 4,561
eligibility for participation in any plan established under this 4,562
division SECTION. A person who elects to participate in a plan 4,563
by written authorization shall instruct the board to deduct the 4,565
amount charged under the plan from his service retirement THE 4,567
PERSON'S allowance or disability benefit. The board may enter 4,568
into contracts with insurance companies, financial institutions, 4,569
or other entities for the purpose of providing a death benefit 4,570
99
plan under this division SECTION. 4,571
Sec. 3307.71 3307.41. The right of a person to a pension, 4,580
an annuity, or a retirement allowance itself, any optional 4,583
benefit, OR any other right OR BENEFIT accrued or accruing to any 4,585
person, under sections 3307.01 to 3307.74 of the Revised Code
THIS CHAPTER, or the various funds created by section 3307.65 4,588
3307.14 of the Revised Code and all moneys and investments and 4,590
income thereof, are exempt from any state tax, except the tax
imposed by section 5747.02 of the Revised Code and are exempt 4,592
from any county, municipal, or other local tax, except taxes 4,593
imposed pursuant to section 5748.02 or 5748.08 of the Revised 4,594
Code and, except as provided in sections 3111.23, 3113.21, and 4,596
3307.72 3307.37 of the Revised Code, shall not be subject to 4,597
execution, garnishment, attachment, the operation of bankruptcy 4,598
or insolvency laws, or any other process of law whatsoever, and 4,599
shall be unassignable except as specifically provided in THIS 4,600
CHAPTER OR sections 3111.23, AND 3113.21, and 3307.01 to 3307.74 4,601
of the Revised Code. 4,602
Sec. 3307.711 3307.42. The granting TO ANY PERSON of a 4,612
retirement AN allowance, annuity, or pension to any person, AS 4,613
DEFINED IN SECTION 3307.50 OF THE REVISED CODE, OR THE GRANTING
OF A BENEFIT UNDER A PLAN ESTABLISHED UNDER SECTION 3307.81 OF 4,615
THE REVISED CODE, pursuant to AN action of the state teachers'
retirement board vests a right in such person, so long as he THE 4,617
PERSON remains the beneficiary of any of the funds established by 4,619
section 3307.65 3307.14 of the Revised Code, to receive such 4,620
retirement THE allowance, annuity, or pension, OR BENEFIT at the 4,622
rate fixed at the time of granting such retirement THE allowance, 4,623
annuity, or pension, OR BENEFIT. Such right shall also be vested 4,625
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 4,626
Revised Code. 4,627
Sec. 3307.712 3307.44. (A) Any person who is receiving an 4,636
allowance, AS DEFINED IN SECTION 3307.50 OF THE REVISED CODE, 4,637
100
benefit, or any increase under this chapter may, at any time, 4,639
waive his THE PERSON'S rights thereto, or to a portion thereof, 4,640
by filing a written notice of waiver with the state teachers 4,641
retirement board. Except as provided in division (B) of this 4,642
section, such waiver shall remain in effect until the first day 4,643
of the month following his THE PERSON'S death or the filing of 4,644
his THE PERSON'S written cancellation of such waiver with the 4,646
state teachers retirement board. Any amount so waived shall 4,647
forever be forfeited.
(B) If a beneficiary waives in writing all claim to any 4,649
benefits under this chapter prior to receipt of the first 4,650
benefit, the waiver shall put into effect the succession of 4,651
beneficiaries as provided in division (C) of section 3307.48 4,652
3307.562 of the Revised Code and shall be irrevocable. 4,654
Sec. 3307.4012 3307.46. Whenever the limits established by 4,663
section 415 of the "Internal Revenue Code of 1986," 100 Stat. 4,665
2085, 26 U.S.C.A. 415, as amended, are raised, the state teachers 4,666
retirement board may increase the amount of the pension, benefit, 4,667
or allowance of any person whose pension, benefit, or allowance 4,668
payable under section 3307.38 3307.58, 3307.39 3307.59, 3307.403 4,669
3307.63, 3307.43 3307.631, or 3307.431 3307.67 of the Revised 4,671
Code OR A PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE REVISED 4,672
CODE was limited by the application of section 415. The amount 4,674
of the increased pension, benefit, or allowance shall not exceed
the lesser of the amount the person would have received if the 4,675
limits established by section 415 had not been applied or the 4,676
amount the person is eligible to receive subject to the new 4,677
limits established by section 415.
Sec. 3307.461. THE STATE TEACHERS RETIREMENT BOARD MAY 4,679
ESTABLISH AND MAINTAIN A QUALIFIED GOVERNMENTAL EXCESS BENEFIT 4,680
ARRANGEMENT THAT MEETS THE REQUIREMENTS OF DIVISION (m) OF 4,681
SECTION 415 OF THE "INTERNAL REVENUE CODE OF 1986," 100 STAT. 4,683
2085, 26 U.S.C.A. 415, AS AMENDED, AND ANY REGULATIONS ADOPTED 4,685
THEREUNDER. IF ESTABLISHED, THE ARRANGEMENT SHALL BE A SEPARATE 4,686
101
PORTION OF THE STATE TEACHERS RETIREMENT SYSTEM AND BE MAINTAINED 4,687
SOLELY FOR THE PURPOSE OF PROVIDING TO RETIRED MEMBERS THAT PART 4,688
OF A BENEFIT OTHERWISE PAYABLE UNDER THIS CHAPTER THAT EXCEEDS 4,689
THE LIMITS ESTABLISHED BY SECTION 415 OF THE "INTERNAL REVENUE 4,690
CODE OF 1986," AS AMENDED. 4,691
MEMBERS PARTICIPATING IN AN ARRANGEMENT ESTABLISHED UNDER 4,693
THIS SECTION SHALL NOT BE PERMITTED TO ELECT TO DEFER 4,694
COMPENSATION TO THE ARRANGEMENT. CONTRIBUTIONS TO AND BENEFITS 4,695
PAID UNDER AN ARRANGEMENT SHALL NOT BE PAYABLE FROM A TRUST THAT 4,696
IS PART OF THE SYSTEM UNLESS THE TRUST IS MAINTAINED SOLELY FOR 4,697
THE PURPOSE OF PROVIDING SUCH BENEFITS. 4,698
THE BOARD SHALL ADOPT RULES TO ADMINISTER AN ARRANGEMENT 4,700
ESTABLISHED UNDER THIS SECTION. 4,701
Sec. 3307.751 3307.47. If a member, former member, 4,710
contributor, former contributor, retirant, or beneficiary PERSON 4,712
is paid any benefit by the state teachers retirement system UNDER 4,714
THE PLANS DESCRIBED IN SECTION 3307.031 OF THE REVISED CODE to
which he THE PERSON is not entitled, the benefit shall be repaid 4,717
to the retirement system by him THE PERSON. If he THE PERSON 4,719
fails to make the repayment, the retirement system shall withhold 4,720
the amount due from any benefit due him THE PERSON or his THE 4,721
PERSON'S beneficiary under this chapter, or may collect the 4,722
amount in any other manner provided by law. 4,723
Sec. 3307.50. AS USED IN SECTIONS 3307.50 TO 3307.79 OF 4,725
THE REVISED CODE: 4,727
(A) "PRIOR SERVICE" MEANS ALL SERVICE AS A TEACHER BEFORE 4,729
SEPTEMBER 1, 1920, MILITARY SERVICE CREDIT, ALL SERVICE PRIOR TO 4,730
SEPTEMBER 1, 1920, AS AN EMPLOYEE OF ANY EMPLOYER WHO COMES 4,731
WITHIN THE PUBLIC EMPLOYEES RETIREMENT SYSTEM, THE SCHOOL 4,732
EMPLOYEES RETIREMENT SYSTEM, OR ANY OTHER STATE RETIREMENT SYSTEM 4,733
ESTABLISHED UNDER THE LAWS OF OHIO, AND SIMILAR SERVICE IN 4,734
ANOTHER STATE, CREDIT FOR WHICH WAS PROCURED BY A MEMBER UNDER 4,735
FORMER SECTION 3307.33 OF THE REVISED CODE, PRIOR TO JUNE 25, 4,737
1945. PRIOR SERVICE CREDIT SHALL NOT BE GRANTED TO ANY MEMBER 4,738
102
FOR SERVICE FOR WHICH CREDIT OR BENEFITS HAVE BEEN RECEIVED IN 4,739
ANY OTHER STATE RETIREMENT SYSTEM IN OHIO OR FOR CREDIT THAT WAS 4,740
FORFEITED BY WITHDRAWAL OF CONTRIBUTIONS, UNLESS THE CREDIT HAS 4,741
BEEN RESTORED. IF THE TEACHER SERVED AS AN EMPLOYEE IN ANY TWO 4,742
OR ALL OF THE CAPACITIES, "PRIOR SERVICE" MEANS THE TOTAL 4,743
COMBINED SERVICE IN THE CAPACITIES PRIOR TO SEPTEMBER 1, 1920. 4,744
IF A TEACHER WHO HAS BEEN GRANTED PRIOR SERVICE CREDIT FOR 4,746
SERVICE RENDERED PRIOR TO SEPTEMBER 1, 1920, AS AN EMPLOYEE OF AN 4,747
EMPLOYER WHO COMES WITHIN THE PUBLIC EMPLOYEES RETIREMENT SYSTEM 4,748
OR THE SCHOOL EMPLOYEES RETIREMENT SYSTEM, ESTABLISHES, 4,749
SUBSEQUENT TO SEPTEMBER 16, 1957, AND BEFORE RETIREMENT, THREE 4,750
YEARS OF CONTRIBUTING SERVICE IN THE PUBLIC EMPLOYEES RETIREMENT 4,751
SYSTEM, OR ONE YEAR IN THE SCHOOL EMPLOYEES RETIREMENT SYSTEM, 4,752
THE PRIOR SERVICE CREDIT GRANTED SHALL BECOME, AT RETIREMENT, THE 4,754
LIABILITY OF THE OTHER SYSTEM IF THE PRIOR SERVICE OR EMPLOYMENT 4,756
WAS IN A CAPACITY COVERED BY THAT SYSTEM.
(B) "TOTAL SERVICE," "TOTAL SERVICE CREDIT," EXCEPT AS 4,758
PROVIDED IN SECTION 3307.57 OF THE REVISED CODE, OR "OHIO SERVICE 4,760
CREDIT" MEANS ALL SERVICE OF A MEMBER OF THE STATE TEACHERS 4,761
RETIREMENT SYSTEM SINCE LAST BECOMING A MEMBER AND, IN ADDITION 4,762
THERETO, RESTORED SERVICE CREDIT UNDER SECTION 3307.71 OF THE 4,763
REVISED CODE, ALL PRIOR SERVICE CREDIT, ALL MILITARY SERVICE 4,766
CREDIT COMPUTED AS PROVIDED IN THIS CHAPTER, AND ALL OTHER 4,767
SERVICE CREDIT ESTABLISHED UNDER SECTIONS 3307.26, FORMER 4,769
3307.513, FORMER 3307.514, 3307.53, 3307.54, 3307.72, 3307.73, 4,770
3307.74, 3307.76, 3307.761, 3307.77, 3307.771, AND 33.07.78 AND 4,771
FORMER SECTION 3307.52 OF THE REVISED CODE, AND SECTION 3 OF 4,773
AMENDED SUBSTITUTE SENATE BILL NO. 530 OF THE 114TH GENERAL 4,774
ASSEMBLY. ALL SERVICE CREDIT PURCHASED UNDER SECTION 3307.741 OF 4,777
THE REVISED CODE SHALL BE USED EXCLUSIVELY FOR THE PURPOSE OF 4,779
QUALIFYING FOR SERVICE RETIREMENT. 4,780
(C)(1) "SERVICE RETIREMENT" MEANS RETIREMENT AS PROVIDED 4,782
IN SECTION 3307.58 OR 3307.59 OF THE REVISED CODE. 4,783
(2) "DISABILITY RETIREMENT" MEANS RETIREMENT AS PROVIDED 4,785
103
IN SECTION 3307.63 OF THE REVISED CODE. 4,786
(D) "ACCUMULATED CONTRIBUTIONS" MEANS THE SUM OF ALL 4,788
AMOUNTS CREDITED TO A CONTRIBUTOR'S INDIVIDUAL ACCOUNT IN THE 4,789
TEACHERS' SAVINGS FUND, TOGETHER WITH INTEREST CREDITED THEREON 4,790
AT THE RATES APPROVED BY THE STATE TEACHERS RETIREMENT BOARD 4,791
PRIOR TO RETIREMENT. 4,792
(E) "ANNUITY" MEANS PAYMENTS FOR LIFE DERIVED FROM 4,794
CONTRIBUTIONS MADE BY A CONTRIBUTOR AND PAID FROM THE ANNUITY AND 4,795
PENSION RESERVE FUND. ALL ANNUITIES SHALL BE PAID IN TWELVE 4,796
EQUAL MONTHLY INSTALLMENTS. 4,797
(F) "PENSIONS" MEANS ANNUAL PAYMENTS FOR LIFE DERIVED FROM 4,799
APPROPRIATIONS MADE BY AN EMPLOYER AND PAID FROM THE ANNUITY AND 4,800
PENSION RESERVE FUND. ALL PENSIONS SHALL BE PAID IN TWELVE EQUAL 4,801
MONTHLY INSTALLMENTS. 4,802
(G)(1) "ALLOWANCE" MEANS THE PENSION PLUS THE ANNUITY, OR 4,805
ANY OTHER PAYMENT UNDER SECTIONS 3307.50 TO 3307.79 OF THE 4,806
REVISED CODE, AND INCLUDES A DISABILITY ALLOWANCE OR DISABILITY 4,807
BENEFIT.
(2) "DISABILITY ALLOWANCE" MEANS AN ALLOWANCE PAID ON 4,809
ACCOUNT OF DISABILITY UNDER SECTION 3307.631 OF THE REVISED CODE. 4,811
(3) "DISABILITY BENEFIT" MEANS A BENEFIT PAID AS 4,813
DISABILITY RETIREMENT UNDER SECTION 3307.63 OF THE REVISED CODE, 4,815
AS A DISABILITY ALLOWANCE UNDER SECTION 3307.631 OF THE REVISED 4,817
CODE, OR AS A DISABILITY BENEFIT UNDER SECTION 3307.57 OF THE 4,818
REVISED CODE.
(H) "ANNUITY RESERVE" MEANS THE PRESENT VALUE, COMPUTED 4,820
UPON THE BASIS OF MORTALITY TABLES ADOPTED BY THE STATE TEACHERS 4,821
RETIREMENT BOARD WITH INTEREST, OF ALL PAYMENTS TO BE MADE ON 4,822
ACCOUNT OF ANY ANNUITY, OR BENEFIT IN LIEU OF ANY ANNUITY, 4,823
GRANTED TO A MEMBER. 4,824
(I) "PENSION RESERVE" MEANS THE PRESENT VALUE, COMPUTED 4,826
UPON THE BASIS OF MORTALITY TABLES ADOPTED BY THE STATE TEACHERS 4,827
RETIREMENT BOARD WITH INTEREST, OF ALL PAYMENTS TO BE MADE ON 4,828
ACCOUNT OF ANY PENSION, OR BENEFIT IN LIEU OF ANY PENSION, 4,829
104
GRANTED TO A MEMBER OR TO A BENEFICIARY. 4,830
(J) "RETIRANT" MEANS ANY FORMER MEMBER WHO IS GRANTED AGE 4,832
AND SERVICE RETIREMENT AS PROVIDED IN SECTIONS 3307.57, 3307.58, 4,833
3307.59, AND 3307.60 OF THE REVISED CODE. 4,834
(K) "DISABILITY BENEFIT RECIPIENT" MEANS A MEMBER WHO IS 4,836
RECEIVING A DISABILITY BENEFIT. 4,837
Sec. 3307.013 3307.501. (A) As used in this section, 4,846
"percentage increase" means the percentage that an increase in 4,848
compensation is of the compensation paid prior to the increase. 4,849
(B) Notwithstanding division (U)(L) of section 3307.01 of 4,851
the Revised Code, for the purpose of determining final average 4,853
salary under this section, "compensation" has the same meaning as 4,854
in that division, except that it does not include any amount 4,855
resulting from a percentage increase paid to a member during the 4,856
member's two highest years of compensation that exceeds the 4,858
greater of the following, unless the percentage increase results 4,859
from employment by a different employer or promotion to a 4,860
position held by another employee within the twelve-month period 4,861
preceding the promotion; 4,862
(1) The highest percentage increase in compensation paid 4,864
to the member during any of the three years immediately preceding 4,865
the member's two highest years of compensation and any subsequent 4,866
partial year of compensation used in calculating the member's 4,867
final average salary; 4,868
(2) A percentage increase paid to the member as part of an 4,870
increase generally applicable to members employed by the 4,871
employer. An increase shall be considered generally applicable 4,872
if it is paid to members employed by a school district board of 4,873
education in positions requiring a license issued under section 4,875
3319.22 of the Revised Code in accordance with uniform criteria 4,876
applicable to all such members or if paid to members employed by 4,877
an employer other than a school district board of education in 4,878
accordance with uniform criteria applicable to all such members. 4,879
(C) The state teachers retirement board shall determine 4,881
105
the final average salary of a member by dividing the sum of the 4,882
member's annual compensation for the three highest years of 4,883
compensation for which the member made contributions plus any 4,884
amount determined under division (E) of this section by three, 4,885
except that if the member has a partial year of contributing 4,886
service in the year the member's employment terminates and the 4,887
compensation for the partial year is at a rate higher than the 4,888
rate of compensation for any one of the member's highest three 4,889
years of compensation, the board shall substitute the 4,890
compensation for the partial year for the compensation for the 4,891
same portion of the lowest of the member's three highest years of 4,892
compensation. If a member has less than three years of 4,893
contributing membership, the member's final average salary shall 4,894
be the member's total compensation for the period of contributing 4,895
membership plus any amount determined under division (E) of this 4,896
section divided by the total years, including any portion of a 4,897
year, of contributing service.
For the purpose of calculating benefits payable to a member 4,899
qualifying for service credit under division (R)(I) of section 4,901
3307.01 of the Revised Code, the board shall calculate the 4,902
member's final average salary by dividing the member's total 4,903
compensation as a teacher covered under this chapter plus any 4,904
amount determined under division (E) of this section by the total 4,905
number of years, including any portion of a year, of contributing 4,906
membership during that period. If contributions were made for 4,907
less than twelve months, the member's final average salary is the 4,908
total amount of compensation paid to the member during all 4,909
periods of contributions under this chapter. 4,910
(D) Contributions made by a member and an employer on 4,912
amounts that, pursuant to division (B) of this section, are not 4,913
compensation or are not included, pursuant to division (E) of 4,914
this section, for the purpose of determining final average salary 4,915
shall be treated as additional deposits to the member's account 4,916
under section 3307.51 3307.26 of the Revised Code and used to 4,917
106
provide additional annuity income. 4,919
(E) The state teachers retirement board shall adopt rules 4,921
establishing criteria and procedures for administering this 4,922
division. 4,923
The board shall notify each applicant for retirement of any 4,925
amount excluded from the applicant's compensation in accordance 4,926
with division (B) of this section and of the procedures 4,927
established by the board for requesting a hearing on this 4,928
exclusion. 4,929
Any applicant for retirement who has had any amount 4,931
excluded from the applicant's compensation in accordance with 4,933
division (B) of this section may request a hearing on this 4,934
exclusion. Upon receiving such a request, the board shall 4,935
determine in accordance with its criteria and procedures whether, 4,936
for good cause as determined by the board, all or any portion of 4,937
any amount excluded from the applicant's compensation in 4,938
accordance with division (B) of this section, up to a maximum of 4,939
seventy-five hundred dollars, is to be included in the 4,940
determination of final average salary under division (C) of this 4,941
section. Any determination of the board under this division 4,942
shall be final.
Sec. 3307.20 3307.51. (A) The state teachers retirement 4,951
board shall have prepared annually by or under the supervision of 4,954
an actuary an actuarial valuation of the pension assets, 4,955
liabilities, and funding requirements of the state teachers 4,956
retirement system as established pursuant to this chapter PLAN 4,957
DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE.
The actuary shall complete the valuation in accordance with 4,958
actuarial standards of practice promulgated by the actuarial 4,959
standards board of the American academy of actuaries and prepare 4,960
a report of the valuation. The report shall include all of the 4,961
following:
(1) A summary of the benefit provisions evaluated; 4,963
(2) A summary of the census data and financial information 4,965
107
used in the valuation; 4,966
(3) A description of the actuarial assumptions, actuarial 4,968
cost method, and asset valuation method used in the valuation, 4,969
including a statement of the assumed rate of payroll growth and 4,970
assumed rate of growth or decline in the number of members 4,971
contributing to the retirement system;
(4) A summary of findings that includes a statement of the 4,973
actuarial accrued pension liabilities and unfunded actuarial 4,974
accrued pension liabilities; 4,975
(5) A schedule showing the effect of any changes in the 4,977
benefit provisions, actuarial assumptions, or cost methods since 4,978
the last annual actuarial valuation; 4,979
(6) A statement of whether contributions to the retirement 4,981
system are expected to be sufficient to satisfy the funding 4,982
objectives established by the board. 4,983
The board shall submit the report to the Ohio retirement 4,986
study commission COUNCIL and the standing committees of the house 4,987
of representatives and the senate with primary responsibility for 4,989
retirement legislation not later than the first day of May 4,990
JANUARY following the year for which the valuation was made. 4,991
(B) At such times as the state teachers retirement board 4,994
determines, and at least once in each quinquennial period, the 4,995
board shall have prepared by or under the supervision of an 4,996
actuary an actuarial investigation of the mortality, service, and 4,998
other experience of the members, retirants, and beneficiaries of 5,000
the system, and other system retirants as defined in section 5,003
3307.381 3307.35 of the Revised Code to update the actuarial 5,004
assumptions used in the actuarial valuation required by division 5,007
(A) of this section. The actuary shall prepare a report of the 5,008
actuarial investigation. The report shall be prepared and any 5,009
recommended changes in actuarial assumptions shall be made in 5,011
accordance with the actuarial standards of practice promulgated
by the actuarial standards board of the American academy of 5,013
actuaries. The report shall include all of the following:
108
(1) A summary of relevant decrement and economic 5,015
assumption experience observed over the period of the 5,016
investigation;
(2) Recommended changes in actuarial assumptions to be 5,018
used in subsequent actuarial valuations required by division (A) 5,020
of this section;
(3) A measurement of the financial effect of the 5,022
recommended changes in actuarial assumptions. 5,023
The board shall submit the report to the Ohio retirement 5,026
study commission COUNCIL and the standing committees of the house 5,027
of representatives and the senate with primary responsibility for 5,029
retirement legislation not later than the first day of May 5,030
following the last fiscal year of the period the report covers. 5,031
(C) The board may at any time request the actuary to make 5,033
any other studies or actuarial valuations to determine the 5,035
adequacy of the normal and deficiency rates of contribution 5,036
provided by section 3307.53 3307.28 of the Revised Code, and 5,037
those rates may be adjusted by the board, as recommended by the 5,040
actuary, effective as of the first of any year thereafter. 5,041
(D) The board shall have prepared by or under the 5,043
supervision of an actuary an actuarial analysis of any introduced 5,044
legislation expected to have a measurable financial impact on the 5,045
retirement system. The actuarial analysis shall be completed in 5,046
accordance with the actuarial standards of practice promulgated 5,047
by the actuarial standards board of the American academy of 5,048
actuaries. The actuary shall prepare a report of the actuarial 5,049
analysis, which shall include all of the following: 5,050
(1) A summary of the statutory changes that are being 5,052
evaluated;
(2) A description of or reference to the actuarial 5,054
assumptions and actuarial cost method used in the report; 5,055
(3) A description of the participant group or groups 5,057
included in the report; 5,058
(4) A statement of the financial impact of the 5,060
109
legislation, including the resulting increase, if any, in the 5,061
employer normal cost percentage; the increase, if any, in 5,062
actuarial accrued liabilities; and the per cent of payroll that 5,063
would be required to amortize the increase in actuarial accrued
liabilities as a level per cent of covered payroll for all active 5,064
members over a period not to exceed thirty years; 5,065
(5) A statement of whether the scheduled contributions to 5,067
the system after the proposed change is enacted are expected to 5,068
be sufficient to satisfy the funding objectives established by 5,069
the board.
Not later than sixty days from the date of introduction of 5,071
the legislation, the board shall submit a copy of the actuarial 5,072
analysis to the legislative budget office of the legislative 5,073
service commission, the standing committees of the house of 5,074
representatives and the senate with primary responsibility for 5,075
retirement legislation, and the Ohio retirement study commission 5,076
COUNCIL.
(E) The board shall have prepared annually a report giving 5,079
a full accounting of the revenues and costs relating to the 5,080
provision of benefits under sections 3307.405 3307.39 and 3307.74 5,081
3307.61 of the Revised Code. The report shall be made as of June 5,084
30, 1997, and the thirtieth day of June of each year thereafter. 5,085
The report shall include the following: 5,086
(1) A description of the statutory authority for the 5,088
benefits provided; 5,089
(2) A summary of the benefits; 5,091
(3) A summary of the eligibility requirements for the 5,093
benefits; 5,094
(4) A statement of the number of participants eligible for 5,096
the benefits; 5,097
(5) A description of the accounting, asset valuation, and 5,099
funding method used to provide the benefits; 5,100
(6) A statement of the net assets available for the 5,102
provisions of benefits as of the last day of the fiscal year; 5,104
110
(7) A statement of any changes in the net assets available 5,107
for the provision of benefits, including participant and employer 5,108
contributions, net investment income, administrative expenses, 5,109
and benefits provided to participants, as of the last day of the 5,110
fiscal year;
(8) For the last six consecutive fiscal years, a schedule 5,112
of the net assets available for the benefits, the annual cost of 5,114
benefits, administrative expenses incurred, and annual employer 5,115
contributions allocated for the provision of benefits; 5,116
(9) A description of any significant changes that affect 5,118
the comparability of the report required under this division; 5,120
(10) A statement of the amount paid under division (C) of 5,122
section 3307.74 3307.39 of the Revised Code. 5,123
The board shall submit the report to the Ohio retirement 5,126
study commission COUNCIL and the standing committees of the house 5,127
of representatives and the senate with primary responsibility for 5,128
retirement legislation not later than the thirty-first day of 5,129
December following the year for which the report was made. 5,131
Sec. 3307.511. THE STATE TEACHERS RETIREMENT BOARD SHALL 5,133
COLLECT AND KEEP IN CONVENIENT FORM SUCH DATA AS IS NECESSARY FOR 5,134
THE PREPARATION OF THE REQUIRED MORTALITY AND SERVICE TABLES, AND 5,135
FOR THE COMPILATION OF SUCH OTHER INFORMATION AS IS REQUIRED FOR 5,136
THE ACTUARIAL VALUATION OF THE ASSETS AND LIABILITIES OF THE 5,137
FUNDS LISTED IN DIVISIONS (A) TO (F) OF SECTION 3307.14 OF THE 5,139
REVISED CODE. ON THE BASIS OF MORTALITY AND SERVICE EXPERIENCE 5,140
OF THE MEMBERS, RETIRANTS, AND BENEFICIARIES OF THE STATE 5,141
TEACHERS RETIREMENT SYSTEM, AND OTHER SYSTEM RETIRANTS 5,142
CONTRIBUTING IN ACCORDANCE WITH SECTION 3307.35 OF THE REVISED 5,144
CODE, THE BOARD SHALL ADOPT TABLES TO BE USED FOR VALUATION 5,146
PURPOSES AND FOR DETERMINING THE AMOUNT OF ANNUITIES TO BE
ALLOWED ON THE BASIS OF THE CONTRIBUTIONS. 5,147
Sec. 3307.201 3307.512. The state teachers retirement 5,156
board shall establish a period of not more than thirty years to 5,159
amortize the state teachers retirement system's unfunded
111
actuarial accrued pension liabilities FOR BENEFITS PAID UNDER 5,160
SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE. If in any year 5,161
the period necessary to amortize the unfunded actuarial accrued 5,163
pension liability exceeds thirty years, as determined by the
annual actuarial valuation required by section 3307.20 3307.51 of 5,166
the Revised Code, the board, not later than ninety days after 5,168
receipt of the valuation, shall prepare and submit to the Ohio 5,169
retirement study commission COUNCIL and the standing committees 5,170
of the house of representatives and the senate with primary 5,171
responsibility for retirement legislation a report that includes 5,172
the following information: 5,173
(A) The number of years needed to amortize the unfunded 5,176
actuarial accrued pension liability as determined by the annual 5,177
actuarial valuation;
(B) A plan approved by the board that indicates how the 5,180
board will reduce the amortization period of unfunded actuarial 5,181
accrued pension liability to not more than thirty years.
Sec. 3307.421 3307.513. Not later than September 1, 2000, 5,191
and each first day of September for the succeeding five years, 5,192
the state teachers retirement board shall make and submit a 5,193
report for the preceding fiscal year of the disability retirement 5,194
experience of each employer. The report shall specify the total 5,195
number of disability applications submitted UNDER SECTION 3307.62 5,196
OF THE REVISED CODE, the status of each application as of the 5,198
last day of the fiscal year, total applications granted or 5,199
denied, and the percentage of disability benefit recipients, AS 5,200
DEFINED IN SECTION 3307.50 OF THE REVISED CODE, to the total 5,202
number of the employer's employees who are members of the state 5,203
teachers retirement system. The report shall be submitted to the 5,204
governor, the Ohio retirement study council, and the chairpersons 5,206
of the standing committees and subcommittees of the senate and 5,207
house of representatives with primary responsibility for 5,208
retirement legislation.
Sec. 3307.36 3307.52. At THE TIME OF retirement UNDER THE 5,218
112
PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED
CODE, the total service credited a teacher shall consist of all 5,220
his THE TEACHER'S service as a teacher since he THE TEACHER last 5,221
became a member and, if he THE TEACHER has a prior service 5,222
certificate which is in full force and effect, all service 5,224
certified on such prior service certificate, together with
purchased service credit as provided in section 3307.33 3307.741 5,225
of the Revised Code. 5,226
Sec. 3307.31 3307.53. The state teachers retirement board 5,235
shall credit a year of service to any teacher PARTICIPATING IN 5,237
THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED 5,238
CODE who is employed on a full-time basis in a school district 5,239
for the number of months the regular day schools of such district 5,240
are in session in said district within any year. The board shall 5,241
adopt appropriate rules and regulations for the determination of 5,242
credit for less than a complete year of service, and shall be the 5,243
final authority in determining the number of years of service 5,244
credit. The board shall credit not more than one year for all 5,245
service rendered in any year. 5,246
If concurrent contributions are made to two or more 5,248
retirement systems, service credit shall be on the basis of the 5,249
ratio that contributions to this system bear to the total 5,250
contributions in all such systems. 5,251
THE BOARD SHALL ADOPT RULES FOR THE PURPOSE OF DETERMINING 5,253
THE NUMBER OF YEARS OR PARTIAL YEARS OF SERVICE CREDIT TO BE 5,254
GRANTED TO A MEMBER UNDER SECTION 3307.88 OF THE REVISED CODE. 5,255
THE AMOUNT OF SERVICE CREDIT SHALL BE BASED ON THE MEMBER'S 5,257
LENGTH OF PARTICIPATION IN AND CONTRIBUTION TO A PLAN ESTABLISHED 5,258
UNDER SECTION 3307.81 OF THE REVISED CODE. THE BOARD SHALL BE 5,259
THE FINAL AUTHORITY IN DETERMINING THE AMOUNT OF SERVICE CREDIT. 5,260
Sec. 3307.35 3307.54. An employer may establish a 5,269
retirement incentive plan for its employees who are members of 5,270
the state teachers retirement system PARTICIPATING IN THE PLAN 5,271
DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE. 5,272
113
The plan shall provide for purchase by the employer of service 5,273
credit for eligible employees who choose to participate in the 5,274
plan and for payment by the employer of the entire cost of such 5,275
service credit. A plan established under this section shall 5,276
remain in effect until terminated by the employer, except that, 5,277
once established, the plan must remain in effect for at least one 5,278
year.
An employee who is a member of the state teachers 5,280
retirement system shall be eligible to participate in a 5,281
retirement incentive plan if the employee has attained age fifty 5,283
and the employee agrees to retire and retires under section 5,284
3307.38 3307.58 of the Revised Code effective within ninety days 5,286
after receiving notice from the state teachers retirement system 5,287
that service credit has been purchased for the member under this 5,288
section.
Participation in the plan shall be available to all 5,290
eligible employees except that the employer may limit the number 5,291
of persons for whom it purchases credit in any calendar year to a 5,292
specified percentage of its employees who, ON THE FIRST DAY OF 5,294
JANUARY OF THAT YEAR, are members of the state teachers 5,295
retirement system on the first day of January of that year 5,296
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO
3307.79 OF THE REVISED CODE. The percentage shall not be less 5,297
than five per cent of such employees. If participation is 5,298
limited, employees with a greater length of service with the 5,299
employer have the right to elect to have credit purchased before 5,300
employees with a lesser length of service with the employer. 5,301
The amount of service credit purchased for any participant 5,303
shall be uniformly determined but shall not exceed the lesser of 5,304
the following: 5,305
(A) Five years of service credit; 5,307
(B) An amount of service credit equal to one-fifth of the 5,309
total service credited to the participant under FORMER sections 5,310
3307.02, 3307.021, 3307.022, 3307.22, 3307.28, 3307.31, 3307.311, 5,311
114
3307.32, 3307.41, 3307.411, 3307.412, 3307.512, 3307.513, 5,312
3307.514, 3307.515, AND 3307.52, and 3307.73 OR SECTIONS 3307.53, 5,314
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 5,316
the Revised Code.
