REPRESENTATIVES Seitz, Calvert, Collier, Carano, Aslanides, Webster, Setzer, Buehrer, Clancy, D. Evans, McGregor, Schneider, Gibbs, Slaby, Allen, Reidelbach, Schmidt, T. Patton, G. Smith, Hughes, J. Stewart, Barrett, Beatty, Book, Brown, Chandler, Core, DeBose, Domenick, C. Evans, Flowers, Gilb, Hagan, Hollister, Key, Latta, Martin, Niehaus, Olman, Otterman, Perry, Price, Raussen, Schlichter, S. Smith, Strahorn, Widener, Willamowski, Wilson

To amend sections 145.384, 145.385, 742.26, 3307.352,

1

and 3309.344 of the Revised Code to allow a

2

retirant re-employed in a position covered by a

3

state retirement system to receive a refund of the

4

retirant's contributions in lieu of a benefit for

5

the period of re-employment.

6

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

Section 1.  That sections 145.384, 145.385, 742.26, 3307.352,	7
and 3309.344 of the Revised Code be amended to read as follows:	8

Sec. 145.384. (A) As used in this section, "PERS retirant"	9
means a PERS retirant who is not subject to division (C) of	10
section 145.38 of the Revised Code. For purposes of this section,	11
"PERS retirant" also includes both of the following:	12

(1) A member who retired under section 145.383 of the Revised	13
Code;	14

(2) A retirant whose retirement allowance resumed under	15
section 145.385 of the Revised Code.	16

(B)(1) An other system retirant or PERS retirant who has made	17
contributions under section 145.38 or 145.383 of the Revised Code	18
or, in the case of a retirant described in division (A)(2) of this	19
section, section 145.47 of the Revised Code may file an	20
application with the public employees retirement system forto	21
receive either a benefit under, as provided in division (B)(2) of	22
this section, or payment of the retirant's contributions made	23
under those sections, as provided in division (H) of this section.	24
The	25

(2) A benefit under this section shall consist of an annuity	26
having a reserve equal to the amount of the retirant's accumulated	27
contributions for the period of employment, other than the	28
contributions excluded pursuant to division (B)(4)(a) or (b) of	29
section 145.38 of the Revised Code, and an equal amount of the	30
employer's contributions. The	31

(a) Unless, as described in division (I) of this section, the	32
application is accompanied by a statement of the spouse's consent	33
to another form of payment or the board waives the requirement of	34
spousal consent, a PERS retirant or other system retirant who is	35
married at the time of application under this section shall	36
receive a monthly annuity under which the actuarial equivalent of	37
the retirant's single life annuity is paid in a lesser amount for	38
life and one-half of the lesser amount continues after the	39
retirant's death to the surviving spouse.	40

(b) A PERS retirant or other system retirant who is not	41
subject to division (B)(2)(a) of this section shall elect either	42
to receive the benefit as a monthly annuity or a lump sum payment	43
discounted to the present value using the current actuarial	44
assumption rate of interest, except that if the monthly annuity	45
would be less than twenty-five dollars per month, the retirant	46
shall receive a lump sum payment. A retirant who elects to receive	47
a monthly annuity shall select one of the following as the plan of	48
payment:	49

(1)(i) The retirant's single life annuity;

50

(2)(ii) The actuarial equivalent of the retirant's single	51
life annuity in aan equal or lesser amount for life and	52
continuing after death to a surviving beneficiary designated at	53
the time the plan of payment is selected.	54

If a retirant who is eligible to select a plan of payment	55
under division (B)(2)(b) of this section fails to do so, the	56
benefit shall be paid as a monthly annuity under the plan of	57
payment specified in rules adopted by the public employees	58
retirement board.	59

(c) Notwithstanding divisions (B)(2)(a) and (b) of this	60
section, if a monthly annuity would be less than twenty-five	61
dollars per month, the retirant shall receive a lump sum payment.	62

(C)(1) The death of a spouse or other designated beneficiary	63
following selection ofunder a plan of payment underdescribed in	64
division (B)(2) of this section cancels that plan of payment. The	65
PERS retirant or other system retirant shall receive the	66
equivalent of the retirant's single life annuity, as determined by	67
the public employees retirement board, effective the first day of	68
the month following receipt by the board of notice of the death.	69

