As Reported by the Senate Ways and Means Committee 1
123rd General Assembly 4
Regular Session Sub. S. B. No. 270 5
1999-2000 6
SENATORS DRAKE-BLESSING-HERINGTON-DiDONATO-McLIN 8
_________________________________________________________________ 10
A B I L L
To amend sections 3309.01, 3309.03, 3309.04, 12
3309.05, 3309.07, 3309.12, 3309.15, 3309.17, 13
3309.22, 3309.341, 3309.36, 3309.374, 3309.381,
3309.40, 3309.401, 3309.45, 3309.47, 3309.49, 14
3309.53, 3309.54, 3309.55, 3309.57, 3309.59, 15
3309.60, 3309.61, 3309.66, and 3309.69; to enact 16
sections 3309.031, 3309.25, 3309.251, 3309.252,
3309.253, 3309.80, 3309.81, 3309.811, 3309.812, 17
3309.813, 3309.82, 3309.85, 3309.86, 3309.87,
3309.88, 3309.91, 3309.92, 3309.95, 3309.97, and 18
3309.98; and to repeal section 3309.58 of the 20
Revised Code to increase certain benefits paid by
the School Employees Retirement System (SERS), to 21
increase the SERS reimbursement for insurance 22
coverage under Medicare Part B, to require SERS 23
to establish a defined contribution retirement
plan, and to make other changes to the law 25
governing SERS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 27
Section 1. That sections 3309.01, 3309.03, 3309.04, 29
3309.05, 3309.07, 3309.12, 3309.15, 3309.17, 3309.22, 3309.341, 31
3309.36, 3309.374, 3309.381, 3309.40, 3309.401, 3309.45, 3309.47, 32
3309.49, 3309.53, 3309.54, 3309.55, 3309.57, 3309.59, 3309.60, 33
3309.61, 3309.66, and 3309.69 be amended and sections 3309.031, 34
3309.25, 3309.251, 3309.252, 3309.253, 3309.80, 3309.81, 35
3309.811, 3309.812, 3309.813, 3309.82, 3309.85, 3309.86, 3309.87,
2
3309.88, 3309.91, 3309.92, 3309.95, 3309.97, and 3309.98 of the 37
Revised Code be enacted to read as follows: 38
Sec. 3309.01. As used in this chapter: 47
(A) "Employer" or "public employer" means boards of 49
education, school districts, joint vocational districts, 50
governing authorities of community schools established under 51
Chapter 3314. of the Revised Code, educational institutions, 52
technical colleges, state, municipal, and community colleges, 54
community college branches, universities, university branches, 55
other educational institutions, or other agencies within the 56
state by which an employee is employed and paid, including any 57
organization using federal funds, provided the federal funds are 58
disbursed by an employer as determined by the above. In all 60
cases of doubt, the school employees retirement board shall 61
determine whether any employer is an employer as defined in this 62
chapter, and its decision shall be final. 63
(B) "Employee" means all of the following: 65
(1) Any person employed by a public employer in a position 67
for which the person is not required to have a certificate or 68
license issued pursuant to sections 3319.22 to 3319.31 of the 70
Revised Code;
(2) Any person who performs a service common to the normal 72
daily operation of an educational unit even though the person is 74
employed and paid by one who has contracted with an employer to 75
perform the service, and the contracting board or educational 77
unit shall be the employer for the purposes of administering the 78
provisions of this chapter; 79
(3) Any person, not a faculty member, employed in any 81
school or college or other institution wholly controlled and 82
managed, and wholly or partly supported by the state or any 83
political subdivision thereof, the board of trustees, or other 84
managing body of which shall accept the requirements and 85
obligations of this chapter. 86
In all cases of doubt, the school employees retirement 88
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board shall determine whether any person is an employee, as 89
defined in this division, and its decision is final. 90
(C) "Prior service" means all service rendered prior to 92
September 1, 1937: 93
(1) As an employee as defined in division (B) of this 95
section; 96
(2) As an employee in a capacity covered by the public 98
employees retirement system or the state teachers retirement 99
system; 100
(3) As an employee of an institution in another state, 102
service credit for which was procured by a member under the 103
provisions of section 3309.31 of the Revised Code. 104
Prior service, for service as an employee in a capacity 106
covered by the public employees retirement system or the state 107
teachers retirement system, shall be granted a member under 108
qualifications identical to the laws and rules applicable to 109
service credit in those systems. 110
Prior service shall not be granted any member for service 113
rendered in a capacity covered by the public employees retirement 114
system, the state teachers retirement system, and this system in 115
the event the service credit has, in the respective systems, been 117
received, waived by exemption, or forfeited by withdrawal of 118
contributions, except as provided in this chapter.
If a member who has been granted prior service should, 120
subsequent to September 16, 1957, and before retirement, 121
establish three years of contributing service in the public 122
employees retirement system, or one year in the state teachers 123
retirement system, then the prior service granted shall become, 125
at retirement, the liability of the other system, if the prior 127
service or employment was in a capacity that is covered by that 128
system. 129
The provisions of this division shall not cancel any prior 131
service granted a member by the school employees retirement board 132
prior to August 1, 1959. 133
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(D) "Total service," "total service credit," or "Ohio 135
service credit" means all contributing service of a member of the 136
school employees retirement system, and all prior service, 138
computed as provided in this chapter, and all service established 139
pursuant to sections 3309.31, 3309.311, and 3309.33 of the
Revised Code. In addition, "total service" includes any period, 140
not in excess of three years, during which a member was out of 141
service and receiving benefits from the state insurance fund, 142
provided the injury or incapacitation was the direct result of 143
school employment. 144
(E) "Member" means any employee, except an SERS retirant 146
or other system retirant as defined in section 3309.341 of the 147
Revised Code, who has established membership in the school 148
employees retirement system. "Member" includes a disability 149
benefit recipient. 150
(F) "Contributor" means any person who has an account in 152
the employees' savings fund. WHEN USED IN THE SECTIONS LISTED IN 154
DIVISION (B) OF SECTION 3309.82 OF THE REVISED CODE, 155
"CONTRIBUTOR" INCLUDES ANY PERSON PARTICIPATING IN A PLAN 157
ESTABLISHED UNDER SECTION 3309.81 OF THE REVISED CODE. 158
(G) "Retirant" means any former member who retired and is 160
receiving a service retirement allowance or commuted service 161
retirement allowance as provided in this chapter. 162
(H) "Beneficiary" or "beneficiaries" means the estate or a 164
person or persons who, as the result of the death of a 165
contributor or retirant, qualifies for or is receiving some right 166
or benefit under this chapter. 167
(I) "Interest," as specified in division (E) of section 169
3309.60 of the Revised Code, means interest at the rates for the 171
respective funds and accounts as the school employees retirement 172
board may determine from time to time, except as follows: 173
(1) The rate of interest credited on employee 175
contributions at retirement shall be four per cent per annum, 176
compounded annually, to and including June 30, 1955; three per 177
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cent per annum, compounded annually, from July 1, 1955, to and 178
including June 30, 1963; three and one-quarter per cent per 179
annum, compounded annually, from July 1, 1963, through June 30, 181
1966; and thereafter, four per cent per annum compounded annually 182
until a change in the amount is recommended by the system's 183
actuary and approved by the retirement board. Subsequent to June 185
30, 1959, the retirement board shall discontinue the annual 186
crediting of current interest on a contributor's accumulated 187
contributions. Noncrediting of current interest shall not affect 189
the rate of interest at retirement guaranteed under this 190
division.
(2) In determining the reserve value for purposes of 192
computing the amount of the contributor's annuity, the rate of 193
interest used in the annuity values shall be four per cent per 194
annum through September 30, 1956; three per cent per annum 195
compounded annually from October 1, 1956, through June 30, 1963; 196
three and one-quarter per cent per annum compounded annually from 198
July 1, 1963, through June 30, 1966; and, thereafter, four per
cent per annum compounded annually until a change in the amount 200
is recommended by the system's actuary and approved by the 202
retirement board. In the purchase of out-of-state service credit 203
as provided in section 3309.31 of the Revised Code, and in the 204
purchase of an additional annuity, as provided in section 3309.47 205
of the Revised Code, interest shall be computed and credited to 206
reserves therefor at the rate the school employees retirement 208
board shall fix as regular interest thereon.
(J) "Accumulated contributions" means the sum of all 210
amounts credited to a contributor's account in the employees' 211
savings fund together with any regular interest credited thereon 212
at the rates approved by the retirement board prior to 213
retirement. 214
(K) "Final average salary" means the sum of the annual 216
compensation for the three highest years of compensation for 217
which contributions were made by the member, divided by three. If 219
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the member has a partial year of contributing service in the year 220
in which the member terminates employment and the partial year is 222
at a rate of compensation that is higher than the rate of
compensation for any one of the highest three years of annual 223
earnings, the board shall substitute the compensation earned for 224
the partial year for the compensation earned for a similar 225
fractional portion in the lowest of the three high years of 226
annual compensation before dividing by three. If a member has 227
less than three years of contributing membership, the final 228
average salary shall be the total compensation divided by the 229
total number of years, including any fraction of a year, of 230
contributing service. 231
(L) "Annuity" means payments for life derived from 233
contributions made by a contributor and paid from the annuity and 234
pension reserve fund as provided in this chapter. All annuities 235
shall be paid in twelve equal monthly installments. 236
(M)(1) "Pension" means annual payments for life derived 238
from appropriations made by an employer and paid from the 239
employers' trust fund or the annuity and pension reserve fund. 240
All pensions shall be paid in twelve equal monthly installments. 241
(2) "Disability retirement" means retirement as provided 243
in section 3309.40 of the Revised Code. 244
(N) "Retirement allowance" means the pension plus the 246
annuity. 247
(O)(1) "Benefit" means a payment, other than a retirement 249
allowance or the annuity paid under section 3309.341 of the 250
Revised Code, payable from the accumulated contributions of the 251
member or the employer, or both, under this chapter and includes 252
a disability allowance or disability benefit. 253
(2) "Disability allowance" means an allowance paid on 255
account of disability under section 3309.401 of the Revised Code. 256
(3) "Disability benefit" means a benefit paid as 258
disability retirement under section 3309.40 of the Revised Code, 259
as a disability allowance under section 3309.401 of the Revised 260
7
Code, or as a disability benefit under section 3309.35 of the 261
Revised Code. 262
(P) "Annuity reserve" means the present value, computed 264
upon the basis of mortality tables adopted by the school 266
employees retirement board, of all payments to be made on account 267
of any annuity, or benefit in lieu of any annuity, granted to a 268
retirant.
(Q) "Pension reserve" means the present value, computed 270
upon the basis of mortality tables adopted by the school 272
employees retirement board, of all payments to be made on account 273
of any pension, or benefit in lieu of any pension, granted to a 274
retirant or a beneficiary.