For each year of service credit purchased under this 5,318
section, the employer shall pay an amount specified by the state 5,319
teachers retirement board equal to the additional liability 5,320
resulting from the purchase of that year of service credit as 5,321
determined by an actuary employed by the board. Payments shall 5,322
be made in accordance with rules adopted by the board, and the 5,323
board shall notify each member when the member is credited with 5,325
service purchased under this section. 5,326
No payment made to the state teachers retirement system 5,328
under this section shall affect any payment required by section 5,329
3307.53 3307.28 of the Revised Code. 5,330
Sec. 3307.46 3307.56. (A)(1) Subject to sections 3307.47 5,340
3307.37 and 3307.72 3307.561 of the Revised Code, a member 5,341
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 5,342
3307.79 OF THE REVISED CODE who ceases to be a teacher for any
cause other than death, retirement, receipt of a disability 5,345
benefit, or election of an alternative retirement plan under 5,346
section 3305.05 of the Revised Code, upon application, shall be
paid the accumulated contributions standing to the credit of the 5,348
member's individual account in the teachers' savings fund plus an 5,349
amount calculated in accordance with section 3307.80 3307.563 of 5,350
the Revised Code. If the member or the member's legal 5,352
representative cannot be found within ten years after the member 5,354
ceased making contributions pursuant to section 3307.51 3307.26 5,355
of the Revised Code, the accumulated contributions may be 5,358
transferred to the guarantee fund and thereafter paid to the 5,359
member, to the member's beneficiaries, or to the member's estate, 5,360
upon proper application.
(2) A member described in division (A)(1) of this section 5,363
115
who is married at the time of application for payment and is
eligible for age and service retirement under section 3307.38 5,364
3307.58 or 3307.39 3307.59 of the Revised Code shall submit with 5,367
the application a written statement by the member's spouse
attesting that the spouse consents to the payment of the member's 5,368
accumulated contributions. Consent shall be valid only if it is 5,369
signed and witnessed by a notary public. If the statement is not 5,371
submitted under this division, the application shall be
considered an application for service retirement and shall be 5,372
subject to division (F)(1) of section 3307.50 3307.60 of the 5,373
Revised Code. 5,374
(B) This division applies to any member who ceases to be a 5,377
teacher by electing an alternative retirement plan pursuant to 5,378
section 3305.05 of the Revised Code and who is not otherwise 5,379
employed as a teacher in a position to which the election does 5,380
not apply. For purposes of this division, "continuously 5,381
employed" has the same meaning as in section 3305.01 of the 5,382
Revised Code. 5,383
(1) Subject to sections 3307.47 3307.37 and 3307.72 5,385
3307.561 of the Revised Code, upon application of any member to 5,388
whom this division applies who is continuously employed, the 5,389
state teachers retirement board shall pay the accumulated 5,390
contributions standing to the credit of the member's individual 5,391
account in the teachers' savings fund plus an amount calculated 5,392
in accordance with section 3307.80 3307.563 of the Revised Code 5,393
to the entity providing the alternative retirement plan for 5,395
application to that plan in accordance with any contract the 5,396
member has entered into for purposes of that plan. 5,397
(2) Subject to sections 3307.47 3307.37 and 3307.72 5,399
3307.561 of the Revised Code, upon application of any member to 5,402
whom this division applies who has ceased to be continuously 5,403
employed, the state teachers retirement board shall pay the 5,404
accumulated contributions standing to the credit of the member's 5,405
individual account in the teachers' savings fund plus an amount 5,407
116
calculated in accordance with section 3307.80 3307.563 of the 5,409
Revised Code to the entity providing the alternative retirement 5,410
plan for application to that plan in accordance with any contract 5,411
the member has entered into for purposes of that plan. 5,412
Sec. 3307.47 3307.561. A member of the state teachers 5,421
retirement system PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 5,422
3307.50 TO 3307.79 OF THE REVISED CODE who has ceased to be a 5,424
teacher, and who is also a member of either the public employees
retirement system or the school employees retirement system, or 5,425
both, may not withdraw his THE MEMBER'S accumulated contributions 5,427
unless he THE MEMBER also withdraws his THE MEMBER'S 5,428
contributions from such THE other systems. 5,429
Sec. 3307.48 3307.562. (A) As used in this section and 5,438
section 3307.49 3307.66 of the Revised Code: 5,440
(1) "Child" means a biological or legally adopted child of 5,444
a deceased member. If a court hearing for an interlocutory 5,445
decree for adoption was held prior to the member's death, "child" 5,446
includes the child who was the subject of the hearing if a final 5,447
decree of adoption adjudging the member's spouse as the adoptive 5,448
parent is made subsequent to the member's death. 5,449
(2) "Parent" is a parent or legally adoptive parent of a 5,452
deceased member. 5,453
(3) "Dependent" means a beneficiary who receives one-half 5,455
of the beneficiary's support from a member during the twelve 5,456
months prior to the member's death. 5,457
(4) "Surviving spouse" means an individual who establishes 5,460
a valid marriage to a member at the time of the member's death by 5,461
marriage certificate or pursuant to division (E) of this section. 5,462
(5) "Survivor" means a spouse, child, or dependent parent. 5,465
(B) Except as provided in division (G)(1)(B) of section 5,468
3307.49 3307.563 or division (B)(G)(1) of section 3307.80 3307.66 5,470
of the Revised Code, should a member WHO IS PARTICIPATING IN THE 5,471
PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE 5,472
die before service retirement, the member's accumulated 5,473
117
contributions, plus an amount calculated in accordance with 5,474
section 3307.80 3307.563 of the Revised Code, and any amounts 5,475
owed and unpaid to a disability benefit recipient shall be paid 5,476
to such beneficiaries as the member has nominated by written 5,478
designation signed by the member and filed with the state 5,480
teachers retirement board prior to death. The nomination of 5,481
beneficiary shall be on a form provided by the retirement board.
The last nomination of any beneficiary revokes all previous 5,483
nominations. The member's marriage, divorce, marriage 5,484
dissolution, legal separation, or withdrawal of account, or the 5,485
birth of the member's child, or the member's adoption of a child, 5,486
shall constitute an automatic revocation of the member's previous 5,487
designation. If a deceased member was also a member of the 5,488
public employees retirement system or the school employees 5,489
retirement system, the beneficiary last established among the
systems shall be the sole beneficiary in all the systems. 5,490
Any beneficiary ineligible for monthly survivor benefits as 5,492
provided by section 3307.49 3307.66 of the Revised Code may waive 5,494
in writing all claim to any benefits and such waiver shall 5,495
thereby put in effect the succession of beneficiaries under 5,496
division (C) of this section, provided the beneficiary thereunder 5,497
is immediately eligible and agrees in writing to accept survivor 5,498
benefits as provided by section 3307.49 3307.66 of the Revised 5,499
Code. If the accumulated contributions of a deceased member are 5,501
not claimed by a beneficiary, or by the estate of the deceased 5,502
member, within ten years, they shall be transferred to the 5,503
guarantee fund and thereafter paid to such beneficiary or to the 5,504
member's estate upon application to the board. The board shall 5,505
formulate and adopt rules governing all designations of 5,506
beneficiaries. 5,507
(C) Except as provided in division (G)(1) of section 5,509
3307.49 3307.66 of the Revised Code, if a member dies before 5,510
service retirement and is not survived by a designated 5,513
beneficiary, any beneficiaries shall qualify, in the following 5,514
118
order of precedence, with all attendant rights and privileges: 5,515
(1) Surviving spouse; 5,517
(2) Children, share and share alike; 5,519
(3) A dependent parent, if that parent elects to take 5,521
survivor benefits under division (C)(2) of section 3307.49 5,522
3307.66 of the Revised Code; 5,524
(4) Parents, share and share alike; 5,526
(5) Estate. 5,528
If any survivor dies before payment is made under this 5,530
section or is not located prior to the ninety-first day after the 5,531
board receives notification of the member's death, the survivor 5,532
next in order of precedence shall qualify as a beneficiary, 5,533
provided that benefits under division (C)(2) of section 3307.49 5,534
3307.66 of the Revised Code are elected. In the event that the 5,535
beneficiary originally determined is subsequently located, the 5,536
beneficiary may qualify for benefits under division (C)(2) of 5,537
section 3307.49 3307.66 of the Revised Code upon meeting the 5,538
conditions of eligibility set forth in division (B) of that 5,540
section, but in no case earlier than the first day of the month 5,541
following application by such beneficiary. Any payment made to a 5,542
beneficiary as determined by the board shall be a full discharge 5,543
and release to the board from any future claims. 5,544
(D) Any amount due any person, as an annuitant, receiving 5,546
a monthly benefit, and unpaid to the annuitant at death, shall be 5,548
paid to the beneficiary named by written designation signed by
the annuitant and filed with the board. If no such designation 5,550
has been filed, or if the beneficiary designated is deceased or
is not located prior to the ninety-first day after the board 5,551
receives notification of the annuitant's death, such amount shall 5,552
be paid, in the following order of precedence to the annuitant's: 5,553
(1) Surviving spouse; 5,555
(2) Children, share and share alike; 5,557
(3) Parents, share and share alike; 5,559
(4) Estate. 5,561
119
For purposes of this division an "annuitant" is the last 5,563
person who received a monthly benefit pursuant to the plan of 5,564
payment selected by the former member. Such payment shall be a 5,565
full discharge and release to the board from any future claim for 5,566
such payment. 5,567
(E) If the validity of marriage cannot be established to 5,569
the satisfaction of the board for the purpose of disbursing any 5,570
amount due under this section or section 3307.49 3307.66 of the 5,572
Revised Code, the board may accept a decision rendered by a court 5,573
having jurisdiction in the state in which the member was 5,574
domiciled at the time of death that the relationship constituted 5,575
a valid marriage at the time of death, or the "spouse" would have 5,576
the same status as a widow or widower for purposes of sharing the 5,577
distribution of the member's intestate personal property. 5,578
If the death of a member is caused by one of the following 5,581
beneficiaries, no amount due under this chapter to the 5,582
beneficiary shall be paid to the beneficiary in the absence of a 5,583
court order to the contrary filed with the board: 5,584
(1) A beneficiary who is convicted of, pleads guilty to, 5,586
or is found not guilty by reason of insanity of a violation of or 5,588
complicity in the violation of either of the following: 5,589
(a) Section 2903.01, 2903.02, or 2903.03 of the Revised 5,592
Code;
(b) An existing or former law of any other state, the 5,595
United States, or a foreign nation that is substantially 5,597
equivalent to section 2903.01, 2903.02, or 2903.03 of the Revised 5,599
Code; 5,600
(2) A beneficiary who is indicted for a violation of or 5,602
complicity in the violation of the sections or laws described in 5,603
division (F)(1)(a) or (b) of this section and is adjudicated 5,605
incompetent to stand trial;
(3) A beneficiary who is a juvenile found to be a 5,607
delinquent child by reason of committing an act that, if 5,608
committed by an adult, would be a violation of or complicity in 5,609
120
the violation of the sections or laws described in division 5,611
(F)(1)(a) or (b) of this section. 5,612
Sec. 3307.80 3307.563. For the purposes of this section, 5,621
"service credit" includes only service credit obtained pursuant 5,623
to sections 3307.28 3307.53, 3307.31 3307.71, 3307.512 3307.72, 5,625
and 3307.73 3307.77 of the Revised Code.
(A) The state teachers retirement system shall add to a 5,627
member's accumulated contributions to be paid under section 5,628
3307.46 3307.56 or 3307.48 3307.562 of the Revised Code an amount 5,631
paid from the employers' trust fund equal to one of the
following:
(1) If the member has less than three full years of 5,633
service credit, an amount equal to interest on the member's 5,634
accumulated contributions, compounded annually, at a rate not 5,636
greater than four per cent established by the board;
(2) If the member has three or more full years of service 5,638
credit, but less than five full years, an amount equal to 5,639
interest on the member's accumulated contributions, compounded 5,641
annually, at a rate not greater than six per cent established by
the board; 5,642
(3) If the member has five or more full years of service 5,644
credit, the sum of the following amounts: 5,645
(a) An amount equal to interest on the member's 5,647
accumulated contributions, compounded annually, at a rate not 5,649
greater than six per cent established by the board; 5,650
(b) An amount equal to fifty per cent of the sum of the 5,652
member's contributions and payments under sections 3307.28 5,653
3307.26, 3307.51 3307.71, and 3307.512 3307.77 of the Revised 5,655
Code plus an amount equal to interest on that amount at a rate 5,656
not greater than six per cent established by the board. 5,658
Interest for each year included in the calculation under 5,660
this section shall be calculated from the first day of the 5,661
following year to the last day of the month preceding payment 5,663
under section 3307.46 3307.56 or 3307.48 3307.562 of the Revised 5,664
121
Code.
(B) Notwithstanding sections 3307.46 3307.56 and 3307.48 5,667
3307.562 of the Revised Code, neither the beneficiaries, 5,668
survivors, nor estate of a deceased member who was granted
disability benefits prior to death is eligible for the payment of 5,669
any amount calculated under this section. 5,670
Sec. 3307.41 3307.57. To coordinate and integrate 5,679
membership in the state retirement systems, the following 5,681
provisions apply:
(A) As used in this section: 5,683
(1) "Retirement systems" means the public employees 5,685
retirement system, the state teachers retirement system, and the 5,686
school employees retirement system. 5,687
(2) In addition to the meaning given in division (L) of 5,689
section 3307.01 3307.50 of the Revised Code, "disability benefit" 5,691
means "disability benefit" as defined in sections 145.01 and 5,692
3309.01 of the Revised Code. 5,693
(B) At the member's option OF A MEMBER PARTICIPATING IN 5,695
THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED 5,696
CODE, total contributions and service credit in all retirement 5,697
systems, including amounts paid to restore service credit under 5,698
sections 145.311, 3307.282, and 3309.261 of the Revised Code, 5,699
shall be used in determining the eligibility for benefits. If 5,700
total contributions and service credit are combined, the 5,701
following provisions apply:
(1) Service retirement or a disability benefit is 5,703
effective on the first day of the month next following the later 5,704
of: 5,705
(a) The last day for which compensation was paid; 5,707
(b) The attainment of minimum age or service credit for 5,709
benefits provided under this section. 5,710
(2) "Total service credit" includes the total credit in 5,712
all retirement systems except that such credit shall not exceed 5,713
one year for any period of twelve months. 5,714
122
(3) In determining eligibility for a disability benefit, 5,716
the medical examiner's report to the board of any retirement 5,717
system, showing that the member's disability incapacitates the 5,718
member for the performance of duty, may be accepted as sufficient 5,720
for granting a disability benefit. 5,721
(4) The retirement system in which the member had the 5,723
greatest service credit, without adjustment, shall determine and 5,724
pay the total benefit. If the member's credit is equal in two or 5,726
more retirement systems, the system having the member's largest 5,727
total contributions shall determine and pay the total benefit. 5,728
(5) In determining the total credit to be used in 5,730
calculating a benefit, credit shall not be reduced below that 5,731
certified by the system or systems transferring credit, except 5,732
that such total combined service credit shall not exceed one year 5,733
of credit for any one "year" as defined in the statute governing 5,734
the system making the calculation. 5,735
(6) The retirement system determining and paying the 5,737
benefit shall receive from the other system or systems the 5,738
member's refundable account at retirement or the effective date 5,739
of a disability benefit plus an equal amount from the employers' 5,740
trust fund. 5,741
(a) The annuity rates and mortality tables of the 5,743
retirement system making the calculation and paying the benefit 5,744
shall be applicable. 5,745
(b) Deposits made for the purchase of additional income, 5,747
with guaranteed interest, upon the member's request, shall be 5,748
transferred to the retirement system paying the regular benefit. 5,749
The return upon such deposits shall be that offered by the 5,750
retirement system making the calculation and paying the regular 5,751
benefit. 5,752
(C) A person receiving a benefit under this section, who 5,754
accepts employment amenable to coverage in any retirement system 5,755
that participated in the person's combined benefit, shall be 5,756
subject to the applicable provisions of law governing such 5,758
123
re-employment. If the person is subject to section 3307.381 5,759
3307.35 of the Revised Code and exceeds the limits on 5,760
re-employment established by that section, the retirement system 5,761
paying a combined benefit shall terminate the entire pension 5,762
portion of the benefit for the period of re-employment that 5,763
exceeds the limit in that section.
If a retirant should be paid any amount to which the 5,765
retirant is not entitled under the applicable provisions of law 5,767
governing such re-employment, such amount shall be recouped by 5,768
the retirement system paying such benefit by utilizing any 5,769
recovery procedure available under the law of the retirement 5,770
system covering such re-employment. 5,771
Sec. 3307.38 3307.58. Any member PARTICIPATING IN THE PLAN 5,780
DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE who 5,781
has five years of service credit and has attained age sixty, or 5,783
who has twenty-five years of service credit and has attained age 5,784
fifty-five, or who has thirty years of service credit shall be 5,785
granted service retirement after filing with the state teachers 5,786
retirement board a completed application on a form approved by 5,787
the board.
(A) Service retirement shall be effective on the first day 5,789
of the month next following the later of: 5,790
(1) The last day for which compensation was paid; or 5,792
(2) The attainment of minimum age or service credit 5,794
eligibility for benefits provided under this section. 5,795
Except as otherwise provided in division (D)(E) of this 5,797
section, the service retirement benefit shall be the greater of 5,798
the benefits provided in divisions (B) and (C)(D) of this 5,799
section. 5,800
(B)(1) Subject to any adjustment made under division 5,802
(B)(2)(C) of this section, the annual single lifetime benefit of 5,804
a member shall be the greater of the amounts determined by the 5,805
member's Ohio service credit multiplied by one of the following: 5,807
(a)(1) Eighty-six dollars; 5,809
124
(b) Two (2)(a) THE SUM OF THE FOLLOWING AMOUNTS: 5,811
(i) FOR EACH OF THE FIRST THIRTY YEARS OF OHIO SERVICE 5,813
CREDIT, TWO and one-tenth TWO-TENTHS per cent of the member's 5,815
final average salary, except that OR, SUBJECT TO THE LIMITATION 5,817
DESCRIBED IN DIVISION (B)(2)(b) OF THIS SECTION, TWO AND 5,818
FIVE-TENTHS PER CENT OF THE MEMBER'S FINAL AVERAGE SALARY IF THE 5,819
MEMBER HAS THIRTY-FIVE OR MORE YEARS OF SERVICE CREDIT UNDER 5,820
SECTION 3307.53, 3307.57, 3307.75, 3307.751, 3307.752, 3307.761, 5,822
3307.77, OR 3307.771 OF THE REVISED CODE, DIVISION (A)(2) OR (B) 5,823
OF FORMER SECTION 3307.513 OF THE REVISED CODE, FORMER SECTION 5,824
3307.514 OF THE REVISED CODE, SECTION 3307.72 OF THE REVISED CODE 5,825
EARNED AFTER JULY 1, 1978, OR ANY COMBINATION OF SERVICE CREDIT 5,826
UNDER THOSE SECTIONS;
(ii) FOR EACH YEAR OR FRACTION OF A YEAR OF OHIO SERVICE 5,828
CREDIT IN EXCESS OF THIRTY YEARS, TWO AND TWO-TENTHS PER CENT OF 5,830
THE MEMBER'S FINAL AVERAGE SALARY OR, SUBJECT TO THE LIMITATION 5,832
DESCRIBED IN DIVISION (B)(2)(b) OF THIS SECTION, if the member 5,834
has more than thirty years service credit earned under section 5,835
3307.31 or purchased under section 3307.512 3307.53, 3307.57, 5,839
3307.75, 3307.751, 3307.752, 3307.761, 3307.77, OR 3307.771 of 5,840
the Revised Code, the per cent shall be DIVISION (A)(2) OR (B) OF 5,842
FORMER SECTION 3307.513 OF THE REVISED CODE, FORMER SECTION 5,843
3307.514 OF THE REVISED CODE, SECTION 3307.72 OF THE REVISED CODE
EARNED AFTER JULY 1, 1978, OR ANY COMBINATION OF SERVICE CREDIT 5,844
UNDER THOSE SECTIONS, the per cent OF FINAL AVERAGE SALARY shown 5,846
in the following schedule times the member's final average salary 5,848
for each corresponding year or fraction of a year of service 5,849
credit earned or purchased under those sections that is in excess 5,851
of thirty years:
Year Per Year Per 5,854
of Cent of Cent 5,855
Service for that Service for that 5,857
Credit Year Credit Year 5,858
30.01-3100 31.00 2.5% 37.01-3800 38.00 3.2% 5,860
125
31.01-3200 32.00 2.6 38.01-3900 39.00 3.3 5,862
32.01-33.00 2.7 39.01-40.00 3.4 5,863
33.01-34.00 2.8 40.01-41.00 3.5 5,864
34.01-35.00 2.9 41.01-42.00 3.6 5,865
35.01-36.00 3.0 42.01-43.00 3.7 5,866
36.01-37.00 3.1 5,867
For purposes of this schedule, years of service credit shall be 5,871
rounded to the nearest one-hundredth of a year.
(b) FOR PURPOSES OF DIVISION (B)(2)(a) OF THIS SECTION, A 5,874
PERCENTAGE OF FINAL AVERAGE SALARY IN EXCESS OF TWO AND 5,875
TWO-TENTHS PER CENT SHALL BE APPLIED TO SERVICE CREDIT UNDER 5,876
SECTION 3307.57 OR 3307.761 OF THE REVISED CODE ONLY IF THE 5,877
SERVICE CREDIT WAS ESTABLISHED BY CONTRIBUTIONS MADE UNDER 5,878
SECTION 145.47, 742.31, 3309.47, 3309.58, OR 5505.15 OF THE 5,879
REVISED CODE OR RESTORED UNDER SECTION 145.31, 742.371, 3309.26, 5,880
OR 5505.20 OF THE REVISED CODE.
(2)(C) The annual single lifetime benefit of a member 5,882
determined under division (B)(1) of this section shall be 5,883
adjusted by the greater per cent shown in the following schedule 5,884
opposite the member's attained age or Ohio service credit. 5,885
Years of Per Cent 5,887
Attained or Ohio Service of Base 5,888
Age Credit Amount 5,889
58 25 75% 5,890
59 26 80 5,891
60 27 85 5,892
61 88 5,893
28 90 5,894
62 91 5,895
63 94 5,896
29 95 5,897
64 97 5,898
65 30 or more 100 5,899
Members shall vest the right to a benefit in accordance 5,902
126
with the following schedule, based on the member's attained age 5,903
by September 1, 1976: 5,904
Per Cent 5,906
Attained of Base 5,907
Age Amount 5,908
66 102% 5,910
67 104 5,911
68 106 5,912
69 108 5,913
70 or more 110 5,914
(3) The annual single lifetime benefit determined under 5,917
this division (B) OF THIS SECTION shall not exceed the lesser of 5,919
one hundred per cent of the final average salary or the limit 5,921
established by section 415 of the "Internal Revenue Code of 5,922
1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended. 5,923
(C)(D) The annual single lifetime benefit of a member 5,925
shall not exceed the lesser of the sum of the following amounts 5,926
or the limit established by section 415 of the "Internal Revenue 5,927
Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended: 5,928
(1) An annuity with a reserve equal to the member's 5,930
accumulated contributions; 5,931
(2) A pension equal to the amount in division (C)(D)(1) of 5,933
this section; 5,934
(3) An additional pension of forty dollars annually 5,936
multiplied by the number of years of prior and military service 5,937
credit, except years of credit purchased under section 3307.021 5,938
3307.751 OR 3307.752 of the Revised Code; 5,941
(4) An additional basic annual pension of one hundred 5,943
eighty dollars, provided the member had ten or more years of Ohio 5,944
service credit as of October 1, 1956, except that the additional 5,946
basic annual pension shall not exceed the sum of the annual
benefits provided by divisions (C)(D)(1), (2), and (3) of this 5,947
section. 5,948
(D)(E) Benefits determined under this section shall be 5,950
127
paid as provided in section 3307.50 3307.60 of the Revised Code. 5,951
Sec. 3307.39 3307.59. (A) A recipient of a disability 5,960
allowance under section 3307.431 3307.631 of the Revised Code who 5,962
is subject to division (C)(3) of that section may make 5,964
application for service retirement under this section. 5,965
Retirement shall be effective on the first day of the first month 5,966
following the last day for which the disability allowance is 5,967
paid.
(B) The annual allowance payable under this section shall 5,969
consist of the sum of the amounts determined under divisions 5,970
(B)(1) and (2) of this section: 5,971
(1) The greater of the following: 5,973
(a) An allowance calculated as provided in section 3307.38 5,975
3307.58 of the Revised Code, excluding any period during which 5,976
the applicant received a disability benefit under section 5,977
3307.431 3307.631 of the Revised Code; 5,979
(b) An allowance calculated by multiplying the applicant's 5,981
total service credit, including service credit for the last 5,982
continuous period during which he THE APPLICANT received a 5,983
disability benefit under section 3307.431 3307.631 of the Revised 5,985
Code, by two and one-tenth TWO-TENTHS per cent of his THE 5,986
APPLICANT'S final average salary, except that the allowance shall 5,989
be determined without application of division (B) of section 5,990
3307.013 3307.501 of the Revised Code and shall not exceed 5,991
forty-five per cent of the applicant's final average salary. 5,992
(2) An amount equal to the additional allowance the 5,994
recipient would receive under section 3307.403 3307.67 of the 5,995
Revised Code, plus any other additional amount he THE RECIPIENT 5,997
would receive under this chapter, had he THE RECIPIENT retired 5,999
under section 3307.38 3307.58 of the Revised Code effective on 6,001
the effective date of his THE RECIPIENT'S most recent continuous 6,003
period of receipt of a disability benefit under section 3307.431 6,004
3307.631 of the Revised Code.
(C) The allowance calculated under division (B) of this 6,006
128
section, exclusive of any amount added under division (B)(2) of 6,007
this section based on section 3307.403 3307.67 of the Revised 6,008
Code, shall be the base for all future additional allowances 6,010
under section 3307.403 3307.67 of the Revised Code. 6,011
The anniversary date for future additional allowances under 6,013
section 3307.403 3307.67 of the Revised Code shall be the 6,014
effective date of the recipient's most recent continuous period 6,016
of receipt of a disability benefit under section 3307.431 6,017
3307.631 of the Revised Code. 6,018
(D) The retirement allowance determined under this section 6,020
shall be paid as provided in section 3307.38 3307.58 of the 6,021
Revised Code. 6,022
Sec. 3307.50 3307.60. (A) Upon application for retirement 6,031
as provided in section 3307.38 3307.58 or 3307.39 3307.59 of the 6,033
Revised Code, the retirant may elect to receive a single lifetime 6,034
benefit, or may elect to receive the actuarial equivalent of the 6,036
retirant's benefit in a lesser amount, payable for life, and 6,037
continuing after death to a beneficiary under one of the 6,039
following optional plans:
(1) Option 1. The retirant's lesser benefit shall be paid 6,041
for life to the sole beneficiary named at retirement. 6,043
(2) Option 2. Some other portion of the retirant's 6,045
benefit shall be paid for life to the sole beneficiary named at 6,047
retirement. The beneficiary's monthly amount shall not exceed 6,049
the monthly amount payable to the retirant during the retirant's 6,050
lifetime.
(3) Option 3. The retirant's lesser benefit established 6,052
as provided under option 1 or option 2 shall be paid for life to 6,054
the sole beneficiary named at retirement, except that in the 6,056
event of the death of the sole beneficiary or termination of a 6,057
marital relationship between the retirant and the sole 6,058
beneficiary the retirant may elect to return to a single lifetime 6,059
benefit equivalent as determined by the state teachers retirement 6,060
board, if, in the case of termination of a marital relationship, 6,062
129
the election is made with the written consent of the beneficiary 6,063
or pursuant to an order of the court with jurisdiction over 6,064
termination of the marital relationship. 6,065
(4) Option 4. Upon the retirant's death before the 6,067
expiration of a certain period from the retirement date and 6,069
elected by the retirant, and approved by the board, the 6,071
retirant's benefit shall be continued for the remainder of such 6,073
period to the beneficiary. Monthly benefits shall not be paid to 6,074
joint beneficiaries, but they may receive the present value of 6,075
any remaining payments in a lump sum settlement. If all 6,076
beneficiaries die before the expiration of the certain period, 6,077
the present value of all payments yet remaining in such period 6,078
shall be paid to the estate of the beneficiary last receiving. 6,079
(5) Option 5. A plan of payment established by the state 6,081
teachers retirement board combining any of the features of 6,082
options 1, 2, and 4. 6,083
(B) Until the first payment is made to a former member 6,085
under section 3307.38 3307.58 or 3307.39 3307.59 of the Revised 6,087
Code, the former member may change the selection of a plan of 6,089
payment. If death occurs prior to an election of a plan of 6,091
payment, option 1 shall be paid to the spouse or other sole 6,092
dependent beneficiary.
(C) If the total benefit paid under this section is less 6,094
than the balance in the teachers' savings fund, the difference 6,096
shall be paid to the beneficiary provided under division (D) of 6,097
section 3307.48 3307.562 of the Revised Code. 6,098
(D) In the case of a retirant who elected an optional plan 6,100
prior to September 15, 1989: 6,101
(1) The death of the spouse or other designated 6,103
beneficiary following retirement shall, at the election of the 6,104
retirant, cancel any optional plan selected at retirement to 6,105
provide continuing lifetime benefits to the spouse or other 6,106
beneficiary and return the retirant to a single lifetime benefit 6,108
equivalent as determined by the board.
130
(2) A divorce, annulment, or marriage dissolution shall, 6,110
at the election of the retirant, cancel any optional plan 6,111
selected at retirement to provide continuing lifetime benefits to 6,112
the spouse as designated beneficiary and return the retirant to a 6,114
single lifetime benefit equivalent as determined by the board if 6,116
the election is made with the written consent of the beneficiary 6,117
or pursuant to an order of a court of common pleas or the court 6,118
of another state with jurisdiction over the termination of the 6,119
marriage.
(E) Following marriage or remarriage, a retirant may elect 6,121
a new optional plan of payment based on the actuarial equivalent 6,122
of the retirant's single lifetime benefit, as determined by the 6,124
board, except that if the retirant is receiving a retirement 6,125
allowance under an optional plan that provides for continuation 6,126
of benefits after death to a former spouse, the retirant may 6,127
elect a new optional plan of payment only with the written 6,128
consent of the former spouse or pursuant to an order of the court 6,129
with jurisdiction over the termination of the marriage. Such 6,130
plan shall become effective the first of the month following an 6,131
application on a form approved by the board. 6,132
(F)(1) Unless one of the following occurs, an application 6,134
for service retirement made pursuant to section 3307.38 3307.58 6,135
or 3307.39 3307.59 of the Revised Code by a married person shall 6,137
be considered an election of a benefit under option 2 as provided 6,138
for in division (A)(2) of this section under which one-half of 6,139
the lesser benefit payable during the life of the retirant will 6,140
be paid after death to the retirant's spouse for life as sole 6,141
beneficiary:
(a) The retirant selects an optional plan under division 6,143
(A) of this section providing for payment after death to the 6,145
retirant's spouse for life as sole beneficiary of more than 6,146
one-half of the lesser benefit payable during the life of the 6,147
retirant.
(b) The retirant submits to the retirement board a written 6,149
131
statement signed by the spouse attesting that the spouse consents 6,150
to the retirant's election to receive a single lifetime annuity 6,153
or a payment under an optional benefit plan under which after the 6,154
death of the retirant the surviving spouse will receive less than 6,155
one-half of the lesser benefit payable during the life of the 6,156
retirant.
(2) An application for retirement shall include an 6,158
explanation of all of the following: 6,159
(a) That, if the member is married, unless the spouse 6,162
consents to another plan of payment, the member's retirement 6,163
allowance will be paid under "option 2" and consist of the 6,164
actuarial equivalent of the member's retirement allowance in a 6,165
lesser amount payable for life and one-half of the lesser 6,166
allowance continuing after death to the surviving spouse for the
life of the spouse; 6,167
(b) A description of the alternative plans of payment 6,170
available with the consent of the spouse;
(c) That the spouse may consent to another plan of payment 6,173
and the procedure for giving consent;
(d) That consent is irrevocable once notice of consent is 6,175
filed with the board. 6,176
Consent shall be valid only if it is signed, in writing, 6,178
and witnessed by a notary public. 6,179
(3) If the retirant does not select an optional plan of 6,181
payment as described in division (F)(1)(a) of this section and 6,182
the board does not receive the written statement provided for in 6,183
division (F)(1)(b) of this section, it shall determine and pay 6,184
the retirement allowance in accordance with this division, except 6,186
that the board may provide by rule for waiver by the board of the 6,187
statement and payment of the benefits other than in accordance 6,188
with this division or payment under section 3307.46 3307.56 of 6,189
the Revised Code if the retirant is unable to obtain the 6,192
statement due to absence or incapacity of the spouse or other 6,193
cause specified by the board. 6,194
132
(G) For the purpose of determining actuarial equivalence 6,196
under this section, on the advice of an actuary employed by the 6,197
board, the board shall adopt mortality tables that may take into 6,198
consideration the membership experience of the state teachers 6,199
retirement system and may also include the membership experience 6,200
of the public employees retirement system and the school 6,201
employees retirement system. 6,202
Sec. 3307.405 3307.61. The board of the state teachers 6,211
retirement system BOARD shall make available to each member or 6,213
former member receiving a monthly allowance or benefit UNDER 6,215
SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE on or after 6,216
January 1, 1968, who has attained the age of sixty-five years, 6,217
and who is not eligible to receive hospital insurance benefits 6,218
under the federal old age, survivors, and disability insurance 6,219
program, hospital insurance coverage substantially equivalent to 6,220
the federal hospital insurance benefits, Social Security 6,221
Amendments of 1965, 79 Stat. 291, 42 U.S.C.A. 1395c, as amended. 6,222
This coverage shall also be made available, to the wife, husband, 6,223
widow, or widower of such member or former member, provided such 6,224
wife, husband, widow, or widower has attained age sixty-five and 6,225
is not eligible to receive hospital insurance benefits under the 6,226
federal old age, survivors, and disability insurance program. 6,227
The widow or widower of a member or former member shall be 6,228
eligible for such coverage only if he or she is the recipient of 6,229
a monthly allowance or benefit from this system. One-half of the 6,230
cost of the premium for such coverage shall be paid from the 6,231
appropriate funds of the state teachers retirement system and 6,232
one-half by the recipient of the allowance or benefit. 6,233
The cost of such coverage, paid from the funds of the 6,235
system, shall be included in the employer's contribution rate 6,236
provided by sections 3307.53 3307.28, 3307.56 3307.30, and 6,238
3307.64 3307.31 of the Revised Code. The retirement board is 6,239
authorized to make all necessary rules pursuant to the purpose 6,240
and intent of this section, and shall contract for such coverage 6,241
133
as provided in section 3307.74 3307.39 of the Revised Code. 6,243
Notwithstanding sections 3307.53 3307.28, 3307.56 3307.30, 6,246
and 3307.64 3307.31 of the Revised Code, the employer's 6,247
contribution rate shall not be increased until July 1, 1969, or 6,248
later to reflect the increased costs created by this section. 6,249
Sec. 3307.42 3307.62. (A) The state teachers retirement 6,258
system shall provide disability coverage to each member 6,260
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 6,261
3307.79 OF THE REVISED CODE who has at least five years of total 6,262
service credit.
