As Introduced 1
123rd General Assembly 4
Regular Session S. B. No. 270 5
1999-2000 6
SENATOR DRAKE 8
_________________________________________________________________ 10
A B I L L
To amend sections 3309.03, 3309.15, 3309.36, 12
3309.374, 3309.381, 3309.40, 3309.401, 3309.45, 13
and 3309.69 and to enact section 3309.3712 of the 14
Revised Code to increase certain benefits paid by
the School Employees Retirement System (SERS), to 15
increase the SERS reimbursement for insurance 16
coverage under Medicare Part B, to provide that 17
the annual cost of living increases paid to SERS
retirants and beneficiaries will be three per 18
cent and to make other changes to the law 19
governing SERS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 21
Section 1. That sections 3309.03, 3309.15, 3309.36, 23
3309.374, 3309.381, 3309.40, 3309.401, 3309.45, and 3309.69 be 24
amended and section 3309.3712 of the Revised Code be enacted to 25
read as follows: 26
Sec. 3309.03. A school employees retirement system is 35
hereby established for the employees as defined in section 36
3309.01 of the Revised Code, which shall include the several 37
funds created and placed under the management of the school 38
employees retirement board for the payment of retirement 39
allowances and other benefits provided in Chapter 3309. of the 40
Revised Code. The board may sue and be sued, plead and be 41
impleaded, contract and be contracted with, and do all things 42
necessary to carry out Chapter 3309. of the Revised Code. All of 43
its business shall be transacted, all of its funds invested, all 44
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warrants for money drawn and payments made, and all of its cash, 45
securities, and other property shall be held in the name of the 48
board, or in the name of its nominee, provided that nominees are 49
authorized by retirement board resolution for the purpose of
facilitating the ownership and transfer of investments SUCH 50
PURPOSES. 51
Sec. 3309.15. (A) The members of the school employees 60
retirement board shall be the trustees of the funds created by 61
section 3309.60 of the Revised Code. The board shall have full 62
power to invest the funds. The board and other fiduciaries shall 64
discharge their duties with respect to the funds solely in the 65
interest of the participants and beneficiaries; for the exclusive 66
purpose of providing benefits to participants and their
beneficiaries and defraying reasonable expenses of administering 67
the school employees retirement system; with care, skill, 68
prudence, and diligence under the circumstances then prevailing 70
that a prudent person acting in a like capacity and familiar with 71
such matters would use in the conduct of an enterprise of a like 72
character and with like aims; and by diversifying the investments 73
of the system so as to minimize the risk of large losses, unless 74
under the circumstances it is clearly prudent not to do so. 75
To facilitate investment of the funds, the THE board may 77
establish a partnership, trust, limited liability company, 79
corporation, including a corporation exempt from taxation under 80
the Internal Revenue Code, 100 Stat. 2085, 26 U.S.C.A. 1, as 82
amended, or any other legal entity authorized to transact 83
business in this state.
(B) In exercising its fiduciary responsibility with 85
respect to the investment of the funds, it shall be the intent of 86
the board to give consideration to investments that enhance the 87
general welfare of the state and its citizens where the 88
investments offer quality, return, and safety comparable to other 90
investments currently available to the board. In fulfilling this 91
intent, equal consideration shall also be given to investments 92
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otherwise qualifying under this section that involve minority 93
owned and controlled firms and firms owned and controlled by 94
women, either alone or in joint venture with other firms. 95
The board shall adopt, in regular meeting, policies, 97
objectives, or criteria for the operation of the investment 99
program that include asset allocation targets and ranges, risk 100
factors, asset class benchmarks, time horizons, total return 101
objectives, and performance evaluation guidelines. In adopting 102
policies and criteria for the selection of agents with whom the 103
board may contract for the administration of the funds, the board 104
shall give equal consideration to minority owned and controlled 105
firms, firms owned and controlled by women, and ventures 106
involving minority owned and controlled firms and firms owned and 107
controlled by women that otherwise meet the policies and criteria 108
established by the board. Amendments and additions to the 109
policies and criteria shall be adopted in regular meeting. The 110
board shall publish its policies, objectives, and criteria under 112
this provision no less often than annually and shall make copies 114
available to interested parties.
When reporting on the performance of investments, the board 116
shall comply with the performance presentation standards 117
established by the association for investment management and 118
research.
