As Passed by the Senate 1
123rd General Assembly 4
Regular Session Am. Sub. S. B. No. 270 5
1999-2000 6
SENATORS DRAKE-BLESSING-HERINGTON-DiDONATO-McLIN-SPADA- 8
PRENTISS-BRADY-MUMPER-CARNES 9
_________________________________________________________________ 11
A B I L L
To amend sections 3309.01, 3309.03, 3309.04, 13
3309.05, 3309.07, 3309.12, 3309.15, 3309.17, 14
3309.22, 3309.341, 3309.36, 3309.374, 3309.381,
3309.40, 3309.401, 3309.45, 3309.47, 3309.49, 15
3309.53, 3309.54, 3309.55, 3309.57, 3309.59, 16
3309.60, 3309.61, 3309.66, and 3309.69; to enact 17
sections 3309.031, 3309.25, 3309.251, 3309.252,
3309.253, 3309.80, 3309.81, 3309.811, 3309.812, 18
3309.813, 3309.82, 3309.85, 3309.86, 3309.87,
3309.88, 3309.91, 3309.92, 3309.95, 3309.97, and 19
3309.98; and to repeal section 3309.58 of the 21
Revised Code to increase certain benefits paid by
the School Employees Retirement System (SERS), to 22
increase the SERS reimbursement for insurance 23
coverage under Medicare Part B, to require SERS 24
to establish a defined contribution retirement
plan, and to make other changes to the law 26
governing SERS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 28
Section 1. That sections 3309.01, 3309.03, 3309.04, 30
3309.05, 3309.07, 3309.12, 3309.15, 3309.17, 3309.22, 3309.341, 32
3309.36, 3309.374, 3309.381, 3309.40, 3309.401, 3309.45, 3309.47, 33
3309.49, 3309.53, 3309.54, 3309.55, 3309.57, 3309.59, 3309.60, 34
3309.61, 3309.66, and 3309.69 be amended and sections 3309.031, 35
3309.25, 3309.251, 3309.252, 3309.253, 3309.80, 3309.81, 36
2
3309.811, 3309.812, 3309.813, 3309.82, 3309.85, 3309.86, 3309.87,
3309.88, 3309.91, 3309.92, 3309.95, 3309.97, and 3309.98 of the 38
Revised Code be enacted to read as follows: 39
Sec. 3309.01. As used in this chapter: 48
(A) "Employer" or "public employer" means boards of 50
education, school districts, joint vocational districts, 51
governing authorities of community schools established under 52
Chapter 3314. of the Revised Code, educational institutions, 53
technical colleges, state, municipal, and community colleges, 55
community college branches, universities, university branches, 56
other educational institutions, or other agencies within the 57
state by which an employee is employed and paid, including any 58
organization using federal funds, provided the federal funds are 59
disbursed by an employer as determined by the above. In all 61
cases of doubt, the school employees retirement board shall 62
determine whether any employer is an employer as defined in this 63
chapter, and its decision shall be final. 64
(B) "Employee" means all of the following: 66
(1) Any person employed by a public employer in a position 68
for which the person is not required to have a certificate or 69
license issued pursuant to sections 3319.22 to 3319.31 of the 71
Revised Code;
(2) Any person who performs a service common to the normal 73
daily operation of an educational unit even though the person is 75
employed and paid by one who has contracted with an employer to 76
perform the service, and the contracting board or educational 78
unit shall be the employer for the purposes of administering the 79
provisions of this chapter; 80
(3) Any person, not a faculty member, employed in any 82
school or college or other institution wholly controlled and 83
managed, and wholly or partly supported by the state or any 84
political subdivision thereof, the board of trustees, or other 85
managing body of which shall accept the requirements and 86
obligations of this chapter. 87
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In all cases of doubt, the school employees retirement 89
board shall determine whether any person is an employee, as 90
defined in this division, and its decision is final. 91
(C) "Prior service" means all service rendered prior to 93
September 1, 1937: 94
(1) As an employee as defined in division (B) of this 96
section; 97
(2) As an employee in a capacity covered by the public 99
employees retirement system or the state teachers retirement 100
system; 101
(3) As an employee of an institution in another state, 103
service credit for which was procured by a member under the 104
provisions of section 3309.31 of the Revised Code. 105
Prior service, for service as an employee in a capacity 107
covered by the public employees retirement system or the state 108
teachers retirement system, shall be granted a member under 109
qualifications identical to the laws and rules applicable to 110
service credit in those systems. 111
Prior service shall not be granted any member for service 114
rendered in a capacity covered by the public employees retirement 115
system, the state teachers retirement system, and this system in 116
the event the service credit has, in the respective systems, been 118
received, waived by exemption, or forfeited by withdrawal of 119
contributions, except as provided in this chapter.
If a member who has been granted prior service should, 121
subsequent to September 16, 1957, and before retirement, 122
establish three years of contributing service in the public 123
employees retirement system, or one year in the state teachers 124
retirement system, then the prior service granted shall become, 126
at retirement, the liability of the other system, if the prior 128
service or employment was in a capacity that is covered by that 129
system. 130
The provisions of this division shall not cancel any prior 132
service granted a member by the school employees retirement board 133
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prior to August 1, 1959. 134
(D) "Total service," "total service credit," or "Ohio 136
service credit" means all contributing service of a member of the 137
school employees retirement system, and all prior service, 139
computed as provided in this chapter, and all service established 140
pursuant to sections 3309.31, 3309.311, and 3309.33 of the
Revised Code. In addition, "total service" includes any period, 141
not in excess of three years, during which a member was out of 142
service and receiving benefits from the state insurance fund, 143
provided the injury or incapacitation was the direct result of 144
school employment. 145
(E) "Member" means any employee, except an SERS retirant 147
or other system retirant as defined in section 3309.341 of the 148
Revised Code, who has established membership in the school 149
employees retirement system. "Member" includes a disability 150
benefit recipient. 151
(F) "Contributor" means any person who has an account in 153
the employees' savings fund. WHEN USED IN THE SECTIONS LISTED IN 155
DIVISION (B) OF SECTION 3309.82 OF THE REVISED CODE, 156
"CONTRIBUTOR" INCLUDES ANY PERSON PARTICIPATING IN A PLAN 158
ESTABLISHED UNDER SECTION 3309.81 OF THE REVISED CODE. 159
(G) "Retirant" means any former member who retired and is 161
receiving a service retirement allowance or commuted service 162
retirement allowance as provided in this chapter. 163
(H) "Beneficiary" or "beneficiaries" means the estate or a 165
person or persons who, as the result of the death of a 166
contributor or retirant, qualifies for or is receiving some right 167
or benefit under this chapter. 168
(I) "Interest," as specified in division (E) of section 170
3309.60 of the Revised Code, means interest at the rates for the 172
respective funds and accounts as the school employees retirement 173
board may determine from time to time, except as follows: 174
(1) The rate of interest credited on employee 176
contributions at retirement shall be four per cent per annum, 177
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compounded annually, to and including June 30, 1955; three per 178
cent per annum, compounded annually, from July 1, 1955, to and 179
including June 30, 1963; three and one-quarter per cent per 180
annum, compounded annually, from July 1, 1963, through June 30, 182
1966; and thereafter, four per cent per annum compounded annually 183
until a change in the amount is recommended by the system's 184
actuary and approved by the retirement board. Subsequent to June 186
30, 1959, the retirement board shall discontinue the annual 187
crediting of current interest on a contributor's accumulated 188
contributions. Noncrediting of current interest shall not affect 190
the rate of interest at retirement guaranteed under this 191
division.
(2) In determining the reserve value for purposes of 193
computing the amount of the contributor's annuity, the rate of 194
interest used in the annuity values shall be four per cent per 195
annum through September 30, 1956; three per cent per annum 196
compounded annually from October 1, 1956, through June 30, 1963; 197
three and one-quarter per cent per annum compounded annually from 199
July 1, 1963, through June 30, 1966; and, thereafter, four per
cent per annum compounded annually until a change in the amount 201
is recommended by the system's actuary and approved by the 203
retirement board. In the purchase of out-of-state service credit 204
as provided in section 3309.31 of the Revised Code, and in the 205
purchase of an additional annuity, as provided in section 3309.47 206
of the Revised Code, interest shall be computed and credited to 207
reserves therefor at the rate the school employees retirement 209
board shall fix as regular interest thereon.
(J) "Accumulated contributions" means the sum of all 211
amounts credited to a contributor's account in the employees' 212
savings fund together with any regular interest credited thereon 213
at the rates approved by the retirement board prior to 214
retirement. 215
(K) "Final average salary" means the sum of the annual 217
compensation for the three highest years of compensation for 218
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which contributions were made by the member, divided by three. If 220
the member has a partial year of contributing service in the year 221
in which the member terminates employment and the partial year is 223
at a rate of compensation that is higher than the rate of
compensation for any one of the highest three years of annual 224
earnings, the board shall substitute the compensation earned for 225
the partial year for the compensation earned for a similar 226
fractional portion in the lowest of the three high years of 227
annual compensation before dividing by three. If a member has 228
less than three years of contributing membership, the final 229
average salary shall be the total compensation divided by the 230
total number of years, including any fraction of a year, of 231
contributing service. 232
(L) "Annuity" means payments for life derived from 234
contributions made by a contributor and paid from the annuity and 235
pension reserve fund as provided in this chapter. All annuities 236
shall be paid in twelve equal monthly installments. 237
(M)(1) "Pension" means annual payments for life derived 239
from appropriations made by an employer and paid from the 240
employers' trust fund or the annuity and pension reserve fund. 241
All pensions shall be paid in twelve equal monthly installments. 242
(2) "Disability retirement" means retirement as provided 244
in section 3309.40 of the Revised Code. 245
(N) "Retirement allowance" means the pension plus the 247
annuity. 248
(O)(1) "Benefit" means a payment, other than a retirement 250
allowance or the annuity paid under section 3309.341 of the 251
Revised Code, payable from the accumulated contributions of the 252
member or the employer, or both, under this chapter and includes 253
a disability allowance or disability benefit. 254
(2) "Disability allowance" means an allowance paid on 256
account of disability under section 3309.401 of the Revised Code. 257
(3) "Disability benefit" means a benefit paid as 259
disability retirement under section 3309.40 of the Revised Code, 260
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as a disability allowance under section 3309.401 of the Revised 261
Code, or as a disability benefit under section 3309.35 of the 262
Revised Code. 263
(P) "Annuity reserve" means the present value, computed 265
upon the basis of mortality tables adopted by the school 267
employees retirement board, of all payments to be made on account 268
of any annuity, or benefit in lieu of any annuity, granted to a 269
retirant.
(Q) "Pension reserve" means the present value, computed 271
upon the basis of mortality tables adopted by the school 273
employees retirement board, of all payments to be made on account 274
of any pension, or benefit in lieu of any pension, granted to a 275
retirant or a beneficiary.