Not later than October 16, 1992, the state teachers 6,264
retirement board shall give each person who is a member on July 6,265
29, 1992, the opportunity to elect disability coverage either 6,267
under FORMER section 3307.43 of the Revised Code or under FORMER 6,269
section 3307.431 of the Revised Code. The board shall mail 6,271
notice of the election, accompanied by an explanation of the 6,272
coverage under each of the Revised Code sections and a form on 6,273
which the election is to be made, to each member at the member's 6,274
last known address. The board shall also provide the explanation
and form to any member on the member's request. 6,275
Regardless of whether the member actually receives notice 6,277
of the right to make an election, a member who fails to file a 6,279
valid election under this section shall be considered to have
elected disability coverage under section 3307.43 3307.63 of the 6,281
Revised Code. To be valid, an election must be made on the form 6,282
provided by the retirement board, signed by the member, and filed 6,283
with the board not later than one hundred eighty days after the 6,284
date the notice was mailed, or, in the case of a form provided at 6,285
the request of a member, a date specified by rule of the 6,286
retirement board. Once made, an election is irrevocable, but if 6,287
the member ceases to be a member of the retirement system, the 6,288
election is void. If a person who makes an election under this 6,289
section also makes an election under section 145.35 or 3309.39 of 6,290
the Revised Code, the election made for the system that pays a 6,291
134
disability benefit to that person shall govern the benefit. 6,292
Disability coverage shall be provided under section 6,294
3307.431 3307.631 of the Revised Code for persons who become 6,295
members after July 29, 1992, and for members who elect under this 6,298
division to be covered under section 3307.431 3307.631 of the 6,300
Revised Code.
The retirement board may adopt rules governing elections 6,302
made under this division. 6,303
(B) Application for a disability benefit may be made by a 6,305
member, by a person acting in the member's behalf, or by the 6,306
member's employer, provided IF the member IS PARTICIPATING IN THE 6,308
PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED 6,309
CODE, has at least five years of total service credit, and has 6,312
disability coverage under section 3307.43 3307.63 or 3307.431 6,313
3307.631 of the Revised Code. The application for a disability 6,315
benefit shall be made on a form approved by the state teachers 6,316
retirement board. The benefit payable to any member whose 6,317
application is approved shall become effective on the first day 6,318
of the month next following the later of the following:
(1) The last day for which compensation was paid; 6,320
(2) The attainment of eligibility for a disability 6,322
benefit. 6,323
(C) Medical examination of the member shall be conducted 6,325
by a competent, disinterested physician or physicians selected by 6,326
the retirement board to determine whether the member is mentally 6,327
or physically incapacitated for the performance of duty by a 6,328
disabling condition, either permanent or presumed to be permanent 6,329
for twelve continuous months following the filing of an 6,330
application. The disability must have occurred since last 6,332
becoming a member, or it must have increased since last becoming 6,333
a member to such an extent as to make the disability permanent or 6,334
presumably permanent for twelve continuous months following the 6,335
filing of an application. 6,336
(D) Application for a disability benefit must be made 6,338
135
within two years from the date the member's contributing service 6,339
terminated, unless the retirement board determines that the 6,340
member's medical records demonstrate conclusively that at the 6,341
time the two-year period expired, the member was physically or 6,342
mentally incapacitated for duty as a teacher and unable to make 6,343
application. Application may not be made by any person receiving 6,344
service retirement benefits under section 3307.38 3307.58 or 6,345
3307.39 3307.59 of the Revised Code or any person who, pursuant 6,347
to section 3307.46 3307.56 of the Revised Code, has been paid the 6,348
accumulated contributions standing to the credit of the person's 6,350
individual account in the teachers' savings fund. 6,351
(E) If the physician or physicians determine that the 6,355
member qualifies for a disability benefit, the retirement board 6,356
concurs with the determination, and the member agrees to medical 6,357
treatment as specified in division (G) of this section, the 6,358
member shall receive a disability benefit under section 3307.43 6,359
3307.63 or 3307.431 3307.631 of the Revised Code. If such 6,361
physician or physicians determine that the member does not 6,362
qualify for a disability benefit, the report of the examiner or 6,363
examiners shall be evaluated by a board of medical review 6,364
composed of three physicians appointed by the retirement board. 6,365
(F) The state teachers retirement board shall render an 6,367
order determining whether or not the applicant shall be granted a 6,368
disability benefit. Notification to the applicant shall be 6,369
issued, and upon the request of an applicant who is denied a 6,370
disability benefit, a hearing or appeal relative to such order 6,371
shall be conducted in accordance with procedures established by 6,372
the retirement board. 6,373
(G) The state teachers retirement board shall adopt rules 6,376
requiring each disability benefit recipient, as a condition of 6,377
continuing to receive a disability benefit, to agree in writing 6,378
to obtain any medical treatment recommended by the board's 6,379
physician and submit medical reports regarding the treatment. If 6,381
the board determines that a disability benefit recipient is not 6,382
136
obtaining the medical treatment or the board does not receive a
required medical report, the disability benefit shall be 6,383
suspended until the treatment is obtained, the report is received 6,385
by the board, or the board's physician certifies that the 6,386
treatment is no longer helpful or advisable. Should the 6,388
recipient's failure to obtain treatment or submit a medical
report continue for one year, the recipient's right to the 6,390
disability benefit shall be terminated as of the effective date 6,391
of the original suspension.
(H) If an employer files an application for a disability 6,393
benefit as a result of a member having been separated from 6,394
service because the member is considered to be incapacitated for 6,396
the performance of duty, and the board denies the disability
benefit, the board shall so certify to the employer and such THE 6,397
employer shall restore the member to the member's previous 6,399
position and salary or to a similar position and salary. 6,400
Sec. 3307.43 3307.63. A member PARTICIPATING IN THE PLAN 6,410
DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE who 6,411
has elected disability coverage under this section, has, not 6,413
attained age sixty, and is determined by the state teachers 6,415
retirement board under section 3307.42 3307.62 of the Revised 6,417
Code to qualify for a disability benefit shall be retired on 6,418
disability under this section.
Upon disability retirement, a member shall receive an 6,420
annual amount that shall consist of: 6,421
(A) An annuity having a reserve equal to the amount of the 6,423
member's accumulated contributions at that time; 6,424
(B) A pension that shall be the difference between the 6,426
annuity and an annual amount determined by multiplying the number 6,427
of years of Ohio service credit of such member, and in addition 6,428
the number of years and fraction of a year between the effective 6,429
date of his THE MEMBER'S disability retirement and the date he 6,431
THE MEMBER attained age sixty, assuming continuous service, by 6,432
eighty-six dollars, or by two per cent of his THE MEMBER'S final 6,433
137
average salary, whichever is greater. Such disability retirement 6,435
shall not be less than thirty per cent nor more than seventy-five 6,436
per cent of his THE MEMBER'S final average salary, except that it 6,438
shall not exceed any limit to which the retirement system is 6,439
subject under section 415 of the "Internal Revenue Code of 1986," 6,440
100 Stat. 2085, 26 U.S.C.A. 415, as amended.
If the member is not receiving a disability benefit under 6,442
section 3307.41 3307.57 of the Revised Code, but is receiving a 6,444
disability benefit from either the public employees retirement 6,445
system or the school employees retirement system, then such 6,446
member shall not be eligible for service credit based upon the 6,447
number of years and fractions thereof between the date of 6,448
disability and the date he THE MEMBER attained age sixty as 6,449
otherwise provided in this section. 6,451
A disability retirant under this section whose disability 6,453
retirement has been terminated, when eligible, may apply for 6,454
service retirement provided by section 3307.38 3307.58 of the 6,455
Revised Code. 6,457
Sec. 3307.431 3307.631. (A) A member with PARTICIPATING 6,467
IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE
REVISED CODE WHO HAS disability coverage under this section who 6,469
AND is determined by the state teachers retirement board under 6,470
section 3307.42 3307.62 of the Revised Code to qualify for a 6,472
disability benefit shall receive a disability allowance under 6,473
this section. The allowance shall be an annual amount equal to 6,474
the greater of the following:
(1) Forty-five per cent of the member's final average 6,476
salary; 6,477
(2) The member's total service credit multiplied by two 6,479
and one-tenth TWO-TENTHS per cent of his THE MEMBER'S final 6,481
average salary, not exceeding sixty per cent of his THE MEMBER'S 6,483
final average salary.
(B) Sufficient reserves for payment of the disability 6,485
allowance shall be transferred to the annuity and pension reserve 6,486
138
fund from the employers' trust fund. The accumulated 6,487
contributions of the member shall remain in the teachers' savings 6,488
fund. No part of the allowance paid under this section shall be 6,489
charged against the member's accumulated contributions. 6,490
(C) A disability allowance paid under this section shall 6,492
terminate at the earliest of the following: 6,493
(1) The effective date of service retirement under section 6,495
3307.38 3307.57 or 3307.41 3307.58 of the Revised Code; 6,497
(2) The date the allowance is terminated under section 6,499
3307.44 3307.64 of the Revised Code; 6,500
(3) The later of the last day of the month in which the 6,502
recipient attains age sixty-five, or the last day of the month in 6,503
which the benefit period ends as follows: 6,504
Attained Age at Effective Date 6,506
of Disability Allowance Benefit Period 6,507
60 or 61 60 months 6,508
62 or 63 48 months 6,509
64 or 65 36 months 6,510
66, 67, or 68 24 months 6,511
69 or older 12 months 6,512
Sec. 3307.44 3307.64. A disability benefit recipient, 6,522
notwithstanding section 3319.13 of the Revised Code, shall retain 6,523
membership in the state teachers retirement system and shall be 6,524
considered on leave of absence during the first five years 6,526
following the effective date of a disability benefit.
The state teachers retirement board shall require any 6,528
disability benefit recipient to submit to an annual medical 6,530
examination by a physician selected by the board, except that the 6,531
board may waive the medical examination if the board's physician 6,532
certifies that the recipient's disability is ongoing. If a 6,533
disability benefit recipient refuses to submit to a medical 6,535
examination, the recipient's disability benefit shall be
suspended until the recipient withdraws the refusal. If the 6,537
refusal continues for one year, all the recipient's rights under 6,539
139
and to the disability benefit shall be terminated as of the 6,540
effective date of the original suspension. 6,541
After the examination, the examiner shall report and 6,544
certify to the board whether the disability benefit recipient is 6,545
no longer physically and mentally incapable of resuming the 6,546
service from which the recipient was found disabled. If the 6,548
board concurs in a report by the examining physician that the 6,550
disability benefit recipient is no longer incapable, the payment 6,552
of a disability benefit shall be terminated not later than the 6,553
following thirty-first day of August or upon employment as a 6,554
teacher prior thereto. If the leave of absence has not expired, 6,555
the board shall so certify to the disability benefit recipient's 6,556
last employer before being found disabled that the recipient is 6,557
no longer physically and mentally incapable of resuming service 6,559
that is the same or similar to that from which the recipient was 6,560
found disabled. If the recipient was under contract at the time 6,562
the recipient was found disabled, the employer by the first day 6,564
of the next succeeding year shall restore the recipient to the 6,565
recipient's previous position and salary or to a position and 6,566
salary similar thereto, unless the recipient was dismissed or 6,568
resigned in lieu of dismissal for dishonesty, misfeasance, 6,569
malfeasance, or conviction of a felony. 6,570
A disability benefit shall terminate if the disability 6,573
benefit recipient becomes employed as a teacher in any public or 6,574
private school or institution in this state or elsewhere. An 6,575
individual receiving a disability benefit from the state teachers 6,577
retirement system shall be ineligible for any employment as a 6,578
teacher and it shall be unlawful for any employer to employ the 6,579
individual as a teacher. If any employer should employ or 6,581
reemploy the individual prior to the termination of a disability 6,582
benefit, the employer shall file notice of employment with the 6,583
state teachers retirement board designating the date of the 6,585
employment. If the individual should be paid both a disability 6,587
benefit and also compensation for teaching service for all or any 6,588
140
part of the same month, the secretary of the state teachers 6,589
retirement board shall certify to the employer or to the
superintendent of public instruction the amount of the disability 6,590
benefit received by the individual during the employment, which 6,592
amount shall be deducted from any amount due the employing 6,593
district under Chapter 3317. of the Revised Code or shall be paid 6,594
by the employer to the annuity and pension reserve fund. 6,595
Each disability benefit recipient shall file with the board 6,599
an annual statement of earnings, current medical information on 6,601
the recipient's condition, and any other information required in 6,602
rules adopted by the board. The board may waive the requirement 6,604
that a disability benefit recipient file an annual statement of 6,605
earnings or current medical information if the board's physician 6,606
certifies that the recipient's disability is ongoing. 6,607
The board shall annually examine the information submitted 6,609
by the recipient. If a disability benefit recipient refuses to 6,610
file the statement or information, the disability benefit shall 6,612
be suspended until the statement and information are filed. If 6,613
the refusal continues for one year, the recipient's right to the 6,614
disability benefit shall be terminated as of the effective date 6,615
of the original suspension. 6,616
A disability benefit also may be terminated by the board at 6,618
the request of the disability benefit recipient. 6,619
If disability retirement under section 3307.43 3307.63 of 6,621
the Revised Code is terminated for any reason, the annuity and 6,622
pension reserves at that time in the annuity and pension reserve 6,623
fund shall be transferred to the teachers' savings fund and the 6,624
employers' trust fund, respectively. If the total disability 6,625
benefit paid was less than the amount of the accumulated 6,626
contributions of the member transferred to the annuity and 6,627
pension reserve fund at the time of the member's disability 6,628
retirement, then the difference shall be transferred from the 6,629
annuity and pension reserve fund to another fund as required. In 6,630
determining the amount of a member's account following the 6,631
141
termination of disability retirement for any reason, the total 6,632
amount paid shall be charged against the member's refundable 6,633
account. 6,634
If a disability allowance paid under section 3307.431 6,636
3307.631 of the Revised Code is terminated for any reason, the 6,638
reserve on the allowance at that time in the annuity and pension 6,639
reserve fund shall be transferred from that fund to the 6,640
employers' trust fund.
If a former disability benefit recipient again becomes a 6,642
contributor, other than as an other system retirant under section 6,643
3307.381 3307.35 of the Revised Code, to this retirement system, 6,645
the school employees retirement system, or the public employees 6,646
retirement system, and completes at least two additional years of 6,647
service credit, the former disability benefit recipient shall 6,648
receive credit for the period as a disability benefit recipient. 6,649
Sec. 3307.49 3307.66. (A) As used in this section, 6,658
"physically or mentally incompetent" means incapable of earning a 6,660
living because of a physically or mentally disabling condition. 6,661
Physical or mental incompetency may be determined by a court or 6,662
by a doctor of medicine or osteopathic medicine appointed by the 6,663
state teachers retirement board. 6,664
(B) For the purposes of this section: 6,666
(1) A qualified spouse is the surviving spouse of a 6,669
deceased member of the state teachers retirement system 6,670
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 6,671
3307.79 OF THE REVISED CODE who is one of the following: 6,672
(a) Age sixty-two or any age if the deceased member had 6,674
ten or more years of Ohio service credit; 6,675
(b) Caring for a qualified child; 6,677
(c) Adjudged physically or mentally incompetent; 6,679
(d) Any age if the deceased member was eligible for a 6,681
service retirement allowance as provided in section 3307.38 6,682
3307.58 of the Revised Code and the surviving spouse elects to 6,684
receive a benefit under division (C)(1) of this section. 6,685
142
(2) A qualified child is the child of a deceased member 6,690
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO
3307.79 OF THE REVISED CODE who is both of the following: 6,691
(a) Unmarried; 6,693
(b) Under age eighteen, or under age twenty-two if 6,696
attending an institution of learning or training pursuant to a 6,697
program designed to complete in each school year the equivalent 6,698
of at least two-thirds of the full-time curriculum requirements 6,699
of such institution and as further determined by board policy, or 6,700
any age if adjudged physically or mentally incompetent. 6,701
(3) A qualified parent is a dependent parent of a deceased 6,705
member PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO
3307.79 OF THE REVISED CODE who is age sixty-five or older. 6,706
(4) A person is a "qualified survivor" if the person 6,708
qualifies as a surviving spouse, child, or dependent parent. 6,711
(C) Except as provided in division (G)(1) of this section, 6,714
in lieu of accepting the payment of the accumulated account of a 6,715
member PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 6,716
3307.79 OF THE REVISED CODE who dies before service retirement, a
beneficiary, as determined in section 3307.48 3307.562 of the 6,717
Revised Code, may elect to forfeit the accumulated account and to 6,719
substitute benefits under this division. 6,720
(1) If a deceased member was eligible for a service 6,722
retirement allowance as provided in section 3307.38 3307.58 or 6,723
3307.39 3307.59 of the Revised Code, a surviving spouse or an 6,725
individual designated as the member's sole beneficiary pursuant 6,726
to division (B) of section 3307.48 3307.562 of the Revised Code 6,727
who was a qualified child or dependent parent of the member or 6,729
received one-half or more of support from the member during the 6,730
twelve-month period preceding the member's death may elect to 6,731
receive a monthly benefit computed as the joint-survivor 6,732
allowance designated as option 1 in section 3307.50 3307.60 of 6,733
the Revised Code, which the member would have received had the 6,735
member retired on the last day of the month of death and had the 6,737
143
member at that time selected such joint-survivor plan. Payment 6,739
shall begin with the month subsequent to the member's death. 6,740
(2) If a deceased member had completed at least one and 6,742
one-half years of credit for Ohio service, with at least 6,743
one-quarter year of Ohio contributing service credit within the 6,744
two and one-half years prior to the date of death, or was 6,745
receiving at the time of death a disability benefit as provided 6,746
in section 3307.43 3307.63 or 3307.431 3307.631 of the Revised 6,748
Code, a surviving spouse or other qualified survivor may elect to 6,750
receive monthly benefits as provided in division (C)(2) of this 6,751
section. The surviving spouse or other qualified survivor shall 6,752
elect one of the following methods of calculating benefits 6,754
elected under division (C)(2) of this section, which shall, 6,755
except as provided in division (G)(1) of this section, remain in 6,756
effect without regard to any change in the number of qualified 6,757
survivors:
Or 6,759
(a) Number Annual benefit as a Monthly benefit 6,760
of qualified per cent of member's shall not be 6,761
survivors final average salary less than 6,762
1 25% $ 96 6,765
2 40 186 6,766
3 50 236 6,767
4 55 236 6,768
5 or more 60 236 6,769
Annual benefit as a 6,772
per cent of member's 6,773
(b) Years of service final average salary 6,774
20 29% 6,777
21 33 6,778
22 37 6,779
23 41 6,780
24 45 6,781
25 48 6,782
144
26 51 6,783
27 54 6,784
28 57 6,785
29 60 6,786
(D) If a benefit is calculated pursuant to division 6,789
(C)(2)(a) of this section, benefits to a surviving spouse shall 6,790
be paid in the amount determined for the first qualifying 6,791
survivor in division (C)(2)(a) of this section, but shall not be 6,793
less than one hundred six dollars per month if the deceased 6,794
member had ten or more years of Ohio service credit. All other 6,795
qualifying survivors shall share equally in the benefit or 6,797
remaining portion thereof. 6,798
If a benefit is calculated pursuant to division (C)(2)(b) 6,800
of this section and is payable to more than one qualified 6,801
survivor, the benefit shall be apportioned equally among the 6,803
qualified survivors, except that if there is a surviving spouse, 6,805
the portion of the benefit allocated to the surviving spouse 6,806
shall be as follows: 6,807
Number of 6,809
survivors Spouse's share of total benefit 6,810
2 62.5% 6,813
3 50.0% 6,814
4 45.45% 6,815
5 or more 41.67% 6,816
(E) Benefits payable under division (C)(2) of this section 6,819
shall begin or resume on the first day of the month following the 6,820
day a person becomes a qualified survivor and terminate or be 6,822
suspended on the first day of the month following the day the 6,823
person ceases to be a qualified survivor. 6,825
Benefits to a qualified survivor shall terminate upon a 6,828
first marriage, abandonment, adoption, or during active military 6,830
service. Benefits to a deceased member's surviving spouse that 6,831
were terminated under a former version of this section that
required termination due to remarriage and were not resumed prior 6,832
145
to the effective date of this amendment shall resume on the first 6,833
day of the month immediately following receipt by the board of an 6,834
application on a form provided by the board. 6,835
Upon the death of any subsequent spouse who was a member of 6,838
the public employees retirement system, state teachers retirement 6,839
system, or school employees retirement system, the surviving 6,840
spouse of such member may elect to continue receiving benefits 6,841
under this division, or to receive survivor's benefits, based 6,842
upon the subsequent spouse's membership in one or more of the 6,843
systems, for which such surviving spouse is eligible under this 6,844
section or section 145.45 or 3309.45 of the Revised Code. If the 6,845
surviving spouse elects to continue receiving benefits under this 6,846
division, such election shall not preclude the payment of 6,847
benefits under this division to any other qualified survivor. 6,848
(F) The beneficiary of a member who is also a member of 6,850
the public employees retirement system, or the school employees 6,851
retirement system, must forfeit the member's accumulated 6,852
contributions in those systems, if the beneficiary elects to 6,853
receive a benefit under division (C) of this section. Such 6,855
benefit shall be exclusively governed by section 3307.41 3307.57 6,856
of the Revised Code. 6,857
(G)(1) Regardless of whether the member is survived by a 6,860
spouse or designated beneficiary, if the state teachers 6,861
retirement system receives notice that a deceased member 6,863
described in division (C)(1) or (2) of this section has one or 6,864
more qualified children, all persons who are qualified survivors 6,866
under division (C)(2) of this section shall receive monthly 6,869
benefits as provided in division (C)(2) of this section. 6,870
If, after determining the monthly benefits to be paid under 6,872
division (C)(2) of this section, the system receives notice that 6,873
there is a qualified survivor who was not considered when the 6,874
determination was made, the system shall, notwithstanding section 6,875
3307.711 3307.42 of the Revised Code, recalculate the monthly 6,876
benefits with that qualified survivor included, even if the 6,878
146
benefits to qualified survivors already receiving benefits are 6,879
reduced as a result. The benefits shall be calculated as if the
qualified survivor who is the subject of the notice became 6,880
eligible on the date the notice was received and shall be paid to 6,881
qualified survivors effective on the first day of the first month 6,882
following the system's receipt of the notice. 6,883
If the retirement system did not receive notice that a 6,885
deceased member has one or more qualified children prior to 6,887
making payment under section 3307.48 3307.562 of the Revised Code 6,888
to a beneficiary as determined by the retirement system, the 6,889
payment is a full discharge and release of the system from any 6,890
future claims under this section or section 3307.48 3307.562 of 6,891
the Revised Code.
(2) If benefits under division (C)(2) of this section to 6,894
all persons, or to all persons other than a surviving spouse or 6,896
sole beneficiary, terminate, there are no children under the age
of twenty-two years, and the surviving spouse or beneficiary 6,899
qualifies for benefits under division (C)(1) of this section, the 6,900
surviving spouse or beneficiary may elect to receive benefits 6,901
under division (C)(1) of this section. The benefit shall be 6,903
calculated based on the age of the spouse or beneficiary at the 6,904
time of the member's death and is effective on the first day of 6,905
the month following receipt by the board of an application for 6,906
benefits under division (C)(1) of this section. 6,907
(H) If the benefits due and paid under division (C) of 6,909
this section are in a total amount less than the member's 6,910
accumulated account that was transferred from the teachers' 6,911
savings fund, school employees retirement fund, and public 6,912
employees retirement fund, to the survivors' benefit fund, then 6,913
the difference between the total amount of the benefits paid 6,914
shall be paid to the beneficiary under section 3307.48 3307.562 6,916
of the Revised Code. 6,917
Sec. 3307.661. ON THE DEATH OF A RETIRANT OR DISABILITY 6,919
BENEFIT RECIPIENT WHO AT THE TIME OF DEATH IS RECEIVING, UNDER 6,920
147
THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED 6,921
CODE, A SERVICE RETIREMENT ALLOWANCE OR DISABILITY BENEFIT, THE 6,923
STATE TEACHERS RETIREMENT SYSTEM SHALL MAKE A LUMP-SUM PAYMENT OF 6,924
ONE THOUSAND DOLLARS TO ANY DESIGNATED OR QUALIFIED BENEFICIARY 6,925
UNDER DIVISION (D) OF SECTION 3307.562 OF THE REVISED CODE. IF 6,926
THERE IS NO BENEFICIARY, THE STATE TEACHERS RETIREMENT BOARD MAY 6,928
APPROVE PAYMENT TO EITHER THE PERSON RESPONSIBLE FOR THE BURIAL 6,929
EXPENSES OR TO THE DECEDENT'S ESTATE FOLLOWING THE COMPLETION OF 6,930
AN APPLICATION ON A FORM APPROVED BY THE BOARD. 6,931
Sec. 3307.403 3307.67. (A) Beginning April 1, 1971, and 6,940
each year thereafter, the board of the state teachers retirement 6,942
system BOARD shall determine the average percentage change in the 6,944
consumer price index prepared by the United States bureau of 6,945
labor statistics (U.S. City Average for Urban Wage Earners and 6,946
Clerical Workers: "All Items 1982-84=100") for the 6,947
twelve-calendar-month period prior to the first day of January 6,949
over the next preceding twelve-calendar-month period, as reported 6,950
by the bureau.
Upon a determination by the board in any year that the 6,952
change in the consumer price index is an increase or that the 6,954
change plus the accumulation described in division (B) of this 6,955
section is an increase, the board shall increase each allowance 6,956
or benefit payable under this chapter SECTIONS 3307.50 TO 3307.79 6,957
OF THE REVISED CODE by a percentage equal to the percentage 6,958
increase in the consumer price index or to that increase plus the 6,959
accumulation, except that the increase shall not exceed three per 6,960
cent and no allowance or benefit shall exceed the limit 6,962
established by section 415 of the "Internal Revenue Code of 6,963
1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended. 6,964
The first increase is payable to all persons becoming 6,966
eligible after June 30, 1971, upon such persons receiving an 6,967
allowance or benefit for twelve months. The increased amount is 6,969
payable for the ensuing twelve-month period or until the next 6,970
increase is granted under this section, whichever is later. 6,971
148
Subsequent increases shall be determined from the date of the 6,972
first increase paid to the former member in the case of an
allowance being paid a beneficiary under an option, or from the 6,973
date of the first increase to the survivor first receiving an 6,974
allowance or benefit in the case of an allowance or benefit being 6,975
paid to the subsequent survivors of the former member. 6,976
The date of the first increase under this section becomes 6,979
the anniversary date for any future increases.
The allowance or benefit used in the first calculation of 6,981
an increase under this section shall remain as the base for all 6,982
future increases, unless a new base is established. 6,983
(B) Any percentage of change in the consumer price index 6,985
in any year that is in excess of three per cent shall be 6,986
accumulated and used to determine increases under this section in 6,987
subsequent years. Any percentage of change in the consumer price 6,988
index accumulated by an eligible person prior to the effective 6,989
date of this amendment SEPTEMBER 27, 1996, shall be used in 6,990
determining any future increases under this section. 6,991
(C) The board shall make all rules necessary to carry out 6,993
this section. 6,994
Sec. 3307.408 3307.671. In December, 1980, and in December 7,004
of each year thereafter, the state teachers retirement board may 7,005
allocate an amount from the guarantee fund created in division 7,006
(E) of section 3307.65 3307.14 of the Revised Code to establish a 7,007
temporary supplemental benefit fund for the purpose of making a 7,009
lump sum benefit payment to all persons receiving an allowance, 7,010
pension, or benefit under Chapter 3307. SECTIONS 3307.50 TO 7,011
3307.79 of the Revised Code for each of the twelve months 7,013
preceding the first day of the following January. 7,014
On or after July 1, 1980, and on or after the first day of 7,016
July of each year thereafter, the board may determine the amount 7,017
to be placed in a temporary supplemental benefit fund. Such 7,018
amount, if placed, shall be not more than twenty-five per cent of 7,019
the income from investments for the twelve months preceding the 7,020
149
first day of July not otherwise required to be credited to the 7,021
several funds set forth in section 3307.65 3307.14 of the Revised 7,023
Code.
The board shall adopt rules to administer this supplemental 7,025
benefit. The rules shall recognize the effective date of the 7,026
allowance, pension, or benefit and the years of Ohio service 7,027
credit for each recipient as an equitable basis for allocating 7,028
the amount payable to each recipient. 7,029
If the board determines that a supplemental benefit shall 7,031
be paid under this section, it shall pay such amount within sixty 7,032
calendar days following its allocation to the supplemental 7,033
benefit fund. 7,034
Amounts paid pursuant to this section shall not be included 7,036
in the base for increasing an allowance, pension, or benefit 7,037
provided in section 3307.403 3307.67 of the Revised Code and 7,038
shall not incur any obligation or liability for future payments 7,040
under this section. 7,041
Sec. 3307.371 3307.69. (A) On and after the first day of 7,050
the month following the effective date of this section DECEMBER 7,052
14, 1992, each person eligible to receive a benefit, pursuant to 7,053
FORMER sections 3307.38, 3307.41, 3307.43, 3307.50, AND division 7,054
(C)(1) of FORMER section 3307.49, and section 3307.50 of the 7,056
Revised Code, that was based upon an award made effective before 7,057
June 30, 1955, shall have the benefit payable as of September 30, 7,058
1974, recalculated by the state teachers retirement board so that 7,059
each such person shall receive an annual single lifetime benefit 7,060
or its actuarial equivalent of not less than one hundred forty 7,061
dollars for each year of the member's total service credit, 7,062
except that service credit exceeding thirty-two years shall not 7,063
be used in the recalculation, and a final average salary 7,064
limitation shall not be applied.
If the amount of the benefit recalculated under this 7,066
division is less than the amount that is payable on the effective 7,067
date of this section, then the greater benefit shall be 7,068
150
continued. 7,069
(B) On and after the first day of the month following the 7,071
effective date of this section DECEMBER 14, 1992, each person 7,073
receiving a benefit, pursuant to FORMER sections 3307.38, 7,074
3307.41, 3307.43, 3307.50 AND division (C)(1) of FORMER section 7,076
3307.49, and section 3307.50 of the Revised Code, that was 7,078
effective on and after June 30, 1955, through June 30, 1971,
shall be paid an increased benefit as follows: 7,079
Effective Date of the Per Cent of Increase: 7,081
Member's Benefit: 7,082
June 30, 1955, through
June 29, 1959 33 7,083
June 30, 1959, through
October 31, 1965 21 7,084
November 1, 1965 through
June 30, 1968 14 7,085
July 1, 1968, through
June 30, 1971 5 7,086
The increase shall be applied to the benefit payable on the 7,088
effective date of this section DECEMBER 14, 1992. 7,089
(C) On and after the first day of the month following the 7,091
effective date of this section DECEMBER 14, 1992, each person 7,093
receiving or qualified to receive a benefit, pursuant to division 7,094
(C)(2) of FORMER section 3307.49 of the Revised Code, that was 7,095
effective on and after June 14, 1951, through August 26, 1970, 7,096
shall receive an increase in such benefit in the amount of twenty 7,097
per cent.
Sec. 3307.382 3307.691. On and after the effective date of 7,106
this section AUGUST 20, 1976, the allowances of retirants 7,109
receiving benefits based upon an award from the state teachers 7,110
retirement system made before July 1, 1971, shall have the 7,111
benefit recalculated by the state teachers retirement system so 7,112
that each such person shall receive an annual lifetime benefit or 7,113
its actuarial equivalent of not less than one hundred forty 7,114
151
dollars for each year of the member's total service credit, 7,115
multiplied by the total number of years of service credit, except 7,116
that service credit exceeding thirty-two years shall not be used 7,117
in the recalculation, and a final average salary limitation shall 7,118
not be applied.
If the amount of the benefit recalculated under this 7,120
section is less than the amount that is payable on the effective 7,121
date of this section AUGUST 20, 1976, then the greater benefit 7,123
shall be continued. 7,124
Sec. 3307.384 3307.692. A retirant who on the effective 7,133
date of this amendment AUGUST 6, 1997, is eligible to receive an 7,137
annual single lifetime benefit under FORMER section 3307.38, 7,138
3307.41, or 3307.50 of the Revised Code of less than nine 7,140
thousand six hundred dollars or its actuarial equivalent shall 7,141
have that benefit increased to nine thousand six hundred dollars 7,143
or its actuarial equivalent if the benefit is based on an award
arising from thirty or more years of Ohio service credit. The 7,145
benefit increase provided by this amendment SECTION shall take 7,146
effect on the first day of the first month following the 7,148
effective date of this amendment AUGUST 6, 1997, and shall not be 7,150
subject to any final average salary limitation.
