SENATOR Blessing

To amend sections 145.46, 3307.01, 3307.39, 3307.51,

1

3307.56, 3307.561, 3307.563, 3307.58, 3307.60,

2

3307.761, 3307.763, 3307.764, 3307.87, 3309.45, and

3

3309.46 of the Revised Code to create in the State

4

Teachers Retirement System (STRS), School Employees

5

Retirement System, and Public Employees Retirement

6

System the option of receiving retirement benefits

7

as a partial lump sum followed by a reduced monthly

8

allowance and to make other changes to the law

9

governing STRS.

10

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 145.46, 3307.01, 3307.39, 3307.51,	11
3307.56, 3307.561, 3307.563, 3307.58, 3307.60, 3307.761, 3307.763,	12
3307.764, 3307.87, 3309.45, and 3309.46 of the Revised Code be	13
amended to read as follows:	14

Sec. 145.46.  (A) A retirement allowance calculated under	15
section 145.33, 145.331, or 145.34 of the Revised Code shall be	16
paid as provided in this section. If the member is eligible to	17
elect a plan of payment under this section, the election shall be	18
made on a form provided by the public employees retirement board.	19
A plan of payment elected under this section shall be effective	20
only if approved by the board, which shall approve it only if it	21
is certified by an actuary engaged by the board to be the	22
actuarial equivalent of the retirement allowance calculated under	23
section 145.33, 145.331, or 145.34 of the Revised Code.	24

(B)(1) Unless the member is eligible to elect another plan	25
of payment, a member who retires under section 145.32, 145.331, or	26
145.34 of the Revised Code shall receive a retirement allowance	27
under "plan A," which shall consist of the actuarial equivalent of	28
the member's retirement allowance determined under section 145.33,	29
145.331, or 145.34 of the Revised Code in a lesser amount payable	30
for life and one-half of such allowance continuing after death to	31
the member's surviving spouse for the life of the spouse.	32

A member may elect to receive the member's retirement	33
allowance under a plan of payment other than "plan A" if the	34
member is not married or either the member's spouse consents in	35
writing to the member's election of a plan of payment other than	36
"plan A" or the board waives the requirement that the spouse	37
consent. An application for retirement shall include an	38
explanation of all of the following:	39

(a) That, if the member is married, unless the spouse	40
consents to another plan of payment, the member's retirement	41
allowance will be paid under "plan A," which consists of the	42
actuarial equivalent of the member's retirement allowance in a	43
lesser amount payable for life and one-half of the allowance	44
continuing after death to the surviving spouse for the life of the	45
spouse;	46

(b) A description of the alternative plans of payment,	47
including all plans described in divisions (B)(2) and (3) of this	48
section, available with the consent of the spouse;	49

(c) That the spouse may consent to another plan of payment	50
and the procedure for giving consent;	51

(d) That consent is irrevocable once notice of consent is	52
filed with the board.	53

Consent shall be valid only if it is signed, in writing, and	54
witnessed by a notary public. The board may waive the requirement	55
of consent if the spouse is incapacitated or cannot be located or	56
for any other reason specified by the board. Consent or waiver is	57
effective only with regard to the spouse who is the subject of the	58
consent or waiver.	59

(2) A member eligible to elect to receive the member's	60
retirement allowance under a plan of payment other than "plan A"	61
shall receive the member's retirement allowance under the plan	62
described in division (B)(3) of this section or one of the	63
following plans elected at the time the member makes application	64
for retirement:	65

(a) "Plan B," which shall consist of an allowance determined	66
under section 145.33, 145.331, or 145.34 of the Revised Code;	67

(b) "Plan C," which shall consist of the actuarial	68
equivalent of the member's retirement allowance determined under	69
section 145.33, 145.331, or 145.34 of the Revised Code in a lesser	70
amount payable for life and one-half or some other portion of the	71
allowance continuing after death to the member's sole surviving	72
beneficiary designated at the time of the member's retirement,	73
provided that the amount payable to the beneficiary does not	74
exceed the amount payable to the member;	75

(c) "Plan D," which shall consist of the actuarial	76
equivalent of the member's retirement allowance determined under	77
section 145.33, 145.331, or 145.34 of the Revised Code in a lesser	78
amount payable for life and continuing after death to a surviving	79
beneficiary designated at the time of the member's retirement;	80

(d) "Plan E," which shall consist of the actuarial	81
equivalent of the member's retirement allowance determined under	82
section 145.33, 145.331, or 145.34 of the Revised Code in a lesser	83
amount payable for a certain period from the member's retirement	84
date as elected by the member and approved by the retirement	85
board, and on the member's death before the expiration of that	86
certain period the member's lesser retirement allowance payable	87
for the remainder of that period to the member's surviving	88
designated beneficiary nominated by written designation filed with	89
the retirement board.	90

Should the nominated beneficiary designated in writing die	91
prior to the expiration of the guarantee period, then for the	92
purpose of completing payment for the remainder of the guarantee	93
period, the present value of such payments shall be paid to the	94
estate of the beneficiary last receiving.	95

(3)(a) A member may elect to receive a retirement allowance	96
under a plan of payment consisting of both a lump sum in an amount	97
the member designates that constitutes a portion of the member's	98
retirement allowance under a plan described in division (B) of	99
this section and the remainder as a monthly allowance under that	100
plan.	101

The total amount paid as a lump sum and a monthly benefit	102
shall be the actuarial equivalent of the amount that would have	103
been paid had the lump sum not been selected.	104

(b) The lump sum designated by a member shall be not less	105
than six times the monthly amount that would be payable to the	106
member under the plan of payment elected under division (B)(3)(a)	107
of this section had the lump sum not been elected and not more	108
than thirty-six times that amount.	109

(4) An election under division (B)(2) or (3) of this section	110
shall be made at the time the member makes application for	111
retirement.	112

(5) A member eligible to elect to receive the member's	113
retirement allowance under a plan of payment other than "plan A"	114
because the member is unmarried who fails to make an election on	115
retirement shall receive the member's retirement allowance under	116
"plan B."	117

(C) If the retirement allowances, as a single life annuity	118
or payment plan as provided in this section, due and paid are in a	119
total amount less than (1) the accumulated contributions, and (2)	120
other deposits made by the member as provided by this chapter,	121
standing to the credit of the member at the time of retirement,	122
then the difference between the total amount of the allowances	123
paid and the accumulated contributions and other deposits shall be	124
paid to the beneficiary provided under division (D) of section	125
145.43 of the Revised Code.	126

(D)(1) The death of a spouse or any designated beneficiary	127
following retirement shall cancel any plan of payment to provide	128
continuing lifetime benefits to the spouse or beneficiary and	129
return the retirant to the retirant's single lifetime benefit	130
equivalent, as determined by the board, to be effective the month	131
following receipt by the board of notice of the death.	132

(2) On divorce, annulment, or marriage dissolution, a	133
retirant receiving a retirement allowance under a plan that	134
provides for continuation of all or part of the allowance after	135
death for the lifetime of the retirant's surviving spouse may,	136
with the written consent of the spouse or pursuant to an order of	137
the court with jurisdiction over the termination of the marriage,	138
elect to cancel the plan and receive the member's single lifetime	139
benefit equivalent as determined by the retirement board. The	140
election shall be made on a form provided by the board and shall	141
be effective the month following its receipt by the board.	142

(E) Following a marriage or remarriage, a retirant who is	143
receiving the retirant's retirement allowance under "plan B" may	144
elect a new plan of payment under division (B)(1), (2)(b), or	145
(2)(c) of this section based on the actuarial equivalent of the	146
retirant's single lifetime benefit as determined by the board. The	147
plan shall become effective the first day of the month following	148
receipt by the board of an application on a form approved by the	149
board.	150

(F) Any person who, prior to July 24, 1990, selected an	151
optional plan of payment at retirement that provided for a return	152
to the single life benefit after the designated beneficiary's	153
death shall have the retirant's benefit adjusted to the optional	154
plan equivalent without such provision.	155

(G) A retirant's receipt of the first month's retirement	156
allowance constitutes the retirant's final acceptance of the plan	157
of payment and may be changed only as provided in this chapter.	158

Sec. 3307.01.  As used in this chapter:

159

(A) "Employer" means the board of education, school	160
district, governing authority of any community school established	161
under Chapter 3314. of the Revised Code, college, university,	162
institution, or other agency within the state by which a teacher	163
is employed and paid.	164

(B) "Teacher" means all of the following:

165

(1) Any person paid from public funds and employed in the	166
public schools of the state under any type of contract described	167
in section 3319.08 of the Revised Code in a position for which the	168
person is required to have a license issued pursuant to sections	169
3319.22 to 3319.31 of the Revised Code;	170

(2) Any person employed as a teacher by a community school	171
pursuant to Chapter 3314. of the Revised Code;	172

(3) Any person holding an internship certificate issued	173
under section 3319.28 of the Revised Code and employed in a public	174
school in this state;	175

(4) Any person having a license issued pursuant to sections	176
3319.22 to 3319.31 of the Revised Code and employed in a public	177
school in this state in an educational position, as determined by	178
the state board of education, under programs provided for by	179
federal acts or regulations and financed in whole or in part from	180
federal funds, but for which no licensure requirements for the	181
position can be made under the provisions of such federal acts or	182
regulations;	183

(5) Any other teacher or faculty member employed in any	184
school, college, university, institution, or other agency wholly	185
controlled and managed, and supported in whole or in part, by the	186
state or any political subdivision thereof, including Central	187
state university, Cleveland state university, the university of	188
Toledo, and the medical college of Ohio at Toledo;	189

(6) The educational employees of the department of	190
education, as determined by the state superintendent of public	191
instruction.	192

In all cases of doubt, the state teachers retirement board	193
shall determine whether any person is a teacher, and its decision	194
shall be final.	195

"Teacher" does not include any academic or administrative	196
employee of a public institution of higher education, as defined	197
in section 3305.01 of the Revised Code, who participates in an	198
alternative retirement plan established under Chapter 3305. of the	199
Revised Code.	200