(R) "Year" means the year beginning the first day of July 277
and ending with the thirtieth day of June next following. 278
(S) "Local district pension system" means any school 280
employees' pension fund created in any school district of the 281
state prior to September 1, 1937. 282
(T) "Employer contribution" means the amount paid by an 284
employer as determined by the employer rate, contributions, and 285
funds as provided in this chapter, and shall be credited to the 286
employers' trust fund UNDER SECTION 3309.49 OF THE REVISED CODE. 287
(U) "Fiduciary" means a person who does any of the 289
following: 290
(1) Exercises any discretionary authority or control with 292
respect to the management of the system, or with respect to the 293
management or disposition of its assets; 294
(2) Renders investment advice for a fee, direct or 296
indirect, with respect to money or property of the system; 297
(3) Has any discretionary authority or responsibility in 299
the administration of the system. 300
(V)(1) Except as otherwise provided in this division, 302
"compensation" means all salary, wages, and other earnings paid 303
to a contributor by reason of employment. The salary, wages, and 306
8
other earnings shall be determined prior to determination of the 307
amount required to be contributed to the employees' savings fund 308
under section 3309.47 of the Revised Code and without regard to 309
whether any of the salary, wages, or other earnings are treated 311
as deferred income for federal income tax purposes. 312
(2) Compensation does not include any of the following: 314
(a) Payments for accrued but unused sick leave or personal 316
leave, including payments made under a plan established pursuant 317
to section 124.39 of the Revised Code or any other plan 318
established by the employer; 319
(b) Payments made for accrued but unused vacation leave, 321
including payments made pursuant to section 124.13 of the Revised 322
Code or a plan established by the employer; 323
(c) Payments made for vacation pay covering concurrent 325
periods for which other salary or compensation is also paid or 326
during which benefits are paid under this chapter; 327
(d) Amounts paid by the employer to provide life 329
insurance, sickness, accident, endowment, health, medical, 330
hospital, dental, or surgical coverage, or other insurance for 331
the contributor or the contributor's family, or amounts paid by 333
the employer to the contributor in lieu of providing the
insurance; 334
(e) Incidental benefits, including lodging, food, laundry, 336
parking, or services furnished by the employer, use of the 337
employer's property or equipment, and reimbursement for 338
job-related expenses authorized by the employer, including moving 339
and travel expenses and expenses related to professional 340
development; 341
(f) Payments made to or on behalf of a contributor that 343
are in excess of the annual compensation that may be taken into 344
account by the retirement system under division (a)(17) of 345
section 401 of the "Internal Revenue Code of 1986," 100 Stat. 346
2085, 26 U.S.C.A. 401(a)(17), as amended. For a contributor who 347
first establishes membership before July 1, 1996, the annual 348
9
compensation that may be taken into account by the retirement 349
system shall be determined under division (d)(3) of section 13212 350
of the "Omnibus Budget Reconciliation Act of 1993," Pub. L. 352
103-66, 107 Stat. 472;
(g) Payments made under division (B) or (D) of section 354
5923.05 of the Revised Code or Section 4 of Substitute Senate 356
Bill No. 3 of the 119th general assembly; 357
(h) Anything of value received by the contributor that is 359
based on or attributable to retirement or an agreement to retire, 360
except that payments made on or before January 1, 1989, that are 361
based on or attributable to an agreement to retire shall be 362
included in compensation if both of the following apply: 363
(i) The payments are made in accordance with contract 365
provisions that were in effect prior to January 1, 1986. 366
(ii) The employer pays the retirement system an amount 368
specified by the retirement board equal to the additional 369
liability from the payments. 370
(3) The retirement board shall determine by rule whether 372
any form of earnings not enumerated in this division is to be 373
included in compensation, and its decision shall be final. 374
(W) "Disability benefit recipient" means a member who is 376
receiving a disability benefit. 377
(X) "Actuary" means an individual who satisfies all of the 379
following requirements: 380
(1) Is a member of the American academy of actuaries; 382
(2) Is an associate or fellow of the society of actuaries; 384
(3) Has a minimum of five years' experience in providing 386
actuarial services to public retirement plans. 387
Sec. 3309.03. A school employees retirement system is 396
hereby established for the employees as defined in section 397
3309.01 of the Revised Code, which shall include the several 398
funds created and placed under the management of the school 399
employees retirement board for the payment of retirement 400
allowances and other benefits provided in Chapter 3309. of the 401
10
Revised Code. The board may sue and be sued, plead and be 402
impleaded, contract and be contracted with, and do all things 403
necessary to carry out Chapter 3309. of the Revised Code. All of 404
its business shall be transacted, all of its funds invested, all 405
warrants for money drawn and payments made, and all of its cash, 406
securities, and other property shall be held in the name of the 409
board, or in the name of its nominee, provided that nominees are 410
authorized by retirement board resolution for the purpose of
facilitating the ownership and transfer of investments SUCH 411
PURPOSES. THE BOARD MAY TAKE ALL APPROPRIATE ACTION TO AVOID 413
PAYMENT BY THE SYSTEM OR ITS MEMBERS OF FEDERAL OR STATE INCOME 414
TAXES ON CONTRIBUTIONS TO THE SYSTEM OR AMOUNTS EARNED ON THOSE 415
CONTRIBUTIONS.
Sec. 3309.031. THE SCHOOL EMPLOYEES RETIREMENT SYSTEM 417
SHALL CONSIST OF THE PLANS DESCRIBED IN SECTION 3309.18 TO 418
3309.70 OF THE REVISED CODE AND THE PLAN OR PLANS ESTABLISHED 419
UNDER SECTION 3309.81 OF THE REVISED CODE. 420
Sec. 3309.04. The general administration and management of 429
the school employees retirement system and making effective 430
Chapter 3309. of the Revised Code are hereby vested in the school 431
employees retirement board which may adopt rules IN ACCORDANCE 432
WITH SECTION 111.15 OF THE REVISED CODE and may authorize its 433
administrative officers, or committees composed of members of 434
said board, to act for the board in accord ACCORDANCE with such 435
policies and subject to subsequent approval by the board. 436
The attorney general shall prescribe procedures for the 438
adoption of rules authorized under this chapter, consistent with 439
the provision of section 111.15 of the Revised Code under which 440
all rules shall be filed in order to be effective. Such 441
procedures shall establish methods by which notice
NOTICE of proposed rules is SHALL BE given to interested 444
parties and rules adopted by the board SHALL BE published and 446
otherwise made available. When it files a rule with the joint 447
committee on agency rule review pursuant to section 111.15 of the 448
11
Revised Code, the board shall submit to the Ohio retirement study 450
council a copy of the full text of the rule, and if applicable, a 452
copy of the rule summary and fiscal analysis required by division
(B) of section 127.18 of the Revised Code. 453
All rules adopted pursuant to this chapter, prior to August 455
20, 1976, shall be published and made available to interested 457
parties by January 1, 1977.
Sec. 3309.05. The school employees retirement board shall 466
consist of the following seven members: 467
(A) The auditor of state; 469
(B) The attorney general; 471
(C) Four members, known as employee members, who shall be 473
members of the school employees retirement system, and who shall 474
be elected by ballot by the members of the system; 475
(D) One member, known as the retirant member, who shall be 477
a former member of the retirement system who is a recipient of 478
RESIDENT OF THIS STATE AND CURRENTLY RECEIVING AN AGE AND service 480
retirement benefits under this chapter and a resident of this 481
state or a member of the retirement system who is a recipient of 482
BENEFIT, a disability benefit under this chapter and a resident 484
of this state, OR BENEFITS UNDER A PLAN ESTABLISHED UNDER SECTION 485
3309.81 OF THE REVISED CODE. The retirant member shall be
elected by ballot by former members of the system who are 487
CURRENTLY receiving AN AGE AND service retirement benefits or 489
BENEFIT, a disability benefit under this chapter, OR BENEFITS 490
UNDER A PLAN ESTABLISHED UNDER SECTION 3309.81 OF THE REVISED 491
CODE.
Sec. 3309.07. (A) All elections for employee or retirant 500
members of the school employees retirement board shall be held 501
under the direction of the board. 502
(B) Any member of the school employees retirement system, 504
other than a disability benefit recipient, shall be eligible for 505
election as an employee member of the board who has been 506
nominated by a petition signed by at least five hundred members, 507
12
provided that there shall be not less than twenty signers each 508
from at least ten counties wherein such members are employed. The 510
petition shall specify the term of office and position. The name 511
of any member so nominated shall be placed upon the ballot by the 512
board as a regular candidate. Other names of eligible candidates 513
may at any election be substituted for the regular candidates by 514
writing such names upon the ballot. The candidate receiving the 515
highest number of votes for any term as member of the board shall 516
be elected for such term. In any year in which two employee 517
member positions must be filled, the candidates who receive the 518
highest and second highest number of votes shall be elected to 519
the offices.
(C) Any service retirant or disability benefit recipient 521
FORMER MEMBER of the school employees retirement system DESCRIBED 523
IN DIVISION (D) OF SECTION 3309.05 OF THE REVISED CODE is 524
eligible for election as the retirant member of the board TO 526
REPRESENT FORMER MEMBERS CURRENTLY RECEIVING AN AGE AND SERVICE
RETIREMENT BENEFIT, A DISABILITY BENEFIT, OR BENEFITS UNDER A 527
PLAN ESTABLISHED UNDER SECTION 3309.81 OF THE REVISED CODE, 528
provided that such person has been nominated by a petition signed 530
by at least one hundred fifty former members of the system who 531
are CURRENTLY receiving AN AGE AND service retirement benefits or 532
BENEFIT, a disability benefit, OR BENEFITS under this chapter A 534
PLAN ESTABLISHED UNDER SECTION 3309.81 OF THE REVISED CODE. The
petition shall contain the signatures of at least ten such 536
retirants or disability benefit recipients from each of at least 537
five counties wherein service retirants or disability benefit 538
recipients under OF BENEFITS FROM this system reside. The 539
petition shall specify the term of office and position. The name 540
of any retirant or disability benefit recipient PERSON so 541
nominated shall be placed upon the ballot by the board as a 543
regular candidate. Other names of eligible candidates may at any 544
election be substituted for the regular candidates by writing 545
such names upon the ballot. The candidate receiving the highest 546
13
number of votes for any term as member of the board shall be 547
elected for such term. 548
No employee member of the board who retires while a member 550
of the board shall be eligible to become a retirant member of the 551
board for three years after the date of the member's retirement. 552
Sec. 3309.12. The treasurer of state shall be the 561
custodian of the funds of the school employees retirement system, 562
and all disbursements therefrom shall be paid by him THE 563
TREASURER OF STATE only upon instruments duly authorized by the 565
school employees retirement board and bearing the signatures of 566
the board; provided, that such instruments may bear the names of 567
the board members printed thereon and the signatures of the 568
president and secretary of the board. The signatures of the 569
president and secretary may be affixed through the use of a 570
mechanical check signing device.
The treasurer of state shall give a separate and additional 572
bond in such amount as is fixed by the governor and with sureties 573
selected by the board and approved by the governor, conditioned 574
for the faithful performance of the duties of the treasurer of 575
state as custodian of the funds of the system. Such bonds shall 576
be deposited with the secretary of state and kept in his THE 577
TREASURER OF STATE'S office. The governor may require the 579
treasurer of state to give other and additional bonds, as the 580
funds of the system increase, in such amounts and at such times 581
as are fixed by the governor, which additional bonds shall be 582
conditioned, filed, and obtained as is provided for the original 583
bond of the treasurer of state covering the funds of the system. 584
The premium on all bonds shall be paid by the board. 585
The treasurer of state shall deposit any portion of the 587
funds of the system not needed for immediate use in the same 588
manner as state funds are deposited, and subject to all 589
provisions of law with respect to the deposit of state funds, by 590
the treasurer of state, and all interest earned by such portion 591
of the retirement funds as may be deposited by the treasurer of 592
14
state shall be collected by him and placed to the credit of the 593
board. 594
THE TREASURER OF THE STATE SHALL FURNISH ANNUALLY TO THE 596
SCHOOL EMPLOYEES RETIREMENT SYSTEM A SWORN STATEMENT OF THE 598
AMOUNT OF THE FUNDS IN THE TREASURERS' CUSTODY BELONGING TO THE 599
SCHOOL EMPLOYEES RETIREMENT SYSTEM. 600
Sec. 3309.15. (A) The members of the school employees 609
retirement board shall be the trustees of the funds created by 610
section 3309.60 of the Revised Code. The board shall have full 611
power to invest the funds. The board and other fiduciaries shall 613
discharge their duties with respect to the funds solely in the 614
interest of the participants and beneficiaries; for the exclusive 615
purpose of providing benefits to participants and their
beneficiaries and defraying reasonable expenses of administering 616
the school employees retirement system; with care, skill, 617
prudence, and diligence under the circumstances then prevailing 619
that a prudent person acting in a like capacity and familiar with 620
such matters would use in the conduct of an enterprise of a like 621
character and with like aims; and by diversifying the investments 622
of the system so as to minimize the risk of large losses, unless 623
under the circumstances it is clearly prudent not to do so. 624
To facilitate investment of the funds, the THE board may 626
establish a partnership, trust, limited liability company, 628
corporation, including a corporation exempt from taxation under 629
the Internal Revenue Code, 100 Stat. 2085, 26 U.S.C.A. 1, as 631
amended, or any other legal entity authorized to transact 632
business in this state.
(B) In exercising its fiduciary responsibility with 634
respect to the investment of the funds, it shall be the intent of 635
the board to give consideration to investments that enhance the 636
general welfare of the state and its citizens where the 637
investments offer quality, return, and safety comparable to other 639
investments currently available to the board. In fulfilling this 640
intent, equal consideration shall also be given to investments 641
15
otherwise qualifying under this section that involve minority 642
owned and controlled firms and firms owned and controlled by 643
women, either alone or in joint venture with other firms. 644
The board shall adopt, in regular meeting, policies, 646
objectives, or criteria for the operation of the investment 648
program that include asset allocation targets and ranges, risk 649
factors, asset class benchmarks, time horizons, total return 650
objectives, and performance evaluation guidelines. In adopting 651
policies and criteria for the selection of agents with whom the 652
board may contract for the administration of the funds, the board 653
shall give equal consideration to minority owned and controlled 654
firms, firms owned and controlled by women, and ventures 655
involving minority owned and controlled firms and firms owned and 656
controlled by women that otherwise meet the policies and criteria 657
established by the board. Amendments and additions to the 658
policies and criteria shall be adopted in regular meeting. The 659
board shall publish its policies, objectives, and criteria under 661
this provision no less often than annually and shall make copies 663
available to interested parties.
When reporting on the performance of investments, the board 665
shall comply with the performance presentation standards 666
established by the association for investment management and 667
research.
(C) All evidences of title of investments purchased by the 669
board under this section shall be delivered to the treasurer of 672
state, who is hereby designated as custodian thereof, or to the 673
treasurer of state's authorized agent, and the treasurer of state 674
or the agent shall collect principal, interest, dividends, and 675
distributions that become due and payable and place the same when 676
so collected into the custodial funds. Evidences of title of the 677
investments may be deposited by the treasurer of state for 679
safekeeping with an authorized agent, selected by the treasurer 680
of state, who is a qualified trustee under section 135.18 of the 681
Revised Code. The treasurer of state shall pay for the 682
16
investments purchased by the board pending receipt of the
evidence of title of the investments by the treasurer of state or 684
to the treasurer of state's authorized agent, and on receipt of 686
written or electronic instructions from the board or the board's 687
designated agent authorizing the purchase. The board may sell 688
any investments held by the board, and the treasurer of state or 689
the treasurer of state's authorized agent shall accept payment 690
from the purchaser and deliver evidence of title of the 691
investment to the purchaser on receipt of written or electronic 692
instructions from the board or the board's designated agent 693
authorizing the sale, and pending receipt of the moneys for the 694
investments. The amount received shall be placed into the
custodial funds. The board and the treasurer of state may enter 696
into agreements to establish procedures for the purchase and sale 697
of investments under this division and the custody of the
investment.
