As Reported by the Senate Health, Human Services and Aging Committee

125th General Assembly Regular Session 2003-2004

Sub. H. B. No. 98

Representatives Willamowski, Hughes, Gibbs, Allen, Otterman, J. Stewart, Schneider, Schmidt, Reidelbach, Buehrer, Cates, Clancy, Core, Distel, Domenick, Fessler, Flowers, Hagan, Harwood, Hollister, Key, Latta, McGregor, Niehaus, Price, Seitz 

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A BILL

To amend sections 145.323, 145.46, 145.92, 742.3711,

1

742.3716, 742.3717, 3105.80, 3105.82, 3307.60,

2

3307.67, 3307.87, 3309.374, 3309.46, 3309.92,

3

5505.162, and 5505.174 of the Revised Code to make

4

changes to the optional benefit plans for

5

retirants and the cost-of-living increase in the

6

state retirement systems.

7

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

Section 1. That sections 145.323, 145.46, 145.92, 742.3711,	8
742.3716, 742.3717, 3105.80, 3105.82, 3307.60, 3307.67, 3307.87,	9
3309.374, 3309.46, 3309.92, 5505.162, and 5505.174 of the Revised	10
Code be amended to read as follows:	11

Sec. 145.323.  (A) The public employees retirement board	12
shall annually increase each allowance, pension, or benefit	13
payable under this chapter by three per cent, except that no	14
allowance, pension, or benefit shall exceed the limit established	15
by section 415 of the "Internal Revenue Code of 1986," 100 Stat.	16
2085, 26 U.S.C.A. 415, as amended.	17

The first increase is payable to all persons becoming	18
eligible after June 30, 1971, upon such persons receiving an	19
allowance for twelve months. The increased amount is payable for	20
the ensuing twelve-month period or until the next increase is	21
granted under this section, whichever is later. Subsequent	22
increases shall be determined from the date of the first increase	23
paid to the former member in the case of an allowance being paid a	24
beneficiary under an option, or from the date of the first	25
increase to the survivor first receiving an allowance or benefit	26
in the case of an allowance or benefit being paid to the	27
subsequent survivors of the former member.	28

The date of the first increase under this section becomes the	29
anniversary date for any future increases.	30

The allowance or benefit used in the first calculation of an	31
increase under this section shall remain as the base for all	32
future increases, unless a new base is established.	33

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

If payment of a portion of a benefit is made to one or more	40
beneficiaries under "plan F" under division (B)(3)(e) of section	41
145.46 of the Revised Code, each increase under this section	42
granted while the plan of payment is in effect shall be divided	43
among the designated beneficiaries in accordance with the portion	44
each beneficiary has been allocated.	45

(C) The board shall make all rules necessary to carry out	46
this section.	47

Sec. 145.46.  (A) A retirement allowance calculated under	48
section 145.33, 145.331, or 145.34 of the Revised Code shall be	49
paid as provided in this section. If the member is eligible to	50
elect a plan of payment under this section, the election shall be	51
made on a form provided by the public employees retirement board.	52
A plan of payment elected under this section shall be effective	53
only if approved by the board, which shall approve it only if it	54
is certified by an actuary engaged by the board to be the	55
actuarial equivalent of the retirement allowance calculated under	56
section 145.33, 145.331, or 145.34 of the Revised Code.	57

(B)(1) Unless the member is eligible to elect another plan of	58
payment(a) Except as provided in divisions (B)(1)(b) and (c) of	59
this section, a member who retires under section 145.32, 145.331,	60
or 145.34 of the Revised Code shall receive a retirement allowance	61
under "plan A," which shall consist of the actuarial equivalent of	62
the member's retirement allowance determined under section 145.33,	63
145.331, or 145.34 of the Revised Code in a lesser amount payable	64
for life and one-half of such allowance continuing after death to	65
the member's surviving spouse for the life of the spouse.	66

(b) A member may elect to receive the member'sa retirement	67
allowance under a plan of payment other than "plan A" if either of	68
the following is the case:	69

(i) The member is not married or either the member's spouse	70
consents in writing to the member's election of a plan of payment	71
other than "plan A" or the board waives the requirement that the	72
spouse consent. An;	73

(ii) A plan of payment providing for payment in a specified	74
portion of the allowance continuing after the member's death to a	75
former spouse is required by a court order issued under section	76
3105.171 or 3105.65 of the Revised Code or the laws of another	77
state regarding division of marital property prior to the	78
effective date of the member's retirement.	79

(c) If a member is subject to division (B)(1)(b)(ii) of this	80
section and the board has received a copy of the order described	81
in that division, the board shall accept the member's election of	82
a plan of payment under this section only if the member complies	83
with both of the following:	84

(i) The member elects a plan of payment that is in accordance	85
with the order described in division (B)(1)(b)(ii) of this	86
section.	87

(ii) If the member is married, the member elects "plan F" and	88
designates the member's current spouse as a beneficiary under that	89
plan unless that spouse consents in writing to not being	90
designated a beneficiary under any plan of payment or the board	91
waives the requirement that the current spouse consent.	92

(2) An application for retirement shall include an	93
explanation of all of the following:	94

(a) That, if the member is married, unless the spouse	95
consents to another plan of payment or there is a court order	96
dividing marital property issued under section 3105.171 or 3105.65	97
of the Revised Code or the laws of another state regarding the	98
division of marital property that provides for payment in a	99
specified amount, the member's retirement allowance will be paid	100
under "plan A," which consists of the actuarial equivalent of the	101
member's retirement allowance in a lesser amount payable for life	102
and one-half of the allowance continuing after death to the	103
surviving spouse for the life of the spouse;	104

(b) A description of the alternative plans of payment,	105
including all plans described in divisions (B)(2) and (3) of this	106
section, available with the consent of the spouse;	107

(c) That the spouse may consent to another plan of payment	108
and the procedure for giving consent;	109

(d) That consent is irrevocable once notice of consent is	110
filed with the board.	111

Consent shall be valid only if it is signed, in writing, and	112
witnessed by a notary public. The board may waive the requirement	113
of consent if the spouse is incapacitated or cannot be located or	114
for any other reason specified by the board. Consent or waiver is	115
effective only with regard to the spouse who is the subject of the	116
consent or waiver.	117

(2)(3) A member eligible to elect to receive the member's	118
retirement allowance under a plan of payment other than "plan A"	119
shall receive the member's retirement allowance under the plan	120
described in division (B)(3)(4) of this section or one of the	121
following plans:	122

(a) "Plan B," which shall consist of an allowance determined	123
under section 145.33, 145.331, or 145.34 of the Revised Code;	124

(b) "Plan C," which shall consist of the actuarial equivalent	125
of the member's retirement allowance determined under section	126
145.33, 145.331, or 145.34 of the Revised Code in a lesser amount	127
payable for life and one-half or some other portion of the	128
allowance continuing after death to the member's sole surviving	129
beneficiary designated at the time of the member's retirement,	130
provided that the amount payable to the beneficiary does not	131
exceed the amount payable to the member;	132

(c) "Plan D," which shall consist of the actuarial equivalent	133
of the member's retirement allowance determined under section	134
145.33, 145.331, or 145.34 of the Revised Code in a lesser amount	135
payable for life and continuing after death to a surviving	136
beneficiary designated at the time of the member's retirement;	137

(d) "Plan E," which shall consist of the actuarial equivalent	138
of the member's retirement allowance determined under section	139
145.33, 145.331, or 145.34 of the Revised Code in a lesser amount	140
payable for a certain period from the member's retirement date as	141
elected by the member and approved by the retirement board, and on	142
the member's death before the expiration of that certain period	143
the member's lesser retirement allowance payable for the remainder	144
of that period to the member's surviving designated beneficiary	145
nominated by written designation filed with the retirement board.	146

Should the nominated beneficiary designated in writing die	147
prior to the expiration of the guarantee period, then for the	148
purpose of completing payment for the remainder of the guarantee	149
period, the present value of such payments shall be paid to the	150
estate of the beneficiary last receiving.	151

(e) "Plan F," which shall consist of the actuarial equivalent	152
of the member's retirement allowance determined under section	153
145.33, 145.331, or 145.34 of the Revised Code in a lesser amount	154
payable to the retirant for life and some portion of the lesser	155
amount continuing after death to two, three, or four surviving	156
beneficiaries designated at the time of the member's retirement.	157
The portion of the lesser allowance that continues after the	158
member's death shall be allocated among the beneficiaries at the	159
time of the member's retirement. If the member elects this plan as	160
required by a court order issued under section 3105.171 or 3105.65	161
of the Revised Code or the laws of another state regarding the	162
division of marital property and compliance with the court order	163
requires the allocation of a portion less than ten per cent to any	164
beneficiary, the member shall allocate a portion less than ten per	165
cent to that beneficiary in accordance with that order. In all	166
other circumstances, no portion allocated under this plan of	167
payment shall be less than ten per cent. The total of the portions	168
allocated shall not exceed one hundred per cent of the member's	169
lesser allowance.	170

(3)(4)(a) Beginning on a date selected by the retirement	171
board, which shall be not later than July 1, 2004, a member may	172
elect to receive a retirement allowance under a plan of payment	173
consisting of both a lump sum in an amount the member designates	174
that constitutes a portion of the member's retirement allowance	175
under a plan described in division (B) of this section and the	176
remainder as a monthly allowance under that plan.	177

The total amount paid as a lump sum and a monthly benefit	178
shall be the actuarial equivalent of the amount that would have	179
been paid had the lump sum not been selected.	180

(b) The lump sum designated by a member shall be not less	181
than six times and not more than thirty-six times the monthly	182
amount that would be payable to the member under the plan of	183
payment elected under division (B)(3)(4)(a) of this section had	184
the lump sum not been elected and shall not result in a monthly	185
allowance that is less than fifty per cent of that monthly amount.	186