(C) "Member" means any person included in the membership of	201
the state teachers retirement system, which shall consist of all	202
teachers and contributors as defined in divisions (B) and (D) of	203
this section and all disability benefit recipients, as defined in	204
section 3307.50 of the Revised Code. However, for purposes of	205
this chapter, the following persons shall not be considered	206
members:	207

(1) A student, intern, or resident who is not a member while	208
employed part-time by a school, college, or university at which	209
the student, intern, or resident is regularly attending classes;	210

(2) A person denied membership pursuant to section 3307.24	211
of the Revised Code;	212

(3) An other system retirant, as defined in section 3307.35	213
of the Revised Code, or a superannuate;	214

(4) An individual employed in a program established pursuant	215
to the "Job Training Partnership Act," 96 Stat. 1322 (1982), 29	216
U.S.C.A. 1501.	217

(D) "Contributor" means any person who has an account in the	218
teachers' savings fund or defined contribution fund.	219

(E) "Beneficiary" means any person eligible to receive, or	220
in receipt of, a retirement allowance or other benefit provided by	221
this chapter.	222

(F) "Year" means the year beginning the first day of July	223
and ending with the thirtieth day of June next following, except	224
that for the purpose of determining final average salary under the	225
plan described in sections 3307.50 to 3307.79 of the Revised Code,	226
"year" may mean the contract year.	227

(G) "Local district pension system" means any school	228
teachers pension fund created in any school district of the state	229
in accordance with the laws of the state prior to September 1,	230
1920.	231

(H) "Employer contribution" means the amount paid by an	232
employer, as determined by the employer rate, including the normal	233
and deficiency rates, contributions, and funds wherever used in	234
this chapter.	235

(I) "Five years of service credit" means employment covered	236
under this chapter and employment covered under a former	237
retirement plan operated, recognized, or endorsed by a college,	238
institute, university, or political subdivision of this state	239
prior to coverage under this chapter.	240

(J) "Actuary" means the actuarial consultant to the state	241
teachers retirement board, who shall be either of the following:	242

(1) A member of the American academy of actuaries;

243

(2) A firm, partnership, or corporation of which at least	244
one person is a member of the American academy of actuaries.	245

(K) "Fiduciary" means a person who does any of the	246
following:	247

(1) Exercises any discretionary authority or control with	248
respect to the management of the system, or with respect to the	249
management or disposition of its assets;	250

(2) Renders investment advice for a fee, direct or indirect,	251
with respect to money or property of the system;	252

(3) Has any discretionary authority or responsibility in the	253
administration of the system.	254

(L)(1) Except as provided in this division, "compensation"	255
means all salary, wages, and other earnings paid to a teacher by	256
reason of the teacher's employment, including compensation paid	257
pursuant to a supplemental contract. The salary, wages, and other	258
earnings shall be determined prior to determination of the amount	259
required to be contributed to the teachers' savings fund or	260
defined contribution fund under section 3307.26 of the Revised	261
Code and without regard to whether any of the salary, wages, or	262
other earnings are treated as deferred income for federal income	263
tax purposes.	264

(2) Compensation does not include any of the following:

265

(a) Payments for accrued but unused sick leave or personal	266
leave, including payments made under a plan established pursuant	267
to section 124.39 of the Revised Code or any other plan	268
established by the employer;	269

(b) Payments made for accrued but unused vacation leave,	270
including payments made pursuant to section 124.13 of the Revised	271
Code or a plan established by the employer;	272

(c) Payments made for vacation pay covering concurrent	273
periods for which other salary, compensation, or benefits under	274
this chapter are paid;	275

(d) Amounts paid by the employer to provide life insurance,	276
sickness, accident, endowment, health, medical, hospital, dental,	277
or surgical coverage, or other insurance for the teacher or the	278
teacher's family, or amounts paid by the employer to the teacher	279
in lieu of providing the insurance;	280

(e) Incidental benefits, including lodging, food, laundry,	281
parking, or services furnished by the employer, use of the	282
employer's property or equipment, and reimbursement for	283
job-related expenses authorized by the employer, including moving	284
and travel expenses and expenses related to professional	285
development;	286

(f) Payments made by the employer in exchange for a member's	287
waiver of a right to receive any payment, amount, or benefit	288
described in division (L)(2) of this section;	289

(g) Payments by the employer for services not actually	290
rendered;	291

(h) Any amount paid by the employer as a retroactive	292
increase in salary, wages, or other earnings, unless the increase	293
is one of the following:	294

(i) A retroactive increase paid to a member employed by a	295
school district board of education in a position that requires a	296
license designated for teaching and not designated for being an	297
administrator issued under section 3319.22 of the Revised Code	298
that is paid in accordance with uniform criteria applicable to all	299
members employed by the board in positions requiring the licenses;	300

(ii) A retroactive increase paid to a member employed by a	301
school district board of education in a position that requires a	302
license designated for being an administrator issued under section	303
3319.22 of the Revised Code that is paid in accordance with	304
uniform criteria applicable to all members employed by the board	305
in positions requiring the licenses;	306

(iii) A retroactive increase paid to a member employed by a	307
school district board of education as a superintendent that is	308
also paid as described in division (L)(2)(h)(i) of this section;	309

(iv) A retroactive increase paid to a member employed by an	310
employer other than a school district board of education in	311
accordance with uniform criteria applicable to all members	312
employed by the employer.	313

(i) Payments made to or on behalf of a teacher that are in	314
excess of the annual compensation that may be taken into account	315
by the retirement system under division (a)(17) of section 401 of	316
the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A.	317
401(a)(17), as amended. For a teacher who first establishes	318
membership before July 1, 1996, the annual compensation that may	319
be taken into account by the retirement system shall be determined	320
under division (d)(3) of section 13212 of the "Omnibus Budget	321
Reconciliation Act of 1993," Pub. L. No. 103-66, 107 Stat. 472.	322

(j) Payments made under division (B), (C), or (E) of section	323
5923.05 of the Revised Code, Section 4 of Substitute Senate Bill	324
No. 3 of the 119th general assembly, Section 3 of Amended	325
Substitute Senate Bill No. 164 of the 124th general assembly, or	326
Amended Substitute House Bill No. 405 of the 124th general	327
assembly;	328

(k) Anything of value received by the teacher that is based	329
on or attributable to retirement or an agreement to retire.	330

(3) The retirement board shall determine by rule both of the	331
following:	332

(a) Whether particular forms of earnings are included in any	333
of the categories enumerated in this division;	334

(b) Whether any form of earnings not enumerated in this	335
division is to be included in compensation.	336

Decisions of the board made under this division shall be	337
final.	338

(M) "Superannuate" means both of the following:

339

(1) A former teacher receiving from the system a retirement	340
allowance under section 3307.58 or 3307.59 of the Revised Code;	341

(2) A former teacher receiving anya benefit from the system	342
under a plan established under section 3307.81 of the Revised	343
Code, except that "superannuate" does not include a former teacher	344
who is receiving a benefit based on disability under a plan	345
established under section 3307.81 of the Revised Code.	346

For purposes of section 3307.35 of the Revised Code,	347
"superannuate" also means a former teacher receiving from the	348
system a combined service retirement benefit paid in accordance	349
with section 3307.57 of the Revised Code, regardless of which	350
retirement system is paying the benefit.	351

Sec. 3307.39.  (A) The state teachers retirement board may	352
enter into an agreement with insurance companies, health insuring	353
corporations, or government agencies authorized to do business in	354
the state for issuance of a policy or contract of health, medical,	355
hospital, or surgical benefits, or any combination thereof, for	356
those individuals receiving, under the plan described in sections	357
3307.50 to 3307.79 of the Revised Code, service retirement or a	358
disability or survivor benefit who subscribe to the plan.	359
Notwithstanding any other provision of this chapter, the policy or	360
contract may also include coverage for any eligible individual's	361
spouse and dependent children and for any of the individual's	362
sponsored dependents as the board considers appropriate. If all	363
or any portion of the policy or contract premium is to be paid by	364
any individual receiving service retirement or a disability or	365
survivor benefit, the individual shall, by written authorization,	366
instruct the board to deduct the premium agreed to be paid by the	367
individual to the companies, corporations, or agencies.	368

The board may contract for coverage on the basis of part or	369
all of the cost of the coverage to be paid from appropriate funds	370
of the state teachers retirement system. The cost paid from the	371
funds of the system shall be included in the employer's	372
contribution rate provided by section 3307.28 of the Revised Code.	373

The board may enter into an agreement under this division for	374
coverage of recipients of benefits under a plan established under	375
section 3307.81 of the Revised Code if the plan selected includes	376
health, medical, hospital, or surgical benefits, or any	377
combination thereof. The board may contract for coverage on the	378
basis that the cost of the coverage will be paid by the recipient	379
or by the plan to which the recipient contributed under this	380
chapter. The board may offer to recipients plans that provide for	381
different levels of coverage or for prepayment of the cost of	382
coverage.	383

The board may provide for self-insurance of risk or level of	384
risk as set forth in the contract with the companies,	385
corporations, or agencies, and may provide through the	386
self-insurance method specific benefits as authorized by the rules	387
of the board.	388

(B) If the board provides health, medical, hospital, or	389
surgical benefits through any means other than a health insuring	390
corporation, it shall offer to each individual eligible for the	391
benefits the alternative of receiving benefits through enrollment	392
in a health insuring corporation, if all of the following apply:	393

(1) The health insuring corporation provides health care	394
services in the geographical area in which the individual lives;	395

(2) The eligible individual was receiving health care	396
benefits through a health maintenance organization or a health	397
insuring corporation before retirement;	398

(3) The rate and coverage provided by the health insuring	399
corporation to eligible individuals is comparable to that	400
currently provided by the board under division (A) of this	401
section. If the rate or coverage provided by the health insuring	402
corporation is not comparable to that currently provided by the	403
board under division (A) of this section, the board may deduct the	404
additional cost from the eligible individual's monthly benefit.	405