(C) All evidences of title of investments purchased by the 120
board under this section shall be delivered to the treasurer of 123
state, who is hereby designated as custodian thereof, or to the 124
treasurer of state's authorized agent, and the treasurer of state 125
or the agent shall collect principal, interest, dividends, and 126
distributions that become due and payable and place the same when 127
so collected into the custodial funds. Evidences of title of the 128
investments may be deposited by the treasurer of state for 130
safekeeping with an authorized agent, selected by the treasurer 131
of state, who is a qualified trustee under section 135.18 of the 132
Revised Code. The treasurer of state shall pay for the 133
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investments purchased by the board pending receipt of the
evidence of title of the investments by the treasurer of state or 135
to the treasurer of state's authorized agent, and on receipt of 137
written or electronic instructions from the board or the board's 138
designated agent authorizing the purchase. The board may sell 139
any investments held by the board, and the treasurer of state or 140
the treasurer of state's authorized agent shall accept payment 141
from the purchaser and deliver evidence of title of the 142
investment to the purchaser on receipt of written or electronic 143
instructions from the board or the board's designated agent 144
authorizing the sale, and pending receipt of the moneys for the 145
investments. The amount received shall be placed into the
custodial funds. The board and the treasurer of state may enter 147
into agreements to establish procedures for the purchase and sale 148
of investments under this division and the custody of the
investment.
(D) No purchase or sale of any investment shall be made 151
under this section except as authorized by the school employees 152
retirement board.
(E) Any statement of financial position distributed by the 154
board shall include the fair value, as of the statement date, of 157
all investments held by the board under this section.
Sec. 3309.36. (A) A member retiring on service retirement 166
shall be granted a retirement allowance consisting of the lesser 167
of the sum of the following amounts or the limit established by 168
section 415 of the "Internal Revenue Code of 1986," 100 Stat. 169
2085, 26 U.S.C.A. 415, as amended: 170
(1) An annuity having a reserve equal to the amount of the 172
employee's accumulated contributions at that time; 173
(2) A pension of equivalent amount; 175
(3) An additional pension of forty dollars multiplied by 177
the number of years of such prior service credit; 178
(4) For members who have ten or more years of service 180
credit accumulated prior to October 1, 1956, a basic annual 181
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pension equal to one hundred eighty dollars, except that such 182
basic annual pension shall not exceed the sum of the total annual 183
benefits provided by divisions (A)(1), (2), and (3) of this 185
section.
(B)(1) When a member retires on service retirement, the 187
member's allowance when computed as an annual single lifetime 189
allowance as provided in divisions (A)(1), (2), (3), and (4) of 191
this section and section 3309.38 of the Revised Code, based upon 192
attained age sixty-five or thirty years of total service credit, 193
shall be not less than the greater of the amounts determined by 195
multiplying the member's total service credit by the following: 197
(a) Eighty-six dollars; 199
(b) Two and one-tenth TWO-TENTHS per cent of the member's 202
final average salary for each of the first thirty years of 203
service credit or fraction thereof plus two and one-half per cent 204
of the member's final average salary for each subsequent year of
service credit or fraction thereof. 205
(2) The annual single lifetime allowance determined under 209
division (B)(1) of this section shall be adjusted by the greater 210
percentage shown in the following schedule opposite the member's 212
attained age or years of Ohio service credit: 213
Years of Per Cent 215
Attained or Ohio Service of 217
Age Credit Base Amount 218
58 25 75% 221
59 26 80 224
60 27 85 227
61 88 230
28 90 233
62 91 236
63 94 239
29 95 242
64 97 245
65 30 or more 100 248
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Members shall vest the right to a benefit in accordance with the 251
following schedule, based on the member's attained age by 252
September 1, 1976: 253
Per Cent 255
Attained of 256
Age Base Amount 257
66 102 258
67 104 259
68 106 260
69 108 261
70 or more 110 262
(3) The annual single lifetime allowance which a retirant 264
shall receive under this division shall not exceed the lesser of 265
ninety ONE HUNDRED per cent of the member's final average salary 266
or the limit established by section 415 of the "Internal Revenue 269
Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended. 270
(C) Retirement allowances determined under this section 272
shall be paid as provided in section 3309.46 of the Revised Code. 273
Sec. 3309.374. (A) Beginning April 1, 1971, and each year 282
thereafter, the board of the THE school employees retirement 283
system shall determine the average percentage change in the 285
consumer price index prepared by the United States bureau of 286
labor statistics (U.S. City Average for Urban Wage Earners and 287
Clerical Workers: "All Items 1982-84=100") for the 288
twelve-calendar-month period prior to the first day of January 290
over the next preceding twelve-calendar-month period, as reported 291
by the bureau.