(2) On divorce, annulment, or marriage dissolution, a PERS	70
retirant or other system retirant receiving a benefit under	71
described in division (B)(2) of this section under which the	72
beneficiary is the spouse may, with the written consent of the	73
spouse or pursuant to an order of the court with jurisdiction over	74
the termination of the marriage, elect to cancel the plan and	75
receive the equivalent of the member'sretirant's single life	76
annuity as determined by the retirement board. The election shall	77
be made on a form provided by the board and shall be effective the	78
month following its receipt by the board.	79

(D) Following a marriage or remarriage, a PERS retirant or	80
other system retirant who is receiving a benefit underdescribed	81
in division (B)(1)(2)(b)(i) of this section may elect a new plan	82
of payment under division (B)(2)(b) of this section based on the	83
actuarial equivalent of the retirant's single life annuity as	84
determined by the board. The plan shall be effective the first day	85
of the month following receipt by the board of an application on a	86
form approved by the board.	87

(E) A benefit payable under division (B)(2) of this section	88
shall commence on the latest of the following:	89

(1) The last day for which compensation for all employment	90
subject to section 145.38, 145.383, or 145.385 of the Revised Code	91
was paid;	92

(2) Attainment by the PERS retirant or other system retirant	93
of age sixty-five;	94

(3) If the PERS retirant or other system retirant was	95
previously employed under section 145.38, 145.383, or 145.385 of	96
the Revised Code and is receiving or previously received a benefit	97
under this section, completion of a period of twelve months since	98
the effective date of the last benefit under this section.	99

(F)(1) If a PERS retirant or other system retirant dies while	100
employed in employment subject to section 145.38, 145.383, or	101
145.385 of the Revised Code, a lump sum payment calculated in	102
accordance with division (B)(2) of this section shall be paid to	103
the retirant's beneficiary under division (G) of this section.	104

(2) If at the time of death a PERS retirant or other system	105
retirant receiving a monthly annuity has received less than the	106
retirant would have received as a lump sum payment, the difference	107
between the amount received and the amount that would have been	108
received as a lump sum payment shall be paid to the retirant's	109
beneficiary under division (G) of this section.	110

(3) If a beneficiary receiving a monthly annuity under	111
division (B)(2) of this section dies and, at the time of the	112
beneficiary's death, the total of the amounts paid to the retirant	113
and beneficiary are less than the amount the retirant would have	114
received as a lump sum payment, the difference between the total	115
of the amounts received by the retirant and beneficiary and the	116
amount that the retirant would have received as a lump sum payment	117
shall be paid to the beneficiary's estate.	118

(G) A PERS retirant or other system retirant employed under	119
section 145.38, 145.383, or 145.385 of the Revised Code may	120
designate one or more persons as beneficiary to receive any	121
benefits payable under division (B)(2)(b) of this section due to	122
death. The designation shall be in writing duly executed on a form	123
provided by the public employees retirement board, signed by the	124
PERS retirant or other system retirant, and filed with the board	125
prior to death. The last designation of a beneficiary revokes all	126
previous designations. The PERS retirant's or other system	127
retirant's marriage, divorce, marriage dissolution, legal	128
separation, withdrawal of account, birth of a child, or adoption	129
of a child revokes all previous designations. If there is no	130
designated beneficiary, the beneficiary is the beneficiary	131
determined under division (D) of section 145.43 of the Revised	132
Code. If any benefit payable under this section due to the death	133
of a PERS retirant or other system retirant is not claimed by a	134
beneficiary within five years after the death, the amount payable	135
shall be transferred to the income fund and thereafter paid to the	136
beneficiary or the estate of the PERS retirant or other system	137
retirant on application to the board.	138

(H)(1) A PERS retirant or other system retirant who applies	139
under division (B)(1) of this section for payment of the	140
retirant's contributions and is unmarried or is married and,	141
unless the board has waived the requirement of spousal consent,	142
includes with the application a statement of the spouse's consent	143
to the payment, shall be paid the contributions made under section	144
145.38 or 145.383 of the Revised Code or, in the case of a	145
retirant described in division (A)(2) of this section, section	146
145.47 of the Revised Code, plus interest as provided in section	147
145.471 of the Revised Code, if the following conditions are met:	148