(D) No purchase or sale of any investment shall be made 700
under this section except as authorized by the school employees 701
retirement board.
(E) Any statement of financial position distributed by the 703
board shall include the fair value, as of the statement date, of 706
all investments held by the board under this section.
Sec. 3309.17. The proper officers of each taxing district 715
issuing the bonds provided for in section 3309.16 of the Revised 716
Code shall, without additional procedure or legislation on their 717
part, comply with sections 3309.01 to 3309.68, inclusive, of the 718
Revised Code THIS CHAPTER, except that the proper accounting 719
officer of such taxing district and the secretary of its sinking 720
fund shall make and keep a detailed record of any such changes 721
required by the school employees retirement board. The board 722
shall not change the date of maturity of any part of the 723
principal or interest of any bond issue, nor shall it require a 724
bond of any issue to be of a larger denomination, nor any partial
payment of principal to be of greater amount than the aggregate 725
17
amount of such issue falling due at any date. 726
Sec. 3309.22. (A) The treasurer of state shall furnish 735
annually to the school employees retirement board a sworn 736
statement of the amount of the funds in the treasurer's custody 738
belonging to the school employees retirement system. 739
(B)(1) As used in this division, "personal history record" 741
means information maintained by the board on a member, former 742
member, contributor, former contributor, retirant, or beneficiary 743
that includes the address, telephone number, social security 744
number, record of contributions, correspondence with the system, 745
and other information the board determines to be confidential. 746
(2) The records of the board shall be open to public 748
inspection, except for the following, which shall be excluded, 749
except with the written authorization of the individual 750
concerned: 751
(a) The individual's statement of previous service and 753
other information as provided for in section 3309.28 of the 754
Revised Code; 755
(b) Any information identifying by name and address the 757
amount of a monthly allowance or benefit paid to the individual; 758
(c) The individual's personal history record. 760
(C)(B) All medical reports and recommendations required by 762
the system are privileged except that copies of such medical 763
reports or recommendations shall be made available to the 764
personal physician, attorney, or authorized agent of the 765
individual concerned upon written release received from the 766
individual or the individual's agent, or when necessary for the 768
proper administration of the fund, to the board assigned 769
physician.
(D)(C) Any person who is a contributor of the system shall 771
be furnished, on written request, with a statement of the amount 773
to the credit of the person's account. The board need not answer 774
more than one such request of a person in any one year.
(E)(D) Notwithstanding the exceptions to public inspection 776
18
in division (B)(A)(2) of this section, the board may furnish the 777
following information: 778
(1) If a member, former member, contributor, former 780
contributor, or retirant is subject to an order issued under 781
section 2907.15 of the Revised Code or is convicted of or pleads 782
guilty to a violation of section 2921.41 of the Revised Code, on 783
written request of a prosecutor as defined in section 2935.01 of 784
the Revised Code, the board shall furnish to the prosecutor the 785
information requested from the individual's personal history 786
record. 787
(2) Pursuant to a court or administrative order issued 789
under section 3111.23 or 3113.21 of the Revised Code, the board 790
shall furnish to a court or child support enforcement agency the 791
information required under that section. 792
(3) At the written request of any person, the board shall 794
provide to the person a list of the names and addresses of 795
members, former members, retirants, contributors, former 796
contributors, or beneficiaries. The costs of compiling, copying, 797
and mailing the list shall be paid by such person. 798
(4) Within fourteen days after receiving from the director 800
of job and family services a list of the names and social 801
security numbers of recipients of public assistance pursuant to 803
section 5101.181 of the Revised Code, the board shall inform the 804
auditor of state of the name, current or most recent employer 805
address, and social security number of each contributor whose 806
name and social security number are the same as that of a person 807
whose name or social security number was submitted by the 808
director. The board and its employees shall, except for purposes 809
of furnishing the auditor of state with information required by 810
this section, preserve the confidentiality of recipients of 811
public assistance in compliance with division (A) of section 812
5101.181 of the Revised Code. 813
(F)(E) A statement that contains information obtained from 815
the system's records that is signed by an officer of the 816
19
retirement system and to which the system's official seal is 817
affixed, or copies of the system's records to which the signature 818
and seal are attached, shall be received as true copies of the 819
system's records in any court or before any officer of this 820
state. 821
Sec. 3309.25. ON RECEIPT OF NOTICE UNDER SECTION 3309.55 823
OF THE REVISED CODE OF THE EMPLOYMENT OF A NEW EMPLOYEE, THE 824
SCHOOL EMPLOYEES RETIREMENT SYSTEM SHALL INFORM THE EMPLOYEE OF 825
THE REQUIREMENTS OF SECTION 3309.251 OF THE REVISED CODE.
Sec. 3309.251. (A) EXCEPT AS PROVIDED IN DIVISION (D) OF 828
THIS SECTION, AN INDIVIDUAL WHO BECOMES A MEMBER OF THE SCHOOL 830
EMPLOYEES RETIREMENT SYSTEM ON OR AFTER THE DATE ON WHICH THE 831
SCHOOL EMPLOYEES RETIREMENT BOARD ESTABLISHES A PLAN UNDER 833
SECTION 3309.81 OF THE REVISED CODE SHALL MAKE AN ELECTION UNDER 834
THIS SECTION. NOT LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE 835
DATE ON WHICH EMPLOYMENT BEGINS, THE INDIVIDUAL SHALL ELECT TO 836
PARTICIPATE EITHER IN THE PLAN DESCRIBED IN SECTIONS 3309.18 TO 837
3309.70 OF THE REVISED CODE OR ONE OF THE PLANS ESTABLISHED UNDER 839
SECTION 3309.81 OF THE REVISED CODE. IF A FORM EVIDENCING AN 840
ELECTION UNDER THIS SECTION IS NOT ON FILE WITH THE EMPLOYER AT 841
THE END OF THE ONE-HUNDRED-EIGHTY-DAY PERIOD, THE INDIVIDUAL IS 843
DEEMED TO HAVE ELECTED TO PARTICIPATE IN THE PLAN DESCRIBED IN 845
SECTIONS 3309.18 TO 3309.70 OF THE REVISED CODE. 846
(B) AN ELECTION UNDER THIS SECTION SHALL BE MADE IN 848
WRITING ON A FORM PROVIDED BY THE RETIREMENT SYSTEM AND FILED 849
WITH THE EMPLOYER'S PERSONNEL OFFICER. NOT LATER THAN TEN DAYS 851
AFTER RECEIVING THE FORM EVIDENCING THE ELECTION, THE EMPLOYER 852
SHALL TRANSMIT TO THE SYSTEM A COPY THAT INCLUDES A STATEMENT 853
CERTIFYING THAT IT IS A TRUE AND ACCURATE COPY OF THE ORIGINAL. 854
(C) AN ELECTION UNDER THIS SECTION SHALL TAKE EFFECT ON 856
THE DATE EMPLOYMENT BEGAN AND IS IRREVOCABLE ON RECEIPT BY THE 857
EMPLOYER.
(D) AN INDIVIDUAL IS INELIGIBLE TO MAKE AN ELECTION UNDER 859
THIS SECTION IF EITHER OF THE FOLLOWING APPLIES: 860
20
(1) AT THE TIME EMPLOYMENT BEGINS, THE INDIVIDUAL IS 862
ALREADY A MEMBER OR CONTRIBUTOR PARTICIPATING IN THE PLAN 863
DESCRIBED IN SECTIONS 3309.18 TO 3309.70 OF THE REVISED CODE OR 864
AN SERS RETIRANT, AS DEFINED IN SECTION 3309.341 OF THE REVISED 865
CODE.
(2) AN ELECTION TO PARTICIPATE IN AN ALTERNATIVE 867
RETIREMENT PLAN UNDER SECTION 3305.05 OF THE REVISED CODE IS IN 868
EFFECT FOR EMPLOYMENT COVERED BY THE SYSTEM. 869
Sec. 3309.252. (A) A MEMBER OF THE SCHOOL EMPLOYEES 871
RETIREMENT SYSTEM, WHO, AS OF THE LAST DAY OF THE MONTH 873
IMMEDIATELY PRECEDING THE DATE ON WHICH THE SYSTEM ESTABLISHES A 874
PLAN UNDER SECTION 3309.81 OF THE REVISED CODE, HAS LESS THAN 875
FIVE YEARS OF TOTAL SERVICE CREDIT IS ELIGIBLE TO MAKE AN 876
ELECTION UNDER THIS SECTION.
NOT LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE DAY THE 878
BOARD FIRST ESTABLISHES ONE OR MORE PLANS UNDER SECTION 3309.81 879
OF THE REVISED CODE, AN ELIGIBLE MEMBER MAY ELECT TO PARTICIPATE 881
IN A PLAN ESTABLISHED UNDER THAT SECTION. IF AN ELECTION IS NOT 882
MADE, A MEMBER TO WHOM THIS SECTION APPLIES IS DEEMED TO HAVE 884
ELECTED TO CONTINUE PARTICIPATING IN THE PLAN DESCRIBED IN 885
SECTIONS 3309.18 TO 3309.70 OF THE REVISED CODE. 886
(B) AN ELECTION UNDER THIS SECTION SHALL BE MADE IN 888
WRITING ON A FORM PROVIDED BY THE SYSTEM AND FILED WITH THE 889
SYSTEM.
(C) ON RECEIPT OF AN ELECTION UNDER THIS SECTION, THE 891
SYSTEM SHALL DO BOTH OF THE FOLLOWING: 892
(1) CREDIT TO THE ACCOUNT OF THE MEMBER IN THE DEFINED 894
CONTRIBUTION FUND THE ACCUMULATED CONTRIBUTIONS STANDING TO THE 895
MEMBER'S CREDIT IN THE EMPLOYEES' SAVINGS FUND; 896
(2) CANCEL ALL SERVICE CREDIT AND ELIGIBILITY FOR ANY 898
PAYMENT, BENEFIT, OR RIGHT UNDER THE PLAN DESCRIBED IN SECTIONS 899
3309.18 TO 3309.70 OF THE REVISED CODE. 900
(D) AN ELECTION UNDER THIS SECTION SHALL BE IRREVOCABLE ON 903
RECEIPT BY THE SYSTEM. 904
21
Sec. 3309.253. A MEMBER OF THE SCHOOL EMPLOYEES RETIREMENT 906
SYSTEM WHO ELECTS TO PARTICIPATE IN A PLAN ESTABLISHED UNDER 907
SECTION 3309.81 OF THE REVISED CODE SHALL BE INELIGIBLE FOR ANY 909
BENEFIT OR PAYMENT UNDER SECTIONS 3309.18 TO 3309.70 OF THE 910
REVISED CODE AND SHALL BE FOREVER BARRED FROM CLAIMING OR 912
PURCHASING SERVICE CREDIT WITH ANY STATE RETIREMENT SYSTEM, AS 913
DEFINED IN SECTION 145.30 OF THE REVISED CODE, FOR SERVICE 914
COVERED BY THE ELECTION. 915
Sec. 3309.341. (A) As used in this section: 924
(1) "SERS retirant" means any person who is receiving a 926
retirement allowance from the school employees retirement system 927
under section 3309.36, 3309.38, or 3309.381 of the Revised Code 928
OR ANY BENEFIT PAID UNDER A PLAN ESTABLISHED UNDER SECTION 929
3309.81 OF THE REVISED CODE.
(2) "Other system retirant" means a member or former 931
member of the public employees retirement system, Ohio police and 933
fire pension fund, state teachers retirement system, state 934
highway patrol retirement system, or Cincinnati retirement system 935
who is receiving age and service or commuted age and service 936
retirement, or a disability benefit from a system of which the 937
retirant is a member or former member.
(B)(1) An SERS retirant or other system retirant may be 939
employed by a public employer. If so employed, the SERS retirant 940
or other system retirant shall contribute to the school employees 941
retirement system in accordance with section 3309.47 of the 942
Revised Code, and the employer shall make contributions in 943
accordance with section 3309.49 of the Revised Code. 944
(2) An employer that employs an SERS retirant or other 946
system retirant shall notify the retirement board of the 947
employment not later than the end of the month in which the 948
employment commences. On receipt of notice from an employer that 949
a person who is an other system retirant has been employed, the 950
school employees retirement system shall notify the state 951
retirement system of which the other system retirant was a member 952
22
of such employment. 953
(C) An SERS retirant or other system retirant who has 955
received a retirement allowance or disability benefit for less 957
than two months when employment subject to this section commences 958
shall forfeit the retirement allowance or disability benefit for 960
the period that begins on the date the employment commences and 961
ends on the date that is two months after the date on which the 962
retirement allowance or disability benefit commenced. Service 963
and contributions for that period shall not be included in the 964
calculation of any benefits payable to the SERS retirant or other 965
system retirant, and those contributions shall be refunded on 966
death or termination of the employment. 967
(D) On receipt of notice from the Ohio police and fire 970
pension fund, public employees retirement system, or state 972
teachers retirement system of the re-employment of an SERS 973
retirant, the school employees retirement system shall not pay,
or if paid shall recover, the amount to be forfeited by the SERS 974
retirant in accordance with section 145.38, 742.26, or 3307.35 of 976
the Revised Code.