(4)(5) An election under division (B)(2)(3) or (3)(4) of this	187
section shall be made at the time the member makes application for	188
retirement.	189

(5)(6) A member eligible to elect to receive the member's	190
retirement allowance under a plan of payment other than "plan A"	191
because the member is unmarried who fails to make an election on	192
retirement shall receive the member's retirement allowance under	193
"plan B."	194

(C) If the retirement allowances, as a single life annuity or	195
payment plan as provided in this section, due and paid are in a	196
total amount less than (1) the accumulated contributions, and (2)	197
other deposits made by the member as provided by this chapter,	198
standing to the credit of the member at the time of retirement,	199
then the difference between the total amount of the allowances	200
paid and the accumulated contributions and other deposits shall be	201
paid to the beneficiary provided under division (D) of section	202
145.43 of the Revised Code.	203

(D)(1) The death of a spouse or any designated beneficiary	204
following retirement shall cancel anythe portion of the plan of	205
payment to provideproviding continuing lifetime benefits to the	206
deceased spouse or deceased designated beneficiary and return the.	207
The retirant toshall receive the actuarial equivalent of the	208
retirant's single lifetime benefit equivalent, as determined by	209
the board, tobased on the number of remaining beneficiaries, with	210
no change in the amount payable to any remaining beneficiary. The	211
change shall be effective the month following receipt by the board	212
of notice of the death.	213

(2) On divorce, annulment, or marriage dissolution, a	214
retirant receiving a retirement allowance under a plan that	215
provides for continuation of all or part of the allowance after	216
death for the lifetime of the retirant's surviving spouse may,	217
with the written consent of the spouse or pursuant to an order of	218
the court with jurisdiction over the termination of the marriage,	219
elect to cancel the portion of the plan andproviding continuing	220
lifetime benefits to that spouse. The retirant shall receive the	221
member'sactuarial equivalent of the retirant's single lifetime	222
benefit equivalent as determined by the retirement board based on	223
the number of remaining beneficiaries, with no change in amount	224
payable to any remaining beneficiary. The election shall be made	225
on a form provided by the board and shall be effective the month	226
following its receipt by the board.	227

(E) Following a marriage or remarriage, aboth of the	228
following apply:	229

(1) A retirant who is receiving the retirant's retirement	230
allowance under "plan B" may elect a new plan of payment under	231
division (B)(1), (2)(3)(b), or (2)(3)(c) of this section based on	232
the actuarial equivalent of the retirant's single lifetime benefit	233
as determined by the board. The	234

(2) A retirant who is receiving a benefit pursuant to a plan	235
of payment providing for payment to a former spouse pursuant to a	236
court order described in division (B)(1)(b)(ii) of this section	237
may elect a new plan of payment under "plan F" based on the	238
actuarial equivalent of the retirant's single lifetime retirement	239
allowance as determined by the board if the new plan of payment	240
elected does not reduce the payment to the former spouse.	241

The plan shall become effective the first day of the month	242
following receipt by the board of an application on a form	243
approved by the board.	244

(F) Any person who, prior to July 24, 1990, selected an	245
optional plan of payment at retirement that provided for a return	246
to the single life benefit after the designated beneficiary's	247
death shall have the retirant's benefit adjusted to the optional	248
plan equivalent without such provision.	249

(G) A retirant's receipt of the first month's retirement	250
allowance constitutes the retirant's final acceptance of the plan	251
of payment and may be changed only as provided in this chapter.	252

Sec. 145.92.  If a member participating in a PERS defined	253
contribution plan is married at the time benefits under the plan	254
are to commence, unless the spouse consents to another plan of	255
payment or the spouse's consent is waived, the member's retirement	256
allowance under the plan shall be paid in a lesser amount payable	257
for life and one-half of the allowance continuing after death to	258
the surviving spouse for the life of the spouse.	259

Consent is valid only if it is evidenced by a written	260
document signed by the member and the signature is witnessed by a	261
notary public. A plan may waive the requirement of consent if the	262
spouse is incapacitated or cannot be located or for any other	263
reason specified by the plan or in rules adopted by the public	264
employees retirement board.	265

A plan shall waive the requirement of consent if a plan of	266
payment that provides for payment in a specified portion of the	267
retirement allowance continuing after the member's death to a	268
former spouse is required by a court order issued under section	269
3105.171 or 3105.65 of the Revised Code or laws of another state	270
regarding division of marital property prior to the effective date	271
of the member's retirement. If a court order requires this plan of	272
payment, the member shall be required to annuitize the member's	273
accumulated amounts in accordance with the order. If the member is	274
married, the plan of payment selected by the member also shall	275
provide for payment to the member's current spouse, unless the	276
current spouse consents in writing to not being designated a	277
beneficiary under the plan of payment or the current spouse's	278
consent is waived by reason other than the court order.	279

Consent or waiver is effective only with regard to the spouse	280
who is the subject of the consent or waiver.	281

Sec. 742.3711.  (A) On application for retirement as provided	282
in section 742.37 of the Revised Code, a member of the fund may	283
elect to receive a retirement allowance payable throughout the	284
member's life, or may elect, on the application for retirement, to	285
receive the actuarial equivalent of the member's retirement	286
allowance in a lesser amount payable for life and continuing after	287
death to a surviving designated beneficiary under one of the	288
following optional plans, provided the amount payable to the	289
beneficiary shall not exceed the amount payable to the retiring	290
member of the fund, and is certified by the actuary engaged by the	291
board of trustees of the Ohio police and fire pension fund to be	292
the actuarial equivalent of the member's retirement allowance and	293
is approved by the board.	294

(1) Option 1. The member's lesser retirement allowance shall	295
be paid for life to the sole beneficiary designated at the time of	296
the member's retirement.	297

(2) Option 2. One-half or some other portion of the member's	298
lesser retirement allowance shall be paid for life to the sole	299
beneficiary designated at the time of the member's retirement.	300

(3) Option 3. Upon the member's death before the expiration	301
of a certain period from the retirement date and elected by the	302
member and approved by the retirement board, the member's lesser	303
retirement allowance shall be continued for the remainder of that	304
period to the beneficiary the member has nominated by written	305
designation and filed with the retirement board.	306

Should the nominated beneficiary designated in writing become	307
deceased prior to the expiration of the guarantee period, then for	308
the purpose of completing payment for the remainder of the	309
guarantee period, the present value of such payments shall be paid	310
to the estate of the beneficiary last receiving.	311

(4) Option 4. The member's lesser retirement allowance or a	312
portion of the lesser retirement allowance shall be paid for life	313
to two, three, or four surviving beneficiaries designated at the	314
time of the member's retirement, in such portions as specified at	315
retirement. If the member elects this plan as required by a court	316
order issued under section 3105.171 or 3105.65 of the Revised Code	317
or the laws of another state regarding the division of marital	318
property and compliance with the court order requires the	319
allocation of a portion less than ten per cent to any beneficiary,	320
the member shall allocate a portion less than ten per cent to that	321
beneficiary in accordance with that order. In all other	322
circumstances, no portion allocated under this plan of payment	323
shall be less than ten per cent. The total of the portions	324
allocated shall not exceed one hundred per cent of the member's	325
lesser allowance.	326

(B)(1) The death of a spouse nominated as beneficiary or the	327
death of any other nominated beneficiary following a member's	328
retirement or election under section 742.44 of the Revised Code to	329
participate in the deferred retirement option plan shall cancel	330
anythe portion of the optional plan of payment to provide	331
providing continuing lifetime benefits to suchthe deceased	332
nominated beneficiary and return the. The member of the fund to	333
shall receive the actuarial equivalent of the member's single	334
lifetime benefit equivalent, as determined by the board, tobased	335
on the number of remaining beneficiaries, with no change in the	336
amount payable to any remaining beneficiary. The change shall be	337
effective the month following receipt by the board of notice of	338
the death.	339

(2) On divorce, annulment, or marriage dissolution, a member	340
receiving a retirement allowance under a plan that provides for	341
continuation of all or part of the allowance after death for the	342
lifetime of the member's surviving spouse may, with the written	343
consent of the spouse or pursuant to an order of the court with	344
jurisdiction over the termination of the marriage, elect to cancel	345
the portion of the plan andproviding continuing lifetime benefits	346
to that spouse. The member shall receive the actuarial equivalent	347
of the member's single lifetime benefit equivalent as determined	348
by the board based on the number of remaining beneficiaries, with	349
no change in amount payable to any remaining beneficiary. The	350
election shall be made on a form provided by the board and shall	351
be effective the month following its receipt by the board.	352

(C) Following marriage or remarriage, aboth of the following	353
apply:	354

(1) A member of the fund receiving a pension under section	355
742.37 or 742.39 of the Revised Code may elect not later than one	356
year after the date of marriage or remarriage a new optional plan	357
of payment based on the actuarial equivalent of the member's	358
single lifetime benefit as determined by the board. The	359

(2) If a member is receiving a benefit pursuant to a plan of	360
payment providing for payment to a former spouse pursuant to a	361
court order described in division (D)(1)(c) of this section and	362
the board has received a copy of the order described in that	363
division, the member may elect a new plan of payment under "option	364
4" based on the actuarial equivalent of the retirant's single	365
lifetime retirement allowance as determined by the board if the	366
new plan of payment elected does not reduce the payment to the	367
former spouse.	368

The plan and the member's lesser retirement allowance shall	369
become effective on the date the election is made on a form	370
approved by the board.	371

(D)(1) Unless one of the following occurs, an application for	372
retirement by a married person shall be considered an election of	373
a benefit under option 2 as provided for in division (A)(2) of	374
this section under which one-half of the lesser retirement	375
allowance payable during the life of the retirant will be paid	376
after death to the retirant's spouse for life as sole beneficiary:	377