(a) The retirant has not attained sixty-five years of age and	149
has terminated employment subject to section 145.38, 145.383, or	150
145.385 of the Revised Code for any cause other than death or the	151
receipt of a benefit under this section.	152

(b) Three months have elapsed since the termination of the	153
retirant's employment subject to section 145.38, 145.383, or	154
145.385 of the Revised Code, other than employment exempted from	155
contribution pursuant to section 145.03 of the Revised Code.	156

(c) The retirant has not returned to public service, other	157
than service exempted from contribution pursuant to section 145.03	158
of the Revised Code, during the three-month period.	159

(2) Payment of a retirant's contributions cancels the	160
retirant's right to a benefit under division (B)(2) of this	161
section.	162

(I) A statement of a spouse's consent under division (B)(2)	163
of this section to the form of a benefit or under division (H) of	164
this section to a payment of contributions is valid only if signed	165
by the spouse and witnessed by a notary public. The board may	166
waive the requirement of spousal consent if the spouse is	167
incapacitated or cannot be located, or for any other reason	168
specified by the board. Consent or waiver is effective only with	169
regard to the spouse who is the subject of the consent or waiver.	170

(J) No amount received under this section shall be included	171
in determining an additional benefit under section 145.323 of the	172
Revised Code or any other post-retirement benefit increase.	173

Sec. 145.385. (A) A PERS retirant who made an election under	174
former section 145.381 of the Revised Code under which the annuity	175
portion of the retirant's retirement allowance was suspended and	176
the pension portion forfeited may have the entire retirement	177
allowance resume by giving notice to the public employees	178
retirement system. The notice must be given not later than ninety	179
days after the effective date of this sectionOctober 1, 2002.	180

(B) The retirement allowance shall resume on the first day of	181
the month following receipt of notice by the retirement system.	182

(C) The annuity portion of the retirement allowance that has	183
accumulated to the retirant's credit shall be paid as a single	184
payment on the first day of the month following receipt of notice	185
by the retirement system.	186

(D) Contributions made by the retirant and employer during	187
the period of forfeiture and contributions made after the	188
retirement allowance resumes shall be left on deposit with the	189
system and, except in the case of a retirant who elects, under	190
division (H) of section 145.384 of the Revised Code, to receive a	191
payment of the retirant contributions, shall be used in the	192
calculation of a benefit under section 145.384 of the Revised	193
Code.	194

Sec. 742.26.  (A) As used in this section:

195

(1) "Actuarial present value" means the calculation under	196
which the probability of occurrence, based on a specified	197
mortality table, and the discount for future monetary growth at a	198
specified interest rate are considered by an actuary to determine	199
the value of an annuity.	200

(2) "Other system retirant" means a former member of the	201
public employees retirement system, state teachers retirement	202
system, school employees retirement system, state highway patrol	203
retirement system, or Cincinnati retirement system who is	204
receiving a disability benefit or an age and service or commuted	205
age and service retirement benefit or allowance from a system of	206
which the person is a former member.	207

(3) "OPFPF retirant" means any person who is receiving a	208
retirement allowance, other than a disability benefit, from the	209
Ohio police and fire pension fund.	210

(B) The mortality table and interest rate used in determining	211
actuarial present value shall be determined by the board of	212
trustees of the fund based on the recommendations of an actuary	213
employed by the board.	214

(C)(1) An OPFPF retirant or other system retirant may be	215
employed as a member of a police or fire department. If so	216
employed, the retirant shall make contributions to the fund in	217
accordance with section 742.31 of the Revised Code, and the	218
employer shall make contributions in accordance with sections	219
742.33 and 742.34 of the Revised Code.	220

(2) An employer that employs an OPFPF retirant or other	221
system retirant shall notify the board of trustees of the fund of	222
the employment not later than the end of the month in which the	223
employment commences. On receipt of notice from an employer that a	224
person who is an other system retirant has been employed, the fund	225
shall notify the retirement system of which the other system	226
retirant was a member of such employment.	227