(R) "Year" means the year beginning the first day of July 276
and ending with the thirtieth day of June next following. 277
(S) "Local district pension system" means any school 279
employees' pension fund created in any school district of the 280
state prior to September 1, 1937. 281
(T) "Employer contribution" means the amount paid by an 283
employer as determined by the employer rate, contributions, and 284
funds as provided in this chapter, and shall be credited to the 285
employers' trust fund UNDER SECTION 3309.49 OF THE REVISED CODE. 286
(U) "Fiduciary" means a person who does any of the 288
following: 289
(1) Exercises any discretionary authority or control with 291
respect to the management of the system, or with respect to the 292
management or disposition of its assets; 293
(2) Renders investment advice for a fee, direct or 295
indirect, with respect to money or property of the system; 296
(3) Has any discretionary authority or responsibility in 298
the administration of the system. 299
(V)(1) Except as otherwise provided in this division, 301
"compensation" means all salary, wages, and other earnings paid 302
to a contributor by reason of employment. The salary, wages, and 305
other earnings shall be determined prior to determination of the 306
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amount required to be contributed to the employees' savings fund 307
under section 3309.47 of the Revised Code and without regard to 308
whether any of the salary, wages, or other earnings are treated 310
as deferred income for federal income tax purposes. 311
(2) Compensation does not include any of the following: 313
(a) Payments for accrued but unused sick leave or personal 315
leave, including payments made under a plan established pursuant 316
to section 124.39 of the Revised Code or any other plan 317
established by the employer; 318
(b) Payments made for accrued but unused vacation leave, 320
including payments made pursuant to section 124.13 of the Revised 321
Code or a plan established by the employer; 322
(c) Payments made for vacation pay covering concurrent 324
periods for which other salary or compensation is also paid or 325
during which benefits are paid under this chapter; 326
(d) Amounts paid by the employer to provide life 328
insurance, sickness, accident, endowment, health, medical, 329
hospital, dental, or surgical coverage, or other insurance for 330
the contributor or the contributor's family, or amounts paid by 332
the employer to the contributor in lieu of providing the
insurance; 333
(e) Incidental benefits, including lodging, food, laundry, 335
parking, or services furnished by the employer, use of the 336
employer's property or equipment, and reimbursement for 337
job-related expenses authorized by the employer, including moving 338
and travel expenses and expenses related to professional 339
development; 340
(f) Payments made to or on behalf of a contributor that 342
are in excess of the annual compensation that may be taken into 343
account by the retirement system under division (a)(17) of 344
section 401 of the "Internal Revenue Code of 1986," 100 Stat. 345
2085, 26 U.S.C.A. 401(a)(17), as amended. For a contributor who 346
first establishes membership before July 1, 1996, the annual 347
compensation that may be taken into account by the retirement 348
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system shall be determined under division (d)(3) of section 13212 349
of the "Omnibus Budget Reconciliation Act of 1993," Pub. L. 351
103-66, 107 Stat. 472;
(g) Payments made under division (B) or (D) of section 353
5923.05 of the Revised Code or Section 4 of Substitute Senate 355
Bill No. 3 of the 119th general assembly; 356
(h) Anything of value received by the contributor that is 358
based on or attributable to retirement or an agreement to retire, 359
except that payments made on or before January 1, 1989, that are 360
based on or attributable to an agreement to retire shall be 361
included in compensation if both of the following apply: 362
(i) The payments are made in accordance with contract 364
provisions that were in effect prior to January 1, 1986. 365
(ii) The employer pays the retirement system an amount 367
specified by the retirement board equal to the additional 368
liability from the payments. 369
(3) The retirement board shall determine by rule whether 371
any form of earnings not enumerated in this division is to be 372
included in compensation, and its decision shall be final. 373
(W) "Disability benefit recipient" means a member who is 375
receiving a disability benefit. 376
(X) "Actuary" means an individual who satisfies all of the 378
following requirements: 379
(1) Is a member of the American academy of actuaries; 381
(2) Is an associate or fellow of the society of actuaries; 383
(3) Has a minimum of five years' experience in providing 385
actuarial services to public retirement plans. 386
Sec. 3309.03. A school employees retirement system is 395
hereby established for the employees as defined in section 396
3309.01 of the Revised Code, which shall include the several 397
funds created and placed under the management of the school 398
employees retirement board for the payment of retirement 399
allowances and other benefits provided in Chapter 3309. of the 400
Revised Code. The board may sue and be sued, plead and be 401
10
impleaded, contract and be contracted with, and do all things 402
necessary to carry out Chapter 3309. of the Revised Code. All of 403
its business shall be transacted, all of its funds invested, all 404
warrants for money drawn and payments made, and all of its cash, 405
securities, and other property shall be held in the name of the 408
board, or in the name of its nominee, provided that nominees are 409
authorized by retirement board resolution for the purpose of
facilitating the ownership and transfer of investments SUCH 410
PURPOSES. THE BOARD MAY TAKE ALL APPROPRIATE ACTION TO AVOID 412
PAYMENT BY THE SYSTEM OR ITS MEMBERS OF FEDERAL OR STATE INCOME 413
TAXES ON CONTRIBUTIONS TO THE SYSTEM OR AMOUNTS EARNED ON THOSE 414
CONTRIBUTIONS.
Sec. 3309.031. THE SCHOOL EMPLOYEES RETIREMENT SYSTEM 416
SHALL CONSIST OF THE PLANS DESCRIBED IN SECTION 3309.18 TO 417
3309.70 OF THE REVISED CODE AND THE PLAN OR PLANS ESTABLISHED 418
UNDER SECTION 3309.81 OF THE REVISED CODE. 419
Sec. 3309.04. The general administration and management of 428
the school employees retirement system and making effective 429
Chapter 3309. of the Revised Code are hereby vested in the school 430
employees retirement board which may adopt rules IN ACCORDANCE 431
WITH SECTION 111.15 OF THE REVISED CODE and may authorize its 432
administrative officers, or committees composed of members of 433
said board, to act for the board in accord ACCORDANCE with such 434
policies and subject to subsequent approval by the board. 435
The attorney general shall prescribe procedures for the 437
adoption of rules authorized under this chapter, consistent with 438
the provision of section 111.15 of the Revised Code under which 439
all rules shall be filed in order to be effective. Such 440
procedures shall establish methods by which notice
NOTICE of proposed rules is SHALL BE given to interested 443
parties and rules adopted by the board SHALL BE published and 445
otherwise made available. When it files a rule with the joint 446
committee on agency rule review pursuant to section 111.15 of the 447
Revised Code, the board shall submit to the Ohio retirement study 449
11
council a copy of the full text of the rule, and if applicable, a 451
copy of the rule summary and fiscal analysis required by division
(B) of section 127.18 of the Revised Code. 452
All rules adopted pursuant to this chapter, prior to August 454
20, 1976, shall be published and made available to interested 456
parties by January 1, 1977.
Sec. 3309.05. The school employees retirement board shall 465
consist of the following seven members: 466
(A) The auditor of state; 468
(B) The attorney general; 470
(C) Four members, known as employee members, who shall be 472
members of the school employees retirement system, and who shall 473
be elected by ballot by the members of the system; 474
(D) One member, known as the retirant member, who shall be 476
a former member of the retirement system who is a recipient of 477
RESIDENT OF THIS STATE AND CURRENTLY RECEIVING AN AGE AND service 479
retirement benefits under this chapter and a resident of this 480
state or a member of the retirement system who is a recipient of 481
BENEFIT, a disability benefit under this chapter and a resident 483
of this state, OR BENEFITS UNDER A PLAN ESTABLISHED UNDER SECTION 484
3309.81 OF THE REVISED CODE. The retirant member shall be
elected by ballot by former members of the system who are 486
CURRENTLY receiving AN AGE AND service retirement benefits or 488
BENEFIT, a disability benefit under this chapter, OR BENEFITS 489
UNDER A PLAN ESTABLISHED UNDER SECTION 3309.81 OF THE REVISED 490
CODE.
Sec. 3309.07. (A) All elections for employee or retirant 499
members of the school employees retirement board shall be held 500
under the direction of the board. 501
(B) Any member of the school employees retirement system, 503
other than a disability benefit recipient, shall be eligible for 504
election as an employee member of the board who has been 505
nominated by a petition signed by at least five hundred members, 506
provided that there shall be not less than twenty signers each 507
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from at least ten counties wherein such members are employed. The 509
petition shall specify the term of office and position. The name 510
of any member so nominated shall be placed upon the ballot by the 511
board as a regular candidate. Other names of eligible candidates 512
may at any election be substituted for the regular candidates by 513
writing such names upon the ballot. The candidate receiving the 514
highest number of votes for any term as member of the board shall 515
be elected for such term. In any year in which two employee 516
member positions must be filled, the candidates who receive the 517
highest and second highest number of votes shall be elected to 518
the offices.
(C) Any service retirant or disability benefit recipient 520
FORMER MEMBER of the school employees retirement system DESCRIBED 522
IN DIVISION (D) OF SECTION 3309.05 OF THE REVISED CODE is 523
eligible for election as the retirant member of the board TO 525
REPRESENT FORMER MEMBERS CURRENTLY RECEIVING AN AGE AND SERVICE
RETIREMENT BENEFIT, A DISABILITY BENEFIT, OR BENEFITS UNDER A 526
PLAN ESTABLISHED UNDER SECTION 3309.81 OF THE REVISED CODE, 527
provided that such person has been nominated by a petition signed 529
by at least one hundred fifty former members of the system who 530
are CURRENTLY receiving AN AGE AND service retirement benefits or 531
BENEFIT, a disability benefit, OR BENEFITS under this chapter A 533
PLAN ESTABLISHED UNDER SECTION 3309.81 OF THE REVISED CODE. The
petition shall contain the signatures of at least ten such 535
retirants or disability benefit recipients from each of at least 536
five counties wherein service retirants or disability benefit 537
recipients under OF BENEFITS FROM this system reside. The 538
petition shall specify the term of office and position. The name 539
of any retirant or disability benefit recipient PERSON so 540
nominated shall be placed upon the ballot by the board as a 542
regular candidate. Other names of eligible candidates may at any 543
election be substituted for the regular candidates by writing 544
such names upon the ballot. The candidate receiving the highest 545
number of votes for any term as member of the board shall be 546
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elected for such term. 547
No employee member of the board who retires while a member 549
of the board shall be eligible to become a retirant member of the 550
board for three years after the date of the member's retirement. 551
Sec. 3309.12. The treasurer of state shall be the 560
custodian of the funds of the school employees retirement system, 561
and all disbursements therefrom shall be paid by him THE 562
TREASURER OF STATE only upon instruments duly authorized by the 564
school employees retirement board and bearing the signatures of 565
the board; provided, that such instruments may bear the names of 566
the board members printed thereon and the signatures of the 567
president and secretary of the board. The signatures of the 568
president and secretary may be affixed through the use of a 569
mechanical check signing device.
The treasurer of state shall give a separate and additional 571
bond in such amount as is fixed by the governor and with sureties 572
selected by the board and approved by the governor, conditioned 573
for the faithful performance of the duties of the treasurer of 574
state as custodian of the funds of the system. Such bonds shall 575
be deposited with the secretary of state and kept in his THE 576
TREASURER OF STATE'S office. The governor may require the 578
treasurer of state to give other and additional bonds, as the 579
funds of the system increase, in such amounts and at such times 580
as are fixed by the governor, which additional bonds shall be 581
conditioned, filed, and obtained as is provided for the original 582
bond of the treasurer of state covering the funds of the system. 583
The premium on all bonds shall be paid by the board. 584
The treasurer of state shall deposit any portion of the 586
funds of the system not needed for immediate use in the same 587
manner as state funds are deposited, and subject to all 588
provisions of law with respect to the deposit of state funds, by 589
the treasurer of state, and all interest earned by such portion 590
of the retirement funds as may be deposited by the treasurer of 591
state shall be collected by him and placed to the credit of the 592
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board. 593
THE TREASURER OF THE STATE SHALL FURNISH ANNUALLY TO THE 595
SCHOOL EMPLOYEES RETIREMENT SYSTEM A SWORN STATEMENT OF THE 597
AMOUNT OF THE FUNDS IN THE TREASURERS' CUSTODY BELONGING TO THE 598
SCHOOL EMPLOYEES RETIREMENT SYSTEM. 599
Sec. 3309.15. (A) The members of the school employees 608
retirement board shall be the trustees of the funds created by 609
section 3309.60 of the Revised Code. The board shall have full 610
power to invest the funds. The board and other fiduciaries shall 612
discharge their duties with respect to the funds solely in the 613
interest of the participants and beneficiaries; for the exclusive 614
purpose of providing benefits to participants and their
beneficiaries and defraying reasonable expenses of administering 615
the school employees retirement system; with care, skill, 616
prudence, and diligence under the circumstances then prevailing 618
that a prudent person acting in a like capacity and familiar with 619
such matters would use in the conduct of an enterprise of a like 620
character and with like aims; and by diversifying the investments 621
of the system so as to minimize the risk of large losses, unless 622
under the circumstances it is clearly prudent not to do so. 623
To facilitate investment of the funds, the THE board may 625
establish a partnership, trust, limited liability company, 627
corporation, including a corporation exempt from taxation under 628
the Internal Revenue Code, 100 Stat. 2085, 26 U.S.C.A. 1, as 630
amended, or any other legal entity authorized to transact 631
business in this state.
(B) In exercising its fiduciary responsibility with 633
respect to the investment of the funds, it shall be the intent of 634
the board to give consideration to investments that enhance the 635
general welfare of the state and its citizens where the 636
investments offer quality, return, and safety comparable to other 638
investments currently available to the board. In fulfilling this 639
intent, equal consideration shall also be given to investments 640
otherwise qualifying under this section that involve minority 641
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owned and controlled firms and firms owned and controlled by 642
women, either alone or in joint venture with other firms. 643
The board shall adopt, in regular meeting, policies, 645
objectives, or criteria for the operation of the investment 647
program that include asset allocation targets and ranges, risk 648
factors, asset class benchmarks, time horizons, total return 649
objectives, and performance evaluation guidelines. In adopting 650
policies and criteria for the selection of agents with whom the 651
board may contract for the administration of the funds, the board 652
shall give equal consideration to minority owned and controlled 653
firms, firms owned and controlled by women, and ventures 654
involving minority owned and controlled firms and firms owned and 655
controlled by women that otherwise meet the policies and criteria 656
established by the board. Amendments and additions to the 657
policies and criteria shall be adopted in regular meeting. The 658
board shall publish its policies, objectives, and criteria under 660
this provision no less often than annually and shall make copies 662
available to interested parties.
When reporting on the performance of investments, the board 664
shall comply with the performance presentation standards 665
established by the association for investment management and 666
research.
(C) All evidences of title of investments purchased by the 668
board under this section shall be delivered to the treasurer of 671
state, who is hereby designated as custodian thereof, or to the 672
treasurer of state's authorized agent, and the treasurer of state 673
or the agent shall collect principal, interest, dividends, and 674
distributions that become due and payable and place the same when 675
so collected into the custodial funds. Evidences of title of the 676
investments may be deposited by the treasurer of state for 678
safekeeping with an authorized agent, selected by the treasurer 679
of state, who is a qualified trustee under section 135.18 of the 680
Revised Code. The treasurer of state shall pay for the 681
investments purchased by the board pending receipt of the
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evidence of title of the investments by the treasurer of state or 683
to the treasurer of state's authorized agent, and on receipt of 685
written or electronic instructions from the board or the board's 686
designated agent authorizing the purchase. The board may sell 687
any investments held by the board, and the treasurer of state or 688
the treasurer of state's authorized agent shall accept payment 689
from the purchaser and deliver evidence of title of the 690
investment to the purchaser on receipt of written or electronic 691
instructions from the board or the board's designated agent 692
authorizing the sale, and pending receipt of the moneys for the 693
investments. The amount received shall be placed into the
custodial funds. The board and the treasurer of state may enter 695
into agreements to establish procedures for the purchase and sale 696
of investments under this division and the custody of the
investment.