(a) The retirant selects an optional plan under division (A)	378
of this section providing for payment after death to the	379
retirant's spouse for life as sole beneficiary of more than	380
one-half of the lesser retirement allowance payable during the	381
life of the retirant;	382

(b) The retirant submits to the retirement board a written	383
statement signed by the spouse attesting that the spouse consents	384
to the retirant's election to receive a single lifetime retirement	385
allowance or a payment under an optional benefit plan under which	386
after the death of the retirant the surviving spouse will receive	387
less than one-half of the lesser retirement allowance payable	388
during the life of the retirant;	389

(c) A plan of payment providing for payment in a specified	390
amount continuing after the retirant's death to a former spouse is	391
required by a court order issued prior to the effective date of	392
the retirant's retirement under section 3105.171 or 3105.65 of the	393
Revised Code or the laws of another state regarding division of	394
marital property.	395

(d) If a retirant is subject to division (D)(1)(c) of this	396
section and the board has received a copy of the order described	397
in that division, the board shall accept the retirant's election	398
of a plan of payment under this section only if the retirant	399
complies with both of the following:	400

(i) The retirant elects a plan of payment that is in	401
accordance with the order described in division (D)(1)(c) of this	402
section.	403

(ii) If the retirant is married, the retirant elects "option	404
4" and designates the retirant's current spouse as a beneficiary	405
under that plan unless that spouse consents in writing to not	406
being designated a beneficiary under any plan of payment or the	407
board waives the requirement that the current spouse consent.	408

(2) An application for retirement shall include an	409
explanation of all of the following:	410

(a) That, if the member is married, unless the spouse	411
consents to another plan of payment or there is a court order	412
dividing marital property issued under section 3105.171 or 3105.65	413
of the Revised Code or the laws of another state regarding the	414
division of marital property that provides for payment in a	415
specified amount, the member's retirement allowance will be paid	416
under "option 2" and consist of the actuarial equivalent of the	417
member's retirement allowance in a lesser amount payable for life	418
and one-half of the lesser allowance continuing after death to the	419
surviving spouse for the life of the spouse;	420

(b) A description of the alternative plans of payment	421
available with the consent of the spouse;	422

(c) That the spouse may consent to another plan of payment	423
and the procedure for giving consent;	424

(d) That consent is irrevocable once notice of consent is	425
filed with the board.	426

Consent shall be valid only if it is signed, in writing, and	427
witnessed by an employee of the board or a notary public.	428

(3) If the retirant does not select an optional plan as	429
described in division (D)(1)(a) of this section and the board does	430
not receive the written statement provided for in division	431
(D)(1)(b) of this section, it shall determine and pay the	432
retirement allowance in accordance with division (A)(2) of this	433
section, except that the board may provide by rule for waiver by	434
the board of the statement and payment of the allowance other than	435
in accordance with division (A)(2) of this section if the retirant	436
is unable to obtain the statement due to absence or incapacity of	437
the spouse or other cause specified by the board.	438

(E) A member of the fund who has elected an optional plan	439
under this section or section 742.3715 of the Revised Code may,	440
with the consent of the designated beneficiary, cancel the	441
optional plan and receive the retirement allowance payable	442
throughout life the member would have received had the member not	443
elected the optional plan, if the member makes a request to cancel	444
the optional plan not later than one year after the later of	445
September 9, 1988, or the date on which the member first receives	446
a payment under this section or section 742.3715 of the Revised	447
Code. Cancellation of the optional plan shall be effective the	448
month after acceptance of the request by the trustees of the fund.	449
No payment or adjustment shall be made in the retirement allowance	450
payable throughout the member's life to compensate for the lesser	451
allowance the member received under the optional plan.	452

The request to cancel the optional plan shall be made on a	453
form provided by the fund and shall be valid only if the completed	454
form includes a signed statement of the designated beneficiary's	455
understanding of and consent to the cancellation. The signature	456
shall be verified by the trustees of the fund prior to their	457
acceptance of the cancellation.	458

(F) Any option elected and payments made under this section	459
shall be in addition to any benefit payable under divisions (D),	460
(E), and (F) of section 742.37 of the Revised Code.	461

(G) A person is eligible to receive a benefit increase under	462
this division if the person is receiving a retirement allowance or	463
benefit under an optional plan elected under this section or	464
section 742.3715 of the Revised Code based on an award made prior	465
to July 24, 1986. A person is not eligible to receive an increase	466
under this division if the person is receiving a pension or	467
benefit in accordance with rules in force on April 1, 1947, that	468
govern the granting of pensions and benefits and that provide an	469
increase in the original pension or benefit from time to time	470
pursuant to changes in the salaries of active members.	471

The board shall annually increase all benefits payable under	472
this section or section 742.3715 of the Revised Code to eligible	473
persons by the actuarial equivalent of three hundred sixty	474
dollars, except that no benefit shall exceed the limit established	475
by section 415 of the "Internal Revenue Code of 1986," 100 Stat.	476
2085, 26 U.S.C.A. 415, as amended.	477

The first increase is payable to all eligible persons on July	478
1, 1988. The increase is payable for the ensuing twelve-month	479
period or until the next increase is granted under this section,	480
whichever is later.	481

The date of the first increase payable under this section	482
shall be the anniversary date for future increases.	483

If payment of a portion of a benefit is made to an alternate	484
payee under section 742.462 of the Revised Code, increases under	485
this division granted while the order is in effect shall be	486
apportioned between the alternate payee and the benefit recipient	487
in the same proportion that the amount being paid to the alternate	488
payee bears to the amount paid to the benefit recipient.	489

If payment of a portion of a retirement allowance is made to	490
one or more beneficiaries under "option 4" under division (A)(4)	491
of section 742.3711 of the Revised Code, each increase under this	492
division granted while the plan of payment is in effect shall be	493
divided among the designated beneficiaries in accordance with the	494
portion each beneficiary has been allocated.	495

Sec. 742.3716.  (A)(1) As used in this section:

496

(a) "Eligible person" means a person who meets all of the	497
following conditions:	498

(i) Has been receiving a pension or benefit under this	499
chapter for one year or more based on an award made on or after	500
July 24, 1986;	501

(ii) Has not made the election provided for in division (B)	502
of this section;	503

(iii) Is not the spouse or survivor of a person who has made	504
the election provided for in division (B) of this section;	505

(iv) Is receiving a benefit in accordance with division (A),	506
(B), or (C) of section 742.37, division (C)(2), (3), (4), or (5)	507
of former section 742.37, section 742.3711, or section 742.39 of	508
the Revised Code.	509

(b) "Recalculated average annual salary" means the highest	510
average annual compensation of a member of the Ohio police and	511
fire pension fund during any three years of contributions,	512
including amounts included in terminal pay attributable to such	513
three years, determined by dividing the member's total earnings as	514
an employee during such years by three.	515

(2) In the case of a member participating in the deferred	516
retirement option plan established under section 742.43 of the	517
Revised Code or a member described in division (B) of section	518
742.444 of the Revised Code, the period of one year or more	519
described in division (A)(1)(a)(i) of this section begins on the	520
effective date of the member's election under section 742.44 of	521
the Revised Code.	522

(B)(1) Notwithstanding section 742.37 or 742.39 of the	523
Revised Code, a member of the fund who is not receiving a pension	524
or benefit under this chapter and who on January 1, 1989, has	525
completed fifteen or more years of active service in a police or	526
fire department may elect to have any future benefit or pension	527
paid to the member or the member's spouse or survivors under this	528
chapter calculated on the basis of the member's recalculated	529
average annual salary rather than the member's average annual	530
salary. The election shall be made by the member prior to or at	531
the time of making an election under section 742.3711 of the	532
Revised Code. This division does not apply to a member of the fund	533
who elected to participate in the deferred retirement option plan	534
established under section 742.43 of the Revised Code unless the	535
member's participation has terminated pursuant to division (C) of	536
section 742.444 or to section 742.445 of the Revised Code.	537

(2) If the member eligible to make the election under	538
division (B)(1) of this section dies prior to making the election	539
and at the time of death is eligible to retire and receive a	540
pension or benefit under division (C)(1) or (3) of section 742.37	541
of the Revised Code, the person entitled to receive a benefit	542
under section 742.3714 of the Revised Code may make the election	543
provided for in division (B)(1) of this section.	544

(3) The election under division (B)(1) or (2) of this section	545
shall be made on forms provided by the trustees of the fund. Once	546
received by the fund, the election shall be irrevocable and shall	547
bind the member and any other person who receives a pension or	548
benefit based on the member's service. No person who receives a	549
pension or benefit calculated in accordance with division (B) of	550
this section is eligible to receive a cost-of-living allowance	551
under this section. If the person making the election receives a	552
benefit under section 742.3714 of the Revised Code, that person is	553
not eligible to receive a cost-of-living allowance under section	554
742.3711 of the Revised Code.	555

(C)(1) The board of trustees of the Ohio police and fire	556
pension fund shall annually increase all benefits payable to	557
eligible persons by three per cent, except that no benefit shall	558
exceed the limit established by section 415 of the "Internal	559
Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415, as	560
amended.	561

The first increase is payable to all eligible persons who on	562
July 1, 1988, have been receiving a pension or benefit for twelve	563
months or longer. The increase is payable for the ensuing	564
twelve-month period or until the next increase is granted under	565
this section, whichever is later.	566