(D) An OPFPF retirant or other system retirant who has	228
received a retirement allowance or benefit for less than two	229
months when employment subject to this section commences shall	230
forfeit the retirement allowance or benefit for the period that	231
begins on the date the employment commences and ends on the	232
earlier of the date the employment terminates or the date that is	233
two months after the date on which the retirement allowance or	234
benefit commenced. Service and contributions for that period shall	235
not be included in the calculation of any benefits payable under	236
this section, and those contributions shall be refunded on the	237
retirant's death or termination of the employment.	238

(E) On receipt of notice from the public employees retirement	239
system, school employees retirement system, or state teachers	240
retirement system of the re-employment of an OPFPF retirant, the	241
Ohio police and fire pension fund shall not pay, or if paid shall	242
recover, the amount to be forfeited by the OPFPF retirant in	243
accordance with section 145.38, 3307.35, or 3309.341 of the	244
Revised Code.	245

(F)(1)(a) On termination of employment under this section, an	246
OPFPF retirant or other system retirant shall elect one of the	247
following:	248

(i) A monthlymay file an application with the board of	249
trustees of the fund to receive either a benefit, as provided in	250
division (F)(2) of this section, or payment of the retirant's	251
contributions made under this section, as provided in division (H)	252
of this section.	253

(2) A benefit under this section shall consist of an annuity	254
the actuarial present value of which is equal to two times the sum	255
of all amounts deducted from the salary of the OPFPF retirant or	256
other system retirant and credited to the retirant's individual	257
account in the fund, other than contributions excluded pursuant to	258
division (D) of this section, together with interest credited	259
thereon at the rate determined by the board, provided the annuity	260
equals or exceeds twenty-five dollars per month.	261

(ii) A(a) Unless, as described in division (I) of this	262
section, the application is accompanied by a statement of the	263
spouse's consent to another form of payment or the board of	264
trustees waives the requirement of spousal consent, a retirant who	265
is married at the time of application under this division shall	266
receive a monthly annuity under which the actuarial equivalent of	267
the retirant's single life annuity is paid in a lesser amount for	268
life and one-half of the lesser amount continues after the	269
retirant's death to the surviving spouse.	270

(b) A retirant who is not subject to division (F)(2)(a) of	271
this section shall elect to receive either a monthly annuity or a	272
lump-sum payment equal to two times the sum of all amounts	273
deducted from the salary of the OPFPF retirant or other system	274
retirant and credited to the retirant's individual account in the	275
fund, other than contributions excluded pursuant to division (D)	276
of this section, together with interest credited thereon at the	277
rate determined by the board. If the retirant fails to elect a	278
plan of payment, the annuity shall be paid as a monthly annuity	279
under the plan of payment specified in rules adopted by the board	280
of trustees of the fund.	281

A retirant who elects to receive a monthly annuity shall	282
select one of the following as the plan of payment:	283

(i) The retirant's single life annuity;

284

(ii) The actuarial equivalent of the retirant's single life	285
annuity in an equal or lesser amount for life and continuing after	286
death to a surviving beneficiary designated at the time the plan	287
of payment is selected.	288

(c) Notwithstanding divisions (F)(2)(a) and (b) of this	289
section, if a monthly annuity would be less than twenty-five	290
dollars per month, the retirant shall receive a lump sum payment.	291

(b)(3) Interest shall be credited to accounts only at the	292
time of calculation of a benefit payable under division (F)(1)(2)	293
of this section.	294

(2)(4) A benefit payable under this division shall commence	295
on the first day of the month immediately after the latest of the	296
following:	297

(a) The last day for which compensation for employment	298
subject to this section was paid;	299

(b) Attainment by the OPFPF retirant or other system retirant	300
of age sixty;	301

(c) If the OPFPF retirant or other system retirant was	302
previously employed under this section and is receiving or	303
previously received a benefit under this division, completion of a	304
period of twelve months since the last benefit paid under this	305
section commenced.	306

(3)(5) No amount received under this division shall be	307
included in determining an additional benefit under section	308
742.3711, 742.3716, or 742.3717 of the Revised Code or any other	309
post-retirement benefit increase.	310

(G)(1) If an OPFPF retirant or other system retirant dies	311
while employed in employment subject to this section, a lump-sum	312
payment calculated in accordance with division (F)(1)(a)(ii)(2) of	313
this section shall be paid to the retirant's surviving spouse, or	314
if there is no surviving spouse, to the retirant's estate.	315

