As Introduced

125th General Assembly Regular Session 2003-2004

H. B. No. 98

Representative Willamowski 

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A BILL

To amend sections 145.323, 145.46, 3105.80, 3307.60,

1

3307.67, 3309.374, and 3309.46 of the Revised Code

2

to make changes to the optional benefit plans for

3

retirants and the cost-of-living increase in the

4

Public Employee Retirement System, State Teachers

5

Retirement System, and School Employees Retirement

6

System.

7

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

Section 1. That sections 145.323, 145.46, 3105.80, 3307.60,	8
3307.67, 3309.374, and 3309.46 of the Revised Code be amended to	9
read as follows:	10

Sec. 145.323.  (A) The public employees retirement board	11
shall annually increase each allowance, pension, or benefit	12
payable under this chapter by three per cent, except that no	13
allowance, pension, or benefit shall exceed the limit established	14
by section 415 of the "Internal Revenue Code of 1986," 100 Stat.	15
2085, 26 U.S.C.A. 415, as amended.	16

The first increase is payable to all persons becoming	17
eligible after June 30, 1971, upon such persons receiving an	18
allowance for twelve months. The increased amount is payable for	19
the ensuing twelve-month period or until the next increase is	20
granted under this section, whichever is later. Subsequent	21
increases shall be determined from the date of the first increase	22
paid to the former member in the case of an allowance being paid a	23
beneficiary under an option, or from the date of the first	24
increase to the survivor first receiving an allowance or benefit	25
in the case of an allowance or benefit being paid to the	26
subsequent survivors of the former member.	27

The date of the first increase under this section becomes the	28
anniversary date for any future increases.	29

The allowance or benefit used in the first calculation of an	30
increase under this section shall remain as the base for all	31
future increases, unless a new base is established.	32

(B) If payment of a portion of a benefit is made to an	33
alternate payee under section 145.571 of the Revised Code,	34
increases under this section granted while the order is in effect	35
shall be apportioned between the alternate payee and the retirant	36
or another beneficiary in the same proportion that the amount	37
being paid to the alternate payee bears to the amount paid to the	38
retirant or other beneficiary.	39

(C) The board shall make all rules necessary to carry out	40
this section.	41

Sec. 145.46.  (A) A retirement allowance calculated under	42
section 145.33, 145.331, or 145.34 of the Revised Code shall be	43
paid as provided in this section. If the member is eligible to	44
elect a plan of payment under this section, the election shall be	45
made on a form provided by the public employees retirement board.	46
A plan of payment elected under this section shall be effective	47
only if approved by the board, which shall approve it only if it	48
is certified by an actuary engaged by the board to be the	49
actuarial equivalent of the retirement allowance calculated under	50
section 145.33, 145.331, or 145.34 of the Revised Code.	51

(B)(1) Unless the member is eligible to elect another plan of	52
paymentExcept as otherwise provided in this division, a member	53
who retires under section 145.32, 145.331, or 145.34 of the	54
Revised Code shall receive a retirement allowance under "plan A,"	55
which shall consist of the actuarial equivalent of the member's	56
retirement allowance determined under section 145.33, 145.331, or	57
145.34 of the Revised Code in a lesser amount payable for life and	58
one-half of such allowance continuing after death to the member's	59
surviving spouse for the life of the spouse. The exceptions are as	60
follows:	61

(a) A member may elect to receive the member'sa retirement	62
allowance under a plan of payment other than "plan A" if the	63
member is not married or either the member's spouse consents in	64
writing to the member's election of a plan of payment other than	65
"plan A" or the board waives the requirement that the spouse	66
consent. An	67

(b) Prior to the effective date of the member's retirement, a	68
court issued an order under section 3105.171 or 3105.65 of the	69
Revised Code, or a comparable order terminating a marriage and	70
dividing marital property under the laws of another state,	71
requiring a plan of payment that provides for payment in a	72
specified amount continuing after the member's death to a former	73
spouse.	74

(2) An application for retirement shall include an	75
explanation of all of the following:	76

(a) That, if the member is married, unless the spouse	77
consents to another plan of payment or there is a court order	78
dividing marital property that provides for payment in a specified	79
amount, the member's retirement allowance will be paid under "plan	80
A," which consists of the actuarial equivalent of the member's	81
retirement allowance in a lesser amount payable for life and	82
one-half of the allowance continuing after death to the surviving	83
spouse for the life of the spouse;	84

