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           

                                                          3      


                                                                 
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          

                                                          4      


                                                                 
      (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          

                                                          5      


                                                                 
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          

                                                          6      


                                                                 
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          

                                                          8      


                                                                 
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          

                                                          9      


                                                                 
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          

                                                          12     


                                                                 
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          

                                                          13     


                                                                 
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          

                                                          14     


                                                                 
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          

                                                          15     


                                                                 
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                       

                                                          16     


                                                                 
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.