Sec. 3307.401 3307.693. On and after October 1, 1957, all 7,159
persons in receipt of, or who are or become eligible to receive, 7,161
a monthly allowance, pension, or other benefit effective prior to 7,162
June 29, 1955, which is payable or becomes payable pursuant to 7,163
the provisions of FORMER sections 3307.26, 3307.38, 3307.43, and 7,164
3307.50 of the Revised Code, or an allowance payable at any time 7,166
under an option elected by a member and effective prior to that 7,167
date, shall be paid an increased allowance, pension, or benefit 7,168
as follows: 7,169
(A) An amount determined by increasing the original 7,171
allowance, pension, or benefit by the following percentages as 7,172
determined by the calendar year in which the allowance, pension, 7,173
or benefit became effective: 7,174
152
Calendar Year Per Cent of 7,176
Effective Increase
1921-1939 100 7,177
1940 94
1941 89 7,178
1942 77
1943 70
1944 68 7,179
1945 66
1946 55
1947 35 7,180
1948 23
1949 25
1950 23 7,181
1951 8
1952 4
1953 3 7,182
1954 2
Prior to June 29, 1955 2 7,183
(B) If the amount of any such allowance, pension, or other 7,186
benefit is increased by division (A) of this section to an amount 7,187
less than one hundred ten per cent of the present amount payable 7,188
immediately prior to October 1, 1957, such present amount shall 7,189
be increased by ten per cent. 7,190
(C) On and after August 1, 1959, the monthly allowance, 7,192
pension, or other benefit effective prior to June 29, 1955, 7,193
(exclusive of any amount receivable monthly by reason of a 7,194
voluntary deposit made for additional annuity, or for purchase of 7,195
out-of-state credit on or after June 25, 1945), together with the 7,196
supplemental allowance payable pursuant to divisions (A) and (B) 7,197
of this section, shall be increased by twelve per cent. 7,198
(D) Effective November 1, 1965, the allowances of all 7,200
persons who retired before June 30, 1955, and who are receiving 7,201
benefits as of October 31, 1965, except those granted under 7,202
153
FORMER section 3307.49 of the Revised Code, shall be increased 7,203
ten dollars per month, notwithstanding the seventy-five per cent 7,204
final average salary limitation in FORMER section 3307.38 of the 7,205
Revised Code and the sixty per cent final average salary 7,207
limitation in FORMER section 3307.43 of the Revised Code. 7,208
(E) Effective November 1, 1965, the allowances of all 7,210
persons who retired on or after June 30, 1955, and who are 7,211
receiving benefits as of October 31, 1965, except those granted 7,212
under FORMER section 3307.49 of the Revised Code, but including 7,213
allowances payable at any time under an option elected by a 7,214
member, shall be increased by ten dollars per month, which when 7,215
added to the allowance in effect on October 31, 1965, shall not 7,216
exceed the seventy-five per cent final average salary limitation 7,217
in FORMER section 3307.38 of the Revised Code or the sixty per 7,218
cent final average salary limitation in FORMER section 3307.43 of 7,219
the Revised Code, provided that the increase shall not be less 7,221
than six dollars per month. 7,222
(F) Beginning November 1, 1965, the monthly benefit 7,224
payable under division (C)(2) of FORMER section 3307.49 of the 7,225
Revised Code shall be increased six dollars for each survivor 7,226
beneficiary receiving a benefit on October 31, 1965, and for each 7,227
successor to such benefit. Beginning November 1, 1965, all 7,228
survivor beneficiaries receiving benefits as of October 31, 1965, 7,229
under division (C)(1) of FORMER section 3307.49 of the Revised 7,230
Code shall be increased six dollars per month. 7,231
On or before August 1, 1982, and on or before the first day 7,233
of August in each year thereafter, the state teachers retirement 7,234
board shall certify to the treasurer of state the amount required 7,235
to be paid in the preceding fiscal year under divisions (A) and 7,236
(B) of this section. Upon receipt of this certification, the 7,237
treasurer of state shall pay the amount certified. The amount 7,238
received by the state teachers retirement board shall be credited 7,239
to the proper fund from which such additional payments are paid. 7,240
Sec. 3307.402 3307.694. On and after July 1, 1968, all 7,249
154
allowances, pensions, or other benefits which were payable before 7,251
July 1, 1968, pursuant to the provisions of FORMER sections 7,252
3307.26, 3307.38, 3307.41, 3307.43, 3307.49, and 3307.50 of the 7,253
Revised Code, shall be increased by the percentages determined by 7,254
the effective date of the allowance, pension, or benefit, as 7,255
follows:
Effective Date of Benefit Percentage of Increase 7,257
Calendar Year 7,258
1920 through 1955 24.3 7,260
1956 22.5 7,261
1957 18.4 7,262
1958 15.2 7,263
1959 14.3 7,264
1960 12.5 7,265
1961 11.3 7,266
1962 10.1 7,267
1963 8.7 7,268
1964 7.3 7,269
1965 5.6 7,270
1966 2.6 7,271
1967 2.0 7,272
January 1, 1968, through 7,273
June 30, 1968 2.0
All increases determined by applying the percentages in the 7,276
preceding table shall be reduced by the dollar amount of the 7,277
increases granted in 1965 pursuant to divisions (D), (E), and (F) 7,278
of FORMER section 3307.401 of the Revised Code, except that no 7,279
allowance, pension, or benefit shall be reduced below the amount 7,280
due on June 30, 1968, and no allowance granted under this section 7,281
shall be less than a total annual sum of thirty-six dollars. 7,282
The allowances increased by this section shall exclude any 7,284
monthly amount payable by reason of any voluntary deposits made 7,285
under the provisions of sections 3307.33 3307.26 and 3307.51 7,287
3307.741 of the Revised Code, except for prior service purchased 7,288
155
before June 25, 1945. 7,289
The increases provided by this section shall be granted 7,291
notwithstanding the final average salary limitation in FORMER 7,292
sections 3307.38 and 3307.43 of the Revised Code. 7,293
The cost of the increases provided by this section shall be 7,295
included in the employer's contribution rate provided by sections 7,296
3307.53 3307.28, 3307.56 3307.30, and 3307.64 3307.31 of the 7,298
Revised Code. Such employer's contribution rate shall not be 7,299
increased until July 1, 1969, or later to reflect the increased 7,300
costs created by this section. 7,301
Sec. 3307.404 3307.695. On and after December 31, 1971, 7,310
all persons who retired and were eligible to receive a pension 7,312
that was payable prior to July 1, 1968, pursuant to FORMER 7,313
section 3307.38 or 3307.43 of the Revised Code, or in the event 7,314
of the death of such persons, the person designated by the 7,315
deceased to receive payments under FORMER section 3307.50 of the 7,316
Revised Code, shall receive an additional monthly payment of two 7,318
dollars for each year between the member's effective date of 7,319
retirement or disability and December 31, 1971, or an additional 7,320
fifty dollars, whichever is less. On or before the first day of 7,321
August in 1980 and on or before the first day of August in each 7,322
year thereafter, the state teachers retirement board shall 7,323
certify to the treasurer of state the amount required to be paid 7,324
in the preceding fiscal year under this section. Upon receipt of 7,325
such certification, the treasurer of state shall pay to the state 7,326
teachers retirement system the amount certified. 7,327
Sec. 3307.406 3307.696. Each person receiving benefits 7,336
under FORMER section 3307.49 of the Revised Code who became 7,338
eligible to receive such benefits under FORMER section 3307.48 of 7,340
the Revised Code by virtue of the death of a member prior to July
1, 1968, shall receive an additional monthly payment of two 7,341
dollars for each year between the date of such member's death and 7,342
December 31, 1972, or an additional fifty dollars, whichever is 7,343
less.
156
Sec. 3307.407 3307.697. On and after the effective date of 7,352
this section DECEMBER 19, 1973, any person who retired or his THE 7,355
RETIREE'S beneficiary, who was eligible to receive an allowance 7,357
that was first payable on or after July 1, 1968, and prior to 7,358
July 1, 1971, and the beneficiary of a member who died before 7,360
service retirement on or after July 1, 1968, and prior to July 1, 7,361
1971, receiving an allowance or benefit pursuant to FORMER 7,363
sections 3307.38, 3307.41, 3307.43, 3307.49, or 3307.50 of the
Revised Code, shall receive an additional monthly payment of two 7,365
dollars for each year between the member's effective date of 7,366
retirement, disability or death and July 1, 1973. 7,367
Sec. 3307.409 3307.698. (A) Effective July 1, 1981, each 7,376
person eligible to receive an allowance, pension, or benefit 7,378
pursuant to FORMER sections 3307.38, 3307.41, 3307.43, division 7,379
(C)(1) of FORMER section 3307.49, and FORMER section 3307.50 of 7,381
the Revised Code that was based upon an award made effective 7,382
before July 1, 1974, shall have his THE PERSON'S monthly 7,384
allowance, pension, or benefit increased by five per cent, except 7,385
that the twelve-month sum of such increases shall not exceed five 7,386
per cent of the first five thousand dollars of the annual 7,387
allowance, pension, or benefit.
(B) Effective July 1, 1981, each person receiving or 7,389
qualified to receive a benefit, pursuant to division (C)(2) of 7,390
FORMER section 3307.49 of the Revised Code, that was effective on 7,391
and after June 14, 1951, through August 26, 1970, shall receive 7,392
an increase in such benefit of five per cent. 7,393
(C) The increases provided in divisions (A) and (B) of 7,395
this section shall be applied to the benefit payable on and after 7,396
July 1, 1981. 7,397
(D) The increase in the monthly allowance, pension, or 7,399
benefit provided in divisions (A) and (B) of this section shall 7,400
be included in the calculation of additional benefits to 7,401
recipients under section 3307.403 3307.67 of the Revised Code. 7,402
(E) The benefit provided in divisions (A) and (B) of this 7,404
157
section is a continuation of those first provided in Am. Sub. 7,405
H.B. 204 as passed by the 113th general assembly. 7,406
(F) On or before the first day of August, 1982, and on or 7,408
before the first day of August in each year thereafter, the state 7,409
teachers retirement board shall certify to the treasurer of state 7,410
the amounts needed to pay the cost of the additional payments 7,411
required under this section for the preceding fiscal year. Upon 7,412
receipt of these certifications, the treasurer of state shall pay 7,413
the amount certified. 7,414
Sec. 3307.4010 3307.699. As used in this section and 7,423
section 3307.4011 3307.6910 of the Revised Code, "benefit" means 7,425
any allowance, pension, or other benefit to which an individual 7,426
is entitled and that he THE INDIVIDUAL receives pursuant to 7,427
FORMER section 3307.38, 3307.41, 3307.43, 3307.49, or 3307.50 of 7,428
the Revised Code.
The annual amount of each benefit that was payable prior to 7,430
February 1, 1983, shall, after the adjustments required by FORMER 7,432
section 3307.403 of the Revised Code, be increased by five per 7,434
cent.
Sec. 3307.4011 3307.6910. (A) The annual amount of each 7,443
benefit that was based on an award made effective before July 1, 7,445
1979, shall be increased as follows: 7,446
Effective Date of Per Cent of 7,448
Award Increase in Benefit 7,449
Prior to July 1, 1971 4.15 7,450
July 1, 1971, through 7,451
August 31, 1976 2.65 7,452
September 1, 1976, through 7,453
June 30, 1979 1.4 7,454
(B) Effective June 1, 1990, in addition to the increase 7,457
provided under division (A) of this section, the annual amount of 7,458
each benefit that was based on an award made effective before 7,459
July 1, 1979, shall be increased as follows: 7,460
Effective Date of Per Cent of 7,462
158
Award Increase in Benefit 7,463
Prior to July 1, 1971 4.15 7,464
July 1, 1971, through 7,465
August 31, 1976 2.65 7,466
September 1, 1976, through 7,467
June 30, 1979 1.4 7,468
(C) Amounts paid pursuant to this section shall not be 7,471
included in the base for future increases under FORMER section 7,472
3307.403 of the Revised Code in any benefit. 7,473
Sec. 3307.4013 3307.6911. (A) As used in this section: 7,482
(1) "Benefit" means a benefit, pension, or allowance 7,484
PAYABLE under FORMER section 3307.38, 3307.41, 3307.43, 3307.431, 7,486
3307.49, or 3307.50 of the Revised Code.
(2) "Cumulative percentage change in the CPI" means the 7,488
total percentage change in the consumer price index prepared by 7,489
the United States bureau of labor statistics for urban wage 7,491
earners and clerical workers (CPI-W: U.S. city average, all 7,492
items) from the thirty-first day of December immediately 7,493
preceding the year in which the original benefit started through 7,494
the thirty-first day of December immediately preceding the 7,495
effective date of this section AUGUST 6, 1997. 7,496
(3) "Eligible recipient" means any person receiving a 7,498
benefit on the effective date of this section AUGUST 6, 1997, 7,499
that has been payable to that person or to any other person for 7,501
at least twelve months.
(4) "Original benefit amount" means the initial amount of 7,503
a benefit granted to the initial recipient of the benefit. 7,504
(B) As of the effective date of this section AUGUST 6, 7,507
1997, the state teachers retirement board shall determine an 7,508
amount for each eligible recipient equal to the sum of the 7,509
following amounts:
(1) An amount equal to seventy per cent of the original 7,511
benefit amount for the recipient; 7,512
(2) An amount equal to the product obtained when seventy 7,514
159
per cent of the original benefit amount is multiplied by the 7,515
cumulative percentage change in the CPI for the recipient. 7,516
(C)(1) Except as provided in division (C)(2) of this 7,518
section, if the amount of the annual benefit payable to an 7,519
eligible recipient on the effective date of this section AUGUST 7,520
6, 1997, is less than the amount determined for the recipient 7,522
under division (B) of this section, the board shall recalculate 7,523
that annual benefit so that it equals the amount determined under 7,524
division (B) of this section.
(2) If the recalculated benefit determined under division 7,526
(C)(1) of this section for an eligible recipient whose retirement 7,527
was effective before July 1, 1979, is less than one hundred three 7,528
per cent of the annual benefit payable to the recipient on the 7,529
effective date of this section AUGUST 6, 1997, the board shall 7,531
recalculate the annual benefit so that it equals one hundred
three per cent of the annual benefit payable to the recipient on 7,532
the effective date of this section AUGUST 6, 1997. 7,534
An increase granted by division (C)(1) or (2) of this 7,536
section to a benefit amount shall apply on and after the first 7,537
day of the month following the effective date of this section 7,538
AUGUST 6, 1997. 7,539
(D) The board shall include the increase in amount paid 7,541
under this section in a person's base for purposes of future 7,542
increases in any benefit under section 3307.403 3307.67 of the 7,543
Revised Code.
Sec. 3307.78 3307.6912. Effective September 1, 1947, the 7,552
retirement allowances of retired Ohio teachers, or their 7,554
beneficiaries under options elected at retirement and still in 7,555
effect, on the retired list as of that date shall be recalculated 7,556
and paid in accordance with the following: 7,557
(A) Members retired on superannuation effective prior to 7,559
August 31, 1945, shall have the prior service portion of their 7,560
allowances recalculated as of the date of retirement in 7,561
accordance with division (C) of FORMER section 3307.38 of the 7,562
160
Revised Code, with their "final average salary" determined as 7,563
defined in FORMER section 3307.01 of the Revised Code. Any 7,564
allowance payable to members who retired on superannuation under 7,565
an option selected at retirement, or payable to a beneficiary 7,566
pursuant to such option, shall be adjusted upon the basis of the 7,567
amount of allowance payable in accordance with this division. 7,568
(B) Members retired on disability retirement prior to July 7,570
1, 1945, shall have their allowances recalculated as of the date 7,571
of retirement in accordance with divisions (A) and (B) of FORMER 7,572
section 3307.43 of the Revised Code, and with their final average 7,574
salaries determined as defined in FORMER section 3307.01 of the 7,575
Revised Code. 7,576
(C) Members retired on superannuation, commuted 7,578
superannuation, or disability prior to June 30, 1947, with 7,579
fifteen or more years of service credit shall receive a total 7,580
allowance at the rate of not less than twenty dollars annually 7,581
for each year of such service credit, except that a member 7,582
retired on commuted superannuation shall have the reserve for any 7,583
additional pension required to provide such minimum allowance 7,584
commuted as of the date of retirement in the manner prescribed 7,585
for the prior service pension in division (C) of FORMER section 7,586
3307.40 of the Revised Code. Any allowance payable to members 7,588
who retired on superannuation under an option selected at 7,589
retirement, or payable to a beneficiary pursuant to such option, 7,590
shall be adjusted upon the basis of the amount of allowance 7,591
payable in accordance with this division. All pensions continued 7,592
to pensioners following the merger of local district pension 7,593
systems with the state teachers retirement system pursuant to 7,594
FORMER sections 3307.68, 3307.69, and 3307.70 of the Revised Code 7,595
shall be increased ten dollars per month provided no other 7,596
benefit is payable by this section. 7,597
(D) In no case shall any recalculated allowance be 7,599
increased in excess of twenty-five dollars per month by divisions 7,600
(A), (B), and (C) of this section and in no case shall any 7,601
161
allowances be decreased thereby. In no case shall any such 7,602
increases be payable prior to September 1, 1947. The cost of 7,603
providing such increased superannuation and commuted 7,604
superannuation allowances shall be included in the prior service 7,605
pension deficiency contribution rate provided for in FORMER 7,606
section 3307.54 of the Revised Code. The cost of providing such 7,607
increased disability allowances shall be included in the normal 7,608
contribution rate provided for in section 3307.53 3307.28 of the 7,610
Revised Code. 7,611
Sec. 3307.6913. (A) AS USED IN THIS SECTION AND IN 7,613
SECTION 3307.6914 OF THE REVISED CODE, "ELIGIBLE RECIPIENT" MEANS 7,615
ANY PERSON RECEIVING A BENEFIT ON JULY 1, 1999. 7,616
(B) FOR EACH ELIGIBLE RECIPIENT OF A BENEFIT PAYABLE UNDER 7,618
SECTION 3307.58, 3307.59, OR 3307.60 OF THE REVISED CODE, THE 7,620
STATE TEACHERS RETIREMENT BOARD SHALL RECALCULATE THE ANNUAL 7,621
SINGLE LIFETIME BENEFIT, EXCLUDING ANY INCREASES GRANTED UNDER 7,622
SECTION 3307.67 OF THE REVISED CODE, OF THE BENEFIT PAYABLE TO 7,623
THE RECIPIENT USING DIVISION (B) OF SECTION 3307.38 OF THE 7,625
REVISED CODE AS THAT SECTION EXISTED IMMEDIATELY PRIOR TO THE 7,627
EFFECTIVE DATE OF THIS SECTION, EXCEPT THAT THE RECALCULATED
ANNUAL SINGLE LIFETIME BENEFIT SHALL BE ADJUSTED BY THE PER CENT 7,628
SHOWN IN THE SCHEDULE IN THE VERSION OF DIVISION (B) OF SECTION 7,629
3307.38 OF THE REVISED CODE THAT WAS IN EFFECT AT THE TIME THE 7,630
INITIAL RECIPIENT'S BENEFIT WAS CALCULATED ON THE BASIS OF AGE 7,631
AND SERVICE.
(C) IF THE AMOUNT DETERMINED UNDER DIVISION (B) OF THIS 7,634
SECTION IS GREATER THAN THE ANNUAL SINGLE LIFETIME BENEFIT 7,635
GRANTED THE RECIPIENT, THE BOARD SHALL RECALCULATE THE 7,637
RECIPIENT'S BENEFIT SO THAT IT EQUALS THE ANNUAL SINGLE LIFETIME
BENEFIT DETERMINED UNDER DIVISION (B) OF THIS SECTION OR ITS 7,638
ACTUARIAL EQUIVALENT. 7,639
(D) THE BOARD SHALL INCLUDE THE INCREASE IN AMOUNT PAID 7,641
UNDER THIS SECTION IN AN INDIVIDUAL'S BASE FOR PURPOSES OF FUTURE 7,642
INCREASE IN ANY BENEFIT UNDER SECTION 3307.67 OF THE REVISED 7,643
162
CODE.
(E) THE BOARD SHALL MAKE THE RECALCULATIONS REQUIRED UNDER 7,645
THIS SECTION NOT LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE 7,646
EFFECTIVE DATE OF THIS SECTION. THE BOARD MAY ADOPT RULES TO 7,647
IMPLEMENT THIS SECTION. 7,648
Sec. 3307.6914. (A) AS USED IN THIS SECTION: 7,650
(1) "CUMULATIVE PERCENTAGE CHANGE IN THE CPI" MEANS THE 7,652
TOTAL PERCENTAGE CHANGE IN THE CONSUMER PRICE INDEX PREPARED BY 7,653
THE UNITED STATES BUREAU OF LABOR STATISTICS FOR URBAN WAGE 7,655
EARNERS AND CLERICAL WORKERS (CPI-W: U.S. CITY AVERAGE, ALL 7,658
ITEMS) FROM THE THIRTY-FIRST DAY OF DECEMBER IMMEDIATELY 7,659
PRECEDING THE YEAR IN WHICH THE ORIGINAL BENEFIT STARTED THROUGH
THE THIRTY-FIRST DAY OF DECEMBER IMMEDIATELY PRECEDING THE 7,661
EFFECTIVE DATE OF THIS SECTION. 7,662
(2) "ORIGINAL BENEFIT AMOUNT" HAS THE SAME MEANING AS IN 7,664
SECTION 3307.6911 OF THE REVISED CODE. 7,665
(B)(1) EXCEPT AS PROVIDED IN DIVISION (B)(2) OF THIS 7,667
SECTION, FOR EACH ELIGIBLE RECIPIENT OF A BENEFIT PAYABLE UNDER 7,668
SECTION 3307.58, 3307.59, 3307.60, 3307.63, 3307.631, OR 3307.66 7,669
OF THE REVISED CODE, THE BOARD SHALL DETERMINE AN AMOUNT EQUAL TO 7,671
THE SUM OF THE FOLLOWING AMOUNTS:
(a) AN AMOUNT EQUAL TO EIGHTY-FIVE PER CENT OF THE 7,673
ORIGINAL BENEFIT AMOUNT, EXCEPT THAT IF THE RECIPIENT IS NOT THE 7,674
INDIVIDUAL TO WHOM THE ORIGINAL BENEFIT AMOUNT WAS GRANTED, THE 7,675
AMOUNT SHALL EQUAL EIGHTY-FIVE PER CENT OF THE PRODUCT OBTAINED 7,676
WHEN THE ORIGINAL BENEFIT AMOUNT IS MULTIPLIED BY THE PERCENTAGE 7,677
OF THE ORIGINAL BENEFIT AMOUNT BEING PAID TO THE RECIPIENT; 7,678
(b) AN AMOUNT EQUAL TO THE PRODUCT OBTAINED WHEN THE 7,680
AMOUNT DETERMINED UNDER DIVISION (B)(1) OF THIS SECTION IS 7,681
MULTIPLIED BY THE CUMULATIVE PERCENTAGE CHANGE IN THE CPI. 7,682
(2) FOR EACH ELIGIBLE RECIPIENT OF A BENEFIT UNDER SECTION 7,684
3307.66 OF THE REVISED CODE THAT IS PAYABLE BY REASON OF THE 7,685
DEATH OF A MEMBER WHO, AT THE TIME OF DEATH, WAS RECEIVING A 7,687
BENEFIT UNDER SECTION 3307.63 OR 3307.631 OF THE REVISED CODE, 7,688
163
THE BOARD SHALL DETERMINE ALL OF THE FOLLOWING: 7,689
(a) THE PRODUCT OBTAINED BY MULTIPLYING THE DECEASED 7,691
MEMBER'S FINAL AVERAGE SALARY BY THE CUMULATIVE PERCENTAGE CHANGE 7,692
IN THE CPI. 7,693
(b) EIGHTY-FIVE PER CENT OF THE PRODUCT OBTAINED UNDER 7,696
DIVISION (B)(2)(a) OF THIS SECTION. 7,697
(c) THE AMOUNT OF THE BENEFIT THAT WOULD BE PAYABLE UNDER 7,699
SECTION 3307.66 OF THE REVISED CODE IF THE PRODUCT OBTAINED UNDER 7,700
DIVISION (B)(2)(b) OF THIS SECTION WAS USED AS THE DECEASED 7,702
MEMBER'S FINAL AVERAGE SALARY. 7,703
(C) IF THE AMOUNT DETERMINED UNDER DIVISION (B) OF THIS 7,705
SECTION IS GREATER THAN THE ANNUAL BENEFIT BEING PAID TO THE 7,707
RECIPIENT, THE BOARD SHALL RECALCULATE THE ANNUAL BENEFIT PAYABLE 7,708
ON THE EFFECTIVE DATE OF THIS SECTION SO THAT IT EQUALS THE 7,709
AMOUNT DETERMINED UNDER THAT DIVISION. IF THE RECIPIENT'S 7,710
BENEFIT WAS RECALCULATED UNDER DIVISION (C) OF SECTION 3307.6913 7,711
OF THE REVISED CODE, THE BOARD SHALL USE THE RECALCULATED BENEFIT 7,713
IN MAKING A DETERMINATION UNDER THIS SECTION. 7,714
(D) THE BOARD SHALL INCLUDE THE INCREASE IN AMOUNT PAID 7,716
UNDER THIS SECTION IN AN INDIVIDUAL'S BASE FOR PURPOSES OF FUTURE 7,717
INCREASE IN ANY BENEFIT UNDER SECTION 3307.67 OF THE REVISED 7,718
CODE.
(E) THE BOARD SHALL MAKE THE RECALCULATIONS REQUIRED UNDER 7,720
THIS SECTION NOT LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE 7,721
EFFECTIVE DATE OF THIS SECTION. THE BOARD MAY ADOPT RULES TO 7,722
IMPLEMENT THIS SECTION. 7,723
Sec. 3307.281 3307.70. (A) The state teachers retirement 7,732
board may establish by rule payroll deduction plans for payment 7,734
of the following: 7,736
(1) The cost of restoring service credit under section 7,738
3307.28 3307.71 or 3307.282 3307.711 of the Revised Code or 7,740
purchasing any service credit members of the state teachers 7,742
retirement system are eligible to purchase under this chapter; 7,743
(2) Charges for participation in programs established 7,745
164
under section 3307.741 3307.391 of the Revised Code. 7,746
(B) In addition to any other matter considered relevant by 7,748
the board, the rules adopted under this section shall specify all 7,749
of the following: 7,750
(1) The types of service credit that may be paid for 7,752
through payroll deduction, including the section of the Revised 7,753
Code that authorizes the purchase of each type of service credit 7,754
for which payment may be made by payroll deduction; 7,755
(2) The procedure for informing the member's employer and 7,760
the system that the member wishes to use payroll deduction to 7,762
purchase service credit or pay for participation in programs
established under section 3307.741 3307.391 of the Revised Code; 7,764
(3) The procedure to be followed by the system and 7,766
employers to determine for each request the amount to be 7,767
deducted, the number of deductions to be made, and the interval 7,768
at which deductions will be made. The rules may provide for a 7,769
minimum amount for each deduction. They may also provide for a 7,770
maximum number of deductions for the purchase of any type of 7,771
service credit. 7,772
(4) The procedure to be followed by employers in 7,774
transmitting amounts deducted from the compensation of their 7,775
employees to the system; 7,776
(5) The procedure to be followed by the system in 7,778
crediting service credit to members who choose to purchase it 7,779
through payroll deduction; 7,780
(6) The time period within which employers are required to 7,782
transmit amounts deducted from payrolls to the system. 7,783
(C)(1) If the board establishes a payroll deduction plan 7,785
under this section, it shall certify to the member's employer, 7,786
for each member for whom deductions are to be made, the amount of 7,787
each deduction and the payrolls from which deductions are to be 7,788
made. The employer shall make the deductions as certified and 7,789
transmit the amounts deducted in accordance with the rules 7,790
established by the board under this section. 7,791
165
(2) If an employer does not transmit amounts deducted from 7,793
the compensation of an employee to the system within the time 7,794
period specified in rules adopted under division (B)(6) of this 7,795
section, the employer shall pay interest on the deducted amount 7,796
compounded annually at a rate to be determined by the board from 7,797
the date the amount is deducted to the date it is transmitted to 7,798
the system. 7,799
(D) Rules adopted under this section shall not affect any 7,801
right to purchase service credit conferred by any other section 7,802
of the Revised Code, including the right of a member under any 7,803
such section to purchase only part of the service credit the 7,804
member is eligible to purchase. 7,806
(E) No payroll deduction made pursuant to this section may 7,808
exceed the amount of a member's net compensation after all other 7,809
deductions and withholdings required by law. 7,810
(F) No payments made to the system under this section 7,812
shall affect any contribution required by section 3307.51 3307.26 7,814
or 3307.53 3307.28 of the Revised Code. 7,815
Sec. 3307.28 3307.71. The membership of any person in the 7,824
state teachers retirement system shall cease on occurrence of any 7,827
of the following: receipt of payment pursuant to section 3307.46 7,828
of the Revised Code; retirement as provided in section 3307.38 or 7,829
3307.39 of the Revised Code; death; or denial of membership 7,830
pursuant to section 3307.27 of the Revised Code.
Except as provided in this section, a member or former 7,832
member of the state teachers retirement system with PARTICIPATING 7,834
IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE 7,835
REVISED CODE WHO HAS at least one and one-half years of
contributing service credit in this system, the public employees 7,836
retirement system, the school employees retirement system, the 7,837
Ohio police and fire pension fund, or the state highway patrol 7,840
retirement system after the withdrawal and cancellation of 7,841
service credit in this system may restore all or part of such 7,842
service credit by repayment of the amount withdrawn. To this 7,843
166
amount shall be added interest at a rate per annum, compounded 7,844
annually, to be determined by the STATE TEACHERS retirement 7,845
board. Interest shall be payable from the first of the month of 7,847
withdrawal through the month of repayment. A member may choose 7,848
to purchase only part of such credit in any one payment. The 7,849
cost for restoring partial service shall be calculated as the 7,850
proportion that it bears to the total cost at the time of 7,851
purchase and is subject to the rules established by the board. 7,852
If a former member is eligible to buy the service credit as a 7,853
member of the Ohio police and fire pension fund or state highway 7,856
patrol retirement system, the former member is ineligible to 7,857
restore that service credit under this section. 7,858
The total payment to restore canceled service credit shall 7,861
be credited as follows:
(A) The amount that equals contributions made pursuant to 7,863
section 3307.51 3307.26 of the Revised Code, plus any interest on 7,865
the contributions paid by the member pursuant to this section, to 7,866
the member's account in the teachers' savings fund; 7,867
(B) The amount that equals the amount paid under section 7,869
3307.80 3307.563 of the Revised Code, to the employers trust 7,870
fund;
(C) The remainder of the payment to restore canceled 7,872
service credit, to the guarantee fund. 7,873
Sec. 3307.282 3307.711. (A) A member of the state 7,882
teachers retirement system who has at least eighteen months of 7,885
contributing service credit in the system, the police and
firemen's disability and pension fund, public employees 7,887
retirement system, school employees retirement system, or state 7,888
highway patrol retirement system, and is a former member of or no 7,889
longer contributing to the public employees retirement system or 7,890
school employees retirement system may restore service credit 7,891
under section 145.31 or 3309.26 of the Revised Code by making 7,892
payments pursuant to this section through a payroll deduction 7,893
plan established under section 3307.281 3307.70 of the Revised 7,895
167
Code. A member seeking to restore this service credit shall 7,897
notify the state teachers retirement system on a form approved by
the state teachers retirement board. After receiving the notice, 7,899
the state teachers retirement system shall request that the 7,900
former retirement system calculate under section 145.312 or 7,901
3309.262 of the Revised Code the cost to the member to restore 7,903
service credit for each year or portion of a year of service for 7,904
which the member seeks to restore the service credit. The amount 7,905
the former retirement system certifies as the cost of restoring 7,906
the service credit, plus interest described in division (B) of 7,907
this section, is the cost to the member of restoring the service 7,908
credit. On receiving the certification from the former
retirement system, the state teachers retirement system shall 7,910
notify the member of the cost. 7,911
(B) For each year or portion of a year of service credit 7,913
restored under section 145.31 or 3309.26 of the Revised Code, a 7,914
member shall pay to the state teachers retirement system the 7,916
amount certified by the former retirement system plus interest at 7,917
a rate specified by the former retirement system under section 7,918
145.312 or 3309.262 of the Revised Code for the period during 7,919
which deductions are made under section 3307.281 3307.70 of the 7,920
Revised Code. 7,922
(C) The state teachers retirement board shall annually 7,925
notify the former retirement system that a payment to restore 7,926
service credit under section 145.31 or 3309.26 of the Revised 7,927
Code has been made. At the time the payment is transferred under 7,928
division (D) of this section, the former retirement system shall 7,929
restore the service credit for the year or portion of a year for 7,930
which the payment was made. 7,931
(D) On application for a payment of accumulated 7,933
contributions or an age and service retirement, disability, or 7,935
survivor benefit under Chapter 145., 3307., or 3309. of the 7,936
Revised Code by a member who made payments under this section to 7,938
restore service credit in a former retirement system, the state 7,939
168
teachers retirement system shall pay to the former retirement 7,940
system an amount equal to the total amount paid by the member 7,942
under this section.
(E) The board shall adopt rules to implement this section. 7,944
Sec. 3307.283 3307.712. After receiving a request from the 7,953
public employees retirement system under division (A) of section 7,955
145.311 or the school employees retirement system under division 7,957
(A) of section 3309.261 of the Revised Code, the state teachers 7,960
retirement system shall do both of the following: 7,961
(A) Calculate and certify to the requesting retirement 7,964
system the cost to a former member to restore service credit 7,965
under section 3307.28 3307.71 of the Revised Code for each year 7,966
or portion of a year for which the former member seeks to restore 7,968
service credit under that section.
(B) Inform the requesting retirement system of the rate of 7,970
interest charged to a member under a payroll deduction plan 7,971
authorized under section 3307.281 3307.70 of the Revised Code. 7,972
Sec. 3307.73 3307.72. The state teachers retirement board 7,981
shall credit years of service to a member PARTICIPATING IN THE 7,983
PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE 7,984
who was employed for teaching service by an employer who failed 7,985
to make retirement contributions to the state teachers retirement 7,986
system during any year or years beginning on or after September 7,987
1, 1920, if the member deposits in the teachers' savings fund a 7,988
per cent of the member's annual compensation for such service, at 7,990
the rate of contribution then in effect, plus interest compounded 7,991
annually at a rate established by the retirement board. The 7,992
member may choose to purchase only part of such credit in any one 7,993
payment, subject to board rules. 7,994
The employer shall, upon the request of such member, 7,996
certify the amount of compensation by years of employment to the 7,998
secretary of the board. For teaching service on or after July 1, 7,999
1978, the employer shall pay an amount equal to the employer 8,000
contributions due at the time the service occurred, plus compound
169
interest at a rate determined by the board from the date the 8,001
service began to the date of payment. 8,002
Sec. 3307.22 3307.73. (A)(1) Except as provided in 8,011
division (A)(2) of this section, a member of the state teachers 8,012
retirement system with PARTICIPATING IN THE PLAN DESCRIBED IN 8,013
SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE WHO HAS at least 8,014
eighteen months of contributing service in the system, the public 8,016
employees retirement system, or the school employees retirement 8,017
system who CHOSE TO BE exempted himself from membership in one or 8,020
more of the systems pursuant to section 145.03, or 3309.23 of the 8,021
Revised Code, or former section 3307.25 or 3309.25 of the Revised 8,022
Code, or was exempt under section 3307.27 3307.24 of the Revised 8,024
Code, may purchase credit for each year or portion of a year of 8,025
service for which he THE MEMBER was exempted.