The health insuring corporation shall accept as an enrollee	406
any eligible individual who requests enrollment.	407

The board shall permit each eligible individual to change	408
from one plan to another at least once a year at a time determined	409
by the board.	410

(C) The board shall make a monthly payment to each recipient	411
of service retirement, or a disability or survivor benefit under	412
the plan described in sections 3307.50 to 3307.79 of the Revised	413
Code who is eligible for insurance coverage under part B of "The	414
Social Security Amendments of 1965," 79 Stat. 301, 42 U.S.C.A.	415
1395j, as amended, and may make a monthly payment to a recipient	416
of benefits under a plan established under section 3307.81 of the	417
Revised Code who is eligible for that insurance coverage if the	418
monthly payments are funded through the plan selected by the	419
recipient. The payment shall be the greater of the following:	420

(1) Twenty-nine dollars and ninety cents;

421

(2) An amount determined by multiplying the basic premium	422
for the coverage by a percentage, not exceeding ninety per cent,	423
determined by multiplying the years of service used in calculating	424
the service retirement or benefit or, in the case of a recipient	425
of benefits under a plan established under section 3307.81 of the	426
Revised Code, the participant's years of service by a percentage	427
determined by the board not exceeding three per cent.	428

The board shall make all payments under this division	429
beginning the month following receipt of satisfactory evidence of	430
the payment for the coverage.	431

(D)(C) The board shall establish by rule requirements for	432
the coordination of any coverage, payment, or benefit provided	433
under this section or section 3307.61 of the Revised Code with any	434
similar coverage, payment, or benefit made available to the same	435
individual by the public employees retirement system, Ohio police	436
and fire pension fund, school employees retirement system, or	437
state highway patrol retirement system.	438

(E)(D) The board shall make all other necessary rules	439
pursuant to the purpose and intent of this section.	440

Sec. 3307.51.  (A) The state teachers retirement board shall	441
have prepared annually by or under the supervision of an actuary	442
an actuarial valuation of the pension assets, liabilities, and	443
funding requirements of the plan described in sections 3307.50 to	444
3307.79 of the Revised Code. The actuary shall complete the	445
valuation in accordance with actuarial standards of practice	446
promulgated by the actuarial standards board of the American	447
academy of actuaries and prepare a report of the valuation. The	448
report shall include all of the following:	449

(1) A summary of the benefit provisions evaluated;

450

(2) A summary of the census data and financial information	451
used in the valuation;	452

(3) A description of the actuarial assumptions, actuarial	453
cost method, and asset valuation method used in the valuation,	454
including a statement of the assumed rate of payroll growth and	455
assumed rate of growth or decline in the number of members	456
contributing to the retirement system;	457

(4) A summary of findings that includes a statement of the	458
actuarial accrued pension liabilities and unfunded actuarial	459
accrued pension liabilities;	460

(5) A schedule showing the effect of any changes in the	461
benefit provisions, actuarial assumptions, or cost methods since	462
the last annual actuarial valuation;	463

(6) A statement of whether contributions to the retirement	464
system are expected to be sufficient to satisfy the funding	465
objectives established by the board.	466

The board shall submit the report to the Ohio retirement	467
study council and the standing committees of the house of	468
representatives and the senate with primary responsibility for	469
retirement legislation not later than the first day of January	470
following the year for which the valuation was made.	471

(B) At such times as the state teachers retirement board	472
determines, and at least once in each quinquennial period, the	473
board shall have prepared by or under the supervision of an	474
actuary an actuarial investigation of the mortality, service, and	475
other experience of the members, retirants, and beneficiaries of	476
the system, and other system retirants as defined in section	477
3307.35 of the Revised Code to update the actuarial assumptions	478
used in the actuarial valuation required by division (A) of this	479
section. The actuary shall prepare a report of the actuarial	480
investigation. The report shall be prepared and any recommended	481
changes in actuarial assumptions shall be made in accordance with	482
the actuarial standards of practice promulgated by the actuarial	483
standards board of the American academy of actuaries. The report	484
shall include all of the following:	485

(1) A summary of relevant decrement and economic assumption	486
experience observed over the period of the investigation;	487

(2) Recommended changes in actuarial assumptions to be used	488
in subsequent actuarial valuations required by division (A) of	489
this section;	490

(3) A measurement of the financial effect of the recommended	491
changes in actuarial assumptions.	492

The board shall submit the report to the Ohio retirement	493
study council and the standing committees of the house of	494
representatives and the senate with primary responsibility for	495
retirement legislation not later than the first day of May	496
following the last fiscal year of the period the report covers.	497

(C) The board may at any time request the actuary to make	498
any other studies or actuarial valuations to determine the	499
adequacy of the normal and deficiency rates of contribution	500
provided by section 3307.28 of the Revised Code, and those rates	501
may be adjusted by the board, as recommended by the actuary,	502
effective as of the first of any year thereafter.	503

(D) The board shall have prepared by or under the	504
supervision of an actuary an actuarial analysis of any introduced	505
legislation expected to have a measurable financial impact on the	506
retirement system. The actuarial analysis shall be completed in	507
accordance with the actuarial standards of practice promulgated by	508
the actuarial standards board of the American academy of	509
actuaries. The actuary shall prepare a report of the actuarial	510
analysis, which shall include all of the following:	511

(1) A summary of the statutory changes that are being	512
evaluated;	513

(2) A description of or reference to the actuarial	514
assumptions and actuarial cost method used in the report;	515

(3) A description of the participant group or groups	516
included in the report;	517

(4) A statement of the financial impact of the legislation,	518
including the resulting increase, if any, in the employer normal	519
cost percentage; the increase, if any, in actuarial accrued	520
liabilities; and the per cent of payroll that would be required to	521
amortize the increase in actuarial accrued liabilities as a level	522
per cent of covered payroll for all active members over a period	523
not to exceed thirty years;	524

(5) A statement of whether the scheduled contributions to	525
the system after the proposed change is enacted are expected to be	526
sufficient to satisfy the funding objectives established by the	527
board.	528

Not later than sixty days from the date of introduction of	529
the legislation, the board shall submit a copy of the actuarial	530
analysis to the legislative budget office of the legislative	531
service commission, the standing committees of the house of	532
representatives and the senate with primary responsibility for	533
retirement legislation, and the Ohio retirement study council.	534

(E) The board shall have prepared annually a report giving a	535
full accounting of the revenues and costs relating to the	536
provision of benefits under sections 3307.39 and 3307.61 of the	537
Revised Code. The report shall be made as of June 30, 1997, and	538
the thirtieth day of June of each year thereafter. The report	539
shall include the following:	540

(1) A description of the statutory authority for the	541
benefits provided;	542

(2) A summary of the benefits;

543

(3) A summary of the eligibility requirements for the	544
benefits;	545

(4) A statement of the number of participants eligible for	546
the benefits;	547

(5) A description of the accounting, asset valuation, and	548
funding method used to provide the benefits;	549

(6) A statement of the net assets available for the	550
provisions of benefits as of the last day of the fiscal year;	551

(7) A statement of any changes in the net assets available	552
for the provision of benefits, including participant and employer	553
contributions, net investment income, administrative expenses, and	554
benefits provided to participants, as of the last day of the	555
fiscal year;	556

(8) For the last six consecutive fiscal years, a schedule of	557
the net assets available for the benefits, the annual cost of	558
benefits, administrative expenses incurred, and annual employer	559
contributions allocated for the provision of benefits;	560

(9) A description of any significant changes that affect the	561
comparability of the report required under this division;	562

(10) A statement of the amount paid under division (C)(B) of	563
section 3307.39 of the Revised Code.	564

The board shall submit the report to the Ohio retirement	565
study council and the standing committees of the house of	566
representatives and the senate with primary responsibility for	567
retirement legislation not later than the thirty-first day of	568
December following the year for which the report was made.	569

Sec. 3307.56.  (A)(1) Subject to sections 3307.37 and	570
3307.561 of the Revised Code and except as provided in division	571
(B)(2) of this section, a member participating in the plan	572
described in sections 3307.50 to 3307.79 of the Revised Code who	573
ceases to be a teacher for any cause other than death, retirement,	574
receipt of a disability benefit, or current employment in a	575
position in which the member has elected to participate in an	576
alternative retirement plan under section 3305.05 of the Revised	577
Code, upon application, shall be paid the accumulated	578
contributions standing to the credit of the member's individual	579
account in the teachers' savings fund plus an amount calculated in	580
accordance with section 3307.563 of the Revised Code. If the	581
member or the member's legal representative cannot be found within	582
ten years after the member ceased making contributions pursuant to	583
section 3307.26 of the Revised Code, the accumulated contributions	584
may be transferred to the guarantee fund and thereafter paid to	585
the member, to the member's beneficiaries, or to the member's	586
estate, upon proper application.	587

(2) A member described in division (A)(1) of this section	588
who is married at the time of application for payment and is	589
eligible for age and service retirement under section 3307.58 or	590
3307.59 of the Revised Code shall submit with the application a	591
written statement by the member's spouse attesting that the spouse	592
consents to the payment of the member's accumulated contributions.	593
Consent shall be valid only if it is signed and witnessed by a	594
notary public. If the statement is not submitted under this	595
division, the application shall be considered an application for	596
service retirement and shall be subject to division (F)(G)(1) of	597
section 3307.60 of the Revised Code.	598

The state teachers retirement board may waive the requirement	599
of consent if the spouse is incapacitated or cannot be located, or	600
for any other reason specified by the board. Consent or waiver is	601
effective only with regard to the spouse who is the subject of the	602
consent or waiver.	603

(B) This division applies to any member who is employed in a	604
position in which the member has elected under section 3305.05 of	605
the Revised Code to participate in an alternative retirement plan	606
and due to the election ceases to be a teacher for the purposes	607
of that position.	608