The date of the first increase paid under this section shall	567
be the anniversary date for future increases. The pension or	568
benefit used in the first calculation of an increase under this	569
section shall remain as the base for all future increases paid	570
under this section, unless a new base is established by law. In	571
the case of a member who has elected to participate in the	572
deferred retirement option plan established under section 742.43	573
of the Revised Code or a member described in division (B) of	574
section 742.444 of the Revised Code, the pension amount used in	575
the first calculation of an increase under this section shall be	576
the amount calculated under section 742.442 of the Revised Code	577
unless the member's participation has terminated pursuant to	578
division (C) of section 742.444 or to section 742.445 of the	579
Revised Code.	580

(2) Increases paid in years subsequent to the year of the	581
first increase paid under this section shall be paid to all	582
eligible persons who, on the date that the increase is authorized	583
by the board, have been receiving a pension or benefit for twelve	584
months.	585

(E) If payment of a portion of a benefit is made to an	586
alternate payee under section 742.462 of the Revised Code,	587
increases under this section granted while the order is in effect	588
shall be apportioned between the alternate payee and the benefit	589
recipient in the same proportion that the amount being paid to the	590
alternate payee bears to the amount paid to the benefit recipient.	591

If payment of a portion of a retirement allowance is made to	592
one or more beneficiaries under "option 4" under division (A)(4)	593
of section 742.3711 of the Revised Code, each increase under this	594
section granted while the plan of payment is in effect shall be	595
divided among the designated beneficiaries in accordance with the	596
portion each beneficiary has been allocated.	597

Sec. 742.3717.  (A)(1) Except as provided in division (A)(2)	598
of this section, as used in this section, "eligible person" means	599
a person who meets both of the following conditions:	600

(a) The person is receiving an annual pension or benefit	601
under division (A), (B), or (C) of section 742.37 or division	602
(C)(2), (3), (4), or (5) of former section 742.37 of the Revised	603
Code based on an award made prior to July 24, 1986.	604

(b) The person has not elected under section 742.3711 of the	605
Revised Code to receive a retirement allowance under an optional	606
benefit plan.	607

(2) A person is not an eligible person if the person is	608
receiving a pension or benefit in accordance with rules in force	609
on April 1, 1947, that govern the granting of pensions and	610
benefits and that provide an increase in the original pension or	611
benefit from time to time pursuant to changes in the salaries of	612
active members.	613

(B)(1) The board of trustees of the Ohio police and fire	614
pension fund shall annually increase all benefits payable to	615
eligible persons by three hundred sixty dollars, except that no	616
benefit shall exceed the limit established by section 415 of the	617
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415,	618
as amended.	619

(2) The first increase is payable to all eligible persons on	620
July 1, 1988. The increase is payable for the ensuing twelve-month	621
period or until the next increase is granted under this section,	622
whichever is later.	623

The date of the first increase payable under this section	624
shall be the anniversary date for future increases.	625

(3) If payment of a portion of a benefit is made to an	626
alternate payee under section 742.462 of the Revised Code,	627
increases under this section granted while the order is in effect	628
shall be apportioned between the alternate payee and the eligible	629
person in the same proportion that the amount being paid to the	630
alternate payee bears to the amount paid to the eligible person.	631

If payment of a portion of a retirement allowance is made to	632
one or more beneficiaries under "option 4" under division (A)(4)	633
of section 742.3711 of the Revised Code, each increase under this	634
section granted while the plan of payment is in effect shall be	635
divided among the designated beneficiaries in accordance with the	636
portion each beneficiary has been allocated.	637

Sec. 3105.80.  As used in this section and sections 3105.81	638
to 3105.90 of the Revised Code:	639

(A) "Alternate payee" means a party in an action for divorce,	640
legal separation, annulment, or dissolution of marriage who is to	641
receive one or more payments from a benefit or lump sum payment	642
under an order issued under section 3105.171 or 3105.65 of the	643
Revised Code that is in compliance with sections 3105.81 to	644
3105.90 of the Revised Code.	645

(B) "Benefit" means a periodic payment under a pension,	646
annuity, allowance, or other type of benefit, other than a	647
survivor benefit, that has been or may be granted to a participant	648
under sections 742.01 to 742.61 or Chapter 145., 3307., 3309., or	649
5505. of the Revised Code or any payment that is to be made under	650
a contract a participant has entered into for the purposes of an	651
alternative retirement plan. "Benefit" also includes all amounts	652
received or to be received under a plan of payment elected under	653
division (B)(3)(4) of section 145.46, division (B) of section	654
3307.60, or division (B)(3)(4) of section 3309.46 of the Revised	655
Code.	656

(C) "Lump sum payment" means a payment of accumulated	657
contributions standing to a participant's credit under sections	658
742.01 to 742.61 or Chapter 145., 3307., 3309., or 5505. of the	659
Revised Code or pursuant to a contract a participant has entered	660
into for the purposes of an alternative retirement plan and any	661
other payment made or that may be made to a participant under	662
those sections or chapters on withdrawal of a participant's	663
contributions. "Lump sum payment" includes a lump sum payment	664
under section 145.384, 742.26, 3307.352, or 3309.344 of the	665
Revised Code.	666

(D) "Participant" means a member, contributor, retirant, or	667
disability benefit recipient who is or will be entitled to a	668
benefit or lump sum payment under sections 742.01 to 742.61 or	669
Chapter 145., 3307., 3309., or 5505. of the Revised Code or an	670
employee who elects to participate in an alternative retirement	671
plan under Chapter 3305. of the Revised Code.	672

(E) "Personal history record" has the same meaning as in	673
sections 145.27, 742.41, 3305.20, 3307.20, 3309.22, and 5505.04 of	674
the Revised Code.	675

(F) "Public retirement program" means the public employees	676
retirement system, Ohio police and fire pension fund, school	677
employees retirement system, state teachers retirement system,	678
state highway patrol retirement system, or an entity providing an	679
alternative retirement plan under Chapter 3305. of the Revised	680
Code.	681

Sec. 3105.82.  An order described in section 3105.81 of the	682
Revised Code shall meet all of the following requirements:	683

(A) Be on the form created under section 3105.90 of the	684
Revised Code;	685

(B) Set forth the name and address of the public retirement	686
program subject to the order or, if the court determines that the	687
participant has contributions on deposit with more than one public	688
retirement program, the name and address of each public retirement	689
program that is potentially subject to the order;	690

(C) Set forth the names, social security numbers, and current	691
addresses of the participant and alternate payee;	692

(D) Specify the amount to be paid to the alternate payee as	693
one of the following:	694

(1) As both a monthly dollar amount should the participant	695
elect a benefit and as a one-time payment should the participant	696
elect a lump sum payment;	697

(2) As a percentage of a fraction determined as follows of a	698
monthly benefit or lump sum payment:	699

(a) The numerator of the fraction shall be the number of	700
years during which the participant was both a contributing member	701
of a public retirement program and married to the alternate payee.	702

(b) The denominator, which shall be determined by the public	703
retirement program at the time the participant elects to take the	704
benefit or payment, shall be the participant's total years of	705
service credit or, in the case of a participant in a retirement	706
plan established under section 145.81, 3307.81, or 3309.81 or	707
Chapter 3305. of the Revised Code, years of participation in the	708
plan.	709

(E) If the participant is eligible for more than one benefit	710
or lump sum payment, specify in accordance with division (D) of	711
this section the amount, if any, to be paid to the alternate payee	712
from each benefit or lump sum payment.	713

(F) Require an individual who is a participant or alternate	714
payee to notify the public retirement program in writing of a	715
change in the individual's mailing address;	716

(G) Notify the alternate payee of the following:

717

(1) The payee's right to payment under the order is	718
conditional on the participant's right to a benefit payment or	719
lump sum payment;	720

(2) The possible reduction under section 145.571, 742.462,	721
3307.371, 3309.671, or 5505.261 of the Revised Code of the amount	722
paid to the alternate payee;	723

(3) The possible termination of the payee's rights as	724
described in section 3105.86 of the Revised Code.	725

(H) Apply to payments made by the public retirement program	726
after retention of an order under section 145.571, 742.462,	727
3305.21, 3307.371, 3309.671, or 5505.261 of the Revised Code.	728

Sec. 3307.60.  (A) Upon application for retirement as	729
provided in section 3307.58 or 3307.59 of the Revised Code, the	730
retirant may elect a plan of payment under this division or, on	731
and after the date specified in division (B) of this section, a	732
plan of payment under that division. Under this division, the	733
retirant may elect to receive a single lifetime benefit, or may	734
elect to receive the actuarial equivalent of the retirant's	735
benefit in a lesser amount, payable for life, and continuing after	736
death to a beneficiary under one of the following optional plans:	737

(1) Option 1. The retirant's lesser benefit shall be paid for	738
life to the sole beneficiary named at retirement.	739

(2) Option 2. Some other portion of the retirant's benefit	740
shall be paid for life to the sole beneficiary named at	741
retirement. The beneficiary's monthly amount shall not exceed the	742
monthly amount payable to the retirant during the retirant's	743
lifetime.	744

(3) Option 3. The retirant's lesser benefit established as	745
provided under option 1 or option 2 shall be paid for life to the	746
sole beneficiary named at retirement, except that in the event of	747
the death of the sole beneficiary or termination of a marital	748
relationship between the retirant and the sole beneficiary the	749
retirant may elect to return to a single lifetime benefit	750
equivalent as determined by the state teachers retirement board,	751
if, in the case of termination of a marital relationship, the	752
election is made with the written consent of the beneficiary or	753
pursuant to an order of the court with jurisdiction over	754
termination of the marital relationship.	755