(2) A member may not purchase credit under this section 8,027
for service that was exempted from contribution under section 8,028
3307.27 3307.24 of the Revised Code and subject to the tax on 8,029
wages imposed by the "Federal Insurance Contributions Act," 68A 8,031
Stat. 415 (1954), 26 U.S.C.A. 3101, as amended. 8,032
(B) For each year or portion of a year of credit purchased 8,034
under this section, a member shall pay to the STATE TEACHERS 8,035
retirement system an amount determined by multiplying the 8,037
member's compensation for the twelve months of contributing 8,038
service preceding the month in which he THE MEMBER applies to 8,039
purchase the credit by a percentage rate established by rule of 8,041
the state teachers retirement board adopted under division (F) of 8,042
this section.
(C) Subject to board rules, a member may purchase all or 8,044
part of the credit he THE MEMBER is eligible to purchase under 8,045
this section in one or more payments. If the member purchases 8,047
the credit in more than one payment, compound interest at a rate 8,048
specified by rule of the board shall be charged on the balance 8,049
remaining after the first payment is made. 8,050
(D) Credit purchasable under this section shall not exceed 8,052
170
one year of service for any twelve-month period. If the period 8,053
of service for which credit is purchasable under this section is 8,054
concurrent with a period of service that will be used to 8,055
calculate a retirement benefit from this system, the public 8,056
employees retirement system, or the school employees retirement 8,057
system, the amount of the credit shall be adjusted in accordance 8,058
with rules adopted by the state teachers retirement board. 8,059
A member who is also a member of the public employees 8,061
retirement system or the school employees retirement system shall 8,062
purchase credit for any service for which he THE MEMBER exempted 8,063
himself SELF under section 145.03 or 3309.23 of the Revised Code, 8,065
or former section 3307.25 or 3309.25 of the Revised Code, or was 8,066
exempt under section 3307.27 3307.24 of the Revised Code, from 8,067
the retirement system in which he THE MEMBER has the greatest 8,069
number of years of service credit. If the member receives 8,071
benefits under section 3307.41 3307.57 of the Revised Code, the 8,073
state retirement system that determines and pays the retirement 8,074
benefit shall receive from the other system or systems the 8,075
amounts paid by the member for purchase of credit for exempt 8,076
service plus interest at the actuarial assumption rate of the 8,077
system paying that amount. The interest shall be for the period 8,078
beginning on the date of the member's last payment for purchase 8,079
of the credit and ending on the date of the member's retirement. 8,080
(E) If a member dies or withdraws from service, any 8,082
payment made by the member under this section shall be considered 8,083
as accumulated contributions of the member. 8,084
(F) The retirement board shall adopt rules to implement 8,086
this section. 8,087
Sec. 3307.32 3307.74. (A) Service credit purchased under 8,096
this section shall be included in the member's total service 8,098
credit. Credit may be purchased BY A MEMBER PARTICIPATING IN THE 8,099
PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE 8,100
for the following:
(1) Teaching service in a public or private school, 8,102
171
college, or university of this or another state, and for teaching 8,103
service in any school or entity operated by or for the United 8,104
States government. Teaching credit purchased under this section 8,105
shall be limited to service rendered in schools, colleges, or 8,106
universities chartered or accredited by the appropriate 8,107
governmental agency. 8,108
(2) Public service with another state or the United States 8,110
government, provided that such credit shall be limited to service 8,111
that would have been covered by the state teachers retirement 8,112
system, the school employees retirement system, the Ohio police 8,114
and fire pension fund, the state highway patrol retirement 8,117
system, or the public employees retirement system if served in a 8,118
comparable public position in this state.
(3) Service for which contributions were made by the 8,120
member or on the member's behalf to a municipal retirement system 8,122
in this state. 8,123
The number of years of service purchased under this section 8,125
shall not exceed the lesser of five years or the member's total 8,126
accumulated number of years of Ohio service. 8,127
(B)(1) Except as otherwise provided in division (B)(2) of 8,129
this section, for each year of service purchased under this 8,130
section, a member shall pay to the state teachers retirement 8,131
system for credit to the member's accumulated account an amount 8,133
equal to the member's retirement contribution for full-time 8,134
employment for the first year of Ohio service following 8,136
termination of the service to be purchased. To this amount shall 8,137
be added an amount equal to compound interest at a rate 8,138
established by the state teachers retirement board from the date 8,139
of membership in the state teachers retirement system to the date 8,140
of payment.
(2) For each year of service described in division (A) of 8,142
this section that commenced on or after July 1, 1989, and, 8,143
without regard to when the service commenced, for each year of 8,144
service purchased under division (A) of this section by a member 8,145
172
who first established membership in the retirement system on or 8,146
after July 1, 1989, the member shall pay to the retirement system 8,147
for credit to the member's individual account an amount specified 8,149
by the state teachers retirement board that shall be not less 8,150
than fifty per cent of the additional liability resulting from 8,151
the purchase of that year of service as determined by an actuary 8,152
employed by the board. 8,153
(3) A member may choose to purchase only part of the 8,155
credit the member is eligible to purchase under this section in 8,157
any one payment, subject to board rules. 8,158
(C) A member is ineligible to purchase under this section 8,160
service that is used in the calculation of any retirement benefit 8,161
currently being paid or payable in the future to such member 8,162
under any other retirement program, except social security. At 8,163
the time the credit is purchased, the member shall certify on a 8,164
form furnished by the retirement board that the member does and 8,166
will conform to this requirement. 8,167
(D) Credit purchased under this section may be combined 8,169
pursuant to section 3307.41 3307.57 of the Revised Code with 8,170
credit purchased under sections 145.293 and 3309.31 of the 8,172
Revised Code, except that not more than a total of five years' 8,173
service credit purchased under this section and sections 145.293 8,174
and 3309.31 of the Revised Code shall be used in determining 8,175
retirement eligibility or calculating benefits under section 8,176
3307.41 3307.57 of the Revised Code. 8,178
(E) The retirement board shall establish a policy to 8,180
determine eligibility to purchase credit under this section, and 8,181
its decision shall be final. 8,182
Sec. 3307.33 3307.741. (A) As used in this section, 8,191
"other Ohio state retirement system" means the public employees 8,193
retirement system, the school employees retirement system, the 8,194
Ohio police and fire pension fund, or the state highway patrol 8,197
retirement system.
(B) Any member PARTICIPATING IN THE PLAN DESCRIBED IN 8,199
173
SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE, in addition to 8,200
service as a teacher, may purchase credit for either of the 8,201
following:
(1) Similar service as a teacher in the public day 8,203
schools, in state universities, state normal schools, and other 8,204
state or municipal institutions of a character similar to the 8,205
state or municipally supported schools of Ohio in which 8,206
membership in the state teachers retirement system is allowed, of 8,207
another state of the United States, or of any territory or 8,208
possession of the United States, or of the District of Columbia; 8,209
(2) Similar service as an employee of an employer who 8,211
comes within any other Ohio state retirement system but for 8,212
service which is rendered at any time in another state of the 8,213
United States or of any territory or possession thereof, or for 8,214
service as an employee of the United States government, provided 8,215
credit cannot be purchased for service credit or benefits 8,216
received in any other state retirement system in Ohio. 8,217
(C) Any member who has at least ten years of total service 8,219
credit may also purchase credit for similar service as a teacher 8,220
in a private school, college, university, or other educational 8,221
institution that is located in this or another state, in any 8,222
territory or possession of the United States, or in the District 8,223
of Columbia, and is chartered or accredited by the appropriate 8,224
governmental agency. 8,225
(D) The state teachers retirement board shall have final 8,227
authority to determine and fix the amount of the payment that 8,228
shall be made for credit for service purchased under this 8,229
section, provided that if the member established membership in 8,230
the state teachers retirement system on or after July 1, 1989, or 8,231
the credit is for service described in division (B) or (C) of 8,232
this section that commenced on or after July 1, 1989, the amount 8,233
of the payment fixed by the board shall be not less than fifty 8,234
per cent of the additional liability resulting from the credit as 8,235
specified by an actuary employed by the board. 8,236
174
A member may choose to purchase only part of the credit the 8,238
member is eligible to purchase under this section in any one 8,240
payment, subject to board rules. Such payment, together with 8,241
interest compounded annually at a rate to be determined by the 8,242
board, may be refunded under the same conditions and in the same 8,243
manner as refunds are made under section 3307.51 3307.26 of the 8,244
Revised Code, and the credit provided by such payment shall be 8,246
canceled. At superannuation or commuted superannuation 8,247
retirement such payment for service, with regular interest 8,248
compounded annually at a rate to be determined by the board, 8,249
shall be deposited in the annuity and pension reserve fund as the 8,250
reserve for additional annuity as provided in section 3307.51 8,251
3307.26 of the Revised Code, excepting moneys charged for any 8,253
additional liabilities resulting from the purchase of the service 8,254
credit as determined by the actuary employed by the board. 8,255
Sec. 3307.02 3307.75. (A) As used in this section, "armed 8,264
forces" of the United States includes both: 8,266
(1) Army, navy, air force, marine corps, coast guard, 8,268
auxiliary corps as established by congress, army nurse corps, 8,269
navy nurse corps, red cross nurse serving with the army, navy, 8,270
air force, or hospital service of the United States, full-time 8,271
service with the American red cross in a combat zone, and such 8,272
other service as is designated by the congress as included 8,273
therein; 8,274
(2) Personnel of the Ohio national guard, the Ohio 8,276
military reserve, the Ohio naval militia, and the reserve 8,277
components of the armed forces enumerated in division (A)(1) of 8,278
this section who are called to active duty pursuant to an 8,279
executive order issued by the president of the United States or 8,280
an act of congress. 8,281
(B) Upon presentation of an honorable discharge or 8,283
certificate of service, and subject to rules adopted by the state 8,284
teachers retirement board, any member of the state teachers 8,285
retirement system PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 8,286
175
3307.50 TO 3307.79 OF THE REVISED CODE who was or is out of 8,288
active service as a teacher by reason of having become a member 8,289
of the armed forces of the United States on active duty or 8,290
service shall be considered as on indefinite leave of absence and 8,291
shall have such service not in excess of ten years considered as 8,292
the equivalent of prior service, provided the member returns to 8,293
service as a teacher within two years after the effective date of 8,294
discharge and establishes one year of service credit, or becomes 8,295
a member of either the public employees retirement system or the 8,296
school employees retirement system within such two-year period 8,297
and establishes at least one year of service credit. The 8,298
retirement board shall extend such two-year period an additional 8,299
year if failure to return is due to continuous professional 8,300
training as determined by said board. If such member, otherwise 8,301
qualified for such credit, canceled membership by the withdrawal 8,303
of the member's accumulated account, such military service credit 8,304
shall be granted following the restoration of the member's 8,305
canceled service credit as provided by section 3307.28 3307.71 of 8,307
the Revised Code. Any member of the state teachers retirement 8,309
system or anyone who becomes a new entrant who is assigned or 8,310
called to take charge of special training for essential national 8,311
defense work or veterans' training courses in any of the public 8,312
schools or universities of the state may make regular 8,313
contributions to the state teachers retirement system even though 8,314
the member's or new entrant's salary is paid from federal funds, 8,317
provided the member's or new entrant's salary is disbursed by an 8,318
employer.
(C) A member of the state teachers retirement system is 8,320
ineligible to receive service credit under this section for any 8,321
year of military service credit used in the calculation of any 8,322
retirement benefit currently being paid to the member or payable 8,323
in the future under any other retirement program, except social 8,324
security, or used to obtain service credit pursuant to section 8,325
3307.021 3307.751 or 3307.022 3307.752 of the Revised Code. At 8,327
176
the time such credit is requested, the member shall certify on a 8,329
form supplied by the retirement board that the member does and 8,330
will conform to this requirement. This division does not cancel 8,331
any military service credit earned prior to March 15, 1979. 8,332
Sec. 3307.021 3307.751. (A) A member PARTICIPATING IN THE 8,341
PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE 8,342
may purchase service credit that shall be considered as the 8,344
equivalent of Ohio service for each year of service incurred by 8,345
reason of having been on active duty as a member of the armed 8,346
forces of the United States, as defined in section 3307.02 8,347
3307.75 of the Revised Code. The credit may be purchased at any 8,349
time prior to the effective date of a benefit. The number of 8,350
years purchased under this division shall not exceed five. 8,351
(B) For the purposes of this division, "prisoner of war" 8,353
means any regularly appointed, enrolled, enlisted, or inducted 8,354
member of the armed forces of the United States who was captured, 8,355
separated, and incarcerated by an enemy of the United States. 8,356
A member PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 8,358
3307.50 TO 3307.79 OF THE REVISED CODE may purchase service 8,359
credit that shall be considered as the equivalent of Ohio service 8,360
for each year of service such member was a prisoner of war. The 8,361
number of years purchased under this division shall not exceed 8,362
five. Service credit may be purchased under this division for 8,363
the same years of service used to purchase service credit under 8,364
division (A) of this section. 8,365
(C) The total number of years purchased under this section 8,367
shall not exceed the member's total accumulated number of years 8,368
of Ohio service. 8,369
(D)(1) Except as otherwise provided in division (D)(2) of 8,371
this section, for each year of service purchased under division 8,372
(A) or (B) of this section, the member shall pay to the state 8,373
teachers retirement system for credit to the member's accumulated 8,375
account an amount determined by the member rate of contribution 8,376
in effect at the time the military service began multiplied by 8,377
177
the member's annual compensation for full-time employment during 8,379
the first year of service in Ohio following termination of 8,380
military service. If, however, a limit on maximum salary or 8,381
maximum contribution was in effect at the time the military 8,382
service began, the limit shall be applied to the salary received 8,383
during the first year of service in Ohio to calculate the amount 8,384
of payment. To this amount shall be added an amount equal to 8,385
compound interest at a rate established by the state teachers 8,386
retirement board from the date active military service terminated 8,387
to date of payment.
(2) For each year of service purchased under division (A) 8,389
or (B) of this section for military service that commenced on or 8,390
after July 1, 1989, and, without regard to when the military 8,391
service commenced, for each year of service purchased under 8,392
division (A) or (B) of this section by a member who first 8,393
established membership in the retirement system on or after July 8,394
1, 1989, the member shall pay to the retirement system for credit 8,395
to the member's individual account an amount specified by the 8,397
state teachers retirement board that shall be not less than fifty 8,398
per cent of the additional liability resulting from the purchase 8,399
of that year of service as determined by an actuary employed by 8,400
the board. 8,401
(3) A member may choose to purchase only part of the 8,403
credit the member is eligible to purchase under this section in 8,405
any one payment, subject to board rules. 8,406
(E) A member of the state teachers retirement system is 8,408
ineligible to purchase service credit under this section for any 8,409
year of military service that was: 8,410
(1) Used in the calculation of any retirement benefit 8,413
currently being paid to such member or payable in the future 8,414
under any other retirement program, except for retired pay for 8,415
non-regular service under Chapter 1223 of Section 1662 of Title 8,417
XVI of the "National Defense Authorization Act for Fiscal Year 8,418
1995," 108 Stat. 2998 (1994), 10 U.S.C.A. 12731 to 12739, or 8,419
178
social security; 8,420
(2) Used to obtain service credit pursuant to section 8,422
3307.02 3307.75 or 3307.022 3307.752 of the Revised Code. 8,424
At the time the credit is purchased, the member shall 8,427
certify on a form furnished by the retirement board that the 8,428
member does and will conform to this requirement. 8,430
(F) Credit purchased under this section may be combined 8,432
pursuant to section 3307.41 3307.57 of the Revised Code with 8,433
credit for military service purchased under sections 145.301 and 8,435
3309.021 of the Revised Code, except that not more than a total 8,436
of five years of credit purchased under division (A) of this 8,437
section, division (A) of section 145.301, and division (A) of 8,438
section 3309.021 and not more than a total of five years of 8,439
credit purchased under division (B) of this section, division (B) 8,440
of section 145.301, and division (B) of section 3309.021 of the 8,441
Revised Code shall be used in determining retirement eligibility 8,442
or calculating benefits under section 3307.41 3307.57 of the 8,443
Revised Code.
Sec. 3307.022 3307.752. (A) As used in this section: 8,453
(1) "Service in the uniformed services" means the 8,455
performance of duty on a voluntary or involuntary basis in a 8,456
uniformed service under competent authority and includes active 8,457
duty, active duty for training, initial active duty for training, 8,459
inactive duty training, full-time national guard duty, and a 8,460
period for which a person is absent from a position of employment 8,461
for the purpose of an examination to determine the fitness of the 8,462
person to perform any such duty.
(2) "Uniformed services" means the army, navy, air force, 8,464
marine corps, coast guard, or any reserve components of such 8,465
services; national guard; the commissioned corps of the United 8,467
States public health service; service as a red cross nurse with 8,469
the army, navy, air force, or hospital service of the United 8,470
States, army nurse corps, navy nurse corps, or serving full-time 8,472
with the American red cross in a combat zone; and any other 8,474
179
category of persons designated by the president in time of war or 8,475
emergency.
(B) On THE re-employment of a member PARTICIPATING IN THE 8,478
PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE 8,479
as a teacher by the same public employer that employed the member 8,480
prior to the member's service in the uniformed services, the 8,481
member may apply to the state teachers retirement system on a 8,482
form provided by the system to purchase service credit for 8,483
service in the uniformed services that shall be considered the 8,484
equivalent of Ohio service credit. On receipt of the 8,486
application, the retirement system shall request from the 8,487
employer that employed the member as a teacher prior to the 8,488
military service a certification that the member was employed by 8,489
the employer prior to, and returned to employment with the 8,490
employer within three months of honorable discharge or release 8,491
from, service in the uniformed services. If the employer can so 8,492
certify, it shall do so and shall pay to the retirement system 8,493
the employer's contribution required by this section. The 8,494
service credit shall be granted the member if all of the 8,495
following requirements are met:
(1) The member was a member of and maintained membership 8,497
in the state teachers retirement system throughout service in the 8,499
uniformed services;
(2) The member was out of active service as a teacher by 8,501
reason of service in the uniformed services; 8,502
(3) The member was honorably discharged or released from 8,504
service in the uniformed services; 8,505
(4) The member pays contributions to the retirement system 8,508
in accordance with this section.
(C) Credit may be purchased pursuant to this section at 8,511
any time prior to receipt of a benefit. The member may choose to 8,512
purchase only part of the credit in any one payment, subject to 8,513
board rules. The retirement system shall grant service credit 8,514
under this section, not to exceed five years, for each period of 8,515
180
service in the uniformed services for which contributions have 8,516
been received. 8,517
(D) For service purchased under this section, the member 8,520
and the member's employer, subject to board rules, shall pay to 8,521
the retirement system for credit to the member's accumulated 8,522
account an amount equal to the contributions that would have been 8,523
paid pursuant to sections 3307.51 3307.26 and 3307.53 3307.28 of 8,525
the Revised Code if the member had not been out of active service 8,528
as a teacher by reason of service in the uniformed services. 8,529
If a member pays all or any portion of the contributions 8,531
required by section 3307.51 3307.26 of the Revised Code later 8,534
than the lesser of five years or a period that is three times the 8,535
member's period of service in the uniformed services beginning 8,536
from the later of the member's date of re-employment as a teacher 8,537
or the effective date of this section OCTOBER 29, 1996, an amount 8,538
equal to compound interest at a rate established by the board 8,540
from the later of the member's date of re-employment as a teacher 8,541
or the effective date of this section OCTOBER 29, 1996, to the 8,542
date of payment shall be added to the remaining amount to be paid 8,544
by the member to purchase service credit under this section. 8,545
(E) This section does not cancel any military service 8,548
credit or service in the uniformed services earned or granted 8,549
under this chapter prior to the effective date of this section 8,550
OCTOBER 29, 1996. 8,551
(F) If a member purchased service credit under section 8,554
3307.021 3307.751 of the Revised Code prior to the effective date 8,558
of this section OCTOBER 29, 1996, is not receiving a benefit, and 8,559
would have been eligible to obtain service credit pursuant to 8,560
this section had it been in effect at the time of purchase, the 8,561
retirement system shall refund the amounts paid by the member for 8,562
the purchase if both of the following requirements are met: 8,563
(1) The member makes a written request for a refund on a 8,565
form provided by the retirement system; 8,566
(2) The member pays to the retirement system the 8,568
181
contributions required by this section. 8,569
(G) If the member meets the requirements of division (F) 8,573
of this section, the employer shall pay to the retirement system 8,574
the employer's contributions required by this section. 8,575
Sec. 3307.411 3307.76. (A) A member of the state teachers 8,584
retirement system PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 8,585
3307.50 TO 3307.79 OF THE REVISED CODE shall, in computing years 8,586
of total service, be given full credit for time served in the 8,587
public employees retirement system under Chapter 145. of the 8,588
Revised Code or in the school employees retirement system under 8,589
Chapter 3309. of the Revised Code, provided that the member pays 8,590
to the state teachers retirement system the amount specified in 8,591
division (B) of this section. 8,592
(B) For each year of service described in division (A) of 8,594
this section , a member shall pay an amount specified by the 8,595
state teachers retirement board, which shall be not less than 8,596
fifty per cent of the additional liability resulting from the 8,597
purchase of that year of service as determined by an actuary 8,598
employed by the board. 8,599
(C) A member may choose to purchase only part of the 8,601
credit the member is eligible to purchase under this section in 8,603
any one payment, subject to board rules. 8,604
A member is ineligible to purchase credit under this 8,606
section if credit for the service may be obtained from the public 8,608
employees retirement system or school employees retirement system 8,609
or if the credit is for service that is used in the calculation 8,610
of any retirement benefit currently being paid or payable in the 8,611
future to the member.
Sec. 3307.412 3307.761. (A) A member of the state 8,621
teachers retirement system PARTICIPATING IN THE PLAN DESCRIBED IN 8,622
SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE who has
contributions on deposit with the Ohio police and fire pension 8,624
fund or the state highway patrol retirement system shall, in 8,625
computing years of total service, be given full credit for 8,626
182
service credit earned under Chapter 742. or 5505. of the Revised 8,629
Code or purchased for service in the armed forces of the United 8,632
States if a transfer to the state teachers retirement system is 8,634
made under this division. At the request of the member, the Ohio 8,635
police and fire pension fund or state highway patrol retirement 8,636
system shall transfer to the state teachers retirement system, 8,637
for each year of service, the sum of the following: 8,639
(1) An amount equal to the member's payments for service 8,642
in the armed forces of the United States and accumulated 8,644
contributions to the transferring fund or system; 8,645
(2) An amount equal to the lesser of the employer's 8,647
contributions to the Ohio police and fire pension fund or state 8,649
highway patrol retirement system or the amount that would have 8,650
been contributed by the employer for the service had the member 8,651
been a member of the state teachers retirement system; 8,652
(3) Interest, determined as provided in division (E) of 8,655
this section, on the amounts specified in divisions (A)(1) and 8,657
(2) of this section from the last day of the year for which the 8,659
service credit was earned or in which military service credit was 8,660
purchased or obtained to the date the transfer is made. 8,662
(B) A member PARTICIPATING IN THE PLAN DESCRIBED IN 8,664
SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE who has at least 8,666
eighteen months of contributing service with the state teachers 8,667
retirement system, is a former member of the Ohio police and fire 8,669
pension fund or state highway patrol retirement system, and has 8,671
received a refund of contributions to that fund or system shall, 8,672
in computing years of total service, be given full credit for 8,673
service credit earned under Chapter 742. or 5505. of the Revised 8,675
Code or purchased for service in the armed forces of the United 8,678
States if, for each year of service, the state teachers 8,680
retirement system receives the sum of the following: 8,681
(1) An amount, which shall be paid by the member, equal to 8,684
the amount refunded by the Ohio police and fire pension fund or 8,685
the state highway patrol retirement system to the member for that 8,686
183
year for accumulated contributions and payments for purchase of 8,687
credit for service in the armed forces of the United States, with 8,689
interest on that amount from the date of the refund to the date 8,691
of the payment; 8,692
(2) Interest, which shall be transferred by the Ohio 8,695
police and fire pension fund or state highway patrol retirement 8,698
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 8,700
the service credit was earned or in which military service credit 8,701
was purchased or obtained to the date the refund was made; 8,703
(3) An amount, which shall be transferred by the Ohio 8,705
police and fire pension fund or state highway patrol retirement 8,707
system, equal to the lesser of the amount contributed by the 8,708
employer to the Ohio police and fire pension fund or state 8,709
highway patrol retirement system for that year or the amount that 8,710
would have been contributed by the employer for the year had the 8,711
member been a member of the state teachers retirement system, 8,712
with interest on that amount from the last day of the year for 8,715
which the service credit was earned or in which military service 8,716
credit was purchased or obtained to the date of the transfer. 8,718
On receipt of payment from the member, the state teaches 8,721
TEACHERS retirement system shall notify the Ohio police and fire 8,723
pension fund or the state highway patrol retirement system, 8,724
which, on receipt of the notice, shall make the transfer required 8,725
by this division. Interest shall be determined as provided in 8,726
division (E) of this section. 8,727
A member may choose to purchase only part of the credit the 8,730
member is eligible to purchase under this division in any one 8,731
payment, subject to rules of the state teachers retirement board. 8,732
(C) A member is ineligible to obtain credit under this 8,735
section for service that is used in the calculation of any 8,736
retirement benefit currently being paid or payable in the future. 8,737
(D) If a member of the state teachers retirement system 8,740
who is not a current contributor elects to obtain credit under 8,741
184
section 742.379 or 5505.202 of the Revised Code for service for 8,742
which the member contributed to the state teachers retirement 8,743
system or purchased credit for service in the armed forces of the 8,744
United States, the state teachers retirement system shall 8,747
transfer to the Ohio police and fire pension fund or state 8,748
highway patrol retirement system, as applicable, the amount 8,749
specified in division (D) of section 742.379 or division (B)(2) 8,751
of section 5505.202 of the Revised Code. 8,752
(E) Interest charged under this section shall be 8,755
calculated separately for each year of service credit at the 8,756
lesser of the actuarial assumption rate for that year of the 8,757
state teachers retirement system or of the fund or retirement 8,758
system in which the credit was earned. The interest shall be 8,759
compounded annually. 8,760
(F) The state teachers retirement board shall credit to a 8,763
member's account in the teachers' savings fund the amounts 8,764
described in divisions (A)(1) and (B)(1) of this section, except 8,766
that the interest paid by the member under division (B)(1) of 8,767
this section shall be credited to the employers' trust fund. The 8,769
board shall credit to the employers' trust fund the amounts
described in divisions (A)(2), (3), and (B)(2) of this section. 8,772
Sec. 3307.512 3307.77. (A) As used in this section, 8,781
"employer" means the employer employing a member of the state 8,783
teachers retirement system at the time the member commences an 8,784
absence, or is granted a leave described in this section. 8,785
(B) Any member of the state teachers retirement system 8,787
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 8,788
3307.79 OF THE REVISED CODE who is, or has been, prevented from 8,789
making contributions under section 3307.51 3307.26 of the Revised 8,790
Code because of an absence due to his THE MEMBER'S own illness or 8,792
injury, or who is, or has been, granted a leave for educational, 8,794
professional, or other purposes pursuant to section 3319.13, 8,795
3319.131, or 3345.28 of the Revised Code or for any other reason 8,796
approved by the state teachers retirement board, may purchase 8,797
185
service credit, not to exceed two years for each such period of 8,798
absence or leave, either by having deductions made in accordance 8,799
with division (C) of this section or by making the payment 8,800
required by division (D) or (E) of this section.
(C) If the absence or leave begins and ends in the same 8,802
year, the member may purchase credit for the absence or leave by 8,803
having the employer deduct and transmit to the system from 8,804
payrolls in that year employee contributions on the amount 8,805
certified by the employer as the compensation the member would 8,806
have received had he THE MEMBER remained employed in the position 8,808
he held when the absence or leave commenced. The deductions may 8,809
be made even though the minimum compensation provided by law for 8,810
the member is reduced thereby, unless the amount to be deducted 8,811
exceeds the compensation to be paid the member from the time 8,812
deductions begin until the end of the year, in which case credit 8,813
may not be purchased under this division. The employer shall pay 8,814
the system the employer contributions on the compensation amount 8,815
certified under this division. Employee and employer 8,816
contributions shall be made at the rates in effect at the time 8,817
the absence or leave occurred. If the employee or employer rates 8,818
in effect change during the absence or leave, the contributions 8,819
for each month of the absence or leave shall be made at the rate 8,820
in effect for that month. 8,821
(D) During or following the absence or leave, but no later 8,823
than two years following the last day of the year in which the 8,824
absence or leave terminates, a member may purchase credit for the 8,825
absence or leave by paying to the employer, and the employer 8,826
transmitting to the system, employee contributions on the amount 8,827
certified by the employer as the compensation the member would 8,828
have received had he THE MEMBER remained employed in the position 8,830
he held when the absence or leave commenced. The employer shall 8,831
pay the system the employer contributions on the compensation 8,832
amount certified under this division. Employee and employer 8,833
contributions shall be made at the rates in effect at the time 8,834
186
the absence or leave occurred. If the employee or employer rates 8,835
in effect change during the absence or leave, the contributions 8,836
for each month of an absence or leave shall be made at the rate 8,837
in effect for that month. 8,838
(E) After two years following the last day of the year in 8,840
which an absence or leave terminated, a member may purchase 8,841
credit for the absence or leave by paying the employer, and the 8,842
employer transmitting to the system, the sum of the following for 8,843
each year of credit purchased: 8,844
(1) An amount determined by multiplying the employee rate 8,846
of contribution in effect at the time the absence or leave 8,847
commenced by the member's annual compensation for his THE 8,848
MEMBER'S last full year of service prior to the commencement of 8,850
the absence or leave, or, if he THE MEMBER has not had a full 8,851
year of service, the compensation the member would have received 8,853
for the year the absence or leave commenced had he THE MEMBER 8,854
continued in service for a full year; 8,856
(2) Interest compounded annually, at a rate determined by 8,858
the board, on the amount determined under division (E)(1) of this 8,859
section for the period commencing two years following the last 8,860
day of the year in which the absence or leave terminated and 8,861
ending on the date of payment; 8,862
(3) Interest compounded annually, at a rate determined by 8,864
the board, on an amount equal to the employer's contribution 8,865
required by this division for the period commencing two years 8,866
following the last day of the year in which the absence or leave 8,867
terminated and ending on the date of payment. 8,868
The employer shall pay to the system for each year of 8,870
credit purchased under this division an amount determined by 8,871
multiplying the employer contribution rate in effect at the time 8,872
the absence or leave commenced by the member's annual 8,873
compensation for his THE MEMBER'S last full year of service prior 8,875
to the commencement of the absence or leave, or, if he THE MEMBER 8,876
has not had a full year of service, the compensation the member 8,878
187
would have received for the year the absence or leave commenced 8,879
had he THE MEMBER continued in service for a full year. 8,881
(F) A member who chooses to purchase service credit under 8,883
division (D) or (E) of this section may choose to purchase only 8,884
part of the credit for which he THE MEMBER is eligible in any one 8,886
payment, but payments made more than two years following the last 8,887
day of the year in which the absence or leave terminated shall be 8,888
made in accordance with division (E) of this section. 8,889
(G) The state teachers retirement board may adopt rules to 8,891
implement this section. 8,892
Sec. 3307.515 3307.771. As used in this section, "regular 8,901
employment" means a consistent pattern of employment for twelve 8,903
or more consecutive weeks by the same employer during the year. 8,904
A member of the state teachers retirement system 8,906
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 8,907
3307.79 OF THE REVISED CODE who prior to July 1, 1982, was 8,908
granted a leave of absence for pregnancy or resigned due to 8,909
pregnancy may purchase service credit for a period for which she 8,910
did not make contributions under section 3307.51 3307.26 of the 8,911
Revised Code. Service credit purchased under this section shall 8,913
not exceed the lesser of two years or the period from the day the 8,914
leave commenced or the effective date of resignation to the date 8,915
of the member's return to regular employment as a contributor to
the retirement system. A member may purchase credit for more 8,916
than one period of absence due to pregnancy, but the total 8,917
service credit purchased under this section, FORMER section 8,918
3307.513, and FORMER section 3307.514 of the Revised Code shall 8,919
not exceed two years. The member shall submit evidence 8,920
satisfactory to the retirement board documenting that the leave 8,921
or resignation was due to pregnancy.
For each year of service credit purchased under this 8,923
section, the member shall pay to the system for credit to her 8,924
accumulated account an amount determined by multiplying the 8,925
employee rate of contribution in effect at the time the leave or 8,926
188
absence commenced by her annual compensation for full-time
employment during the first year of service in Ohio following 8,927
termination of the absence or leave and adding to that amount 8,928
interest compounded annually, at a rate established by the board, 8,929
from the date the absence or leave terminated to the date of 8,930
payment.
A member may purchase all or part of the credit for which 8,932
she is eligible in one or more payments. A member who purchases 8,933
service credit for an absence or leave under this section may not 8,934
purchase credit for that absence or leave under section 3307.512 8,935
3307.77 of the Revised Code. A member who has purchased service 8,936
credit for an absence or leave under FORMER section 3307.512, 8,937
3307.513, or 3307.514 OR SECTION 3307.77 of the Revised Code may 8,938
not purchase credit under this section for the same period of 8,939
absence or leave.
The state teachers retirement board may adopt rules to 8,941
implement this section. 8,942
Sec. 3307.311 3307.78. (A) As used in this section, 8,951
"school board member" means a member of a city, local, exempted 8,953
village, or joint vocational school district board of education 8,954
and "governing board member" means a member of an educational 8,955
service center governing board. 8,956
(B) A member of the state teachers retirement system 8,958
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 8,959
3307.79 OF THE REVISED CODE who does both of the following may 8,960
purchase credit for service as a school board or governing board 8,961
member, other than service subject to the tax on wages imposed by 8,963
the "Federal Insurance Contributions Act," 68A Stat. 415 (1954), 8,964
26 U.S.C.A. 3101, as amended, if the member is eligible to retire 8,966
under this chapter or will become eligible to retire as a result 8,967
of purchasing the credit:
(1) Agrees to retire within ninety days after receiving 8,969
notice of the additional liability under division (C) of this 8,970
section; 8,971
189
(2) Provides evidence satisfactory to the STATE TEACHERS 8,973
retirement board of service as a school board or governing board 8,975
member during the years for which the member wishes to purchase 8,977
credit.