(b) A description of the alternative plans of payment,	85
including all plans described in divisions (B)(2) and (3) of this	86
section, available with the consent of the spouse;	87

(c) That the spouse may consent to another plan of payment	88
and the procedure for giving consent;	89

(d) That consent is irrevocable once notice of consent is	90
filed with the board.	91

Consent shall be valid only if it is signed, in writing, and	92
witnessed by a notary public. The board may waive the requirement	93
of consent if the spouse is incapacitated or cannot be located or	94
for any other reason specified by the board. Consent or waiver is	95
effective only with regard to the spouse who is the subject of the	96
consent or waiver.	97

(2)(3) A member eligible to elect to receive the member's	98
retirement allowance under a plan of payment other than "plan A"	99
shall receive the member's retirement allowance under the plan	100
described in division (B)(3)(4) of this section or one of the	101
following plans:	102

(a) "Plan B," which shall consist of an allowance determined	103
under section 145.33, 145.331, or 145.34 of the Revised Code;	104

(b) "Plan C," which shall consist of the actuarial equivalent	105
of the member's retirement allowance determined under section	106
145.33, 145.331, or 145.34 of the Revised Code in a lesser amount	107
payable for life and one-half or some other portion of the	108
allowance continuing after death to the member's sole surviving	109
beneficiary designated at the time of the member's retirement,	110
provided that the amount payable to the beneficiary does not	111
exceed the amount payable to the member;	112

(c) "Plan D," which shall consist of the actuarial equivalent	113
of the member's retirement allowance determined under section	114
145.33, 145.331, or 145.34 of the Revised Code in a lesser amount	115
payable for life and continuing after death to a surviving	116
beneficiary designated at the time of the member's retirement;	117

(d) "Plan E," which shall consist of the actuarial equivalent	118
of the member's retirement allowance determined under section	119
145.33, 145.331, or 145.34 of the Revised Code in a lesser amount	120
payable for a certain period from the member's retirement date as	121
elected by the member and approved by the retirement board, and on	122
the member's death before the expiration of that certain period	123
the member's lesser retirement allowance payable for the remainder	124
of that period to the member's surviving designated beneficiary	125
nominated by written designation filed with the retirement board.	126

(e) "Plan F," which shall consist of the actuarial equivalent	127
of the member's retirement allowance determined under section	128
145.33, 145.331, or 145.34 of the Revised Code in a lesser amount	129
payable for life and continuing after death to each of two or more	130
surviving beneficiaries designated at the time of the member's	131
retirement, in such portion as specified at retirement.	132

Should the nominated beneficiary designated in writing die	133
prior to the expiration of the guarantee period, then for the	134
purpose of completing payment for the remainder of the guarantee	135
period, the present value of such payments shall be paid to the	136
estate of the beneficiary last receiving.	137

(3)(4)(a) Beginning on a date selected by the retirement	138
board, which shall be not later than July 1, 2004, a member may	139
elect to receive a retirement allowance under a plan of payment	140
consisting of both a lump sum in an amount the member designates	141
that constitutes a portion of the member's retirement allowance	142
under a plan described in division (B) of this section and the	143
remainder as a monthly allowance under that plan.	144

The total amount paid as a lump sum and a monthly benefit	145
shall be the actuarial equivalent of the amount that would have	146
been paid had the lump sum not been selected.	147

(b) The lump sum designated by a member shall be not less	148
than six times and not more than thirty-six times the monthly	149
amount that would be payable to the member under the plan of	150
payment elected under division (B)(3)(4)(a) of this section had	151
the lump sum not been elected and shall not result in a monthly	152
allowance that is less than fifty per cent of that monthly amount.	153

(4)(5) An election under division (B)(2)(3) or (3)(4) of this	154
section shall be made at the time the member makes application for	155
retirement.	156

(5)(6) A member eligible to elect to receive the member's	157
retirement allowance under a plan of payment other than "plan A"	158
because the member is unmarried who fails to make an election on	159
retirement shall receive the member's retirement allowance under	160
"plan B."	161

(C) If the retirement allowances, as a single life annuity or	162
payment plan as provided in this section, due and paid are in a	163
total amount less than (1) the accumulated contributions, and (2)	164
other deposits made by the member as provided by this chapter,	165
standing to the credit of the member at the time of retirement,	166
then the difference between the total amount of the allowances	167
paid and the accumulated contributions and other deposits shall be	168
paid to the beneficiary provided under division (D) of section	169
145.43 of the Revised Code.	170