(D) No purchase or sale of any investment shall be made 699
under this section except as authorized by the school employees 700
retirement board.
(E) Any statement of financial position distributed by the 702
board shall include the fair value, as of the statement date, of 705
all investments held by the board under this section.
Sec. 3309.17. The proper officers of each taxing district 714
issuing the bonds provided for in section 3309.16 of the Revised 715
Code shall, without additional procedure or legislation on their 716
part, comply with sections 3309.01 to 3309.68, inclusive, of the 717
Revised Code THIS CHAPTER, except that the proper accounting 718
officer of such taxing district and the secretary of its sinking 719
fund shall make and keep a detailed record of any such changes 720
required by the school employees retirement board. The board 721
shall not change the date of maturity of any part of the 722
principal or interest of any bond issue, nor shall it require a 723
bond of any issue to be of a larger denomination, nor any partial
payment of principal to be of greater amount than the aggregate 724
amount of such issue falling due at any date. 725
17
Sec. 3309.22. (A) The treasurer of state shall furnish 734
annually to the school employees retirement board a sworn 735
statement of the amount of the funds in the treasurer's custody 737
belonging to the school employees retirement system. 738
(B)(1) As used in this division, "personal history record" 740
means information maintained by the board on a member, former 741
member, contributor, former contributor, retirant, or beneficiary 742
that includes the address, telephone number, social security 743
number, record of contributions, correspondence with the system, 744
and other information the board determines to be confidential. 745
(2) The records of the board shall be open to public 747
inspection, except for the following, which shall be excluded, 748
except with the written authorization of the individual 749
concerned: 750
(a) The individual's statement of previous service and 752
other information as provided for in section 3309.28 of the 753
Revised Code; 754
(b) Any information identifying by name and address the 756
amount of a monthly allowance or benefit paid to the individual; 757
(c) The individual's personal history record. 759
(C)(B) All medical reports and recommendations required by 761
the system are privileged except that copies of such medical 762
reports or recommendations shall be made available to the 763
personal physician, attorney, or authorized agent of the 764
individual concerned upon written release received from the 765
individual or the individual's agent, or when necessary for the 767
proper administration of the fund, to the board assigned 768
physician.
(D)(C) Any person who is a contributor of the system shall 770
be furnished, on written request, with a statement of the amount 772
to the credit of the person's account. The board need not answer 773
more than one such request of a person in any one year.
(E)(D) Notwithstanding the exceptions to public inspection 775
in division (B)(A)(2) of this section, the board may furnish the 776
18
following information: 777
(1) If a member, former member, contributor, former 779
contributor, or retirant is subject to an order issued under 780
section 2907.15 of the Revised Code or is convicted of or pleads 781
guilty to a violation of section 2921.41 of the Revised Code, on 782
written request of a prosecutor as defined in section 2935.01 of 783
the Revised Code, the board shall furnish to the prosecutor the 784
information requested from the individual's personal history 785
record. 786
(2) Pursuant to a court or administrative order issued 788
under section 3111.23 or 3113.21 of the Revised Code, the board 789
shall furnish to a court or child support enforcement agency the 790
information required under that section. 791
(3) At the written request of any person, the board shall 793
provide to the person a list of the names and addresses of 794
members, former members, retirants, contributors, former 795
contributors, or beneficiaries. The costs of compiling, copying, 796
and mailing the list shall be paid by such person. 797
(4) Within fourteen days after receiving from the director 799
of job and family services a list of the names and social 800
security numbers of recipients of public assistance pursuant to 802
section 5101.181 of the Revised Code, the board shall inform the 803
auditor of state of the name, current or most recent employer 804
address, and social security number of each contributor whose 805
name and social security number are the same as that of a person 806
whose name or social security number was submitted by the 807
director. The board and its employees shall, except for purposes 808
of furnishing the auditor of state with information required by 809
this section, preserve the confidentiality of recipients of 810
public assistance in compliance with division (A) of section 811
5101.181 of the Revised Code. 812
(F)(E) A statement that contains information obtained from 814
the system's records that is signed by an officer of the 815
retirement system and to which the system's official seal is 816
19
affixed, or copies of the system's records to which the signature 817
and seal are attached, shall be received as true copies of the 818
system's records in any court or before any officer of this 819
state. 820
Sec. 3309.25. ON RECEIPT OF NOTICE UNDER SECTION 3309.55 822
OF THE REVISED CODE OF THE EMPLOYMENT OF A NEW EMPLOYEE, THE 823
SCHOOL EMPLOYEES RETIREMENT SYSTEM SHALL INFORM THE EMPLOYEE OF 824
THE REQUIREMENTS OF SECTION 3309.251 OF THE REVISED CODE.
Sec. 3309.251. (A) EXCEPT AS PROVIDED IN DIVISION (D) OF 827
THIS SECTION, AN INDIVIDUAL WHO BECOMES A MEMBER OF THE SCHOOL 829
EMPLOYEES RETIREMENT SYSTEM ON OR AFTER THE DATE ON WHICH THE 830
SCHOOL EMPLOYEES RETIREMENT BOARD ESTABLISHES A PLAN UNDER 832
SECTION 3309.81 OF THE REVISED CODE SHALL MAKE AN ELECTION UNDER 833
THIS SECTION. NOT LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE 834
DATE ON WHICH EMPLOYMENT BEGINS, THE INDIVIDUAL SHALL ELECT TO 835
PARTICIPATE EITHER IN THE PLAN DESCRIBED IN SECTIONS 3309.18 TO 836
3309.70 OF THE REVISED CODE OR ONE OF THE PLANS ESTABLISHED UNDER 838
SECTION 3309.81 OF THE REVISED CODE. IF A FORM EVIDENCING AN 839
ELECTION UNDER THIS SECTION IS NOT ON FILE WITH THE EMPLOYER AT 840
THE END OF THE ONE-HUNDRED-EIGHTY-DAY PERIOD, THE INDIVIDUAL IS 842
DEEMED TO HAVE ELECTED TO PARTICIPATE IN THE PLAN DESCRIBED IN 844
SECTIONS 3309.18 TO 3309.70 OF THE REVISED CODE. 845
(B) AN ELECTION UNDER THIS SECTION SHALL BE MADE IN 847
WRITING ON A FORM PROVIDED BY THE RETIREMENT SYSTEM AND FILED 848
WITH THE EMPLOYER'S PERSONNEL OFFICER. NOT LATER THAN TEN DAYS 850
AFTER RECEIVING THE FORM EVIDENCING THE ELECTION, THE EMPLOYER 851
SHALL TRANSMIT TO THE SYSTEM A COPY THAT INCLUDES A STATEMENT 852
CERTIFYING THAT IT IS A TRUE AND ACCURATE COPY OF THE ORIGINAL. 853
(C) AN ELECTION UNDER THIS SECTION SHALL TAKE EFFECT ON 855
THE DATE EMPLOYMENT BEGAN AND IS IRREVOCABLE ON RECEIPT BY THE 856
EMPLOYER.
(D) AN INDIVIDUAL IS INELIGIBLE TO MAKE AN ELECTION UNDER 858
THIS SECTION IF EITHER OF THE FOLLOWING APPLIES: 859
(1) AT THE TIME EMPLOYMENT BEGINS, THE INDIVIDUAL IS 861
20
ALREADY A MEMBER OR CONTRIBUTOR PARTICIPATING IN THE PLAN 862
DESCRIBED IN SECTIONS 3309.18 TO 3309.70 OF THE REVISED CODE OR 863
AN SERS RETIRANT, AS DEFINED IN SECTION 3309.341 OF THE REVISED 864
CODE.
(2) AN ELECTION TO PARTICIPATE IN AN ALTERNATIVE 866
RETIREMENT PLAN UNDER SECTION 3305.05 OF THE REVISED CODE IS IN 867
EFFECT FOR EMPLOYMENT COVERED BY THE SYSTEM. 868
Sec. 3309.252. (A) A MEMBER OF THE SCHOOL EMPLOYEES 870
RETIREMENT SYSTEM, WHO, AS OF THE LAST DAY OF THE MONTH 872
IMMEDIATELY PRECEDING THE DATE ON WHICH THE SYSTEM ESTABLISHES A 873
PLAN UNDER SECTION 3309.81 OF THE REVISED CODE, HAS LESS THAN 874
FIVE YEARS OF TOTAL SERVICE CREDIT IS ELIGIBLE TO MAKE AN 875
ELECTION UNDER THIS SECTION.
NOT LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE DAY THE 877
BOARD FIRST ESTABLISHES ONE OR MORE PLANS UNDER SECTION 3309.81 878
OF THE REVISED CODE, AN ELIGIBLE MEMBER MAY ELECT TO PARTICIPATE 880
IN A PLAN ESTABLISHED UNDER THAT SECTION. IF AN ELECTION IS NOT 881
MADE, A MEMBER TO WHOM THIS SECTION APPLIES IS DEEMED TO HAVE 883
ELECTED TO CONTINUE PARTICIPATING IN THE PLAN DESCRIBED IN 884
SECTIONS 3309.18 TO 3309.70 OF THE REVISED CODE. 885
(B) AN ELECTION UNDER THIS SECTION SHALL BE MADE IN 887
WRITING ON A FORM PROVIDED BY THE SYSTEM AND FILED WITH THE 888
SYSTEM.
(C) ON RECEIPT OF AN ELECTION UNDER THIS SECTION, THE 890
SYSTEM SHALL DO BOTH OF THE FOLLOWING: 891
(1) CREDIT TO THE ACCOUNT OF THE MEMBER IN THE DEFINED 893
CONTRIBUTION FUND THE ACCUMULATED CONTRIBUTIONS STANDING TO THE 894
MEMBER'S CREDIT IN THE EMPLOYEES' SAVINGS FUND; 895
(2) CANCEL ALL SERVICE CREDIT AND ELIGIBILITY FOR ANY 897
PAYMENT, BENEFIT, OR RIGHT UNDER THE PLAN DESCRIBED IN SECTIONS 898
3309.18 TO 3309.70 OF THE REVISED CODE. 899
(D) AN ELECTION UNDER THIS SECTION SHALL BE IRREVOCABLE ON 902
RECEIPT BY THE SYSTEM. 903
Sec. 3309.253. A MEMBER OF THE SCHOOL EMPLOYEES RETIREMENT 905
21
SYSTEM WHO ELECTS TO PARTICIPATE IN A PLAN ESTABLISHED UNDER 906
SECTION 3309.81 OF THE REVISED CODE SHALL BE INELIGIBLE FOR ANY 908
BENEFIT OR PAYMENT UNDER SECTIONS 3309.18 TO 3309.70 OF THE 909
REVISED CODE AND SHALL BE FOREVER BARRED FROM CLAIMING OR 911
PURCHASING SERVICE CREDIT WITH ANY STATE RETIREMENT SYSTEM, AS 912
DEFINED IN SECTION 145.30 OF THE REVISED CODE, FOR SERVICE 913
COVERED BY THE ELECTION. 914
Sec. 3309.341. (A) As used in this section: 923
(1) "SERS retirant" means any person who is receiving a 925
retirement allowance from the school employees retirement system 926
under section 3309.36, 3309.38, or 3309.381 of the Revised Code 927
OR ANY BENEFIT PAID UNDER A PLAN ESTABLISHED UNDER SECTION 928
3309.81 OF THE REVISED CODE.
(2) "Other system retirant" means a member or former 930
member of the public employees retirement system, Ohio police and 932
fire pension fund, state teachers retirement system, state 933
highway patrol retirement system, or Cincinnati retirement system 934
who is receiving age and service or commuted age and service 935
retirement, or a disability benefit from a system of which the 936
retirant is a member or former member.
(B)(1) An SERS retirant or other system retirant may be 938
employed by a public employer. If so employed, the SERS retirant 939
or other system retirant shall contribute to the school employees 940
retirement system in accordance with section 3309.47 of the 941
Revised Code, and the employer shall make contributions in 942
accordance with section 3309.49 of the Revised Code. 943
(2) An employer that employs an SERS retirant or other 945
system retirant shall notify the retirement board of the 946
employment not later than the end of the month in which the 947
employment commences. On receipt of notice from an employer that 948
a person who is an other system retirant has been employed, the 949
school employees retirement system shall notify the state 950
retirement system of which the other system retirant was a member 951
of such employment. 952
22
(C) An SERS retirant or other system retirant who has 954
received a retirement allowance or disability benefit for less 956
than two months when employment subject to this section commences 957
shall forfeit the retirement allowance or disability benefit for 959
the period that begins on the date the employment commences and 960
ends on the date that is two months after the date on which the 961
retirement allowance or disability benefit commenced. Service 962
and contributions for that period shall not be included in the 963
calculation of any benefits payable to the SERS retirant or other 964
system retirant, and those contributions shall be refunded on 965
death or termination of the employment. 966
(D) On receipt of notice from the Ohio police and fire 969
pension fund, public employees retirement system, or state 971
teachers retirement system of the re-employment of an SERS 972
retirant, the school employees retirement system shall not pay,
or if paid shall recover, the amount to be forfeited by the SERS 973
retirant in accordance with section 145.38, 742.26, or 3307.35 of 975
the Revised Code.