Upon a determination by the board in any year that the 293
change in the consumer price index is an increase or that the 295
change plus the accumulation described in division (B) of this 296
section is an increase, the board shall ANNUALLY increase each 297
allowance, pension, or benefit payable under this chapter by a 298
percentage equal to the percentage increase in the consumer price 299
index or to that increase plus the accumulation, except that the 300
7
increase shall not exceed three per cent and, EXCEPT THAT no 301
allowance, pension, or benefit shall exceed the limit established 303
by section 415 of the "Internal Revenue Code of 1986," 100 Stat. 304
2085, 26 U.S.C.A. 415, as amended. 305
The first increase is payable to all persons becoming 307
eligible after June 30, 1971, upon such persons receiving an 308
allowance, pension, or benefit for twelve months. 309
The increased amount is payable for the ensuing 311
twelve-month period or until the next increase is granted under 312
this section, whichever is later. Subsequent increases shall be 313
determined from the date of the first increase paid to the former 314
member in the case of an allowance being paid a beneficiary under 315
an option, or from the date of the first increase to the survivor 316
first receiving an allowance or benefit in the case of an 317
allowance or benefit being paid to the subsequent survivors of 318
the former member. 319
The date of the first increase under this section becomes 322
the anniversary date for any future increases.
The allowance or benefit used in the first calculation of 324
an increase under this section shall remain as the base for all 325
future increases, unless a new base is established. 326
(B) Any percentage of change in the consumer price index 328
in any year that is in excess of three per cent shall be 329
accumulated and used to determine increases under this section in 330
subsequent years. Any percentage of change in the consumer price 331
index accumulated by an eligible person prior to the effective 332
date of this amendment shall be used in determining any future 334
increases under this section.
(C) The board shall make all rules necessary to carry out 336
this section. 337
Sec. 3309.3712. THE SCHOOL EMPLOYEES RETIREMENT BOARD MAY 339
ESTABLISH AND MAINTAIN A QUALIFIED GOVERNMENTAL EXCESS BENEFIT 340
ARRANGEMENT THAT MEETS THE REQUIREMENTS OF DIVISION (m) OF 341
SECTION 415 OF THE "INTERNAL REVENUE CODE OF 1986," 100 STAT. 345
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2085, 26 U.S.C.A. 415, AS AMENDED, AND ANY REGULATIONS ADOPTED 347
THEREUNDER. IF ESTABLISHED, THE ARRANGEMENT SHALL BE A SEPARATE
PORTION OF THE SCHOOL EMPLOYEES RETIREMENT SYSTEM AND BE
MAINTAINED SOLELY FOR THE PURPOSE OF PROVIDING TO RETIRED MEMBERS 348
THAT PART OF A BENEFIT OTHERWISE PAYABLE UNDER THIS CHAPTER THAT 349
EXCEEDS THE LIMITS ESTABLISHED BY SECTION 415 OF THE "INTERNAL 350
REVENUE CODE OF 1986," AS AMENDED. 351
MEMBERS PARTICIPATING IN AN ARRANGEMENT ESTABLISHED UNDER 353
THIS SECTION SHALL NOT BE PERMITTED TO ELECT TO DEFER 354
COMPENSATION TO THE ARRANGEMENT. CONTRIBUTIONS TO AND BENEFITS 355
PAID UNDER AN ARRANGEMENT SHALL NOT BE PAYABLE FROM A TRUST THAT 356
IS PART OF THE SYSTEM UNLESS THE TRUST IS MAINTAINED SOLELY FOR 357
THE PURPOSE OF PROVIDING SUCH BENEFITS. 358
THE BOARD SHALL ADOPT RULES TO ADMINISTER AN ARRANGEMENT 360
ESTABLISHED UNDER THIS SECTION. 361
Sec. 3309.381. (A) A recipient of a disability allowance 370
under section 3309.401 of the Revised Code who is subject to 371
division (C)(3) of that section may make application for service 372
retirement under this section. Retirement shall be effective on 373
the first day of the first month following the last day for which 374
the disability allowance is paid. 375
(B) The annual allowance payable under this section shall 377
consist of the sum of the amounts determined under divisions 378
(B)(1) and (2) of this section: 379
(1) The greater of the following: 381
(a) An allowance calculated as provided in section 3309.36 383
of the Revised Code, excluding any period during which the 384
applicant received a disability benefit under section 3309.401 of 385
the Revised Code; 386
(b) An allowance calculated by multiplying the applicant's 388
total service credit, including service credit for the last 389
continuous period during which he THE APPLICANT received a 390
disability benefit under section 3309.401 of the Revised Code, by 392
two and one-tenth TWO-TENTHS per cent of his THE APPLICANT'S 394
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final average salary, except that the allowance shall not exceed 396
forty-five per cent of the applicant's final average salary. 397
(2) An amount equal to the additional allowance the 399
recipient would receive under section 3309.374 of the Revised 400
Code, plus any other additional amount he THE RECIPIENT would 401
receive under this chapter, had he THE RECIPIENT retired under 403
section 3309.36 of the Revised Code effective on the effective 405
date of his THE RECIPIENT'S most recent continuous period of 407
receipt of a disability benefit under section 3309.401 of the 408
Revised Code.