(E)(1) On termination of employment under this section, an 978
SERS retirant or other system retirant may file an application 979
with the school employees retirement system for a benefit under 980
this division, which shall consist of a single life annuity 981
having a reserve equal to the amount of the retirant's 982
accumulated contributions for the period of employment and an 984
equal amount of the employer's contributions, plus interest 985
credited to the date of retirement at the rate provided in 986
division (I)(2) of section 3309.01 of the Revised Code. The SERS 987
retirant or other system retirant shall elect either to receive 988
the benefit as a monthly annuity for life or a lump-sum payment 989
discounted to the present value using the current actuarial 990
assumption rate of interest, except that if the monthly annuity 991
would be less than twenty-five dollars per month, the retirant 993
shall receive a lump-sum payment.
23
(2) A benefit payable under this division shall commence 995
on the first day of the month after the latest of the following: 996
(a) The last day for which compensation for employment 998
subject to this section was paid; 999
(b) Attainment by the SERS retirant or other system 1,001
retirant of age sixty-five; 1,002
(c) If the SERS retirant or other system retirant was 1,004
previously employed under this section and is receiving or 1,005
previously received a benefit under this division, completion of 1,006
a period of twelve months since the effective date of that 1,007
benefit. 1,008
(3) An SERS retirant or other system retirant subject to 1,010
this section is not a member of the school employees retirement 1,011
system; does not have any of the rights, privileges, or 1,012
obligations of membership, except as specified in this section; 1,013
and is not eligible to receive health, medical, hospital, or 1,014
surgical benefits under section 3309.69 of the Revised Code for 1,015
employment subject to this section. No amount received under 1,016
this division shall be included in determining an additional 1,017
benefit under section 3309.374 of the Revised Code or any other 1,018
post-retirement benefits. 1,019
(F)(1) If an SERS retirant or other system retirant dies 1,021
while employed in employment subject to this section, a lump-sum 1,022
payment calculated in accordance with division (E)(1) of this 1,023
section shall be paid to the beneficiary under division (H) of 1,024
this section. 1,025
(2) If at the time of death an SERS retirant or other 1,027
system retirant receiving a monthly annuity has received less 1,028
than the retirant would have received as a lump-sum payment, the 1,031
difference between the amount received and the amount that would 1,033
have been received as a lump-sum payment shall be paid to the 1,034
retirant's beneficiary under division (H) of this section. 1,036
(G) If the disability benefit of an other system retirant 1,038
employed under this section is terminated, the retirant shall 1,039
24
become a member of the school employees retirement system, 1,041
effective on the first day of the month next following the 1,042
termination, with all the rights, privileges, and obligations of 1,043
membership. If the retirant, after the termination of the 1,045
disability benefit, earns two years of service credit under this 1,047
retirement system or under the public employees retirement 1,048
system, Ohio police and fire pension fund, state teachers 1,049
retirement system, or state highway patrol retirement system, the 1,051
retirant's prior contributions as an other system retirant under 1,053
this section shall be included in the retirant's total service 1,054
credit as a school employees retirement system member, and the 1,056
retirant shall forfeit all rights and benefits of this section. 1,058
Not more than one year of credit may be given for any period of 1,059
twelve months.
(H) An SERS retirant or other system retirant employed 1,061
under this section may designate one or more persons as 1,062
beneficiary to receive any benefits payable under this section 1,063
due to death. The designation shall be in writing duly executed 1,065
on a form provided by the school employees retirement board, 1,066
signed by the SERS retirant or other system retirant, and filed 1,067
with the board prior to death. The last designation of a 1,068
beneficiary revokes all previous designations. The SERS
retirant's or other system retirant's marriage, divorce, marriage 1,069
dissolution, legal separation, withdrawal of account, birth of 1,070
the retirant's child, or adoption of a child revokes all previous 1,072
designations. If there is no designated beneficiary, the 1,073
beneficiary is the beneficiary designated under division (D) of 1,074
section 3309.44 of the Revised Code. If any benefit payable 1,075
under this section due to the death of an SERS retirant or other 1,076
system retirant is not claimed by a beneficiary within five years 1,077
after the death, the amount payable shall be transferred to the 1,078
guarantee fund and thereafter paid to the beneficiary or the 1,079
estate of the SERS retirant or other system retirant on 1,080
application to the board. 1,081
25
(I) This section does not affect the receipt of benefits 1,083
by or eligibility for benefits of any person who on August 29, 1,084
1976, was receiving a disability benefit or service retirement 1,085
pension or allowance from a state or municipal retirement system 1,086
in Ohio and was a member of any other state or municipal 1,087
retirement system of this state. 1,088
(J) The school employees retirement board may adopt rules 1,090
to carry out this section. 1,091
Sec. 3309.36. (A) A member retiring on service retirement 1,101
shall be granted a retirement allowance consisting of the lesser 1,102
of the sum of the following amounts or the limit established by 1,103
section 415 of the "Internal Revenue Code of 1986," 100 Stat. 1,104
2085, 26 U.S.C.A. 415, as amended: 1,105
(1) An annuity having a reserve equal to the amount of the 1,107
employee's accumulated contributions at that time; 1,108
(2) A pension of equivalent amount; 1,110
(3) An additional pension of forty dollars multiplied by 1,112
the number of years of such prior service credit; 1,113
(4) For members who have ten or more years of service 1,115
credit accumulated prior to October 1, 1956, a basic annual 1,116
pension equal to one hundred eighty dollars, except that such 1,117
basic annual pension shall not exceed the sum of the total annual 1,118
benefits provided by divisions (A)(1), (2), and (3) of this 1,120
section.
(B)(1) When a member retires on service retirement, the 1,122
member's allowance when computed as an annual single lifetime 1,124
allowance as provided in divisions (A)(1), (2), (3), and (4) of 1,126
this section and section 3309.38 of the Revised Code, based upon 1,127
attained age sixty-five or thirty years of total service credit, 1,128
shall be not less than the greater of the amounts determined by 1,130
multiplying the member's total service credit by the following: 1,132
(a) Eighty-six dollars; 1,134
(b) Two and one-tenth TWO-TENTHS per cent of the member's 1,137
final average salary for each of the first thirty years of 1,138
26
service credit or fraction thereof plus two and one-half per cent 1,139
of the member's final average salary for each subsequent year of
service credit or fraction thereof. 1,140
(2) The annual single lifetime allowance determined under 1,144
division (B)(1) of this section shall be adjusted by the greater 1,145
percentage shown in the following schedule opposite the member's 1,147
attained age or years of Ohio service credit: 1,148
Years of Per Cent 1,150
Attained or Ohio Service of 1,152
Age Credit Base Amount 1,153
58 25 75% 1,156
59 26 80 1,159
60 27 85 1,162
61 88 1,165
28 90 1,168
62 91 1,171
63 94 1,174
29 95 1,177
64 97 1,180
65 30 or more 100 1,183
Members shall vest the right to a benefit in accordance with the 1,186
following schedule, based on the member's attained age by 1,187
September 1, 1976: 1,188
Per Cent 1,190
Attained of 1,191
Age Base Amount 1,192
66 102 1,193
67 104 1,194
68 106 1,195
69 108 1,196
70 or more 110 1,197
(3) The annual single lifetime allowance which a retirant 1,199
shall receive under this division shall not exceed the lesser of 1,200
ninety ONE HUNDRED per cent of the member's final average salary 1,201
27
or the limit established by section 415 of the "Internal Revenue 1,204
Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended. 1,205
(C) Retirement allowances determined under this section 1,207
shall be paid as provided in section 3309.46 of the Revised Code. 1,208
Sec. 3309.374. (A) Beginning April 1, 1971, and each year 1,217
thereafter, the board of the school employees retirement system 1,218
shall determine the average percentage change in the consumer 1,219
price index prepared by the United States bureau of labor 1,220
statistics (U.S. City Average for Urban Wage Earners and Clerical 1,221
Workers: "All Items 1982-84=100") for the twelve-calendar-month 1,222
period prior to the first day of January over the next preceding 1,224
twelve-calendar-month period, as reported by the bureau. 1,225
Upon a determination by the board in any year that the 1,227
change in the consumer price index is an increase or that the 1,229
change plus the accumulation described in division (B) of this 1,230
section is an increase, the board shall increase each allowance, 1,231
pension, or benefit payable under this chapter by a percentage
equal to the percentage increase in the consumer price index or 1,232
to that increase plus the accumulation, except that the increase 1,233
shall not exceed three per cent and no allowance, pension, or 1,234
benefit shall exceed the limit established by section 415 of the 1,235
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415, 1,236
as amended. 1,237
The first increase is payable to all persons becoming 1,239
eligible after June 30, 1971, upon such persons receiving an 1,240
allowance, pension, or benefit for twelve months. 1,241
The increased amount is payable for the ensuing 1,243
twelve-month period or until the next increase is granted under 1,244
this section, whichever is later. Subsequent increases shall be 1,245
determined from the date of the first increase paid to the former 1,246
member in the case of an allowance being paid a beneficiary under 1,247
an option, or from the date of the first increase to the survivor 1,248
first receiving an allowance or benefit in the case of an 1,249
allowance or benefit being paid to the subsequent survivors of 1,250
28
the former member. 1,251
The date of the first increase under this section becomes 1,254
the anniversary date for any future increases.
The allowance or benefit used in the first calculation of 1,256
an increase under this section shall remain as the base for all 1,257
future increases, unless a new base is established. ANY INCREASE 1,258
RESULTING FROM PAYMENT OF A RECALCULATED BENEFIT UNDER SECTION 3 1,259
OF SUBSTITUTE SENATE BILL NO. 270 OF THE 123rd GENERAL ASSEMBLY 1,262
SHALL BE INCLUDED IN THE CALCULATION OF FUTURE INCREASES UNDER 1,263
THIS SECTION.
(B) Any percentage of change in the consumer price index 1,265
in any year that is in excess of three per cent shall be 1,266
accumulated and used to determine increases under this section in 1,267
subsequent years. Any percentage of change in the consumer price 1,268
index accumulated by an eligible person prior to the effective 1,269
date of this amendment SEPTEMBER 27, 1996, shall be used in 1,270
determining any future increases under this section. 1,271
(C) The board shall make all rules necessary to carry out 1,273
this section. 1,274
Sec. 3309.381. (A) A recipient of a disability allowance 1,283
under section 3309.401 of the Revised Code who is subject to 1,284
division (C)(3) of that section may make application for service 1,285
retirement under this section. Retirement shall be effective on 1,286
the first day of the first month following the last day for which 1,287
the disability allowance is paid. 1,288
(B) The annual allowance payable under this section shall 1,290
consist of the sum of the amounts determined under divisions 1,291
(B)(1) and (2) of this section: 1,292
(1) The greater of the following: 1,294
(a) An allowance calculated as provided in section 3309.36 1,296
of the Revised Code, excluding any period during which the 1,297
applicant received a disability benefit under section 3309.401 of 1,298
the Revised Code; 1,299
(b) An allowance calculated by multiplying the applicant's 1,301
29
total service credit, including service credit for the last 1,302
continuous period during which he THE APPLICANT received a 1,303
disability benefit under section 3309.401 of the Revised Code, by 1,305
two and one-tenth TWO-TENTHS per cent of his THE APPLICANT'S 1,307
final average salary, except that the allowance shall not exceed 1,309
forty-five per cent of the applicant's final average salary. 1,310
(2) An amount equal to the additional allowance the 1,312
recipient would receive under section 3309.374 of the Revised 1,313
Code, plus any other additional amount he THE RECIPIENT would 1,314
receive under this chapter, had he THE RECIPIENT retired under 1,316
section 3309.36 of the Revised Code effective on the effective 1,318
date of his THE RECIPIENT'S most recent continuous period of 1,320
receipt of a disability benefit under section 3309.401 of the 1,321
Revised Code.