(4) Option 4. The retirant's lesser benefit or a portion of	756
the retirant's lesser benefit shall be paid for life to two,	757
three, or four surviving beneficiaries named at retirement. The	758
portion of the allowance that continues after the member's death	759
shall be allocated among the beneficiaries at the time of the	760
member's retirement. If the retirant elects this plan as required	761
by a court order issued under section 3105.171 or 3105.65 of the	762
Revised Code or the laws of another state regarding the division	763
of marital property and compliance with the court order requires	764
the allocation of a portion less than ten per cent to any person,	765
the retirant shall allocate a portion less than ten per cent to	766
that beneficiary in accordance with that order. In all other	767
circumstances, no portion allocated under this plan of payment	768
shall be less than ten per cent. The total of the portions	769
allocated shall not exceed one hundred per cent of the retirant's	770
lesser allowance.	771

(5) Option 5. Upon the retirant's death before the expiration	772
of a certain period from the retirement date and elected by the	773
retirant, and approved by the board, the retirant's benefit shall	774
be continued for the remainder of such period to the beneficiary.	775
Monthly benefits shall not be paid to joint beneficiaries, but	776
they may receive the present value of any remaining payments in a	777
lump sum settlement. If all beneficiaries die before the	778
expiration of the certain period, the present value of all	779
payments yet remaining in such period shall be paid to the estate	780
of the beneficiary last receiving.	781

(5)(6) Option 56. A plan of payment established by the state	782
teachers retirement board combining any of the features of options	783
1, 2, and 45.	784

(B) Beginning on a date selected by the state teachers	785
retirement board, which shall be not later than July 1, 2004, a	786
retirant may elect, in lieu of a plan of payment under division	787
(A) of this section, a plan consisting of both of the following:	788

(1) A lump sum in an amount the member designates that	789
constitutes a portion of the member's single lifetime benefit;	790

(2) Either of the following:

791

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

792

(b) The actuarial equivalent of the remainder of the	793
retirant's benefit in a lesser amount, payable for life, and	794
continuing after death to a beneficiary under one of the options	795
described in divisions (A)(1) to (5)(6) of this section.	796

In the event of the death of the solea beneficiary or	797
termination of a marital relationship between the retirant and the	798
solea beneficiary, the retirant may elect to cancel the portion	799
of the plan of payment providing continuing lifetime benefits to	800
that beneficiary. The retirant shall receive the actuarial	801
equivalent of the remainder of the retirant's single lifetime	802
benefit except that, inbased on the number of remaining	803
beneficiaries, with no change in the amount payable to any	804
remaining beneficiary. In the case of termination of a marital	805
relationship, the election may be made only with the written	806
consent of the beneficiary or pursuant to an order of the court	807
with jurisdiction over termination of the marital relationship.	808

The amount designated by the member under division (B)(1) of	809
this section shall be not less than six times and not more than	810
thirty-six times the monthly amount that would be payable to the	811
member as a single lifetime benefit and shall not result in a	812
monthly allowance that is less than fifty per cent of that amount.	813

(C) Until the first payment is made to a former member under	814
section 3307.58 or 3307.59 of the Revised Code, the former member	815
may change the selection of a plan of payment.	816

(D)(1) If a deceased member was eligible for but had not yet	817
been awarded a service retirement benefit under section 3307.58 or	818
3307.59 of the Revised Code at the time of death, option 1 as	819
provided for in division (A)(1) of this section shall be paid to	820
the spouse or other sole dependent beneficiary.	821

(2) Beginning on a date selected by the board, which shall be	822
not later than July 1, 2004, the spouse or sole beneficiary may	823
elect, in lieu of option 1, a plan of payment consisting of both	824
of the following:	825

(a) A lump sum in an amount the spouse or other sole	826
dependent beneficiary designates that constitutes a portion of the	827
retirant's single life annuity;	828

(b) The actuarial equivalent of the remainder of the	829
retirant's single life annuity paid in a lesser amount for life to	830
the spouse or other sole dependent beneficiary.	831

The amount designated by the spouse or other sole dependent	832
beneficiary under division (D)(2)(a) of this section shall be not	833
less than six times and not more than thirty-six times the monthly	834
amount that would be payable as the retirant's single life annuity	835
and shall not result in a monthly allowance that is less than	836
fifty per cent of that monthly amount.	837

(E) If the total benefit paid under this section is less than	838
the balance in the teachers' savings fund, the difference shall be	839
paid to the beneficiary provided under division (D) of section	840
3307.562 of the Revised Code.	841

(F) In the case of a retirant who elected an optional plan	842
prior to September 15, 1989:	843

(1) The death of the spouse or other designated beneficiary	844
following retirement shall, at the election of the retirant,	845
cancel any optional plan selected at retirement to provide	846
continuing lifetime benefits to the spouse or other beneficiary	847
and return the retirant to a single lifetime benefit equivalent as	848
determined by the board.	849

(2) A divorce, annulment, or marriage dissolution shall, at	850
the election of the retirant, cancel any optional plan selected at	851
retirement to provide continuing lifetime benefits to the spouse	852
as designated beneficiary and return the retirant to a single	853
lifetime benefit equivalent as determined by the board if the	854
election is made with the written consent of the beneficiary or	855
pursuant to an order of a court of common pleas or the court of	856
another state with jurisdiction over the termination of the	857
marriage.	858

(G) Following marriage or remarriage, aboth of the following	859
apply:	860

(1) A retirant may elect a new optional plan of payment based	861
on the actuarial equivalent of the retirant's single lifetime	862
benefit, as determined by the board, except that if the retirant	863
is receiving a retirement allowance under an optional plan that	864
provides for continuation of benefits after death to a former	865
spouse, the retirant may elect a new optional plan of payment only	866
with the written consent of the former spouse or pursuant to an	867
order of the court with jurisdiction over the termination of the	868
marriage. Such	869

(2) A retirant who is receiving a benefit pursuant to a plan	870
of payment providing for payment to a former spouse pursuant to a	871
court order described in division (H)(1)(b) of this section may	872
elect a new plan of payment under "option 4" based on the	873
actuarial equivalent of the retirant's single lifetime retirement	874
allowance as determined by the board if the new plan of payment	875
elected does not reduce the payment to the former spouse.	876

The plan shall become effective the first of the month	877
following an application on a form approved by the board.	878

(H)(1) Unless one of the following occursExcept as otherwise	879
provided in this division and division (H)(2) of this section, an	880
application for service retirement made pursuant to section	881
3307.58 or 3307.59 of the Revised Code by a married person shall	882
be considered an election of a benefit under option 2 as provided	883
for in division (A)(2) of this section under which one-half of the	884
lesser benefit payable during the life of the retirant will be	885
paid after death to the retirant's spouse for life as sole	886
beneficiary. The exceptions are as follows:	887

(a) The retirant selects an optional plan under division (A)	888
of this section providing for payment after death to the	889
retirant's spouse for life as sole beneficiary of more than	890
one-half of the lesser benefit payable during the life of the	891
retirant.	892

(b) A plan of payment providing for payment in a specified	893
amount continuing after the retirant's death to a former spouse is	894
required by a court order issued prior to the effective date of	895
retirement under section 3105.171 or 3105.65 of the Revised Code	896
or the laws of another state regarding division of marital	897
property.	898

(c) The retirant submits to the retirement board a written	899
statement signed by the spouse attesting that the spouse consents	900
to the retirant's election to receive a single lifetime annuity or	901
a payment under an optional benefit plan under which after the	902
death of the retirant the surviving spouse will receive less than	903
one-half of the lesser benefit payable during the life of the	904
retirant.	905

(2) If a retirant is subject to division (H)(1)(b) of this	906
section and the board has received a copy of the order described	907
in that division, the board shall accept the retirant's election	908
of a plan of payment under this section only if the retirant	909
complies with both of the following:	910

(i) The retirant elects a plan of payment that is in	911
accordance with the order described in division (H)(1)(b) of this	912
section.	913

(ii) If the retirant is married, the retirant elects "option	914
4" and designates the retirant's current spouse as a beneficiary	915
under that plan unless that spouse consents in writing to not	916
being designated a beneficiary under any plan of payment or the	917
board waives the requirement that the current spouse consent.	918

(3) An application for retirement shall include an	919
explanation of all of the following:	920

(a) That, if the member is married, unless the spouse	921
consents to another plan of payment or there is a court order	922
dividing marital property issued under section 3105.171 or 3105.65	923
of the Revised Code or the laws of another state regarding the	924
division of marital property that provides for payment in a	925
specified amount, the member's retirement allowance will be paid	926
under "option 2" as provided for in division (A)(2) of this	927
section and consist of the actuarial equivalent of the member's	928
retirement allowance in a lesser amount payable for life and	929
one-half of the lesser allowance continuing after death to the	930
surviving spouse for the life of the spouse;	931

(b) A description of the alternative plans of payment	932
available with the consent of the spouse;	933

(c) That the spouse may consent to another plan of payment	934
and the procedure for giving consent;	935

(d) That consent is irrevocable once notice of consent is	936
filed with the board.	937

Consent shall be valid only if it is signed, in writing, and	938
witnessed by a notary public.	939

(3)(4) If the retirant does not select an optional plan of	940
payment as described in division (H)(1)(a) of this section, no	941
court has ordered a plan of payment described in division	942
(H)(1)(b) of this section, and the board does not receive the	943
written statement provided for in division (H)(1)(b)(c) of this	944
section, itthe board shall determine and pay the retirement	945
allowance in accordance with this division, except that the board	946
may provide by rule for waiver by the board of the statement and	947
payment of the benefits other than in accordance with this	948
division or payment under section 3307.56 of the Revised Code if	949
the retirant is unable to obtain the statement due to absence or	950
incapacity of the spouse or other cause specified by the board.	951

(I) For the purpose of determining actuarial equivalence	952
under this section, on the advice of an actuary employed by the	953
board, the board shall adopt mortality tables that may take into	954
consideration the membership experience of the state teachers	955
retirement system and may also include the membership experience	956
of the public employees retirement system and the school employees	957
retirement system.	958