Subject to sections 3307.37 and 3307.561 of the Revised Code,	609
the state teachers retirement system shall do the following:	610

(1) On receipt of a certified copy of an election under	611
section 3305.05 of the Revised Code, pay, in accordance with	612
section 3305.051 of the Revised Code, the amount described in that	613
section to the appropriate provider;	614

(2) If a member has accumulated contributions, in addition	615
to those subject to division (B)(1) of this section, standing to	616
the credit of a member's individual account and is not otherwise	617
in a position in which the member is considered a teacher for the	618
purposes of that position, pay, to the provider the member	619
selected pursuant to section 3305.05 of the Revised Code, the	620
accumulated contributions standing to the credit of the member's	621
individual account in the teachers' saving fund plus an amount	622
calculated in accordance with section 3307.80 of the Revised Code.	623
The payment shall be made on the member's application.	624

(C) Payment of a member's accumulated contributions under	625
division (B) of this section cancels the member's total service	626
credit in the state teachers retirement system. A member whose	627
accumulated contributions are paid to a provider pursuant to	628
division (B) of this section is forever barred from claiming or	629
purchasing service credit under the state teachers retirement	630
system for the period of employment attributable to those	631
contributions.	632

Sec. 3307.561. A(A) Except as provided in division (B) of	633
this section, a member of the state teachers retirement system	634
participating in the plan described in sections 3307.50 to 3307.79	635
of the Revised Code who has ceased to be a teacher, and who is	636
also a member of either the public employees retirement system or	637
school employees retirement system, or both, may not withdraw the	638
member's accumulated contributions unless the.	639

(B) On application, the state teachers retirement board	640
shall pay a member described in division (A) of this section the	641
member's accumulated contributions if either of the following	642
applies:	643

(1) The member also withdraws the member's contributions	644
from the other systems.	645

(2) The member is a participant in a plan established under	646
section 145.81 or 3309.81 of the Revised Code.	647

Sec. 3307.563.  For the purposes of this section, "service	648
credit" includes only service credit obtained pursuant to sections	649
3307.53, 3307.71, 3307.72, and 3307.77 of the Revised Code.	650

(A) The state teachers retirement system shall add to a	651
member's accumulated contributions to be paid under section	652
3307.56 or 3307.562 of the Revised Code an amount paid from the	653
employers' trust fund equal to one of the following:	654

(1) If the member has less than three full years of service	655
credit, an amount equal to interest on the member's accumulated	656
contributions, compounded annually, at a rate not greater than	657
four per cent established by the board;	658

(2) If the member has three or more full years of service	659
credit, but less than five full years, an amount equal to interest	660
on the member's accumulated contributions, compounded annually, at	661
a rate not greater than six per cent established by the board;	662

(3) If the member has five or more full years of service	663
credit, the sum of the following amounts:	664

(a) An amount equal to interest on the member's accumulated	665
contributions, compounded annually, at a rate not greater than six	666
per cent established by the board;	667

(b) An amount equal to fifty per cent of the sum of the	668
member's contributions under section 3307.26 and division (C) of	669
section 3307.77 of the Revised Code plus interest on that amount	670
at a rate not greater than six per cent established by the board.	671

Interest for each year included in the calculation under this	672
section shall be calculated from the first day of the following	673
year to the last day of the month preceding payment under section	674
3307.56 or 3307.562 of the Revised Code.	675

(B) Notwithstanding sections 3307.56 and 3307.562 of the	676
Revised Code, neither the beneficiaries, survivors, nor estate of	677
a deceased member who was granted disability benefits prior to	678
death is eligible for the payment of any amount calculated under	679
this section.	680

Sec. 3307.58.  Any member participating in the plan described	681
in sections 3307.50 to 3307.79 of the Revised Code who has five	682
years of service credit and has attained age sixty, or who has	683
twenty-five years of service credit and has attained age	684
fifty-five, or who has thirty years of service credit shall be	685
granted service retirement after filing with the state teachers	686
retirement board a completed application on a form approved by the	687
board.	688

(A) Service retirement shall be effective on the first day	689
of the month next following the later of:	690

(1) The last day for which compensation was paid; or

691

(2) The attainment of minimum age or service credit	692
eligibility for benefits provided under this section.	693

Except as provided in division (E) of this section, the	694
service retirement benefit shall be the greater of the benefits	695
provided in divisions (B) and (D) of this section.	696

(B) Subject to any adjustment made under division (C) of	697
this section, the annual single lifetime benefit of a member shall	698
be the greater of the amounts determined by the member's Ohio	699
service credit multiplied by one of the following:	700

(1) Eighty-six dollars;

701

(2)(a) The sum of the following amounts:

702

(i) For each of the first thirty years of Ohio service	703
credit, two and two-tenths per cent of the member's final average	704
salary or, subject to the limitation described in division	705
(B)(2)(b) of this section, two and five-tenths per cent of the	706
member's final average salary if the member has thirty-five or	707
more years of service credit under section 3307.53, 3307.57,	708
3307.75, 3307.751, 3307.752, 3307.761, 3307.763, 3307.77, or	709
3307.771 of the Revised Code, division (A)(2) or (B) of former	710
section 3307.513 of the Revised Code, former section 3307.514 of	711
the Revised Code, section 3307.72 of the Revised Code earned after	712
July 1, 1978, or any combination of service credit under those	713
sections;	714

(ii) For each year or fraction of a year of Ohio service	715
credit in excess of thirty years, two and two-tenths per cent of	716
the member's final average salary or, subject to the limitation	717
described in division (B)(2)(b) of this section, if the member has	718
more than thirty years service credit under section 3307.53,	719
3307.57, 3307.75, 3307.751, 3307.752, 3307.761, 3307.763, 3307.77,	720
or 3307.771 of the Revised Code, division (A)(2) or (B) of former	721
section 3307.513 of the Revised Code, former section 3307.514 of	722
the Revised Code, section 3307.72 of the Revised Code earned after	723
July 1, 1978, or any combination of service credit under those	724
sections, the per cent of final average salary shown in the	725
following schedule for each corresponding year or fraction of a	726
year of service credit under those sections that is in excess of	727
thirty years:	728

For purposes of this schedule, years of service credit shall be	738
rounded to the nearest one-hundredth of a year.	739

(b) For purposes of division (B)(2)(a) of this section, a	740
percentage of final average salary in excess of two and two-tenths	741
per cent shall be applied to service credit under section 3307.57	742
of the Revised Code only if the service credit was established	743
under section 145.30, 145.301, 145.302, 145.47, 145.483, 3309.02,	744
3309.021, 3309.022, or 3309.47, or of the Revised Code or restored	745
under section 145.31 or 3309.26 of the Revised Code.	746

(C) The annual single lifetime benefit of a member	747
determined under division (B) of this section shall be adjusted by	748
the greater per cent shown in the following schedule opposite the	749
member's attained age or Ohio service credit.	750

Members shall vest the right to a benefit in accordance with	764
the following schedule, based on the member's attained age by	765
September 1, 1976:	766

The annual single lifetime benefit determined under division	775
(B) of this section shall not exceed the lesser of one hundred per	776
cent of the final average salary or the limit established by	777
section 415 of the "Internal Revenue Code of 1986," 100 Stat.	778
2085, 26 U.S.C.A. 415, as amended.	779

(D) The annual single lifetime benefit of a member shall not	780
exceed the lesser of the sum of the following amounts or the limit	781
established by section 415 of the "Internal Revenue Code of 1986,"	782
100 Stat. 2085, 26 U.S.C.A. 415, as amended:	783

(1) An annuity with a reserve equal to the member's	784
accumulated contributions;	785

(2) A pension equal to the amount in division (D)(1) of this	786
section;	787

(3) An additional pension of forty dollars annually	788
multiplied by the number of years of prior and military service	789
credit, except years of credit purchased under section 3307.751 or	790
3307.752 of the Revised Code;	791

(4) An additional basic annual pension of one hundred eighty	792
dollars, provided the member had ten or more years of Ohio service	793
credit as of October 1, 1956, except that the additional basic	794
annual pension shall not exceed the sum of the annual benefits	795
provided by divisions (D)(1), (2), and (3) of this section.	796

(E) Benefits determined under this section shall be paid as	797
provided in section 3307.60 of the Revised Code.	798

Sec. 3307.60.  (A) Upon application for retirement as	799
provided in section 3307.58 or 3307.59 of the Revised Code, the	800
retirant may elect a plan of payment under this division or, on	801
and after the date specified in division (B) of this section, a	802
plan of payment under that division. Under this division, the	803
retirant may elect to receive a single lifetime benefit, or may	804
elect to receive the actuarial equivalent of the retirant's	805
benefit in a lesser amount, payable for life, and continuing after	806
death to a beneficiary under one of the following optional plans:	807

(1) Option 1. The retirant's lesser benefit shall be paid	808
for life to the sole beneficiary named at retirement.	809

(2) Option 2. Some other portion of the retirant's benefit	810
shall be paid for life to the sole beneficiary named at	811
retirement. The beneficiary's monthly amount shall not exceed the	812
monthly amount payable to the retirant during the retirant's	813
lifetime.	814

(3) Option 3. The retirant's lesser benefit established as	815
provided under option 1 or option 2 shall be paid for life to the	816
sole beneficiary named at retirement, except that in the event of	817
the death of the sole beneficiary or termination of a marital	818
relationship between the retirant and the sole beneficiary the	819
retirant may elect to return to a single lifetime benefit	820
equivalent as determined by the state teachers retirement board,	821
if, in the case of termination of a marital relationship, the	822
election is made with the written consent of the beneficiary or	823
pursuant to an order of the court with jurisdiction over	824
termination of the marital relationship.	825

(4) Option 4. Upon the retirant's death before the	826
expiration of a certain period from the retirement date and	827
elected by the retirant, and approved by the board, the retirant's	828
benefit shall be continued for the remainder of such period to the	829
beneficiary. Monthly benefits shall not be paid to joint	830
beneficiaries, but they may receive the present value of any	831
remaining payments in a lump sum settlement. If all beneficiaries	832
die before the expiration of the certain period, the present value	833
of all payments yet remaining in such period shall be paid to the	834
estate of the beneficiary last receiving.	835