(2) If at the time of death an OPFPF retirant or other system	316
retirant receiving a monthly annuity under division	317
(F)(1)(a)(i)(2) of this section has received less than would have	318
been received as a lump-sum payment under division	319
(F)(1)(a)(ii)(2) of this section, the difference between the	320
amount received and the amount that would have been received as a	321
lump-sum payment shall be paid to the retirant's surviving spouse,	322
or if there is no surviving spouse, to the retirant's estate.	323

(3) If a beneficiary receiving a monthly annuity under	324
division (F)(2) of this section dies and, at the time of the	325
beneficiary's death, the total of the amounts paid to the retirant	326
and beneficiary are less than the amount the retirant would have	327
received as a lump sum payment, the difference between the total	328
of the amounts received by the retirant and beneficiary and the	329
amount that the retirant would have received as a lump sum payment	330
shall be paid to the beneficiary's estate.	331

(H)(1) An OPFPF retirant or other system retirant who applies	332
under division (F)(1) of this section for payment of the	333
retirant's contributions and is unmarried or is married and,	334
unless the board of trustees has waived the requirement of spousal	335
consent, includes with the application a statement of the spouse's	336
consent to the payment shall be paid the contributions made under	337
division (C) of this section, plus interest, if the following	338
conditions are met:	339

(a) The retirant has not attained sixty years of age and has	340
terminated employment subject to this section for any cause other	341
than death or the receipt of a benefit under division (F) of this	342
section.	343

(b) Three months have elapsed since the termination of	344
employment subject to this section.	345

(c) The retirant has not returned to service subject to this	346
chapter or Chapter 145., 3307., or 3309. of the Revised Code,	347
other than service exempted from contribution to the public	348
employees retirement system pursuant to section 145.03 of the	349
Revised Code, during the three-month period.	350

(2) Payment of a retirant's contributions cancels the	351
retirant's right to a benefit under division (F) of this section.	352

(I) A statement of a spouse's consent under division (F) of	353
this section to the form of a benefit or under division (H) of	354
this section to a payment of contributions is valid only if signed	355
by the spouse and witnessed by a notary public. The board of	356
trustees may waive the requirement of spousal consent if the	357
spouse is incapacitated or cannot be located, or for any other	358
reason specified by the board. Consent or waiver is effective only	359
with regard to the spouse who is the subject of the consent or	360
waiver.	361

(J) An other system retirant subject to this section is not a	362
member of the Ohio police and fire pension fund, does not have any	363
of the rights, privileges, or obligations of membership, except as	364
specified in this section, and is not eligible to receive health,	365
medical, hospital, or surgical benefits under section 742.45 of	366
the Revised Code for employment subject to this section.	367

(I)(K) If any payment is made by the Ohio police and fire	368
pension fund to an OPFPF retirant or other system retirant to	369
which the retirant is not entitled, the retirant shall repay it to	370
the fund. If the retirant fails to make the repayment, the fund	371
shall withhold the amount due from any allowances or other amounts	372
due the OPFPF retirant or other system retirant.	373

(J)(L) An OPFPF retirant who is employed under this section	374
is not eligible to receive any benefits under section 742.37 of	375
the Revised Code for the employment under this section.	376

(K)(M) This section does not affect the receipt of benefits	377
by or eligibility for benefits of any person who on August 20,	378
1976, was receiving a disability benefit or service retirement	379
pension or allowance from a state or municipal retirement system	380
in Ohio and was a member of any other state or municipal	381
retirement system of this state.	382

(L)(N) The board of trustees of the fund may adopt rules to	383
carry out this section.	384

Sec. 3307.352.  For purposes of this section, "superannuate"	385
includes a member who retired under section 3307.351 of the	386
Revised Code.	387

(A)(1) A superannuate or other system retirant who has made	388
contributions under section 3307.35 or 3307.351 of the Revised	389
Code may file an application with the state teachers retirement	390
system forto receive either a benefit under, as provided in	391
division (A)(2) of this section, or payment of the superannuate or	392
retirant's contributions made under this section, as provided in	393
division (D) of this section.	394