Sec. 3307.67.  (A) The state teachers retirement board shall	959
annually increase each allowance or benefit payable under sections	960
3307.50 to 3307.79 of the Revised Code by three per cent, except	961
that no allowance or benefit shall exceed the limit established by	962
section 415 of the "Internal Revenue Code of 1986," 100 Stat.	963
2085, 26 U.S.C.A. 415, as amended.	964

The first increase is payable to all persons becoming	965
eligible after June 30, 1971, upon such persons receiving an	966
allowance or benefit for twelve months. The increased amount is	967
payable for the ensuing twelve-month period or until the next	968
increase is granted under this section, whichever is later.	969
Subsequent increases shall be determined from the date of the	970
first increase paid to the former member in the case of an	971
allowance being paid a beneficiary under an option, or from the	972
date of the first increase to the survivor first receiving an	973
allowance or benefit in the case of an allowance or benefit being	974
paid to the subsequent survivors of the former member.	975

The date of the first increase under this section becomes the	976
anniversary date for any future increases.	977

The allowance or benefit used in the first calculation of an	978
increase under this section shall remain as the base for all	979
future increases, unless a new base is established.	980

(B) If payment of a portion of a benefit is made to an	981
alternate payee under section 3307.371 of the Revised Code,	982
increases under this section granted while the order is in effect	983
shall be apportioned between the alternate payee and the benefit	984
recipient in the same proportion that the amount being paid to the	985
alternate payee bears to the amount paid to the benefit recipient.	986

If payment of a portion of a benefit is made to one or more	987
beneficiaries under "option 4" under division (A)(4) of section	988
3307.60 of the Revised Code, each increase under this section	989
granted while the plan of payment is in effect shall be divided	990
among the designated beneficiaries in accordance with the portion	991
each beneficiary has been allocated.	992

(C) The board shall make all rules necessary to carry out	993
this section.	994

Sec. 3307.87.  (A)(1) If a member participating in a plan	995
established under section 3307.81 of the Revised Code is married	996
at the time any benefits under the plan commence, benefits shall	997
be paid in accordance with division (A)(2) of this section, unless	998
the spouse has consented under division (C) of this section to a	999
different form of payment or the spouse's consent is waived under	1000
that division.	1001

(2) The benefits described in division (A)(1) of this section	1002
shall be paid in the form of an annuity, which shall consist of	1003
the actuarial equivalent of the member's benefits, in an amount	1004
that is payable for the life of the member and one-half of the	1005
amount continuing after the member's death to the spouse for the	1006
life of the spouse.	1007

(B) If a member participating in a plan established under	1008
section 3307.81 of the Revised Code is married at the time of the	1009
member's death, any benefits that are payable to the member shall	1010
be paid to the member's spouse, unless the spouse has consented	1011
under division (C) of this section to the designation of a	1012
different beneficiary or the spouse's consent is waived under that	1013
division.	1014

(C) Consent is valid only if it is evidenced by a signed	1015
statement that is witnessed by a notary public. Each plan may	1016
waive the requirement of consent if the spouse is incapacitated or	1017
cannot be located or for any other reason specified by the plan or	1018
in rules adopted by the state teachers retirement board. A plan	1019
shall waive the requirement of consent if a plan of payment that	1020
provides for payment in a specified amount continuing after the	1021
member's death to a former spouse is required by a court order	1022
issued prior to the effective date of the member's retirement	1023
under section 3105.171 or 3105.65 of the Revised Code or laws of	1024
another state regarding division of marital property.	1025

Consent or waiver is effective only with regard to the spouse	1026
who is the subject of the consent or waiver.	1027

Sec. 3309.374.  (A) The school employees retirement board	1028
shall annually increase each allowance, pension, or benefit	1029
payable under this chapter by three per cent, except that no	1030
allowance, pension, or benefit shall exceed the limit established	1031
by section 415 of the "Internal Revenue Code of 1986," 100 Stat.	1032
2085, 26 U.S.C.A. 415, as amended.	1033

The first increase is payable to all persons becoming	1034
eligible after June 30, 1971, upon such persons receiving an	1035
allowance, pension, or benefit for twelve months.	1036

The increased amount is payable for the ensuing twelve-month	1037
period or until the next increase is granted under this section,	1038
whichever is later. Subsequent increases shall be determined from	1039
the date of the first increase paid to the former member in the	1040
case of an allowance being paid a beneficiary under an option, or	1041
from the date of the first increase to the survivor first	1042
receiving an allowance or benefit in the case of an allowance or	1043
benefit being paid to the subsequent survivors of the former	1044
member.	1045

The date of the first increase under this section becomes the	1046
anniversary date for any future increases.	1047

The allowance or benefit used in the first calculation of an	1048
increase under this section shall remain as the base for all	1049
future increases, unless a new base is established. Any increase	1050
resulting from payment of a recalculated benefit under Section 3	1051
of Substitute Senate Bill No. 270 of the 123rd general assembly	1052
shall be included in the calculation of future increases under	1053
this section.	1054

(B) If payment of a portion of a benefit is made to an	1055
alternate payee under section 3309.671 of the Revised Code,	1056
increases under this section granted while the order is in effect	1057
shall be apportioned between the alternate payee and the retirant	1058
or disability benefit recipient in the same proportion that the	1059
amount being paid to the alternate payee bears to the amount paid	1060
to the retirant or disability benefit recipient.	1061

If payment of a portion of a benefit is made to one or more	1062
beneficiaries under "plan F" under division (B)(3)(e) of section	1063
3309.46 of the Revised Code, each increase under this section	1064
granted while the plan of payment is in effect shall be divided	1065
among the designated beneficiaries in accordance with the portion	1066
each beneficiary has been allocated.	1067

(C) The board shall make all rules necessary to carry out	1068
this section.	1069

Sec. 3309.46.  (A) The retirement allowance calculated under	1070
section 3309.36, 3309.38, or 3309.381 of the Revised Code shall be	1071
paid as provided in this section. If the member is eligible to	1072
elect a plan of payment under this section, the election shall be	1073
made on the application for retirement. A plan of payment elected	1074
under this section shall be effective only if it is certified by	1075
the actuary engaged by the school employees retirement board to be	1076
the actuarial equivalent of the member's retirement allowance and	1077
is approved by the retirement board.	1078

(B)(1) Unless the member is eligible to elect another plan of	1079
payment(a) Except as provided in divisions (B)(1)(b) and (c) of	1080
this section, a member who retires under section 3309.36, 3309.38,	1081
or 3309.381 of the Revised Code shall receive a retirement	1082
allowance under "plan A," which shall consist of the actuarial	1083
equivalent of the member's retirement allowance determined under	1084
section 3309.36, 3309.38, or 3309.381 of the Revised Code in a	1085
lesser amount payable for life and one-half of such allowance	1086
continuing after death to the member's surviving spouse for the	1087
life of the spouse.	1088

(b) A member may elect to receive a retirement allowance	1089
under a plan of payment other than "plan A" if theeither of the	1090
following is the case:	1091

(i) The member is not married or either the member's spouse	1092
consents in writing to the member's election to a plan of payment	1093
other than "plan A" or the board waives the requirement that the	1094
spouse consent;	1095

(ii) A plan of payment providing for payment in a specified	1096
amount continuing after the member's death to a former spouse is	1097
required by a court order issued prior to the effective date of	1098
the member's retirement under section 3105.171 or 3105.65 of the	1099
Revised Code or the laws of another state regarding division of	1100
marital property.	1101

(c) If a member is subject to division (B)(1)(b)(ii) of this	1102
section and the board has received a copy of the order described	1103
in that division, the board shall accept the member's election of	1104
a plan of payment under this section only if the member complies	1105
with both of the following:	1106

(i) The member elects a plan of payment that is in accordance	1107
with the order described in division (B)(1)(b)(ii) of this	1108
section.	1109

(ii) If the member is married, the member elects "plan F" and	1110
designates the member's current spouse as a beneficiary under that	1111
plan unless that spouse consents in writing to not being	1112
designated a beneficiary under any plan of payment or the board	1113
waives the requirement that the current spouse consent.	1114

(2) An application for retirement shall include an	1115
explanation of all of the following:	1116

(a) That, if the member is married, unless the spouse	1117
consents to another plan of payment or there is a court order	1118
dividing marital property issued under section 3105.171 or 3105.65	1119
of the Revised Code or the laws of another state regarding the	1120
division of marital property that provides for payment in a	1121
specified amount, the member's retirement allowance will be paid	1122
under "plan A," which consists of the actuarial equivalent of the	1123
member's retirement allowance in a lesser amount payable for life	1124
and one-half of the allowance continuing after death to the	1125
surviving spouse for the life of the spouse;	1126

(b) A description of the alternative plans of payment,	1127
including all plans described in divisions (B)(2)(3) and (3)(4) of	1128
this section, available with the consent of the spouse;	1129

(c) That the spouse may consent to another plan of payment	1130
and the procedure for giving consent;	1131

(d) That consent is irrevocable once notice of consent is	1132
filed with the board.	1133

Consent shall be valid only if it is in writing, signed by	1134
the spouse, and witnessed by an employee of the school employees	1135
retirement system or a notary public. The board may waive the	1136
requirement of consent if the spouse is incapacitated or cannot be	1137
located or for any other reason specified by the board. Consent or	1138
waiver is effective only with regard to the spouse who is the	1139
subject of the consent or waiver.	1140

(2)(3) A member eligible to elect to receive a retirement	1141
allowance under a plan of payment other than "plan A" shall	1142
receive the retirement allowance under the plan described in	1143
division (B)(3)(4) of this section or one of the following plans:	1144

(a) "Plan B," which shall consist of an allowance determined	1145
under section 3309.36, 3309.38, or 3309.381 of the Revised Code;	1146