(E)(1) On termination of employment under this section, an 977
SERS retirant or other system retirant may file an application 978
with the school employees retirement system for a benefit under 979
this division, which shall consist of a single life annuity 980
having a reserve equal to the amount of the retirant's 981
accumulated contributions for the period of employment and an 983
equal amount of the employer's contributions, plus interest 984
credited to the date of retirement at the rate provided in 985
division (I)(2) of section 3309.01 of the Revised Code. The SERS 986
retirant or other system retirant shall elect either to receive 987
the benefit as a monthly annuity for life or a lump-sum payment 988
discounted to the present value using the current actuarial 989
assumption rate of interest, except that if the monthly annuity 990
would be less than twenty-five dollars per month, the retirant 992
shall receive a lump-sum payment.
(2) A benefit payable under this division shall commence 994
23
on the first day of the month after the latest of the following: 995
(a) The last day for which compensation for employment 997
subject to this section was paid; 998
(b) Attainment by the SERS retirant or other system 1,000
retirant of age sixty-five; 1,001
(c) If the SERS retirant or other system retirant was 1,003
previously employed under this section and is receiving or 1,004
previously received a benefit under this division, completion of 1,005
a period of twelve months since the effective date of that 1,006
benefit. 1,007
(3) An SERS retirant or other system retirant subject to 1,009
this section is not a member of the school employees retirement 1,010
system; does not have any of the rights, privileges, or 1,011
obligations of membership, except as specified in this section; 1,012
and is not eligible to receive health, medical, hospital, or 1,013
surgical benefits under section 3309.69 of the Revised Code for 1,014
employment subject to this section. No amount received under 1,015
this division shall be included in determining an additional 1,016
benefit under section 3309.374 of the Revised Code or any other 1,017
post-retirement benefits. 1,018
(F)(1) If an SERS retirant or other system retirant dies 1,020
while employed in employment subject to this section, a lump-sum 1,021
payment calculated in accordance with division (E)(1) of this 1,022
section shall be paid to the beneficiary under division (H) of 1,023
this section. 1,024
(2) If at the time of death an SERS retirant or other 1,026
system retirant receiving a monthly annuity has received less 1,027
than the retirant would have received as a lump-sum payment, the 1,030
difference between the amount received and the amount that would 1,032
have been received as a lump-sum payment shall be paid to the 1,033
retirant's beneficiary under division (H) of this section. 1,035
(G) If the disability benefit of an other system retirant 1,037
employed under this section is terminated, the retirant shall 1,038
become a member of the school employees retirement system, 1,040
24
effective on the first day of the month next following the 1,041
termination, with all the rights, privileges, and obligations of 1,042
membership. If the retirant, after the termination of the 1,044
disability benefit, earns two years of service credit under this 1,046
retirement system or under the public employees retirement 1,047
system, Ohio police and fire pension fund, state teachers 1,048
retirement system, or state highway patrol retirement system, the 1,050
retirant's prior contributions as an other system retirant under 1,052
this section shall be included in the retirant's total service 1,053
credit as a school employees retirement system member, and the 1,055
retirant shall forfeit all rights and benefits of this section. 1,057
Not more than one year of credit may be given for any period of 1,058
twelve months.
(H) An SERS retirant or other system retirant employed 1,060
under this section may designate one or more persons as 1,061
beneficiary to receive any benefits payable under this section 1,062
due to death. The designation shall be in writing duly executed 1,064
on a form provided by the school employees retirement board, 1,065
signed by the SERS retirant or other system retirant, and filed 1,066
with the board prior to death. The last designation of a 1,067
beneficiary revokes all previous designations. The SERS
retirant's or other system retirant's marriage, divorce, marriage 1,068
dissolution, legal separation, withdrawal of account, birth of 1,069
the retirant's child, or adoption of a child revokes all previous 1,071
designations. If there is no designated beneficiary, the 1,072
beneficiary is the beneficiary designated under division (D) of 1,073
section 3309.44 of the Revised Code. If any benefit payable 1,074
under this section due to the death of an SERS retirant or other 1,075
system retirant is not claimed by a beneficiary within five years 1,076
after the death, the amount payable shall be transferred to the 1,077
guarantee fund and thereafter paid to the beneficiary or the 1,078
estate of the SERS retirant or other system retirant on 1,079
application to the board. 1,080
(I) This section does not affect the receipt of benefits 1,082
25
by or eligibility for benefits of any person who on August 29, 1,083
1976, was receiving a disability benefit or service retirement 1,084
pension or allowance from a state or municipal retirement system 1,085
in Ohio and was a member of any other state or municipal 1,086
retirement system of this state. 1,087
(J) The school employees retirement board may adopt rules 1,089
to carry out this section. 1,090
Sec. 3309.36. (A) A member retiring on service retirement 1,100
shall be granted a retirement allowance consisting of the lesser 1,101
of the sum of the following amounts or the limit established by 1,102
section 415 of the "Internal Revenue Code of 1986," 100 Stat. 1,103
2085, 26 U.S.C.A. 415, as amended: 1,104
(1) An annuity having a reserve equal to the amount of the 1,106
employee's accumulated contributions at that time; 1,107
(2) A pension of equivalent amount; 1,109
(3) An additional pension of forty dollars multiplied by 1,111
the number of years of such prior service credit; 1,112
(4) For members who have ten or more years of service 1,114
credit accumulated prior to October 1, 1956, a basic annual 1,115
pension equal to one hundred eighty dollars, except that such 1,116
basic annual pension shall not exceed the sum of the total annual 1,117
benefits provided by divisions (A)(1), (2), and (3) of this 1,119
section.
(B)(1) When a member retires on service retirement, the 1,121
member's allowance when computed as an annual single lifetime 1,123
allowance as provided in divisions (A)(1), (2), (3), and (4) of 1,125
this section and section 3309.38 of the Revised Code, based upon 1,126
attained age sixty-five or thirty years of total service credit, 1,127
shall be not less than the greater of the amounts determined by 1,129
multiplying the member's total service credit by the following: 1,131
(a) Eighty-six dollars; 1,133
(b) Two and one-tenth TWO-TENTHS per cent of the member's 1,136
final average salary for each of the first thirty years of 1,137
service credit or fraction thereof plus two and one-half per cent 1,138
26
of the member's final average salary for each subsequent year of
service credit or fraction thereof. 1,139
(2) The annual single lifetime allowance determined under 1,143
division (B)(1) of this section shall be adjusted by the greater 1,144
percentage shown in the following schedule opposite the member's 1,146
attained age or years of Ohio service credit: 1,147
Years of Per Cent 1,149
Attained or Ohio Service of 1,151
Age Credit Base Amount 1,152
58 25 75% 1,155
59 26 80 1,158
60 27 85 1,161
61 88 1,164
28 90 1,167
62 91 1,170
63 94 1,173
29 95 1,176
64 97 1,179
65 30 or more 100 1,182
Members shall vest the right to a benefit in accordance with the 1,185
following schedule, based on the member's attained age by 1,186
September 1, 1976: 1,187
Per Cent 1,189
Attained of 1,190
Age Base Amount 1,191
66 102 1,192
67 104 1,193
68 106 1,194
69 108 1,195
70 or more 110 1,196
(3) The annual single lifetime allowance which a retirant 1,198
shall receive under this division shall not exceed the lesser of 1,199
ninety ONE HUNDRED per cent of the member's final average salary 1,200
or the limit established by section 415 of the "Internal Revenue 1,203
27
Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended. 1,204
(C) Retirement allowances determined under this section 1,206
shall be paid as provided in section 3309.46 of the Revised Code. 1,207
Sec. 3309.374. (A) Beginning April 1, 1971, and each year 1,216
thereafter, the board of the school employees retirement system 1,217
shall determine the average percentage change in the consumer 1,218
price index prepared by the United States bureau of labor 1,219
statistics (U.S. City Average for Urban Wage Earners and Clerical 1,220
Workers: "All Items 1982-84=100") for the twelve-calendar-month 1,221
period prior to the first day of January over the next preceding 1,223
twelve-calendar-month period, as reported by the bureau. 1,224
Upon a determination by the board in any year that the 1,226
change in the consumer price index is an increase or that the 1,228
change plus the accumulation described in division (B) of this 1,229
section is an increase, the board shall increase each allowance, 1,230
pension, or benefit payable under this chapter by a percentage
equal to the percentage increase in the consumer price index or 1,231
to that increase plus the accumulation, except that the increase 1,232
shall not exceed three per cent and no allowance, pension, or 1,233
benefit shall exceed the limit established by section 415 of the 1,234
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415, 1,235
as amended. 1,236
The first increase is payable to all persons becoming 1,238
eligible after June 30, 1971, upon such persons receiving an 1,239
allowance, pension, or benefit for twelve months. 1,240
The increased amount is payable for the ensuing 1,242
twelve-month period or until the next increase is granted under 1,243
this section, whichever is later. Subsequent increases shall be 1,244
determined from the date of the first increase paid to the former 1,245
member in the case of an allowance being paid a beneficiary under 1,246
an option, or from the date of the first increase to the survivor 1,247
first receiving an allowance or benefit in the case of an 1,248
allowance or benefit being paid to the subsequent survivors of 1,249
the former member. 1,250
28
The date of the first increase under this section becomes 1,253
the anniversary date for any future increases.
The allowance or benefit used in the first calculation of 1,255
an increase under this section shall remain as the base for all 1,256
future increases, unless a new base is established. ANY INCREASE 1,257
RESULTING FROM PAYMENT OF A RECALCULATED BENEFIT UNDER SECTION 3 1,258
OF SUBSTITUTE SENATE BILL NO. 270 OF THE 123rd GENERAL ASSEMBLY 1,261
SHALL BE INCLUDED IN THE CALCULATION OF FUTURE INCREASES UNDER 1,262
THIS SECTION.
(B) Any percentage of change in the consumer price index 1,264
in any year that is in excess of three per cent shall be 1,265
accumulated and used to determine increases under this section in 1,266
subsequent years. Any percentage of change in the consumer price 1,267
index accumulated by an eligible person prior to the effective 1,268
date of this amendment SEPTEMBER 27, 1996, shall be used in 1,269
determining any future increases under this section. 1,270
(C) The board shall make all rules necessary to carry out 1,272
this section. 1,273
Sec. 3309.381. (A) A recipient of a disability allowance 1,282
under section 3309.401 of the Revised Code who is subject to 1,283
division (C)(3) of that section may make application for service 1,284
retirement under this section. Retirement shall be effective on 1,285
the first day of the first month following the last day for which 1,286
the disability allowance is paid. 1,287
(B) The annual allowance payable under this section shall 1,289
consist of the sum of the amounts determined under divisions 1,290
(B)(1) and (2) of this section: 1,291
(1) The greater of the following: 1,293
(a) An allowance calculated as provided in section 3309.36 1,295
of the Revised Code, excluding any period during which the 1,296
applicant received a disability benefit under section 3309.401 of 1,297
the Revised Code; 1,298
(b) An allowance calculated by multiplying the applicant's 1,300
total service credit, including service credit for the last 1,301
29
continuous period during which he THE APPLICANT received a 1,302
disability benefit under section 3309.401 of the Revised Code, by 1,304
two and one-tenth TWO-TENTHS per cent of his THE APPLICANT'S 1,306
final average salary, except that the allowance shall not exceed 1,308
forty-five per cent of the applicant's final average salary. 1,309
(2) An amount equal to the additional allowance the 1,311
recipient would receive under section 3309.374 of the Revised 1,312
Code, plus any other additional amount he THE RECIPIENT would 1,313
receive under this chapter, had he THE RECIPIENT retired under 1,315
section 3309.36 of the Revised Code effective on the effective 1,317
date of his THE RECIPIENT'S most recent continuous period of 1,319
receipt of a disability benefit under section 3309.401 of the 1,320
Revised Code.