(C) The allowance calculated under division (B) of this 1,323
section, exclusive of any amount added under division (B)(2) of 1,324
this section based on section 3309.374 of the Revised Code, shall 1,325
be the base for all future additional allowances under section 1,326
3309.374 of the Revised Code. 1,327
The anniversary date for future additional allowances under 1,329
section 3309.374 of the Revised Code shall be the effective date 1,330
of the recipient's most recent continuous period of receipt of a 1,331
disability benefit under section 3309.401 of the Revised Code. 1,332
(D) The retirement allowance determined under this section 1,334
shall be paid as provided in section 3309.46 of the Revised Code. 1,335
Sec. 3309.40. A member who has elected disability coverage 1,344
under this section, has not attained age sixty, and is determined 1,345
by the school employees retirement board under section 3309.39 of 1,346
the Revised Code to qualify for a disability beenfit BENEFIT 1,347
shall be retired on disability under this section. 1,349
Upon disability retirement, a member shall receive an 1,351
annual amount that shall consist of: 1,352
(A) An annuity having a reserve equal to the amount of the 1,354
member's accumulated contributions; 1,355
30
(B) A pension that shall be the difference between his THE 1,357
MEMBER'S annuity and an annual amount determined by multiplying 1,359
the total service credit of such member, and in addition thereto, 1,360
the number of years and fractions thereof between the effective 1,361
date of his THE MEMBER'S disability retirement and attained age 1,362
sixty, assuming continuous service, by eighty-six dollars, or by 1,364
two and one-tenth TWO-TENTHS per cent of his THE MEMBER'S final 1,366
average salary, whichever is greater. 1,368
Where the member is not receiving a disability benefit 1,370
under section 3309.35 of the Revised Code and is receiving a 1,371
disability benefit from either the public employees retirement 1,372
system or the state teachers retirement system, then such member 1,373
shall not be eligible for service credit based upon the number of 1,374
years and fractions thereof between the effective date of 1,375
disability and attained age sixty as provided for in this 1,376
division. 1,377
Such disability retirement shall not be less than thirty 1,379
per cent nor more than seventy-five per cent of the member's 1,380
final average salary, except that it shall not exceed any limit 1,381
to which the retirement system is subject under section 415 of 1,382
the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 1,383
415, as amended. 1,384
The school employees retirement board is the final 1,386
authority in determining the eligibility of a member for such 1,387
form of retirement. 1,388
Sec. 3309.401. (A) A member with disability coverage 1,397
under this section who is determined by the school employees 1,398
retirement board under section 3309.39 of the Revised Code to 1,399
qualify for a disability benefit shall receive a disability 1,400
allowance under this section. The allowance shall be an annual 1,401
amount equal to the greater of the following: 1,402
(1) Forty-five per cent of the member's final average 1,404
salary; 1,405
(2) The member's total service credit multiplied by two 1,407
31
and one-tenth TWO-TENTHS per cent of his THE MEMBER'S final 1,409
average salary, not exceeding sixty per cent of his THE MEMBER'S 1,411
final average salary.
(B) Sufficient reserves for payment of the disability 1,413
allowance shall be transferred to the annuity and pension reserve 1,414
fund from the employers' accumulation fund. The accumulated 1,415
contributions of the member shall remain in the employees' 1,416
savings fund. No part of the allowance paid under this section 1,417
shall be charged against the member's accumulated contributions. 1,418
(C) A disability allowance paid under this section shall 1,420
terminate at the earliest of the following: 1,421
(1) The effective date of service retirement under section 1,423
3309.35, 3309.36, or 3309.38 of the Revised Code; 1,424
(2) The date the allowance is terminated under section 1,426
3309.41 of the Revised Code; 1,427
(3) The later of the last day of the month in which the 1,429
recipient attains age sixty-five, or the last day of the month in 1,430
which the benefit period ends as follows: 1,431
Attained Age at Effective Date 1,433
of Disability Allowance Benefit Period 1,435
60 or 61 60 months 1,437
62 or 63 48 months 1,438
64 or 65 36 months 1,439
66, 67, or 68 24 months 1,440
69 or older 12 months 1,441
Sec. 3309.45. Except as provided in division (C)(1) of 1,451
this section, in lieu of accepting the payment of the accumulated 1,453
account of a member who dies before service retirement, the 1,454
beneficiary, as determined in section 3309.44 of the Revised 1,455
Code, may elect to forfeit the accumulated account and to 1,456
substitute certain other benefits either under division (A) or 1,457
(B) of this section.
(A) If a deceased member was eligible for a service 1,459
retirement allowance as provided in section 3309.36, 3309.38, or 1,460
32
3309.381 of the Revised Code, a surviving spouse or other sole 1,461
dependent beneficiary may elect to receive a monthly benefit 1,463
computed as the joint-survivor allowance designated as "plan D" 1,464
in section 3309.46 of the Revised Code, which the member would 1,465
have received had the member retired on the last day of the month 1,466
of death and had the member at that time selected such 1,467
joint-survivor plan. Payment shall begin with the month 1,468
subsequent to the member's death. 1,469
(B) If the deceased member had completed at least one and 1,471
one-half years of credit for Ohio service, with at least 1,472
one-quarter year of Ohio contributing service credit within the 1,473
two and one-half years prior to the date of death, or was 1,474
receiving at the time of death a disability benefit as provided 1,475
in section 3309.40 or 3309.401 of the Revised Code, qualified 1,476
survivors may WHO elect to receive monthly benefits, SHALL 1,478
RECEIVE THE GREATER OF THE BENEFITS provided in divisions 1,479
DIVISION (B)(1) and (5)(a) OR (b) AS ALLOCATED IN ACCORDANCE WITH 1,480
DIVISION (B)(6) of this section. 1,481
(1)(a) Number 1,483
of Qualified 1,484
Or 1,485
survivors Annual Benefit as a Per Monthly Benefit 1,487
affecting Cent of Decedent's shall not be 1,490
Final
the benefit Average Salary less than 1,493
1 25% $ 96 1,496
2 40 186 1,497
3 50 236 1,498
4 55 236 1,499
5 or more 60 236 1,500
(b) YEARS OF SERVICE ANNUAL BENEFIT AS A PER 1,504
CENT OF 1,505
MEMBER'S FINAL AVERAGE SALARY 1,506
20 29% 1,509
33
21 33 1,510
22 37 1,511
23 41 1,512
24 45 1,513
25 48 1,514
26 51 1,515
27 54 1,516
28 57 1,517
29 OR MORE 60 1,520
(2) THE FINAL AVERAGE SALARY USED IN THE CALCULATION OF A 1,523
BENEFIT PAYABLE PURSUANT TO THIS DIVISION TO A QUALIFIED SURVIVOR 1,524
OF A DISABILITY BENEFIT RECIPIENT SHALL BE ADJUSTED FOR EACH YEAR 1,525
BETWEEN THE DISABILITY BENEFIT'S EFFECTIVE DATE AND THE 1,526
RECIPIENT'S DATE OF DEATH BY THE LESSER OF THREE PER CENT OR THE 1,527
ACTUAL AVERAGE PERCENTAGE INCREASE IN THE CONSUMER PRICE INDEX 1,528
PREPARED BY THE UNITED STATES BUREAU OF LABOR STATISTICS (U.S. 1,532
CITY AVERAGE FOR URBAN WAGE EARNERS AND CLERICAL WORKERS: "ALL 1,535
ITEMS 1982-84=100"). 1,536
(3) Benefits shall begin as qualified survivors meet 1,539
eligibility requirements as follows: 1,540
(a) A qualified spouse is the surviving spouse of the 1,542
deceased member who is age sixty-two, or REGARDLESS OF age fifty 1,545
if the deceased member had ten or more years of Ohio service 1,546
credit, or regardless of age if caring for a surviving child, or 1,548
regardless of age if adjudged physically or mentally incompetent. 1,549
(b) A qualified child is any unmarried child of the 1,553
deceased member WHO HAS NEVER BEEN MARRIED AND TO WHOM ONE OF THE 1,554
FOLLOWING APPLIES: 1,555
(i) IS under age eighteen, or under age twenty-two if the 1,558
child is attending an institution of learning or training
pursuant to a program designed to complete in each school year 1,559
the equivalent of at least two-thirds of the full-time curriculum 1,560
requirements of such institution and as further determined by 1,561
board policy, or regardless; 1,562
34
(ii) REGARDLESS of age if, IS adjudged physically or 1,565
mentally incompetent IF THE INCOMPETENCE EXISTED PRIOR TO THE 1,567
MEMBER'S DEATH AND PRIOR TO THE CHILD ATTAINING AGE EIGHTEEN, OR 1,568
AGE TWENTY-TWO IF ATTENDING AN INSTITUTION DESCRIBED IN DIVISION 1,569
(B)(2)(b)(i) OF THIS SECTION. 1,570
(c) A qualified parent is a dependent parent aged 1,572
sixty-five or older. 1,573
(3)(4) "Physically or mentally incompetent" as used in 1,575
this section may be determined by a court of jurisdiction, or by 1,576
a physician appointed by the retirement board. Incapability of 1,577
earning a living because of a physically or mentally disabling 1,578
condition shall meet the qualifications of this division. 1,579
(4)(5) Benefits to a qualified survivor shall terminate 1,581
upon a first marriage, abandonment, adoption, or during active 1,584
military service. Benefits to a deceased member's surviving 1,586
spouse that were terminated under a former version of this 1,587
section that required termination due to remarriage and were not 1,588
resumed prior to the effective date of this amendment shall 1,589
resume on the first day of the month immediately following
receipt by the board of an application on a form provided by the 1,590
board.
Upon the death of any subsequent spouse who was a member of 1,593
the public employees retirement system, state teachers retirement 1,594
system, or school employees retirement system, the surviving 1,595
spouse of such member may elect to continue receiving benefits 1,596
under this division, or to receive survivor's benefits, based 1,597
upon the subsequent spouse's membership in one or more of the 1,598
systems, for which such surviving spouse is eligible under this 1,599
section or section 145.45 or 3307.66 of the Revised Code. If the 1,601
surviving spouse elects to continue receiving benefits under this 1,602
division, such election shall not preclude the payment of 1,603
benefits under this division to any other qualified survivor. 1,604
Benefits shall begin or resume on the first day of the 1,606
month following the attainment of eligibility and shall terminate 1,607
35
on the first day of the month following loss of eligibility. 1,608
(5) Benefits (6)(a) IF A BENEFIT IS PAYABLE UNDER 1,610
DIVISION (B)(1)(a) OF THIS SECTION, BENEFITS to a qualified 1,612
spouse shall be paid in the amount determined for the first 1,613
qualifying survivor in division (B)(1)(a) of this section, but 1,615
shall not be less than one hundred six dollars per month if the 1,616
deceased member had ten or more years of Ohio service credit. 1,617
All other qualifying survivors shall share equally in the benefit 1,619
or remaining portion thereof.
(6)(b) ALL QUALIFYING SURVIVORS SHALL SHARE EQUALLY IN A 1,622
BENEFIT PAYABLE UNDER DIVISION (B)(1)(b) OF THIS SECTION, EXCEPT 1,624
THAT IF THERE IS A SURVIVING SPOUSE THE SURVIVING SPOUSE SHALL
RECEIVE NO LESS THAN THE GREATER OF THE AMOUNT DETERMINED FOR THE 1,625
FIRST QUALIFYING SURVIVOR IN DIVISION (B)(1)(a) OF THIS SECTION 1,627
OR ONE HUNDRED SIX DOLLARS PER MONTH. 1,629
(7) The beneficiary of a member who is also a member of 1,631
the public employees retirement system, or of the state teachers 1,632
retirement system, must forfeit the member's accumulated 1,633
contributions in those systems, if the beneficiary takes a 1,636
survivor benefit. Such benefit shall be exclusively governed by 1,637
section 3309.35 of the Revised Code. 1,638
(C)(1) Regardless of whether the member is survived by a 1,642
spouse or designated beneficiary, if the school employees
retirement system receives notice that a deceased member 1,643
described in division (A) or (B) of this section has one or more 1,645
qualified children, all persons who are qualified survivors under 1,646
Division (B) of this section shall receive monthly benefits as 1,649
provided in division (B) of this section. 1,650
If, after determining the monthly benefits to be paid under 1,652
division (B) of this section, the system receives notice that 1,653
there is a qualified survivor who was not considered when the 1,654
determination was made, the system shall, notwithstanding section 1,655
3309.661 of the Revised Code, recalculate the monthly benefits 1,656
with that qualified survivor included, even if the benefits to 1,657
36
qualified survivors already receiving benefits are reduced as a 1,658
result. The benefits shall be calculated as if the qualified 1,659
survivor who is the subject of the notice became eligible on the
date the notice was received and shall be paid to qualified 1,660
survivors effective on the first day of the first month following 1,661
the system's receipt of the notice. 1,662
If the retirement system did not receive notice that a 1,664
deceased member has one or more qualified children prior to 1,666
making payment under section 3309.44 of the Revised Code to a 1,669
beneficiary as determined by the retirement system, the payment 1,670
is a full discharge and release of the system from any future 1,671
claims under this section or section 3309.44 of the Revised Code. 1,672
(2) If benefits under division (C)(1) of this section to 1,675
all persons, or to all persons other than a surviving spouse or 1,677
other sole beneficiary, terminate, there are no children under
the age of twenty-two years, and the surviving spouse or 1,678
beneficiary qualifies for benefits under division (A) of this 1,680
section, the surviving spouse or beneficiary may elect to receive 1,681
benefits under division (A) of this section. Benefits shall be 1,682
effective on the first day of the month following receipt by the 1,684
board of an application for benefits under division (A) of this 1,685
section. 1,686
(D) If the survivor benefits due and paid under this 1,688
section are in a total amount less than the member's accumulated 1,689
account that was transferred from the employees' savings fund, 1,690
the state teachers retirement fund, and the public employees 1,691
retirement fund to the survivors' benefit fund, then the 1,692
difference between the total amount of the benefits paid shall be 1,693
paid to the beneficiary under section 3309.44 of the Revised 1,694
Code. 1,695
Sec. 3309.47. Each school employees retirement system 1,704
contributor shall contribute eight per cent of his THE 1,705
CONTRIBUTOR'S compensation to the employees' savings fund, except 1,707
that the school employees retirement board may raise the 1,708
37
contribution rate to a rate not greater than ten per cent of 1,709
compensation.