(b) "Plan C," which shall consist of the actuarial equivalent	1147
of the member's retirement allowance determined under section	1148
3309.36, 3309.38, or 3309.381 of the Revised Code in a lesser	1149
amount payable for life and one-half or some other portion of the	1150
allowance continuing after death to the member's sole surviving	1151
beneficiary designated at the time of the member's retirement,	1152
provided that the amount payable to the beneficiary does not	1153
exceed the amount payable to the member;	1154

(c) "Plan D," which shall consist of the actuarial equivalent	1155
of the member's retirement allowance determined under section	1156
3309.36, 3309.38, or 3309.381 of the Revised Code in a lesser	1157
amount payable for life and continuing after death to a surviving	1158
designated beneficiary designated at the time of the member's	1159
retirement;	1160

(d) "Plan E," which shall consist of the actuarial equivalent	1161
of the member's retirement allowance determined under section	1162
3309.36, 3309.38, or 3309.381 of the Revised Code in a lesser	1163
amount payable for a certain period from the member's retirement	1164
date as elected by the member and approved by the retirement	1165
board, and on the member's death before the expiration of that	1166
certain period, the member's lesser retirement allowance continued	1167
for the remainder of that period to, and in such order, the	1168
beneficiaries as the member has nominated by written designation	1169
and filed with the retirement board.	1170

Monthly benefits shall not be paid to joint beneficiaries,	1171
but they may receive the present value of any remaining payments	1172
in a lump sum settlement. If all beneficiaries die before the	1173
expiration of the certain period, the present value of all such	1174
payments yet remaining in such period shall be paid to the estate	1175
of the beneficiary last receiving.	1176

(e) "Plan F," which shall consist of the actuarial equivalent	1177
of the member's retirement allowance determined under section	1178
3309.36, 3309.38, or 3309.381 of the Revised Code in a lesser	1179
amount payable to the member for life and some portion of the	1180
lesser amount continuing after death to two, three, or four	1181
surviving beneficiaries designated at the time of the member's	1182
retirement. The portion of the lesser amount that continues after	1183
the member's death shall be allocated among the beneficiaries at	1184
the time of the member's retirement. If the member elects this	1185
plan as required by a court order issued under section 3105.171 or	1186
3105.65 of the Revised Code or the laws of another state regarding	1187
the division of marital property and compliance with the court	1188
order requires the allocation of a portion less than ten per cent	1189
to any person, the member shall allocate a portion less than ten	1190
per cent to that beneficiary in accordance with that order. In all	1191
other circumstances, no portion allocated under this plan of	1192
payment shall be less than ten per cent. The total of the portions	1193
allocated shall not exceed one hundred per cent of the member's	1194
lesser allowance.	1195

(3)(4)(a) Beginning on a date selected by the board, which	1196
shall be not later than July 1, 2004, a member may elect, in lieu	1197
of a plan of payment under division (B)(1) or (2)(3) of this	1198
section, a plan consisting of both a lump sum in an amount the	1199
member designates that constitutes a portion of the retirement	1200
allowance payable under a plan described in division (B)(1) or	1201
(2)(3) of this section and the remainder of the allowance payable	1202
under that plan in monthly payments.	1203

The total amount paid as a lump sum and a monthly benefit	1204
shall be the actuarial equivalent of the amount that would have	1205
been paid had the lump sum not been selected.	1206

(b) The lump sum amount designated by the member shall be not	1207
less than six times and not more than thirty-six times the monthly	1208
amount that would be payable to the member under the plan of	1209
payment elected under this section had the lump sum not been	1210
elected and shall not result in a monthly benefit that is less	1211
than fifty per cent of that amount.	1212

(4)(5) An election under division (B)(2)(3) or (3)(4) of this	1213
section shall be made at the time the member makes application for	1214
retirement.	1215

(5)(6) A member eligible to elect to receive a retirement	1216
allowance under a plan of payment other than "plan A" because the	1217
member is unmarried who fails to make an election on retirement	1218
shall receive a retirement allowance under "plan B."	1219

(C) Until the first payment of any retirement allowance is	1220
made, as provided in sections 3309.36, 3309.38, or 3309.381 of the	1221
Revised Code, a member may change the member's election of a	1222
payment plan if the election is made in accordance with and is	1223
consistent with division (B) of this section.	1224

(D) If the retirement allowances due and paid under the above	1225
provisions of this section are in a total amount less than (1) the	1226
accumulated contributions, (2) the deposits for additional credit	1227
as provided by section 3309.31 of the Revised Code, (3) the	1228
deposits for additional annuities as provided by section 3309.47	1229
of the Revised Code, (4) the deposits for repurchase of service	1230
credit as provided by section 3309.26 of the Revised Code, (5) the	1231
accumulated contributions provided by section 3309.65 of the	1232
Revised Code, (6) the deposits for purchase of military service	1233
credit provided by section 3309.021 or 3309.022 of the Revised	1234
Code, and (7) the deposits for the purchase of service credit	1235
provided by section 3309.73 of the Revised Code, standing to the	1236
credit of the member at the time of retirement, then the	1237
difference between the total amount of the allowances paid and the	1238
accumulated contributions and other deposits shall be paid to the	1239
beneficiary provided under division (D) of section 3309.44 of the	1240
Revised Code.	1241

(E)(1) The death of a spouse or any other designated	1242
beneficiary following the member's retirement shall cancel anythe	1243
portion of the plan of payment to provideproviding continuing	1244
lifetime benefits to the deceased spouse or deceased designated	1245
beneficiary and the. The retirant shall receive the actuarial	1246
equivalent of the retirant's single lifetime retirement allowance	1247
equivalent as determined by the board based on the number of	1248
remaining beneficiaries, with no change in the amount payable to	1249
any remaining beneficiary.	1250

(2) On divorce, annulment, or marriage dissolution, a	1251
retirant receiving a retirement allowance under a plan of payment	1252
that provides for continuation of all or part of the allowance	1253
after death for the lifetime of the member'sretirant's surviving	1254
spouse may elect to cancel the portion of the plan andproviding	1255
continuing lifetime benefits to that spouse. The retirant shall	1256
receive the member'sactuarial equivalent of the retirant's single	1257
lifetime retirement allowance equivalent as determined by the	1258
retirement board, except that inbased on the number of remaining	1259
beneficiaries, with no change in the amount payable to any	1260
remaining beneficiary. In the case of a member who retires on or	1261
after July 24, 1990, the election may be made only with the	1262
written consent of the spouse or pursuant to an order of the court	1263
with jurisdiction over the termination of the marriage. The	1264
election shall be made on a form provided by the board and shall	1265
be effective the month following its receipt by the board.	1266

(3) Following marriage or remarriage, aboth of the following	1267
apply:	1268

(a) A retirant who is receiving a benefit pursuant to "plan	1269
B" may elect a new plan of payment under division (B)(1),	1270
(2)(3)(b), or (2)(3)(c) of this section based on the actuarial	1271
equivalent of the member'sretirant's single lifetime retirement	1272
allowance as determined by the board. The	1273

(b) A retirant who is receiving a benefit pursuant to a plan	1274
of payment providing for payment to a former spouse pursuant to a	1275
court order described in division (B)(1)(b)(ii) of this section	1276
may elect a new plan of payment under division (B)(3)(e) of this	1277
section based on the actuarial equivalent of the retirant's single	1278
lifetime retirement allowance as determined by the board if the	1279
new plan of payment elected does not reduce the payment to the	1280
former spouse.	1281

The plan shall become effective the first day of the month	1282
following receipt by the board of an application on a form	1283
approved by the board.	1284

Sec. 3309.92.  If a member participating in a plan	1285
established under section 3309.81 of the Revised Code is married	1286
at the time benefits under the plan are to commence, before making	1287
any payment the school employees retirement system, or the entity	1288
administering the plan pursuant to a contract with the school	1289
employees retirement board, shall obtain the consent of the	1290
member's spouse to the form of payment selected by the member,	1291
unless the spouse's consent is waived under this section.	1292

A plan established under section 3309.81 of the Revised Code	1293
shall include requirements for consent under this section that are	1294
the same as the requirements specified in section 417(a)(2) of the	1295
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A.	1296
417(a)(2), as amended. A plan may waive consent if the spouse	1297
cannot be located or for any other reason specified in the	1298
regulations adopted under that section.	1299

A plan shall waive the requirement of consent if a plan of	1300
payment that provides for payment in a specified portion of the	1301
retirement allowance continuing after the member's death to a	1302
former spouse is required by a court order issued under section	1303
3105.171 or 3105.65 of the Revised Code or laws of another state	1304
regarding division of marital property prior to the effective date	1305
of the member's retirement. If a court order requires this plan of	1306
payment, the member shall be required to annuitize the member's	1307
accumulated amounts in accordance with the order. If the member is	1308
married, the plan of payment selected by the member also shall	1309
provide for payment to the member's current spouse, unless the	1310
current spouse consents in writing to not being designated a	1311
beneficiary under the plan of payment or the current spouse's	1312
consent is waived by reason other than the court order.	1313

Consent or waiver is effective only with regard to the spouse	1314
who is the subject of the consent or waiver.	1315

Sec. 5505.162.  (A) On application for retirement as provided	1316
in section 5505.16 of the Revised Code, a member of the state	1317
highway patrol retirement system may elect, on a form provided by	1318
the state highway patrol retirement board, to receive the pension	1319
that the member is eligible to receive on retirement under that	1320
section in one of the following forms:	1321

(1) A single lifetime pension;