(2) A benefit under this section. The benefit shall consist	395
of a single life annuity having a reserve equal to the amount of	396
the superannuate's or retirant's accumulated contributions, as	397
defined in section 3307.50 of the Revised Code, for the period of	398
employment, other than the contributions excluded pursuant to	399
division (F) of the section 3307.35 of the Revised Code, and an	400
equal amount from the employers' trust created by section 3307.14	401
of the Revised Code, plus interest credited to the date of	402
retirement at the then current actuarial rate of interest. The	403

(a) Unless as described in division (E) of this section the	404
application is accompanied by a statement of the spouse's consent	405
to another form of payment or the board waives the requirement of	406
spousal consent, a superannuate or other system retirant who is	407
married at the time of application for a benefit under this	408
division shall receive the benefit as a monthly annuity under	409
which the actuarial equivalent of the superannuate or retirant's	410
single life annuity is paid in a lesser amount for life and	411
one-half of the lesser amount continues after the superannuate or	412
retirant's death to the surviving spouse.	413

(b) A superannuate or other system retirant who is not	414
subject to division (A)(2)(a) of this section shall elect either	415
to receive the benefit as a monthly annuity for life or a lump sum	416
payment discounted to the present value using the current	417
actuarial assumption rate of interest, except that if the monthly	418
annuity would be less than twenty-five dollars per month the	419
superannuate or retirant shall receive a lump sum payment.	420

A superannuate or other system retirant who elects to receive	421
a monthly annuity shall select one of the following as the plan of	422
payment:	423

(i) The superannuate or retirant's single life annuity;

424

(ii) The actuarial equivalent of the superannuate or	425
retirant's single life annuity in an equal or lesser amount for	426
life and continuing after death to a surviving beneficiary	427
designated at the time the plan of payment is selected.	428

If a superannuate or retirant who is eligible to select a	429
plan of payment under division (A)(2)(b) of this section fails to	430
do so, the benefit shall be paid as a monthly annuity under the	431
plan of payment specified in rules adopted by the state teachers	432
retirement board.	433

(c) Notwithstanding divisions (A)(2)(a) and (b) of this	434
section, if a monthly annuity would be less than twenty-five	435
dollars per month, the superannuate or retirant shall receive a	436
lump sum payment.	437

(B) A benefit payable under this section shall commence on	438
the latest of the following:	439

(1) The last day for which compensation for all employment as	440
a teacher was paid;	441

(2) Attainment by the superannuate or other system retirant	442
of age sixty-five;	443

(3) If the superannuate or other system retirant was	444
previously employed under section 3307.35 or 3307.351 of the	445
Revised Code and previously received or is receiving a benefit	446
under this section, completion of a period of twelve months since	447
the effective date of the last benefit under this section.	448

(C)(1) If a superannuate or other system retirant dies while	449
employed in employment subject to section 3307.35 or 3307.351 of	450
the Revised Code, a lump sum payment calculated in accordance with	451
division (A) of this section shall be paid to the beneficiary	452
designated under division (D) of section 3307.562 of the Revised	453
Code.	454

(2) If at the time of death a superannuate or other system	455
retirant receiving a monthly annuity has received less than the	456
superannuate or retirant would have received as a lump sum	457
payment, the difference between the amount received and the amount	458
that would have been received as a lump sum payment shall be paid	459
to the superannuate's or retirant's beneficiary designated under	460
division (D) of section 3307.562 of the Revised Code.	461

(3) If a beneficiary receiving a monthly annuity under	462
division (A)(2) of this section dies and, at the time of the	463
beneficiary's death, the total of the amounts paid to the	464
superannuate or retirant and to the beneficiary are less than the	465
amount the superannuate or retirant would have received as a lump	466
sum payment, the difference between the total of the amounts	467
received by the superannuate or retirant and by the beneficiary	468
and the amount that the superannuate or retirant would have	469
received as a lump sum payment shall be paid to the beneficiary's	470
estate.	471

(D)(1) A superannuate or other system retirant who applies	472
under division (A)(1) of this section for payment of the	473
superannuate or retirant's contributions and is unmarried or is	474
married and, unless the board has waived the requirement of	475
spousal consent, includes with the election a statement of the	476
spouse's consent to the payment, shall be paid the contributions	477
made under section 3307.35 or 3307.351 of the Revised Code, plus	478
interest credited to the date of retirement at the then current	479
actuarial rate of interest, if the following conditions are met:	480