(5) Option 5. A plan of payment established by the state	836
teachers retirement board combining any of the features of options	837
1, 2, and 4.	838

(B) Beginning on a date selected by the state teachers	839
retirement board, which shall be not later than July 1, 2004, a	840
retirant may elect, in lieu of a plan of payment under division	841
(A) of this section, a plan consisting of both of the following:	842

(1) A lump sum in an amount the member designates that	843
constitutes a portion of the member's single lifetime benefit;	844

(2) Either of the following:

845

(a) The remainder of the retirant's single lifetime benefit;

846

(b) The actuarial equivalent of the remainder of the	847
retirant's benefit in a lesser amount, payable for life, and	848
continuing after death to a beneficiary under one of the options	849
described in divisions (A)(1) to (5) of this section.	850

In the event of the death of the sole beneficiary or	851
termination of a marital relationship between the retirant and the	852
sole beneficiary, the retirant may elect to receive the actuarial	853
equivalent of the remainder of the retirant's single lifetime	854
benefit except that, in the case of termination of a marital	855
relationship, the election may be made only with the written	856
consent of the beneficiary or pursuant to an order of the court	857
with jurisdiction over termination of the marital relationship.	858

The amount designated by the member under division (B)(1) of	859
this section shall be not less than six times the monthly amount	860
that would be payable to the member as a single lifetime benefit	861
and not more than thirty-six times that amount.	862

(C) Until the first payment is made to a former member under	863
section 3307.58 or 3307.59 of the Revised Code, the former member	864
may change the selection of a plan of payment. If death occurs	865
prior to an election of a plan of paymentbefore the first payment	866
is made to a former member under section 3307.58 or 3307.59 of the	867
Revised Code, option 1 as provided for in division (A)(1) of this	868
section shall be paid to the spouse or other sole dependent	869
beneficiary.	870

Beginning on a date selected by the board, which shall be not	871
later than July 1, 2004, the spouse or sole beneficiary of a	872
former member whose death occurred prior to the receipt of the	873
first payment under section 3307.58 or 3307.59 of the Revised Code	874
may elect, in lieu of option 1, a plan of payment consisting of	875
both of the following:	876

(1) A lump sum in an amount the spouse or other sole	877
dependent beneficiary designates that constitutes a portion of the	878
retirant's single life annuity;	879

(2) The actuarial equivalent of the remainder of the	880
retirant's single life annuity paid in a lesser amount for life to	881
the spouse or other sole dependent beneficiary.	882

The amount designated by the spouse or other sole dependent	883
beneficiary under division (C)(1) of this section shall be not	884
less than six times the monthly amount that would be payable as	885
the retirant's single life annuity and not more than thirty-six	886
times that amount.	887

(C)(D) If the total benefit paid under this section is less	888
than the balance in the teachers' savings fund, the difference	889
shall be paid to the beneficiary provided under division (D) of	890
section 3307.562 of the Revised Code.	891

(D)(E) In the case of a retirant who elected an optional	892
plan prior to September 15, 1989:	893

(1) The death of the spouse or other designated beneficiary	894
following retirement shall, at the election of the retirant,	895
cancel any optional plan selected at retirement to provide	896
continuing lifetime benefits to the spouse or other beneficiary	897
and return the retirant to a single lifetime benefit equivalent as	898
determined by the board.	899

(2) A divorce, annulment, or marriage dissolution shall, at	900
the election of the retirant, cancel any optional plan selected at	901
retirement to provide continuing lifetime benefits to the spouse	902
as designated beneficiary and return the retirant to a single	903
lifetime benefit equivalent as determined by the board if the	904
election is made with the written consent of the beneficiary or	905
pursuant to an order of a court of common pleas or the court of	906
another state with jurisdiction over the termination of the	907
marriage.	908

(E)(F) Following marriage or remarriage, a retirant may	909
elect a new optional plan of payment based on the actuarial	910
equivalent of the retirant's single lifetime benefit, as	911
determined by the board, except that if the retirant is receiving	912
a retirement allowance under an optional plan that provides for	913
continuation of benefits after death to a former spouse, the	914
retirant may elect a new optional plan of payment only with the	915
written consent of the former spouse or pursuant to an order of	916
the court with jurisdiction over the termination of the marriage.	917
Such plan shall become effective the first of the month following	918
an application on a form approved by the board.	919

(F)(G)(1) Unless one of the following occurs, an application	920
for service retirement made pursuant to section 3307.58 or 3307.59	921
of the Revised Code by a married person shall be considered an	922
election of a benefit under option 2 as provided for in division	923
(A)(2) of this section under which one-half of the lesser benefit	924
payable during the life of the retirant will be paid after death	925
to the retirant's spouse for life as sole beneficiary:	926

(a) The retirant selects an optional plan under division (A)	927
of this section providing for payment after death to the	928
retirant's spouse for life as sole beneficiary of more than	929
one-half of the lesser benefit payable during the life of the	930
retirant.	931

(b) The retirant submits to the retirement board a written	932
statement signed by the spouse attesting that the spouse consents	933
to the retirant's election to receive a single lifetime annuity or	934
a payment under an optional benefit plan under which after the	935
death of the retirant the surviving spouse will receive less than	936
one-half of the lesser benefit payable during the life of the	937
retirant.	938

(2) An application for retirement shall include an	939
explanation of all of the following:	940

(a) That, if the member is married, unless the spouse	941
consents to another plan of payment, the member's retirement	942
allowance will be paid under "option 2" as provided for in	943
division (A)(2) of this section and consist of the actuarial	944
equivalent of the member's retirement allowance in a lesser amount	945
payable for life and one-half of the lesser allowance continuing	946
after death to the surviving spouse for the life of the spouse;	947

(b) A description of the alternative plans of payment	948
available with the consent of the spouse;	949

(c) That the spouse may consent to another plan of payment	950
and the procedure for giving consent;	951

(d) That consent is irrevocable once notice of consent is	952
filed with the board.	953

Consent shall be valid only if it is signed, in writing, and	954
witnessed by a notary public.	955

(3) If the retirant does not select an optional plan of	956
payment as described in division (F)(G)(1)(a) of this section and	957
the board does not receive the written statement provided for in	958
division (F)(G)(1)(b) of this section, it shall determine and pay	959
the retirement allowance in accordance with this division, except	960
that the board may provide by rule for waiver by the board of the	961
statement and payment of the benefits other than in accordance	962
with this division or payment under section 3307.56 of the Revised	963
Code if the retirant is unable to obtain the statement due to	964
absence or incapacity of the spouse or other cause specified by	965
the board.	966

(G)(H) For the purpose of determining actuarial equivalence	967
under this section, on the advice of an actuary employed by the	968
board, the board shall adopt mortality tables that may take into	969
consideration the membership experience of the state teachers	970
retirement system and may also include the membership experience	971
of the public employees retirement system and the school employees	972
retirement system.	973

Sec. 3307.761.  (A) As used in this section and section	974
3307.765 of the Revised Code:	975

(1) "Uniform retirement system" or "uniform system" means	976
the Ohio police and fire pension fund or state highway patrol	977
retirement system.	978

(2) "Military service credit" means credit purchased or	979
obtained under this chapter or Chapter 742. or 5505. of the	980
Revised Code for service in the armed forces of the United States.	981

(B) A member of the state teachers retirement system	982
participating in the plan described in sections 3307.50 to 3307.79	983
of the Revised Code who has contributions on deposit with a	984
uniform retirement system shall, in computing years of total	985
service, be given full credit for service credit earned under	986
Chapter 742. or 5505. of the Revised Code or for military service	987
credit if a transfer to the state teachers retirement system is	988
made under this division. At the request of the member, the	989
uniform system shall transfer to the state teachers retirement	990
system, for each year of service, the sum of the following:	991

(1) An amount equal to the member's accumulated	992
contributions to the uniform system and any payments by the	993
member for military service credit;	994

(2) An amount equal to the lesser of the employer's	995
contributions to the uniform system or the amount that would have	996
been contributed by the employer for the service had the member	997
been a member of the state teachers retirement system at the time	998
the credit was earned;	999

(3) Interest, determined as provided in division (F) of this	1000
section, on the amounts specified in divisions (B)(1) and (2) of	1001
this section from the last day of the year for which the service	1002
credit in the uniform system was earned or in which payment was	1003
made for military service credit was purchased or obtained to the	1004
date the transfer is made.	1005

(C) A member participating in the plan described in sections	1006
3307.50 to 3307.79 of the Revised Code who has at least eighteen	1007
monthsone and one-half years of contributing service with the	1008
state teachers retirement system, is a former member of a uniform	1009
retirement system, and has received a refund of contributions to	1010
that uniform system shall, in computing years of total service,	1011
be given full credit for service credit earned under Chapter 742.	1012
or 5505. of the Revised Code or for military service credit if,	1013
for each year of service, the state teachers retirement system	1014
receives the sum of the following:	1015

(1) An amount, which shall be paid by the member, equal to	1016
the amount refunded by the uniform system to the member for that	1017
year for accumulated contributions and payments for military	1018
service credit, with interest at a rate established by the state	1019
teachers retirement board on that amount from the date of the	1020
refund to the date of the payment;	1021

(2) Interest, which shall be transferred by the uniform	1022
system, on the amount refunded to the member that is attributable	1023
to the year of service from the last day of the year for which the	1024
service credit was earned or in which payment was made for	1025
military service credit to the date the refund was made;	1026

(3) An amount, which shall be transferred by the uniform	1027
system, equal to the lesser of the employer's contributions to	1028
the uniform system or the amount that would have been	1029
contributed by the employer for the service had the member been a	1030
member of the state teachers retirement system at the time the	1031
credit was earned, with interest on that amount from the last day	1032
of the year for which the service credit was earned or in which	1033
payment was made for military service to the date of the	1034
transfer.	1035