The contributions by the direction of the school employees 1,711
retirement board shall be deducted by the employer from the 1,712
compensation of each contributor on each payroll of such 1,713
contributor for each payroll period and shall be an amount equal 1,714
to the required per cent of such contributor's compensation. ON 1,716
A FINDING BY THE BOARD THAT AN EMPLOYER HAS FAILED OR REFUSED TO 1,717
DEDUCT CONTRIBUTIONS FOR ANY EMPLOYEE DURING ANY YEAR AND TO
TRANSMIT SUCH AMOUNTS TO THE RETIREMENT SYSTEM, THE RETIREMENT 1,718
BOARD MAY MAKE A DETERMINATION OF THE AMOUNT OF THE DELINQUENT 1,719
CONTRIBUTIONS, INCLUDING INTEREST AT A RATE SET BY THE RETIREMENT 1,720
BOARD, FROM THE END OF EACH YEAR, AND CERTIFY TO THE EMPLOYER THE 1,721
AMOUNTS FOR COLLECTION. IF THE AMOUNT IS NOT PAID BY THE 1,722
EMPLOYER, IT MAY BE CERTIFIED FOR COLLECTION IN THE SAME MANNER 1,723
AS PAYMENTS DUE THE EMPLOYERS' TRUST FUND. ANY AMOUNTS SO 1,724
COLLECTED SHALL BE HELD IN TRUST PENDING RECEIPT OF A REPORT OF 1,725
CONTRIBUTIONS FOR THE EMPLOYEE FOR THE PERIOD INVOLVED AS 1,726
PROVIDED BY LAW AND, THEREAFTER, THE AMOUNT IN TRUST SHALL BE 1,727
TRANSFERRED TO THE EMPLOYEE'S SAVINGS FUND TO THE CREDIT OF THE 1,728
EMPLOYEE. ANY AMOUNT REMAINING AFTER THE TRANSFER TO THE 1,729
EMPLOYEES' SAVINGS FUND SHALL BE TRANSFERRED TO THE EMPLOYERS' 1,730
TRUST FUND AS A CREDIT OF THE EMPLOYER. 1,731
Any contributor under contract who, because of illness, 1,733
accident, or other reason approved by the employer, is prevented 1,734
from making his THE CONTRIBUTOR'S contribution to the system for 1,735
any payroll period, may, upon returning to contributing service, 1,737
have such deductions made from other payrolls during the year, or 1,738
may pay such amount to the employer and the employer shall 1,739
transmit such deductions to the system. The deductions shall be 1,740
made notwithstanding that the minimum compensation for any 1,741
contributor shall be reduced thereby. Every contributor shall be 1,742
deemed to consent and agree to the contributions made and 1,743
provided for in this section and shall receipt in full for his 1,744
38
THE CONTRIBUTOR'S salary or compensation, and payment, less the 1,746
contributions, is a full and complete discharge and acquittance 1,747
of all claims and demands whatsoever for the services rendered by 1,748
the person during the period covered by the payment. 1,749
Each contributor shall pay with the first payment to the 1,751
employees' savings fund each year a sum to be determined by the 1,752
board, as provided by law, which amount shall be credited to the 1,753
expense fund. The payments for the expense fund shall be made to 1,754
the board in the same way as payments to the employees' savings 1,755
fund are made. 1,756
Additional deposits may be made to a member's account. At 1,758
retirement, the amount deposited with interest may be used to 1,759
provide additional annuity income. The additional deposits may 1,760
be refunded to the member before retirement, and shall be 1,761
refunded if the member withdraws his THE MEMBER'S refundable 1,762
amount. The deposits may be refunded to the beneficiary or 1,764
estate if the member dies before retirement, and the board shall 1,765
determine whether regular interest shall be credited to deposits 1,766
thus refunded. 1,767
Sec. 3309.49. Each employer shall pay annually to the 1,776
employers' trust fund SCHOOL EMPLOYEES RETIREMENT SYSTEM an 1,777
amount certified by the secretary that shall be a certain per 1,779
cent of the earnable compensation of all employees, and shall be 1,780
known as the "employer contribution." The rate per cent of such 1,781
contribution shall be fixed by the actuary on the basis of his 1,782
THE ACTUARY'S evaluation of the liabilities of the school 1,784
employees retirement system, but shall not exceed fourteen per 1,785
cent, and shall be approved by the school employees retirement 1,786
board. The school employees retirement board may raise the rate 1,787
per cent of the contribution to fourteen per cent of the earnable 1,788
compensation of all employees. In making such evaluation, the 1,789
actuary shall use, as the actuarial assumptions, regular interest 1,790
and such mortality and other tables as are adopted by the school 1,791
employees retirement board. He THE ACTUARY shall compute the 1,793
39
percentage of such earnable compensation, to be known as the 1,794
"employer rate," required annually to fund the liability for all 1,795
allowances, annuities, pensions and other benefits, and any 1,796
deficiencies in the various funds, provided for in this chapter, 1,797
after deducting therefrom the annuity and other benefits provided 1,798
by the contributor's accumulated contributions and deposits or 1,799
other applicable moneys.
Sec. 3309.53. Each employer, before employing any employee 1,808
to whom sections 3309.01 to 3309.68, inclusive, of the Revised 1,810
Code, THIS CHAPTER may apply, shall give such person a written 1,812
statement of his THE PERSON'S duties and obligations under such 1,813
sections as a condition of his employment, which statement shall 1,814
be prepared and supplied to each employer by the school employees 1,815
retirement board.
Any such appointment or reappointment of any employee, or 1,817
service upon indefinite tenure, shall be conditioned upon the 1,818
employee's acceptance of such sections as a part of the contract. 1,819
Sec. 3309.54. During September of each year, or at such 1,828
other time as the school employees retirement board approves, 1,829
each employer shall certify to the board the names of all 1,830
employees to whom sections 3309.01 to 3309.68, inclusive, of the 1,831
Revised Code, apply THIS CHAPTER APPLIES.
Sec. 3309.55. Each employer shall on the first day of each 1,840
calendar month, or at such less frequent intervals as the school 1,841
employees retirement board approves, notify the board of the 1,842
employment of new employees, removals, withdrawals, and changes 1,843
in compensation of employees that have occurred during the month 1,844
preceding or the period since the period covered by the last
notification. At least once a year each employer shall submit to 1,845
the board a complete listing of all employees not contributing to 1,846
the school employees retirement system. EACH EMPLOYER SHALL KEEP 1,848
SUCH RECORDS AND SHALL FURNISH SUCH INFORMATION AND ASSISTANCE TO 1,849
THE SCHOOL EMPLOYEES RETIREMENT BOARD AS IT REQUIRES IN THE 1,850
DISCHARGE OF ITS DUTIES.
40
Sec. 3309.57. The treasurer of each employer on receipt 1,859
from the employer of the voucher for deductions from the 1,860
compensation of employees and for the contributions of the 1,861
employer shall transmit monthly or at such times as the school 1,862
employees retirement board designates the amounts specified in
such voucher to the secretary of the board. The secretary of the 1,863
board after making a record of all such receipts shall pay them 1,864
to the treasurer of state for use according to sections 3309.01 1,865
to 3309.68 of the Revised Code THIS CHAPTER. 1,866
Sec. 3309.59. Employers who obtain funds directly by 1,875
taxation shall levy annually such additional taxes as are 1,876
required to provide the additional funds necessary to meet the 1,877
financial requirements imposed upon them by sections 3309.01 to 1,878
3309.68, inclusive, of the Revised Code, THIS CHAPTER and said 1,879
tax shall be placed before and in preference to all other items 1,880
except for sinking fund or interest purposes. 1,881
Sec. 3309.60. The school employees retirement board shall 1,890
be the trustee of certain funds hereby created as follows: 1,891
(A) The "employees' savings fund" is the fund in which 1,893
shall be accumulated the contributions deducted from the 1,894
compensation of contributors as provided by section 3309.47 of 1,895
the Revised Code, together with the interest credited thereon. 1,896
Such accumulated contributions refunded upon withdrawal or 1,897
payable to a beneficiary as provided in this chapter, shall be 1,898
paid from this fund. Any accumulated contributions forfeited by 1,899
the failure of a contributor or a beneficiary to claim the same 1,900
shall be transferred from this fund to the guarantee fund. The 1,901
accumulated contributions of a contributor shall be transferred 1,902
at his retirement from the employee's savings fund to the annuity 1,903
and pension reserve fund. The accumulated contributions of a 1,904
member who dies prior to service retirement and which are 1,905
forfeited by the qualified beneficiary in exchange for monthly 1,906
survivor benefits, as provided by section 3309.45 of the Revised 1,907
Code, shall be transferred to the survivors' benefit fund. The 1,908
41
accumulated contributions of an SERS retirant or other system 1,909
retirant as defined in section 3309.341 of the Revised Code, who 1,910
dies prior to retirement, shall be transferred to the survivors' 1,911
benefit fund for payment of a lump sum benefit to a beneficiary 1,912
as provided in section 3309.341 of the Revised Code. 1,913
(B) The "employers' trust fund" is the fund to which the 1,915
employer contribution shall be credited and in which shall be 1,916
accumulated the reserves held in trust for the payment of all 1,917
pensions, disability benefits, or other benefits provided by this 1,918
chapter, to contributors retiring or receiving disability 1,919
benefits in the future or to their qualified beneficiaries, and 1,920
from which the reserves for such pensions, disability benefits, 1,921
and other benefits shall be transferred to the annuity and 1,922
pension reserve fund and to the survivors' benefit fund. The 1,923
balances in the employers' accumulation fund shall be transferred 1,924
to this fund. As of June 30, 1958, an additional amount shall be 1,925
transferred from the employers' trust fund to the annuity and 1,926
pension reserve fund in the amount required to complete the 1,927
funding of the prior service and military service pensions then 1,928
payable. 1,929
(C) The "annuity and pension reserve fund" is the fund 1,931
from which shall be paid all annuities, pensions, and disability 1,932
benefits for which reserves have been transferred from the 1,933
employees' savings fund and the employers' trust fund. 1,934
(D) The "survivors' benefit fund" is the fund from which 1,936
shall be paid the survivors' benefits provided by section 3309.45 1,937
of the Revised Code, and the lump sum payment to beneficiaries as 1,938
provided in section 3309.341 of the Revised Code and to which 1,939
shall be transferred from the employers' trust fund the amount 1,940
required to fund all liabilities as of the end of each year. 1,941
(E) The "guarantee fund" is the fund from which interest 1,943
is transferred and credited on the amounts in the funds described 1,944
in divisions (A), (B), (C), and (D) of this section, and is a 1,945
contingent fund from which the special requirements of said funds 1,946
42
may be paid by transfer from this fund. All income derived from 1,947
the investment of funds by the school employees retirement board 1,948
as trustees under section 3309.15 of the Revised Code, together 1,949
with all gifts and bequests, or the income therefrom, shall be 1,950
paid into this fund. 1,951
Any deficit occurring in any other fund that will not be 1,953
covered by payments to that fund, as otherwise provided in this 1,954
chapter, shall be paid by transfers of amounts from the guarantee 1,955
fund to such fund or funds. Should the amount in the guarantee 1,956
fund be insufficient at any time to meet the amounts payable 1,957
therefrom TO THE FUNDS DESCRIBED IN DIVISIONS (C) AND (D) OF THIS 1,959
SECTION, the amount of such deficiency, with regular interest, 1,960
shall be paid by an additional employer rate of contribution as 1,961
determined by the actuary, not to exceed fourteen per cent, and 1,962
shall be approved by the school employees retirement board, and 1,963
the amount of such additional employer contribution shall be 1,964
credited to the guarantee fund. 1,965
The school employees retirement board SYSTEM may accept 1,967
gifts and bequests. Any GIFTS, BEQUESTS, OR funds that may come 1,969
into possession of the school employees retirement board in this 1,971
manner or that may be transferred from the employees' savings 1,972
fund by reason of lack of a claimant, or any surplus in any fund 1,973
created by this section, or any other funds whose disposition is 1,974
not otherwise provided for, shall be credited to the guarantee 1,975
fund.