(D)(1) The death of a spouse or any designated beneficiary	171
following retirement shall cancel any plan of payment to provide	172
continuing lifetime benefits to the spouse or beneficiary and	173
return the retirant to the retirant's single lifetime benefit	174
equivalent, as determined by the board, to be effective the month	175
following receipt by the board of notice of the death.	176

(2) On divorce, annulment, or marriage dissolution, a	177
retirant receiving a retirement allowance under a plan that	178
provides for continuation of all or part of the allowance after	179
death for the lifetime of the retirant's surviving spouse may,	180
with the written consent of the spouse or pursuant to an order of	181
the court with jurisdiction over the termination of the marriage,	182
elect to cancel the plan and receive the member's single lifetime	183
benefit equivalent as determined by the retirement board. The	184
election shall be made on a form provided by the board and shall	185
be effective the month following its receipt by the board.	186

(E) Following a marriage or remarriage, a retirant who is	187
receiving the retirant's retirement allowance under "plan B" may	188
elect a new plan of payment under division (B)(1), (2)(3)(b), or	189
(2)(3)(c) of this section based on the actuarial equivalent of the	190
retirant's single lifetime benefit as determined by the board. The	191
plan shall become effective the first day of the month following	192
receipt by the board of an application on a form approved by the	193
board.	194

(F) Any person who, prior to July 24, 1990, selected an	195
optional plan of payment at retirement that provided for a return	196
to the single life benefit after the designated beneficiary's	197
death shall have the retirant's benefit adjusted to the optional	198
plan equivalent without such provision.	199

(G) A retirant's receipt of the first month's retirement	200
allowance constitutes the retirant's final acceptance of the plan	201
of payment and may be changed only as provided in this chapter.	202

Sec. 3105.80.  As used in this section and sections 3105.81	203
to 3105.90 of the Revised Code:	204

(A) "Alternate payee" means a party in an action for divorce,	205
legal separation, annulment, or dissolution of marriage who is to	206
receive one or more payments from a benefit or lump sum payment	207
under an order issued under section 3105.171 or 3105.65 of the	208
Revised Code that is in compliance with sections 3105.81 to	209
3105.90 of the Revised Code.	210

(B) "Benefit" means a periodic payment under a pension,	211
annuity, allowance, or other type of benefit, other than a	212
survivor benefit, that has been or may be granted to a participant	213
under sections 742.01 to 742.61 or Chapter 145., 3307., 3309., or	214
5505. of the Revised Code or any payment that is to be made under	215
a contract a participant has entered into for the purposes of an	216
alternative retirement plan. "Benefit" also includes all amounts	217
received or to be received under a plan of payment elected under	218
division (B)(3)(4) of section 145.46, division (B) of section	219
3307.60, or division (B)(3)(4) of section 3309.46 of the Revised	220
Code.	221

(C) "Lump sum payment" means a payment of accumulated	222
contributions standing to a participant's credit under sections	223
742.01 to 742.61 or Chapter 145., 3307., 3309., or 5505. of the	224
Revised Code or pursuant to a contract a participant has entered	225
into for the purposes of an alternative retirement plan and any	226
other payment made or that may be made to a participant under	227
those sections or chapters on withdrawal of a participant's	228
contributions. "Lump sum payment" includes a lump sum payment	229
under section 145.384, 742.26, 3307.352, or 3309.344 of the	230
Revised Code.	231

(D) "Participant" means a member, contributor, retirant, or	232
disability benefit recipient who is or will be entitled to a	233
benefit or lump sum payment under sections 742.01 to 742.61 or	234
Chapter 145., 3307., 3309., or 5505. of the Revised Code or an	235
academic or administrative employee who elects to participate in	236
an alternative retirement plan under Chapter 3305. of the Revised	237
Code.	238

(E) "Personal history record" has the same meaning as in	239
section 145.27, 742.41, 3305.20, 3307.20, 3309.22, and 5505.04 of	240
the Revised Code.	241

(F) "Public retirement program" means the public employees	242
retirement system, Ohio police and fire pension fund, school	243
employees retirement system, state teachers retirement system,	244
state highway patrol retirement system, or an entity providing an	245
alternative retirement plan under Chapter 3305. of the Revised	246
Code.	247