On receipt of payment from the member, the state teachers	1036
retirement system shall notify the uniform system, which, on	1037
receipt of the notice, shall make the transfer required by this	1038
division. Interest shall be determined as provided in division	1039
(F) of this section.	1040

A member may choose to purchase only part of the credit the	1041
member is eligible to purchase under this division in any one	1042
payment, subject to rules of the state teachers retirement board.	1043

(D) A member is ineligible to obtain credit under this	1044
section for service that is used in the calculation of any	1045
retirement benefit currently being paid or payable in the future	1046
under any other retirement program or for service credit that may	1047
be transferred under section 3307.765 of the Revised Code.	1048

(E) If a member of the state teachers retirement system who	1049
is not a current contributor elects to obtain credit under section	1050
742.21 or 5505.40 of the Revised Code for service for which the	1051
member contributed to the system or purchased for military	1052
service credit, the system shall transfer to the uniform	1053
retirement system, as applicable, the amount specified in division	1054
(D) of section 742.21 or division (B)(2) of section 5505.40 of	1055
the Revised Code.	1056

(F) Interest charged under this section shall be calculated	1057
separately for each year of service credit. Unless otherwise	1058
specified in this section it shall be calculated at the lesser of	1059
the actuarial assumption rate for that year of the state teachers	1060
retirement system or of the uniform retirement system in which	1061
the credit was earned. The interest shall be compounded annually.	1062

(G) The state teachers retirement board shall credit to a	1063
member's account in the teachers' savings fund the amounts	1064
described in divisions (B)(1) and (C)(1) of this section, except	1065
that the interest paid by the member under division (C)(1) of this	1066
section shall be credited to the employers' trust fund. The board	1067
shall credit to the employers' trust fund the amounts described in	1068
divisions (B)(2) and (3) and (C)(2) and (3) of this section.	1069

(H) At the request of the state teachers retirement system,	1070
the Ohio police and fire pension fund or state highway patrol	1071
retirement system shall certify to the state teachers retirement	1072
system a copy of the records of the service and contributions of a	1073
state teachers retirement system member who seeks service credit	1074
under this section.	1075

Sec. 3307.763.  (A) If the conditions described in division	1076
(B) of section 3307.762 of the Revised Code are met, a member of	1077
the state teachers retirement system who is not receiving a	1078
pension or benefit from the state teachers retirement system is	1079
eligible to obtain credit for service as a member of the	1080
Cincinnati retirement system under this section.	1081

(B) A member of the state teachers retirement system	1082
participating in the plan described in sections 3307.50 to 3307.79	1083
of the Revised Code who has contributions on deposit with, but is	1084
no longer contributing to, the Cincinnati retirement system shall,	1085
in computing years of service credit, be given credit for service	1086
credit earned under the Cincinnati retirement system or purchased	1087
or obtained as military service credit if, for each year of	1088
service, the Cincinnati retirement system transfers to the state	1089
teachers retirement system the sum of the following:	1090

(1) The amount contributed by the member, or, in the case of	1091
military service credit, paid by the member, that is attributable	1092
to the year of service;	1093

(2) An amount equal to the lesser of the employer's	1094
contributions to the Cincinnati retirement system or the amount	1095
that would have been contributed by the employer for the service	1096
had the member been a member of the state teachers retirement	1097
system at the time the credit was earned;	1098

(3) Interest on the amounts specified in divisions (B)(1)	1099
and (2) of this section from the last day of the year for which	1100
service credit was earned or in which payment was made for	1101
military service credit to the date the transfer is made.	1102

(C) A member of the state teachers retirement system with at	1103
least eighteen monthsone and one-half years of contributing	1104
service credit with the state teachers retirement system who has	1105
received a refund of the member's contributions to the Cincinnati	1106
retirement system shall, in computing years of service, be given	1107
credit for service credit earned under the Cincinnati retirement	1108
system or purchased or obtained as military service credit if, for	1109
each year of service, the state teachers retirement system	1110
receives the sum of the following:	1111

(1) An amount, paid by the member, equal to the sum of the	1112
following:	1113

(a) The amount refunded by the Cincinnati retirement system	1114
to the member for that year for contributions and payments for	1115
military service credit, with interest at a rate established by	1116
the state teachers retirement board on that amount from the date	1117
of the refund to the date of payment;	1118

(b) The amount of interest, if any, the member received when	1119
the refund was made that is attributable to the year of service.	1120

(2) An amount, transferred by the Cincinnati retirement	1121
system to the state teachers retirement system, equal to the sum	1122
of the following:	1123

(a) Interest on the amount refunded to the member that is	1124
attributable to the year of service from the last day of the year	1125
for which the service credit was earned or in which payment was	1126
made for military service credit to the date the refund was made;	1127

(b) An amount equal to the lesser of the employer's	1128
contributions to the Cincinnati retirement system or the amount	1129
that would have been contributed by the employer for the service	1130
had the member been a member of the state teachers retirement	1131
system at the time the credit was earned, with interest on that	1132
amount from the last day of the year for which the service credit	1133
was earned to the date of the transfer.	1134

(D) The amount transferred under division (C)(2)(a) of this	1135
section shall not include any amount of interest the Cincinnati	1136
retirement system paid to the person when it made the refund.	1137

(E) On receipt of payment from the member under division	1138
(C)(1) of this section, the state teachers retirement system shall	1139
notify the Cincinnati retirement system. On receipt of the	1140
notice, the Cincinnati retirement system shall transfer the amount	1141
described in division (C)(2) of this section.	1142

(F) Interest charged under this section shall be calculated	1143
separately for each year of service credit. Unless otherwise	1144
specified in this section, it shall be calculated at the lesser of	1145
the actuarial assumption rate for that year of the state teachers	1146
retirement system or the Cincinnati retirement system. The	1147
interest shall be compounded annually.	1148

(G) At the request of the state teachers retirement system,	1149
the Cincinnati retirement system shall certify to the state	1150
teachers retirement system a copy of the records of the service	1151
and contributions of a state teachers retirement system member who	1152
seeks service credit under this section.	1153

(H) A member may choose to purchase only part of the credit	1154
the member is eligible to purchase under division (C) of this	1155
section in any one payment, subject to rules of the state teachers	1156
retirement board.	1157

(I) A member is ineligible to obtain credit under this	1158
section for service that is used in the calculation of any	1159
retirement benefit currently being paid or payable in the future.	1160

(J) The state teachers retirement board shall credit to the	1161
member's account in the teachers' savings fund the amounts	1162
described in divisions (B)(1) and (C)(1)(a) of this section,	1163
except that interest paid by the member under division (C)(1)(a)	1164
of this section shall be credited to the employers' trust fund.	1165
The board shall credit to the employers' trust fund the amounts	1166
described in divisions (B)(2), (B)(3), (C)(1)(b), and (C)(2) of	1167
this section.	1168

Sec. 3307.764.  (A) If the conditions described in division	1169
(B) of section 3307.762 of the Revised Code are met and a person	1170
who is a member or former member of the state teachers retirement	1171
system through participation in the plan described in sections	1172
3307.50 to 3307.79 of the Revised Code, but is not a current	1173
contributor and who is not receiving a pension or benefit from the	1174
state teachers retirement system elects to receive credit under	1175
the Cincinnati retirement system for service for which the person	1176
contributed to the state teachers retirement system or purchased	1177
or obtained as military service credit, the state teachers	1178
retirement system shall transfer the amounts specified in division	1179
(B) or (C) of this section to the Cincinnati retirement system.	1180

(B) If the person has contributions on deposit with the	1181
state teachers retirement system, the retirement system shall, for	1182
each year of service credit, transfer to the Cincinnati retirement	1183
system the sum of the following:	1184

(1) An amount equal to the person's contributions to the	1185
state teachers retirement system and payments made by the member	1186
for military service credit;	1187

(2) An amount equal to the lesser of the employer's	1188
contributions to the state teachers retirement system or the	1189
amount that would have been contributed by the employer for the	1190
service had the person been a member of the Cincinnati retirement	1191
system at the time the credit was earned;	1192

(3) Interest on the amounts specified in divisions (B)(1)	1193
and (2) of this section for the period from the last day of the	1194
year for which the service credit was earned or in which payment	1195
was made for military service credit to the date the transfer was	1196
made.	1197

(C)(1) If the person has received a refund of accumulated	1198
contributions to the state teachers retirement system, the state	1199
teachers retirement system shall, for each year of service credit,	1200
transfer to the Cincinnati retirement system the sum of the	1201
following:	1202

(a) Interest on the amount refunded to the former member	1203
that is attributable to the year of service from the last day of	1204
the year for which the service credit was earned or in which	1205
payment was made for military service credit to the date the	1206
refund was made;	1207

(b) An amount equal to the lesser of the employer's	1208
contributions to the state teachers retirement system or the	1209
amount that would have been contributed by the employer for the	1210
service had the person been a member of the Cincinnati retirement	1211
system at the time the credit was earned, with interest on that	1212
amount from the last day of the year for which the service credit	1213
was earned to the date of the transfer.	1214

(2) The amount transferred under division (C)(1) of this	1215
section shall not include any amount added to the member's	1216
accumulated contributions under section 3307.563 of the Revised	1217
Code and paid under section 3307.56 or 3307.562 of the Revised	1218
Code.	1219

(3) On receipt of notice from the Cincinnati retirement	1220
system that the Cincinnati retirement system has received payment	1221
from a person described in division (C)(1) of this section, the	1222
state teachers retirement system shall transfer the amount	1223
described in that division.	1224

(D) Interest charged under this section shall be calculated	1225
separately for each year of service credit. Unless otherwise	1226
specified in this section, it shall be calculated at the lesser of	1227
the actuarial assumption rate for that year of the state teachers	1228
retirement system or the Cincinnati retirement system. The	1229
interest shall be compounded annually.	1230