(C) The allowance calculated under division (B) of this 410
section, exclusive of any amount added under division (B)(2) of 411
this section based on section 3309.374 of the Revised Code, shall 412
be the base for all future additional allowances under section 413
3309.374 of the Revised Code. 414
The anniversary date for future additional allowances under 416
section 3309.374 of the Revised Code shall be the effective date 417
of the recipient's most recent continuous period of receipt of a 418
disability benefit under section 3309.401 of the Revised Code. 419
(D) The retirement allowance determined under this section 421
shall be paid as provided in section 3309.46 of the Revised Code. 422
Sec. 3309.40. A member who has elected disability coverage 431
under this section, has not attained age sixty, and is determined 432
by the school employees retirement board under section 3309.39 of 433
the Revised Code to qualify for a disability beenfit BENEFIT 434
shall be retired on disability under this section. 436
Upon disability retirement, a member shall receive an 438
annual amount that shall consist of: 439
(A) An annuity having a reserve equal to the amount of the 441
member's accumulated contributions; 442
(B) A pension that shall be the difference between his THE 444
MEMBER'S annuity and an annual amount determined by multiplying 446
the total service credit of such member, and in addition thereto, 447
the number of years and fractions thereof between the effective 448
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date of his THE MEMBER'S disability retirement and attained age 449
sixty, assuming continuous service, by eighty-six dollars, or by 451
two and one-tenth TWO-TENTHS per cent of his THE MEMBER'S final 453
average salary, whichever is greater. 455
Where the member is not receiving a disability benefit 457
under section 3309.35 of the Revised Code and is receiving a 458
disability benefit from either the public employees retirement 459
system or the state teachers retirement system, then such member 460
shall not be eligible for service credit based upon the number of 461
years and fractions thereof between the effective date of 462
disability and attained age sixty as provided for in this 463
division. 464
Such disability retirement shall not be less than thirty 466
per cent nor more than seventy-five per cent of the member's 467
final average salary, except that it shall not exceed any limit 468
to which the retirement system is subject under section 415 of 469
the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 470
415, as amended. 471
The school employees retirement board is the final 473
authority in determining the eligibility of a member for such 474
form of retirement. 475
Sec. 3309.401. (A) A member with disability coverage 484
under this section who is determined by the school employees 485
retirement board under section 3309.39 of the Revised Code to 486
qualify for a disability benefit shall receive a disability 487
allowance under this section. The allowance shall be an annual 488
amount equal to the greater of the following: 489
(1) Forty-five per cent of the member's final average 491
salary; 492
(2) The member's total service credit multiplied by two 494
and one-tenth TWO-TENTHS per cent of his THE MEMBER'S final 496
average salary, not exceeding sixty per cent of his THE MEMBER'S 498
final average salary.
(B) Sufficient reserves for payment of the disability 500
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allowance shall be transferred to the annuity and pension reserve 501
fund from the employers' accumulation fund. The accumulated 502
contributions of the member shall remain in the employees' 503
savings fund. No part of the allowance paid under this section 504
shall be charged against the member's accumulated contributions. 505
(C) A disability allowance paid under this section shall 507
terminate at the earliest of the following: 508
(1) The effective date of service retirement under section 510
3309.35, 3309.36, or 3309.38 of the Revised Code; 511
(2) The date the allowance is terminated under section 513
3309.41 of the Revised Code; 514
(3) The later of the last day of the month in which the 516
recipient attains age sixty-five, or the last day of the month in 517
which the benefit period ends as follows: 518
Attained Age at Effective Date 520
of Disability Allowance Benefit Period 522
60 or 61 60 months 524
62 or 63 48 months 525
64 or 65 36 months 526
66, 67, or 68 24 months 527
69 or older 12 months 528
Sec. 3309.45. Except as provided in division (C)(1) of 538
this section, in lieu of accepting the payment of the accumulated 540
account of a member who dies before service retirement, the 541
beneficiary, as determined in section 3309.44 of the Revised 542
Code, may elect to forfeit the accumulated account and to 543
substitute certain other benefits either under division (A) or 544
(B) of this section.