(C) The allowance calculated under division (B) of this 1,322
section, exclusive of any amount added under division (B)(2) of 1,323
this section based on section 3309.374 of the Revised Code, shall 1,324
be the base for all future additional allowances under section 1,325
3309.374 of the Revised Code. 1,326
The anniversary date for future additional allowances under 1,328
section 3309.374 of the Revised Code shall be the effective date 1,329
of the recipient's most recent continuous period of receipt of a 1,330
disability benefit under section 3309.401 of the Revised Code. 1,331
(D) The retirement allowance determined under this section 1,333
shall be paid as provided in section 3309.46 of the Revised Code. 1,334
Sec. 3309.40. A member who has elected disability coverage 1,343
under this section, has not attained age sixty, and is determined 1,344
by the school employees retirement board under section 3309.39 of 1,345
the Revised Code to qualify for a disability beenfit BENEFIT 1,346
shall be retired on disability under this section. 1,348
Upon disability retirement, a member shall receive an 1,350
annual amount that shall consist of: 1,351
(A) An annuity having a reserve equal to the amount of the 1,353
member's accumulated contributions; 1,354
(B) A pension that shall be the difference between his THE 1,356
30
MEMBER'S annuity and an annual amount determined by multiplying 1,358
the total service credit of such member, and in addition thereto, 1,359
the number of years and fractions thereof between the effective 1,360
date of his THE MEMBER'S disability retirement and attained age 1,361
sixty, assuming continuous service, by eighty-six dollars, or by 1,363
two and one-tenth TWO-TENTHS per cent of his THE MEMBER'S final 1,365
average salary, whichever is greater. 1,367
Where the member is not receiving a disability benefit 1,369
under section 3309.35 of the Revised Code and is receiving a 1,370
disability benefit from either the public employees retirement 1,371
system or the state teachers retirement system, then such member 1,372
shall not be eligible for service credit based upon the number of 1,373
years and fractions thereof between the effective date of 1,374
disability and attained age sixty as provided for in this 1,375
division. 1,376
Such disability retirement shall not be less than thirty 1,378
per cent nor more than seventy-five per cent of the member's 1,379
final average salary, except that it shall not exceed any limit 1,380
to which the retirement system is subject under section 415 of 1,381
the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 1,382
415, as amended. 1,383
The school employees retirement board is the final 1,385
authority in determining the eligibility of a member for such 1,386
form of retirement. 1,387
Sec. 3309.401. (A) A member with disability coverage 1,396
under this section who is determined by the school employees 1,397
retirement board under section 3309.39 of the Revised Code to 1,398
qualify for a disability benefit shall receive a disability 1,399
allowance under this section. The allowance shall be an annual 1,400
amount equal to the greater of the following: 1,401
(1) Forty-five per cent of the member's final average 1,403
salary; 1,404
(2) The member's total service credit multiplied by two 1,406
and one-tenth TWO-TENTHS per cent of his THE MEMBER'S final 1,408
31
average salary, not exceeding sixty per cent of his THE MEMBER'S 1,410
final average salary.
(B) Sufficient reserves for payment of the disability 1,412
allowance shall be transferred to the annuity and pension reserve 1,413
fund from the employers' accumulation fund. The accumulated 1,414
contributions of the member shall remain in the employees' 1,415
savings fund. No part of the allowance paid under this section 1,416
shall be charged against the member's accumulated contributions. 1,417
(C) A disability allowance paid under this section shall 1,419
terminate at the earliest of the following: 1,420
(1) The effective date of service retirement under section 1,422
3309.35, 3309.36, or 3309.38 of the Revised Code; 1,423
(2) The date the allowance is terminated under section 1,425
3309.41 of the Revised Code; 1,426
(3) The later of the last day of the month in which the 1,428
recipient attains age sixty-five, or the last day of the month in 1,429
which the benefit period ends as follows: 1,430
Attained Age at Effective Date 1,432
of Disability Allowance Benefit Period 1,434
60 or 61 60 months 1,436
62 or 63 48 months 1,437
64 or 65 36 months 1,438
66, 67, or 68 24 months 1,439
69 or older 12 months 1,440
Sec. 3309.45. Except as provided in division (C)(1) of 1,450
this section, in lieu of accepting the payment of the accumulated 1,452
account of a member who dies before service retirement, the 1,453
beneficiary, as determined in section 3309.44 of the Revised 1,454
Code, may elect to forfeit the accumulated account and to 1,455
substitute certain other benefits either under division (A) or 1,456
(B) of this section.
(A) If a deceased member was eligible for a service 1,458
retirement allowance as provided in section 3309.36, 3309.38, or 1,459
3309.381 of the Revised Code, a surviving spouse or other sole 1,460
32
dependent beneficiary may elect to receive a monthly benefit 1,462
computed as the joint-survivor allowance designated as "plan D" 1,463
in section 3309.46 of the Revised Code, which the member would 1,464
have received had the member retired on the last day of the month 1,465
of death and had the member at that time selected such 1,466
joint-survivor plan. Payment shall begin with the month 1,467
subsequent to the member's death. 1,468
(B) If the deceased member had completed at least one and 1,470
one-half years of credit for Ohio service, with at least 1,471
one-quarter year of Ohio contributing service credit within the 1,472
two and one-half years prior to the date of death, or was 1,473
receiving at the time of death a disability benefit as provided 1,474
in section 3309.40 or 3309.401 of the Revised Code, qualified 1,475
survivors may WHO elect to receive monthly benefits, SHALL 1,477
RECEIVE THE GREATER OF THE BENEFITS provided in divisions 1,478
DIVISION (B)(1) and (5)(a) OR (b) AS ALLOCATED IN ACCORDANCE WITH 1,479
DIVISION (B)(6) of this section. 1,480
(1)(a) Number 1,482
of Qualified 1,483
Or 1,484
survivors Annual Benefit as a Per Monthly Benefit 1,486
affecting Cent of Decedent's shall not be 1,489
Final
the benefit Average Salary less than 1,492
1 25% $ 96 1,495
2 40 186 1,496
3 50 236 1,497
4 55 236 1,498
5 or more 60 236 1,499
(b) YEARS OF SERVICE ANNUAL BENEFIT AS A PER 1,503
CENT OF 1,504
MEMBER'S FINAL AVERAGE SALARY 1,505
20 29% 1,508
21 33 1,509
33
22 37 1,510
23 41 1,511
24 45 1,512
25 48 1,513
26 51 1,514
27 54 1,515
28 57 1,516
29 OR MORE 60 1,519
(2) THE FINAL AVERAGE SALARY USED IN THE CALCULATION OF A 1,522
BENEFIT PAYABLE PURSUANT TO THIS DIVISION TO A QUALIFIED SURVIVOR 1,523
OF A DISABILITY BENEFIT RECIPIENT SHALL BE ADJUSTED FOR EACH YEAR 1,524
BETWEEN THE DISABILITY BENEFIT'S EFFECTIVE DATE AND THE 1,525
RECIPIENT'S DATE OF DEATH BY THE LESSER OF THREE PER CENT OR THE 1,526
ACTUAL AVERAGE PERCENTAGE INCREASE IN THE CONSUMER PRICE INDEX 1,527
PREPARED BY THE UNITED STATES BUREAU OF LABOR STATISTICS (U.S. 1,531
CITY AVERAGE FOR URBAN WAGE EARNERS AND CLERICAL WORKERS: "ALL 1,534
ITEMS 1982-84=100"). 1,535
(3) Benefits shall begin as qualified survivors meet 1,538
eligibility requirements as follows: 1,539
(a) A qualified spouse is the surviving spouse of the 1,541
deceased member who is age sixty-two, or REGARDLESS OF age fifty 1,544
if the deceased member had ten or more years of Ohio service 1,545
credit, or regardless of age if caring for a surviving child, or 1,547
regardless of age if adjudged physically or mentally incompetent. 1,548
(b) A qualified child is any unmarried child of the 1,552
deceased member WHO HAS NEVER BEEN MARRIED AND TO WHOM ONE OF THE 1,553
FOLLOWING APPLIES: 1,554
(i) IS under age eighteen, or under age twenty-two if the 1,557
child is attending an institution of learning or training
pursuant to a program designed to complete in each school year 1,558
the equivalent of at least two-thirds of the full-time curriculum 1,559
requirements of such institution and as further determined by 1,560
board policy, or regardless; 1,561
(ii) REGARDLESS of age if, IS adjudged physically or 1,564
34
mentally incompetent IF THE INCOMPETENCE EXISTED PRIOR TO THE 1,566
MEMBER'S DEATH AND PRIOR TO THE CHILD ATTAINING AGE EIGHTEEN, OR 1,567
AGE TWENTY-TWO IF ATTENDING AN INSTITUTION DESCRIBED IN DIVISION 1,568
(B)(2)(b)(i) OF THIS SECTION. 1,569
(c) A qualified parent is a dependent parent aged 1,571
sixty-five or older. 1,572
(3)(4) "Physically or mentally incompetent" as used in 1,574
this section may be determined by a court of jurisdiction, or by 1,575
a physician appointed by the retirement board. Incapability of 1,576
earning a living because of a physically or mentally disabling 1,577
condition shall meet the qualifications of this division. 1,578
(4)(5) Benefits to a qualified survivor shall terminate 1,580
upon a first marriage, abandonment, adoption, or during active 1,583
military service. Benefits to a deceased member's surviving 1,585
spouse that were terminated under a former version of this 1,586
section that required termination due to remarriage and were not 1,587
resumed prior to the effective date of this amendment shall 1,588
resume on the first day of the month immediately following
receipt by the board of an application on a form provided by the 1,589
board.
Upon the death of any subsequent spouse who was a member of 1,592
the public employees retirement system, state teachers retirement 1,593
system, or school employees retirement system, the surviving 1,594
spouse of such member may elect to continue receiving benefits 1,595
under this division, or to receive survivor's benefits, based 1,596
upon the subsequent spouse's membership in one or more of the 1,597
systems, for which such surviving spouse is eligible under this 1,598
section or section 145.45 or 3307.66 of the Revised Code. If the 1,600
surviving spouse elects to continue receiving benefits under this 1,601
division, such election shall not preclude the payment of 1,602
benefits under this division to any other qualified survivor. 1,603
Benefits shall begin or resume on the first day of the 1,605
month following the attainment of eligibility and shall terminate 1,606
on the first day of the month following loss of eligibility. 1,607
35
(5) Benefits (6)(a) IF A BENEFIT IS PAYABLE UNDER 1,609
DIVISION (B)(1)(a) OF THIS SECTION, BENEFITS to a qualified 1,611
spouse shall be paid in the amount determined for the first 1,612
qualifying survivor in division (B)(1)(a) of this section, but 1,614
shall not be less than one hundred six dollars per month if the 1,615
deceased member had ten or more years of Ohio service credit. 1,616
All other qualifying survivors shall share equally in the benefit 1,618
or remaining portion thereof.
(6)(b) ALL QUALIFYING SURVIVORS SHALL SHARE EQUALLY IN A 1,621
BENEFIT PAYABLE UNDER DIVISION (B)(1)(b) OF THIS SECTION, EXCEPT 1,623
THAT IF THERE IS A SURVIVING SPOUSE THE SURVIVING SPOUSE SHALL
RECEIVE NO LESS THAN THE GREATER OF THE AMOUNT DETERMINED FOR THE 1,624
FIRST QUALIFYING SURVIVOR IN DIVISION (B)(1)(a) OF THIS SECTION 1,626
OR ONE HUNDRED SIX DOLLARS PER MONTH. 1,628
(7) The beneficiary of a member who is also a member of 1,630
the public employees retirement system, or of the state teachers 1,631
retirement system, must forfeit the member's accumulated 1,632
contributions in those systems, if the beneficiary takes a 1,635
survivor benefit. Such benefit shall be exclusively governed by 1,636
section 3309.35 of the Revised Code. 1,637
(C)(1) Regardless of whether the member is survived by a 1,641
spouse or designated beneficiary, if the school employees
retirement system receives notice that a deceased member 1,642
described in division (A) or (B) of this section has one or more 1,644
qualified children, all persons who are qualified survivors under 1,645
Division (B) of this section shall receive monthly benefits as 1,648
provided in division (B) of this section. 1,649
If, after determining the monthly benefits to be paid under 1,651
division (B) of this section, the system receives notice that 1,652
there is a qualified survivor who was not considered when the 1,653
determination was made, the system shall, notwithstanding section 1,654
3309.661 of the Revised Code, recalculate the monthly benefits 1,655
with that qualified survivor included, even if the benefits to 1,656
qualified survivors already receiving benefits are reduced as a 1,657
36
result. The benefits shall be calculated as if the qualified 1,658
survivor who is the subject of the notice became eligible on the
date the notice was received and shall be paid to qualified 1,659
survivors effective on the first day of the first month following 1,660
the system's receipt of the notice. 1,661
If the retirement system did not receive notice that a 1,663
deceased member has one or more qualified children prior to 1,665
making payment under section 3309.44 of the Revised Code to a 1,668
beneficiary as determined by the retirement system, the payment 1,669
is a full discharge and release of the system from any future 1,670
claims under this section or section 3309.44 of the Revised Code. 1,671
(2) If benefits under division (C)(1) of this section to 1,674
all persons, or to all persons other than a surviving spouse or 1,676
other sole beneficiary, terminate, there are no children under
the age of twenty-two years, and the surviving spouse or 1,677
beneficiary qualifies for benefits under division (A) of this 1,679
section, the surviving spouse or beneficiary may elect to receive 1,680
benefits under division (A) of this section. Benefits shall be 1,681
effective on the first day of the month following receipt by the 1,683
board of an application for benefits under division (A) of this 1,684
section. 1,685
(D) If the survivor benefits due and paid under this 1,687
section are in a total amount less than the member's accumulated 1,688
account that was transferred from the employees' savings fund, 1,689
the state teachers retirement fund, and the public employees 1,690
retirement fund to the survivors' benefit fund, then the 1,691
difference between the total amount of the benefits paid shall be 1,692
paid to the beneficiary under section 3309.44 of the Revised 1,693
Code. 1,694
Sec. 3309.47. Each school employees retirement system 1,703
contributor shall contribute eight per cent of his THE 1,704
CONTRIBUTOR'S compensation to the employees' savings fund, except 1,706
that the school employees retirement board may raise the 1,707
contribution rate to a rate not greater than ten per cent of 1,708
37
compensation.