(E) The transfer of any amount under this section cancels an	1231
equivalent amount of service credit.	1232

(F) At the request of the Cincinnati retirement system, the	1233
state teachers retirement system shall certify to the Cincinnati	1234
retirement system a copy of the records of the service and	1235
contributions of a member or former member of the state teachers	1236
retirement system who elects to receive service credit under the	1237
Cincinnati retirement system.	1238

Sec. 3307.87.  (A)(1) If a member participating in a plan	1239
established under section 3307.81 of the Revised Code is married	1240
at the time any benefits under the plan commence, benefits shall	1241
be paid in accordance with division (A)(2) of this section, unless	1242
the spouse has consented under division (C) of this section to a	1243
different form of payment.	1244

(2) The benefits described in division (A)(1) of this	1245
section shall be paid in the form of an annuity, which shall	1246
consist of the actuarial equivalent of the member's benefits, in	1247
an amount that is payable for the life of the member and one-half	1248
of the amount continuing after the member's death to the spouse	1249
for the life of the spouse.	1250

(B) If a member participating in a plan established under	1251
section 3307.81 of the Revised Code is married at the time of the	1252
member's death, any benefits that are payable to the member shall	1253
be paid to the member's spouse, unless the spouse has consented	1254
under division (C) of this section to the designation of a	1255
different beneficiary.	1256

(C) A plan established under section 3307.81 of the Revised	1257
Code shall include requirements for consent under this section	1258
that are the same as the requirements specified in division (a)(2)	1259
of section 417 of the Internal Revenue Code, 26 U.S.C.A.	1260
417(a)(2), as amended.Consent is valid only if it is evidenced by	1261
a signed statement that is witnessed by a notary public. Each	1262
plan may waive the requirement of consent if the spouse is	1263
incapacitated or cannot be located or for any other reason	1264
specified by the plan or in the regulations adopted under that	1265
sectionrules adopted by the state teachers retirement board.	1266

Consent or waiver is effective only with regard to the spouse	1267
who is the subject of the consent or waiver.	1268

Sec. 3309.45.  Except as provided in division (C)(1) of this	1269
section, in lieu of accepting the payment of the accumulated	1270
account of a member who dies before service retirement, the	1271
beneficiary, as determined in section 3309.44 of the Revised Code,	1272
may elect to forfeit the accumulated account and to substitute	1273
certain other benefits either under division (A) or (B) of this	1274
section.	1275

(A)(1) If a deceased member was eligible for a service	1276
retirement allowance as provided in section 3309.36, 3309.38, or	1277
3309.381 of the Revised Code, a surviving spouse or other sole	1278
dependent beneficiary may elect to receive a monthly benefit	1279
computed as the joint-survivor allowance designated as "plan D" in	1280
section 3309.46 of the Revised Code, which the member would have	1281
received had the member retired on the last day of the month of	1282
death and had the member at that time selected such joint-survivor	1283
plan. Payment shall begin with the month subsequent to the	1284
member's death.	1285

(2) Beginning on a date selected by the school employees	1286
retirement board, which shall be not later than July 1, 2004, a	1287
surviving spouse or other sole dependent beneficiary may elect, in	1288
lieu of a monthly payment under division (A)(1) of this section, a	1289
plan of payment consisting of both of the following:	1290

(a) A lump sum in an amount the surviving spouse or other	1291
sole dependent beneficiary designates that constitutes a portion	1292
of the allowance that would be payable under division (A)(1) of	1293
this section;	1294

(b) The remainder of that allowance in monthly payments.

1295

The total amount paid as a lump sum and a monthly benefit	1296
shall be the actuarial equivalent of the amount that would have	1297
been paid had the lump sum not been selected.	1298

The lump sum amount designated by the surviving spouse or	1299
other sole dependent beneficiary under division (A)(2)(a) of this	1300
section shall be not less than six times the monthly amount that	1301
would be payable to the surviving spouse or other sole dependent	1302
beneficiary under division (A)(1) of this section and not more	1303
than thirty-six times that amount.	1304

(B) If the deceased member had completed at least one and	1305
one-half years of credit for Ohio service, with at least	1306
one-quarter year of Ohio contributing service credit within the	1307
two and one-half years prior to the date of death, or was	1308
receiving at the time of death a disability benefit as provided in	1309
section 3309.40 or 3309.401 of the Revised Code, qualified	1310
survivors who elect to receive monthly benefits shall receive the	1311
greater of the benefits provided in division (B)(1)(a) or (b) as	1312
allocated in accordance with division (B)(5) of this section.	1313

(2) Benefits shall begin as qualified survivors meet	1335
eligibility requirements as follows:	1336

(a) A qualified spouse is the surviving spouse of the	1337
deceased member who is age sixty-two, or regardless of age if the	1338
deceased member had ten or more years of Ohio service credit, or	1339
regardless of age if caring for a surviving child, or regardless	1340
of age if adjudged physically or mentally incompetent.	1341

(b) A qualified child is any child of the deceased member	1342
who has never been married and to whom one of the following	1343
applies:	1344

(i) Is under age eighteen, or under age twenty-two if the	1345
child is attending an institution of learning or training pursuant	1346
to a program designed to complete in each school year the	1347
equivalent of at least two-thirds of the full-time curriculum	1348
requirements of such institution and as further determined by	1349
board policy;	1350

(ii) Regardless of age, is adjudged physically or mentally	1351
incompetent if the incompetence existed prior to the member's	1352
death and prior to the child attaining age eighteen, or age	1353
twenty-two if attending an institution described in division	1354
(B)(2)(b)(i) of this section.	1355

(c) A qualified parent is a dependent parent aged sixty-five	1356
or older.	1357

(3) "Physically or mentally incompetent" as used in this	1358
section may be determined by a court of jurisdiction, or by a	1359
physician appointed by the retirement board. Incapability of	1360
earning a living because of a physically or mentally disabling	1361
condition shall meet the qualifications of this division.	1362

(4) Benefits to a qualified survivor shall terminate upon a	1363
first marriage, abandonment, adoption, or during active military	1364
service. Benefits to a deceased member's surviving spouse that	1365
were terminated under a former version of this section that	1366
required termination due to remarriage and were not resumed prior	1367
to September 16, 1998, shall resume on the first day of the month	1368
immediately following receipt by the board of an application on a	1369
form provided by the board.	1370

Upon the death of any subsequent spouse who was a member of	1371
the public employees retirement system, state teachers retirement	1372
system, or school employees retirement system, the surviving	1373
spouse of such member may elect to continue receiving benefits	1374
under this division, or to receive survivor's benefits, based upon	1375
the subsequent spouse's membership in one or more of the systems,	1376
for which such surviving spouse is eligible under this section or	1377
section 145.45 or 3307.66 of the Revised Code. If the surviving	1378
spouse elects to continue receiving benefits under this division,	1379
such election shall not preclude the payment of benefits under	1380
this division to any other qualified survivor.	1381

Benefits shall begin or resume on the first day of the month	1382
following the attainment of eligibility and shall terminate on the	1383
first day of the month following loss of eligibility.	1384

(5)(a) If a benefit is payable under division (B)(1)(a) of	1385
this section, benefits to a qualified spouse shall be paid in the	1386
amount determined for the first qualifying survivor in division	1387
(B)(1)(a) of this section, but shall not be less than one hundred	1388
six dollars per month if the deceased member had ten or more years	1389
of Ohio service credit. All other qualifying survivors shall	1390
share equally in the benefit or remaining portion thereof.	1391

(b) All qualifying survivors shall share equally in a	1392
benefit payable under division (B)(1)(b) of this section, except	1393
that if there is a surviving spouse, the surviving spouse shall	1394
receive no less than the greater of the amount determined for the	1395
first qualifying survivor in division (B)(1)(a) of this section or	1396
one hundred six dollars per month.	1397

(6) The beneficiary of a member who is also a member of the	1398
public employees retirement system, or of the state teachers	1399
retirement system, must forfeit the member's accumulated	1400
contributions in those systems, if the beneficiary takes a	1401
survivor benefit. Such benefit shall be exclusively governed by	1402
section 3309.35 of the Revised Code.	1403

(C)(1) Regardless of whether the member is survived by a	1404
spouse or designated beneficiary, if the school employees	1405
retirement system receives notice that a deceased member described	1406
in division (A) or (B) of this section has one or more qualified	1407
children, all persons who are qualified survivors under Division	1408
division (B) of this section shall receive monthly benefits as	1409
provided in division (B) of this section.	1410

If, after determining the monthly benefits to be paid under	1411
division (B) of this section, the system receives notice that	1412
there is a qualified survivor who was not considered when the	1413
determination was made, the system shall, notwithstanding section	1414
3309.661 of the Revised Code, recalculate the monthly benefits	1415
with that qualified survivor included, even if the benefits to	1416
qualified survivors already receiving benefits are reduced as a	1417
result. The benefits shall be calculated as if the qualified	1418
survivor who is the subject of the notice became eligible on the	1419
date the notice was received and shall be paid to qualified	1420
survivors effective on the first day of the first month following	1421
the system's receipt of the notice.	1422

If the retirement system did not receive notice that a	1423
deceased member has one or more qualified children prior to making	1424
payment under section 3309.44 of the Revised Code to a beneficiary	1425
as determined by the retirement system, the payment is a full	1426
discharge and release of the system from any future claims under	1427
this section or section 3309.44 of the Revised Code.	1428

(2) If benefits under division (C)(1) of this section to all	1429
persons, or to all persons other than a surviving spouse or other	1430
sole beneficiary, terminate, there are no children under the age	1431
of twenty-two years, and the surviving spouse or beneficiary	1432
qualifies for benefits under division (A) of this section, the	1433
surviving spouse or beneficiary may elect to receive benefits	1434
under division (A) of this section. Benefits shall be effective	1435
on the first day of the month following receipt by the board of an	1436
application for benefits under division (A) of this section.	1437