(A) If a deceased member was eligible for a service 546
retirement allowance as provided in section 3309.36, 3309.38, or 547
3309.381 of the Revised Code, a surviving spouse or other sole 548
dependent beneficiary may elect to receive a monthly benefit 550
computed as the joint-survivor allowance designated as "plan D" 551
in section 3309.46 of the Revised Code, which the member would 552
12
have received had the member retired on the last day of the month 553
of death and had the member at that time selected such 554
joint-survivor plan. Payment shall begin with the month 555
subsequent to the member's death. 556
(B) If the deceased member had completed at least one and 558
one-half years of credit for Ohio service, with at least 559
one-quarter year of Ohio contributing service credit within the 560
two and one-half years prior to the date of death, or was 561
receiving at the time of death a disability benefit as provided 562
in section 3309.40 or 3309.401 of the Revised Code, qualified 563
survivors may WHO elect to receive monthly benefits, SHALL 565
RECEIVE THE GREATER OF THE BENEFITS provided in divisions 566
DIVISION (B)(1) and OR (5) of this section. 567
(1)(a) Number 569
of
Qualified Or 570
survivors Annual Benefit as a Per Monthly Benefit 572
affecting Cent of Decedent's shall not be 575
Final
the benefit Average Salary less than 578
1 25% $ 96 581
2 40 186 582
3 50 236 583
4 55 236 584
5 or more 60 236 585
(b) YEARS OF SERVICE ANNUAL BENEFIT AS A PER 589
CENT OF 590
MEMBER'S FINAL AVERAGE SALARY 591
20 29% 592
21 33 593
22 37 594
23 41 595
24 45 596
25 48 597
13
26 51 598
27 54 599
28 57 600
29 OR MORE 60 601
(2) THE FINAL AVERAGE SALARY USED IN THE CALCULATION OF A 604
BENEFIT PAYABLE PURSUANT TO THIS DIVISION TO A QUALIFIED SURVIVOR 605
OF A DISABILITY BENEFIT RECIPIENT SHALL BE ADJUSTED FOR EACH YEAR 606
BETWEEN THE DISABILITY BENEFIT'S EFFECTIVE DATE AND THE 607
RECIPIENT'S DATE OF DEATH BY THE LESSER OF THREE PER CENT OR THE 608
ACTUAL AVERAGE PERCENTAGE INCREASE IN THE CONSUMER PRICE INDEX 609
PREPARED BY THE UNITED STATES BUREAU OF LABOR STATISTICS (U.S. 613
CITY AVERAGE FOR URBAN WAGE EARNERS AND CLERICAL WORKERS: "ALL 616
ITEMS 1982-84=100"). 617
(3) Benefits shall begin as qualified survivors meet 619
eligibility requirements as follows: 620
(a) A qualified spouse is the surviving spouse of the 622
deceased member who is age sixty-two, or REGARDLESS OF age fifty 625
if the deceased member had ten or more years of Ohio service 626
credit, or regardless of age if caring for a surviving child, or 628
regardless of age if adjudged physically or mentally incompetent. 629
(b) A qualified child is any unmarried child of the 633
deceased member WHO HAS NEVER BEEN MARRIED AND TO WHOM ONE OF THE 634
FOLLOWING APPLIES: 635
(i) IS under age eighteen, or under age twenty-two if the 638
child is attending an institution of learning or training
pursuant to a program designed to complete in each school year 639
the equivalent of at least two-thirds of the full-time curriculum 640
requirements of such institution and as further determined by 641
board policy, or regardless; 642
(ii) REGARDLESS of age if, IS adjudged physically or 645
mentally incompetent IF THE INCOMPETENCE EXISTED PRIOR TO THE 646
MEMBER'S DEATH AND PRIOR TO THE CHILD ATTAINING AGE EIGHTEEN, OR 647
AGE TWENTY-TWO IF ATTENDING AN INSTITUTION DESCRIBED IN DIVISION 648
(B)(2)(b)(i) OF THIS SECTION. 649
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(c) A qualified parent is a dependent parent aged 651
sixty-five or older. 652
(3)(4) "Physically or mentally incompetent" as used in 654
this section may be determined by a court of jurisdiction, or by 655
a physician appointed by the retirement board. Incapability of 656
earning a living because of a physically or mentally disabling 657
condition shall meet the qualifications of this division. 658
(4)(5) Benefits to a qualified survivor shall terminate 660
upon a first marriage, abandonment, adoption, or during active 663
military service. Benefits to a deceased member's surviving 665
spouse that were terminated under a former version of this 666
section that required termination due to remarriage and were not 667
resumed prior to the effective date of this amendment shall 668
resume on the first day of the month immediately following
receipt by the board of an application on a form provided by the 669
board.