(a) The superannuate or retirant has not attained sixty-five	481
years of age and has terminated employment subject to this section	482
for any cause other than death or the receipt of a benefit under	483
division (A)(2) of this section.	484

(b) Three months have elapsed since the termination of the	485
superannuate or retirant's employment subject to this section.	486

(c) The superannuate or retirant has not returned to service	487
subject to this chapter or Chapter 145., 742., or 3309. of the	488
Revised Code, other than service exempted from contribution to the	489
public employees retirement system pursuant to section 145.03 of	490
the Revised Code, during the three-month period.	491

(2) Payment of a superannuate or retirant's contributions	492
cancels the retirant's right to a benefit under division (A)(2) of	493
this section.	494

(E) A statement of a spouse's consent under division (A)(2)	495
of this section to the form of a benefit or under division (D) of	496
this section to a payment of contributions is valid only if signed	497
by the spouse and witnessed by a notary public. The board may	498
waive the requirement of spousal consent if the spouse is	499
incapacitated or cannot be located, or for any other reason	500
specified by the board. Consent or waiver is effective only with	501
regard to the spouse who is the subject of the consent or waiver.	502

(F) No amount received under this section shall be included	503
in determining an additional benefit under section 3307.67 of the	504
Revised Code or any other post-retirement benefit increase.	505

Sec. 3309.344.  For purposes of this section, "SERS retirant"	506
includes a member who retired under section 3309.343 of the	507
Revised Code.	508

(A)(1) An SERS retirant or other system retirant who has made	509
contributions under section 3309.341 or 3309.343 of the Revised	510
Code may file an application with the school employees retirement	511
system forto receive either a benefit under, as provided in	512
division (A)(2) of this section, or payment of the retirant's	513
contributions made under those sections, as provided in division	514
(E) of this section. The	515

(2) A benefit shall consist of a single life annuity having a	516
reserve equal to the amount of the retirant's accumulated	517
contributions for the period of employment, other than the	518
contributions excluded pursuant to division (C) of section	519
3309.341 of the Revised Code, and an equal amount of the	520
employer's contributions, plus interest credited to the date of	521
retirement at the rate provided in division (I)(2) of section	522
3309.01 of the Revised Code. The	523

(a) Unless the application is accompanied by a statement of	524
the spouse's consent to another form of payment as described in	525
division (J) of this section or the board waives the requirement	526
for spousal consent, an SERS retirant or other system retirant who	527
is married at the time of application for a benefit under this	528
section shall receive the benefit as a monthly annuity under which	529
the actuarial equivalent of the retirant's single life annuity is	530
paid in a lesser amount for life and one-half of the lesser amount	531
continues after the retirant's death to the surviving spouse.	532

(b) An SERS retirant or other system retirant who is not	533
subject to division (A)(2)(a) of this section shall elect either	534
to receive the benefit as a monthly annuity for life or a lump sum	535
payment discounted to the present value using the current	536
actuarial assumption rate of interest, except that if the monthly	537
annuity would be less than twenty-five dollars per month, the	538
retirant shall receive a lump sum payment. If a retirant who is	539
eligible to select a plan of payment under division (A)(2) of this	540
section fails to do so, the benefit shall be paid as a monthly	541
annuity under the plan of payment specified in rules adopted by	542
the school employees retirement board.	543

A retirant who elects to receive a monthly annuity shall	544
select one of the following as the plan of payment:	545

(i) The retirant's single life annuity;

546

(ii) The actuarial equivalent of the retirant's single life	547
annuity in an equal or lesser amount for life and continuing after	548
death to a surviving beneficiary designated at the time the plan	549
of payment is selected.	550

(c) Notwithstanding divisions (A)(2)(a) and (b) of this	551
section, if a monthly annuity would be less than twenty-five	552
dollars per month, the retirant shall receive a lump sum payment.	553

(B) A benefit payable under this section shall commence on	554
the first day of the month after the latest of the following:	555

(1) The last day for which compensation for all employment	556
subject to sections 3309.341 and 3309.343 of the Revised Code was	557
paid;	558