Sec. 3307.60.  (A) Upon application for retirement as	248
provided in section 3307.58 or 3307.59 of the Revised Code, the	249
retirant may elect a plan of payment under this division or, on	250
and after the date specified in division (B) of this section, a	251
plan of payment under that division. Under this division, the	252
retirant may elect to receive a single lifetime benefit, or may	253
elect to receive the actuarial equivalent of the retirant's	254
benefit in a lesser amount, payable for life, and continuing after	255
death to a beneficiary under one of the following optional plans:	256

(1) Option 1. The retirant's lesser benefit shall be paid for	257
life to the sole beneficiary named at retirement.	258

(2) Option 2. Some other portion of the retirant's benefit	259
shall be paid for life to the sole beneficiary named at	260
retirement. The beneficiary's monthly amount shall not exceed the	261
monthly amount payable to the retirant during the retirant's	262
lifetime.	263

(3) Option 3. The retirant's lesser benefit established as	264
provided under option 1 or option 2 shall be paid for life to the	265
sole beneficiary named at retirement, except that in the event of	266
the death of the sole beneficiary or termination of a marital	267
relationship between the retirant and the sole beneficiary the	268
retirant may elect to return to a single lifetime benefit	269
equivalent as determined by the state teachers retirement board,	270
if, in the case of termination of a marital relationship, the	271
election is made with the written consent of the beneficiary or	272
pursuant to an order of the court with jurisdiction over	273
termination of the marital relationship.	274

(4) Option 4. A portion of the retirant's lesser benefit	275
shall be paid for life to each of two or more beneficiaries named	276
at retirement, in such portion as specified at retirement.	277

(5) Option 5. Upon the retirant's death before the expiration	278
of a certain period from the retirement date and elected by the	279
retirant, and approved by the board, the retirant's benefit shall	280
be continued for the remainder of such period to the beneficiary.	281
Monthly benefits shall not be paid to joint beneficiaries, but	282
they may receive the present value of any remaining payments in a	283
lump sum settlement. If all beneficiaries die before the	284
expiration of the certain period, the present value of all	285
payments yet remaining in such period shall be paid to the estate	286
of the beneficiary last receiving.	287

(5)(6) Option 56. A plan of payment established by the state	288
teachers retirement board combining any of the features of options	289
1, 2, and 45.	290

(B) Beginning on a date selected by the state teachers	291
retirement board, which shall be not later than July 1, 2004, a	292
retirant may elect, in lieu of a plan of payment under division	293
(A) of this section, a plan consisting of both of the following:	294

(1) A lump sum in an amount the member designates that	295
constitutes a portion of the member's single lifetime benefit;	296

(2) Either of the following:

297

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

298

(b) The actuarial equivalent of the remainder of the	299
retirant's benefit in a lesser amount, payable for life, and	300
continuing after death to a beneficiary under one of the options	301
described in divisions (A)(1) to (5) of this section.	302

In the event of the death of the sole beneficiary or	303
termination of a marital relationship between the retirant and the	304
sole beneficiary, the retirant may elect to receive the actuarial	305
equivalent of the remainder of the retirant's single lifetime	306
benefit except that, in the case of termination of a marital	307
relationship, the election may be made only with the written	308
consent of the beneficiary or pursuant to an order of the court	309
with jurisdiction over termination of the marital relationship.	310

The amount designated by the member under division (B)(1) of	311
this section shall be not less than six times and not more than	312
thirty-six times the monthly amount that would be payable to the	313
member as a single lifetime benefit and shall not result in a	314
monthly allowance that is less than fifty per cent of that amount.	315

(C) Until the first payment is made to a former member under	316
section 3307.58 or 3307.59 of the Revised Code, the former member	317
may change the selection of a plan of payment.	318

(D)(1) If a deceased member was eligible for but had not yet	319
been awarded a service retirement benefit under section 3307.58 or	320
3307.59 of the Revised Code at the time of death, option 1 as	321
provided for in division (A)(1) of this section shall be paid to	322
the spouse or other sole dependent beneficiary.	323

(2) Beginning on a date selected by the board, which shall be	324
not later than July 1, 2004, the spouse or sole beneficiary may	325
elect, in lieu of option 1, a plan of payment consisting of both	326
of the following:	327

(a) A lump sum in an amount the spouse or other sole	328
dependent beneficiary designates that constitutes a portion of the	329
retirant's single life annuity;	330