Upon the death of any subsequent spouse who was a member of 672
the public employees retirement system, state teachers retirement 673
system, or school employees retirement system, the surviving 674
spouse of such member may elect to continue receiving benefits 675
under this division, or to receive survivor's benefits, based 676
upon the subsequent spouse's membership in one or more of the 677
systems, for which such surviving spouse is eligible under this 678
section or section 145.45 or 3307.49 of the Revised Code. If the 679
surviving spouse elects to continue receiving benefits under this 680
division, such election shall not preclude the payment of 681
benefits under this division to any other qualified survivor. 682
Benefits shall begin or resume on the first day of the 684
month following the attainment of eligibility and shall terminate 685
on the first day of the month following loss of eligibility. 686
(5) Benefits (6)(a) IF A BENEFIT IS PAYABLE UNDER 688
DIVISION (B)(1)(a) OF THIS SECTION, BENEFITS to a qualified 690
spouse shall be paid in the amount determined for the first 691
qualifying survivor in division (B)(1)(a) of this section, but 693
15
shall not be less than one hundred six dollars per month if the 694
deceased member had ten or more years of Ohio service credit. 695
All other qualifying survivors shall share equally in the benefit 697
or remaining portion thereof.
(6)(b) ALL QUALIFYING SURVIVORS SHALL SHARE EQUALLY IN A 699
BENEFIT PAYABLE UNDER DIVISION (B)(1)(b) OF THIS SECTION, EXCEPT 701
THAT IF THERE IS A SURVIVING SPOUSE THE SURVIVING SPOUSE SHALL
RECEIVE THE AMOUNT DETERMINED FOR THE FIRST QUALIFYING SURVIVOR 702
IN DIVISION (B)(1)(a) OF THIS SECTION, BUT SHALL NOT BE LESS THAN 704
ONE HUNDRED SIX DOLLARS PER MONTH AND THE OTHER QUALIFYING
SURVIVORS SHALL SHARE EQUALLY IN THE REMAINING PORTION OF THE 705
BENEFIT.
(7) The beneficiary of a member who is also a member of 707
the public employees retirement system, or of the state teachers 708
retirement system, must forfeit the member's accumulated 709
contributions in those systems, if the beneficiary takes a 712
survivor benefit. Such benefit shall be exclusively governed by 713
section 3309.35 of the Revised Code. 714
(C)(1) Regardless of whether the member is survived by a 718
spouse or designated beneficiary, if the school employees
retirement system receives notice that a deceased member 719
described in division (A) or (B) of this section has one or more 721
qualified children, all persons who are qualified survivors under 722
Division (B) of this section shall receive monthly benefits as 725
provided in division (B) of this section. 726
If, after determining the monthly benefits to be paid under 728
division (B) of this section, the system receives notice that 729
there is a qualified survivor who was not considered when the 730
determination was made, the system shall, notwithstanding section 731
3309.661 of the Revised Code, recalculate the monthly benefits 732
with that qualified survivor included, even if the benefits to 733
qualified survivors already receiving benefits are reduced as a 734
result. The benefits shall be calculated as if the qualified 735
survivor who is the subject of the notice became eligible on the
16
date the notice was received and shall be paid to qualified 736
survivors effective on the first day of the first month following 737
the system's receipt of the notice. 738
If the retirement system did not receive notice that a 740
deceased member has one or more qualified children prior to 742
making payment under section 3309.44 of the Revised Code to a 745
beneficiary as determined by the retirement system, the payment 746
is a full discharge and release of the system from any future 747
claims under this section or section 3309.44 of the Revised Code. 748
(2) If benefits under division (C)(1) of this section to 751
all persons, or to all persons other than a surviving spouse or 753
other sole beneficiary, terminate, there are no children under
the age of twenty-two years, and the surviving spouse or 754
beneficiary qualifies for benefits under division (A) of this 756
section, the surviving spouse or beneficiary may elect to receive 757
benefits under division (A) of this section. Benefits shall be 758
effective on the first day of the month following receipt by the 760
board of an application for benefits under division (A) of this 761
section. 762
(D) If the survivor benefits due and paid under this 764
section are in a total amount less than the member's accumulated 765
account that was transferred from the employees' savings fund, 766
the state teachers retirement fund, and the public employees 767