(2) Attainment by the SERS retirant or other system retirant	559
of age sixty-five;	560

(3) If the SERS retirant or other system retirant was	561
previously employed under section 3309.341 or 3309.343 of the	562
Revised Code and is receiving or previously received a benefit	563
under this section, completion of a period of twelve months since	564
the effective date of that benefit.	565

(C)(1) If an SERS retirant or other system retirant dies	566
while employed in employment subject to section 3309.341 or	567
3309.343 of the Revised Code, a lump sum payment calculated in	568
accordance with division (A) of this section shall be paid to the	569
beneficiary under division (D) of this section.	570

(2) If at the time of death an SERS retirant or other system	571
retirant receiving a monthly annuity has received less than the	572
retirant would have received as a lump sum payment, the difference	573
between the amount received and the amount that would have been	574
received as a lump sum payment shall be paid to the retirant's	575
beneficiary under division (D) of this section.	576

(3) If a beneficiary receiving a monthly annuity under	577
division (A)(2) of this section dies and, at the time of the	578
beneficiary's death, the total of the amounts paid to the retirant	579
and beneficiary are less than the amount the retirant would have	580
received as a lump sum payment, the difference between the total	581
of the amounts received by the retirant and beneficiary and the	582
amount that the retirant would have received as a lump sum payment	583
shall be paid to the beneficiary's estate.	584

(D) An SERS retirant or other system retirant employed under	585
section 3309.341 or 3309.343 of the Revised Code may designate one	586
or more persons as beneficiary to receive any benefits payable	587
under this section due to death. The designation shall be in	588
writing duly executed on a form provided by the school employees	589
retirement board, signed by the SERS retirant or other system	590
retirant, and filed with the board prior to death. The last	591
designation of a beneficiary revokes all previous designations.	592
The SERS retirant's or other system retirant's marriage, divorce,	593
marriage dissolution, legal separation, withdrawal of account,	594
birth of the retirant's child, or adoption of a child revokes all	595
previous designations. If there is no designated beneficiary, the	596
beneficiary is the beneficiary designated under division (D) of	597
section 3309.44 of the revised codeRevised Code. If any benefit	598
payable under this section due to the death of an SERS retirant or	599
other system retirant is not claimed by a beneficiary within five	600
years after the death, the amount payable shall be transferred to	601
the guarantee fund and thereafter paid to the beneficiary or the	602
estate of the SERS retirant or other system retirant on	603
application to the board.	604

(E)(1) An SERS retirant or other system retirant who applies	605
under division (A)(1) of this section for payment of the	606
retirant's contributions and is unmarried or is married and,	607
unless the board has waived the requirement of spousal consent,	608
includes with the election a statement of the spouse's consent to	609
the payment, shall be paid the contributions made under section	610
3309.341 or 3309.343 of the Revised Code if the following	611
conditions are met:	612

(a) The retirant has not attained sixty-five years of age and	613
has terminated employment subject to this section for any cause	614
other than death or the receipt of a benefit under division (A) of	615
this section.	616

(b) Three months have elapsed since the termination of the	617
retirant's employment subject to this section.	618

(c) The retirant has not returned to service subject to this	619
chapter or Chapter 145., 742., or 3309. of the Revised Code, other	620
than service exempted from contribution to the public employees	621
retirement system pursuant to section 145.03 of the Revised Code,	622
during the three-month period.	623

(2) Payment of a retirant's contributions cancels the	624
retirant's right to a benefit under division (A) of this section.	625

(F) A statement of a spouse's consent under division (A)(2)	626
of this section to the form of a benefit or under division (E) of	627
this section to a payment of contributions is valid only if signed	628
by the spouse and witnessed by a notary public. The board may	629
waive the requirement of spousal consent if the spouse is	630
incapacitated or cannot be located, or for any other reason	631
specified by the board. Consent or waiver is effective only with	632
regard to the spouse who is the subject of the consent or waiver.	633

(G) No amount received under this section shall be included	634
in determining an additional benefit under section 3309.374 of the	635
Revised Code or any other post-retirement benefit increases.	636

Section 2.  That existing sections 145.384, 145.385, 742.26,	637
3307.352, and 3309.344 of the Revised Code are hereby repealed.	638