(b) The actuarial equivalent of the remainder of the	331
retirant's single life annuity paid in a lesser amount for life to	332
the spouse or other sole dependent beneficiary.	333

The amount designated by the spouse or other sole dependent	334
beneficiary under division (D)(2)(a) of this section shall be not	335
less than six times and not more than thirty-six times the monthly	336
amount that would be payable as the retirant's single life annuity	337
and shall not result in a monthly allowance that is less than	338
fifty per cent of that monthly amount.	339

(E) If the total benefit paid under this section is less than	340
the balance in the teachers' savings fund, the difference shall be	341
paid to the beneficiary provided under division (D) of section	342
3307.562 of the Revised Code.	343

(F) In the case of a retirant who elected an optional plan	344
prior to September 15, 1989:	345

(1) The death of the spouse or other designated beneficiary	346
following retirement shall, at the election of the retirant,	347
cancel any optional plan selected at retirement to provide	348
continuing lifetime benefits to the spouse or other beneficiary	349
and return the retirant to a single lifetime benefit equivalent as	350
determined by the board.	351

(2) A divorce, annulment, or marriage dissolution shall, at	352
the election of the retirant, cancel any optional plan selected at	353
retirement to provide continuing lifetime benefits to the spouse	354
as designated beneficiary and return the retirant to a single	355
lifetime benefit equivalent as determined by the board if the	356
election is made with the written consent of the beneficiary or	357
pursuant to an order of a court of common pleas or the court of	358
another state with jurisdiction over the termination of the	359
marriage.	360

(G) Following marriage or remarriage, a retirant may elect a	361
new optional plan of payment based on the actuarial equivalent of	362
the retirant's single lifetime benefit, as determined by the	363
board, except that if the retirant is receiving a retirement	364
allowance under an optional plan that provides for continuation of	365
benefits after death to a former spouse, the retirant may elect a	366
new optional plan of payment only with the written consent of the	367
former spouse or pursuant to an order of the court with	368
jurisdiction over the termination of the marriage. Such plan shall	369
become effective the first of the month following an application	370
on a form approved by the board.	371

(H)(1) Unless one of the following occursExcept as otherwise	372
provided in this division, an application for service retirement	373
made pursuant to section 3307.58 or 3307.59 of the Revised Code by	374
a married person shall be considered an election of a benefit	375
under option 2 as provided for in division (A)(2) of this section	376
under which one-half of the lesser benefit payable during the life	377
of the retirant will be paid after death to the retirant's spouse	378
for life as sole beneficiary. The exceptions are as follows:	379

(a) The retirant selects an optional plan under division (A)	380
of this section providing for payment after death to the	381
retirant's spouse for life as sole beneficiary of more than	382
one-half of the lesser benefit payable during the life of the	383
retirant.	384

(b) Prior to the effective date of the member's retirement, a	385
court issued an order under section 3105.171 or 3105.65 of the	386
Revised Code, or a comparable order dividing marital property	387
under the laws of another state, requiring a plan of payment that	388
provides for payment in a specified amount continuing after the	389
retirant's death to a former spouse.	390

(c) The retirant submits to the retirement board a written	391
statement signed by the spouse attesting that the spouse consents	392
to the retirant's election to receive a single lifetime annuity or	393
a payment under an optional benefit plan under which after the	394
death of the retirant the surviving spouse will receive less than	395
one-half of the lesser benefit payable during the life of the	396
retirant.	397

(2) An application for retirement shall include an	398
explanation of all of the following:	399

(a) That, if the member is married, unless the spouse	400
consents to another plan of payment or there is a court order	401
dividing marital property that provides for payment in a specified	402
amount, the member's retirement allowance will be paid under	403
"option 2" as provided for in division (A)(2) of this section and	404
consist of the actuarial equivalent of the member's retirement	405
allowance in a lesser amount payable for life and one-half of the	406
lesser allowance continuing after death to the surviving spouse	407
for the life of the spouse;	408

(b) A description of the alternative plans of payment	409
available with the consent of the spouse;	410

(c) That the spouse may consent to another plan of payment	411
and the procedure for giving consent;	412

(d) That consent is irrevocable once notice of consent is	413
filed with the board.	414

Consent shall be valid only if it is signed, in writing, and	415
witnessed by a notary public.	416