(F) The "expense fund" is the fund from which shall be 1,977
paid the expenses for the administration and management of the 1,978
school employees retirement system as provided by this chapter, 1,979
and to which shall be credited the fees paid by members as 1,980
provided by sections 3309.47 and 3309.62 of the Revised Code. 1,981
(G) THE DEFINED CONTRIBUTION FUND IS THE FUND IN WHICH 1,984
SHALL BE ACCUMULATED THE CONTRIBUTIONS DEDUCTED FROM THE 1,985
COMPENSATION OF MEMBERS PARTICIPATING IN A PLAN ESTABLISHED UNDER 1,986
SECTION 3309.81 OF THE REVISED CODE, AS PROVIDED IN SECTION 1,988
43
3309.85 OF THE REVISED CODE, TOGETHER WITH ANY EARNINGS AND 1,989
EMPLOYER CONTRIBUTIONS, AS PROVIDED IN SECTION 3309.86 OF THE 1,991
REVISED CODE, CREDITED THEREON. THE DEFINED CONTRIBUTION FUND IS 1,992
THE FUND FROM WHICH SHALL BE PAID ALL BENEFITS PROVIDED UNDER A
PLAN ESTABLISHED UNDER SECTION 3309.81 OF THE REVISED CODE. 1,993
Sec. 3309.61. Wherever in sections 3309.01 to 3309.68, 2,002
inclusive, of the Revised Code THIS CHAPTER, reference is made to 2,003
the employees' savings fund, the employers' trust fund, the 2,006
annuity and pension reserve fund, the guarantee fund, the
survivors' benefit fund, THE DEFINED CONTRIBUTION FUND, or the 2,007
expense fund, such reference shall be construed to have been made 2,009
to each as a separate legal entity. This section does not 2,010
prevent the deposit or investment of all such moneys intermingled
for such purpose but such funds shall be separate and distinct 2,011
legal entities for all other purposes. 2,012
Sec. 3309.66. The right of a person to a pension, an 2,021
annuity, or a retirement allowance itself, any optional benefit, 2,022
any other right accrued or accruing to any persons, under 2,023
sections 3309.01 to 3309.68 of the Revised Code THIS CHAPTER, or 2,024
the various funds created by section 3309.60 of the Revised Code 2,025
and all moneys and investments and income thereof, are exempt 2,027
from any state tax, except the tax imposed by section 5747.02 of 2,028
the Revised Code, and are exempt from any county, municipal, or 2,029
other local tax, except taxes imposed pursuant to section 5748.02 2,030
or 5748.08 of the Revised Code and, except as provided in 2,031
sections 3111.23, 3113.21, and 3309.67 of the Revised Code, shall 2,032
not be subject to execution, garnishment, attachment, the 2,033
operation of bankruptcy or insolvency laws, or any other process 2,034
of law whatsoever, and shall be unassignable except as 2,035
specifically provided in sections 3111.23, 3113.21, and 3309.01
to 3309.68 of the Revised Code. 2,036
Sec. 3309.69. (A) As used in this section, "ineligible 2,045
individual" means all of the following: 2,046
(1) A former member receiving benefits pursuant to section 2,048
44
3309.34, 3309.35, 3309.36, 3309.38, or 3309.381 of the Revised 2,049
Code for whom eligibility is established more than five years 2,050
after June 13, 1981, and who, at the time of establishing 2,051
eligibility, has accrued less than ten years of service credit, 2,052
exclusive of credit obtained after January 29, 1981, pursuant to 2,053
sections 3309.021, 3309.301, 3309.31, and 3309.33 of the Revised 2,054
Code; 2,055
(2) The spouse of the former member; 2,057
(3) The beneficiary of the former member receiving 2,059
benefits pursuant to section 3309.46 of the Revised Code. 2,060
(B) The school employees retirement board may enter into 2,062
an agreement with insurance companies, health insuring 2,064
corporations, or government agencies authorized to do business in 2,066
the state for issuance of a policy or contract of health, 2,067
medical, hospital, or surgical benefits, or any combination 2,068
thereof, for those individuals receiving service retirement or a 2,069
disability or survivor benefit subscribing to the plan and their 2,071
eligible dependents.
If all or any portion of the policy or contract premium is 2,073
to be paid by any individual receiving service retirement or a 2,075
disability or survivor benefit, the person shall, by written 2,076
authorization, instruct the board to deduct the premiums agreed 2,077
to be paid by the individual to the companies, corporations, or 2,079
agencies.
The board may contract for coverage on the basis of part or 2,082
all of the cost of the coverage to be paid from appropriate funds 2,083
of the school employees retirement system. The cost paid from 2,084
the funds of the system shall be included in the employer's 2,086
contribution rate provided by sections 3309.49 and 3309.491 of 2,087
the Revised Code. The board shall not pay or reimburse the cost 2,088
for health care under this section or section 3309.375 of the 2,089
Revised Code for any ineligible individual. 2,090
The board may provide for self-insurance of risk or level 2,092
of risk as set forth in the contract with the companies, 2,093
45
corporations, or agencies, and may provide through the 2,094
self-insurance method specific benefits as authorized by the 2,095
rules of the board. 2,096
(C) If the board provides health, medical, hospital, or 2,098
surgical benefits through any means other than a health insuring 2,100
corporation, it shall offer to each individual eligible for the 2,103
benefits the alternative of receiving benefits through enrollment 2,105
in a health insuring corporation, if all of the following apply: 2,107
(1) The health insuring corporation provides health care 2,110
services in the geographical area in which the individual lives; 2,112
(2) The eligible individual was receiving health care 2,114
benefits through a health maintenance organization or a health 2,115
insuring corporation before retirement; 2,117
(3) The rate and coverage provided by the health insuring 2,120
corporation to eligible individuals is comparable to that 2,122
currently provided by the board under division (B) of this 2,123
section. If the rate or coverage provided by the health insuring 2,124
corporation is not comparable to that currently provided by the 2,126
board under division (B) of this section, the board may deduct 2,127
the additional cost from the eligible individual's monthly 2,128
benefit.
The health insuring corporation shall accept as an enrollee 2,132
any eligible individual who requests enrollment.
The board shall permit each eligible individual to change 2,134
from one plan to another at least once a year at a time 2,135
determined by the board. 2,136
(D) The board shall, beginning the month following receipt 2,138
of satisfactory evidence of the payment for coverage, make a 2,139
monthly payment to each recipient of service retirement, or a 2,140
disability or survivor benefit under the school employees 2,141
retirement system who is eligible for insurance coverage under 2,142
part B of "The Social Security Amendments of 1965," 79 Stat. 301, 2,143
42 U.S.C.A. 1395j, as amended, except that the board shall make 2,144
no such payment to any ineligible individual. Effective on the 2,145
46
first day of the month after December 8, 1998 THE EFFECTIVE DATE 2,147
OF THIS AMENDMENT, the amount of the payment shall be the lesser 2,149
of an amount equal to the basic premium for such coverage, or an 2,150
amount equal to the basic premium in effect on January 1, 1992 2,151
1999.
(E) The board shall establish by rule requirements for the 2,153
coordination of any coverage, payment, or benefit provided under 2,155
this section or section 3309.375 of the Revised Code with any 2,157
similar coverage, payment, or benefit made available to the same 2,158
individual by the public employees retirement system, Ohio police 2,159
and fire pension fund, state teachers retirement system, or state 2,161
highway patrol retirement system. 2,162
(F) The board shall make all other necessary rules 2,164
pursuant to the purpose and intent of this section. 2,165
Sec. 3309.80. THE SCHOOL EMPLOYEES RETIREMENT BOARD SHALL 2,167
ADOPT RULES TO IMPLEMENT EACH PLAN ESTABLISHED UNDER SECTION 2,168
3309.81 OF THE REVISED CODE. 2,169
Sec. 3309.81. THE SCHOOL EMPLOYEES RETIREMENT BOARD SHALL 2,171
ESTABLISH ONE OR MORE PLANS CONSISTING OF BENEFIT OPTIONS THAT 2,172
PROVIDE FOR AN INDIVIDUAL ACCOUNT FOR EACH PARTICIPATING MEMBER 2,173
AND UNDER WHICH BENEFITS ARE BASED SOLELY ON THE AMOUNTS THAT 2,174
HAVE ACCUMULATED IN THE ACCOUNT. THE PLANS MAY INCLUDE OPTIONS 2,175
UNDER WHICH A MEMBER PARTICIPATING IN A PLAN MAY RECEIVE 2,176
DEFINITELY DETERMINABLE BENEFITS. 2,177
EACH PLAN ESTABLISHED UNDER THIS SECTION SHALL MEET THE 2,179
REQUIREMENTS OF SECTIONS 3309.81 TO 3309.98 OF THE REVISED CODE 2,181
AND ANY RULES ADOPTED IN ACCORDANCE WITH SECTION 3309.80 OF THE 2,182
REVISED CODE. IT MAY INCLUDE LIFE INSURANCE, ANNUITIES, VARIABLE 2,183
ANNUITIES, REGULATED INVESTMENT TRUSTS, POOLED INVESTMENT FUNDS, 2,184
OR OTHER FORMS OF INVESTMENT. 2,185
THE BOARD MAY ADMINISTER THE PLANS, ENTER INTO CONTRACTS 2,187
WITH OTHER ENTITIES TO ADMINISTER THE PLANS, OR BOTH. 2,188
Sec. 3309.811. EACH PLAN ESTABLISHED UNDER SECTION 3309.81 2,190
OF THE REVISED CODE SHALL QUALIFY AS A GOVERNMENTAL PLAN UNDER 2,191
47
SECTION 414(d) OF THE "INTERNAL REVENUE CODE OF 1986," 100 STAT. 2,194
2085, 26 U.S.C.A. 414(d), AS AMENDED, AND MEET THE REQUIREMENTS 2,195
OF SECTION 401(a) OF THE "INTERNAL REVENUE CODE OF 1986," 26 2,200
U.S.C.A. 401(a), AS AMENDED, APPLICABLE TO GOVERNMENTAL PLANS. 2,201
Sec. 3309.812. EACH PLAN ESTABLISHED UNDER SECTION 3309.81 2,203
OF THE REVISED CODE SHALL MEET THE REQUIREMENTS NECESSARY TO 2,205
QUALIFY AS A RETIREMENT SYSTEM MAINTAINED BY A STATE OR LOCAL 2,206
GOVERNMENT ENTITY UNDER SECTION 3121(b)(7)(F) OF THE "INTERNAL 2,208
REVENUE CODE OF 1986," 100 STAT. 2085, 26 U.S.C.A. 3121(b)(7)(F), 2,212
AS AMENDED. EACH PARTICIPANT IN A PLAN SHALL QUALIFY AS A MEMBER 2,214
OF THAT SYSTEM.
Sec. 3309.813. EACH PLAN ESTABLISHED UNDER SECTION 3309.81 2,216
OF THE REVISED CODE SHALL REQUIRE THE SCHOOL EMPLOYEES RETIREMENT 2,218
BOARD, OR THE ENTITY ADMINISTERING THE PLAN PURSUANT TO A 2,219
CONTRACT WITH THE BOARD, TO CAUSE AN INDIVIDUAL ACCOUNT TO BE 2,220
MAINTAINED FOR EACH MEMBER PARTICIPATING IN THE PLAN. A PLAN MAY 2,222
INCLUDE DEPOSITS TO THE DEFINED CONTRIBUTION FUND CREATED UNDER 2,223
SECTION 3309.60 OF THE REVISED CODE OR ADDITIONAL DEPOSITS MADE 2,225
UNDER SECTION 3309.47 OF THE REVISED CODE TO THE EMPLOYEES' 2,227
SAVINGS FUND. 2,228
Sec. 3309.82. (A) EXCEPT AS PROVIDED IN DIVISION (B) OF 2,230
THIS SECTION, SECTIONS 3309.02, 3309.021, AND 3309.022 AND 2,232
SECTIONS 3309.18 TO 3309.70 OF THE REVISED CODE DO NOT APPLY TO A 2,235
PLAN ESTABLISHED UNDER SECTION 3309.81 OF THE REVISED CODE, 2,236
EXCEPT THAT A PLAN MAY INCORPORATE PROVISIONS OF THOSE SECTIONS 2,237
AS SPECIFIED IN THE PLAN DOCUMENT. 2,238
(B) THE FOLLOWING SECTIONS OF CHAPTER 3309. OF THE REVISED 2,241
CODE APPLY TO A PLAN ESTABLISHED UNDER SECTION 3309.81 OF THE 2,242
REVISED CODE: SECTIONS 3309.19, 3309.21, 3309.22, 3309.23, 2,244
3309.24, 3309.28, 3309.29, 3309.341, 3309.3712, 3309.47, 2,245
3309.471, 3309.49, 3309.51, 3309.53, 3309.54, 3309.55, 3309.56, 2,246
3309.57, 3309.571, 3309.58, 3309.59, 3309.60, 3309.61, 3309.62, 2,247
3309.66, 3309.661, 3309.67, 3309.68, AND 3309.70 OF THE REVISED 2,249
CODE.
48
Sec. 3309.85. EACH MEMBER PARTICIPATING IN A PLAN 2,251
ESTABLISHED UNDER SECTION 3309.81 OF THE REVISED CODE SHALL 2,252
CONTRIBUTE A PER CENT OF THE MEMBER'S COMPENSATION TO THE SCHOOL 2,254
EMPLOYEES RETIREMENT SYSTEM AS REQUIRED IN SECTION 3309.47 OF THE 2,255
REVISED CODE. CONTRIBUTIONS MADE UNDER THIS SECTION SHALL NOT 2,256
EXCEED THE LIMITS ESTABLISHED BY SECTION 415 OF THE "INTERNAL 2,257
REVENUE CODE OF 1986," 100 STAT. 2085, 26 U.S.C.A. 415, AS 2,261
AMENDED.