(D) The final average salary used in the calculation of a	1438
benefit payable pursuant to division (A) or (B) of this section to	1439
a survivor or beneficiary of a disability benefit recipient shall	1440
be adjusted for each year between the disability benefit's	1441
effective date and the recipient's date of death by the lesser of	1442
three per cent or the actual average percentage increase in the	1443
consumer price index prepared by the United States bureau of labor	1444
statistics (U.S. City Average for Urban Wage Earners and Clerical	1445
Workers: "All Items 1982-84=100").	1446

(E) If the survivor benefits due and paid under this section	1447
are in a total amount less than the member's accumulated account	1448
that was transferred from the employees' savings fund, the state	1449
teachers retirement fund, and the public employees retirement fund	1450
to the survivors' benefit fund, then the difference between the	1451
total amount of the benefits paid shall be paid to the beneficiary	1452
under section 3309.44 of the Revised Code.	1453

Sec. 3309.46.  (A) The retirement allowance calculated under	1454
section 3309.36, 3309.38, or 3309.381 of the Revised Code shall be	1455
paid as provided in this section. If the member is eligible to	1456
elect a plan of payment under this section, the election shall be	1457
made on the application for retirement. A plan of payment elected	1458
under this section shall be effective only if it is certified by	1459
the actuary engaged by the school employees retirement board to be	1460
the actuarial equivalent of the member's retirement allowance and	1461
is approved by the retirement board.	1462

(B)(1) Unless the member is eligible to elect another plan	1463
of payment, a member who retires under section 3309.36, 3309.38,	1464
or 3309.381 of the Revised Code shall receive a retirement	1465
allowance under "plan A," which shall consist of the actuarial	1466
equivalent of the member's retirement allowance determined under	1467
section 3309.36, 3309.38, or 3309.381 of the Revised Code in a	1468
lesser amount payable for life and one-half of such allowance	1469
continuing after death to the member's surviving spouse for the	1470
life of the spouse.	1471

A member may elect to receive a retirement allowance under a	1472
plan of payment other than "plan A" if the member is not married	1473
or either the member's spouse consents in writing to the member's	1474
election to a plan of payment other than "plan A" or the board	1475
waives the requirement that the spouse consent.	1476

An application for retirement shall include an explanation of	1477
all of the following:	1478

(a) That, if the member is married, unless the spouse	1479
consents to another plan of payment, the member's retirement	1480
allowance will be paid under "plan A," which consists of the	1481
actuarial equivalent of the member's retirement allowance in a	1482
lesser amount payable for life and one-half of the allowance	1483
continuing after death to the surviving spouse for the life of the	1484
spouse;	1485

(b) A description of the alternative plans of payment,	1486
including all plans described in divisions (B)(2) and (3) of this	1487
section, available with the consent of the spouse;	1488

(c) That the spouse may consent to another plan of payment	1489
and the procedure for giving consent;	1490

(d) That consent is irrevocable once notice of consent is	1491
filed with the board.	1492

Consent shall be valid only if it is in writing, signed by	1493
the spouse, and witnessed by an employee of the school employees	1494
retirement system or a notary public. The board may waive the	1495
requirement of consent if the spouse is incapacitated or cannot be	1496
located or for any other reason specified by the board. Consent	1497
or waiver is effective only with regard to the spouse who is the	1498
subject of the consent or waiver.	1499

(2) A member eligible to elect to receive a retirement	1500
allowance under a plan of payment other than "plan A" shall	1501
receive the retirement allowance under the plan described in	1502
division (B)(3) of this section or one of the following plans	1503
elected at the time the member makes application for retirement:	1504

(a) "Plan B," which shall consist of an allowance determined	1505
under section 3309.36, 3309.38, or 3309.381 of the Revised Code;	1506

(b) "Plan C," which shall consist of the actuarial	1507
equivalent of the member's retirement allowance determined under	1508
section 3309.36, 3309.38, or 3309.381 of the Revised Code in a	1509
lesser amount payable for life and one-half or some other portion	1510
of the allowance continuing after death to the member's sole	1511
surviving beneficiary designated at the time of the member's	1512
retirement, provided that the amount payable to the beneficiary	1513
does not exceed the amount payable to the member;	1514

(c) "Plan D," which shall consist of the actuarial	1515
equivalent of the member's retirement allowance determined under	1516
section 3309.36, 3309.38, or 3309.381 of the Revised Code in a	1517
lesser amount payable for life and continuing after death to a	1518
surviving designated beneficiary designated at the time of the	1519
member's retirement;	1520

(d) "Plan E," which shall consist of the actuarial	1521
equivalent of the member's retirement allowance determined under	1522
section 3309.36, 3309.38, or 3309.381 of the Revised Code in a	1523
lesser amount payable for a certain period from the member's	1524
retirement date as elected by the member and approved by the	1525
retirement board, and on the member's death before the expiration	1526
of that certain period, the member's lesser retirement allowance	1527
continued for the remainder of that period to, and in such order,	1528
the beneficiaries as the member has nominated by written	1529
designation and filed with the retirement board.	1530

Monthly benefits shall not be paid to joint beneficiaries,	1531
but they may receive the present value of any remaining payments	1532
in a lump sum settlement. If all beneficiaries die before the	1533
expiration of the certain period, the present value of all such	1534
payments yet remaining in such period shall be paid to the estate	1535
of the beneficiary last receiving.	1536

(3)(a) Beginning on a date selected by the board, which shall	1537
be not later than July 1, 2004, a member may elect, in lieu of a	1538
plan of payment under division (B)(1) or (2) of this section, a	1539
plan consisting of both a lump sum in an amount the member	1540
designates that constitutes a portion of the retirement allowance	1541
payable under a plan described in division (B)(1) or (2) of this	1542
section and the remainder of the allowance payable under that plan	1543
in monthly payments.	1544

The total amount paid as a lump sum and a monthly benefit	1545
shall be the actuarial equivalent of the amount that would have	1546
been paid had the lump sum not been selected.	1547

(b) The lump sum amount designated by the member shall be not	1548
less than six times the monthly amount that would be payable to	1549
the member under the plan of payment elected under this section	1550
had the lump sum not been elected and not more than thirty-six	1551
times that amount.	1552

(4) An election under division (B)(2) or (3) of this section	1553
shall be made at the time the member makes application for	1554
retirement.	1555

(5) A member eligible to elect to receive a retirement	1556
allowance under a plan of payment other than "plan A" because the	1557
member is unmarried who fails to make an election on retirement	1558
shall receive a retirement allowance under "plan B."	1559

(C) Until the first payment of any retirement allowance is	1560
made, as provided in sections 3309.36, 3309.38, or 3309.381 of the	1561
Revised Code, a member may change the member's election of a	1562
payment plan if the election is made in accordance with and is	1563
consistent with division (B) of this section.	1564

(D) If the retirement allowances due and paid under the	1565
above provisions of this section are in a total amount less than	1566
(1) the accumulated contributions, (2) the deposits for additional	1567
credit as provided by section 3309.31 of the Revised Code, (3) the	1568
deposits for additional annuities as provided by section 3309.47	1569
of the Revised Code, (4) the deposits for repurchase of service	1570
credit as provided by section 3309.26 of the Revised Code, (5) the	1571
accumulated contributions provided by section 3309.65 of the	1572
Revised Code, (6) the deposits for purchase of military service	1573
credit provided by section 3309.021 or 3309.022 of the Revised	1574
Code, and (7) the deposits for the purchase of service credit	1575
provided by section 3309.73 of the Revised Code, standing to the	1576
credit of the member at the time of retirement, then the	1577
difference between the total amount of the allowances paid and the	1578
accumulated contributions and other deposits shall be paid to the	1579
beneficiary provided under division (D) of section 3309.44 of the	1580
Revised Code.	1581

(E)(1) The death of a spouse or any other designated	1582
beneficiary following the member's retirement shall cancel any	1583
plan of payment to provide continuing lifetime benefits to the	1584
spouse or designated beneficiary and the retirant shall receive	1585
the retirant's single lifetime retirement allowance equivalent as	1586
determined by the board.	1587

(2) On divorce, annulment, or marriage dissolution, a	1588
retirant receiving a retirement allowance under a plan of payment	1589
that provides for continuation of all or part of the allowance	1590
after death for the lifetime of the member's surviving spouse may	1591
elect to cancel the plan and receive the member's single lifetime	1592
retirement allowance equivalent as determined by the retirement	1593
board, except that in the case of a member who retires on or after	1594
July 24, 1990, the election may be made only with the written	1595
consent of the spouse or pursuant to an order of the court with	1596
jurisdiction over the termination of the marriage. The election	1597
shall be made on a form provided by the board and shall be	1598
effective the month following its receipt by the board.	1599

(3) Following marriage or remarriage, a retirant who is	1600
receiving a benefit pursuant to "plan B" may elect a new plan of	1601
payment under division (B)(1), (2)(b), or (2)(c) of this section	1602
based on the actuarial equivalent of the member's single lifetime	1603
retirement allowance as determined by the board. The plan shall	1604
become effective the first day of the month following receipt by	1605
the board of an application on a form approved by the board.	1606

Section 2. That existing sections 145.46, 3307.01, 3307.39,	1607
3307.51, 3307.56, 3307.561, 3307.563, 3307.58, 3307.60, 3307.761,	1608
3307.763, 3307.764, 3307.87, 3309.45, and 3309.46 of the Revised	1609
Code are hereby repealed.	1610

Section 3.  Section 3307.58 of the Revised Code is presented	1611
in this act as a composite of the section as amended by both Sub.	1612
H.B. 535 and Sub. S.B. 270 of the 123rd General Assembly. The	1613
General Assembly, applying the principle stated in division (B) of	1614
section 1.52 of the Revised Code that amendments are to be	1615
harmonized if reasonably capable of simultaneous operation, finds	1616
that the composite is the resulting version of the section in	1617
effect prior to the effective date of the section as presented in	1618
this act.	1619