Credit may be purchased for service as a school board or 8,980
governing board member between September 1, 1920, and the first
day of January of the year in which the credit is purchased. A 8,982
member is eligible to purchase one-quarter of a year's credit for 8,983
each year of service as a school board or governing board member. 8,984
Credit purchased under this section shall be included in 8,986
the member's total service credit for the purposes of section 8,987
3307.36 3307.52 of the Revised Code. 8,988
(C) On receipt of a request from a member eligible to 8,990
purchase credit under this section, the system shall obtain from 8,991
its actuary certification of the additional liability to the 8,992
system for each quarter year of credit the member is eligible to 8,993
purchase and shall notify the member of such additional 8,994
liability. Within ninety days after receiving notice of the 8,995
additional liability, the member may purchase in quarter-year 8,996
increments any portion of the credit the member is eligible to 8,997
purchase. For each quarter year of credit purchased, the member 8,998
shall pay to the system an amount equal to the additional 8,999
liability resulting from the purchase. Payment shall be made in 9,000
full at the time of purchase. 9,001
(D) The state teachers retirement board shall adopt rules 9,003
in accordance with section 111.15 of the Revised Code concerning 9,004
the purchase of credit under this section. In addition to any 9,005
other matters considered relevant by the board, the rules shall 9,006
specify the procedure to be followed to inform the system that a 9,008
member wishes to purchase credit for service as a school board or 9,010
governing board member.
(E) If the member does not retire within ninety days after 9,012
purchasing credit under this section, the system shall withdraw 9,013
the credit and refund the amount paid by the member. 9,014
190
Sec. 3307.383 3307.79. (A) A member whose death occurred 9,024
prior to July 1, 1973, who at the time of death had more than 9,025
thirty-four but less than thirty-five years of service credit 9,026
shall be presumed to have completed thirty-five years of such 9,027
credit. Any member whose death occurred on or after July 1, 9,028
1973, but prior to August 20, 1976, and who at the time of death 9,029
had more than thirty-one but less than thirty-two years of 9,030
service credit shall be presumed to have completed thirty-two 9,031
years of such credit. Any member PARTICIPATING IN THE PLAN 9,032
DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE 9,033
whose death occurs on or after August 20, 1976, and who at the 9,034
time of death has more than twenty-nine but less than thirty 9,035
years of service credit shall be presumed to have completed 9,036
thirty years of such credit.
Upon (B) ON the death of a member WHO IS PARTICIPATING IN 9,039
THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED
CODE prior to service retirement, the surviving spouse or 9,041
dependents of the deceased member shall have the right to 9,042
purchase any service credit the member, had the member not died, 9,044
would have been eligible to purchase pursuant to sections
3307.021 3307.71, 3307.022 3307.72, 3307.22 3307.73, 3307.28 9,046
3307.74, 3307.32 3307.741, 3307.33 3307.751, 3307.411 3307.752, 9,048
3307.412 3307.76, 3307.512 3307.761, 3307.77, and 3307.73 9,051
3307.771 of the Revised Code upon the same terms and conditions 9,052
which the deceased member could have purchased such service 9,053
credit had the deceased member not died. Any service credit 9,054
purchased under this section shall be applied under the 9,056
provisions of this chapter in the same manner as it would have 9,057
been applied had it been purchased by the deceased member during 9,058
the deceased member's lifetime. 9,059
Sec. 3307.80. THE STATE TEACHERS RETIREMENT BOARD SHALL 9,061
ADOPT RULES TO IMPLEMENT THE PLANS ESTABLISHED UNDER SECTION 9,062
3307.81 OF THE REVISED CODE. 9,063
Sec. 3307.81. THE STATE TEACHERS RETIREMENT BOARD SHALL 9,065
191
ESTABLISH ONE OR MORE PLANS CONSISTING OF BENEFIT OPTIONS THAT 9,066
PROVIDE FOR AN INDIVIDUAL ACCOUNT FOR EACH PARTICIPATING MEMBER 9,067
AND UNDER WHICH BENEFITS ARE BASED SOLELY ON THE AMOUNTS THAT 9,069
HAVE ACCUMULATED IN THE ACCOUNT. THE PLANS MAY INCLUDE OPTIONS 9,070
UNDER WHICH A MEMBER PARTICIPATING IN A PLAN MAY RECEIVE 9,071
DEFINITELY DETERMINABLE BENEFITS.
EACH PLAN ESTABLISHED UNDER THIS SECTION SHALL MEET THE 9,074
REQUIREMENTS OF SECTIONS 3307.81 TO 3307.89 OF THE REVISED CODE. 9,075
IT MAY INCLUDE LIFE INSURANCE, ANNUITIES, VARIABLE ANNUITIES, 9,076
REGULATED INVESTMENT TRUSTS, POOLED INVESTMENT FUNDS, OR OTHER 9,078
FORMS OF INVESTMENT.
THE BOARD MAY ADMINISTER THE PLANS, ENTER INTO CONTRACTS 9,080
WITH OTHER ENTITIES TO ADMINISTER THE PLANS, OR BOTH. THE BOARD 9,081
MAY CONTRACT WITH ANOTHER ENTITY TO ADMINISTER THE PLANS IF THE 9,082
ENTITY AGREES TO MEET ALL REQUIREMENTS OF THIS CHAPTER APPLICABLE 9,083
TO THE PLANS. 9,084
Sec. 3307.811. EACH PLAN ESTABLISHED UNDER SECTION 3307.81 9,087
OF THE REVISED CODE SHALL MEET THE REQUIREMENTS NECESSARY TO 9,088
QUALIFY AS A RETIREMENT SYSTEM MAINTAINED BY A STATE OR LOCAL 9,090
GOVERNMENT ENTITY UNDER DIVISION (b)(7)(F) OF SECTION 3121 OF THE 9,091
"INTERNAL REVENUE CODE OF 1986," 100 STAT. 2085, 26 U.S.C.A. 9,095
3121(b)(7)(F), AS AMENDED. EACH PARTICIPANT IN A PLAN SHALL 9,097
QUALIFY AS A MEMBER OF THAT SYSTEM. 9,098
Sec. 3307.812. IN ESTABLISHING A PLAN UNDER SECTION 9,100
3307.81 OF THE REVISED CODE, THE STATE TEACHERS RETIREMENT BOARD 9,102
MAY DO ALL THINGS NECESSARY TO AVOID THE SYSTEM BEING REQUIRED TO 9,103
PAY FEDERAL OR STATE INCOME TAXES ON CONTRIBUTIONS TO THE PLAN OR 9,105
AMOUNTS EARNED UNDER THE PLAN AND, TO THE EXTENT PERMITTED UNDER 9,107
FEDERAL OR STATE LAW, TO ALLOW MEMBERS PARTICIPATING IN THE PLAN 9,108
TO MAKE TAX DEFERRED CONTRIBUTIONS FOR PERIODS OF INTERRUPTED OR
PRIOR SERVICE. 9,109
Sec. 3307.83. THE RIGHT OF EACH MEMBER PARTICIPATING IN A 9,111
PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE REVISED CODE TO A 9,112
RETIREMENT, DISABILITY, OR SURVIVOR BENEFIT, TO HEALTH CARE 9,114
192
INSURANCE COVERAGE, OR TO A WITHDRAWAL OF CONTRIBUTIONS SHALL BE 9,116
GOVERNED BY THE PLAN SELECTED BY THE MEMBER UNDER SECTION 3307.25
OR 3307.251 OF THE REVISED CODE. 9,119
Sec. 3307.84. FOR EACH MEMBER PARTICIPATING IN A PLAN 9,121
ESTABLISHED UNDER SECTION 3307.81 OF THE REVISED CODE, THE STATE 9,122
TEACHERS RETIREMENT SYSTEM SHALL TRANSFER TO THE EMPLOYERS' TRUST 9,123
FUND A PORTION OF THE EMPLOYER CONTRIBUTION REQUIRED UNDER 9,124
SECTION 3307.28 OF THE REVISED CODE THAT IS EQUAL TO THE 9,125
PERCENTAGE OF COMPENSATION OF MEMBERS DESCRIBED IN THIS SECTION 9,126
FOR WHOM THE CONTRIBUTIONS ARE BEING MADE THAT IS DETERMINED BY 9,128
THE BOARD'S ACTUARY TO BE NECESSARY TO MITIGATE ANY NEGATIVE 9,129
FINANCIAL IMPACT ON THE STATE TEACHERS RETIREMENT SYSTEM OF THE 9,130
PARTICIPATION OF MEMBERS IN A PLAN ESTABLISHED UNDER SECTION 9,131
3307.81 OF THE REVISED CODE. THE REMAINDER SHALL BE CREDITED AS 9,133
PROVIDED IN SECTION 3307.28 OF THE REVISED CODE. 9,134
THE STATE TEACHERS RETIREMENT BOARD SHALL HAVE PREPARED 9,138
ANNUALLY AN ACTUARIAL STUDY TO DETERMINE WHETHER THE PERCENTAGE 9,139
TRANSFERRED UNDER THIS SECTION SHOULD BE CHANGED TO REFLECT A 9,140
CHANGE IN THE LEVEL OF THE NEGATIVE FINANCIAL IMPACT RESULTING 9,141
FROM PARTICIPATION OF MEMBERS IN A PLAN ESTABLISHED UNDER SECTION
3307.81 OF THE REVISED CODE. THE PERCENTAGE TRANSFERRED UNDER 9,143
THIS SECTION SHALL BE INCREASED OR DECREASED TO REFLECT THE 9,144
AMOUNT NEEDED TO MITIGATE THE NEGATIVE FINANCIAL IMPACT, IF ANY, 9,145
ON THE SYSTEM, AS DETERMINED BY THE ACTUARIAL STUDY. AN INCREASE 9,146
OR DECREASE SHALL TAKE EFFECT ON THE FIRST DAY OF THE MONTH 9,147
FOLLOWING THE DATE THE CONCLUSIONS OF THE ACTUARIAL STUDY ARE 9,148
REPORTED TO THE BOARD.
THE SYSTEM SHALL MAKE THE TRANSFER REQUIRED UNDER THIS 9,151
SECTION UNTIL THE UNFUNDED ACTUARIAL ACCRUED LIABILITY FOR ALL 9,152
BENEFITS, EXCEPT HEALTH CARE BENEFITS PROVIDED UNDER SECTION 9,153
3307.39 OR 3307.61 OF THE REVISED CODE AND BENEFIT INCREASES 9,154
PROVIDED TO MEMBERS AND FORMER MEMBERS PARTICIPATING IN THE PLAN
DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE REVISED CODE 9,155
AFTER THE EFFECTIVE DATE OF THIS SECTION, IS FULLY AMORTIZED, AS 9,157
193
DETERMINED BY THE ANNUAL ACTUARIAL VALUATION PREPARED UNDER
SECTION 3307.51 OF THE REVISED CODE. 9,159
Sec. 3307.86. THE STATE TEACHERS RETIREMENT SYSTEM MAY 9,161
REQUIRE MEMBERS PARTICIPATING IN A PLAN ESTABLISHED UNDER SECTION 9,162
3307.81 OF THE REVISED CODE AND THEIR EMPLOYERS TO FURNISH THE 9,163
CONTRIBUTIONS AND INFORMATION REQUIRED UNDER THIS CHAPTER AT MORE 9,165
FREQUENT INTERVALS THAN THOSE REQUIRED FOR MEMBERS PARTICIPATING 9,166
IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 3307.79 OF THE 9,167
REVISED CODE. THE SYSTEM HAS NO DUTY TO ACCEPT CONTRIBUTIONS BY 9,168
OR ON BEHALF OF A MEMBER IF A CONTRIBUTION OR INFORMATION IS NOT 9,169
FURNISHED AT SUCH INTERVALS.
Sec. 3307.87. (A)(1) IF A MEMBER PARTICIPATING IN A PLAN 9,171
ESTABLISHED UNDER SECTION 3307.81 OF THE REVISED CODE IS MARRIED 9,172
AT THE TIME ANY BENEFITS UNDER THE PLAN COMMENCE, BENEFITS SHALL 9,174
BE PAID IN ACCORDANCE WITH DIVISION (A)(2) OF THIS SECTION,
UNLESS THE SPOUSE HAS CONSENTED UNDER DIVISION (C) OF THIS 9,175
SECTION TO A DIFFERENT FORM OF PAYMENT. 9,176
(2) THE BENEFITS DESCRIBED IN DIVISION (A)(1) OF THIS 9,178
SECTION SHALL BE PAID IN THE FORM OF AN ANNUITY, WHICH SHALL 9,179
CONSIST OF THE ACTUARIAL EQUIVALENT OF THE MEMBER'S BENEFITS, IN 9,180
AN AMOUNT THAT IS PAYABLE FOR THE LIFE OF THE MEMBER AND ONE-HALF 9,181
OF THE AMOUNT CONTINUING AFTER THE MEMBER'S DEATH TO THE SPOUSE 9,183
FOR THE LIFE OF THE SPOUSE.
(B) IF A MEMBER PARTICIPATING IN A PLAN ESTABLISHED UNDER 9,185
SECTION 3307.81 OF THE REVISED CODE IS MARRIED AT THE TIME OF THE 9,186
MEMBER'S DEATH, ANY BENEFITS THAT ARE PAYABLE TO THE MEMBER SHALL 9,187
BE PAID TO THE MEMBER'S SPOUSE, UNLESS THE SPOUSE HAS CONSENTED 9,188
UNDER DIVISION (C) OF THIS SECTION TO THE DESIGNATION OF A 9,189
DIFFERENT BENEFICIARY. 9,190
(C) A PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE 9,192
REVISED CODE SHALL INCLUDE REQUIREMENTS FOR CONSENT UNDER THIS 9,194
SECTION THAT ARE THE SAME AS THE REQUIREMENTS SPECIFIED IN 9,195
DIVISION (a)(2) OF SECTION 417 OF THE INTERNAL REVENUE CODE, 26 9,196
U.S.C.A. 417(a)(2), AS AMENDED. EACH PLAN MAY WAIVE CONSENT IF 9,198
194
THE SPOUSE CANNOT BE LOCATED OR FOR ANY OTHER REASON SPECIFIED IN 9,199
THE REGULATIONS ADOPTED UNDER THAT SECTION.
CONSENT OR WAIVER IS EFFECTIVE ONLY WITH REGARD TO THE 9,201
SPOUSE WHO IS THE SUBJECT OF THE CONSENT OR WAIVER. 9,202
Sec. 3307.88. (A) THIS SECTION APPLIES TO A MEMBER OF THE 9,204
STATE TEACHERS RETIREMENT SYSTEM WHO MADE AN ELECTION UNDER 9,205
SECTION 3307.25 OF THE REVISED CODE TO PARTICIPATE IN A PLAN 9,206
ESTABLISHED UNDER SECTION 3307.81 OF THE REVISED CODE. 9,207
(B) ON THE FIRST DAY OF JULY FOLLOWING THE FOURTH 9,209
ANNIVERSARY OF THE DATE MEMBERSHIP BEGAN, A MEMBER SHALL BEGIN 9,210
PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 9,213
3307.79 OF THE REVISED CODE UNLESS, PRIOR TO THAT DAY, THE MEMBER 9,214
ELECTS UNDER SECTION 3307.881 OF THE REVISED CODE TO REMAIN IN A 9,216
PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE REVISED CODE. 9,217
(C) WHEN, UNDER DIVISION (B) OF THIS SECTION, A MEMBER 9,219
BEGINS PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3307.50 TO 9,221
3307.79 OF THE REVISED CODE, THE SYSTEM SHALL DO ALL OF THE 9,222
FOLLOWING:
(1) TRANSFER FROM THE MEMBER'S ACCOUNT IN THE DEFINED 9,224
CONTRIBUTION FUND TO AN ACCOUNT IN THE TEACHERS' SAVINGS FUND THE 9,225
SUM OF THE FOLLOWING: 9,226
(a) AN AMOUNT EQUAL TO THE CONTRIBUTIONS MADE PURSUANT TO 9,228
SECTION 3307.26 OF THE REVISED CODE; 9,229
(b) ANY SUPPLEMENTAL CONTRIBUTIONS MADE BY THE MEMBER; 9,231
(c) ANY EARNINGS FROM SUPPLEMENTAL CONTRIBUTIONS. 9,233
(2) TRANSFER TO THE EMPLOYERS' TRUST FUND THE SUM OF THE 9,235
FOLLOWING:
(a) AN AMOUNT EQUAL TO THE CONTRIBUTIONS MADE PURSUANT TO 9,237
SECTION 3307.28 OF THE REVISED CODE; 9,239
(b) ANY AMOUNT REMAINING IN THE MEMBER'S ACCOUNT IN THE 9,242
DEFINED CONTRIBUTION FUND AFTER THE TRANSFERS DESCRIBED IN 9,243
DIVISIONS (C)(1) AND (2)(a) OF THIS SECTION ARE MADE. 9,244
(3) GRANT SERVICE CREDIT IN ACCORDANCE WITH RULES ADOPTED 9,246
UNDER SECTION 3307.53 OF THE REVISED CODE. 9,247
195
(D) IF THE AMOUNT IN THE MEMBER'S ACCOUNT IN THE DEFINED 9,249
CONTRIBUTION FUND IS LESS THAN THE AMOUNT THE MEMBER WOULD HAVE 9,251
HAD IN AN ACCOUNT IN THE TEACHERS' SAVINGS FUND HAD THE MEMBER 9,252
ELECTED TO PARTICIPATE IN THE PLAN DESCRIBED IN SECTIONS 3307.50
TO 3307.79 OF THE REVISED CODE, THE SYSTEM SHALL TRANSFER FROM 9,254
THE GUARANTEE FUND ESTABLISHED UNDER SECTION 3307.14 OF THE 9,255
REVISED CODE TO THE TEACHERS' SAVINGS FUND THE AMOUNT NECESSARY 9,257
TO MAKE THE TRANSFER REQUIRED BY DIVISION (C)(1)(a) OF THIS 9,258
SECTION. 9,259
(E) EXCEPT FOR SERVICE CREDIT GRANTED UNDER DIVISION 9,262
(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 9,264
PURSUANT TO THIS SECTION SHALL HAVE THE SAME RIGHTS AND 9,266
PRIVILEGES UNDER THE PLAN AS A MEMBER WHO NEVER HAD MADE AN 9,268
ELECTION TO PARTICIPATE IN A PLAN ESTABLISHED UNDER SECTION 9,269
3307.81 OF THE REVISED CODE. 9,270
Sec. 3307.881. A MEMBER OF THE STATE TEACHERS RETIREMENT 9,272
SYSTEM PARTICIPATING IN A PLAN ESTABLISHED UNDER SECTION 3307.81 9,273
OF THE REVISED CODE WHO IS SUBJECT TO SECTION 3307.88 OF THE 9,276
REVISED CODE MAY ELECT TO CONTINUE PARTICIPATING IN THE PLAN. AN 9,277
ELECTION SHALL BE MADE IN WRITING ON A FORM PROVIDED BY THE STATE 9,278
TEACHERS RETIREMENT BOARD AND FILED WITH THE BOARD NOT LATER THAN
THE THIRTIETH DAY OF JUNE FOLLOWING THE FOURTH ANNIVERSARY OF THE 9,279
DATE MEMBERSHIP BEGAN. 9,280
Sec. 3307.882. NOT LATER THAN ONE HUNDRED EIGHTY DAYS 9,282
PRIOR TO THE THIRTIETH DAY OF JUNE FOLLOWING THE FOURTH 9,283
ANNIVERSARY OF THE DATE MEMBERSHIP BEGAN, THE STATE TEACHERS 9,284
RETIREMENT SYSTEM SHALL NOTIFY A MEMBER WHO IS SUBJECT TO SECTION 9,286
3307.88 OF THE REVISED CODE OF THE OPPORTUNITY TO ELECT TO 9,287
CONTINUE PARTICIPATION IN A PLAN ESTABLISHED UNDER SECTION 9,288
3307.81 OF THE REVISED CODE. THE NOTICE SHALL INCLUDE AN 9,289
EXPLANATION OF THE PROVISIONS OF SECTION 3307.881 OF THE REVISED 9,290
CODE.
Sec. 3307.89. THE STATE TEACHERS RETIREMENT BOARD MAY 9,292
196
OFFER TO MEMBERS PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 9,293
3307.50 TO 3307.79 OF THE REVISED CODE THE OPPORTUNITY TO ALSO 9,294
PARTICIPATE IN ONE OR MORE OF THE BENEFIT OPTIONS AVAILABLE UNDER 9,296
A PLAN ESTABLISHED UNDER SECTION 3307.81 OF THE REVISED CODE. A 9,298
MEMBER'S CONTRIBUTIONS TO AN OPTION SHALL BE CREDITED TO AN 9,299
INDIVIDUAL ACCOUNT ESTABLISHED FOR THE MEMBER IN THE DEFINED 9,300
CONTRIBUTION FUND. 9,301
Sec. 3307.68 3307.96. If a local district pension system 9,310
votes to merge with the state teachers retirement system as 9,312
provided in section 3307.26 3307.241 of the Revised Code, the 9,315
state teachers retirement board shall employ an actuary to value
the assets and liabilities which will be taken over by the state 9,316
teachers retirement system hereby created in the event of such 9,317
merger. The actuary so employed shall be an actuary also 9,319
approved by the employer in whose district the local district 9,321
pension system is operated, and the expense of the valuation 9,322
shall be paid by such THE employer. The actuary shall compute 9,323
the present value of the liabilities on account of teachers in 9,324
service in the local district pension system and on account of 9,325
pensioners in the rolls of such local district pension system. 9,326
He THE ACTUARY shall also compute the present value of the 9,328
prospective amount to be received by reason of the payment of the
normal contributions by the employer on behalf of the active 9,329
teachers of such local system in the event of the contemplated 9,330
merger. From the present value of the total liability for 9,331
pensions on account of teachers in service in the local district 9,332
pension system as previously determined, the actuary shall deduct 9,333
the present value of the normal contributions.
The amount remaining, together with any excess, of the 9,335
present value of all payments, necessary to continue the pensions 9,336
of the pensioners of the local district pension system, over and 9,337
above the amount of moneys and securities of such system, shall 9,338
be known as the "accrued liability." No teacher who is a member 9,339
of a local district pension system on May 9, 1919, shall receive
197
a lesser total retirement allowance upon retirement after merger 9,340
of the local system with the state teachers retirement system 9,341
than said teacher would have received upon retirement under the 9,342
local system.
Sec. 3307.69 3307.97. That part of the accrued liability, 9,351
due on account of pensions to pensioners already on the rolls of 9,353
the local district pension system, referred to in section 3307.68 9,354
3307.96 of the Revised Code, remaining unpaid on September 1, 9,356
1924, shall be paid by the employer at the rate of at least four
per cent per annum of such accrued liability with interest at 9,357
four per cent per annum on unpaid balances. Both the payment and 9,358
interest shall be payable semiannually on dates to be fixed by 9,359
the state teachers retirement board. Payments on that part of 9,360
the accrued liability due to teachers in active service in the 9,361
local district pension system shall be at the same rate per cent 9,362
of the salaries of such teachers as the deficiency contribution
rate fixed in FORMER section 3307.54 of the Revised Code, and 9,363
shall be made until the year in which the deficiency contribution 9,365
payable by other employers who had no local pension system may be 9,366
discontinued.
Sec. 3307.70 3307.98. The increasing contribution 9,375
determined as provided in sections 3307.68 3307.96 and 3307.69 9,377
3307.97 of the Revised Code by the actuary shall be paid by the 9,379
employer. In the event of merger, the moneys and securities to 9,380
the credit of the local district pension system, not exceeding an 9,381
aggregate amount equal to the present value of the payments to be 9,382
made on account of all pensions to the pensioners on the rolls of 9,383
the local district pension system, shall be transferred to the 9,384
employers' accumulation fund and the pensions then payable by the 9,385
local district pension system shall thereafter be paid from the 9,386
employers' accumulation fund until the reserves on these pensions 9,387
with the other pensions payable from the employers' accumulation 9,388
fund have been accumulated and shall be transferred to the 9,389
annuity and pension reserve fund, from which fund they shall 9,390
198
thereafter be payable. The pensions of the active members of the 9,391
local district pension system and of the new entrants shall 9,392
thereafter be payable as are the pensions of other members of the 9,393
state teachers retirement system. The amount of the excess of 9,394
the moneys and securities of the local district pension system 9,395
over and above the present value of the payments to be made on 9,396
account of all pensions to the pensioners of the rolls of the 9,397
local district pension system shall be transferred to the 9,398
teachers' savings fund and shall be credited pro rata to the 9,399
active teachers of such local district pensions system on the 9,400
basis of the amounts of their previous contributions to the local 9,401
district pension system. In case such method of distribution is 9,402
not found practicable by the state teachers retirement board, the 9,403
board may use such other method of apportionment as seems fair 9,404
and equitable to such board. The amount so credited in any case 9,405
shall be considered as a part of the teacher's accumulated 9,406
contributions, AS DEFINED IN SECTION 3307.50 OF THE REVISED CODE, 9,407
for all purposes except in the case of retirement UNDER THE PLAN 9,409
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 9,410
teacher's accumulated contributions and shall be used in 9,411
purchasing from the annuity and pension reserve fund an annuity, 9,412
in addition to any other annuity or pension benefit otherwise 9,413
provided by this chapter. 9,414
After the moneys and securities of any local district 9,416
pension system have been transferred to the employers' 9,417
accumulation fund or to the teachers' savings fund, such local 9,418
district pension system shall cease to exist. 9,419
Sec. 3309.021. (A) A member may purchase service credit 9,428
that shall be considered as the equivalent of Ohio service for 9,429
each year of service incurred by reason of having been on active 9,430
duty as a member of the armed forces of the United States, as 9,431
defined in section 3309.02 of the Revised Code. All or part of 9,432
the credit may be purchased at any time prior to receipt of a 9,433
199
retirement allowance. The number of years purchased under this 9,435
division shall not exceed five.
(B) For the purposes of this division, "prisoner of war" 9,437
means any regularly appointed, enrolled, enlisted, or inducted 9,438
member of the armed forces of the United States who was captured, 9,439
separated, and incarcerated by an enemy of the United States. 9,440
A member may purchase service credit that shall be 9,442
considered as the equivalent of Ohio service for each year of 9,443
service such member was a prisoner of war. The number of years 9,444
purchased under this division shall not exceed five. Service 9,445
credit may be purchased under this division for the same years of 9,446
service used to purchase service credit under division (A) of 9,447
this section. The member may choose to purchase only part of 9,448
such credit in any one payment, subject to board rules. 9,449
(C) The total number of years purchased under this section 9,451
shall not exceed the member's total accumulated number of years 9,452
of Ohio service. 9,453
(D) For each year of service purchased under division (A) 9,455
or (B) of this section, the member shall pay to the school 9,456
employees retirement system for credit to the member's 9,457
accumulated account an amount determined by the member rate of 9,459
contribution in effect at the time the military service began 9,460
multiplied by the annual compensation for full-time employment 9,461
during the first year of service covered by the school employees 9,462
retirement system, public employees retirement system, or state 9,463
teachers retirement system following termination of military 9,464
service. If, however, a limit on maximum salary or maximum 9,465
contribution was in effect at the time the military service 9,466
began, the limit shall be applied to the salary received during 9,467
the first year of service in Ohio to calculate the amount of 9,468
payment. To this amount shall be added an amount equal to 9,469
compound interest at a rate established by the school employees 9,470
retirement board from the date of the member's first service 9,471
covered by the school employees retirement system, public 9,472
200
employees retirement system, or state teachers retirement system 9,473
following termination of the military service to date of payment. 9,474
(E) A member of the school employees retirement system is 9,476
ineligible to purchase service credit under this section for any 9,477
year of military service that was: 9,478
(1) Used in the calculation of any retirement benefit 9,481
currently being paid to the member or payable in the future under 9,482
any other retirement program, except for retired pay for 9,483
nonregular service under Chapter 1223 of Section 1662 of Title 9,485
XVI of the "National Defense Authorization Act for Fiscal Year 9,486
1995," 108 Stat. 2998 (1994), 10 U.S.C.A. 12731 to 12739, or 9,487
social security; 9,488
(2) Used to obtain service credit pursuant to section 9,490
3309.02 or 3309.022 of the Revised Code. 9,491
At the time such credit is purchased, the member shall 9,494
certify on a form furnished by the retirement board that the 9,495
member does and will conform to this requirement. 9,497
(F) Credit purchased under this section may be combined 9,499
pursuant to section 3309.35 of the Revised Code with credit for 9,500
military service purchased under sections 145.301 and 3307.021 9,501
3307.751 of the Revised Code, except that not more than an 9,503
aggregate total of five years of credit purchased under division 9,504
(A) of this section, division (A) of section 145.301, and 9,505
division (A) of section 3307.021 3307.751 of the Revised Code, 9,506
and not more than an aggregate total of five years of credit 9,508
purchased under division (B) of this section, division (B) of 9,509
section 145.301, and division (B) of section 3307.021 3307.751 of 9,510
the Revised Code shall be used in determining retirement 9,512
eligibility or calculating benefits under section 3309.35 of the 9,513
Revised Code.
Sec. 3309.261. (A) A member of the school employees 9,522
retirement system who has at least eighteen months of 9,523
contributing service credit in the system, the OHIO police and 9,524
firemen's disability and FIRE pension fund, public employees 9,526
201
retirement system, state teachers retirement system, or state 9,527
highway patrol retirement system, and is a former member of or no 9,528
longer contributing to the public employees retirement system or 9,529
state teachers retirement system may restore service credit under 9,530
section 145.31 or 3307.28 3307.71 of the Revised Code by making 9,532
payments pursuant to this section through a payroll deduction 9,533
plan established under section 3309.27 of the Revised Code. A 9,534
member seeking to restore service credit shall notify the school 9,536
employees retirement system on a form approved by the school 9,537
employees retirement board. After receiving the notice, the 9,538
school employees retirement system shall request that the former 9,539
retirement system calculate under section 145.312 or 3307.283 9,540
3307.712 of the Revised Code the cost to the member to restore 9,543
service credit for each year or portion of a year of service for 9,544
which the member seeks to restore the service credit. The amount 9,545
the former retirement system certifies as the cost of restoring 9,546
the service credit, plus interest described in division (B) of 9,547
this section, is the cost to the member of restoring the service 9,548
credit. On receiving the certification from the former 9,549
retirement system, the school employees retirement system shall 9,550
notify the member of the cost.
(B) For each year or portion of a year of service credit 9,552
restored under section 145.31 or 3307.28 3307.71 of the Revised 9,553
Code, a member shall pay to the school employees retirement 9,555
system the amount certified by the former retirement system plus 9,556
interest at a rate specified by the former retirement system 9,557
under section 145.312 or 3307.283 3307.712 of the Revised Code 9,558
for the period during which deductions are made under section 9,560
3309.27 of the Revised Code. 9,561
(C) The school employees retirement board shall annually 9,564
notify the former retirement system that a payment to restore 9,565
service credit under section 145.31 or 3307.28 3307.71 of the 9,566
Revised Code has been made. At the time the payment is 9,567
transferred under division (D) of this section, the former 9,568
202
retirement system shall restore the service credit for the year 9,569
or portion of a year for which the payment was made. 9,571
(D) On application for a payment of accumulated 9,573
contributions or an age and service retirement, disability, or 9,575
survivor benefit under Chapter 145., 3307., or 3309. of the 9,576
Revised Code by a member who made payments under this section to 9,578
restore service credit in a former retirement system, the school 9,579
employees retirement system shall pay to the former retirement 9,580
system an amount equal to the total amount paid by the member 9,581
under this section.
(E) The board shall adopt rules to implement this section. 9,583
Sec. 3309.262. After receiving a request from the public 9,593
employees retirement system under division (A) of section 145.311 9,594
or the state teachers retirement system under division (A) of 9,597
section 3307.282 3307.711 of the Revised Code, the school 9,599
employees retirement system shall do both of the following: 9,600
(A) Calculate and certify to the requesting retirement 9,603
system the cost to a former member to restore service credit 9,604
under section 3309.26 of the Revised Code for each year or 9,605
portion of a year for which the former member seeks to purchase 9,606
service credit under that section.