(3) If the retirant does not select an optional plan of	417
payment as described in division (H)(1)(a) of this section, no	418
court has ordered a plan of payment described in division	419
(H)(1)(b) of this section, and the board does not receive the	420
written statement provided for in division (H)(1)(b)(c) of this	421
section, itthe board shall determine and pay the retirement	422
allowance in accordance with this division, except that the board	423
may provide by rule for waiver by the board of the statement and	424
payment of the benefits other than in accordance with this	425
division or payment under section 3307.56 of the Revised Code if	426
the retirant is unable to obtain the statement due to absence or	427
incapacity of the spouse or other cause specified by the board.	428

(I) For the purpose of determining actuarial equivalence	429
under this section, on the advice of an actuary employed by the	430
board, the board shall adopt mortality tables that may take into	431
consideration the membership experience of the state teachers	432
retirement system and may also include the membership experience	433
of the public employees retirement system and the school employees	434
retirement system.	435

Sec. 3307.67.  (A) The state teachers retirement board shall	436
annually increase each allowance or benefit payable under sections	437
3307.50 to 3307.79 of the Revised Code by three per cent, except	438
that no allowance or benefit shall exceed the limit established by	439
section 415 of the "Internal Revenue Code of 1986," 100 Stat.	440
2085, 26 U.S.C.A. 415, as amended.	441

The first increase is payable to all persons becoming	442
eligible after June 30, 1971, upon such persons receiving an	443
allowance or benefit for twelve months. The increased amount is	444
payable for the ensuing twelve-month period or until the next	445
increase is granted under this section, whichever is later.	446
Subsequent increases shall be determined from the date of the	447
first increase paid to the former member in the case of an	448
allowance being paid a beneficiary under an option, or from the	449
date of the first increase to the survivor first receiving an	450
allowance or benefit in the case of an allowance or benefit being	451
paid to the subsequent survivors of the former member.	452

The date of the first increase under this section becomes the	453
anniversary date for any future increases.	454

The allowance or benefit used in the first calculation of an	455
increase under this section shall remain as the base for all	456
future increases, unless a new base is established.	457

(B) If payment of a portion of a benefit is made to an	458
alternate payee under section 3307.371 of the Revised Code,	459
increases under this section granted while the order is in effect	460
shall be apportioned between the alternate payee and the retirant	461
or another beneficiary in the same proportion that the amount	462
being paid to the alternate payee bears to the amount paid to the	463
retirant or other beneficiary.	464

(C) The board shall make all rules necessary to carry out	465
this section.	466

Sec. 3309.374.  (A) The school employees retirement board	467
shall annually increase each allowance, pension, or benefit	468
payable under this chapter by three per cent, except that no	469
allowance, pension, or benefit shall exceed the limit established	470
by section 415 of the "Internal Revenue Code of 1986," 100 Stat.	471
2085, 26 U.S.C.A. 415, as amended.	472

The first increase is payable to all persons becoming	473
eligible after June 30, 1971, upon such persons receiving an	474
allowance, pension, or benefit for twelve months.	475

The increased amount is payable for the ensuing twelve-month	476
period or until the next increase is granted under this section,	477
whichever is later. Subsequent increases shall be determined from	478
the date of the first increase paid to the former member in the	479
case of an allowance being paid a beneficiary under an option, or	480
from the date of the first increase to the survivor first	481
receiving an allowance or benefit in the case of an allowance or	482
benefit being paid to the subsequent survivors of the former	483
member.	484

The date of the first increase under this section becomes the	485
anniversary date for any future increases.	486

The allowance or benefit used in the first calculation of an	487
increase under this section shall remain as the base for all	488
future increases, unless a new base is established. Any increase	489
resulting from payment of a recalculated benefit under Section 3	490
of Substitute Senate Bill No. 270 of the 123rd general assembly	491
shall be included in the calculation of future increases under	492
this section.	493

(B) If payment of a portion of a benefit is made to an	494
alternate payee under section 3309.671 of the Revised Code,	495
increases under this section granted while the order is in effect	496
shall be apportioned between the alternate payee and the retirant	497
or another beneficiary in the same proportion that the amount	498
being paid to the alternate payee bears to the amount paid to the	499
retirant or other beneficiary.	500

(C) The board shall make all rules necessary to carry out	501
this section.	502

Sec. 3309.46.  (A) The retirement allowance calculated under	503
section 3309.36, 3309.38, or 3309.381 of the Revised Code shall be	504
paid as provided in this section. If the member is eligible to	505
elect a plan of payment under this section, the election shall be	506
made on the application for retirement. A plan of payment elected	507
under this section shall be effective only if it is certified by	508
the actuary engaged by the school employees retirement board to be	509
the actuarial equivalent of the member's retirement allowance and	510
is approved by the retirement board.	511

