To amend sections 3309.33, 3309.34, 3309.36, 3309.38, and 3309.381 of the Revised Code to revise retirement eligibility requirements for members of the School Employees Retirement System.
SECTION 1. That sections 3309.33, 3309.34, 3309.36, 3309.38, and 3309.381 of the Revised Code be amended to read as follows:
Sec. 3309.33. (A) An employer may establish a retirement incentive plan for its employees who are members of the school employees retirement system. The plan shall provide for purchase by the employer of service credit for eligible employees who choose to participate in the plan and for payment by the employer of the entire cost of such service credit. A plan established under this section shall remain in effect until terminated by the employer, except that, once established, the plan must remain in effect for at least one year.
An employee who is a member of the school employees
retirement system shall (B) To be eligible to participate in a
retirement incentive plan if he, an employee must meet the
following requirements:
(1) Either of the following:
(a) If the employee became a member of the retirement system
before the effective date of this amendment, the member has
attained age
fifty and he years of age;
(b) If the employee became a member of the retirement system on or after the effective date of this amendment, the employee has attained fifty-five years of age;
(2) The
employee
agrees to retire and retires under section
3309.36 of the Revised
Code effective within ninety days after
receiving notice from the
school employees retirement system that
service credit has been
purchased for him the employee under this
section.
(C) Participation in the plan shall be available to all eligible employees except that the employer may limit the number of persons for whom it purchases credit in any calendar year to a specified percentage of its employees who are members of the school employees retirement system on the first day of January of that year. The percentage shall not be less than five per cent of such employees. If participation is limited, employees with a greater length of service with the employer have the right to elect to have credit purchased before employees with a lesser length of service with the employer.
(D) The amount of service credit purchased for any participant shall be uniformly determined but shall not exceed the lesser of the following:
(A)(1) Five years of service credit;
(B)(2) An amount of service credit equal to one-fifth of the
total service credited to the participant under Chapter 3309. of
the Revised Code.
For each year of service credit purchased under this
section,
the employer shall pay an amount specified by the school
employees
retirement board equal to the additional liability
resulting from
the purchase of that year of service credit as
determined by an
actuary employed by the board. Payments shall
be made in
accordance with rules adopted by the board, and the
board shall
notify each member when he the member is credited
with service
purchased under this section.
No payment made to the school employees retirement system under this section shall affect any payment required by section 3309.49 of the Revised Code.
Sec. 3309.34. (A)(1) A member of the school employees
retirement system whose membership began before the effective date
of this amendment is eligible for service retirement
if he the
member has at least five years of total service credit
and has
attained sixty years of age, or if he the member has at least
thirty years
of total service credit at any age. A member whose
membership began before the effective date of this amendment is
eligible for
commuted service retirement if he the member has at
least
twenty-five years
of total service credit and has attained
fifty-five years of age.
(2) A member whose membership began on or after the effective date of this amendment is eligible for service retirement if the member meets one of the following requirements:
(a) Has earned at least ten years of total service credit and has attained sixty-two years of age;
(b) Has earned at least twenty-five years of total service credit and has attained sixty years of age;
(c) Has earned at least thirty years of total service credit and has attained fifty-five years of age.
(B) A member may retire by filing an application for retirement with the school employees retirement board on a form provided by the board. The board shall not retire the member sooner than the first day of the month next following the later of:
(A)(1) The last day of employment for which compensation was
paid;
(B)(2) The attainment of minimum age and service credit
eligibility for service
or commuted service retirement.
(C) At least once every ten years, the board shall direct its actuary to evaluate the retirement eligibility requirements of this section.
Sec. 3309.36. (A)(1) A member retiring of the school
employees retirement system whose membership began before the
effective date of this amendment who retires on service retirement
shall be granted a retirement allowance consisting of the lesser
of the sum of the following amounts or the limit established by
section 415 of the "Internal Revenue Code of 1986," 100 Stat.
2085, 26 U.S.C.A. 415, as amended:
(1)(a) An annuity having a reserve equal to the amount of the
employee's accumulated contributions at that time;
(2)(b) A pension of equivalent amount;
(3)(c) An additional pension of forty dollars multiplied by
the
number of years of such prior service credit;
(4)(d) For members who have ten or more years of service
credit
accumulated prior to October 1, 1956, a basic annual
pension equal
to one hundred eighty dollars, except that such
basic annual
pension shall not exceed the sum of the total annual
benefits
provided by divisions (A)(1), (2), and
(3) of this
section.
(2) A member whose membership began on or after the effective date of this amendment who retires on service retirement shall be granted a retirement allowance consisting of the lesser of the sum of the following amounts or the limit established by section 415 of the "Internal Revenue Code of 1986":
(a) An annuity having a reserve equal to the amount of the employee's accumulated contributions at that time;
(b) A pension of equivalent amount.
(B)(1) When a member retires on service retirement, the
member's
allowance when computed as an annual single lifetime
allowance as
provided in divisions (A)(1), (2),
(3), and (4)(2) of
this section and
section 3309.38 of the Revised Code, based upon
attained age
sixty-five or thirty years of total service credit,
shall be
not less than
the greater of the amounts determined by
multiplying the
member's total
service credit by the following:
(a) Eighty-six dollars;
(b) Two and two-tenths per cent of the member's final average salary for each of the first thirty years of service credit or fraction thereof plus two and one-half per cent of the member's final average salary for each subsequent year of service credit or fraction thereof.