(B) Inform the requesting retirement system of the rate of 9,608
interest charged to a member under a payroll deduction plan 9,609
authorized under section 3309.27 of the Revised Code. 9,610
Sec. 3309.301. (A)(1) Except as provided in division 9,619
(A)(2) of this section, a member of the school employees 9,620
retirement system with at least eighteen months of contributing 9,621
service in the system, the public employees retirement system, or 9,622
the state teachers retirement system who exempted himself SELF 9,623
from membership in one or more of the systems pursuant to section 9,625
145.03 or 3309.23 of the Revised Code, or former section 3307.25 9,626
or 3309.25 of the Revised Code, or was exempt under section 9,627
3307.27 3307.24 of the Revised Code, may purchase credit for each 9,629
year or portion of a year of service for which he THE MEMBER was 9,630
203
exempted. 9,631
(2) A member may not purchase credit under this section 9,633
for service that was exempted from contribution under section 9,634
3309.23 of the Revised Code and subject to the tax on wages 9,635
imposed by the "Federal Insurance Contributions Act," 68A Stat. 9,636
415 (1954), 26 U.S.C.A. 3101, as amended. 9,637
(B) Upon receipt of a request from a member eligible to 9,639
purchase credit under this section and certification of the 9,640
member's service and compensation from the employer for which the 9,641
exempt service was performed, the school employees retirement 9,642
system shall determine the amount of credit the member is 9,643
eligible to purchase in accordance with divisions (B)(1) and (2) 9,644
of this section. 9,645
(1) If the credit to be purchased is for service exempted 9,647
under section 3309.23 or former section 3309.25 of the Revised 9,648
Code, determine the amount of credit that would have been earned 9,649
had the service not been exempt. 9,650
(2) If the credit to be purchased is for service exempted 9,652
under section 145.03 or 3307.27 3307.24, or former section 9,653
3307.25 of the Revised Code, request certification from the 9,655
applicable retirement system that the service was exempt and the 9,656
amount of service credit that would have been earned had the 9,657
service not been exempt. 9,658
(C) For each year or portion of a year of credit purchased 9,660
under this section, a member shall pay to the retirement system 9,661
an amount determined by multiplying the member's compensation for 9,662
the twelve months of contributing service preceding the month in 9,663
which he THE MEMBER applies to purchase the credit by a 9,664
percentage rate established by rule of the school employees 9,666
retirement board adopted under division (G) of this section. 9,667
(D) Subject to board rules, a member may purchase all or 9,669
part of the credit he THE MEMBER is eligible to purchase under 9,670
this section in one or more payments. If the member purchases 9,672
the credit in more than one payment, compound interest at a rate 9,673
204
specified by rule of the board shall be charged on the balance 9,674
remaining after the first payment is made. 9,675
(E) Credit purchasable under this section shall not exceed 9,677
one year of service for any twelve-month period. If the period 9,678
of service for which credit is purchasable under this section is 9,679
concurrent with a period of service that will be used to 9,680
calculate a retirement benefit from this system, the public 9,681
employees retirement system, or the state teachers retirement 9,682
system, the amount of the credit shall be adjusted in accordance 9,683
with rules adopted by the school employees retirement board. 9,684
A member who is also a member of the public employees 9,686
retirement system or the state teachers retirement system shall 9,687
purchase credit for any service for which he THE MEMBER exempted 9,688
himself SELF under section 145.03 or 3309.23 of the Revised Code, 9,690
or former section 3307.25 or 3309.25 of the Revised Code, or was 9,691
exempt under section 3307.27 3307.24 of the Revised Code, from 9,692
the retirement system in which he THE MEMBER has the greatest 9,694
number of years of service credit. If the member receives 9,696
benefits under section 3309.35 of the Revised Code, the state 9,697
retirement system that determines and pays the retirement benefit 9,698
shall receive from the other system or systems the amounts paid 9,699
by the member for purchase of credit for exempt service plus 9,700
interest at the actuarial assumption rate of the system paying 9,701
that amount. The interest shall be for the period beginning on 9,702
the date of the member's last payment for purchase of the credit 9,703
and ending on the date of the member's retirement. 9,704
(F) If a member dies or withdraws from service, any 9,706
payment made by the member under this section shall be considered 9,707
as accumulated contributions of the member. 9,708
(G) The retirement board shall adopt rules to implement 9,710
this section. 9,711
Sec. 3309.31. Service credit purchased under this section 9,720
shall be included in the member's total service credit. Credit 9,721
may be purchased for the following: 9,722
205
(A) School service in a public or private school, college, 9,724
or university of this or another state, and for school service in 9,725
any school or entity operated by or for the United States 9,726
government. Credit purchased under this section for school 9,727
service shall be limited to service rendered in schools, 9,728
colleges, or universities chartered or accredited by the 9,729
appropriate governmental agency. 9,730
(B) Public service with another state or the United States 9,732
government, provided that such credit shall be limited to service 9,733
that would have been covered by the state teachers retirement 9,734
system, the Ohio police and fire pension fund, the state highway 9,737
patrol retirement system, or the public employees retirement 9,738
system if served in a comparable public position in this state. 9,739
(C) Service for which contributions were made by the 9,741
member or on the member's behalf to a municipal retirement system 9,743
in this state. 9,744
The number of years of service purchased under this section 9,747
shall not exceed the lesser of five years or the member's total 9,748
accumulated number of years of Ohio service.
For each year of service purchased under this section, a 9,750
member shall pay to the school employees retirement system for 9,751
credit to the member's accumulated account an amount equal to the 9,753
member's retirement contribution for full-time employment for the 9,754
first year of Ohio service following termination of the service 9,755
to be purchased. To this amount shall be added an amount equal 9,756
to compound interest at a rate established by the school 9,757
employees retirement board from the date of membership in the 9,758
school employees retirement system to date of payment. A member 9,759
may choose to purchase only part of such credit in any one 9,760
payment, subject to board rules. 9,761
A member is ineligible to purchase under this section 9,763
service that is used in the calculation of any retirement benefit 9,764
currently being paid or payable in the future to the member under 9,765
any other retirement program, except social security. At the 9,766
206
time the credit is purchased, the member shall certify on a form 9,767
furnished by the retirement board that the member does and will 9,769
conform to this requirement. 9,770
(D) Credit purchased under this section may be combined 9,772
pursuant to section 3309.35 of the Revised Code with credit 9,773
purchased under sections 145.293 and 3307.32 3307.74 of the 9,774
Revised Code, except that not more than an aggregate total of 9,776
five years' service credit purchased under this section and 9,777
sections 145.293 and 3307.32 3307.74 of the Revised Code shall be 9,778
used in determining retirement eligibility or calculating 9,780
benefits under section 3309.35 of the Revised Code. 9,781
(E) The retirement board shall establish a policy to 9,783
determine eligibility to purchase credit under this section, and 9,784
its decision shall be final. 9,785
Sec. 3309.341. (A) As used in this section: 9,794
(1) "SERS retirant" means any person who is receiving a 9,796
retirement allowance from the school employees retirement system 9,797
under section 3309.36, 3309.38, or 3309.381 of the Revised Code. 9,798
(2) "Other system retirant" means a member or former 9,800
member of the public employees retirement system, Ohio police and 9,802
fire pension fund, state teachers retirement system, state 9,803
highway patrol retirement system, or Cincinnati retirement system 9,804
who is receiving age and service or commuted age and service 9,805
retirement, or a disability benefit from a system of which the 9,806
retirant is a member or former member.
(B)(1) An SERS retirant or other system retirant may be 9,808
employed by a public employer. If so employed, the SERS retirant 9,809
or other system retirant shall contribute to the school employees 9,810
retirement system in accordance with section 3309.47 of the 9,811
Revised Code, and the employer shall make contributions in 9,812
accordance with section 3309.49 of the Revised Code. 9,813
(2) An employer that employs an SERS retirant or other 9,815
system retirant shall notify the retirement board of the 9,816
employment not later than the end of the month in which the 9,817
207
employment commences. On receipt of notice from an employer that 9,818
a person who is an other system retirant has been employed, the 9,819
school employees retirement system shall notify the state 9,820
retirement system of which the other system retirant was a member 9,821
of such employment. 9,822
(C) An SERS retirant or other system retirant who has 9,824
received a retirement allowance or disability benefit for less 9,826
than two months when employment subject to this section commences 9,827
shall forfeit the retirement allowance or disability benefit for 9,829
the period that begins on the date the employment commences and 9,830
ends on the date that is two months after the date on which the 9,831
retirement allowance or disability benefit commenced. Service 9,832
and contributions for that period shall not be included in the 9,833
calculation of any benefits payable to the SERS retirant or other 9,834
system retirant, and those contributions shall be refunded on 9,835
death or termination of the employment. 9,836
(D) On receipt of notice from the Ohio police and fire 9,839
pension fund, public employees retirement system, or state 9,841
teachers retirement system of the re-employment of an SERS 9,842
retirant, the school employees retirement system shall not pay,
or if paid shall recover, the amount to be forfeited by the SERS 9,843
retirant in accordance with section 145.38, 742.26, or 3307.381 9,844
3307.35 of the Revised Code. 9,845
(E)(1) On termination of employment under this section, an 9,847
SERS retirant or other system retirant may file an application 9,848
with the school employees retirement system for a benefit under 9,849
this division, which shall consist of a single life annuity 9,850
having a reserve equal to the amount of the retirant's 9,851
accumulated contributions for the period of employment and an 9,853
equal amount of the employer's contributions, plus interest 9,854
credited to the date of retirement at the rate provided in 9,855
division (I)(2) of section 3309.01 of the Revised Code. The SERS 9,856
retirant or other system retirant shall elect either to receive 9,857
the benefit as a monthly annuity for life or a lump-sum payment 9,858
208
discounted to the present value using the current actuarial 9,859
assumption rate of interest, except that if the monthly annuity 9,860
would be less than twenty-five dollars per month, the retirant 9,862
shall receive a lump-sum payment.
(2) A benefit payable under this division shall commence 9,864
on the first day of the month after the latest of the following: 9,865
(a) The last day for which compensation for employment 9,867
subject to this section was paid; 9,868
(b) Attainment by the SERS retirant or other system 9,870
retirant of age sixty-five; 9,871
(c) If the SERS retirant or other system retirant was 9,873
previously employed under this section and is receiving or 9,874
previously received a benefit under this division, completion of 9,875
a period of twelve months since the effective date of that 9,876
benefit. 9,877
(3) An SERS retirant or other system retirant subject to 9,879
this section is not a member of the school employees retirement 9,880
system; does not have any of the rights, privileges, or 9,881
obligations of membership, except as specified in this section; 9,882
and is not eligible to receive health, medical, hospital, or 9,883
surgical benefits under section 3309.69 of the Revised Code for 9,884
employment subject to this section. No amount received under 9,885
this division shall be included in determining an additional 9,886
benefit under section 3309.374 of the Revised Code or any other 9,887
post-retirement benefits. 9,888
(F)(1) If an SERS retirant or other system retirant dies 9,890
while employed in employment subject to this section, a lump-sum 9,891
payment calculated in accordance with division (E)(1) of this 9,892
section shall be paid to the beneficiary under division (H) of 9,893
this section. 9,894
(2) If at the time of death an SERS retirant or other 9,896
system retirant receiving a monthly annuity has received less 9,897
than the retirant would have received as a lump-sum payment, the 9,900
difference between the amount received and the amount that would 9,902
209
have been received as a lump-sum payment shall be paid to the 9,903
retirant's beneficiary under division (H) of this section. 9,905
(G) If the disability benefit of an other system retirant 9,907
employed under this section is terminated, the retirant shall 9,908
become a member of the school employees retirement system, 9,910
effective on the first day of the month next following the 9,911
termination, with all the rights, privileges, and obligations of 9,912
membership. If the retirant, after the termination of the 9,914
disability benefit, earns two years of service credit under this 9,916
retirement system or under the public employees retirement 9,917
system, Ohio police and fire pension fund, state teachers 9,918
retirement system, or state highway patrol retirement system, the 9,920
retirant's prior contributions as an other system retirant under 9,922
this section shall be included in the retirant's total service 9,923
credit as a school employees retirement system member, and the 9,925
retirant shall forfeit all rights and benefits of this section. 9,927
Not more than one year of credit may be given for any period of 9,928
twelve months.
(H) An SERS retirant or other system retirant employed 9,930
under this section may designate one or more persons as 9,931
beneficiary to receive any benefits payable under this section 9,932
due to death. The designation shall be in writing duly executed 9,934
on a form provided by the school employees retirement board, 9,935
signed by the SERS retirant or other system retirant, and filed 9,936
with the board prior to death. The last designation of a 9,937
beneficiary revokes all previous designations. The SERS
retirant's or other system retirant's marriage, divorce, marriage 9,938
dissolution, legal separation, withdrawal of account, birth of 9,939
the retirant's child, or adoption of a child revokes all previous 9,941
designations. If there is no designated beneficiary, the 9,942
beneficiary is the beneficiary designated under division (D) of 9,943
section 3309.44 of the Revised Code. If any benefit payable 9,944
under this section due to the death of an SERS retirant or other 9,945
system retirant is not claimed by a beneficiary within five years 9,946
210
after the death, the amount payable shall be transferred to the 9,947
guarantee fund and thereafter paid to the beneficiary or the 9,948
estate of the SERS retirant or other system retirant on 9,949
application to the board. 9,950
(I) This section does not affect the receipt of benefits 9,952
by or eligibility for benefits of any person who on August 29, 9,953
1976, was receiving a disability benefit or service retirement 9,954
pension or allowance from a state or municipal retirement system 9,955
in Ohio and was a member of any other state or municipal 9,956
retirement system of this state. 9,957
(J) The school employees retirement board may adopt rules 9,959
to carry out this section. 9,960
Sec. 3309.35. (A) As used in this section: 9,969
(1) "State retirement system" means the public employees 9,971
retirement system, state teachers retirement system, or school 9,972
employees retirement system. 9,973
(2) "Total service credit" means all service credit earned 9,975
in all state retirement systems, except credit for service 9,976
subject to section 3309.341 of the Revised Code. Total service 9,977
credit shall not exceed one year of credit for any twelve-month 9,978
period. 9,979
(3) In addition to the meaning given in division (O) of 9,981
section 3309.01 of the Revised Code, "disability benefit" means 9,982
"disability benefit" as defined in sections 145.01 and 3307.01 of 9,983
the Revised Code. 9,984
(B) To coordinate and integrate membership in the state 9,986
retirement systems, at the option of a member, total 9,988
contributions and service credit in all state retirement systems, 9,989
including amounts paid to restore service credit under sections 9,990
145.311, 3307.282 3307.711, and 3309.261 of the Revised Code, 9,992
shall be used in determining the eligibility and total retirement 9,993
or disability benefit payable. When total contributions and 9,994
service credit are so combined, the following provisions apply: 9,995
(1) Service and commuted service retirement or a 9,997
211
disability benefit is effective no sooner than the first day of 9,998
the month next following the last day of employment for which 9,999
compensation was paid. If the application is filed after that 10,000
date, the board may retire the member on the first day of the 10,001
month next following the last day of employment for which 10,002
compensation was paid. 10,003
(2) In determining eligibility for a disability benefit, 10,005
the medical examiner's report to the retirement board of any 10,006
state retirement system, showing that the member's disability 10,007
incapacitates the member for the performance of duty, may be 10,008
accepted by the state retirement boards as sufficient for 10,010
granting a disability benefit. 10,011
(3) The state retirement system in which the member had 10,013
the greatest service credit, without adjustment, shall determine 10,014
and pay the total retirement or disability benefit. Where the 10,015
member's credit is equal in two or more state retirement systems, 10,017
the system having the largest total contributions of the member 10,018
shall determine and pay the total benefit. 10,019
(4) In determining the total credit to be used in 10,021
calculating a retirement allowance or disability benefit, credit 10,022
shall not be reduced below that certified by the system or 10,023
systems transferring credit, except that such total combined 10,024
service credit shall not exceed one year of credit for any one 10,025
"year" as defined in the law of the system making the 10,026
calculation. 10,027
(5) The state retirement system determining and paying a 10,029
retirement or disability benefit shall receive from the other 10,030
system or systems the member's refundable account at retirement 10,031
or the effective date of a disability benefit plus an equal 10,032
amount from the employers' trust fund. 10,033
(a) The annuity rates and mortality tables of the state 10,035
retirement system making the calculation and paying the benefit 10,036
shall be exclusively applicable. 10,037
(b) Deposits made for the purchase of an additional 10,039
212
annuity, and including guaranteed interest, upon the request of 10,040
the member, shall be transferred to the state retirement system 10,041
paying the retirement or disability benefit. The return upon 10,042
such deposits shall be that offered by the state retirement 10,043
system making the calculation and paying the retirement or 10,044
disability benefit. 10,045
(C) A former member receiving a retirement or disability 10,047
benefit under this section, who accepts employment amenable to 10,048
coverage in any state retirement system that participated in the 10,049
member's combined benefit, shall be subject to the applicable 10,051
provisions of law governing such re-employment. If the former 10,052
member is subject to section 3307.381 3307.35 of the Revised Code 10,053
and exceeds the limits on re-employment established by that 10,055
section, the state retirement system paying a combined benefit 10,056
shall terminate the entire pension portion of the benefit for the 10,057
period of re-employment that exceeds the limit in that section. 10,058
If a former member should be paid any amount in a retirement 10,059
allowance, to which the former member is not entitled under the 10,061
applicable provisions of law governing such re-employment, such 10,062
amount shall be recovered by the state retirement system paying 10,063
such allowance by utilizing any recovery procedure available 10,064
under the code provisions of the state retirement system covering 10,065
such re-employment. 10,066
(D) An SERS retirant or other system retirant, as defined 10,068
in section 3309.341 of the Revised Code, is not eligible to 10,069
receive any benefit under this section for service subject to 10,070
section 3309.341 of the Revised Code. 10,071
Sec. 3309.3712. THE SCHOOL EMPLOYEES RETIREMENT BOARD MAY 10,073
ESTABLISH AND MAINTAIN A QUALIFIED GOVERNMENTAL EXCESS BENEFIT 10,074
ARRANGEMENT THAT MEETS THE REQUIREMENTS OF DIVISION (m) OF 10,075
SECTION 415 OF THE "INTERNAL REVENUE CODE OF 1986," 100 STAT. 10,079
2085, 26 U.S.C.A. 415, AS AMENDED, AND ANY REGULATIONS ADOPTED 10,081
THEREUNDER. IF ESTABLISHED, THE ARRANGEMENT SHALL BE A SEPARATE
PORTION OF THE SCHOOL EMPLOYEES RETIREMENT SYSTEM AND BE
213
MAINTAINED SOLELY FOR THE PURPOSE OF PROVIDING TO RETIRED MEMBERS 10,082
THAT PART OF A BENEFIT OTHERWISE PAYABLE UNDER THIS CHAPTER THAT 10,083
EXCEEDS THE LIMITS ESTABLISHED BY SECTION 415 OF THE "INTERNAL 10,084
REVENUE CODE OF 1986," AS AMENDED. 10,085
MEMBERS PARTICIPATING IN AN ARRANGEMENT ESTABLISHED UNDER 10,087
THIS SECTION SHALL NOT BE PERMITTED TO ELECT TO DEFER 10,088
COMPENSATION TO THE ARRANGEMENT. CONTRIBUTIONS TO AND BENEFITS 10,089
PAID UNDER AN ARRANGEMENT SHALL NOT BE PAYABLE FROM A TRUST THAT 10,090
IS PART OF THE SYSTEM UNLESS THE TRUST IS MAINTAINED SOLELY FOR 10,091
THE PURPOSE OF PROVIDING SUCH BENEFITS. 10,092
THE BOARD SHALL ADOPT RULES TO ADMINISTER AN ARRANGEMENT 10,094
ESTABLISHED UNDER THIS SECTION. 10,095
Sec. 3309.39. (A) The school employees retirement system 10,104
shall provide disability coverage to each member who has at least 10,105
five years of total service credit. 10,106
Not later than October 16, 1992, the school employees 10,108
retirement board shall give each person who is a member on July 10,109
29, 1992, the opportunity to elect disability coverage either 10,112
under section 3309.40 of the Revised Code or under section 10,113
3309.401 of the Revised Code. The board shall mail notice of the 10,114
election, accompanied by an explanation of the coverage under 10,115
each of the Revised Code sections and a form on which the 10,116
election is to be made, to each member at the member's last known 10,118
address. The board shall also provide the explanation and form 10,119
to any member at the member's request.
Regardless of whether the member actually receives notice 10,121
of the right to make an election, a member who fails to file a 10,123
valid election under this section shall be considered to have
elected disability coverage under section 3309.40 of the Revised 10,124
Code. To be valid, an election must be made on the form provided 10,125
by the retirement board, signed by the member, and filed with the 10,126
board not later than one hundred eighty days after the date the 10,127
notice was mailed, or, in the case of a form provided at the 10,128
request of a member, a date specified by rule of the retirement 10,129
214
board. Once made, an election is irrevocable, but if the member 10,130
ceases to be a member of the retirement system, the election is 10,131
void. If a person who makes an election under this section also 10,132
makes an election under section 145.35 or 3307.42 3307.62 of the 10,134
Revised Code, the election made for the system that pays a 10,135
disability benefit to that person shall govern the benefit. 10,136
Disability coverage shall be provided under section 10,138
3309.401 of the Revised Code for persons who become members after 10,139
July 29, 1992, and for members who elect under this division to 10,142
be covered under section 3309.401 of the Revised Code. 10,143
The retirement board may adopt rules governing elections 10,145
made under this division. 10,146
(B) Application for a disability benefit may be made by a 10,148
member, by a person acting in the member's behalf, or by the 10,149
member's employer, provided the member has at least five years of 10,150
total service credit and has disability coverage under section 10,151
3309.40 or 3309.401 of the Revised Code. The application for a 10,152
disability benefit shall be made on a form provided by the 10,153
retirement board. The benefit payable to any member who is 10,154
approved for a disability benefit shall become effective on the 10,155
first day of the month next following the later of the following: 10,156
(1) The last day for which compensation was paid; 10,158
(2) The date on which the member was first incapacitated 10,160
by the disabling condition. 10,161
(C) Medical examination of a member who has applied for a 10,163
disability benefit shall be conducted by a competent 10,164
disinterested physician or physicians selected by the retirement 10,165
board to determine whether the member is mentally or physically 10,166
incapacitated for the performance of the member's last assigned 10,167
primary duty as an employee by a disabling condition either 10,168
permanent or presumed to be permanent for twelve continuous 10,169
months following the filing of an application. Such disability 10,171
must have occurred since last becoming a member or have increased 10,172
since last becoming a member to such extent as to make the 10,173
215
disability permanent or presumed to be permanent for twelve 10,174
continuous months following the filing of an application. 10,175
(D) Application for a disability benefit must be made 10,177
within two years from the date the member's contributing service 10,178
terminated, unless the retirement board determines that the 10,179
member's medical records demonstrate conclusively that at the 10,180
time the two-year period expired, the member was physically or 10,181
mentally incapacitated for duty as an employee and unable to make 10,182
application. Application may not be made by any person receiving 10,183
a service retirement allowance or commuted service retirement 10,184
allowance under section 3309.36, 3309.38, or 3309.381 of the 10,185
Revised Code or any person who, pursuant to section 3309.42 of 10,186
the Revised Code, has been paid the accumulated contributions 10,187
standing to the credit of the person's individual account in the 10,189
employees' savings fund.
(E) If the physician or physicians determine that the 10,191
member qualifies for a disability benefit, the retirement board 10,193
concurs with the determination, and the member agrees to medical
treatment as specified in division (F) of this section, the 10,195
member shall receive a disability benefit under section 3309.40 10,196
or 3309.401 of the Revised Code. The action of the board shall 10,197
be final. At the time the board decides it concurs with the 10,198
determination of the physician or physicians, the board shall 10,199
determine the date on which the member was first incapacitated by 10,200
the disabling condition. 10,201
(F) The school employees retirement board shall adopt 10,203
rules requiring a disability benefit recipient, as a condition of 10,205
continuing to receive a disability benefit, to agree in writing 10,206
to obtain any medical treatment recommended by the board's 10,207
physician and submit medical reports regarding the treatment. If 10,209
the board determines that a disability benefit recipient is not
obtaining the medical treatment or the board does not receive a 10,210
required medical report, the disability benefit shall be 10,211
suspended until the treatment is obtained, the report is received 10,213
216
by the board, or the board's physician certifies that the 10,214
treatment is no longer helpful or advisable. Should the 10,216
recipient's failure to obtain treatment or submit a medical
report continue for one year, the recipient's right to the 10,218
disability benefit shall be terminated as of the effective date 10,219
of the original suspension.
(G) In the event an employer files an application for a 10,221
disability benefit as a result of a member having been separated 10,222
from service because the member is considered to be mentally or 10,224
physically incapacitated for the performance of the member's last
assigned primary duty as an employee, and the physician or 10,225
physicians selected by the board report to the board that the 10,226
member is physically and mentally capable of performing service 10,227
similar to that from which the member was separated, and the 10,228
board concurs in such report, then the board shall so certify to 10,229
the employer and the employer shall restore the member to the 10,230
member's previous position and salary or to a similar position 10,231
and salary.
Sec. 3309.45. Except as provided in division (C)(1) of 10,240
this section, in lieu of accepting the payment of the accumulated 10,242
account of a member who dies before service retirement, the 10,243
beneficiary, as determined in section 3309.44 of the Revised 10,244
Code, may elect to forfeit the accumulated account and to 10,245
substitute certain other benefits either under division (A) or 10,246
(B) of this section.
(A) If a deceased member was eligible for a service 10,248
retirement allowance as provided in section 3309.36, 3309.38, or 10,249
3309.381 of the Revised Code, a surviving spouse or other sole 10,250
dependent beneficiary may elect to receive a monthly benefit 10,252
computed as the joint-survivor allowance designated as "plan D" 10,253
in section 3309.46 of the Revised Code, which the member would 10,254
have received had the member retired on the last day of the month 10,255
of death and had the member at that time selected such 10,256
joint-survivor plan. Payment shall begin with the month 10,257
217
subsequent to the member's death. 10,258
(B) If the deceased member had completed at least one and 10,260
one-half years of credit for Ohio service, with at least 10,261
one-quarter year of Ohio contributing service credit within the 10,262
two and one-half years prior to the date of death, or was 10,263
receiving at the time of death a disability benefit as provided 10,264
in section 3309.40 or 3309.401 of the Revised Code, qualified 10,265
survivors may elect to receive monthly benefits, provided in 10,268
divisions (B)(1) and (5) of this section.
(1) Number of 10,270
Qualified 10,271
Or 10,272
survivors Annual Benefit as a Per Monthly Benefit 10,274
affecting Cent of Decedent's shall not be 10,277
Final
the benefit Average Salary less than 10,280
1 25% $ 96 10,283
2 40 186 10,284
3 50 236 10,285
4 55 236 10,286
5 or more 60 236 10,287
(2) Benefits shall begin as qualified survivors meet 10,290
eligibility requirements as follows: 10,291
(a) A qualified spouse is the surviving spouse of the 10,293
deceased member who is age sixty-two, or age fifty if the 10,296
deceased member had ten or more years of Ohio service credit, or 10,297
regardless of age if caring for a surviving child, or regardless 10,299
of age if adjudged physically or mentally incompetent. 10,300
(b) A qualified child is any unmarried child of the 10,304
deceased member under age eighteen, or under age twenty-two if 10,305
the child is attending an institution of learning or training 10,306
pursuant to a program designed to complete in each school year 10,307
the equivalent of at least two-thirds of the full-time curriculum 10,308
requirements of such institution and as further determined by 10,309
218
board policy, or regardless of age if adjudged physically or 10,310
mentally incompetent. 10,311
(c) A qualified parent is a dependent parent aged 10,313
sixty-five or older. 10,314
(3) "Physically or mentally incompetent" as used in this 10,316
section may be determined by a court of jurisdiction, or by a 10,317
physician appointed by the retirement board. Incapability of 10,318
earning a living because of a physically or mentally disabling 10,319
condition shall meet the qualifications of this division. 10,320
(4) Benefits to a qualified survivor shall terminate upon 10,323
a first marriage, abandonment, adoption, or during active 10,325
military service. Benefits to a deceased member's surviving 10,327
spouse that were terminated under a former version of this 10,328
section that required termination due to remarriage and were not 10,329
resumed prior to the effective date of this amendment shall 10,330
resume on the first day of the month immediately following
receipt by the board of an application on a form provided by the 10,331
board.
Upon the death of any subsequent spouse who was a member of 10,334
the public employees retirement system, state teachers retirement 10,335
system, or school employees retirement system, the surviving 10,336
spouse of such member may elect to continue receiving benefits 10,337
under this division, or to receive survivor's benefits, based 10,338
upon the subsequent spouse's membership in one or more of the 10,339
systems, for which such surviving spouse is eligible under this 10,340
section or section 145.45 or 3307.49 3307.66 of the Revised Code. 10,342
If the surviving spouse elects to continue receiving benefits 10,343
under this division, such election shall not preclude the payment 10,344
of benefits under this division to any other qualified survivor. 10,345
Benefits shall begin or resume on the first day of the 10,347
month following the attainment of eligibility and shall terminate 10,348
on the first day of the month following loss of eligibility. 10,349
(5) Benefits to a qualified spouse shall be paid in the 10,351
amount determined for the first qualifying survivor in division 10,353
219
(B)(1) of this section, but shall not be less than one hundred 10,354
six dollars per month if the deceased member had ten or more 10,355
years of Ohio service credit. All other qualifying survivors 10,357
shall share equally in the benefit or remaining portion thereof. 10,358
(6) The beneficiary of a member who is also a member of 10,360
the public employees retirement system, or of the state teachers 10,361
retirement system, must forfeit the member's accumulated 10,362
contributions in those systems, if the beneficiary takes a 10,365
survivor benefit. Such benefit shall be exclusively governed by 10,366
section 3309.35 of the Revised Code. 10,367
(C)(1) Regardless of whether the member is survived by a 10,371
spouse or designated beneficiary, if the school employees
retirement system receives notice that a deceased member 10,372
described in division (A) or (B) of this section has one or more 10,374
qualified children, all persons who are qualified survivors under 10,375
Division (B) of this section shall receive monthly benefits as 10,378
provided in division (B) of this section. 10,379
If, after determining the monthly benefits to be paid under 10,381
division (B) of this section, the system receives notice that 10,382
there is a qualified survivor who was not considered when the 10,383
determination was made, the system shall, notwithstanding section 10,384
3309.661 of the Revised Code, recalculate the monthly benefits 10,385
with that qualified survivor included, even if the benefits to 10,386
qualified survivors already receiving benefits are reduced as a 10,387
result. The benefits shall be calculated as if the qualified 10,388
survivor who is the subject of the notice became eligible on the
date the notice was received and shall be paid to qualified 10,389
survivors effective on the first day of the first month following 10,390
the system's receipt of the notice. 10,391
If the retirement system did not receive notice that a 10,393
deceased member has one or more qualified children prior to 10,395
making payment under section 3309.44 of the Revised Code to a 10,398
beneficiary as determined by the retirement system, the payment 10,399
is a full discharge and release of the system from any future 10,400
220
claims under this section or section 3309.44 of the Revised Code. 10,401
(2) If benefits under division (C)(1) of this section to 10,404
all persons, or to all persons other than a surviving spouse or 10,406
other sole beneficiary, terminate, there are no children under
the age of twenty-two years, and the surviving spouse or 10,407
beneficiary qualifies for benefits under division (A) of this 10,409
section, the surviving spouse or beneficiary may elect to receive 10,410
benefits under division (A) of this section. Benefits shall be 10,411
effective on the first day of the month following receipt by the 10,413
board of an application for benefits under division (A) of this 10,414
section. 10,415
(D) If the survivor benefits due and paid under this 10,417
section are in a total amount less than the member's accumulated 10,418
account that was transferred from the employees' savings fund, 10,419
the state teachers retirement fund, and the public employees 10,420
retirement fund to the survivors' benefit fund, then the 10,421
difference between the total amount of the benefits paid shall be 10,422
paid to the beneficiary under section 3309.44 of the Revised 10,423
Code. 10,424
Sec. 3313.975. As used in this section and in sections 10,433
3313.975 to 3313.979 of the Revised Code, "the pilot project 10,434
school district" or "the district" means any school district 10,437
included in the pilot project scholarship program pursuant to 10,438
this section.
(A) The superintendent of public instruction shall 10,441
establish a pilot project scholarship program and shall include 10,442
in such program any school districts that are or have ever been 10,443
under federal court order requiring supervision and operational 10,445
management of the district by the state superintendent. The
program shall provide for a number of students residing in any 10,447
such district to receive scholarships to attend alternative 10,448
schools, and for an equal number of students to receive tutorial 10,449
assistance grants while attending public school in any such 10,450
district.
221
(B) The state superintendent shall establish an 10,452
application process and deadline for accepting applications from 10,453
students residing in the district to participate in the 10,454
scholarship program. In the initial year of the program students 10,455
may only use a scholarship to attend school in grades 10,456
kindergarten through third.
The state superintendent shall award as many scholarships 10,458
and tutorial assistance grants as can be funded given the amount 10,459
appropriated for the program. In no case, however, shall more 10,460
than fifty per cent of all scholarships awarded be used by 10,461
students who were enrolled in a nonpublic school during the 10,462
school year of application for a scholarship. 10,463
(C)(1) The pilot project program shall continue in effect 10,467
each year that the general assembly has appropriated sufficient 10,468
money to fund scholarships and tutorial assistance grants. In 10,469
each year the program continues, no new students may receive 10,470
scholarships unless they are enrolled in grade kindergarten, one, 10,471
two, or three. However, any student who has received a 10,473
scholarship the preceding year may continue to receive one until 10,474
the student has completed grade eight.
(2) If the general assembly discontinues the scholarship 10,476
program, all students who are attending an alternative school 10,477
under the pilot project shall be entitled to continued admittance 10,479
to that specific school through all grades up to the eighth grade 10,480
that are provided in such school, under the same conditions as 10,482
when they were participating in the pilot project. The state 10,483
superintendent shall continue to make scholarship payments in
accordance with division (A) or (B) of section 3313.979 of the 10,485
Revised Code for students who remain enrolled in an alternative 10,487
school under this provision in any year that funds have been 10,488
appropriated for this purpose.
If funds are not appropriated, the tuition charged to the 10,490
parents of a student who remains enrolled in an alternative 10,492
school under this provision shall not be increased beyond the 10,493
222
amount equal to the amount of the scholarship plus any additional 10,494
amount charged that student's parent in the most recent year of 10,495
attendance as a participant in the pilot project, except that 10,496
tuition for all the students enrolled in such school may be 10,497
increased by the same percentage. 10,498
(D) Notwithstanding sections 124.39, 3307.35 3307.54, and 10,501
3319.17 of the Revised Code, if the pilot project school district 10,502
experiences a decrease in enrollment due to participation in a 10,503
state-sponsored scholarship program pursuant to sections 3313.974 10,504
to 3313.979 of the Revised Code, the district board of education 10,505
may enter into an agreement with any teacher it employs to 10,506
provide to that teacher severance pay or early retirement 10,507
incentives, or both, if the teacher agrees to terminate the 10,508
employment contract with the district board, provided any 10,509
collective bargaining agreement in force pursuant to Chapter 10,510
4117. of the Revised Code does not prohibit such an agreement for 10,512
termination of a teacher's employment contract.