(B)(1) Unless the member is eligible to elect another plan of	512
paymentExcept as otherwise provided in this division, a member	513
who retires under section 3309.36, 3309.38, or 3309.381 of the	514
Revised Code shall receive a retirement allowance under "plan A,"	515
which shall consist of the actuarial equivalent of the member's	516
retirement allowance determined under section 3309.36, 3309.38, or	517
3309.381 of the Revised Code in a lesser amount payable for life	518
and one-half of such allowance continuing after death to the	519
member's surviving spouse for the life of the spouse. The	520
exceptions are as follows:	521

(a) A member may elect to receive a retirement allowance	522
under a plan of payment other than "plan A" if the member is not	523
married or either the member's spouse consents in writing to the	524
member's election to a plan of payment other than "plan A" or the	525
board waives the requirement that the spouse consent.	526

(b) Prior to the effective date of the member's retirement, a	527
court issued an order under section 3105.171 or 3105.65 of the	528
Revised Code, or a comparable order dividing marital property	529
under the laws of another state, requiring a plan of payment that	530
provides for payment in a specified amount continuing after the	531
member's death to a former spouse.	532

(2) An application for retirement shall include an	533
explanation of all of the following:	534

(a) That, if the member is married, unless the spouse	535
consents to another plan of payment or there is a court order	536
dividing marital property that provides for payment in a specified	537
amount, the member's retirement allowance will be paid under "plan	538
A," which consists of the actuarial equivalent of the member's	539
retirement allowance in a lesser amount payable for life and	540
one-half of the allowance continuing after death to the surviving	541
spouse for the life of the spouse;	542

(b) A description of the alternative plans of payment,	543
including all plans described in divisions (B)(2)(3) and (3)(4) of	544
this section, available with the consent of the spouse;	545

(c) That the spouse may consent to another plan of payment	546
and the procedure for giving consent;	547

(d) That consent is irrevocable once notice of consent is	548
filed with the board.	549

Consent shall be valid only if it is in writing, signed by	550
the spouse, and witnessed by an employee of the school employees	551
retirement system or a notary public. The board may waive the	552
requirement of consent if the spouse is incapacitated or cannot be	553
located or for any other reason specified by the board. Consent or	554
waiver is effective only with regard to the spouse who is the	555
subject of the consent or waiver.	556

(2)(3) A member eligible to elect to receive a retirement	557
allowance under a plan of payment other than "plan A" shall	558
receive the retirement allowance under the plan described in	559
division (B)(3)(4) of this section or one of the following plans:	560

(a) "Plan B," which shall consist of an allowance determined	561
under section 3309.36, 3309.38, or 3309.381 of the Revised Code;	562

(b) "Plan C," which shall consist of the actuarial equivalent	563
of the member's retirement allowance determined under section	564
3309.36, 3309.38, or 3309.381 of the Revised Code in a lesser	565
amount payable for life and one-half or some other portion of the	566
allowance continuing after death to the member's sole surviving	567
beneficiary designated at the time of the member's retirement,	568
provided that the amount payable to the beneficiary does not	569
exceed the amount payable to the member;	570

(c) "Plan D," which shall consist of the actuarial equivalent	571
of the member's retirement allowance determined under section	572
3309.36, 3309.38, or 3309.381 of the Revised Code in a lesser	573
amount payable for life and continuing after death to a surviving	574
designated beneficiary designated at the time of the member's	575
retirement;	576

(d) "Plan E," which shall consist of the actuarial equivalent	577
of the member's retirement allowance determined under section	578
3309.36, 3309.38, or 3309.381 of the Revised Code in a lesser	579
amount payable for a certain period from the member's retirement	580
date as elected by the member and approved by the retirement	581
board, and on the member's death before the expiration of that	582
certain period, the member's lesser retirement allowance continued	583
for the remainder of that period to, and in such order, the	584
beneficiaries as the member has nominated by written designation	585
and filed with the retirement board.	586

(e) "Plan F," which shall consist of the actuarial equivalent	587
of the member's retirement allowance determined under section	588
3309.36, 3309.38, or 3309.381 of the Revised Code in a lesser	589
amount payable for life and continuing after death to each of two	590
or more surviving beneficiaries designated at the time of the	591
member's retirement, in such portion as specified at retirement.	592