retirement fund to the survivors' benefit fund, then the 768
difference between the total amount of the benefits paid shall be 769
paid to the beneficiary under section 3309.44 of the Revised 770
Code. 771
Sec. 3309.69. (A) As used in this section, "ineligible 780
individual" means all of the following: 781
(1) A former member receiving benefits pursuant to section 783
3309.34, 3309.35, 3309.36, 3309.38, or 3309.381 of the Revised 784
Code for whom eligibility is established more than five years 785
after June 13, 1981, and who, at the time of establishing 786
eligibility, has accrued less than ten years of service credit, 787
17
exclusive of credit obtained after January 29, 1981, pursuant to 788
sections 3309.021, 3309.301, 3309.31, and 3309.33 of the Revised 789
Code; 790
(2) The spouse of the former member; 792
(3) The beneficiary of the former member receiving 794
benefits pursuant to section 3309.46 of the Revised Code. 795
(B) The school employees retirement board may enter into 797
an agreement with insurance companies, health insuring 799
corporations, or government agencies authorized to do business in 801
the state for issuance of a policy or contract of health, 802
medical, hospital, or surgical benefits, or any combination 803
thereof, for those individuals receiving service retirement or a 804
disability or survivor benefit subscribing to the plan and their 806
eligible dependents.
If all or any portion of the policy or contract premium is 808
to be paid by any individual receiving service retirement or a 810
disability or survivor benefit, the person shall, by written 811
authorization, instruct the board to deduct the premiums agreed 812
to be paid by the individual to the companies, corporations, or 814
agencies.
The board may contract for coverage on the basis of part or 817
all of the cost of the coverage to be paid from appropriate funds 818
of the school employees retirement system. The cost paid from 819
the funds of the system shall be included in the employer's 821
contribution rate provided by sections 3309.49 and 3309.491 of 822
the Revised Code. The board shall not pay or reimburse the cost 823
for health care under this section or section 3309.375 of the 824
Revised Code for any ineligible individual. 825
The board may provide for self-insurance of risk or level 827
of risk as set forth in the contract with the companies, 828
corporations, or agencies, and may provide through the 829
self-insurance method specific benefits as authorized by the 830
rules of the board. 831
(C) If the board provides health, medical, hospital, or 833
18
surgical benefits through any means other than a health insuring 835
corporation, it shall offer to each individual eligible for the 838
benefits the alternative of receiving benefits through enrollment 840
in a health insuring corporation, if all of the following apply: 842
(1) The health insuring corporation provides health care 845
services in the geographical area in which the individual lives; 847
(2) The eligible individual was receiving health care 849
benefits through a health maintenance organization or a health 850
insuring corporation before retirement; 852
(3) The rate and coverage provided by the health insuring 855
corporation to eligible individuals is comparable to that 857
currently provided by the board under division (B) of this 858
section. If the rate or coverage provided by the health insuring 859
corporation is not comparable to that currently provided by the 861
board under division (B) of this section, the board may deduct 862
the additional cost from the eligible individual's monthly 863
benefit.
The health insuring corporation shall accept as an enrollee 867
any eligible individual who requests enrollment.
The board shall permit each eligible individual to change 869
from one plan to another at least once a year at a time 870
determined by the board. 871
(D) The board shall, beginning the month following receipt 873
of satisfactory evidence of the payment for coverage, make a 874
monthly payment to each recipient of service retirement, or a 875
disability or survivor benefit under the school employees 876
retirement system who is eligible for insurance coverage under 877
part B of "The Social Security Amendments of 1965," 79 Stat. 301, 878
42 U.S.C.A. 1395j, as amended, except that the board shall make 879
no such payment to any ineligible individual. Effective on the 880
first day of the month after December 8, 1998 THE EFFECTIVE DATE 882
OF THIS AMENDMENT, the amount of the payment shall be the lesser 884
of an amount equal to the basic premium for such coverage, or an 885
amount equal to the basic premium in effect on January 1, 1992 886
19
1999.