Sec. 3317.011. On or before the third Wednesday of each 10,521
month, the department of education shall certify to the director 10,522
of budget and management for payment, for each county: 10,523
(A)(1) That portion of the allocation of money under 10,525
sections 3317.022 to 3317.0211, 3317.11, 3317.16, 3317.17, and 10,526
3317.19 of the Revised Code that is required to be paid in that 10,527
month to each school district located wholly within the county 10,528
subsequent to the deductions described in division (A)(2) of this 10,529
section; and 10,530
(2) The amounts deducted from such allocation under 10,532
sections 3307.56 3307.31 and 3309.51 of the Revised Code for 10,533
payment directly to the school employees and state teachers 10,535
retirement systems under such sections. 10,536
(B) If the district is located in more than one county, an 10,538
apportionment of the amounts that would otherwise be certified 10,539
under division (A) of this section. The amounts apportioned to 10,540
the county shall equal the amounts certified under division (A) 10,541
223
of this section times the percentage of the district's resident 10,542
pupils who reside both in the district and in the county. 10,543
Sec. 3317.13. (A) As used in this section and section 10,552
3317.14 of the Revised Code: 10,553
(1) "Years of service" includes the following: 10,555
(a) All years of teaching service in the same school 10,557
district or educational service center, regardless of training 10,558
level, with each year consisting of at least one hundred twenty 10,560
days under a teacher's contract;
(b) All years of teaching service in a chartered, 10,562
nonpublic school located in Ohio as a teacher licensed pursuant 10,563
to section 3319.22 of the Revised Code or in another public 10,564
school, regardless of training level, with each year consisting 10,565
of at least one hundred twenty days under a teacher's contract; 10,566
(c) All years of teaching service in a chartered school or 10,568
institution or a school or institution that subsequently became 10,569
chartered or a chartered special education program or a special 10,570
education program that subsequently became chartered operated by 10,571
the state or by a subdivision or other local governmental unit of 10,572
this state as a teacher licensed pursuant to section 3319.22 of 10,573
the Revised Code, regardless of training level, with each year 10,574
consisting of at least one hundred twenty days; and 10,575
(d) All years of active military service in the armed 10,577
forces of the United States, as defined in section 3307.02 10,578
3307.75 of the Revised Code, to a maximum of five years. For 10,580
purposes of this calculation, a partial year of active military 10,581
service of eight continuous months or more in the armed forces 10,582
shall be counted as a full year. 10,583
(2) "Teacher" means all teachers employed by the board of 10,585
education of any school district, including any cooperative 10,587
education or joint vocational school district and all teachers 10,588
employed by any educational service center governing board.
(B) No teacher shall be paid a salary less than that 10,590
provided in the schedule set forth in division (C) of this 10,591
224
section. In calculating the minimum salary any teacher shall be 10,592
paid pursuant to this section, years of service shall include the 10,593
sum of all years of the teacher's teaching service included in 10,594
divisions (A)(1)(a), (b), (c), and (d) of this section; except 10,595
that any school district or educational service center employing 10,596
a teacher new to the district or educational service center shall 10,597
grant such teacher a total of not more than ten years of service 10,598
pursuant to divisions (A)(1)(b), (c), and (d) of this section. 10,599
Upon written complaint to the superintendent of public 10,601
instruction that the board of education of a district or the 10,602
governing board of an educational service center governing board 10,603
has failed or refused to annually adopt a salary schedule or to 10,604
pay salaries in accordance with the salary schedule set forth in 10,605
division (C) of this section, the superintendent of public 10,606
instruction shall cause to be made an immediate investigation of 10,607
such complaint. If the superintendent finds that the conditions 10,608
complained of exist, the superintendent shall order the board to 10,609
correct such conditions within ten days from the date of the 10,611
finding. No moneys shall be distributed to the district or 10,612
educational service center under this chapter until the 10,613
superintendent has satisfactory evidence of the board of 10,614
education's full compliance with such order. 10,615
Each teacher shall be fully credited with placement in the 10,617
appropriate academic training level column in the district's or 10,619
educational service center's salary schedule with years of
service properly credited pursuant to this section or section 10,621
3317.14 of the Revised Code. No rule shall be adopted or 10,622
exercised by any board of education or educational service center 10,623
governing board which restricts the placement or the crediting of 10,624
annual salary increments for any teacher according to the
appropriate academic training level column. 10,625
(C) Minimum salaries exclusive of retirement and sick 10,627
leave for teachers shall be as follows: 10,628
Teachers Teachers with Teachers 10,631
225
Years with Less Teachers with Five Years of with 10,633
of than a Bachelor's Training, but a Master's 10,635
Service Bachelor's Degree no Master's Degree or 10,637
Degree Degree Higher 10,638
Per Dollar Per Dollar Per Dollar Per Dollar 10,642
Cent* Amount Cent* Amount Cent* Amount Cent* Amount 10,644
0 86.5 $14,705 100.0 $17,000 103.8 $17,646 109.5 $18,615 10,646
1 90.0 15,300 103.8 17,646 108.1 18,377 114.3 19,431 10,648
2 93.5 15,895 107.6 18,292 112.4 19,108 119.1 20,247 10,650
3 97.0 16,490 111.4 18,938 116.7 19,839 123.9 21,063 10,652
4 100.5 17,085 115.2 19,584 121.0 20,570 128.7 21,879 10,654
5 104.0 17,680 119.0 20,230 125.3 21,301 133.5 22,695 10,656
6 104.0 17,680 122.8 20,876 129.6 22,032 138.3 23,511 10,658
7 104.0 17,680 126.6 21,522 133.9 22,763 143.1 24,327 10,660
8 104.0 17,680 130.4 22,168 138.2 23,494 147.9 25,143 10,662
9 104.0 17,680 134.2 22,814 142.5 24,225 152.7 25,959 10,664
10 104.0 17,680 138.0 23,460 146.8 24,956 157.5 26,775 10,666
11 104.0 17,680 141.8 24,106 151.1 25,687 162.3 27,591 10,668
* Percentages represent the percentage which each salary is 10,671
of the base amount. 10,672
For purposes of determining the minimum salary at any level 10,674
of training and service, the base of one hundred per cent shall 10,675
be the base amount. The percentages used in this section show 10,676
the relationships between the minimum salaries required by this 10,677
section and the base amount and shall not be construed as 10,678
requiring any school district or educational service center to 10,679
adopt a schedule containing salaries in excess of the amounts set 10,681
forth in this section for corresponding levels of training and 10,682
experience.
As used in this division: 10,684
(1) "Base amount" means seventeen thousand dollars. 10,686
(2) "Five years of training" means at least one hundred 10,688
fifty semester hours, or the equivalent, and a bachelor's degree 10,689
from a recognized college or university. 10,690
226
(D) For purposes of this section, all credited training 10,692
shall be from a recognized college or university. 10,693
Sec. 3319.08. The board of education of each city, 10,702
exempted village, local, and joint vocational school district and 10,704
the governing board of each educational service center shall
enter into written contracts for the employment and reemployment 10,706
of all teachers. The board of each such school district or 10,707
service center that authorizes compensation in addition to the 10,708
base salary stated in the teachers' salary schedule for the
performance of duties by a teacher that are in addition to the 10,709
teacher's regular teaching duties, shall enter into a 10,710
supplemental written contract with each teacher who is to perform 10,711
additional duties. Such supplemental written contracts shall be 10,712
limited contracts. Such written contracts and supplemental 10,713
written contracts shall set forth the teacher's duties and shall 10,714
specify the salaries and compensation to be paid for regular 10,715
teaching duties and additional teaching duties, respectively, 10,716
either or both of which may be increased but not diminished 10,717
during the term for which the contract is made, except as 10,718
provided in section 3319.12 of the Revised Code. 10,719
If a board adopts a motion or resolution to employ a 10,722
teacher under a limited or continuing contract and the teacher 10,723
accepts such employment, the failure of such parties to execute a 10,724
written contract shall not void such employment contract. 10,725
Teachers must be paid for all time lost when the schools in 10,727
which they are employed are closed due to an epidemic or other 10,728
public calamity, and for time lost due to illness or otherwise 10,729
for not less than five days annually as authorized by regulations 10,730
which each board shall adopt. 10,731
Contracts for the employment of teachers shall be of two 10,733
types, limited contracts and continuing contracts. 10,734
(A) A limited contract is: 10,736
(1) For a superintendent, a contract for such term as 10,738
authorized by section 3319.01 of the Revised Code; 10,739
227
(2) For an assistant superintendent, principal, assistant 10,741
principal, or other administrator, a contract for such term as 10,742
authorized by section 3319.02 of the Revised Code; 10,743
(3) For all other teachers, a contract for a term not to 10,745
exceed five years. 10,746
(B) A continuing contract is a contract that remains in 10,748
effect until the teacher resigns, elects to retire, or is retired 10,749
pursuant to FORMER section 3307.37 of the Revised Code, or until 10,750
it is terminated or suspended and shall be granted only to the 10,751
following: 10,752
(1) Any teacher holding a professional, permanent, or life 10,754
teacher's certificate; 10,755
(2) Any teacher holding a professional educator license 10,757
who has completed the applicable one of the following: 10,758
(a) If the teacher did not hold a masters degree at the 10,760
time of initially receiving a teacher's certificate under former 10,761
law or an educator license, thirty semester hours of coursework 10,762
in the area of licensure or in an area related to the teaching 10,763
field since the initial issuance of such certificate or license, 10,764
as specified in rules which the state board of education shall 10,765
adopt;
(b) If the teacher held a masters degree at the time of 10,767
initially receiving a teacher's certificate under former law or 10,768
an educator license, six semester hours of graduate coursework in 10,769
the area of licensure or in an area related to the teaching field 10,770
since the initial issuance of such certificate or license, as 10,771
specified in rules which the state board of education shall
adopt. 10,772
This section applies only to contracts entered into after 10,774
August 18, 1969.
Sec. 5101.181. (A) As used in this section and section 10,783
5101.182 of the Revised Code, "public assistance" includes, in 10,784
addition to Ohio works first; prevention, retention, and 10,785
contingency; medicaid; and disability assistance, general 10,787
228
assistance provided prior to July 17, 1995, under former Chapter 10,789
5113. of the Revised Code. 10,790
(B) As part of the procedure for the determination of 10,793
overpayment to a recipient of public assistance under Chapter 10,794
5107., 5108., 5111., or 5115. of the Revised Code, the director 10,795
of human services shall furnish quarterly the name and social 10,796
security number of each individual who receives public assistance 10,797
to the director of administrative services, the administrator of 10,798
the bureau of workers' compensation, and each of the state's 10,799
retirement boards. Within fourteen days after receiving the name 10,800
and social security number of an individual who receives public 10,801
assistance, the director of administrative services, 10,802
administrator, or board shall inform the auditor of state as to 10,803
whether such individual is receiving wages or benefits, the 10,804
amount of any wages or benefits being received, the social 10,805
security number, and the address of the individual. The director 10,806
of administrative services, administrator, boards, and any agent 10,807
or employee of those officials and boards shall comply with the 10,808
rules of the department of human services restricting the 10,809
disclosure of information regarding recipients of public
assistance. Any person who violates this provision shall 10,810
thereafter be disqualified from acting as an agent or employee or 10,811
in any other capacity under appointment or employment of any 10,812
state board, commission, or agency. 10,813
(C) The auditor of state may enter into a reciprocal 10,815
agreement with the director of human services or comparable 10,816
officer of any other state for the exchange of names, current or 10,817
most recent addresses, or social security numbers of persons 10,818
receiving public assistance under Title IV-A or under Title XIX 10,821
of the "Social Security Act," 49 Stat. 620 (1935), 42 U.S.C. 301, 10,822
as amended.
(D)(1) The auditor of state shall retain, for not less 10,824
than two years, at least one copy of all information received 10,826
under this section and sections 145.27, 742.41, 3307.21 3307.20, 10,827
229
3309.22, 4123.27, 5101.182, and 5505.04 of the Revised Code. The 10,829
auditor shall review the information to determine whether
overpayments were made to recipients of public assistance under 10,831
Chapters 5107., 5108., 5111., and 5115. of the Revised Code. The 10,832
auditor of state shall initiate action leading to prosecution, 10,833
where warranted, of recipients who received overpayments by 10,834
forwarding the name of each recipient who received overpayment, 10,835
together with other pertinent information, to the director of 10,836
human services and the attorney general, to the district director 10,837
of human services of the district through which public assistance 10,838
was received, and to the county director of human services and 10,839
county prosecutor of the county through which public assistance 10,840
was received.
(2) The auditor of state and the attorney general or their 10,842
designees may examine any records, whether in computer or printed 10,843
format, in the possession of the director of human services or 10,844
any county director of human services. They shall provide 10,845
safeguards which restrict access to such records to purposes 10,846
directly connected with an audit or investigation, prosecution, 10,847
or criminal or civil proceeding conducted in connection with the 10,848
administration of the programs and shall comply with the rules of 10,849
the department of human services restricting the disclosure of 10,850
information regarding recipients of public assistance. Any 10,851
person who violates this provision shall thereafter be 10,852
disqualified from acting as an agent or employee or in any other 10,853
capacity under appointment or employment of any state board, 10,854
commission, or agency. 10,855
(3) Costs incurred by the auditor of state in carrying out 10,857
the auditor of state's duties under this division shall be borne 10,859
by the auditor of state. 10,860
THIS IS AN INTERIM SECTION EFFECTIVE UNTIL JULY 1, 2000. 10,862
Sec. 5505.161. On receipt of notice from the public 10,871
employees retirement system, Ohio police and fire pension fund, 10,872
state teachers retirement system, or school employees retirement 10,873
230
system of the re-employment of a retirant, the state highway 10,874
patrol retirement system shall not pay, or if paid shall recover, 10,875
any amount to be forfeited by the retirant in accordance with 10,876
section 145.38, 742.26, 3307.381 3307.35, or 3309.341 of the 10,877
Revised Code.
Sec. 5505.177. THE STATE HIGHWAY PATROL RETIREMENT BOARD 10,879
MAY ESTABLISH AND MAINTAIN A QUALIFIED GOVERNMENTAL EXCESS 10,880
BENEFIT ARRANGEMENT THAT MEETS THE REQUIREMENTS OF DIVISION (m) 10,881
OF SECTION 415 OF THE "INTERNAL REVENUE CODE OF 1986," 100 STAT. 10,885
2085, 26 U.S.C.A. 415, AS AMENDED, AND ANY REGULATIONS ADOPTED 10,887
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 10,888
THAT PART OF A BENEFIT OTHERWISE PAYABLE UNDER THIS CHAPTER THAT 10,889
EXCEEDS THE LIMITS ESTABLISHED BY SECTION 415 OF THE "INTERNAL 10,890
REVENUE CODE OF 1986," AS AMENDED. 10,891
MEMBERS PARTICIPATING IN AN ARRANGEMENT ESTABLISHED UNDER 10,893
THIS SECTION SHALL NOT BE PERMITTED TO ELECT TO DEFER 10,894
COMPENSATION TO THE ARRANGEMENT. CONTRIBUTIONS TO AND BENEFITS 10,895
PAID UNDER AN ARRANGEMENT SHALL NOT BE PAYABLE FROM A TRUST THAT 10,896
IS PART OF THE SYSTEM UNLESS THE TRUST IS MAINTAINED SOLELY FOR 10,897
THE PURPOSE OF PROVIDING SUCH BENEFITS. 10,898
THE BOARD SHALL ADOPT RULES TO ADMINISTER AN ARRANGEMENT 10,900
ESTABLISHED UNDER THIS SECTION. 10,901
Sec. 5505.202. (A) As used in this section: 10,910
(1) "Full-time service" means full-time service as defined 10,912
by rule which shall be adopted by the state highway patrol 10,913
retirement board. 10,914
(2) "Qualified contributions" means contributions to the 10,916
public employees retirement system, state teachers retirement 10,917
system, or school employees retirement system attributable to 10,918
full-time service or purchase of credit for service in the armed 10,919
forces of the United States. 10,920
(B)(1) For purposes of computing the pension payable under 10,923
231
section 5505.17 or 5505.18 of the Revised Code, a member of the 10,924
state highway patrol retirement system who is a former member of 10,925
the public employees retirement system, school employees 10,926
retirement system, or state teachers retirement system and has 10,928
received a return of contributions from the former retirement 10,930
system shall be given full credit for service credit earned for 10,931
full-time service as a member of the former retirement system or 10,932
purchased for service in the armed forces of the United States 10,935
if, for each year of service credit, the state highway patrol 10,936
retirement system receives the sum of the following: 10,937
(a) An amount, which shall be paid by the member to the 10,941
member's credit in the employees savings fund, equal to the 10,943
amount received by the member from the former retirement system 10,945
for that year that is attributable to contributions made for 10,947
full-time service and payments for credit purchased for service 10,948
in the armed forces of the United States, plus interest on that 10,950
amount from the date payment was made to the member by the former 10,952
retirement system to the date the member makes the payment to the 10,954
state highway patrol retirement system;
(b) Interest, which shall be transferred by the former 10,957
retirement system, on the amount received by the member that is 10,958
attributable to the year of service from the last day of the year 10,959
for which the service credit was earned or in which the military
service credit was purchased or obtained to the date the amount 10,960
was paid to the member; 10,961
(c) An amount, which shall be transferred by the former 10,963
retirement system, equal to the lesser of the employer's 10,964
qualified contributions to the former retirement system for the 10,965
year of service or the amount that would have been contributed by 10,967
the employer for the year of service had the member been a member 10,968
of the state highway patrol retirement system, with interest on 10,969
that amount from the last day of the year for which the service 10,971
credit was earned or in which military service credit was 10,972
purchased or obtained to the date the transfer is made. 10,973
232
On receipt of payment from the member, the state highway 10,976
patrol retirement system shall notify the former retirement 10,977
system, which, on receipt of the notice, shall make the transfer 10,978
required by this division. Interest shall be determined in 10,979
accordance with division (E) of this section. 10,980
(2) For purposes of computing the pension payable under 10,982
section 5505.17 or 5505.18 of the Revised Code, a member of the 10,985
state highway patrol retirement system who has contributions on 10,987
deposit with the public employees retirement system, school 10,988
employees retirement system, or state teachers retirement system 10,989
shall be given full credit for service credit earned for 10,990
full-time service as a member of that retirement system or 10,991
purchased for service in the armed forces of the United States 10,994
if, for each year of service, the public employees retirement 10,996
system, school employees retirement system, or state teachers 10,997
retirement system transfers to the state highway patrol 10,998
retirement system the sum of the following: 10,999
(a) An amount equal to the member's qualified 11,002
contributions;
(b) An amount equal to the lesser of the employer's 11,004
qualified contributions to the public employees retirement 11,005
system, school employees retirement system, or state teachers 11,006
retirement system or the amount that would have been contributed 11,008
by the employer for the full-time service had the member been a 11,009
member of the state highway patrol retirement system; 11,010
(c) Interest, determined in accordance with division (E) 11,013
of this section, on the amounts specified in divisions (B)(2)(a) 11,014
and (b) of this section from the last day of the year for which 11,017
the service credit was earned or in which military service credit 11,018
was purchased or obtained to the date the transfer is made. 11,019
On receipt of a request from the member, the appropriate 11,022
retirement system shall make the transfer.
(3) For purposes of computing the pension payable under 11,024
section 5505.17 or 5505.18 of the revised Code, a member of the 11,027
233
state highway patrol retirement system who has contributions on 11,028
deposit with the Cincinnati retirement system shall be given full 11,030
credit for service credit earned for full-time service as a 11,031
member of that retirement system or purchased from the retirement 11,032
system for service in the armed forces of the United States if, 11,034
for each year of service credit, the state highway patrol 11,035
retirement system receives the sum of the following: 11,036
(a) An amount, which shall be paid by the member to the 11,039
member's credit in the employees savings fund, equal to the 11,040
amount withdrawn from the Cincinnati retirement system that is 11,042
attributable to that year of service, with interest on that
amount determined in accordance with division (I) of this section 11,044
from the date of withdrawal to the date of payment; 11,045
(b) Interest, which shall be paid either by the member or 11,048
the Cincinnati retirement system, on the amount withdrawn from 11,049
the Cincinnati retirement system that is attributable to the year 11,051
of service from the last day of the year for which the service
credit was earned or in which the military service credit was 11,052
purchased or obtained to the date the amount was withdrawn; 11,054
(c) An amount, which shall be paid either by the member or 11,057
the Cincinnati retirement system, equal to the lesser of the 11,059
amount contributed by the employer to the Cincinnati retirement 11,060
system for the year of service or the amount that would have been 11,062
contributed by the employer for the year of service had the
member been a member of the state highway patrol retirement 11,063
system, with interest on that amount from the last day of the 11,066
year for which the service credit was earned or in which military 11,067
service was purchased or obtained to the date the payment is 11,068
made.
(C) If a member who is not a current contributor and has 11,070
not received a refund of accumulated contributions elects to 11,073
receive credit under section 145.295, 3307.412 3307.761, or 11,074
3309.351 of the Revised Code for service for which the member 11,076
contributed to the state highway patrol retirement system and 11,078
234
credit purchased for service in the armed forces of the United 11,079
States, the state highway patrol retirement system shall transfer 11,080
to the appropriate retirement system the amount specified in 11,082
division (A) of section 145.295, division (A) of section 3307.412 11,083
3307.761, or division (A) of section 3309.351 of the Revised 11,085
Code. 11,086
(D)(1) A member is ineligible to purchase or otherwise 11,088
receive credit under this section for service that is used in the 11,089
calculation of any retirement benefit currently being paid or 11,090
that is payable in the future to the member, or service rendered 11,091
concurrently with any other period for which service credit has 11,092
already been granted. 11,093
(2) Except as provided under division (D)(3) of this 11,095
section, no service credit purchased under this section or 11,096
received as a result of a transfer requested under this section 11,097
shall be used to determine any member's eligibility for 11,098
retirement under sections 5505.16 and 5505.17 of the Revised 11,099
Code.
(3) Service credit obtained under this section by a member 11,101
for credit purchased for service in the armed forces of the 11,102
United States or for service as a state highway patrol cadet 11,104
attending training school pursuant to section 5503.05 of the 11,105
Revised Code shall be used to determine the member's eligibility 11,107
for retirement under sections 5505.16 and 5505.17 of the Revised 11,108
Code.
(4) Subject to rules of the state highway patrol 11,110
retirement system, a member may choose to purchase only part of 11,111
the credit the member is eligible to purchase under division 11,112
(B)(1) or (3) of this section. 11,114
(E) At the request of the state highway patrol retirement 11,116
system, the public employees retirement system, school employees 11,117
retirement system, state teachers retirement system, or 11,118
Cincinnati retirement system shall certify to the state highway 11,120
patrol retirement system a copy of the records of service, 11,121
235
salary, and contributions of a member who seeks service credit 11,122
under this section.
Interest charged under this section shall be calculated 11,125
separately for each year of service credit at the lesser of the 11,126
actuarial assumption rate for that year of the state highway 11,127
patrol retirement system or of the retirement system in which the 11,128
credit was earned. The interest shall be compounded annually. 11,129
The state highway patrol retirement system board may adopt 11,131
rules establishing procedures for the purchase of service credit 11,133
or the transfer of contributions under this section. 11,134
Section 2. That existing sections 145.28, 145.293, 11,136
145.301, 145.311, 145.312, 145.35, 145.37, 145.38, 145.45, 11,137
171.04, 742.26, 742.379, 2329.66, 3305.01, 3305.06, 3307.01, 11,138
3307.013, 3307.02, 3307.021, 3307.022, 3307.05, 3307.07, 3307.08, 11,139
3307.09, 3307.10, 3307.11, 3307.111, 3307.14, 3307.15, 3307.19, 11,141
3307.20, 3307.201, 3307.21, 3307.22, 3307.26, 3307.27, 3307.28, 11,142
3307.281, 3307.282, 3307.283, 3307.29, 3307.30, 3307.31, 11,144
3307.311, 3307.32, 3307.33, 3307.35, 3307.36, 3307.371, 3307.38, 11,145
3307.381, 3307.382, 3307.383, 3307.384, 3307.39, 3307.40, 11,146
3307.401, 3307.402, 3307.403, 3307.404, 3307.405, 3307.406, 11,147
3307.407, 3307.408, 3307.409, 3307.4010, 3307.4011, 3307.4012, 11,148
3307.4013, 3307.41, 3307.411, 3307.412, 3307.42, 3307.421, 11,149
3307.43, 3307.431, 3307.44, 3307.46, 3307.47, 3307.48, 3307.49, 11,150
3307.50, 3307.51, 3307.511, 3307.512, 3307.515, 3307.53, 3307.56, 11,151
3307.58, 3307.59, 3307.60, 3307.61, 3307.62, 3307.63, 3307.64, 11,152
3307.65, 3307.651, 3307.66, 3307.68, 3307.69, 3307.70, 3307.71, 11,153
3307.711, 3307.712, 3307.72, 3307.73, 3307.74, 3307.741, 3307.75, 11,154
3307.751, 3307.78, 3307.80, 3309.021, 3309.261, 3309.262, 11,155
3309.301, 3309.31, 3309.341, 3309.35, 3309.39, 3309.45, 3313.975, 11,156
3317.011, 3317.13, 3319.08, 5101.181, 5505.161, and 5505.202 and 11,157
sections 3307.012, 3307.34, 3307.37, 3307.513, and 3307.514 of 11,158
the Revised Code are hereby repealed.
Section 3. That sections 3307.21 and 5101.181 of the 11,160
Revised Code, as amended by H.B. 471 of the 123rd General 11,161
236
Assembly, be amended and that section 3307.21 (3307.20) of the 11,162
Revised Code, as amended by H.B. 471 of the 123rd General 11,163
Assembly, be amended for the purpose of adopting a new section 11,164
number as indicated in parentheses, to read as follows: 11,165
Sec. 3307.21 3307.20. (A) The treasurer of state shall 11,174
furnish annually to the state teachers retirement board a sworn 11,176
statement of the amount of the funds in the treasurer's custody 11,177
belonging to the state teachers retirement system. 11,178
(B)(1) As used in this division, "personal SECTION: 11,180
(1) "PERSONAL history record" means information maintained 11,183
by the STATE TEACHERS RETIREMENT board on a member, former 11,184
member, contributor, former contributor, retirant, or beneficiary 11,185
that includes the address, telephone number, social security 11,186
number, record of contributions, correspondence with the STATE 11,187
TEACHERS RETIREMENT system, or other information the board 11,189
determines to be confidential.
(2) "RETIRANT" HAS THE SAME MEANING AS IN SECTION 3307.50 11,191
OF THE REVISED CODE.
(B) The records of the board shall be open to public 11,193
inspection, except for the following, which shall be excluded, 11,194
except with the written authorization of the individual 11,195
concerned: 11,196
(a)(1) The individual's personal records provided for in 11,198
section 3307.29 3307.23 of the Revised Code; 11,199
(b)(2) The individual's personal history record; 11,201
(c)(3) Any information identifying, by name and address, 11,203
the amount of a monthly allowance or benefit paid to the 11,204
individual.
(C) All medical reports and recommendations under sections 11,206
3307.42 3307.62, 3307.44 3307.64, and 3307.49 3307.66 of the 11,208
Revised Code are privileged, except that copies of such medical 11,209
reports or recommendations shall be made available to the 11,210
personal physician, attorney, or authorized agent of the 11,211
individual concerned upon written release received from the 11,212
237
individual or the individual's agent, or, when necessary for the 11,213
proper administration of the fund, to the board assigned 11,214
physician.
(D) Any person who is a member or contributor of the 11,216
system shall be furnished, on written request, with a statement 11,218
of the amount to the credit of the person's account. The board 11,219
need not answer more than one request of a person in any one 11,220
year.
(E) Notwithstanding the exceptions to public inspection in 11,222
division (B)(2) of this section, the board may furnish the 11,223
following information: 11,224
(1) If a member, former member, retirant, contributor, or 11,226
former contributor is subject to an order issued under section 11,227
2907.15 of the Revised Code or is convicted of or pleads guilty 11,228
to a violation of section 2921.41 of the Revised Code, on written 11,229
request of a prosecutor as defined in section 2935.01 of the 11,230
Revised Code, the board shall furnish to the prosecutor the 11,231
information requested from the individual's personal history 11,232
record. 11,233
(2) Pursuant to a court or administrative order issued 11,235
under section 3111.23 or 3113.21 of the Revised Code, the board 11,236
shall furnish to a court or child support enforcement agency the 11,237
information required under that section. 11,238
(3) At the written request of any person, the board shall 11,240
provide to the person a list of the names and addresses of 11,241
members, former members, retirants, contributors, former 11,242
contributors, or beneficiaries. The costs of compiling, copying, 11,243
and mailing the list shall be paid by such person. 11,244
(4) Within fourteen days after receiving from the director 11,246
of job and family services a list of the names and social 11,247
security numbers of recipients of public assistance pursuant to 11,248
section 5101.181 of the Revised Code, the board shall inform the 11,249
auditor of state of the name, current or most recent employer 11,250
address, and social security number of each member whose name and 11,251
238
social security number are the same as that of a person whose 11,252
name or social security number was submitted by the director. 11,253
The board and its employees shall, except for purposes of 11,254
furnishing the auditor of state with information required by this 11,255
section, preserve the confidentiality of recipients of public 11,256
assistance in compliance with division (A) of section 5101.181 of 11,257
the Revised Code.
(F) A statement that contains information obtained from 11,259
the system's records that is signed by an officer of the 11,260
retirement system and to which the system's official seal is 11,261
affixed, or copies of the system's records to which the signature 11,262
and seal are attached, shall be received as true copies of the 11,263
system's records in any court or before any officer of this 11,264
state. 11,265
Sec. 5101.181. (A) As used in this section and section 11,274
5101.182 of the Revised Code, "public assistance" includes, in 11,275
addition to Ohio works first; prevention, retention, and 11,276
contingency; medicaid; and disability assistance, general 11,278
assistance provided prior to July 17, 1995, under former Chapter 11,280
5113. of the Revised Code. 11,281
(B) As part of the procedure for the determination of 11,284
overpayment to a recipient of public assistance under Chapter 11,285
5107., 5108., 5111., or 5115. of the Revised Code, the director 11,286
of job and family services shall furnish quarterly the name and 11,287
social security number of each individual who receives public
assistance to the director of administrative services, the 11,288
administrator of the bureau of workers' compensation, and each of 11,289
the state's retirement boards. Within fourteen days after 11,290
receiving the name and social security number of an individual 11,291
who receives public assistance, the director of administrative 11,292
services, administrator, or board shall inform the auditor of 11,293
state as to whether such individual is receiving wages or 11,294
benefits, the amount of any wages or benefits being received, the 11,295
social security number, and the address of the individual. The 11,296
239
director of administrative services, administrator, boards, and 11,297
any agent or employee of those officials and boards shall comply 11,298
with the rules of the director of job and family services 11,300
restricting the disclosure of information regarding recipients of 11,301
public assistance. Any person who violates this provision shall 11,302
thereafter be disqualified from acting as an agent or employee or 11,303
in any other capacity under appointment or employment of any 11,304
state board, commission, or agency. 11,305
(C) The auditor of state may enter into a reciprocal 11,307
agreement with the director of job and family services or 11,308
comparable officer of any other state for the exchange of names, 11,310
current or most recent addresses, or social security numbers of 11,311
persons receiving public assistance under Title IV-A or under 11,313
Title XIX of the "Social Security Act," 49 Stat. 620 (1935), 42 11,314
U.S.C. 301, as amended. 11,315
(D)(1) The auditor of state shall retain, for not less 11,317
than two years, at least one copy of all information received 11,319
under this section and sections 145.27, 742.41, 3307.21 3307.20, 11,320
3309.22, 4123.27, 5101.182, and 5505.04 of the Revised Code. The 11,322
auditor shall review the information to determine whether
overpayments were made to recipients of public assistance under 11,324
Chapters 5107., 5108., 5111., and 5115. of the Revised Code. The 11,325
auditor of state shall initiate action leading to prosecution, 11,326
where warranted, of recipients who received overpayments by 11,327
forwarding the name of each recipient who received overpayment, 11,328
together with other pertinent information, to the director of job 11,329
and family services and the attorney general, to the district 11,331
director of job and family services of the district through which 11,333
public assistance was received, and to the county director of job 11,334
and family services and county prosecutor of the county through 11,336
which public assistance was received.
(2) The auditor of state and the attorney general or their 11,338
designees may examine any records, whether in computer or printed 11,339
format, in the possession of the director of job and family 11,341
240
services or any county director of job and family services. They 11,342
shall provide safeguards which restrict access to such records to 11,344
purposes directly connected with an audit or investigation, 11,345
prosecution, or criminal or civil proceeding conducted in 11,346
connection with the administration of the programs and shall 11,347
comply with the rules of the director of job and family services 11,349
restricting the disclosure of information regarding recipients of 11,350
public assistance. Any person who violates this provision shall 11,351
thereafter be disqualified from acting as an agent or employee or 11,352
in any other capacity under appointment or employment of any 11,353
state board, commission, or agency. 11,354
(3) Costs incurred by the auditor of state in carrying out 11,356
the auditor of state's duties under this division shall be borne 11,358
by the auditor of state. 11,359
Section 4. That all existing versions of sections 3307.21 11,361
and 5101.181 of the Revised Code are hereby repealed. 11,362
Section 5. Sections 3 and 4 of this act shall take effect 11,364
on July 1, 2000.
Section 6. The State Teachers Retirement Board shall 11,366
recalculate under section 3307.58, 3307.59, or 3307.631 of the 11,367
Revised Code, as amended by this act, a benefit that is payable 11,368
under those sections or section 3307.60 of the Revised Code and 11,369
became effective on or after July 1, 1999, but before the 11,370
effective date of this act. If the recalculated benefit is 11,371
greater than the recipient's benefit prior to the recalculation, 11,372
the board shall do both of the following: 11,373
(A) Pay the recalculated benefit; 11,375
(B) Make a one-time payment to the recipient equal to the 11,377
difference between the benefits paid to the recipient between 11,378
July 1, 1999, and the date of the payment and the increased 11,379
benefits that would have been paid to the recipient had the 11,380
amendments to sections 3307.58, 3307.59, and 3307.631 of the 11,381
Revised Code gone into effect on July 1, 1999. 11,382
Section 7. As used in this section, "eligible recipient" 11,384
241
has the same meaning as in section 3307.6913 of the Revised Code. 11,385
The State Teachers Retirement Board shall make a one-time 11,387
payment to each eligible recipient whose benefit is increased 11,388
under section 3307.6913 or 3307.6914 of the Revised Code, as 11,389
enacted by this act. The payment shall equal the difference 11,390
between the benefits paid to the recipient between July 1, 1999, 11,391
and the date of the payment and the increased benefits that would 11,392
have been paid to the recipient had those sections gone into 11,393
effect on July 1, 1999.
Section 8. Section 3307.21 of the Revised Code is 11,395
presented in Section 1 of this act as a composite of the section 11,397
as amended by both Am. Sub. H.B. 627 and Am. Sub. H.B. 668 of the 11,398
121st General Assembly, with the new language of neither of the 11,400
acts shown in capital letters. This is in recognition of the 11,401
principle stated in division (B) of section 1.52 of the Revised 11,402
Code that such amendments are to be harmonized where not 11,403
substantively irreconcilable and constitutes a legislative 11,404
finding that such is the resulting version in effect prior to the 11,405
effective date of this act.