The contributions by the direction of the school employees 1,710
retirement board shall be deducted by the employer from the 1,711
compensation of each contributor on each payroll of such 1,712
contributor for each payroll period and shall be an amount equal 1,713
to the required per cent of such contributor's compensation. ON 1,715
A FINDING BY THE BOARD THAT AN EMPLOYER HAS FAILED OR REFUSED TO 1,716
DEDUCT CONTRIBUTIONS FOR ANY EMPLOYEE DURING ANY YEAR AND TO
TRANSMIT SUCH AMOUNTS TO THE RETIREMENT SYSTEM, THE RETIREMENT 1,717
BOARD MAY MAKE A DETERMINATION OF THE AMOUNT OF THE DELINQUENT 1,718
CONTRIBUTIONS, INCLUDING INTEREST AT A RATE SET BY THE RETIREMENT 1,719
BOARD, FROM THE END OF EACH YEAR, AND CERTIFY TO THE EMPLOYER THE 1,720
AMOUNTS FOR COLLECTION. IF THE AMOUNT IS NOT PAID BY THE 1,721
EMPLOYER, IT MAY BE CERTIFIED FOR COLLECTION IN THE SAME MANNER 1,722
AS PAYMENTS DUE THE EMPLOYERS' TRUST FUND. ANY AMOUNTS SO 1,723
COLLECTED SHALL BE HELD IN TRUST PENDING RECEIPT OF A REPORT OF 1,724
CONTRIBUTIONS FOR THE EMPLOYEE FOR THE PERIOD INVOLVED AS 1,725
PROVIDED BY LAW AND, THEREAFTER, THE AMOUNT IN TRUST SHALL BE 1,726
TRANSFERRED TO THE EMPLOYEE'S SAVINGS FUND TO THE CREDIT OF THE 1,727
EMPLOYEE. ANY AMOUNT REMAINING AFTER THE TRANSFER TO THE 1,728
EMPLOYEES' SAVINGS FUND SHALL BE TRANSFERRED TO THE EMPLOYERS' 1,729
TRUST FUND AS A CREDIT OF THE EMPLOYER. 1,730
Any contributor under contract who, because of illness, 1,732
accident, or other reason approved by the employer, is prevented 1,733
from making his THE CONTRIBUTOR'S contribution to the system for 1,734
any payroll period, may, upon returning to contributing service, 1,736
have such deductions made from other payrolls during the year, or 1,737
may pay such amount to the employer and the employer shall 1,738
transmit such deductions to the system. The deductions shall be 1,739
made notwithstanding that the minimum compensation for any 1,740
contributor shall be reduced thereby. Every contributor shall be 1,741
deemed to consent and agree to the contributions made and 1,742
provided for in this section and shall receipt in full for his 1,743
THE CONTRIBUTOR'S salary or compensation, and payment, less the 1,745
38
contributions, is a full and complete discharge and acquittance 1,746
of all claims and demands whatsoever for the services rendered by 1,747
the person during the period covered by the payment. 1,748
Each contributor shall pay with the first payment to the 1,750
employees' savings fund each year a sum to be determined by the 1,751
board, as provided by law, which amount shall be credited to the 1,752
expense fund. The payments for the expense fund shall be made to 1,753
the board in the same way as payments to the employees' savings 1,754
fund are made. 1,755
Additional deposits may be made to a member's account. At 1,757
retirement, the amount deposited with interest may be used to 1,758
provide additional annuity income. The additional deposits may 1,759
be refunded to the member before retirement, and shall be 1,760
refunded if the member withdraws his THE MEMBER'S refundable 1,761
amount. The deposits may be refunded to the beneficiary or 1,763
estate if the member dies before retirement, and the board shall 1,764
determine whether regular interest shall be credited to deposits 1,765
thus refunded. 1,766
Sec. 3309.49. Each employer shall pay annually to the 1,775
employers' trust fund SCHOOL EMPLOYEES RETIREMENT SYSTEM an 1,776
amount certified by the secretary that shall be a certain per 1,778
cent of the earnable compensation of all employees, and shall be 1,779
known as the "employer contribution." The rate per cent of such 1,780
contribution shall be fixed by the actuary on the basis of his 1,781
THE ACTUARY'S evaluation of the liabilities of the school 1,783
employees retirement system, but shall not exceed fourteen per 1,784
cent, and shall be approved by the school employees retirement 1,785
board. The school employees retirement board may raise the rate 1,786
per cent of the contribution to fourteen per cent of the earnable 1,787
compensation of all employees. In making such evaluation, the 1,788
actuary shall use, as the actuarial assumptions, regular interest 1,789
and such mortality and other tables as are adopted by the school 1,790
employees retirement board. He THE ACTUARY shall compute the 1,792
percentage of such earnable compensation, to be known as the 1,793
39
"employer rate," required annually to fund the liability for all 1,794
allowances, annuities, pensions and other benefits, and any 1,795
deficiencies in the various funds, provided for in this chapter, 1,796
after deducting therefrom the annuity and other benefits provided 1,797
by the contributor's accumulated contributions and deposits or 1,798
other applicable moneys.
Sec. 3309.53. Each employer, before employing any employee 1,807
to whom sections 3309.01 to 3309.68, inclusive, of the Revised 1,809
Code, THIS CHAPTER may apply, shall give such person a written 1,811
statement of his THE PERSON'S duties and obligations under such 1,812
sections as a condition of his employment, which statement shall 1,813
be prepared and supplied to each employer by the school employees 1,814
retirement board.
Any such appointment or reappointment of any employee, or 1,816
service upon indefinite tenure, shall be conditioned upon the 1,817
employee's acceptance of such sections as a part of the contract. 1,818
Sec. 3309.54. During September of each year, or at such 1,827
other time as the school employees retirement board approves, 1,828
each employer shall certify to the board the names of all 1,829
employees to whom sections 3309.01 to 3309.68, inclusive, of the 1,830
Revised Code, apply THIS CHAPTER APPLIES.
Sec. 3309.55. Each employer shall on the first day of each 1,839
calendar month, or at such less frequent intervals as the school 1,840
employees retirement board approves, notify the board of the 1,841
employment of new employees, removals, withdrawals, and changes 1,842
in compensation of employees that have occurred during the month 1,843
preceding or the period since the period covered by the last
notification. At least once a year each employer shall submit to 1,844
the board a complete listing of all employees not contributing to 1,845
the school employees retirement system. EACH EMPLOYER SHALL KEEP 1,847
SUCH RECORDS AND SHALL FURNISH SUCH INFORMATION AND ASSISTANCE TO 1,848
THE SCHOOL EMPLOYEES RETIREMENT BOARD AS IT REQUIRES IN THE 1,849
DISCHARGE OF ITS DUTIES.
Sec. 3309.57. The treasurer of each employer on receipt 1,858
40
from the employer of the voucher for deductions from the 1,859
compensation of employees and for the contributions of the 1,860
employer shall transmit monthly or at such times as the school 1,861
employees retirement board designates the amounts specified in
such voucher to the secretary of the board. The secretary of the 1,862
board after making a record of all such receipts shall pay them 1,863
to the treasurer of state for use according to sections 3309.01 1,864
to 3309.68 of the Revised Code THIS CHAPTER. 1,865
Sec. 3309.59. Employers who obtain funds directly by 1,874
taxation shall levy annually such additional taxes as are 1,875
required to provide the additional funds necessary to meet the 1,876
financial requirements imposed upon them by sections 3309.01 to 1,877
3309.68, inclusive, of the Revised Code, THIS CHAPTER and said 1,878
tax shall be placed before and in preference to all other items 1,879
except for sinking fund or interest purposes. 1,880
Sec. 3309.60. The school employees retirement board shall 1,889
be the trustee of certain funds hereby created as follows: 1,890
(A) The "employees' savings fund" is the fund in which 1,892
shall be accumulated the contributions deducted from the 1,893
compensation of contributors as provided by section 3309.47 of 1,894
the Revised Code, together with the interest credited thereon. 1,895
Such accumulated contributions refunded upon withdrawal or 1,896
payable to a beneficiary as provided in this chapter, shall be 1,897
paid from this fund. Any accumulated contributions forfeited by 1,898
the failure of a contributor or a beneficiary to claim the same 1,899
shall be transferred from this fund to the guarantee fund. The 1,900
accumulated contributions of a contributor shall be transferred 1,901
at his retirement from the employee's savings fund to the annuity 1,902
and pension reserve fund. The accumulated contributions of a 1,903
member who dies prior to service retirement and which are 1,904
forfeited by the qualified beneficiary in exchange for monthly 1,905
survivor benefits, as provided by section 3309.45 of the Revised 1,906
Code, shall be transferred to the survivors' benefit fund. The 1,907
accumulated contributions of an SERS retirant or other system 1,908
41
retirant as defined in section 3309.341 of the Revised Code, who 1,909
dies prior to retirement, shall be transferred to the survivors' 1,910
benefit fund for payment of a lump sum benefit to a beneficiary 1,911
as provided in section 3309.341 of the Revised Code. 1,912
(B) The "employers' trust fund" is the fund to which the 1,914
employer contribution shall be credited and in which shall be 1,915
accumulated the reserves held in trust for the payment of all 1,916
pensions, disability benefits, or other benefits provided by this 1,917
chapter, to contributors retiring or receiving disability 1,918
benefits in the future or to their qualified beneficiaries, and 1,919
from which the reserves for such pensions, disability benefits, 1,920
and other benefits shall be transferred to the annuity and 1,921
pension reserve fund and to the survivors' benefit fund. The 1,922
balances in the employers' accumulation fund shall be transferred 1,923
to this fund. As of June 30, 1958, an additional amount shall be 1,924
transferred from the employers' trust fund to the annuity and 1,925
pension reserve fund in the amount required to complete the 1,926
funding of the prior service and military service pensions then 1,927
payable. 1,928
(C) The "annuity and pension reserve fund" is the fund 1,930
from which shall be paid all annuities, pensions, and disability 1,931
benefits for which reserves have been transferred from the 1,932
employees' savings fund and the employers' trust fund. 1,933
(D) The "survivors' benefit fund" is the fund from which 1,935
shall be paid the survivors' benefits provided by section 3309.45 1,936
of the Revised Code, and the lump sum payment to beneficiaries as 1,937
provided in section 3309.341 of the Revised Code and to which 1,938
shall be transferred from the employers' trust fund the amount 1,939
required to fund all liabilities as of the end of each year. 1,940
(E) The "guarantee fund" is the fund from which interest 1,942
is transferred and credited on the amounts in the funds described 1,943
in divisions (A), (B), (C), and (D) of this section, and is a 1,944
contingent fund from which the special requirements of said funds 1,945
may be paid by transfer from this fund. All income derived from 1,946
42
the investment of funds by the school employees retirement board 1,947
as trustees under section 3309.15 of the Revised Code, together 1,948
with all gifts and bequests, or the income therefrom, shall be 1,949
paid into this fund. 1,950
Any deficit occurring in any other fund that will not be 1,952
covered by payments to that fund, as otherwise provided in this 1,953
chapter, shall be paid by transfers of amounts from the guarantee 1,954
fund to such fund or funds. Should the amount in the guarantee 1,955
fund be insufficient at any time to meet the amounts payable 1,956
therefrom TO THE FUNDS DESCRIBED IN DIVISIONS (C) AND (D) OF THIS 1,958
SECTION, the amount of such deficiency, with regular interest, 1,959
shall be paid by an additional employer rate of contribution as 1,960
determined by the actuary, not to exceed fourteen per cent, and 1,961
shall be approved by the school employees retirement board, and 1,962
the amount of such additional employer contribution shall be 1,963
credited to the guarantee fund. 1,964
The school employees retirement board SYSTEM may accept 1,966
gifts and bequests. Any GIFTS, BEQUESTS, OR funds that may come 1,968
into possession of the school employees retirement board in this 1,970
manner or that may be transferred from the employees' savings 1,971
fund by reason of lack of a claimant, or any surplus in any fund 1,972
created by this section, or any other funds whose disposition is 1,973
not otherwise provided for, shall be credited to the guarantee 1,974
fund.