(2) The For a member whose membership began before the
effective date of this amendment, the
annual
single lifetime
allowance determined under
division
(B)(1) of this section shall
be adjusted by the greater
percentage shown in the
following
schedule opposite the member's
attained age or years of
Ohio
service credit:
Years of | Per Cent | ||
Attained | or | Ohio Service | of |
Age | Credit | Base Amount | |
58 | 25 | 75% | |
59 | 26 | 80 | |
60 | 27 | 85 | |
61 | 88 | ||
28 | 90 | ||
62 | 91 | ||
63 | 94 | ||
29 | 95 | ||
64 | 97 | ||
65 | 30 or more | 100 |
Members shall vest the For a member whose membership began before
the effective date of this amendment, the right to a benefit shall
vest in accordance with the
following schedule, based on the
member's attained age by
September 1, 1976:
Per Cent | |
Attained | of |
Age | Base Amount |
66 | 102 |
67 | 104 |
68 | 106 |
69 | 108 |
70 or more | 110 |
(3) For a member whose membership began on or after the effective date of this amendment, the annual single lifetime allowance determined under division (B)(1) of this section shall be adjusted to be the actuarial equivalent of the member's retirement allowance, as determined by the retirement board's actuary, had the member retired at age sixty-five or with thirty years of service credit, except that the retirement allowance shall not be less than the following:
Per Cent | |
Years of Service | of |
Credit | Base Amount |
25 | 75% |
26 | 80 |
27 | 85 |
28 | 90 |
29 | 95 |
(4) The annual single lifetime allowance which a retirant shall receive under this division shall not exceed the lesser of one hundred per cent of the member's final average salary or the limit established by section 415 of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended.
(C) Retirement allowances determined under this section shall be paid as provided in section 3309.46 of the Revised Code.
(D) At least once every ten years, the school employees retirement board shall direct its actuary to evaluate the actuarial equivalents in division (B)(3) of this section to determine their appropriateness. The board may adjust the actuarial equivalents in accordance with the actuary's recommendations.
Sec. 3309.38. (A) A member retiring on commuted service retirement on or after September 30, 1963, shall be granted a retirement allowance consisting of:
(1) An annuity having a reserve equal to the amount of the employee's accumulated contributions at the time;
(2) A pension of equivalent amount;
(3) An additional pension, if such employee has prior service credit, the reserve for which, based upon regular interest and the service tables approved by the board, shall be the present worth of the reserve required for the payment of the prior service pension provided by section 3309.36 of the Revised Code, after either age sixty or thirty-two years of service credit, whichever can be first attained. The annual prior service pension shall be determined by the amount of such commuted reserve divided by the service annuity rate for the attained annuity age of retirement.
(4) For members who have ten or more years of service credit accumulated prior to October 1, 1956, a basic annual pension equal to one hundred eighty dollars, which shall be commuted in the same manner as provided for the prior service pension in division (A)(3) of this section, provided such commuted basic annual pension shall not exceed the sum of the total annual benefits provided by divisions (A)(1), (2), and (3) of this section.
(B) When a member retires on commuted service retirement,
the
member's annual single lifetime allowance including the
allowances
provided in divisions (A)(1), (2),
(3), and (4) of this section
shall not be less than the allowances provided under the
provisions of division (B) of section 3309.36 of the
Revised Code
and shall not exceed the limit established by division
(B)(3)(4)
of
that section.
(C) Retirement allowances determined under this section shall be paid as provided in section 3309.46 of the Revised Code.
Sec. 3309.381. (A) A recipient of a disability allowance
under section 3309.401 of the Revised Code who is subject to
division (C)(3) of that section may make application for service
retirement under this section. Retirement shall be effective on
the first day of the first month following the last day for which
the disability allowance is paid.
(B) The annual allowance payable under this section shall consist of the sum of the amounts determined under divisions (B)(1) and (2) of this section:
(1) The greater of the following:
(a) An allowance calculated as provided in section 3309.36 of the Revised Code, excluding any period during which the applicant received a disability benefit under section 3309.401 of the Revised Code;
(b) An allowance calculated by multiplying the applicant's total service credit, including service credit for the last continuous period during which the applicant received a disability benefit under section 3309.401 of the Revised Code, by two and two-tenths per cent of the applicant's final average salary, except that the allowance shall not exceed forty-five per cent of the applicant's final average salary.
(2) An amount equal to the additional allowance the recipient would receive under section 3309.374 of the Revised Code, plus any other additional amount the recipient would receive under this chapter, had the recipient retired under section 3309.36 of the Revised Code effective on the effective date of the recipient's most recent continuous period of receipt of a disability benefit under section 3309.401 of the Revised Code.
(C) The allowance calculated under division (B) of this section, exclusive of any amount added under division (B)(2) of this section based on section 3309.374 of the Revised Code, shall be the base for all future additional allowances under section 3309.374 of the Revised Code.
The anniversary date for future additional allowances under section 3309.374 of the Revised Code shall be the effective date of the recipient's most recent continuous period of receipt of a disability benefit under section 3309.401 of the Revised Code.
(D) The retirement allowance determined under this section shall be paid as provided in section 3309.46 of the Revised Code.
SECTION 2. That existing sections 3309.33, 3309.34, 3309.36, 3309.38, and 3309.381 of the Revised Code are hereby repealed.