(E) The board shall establish by rule requirements for the 888
coordination of any coverage, payment, or benefit provided under 890
this section or section 3309.375 of the Revised Code with any 892
similar coverage, payment, or benefit made available to the same 893
individual by the public employees retirement system, Ohio police 894
and fire pension fund, state teachers retirement system, or state 896
highway patrol retirement system. 897
(F) The board shall make all other necessary rules 899
pursuant to the purpose and intent of this section. 900
Section 2. That existing sections 3309.03, 3309.15, 902
3309.36, 3309.374, 3309.381, 3309.40, 3309.401, 3309.45, and 903
3309.69 of the Revised Code are hereby repealed. 904
Section 3. The School Employees Retirement System shall 906
recalculate under section 3309.36, 3309.381, 3309.40, or 3309.401 907
of the Revised Code, as amended by this act, or 3309.38 of the 908
Revised Code, each benefit that is payable under those sections 909
or section 3309.46 of the Revised Code and became effective on or 910
after January 1, 2000, but before the effective date of this act. 911
If the recalculated benefit is greater than the recipient's 912
benefit prior to the recalculation, the system shall do both of 913
the following: 914
(A) Pay the recalculated benefit beginning on the first 916
day of the month immediately following the date the board 917
recalculates the benefit; 918
(B) Make a one-time payment to the recipient equal to the 920
difference between the benefits paid to the recipient between 921
January 1, 2000, and the date of the payment and the increased 922
benefits that would have been paid to the recipient had the 923
amendments to sections 3309.36, 3309.381, 3309.40, and 3309.401 924
of the Revised Code gone into effect on January 1, 2000. 925
Section 4. (A) The School Employees Retirement System 927
shall recalculate under section 3309.374 of the Revised Code, as 928
amended by this act, any increase payable under that section that 929
20
became effective on or after January 1, 2000, but before the 930
effective date of this act. If the recalculated increase is 931
greater than a recipient's increase prior to the recalculation, 932
the board shall do both of the following: 933
(1) Begin payment of the recalculated increase on the 935
first day of the month immediately following the date the board 936
recalculates the increase; 937
(2) Make a one-time payment to each person who meets both 939
of the following criteria: 940
(a) The person is receiving an allowance, pension, or 942
benefit on the effective date of this act; 943
(b) The person received an increase under section 3309.371 945
on or after January 1, 2000, but before the effective date of 946
this act.
(B) The payment under division (A)(2) of this section 948
shall be an amount equal to the difference between the amount the 949
individual received between January 1, 2000, and the date of the 950
payment and the amount the individual would have received had the 951
amendments to section 3309.374 of the Revised Code gone into 952
effect on January 1, 2000. 953
Section 5. (A) The School Employees Retirement System 955
shall make a one-time payment to each person who was eligible to 956
receive a monthly payment during the period commencing January 1, 957
1993, and ending on the last day of the month in which this act 958
takes effect pursuant to division (D) of section 3309.69 of the 959
Revised Code for insurance coverage under Part B of the "Social 960
Security Amendments of 1965," 79 Stat. 301, 42 U.S.C.A. 1935j, as 961
amended. Except as provided in division (B) of this section, the 962
payment shall be equal to the difference between: 963
(1) The amount the recipient was eligible to receive under 965
division (D) of section 3309.69 of the Revised Code during the 966
period commencing January 1, 1993, and ending on the last day of 967
the month in which this act takes effect; 968
(2) The amount the recipient would have received under 970
21
division (D) of section 3309.69 of the Revised Code during the 971
same period had the amendments to that division made by this act 972
taken effect January 1, 1993. 973
(B) The School Employees Retirement System shall subtract 975
from any amount payable under this section any amount the 976
recipient was eligible to receive pursuant to Section 3 of Am. 977
Sub. H.B. 673 of the 122nd General Assembly. 978
Section 6. If the surviving spouse of a member who died on 980
or after January 1, 2000, but before the effective date of this 981
act would be eligible for a benefit under division (B)(2)(a) of 982
section 3309.45 of the Revised Code as amended by this act and 983
the surviving spouse has not taken the payment of the member's 984
accumulated account, the system shall calculate the benefit 985
payable to the surviving spouse under section 3309.45 of the 986
Revised Code as of the effective date of this act and do both of 987
the following: 988
(A) Begin payment to the surviving spouse on the first day 990
of the month immediately following the date the calculation is 991
made;
(B) Make a one-time payment to the surviving spouse equal 993
to the sum of the monthly benefits that would have been paid to 994
the surviving spouse had the amendments to section 3309.45 of the 995
Revised Code gone into effect on January 1, 2000. 996