(F) The "expense fund" is the fund from which shall be 1,976
paid the expenses for the administration and management of the 1,977
school employees retirement system as provided by this chapter, 1,978
and to which shall be credited the fees paid by members as 1,979
provided by sections 3309.47 and 3309.62 of the Revised Code. 1,980
(G) THE DEFINED CONTRIBUTION FUND IS THE FUND IN WHICH 1,983
SHALL BE ACCUMULATED THE CONTRIBUTIONS DEDUCTED FROM THE 1,984
COMPENSATION OF MEMBERS PARTICIPATING IN A PLAN ESTABLISHED UNDER 1,985
SECTION 3309.81 OF THE REVISED CODE, AS PROVIDED IN SECTION 1,987
3309.85 OF THE REVISED CODE, TOGETHER WITH ANY EARNINGS AND 1,988
43
EMPLOYER CONTRIBUTIONS, AS PROVIDED IN SECTION 3309.86 OF THE 1,990
REVISED CODE, CREDITED THEREON. THE DEFINED CONTRIBUTION FUND IS 1,991
THE FUND FROM WHICH SHALL BE PAID ALL BENEFITS PROVIDED UNDER A
PLAN ESTABLISHED UNDER SECTION 3309.81 OF THE REVISED CODE. 1,992
Sec. 3309.61. Wherever in sections 3309.01 to 3309.68, 2,001
inclusive, of the Revised Code THIS CHAPTER, reference is made to 2,002
the employees' savings fund, the employers' trust fund, the 2,005
annuity and pension reserve fund, the guarantee fund, the
survivors' benefit fund, THE DEFINED CONTRIBUTION FUND, or the 2,006
expense fund, such reference shall be construed to have been made 2,008
to each as a separate legal entity. This section does not 2,009
prevent the deposit or investment of all such moneys intermingled
for such purpose but such funds shall be separate and distinct 2,010
legal entities for all other purposes. 2,011
Sec. 3309.66. The right of a person to a pension, an 2,020
annuity, or a retirement allowance itself, any optional benefit, 2,021
any other right accrued or accruing to any persons, under 2,022
sections 3309.01 to 3309.68 of the Revised Code THIS CHAPTER, or 2,023
the various funds created by section 3309.60 of the Revised Code 2,024
and all moneys and investments and income thereof, are exempt 2,026
from any state tax, except the tax imposed by section 5747.02 of 2,027
the Revised Code, and are exempt from any county, municipal, or 2,028
other local tax, except taxes imposed pursuant to section 5748.02 2,029
or 5748.08 of the Revised Code and, except as provided in 2,030
sections 3111.23, 3113.21, and 3309.67 of the Revised Code, shall 2,031
not be subject to execution, garnishment, attachment, the 2,032
operation of bankruptcy or insolvency laws, or any other process 2,033
of law whatsoever, and shall be unassignable except as 2,034
specifically provided in sections 3111.23, 3113.21, and 3309.01
to 3309.68 of the Revised Code. 2,035
Sec. 3309.69. (A) As used in this section, "ineligible 2,044
individual" means all of the following: 2,045
(1) A former member receiving benefits pursuant to section 2,047
3309.34, 3309.35, 3309.36, 3309.38, or 3309.381 of the Revised 2,048
44
Code for whom eligibility is established more than five years 2,049
after June 13, 1981, and who, at the time of establishing 2,050
eligibility, has accrued less than ten years of service credit, 2,051
exclusive of credit obtained after January 29, 1981, pursuant to 2,052
sections 3309.021, 3309.301, 3309.31, and 3309.33 of the Revised 2,053
Code; 2,054
(2) The spouse of the former member; 2,056
(3) The beneficiary of the former member receiving 2,058
benefits pursuant to section 3309.46 of the Revised Code. 2,059
(B) The school employees retirement board may enter into 2,061
an agreement with insurance companies, health insuring 2,063
corporations, or government agencies authorized to do business in 2,065
the state for issuance of a policy or contract of health, 2,066
medical, hospital, or surgical benefits, or any combination 2,067
thereof, for those individuals receiving service retirement or a 2,068
disability or survivor benefit subscribing to the plan and their 2,070
eligible dependents.
If all or any portion of the policy or contract premium is 2,072
to be paid by any individual receiving service retirement or a 2,074
disability or survivor benefit, the person shall, by written 2,075
authorization, instruct the board to deduct the premiums agreed 2,076
to be paid by the individual to the companies, corporations, or 2,078
agencies.
The board may contract for coverage on the basis of part or 2,081
all of the cost of the coverage to be paid from appropriate funds 2,082
of the school employees retirement system. The cost paid from 2,083
the funds of the system shall be included in the employer's 2,085
contribution rate provided by sections 3309.49 and 3309.491 of 2,086
the Revised Code. The board shall not pay or reimburse the cost 2,087
for health care under this section or section 3309.375 of the 2,088
Revised Code for any ineligible individual. 2,089
The board may provide for self-insurance of risk or level 2,091
of risk as set forth in the contract with the companies, 2,092
corporations, or agencies, and may provide through the 2,093
45
self-insurance method specific benefits as authorized by the 2,094
rules of the board. 2,095
(C) If the board provides health, medical, hospital, or 2,097
surgical benefits through any means other than a health insuring 2,099
corporation, it shall offer to each individual eligible for the 2,102
benefits the alternative of receiving benefits through enrollment 2,104
in a health insuring corporation, if all of the following apply: 2,106
(1) The health insuring corporation provides health care 2,109
services in the geographical area in which the individual lives; 2,111
(2) The eligible individual was receiving health care 2,113
benefits through a health maintenance organization or a health 2,114
insuring corporation before retirement; 2,116
(3) The rate and coverage provided by the health insuring 2,119
corporation to eligible individuals is comparable to that 2,121
currently provided by the board under division (B) of this 2,122
section. If the rate or coverage provided by the health insuring 2,123
corporation is not comparable to that currently provided by the 2,125
board under division (B) of this section, the board may deduct 2,126
the additional cost from the eligible individual's monthly 2,127
benefit.
The health insuring corporation shall accept as an enrollee 2,131
any eligible individual who requests enrollment.
The board shall permit each eligible individual to change 2,133
from one plan to another at least once a year at a time 2,134
determined by the board. 2,135
(D) The board shall, beginning the month following receipt 2,137
of satisfactory evidence of the payment for coverage, make a 2,138
monthly payment to each recipient of service retirement, or a 2,139
disability or survivor benefit under the school employees 2,140
retirement system who is eligible for insurance coverage under 2,141
part B of "The Social Security Amendments of 1965," 79 Stat. 301, 2,142
42 U.S.C.A. 1395j, as amended, except that the board shall make 2,143
no such payment to any ineligible individual. Effective on the 2,144
first day of the month after December 8, 1998 THE EFFECTIVE DATE 2,146
46
OF THIS AMENDMENT, the amount of the payment shall be the lesser 2,148
of an amount equal to the basic premium for such coverage, or an 2,149
amount equal to the basic premium in effect on January 1, 1992 2,150
1999.
(E) The board shall establish by rule requirements for the 2,152
coordination of any coverage, payment, or benefit provided under 2,154
this section or section 3309.375 of the Revised Code with any 2,156
similar coverage, payment, or benefit made available to the same 2,157
individual by the public employees retirement system, Ohio police 2,158
and fire pension fund, state teachers retirement system, or state 2,160
highway patrol retirement system. 2,161
(F) The board shall make all other necessary rules 2,163
pursuant to the purpose and intent of this section. 2,164
Sec. 3309.80. THE SCHOOL EMPLOYEES RETIREMENT BOARD SHALL 2,166
ADOPT RULES TO IMPLEMENT EACH PLAN ESTABLISHED UNDER SECTION 2,167
3309.81 OF THE REVISED CODE. 2,168
Sec. 3309.81. THE SCHOOL EMPLOYEES RETIREMENT BOARD SHALL 2,170
ESTABLISH ONE OR MORE PLANS CONSISTING OF BENEFIT OPTIONS THAT 2,171
PROVIDE FOR AN INDIVIDUAL ACCOUNT FOR EACH PARTICIPATING MEMBER 2,172
AND UNDER WHICH BENEFITS ARE BASED SOLELY ON THE AMOUNTS THAT 2,173
HAVE ACCUMULATED IN THE ACCOUNT. THE PLANS MAY INCLUDE OPTIONS 2,174
UNDER WHICH A MEMBER PARTICIPATING IN A PLAN MAY RECEIVE 2,175
DEFINITELY DETERMINABLE BENEFITS. 2,176
EACH PLAN ESTABLISHED UNDER THIS SECTION SHALL MEET THE 2,178
REQUIREMENTS OF SECTIONS 3309.81 TO 3309.98 OF THE REVISED CODE 2,180
AND ANY RULES ADOPTED IN ACCORDANCE WITH SECTION 3309.80 OF THE 2,181
REVISED CODE. IT MAY INCLUDE LIFE INSURANCE, ANNUITIES, VARIABLE 2,182
ANNUITIES, REGULATED INVESTMENT TRUSTS, POOLED INVESTMENT FUNDS, 2,183
OR OTHER FORMS OF INVESTMENT. 2,184
THE BOARD MAY ADMINISTER THE PLANS, ENTER INTO CONTRACTS 2,186
WITH OTHER ENTITIES TO ADMINISTER THE PLANS, OR BOTH. 2,187
Sec. 3309.811. EACH PLAN ESTABLISHED UNDER SECTION 3309.81 2,189
OF THE REVISED CODE SHALL QUALIFY AS A GOVERNMENTAL PLAN UNDER 2,190
SECTION 414(d) OF THE "INTERNAL REVENUE CODE OF 1986," 100 STAT. 2,193
47
2085, 26 U.S.C.A. 414(d), AS AMENDED, AND MEET THE REQUIREMENTS 2,194
OF SECTION 401(a) OF THE "INTERNAL REVENUE CODE OF 1986," 26 2,199
U.S.C.A. 401(a), AS AMENDED, APPLICABLE TO GOVERNMENTAL PLANS. 2,200
Sec. 3309.812. EACH PLAN ESTABLISHED UNDER SECTION 3309.81 2,202
OF THE REVISED CODE SHALL MEET THE REQUIREMENTS NECESSARY TO 2,204
QUALIFY AS A RETIREMENT SYSTEM MAINTAINED BY A STATE OR LOCAL 2,205
GOVERNMENT ENTITY UNDER SECTION 3121(b)(7)(F) OF THE "INTERNAL 2,207
REVENUE CODE OF 1986," 100 STAT. 2085, 26 U.S.C.A. 3121(b)(7)(F), 2,211
AS AMENDED. EACH PARTICIPANT IN A PLAN SHALL QUALIFY AS A MEMBER 2,213
OF THAT SYSTEM.
Sec. 3309.813. EACH PLAN ESTABLISHED UNDER SECTION 3309.81 2,215
OF THE REVISED CODE SHALL REQUIRE THE SCHOOL EMPLOYEES RETIREMENT 2,217
BOARD, OR THE ENTITY ADMINISTERING THE PLAN PURSUANT TO A 2,218
CONTRACT WITH THE BOARD, TO CAUSE AN INDIVIDUAL ACCOUNT TO BE 2,219
MAINTAINED FOR EACH MEMBER PARTICIPATING IN THE PLAN. A PLAN MAY 2,221
INCLUDE DEPOSITS TO THE DEFINED CONTRIBUTION FUND CREATED UNDER 2,222
SECTION 3309.60 OF THE REVISED CODE OR ADDITIONAL DEPOSITS MADE 2,224
UNDER SECTION 3309.47 OF THE REVISED CODE TO THE EMPLOYEES' 2,226
SAVINGS FUND. 2,227
Sec. 3309.82. (A) EXCEPT AS PROVIDED IN DIVISION (B) OF 2,229
THIS SECTION, SECTIONS 3309.02, 3309.021, AND 3309.022 AND 2,231
SECTIONS 3309.18 TO 3309.70 OF THE REVISED CODE DO NOT APPLY TO A 2,234
PLAN ESTABLISHED UNDER SECTION 3309.81 OF THE REVISED CODE, 2,235
EXCEPT THAT A PLAN MAY INCORPORATE PROVISIONS OF THOSE SECTIONS 2,236
AS SPECIFIED IN THE PLAN DOCUMENT. 2,237
(B) THE FOLLOWING SECTIONS OF CHAPTER 3309. OF THE REVISED 2,240
CODE APPLY TO A PLAN ESTABLISHED UNDER SECTION 3309.81 OF THE 2,241
REVISED CODE: SECTIONS 3309.19, 3309.21, 3309.22, 3309.23, 2,243
3309.24, 3309.28, 3309.29, 3309.341, 3309.3712, 3309.47, 2,244
3309.471, 3309.49, 3309.51, 3309.53, 3309.54, 3309.55, 3309.56, 2,245
3309.57, 3309.571, 3309.58, 3309.59, 3309.60, 3309.61, 3309.62, 2,246
3309.66, 3309.661, 3309.67, 3309.68, AND 3309.70 OF THE REVISED 2,248
CODE.
Sec. 3309.85. EACH MEMBER PARTICIPATING IN A PLAN 2,250
48
ESTABLISHED UNDER SECTION 3309.81 OF THE REVISED CODE SHALL 2,251
CONTRIBUTE A PER CENT OF THE MEMBER'S COMPENSATION TO THE SCHOOL 2,253
EMPLOYEES RETIREMENT SYSTEM AS REQUIRED IN SECTION 3309.47 OF THE 2,254
REVISED CODE. CONTRIBUTIONS MADE UNDER THIS SECTION SHALL NOT 2,255
EXCEED THE LIMITS ESTABLISHED BY SECTION 415 OF THE "INTERNAL 2,256
REVENUE CODE OF 1986," 100 STAT. 2085, 26 U.S.C.A. 415, AS 2,260
AMENDED.