1322

(2) The actuarial equivalent of the single lifetime pension	1323
that the member may elect under division (A)(1) of this section in	1324
a lesser annual amount payable for the member's life and	1325
continuing after the member's death to a surviving designated	1326
beneficiary under one of the following optional plans, provided	1327
the annual amount payable to the designated beneficiary shall not	1328
exceed the annual amount payable to such retiring member, the	1329
amount is certified by the actuary employed by the system to be	1330
the actuarial equivalent of the member's pension, and the amount	1331
is approved by the board:	1332

(a) Option 1. The member's lesser pension shall be paid for	1333
life to the member's sole beneficiary designated at the time of	1334
retirement.	1335

(b) Option 2. One-half or some other portion of the member's	1336
lesser pension shall be paid for life to the member's sole	1337
beneficiary designated at the time of retirement.	1338

(c) Option 3. Upon death before the expiration of a certain	1339
period from the member's retirement date as elected by the member	1340
and approved by the board, the member's lesser pension shall be	1341
continued for the remainder of such period to the beneficiaries,	1342
and in such order, as designated by the member in writing and	1343
filed with the board. No monthly payments shall be paid to joint	1344
beneficiaries, but they may jointly receive the present value of	1345
any remaining payments in a lump sum settlement. If all designated	1346
beneficiaries die before the expiration of such period, the	1347
present value of all the payments yet remaining in the period	1348
shall be paid to the estate of the beneficiary last receiving such	1349
payments.	1350

(d) Option 4. The member's lesser pension or portion of the	1351
lesser pension shall be paid for life to two, three, or four	1352
surviving beneficiaries designated at the time of the member's	1353
retirement, in such portions as specified at retirement. If the	1354
member elects this plan as required by a court order issued under	1355
section 3105.171 or 3105.65 of the Revised Code or the laws of	1356
another state regarding the division of marital property and	1357
compliance with the court order requires the allocation of a	1358
portion less than ten per cent to any person, the member shall	1359
allocate a portion less than ten per cent to that person in	1360
accordance with that order. In all other circumstances, no portion	1361
allocated under this plan of payment shall be less than ten per	1362
cent. The total of the portions allocated shall not exceed one	1363
hundred per cent of the member's lesser pension.	1364

(3) If the member has attained age fifty-one with at least	1365
twenty-five years' total service or fifty-two with at least twenty	1366
years' total service, a pension consisting of both a partial	1367
benefit lump sum in an amount the member designates that	1368
constitutes a portion of the single lifetime pension the member	1369
may elect under division (A)(1) of this section and the actuarial	1370
equivalent of the remainder of the single lifetime pension payable	1371
for the member's life, provided an actuary employed by the system	1372
certifies the actuarial equivalent and the board approves the	1373
partial benefit lump sum payment and the amount to be paid as the	1374
actuarial equivalent.	1375

The amount designated by a member shall be not less than six	1376
times the monthly amount that would be payable to the member as a	1377
single lifetime pension under division (A)(1) of this section and	1378
not more than sixty times that amount.	1379

A member who has attained the age of fifty-one with	1380
twenty-five years of service who elects a partial benefit lump sum	1381
may designate an amount that does not exceed an amount equal to	1382
one month's pension for each month of service beyond twenty-five	1383
years. A member who has attained the age of fifty-two with twenty	1384
years of service who elects a partial benefit lump sum may	1385
designate an amount that does not exceed an amount equal to one	1386
month's pension for each month of service beyond twenty years.	1387

(4) If a plan of payment providing for payment in a specified	1388
portion of the pension continuing after the member's death to a	1389
former spouse is required by a court order issued under section	1390
3105.171 or 3105.65 of the Revised Code or the laws of another	1391
state regarding division of marital property prior to the	1392
effective date of the member's retirement and the board has	1393
received a copy of the order, the board shall accept the member's	1394
election of a plan of payment under this section only if the	1395
member elects a plan of payment that is in accordance with the	1396
order.	1397

(B)(1) The death of a spouse designated as beneficiary or the	1398
death of any other designated beneficiary following retirement	1399
shall cancel anythe portion of the optional plan of payment	1400
selected under division (A)(2) of this section to provide	1401
providing continuing lifetime benefits to suchthe deceased	1402
designated beneficiary and return the. The member to theshall	1403
receive the actuarial equivalent of the member's single lifetime	1404
pension, as determined by the board, tobased on the number of	1405
remaining beneficiaries, with no change in the amount payable to	1406
any remaining beneficiary. The change shall be effective the month	1407
following receipt by the board of notice of the death.	1408

(2) On divorce, annulment, or marriage dissolution, a member	1409
receiving a pension under a plan that provides for continuation of	1410
all or part of the pension after death for the lifetime of the	1411
member's surviving spouse may, with the written consent of the	1412
spouse or pursuant to an order of the court with jurisdiction over	1413
the termination of the marriage, elect to cancel the portion of	1414
the plan andproviding continuing lifetime benefits to that	1415
spouse. The member shall receive the actuarial equivalent of the	1416
member's single lifetime pension as determined by the board based	1417
on the number of remaining beneficiaries, with no change in amount	1418
payable to any remaining beneficiary. The election shall be made	1419
on a form provided by the board and shall be effective the month	1420
following its receipt by the board.	1421

(C) Following marriage or remarriage, aboth of the following	1422
apply:	1423

(1) A member may elect a new optional plan of payment under	1424
division (A)(2) of this section based on the actuarial equivalent	1425
of the member's single lifetime pension as determined by the	1426
board. The	1427

(2) A member who is receiving a pension pursuant to a plan of	1428
payment providing for payment to a former spouse pursuant to a	1429
court order described in division (A)(4) of this section may elect	1430
a new plan of payment under "option 4" based on the actuarial	1431
equivalent of the retirant's single lifetime pension as determined	1432
by the board if the new plan of payment elected does not reduce	1433
the payment to the former spouse.	1434

The plan shall become effective the first day of the month	1435
following receipt by the board of an application on a form	1436
approved by the board.	1437

(D) A member who has elected an optional plan under division	1438
(A)(2) of this section may, with the written consent of the	1439
designated beneficiary, cancel the optional plan and receive the	1440
single lifetime pension that the member would have received had	1441
the member elected the single lifetime pension under division	1442
(A)(1) of this section, if the member makes a request to cancel	1443
the optional plan not later than one year after the date on which	1444
the member first receives a payment under the plan. Cancellation	1445
of the optional plan shall be effective the month after acceptance	1446
of the request by the board. No payment or adjustment shall be	1447
made in the single lifetime pension to compensate for the lesser	1448
pension the member received under the optional plan.	1449

The request to cancel the optional plan shall be made on a	1450
form provided by the board and shall be valid only if the	1451
completed form includes a signed statement of the designated	1452
beneficiary's understanding of and consent to the cancellation.	1453
The designated beneficiary's signature shall be verified by the	1454
board prior to its acceptance of the cancellation.	1455

(E) Any option elected and payments made under division	1456
(A)(2) of this section shall be in addition to any pension payable	1457
to the member's surviving spouse, children, or parents under	1458
section 5505.17 of the Revised Code.	1459

Sec. 5505.174.  (A) The following persons are eligible to	1460
receive an increase under this section:	1461

(1) Persons fifty-three years old or older who have been	1462
receiving pensions pursuant to division (B) of section 5505.16,	1463
division (A)(1) of section 5505.17, or division (B) of section	1464
5505.18 of the Revised Code for not less than twelve months;	1465

(2) Persons who have been receiving pensions pursuant to	1466
division (B) of section 5505.18 of the Revised Code for not less	1467
than sixty months regardless of age;	1468

(3) Persons who have been receiving pensions pursuant to	1469
section 5505.162 or division (A)(3), (4), (5), (6), or (7) of	1470
section 5505.17 of the Revised Code for not less than twelve	1471
months regardless of age.	1472

(B) The state highway patrol retirement board shall annually	1473
increase each benefit payable under this chapter by three per	1474
cent, except that no benefit shall exceed the limit established by	1475
section 415 of the "Internal Revenue Code of 1986," 100 Stat.	1476
2085, 26 U.S.C.A. 415, as amended.	1477

The first increase is payable to all persons becoming	1478
eligible on or after November 18, 1981. The increase is payable	1479
for each ensuing twelve-month period or until the next increase is	1480
granted under this section, whichever is later.	1481

The date of the first increase paid under this section shall	1482
be the anniversary date for future increases. The pension used in	1483
the first calculation of an increase under this section shall	1484
remain as the base for all future increases paid under this	1485
section, unless a new base is established.	1486

Increases paid in years subsequent to the year of the first	1487
increase paid under this section shall be paid to all persons who,	1488
on the date that the increase is authorized by the board, are	1489
eligible as provided in this section.	1490

(C) If payment of a portion of a benefit is made to an	1491
alternate payee under section 5505.261 of the Revised Code,	1492
increases under this section granted while the order is in effect	1493
shall be apportioned between the alternate payee and the eligible	1494
person in the same proportion that the amount being paid to the	1495
alternate payee bears to the amount paid to the eligible person.	1496

If payment of a portion of a benefit is made to one or more	1497
beneficiaries under "option 4" under division (A)(4) of section	1498
5505.162 of the Revised Code, each increase under this section	1499
granted while the plan of payment is in effect shall be divided	1500
among the designated beneficiaries in accordance with the portion	1501
each beneficiary has been allocated.	1502

(D) The board shall adopt, and may amend or rescind, any rule	1503
necessary to carry out this section.	1504

Section 2. That existing sections 145.323, 145.46, 145.92,	1505
742.3711, 742.3716, 742.3717, 3105.80, 3105.82, 3307.60, 3307.67,	1506
3307.87, 3309.374, 3309.46, 3309.92, 5505.162, and 5505.174 of the	1507
Revised Code are hereby repealed.	1508

Section 3. Sections 1 and 2 of this act take effect eighteen	1509
months after the effective date of this act.	1510