Sec. 3309.86. FOR EACH MEMBER PARTICIPATING IN A PLAN 2,263
ESTABLISHED UNDER SECTION 3309.81 OF THE REVISED CODE, THE 2,264
EMPLOYER SHALL CONTRIBUTE A PER CENT OF THE MEMBER'S COMPENSATION 2,266
TO THE SCHOOL EMPLOYEES RETIREMENT SYSTEM AS REQUIRED IN SECTION 2,267
3309.49 OF THE REVISED CODE. 2,268
Sec. 3309.87. EXCEPT AS PROVIDED IN SECTION 3309.88 OF THE 2,270
REVISED CODE, AMOUNTS CONTRIBUTED UNDER SECTIONS 3309.85 AND 2,271
3309.86 OF THE REVISED CODE, AND ANY EARNINGS ON THOSE AMOUNTS, 2,272
SHALL BE DEPOSITED AND CREDITED IN ACCORDANCE WITH THE PLAN 2,274
ESTABLISHED UNDER SECTION 3309.81 OF THE REVISED CODE THAT IS 2,275
SELECTED BY THE MEMBER. 2,276
Sec. 3309.88. FOR EACH MEMBER PARTICIPATING IN A PLAN 2,278
ESTABLISHED UNDER SECTION 3309.81 OF THE REVISED CODE, THE SCHOOL 2,279
EMPLOYEES RETIREMENT SYSTEM SHALL TRANSFER TO THE EMPLOYERS' 2,281
TRUST FUND A PORTION OF THE EMPLOYER CONTRIBUTION REQUIRED UNDER 2,282
SECTION 3309.49 OF THE REVISED CODE. THE PORTION SHALL EQUAL THE 2,283
PERCENTAGE OF COMPENSATION OF MEMBERS FOR WHOM THE CONTRIBUTIONS 2,285
ARE BEING MADE THAT IS DETERMINED BY AN ACTUARY APPOINTED BY THE 2,286
SCHOOL EMPLOYEES RETIREMENT BOARD TO BE NECESSARY TO MITIGATE ANY 2,287
NEGATIVE FINANCIAL IMPACT ON THE SYSTEM OF MEMBERS' PARTICIPATION 2,288
IN A PLAN.
THE BOARD SHALL HAVE PREPARED ANNUALLY AN ACTUARIAL STUDY 2,290
TO DETERMINE WHETHER THE PERCENTAGE TRANSFERRED UNDER THIS 2,291
SECTION SHOULD BE CHANGED TO REFLECT A CHANGE IN THE LEVEL OF 2,292
NEGATIVE FINANCIAL IMPACT RESULTING FROM MEMBERS' PARTICIPATION 2,293
IN A PLAN. THE PERCENTAGE TRANSFERRED SHALL BE INCREASED OR 2,294
49
DECREASED TO REFLECT THE AMOUNT NEEDED TO MITIGATE THE NEGATIVE 2,295
FINANCIAL IMPACT, IF ANY, ON THE SYSTEM, AS DETERMINED BY THE 2,296
STUDY. A CHANGE SHALL TAKE EFFECT ON THE FIRST DAY OF THE YEAR 2,297
FOLLOWING THE DATE THE CONCLUSIONS OF THE STUDY ARE REPORTED TO 2,298
THE BOARD. 2,299
THE SYSTEM SHALL MAKE THE TRANSFER REQUIRED UNDER THIS 2,301
SECTION UNTIL THE UNFUNDED ACTUARIAL ACCRUED LIABILITY FOR ALL 2,302
BENEFITS, EXCEPT HEALTH CARE BENEFITS PROVIDED UNDER SECTION 2,303
3309.375 OR 3309.69 OF THE REVISED CODE AND BENEFIT INCREASES TO 2,304
MEMBERS AND FORMER MEMBERS PARTICIPATING IN THE PLAN DESCRIBED IN 2,305
SECTIONS 3309.18 TO 3309.70 OF THE REVISED CODE GRANTED AFTER THE 2,306
EFFECTIVE DATE OF THIS SECTION, IS FULLY AMORTIZED, AS DETERMINED 2,307
BY THE ANNUAL ACTUARIAL VALUATION PREPARED UNDER SECTION 3309.21 2,308
OF THE REVISED CODE. 2,309
Sec. 3309.91. THE RIGHT OF EACH MEMBER PARTICIPATING IN A 2,311
PLAN ESTABLISHED UNDER SECTION 3309.81 OF THE REVISED CODE TO A 2,312
RETIREMENT, DISABILITY, SURVIVOR, OR DEATH BENEFIT, TO HEALTH OR 2,313
LONG-TERM CARE INSURANCE, OR TO A WITHDRAWAL OF ANY AMOUNTS THAT 2,314
HAVE ACCUMULATED ON THE MEMBER'S BEHALF SHALL BE GOVERNED 2,315
EXCLUSIVELY BY THE PLAN SELECTED BY THE MEMBER. 2,316
Sec. 3309.92. IF A MEMBER PARTICIPATING IN A PLAN 2,318
ESTABLISHED UNDER SECTION 3309.81 OF THE REVISED CODE IS MARRIED 2,319
AT THE TIME BENEFITS UNDER THE PLAN ARE TO COMMENCE, BEFORE 2,321
MAKING ANY PAYMENT THE SCHOOL EMPLOYEES RETIREMENT SYSTEM, OR THE 2,322
ENTITY ADMINISTERING THE PLAN PURSUANT TO A CONTRACT WITH THE 2,324
SCHOOL EMPLOYEES RETIREMENT BOARD, SHALL OBTAIN THE CONSENT OF 2,325
THE MEMBER'S SPOUSE TO THE FORM OF PAYMENT SELECTED BY THE 2,326
MEMBER.
A PLAN ESTABLISHED UNDER SECTION 3309.81 OF THE REVISED 2,329
CODE SHALL INCLUDE REQUIREMENTS FOR CONSENT UNDER THIS SECTION 2,330
THAT ARE THE SAME AS THE REQUIREMENTS SPECIFIED IN SECTION 2,332
417(a)(2) OF THE "INTERNAL REVENUE CODE OF 1986," 100 STAT. 2085, 2,335
26 U.S.C.A. 417(a)(2), AS AMENDED. A PLAN MAY WAIVE CONSENT IF 2,337
THE SPOUSE CANNOT BE LOCATED OR FOR ANY OTHER REASON SPECIFIED IN 2,338
50
THE REGULATIONS ADOPTED UNDER THAT SECTION. 2,339
CONSENT OR WAIVER IS EFFECTIVE ONLY WITH REGARD TO THE 2,341
SPOUSE WHO IS THE SUBJECT OF THE CONSENT OR WAIVER. 2,342
Sec. 3309.95. SUBJECT TO SECTIONS 3309.341, 3309.66, AND 2,344
3309.67 OF THE REVISED CODE, THE RIGHT OF A MEMBER PARTICIPATING 2,346
IN A PLAN ESTABLISHED UNDER SECTION 3309.81 OF THE REVISED CODE 2,347
TO ANY PAYMENT OR BENEFIT ACCRUING FROM CONTRIBUTIONS MADE BY OR 2,349
ON BEHALF OF THE MEMBER UNDER SECTIONS 3309.85 AND 3309.86 OF THE 2,350
REVISED CODE SHALL VEST IN ACCORDANCE WITH THIS SECTION. 2,352
A MEMBER'S RIGHT TO ANY PAYMENT OR BENEFIT THAT IS BASED ON 2,354
THE MEMBER'S CONTRIBUTIONS IS NONFORFEITABLE. 2,355
A MEMBER'S RIGHT TO ANY PAYMENT OR BENEFIT THAT IS BASED ON 2,357
CONTRIBUTIONS BY THE MEMBER'S EMPLOYER IS NONFORFEITABLE AS 2,358
SPECIFIED BY THE PLAN SELECTED BY THE MEMBER. 2,359
Sec. 3309.97. EACH PLAN ESTABLISHED UNDER SECTION 3309.81 2,361
OF THE REVISED CODE SHALL PERMIT A MEMBER PARTICIPATING IN THE 2,363
PLAN TO DO ALL OF THE FOLLOWING: 2,364
(A) MAINTAIN ON DEPOSIT WITH THE SCHOOL EMPLOYEES 2,366
RETIREMENT SYSTEM, OR THE ENTITY ADMINISTERING THE PLAN PURSUANT 2,367
TO A CONTRACT WITH THE SCHOOL EMPLOYEES RETIREMENT BOARD, ANY 2,368
AMOUNTS THAT HAVE ACCUMULATED ON BEHALF OF THE MEMBER; 2,369
(B) IF THE MEMBER HAS WITHDRAWN THE AMOUNTS DESCRIBED IN 2,371
DIVISION (A) OF THIS SECTION, REDEPOSIT WITH THE SYSTEM OR THE 2,372
ENTITY ADMINISTERING THE PLAN THE AMOUNTS WITHDRAWN; 2,373
(C) MAKE ADDITIONAL DEPOSITS AS PERMITTED BY THE "INTERNAL 2,376
REVENUE CODE OF 1986," 100 STAT. 2085, 26 U.S.C.A. 1, AS AMENDED. 2,378
Sec. 3309.98. CONTRIBUTIONS UNDER SECTIONS 3309.85 AND 2,381
3309.86 OF THE REVISED CODE SHALL CEASE ON THE MEMBER'S DEATH OR 2,382
TERMINATION OF EMPLOYMENT OR FOR ANY OTHER REASON SPECIFIED BY 2,383
THE PLAN SELECTED BY THE MEMBER. 2,384
Section 2. That existing sections 3309.01, 3309.03, 2,387
3309.04, 3309.05, 3309.07, 3309.12, 3309.15, 3309.17, 3309.22, 2,388
3309.341, 3309.36, 3309.374, 3309.381, 3309.40, 3309.401, 2,389
3309.45, 3309.47, 3309.49, 3309.53, 3309.54, 3309.55, 3309.57, 2,390
51
3309.59, 3309.60, 3309.61, 3309.66, and 3309.69 and section 2,391
3309.58 of the Revised Code are hereby repealed. 2,392
Section 3. The School Employees Retirement System shall 2,394
recalculate under section 3309.36, 3309.381, 3309.40, 3309.401, 2,395
or 3309.45 of the Revised Code, as amended by this act, or 2,396
3309.38 of the Revised Code, each benefit that is payable under 2,397
those sections or section 3309.46 of the Revised Code and became 2,398
effective on or after January 1, 2000, but before the effective 2,399
date of this act. If the recalculated benefit is greater than 2,400
the recipient's benefit prior to the recalculation, the system 2,401
shall do both of the following: 2,402
(A) Pay the recalculated benefit beginning on the first 2,404
day of the month immediately following the date the board 2,405
recalculates the benefit; 2,406
(B) Make a one-time payment to each recipient receiving a 2,408
benefit on the effective date of this act. 2,409
The payment shall be an amount equal to the difference 2,412
between the benefits paid to the recipient between January 1, 2,413
2000, and the date of the payment and the increased benefits that 2,414
would have been paid to the recipient had the amendments to 2,415
sections 3309.36, 3309.381, 3309.40, 3309.401, and 3309.45 of the 2,416
Revised Code gone into effect on January 1, 2000.
Section 4. (A) The School Employees Retirement System 2,418
shall make a one-time payment to each person receiving a monthly 2,419
payment under section 3309.69 of the Revised Code as of the 2,420
effective date of this act who was eligible to receive a monthly 2,422
payment during the period commencing January 1, 1993, and ending 2,423
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 2,424
for insurance coverage under Part B of the "Social Security 2,425
Amendments of 1965," 79 Stat. 301, 42 U.S.C.A. 1935j, as amended. 2,426
Except as provided in division (B) of this section, the payment 2,427
shall be equal to the difference between: 2,428
(1) The amount the recipient was eligible to receive under 2,430
52
division (D) of section 3309.69 of the Revised Code during the 2,431
period commencing January 1, 1993, and ending on the last day of 2,432
the month in which this act takes effect; 2,433
(2) The amount the recipient would have received under 2,435
division (D) of section 3309.69 of the Revised Code during the 2,436
same period had the amendments to that division made by this act 2,437
taken effect January 1, 1993. 2,438
(B) The School Employees Retirement System shall subtract 2,440
from any amount payable under this section any amount the 2,441
recipient was eligible to receive pursuant to Section 3 of Am. 2,442
Sub. H.B. 673 of the 122nd General Assembly. 2,443
Section 5. If the surviving spouse of a member who died on 2,445
or after January 1, 2000, but before the effective date of this 2,446
act would be eligible for a benefit under division (B)(3)(a) of 2,447
section 3309.45 of the Revised Code as amended by this act and 2,448
the surviving spouse has not taken the payment of the member's 2,449
accumulated account, the system shall calculate the benefit 2,450
payable to the surviving spouse under section 3309.45 of the 2,451
Revised Code as of the effective date of this act and do both of 2,452
the following: 2,453
(A) Begin payment to the surviving spouse on the first day 2,455
of the month immediately following the date the calculation is 2,456
made;
(B) Make a one-time payment to each surviving spouse 2,458
eligible to receive payment under division (A) of this section. 2,459
The payment under this division shall be an amount equal to 2,461
the sum of the monthly benefits that would have been paid to the 2,462
surviving spouse had the amendments to section 3309.45 of the 2,463
Revised Code gone into effect on January 1, 2000. 2,464
Section 6. The amendments made by this act to section 2,466
3309.05 and 3309.07 of the Revised Code do not affect the term of 2,467
the retirant member holding office on the effective date of this 2,468
act.
Section 7. The School Employees Retirement Board, in 2,470
53
consultation with the Ohio Retirement Study Council, shall 2,471
develop a plan to eliminate the requirement that employers pay an 2,472
additional amount pursuant to section 3309.341 of the Revised 2,473
Code for employees whose compensation is less than the minimum 2,474
compensation amount. The System shall present the plan not later
than March 30, 2001, to the President and minority party leader 2,475
of the Senate, Speaker and minority party leader of the House of 2,476
Representatives, the chairpersons of the standing committees in 2,477
the Senate and House of Representatives that regularly hear 2,478
legislation regarding education and the chairpersons of the 2,479
committees and subcommittees in the Senate and House of
Representatives that regularly hear legislation regarding Ohio's 2,480
public pension systems. 2,481