Sec. 3309.86. FOR EACH MEMBER PARTICIPATING IN A PLAN 2,262
ESTABLISHED UNDER SECTION 3309.81 OF THE REVISED CODE, THE 2,263
EMPLOYER SHALL CONTRIBUTE A PER CENT OF THE MEMBER'S COMPENSATION 2,265
TO THE SCHOOL EMPLOYEES RETIREMENT SYSTEM AS REQUIRED IN SECTION 2,266
3309.49 OF THE REVISED CODE. 2,267
Sec. 3309.87. EXCEPT AS PROVIDED IN SECTION 3309.88 OF THE 2,269
REVISED CODE, AMOUNTS CONTRIBUTED UNDER SECTIONS 3309.85 AND 2,270
3309.86 OF THE REVISED CODE, AND ANY EARNINGS ON THOSE AMOUNTS, 2,271
SHALL BE DEPOSITED AND CREDITED IN ACCORDANCE WITH THE PLAN 2,273
ESTABLISHED UNDER SECTION 3309.81 OF THE REVISED CODE THAT IS 2,274
SELECTED BY THE MEMBER. 2,275
Sec. 3309.88. FOR EACH MEMBER PARTICIPATING IN A PLAN 2,277
ESTABLISHED UNDER SECTION 3309.81 OF THE REVISED CODE, THE SCHOOL 2,278
EMPLOYEES RETIREMENT SYSTEM SHALL TRANSFER TO THE EMPLOYERS' 2,280
TRUST FUND A PORTION OF THE EMPLOYER CONTRIBUTION REQUIRED UNDER 2,281
SECTION 3309.49 OF THE REVISED CODE. THE PORTION SHALL EQUAL THE 2,282
PERCENTAGE OF COMPENSATION OF MEMBERS FOR WHOM THE CONTRIBUTIONS 2,284
ARE BEING MADE THAT IS DETERMINED BY AN ACTUARY APPOINTED BY THE 2,285
SCHOOL EMPLOYEES RETIREMENT BOARD TO BE NECESSARY TO MITIGATE ANY 2,286
NEGATIVE FINANCIAL IMPACT ON THE SYSTEM OF MEMBERS' PARTICIPATION 2,287
IN A PLAN.
THE BOARD SHALL HAVE PREPARED ANNUALLY AN ACTUARIAL STUDY 2,289
TO DETERMINE WHETHER THE PERCENTAGE TRANSFERRED UNDER THIS 2,290
SECTION SHOULD BE CHANGED TO REFLECT A CHANGE IN THE LEVEL OF 2,291
NEGATIVE FINANCIAL IMPACT RESULTING FROM MEMBERS' PARTICIPATION 2,292
IN A PLAN. THE PERCENTAGE TRANSFERRED SHALL BE INCREASED OR 2,293
DECREASED TO REFLECT THE AMOUNT NEEDED TO MITIGATE THE NEGATIVE 2,294
49
FINANCIAL IMPACT, IF ANY, ON THE SYSTEM, AS DETERMINED BY THE 2,295
STUDY. A CHANGE SHALL TAKE EFFECT ON THE FIRST DAY OF THE YEAR 2,296
FOLLOWING THE DATE THE CONCLUSIONS OF THE STUDY ARE REPORTED TO 2,297
THE BOARD. 2,298
THE SYSTEM SHALL MAKE THE TRANSFER REQUIRED UNDER THIS 2,300
SECTION UNTIL THE UNFUNDED ACTUARIAL ACCRUED LIABILITY FOR ALL 2,301
BENEFITS, EXCEPT HEALTH CARE BENEFITS PROVIDED UNDER SECTION 2,302
3309.375 OR 3309.69 OF THE REVISED CODE AND BENEFIT INCREASES TO 2,303
MEMBERS AND FORMER MEMBERS PARTICIPATING IN THE PLAN DESCRIBED IN 2,304
SECTIONS 3309.18 TO 3309.70 OF THE REVISED CODE GRANTED AFTER THE 2,305
EFFECTIVE DATE OF THIS SECTION, IS FULLY AMORTIZED, AS DETERMINED 2,306
BY THE ANNUAL ACTUARIAL VALUATION PREPARED UNDER SECTION 3309.21 2,307
OF THE REVISED CODE. 2,308
Sec. 3309.91. THE RIGHT OF EACH MEMBER PARTICIPATING IN A 2,310
PLAN ESTABLISHED UNDER SECTION 3309.81 OF THE REVISED CODE TO A 2,311
RETIREMENT, DISABILITY, SURVIVOR, OR DEATH BENEFIT, TO HEALTH OR 2,312
LONG-TERM CARE INSURANCE, OR TO A WITHDRAWAL OF ANY AMOUNTS THAT 2,313
HAVE ACCUMULATED ON THE MEMBER'S BEHALF SHALL BE GOVERNED 2,314
EXCLUSIVELY BY THE PLAN SELECTED BY THE MEMBER. 2,315
Sec. 3309.92. IF A MEMBER PARTICIPATING IN A PLAN 2,317
ESTABLISHED UNDER SECTION 3309.81 OF THE REVISED CODE IS MARRIED 2,318
AT THE TIME BENEFITS UNDER THE PLAN ARE TO COMMENCE, BEFORE 2,320
MAKING ANY PAYMENT THE SCHOOL EMPLOYEES RETIREMENT SYSTEM, OR THE 2,321
ENTITY ADMINISTERING THE PLAN PURSUANT TO A CONTRACT WITH THE 2,323
SCHOOL EMPLOYEES RETIREMENT BOARD, SHALL OBTAIN THE CONSENT OF 2,324
THE MEMBER'S SPOUSE TO THE FORM OF PAYMENT SELECTED BY THE 2,325
MEMBER.
A PLAN ESTABLISHED UNDER SECTION 3309.81 OF THE REVISED 2,328
CODE SHALL INCLUDE REQUIREMENTS FOR CONSENT UNDER THIS SECTION 2,329
THAT ARE THE SAME AS THE REQUIREMENTS SPECIFIED IN SECTION 2,331
417(a)(2) OF THE "INTERNAL REVENUE CODE OF 1986," 100 STAT. 2085, 2,334
26 U.S.C.A. 417(a)(2), AS AMENDED. A PLAN MAY WAIVE CONSENT IF 2,336
THE SPOUSE CANNOT BE LOCATED OR FOR ANY OTHER REASON SPECIFIED IN 2,337
THE REGULATIONS ADOPTED UNDER THAT SECTION. 2,338
50
CONSENT OR WAIVER IS EFFECTIVE ONLY WITH REGARD TO THE 2,340
SPOUSE WHO IS THE SUBJECT OF THE CONSENT OR WAIVER. 2,341
Sec. 3309.95. SUBJECT TO SECTIONS 3309.341, 3309.66, AND 2,343
3309.67 OF THE REVISED CODE, THE RIGHT OF A MEMBER PARTICIPATING 2,345
IN A PLAN ESTABLISHED UNDER SECTION 3309.81 OF THE REVISED CODE 2,346
TO ANY PAYMENT OR BENEFIT ACCRUING FROM CONTRIBUTIONS MADE BY OR 2,348
ON BEHALF OF THE MEMBER UNDER SECTIONS 3309.85 AND 3309.86 OF THE 2,349
REVISED CODE SHALL VEST IN ACCORDANCE WITH THIS SECTION. 2,351
A MEMBER'S RIGHT TO ANY PAYMENT OR BENEFIT THAT IS BASED ON 2,353
THE MEMBER'S CONTRIBUTIONS IS NONFORFEITABLE. 2,354
A MEMBER'S RIGHT TO ANY PAYMENT OR BENEFIT THAT IS BASED ON 2,356
CONTRIBUTIONS BY THE MEMBER'S EMPLOYER IS NONFORFEITABLE AS 2,357
SPECIFIED BY THE PLAN SELECTED BY THE MEMBER. 2,358
Sec. 3309.97. EACH PLAN ESTABLISHED UNDER SECTION 3309.81 2,360
OF THE REVISED CODE SHALL PERMIT A MEMBER PARTICIPATING IN THE 2,362
PLAN TO DO ALL OF THE FOLLOWING: 2,363
(A) MAINTAIN ON DEPOSIT WITH THE SCHOOL EMPLOYEES 2,365
RETIREMENT SYSTEM, OR THE ENTITY ADMINISTERING THE PLAN PURSUANT 2,366
TO A CONTRACT WITH THE SCHOOL EMPLOYEES RETIREMENT BOARD, ANY 2,367
AMOUNTS THAT HAVE ACCUMULATED ON BEHALF OF THE MEMBER; 2,368
(B) IF THE MEMBER HAS WITHDRAWN THE AMOUNTS DESCRIBED IN 2,370
DIVISION (A) OF THIS SECTION, REDEPOSIT WITH THE SYSTEM OR THE 2,371
ENTITY ADMINISTERING THE PLAN THE AMOUNTS WITHDRAWN; 2,372
(C) MAKE ADDITIONAL DEPOSITS AS PERMITTED BY THE "INTERNAL 2,375
REVENUE CODE OF 1986," 100 STAT. 2085, 26 U.S.C.A. 1, AS AMENDED. 2,377
Sec. 3309.98. CONTRIBUTIONS UNDER SECTIONS 3309.85 AND 2,380
3309.86 OF THE REVISED CODE SHALL CEASE ON THE MEMBER'S DEATH OR 2,381
TERMINATION OF EMPLOYMENT OR FOR ANY OTHER REASON SPECIFIED BY 2,382
THE PLAN SELECTED BY THE MEMBER. 2,383
Section 2. That existing sections 3309.01, 3309.03, 2,386
3309.04, 3309.05, 3309.07, 3309.12, 3309.15, 3309.17, 3309.22, 2,387
3309.341, 3309.36, 3309.374, 3309.381, 3309.40, 3309.401, 2,388
3309.45, 3309.47, 3309.49, 3309.53, 3309.54, 3309.55, 3309.57, 2,389
3309.59, 3309.60, 3309.61, 3309.66, and 3309.69 and section 2,390
51
3309.58 of the Revised Code are hereby repealed. 2,391
Section 3. The School Employees Retirement System shall 2,393
recalculate under section 3309.36, 3309.381, 3309.40, 3309.401, 2,394
or 3309.45 of the Revised Code, as amended by this act, or 2,395
3309.38 of the Revised Code, each benefit that is payable under 2,396
those sections or section 3309.46 of the Revised Code and became 2,397
effective on or after January 1, 2000, but before the effective 2,398
date of this act. If the recalculated benefit is greater than 2,399
the recipient's benefit prior to the recalculation, the system 2,400
shall do both of the following: 2,401
(A) Pay the recalculated benefit beginning on the first 2,403
day of the month immediately following the date the board 2,404
recalculates the benefit; 2,405
(B) Make a one-time payment to each recipient receiving a 2,407
benefit on the effective date of this act. 2,408
The payment shall be an amount equal to the difference 2,411
between the benefits paid to the recipient between January 1, 2,412
2000, and the date of the payment and the increased benefits that 2,413
would have been paid to the recipient had the amendments to 2,414
sections 3309.36, 3309.381, 3309.40, 3309.401, and 3309.45 of the 2,415
Revised Code gone into effect on January 1, 2000.
Section 4. (A) The School Employees Retirement System 2,417
shall make a one-time payment to each person receiving a monthly 2,418
payment under section 3309.69 of the Revised Code as of the 2,419
effective date of this act who was eligible to receive a monthly 2,421
payment during the period commencing January 1, 1993, and ending 2,422
on the last day of the month in which this act takes effect
pursuant to division (D) of section 3309.69 of the Revised Code 2,423
for insurance coverage under Part B of the "Social Security 2,424
Amendments of 1965," 79 Stat. 301, 42 U.S.C.A. 1935j, as amended. 2,425
Except as provided in division (B) of this section, the payment 2,426
shall be equal to the difference between: 2,427
(1) The amount the recipient was eligible to receive under 2,429
division (D) of section 3309.69 of the Revised Code during the 2,430
52
period commencing January 1, 1993, and ending on the last day of 2,431
the month in which this act takes effect; 2,432
(2) The amount the recipient would have received under 2,434
division (D) of section 3309.69 of the Revised Code during the 2,435
same period had the amendments to that division made by this act 2,436
taken effect January 1, 1993. 2,437
(B) The School Employees Retirement System shall subtract 2,439
from any amount payable under this section any amount the 2,440
recipient was eligible to receive pursuant to Section 3 of Am. 2,441
Sub. H.B. 673 of the 122nd General Assembly. 2,442
Section 5. If the surviving spouse of a member who died on 2,444
or after January 1, 2000, but before the effective date of this 2,445
act would be eligible for a benefit under division (B)(3)(a) of 2,446
section 3309.45 of the Revised Code as amended by this act and 2,447
the surviving spouse has not taken the payment of the member's 2,448
accumulated account, the system shall calculate the benefit 2,449
payable to the surviving spouse under section 3309.45 of the 2,450
Revised Code as of the effective date of this act and do both of 2,451
the following: 2,452
(A) Begin payment to the surviving spouse on the first day 2,454
of the month immediately following the date the calculation is 2,455
made;
(B) Make a one-time payment to each surviving spouse 2,457
eligible to receive payment under division (A) of this section. 2,458
The payment under this division shall be an amount equal to 2,460
the sum of the monthly benefits that would have been paid to the 2,461
surviving spouse had the amendments to section 3309.45 of the 2,462
Revised Code gone into effect on January 1, 2000. 2,463
Section 6. The amendments made by this act to section 2,465
3309.05 and 3309.07 of the Revised Code do not affect the term of 2,466
the retirant member holding office on the effective date of this 2,467
act.