Monthly benefits shall not be paid to joint beneficiaries,	593
but they may receive the present value of any remaining payments	594
in a lump sum settlement. If all beneficiaries die before the	595
expiration of the certain period, the present value of all such	596
payments yet remaining in such period shall be paid to the estate	597
of the beneficiary last receiving.	598

(3)(4)(a) Beginning on a date selected by the board, which	599
shall be not later than July 1, 2004, a member may elect, in lieu	600
of a plan of payment under division (B)(1) or (2)(3) of this	601
section, a plan consisting of both a lump sum in an amount the	602
member designates that constitutes a portion of the retirement	603
allowance payable under a plan described in division (B)(1) or	604
(2)(3) of this section and the remainder of the allowance payable	605
under that plan in monthly payments.	606

The total amount paid as a lump sum and a monthly benefit	607
shall be the actuarial equivalent of the amount that would have	608
been paid had the lump sum not been selected.	609

(b) The lump sum amount designated by the member shall be not	610
less than six times and not more than thirty-six times the monthly	611
amount that would be payable to the member under the plan of	612
payment elected under this section had the lump sum not been	613
elected and shall not result in a monthly benefit that is less	614
than fifty per cent of that amount.	615

(4)(5) An election under division (B)(2)(3) or (3)(4) of this	616
section shall be made at the time the member makes application for	617
retirement.	618

(5)(6) A member eligible to elect to receive a retirement	619
allowance under a plan of payment other than "plan A" because the	620
member is unmarried who fails to make an election on retirement	621
shall receive a retirement allowance under "plan B."	622

(C) Until the first payment of any retirement allowance is	623
made, as provided in sections 3309.36, 3309.38, or 3309.381 of the	624
Revised Code, a member may change the member's election of a	625
payment plan if the election is made in accordance with and is	626
consistent with division (B) of this section.	627

(D) If the retirement allowances due and paid under the above	628
provisions of this section are in a total amount less than (1) the	629
accumulated contributions, (2) the deposits for additional credit	630
as provided by section 3309.31 of the Revised Code, (3) the	631
deposits for additional annuities as provided by section 3309.47	632
of the Revised Code, (4) the deposits for repurchase of service	633
credit as provided by section 3309.26 of the Revised Code, (5) the	634
accumulated contributions provided by section 3309.65 of the	635
Revised Code, (6) the deposits for purchase of military service	636
credit provided by section 3309.021 or 3309.022 of the Revised	637
Code, and (7) the deposits for the purchase of service credit	638
provided by section 3309.73 of the Revised Code, standing to the	639
credit of the member at the time of retirement, then the	640
difference between the total amount of the allowances paid and the	641
accumulated contributions and other deposits shall be paid to the	642
beneficiary provided under division (D) of section 3309.44 of the	643
Revised Code.	644

(E)(1) The death of a spouse or any other designated	645
beneficiary following the member's retirement shall cancel any	646
plan of payment to provide continuing lifetime benefits to the	647
spouse or designated beneficiary and the retirant shall receive	648
the retirant's single lifetime retirement allowance equivalent as	649
determined by the board.	650

(2) On divorce, annulment, or marriage dissolution, a	651
retirant receiving a retirement allowance under a plan of payment	652
that provides for continuation of all or part of the allowance	653
after death for the lifetime of the member's surviving spouse may	654
elect to cancel the plan and receive the member's single lifetime	655
retirement allowance equivalent as determined by the retirement	656
board, except that in the case of a member who retires on or after	657
July 24, 1990, the election may be made only with the written	658
consent of the spouse or pursuant to an order of the court with	659
jurisdiction over the termination of the marriage. The election	660
shall be made on a form provided by the board and shall be	661
effective the month following its receipt by the board.	662

(3) Following marriage or remarriage, a retirant who is	663
receiving a benefit pursuant to "plan B" may elect a new plan of	664
payment under division (B)(1), (2)(3)(b), or (2)(3)(c) of this	665
section based on the actuarial equivalent of the member's single	666
lifetime retirement allowance as determined by the board. The plan	667
shall become effective the first day of the month following	668
receipt by the board of an application on a form approved by the	669
board.	670

Section 2. That existing sections 145.323, 145.46, 3105.80,	671
3307.60, 3307.67, 3309.374, and 3309.46 of the Revised Code are	672
hereby repealed.	673